Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2017 | Aug. 09, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | Standard AVB Financial Corp. | |
Entity Central Index Key | 1,492,915 | |
Trading Symbol | stnd | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 4,781,323 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
ASSETS | ||
Cash on hand and due from banks | $ 6,814 | $ 1,786 |
Interest-earning deposits in other institutions | 13,420 | 16,375 |
Cash and Cash Equivalents | 20,234 | 18,161 |
Investment securities available for sale, at fair value | 83,153 | 44,250 |
Mortgage-backed securities available for sale, at fair value | 62,835 | 19,653 |
Certificate of deposit | 500 | 500 |
Federal Home Loan Bank stock, at cost | 8,367 | 3,161 |
Loans receivable, net of allowance for loan losses of $3,965 and $3,800 | 733,413 | 378,080 |
Loans held for sale | 816 | 234 |
Office properties and equipment, net | 7,684 | 3,155 |
Bank-owned life insurance | 21,763 | 14,946 |
Goodwill | 25,985 | 8,769 |
Core deposit intangible | 3,858 | |
Accrued interest receivable and other assets | 8,814 | 4,310 |
TOTAL ASSETS | 977,422 | 495,219 |
Deposits: | ||
Demand, savings and club accounts | 496,508 | 231,378 |
Certificate accounts | 216,218 | 137,256 |
Total Deposits | 712,726 | 368,634 |
Federal Home Loan Bank short-term borrowings | 80,529 | |
Federal Home Loan Bank advances | 42,907 | 48,856 |
Securities sold under agreements to repurchase | 2,529 | 1,964 |
Accrued interest payable and other liabilities | 6,380 | 2,753 |
TOTAL LIABILITIES | 845,071 | 422,207 |
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, 4,780,882 and 2,585,125 shares outstanding, respectively | 48 | 26 |
Additional paid-in-capital | 74,912 | 16,071 |
Retained earnings | 58,753 | 58,810 |
Unearned Employee Stock Ownership Plan (ESOP) shares | (1,916) | (2,031) |
Accumulated other comprehensive income | 554 | 136 |
TOTAL STOCKHOLDERS' EQUITY | 132,351 | 73,012 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 977,422 | $ 495,219 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Consolidated Statements of Financial Condition | ||
Loans receivable, allowance for loan losses (in dollars) | $ 3,965 | $ 3,800 |
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 | 4,780,882 | 2,585,125 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Interest and Dividend Income | ||||
Loans, including fees | $ 7,223 | $ 3,592 | $ 14,715 | $ 10,751 |
Mortgage-backed securities | 440 | 101 | 594 | 333 |
Investments: | ||||
Taxable | 165 | 98 | 307 | 293 |
Tax-exempt | 381 | 192 | 787 | 607 |
Federal Home Loan Bank stock | 92 | 42 | 165 | 128 |
Interest-earning deposits and federal funds sold | 34 | 14 | 53 | 25 |
Total Interest and Dividend Income | 8,335 | 4,039 | 16,621 | 12,137 |
Interest Expense | ||||
Deposits | 874 | 664 | 2,217 | 1,930 |
Federal Home Loan Bank short-term borrowings | 195 | 195 | ||
Federal Home Loan Bank advances | 187 | 209 | 581 | 634 |
Securities sold under agreements to repurchase | 2 | 2 | ||
Total Interest Expense | 1,256 | 873 | 2,995 | 2,566 |
Net Interest Income | 7,079 | 3,166 | 13,626 | 9,571 |
Provision for Loan Losses | 167 | 207 | ||
Net Interest Income after Provision for Loan Losses | 6,912 | 3,166 | 13,419 | 9,571 |
Noninterest Income | ||||
Service charges | 668 | 416 | 1,446 | 1,225 |
Earnings on bank-owned life insurance | 164 | 123 | 408 | 367 |
Net securities gains | 58 | 10 | 26 | 91 |
Net loan sale gains | 82 | 13 | 123 | 40 |
Investment management fees | 122 | 48 | 250 | 150 |
Other income | 96 | 5 | 119 | 23 |
Total Noninterest Income | 1,190 | 615 | 2,372 | 1,896 |
Noninterest Expenses | ||||
Compensation and employee benefits | 2,724 | 1,622 | 6,056 | 4,929 |
Data processing | 287 | 114 | 523 | 344 |
Premises and occupancy costs | 583 | 322 | 1,237 | 930 |
Automatic teller machine expense | 245 | 93 | 425 | 259 |
Federal deposit insurance | 84 | 57 | 162 | 171 |
Merger related expenses | 2,837 | 3,396 | ||
Other operating expenses | 817 | 363 | 1,679 | 1,079 |
Total Noninterest Expenses | 7,577 | 2,571 | 13,478 | 7,712 |
Income before Income Tax Expense | 525 | 1,210 | 2,313 | 3,755 |
Income Tax Expense (Benefit) | ||||
Federal | (17) | 292 | 584 | 969 |
State | 157 | 52 | 222 | 153 |
Total Income Tax Expense | 140 | 344 | 806 | 1,122 |
Net Income | $ 385 | $ 866 | $ 1,507 | $ 2,633 |
Earnings Per Share: | ||||
Basic earnings per common share (in dollars per share) | $ 0.09 | $ 0.37 | $ 0.49 | $ 1.07 |
Diluted earnings per common share (in dollars per share) | 0.08 | 0.36 | 0.47 | 1.03 |
Cash dividends paid per common share (in dollars per share) | $ 0.22 | $ 0.11 | $ 0.44 | $ 0.33 |
Basic weighted average shares outstanding (in shares) | 4,427,698 | 2,358,863 | 3,078,869 | 2,469,755 |
Diluted weighted average shares outstanding (in shares) | 4,544,580 | 2,436,749 | 3,173,514 | 2,552,192 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Consolidated Statements of Comprehensive Income | ||||
Net Income | $ 385 | $ 866 | $ 1,507 | $ 2,633 |
Other comprehensive income: | ||||
Unrealized gain on securities available for sale | 1,517 | 399 | 447 | 464 |
Tax effect | (516) | (136) | (152) | (158) |
Reclassification adjustment for security gains realized in income | (58) | (10) | (26) | (91) |
Tax effect | 20 | 3 | 9 | 31 |
Pension obligation change for defined benefit plan | 23 | 213 | ||
Tax effect | (8) | (73) | ||
Total other comprehensive income | 978 | 256 | 418 | 246 |
Total Comprehensive Income | $ 1,363 | $ 1,122 | $ 1,925 | $ 2,879 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 9 months ended Jun. 30, 2017 - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Unearned ESOP Shares | Accumulated Other Comprehensive Income | Total |
Balance at Sep. 30, 2016 | $ 26 | $ 16,071 | $ 58,810 | $ (2,031) | $ 136 | $ 73,012 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 1,507 | 1,507 | ||||
Other comprehensive income | 418 | 418 | ||||
Cash dividends ($0.44 per share) | (1,564) | (1,564) | ||||
Stock options exercised (30,060 shares) | 496 | 496 | ||||
Compensation expense on stock awards | 532 | 532 | ||||
Compensation expense on ESOP | 163 | 115 | 278 | |||
Merger consideration (2,168,097 shares) | 22 | 57,650 | 57,672 | |||
Balance at Jun. 30, 2017 | $ 48 | $ 74,912 | $ 58,753 | $ (1,916) | $ 554 | $ 132,351 |
Consolidated Statement of Chan7
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Consolidated Statement of Changes in Stockholders' Equity | ||||
Cash dividends paid per common share (in dollars per share) | $ 0.22 | $ 0.11 | $ 0.44 | $ 0.33 |
Number of stock options exercised | 30,060 | |||
Merger consideration | 2,168,097 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash Flows From Operating Activities | ||
Net income | $ 1,507 | $ 2,633 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 389 | 101 |
Provision for loan losses | 207 | |
Net gain on securities | (26) | (91) |
Origination of loans held for sale | (6,372) | (2,708) |
Proceeds from sale of loans held for sale | 5,913 | 2,862 |
Net loan sale gains | (123) | (40) |
Compensation expense on ESOP | 278 | 271 |
Compensation expense on stock awards | 532 | 339 |
Deferred income taxes | (52) | 213 |
Decrease in accrued interest receivable and other assets | (812) | (215) |
Earnings on bank-owned life insurance | (408) | (367) |
Increase in accrued interest payable and other liabilities | 1,761 | 64 |
Other, net | 84 | (214) |
Net Cash Provided by Operating Activities | 2,878 | 2,848 |
Cash Flows Used From Investing Activities | ||
Net increase in loans | (43,804) | (19,754) |
Purchases of investment securities | (4,410) | (9,592) |
Purchases of mortgage-backed securities | (15,637) | (2,995) |
Purchases of certificates of deposit | (250) | |
Maturities of certificates of deposit | 750 | |
Proceeds from maturities/principal repayments/calls of investment securities | 4,725 | 6,722 |
Proceeds from maturities/principal repayments/calls of mortgage-backed securities | 7,952 | 3,744 |
Proceeds from sales of investment securities | 6,312 | 249 |
Proceeds from sales of mortgage-backed securities | 15,576 | 4,990 |
Purchase of Federal Home Loan Bank stock | (2,246) | (719) |
Redemption of Federal Home Loan Bank stock | 1,779 | 770 |
Proceeds from sales of foreclosed real estate | 182 | 271 |
Net purchases of office properties and equipment | (472) | (240) |
Cash and cash equivalents acquired | 9,611 | |
Net Cash Used in Investing Activities | (20,432) | (16,054) |
Cash Flows From Financing Activities | ||
Net increase in demand, savings and club accounts | 1,608 | 9,275 |
Net increase in certificate accounts | 8,540 | 11,797 |
Net increase in securities sold under agreements to repurchase | 565 | 590 |
Net increase in Federal Home Loan Bank short term borrowings | 15,905 | |
Repayments of Federal Home Loan Bank advances | (5,949) | (16,050) |
Proceeds from Federal Home Loan Bank advances | 12,712 | |
Net increase in advance deposits by borrowers for taxes and insurance | 26 | 31 |
Exercise of stock options | 496 | |
Dividends paid | (1,564) | (754) |
Stock repurchases | (4,033) | |
Net Cash Provided by Financing Activities | 19,627 | 13,568 |
Net Increase in Cash and Cash Equivalents | 2,073 | 362 |
Cash and Cash Equivalents - Beginning | 18,161 | 15,048 |
Cash and Cash Equivalents - Ending | 20,234 | 15,410 |
Supplementary Cash Flows Information | ||
Interest paid | 2,913 | 1,726 |
Income taxes paid | 689 | 302 |
Supplementary Schedule of Noncash Investing and Financing Activities | ||
Foreclosed real estate acquired in settlement of loans | 620 | |
Securities purchased not settled | $ 1,710 | |
Non-cash assets acquired | ||
Investment securities available for sale | 95,919 | |
Federal Home Loan Bank stock | 4,739 | |
Loans | 311,736 | |
Office properties and equipment, net | 4,434 | |
Accrued interest receivable | 1,144 | |
Bank owned life insurance | 6,486 | |
Core deposit intangible | 4,116 | |
Other assets | 2,742 | |
Goodwill | 17,216 | |
Total non-cash assets | 448,532 | |
Liabilities assumed | ||
Time deposits | (70,422) | |
Deposits other than time deposits | (263,522) | |
Borrowings | (64,624) | |
Accrued interest payable | (615) | |
Other liabilities | (1,288) | |
Total Liabilities assumed | (400,471) | |
Net Non Cash Assets Acquired | 48,061 | |
Cash and cash equivalents acquired | $ 9,611 |
Consolidation
Consolidation | 9 Months Ended |
Jun. 30, 2017 | |
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. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2017 | |
Basis Of Presentation [Abstract] | |
Basis of Presentation | (2) Basis of Presentation The accompanying consolidated financial statements were prepared in accordance with instructions to Form 10-Q, and therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles in the United States. All adjustments (consisting of normal recurring adjustments), which, in the opinion of management are necessary for a fair presentation of the financial statements and to make the financial statements not misleading have been included. The unaudited consolidated financial statements and other financial information contained in this quarterly report on Form 10-Q should be read in conjunction with the audited financial statements of Standard Financial Corp. at and for the year ended September 30, 2016 contained in the Company’s definitive prospectus dated February 1, 2017 (the “Prospectus”) as filed with the Securities and Exchange Commission pursuant to Securities Act Rule 424(b)(3) on February 3, 2017. The results for the three and nine month periods ended June 30, 2017 is not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2017 or any future interim period. Certain amounts in the 2016 financial statements have been reclassified to conform to the 2017 presentation format. These reclassifications had no effect on stockholders’ equity or net income. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Jun. 30, 2017 | |
Earnings per Share | |
Earnings per Share | (3) Earnings per Share Basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. The following table sets forth the computation of basic and diluted EPS for the three and nine months ended June 30, 2017 and 2016 (dollars in thousands, except per share data): Three Months Ended June 30, Nine Months Ended June 30, 2017 2016 2017 2016 Net income available to common stockholders $ 385 $ 866 $ 1,507 $ 2,633 Basic EPS: Weighted average shares outstanding 4,427,698 2,358,863 3,078,869 2,469,755 Basic EPS $ 0.09 $ 0.37 $ 0.49 $ 1.07 Diluted EPS: Weighted average shares outstanding 4,427,698 2,358,863 3,078,869 2,469,755 Diluted effect of common stock equivalents 116,882 77,886 94,645 82,437 Total diluted weighted average shares outstanding 4,544,580 2,436,749 3,173,514 2,552,192 Diluted EPS $ 0.08 $ 0.36 $ 0.47 $ 1.03 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Jun. 30, 2017 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | (4) Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers Topic 606 In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) Share-Based Payment In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business the number of transactions that need to be further evaluated. Public business entities should apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim periods within those periods. All other entities should apply the amendments to annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The amendments in this Update should be applied prospectively on or after the effective date. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is a U.S. Securities and Exchange Commission (“SEC”) filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. A public business entity that is not an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020. All other entities, including not-for-profit entities that are adopting the amendments in this Update should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021. In February 2017, the FASB issued ASU 2017-06 , Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), and Health and Welfare Benefit Plans (Topic 965) This Update relates primarily to the reporting by an employee benefit plan for its interest in a master trust, which is a trust for which a regulated financial institution serves as a trustee or custodian and in which assets of more than one plan sponsored by a single employer or by a group of employers under common control are held. For each master trust in which a plan holds an interest, the amendments in this Update require a plan's interest in that master trust and any change in that interest to be presented in separate line items in the statement of net assets available for benefits and in the statement of changes in net assets available for benefits, respectively. The amendments in this Update remove the requirement to disclose the percentage interest in the master trust for plans with divided interests and require that all plans disclose the dollar amount of their interest in each of those general types of investments, which supplements the existing requirement to disclose the master trusts balances in each general type of investments. There are also increased disclosure requirements for investments in master trusts. The amendments in this Update are effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715) In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beg For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principle. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718) The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. |
Investment Securities
Investment Securities | 9 Months Ended |
Jun. 30, 2017 | |
Investment securities available for sale | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment Securities | (5) Investment Securities Investment securities available for sale at June 30, 2017 and September 30, 2016 are as follows (dollars in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2017: U.S. government and agency obligations due: Beyond 1 year but within 5 years $ 10,472 $ 17 $ (46 ) $ 10,443 Beyond 5 year but within 10 years 3,362 44 - 3,406 Corporate bonds due: Beyond 1 year but within 5 years 4,437 9 (12 ) 4,434 Beyond 5 years but within 10 years 1,486 20 - 1,506 Municipal obligations due: Beyond 1 year but within 5 years 8,911 526 - 9,437 Beyond 5 years but within 10 years 27,719 430 (8 ) 28,141 Beyond 10 years 21,613 222 (122 ) 21,713 Equity securities 3,852 310 (89 ) 4,073 $ 81,852 $ 1,578 $ (277 ) $ 83,153 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2016: U.S. government and agency obligations due: Beyond 1 year but within 5 years $ 10,000 $ 32 $ (5 ) $ 10,027 Corporate bonds due: Within 1 year 2,032 - (7 ) 2,025 Beyond 1 year but within 5 years 507 2 - 509 Municipal obligations due: Within 1 year 978 12 - 990 Beyond 1 year but within 5 years 3,784 294 - 4,078 Beyond 5 years but within 10 years 12,144 417 - 12,561 Beyond 10 years 11,769 185 (38 ) 11,916 Equity securities 2,052 207 (115 ) 2,144 $ 43,266 $ 1,149 $ (165 ) $ 44,250 During the three months ended June 30, 2017, gains on the sales of investment securities were $15,000, losses on sales were $17,000 and proceeds from such sales were $5.9 million. During the nine months ended June 30, 2017, gains on sales of investment securities were $57,000, losses on sales were $91,000 and proceeds from such sales were $6.3 million. During the three months ended June 30, 2016, gains on sales of investment securities were $10,000, and proceeds from such sales were $53,000. During the nine months ended June 30, 2016, gains on sales of investment securities totaled $49,000 and $40,000 in losses and total proceeds from such sales were $249,000. Investment securities with a carrying value of $13.8 million and $25.9 million were pledged to secure repurchase agreements and public funds accounts at June 30, 2017 and September 30, 2016, respectively. The following table shows the fair value and gross unrealized losses on investment securities and the length of time that the securities have been in a continuous unrealized loss position at June 30, 2017 and at September 30, 2016 (dollars in thousands): June 30, 2017 Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. government and agency obligations $ 7,955 $ (46 ) $ - $ - $ 7,955 $ (46 ) Corporate bonds 1,763 (12 ) - - 1,763 (12 ) Municipal obligations 7,334 (130 ) - - 7,334 (130 ) Equity securities 2,542 (89 ) - - 2,542 (89 ) Total $ 19,594 $ (277 ) $ - $ - $ 19,594 $ (277 ) September 30, 2016 Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. government and agency obligations $ 1,995 $ (5 ) $ - $ - $ 1,995 $ (5 ) Corporate bonds 1,021 (7 ) - - 1,021 (7 ) Municipal obligations 2,803 (38 ) - - 2,803 (38 ) Equity securities 171 (13 ) 570 (102 ) 741 (115 ) Total $ 5,990 $ (63 ) $ 570 $ (102 ) $ 6,560 $ (165 ) At June 30, 2017, the Company held 22 securities in an unrealized loss position. The decline in the fair value of these securities resulted primarily from interest rate fluctuations. The Company does not intend to sell these securities nor is it more likely than not that the Company would be required to sell these securities before their anticipated recovery, and the Company believes the collection of the investment and related interest is probable. Based on the above, the Company considers all of the unrealized losses to be temporary impairment losses. |
Mortgage-Backed Securities
Mortgage-Backed Securities | 9 Months Ended |
Jun. 30, 2017 | |
Mortgage-backed securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Mortgage-Backed Securities | (6) Mortgage-Backed Securities Mortgage-backed securities available for sale at June 30, 2017 and at September 30, 2016 are as follows (dollars in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2017: Government pass-throughs: Ginnie Mae $ 9,042 $ 41 $ (33 ) $ 9,050 Fannie Mae 21,492 250 - 21,742 Freddie Mac 14,802 155 (33 ) 14,924 Private pass-throughs 8,998 89 - 9,087 Collateralized mortgage obligations 8,046 9 (23 ) 8,032 $ 62,380 $ 544 $ (89 ) $ 62,835 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2016: Government pass-throughs: Ginnie Mae $ 5,695 $ 37 $ (17 ) $ 5,715 Fannie Mae 5,806 211 - 6,017 Freddie Mac 6,051 113 - 6,164 Private pass-throughs 87 - - 87 Collateralized mortgage obligations 1,663 9 (2 ) 1,670 $ 19,302 $ 370 $ (19 ) $ 19,653 For the three and the nine months ended June 30, 2017, gains on sales of mortgage-backed securities totaled $75,000, losses totaled $15,000 and total proceeds from sales were $15.6 million. During the three months ended June 30, 2016, there were no sales of mortgage-backed securities. For the nine months ended June 30, 2016, gains on sales of mortgage-backed securities totaled $82,000 with total proceeds from sales of $5.0 million. The amortized cost and fair value of mortgage-backed securities at June 30, 2017, 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 (in thousands): Amortized Cost Fair Value Due in one year or less $ 13 $ 13 Due after one year through five years 516 532 Due after five years throgh ten years 3,526 3,606 Due after ten years 58,325 58,684 Total Mortgage-Backed Securities $ 62,380 $ 62,835 The following table shows the fair value and gross unrealized losses on mortgage-backed securities and the length of time that the securities have been in a continuous unrealized loss position at June 30, 2017 and at September 30, 2016 (dollars in thousands): June 30, 2017 Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Government pass-throughs: Ginnie Mae $ 2,251 $ (18 ) $ 1,088 $ (15 ) $ 3,339 $ (33 ) Freddie Mac 1,651 (16 ) 1,200 (17 ) 2,851 (33 ) Collateralized mortgage obligations 813 (12 ) 521 (11 ) 1,334 (23 ) Total $ 4,715 $ (46 ) $ 2,809 $ (43 ) $ 7,524 $ (89 ) September 30, 2016 Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Government pass-throughs: Ginnie Mae $ 2,748 $ (6 ) $ 1,313 $ (11 ) $ 4,061 $ (17 ) Collateralized mortgage obligations - - 604 (2 ) 604 (2 ) Total $ 2,748 $ (6 ) $ 1,917 $ (13 ) $ 4,665 $ (19 ) At June 30, 2017, the Company held 8 mortgage-backed securities in an unrealized loss position. The decline in the fair value of these securities resulted primarily from interest rate fluctuations. The Company does not intend to sell these securities nor is it more likely than not that the Company would be required to sell these securities before their anticipated recovery, and the Company believes the collection of the investment and related interest is probable. Based on the above, the Company considers all of the unrealized loss to be temporary impairment loss. Mortgage-backed securities with a carrying value of $14.9 million and $6.5 million were pledged to secure repurchase agreements and public fund accounts at June 30, 2017 and September 30, 2016, respectively. |
Loans Receivable and Related Al
Loans Receivable and Related Allowance for Loan Losses | 9 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Loans Receivable | (7) Loans Receivable and Related Allowance for Loan Losses The following table summarizes the primary segments of the loan portfolio, and the related allowance for loan losses, as of June 30, 2017 and September 30, 2016 (dollars in thousands): Real Estate Loans One-to-four- Home family Commercial Equity Loans Residential and Real and Lines Commercial Other Construction Estate of Credit Business Loans Total June 30, 2017: Collectively evaluated for impairment $ 257,227 $ 291,247 $ 127,887 $ 52,935 $ 5,557 $ 734,853 Individually evaluated for impairment - 2,525 - - - 2,525 Total loans before allowance for loan losses $ 257,227 $ 293,772 $ 127,887 $ 52,935 $ 5,557 $ 737,378 September 30, 2016: Collectively evaluated for impairment $ 167,512 $ 119,412 $ 79,157 $ 14,779 $ 553 $ 381,413 Individually evaluated for impairment - 467 - - - 467 Total loans before allowance for loan losses $ 167,512 $ 119,879 $ 79,157 $ 14,779 $ 553 $ 381,880 Total loans at June 30, 2017 were net of deferred loan fees of $315,000 and at September 30, 2016 were net of deferred loan costs of $150,000. Included in total loans above are loans acquired from Allegheny Valley at the acquisition date, net of fair value adjustments of (dollars in thousands): Real Estate Loans One-to-four- Home family Commercial Equity Loans Residential and Real and Lines Commercial Other Construction Estate of Credit Business Loans Total April 7, 2017 $ 66,995 $ 160,626 $ 51,759 $ 26,841 $ 5,515 $ 311,736 As a result of the acquisition of Allegheny Valley, the Company added $2,467,000 of loans that were accounted for in accordance with ASC 310-30. Based on a review of the loans acquired by senior lending management, which included an analysis of credit deterioration of the loans since origination, the Company recorded a specific credit fair value adjustment of $2,467,000. For loans that were acquired with specific evidence of deterioration in credit quality, loan losses will be accounted for through a reduction of the specific reserve and will not impact the allowance for loan losses. For loans acquired without a deterioration of credit quality, losses incurred will result in adjustments to the allowance for loan losses through the allowance for loan loss adequacy calculation. As of June 30, 2017, the outstanding balance of ASC 310-30 loans acquired from Allegheny Valley was $0 and the carrying value was $0 as all loans with a specific mark were charged off against that mark during the quarter, with no resulting impact on net income. The following table presents the components of the purchase accounting adjustments related to the purchased credit-impaired loans acquired: Contractually required principal and interest $ 2,467 Non-accretable discount (2,467 ) Expected cash flows - Accretable discount - Estimated fair value $ - There was no amortizable yield for purchased credit-impaired loans for the nine month period ended June 30, 2017. The segments of the Bank’s loan portfolio are disaggregated to a level that allows management to monitor risk and performance. The three segments are: real estate, commercial business and other. The real estate loan segment is further disaggregated into three classes. One-to-four family residential mortgages (including residential construction loans) include loans to individuals secured by residential properties having maturities up to 30 years. Commercial real estate consists of loans to commercial borrowers secured by commercial or residential real estate. The repayment of commercial real estate loans is dependent upon either the ongoing cash flow of the borrowing entity or the resale of or lease of the subject property. Home equity loans and lines of credit include loans having maturities up to 20 years. The commercial business loan segment consists of loans to finance the activities of commercial business customers. The other loan segment consists primarily of leases, consumer loans, and overdraft lines of credit. The portfolio segments utilized in the calculation of the allowance for loan losses are disaggregated at the same level that management uses to monitor risk in the portfolio. Therefore the portfolio segments and classes of loans are the same. There are various risks associated with lending to each portfolio segment. One-to-four family residential mortgage loans are typically longer-term loans which generally entail greater interest rate risk than consumer and commercial loans. Under certain economic conditions, housing values may decline, which may increase the risk that the collateral values are insufficient. Commercial real estate loans generally present a higher level of risk than loans secured by residences. This greater risk is due to several factors including but not limited to concentration of principal in a limited number of loans and borrowers, the effect of general economic conditions on income producing properties and the increased difficulty in monitoring these types of loans. Furthermore, the repayment of commercial real estate loans is typically dependent upon successful operation of the related real estate project. If the cash flow from the project is reduced by such occurrences as leases not being obtained, renewed or not entirely fulfilled, the borrower’s ability to repay the loan may be impaired. Commercial business loans are primarily secured by business assets, inventories and accounts receivable which present collateral risk. The other loan segment generally has higher interest rates and shorter terms than one-to-four family residential mortgage loans, however, they can have additional credit risk due to the type of collateral securing the loan. Management evaluates individual loans in all of the commercial segments for possible impairment if the relationship is greater than $200,000, and if the loan either is in nonaccrual status, risk-rated Substandard or Doubtful, greater than 90 days past due or represents a troubled debt restructuring. Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. The definition of “impaired loans” is not the same as the definition of “nonaccrual loans,” although the two categories overlap. The Company may choose to place a loan on nonaccrual status due to payment delinquency or uncertain collectability, while not classifying the loan as impaired if the loan is not a commercial business or commercial real estate loan. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company does not separately evaluate individual consumer and residential mortgage loans for impairment, unless such loan is part of a larger relationship that is impaired, has a classified risk rating, or is a trouble debt restructuring (“TDR”). Once the decision has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is calculated by comparing the recorded investment in the loan to the fair value of the loan using one of three methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs. The appropriate method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis. The Corporation’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. Consistent with accounting and regulatory guidance, the Company recognizes a TDR when the Bank, for economic or legal reasons related to a borrower's financial difficulties, grants a concession to the borrower that would not normally be considered. Regardless of the form of concession granted, the Company's objective in offering a TDR is to increase the probability of repayment of the borrower's loan. To be considered a TDR, the borrower must be experiencing financial difficulties and the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that would not otherwise be considered. The Company did not modify any loans as TDRs during the three or nine month periods ended June 30, 2017 or 2016 nor did it have any TDRs within the preceding year where a concession had been made that then defaulted during the three or nine month periods ending June 30, 2017 or 2016. The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary at June 30, 2017 and September 30, 2016 (dollars in thousands): Impaired Loans With Impaired Loans Total Impaired Loans Recorded Related Recorded Recorded Unpaid Principal Investment Allowance Investment Investment Balance June 30, 2017: Commercial real estate $ - $ - $ 2,525 $ 2,525 $ 2,552 Total impaired loans $ - $ - $ 2,525 $ 2,525 $ 2,552 September 30, 2016: Commercial real estate $ - $ - $ 467 $ 467 $ 467 Total impaired loans $ - $ - $ 467 $ 467 $ 467 The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated (dollars in thousands): Three months ended June 30, Nine months ended June 30, 2017 2016 2017 2016 Average investment in impaired loans: Commercial real estate $ 422 $ 783 $ 435 $ 728 Total impaired loans $ 422 $ 783 $ 435 $ 728 There was no interest income recognized on impaired loans for the three and nine months ended June 30, 2017 and 2016, respectively. Management uses a nine-point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently performing but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the collection of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are considered Substandard. Any loan that has a specific allocation of the allowance for loan losses and is in the process of liquidation of the collateral is placed in the Doubtful category. Any portion of a loan that has been charged off is placed in the Loss category. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as delinquency, bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. The Company’s Commercial Loan Officers are responsible for the timely and accurate risk rating of the loans in their portfolio at origination. Commercial relationships are periodically reviewed internally for credit deterioration or improvement in order to confirm that the relationship is appropriately risk rated. The Audit Committee of the Company also engages an external consultant to conduct loan reviews. The scope of the annual external engagement, which is performed through semi-annual loan reviews, includes reviewing approximately the top 50 to 60 loan relationships, all watchlist loans greater than $100,000, all commercial Reg O loans, and a random sampling of new loan originations between $200,000 and $500,000 during the year. Status reports are provided to management for loans classified as Substandard on a quarterly basis, which results in a proactive approach to resolution. Loans in the Special Mention and Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance. The following table presents the classes of the loan portfolio summarized by the aggregate Pass rating and the criticized ratings of Special Mention, Substandard and Doubtful within the Company’s internal risk rating system as of June 30, 2017 and September 30, 2016 (dollars in thousands): Special Pass Mention Substandard Doubtful Total June 30, 2017: Real estate loans: One-to-four-family residential and construction $ 254,488 $ 825 $ 1,914 $ - $ 257,227 Commercial real estate 285,833 5,260 2,679 - $ 293,772 Home equity loans and lines of credit 127,633 47 207 - $ 127,887 Commercial business loans 52,693 242 - - $ 52,935 Other loans 5,545 - 12 - $ 5,557 Total $ 726,192 $ 6,374 $ 4,812 $ - $ 737,378 September 30, 2016: Real estate loans: One-to-four-family residential and construction $ 166,996 $ - $ 516 $ - $ 167,512 Commercial real estate 119,412 - 467 - 119,879 Home equity loans and lines of credit 79,084 - 73 - 79,157 Commercial business loans 14,779 - - - 14,779 Other loans 553 - - - 553 Total $ 380,824 $ - $ 1,056 $ - $ 381,880 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due based on the loans’ contractual due dates. Management considers nonperforming loans to be those loans that are past due 90 days or more and are still accruing as well as all other nonaccrual loans. At June 30, 2017 and September 30, 2016, there was one loan on non-accrual status that was less than 90 days past due. The following table presents the segments of the loan portfolio summarized by the past due status of the loans still accruing and nonaccrual loans as of June 30, 2017 and September 30, 2016 (dollars in thousands): 30-59 Days 60-89 Days Non-Accrual 90 Days Past Total Current Past Due Past Due (90 Days+) Due & Accruing Loans June 30, 2017: Real estate loans: One-to-four-family residential and construction $ 254,731 $ 556 $ 108 $ 1,090 $ 742 $ 257,227 Commercial real estate 290,805 123 164 2,680 - 293,772 Home equity loans and lines of credit 127,461 147 72 207 - 127,887 Commercial business loans 52,935 - - - - 52,935 Other loans 5,521 7 4 - 25 5,557 Total $ 731,453 $ 833 $ 348 $ 3,977 $ 767 $ 737,378 September 30, 2016: Real estate loans: One-to-four-family residential and construction $ 166,136 $ 566 $ 294 $ 516 $ - $ 167,512 Commercial real estate 119,638 80 61 100 - 119,879 Home equity loans and lines of credit 78,888 115 81 73 - 79,157 Commercial business loans 14,779 - - - - 14,779 Other loans 550 3 - - - 553 Total $ 379,991 $ 764 $ 436 $ 689 $ - $ 381,880 An allowance for loan losses (“ALL”) is maintained to absorb losses from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans. The Bank’s methodology for determining the ALL is based on the requirements of ASC Section 310-10-35 for loans individually evaluated for impairment (discussed above) and ASC Subtopic 450-20 for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. The total of the two components represents the Bank’s ALL. Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by other qualitative factors. Management tracks the historical net charge-off activity for the loan segments which may be adjusted for qualitative factors. Pass rated credits are segregated from criticized credits for the application of qualitative factors. Loans in the criticized pools, which possess certain qualities or characteristics that may lead to collection and loss issues, are closely monitored by management and subject to additional qualitative factors. Management has identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors are evaluated using information obtained from internal, regulatory, and governmental sources such as national and local economic trends and conditions; levels of and trends in delinquency rates and non-accrual loans; trends in volumes and terms of loans; effects of changes in lending policies; experience, depth and ability of management; and concentrations of credit from a loan type, industry and/or geographic standpoint. Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. Management utilizes an internally developed spreadsheet to track and apply the various components of the allowance. The following tables summarize the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of June 30, 2017 and September 30, 2016. Activity in the allowance is presented for the three and nine months ended June 30, 2017 and 2016 (dollars in thousands): Real Estate Loans One-to-four- Home family Commercial Equity Loans Residential and Real and Lines Commercial Other Construction Estate of Credit Business Loans Total Three Months Ended: Balance at March 31, 2017 $ 1,299 $ 1,687 $ 532 $ 255 $ 4 $ 3,777 Charge-offs (1 ) - (6 ) - (4 ) (11 ) Recoveries 28 - - 1 3 32 Provision 20 100 16 30 1 167 Balance at June 30, 2017 $ 1,346 $ 1,787 $ 542 $ 286 $ 4 $ 3,965 Balance at March 31, 2016 $ 1,076 $ 1,869 $ 460 $ 391 $ 2 $ 3,798 Charge-offs (93 ) - - (20 ) - (113 ) Recoveries - 3 2 2 1 8 Provision - - - - - - Balance at June 30, 2016 $ 983 $ 1,872 $ 462 $ 373 $ 3 $ 3,693 Nine Months Ended: Balance at September 30, 2016 $ 1,250 $ 1,786 $ 547 $ 211 $ 6 $ 3,800 Charge-offs (42 ) - (6 ) (1 ) (26 ) (75 ) Recoveries 28 1 - 1 3 33 Provision 110 - 1 75 21 207 Balance June 30, 2017 $ 1,346 $ 1,787 $ 542 $ 286 $ 4 $ 3,965 Balance at September 30, 2015 $ 1,122 $ 1,867 $ 457 $ 411 $ 22 $ 3,879 Charge-offs (139 ) - (4 ) (41 ) (22 ) (206 ) Recoveries - 5 9 3 3 20 Provision - - - - - - Balance at June 30, 2016 $ 983 $ 1,872 $ 462 $ 373 $ 3 $ 3,693 Real Estate Loans One-to-four- Home family Commercial Equity Loans Residential and Real and Lines Commercial Other Construction Estate of Credit Business Loans Total Evaluated for Impairment: Individually $ - $ - $ - $ - $ - $ - Collectively 1,346 1,787 542 286 4 3,965 Balance at June 30, 2017 $ 1,346 $ 1,787 $ 542 $ 286 $ 4 $ 3,965 Evaluated for Impairment: Individually $ - $ - $ - $ - $ - $ - Collectively 1,250 1,786 547 211 6 3,800 Balance at September 30, 2016 $ 1,250 $ 1,786 $ 547 $ 211 $ 6 $ 3,800 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 |
Jun. 30, 2017 | |
Foreclosed Assets Held For Sale [Abstract] | |
Foreclosed Assets Held For Sale | (8) Foreclosed Assets Held For Sale Foreclosed assets acquired in the settlement of loans are carried at fair value less estimated costs to sell and are included in other assets on the Consolidated Statement of Financial Condition. As of June 30, 2017 and September 30, 2016, a total of $137,000 and $281,000 respectively, of foreclosed assets were included in other assets. As of June 30, 2017, included within the foreclosed assets is $107,000 of residential property, acquired upon foreclosure, prior to the period end and $30,000 of commercial property acquired upon foreclosure of a commercial mortgage prior to the period end. As of June 30, 2017, the Company had initiated formal foreclosure procedures on $1.8 million of loans, consisting of $1.5 million of 1-4 family residential loans and a $300,000 commercial real estate loan. |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Jun. 30, 2017 | |
Stock Based Compensation | |
Stock Based Compensation | (9) Stock Based Compensation In 2012, the Company’s stockholders approved the 2012 Equity Incentive Plan (the “2012 Plan”). The purpose of the 2012 Plan is to provide officers, employees and directors with additional incentives to promote growth and performance of Standard Financial Corp. The 2012 Plan authorizes the granting of options to purchase shares of the Company’s stock, which may be nonqualified stock options or incentive stock options, and restricted stock which is subject to vesting conditions and other restrictions. The 2012 Plan reserved an aggregate number of 486,943 shares of which 347,817 may be issued in connection with the exercise of stock options and 139,126 may be issued as restricted stock. On July 25, 2012, certain directors and officers of the Company were awarded an aggregate of 278,075 options to purchase shares of common stock and 111,300 restricted shares of common stock. The awards vest over five years at the rate of 20% per year and the stock options have a ten year contractual life from the date of grant. The Company recognizes expense associated with the awards over the five year vesting period. Remaining shares available to be issued under the stock option and restricted stock plans are 69,742 and 27,826, respectively. As a result of the merger with Allegheny Valley on April 7, 2017, the Company assumed the stock plans allowing for the issuance of an additional 77,634 shares of Standard AVB Financial Corp. stock, of which 249 shares expired on April 10, 2017. The Plan’s provide for the granting of incentive stock options (as defined in section 422 of the Internal Revenue Code), nonstatutory stock options, restricted stock, and stock appreciation rights to eligible employees and directors. The Plan’s had an original term of ten years and they are administered by the Board of Directors or a committee designated by the Board. The Company’s common stock closed at $16.50 per share on July 25, 2012, which is the exercise price of the options granted on that date. The estimated fair value of the stock options was $423,000, before the impact of income taxes. The per share weighted-average fair value of stock options granted with an exercise price equal to the market value on July 25, 2012 was $1.52 using the following Black-Scholes option pricing model assumptions: expected life of 7.5 years, expected dividend rate of 1.13%, risk-free interest rate of 1.10% and an expected volatility of 9.5% based on historical results of the stock prices of a bank peer group. Compensation expense on the options was $58,000, with a related tax benefit recorded of $6,000 for the nine months ended June 30, 2017. As of June 30, 2017, there was $13,000 of total unrecognized compensation cost related to non-vested options which is expected to be recognized ratably over the weighted average remaining service period of 1 month. The following table summarizes transactions regarding the options under the Plan: Options Weighted Outstanding at September 30, 2016 278,075 $ 16.50 Granted - - Merger related options 73,051 19.61 Exercised (30,060 ) 16.50 Forfeited (6,000 ) 16.50 Outstanding at June 30, 2017 315,066 $ 17.22 Exercisable at June 30, 2017 266,663 $ 17.35 On July 25, 2012, the date of grant, the fair value of the restricted stock awards was approximately $1.8 million, before the impact of income taxes. Compensation expense on the grants was $275,000, with a related tax benefit recorded of $92,000 for the nine months ended June 30, 2017. As of June 30, 2017, there was $13,000 of total unrecognized compensation cost related to non-vested grants which is expected to be recognized ratably over the weighted average remaining service period of 1 month. At June 30, 2017, future compensation related to the grants is expected to be $13,000 in 2017. The following table summarizes transactions regarding restricted stock under the Plan: Number of Weighted Non-vested shares at September 30, 2016 22,260 $ 16.50 Granted - - Vested - - Forfeited (2,400 ) 16.50 Non-vested shares at June 30, 2017 19,860 $ 16.50 |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 9 Months Ended |
Jun. 30, 2017 | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan | (10) 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 $278,000 and $271,000 was recognized during the nine months ended June 30, 2017 and 2016, respectively. Dividends on unallocated shares are not treated as ordinary dividends and are instead used to repay the ESOP loan and recorded as compensation expense. As of June 30, 2017, the ESOP held a total of 265,827 shares of the Company’s stock, and there were 187,912 unallocated shares. The fair market value of the unallocated ESOP shares was $5.3 million at June 30, 2017. |
Pension Information
Pension Information | 9 Months Ended |
Jun. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Information | (11) Pension Information The Company sponsors a pension plan which is a noncontributory defined benefit retirement plan. Effective August 1, 2005, the annual benefit provided to employees under this defined benefit pension plan was frozen by Standard Bank. Freezing the plan eliminated all future benefit accruals; however, the accrued benefit as of August 1, 2005 remained. Net periodic pension benefit was as follows: Three Months Ended June 30, Nine Months Ended June 30, 2017 2016 2017 2016 Service cost $ - $ - $ - $ - Interest cost (36 ) (38 ) (108 ) (76 ) Expected return on plan assets 40 37 120 74 Settlement obligation - - (105 ) - Other components (23 ) - (69 ) - Net periodic pension benefit $ (19 ) $ (1 ) $ (162 ) $ (2 ) |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 9 Months Ended |
Jun. 30, 2017 | |
Fair Value of Assets and Liabilities | |
Fair Value of Assets and Liabilities | (12) Fair Value of Assets and Liabilities Fair Value Hierarchy Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. GAAP established a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels: Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. A contractually binding sales price also provides reliable evidence of fair value. Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that utilize model-based techniques for which all significant assumptions are observable in the market. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement; inputs to the valuation methodology that utilize model-based techniques for which significant assumptions are not observable in the market; or inputs to the valuation methodology that requires significant management judgment or estimation, some of which may be internally developed. Management maximizes the use of observable inputs and minimizes the use of unobservable inputs when determining fair value measurements. Management reviews and updates the fair value hierarchy classifications of the Company’s assets and liabilities on a quarterly basis. Assets Measured at Fair Value on a Recurring Basis Investment and Mortgage-Backed Securities Available for Sale Fair values of investment and mortgage-backed securities available for sale were primarily measured using information from a third-party pricing service. This service provides pricing information by utilizing evaluated pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data from market research publications. Level 1 securities are comprised of equity securities. As quoted prices were available, unadjusted, for identical securities in active markets, these securities were classified as Level 1 measurements. Level 2 securities were primarily comprised of debt securities issued by government agencies, states and municipalities, corporations, as well as mortgage-backed securities issued by government agencies. Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models. In cases where there may be limited or less transparent information provided by the Company’s third-party pricing service, fair value may be estimated by the use of secondary pricing services or through the use of non-binding third-party broker quotes. On a quarterly basis, management reviews the pricing information received from the Company’s third-party pricing service. This review process includes a comparison to non-binding third-party broker quotes, as well as a review of market-related conditions impacting the information provided by the Company’s third-party pricing service. Management primarily identifies investment securities which may have traded in illiquid or inactive markets by identifying instances of a significant decrease in the volume or frequency of trades, relative to historical levels, as well as instances of a significant widening of the bid-ask spread in the brokered markets. Securities that are deemed to have been trading in illiquid or inactive markets may require the use of significant unobservable inputs. As of June 30, 2017 and September 30, 2016, management did not make adjustments to prices provided by the third-party pricing service as a result of illiquid or inactive markets. On a quarterly basis, management also reviews a sample of securities priced by the Company’s third-party pricing service to review significant assumptions and valuation methodologies used. Based on this review, management determines whether the current placement of the security in the fair value hierarchy is appropriate or whether transfers may be warranted. The following table presents the assets measured at fair value on a recurring basis as of June 30, 2017 and September 30, 2016 by level within the fair value hierarchy (dollars in thousands): Quoted Prices in Significant Active Markets for Other Significant Identical Assets Observable Unobservable or Liabilities Inputs Inputs (Level 1) (Level 2) (Level 3) Total June 30, 2017: Investment securities available for sale: U.S. government and agency obligations $ - $ 13,849 $ - $ 13,849 Corporate bonds - 5,940 - 5,940 Municipal obligations - 59,291 - 59,291 Equity securities 4,073 - - 4,073 Total investment securities available for sale 4,073 79,080 - 83,153 Mortgage-backed securities available for sale - 62,835 - 62,835 Total recurring fair value measurements $ 4,073 $ 141,915 $ - $ 145,988 September 30, 2016: Investment securities available for sale: U.S. government and agency obligations $ - $ 10,027 $ - $ 10,027 Corporate bonds - 2,534 - 2,534 Municipal obligations - 29,545 - 29,545 Equity securities 2,144 - - 2,144 Total investment securities available for sale 2,144 42,106 - 44,250 Mortgage-backed securities available for sale - 19,653 - 19,653 Total recurring fair value measurements $ 2,144 $ 61,759 $ - $ 63,903 The following table presents the assets measured at fair value on a nonrecurring basis as of June 30, 2017 and September 30, 2016 by level within the fair value hierarchy (dollars in thousands): Quoted Prices in Significant Active Markets for Other Significant Identical Assets Observable Unobservable or Liabilities Inputs Inputs (Level 1) (Level 2) (Level 3) Total June 30, 2017: Foreclosed real estate $ - $ - $ 137 $ 137 Impaired loans - - 2,525 2,525 Total nonrecurring fair value measurements $ - $ - $ 2,662 $ 2,662 September 30, 2016: Foreclosed real estate $ - $ - $ 281 $ 281 Impaired loans - - 467 467 Total nonrecurring fair value measurements $ - $ - $ 748 $ 748 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 Valuation Unobservable Range June 30, 2017 September 30, 2016 Techniques Input (Weighted Average) Foreclosed real estate $ 137 $ 281 Appraisal of Appraisal adjustments (2) 0% to 40% (19%) collateral (1) Liquidation expenses (2) 0% to 10% (8%) Impaired loans $ 2,525 $ 467 Fair value of Appraisal adjustments (2) 0% to 20% (20%) collateral (1), (3) Liquidation expenses (2) 0% to 10% (6%) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. (3) Includes qualitative adjustments by management and estimated liquidation expenses. Disclosures about Fair Value of Financial Instruments The assumptions used below are expected to approximate those that market participants would use in valuing the following financial instruments. Loans Receivable and Loans Held for Sale The fair value of the Company’s loans was estimated by discounting the expected future cash flows using the current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans were first segregated by type such as commercial, real estate, and home equity, and were then further segmented into fixed and variable rate and loan quality categories. Expected future cash flows were projected based on contractual cash flows, adjusted for estimated prepayments. The fair value of loans held for sale was estimated based on the price committed to sell the loan in the secondary market. Certificate Deposit Accounts The fair values of the Company’s certificate deposit accounts were estimated using discounted cash flow analyses. The discount rates used were based on rates currently offered for deposits with similar remaining maturities. The fair values of the Company’s certificate deposit accounts do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value. Federal Home Loan Bank advances The fair value of Federal Home Loan Bank advances was calculated using a discounted cash flow approach that applies a comparable FHLB advance rate to the weighted average maturity of the borrowings. Other Financial Instruments The carrying amounts reported in the consolidated statements of financial condition approximate fair value for the following financial instruments (Level 1): cash on hand and due from banks, interest-earning deposits in other institutions, Federal Home Loan Bank stock, accrued interest receivable, bank-owned life insurance, demand, savings and club accounts, securities sold under agreements to repurchase and accrued interest payable. For short-term financial assets, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as interest and noninterest-bearing demand, savings and club accounts, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity. For financial liabilities such as the Company’s securities sold under agreements to repurchase which are with commercial deposit customers, the carrying amount is a reasonable estimate of fair value due to the short time nature of the agreement. The following table presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2017 and September 30, 2016 (dollars in thousands): Fair Value Measurements Quoted Prices in Significant Active Markets for Other Significant Total Identical Assets Observable Unobservable Carrying Fair or Liabilities Inputs Inputs Amount Value (Level 1) (Level 2) (Level 3) June 30, 2017: Financial Instruments - Assets: Cash on hand and due from banks $ 6,814 6,814 6,814 $ - $ - Interest-earning deposits in other institutions 13,420 13,420 13,420 - - Certificate of deposit 500 500 500 - - Investment securities 83,153 83,153 4,073 79,080 - Mortgage-backed securities 62,835 62,835 - 62,835 - Federal Home Loan Bank stock 8,367 8,367 8,367 - - Loans receivable 733,413 734,551 - - 734,551 Loans held for sale 816 828 828 - - Bank-owned life insurance 21,763 21,763 21,763 - - Accrued interest receivable 2,368 2,368 2,368 - Financial Instruments - Liabilities: Demand, savings and club accounts 496,508 496,508 496,508 - - Certificate deposit accounts 216,218 216,837 - - 216,837 Federal Home Loan Bank short-term borrowings 80,529 80,529 80,529 - - Federal Home Loan Bank advances 42,907 43,333 - - 43,333 Securities sold under agreements to repurchase 2,529 2,529 2,529 - - Accrued interest payable 891 891 891 - - September 30, 2016: Financial Instruments - Assets: Cash on hand and due from banks $ 1,786 $ 1,786 $ 1,786 $ - $ - Interest-earning deposits in other institutions 16,375 16,375 16,375 - - Certificate of deposit 500 500 500 - - Investment securities 44,250 44,250 2,144 42,106 - Mortgage-backed securities 19,653 19,653 - 19,653 - Federal Home Loan Bank stock 3,161 3,161 3,161 - - Loans receivable 378,080 384,161 - - 384,161 Loans held for sale 234 238 238 - - Bank-owned life insurance 14,946 14,946 14,946 - - Accrued interest receivable 1,098 1,098 1,098 - Financial Instruments - Liabilities: Demand, savings and club accounts 231,378 231,378 231,378 - - Certificate deposit accounts 137,256 140,728 - - 140,728 Federal Home Loan Bank advances 48,856 49,843 - - 49,843 Securities sold under agreements to repurchase 1,964 1,964 1,964 - - Accrued interest payable 194 194 194 - - |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Jun. 30, 2017 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | (13) Accumulated Other Comprehensive Income The following tables present the significant amounts reclassified out of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income by component for the three and nine months ended June 30, 2017 and 2016: Unrealized Gains on Unrecognized Available for Sale Pension Securities Costs Total Balance as of March 31, 2017 $ 196 $ (620 ) $ (424 ) Other comprehensive income before reclassification 1,001 - 1,001 Amount reclassified from accumulated other comprehensive income (38 ) 15 (23 ) Total other comprehensive income 963 15 978 Balance as of June 30, 2017 $ 1,159 $ (605 ) $ 554 Balance as of September 30, 2016 $ 881 $ (745 ) $ 136 Other comprehensive income before reclassification 295 - 295 Amount reclassified from accumulated other comprehensive income (17 ) 140 123 Total other comprehensive income 278 140 418 Balance as of June 30, 2017 $ 1,159 $ (605 ) $ 554 Amount Reclassified from Accumulated Affected Line on Other Comprehensive the Consolidated Income Statements of Income Three months ended June 30, 2017: Unrealized gains on available for sale securities $ 58 Net securities gains (20 ) Income tax expense (benefit) $ 38 Net of tax Amortization of defined benefit items: Actuarial gains $ (23 ) Compensation and employee benefits 8 Income tax expense (benefit) $ (15 ) Net of tax Total reclassification for the period $ 23 Net income Nine months ended June 30, 2017: Unrealized gains on available for sale securities $ 26 Net securities gains (9 ) Income tax expense (benefit) $ 17 Net of tax Amortization of defined benefit items: Actuarial gains $ (69 ) Compensation and employee benefits Distribution settlement (144 ) Compensation and employee benefits 73 Income tax expense (benefit) $ (140 ) Net of tax Total reclassification for the period $ (123 ) Net income Unrealized Gains on Unrecognized Available for Sale Pension Securities Costs Total Balance as of March 31, 2016 $ 750 $ (583 ) $ 167 Other comprehensive income before reclassification 263 - 263 Amount reclassified from accumulated other comprehensive income (7 ) - (7 ) Total other comprehensive income 256 - 256 Balance as of June 30, 2016 $ 1,006 $ (583 ) $ 423 Balance as of September 30, 2015 $ 760 $ (583 ) $ 177 Other comprehensive income before reclassification 306 - 306 Amount reclassified from accumulated other comprehensive income (60 ) - (60 ) Total other comprehensive income 246 - 246 Balance as of June 30, 2016 $ 1,006 $ (583 ) $ 423 Amount Reclassified from Accumulated Affected Line on Other Comprehensive the Consolidated Income Statements of Income Three months ended June 30, 2016 Unrealized gains on available for sale securities $ 10 Net securities gains (3 ) Income tax expense $ 7 Net of tax Amortization of defined benefit items: Actuarial gains $ - Compensation and employee benefits Distribution settlement - Compensation and employee benefits - Income tax expense $ - Net of tax Total reclassification for the period $ 7 Net income Nine months ended June 30, 2016 Unrealized gains on available for sale securities $ 91 Net securities gains (31 ) Income tax expense $ 60 Net of tax Amortization of defined benefit items: Actuarial gains $ - Compensation and employee benefits Distribution settlement - Compensation and employee benefits - Income tax expense $ - Net of tax Total reclassification for the period $ 60 Net income |
Merger with Allegheny Valley Ba
Merger with Allegheny Valley Bancorp, Inc. | 9 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Merger with Allegheny Valley Bancorp, Inc. | (14) Merger with Allegheny Valley Bancorp, Inc. On August 29, 2016, Standard Financial Corp. and Allegheny Valley entered into an Agreement and Plan of Merger, which contemplated that Allegheny Valley would merge with and into Standard Financial Corp., with Standard Financial Corp. as the surviving entity to be known as “Standard AVB Financial Corp.” On April 7, 2017, Allegheny Valley merged with and into Standard Financial Corp. Accordingly, the Company is now referred to as “Standard AVB Financial Corp.” Under the terms of the Merger Agreement, each outstanding share of Allegheny Valley common stock was converted into the right to receive 2.083 shares of Standard AVB Financial common stock and cash in lieu of fractional shares (the “Merger Consideration”). As of the closing date, there were 1,040,923 outstanding shares of Allegheny Valley common stock which resulted in a total of 2,168,097 shares of Standard AVB Financial common stock issued for exchange, subject to adjustment for fractional shares. Cash for any fractional shares of Standard AVB Financial common stock was based on $26.60 for each whole share, based on the average closing price of Standard Financial common stock for the five trading days immediately preceding the merger date. In addition, each option to purchase Allegheny Valley common stock was converted into an option to purchase Standard AVB Financial common stock at the same terms and conditions as were applicable prior to the holding company merger, except that the number of shares of Standard AVB Financial common stock issuable upon exercise of a converted option was adjusted by multiplying the number of shares of Allegheny Valley common stock issuable by 2.083. Additionally, the exercise price per share of a converted option was adjusted by dividing the exercise price per share of the Allegheny Valley option by 2.083. Additionally, at the consummation of the holding company merger, each Allegheny Valley restricted stock award became fully vested and was converted into the right to receive the Merger Consideration. The acquired assets and assumed liabilities were measured at estimated fair values. Management made significant estimates and exercised significant judgement in accounting for the acquisition. Management measured loan fair values based on loan file reviews, appraised collateral values, expected cash flows, historical loss factors of Allegheny Valley and charge-off statistics published by the FDIC. The Company also recorded an identifiable intangible asset representing the core deposit base of Allegheny Valley based on management’s evaluation of the cost of deposits relative to alternative funding sources. Management used significant estimates including the average lives of depository accounts, future interest rate levels, and the cost of servicing various depository products. Management used market quotations to determine the fair value of investment securities. The merger resulted in the acquisition of loans with and without evidence of credit quality deterioration. The fair value of the loan portfolio included separate adjustments to reflect a credit risk and marketability component and a yield component reflecting the differential between portfolio and market yields. Allegheny Valley loans were deemed impaired at the acquisition date if the Company did not expect to receive all contractually required payments at the acquisition date. At the acquisition date, the Company recorded $2,467,000 of purchased credit impaired loans. These loans were reserved at 100% given the unlikelihood of collection of the principal and interest on the loans. Allegheny Valley’s loans without evidence of credit deterioration were fair valued by discounting both expected principal and interest cash flows using observable discount rates for similar instruments that a market participant would consider in determining fair value. Additionally, consideration was given to management’s best estimates of default rates and payment speeds. At acquisition date, Allegheny Valley’s loan portfolio without evidence of deterioration totaled $316,448,000 and was recorded at a fair value of $311,736,000, which included an interest rate adjustment of $861,000 and a general credit adjustment of $3,851,000. The following table summarizes the merger with Allegheny Valley as of April 7, 2017: (Dollars in thousands, except per share data) Purchase Price Consideration in Common Stock AVLY common shares settled for stock 1,040,924 Exchange Ratio 2.083 Standard AVB Financial Corp. shares issued 2,168,097 Value assigned to Standard AVB Financial common share $ 26.60 Purchase price per share $ 55.41 Purchase price assigned AVLY common shares exchanged for Standard AVB Financial Corp. $ 57,672 Net Assets Acquired: AVLY shareholders' equity $ 48,398 AVLY Goodwill (8,144 ) Total tangible equity $ 40,254 Adjustments to reflect assets acquired at fair value: Loans Interest rate (861 ) General Credit (3,851 ) Specific Credit-non amortizing (2,467 ) Elimination of existing loan ALLL 3,886 Certificates of Deposit Yield Premium (902 ) Core Deposit Intangible 4,116 Fixed assets 384 Deferred Tax Asset (103 ) $ 40,456 Goodwill resulting from the merger $ 17,216 The following condensed statement reflects the values assigned to Allegheny Valley. net assets as of the acquisition date: Total Purchase Price $ 57,672 Net Assets Acquired: Cash 9,611 Securities available for sale 95,919 Loan 311,736 Premises 4,434 Accrued Interest receivable 1,144 Bank-owned life insurance 6,486 Deferred tax assets - Core deposit intangible 4,116 Other assets 7,481 Time deposits (70,422 ) Deposits other than time deposits (263,522 ) Borrowings (64,624 ) Accrued interest payable Other liabilities (1,903 ) 40,456 Goodwill resulting from the AVLY merger $ 17,216 The Company recorded goodwill and other intangibles associated with the merger totaling $21,332,000. Goodwill is not amortized, but is periodically evaluated for impairment. The Company did not recognize any impairment during the nine months ended June 30, 2017. The carrying amount of goodwill at June 30, 2017 related to the Allegheny Valley merger was $17,216,000, of which none is deductible for tax purposes. Identifiable intangibles are amortized to their estimated residual values over the expected useful lives of such assets. The gross carrying amount of the core deposit intangible at June 30, 2017 was $3,858,000 with $258,000 of accumulated amortization as of that date. As of June 30, 2017, the current year and estimated future amortization expense for the core deposit intangible is (dollars in thousands): Remaining 2017 $ 257 2018 900 2019 676 2020 508 2021 380 2022 325 2023 325 2024 325 2025 162 $ 3,858 Results of operations for Allegheny Valley prior to the acquisition date are not included in the Consolidated Statement of Income for the three and nine month periods ended June 30, 2017. The following table presents financial information regarding the former Allegheny Valley operations that are included in the Consolidated Statement of Income for the three and nine months ended June 30, 2017. Actual From Acquisition Date Through June 30, 2017 (in thousands) Net interest income $ 3,259 Noninterest income 568 Net income $ 1,214 The following table presents unaudited pro forma information as if the acquisition of Allegheny Valley had occurred on October 1, 2016. This has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the acquisition occurred as of the beginning of the periods presented, nor is it indicative of future results. Furthermore, the unaudited pro forma information does not reflect management’s estimate of any revenue-enhancing opportunities nor anticipated cost savings as a result of the integration and consolidation of the acquisition. Merger and acquisition costs and amortization of fair value adjustments are included in the amounts below. Proformas Nine-month period ended June 30, 2017 2016 (in thousands, except per share data) Net interest income $ 21,706 $ 21,276 Noninterest income 4,238 3,811 Net income 1,668 5,326 Pro forma earnings per share: Basic $ 0.53 $ 1.15 Diluted $ 0.51 $ 1.13 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation The accompanying consolidated financial statements include the accounts of Standard AVB Financial Corp. (the “Company”) and its direct and indirect wholly owned subsidiaries, Standard Bank, PaSB (the “Bank”), and Westmoreland Investment Company. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements were prepared in accordance with instructions to Form 10-Q, and therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles in the United States. All adjustments (consisting of normal recurring adjustments), which, in the opinion of management are necessary for a fair presentation of the financial statements and to make the financial statements not misleading have been included. The unaudited consolidated financial statements and other financial information contained in this quarterly report on Form 10-Q should be read in conjunction with the audited financial statements of Standard Financial Corp. at and for the year ended September 30, 2016 contained in the Company’s definitive prospectus dated February 1, 2017 (the “Prospectus”) as filed with the Securities and Exchange Commission pursuant to Securities Act Rule 424(b)(3) on February 3, 2017. The results for the three and nine month periods ended June 30, 2017 is not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2017 or any future interim period. Certain amounts in the 2016 financial statements have been reclassified to conform to the 2017 presentation format. These reclassifications had no effect on stockholders’ equity or net income. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Earnings per Share | |
Schedule of computation of basic and diluted EPS | Three Months Ended June 30, Nine Months Ended June 30, 2017 2016 2017 2016 Net income available to common stockholders $ 385 $ 866 $ 1,507 $ 2,633 Basic EPS: Weighted average shares outstanding 4,427,698 2,358,863 3,078,869 2,469,755 Basic EPS $ 0.09 $ 0.37 $ 0.49 $ 1.07 Diluted EPS: Weighted average shares outstanding 4,427,698 2,358,863 3,078,869 2,469,755 Diluted effect of common stock equivalents 116,882 77,886 94,645 82,437 Total diluted weighted average shares outstanding 4,544,580 2,436,749 3,173,514 2,552,192 Diluted EPS $ 0.08 $ 0.36 $ 0.47 $ 1.03 |
Investment Securities (Tables)
Investment Securities (Tables) - Investment securities available for sale | 9 Months Ended |
Jun. 30, 2017 | |
Investment Securities | |
Schedule of investment securities available for sale | Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2017: U.S. government and agency obligations due: Beyond 1 year but within 5 years $ 10,472 $ 17 $ (46 ) $ 10,443 Beyond 5 year but within 10 years 3,362 44 - 3,406 Corporate bonds due: Beyond 1 year but within 5 years 4,437 9 (12 ) 4,434 Beyond 5 years but within 10 years 1,486 20 - 1,506 Municipal obligations due: Beyond 1 year but within 5 years 8,911 526 - 9,437 Beyond 5 years but within 10 years 27,719 430 (8 ) 28,141 Beyond 10 years 21,613 222 (122 ) 21,713 Equity securities 3,852 310 (89 ) 4,073 $ 81,852 $ 1,578 $ (277 ) $ 83,153 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2016: U.S. government and agency obligations due: Beyond 1 year but within 5 years $ 10,000 $ 32 $ (5 ) $ 10,027 Corporate bonds due: Within 1 year 2,032 - (7 ) 2,025 Beyond 1 year but within 5 years 507 2 - 509 Municipal obligations due: Within 1 year 978 12 - 990 Beyond 1 year but within 5 years 3,784 294 - 4,078 Beyond 5 years but within 10 years 12,144 417 - 12,561 Beyond 10 years 11,769 185 (38 ) 11,916 Equity securities 2,052 207 (115 ) 2,144 $ 43,266 $ 1,149 $ (165 ) $ 44,250 |
Schedule of fair value and gross unrealized losses on investment securities and the length of time the securities have been in a continuous unrealized loss position | June 30, 2017 Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. government and agency obligations $ 7,955 $ (46 ) $ - $ - $ 7,955 $ (46 ) Corporate bonds 1,763 (12 ) - - 1,763 (12 ) Municipal obligations 7,334 (130 ) - - 7,334 (130 ) Equity securities 2,542 (89 ) - - 2,542 (89 ) Total $ 19,594 $ (277 ) $ - $ - $ 19,594 $ (277 ) September 30, 2016 Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. government and agency obligations $ 1,995 $ (5 ) $ - $ - $ 1,995 $ (5 ) Corporate bonds 1,021 (7 ) - - 1,021 (7 ) Municipal obligations 2,803 (38 ) - - 2,803 (38 ) Equity securities 171 (13 ) 570 (102 ) 741 (115 ) Total $ 5,990 $ (63 ) $ 570 $ (102 ) $ 6,560 $ (165 ) |
Mortgage-Backed Securities (Tab
Mortgage-Backed Securities (Tables) - Mortgage-backed securities | 9 Months Ended |
Jun. 30, 2017 | |
Mortgage-backed securities | |
Schedule of securities available for sale | Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2017: Government pass-throughs: Ginnie Mae $ 9,042 $ 41 $ (33 ) $ 9,050 Fannie Mae 21,492 250 - 21,742 Freddie Mac 14,802 155 (33 ) 14,924 Private pass-throughs 8,998 89 - 9,087 Collateralized mortgage obligations 8,046 9 (23 ) 8,032 $ 62,380 $ 544 $ (89 ) $ 62,835 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2016: Government pass-throughs: Ginnie Mae $ 5,695 $ 37 $ (17 ) $ 5,715 Fannie Mae 5,806 211 - 6,017 Freddie Mac 6,051 113 - 6,164 Private pass-throughs 87 - - 87 Collateralized mortgage obligations 1,663 9 (2 ) 1,670 $ 19,302 $ 370 $ (19 ) $ 19,653 |
Schedule of contractual maturity | Amortized Cost Fair Value Due in one year or less $ 13 $ 13 Due after one year through five years 516 532 Due after five years throgh ten years 3,526 3,606 Due after ten years 58,325 58,684 Total Mortgage-Backed Securities $ 62,380 $ 62,835 |
Schedule of fair value and gross unrealized losses on mortgage-backed securities and the length of time the securities have been in a continuous unrealized loss position | June 30, 2017 Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Government pass-throughs: Ginnie Mae $ 2,251 $ (18 ) $ 1,088 $ (15 ) $ 3,339 $ (33 ) Freddie Mac 1,651 (16 ) 1,200 (17 ) 2,851 (33 ) Collateralized mortgage obligations 813 (12 ) 521 (11 ) 1,334 (23 ) Total $ 4,715 $ (46 ) $ 2,809 $ (43 ) $ 7,524 $ (89 ) September 30, 2016 Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Government pass-throughs: Ginnie Mae $ 2,748 $ (6 ) $ 1,313 $ (11 ) $ 4,061 $ (17 ) Collateralized mortgage obligations - - 604 (2 ) 604 (2 ) Total $ 2,748 $ (6 ) $ 1,917 $ (13 ) $ 4,665 $ (19 ) |
Loans Receivable and Related 27
Loans Receivable and Related Allowance for Loan Losses (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Schedule of loans receivable | Real Estate Loans One-to-four- Home family Commercial Equity Loans Residential and Real and Lines Commercial Other Construction Estate of Credit Business Loans Total June 30, 2017: Collectively evaluated for impairment $ 257,227 $ 291,247 $ 127,887 $ 52,935 $ 5,557 $ 734,853 Individually evaluated for impairment - 2,525 - - - 2,525 Total loans before allowance for loan losses $ 257,227 $ 293,772 $ 127,887 $ 52,935 $ 5,557 $ 737,378 September 30, 2016: Collectively evaluated for impairment $ 167,512 $ 119,412 $ 79,157 $ 14,779 $ 553 $ 381,413 Individually evaluated for impairment - 467 - - - 467 Total loans before allowance for loan losses $ 167,512 $ 119,879 $ 79,157 $ 14,779 $ 553 $ 381,880 |
Schedule of loans acquired | Real Estate Loans One-to-four- Home family Commercial Equity Loans Residential and Real and Lines Commercial Other Construction Estate of Credit Business Loans Total April 7, 2017 $ 66,995 $ 160,626 $ 51,759 $ 26,841 $ 5,515 $ 311,736 |
Schedule of components purchase accounting adjustments related to purchased credit Impaired loans acquired | Contractually required principal and interest $ 2,467 Non-accretable discount (2,467 ) Expected cash flows - Accretable discount - Estimated fair value $ - |
Schedule of impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary | Impaired Loans With Impaired Loans Total Impaired Loans Recorded Related Recorded Recorded Unpaid Principal Investment Allowance Investment Investment Balance June 30, 2017: Commercial real estate $ - $ - $ 2,525 $ 2,525 $ 2,552 Total impaired loans $ - $ - $ 2,525 $ 2,525 $ 2,552 September 30, 2016: Commercial real estate $ - $ - $ 467 $ 467 $ 467 Total impaired loans $ - $ - $ 467 $ 467 $ 467 |
Schedule of average recorded investment in impaired loans and related interest income recognized for the periods indicated | Three months ended June 30, Nine months ended June 30, 2017 2016 2017 2016 Average investment in impaired loans: Commercial real estate $ 422 $ 783 $ 435 $ 728 Total impaired loans $ 422 $ 783 $ 435 $ 728 |
Schedule of classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system | Special Pass Mention Substandard Doubtful Total June 30, 2017: Real estate loans: One-to-four-family residential and construction $ 254,488 $ 825 $ 1,914 $ - $ 257,227 Commercial real estate 285,833 5,260 2,679 - $ 293,772 Home equity loans and lines of credit 127,633 47 207 - $ 127,887 Commercial business loans 52,693 242 - - $ 52,935 Other loans 5,545 - 12 - $ 5,557 Total $ 726,192 $ 6,374 $ 4,812 $ - $ 737,378 September 30, 2016: Real estate loans: One-to-four-family residential and construction $ 166,996 $ - $ 516 $ - $ 167,512 Commercial real estate 119,412 - 467 - 119,879 Home equity loans and lines of credit 79,084 - 73 - 79,157 Commercial business loans 14,779 - - - 14,779 Other loans 553 - - - 553 Total $ 380,824 $ - $ 1,056 $ - $ 381,880 |
Schedule of classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | 30-59 Days 60-89 Days Non-Accrual 90 Days Past Total Current Past Due Past Due (90 Days+) Due & Accruing Loans June 30, 2017: Real estate loans: One-to-four-family residential and construction $ 254,731 $ 556 $ 108 $ 1,090 $ 742 $ 257,227 Commercial real estate 290,805 123 164 2,680 - 293,772 Home equity loans and lines of credit 127,461 147 72 207 - 127,887 Commercial business loans 52,935 - - - - 52,935 Other loans 5,521 7 4 - 25 5,557 Total $ 731,453 $ 833 $ 348 $ 3,977 $ 767 $ 737,378 September 30, 2016: Real estate loans: One-to-four-family residential and construction $ 166,136 $ 566 $ 294 $ 516 $ - $ 167,512 Commercial real estate 119,638 80 61 100 - 119,879 Home equity loans and lines of credit 78,888 115 81 73 - 79,157 Commercial business loans 14,779 - - - - 14,779 Other loans 550 3 - - - 553 Total $ 379,991 $ 764 $ 436 $ 689 $ - $ 381,880 |
Schedule of activity in the allowance | Real Estate Loans One-to-four- Home family Commercial Equity Loans Residential and Real and Lines Commercial Other Construction Estate of Credit Business Loans Total Three Months Ended: Balance at March 31, 2017 $ 1,299 $ 1,687 $ 532 $ 255 $ 4 $ 3,777 Charge-offs (1 ) - (6 ) - (4 ) (11 ) Recoveries 28 - - 1 3 32 Provision 20 100 16 30 1 167 Balance at June 30, 2017 $ 1,346 $ 1,787 $ 542 $ 286 $ 4 $ 3,965 Balance at March 31, 2016 $ 1,076 $ 1,869 $ 460 $ 391 $ 2 $ 3,798 Charge-offs (93 ) - - (20 ) - (113 ) Recoveries - 3 2 2 1 8 Provision - - - - - - Balance at June 30, 2016 $ 983 $ 1,872 $ 462 $ 373 $ 3 $ 3,693 Nine Months Ended: Balance at September 30, 2016 $ 1,250 $ 1,786 $ 547 $ 211 $ 6 $ 3,800 Charge-offs (42 ) - (6 ) (1 ) (26 ) (75 ) Recoveries 28 1 - 1 3 33 Provision 110 - 1 75 21 207 Balance June 30, 2017 $ 1,346 $ 1,787 $ 542 $ 286 $ 4 $ 3,965 Balance at September 30, 2015 $ 1,122 $ 1,867 $ 457 $ 411 $ 22 $ 3,879 Charge-offs (139 ) - (4 ) (41 ) (22 ) (206 ) Recoveries - 5 9 3 3 20 Provision - - - - - - Balance at June 30, 2016 $ 983 $ 1,872 $ 462 $ 373 $ 3 $ 3,693 Real Estate Loans One-to-four- Home family Commercial Equity Loans Residential and Real and Lines Commercial Other Construction Estate of Credit Business Loans Total Evaluated for Impairment: Individually $ - $ - $ - $ - $ - $ - Collectively 1,346 1,787 542 286 4 3,965 Balance at June 30, 2017 $ 1,346 $ 1,787 $ 542 $ 286 $ 4 $ 3,965 Evaluated for Impairment: Individually $ - $ - $ - $ - $ - $ - Collectively 1,250 1,786 547 211 6 3,800 Balance at September 30, 2016 $ 1,250 $ 1,786 $ 547 $ 211 $ 6 $ 3,800 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Stock Based Compensation | |
Summary of transactions regarding the options under the Plan | Options Weighted Outstanding at September 30, 2016 278,075 $ 16.50 Granted - - Merger related options 73,051 19.61 Exercised (30,060 ) 16.50 Forfeited (6,000 ) 16.50 Outstanding at June 30, 2017 315,066 $ 17.22 Exercisable at June 30, 2017 266,663 $ 17.35 |
Summary of transactions regarding restricted stock under the Plan | Number of Weighted Non-vested shares at September 30, 2016 22,260 $ 16.50 Granted - - Vested - - Forfeited (2,400 ) 16.50 Non-vested shares at June 30, 2017 19,860 $ 16.50 |
Pension Information (Tables)
Pension Information (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of net periodic pension benefit | Three Months Ended June 30, Nine Months Ended June 30, 2017 2016 2017 2016 Service cost $ - $ - $ - $ - Interest cost (36 ) (38 ) (108 ) (76 ) Expected return on plan assets 40 37 120 74 Settlement obligation - - (105 ) - Other components (23 ) - (69 ) - Net periodic pension benefit $ (19 ) $ (1 ) $ (162 ) $ (2 ) |
Fair Value of Assets and Liab30
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Fair Value of Assets and Liabilities | |
Schedule of assets measured at fair value on a recurring basis by level within the fair value hierarchy | Quoted Prices in Significant Active Markets for Other Significant Identical Assets Observable Unobservable or Liabilities Inputs Inputs (Level 1) (Level 2) (Level 3) Total June 30, 2017: Investment securities available for sale: U.S. government and agency obligations $ - $ 13,849 $ - $ 13,849 Corporate bonds - 5,940 - 5,940 Municipal obligations - 59,291 - 59,291 Equity securities 4,073 - - 4,073 Total investment securities available for sale 4,073 79,080 - 83,153 Mortgage-backed securities available for sale - 62,835 - 62,835 Total recurring fair value measurements $ 4,073 $ 141,915 $ - $ 145,988 September 30, 2016: Investment securities available for sale: U.S. government and agency obligations $ - $ 10,027 $ - $ 10,027 Corporate bonds - 2,534 - 2,534 Municipal obligations - 29,545 - 29,545 Equity securities 2,144 - - 2,144 Total investment securities available for sale 2,144 42,106 - 44,250 Mortgage-backed securities available for sale - 19,653 - 19,653 Total recurring fair value measurements $ 2,144 $ 61,759 $ - $ 63,903 |
Schedule of assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy | Quoted Prices in Significant Active Markets for Other Significant Identical Assets Observable Unobservable or Liabilities Inputs Inputs (Level 1) (Level 2) (Level 3) Total June 30, 2017: Foreclosed real estate $ - $ - $ 137 $ 137 Impaired loans - - 2,525 2,525 Total nonrecurring fair value measurements $ - $ - $ 2,662 $ 2,662 September 30, 2016: Foreclosed real estate $ - $ - $ 281 $ 281 Impaired loans - - 467 467 Total nonrecurring fair value measurements $ - $ - $ 748 $ 748 |
Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value | Quantitative Information about Level 3 Fair Value Measurements Valuation Unobservable Range June 30, 2017 September 30, 2016 Techniques Input (Weighted Average) Foreclosed real estate $ 137 $ 281 Appraisal of Appraisal adjustments (2) 0% to 40% (19%) collateral (1) Liquidation expenses (2) 0% to 10% (8%) Impaired loans $ 2,525 $ 467 Fair value of Appraisal adjustments (2) 0% to 20% (20%) collateral (1), (3) Liquidation expenses (2) 0% to 10% (6%) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. (3) Includes qualitative adjustments by management and estimated liquidation expenses. |
Schedule of carrying amount, fair value, and placement in the fair value hierarchy of the financial instruments | Fair Value Measurements Quoted Prices in Significant Active Markets for Other Significant Total Identical Assets Observable Unobservable Carrying Fair or Liabilities Inputs Inputs Amount Value (Level 1) (Level 2) (Level 3) June 30, 2017: Financial Instruments - Assets: Cash on hand and due from banks $ 6,814 6,814 6,814 $ - $ - Interest-earning deposits in other institutions 13,420 13,420 13,420 - - Certificate of deposit 500 500 500 - - Investment securities 83,153 83,153 4,073 79,080 - Mortgage-backed securities 62,835 62,835 - 62,835 - Federal Home Loan Bank stock 8,367 8,367 8,367 - - Loans receivable 733,413 734,551 - - 734,551 Loans held for sale 816 828 828 - - Bank-owned life insurance 21,763 21,763 21,763 - - Accrued interest receivable 2,368 2,368 2,368 - Financial Instruments - Liabilities: Demand, savings and club accounts 496,508 496,508 496,508 - - Certificate deposit accounts 216,218 216,837 - - 216,837 Federal Home Loan Bank short-term borrowings 80,529 80,529 80,529 - - Federal Home Loan Bank advances 42,907 43,333 - - 43,333 Securities sold under agreements to repurchase 2,529 2,529 2,529 - - Accrued interest payable 891 891 891 - - September 30, 2016: Financial Instruments - Assets: Cash on hand and due from banks $ 1,786 $ 1,786 $ 1,786 $ - $ - Interest-earning deposits in other institutions 16,375 16,375 16,375 - - Certificate of deposit 500 500 500 - - Investment securities 44,250 44,250 2,144 42,106 - Mortgage-backed securities 19,653 19,653 - 19,653 - Federal Home Loan Bank stock 3,161 3,161 3,161 - - Loans receivable 378,080 384,161 - - 384,161 Loans held for sale 234 238 238 - - Bank-owned life insurance 14,946 14,946 14,946 - - Accrued interest receivable 1,098 1,098 1,098 - Financial Instruments - Liabilities: Demand, savings and club accounts 231,378 231,378 231,378 - - Certificate deposit accounts 137,256 140,728 - - 140,728 Federal Home Loan Bank advances 48,856 49,843 - - 49,843 Securities sold under agreements to repurchase 1,964 1,964 1,964 - - Accrued interest payable 194 194 194 - - |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Accumulated Other Comprehensive Income | |
Schedule of changes in accumulated other comprehensive income (loss) by component | Unrealized Gains on Unrecognized Available for Sale Pension Securities Costs Total Balance as of March 31, 2017 $ 196 $ (620 ) $ (424 ) Other comprehensive income before reclassification 1,001 - 1,001 Amount reclassified from accumulated other comprehensive income (38 ) 15 (23 ) Total other comprehensive income 963 15 978 Balance as of June 30, 2017 $ 1,159 $ (605 ) $ 554 Balance as of September 30, 2016 $ 881 $ (745 ) $ 136 Other comprehensive income before reclassification 295 - 295 Amount reclassified from accumulated other comprehensive income (17 ) 140 123 Total other comprehensive income 278 140 418 Balance as of June 30, 2017 $ 1,159 $ (605 ) $ 554 Unrealized Gains on Unrecognized Available for Sale Pension Securities Costs Total Balance as of March 31, 2016 $ 750 $ (583 ) $ 167 Other comprehensive income before reclassification 263 - 263 Amount reclassified from accumulated other comprehensive income (7 ) - (7 ) Total other comprehensive income 256 - 256 Balance as of June 30, 2016 $ 1,006 $ (583 ) $ 423 Balance as of September 30, 2015 $ 760 $ (583 ) $ 177 Other comprehensive income before reclassification 306 - 306 Amount reclassified from accumulated other comprehensive income (60 ) - (60 ) Total other comprehensive income 246 - 246 Balance as of June 30, 2016 $ 1,006 $ (583 ) $ 423 |
Schedule of significant amounts reclassified out of accumulated other comprehensive income | Amount Reclassified from Accumulated Affected Line on Other Comprehensive the Consolidated Income Statements of Income Three months ended June 30, 2017: Unrealized gains on available for sale securities $ 58 Net securities gains (20 ) Income tax expense (benefit) $ 38 Net of tax Amortization of defined benefit items: Actuarial gains $ (23 ) Compensation and employee benefits 8 Income tax expense (benefit) $ (15 ) Net of tax Total reclassification for the period $ 23 Net income Nine months ended June 30, 2017: Unrealized gains on available for sale securities $ 26 Net securities gains (9 ) Income tax expense (benefit) $ 17 Net of tax Amortization of defined benefit items: Actuarial gains $ (69 ) Compensation and employee benefits Distribution settlement (144 ) Compensation and employee benefits 73 Income tax expense (benefit) $ (140 ) Net of tax Total reclassification for the period $ (123 ) Net income Amount Reclassified from Accumulated Affected Line on Other Comprehensive the Consolidated Income Statements of Income Three months ended June 30, 2016 Unrealized gains on available for sale securities $ 10 Net securities gains (3 ) Income tax expense $ 7 Net of tax Amortization of defined benefit items: Actuarial gains $ - Compensation and employee benefits Distribution settlement - Compensation and employee benefits - Income tax expense $ - Net of tax Total reclassification for the period $ 7 Net income Nine months ended June 30, 2016 Unrealized gains on available for sale securities $ 91 Net securities gains (31 ) Income tax expense $ 60 Net of tax Amortization of defined benefit items: Actuarial gains $ - Compensation and employee benefits Distribution settlement - Compensation and employee benefits - Income tax expense $ - Net of tax Total reclassification for the period $ 60 Net income |
Merger with Allegheny Valley 32
Merger with Allegheny Valley Bancorp, Inc. (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of merger with Allegheny Valley | Purchase Price Consideration in Common Stock AVLY common shares settled for stock 1,040,924 Exchange Ratio 2.083 Standard AVB Financial Corp. shares issued 2,168,097 Value assigned to Standard AVB Financial common share $ 26.60 Purchase price per share $ 55.41 Purchase price assigned AVLY common shares exchanged for Standard AVB Financial Corp. $ 57,672 Net Assets Acquired: AVLY shareholders' equity $ 48,398 AVLY Goodwill (8,144 ) Total tangible equity $ 40,254 Adjustments to reflect assets acquired at fair value: Loans Interest rate (861 ) General Credit (3,851 ) Specific Credit-non amortizing (2,467 ) Elimination of existing loan ALLL 3,886 Certificates of Deposit Yield Premium (902 ) Core Deposit Intangible 4,116 Fixed assets 384 Deferred Tax Asset (103 ) $ 40,456 Goodwill resulting from the merger $ 17,216 |
Schedule of condensed statement reflects the values assigned to Allegheny Valley | Total Purchase Price $ 57,672 Net Assets Acquired: Cash 9,611 Securities available for sale 95,919 Loan 311,736 Premises 4,434 Accrued Interest receivable 1,144 Bank-owned life insurance 6,486 Deferred tax assets - Core deposit intangible 4,116 Other assets 7,481 Time deposits (70,422 ) Deposits other than time deposits (263,522 ) Borrowings (64,624 ) Accrued interest payable Other liabilities (1,903 ) 40,456 Goodwill resulting from the AVLY merger $ 17,216 |
Schedule of estimated future amortization expense | Remaining 2017 $ 257 2018 900 2019 676 2020 508 2021 380 2022 325 2023 325 2024 325 2025 162 $ 3,858 |
Schedule of allegheny Valley operations included in Consolidated Statement of Income | Actual From Acquisition Date Through June 30, 2017 (in thousands) Net interest income $ 3,259 Noninterest income 568 Net income $ 1,214 |
Schedule of merger and acquisition costs and amortization of fair value adjustments | Proformas Nine-month period ended June 30, 2017 2016 (in thousands, except per share data) Net interest income $ 21,706 $ 21,276 Noninterest income 4,238 3,811 Net income 1,668 5,326 Pro forma earnings per share: Basic $ 0.53 $ 1.15 Diluted $ 0.51 $ 1.13 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings per Share | ||||
Net income available to common stockholders | $ 385 | $ 866 | $ 1,507 | $ 2,633 |
Basic EPS: | ||||
Weighted average shares outstanding | 4,427,698 | 2,358,863 | 3,078,869 | 2,469,755 |
Basic EPS (in dollars per share) | $ 0.09 | $ 0.37 | $ 0.49 | $ 1.07 |
Diluted EPS: | ||||
Weighted average shares outstanding | 4,427,698 | 2,358,863 | 3,078,869 | 2,469,755 |
Diluted effect of common stock equivalents (in shares) | 116,882 | 77,886 | 94,645 | 82,437 |
Total diluted weighted average shares outstanding | 4,544,580 | 2,436,749 | 3,173,514 | 2,552,192 |
Diluted EPS (in dollars per share) | $ 0.08 | $ 0.36 | $ 0.47 | $ 1.03 |
Investment Securities (Details)
Investment Securities (Details) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2017USD ($)Security | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)Security | Jun. 30, 2016USD ($) | Sep. 30, 2016USD ($) | |
Investment securities available for sale | |||||
Fair Value | $ 83,153,000 | $ 83,153,000 | $ 44,250,000 | ||
Proceeds, gains and losses on sale of investment securities available for sale | |||||
Proceeds from sales of investment securities | 5,900,000 | 6,312,000 | $ 249,000 | ||
Investment securities available for sale | |||||
Investment securities available for sale | |||||
Amortized Cost | 81,852,000 | 81,852,000 | 43,266,000 | ||
Gross Unrealized Gains | 1,578,000 | 1,578,000 | 1,149,000 | ||
Gross Unrealized Losses | (277,000) | (277,000) | (165,000) | ||
Fair Value | 83,153,000 | 83,153,000 | 44,250,000 | ||
Proceeds, gains and losses on sale of investment securities available for sale | |||||
Gains on sales of investment securities | $ 10,000 | 49,000 | |||
Losses on sales of investment securities | 15,000 | 57,000 | 40,000 | ||
Proceeds from sales of investment securities | 17,000 | $ 53,000 | 91,000 | $ 249,000 | |
Securities in a continuous unrealized loss position presented by length of time | |||||
Less than 12 Months, Fair Value | 19,594,000 | 19,594,000 | 5,990,000 | ||
Less than 12 Months, Gross Unrealized Losses | (277,000) | (277,000) | (63,000) | ||
12 Months or More, Fair Value | 570,000 | ||||
12 Months or More, Gross Unrealized Losses | (102,000) | ||||
Total, Fair Value | 19,594,000 | 19,594,000 | 6,560,000 | ||
Total, Gross Unrealized Losses | $ (277,000) | $ (277,000) | (165,000) | ||
Number of securities held in an unrealized loss position | Security | 22 | 22 | |||
Investment securities pledged to secure repurchase agreements and public funds accounts | $ 13,800,000 | $ 13,800,000 | 25,900,000 | ||
U.S. government and agency obligations | |||||
Amortized Cost | |||||
Beyond 1 year but within 5 years | 10,472,000 | 10,472,000 | 10,000,000 | ||
Beyond 5 years but within 10 years | 3,362,000 | 3,362,000 | |||
Gross Unrealized Gains | |||||
Beyond 1 year but within 5 years | 17,000 | 17,000 | 32,000 | ||
Beyond 5 years but within 10 years | 44,000 | 44,000 | |||
Gross Unrealized Losses | |||||
Beyond 1 year but within 5 years | (46,000) | (46,000) | (5,000) | ||
Beyond 5 years but within 10 years | |||||
Fair Value | |||||
Beyond 1 year but within 5 years | 10,443,000 | 10,443,000 | 10,027,000 | ||
Beyond 5 years but within 10 years | 3,406,000 | 3,406,000 | |||
Securities in a continuous unrealized loss position presented by length of time | |||||
Less than 12 Months, Fair Value | 7,955,000 | 7,955,000 | 1,995,000 | ||
Less than 12 Months, Gross Unrealized Losses | (46,000) | (46,000) | (5,000) | ||
12 Months or More, Fair Value | |||||
12 Months or More, Gross Unrealized Losses | |||||
Total, Fair Value | 7,955,000 | 7,955,000 | 1,995,000 | ||
Total, Gross Unrealized Losses | (46,000) | (46,000) | (5,000) | ||
Corporate bonds | |||||
Amortized Cost | |||||
Within 1 year | 2,032,000 | ||||
Beyond 1 year but within 5 years | 4,437,000 | 4,437,000 | 507,000 | ||
Beyond 5 years but within 10 years | 1,486,000 | 1,486,000 | |||
Gross Unrealized Gains | |||||
Within 1 year | |||||
Beyond 1 year but within 5 years | 9,000 | 9,000 | 2,000 | ||
Beyond 5 years but within 10 years | 20,000 | 20,000 | |||
Gross Unrealized Losses | |||||
Within 1 year | (7,000) | ||||
Beyond 1 year but within 5 years | (12,000) | (12,000) | |||
Beyond 5 years but within 10 years | |||||
Fair Value | |||||
Within 1 year | 2,025,000 | ||||
Beyond 1 year but within 5 years | 4,434,000 | 4,434,000 | 509,000 | ||
Beyond 5 years but within 10 years | 1,506,000 | 1,506,000 | |||
Securities in a continuous unrealized loss position presented by length of time | |||||
Less than 12 Months, Fair Value | 1,763,000 | 1,763,000 | 1,021,000 | ||
Less than 12 Months, Gross Unrealized Losses | (12,000) | (12,000) | (7,000) | ||
12 Months or More, Fair Value | |||||
12 Months or More, Gross Unrealized Losses | |||||
Total, Fair Value | 1,763,000 | 1,763,000 | 1,021,000 | ||
Total, Gross Unrealized Losses | (12,000) | (12,000) | (7,000) | ||
Municipal obligations | |||||
Amortized Cost | |||||
Within 1 year | 978,000 | ||||
Beyond 1 year but within 5 years | 8,911,000 | 8,911,000 | 3,784,000 | ||
Beyond 5 years but within 10 years | 27,719,000 | 27,719,000 | 12,144,000 | ||
Beyond 10 years | 21,613,000 | 21,613,000 | 11,769,000 | ||
Gross Unrealized Gains | |||||
Within 1 year | 12,000 | ||||
Beyond 1 year but within 5 years | 526,000 | 526,000 | 294,000 | ||
Beyond 5 years but within 10 years | 430,000 | 430,000 | 417,000 | ||
Beyond 10 years | 222,000 | 222,000 | 185,000 | ||
Gross Unrealized Losses | |||||
Within 1 year | |||||
Beyond 1 year but within 5 years | |||||
Beyond 5 years but within 10 years | (8,000) | (8,000) | |||
Beyond 10 years | (122,000) | (122,000) | (38,000) | ||
Fair Value | |||||
Within 1 year | 990,000 | ||||
Beyond 1 year but within 5 years | 9,437,000 | 9,437,000 | 4,078,000 | ||
Beyond 5 years but within 10 years | 28,141,000 | 28,141,000 | 12,561,000 | ||
Beyond 10 years | 21,713,000 | 21,713,000 | 11,916,000 | ||
Securities in a continuous unrealized loss position presented by length of time | |||||
Less than 12 Months, Fair Value | 7,334,000 | 7,334,000 | 2,803,000 | ||
Less than 12 Months, Gross Unrealized Losses | (130,000) | (130,000) | (38,000) | ||
12 Months or More, Fair Value | |||||
12 Months or More, Gross Unrealized Losses | |||||
Total, Fair Value | 7,334,000 | 7,334,000 | 2,803,000 | ||
Total, Gross Unrealized Losses | (130,000) | (130,000) | (38,000) | ||
Equity securities | |||||
Investment securities available for sale | |||||
Amortized Cost | 3,852,000 | 3,852,000 | 2,052,000 | ||
Gross Unrealized Gains | 310,000 | 310,000 | 207,000 | ||
Gross Unrealized Losses | (89,000) | (89,000) | (115,000) | ||
Fair Value | 4,073,000 | 4,073,000 | 2,144,000 | ||
Securities in a continuous unrealized loss position presented by length of time | |||||
Less than 12 Months, Fair Value | 2,542,000 | 2,542,000 | 171,000 | ||
Less than 12 Months, Gross Unrealized Losses | (89,000) | (89,000) | (13,000) | ||
12 Months or More, Fair Value | 570,000 | ||||
12 Months or More, Gross Unrealized Losses | (102,000) | ||||
Total, Fair Value | 2,542,000 | 2,542,000 | 741,000 | ||
Total, Gross Unrealized Losses | $ (89,000) | $ (89,000) | $ (115,000) |
Mortgage-Backed Securities (Det
Mortgage-Backed Securities (Details) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017USD ($)Security | Jun. 30, 2017USD ($)Security | Jun. 30, 2016USD ($) | Sep. 30, 2016USD ($) | |
Mortgage-backed securities | ||||
Fair Value | $ 62,835,000 | $ 62,835,000 | $ 19,653,000 | |
Mortgage-backed securities pledged to secure repurchase agreements and public fund accounts | ||||
Proceeds from sales of mortgage backed securities | 5,900,000 | 6,312,000 | $ 249,000 | |
Mortgage-backed securities available for sale | ||||
Mortgage-backed securities | ||||
Amortized Cost | 62,380,000 | 62,380,000 | 19,302,000 | |
Gross Unrealized Gains | 544,000 | 544,000 | 370,000 | |
Gross Unrealized Losses | (89,000) | (89,000) | (19,000) | |
Fair Value | 62,835,000 | 62,835,000 | 19,653,000 | |
Securities in a continuous unrealized loss position presented by length of time | ||||
Less than 12 Months, Fair Value | 4,715,000 | 4,715,000 | 2,748,000 | |
Less than 12 Months, Gross Unrealized Losses | (46,000) | (46,000) | (6,000) | |
12 Months or More, Fair Value | 2,809,000 | 2,809,000 | 1,917,000 | |
12 Months or More, Gross Unrealized Losses | (43,000) | (43,000) | (13,000) | |
Total, Fair Value | 7,524,000 | 7,524,000 | 4,665,000 | |
Total, Gross Unrealized Losses | $ (89,000) | $ (89,000) | (19,000) | |
Number of mortgage-backed securities held in an unrealized loss position | Security | 8 | 8 | ||
Mortgage-backed securities pledged to secure repurchase agreements and public fund accounts | ||||
Carrying amount of mortgage-backed securities pledged to secure repurchase agreements and public fund accounts | $ 14,900,000 | $ 14,900,000 | 6,500,000 | |
Gains on sales of mortgage-backed securities | 75,000 | 75,000 | 82,000 | |
Loss on sales of mortgage-backed securities | 15,000 | 15,000 | ||
Proceeds from sales of mortgage backed securities | 15,600,000 | 15,600,000 | $ 5,000,000 | |
Government pass-throughs, Ginnie Mae | ||||
Mortgage-backed securities | ||||
Amortized Cost | 9,042,000 | 9,042,000 | 5,695,000 | |
Gross Unrealized Gains | 41,000 | 41,000 | 37,000 | |
Gross Unrealized Losses | (33,000) | (33,000) | (17,000) | |
Fair Value | 9,050,000 | 9,050,000 | 5,715,000 | |
Securities in a continuous unrealized loss position presented by length of time | ||||
Less than 12 Months, Fair Value | 2,251,000 | 2,251,000 | 2,748,000 | |
Less than 12 Months, Gross Unrealized Losses | (18,000) | (18,000) | (6,000) | |
12 Months or More, Fair Value | 1,088,000 | 1,088,000 | 1,313,000 | |
12 Months or More, Gross Unrealized Losses | (15,000) | (15,000) | (11,000) | |
Total, Fair Value | 3,339,000 | 3,339,000 | 4,061,000 | |
Total, Gross Unrealized Losses | (33,000) | (33,000) | (17,000) | |
Government pass-throughs, Fannie Mae | ||||
Mortgage-backed securities | ||||
Amortized Cost | 21,492,000 | 21,492,000 | 5,806,000 | |
Gross Unrealized Gains | 250,000 | 250,000 | 211,000 | |
Gross Unrealized Losses | ||||
Fair Value | 21,742,000 | 21,742,000 | 6,017,000 | |
Government pass-throughs, Freddie Mac | ||||
Mortgage-backed securities | ||||
Amortized Cost | 14,802,000 | 14,802,000 | 6,051,000 | |
Gross Unrealized Gains | 155,000 | 155,000 | 113,000 | |
Gross Unrealized Losses | (33,000) | (33,000) | ||
Fair Value | 14,924,000 | 14,924,000 | 6,164,000 | |
Securities in a continuous unrealized loss position presented by length of time | ||||
Less than 12 Months, Fair Value | 1,651,000 | 1,651,000 | ||
Less than 12 Months, Gross Unrealized Losses | (16,000) | (16,000) | ||
12 Months or More, Fair Value | 1,200,000 | 1,200,000 | ||
12 Months or More, Gross Unrealized Losses | (17,000) | (17,000) | ||
Total, Fair Value | 2,851,000 | 2,851,000 | ||
Total, Gross Unrealized Losses | (33,000) | (33,000) | ||
Private pass-throughs | ||||
Mortgage-backed securities | ||||
Amortized Cost | 8,998,000 | 8,998,000 | 87,000 | |
Gross Unrealized Gains | 89,000 | 89,000 | ||
Gross Unrealized Losses | ||||
Fair Value | 9,087,000 | 9,087,000 | 87,000 | |
Collateralized mortgage obligations | ||||
Mortgage-backed securities | ||||
Amortized Cost | 8,046,000 | 8,046,000 | 1,663,000 | |
Gross Unrealized Gains | 9,000 | 9,000 | 9,000 | |
Gross Unrealized Losses | (23,000) | (23,000) | (2,000) | |
Fair Value | 8,032,000 | 8,032,000 | 1,670,000 | |
Securities in a continuous unrealized loss position presented by length of time | ||||
Less than 12 Months, Fair Value | 813,000 | 813,000 | ||
Less than 12 Months, Gross Unrealized Losses | (12,000) | (12,000) | ||
12 Months or More, Fair Value | 521,000 | 521,000 | 604,000 | |
12 Months or More, Gross Unrealized Losses | (11,000) | (11,000) | (2,000) | |
Total, Fair Value | 1,334,000 | 1,334,000 | 604,000 | |
Total, Gross Unrealized Losses | $ (23,000) | $ (23,000) | $ (2,000) |
Mortgage-Backed Securities (D36
Mortgage-Backed Securities (Details 1) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Fair Value | $ 83,153 | $ 44,250 |
Mortgage-backed securities | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | ||
Due in one year or less | 13 | |
Due after one year through five years | 516 | |
Due after five years through ten years | 3,526 | |
Due after ten years | 58,325 | |
Amortized Cost | 62,380 | |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Due in one year or less | 13 | |
Due after one year through five years | 532 | |
Due after five years through ten years | 3,606 | |
Due after ten years | 58,684 | |
Fair Value | $ 62,835 |
Loans Receivable and Related 37
Loans Receivable and Related Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | $ 734,853 | $ 381,413 |
Individually evaluated for impairment | 2,525 | 467 |
Total loans before allowance for loan losses | 737,378 | 381,880 |
Deferred loan costs of loans receivable | 315 | 150 |
Acquisition of Allegheny Valley | 2,467 | |
Recorded specific credit fair value adjustment | 2,467 | |
Outstanding balance of loans acquired from Allegheny Valley | 0 | |
Carrying value of loans acquired from Allegheny Valley | 0 | |
Real Estate Loans | One-to-four-family Residential and Construction | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 257,227 | 167,512 |
Individually evaluated for impairment | ||
Total loans before allowance for loan losses | 257,227 | 167,512 |
Real Estate Loans | Commercial real estate | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 291,247 | 119,412 |
Individually evaluated for impairment | 2,525 | 467 |
Total loans before allowance for loan losses | 293,772 | 119,879 |
Real Estate Loans | Home Equity Loans and Lines of Credit | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 127,887 | 79,157 |
Individually evaluated for impairment | ||
Total loans before allowance for loan losses | 127,887 | 79,157 |
Commercial Business | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 52,935 | 14,779 |
Individually evaluated for impairment | ||
Total loans before allowance for loan losses | 52,935 | 14,779 |
Other Loans | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 5,557 | 553 |
Individually evaluated for impairment | ||
Total loans before allowance for loan losses | $ 5,557 | $ 553 |
Loans Receivable and Related 38
Loans Receivable and Related Allowance for Loan Losses (Details 1) $ in Thousands | Apr. 07, 2017USD ($) |
Primary segments of the loan portfolio | |
Loans acquired from Allegheny Valley, net of fair value adjustments | $ 311,736 |
Real Estate Loans | One-to-four-family Residential and Construction | |
Primary segments of the loan portfolio | |
Loans acquired from Allegheny Valley, net of fair value adjustments | 66,995 |
Real Estate Loans | Commercial real estate | |
Primary segments of the loan portfolio | |
Loans acquired from Allegheny Valley, net of fair value adjustments | 160,626 |
Real Estate Loans | Home Equity Loans and Lines of Credit | |
Primary segments of the loan portfolio | |
Loans acquired from Allegheny Valley, net of fair value adjustments | 51,759 |
Commercial Business | |
Primary segments of the loan portfolio | |
Loans acquired from Allegheny Valley, net of fair value adjustments | 26,841 |
Other Loans | |
Primary segments of the loan portfolio | |
Loans acquired from Allegheny Valley, net of fair value adjustments | $ 5,515 |
Loans Receivable and Related 39
Loans Receivable and Related Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Receivables [Abstract] | ||
Contractually required principal and interest | $ 2,467 | |
Non-accretable discount | (2,467) | |
Expected cash flows | ||
Accretable discount | ||
Estimated fair value | ||
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 |
Loans Receivable and Related 40
Loans Receivable and Related Allowance for Loan Losses (Details 3) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2017USD ($)Loan | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)Loan | Jun. 30, 2016USD ($) | Sep. 30, 2016USD ($) | |
Impaired Loans | |||||
Impaired Loans With Allowance, Recorded Investment | |||||
Impaired Loans With Allowance, Related Allowance | |||||
Total Impaired Loans, Recorded Investment | 2,525,000 | 2,525,000 | 467,000 | ||
Impaired loans without allowance recorded investment | 2,525,000 | 2,525,000 | 467,000 | ||
Total Impaired Loans, Unpaid Principal Balance | 2,552,000 | 2,552,000 | 467,000 | ||
Average investment in impaired loans: | 422,000 | $ 783,000 | $ 435,000 | $ 728,000 | |
Past due period for troubled debt restructuring | 90 days | ||||
Possible impairment of past due troubled debt restructuring | $ 200,000 | $ 200,000 | |||
Threshold limit of watch list loans | $ 100,000 | ||||
Minimum | |||||
Impaired Loans | |||||
Number of semi annual review loan relationship | Loan | 50 | 50 | |||
Amount of new loan originations limit | $ 200,000 | ||||
Maximum | |||||
Impaired Loans | |||||
Number of semi annual review loan relationship | Loan | 60 | 60 | |||
Amount of new loan originations limit | $ 500,000 | ||||
Real Estate Loans | Commercial real estate | |||||
Impaired Loans | |||||
Impaired Loans With Allowance, Recorded Investment | |||||
Impaired Loans With Allowance, Related Allowance | |||||
Total Impaired Loans, Recorded Investment | 2,525,000 | 2,525,000 | 467,000 | ||
Impaired loans without allowance recorded investment | 2,525,000 | 2,525,000 | 467,000 | ||
Total Impaired Loans, Unpaid Principal Balance | 2,552,000 | 2,552,000 | $ 467,000 | ||
Average investment in impaired loans: | $ 422,000 | $ 783,000 | $ 435,000 | $ 728,000 |
Loans Receivable and Related 41
Loans Receivable and Related Allowance for Loan Losses (Details 4) $ in Thousands | Jun. 30, 2017USD ($)Loan | Sep. 30, 2016USD ($) |
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 | ||
Loans | $ 737,378 | $ 381,880 |
Number of loan non accrual status less than 90 days past due | Loan | 1 | |
Pass | ||
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 | ||
Loans | $ 726,192 | 380,824 |
Special Mention | ||
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 | ||
Loans | 6,374 | |
Substandard | ||
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 | ||
Loans | 4,812 | 1,056 |
Doubtful | ||
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 | ||
Loans | ||
Real Estate Loans | One-to-four-family Residential and Construction | ||
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 | ||
Loans | 257,227 | 167,512 |
Real Estate Loans | One-to-four-family Residential and Construction | Pass | ||
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 | ||
Loans | 254,488 | 166,996 |
Real Estate Loans | One-to-four-family Residential and Construction | Special Mention | ||
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 | ||
Loans | 825 | |
Real Estate Loans | One-to-four-family Residential and Construction | Substandard | ||
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 | ||
Loans | 1,914 | 516 |
Real Estate Loans | One-to-four-family Residential and Construction | Doubtful | ||
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 | ||
Loans | ||
Real Estate Loans | Commercial real estate | ||
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 | ||
Loans | 293,772 | 119,879 |
Real Estate Loans | Commercial real estate | Pass | ||
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 | ||
Loans | 285,833 | 119,412 |
Real Estate Loans | Commercial real estate | Special Mention | ||
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 | ||
Loans | 5,260 | |
Real Estate Loans | Commercial real estate | Substandard | ||
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 | ||
Loans | 2,679 | 467 |
Real Estate Loans | Commercial real estate | Doubtful | ||
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 | ||
Loans | ||
Real Estate Loans | Home equity loans and lines of credit | ||
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 | ||
Loans | 127,887 | 79,157 |
Real Estate Loans | Home equity loans and lines of credit | Pass | ||
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 | ||
Loans | 127,633 | 79,084 |
Real Estate Loans | Home equity loans and lines of credit | Special Mention | ||
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 | ||
Loans | 47 | |
Real Estate Loans | Home equity loans and lines of credit | Substandard | ||
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 | ||
Loans | 207 | 73 |
Real Estate Loans | Home equity loans and lines of credit | Doubtful | ||
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 | ||
Loans | ||
Commercial business loans | ||
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 | ||
Loans | 52,935 | 14,779 |
Commercial business loans | Pass | ||
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 | ||
Loans | 52,693 | 14,779 |
Commercial business loans | Special Mention | ||
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 | ||
Loans | 242 | |
Commercial business loans | Substandard | ||
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 | ||
Loans | ||
Commercial business loans | Doubtful | ||
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 | ||
Loans | ||
Other loans | ||
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 | ||
Loans | 5,557 | 553 |
Other loans | Pass | ||
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 | ||
Loans | 5,545 | 553 |
Other loans | Special Mention | ||
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 | ||
Loans | ||
Other loans | Substandard | ||
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 | ||
Loans | 12 | |
Other loans | Doubtful | ||
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 | ||
Loans |
Loans Receivable and Related 42
Loans Receivable and Related Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | $ 731,453 | $ 379,991 |
90 Days Past Due and Accruing | 767 | |
Total loans before allowance for loan losses | 737,378 | 381,880 |
30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 833 | 764 |
60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 348 | 436 |
Non-Accrual (90 Days+) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 3,977 | 689 |
Real Estate Loans | One-to-four-family Residential and Construction | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 254,731 | 166,136 |
90 Days Past Due and Accruing | 742 | |
Total loans before allowance for loan losses | 257,227 | 167,512 |
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 | 556 | 566 |
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 | 108 | 294 |
Real Estate Loans | One-to-four-family Residential and Construction | Non-Accrual (90 Days+) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 1,090 | 516 |
Real Estate Loans | Commercial real estate | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 290,805 | 119,638 |
90 Days Past Due and Accruing | ||
Total loans before allowance for loan losses | 293,772 | 119,879 |
Real Estate Loans | Commercial real estate | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 123 | 80 |
Real Estate Loans | Commercial real estate | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 164 | 61 |
Real Estate Loans | Commercial real estate | Non-Accrual (90 Days+) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 2,680 | 100 |
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 | 127,461 | 78,888 |
90 Days Past Due and Accruing | ||
Total loans before allowance for loan losses | 127,887 | 79,157 |
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 | 147 | 115 |
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 | 72 | 81 |
Real Estate Loans | Home equity loans and lines of credit | Non-Accrual (90 Days+) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 207 | 73 |
Commercial business loans | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 52,935 | 14,779 |
90 Days Past Due and Accruing | ||
Total loans before allowance for loan losses | 52,935 | 14,779 |
Commercial business loans | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | ||
Commercial business loans | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | ||
Commercial business loans | Non-Accrual (90 Days+) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | ||
Other loans | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 5,521 | 550 |
90 Days Past Due and Accruing | 25 | |
Total loans before allowance for loan losses | 5,557 | 553 |
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 | 7 | 3 |
Other loans | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 4 | |
Other loans | Non-Accrual (90 Days+) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due |
Loans Receivable and Related 43
Loans Receivable and Related Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Sep. 30, 2016 | |
Allowance for loan losses | ||||||
Balance at the beginning of the period | $ 3,777 | $ 3,798 | $ 3,800 | $ 3,879 | ||
Charge-offs | (11) | (113) | (75) | (206) | ||
Recoveries | 32 | 8 | 33 | 20 | ||
Provision for Loan Losses | 167 | 207 | ||||
Balance at the end of the period | 3,965 | 3,693 | 3,965 | 3,693 | ||
Additional information | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 3,965 | 3,800 | ||||
Balance at the end of the period | 3,777 | 3,798 | 3,800 | 3,879 | 3,965 | 3,800 |
Real Estate Loans | One-to-four-family Residential and Construction | ||||||
Allowance for loan losses | ||||||
Balance at the beginning of the period | 1,299 | 1,076 | 1,250 | 1,122 | ||
Charge-offs | (1) | (93) | (42) | (139) | ||
Recoveries | 28 | 28 | ||||
Provision for Loan Losses | 20 | 110 | ||||
Balance at the end of the period | 1,346 | 983 | 1,346 | 983 | ||
Additional information | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 1,346 | 1,250 | ||||
Balance at the end of the period | 1,299 | 1,076 | 1,250 | 1,122 | 1,346 | 1,250 |
Real Estate Loans | Commercial real estate | ||||||
Allowance for loan losses | ||||||
Balance at the beginning of the period | 1,687 | 1,869 | 1,786 | 1,867 | ||
Charge-offs | ||||||
Recoveries | 3 | 1 | 5 | |||
Provision for Loan Losses | 100 | |||||
Balance at the end of the period | 1,787 | 1,872 | 1,787 | 1,872 | ||
Additional information | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 1,787 | 1,786 | ||||
Balance at the end of the period | 1,687 | 1,869 | 1,786 | 1,867 | 1,787 | 1,786 |
Real Estate Loans | Home Equity Loans and Lines of Credit | ||||||
Allowance for loan losses | ||||||
Balance at the beginning of the period | 532 | 460 | 547 | 457 | ||
Charge-offs | (6) | (6) | (4) | |||
Recoveries | 2 | 9 | ||||
Provision for Loan Losses | 16 | 1 | ||||
Balance at the end of the period | 542 | 462 | 542 | 462 | ||
Additional information | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 542 | 547 | ||||
Balance at the end of the period | 532 | 460 | 547 | 457 | 542 | 547 |
Commercial Business | ||||||
Allowance for loan losses | ||||||
Balance at the beginning of the period | 255 | 391 | 211 | 411 | ||
Charge-offs | (20) | (1) | (41) | |||
Recoveries | 1 | 2 | 1 | 3 | ||
Provision for Loan Losses | 30 | 75 | ||||
Balance at the end of the period | 286 | 373 | 286 | 373 | ||
Additional information | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 286 | 211 | ||||
Balance at the end of the period | 255 | 391 | 211 | 411 | 286 | 211 |
Other Loans | ||||||
Allowance for loan losses | ||||||
Balance at the beginning of the period | 4 | 2 | 6 | 22 | ||
Charge-offs | (4) | (26) | (22) | |||
Recoveries | 3 | 1 | 3 | 3 | ||
Provision for Loan Losses | 1 | 21 | ||||
Balance at the end of the period | 4 | 3 | 4 | 3 | ||
Additional information | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 4 | 6 | ||||
Balance at the end of the period | $ 4 | $ 2 | $ 6 | $ 22 | $ 4 | $ 6 |
Foreclosed Assets Held For Sa44
Foreclosed Assets Held For Sale (Detail Textuals) - USD ($) | Jun. 30, 2017 | Sep. 30, 2016 |
Foreclosed Assets Held For Sale [Line Items] | ||
Foreclosed assets acquired in settlement of loans | $ 137,000 | $ 281,000 |
Initiated formal foreclosure procedures | $ 1,800,000 | |
Residential property | ||
Foreclosed Assets Held For Sale [Line Items] | ||
Foreclosed assets acquired in settlement of loans | 107,000 | |
Commercial property | ||
Foreclosed Assets Held For Sale [Line Items] | ||
Foreclosed assets acquired in settlement of loans | 30,000 | |
Initiated formal foreclosure procedures | 300,000 | |
1-4 family residential loans | ||
Foreclosed Assets Held For Sale [Line Items] | ||
Initiated formal foreclosure procedures | $ 1,500,000 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) | Apr. 10, 2017 | Apr. 07, 2017 | Jul. 25, 2012 | Jun. 30, 2017 |
Stock Based Compensation | ||||
Aggregate number of shares reserved for issuance under the 2012 Equity Incentive Plan | 486,943 | |||
Options | ||||
Exercised (in shares) | (30,060) | |||
Weighted Average Exercise Price | ||||
Granted (in dollars per share) | $ 16.50 | |||
Weighted Average Grant Date Price Per Share | ||||
Number of additional shares issued | 77,634 | |||
Number of shares expired | 249 | |||
Unearned ESOP Shares | ||||
Stock Based Compensation | ||||
Aggregate number of shares reserved for issuance under the 2012 Equity Incentive Plan | 347,817 | |||
Vesting period | 5 years | |||
Vesting percentage per year | 20.00% | |||
Contractual life of stock options | 10 years | |||
Estimated fair value of stock options before income taxes | $ 423,000 | |||
Weighted-average fair value of stock options granted (in dollars per share) | $ 1.52 | |||
Expected life | 7 years 6 months | |||
Expected dividend rate (as a percent) | 1.13% | |||
Risk-free interest rate (as a percent) | 1.10% | |||
Expected volatility (as a percent) | 9.50% | |||
Compensation expense | $ 58,000 | |||
Share available issued under the stock | 69,742 | |||
Tax benefit recorded related to compensation expense | $ 6,000 | |||
Unrecognized compensation cost related to non-vested options | $ 13,000 | |||
Weighted average remaining service period to recognize unrecognized compensation cost | 1 month | |||
Options | ||||
Outstanding at September 30, 2016 (in shares) | 278,075 | |||
Granted (in shares) | ||||
Merger related options (in shares) | 73,051 | |||
Exercised (in shares) | (30,060) | |||
Forfeited (in shares) | (6,000) | |||
Outstanding at June 30, 2017 (in shares) | 315,066 | |||
Exercisable at June 30, 2017 (in shares) | 266,663 | |||
Weighted Average Exercise Price | ||||
Outstanding at September 30, 2016 (in dollars per share) | $ 16.50 | |||
Granted (in dollars per share) | ||||
Merger related options (in dollars per share) | 19.61 | |||
Exercise price (in dollars per share) | 16.50 | |||
Forfeited (in dollars per share) | 16.50 | |||
Outstanding at June 30, 2017 (in dollars per share) | 17.22 | |||
Exercisable at June 30, 2017 (in dollars per share) | $ 17.35 | |||
Unearned ESOP Shares | Directors and officers | ||||
Options | ||||
Granted (in shares) | 278,075 | |||
Restricted stock | ||||
Stock Based Compensation | ||||
Aggregate number of shares reserved for issuance under the 2012 Equity Incentive Plan | 139,126 | |||
Compensation expense | $ 275,000 | |||
Share available issued under the stock | 27,826 | |||
Tax benefit recorded related to compensation expense | $ 92,000 | |||
Unrecognized compensation cost related to non-vested options | $ 13,000 | |||
Weighted average remaining service period to recognize unrecognized compensation cost | 1 month | |||
Expected future compensation cost related to awards | ||||
2,017 | $ 13,000 | |||
Weighted Average Exercise Price | ||||
Fair value of restricted stock awards before income taxes | $ 1,800,000 | |||
Number of Restricted Shares | ||||
Non-vested shares at September 30, 2016 (in shares) | 22,260 | |||
Granted (in shares) | ||||
Vested (in shares) | ||||
Forfeited (in shares) | (2,400) | |||
Non-vested shares at June 30, 2017 (in shares) | 19,860 | |||
Weighted Average Grant Date Price Per Share | ||||
Non-vested shares at the beginning of the period (in dollars per share) | $ 16.50 | |||
Granted (in dollars per share) | ||||
Vested (in dollars per share) | ||||
Forfeited (in dollars per share) | 16.50 | |||
Non-vested shares at the end of the period (in dollars per share) | $ 16.50 | |||
Restricted stock | Directors and officers | ||||
Number of Restricted Shares | ||||
Granted (in shares) | 111,300 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Detail Textuals) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Employee Stock Ownership Plan | ||
Number of years of service to be completed to participate in the plan | 1 year | |
Employees vesting rate in ESOP account after two years of service (as a percent) | 20.00% | |
Employees vesting rate in ESOP account after three years of service (as a percent) | 40.00% | |
Employees vesting rate in ESOP account after four years of service (as a percent) | 60.00% | |
Employees vesting rate in ESOP account after five years of service (as a percent) | 80.00% | |
Employees vesting rate in ESOP account after six years of service (as a percent) | 100.00% | |
Stock purchased by the ESOP, funded by loan (in shares) | 278,254 | |
Compensation expense related to the ESOP | $ 278 | $ 271 |
Total shares held by ESOP | 265,827 | |
Unallocated shares | 187,912 | |
Fair market value of the unallocated ESOP shares | $ 5,300 |
Pension Information (Details)
Pension Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | ||||
Service cost | ||||
Interest cost | (36) | (38) | (108) | (76) |
Expected return on plan assets | 40 | 37 | 120 | 74 |
Settlement obligation | (105) | |||
Other components | (23) | (69) | ||
Net periodic pension benefit | $ (19) | $ (1) | $ (162) | $ (2) |
Fair Value of Assets and Liab48
Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Assets measured at fair value | ||
Total investment securities available for sale | $ 83,153 | $ 44,250 |
Equity securities | ||
Assets measured at fair value | ||
Total investment securities available for sale | 4,073 | 2,144 |
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | ||
Assets measured at fair value | ||
Total investment securities available for sale | 4,073 | 2,144 |
Mortgage-backed securities available for sale | ||
Significant Other Observable Inputs (Level 2) | ||
Assets measured at fair value | ||
Total investment securities available for sale | 79,080 | 42,106 |
Mortgage-backed securities available for sale | 62,835 | 19,653 |
Significant Unobservable Inputs (Level 3) | ||
Assets measured at fair value | ||
Total investment securities available for sale | ||
Mortgage-backed securities available for sale | ||
Total | ||
Assets measured at fair value | ||
Total investment securities available for sale | 83,153 | 44,250 |
Mortgage-backed securities available for sale | 62,835 | 19,653 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | ||
Assets measured at fair value | ||
Total investment securities available for sale | 4,073 | 2,144 |
Mortgage-backed securities available for sale | ||
Assets | 4,073 | 2,144 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Equity securities | ||
Assets measured at fair value | ||
Total investment securities available for sale | 4,073 | 2,144 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets measured at fair value | ||
Total investment securities available for sale | 79,080 | 42,106 |
Mortgage-backed securities available for sale | 62,835 | 19,653 |
Assets | 141,915 | 61,759 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. government and agency obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | 13,849 | 10,027 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate bonds | ||
Assets measured at fair value | ||
Total investment securities available for sale | 5,940 | 2,534 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Municipal obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | 59,291 | 29,545 |
Recurring basis | Total | ||
Assets measured at fair value | ||
Total investment securities available for sale | 83,153 | 44,250 |
Mortgage-backed securities available for sale | 62,835 | 19,653 |
Assets | 145,988 | 63,903 |
Recurring basis | Total | U.S. government and agency obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | 13,849 | 10,027 |
Recurring basis | Total | Corporate bonds | ||
Assets measured at fair value | ||
Total investment securities available for sale | 5,940 | 2,534 |
Recurring basis | Total | Municipal obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | 59,291 | 29,545 |
Recurring basis | Total | Equity securities | ||
Assets measured at fair value | ||
Total investment securities available for sale | 4,073 | 2,144 |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | ||
Assets measured at fair value | ||
Total investment securities available for sale | 2,662 | 748 |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Foreclosed real estate | ||
Assets measured at fair value | ||
Total investment securities available for sale | 137 | 281 |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Impaired loans | ||
Assets measured at fair value | ||
Total investment securities available for sale | 2,525 | 467 |
Nonrecurring basis | Total | ||
Assets measured at fair value | ||
Total investment securities available for sale | 2,662 | 748 |
Nonrecurring basis | Total | Foreclosed real estate | ||
Assets measured at fair value | ||
Total investment securities available for sale | 137 | 281 |
Nonrecurring basis | Total | Impaired loans | ||
Assets measured at fair value | ||
Total investment securities available for sale | $ 2,525 | $ 467 |
Fair Value of Assets and Liab49
Fair Value of Assets and Liabilities (Details 2) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands | 9 Months Ended | ||
Jun. 30, 2017 | Sep. 30, 2016 | ||
Foreclosed real estate | Appraisal of collateral | |||
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value | |||
Estimate | [1] | $ 137 | $ 281 |
Foreclosed real estate | Minimum | Appraisal of collateral | |||
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value | |||
Appraisal adjustments (as a percent) | [2] | 0.00% | |
Liquidation expenses (as a percent) | [2] | 0.00% | |
Foreclosed real estate | Maximum | Appraisal of collateral | |||
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value | |||
Appraisal adjustments (as a percent) | [2] | 40.00% | |
Liquidation expenses (as a percent) | [2] | 10.00% | |
Foreclosed real estate | Weighted average | Appraisal of collateral | |||
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value | |||
Appraisal adjustments (as a percent) | [2] | 19.00% | |
Liquidation expenses (as a percent) | [2] | 8.00% | |
Impaired loans | Fair value of collateral | |||
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value | |||
Estimate | [1],[3] | $ 2,525 | $ 467 |
Impaired loans | Minimum | Fair value of collateral | |||
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value | |||
Appraisal adjustments (as a percent) | [2] | 0.00% | |
Liquidation expenses (as a percent) | [2] | 0.00% | |
Impaired loans | Maximum | Fair value of collateral | |||
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value | |||
Appraisal adjustments (as a percent) | [2] | 20.00% | |
Liquidation expenses (as a percent) | [2] | 10.00% | |
Impaired loans | Weighted average | Fair value of collateral | |||
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value | |||
Appraisal adjustments (as a percent) | [2] | 20.00% | |
Liquidation expenses (as a percent) | [2] | 6.00% | |
[1] | Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. | ||
[2] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. | ||
[3] | Includes qualitative adjustments by management and estimated liquidation expenses. |
Fair Value of Assets and Liab50
Fair Value of Assets and Liabilities (Details 3) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Financial Instruments - Assets: | ||
Cash on hand and due from banks | $ 6,814 | $ 1,786 |
Interest-earning deposits in other institutions | 13,420 | 16,375 |
Investment securities | 83,153 | 44,250 |
Bank-owned life insurance | 21,763 | 14,946 |
Financial Instruments - Liabilities: | ||
Demand, savings and club accounts | 496,508 | 231,378 |
Certificate deposit accounts | 216,218 | 137,256 |
Federal Home Loan Bank short-term borrowings | 80,529 | |
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | ||
Financial Instruments - Assets: | ||
Cash on hand and due from banks | 6,814 | 1,786 |
Interest-earning deposits in other institutions | 13,420 | 16,375 |
Certificate of deposit | 500 | 500 |
Investment securities | 4,073 | 2,144 |
Mortgage-backed securities | ||
Federal Home Loan Bank stock | 8,367 | 3,161 |
Loans receivable | ||
Loans held for sale | 828 | 238 |
Bank-owned life insurance | 21,763 | 14,946 |
Accrued interest receivable | 2,368 | 1,098 |
Financial Instruments - Liabilities: | ||
Demand, savings and club accounts | 496,508 | 231,378 |
Certificate deposit accounts | ||
Federal Home Loan Bank short-term borrowings | 80,529 | |
Federal Home Loan Bank advances | ||
Securities sold under agreements to repurchase | 2,529 | 1,964 |
Accrued interest payable | 891 | 194 |
Significant Other Observable Inputs (Level 2) | ||
Financial Instruments - Assets: | ||
Cash on hand and due from banks | ||
Interest-earning deposits in other institutions | ||
Certificate of deposit | ||
Investment securities | 79,080 | 42,106 |
Mortgage-backed securities | 62,835 | 19,653 |
Federal Home Loan Bank stock | ||
Loans receivable | ||
Loans held for sale | ||
Bank-owned life insurance | ||
Accrued interest receivable | ||
Financial Instruments - Liabilities: | ||
Demand, savings and club accounts | ||
Certificate deposit accounts | ||
Federal Home Loan Bank short-term borrowings | ||
Federal Home Loan Bank advances | ||
Securities sold under agreements to repurchase | ||
Accrued interest payable | ||
Significant Unobservable Inputs (Level 3) | ||
Financial Instruments - Assets: | ||
Cash on hand and due from banks | ||
Interest-earning deposits in other institutions | ||
Certificate of deposit | ||
Investment securities | ||
Mortgage-backed securities | ||
Federal Home Loan Bank stock | ||
Loans receivable | 734,551 | 384,161 |
Loans held for sale | ||
Bank-owned life insurance | ||
Accrued interest receivable | ||
Financial Instruments - Liabilities: | ||
Demand, savings and club accounts | ||
Certificate deposit accounts | 216,837 | 140,728 |
Federal Home Loan Bank short-term borrowings | ||
Federal Home Loan Bank advances | 43,333 | 49,843 |
Securities sold under agreements to repurchase | ||
Accrued interest payable | ||
Carrying Amount | ||
Financial Instruments - Assets: | ||
Cash on hand and due from banks | 6,814 | 1,786 |
Interest-earning deposits in other institutions | 13,420 | 16,375 |
Certificate of deposit | 500 | 500 |
Investment securities | 83,153 | 44,250 |
Mortgage-backed securities | 62,835 | 19,653 |
Federal Home Loan Bank stock | 8,367 | 3,161 |
Loans receivable | 733,413 | 378,080 |
Loans held for sale | 816 | 234 |
Bank-owned life insurance | 21,763 | 14,946 |
Accrued interest receivable | 2,368 | 1,098 |
Financial Instruments - Liabilities: | ||
Demand, savings and club accounts | 496,508 | 231,378 |
Certificate deposit accounts | 216,218 | 137,256 |
Federal Home Loan Bank short-term borrowings | 80,529 | |
Federal Home Loan Bank advances | 42,907 | 48,856 |
Securities sold under agreements to repurchase | 2,529 | 1,964 |
Accrued interest payable | 891 | 194 |
Fair Value | ||
Financial Instruments - Assets: | ||
Cash on hand and due from banks | 6,814 | 1,786 |
Interest-earning deposits in other institutions | 13,420 | 16,375 |
Certificate of deposit | 500 | 500 |
Investment securities | 83,153 | 44,250 |
Mortgage-backed securities | 62,835 | 19,653 |
Federal Home Loan Bank stock | 8,367 | 3,161 |
Loans receivable | 734,551 | 384,161 |
Loans held for sale | 828 | 238 |
Bank-owned life insurance | 21,763 | 14,946 |
Accrued interest receivable | 2,368 | 1,098 |
Financial Instruments - Liabilities: | ||
Demand, savings and club accounts | 496,508 | 231,378 |
Certificate deposit accounts | 216,837 | 140,728 |
Federal Home Loan Bank short-term borrowings | 80,529 | |
Federal Home Loan Bank advances | 43,333 | 49,843 |
Securities sold under agreements to repurchase | 2,529 | 1,964 |
Accrued interest payable | $ 891 | $ 194 |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Changes in accumulated other comprehensive income by component | ||||
Balance at the beginning of the period | $ (424) | $ 167 | $ 136 | $ 177 |
Other comprehensive loss before reclassification | 1,001 | 263 | 295 | 306 |
Total other comprehensive income | 978 | 256 | 418 | 246 |
Balance at the end of the period | 554 | 423 | 554 | 423 |
Amount reclassified from accumulated other comprehensive income (loss) | (23) | (7) | 123 | (60) |
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Changes in accumulated other comprehensive income by component | ||||
Unrealized gains on available for sale securities, net securities gains | 58 | 10 | 26 | 91 |
Unrealized gains on available for sale securities, income tax expense | (20) | (3) | (9) | (31) |
Unrealized gains on available for sale securities, net of tax | 38 | 7 | 17 | 60 |
Amortization of defined benefit actuarial gains | (23) | (69) | ||
Amortization of defined benefit distribution settlement | (144) | |||
Amortization of defined benefit distribution settlement, Income tax expense | 8 | 73 | ||
Amortization of defined benefit distribution settlement net of tax | (15) | (140) | ||
Amount reclassified from accumulated other comprehensive income (loss) | 23 | 7 | (123) | 60 |
Net Unrealized Gains (Losses) on Investment Securities | ||||
Changes in accumulated other comprehensive income by component | ||||
Balance at the beginning of the period | 196 | 750 | 881 | 760 |
Other comprehensive loss before reclassification | 1,001 | 263 | 295 | 306 |
Total other comprehensive income | 963 | 256 | 278 | 246 |
Balance at the end of the period | 1,159 | 1,006 | 1,159 | 1,006 |
Amount reclassified from accumulated other comprehensive income (loss) | (38) | (7) | (17) | (60) |
Unrecognized Pension costs | ||||
Changes in accumulated other comprehensive income by component | ||||
Balance at the beginning of the period | (620) | (583) | (745) | (583) |
Other comprehensive loss before reclassification | ||||
Total other comprehensive income | 15 | 140 | ||
Balance at the end of the period | (605) | (583) | (605) | (583) |
Amount reclassified from accumulated other comprehensive income (loss) | $ 15 | $ 140 |
Merger with Allegheny Valley 52
Merger with Allegheny Valley Bancorp, Inc. (Details) $ / shares in Units, $ in Thousands | Apr. 07, 2017USD ($)$ / sharesshares | Jun. 30, 2017USD ($)shares | Sep. 30, 2016USD ($) |
Purchase Price Consideration in Common Stock | |||
Standard AVB Financial Corp. shares issued | shares | 2,168,097 | ||
Loans | |||
Goodwill resulting from the merger | $ 25,985 | $ 8,769 | |
Allegheny Valley | |||
Purchase Price Consideration in Common Stock | |||
AVLY common shares settled for stock | shares | 1,040,924 | ||
Exchange Ratio | 2.083 | ||
Standard AVB Financial Corp. shares issued | shares | 2,168,097 | ||
Value assigned to Standard AVB Financial common share | $ / shares | $ 26.60 | ||
Purchase price per share | $ / shares | $ 55.41 | ||
Purchase price assigned AVLY common shares exchanged for Standard AVB Financial Corp. | $ 57,672 | ||
Net Assets Acquired: | |||
AVLY shareholders' equity | 48,398 | ||
AVLY Goodwill | (8,144) | ||
Total tangible equity | 40,254 | ||
Loans | |||
Interest rate | (861) | ||
General Credit | (3,851) | ||
Specific Credit-non amortizing | (2,467) | ||
Elimination of existing loan ALLL | 3,886 | ||
Certificates of Deposit Yield Premium | (902) | ||
Core Deposit Intangible | 4,116 | ||
Fixed assets | 384 | ||
Deferred Tax Asset | (103) | ||
Adjustments to reflect assets acquired at fair value | 40,456 | ||
Goodwill resulting from the merger | $ 17,216 |
Merger with Allegheny Valley 53
Merger with Allegheny Valley Bancorp, Inc. (Details 1) - USD ($) $ in Thousands | Apr. 07, 2017 | Jun. 30, 2017 | Sep. 30, 2016 |
Net Assets Acquired: | |||
Goodwill resulting from the AVLY merger | $ 25,985 | $ 8,769 | |
Allegheny Valley | |||
Business Acquisition [Line Items] | |||
Total Purchase Price | $ 57,672 | ||
Net Assets Acquired: | |||
Cash | 9,611 | ||
Securities available for sale | 95,919 | ||
Loan | 311,736 | ||
Premises | 4,434 | ||
Accrued Interest receivable | 1,144 | ||
Bank-owned life insurance | 6,486 | ||
Deferred tax assets | |||
Core deposit intangible | 4,116 | ||
Other assets | 7,481 | ||
Time deposits | (70,422) | ||
Deposits other than time deposits | (263,522) | ||
Borrowings | (64,624) | ||
Accrued interest payable Other liabilities | (1,903) | ||
Net assets | 40,456 | ||
Goodwill resulting from the AVLY merger | $ 17,216 |
Merger with Allegheny Valley 54
Merger with Allegheny Valley Bancorp, Inc. (Details 2) - Allegheny Valley - Core deposit intangible $ in Thousands | Jun. 30, 2017USD ($) |
Business Acquisition [Line Items] | |
Remaining 2,017 | $ 257 |
2,018 | 900 |
2,019 | 676 |
2,020 | 508 |
2,021 | 380 |
2,022 | 325 |
2,023 | 325 |
2,024 | 325 |
2,025 | 162 |
Total | $ 3,858 |
Merger with Allegheny Valley 55
Merger with Allegheny Valley Bancorp, Inc. (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | |||||
Net interest income | $ 8,335 | $ 4,039 | $ 16,621 | $ 12,137 | |
Noninterest income | 1,190 | 615 | 2,372 | 1,896 | |
Net income | $ 385 | $ 866 | $ 1,507 | $ 2,633 | |
Allegheny Valley | |||||
Business Acquisition [Line Items] | |||||
Net interest income | $ 3,259 | ||||
Noninterest income | 568 | ||||
Net income | $ 1,214 |
Merger with Allegheny Valley 56
Merger with Allegheny Valley Bancorp, Inc. (Details 4) - Allegheny Valley - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | ||
Net interest income | $ 21,706 | $ 21,276 |
Noninterest income | 4,238 | 3,811 |
Net income | $ 1,668 | $ 5,326 |
Pro forma earnings per share: | ||
Basic | $ 0.53 | $ 1.15 |
Diluted | $ 0.51 | $ 1.13 |
Merger with Allegheny Valley 57
Merger with Allegheny Valley Bancorp, Inc. (Detail Textuals) - USD ($) | Apr. 07, 2017 | Jun. 30, 2017 | Sep. 30, 2016 |
Business Acquisition [Line Items] | |||
Common stock issued for exchange | 2,168,097 | ||
Purchased credit impaired loans | $ 2,467,000 | ||
Goodwill resulting from the AVLY merger | 25,985,000 | $ 8,769,000 | |
Allegheny Valley | |||
Business Acquisition [Line Items] | |||
Number of shares received under merger agreement | 2.083 | ||
Outstanding shares of Allegheny Valley common stock | 1,040,924 | ||
Common stock issued for exchange | 2,168,097 | ||
Per share price for fractional shares | $ 26.60 | ||
Purchased credit impaired loans | $ 2,467,000 | ||
Percentage reserved for collection of principal and interest on loans | 100.00% | ||
Loan portfolio without evidence of deterioration | $ 316,448,000 | ||
Fair value of loan | 311,736,000 | ||
Accrued Interest receivable | 1,144,000 | ||
Interest rate adjustment | 861,000 | ||
General credit adjustment | 3,851,000 | ||
Goodwill and other intangible assets | 21,332,000 | ||
Goodwill resulting from the AVLY merger | $ 17,216,000 | ||
Allegheny Valley | Core deposit intangible | |||
Business Acquisition [Line Items] | |||
Carrying amount of core deposit intangible | 3,858,000 | ||
Accumulated amortization of core deposit intangible | $ 258,000 |