Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2018 | |
Document Information [Line Items] | |
Document Type | S4 |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2018 |
Entity Registrant Name | UNITED BANCORP INC /OH/ |
Entity Central Index Key | 731,653 |
Entity Filer Category | Smaller Reporting Company |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | |||
Cash and due from banks | $ 4,611 | $ 4,662 | $ 4,233 |
Interest-bearing demand deposits | 11,697 | 9,653 | 7,308 |
Cash and cash equivalents | 16,308 | 14,315 | 11,541 |
Available-for-sale securities | 86,212 | 44,959 | 39,766 |
Loans, net of allowance for loan losses of $2,080 and $2,122 at June 30, 2018 and December 31, 2017, respectively | 377,433 | 366,467 | 354,380 |
Premises and equipment | 11,817 | 11,740 | 11,884 |
Federal Home Loan Bank stock | 4,164 | 4,164 | 4,164 |
Foreclosed assets held for sale, net | 615 | 397 | 335 |
Accrued interest receivable | 1,275 | 993 | 840 |
Deferred income taxes | 495 | 349 | 850 |
Bank-owned life insurance | 12,263 | 12,114 | 11,822 |
Other assets | 4,219 | 3,834 | 2,436 |
Total assets | 514,801 | 459,332 | 438,018 |
Deposits | |||
Demand | 262,953 | 237,980 | 203,745 |
Savings | 83,838 | 82,169 | 81,825 |
Time | 68,843 | 65,817 | 53,233 |
Total deposits | 415,634 | 385,966 | 338,803 |
Securities sold under repurchase agreements | 12,346 | 11,085 | 9,393 |
Federal Home Loan Bank advances | 33,768 | 10,022 | 39,855 |
Subordinated debentures | 4,124 | 4,124 | 4,124 |
Interest payable and other liabilities | 3,944 | 4,240 | 3,202 |
Total liabilities | 469,816 | 415,437 | 395,377 |
Stockholders' Equity | |||
Preferred stock, no par value, authorized 2,000,000 shares; no shares issued | 0 | 0 | 0 |
Common stock, $1 par value; authorized 10,000,000 shares; issued 2018 –5,560,304 shares, 2017 – 5,435,304 shares; outstanding 2018 – 5,383,938, 2017 - 5,244,105 | 5,560 | 5,435 | 5,425 |
Additional paid-in capital | 17,927 | 18,020 | 18,024 |
Retained earnings | 24,177 | 23,260 | 22,483 |
Stock held by deferred compensation plan; 2018 –170,622 shares, 2017 – 185,355 shares | (1,579) | (1,671) | (1,880) |
Unearned ESOP compensation | (543) | (683) | (911) |
Accumulated other comprehensive loss | (511) | (420) | (454) |
Treasury stock, at cost 2018 –5,744 shares, 2017 – 5,744 shares | (46) | (46) | (46) |
Total stockholders' equity | 44,985 | 43,895 | 42,641 |
Total liabilities and stockholders' equity | $ 514,801 | $ 459,332 | $ 438,018 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loans, allowance for loan losses | $ 2,080 | $ 2,122 | $ 2,341 |
Preferred stock, no par value | $ 0 | $ 0 | $ 0 |
Preferred stock, authorized | 2,000,000 | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Common stock, par value | $ 1 | $ 1 | $ 1 |
Common stock, authorized | 10,000,000 | 10,000,000 | 10,000,000 |
Common stock, issued | 5,560,304 | 5,435,304 | 5,425,304 |
Common Stock, Shares, Outstanding | 5,383,938 | 5,244,105 | 5,208,015 |
Stock held by deferred compensation plan, shares | 170,622 | 185,355 | 211,509 |
Treasury stock, shares | 5,744 | 5,744 | 5,744 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest and dividend income | ||||||
Loans, including fees | $ 4,562 | $ 4,095 | $ 8,893 | $ 8,112 | $ 16,803 | $ 16,018 |
Taxable securities | 181 | 109 | 355 | 212 | 481 | 325 |
Non-taxable securities | 281 | 1 | 313 | 7 | 7 | 81 |
Federal funds sold | 24 | 36 | 51 | 47 | 151 | 36 |
Dividends on Federal Home Loan Bank stock and other | 59 | 49 | 120 | 96 | 209 | 175 |
Total interest and dividend income | 5,107 | 4,290 | 9,732 | 8,474 | 17,651 | 16,635 |
Interest Expense | ||||||
Deposits | 1,219 | 765 | ||||
Deposits | ||||||
Demand | 302 | 115 | 544 | 187 | ||
Savings | 9 | 10 | 19 | 19 | ||
Time | 222 | 170 | 427 | 318 | ||
Borrowings | 174 | 143 | 240 | 352 | 545 | 1,019 |
Total interest expense | 707 | 438 | 1,230 | 876 | 1,764 | 1,784 |
Net interest income | 4,400 | 3,852 | 8,502 | 7,598 | 15,887 | 14,851 |
Provision for loan losses | 72 | 25 | 129 | 50 | 100 | 301 |
Net interest income after provision for loan losses | 4,328 | 3,827 | 8,373 | 7,548 | 15,787 | 14,550 |
Noninterest income | ||||||
Service charges on deposit accounts | 650 | 632 | 1,281 | 1,229 | 2,502 | 2,594 |
Realized gains on sales of loans | 23 | 29 | 37 | 44 | 98 | 97 |
Earnings on bank-owned life insurance | 471 | 463 | ||||
Other income | 215 | 208 | 450 | 428 | 381 | 527 |
Total noninterest income | 888 | 869 | 1,768 | 1,701 | 3,452 | 3,681 |
Noninterest expense | ||||||
Salaries and employee benefits | 1,876 | 1,824 | 3,708 | 3,592 | 7,210 | 7,021 |
Net occupancy and equipment expense | 547 | 510 | 1,087 | 1,033 | 2,071 | 1,897 |
Provision for losses on foreclosed real estate | 20 | 6 | ||||
Professional services | 297 | 194 | 489 | 395 | 825 | 720 |
Insurance | 105 | 72 | 208 | 139 | 346 | 225 |
Deposit insurance premiums | 26 | 44 | 75 | 88 | 185 | 198 |
Franchise and other taxes | 102 | 96 | 198 | 180 | 347 | 325 |
Advertising | 125 | 100 | 262 | 209 | 426 | 324 |
Stationery and office supplies | 38 | 33 | 74 | 69 | 112 | 117 |
Net realized (gain) loss on sale of other real estate and repossessions | 5 | (4) | 5 | (4) | ||
Other expenses | 633 | 496 | 1,227 | 998 | 2,107 | 2,238 |
Total noninterest expense | 3,754 | 3,365 | 7,333 | 6,699 | 13,649 | 13,071 |
Income before federal income taxes | 1,462 | 1,331 | 2,808 | 2,550 | 5,590 | 5,160 |
Federal income taxes | 250 | 415 | 448 | 784 | 2,044 | 1,580 |
Net income | $ 1,212 | $ 916 | $ 2,360 | $ 1,766 | $ 3,546 | $ 3,580 |
EARNINGS PER COMMON SHARE | ||||||
Basic | $ 0.24 | $ 0.18 | $ 0.46 | $ 0.35 | $ 0.72 | $ 0.72 |
Diluted | 0.22 | 0.18 | 0.44 | 0.35 | 0.71 | 0.71 |
DIVIDENDS PER COMMON SHARE | $ 0.13 | $ 0.11 | $ 0.26 | $ 0.22 | $ 0.51 | $ 0.47 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income | $ 1,212 | $ 916 | $ 2,360 | $ 1,766 | $ 3,546 | $ 3,580 |
Other comprehensive income (loss), net of tax | ||||||
Unrealized holding gains (losses) on securities during the period, net of tax (benefits) of $21, $48, ($26) and $128 for each respective period | 79 | 93 | (91) | 248 | 89 | (310) |
Change in funded status of defined benefit plan, net of (benefits) $(20) and taxes of $22 for each respective period | (40) | 42 | ||||
Amortization of prior service included in net periodic pension expense, (benefits) of $(30) and $(30) for each respective period | (59) | (59) | ||||
Amortization of net loss included in net periodic pension cost, net of tax of $21 and $27 for each respective period | 44 | 54 | ||||
Comprehensive income | $ 1,291 | $ 1,009 | $ 2,269 | $ 2,014 | $ 3,580 | $ 3,307 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unrealized holding (losses) gains on securities during the period, net of taxes (benefits) | $ 21 | $ 48 | $ (26) | $ 128 | $ 24 | $ (159) |
Other Comprehensive Income Loss Change In Unfunded Status Of Defined Benefit Plan Liability Tax | (20) | 22 | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax | (30) | (30) | ||||
Other Comprehensive Income Loss Amortization Of Net Loss Included In Net Periodic Pension Cost Tax | $ 21 | $ 27 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member | Additional Paid-in Capital [Member] | Treasury Stock And Deferred Compensation [Member] | Shares Acquired By ESOP [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Dec. 31, 2015 | $ 41,496 | $ 5,385 | $ 18,245 | $ (2,125) | $ (1,271) | $ 21,443 | $ (181) |
Net income | 3,580 | 0 | 0 | 0 | 0 | 3,580 | 0 |
Other comprehensive income (loss) | (273) | 0 | 0 | 0 | 0 | 0 | (273) |
Cash dividends - per share | (2,540) | 0 | 0 | 0 | 0 | (2,540) | 0 |
Shares purchased for deferred compensation plan | 0 | 0 | (199) | 199 | 0 | 0 | 0 |
Expense related to share-based compensation plans | 147 | 0 | 147 | 0 | 0 | 0 | 0 |
Restricted stock activity | 0 | 40 | (40) | 0 | 0 | 0 | 0 |
Amortization of ESOP | 231 | 0 | (129) | 0 | 360 | 0 | 0 |
Balance at Dec. 31, 2016 | 42,641 | 5,425 | 18,024 | (1,926) | (911) | 22,483 | (454) |
Net income | 3,546 | 0 | 0 | 0 | 0 | 3,546 | 0 |
Other comprehensive income (loss) | 34 | 0 | 0 | 0 | 0 | 0 | 34 |
Cash dividends - per share | (2,769) | 0 | 0 | 0 | 0 | (2,769) | 0 |
Shares purchased for deferred compensation plan | 0 | 0 | (209) | 209 | 0 | 0 | 0 |
Expense related to share-based compensation plans | 163 | 0 | 163 | 0 | 0 | 0 | 0 |
Restricted stock activity | 0 | 10 | (10) | 0 | 0 | 0 | 0 |
Amortization of ESOP | 280 | 0 | 52 | 0 | 228 | 0 | 0 |
Balance at Dec. 31, 2017 | 43,895 | $ 5,435 | $ 18,020 | $ (1,717) | $ (683) | $ 23,260 | $ (420) |
Net income | 2,360 | ||||||
Balance at Jun. 30, 2018 | $ 44,985 |
Consolidated Statements of Sto8
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | ||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.13 | $ 0.11 | $ 0.26 | $ 0.22 | $ 0.51 | $ 0.47 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities | ||||
Net income | $ 2,360 | $ 1,766 | $ 3,546 | $ 3,580 |
Items not requiring (providing) cash | ||||
Accretion of premiums and discounts on securities, net | 36 | 0 | (1) | (1) |
Depreciation and amortization | 476 | 453 | 918 | 819 |
Expense related to share based compensation plans | 124 | 52 | 163 | 147 |
Expense related to ESOP | 140 | 140 | ||
Provision for loan losses | 129 | 50 | 100 | 301 |
Increase in value of bank-owned life insurance | (149) | (154) | (292) | (313) |
Gain on sale of loans | (37) | (44) | (98) | (97) |
Proceeds from sale of loans held for sale | 1,800 | 2,050 | 4,522 | 4,548 |
(Gain) Loss on sale or write down of foreclosed assets | 13 | (4) | 24 | 4 |
Amortization of mortgage servicing rights | 15 | 3 | 6 | 12 |
Provision for losses on foreclosed real estate | 20 | 6 | ||
Net change in accrued interest receivable and other assets | (838) | (1,464) | (153) | (37) |
Net change in accrued expenses and other liabilities | (296) | 501 | 1,038 | (458) |
Realized gains on sale of Great Lake Bankers Bank stock | 0 | (162) | ||
Deferred income taxes | 545 | 82 | ||
Originations of loans held for sale | (1,763) | (2,006) | (4,424) | (4,451) |
Amortization of ESOP | 280 | 231 | ||
Changes in | ||||
Other assets | (1,627) | (34) | ||
Net cash provided by operating activities | 2,010 | 1,343 | 4,567 | 4,177 |
Securities available for sale: | ||||
Maturities, prepayments and calls | 0 | 1,249 | ||
Purchases | (41,403) | 0 | (12,248) | (42,000) |
Proceeds from maturity of held-to-maturity securities | 7,249 | 36,389 | ||
Net change in loans | (11,309) | (866) | (12,336) | (27,468) |
Proceeds from sale of Great Lake Bankers Bank stock | 0 | 208 | ||
Purchases of premises and equipment | (552) | (429) | (782) | (2,257) |
Proceeds from sale of foreclosed assets | 15 | 0 | 71 | 124 |
Net cash used in investing activities | (53,249) | (46) | (18,046) | (35,004) |
Financing Activities | ||||
Net change in deposits | 29,668 | 35,112 | 47,163 | 15,181 |
Proceeds of Federal Home Loan Bank advances | 11,000 | 19,500 | ||
Net change in FHLB overnight borrowings | 23,800 | (19,500) | ||
Repayments of long-term borrowings | (54) | (10,068) | ||
Repayments of Federal Home Loan Bank advances | (40,833) | (6,175) | ||
Net change in securities sold under repurchase agreements | 1,261 | 3,596 | 1,692 | 3,701 |
Cash dividends paid on common stock | (1,443) | (1,194) | ||
Cash dividends paid | (2,769) | (2,540) | ||
Net cash provided by financing activities | 53,232 | 7,946 | 16,253 | 29,667 |
Increase in Cash and Cash Equivalents | 1,993 | 9,243 | 2,774 | (1,160) |
Cash and Cash Equivalents, Beginning of Period | 14,315 | 11,541 | 11,541 | 12,701 |
Cash and Cash Equivalents, End of Period | 16,308 | 20,784 | 14,315 | 11,541 |
Supplemental Cash Flows Information | ||||
Interest paid on deposits and borrowings | 1,176 | 906 | 1,807 | 1,796 |
Federal income taxes paid | 65 | 278 | 1,575 | 1,133 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities | ||||
Transfers from loans to foreclosed assets held for sale | $ 250 | $ 41 | $ 149 | $ 111 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | Note 1: Summary of Significant Accounting Policies These interim financial statements are prepared without audit and reflect all adjustments which, in the opinion of management, are necessary to present fairly the financial position of United Bancorp, Inc. (“Company”) at June 30, 2018, and its results of operations and cash flows for the interim periods presented. All such adjustments are normal and recurring in nature. The accompanying condensed consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and, therefore, do not purport to contain all the necessary financial disclosures required by accounting principles generally accepted in the United States of America that might otherwise be necessary in the circumstances and should be read in conjunction with the Company’s consolidated financial statements and related notes for the year ended December 31, 2017 included in its Annual Report on Form 10-K. Reference is made to the accounting policies of the Company described in the Notes to the Consolidated Financial Statements contained in its Annual Report on Form 10-K. The results of operations for the three months and six months ended June 30, 2018, are not necessarily indicative of the results to be expected for the full year. The condensed consolidated balance sheet of the Company as of December 31, 2017 has been derived from the audited consolidated balance sheet of the Company as of that date. Principles of Consolidation The consolidated financial statements include the accounts of United Bancorp, Inc. (“United” or “the Company”) and its wholly-owned subsidiary, Unified Bank of Martins Ferry, Ohio (“the Bank”). All intercompany transactions and balances have been eliminated in consolidation. Nature of Operations The Company’s revenues, operating income and assets are almost exclusively derived from banking. Accordingly, all of the Company’s banking operations are considered by management to be aggregated in one reportable operating segment. Customers are mainly located in Athens, Belmont, Carroll, Fairfield, Harrison, Jefferson and Tuscarawas Counties and the surrounding localities in northeastern, east-central and southeastern Ohio and include a wide range of individuals, businesses and other organizations. Unified Bank conducts its business through its main office in Martins Ferry, Ohio and branches in Amesville, Bridgeport, Colerain, Dellroy, Dillonvale, Dover, Glouster, Jewett, Lancaster Downtown, Lancaster East, Nelsonville, New Philadelphia, St. Clairsville East, St. Clairsville West, Sherrodsville, Strasburg and Tiltonsville, Ohio. The Bank also operates a Loan Production Office in Wheeling, West Virginia. The Company’s primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential mortgage, commercial, and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and real estate and are not considered “sub prime” type loans. The targeted lending areas of our Bank operations encompass four separate metropolitan areas, minimizing the risk to changes in economic conditions in the communities housing the Company’s branch locations. Commercial loans are expected to be repaid from cash flow from operations of businesses. Real estate loans are secured by both residential and commercial real estate. Net interest income is affected by the relative amount of interest-earning assets and interest-bearing liabilities and the interest received or paid on these balances. The level of interest rates paid or received by the Company can be significantly influenced by a number of environmental factors, such as governmental monetary and fiscal policies, that are outside of management’s control. Revenue Recognition Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, investment securities, as well as revenue related to our mortgage banking activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our income statements as components of non-interest income are as follows: Service charges on deposit accounts - these represent general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. Use of Estimates To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided and future results could differ. The allowance for loan losses and fair values of financial instruments are particularly subject to change. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. For all loan classes, the accrual of interest is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. For all loan classes, the entire balance of the loan is considered past due if the minimum payment contractually required to be paid is not received by the contractual due date. For all loan classes, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. Management’s general practice is to proactively charge down loans individually evaluated for impairment to the fair value of the underlying collateral. Consistent with regulatory guidance, charge-offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. The Company’s policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined. For all loan portfolio segments except residential and consumer loans, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral. The Company charges-off residential and consumer loans when the Company reasonably determines the amount of the loss. The Company adheres to timeframes established by applicable regulatory guidance which provides for the charge-down of 1-4 family first and junior lien mortgages to the net realizable value less costs to sell when the loan is 120 days past due, charge-off of unsecured open-end loans when the loan is 120 days past due, and charge down to the net realizable value when other secured loans are 120 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off. For all classes, all interest accrued but not collected for loans that are placed on nonaccrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status. When cash payments are received on impaired loans in each loan class, the Company records the payment as interest income unless collection of the remaining recorded principal amount is doubtful, at which time payments are used to reduce the principal balance of the loan. Troubled debt restructured loans recognize interest income on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms, no principal reduction has been granted and the loan has demonstrated the ability to perform in accordance with the renegotiated terms for a period of at least six months. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on historical charge-off experience by segment. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the prior three years. Management believes the three year historical loss experience methodology is appropriate in the current economic environment. Other adjustments (qualitative/environmental considerations) for each segment may be added to the allowance for each loan segment after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. A loan is considered 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. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due based on the loan’s current payment status and the borrower’s financial condition including available sources of cash flows. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. 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. Impairment is measured on a loan-by-loan basis for non-homogenous type loans such as commercial, non-owner residential and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. For impaired loans where the Company utilizes the discounted cash flows to determine the level of impairment, the Company includes the entire change in the present value of cash flows as bad debt expense. The fair values of collateral dependent impaired loans are based on independent appraisals of the collateral. In general, the Company acquires an updated appraisal upon identification of impairment and annually thereafter for commercial, commercial real estate and multi-family loans. If the most recent appraisal is over a year old, and a new appraisal is not performed, due to lack of comparable values or other reasons, the existing appraisal is utilized and discounted generally 10% - 35% based on the age of the appraisal, condition of the subject property, and overall economic conditions. After determining the collateral value as described, the fair value is calculated based on the determined collateral value less selling expenses. The potential for outdated appraisal values is considered in our determination of the allowance for loan losses through our analysis of various trends and conditions including the local economy, trends in charge-offs and delinquencies, etc. and the related qualitative adjustments assigned by the Company. Segments of loans with similar risk characteristics are collectively evaluated for impairment based on the segment’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. In the course of working with borrowers, the Company may choose to restructure the contractual terms of certain loans. In this scenario, the Company attempts to work-out an alternative payment schedule with the borrower in order to optimize collectability of the loan. Any loans that are modified are reviewed by the Company to identify if a troubled debt restructuring (“TDR”) has occurred, which is when, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms, or a combination of the two. If such efforts by the Company do not result in a satisfactory arrangement, the loan is referred to legal counsel, at which time foreclosure proceedings are initiated. At any time prior to a sale of the property at foreclosure, the Company may terminate foreclosure proceedings if the borrower is able to work-out a satisfactory payment plan. It is the Company’s policy to have any restructured loans which are on nonaccrual status prior to being restructured remain on nonaccrual status until six months of satisfactory borrower performance at which time management would consider its return to accrual status. If a loan was accruing at the time of restructuring, the Company reviews the loan to determine if it is appropriate to continue the accrual of interest on the restructured loan. With regard to determination of the amount of the allowance for credit losses, trouble debt restructured loans are considered to be impaired. As a result, the determination of the amount of impaired loans for each portfolio segment within troubled debt restructurings is the same as detailed previously. Earnings Per Share Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during each period. Diluted earnings per share reflects additional potential common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options and restricted stock awards and are determined using the treasury stock method. Treasury stock shares, deferred compensation shares and unearned ESOP shares are not deemed outstanding for earnings per share calculations. Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands, except share and per share data) Basic Net income $ 1,212 $ 916 $ 2,360 $ 1,766 Dividends on non-vested restricted stock (27 ) (9 ) (53 ) (17 ) Net income allocated to stockholders $ 1,185 $ 907 $ 2,307 $ 1,749 Weighted average common shares outstanding 4,990,904 4,847,884 4,986,290 4,839,725 Basic earnings per common share $ 0.24 $ 0.18 $ 0.46 $ 0.35 Diluted Net income allocated to stockholders $ 1,185 $ 907 $ 2,307 $ 1,749 Weighted average common shares outstanding for basic earnings per common share 4,990,904 4,847,884 4,986,290 4,839,725 Add: Dilutive effects of assumed exercise of stock options and restricted stock 226,030 119,102 224,998 119,102 Average shares and dilutive potential common shares 5,216,934 4,966,986 5,211,288 4,958,827 Diluted earnings per common share $ 0.22 $ 0.18 $ 0.44 $ 0.35 Income Taxes The Company is subject to income taxes in the U.S. federal jurisdiction, as well as various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for the years before 2014. Recently Ado pted Accounting Pronouncements ASU No. 2018-02 was issued in February 2018 to provide guidance to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Act and will improve usefulness of information reported to financial statement users. The amendments in this ASU will also require certain disclosures about stranded tax effects and is effective for fiscal years beginning after December 31, 2018. The Company early adopted ASU 2018-02 effective January 1, 2018 and reclassified approximately $48,000 in stranded tax effects in the adoption using the method. ASU No. 2017-09 was issued in May 2017 and provides guidance about which changes to the terms or condition of a share-based payment award require and entity to apply modification accounting in Topic 718. The amendments in this Update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company has adopted ASU 2017-09 on January 1, 2018 and it did not have a significant impact on its accounting and disclosures. ASU No. 2017-07 was issued in March 2017 and applies to all employers that offer to their employees defined benefit pension plans, other postretirement benefit plans, or other types of benefits accounted for under Topic 715. The amendments in this update require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost, as defined, are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The amendments in ASU No. 2017-07 are effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The amendments in this update are to be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement. The Company has adopted ASU 2017-07 on January 1, 2018 and it did not have a significant impact on its accounting and disclosures. In August 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-15 "Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments. ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ASU No. 2016-01 was issued in January 2016 and applies to all entities that hold financial assets or owe financial liabilities. ASU 2016-01 is intended to improve the recognition and measurement of financial instruments by requiring equity investments to be measured at fair value with changes in fair value recognized in net income; requiring public entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured and amortized at cost on the balance sheet; and requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instruments specific credit risk when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. ASU 2016-01 is effective for annual periods and interim periods within those periods, beginning after December 15, 2017. The amendments should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity instruments that exist as of the date of adoption. The amendments will have an impact on certain items that are disclosed at fair value that are not currently utilizing the exit price notion when measuring fair value. The Company has adopted ASU 2016-01 on January 1, 2018 and it did not have a material effect on its fair value disclosures and other disclosure requirements. For additional information on fair value of assets and liabilities, see Note 16. In May 2014, the FASB issued ASU No. 2014-09 “ Revenue from Contracts with Customers (Topic 606) ” (ASU 2014-09). This update to the ASC is the culmination of efforts by the FASB and the International Accounting Standards Board (IASB) to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards (IFRS). ASU 2014-09 supersedes Topic 605 – Revenue Recognition and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance in ASU 2014-09 describes a 5-step process entities can apply to achieve the core principle of revenue recognition and requires disclosures sufficient to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers and the significant judgments used in determining that information. Originally, the amendments in ASU 2014-09 were effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and early application is not allowed. In July 2015, the FASB extended the implementation date to annual reporting periods beginning after December 15, 2017 including interim periods within that reporting period. Transitional guidance is included in the update. Earlier adoption is permitted only as of annual reporting periods beginning after December 31, 2016, including interim periods within that reporting period. The Company’s revenue is comprised of net interest income, which is explicitly excluded from the scope of ASU 2014-09, and non interest income. The Company has adopted ASU 2014-09 on January 1, 2018 and it did not identify any changes in the timing of revenue recognition when considering the amended accounting guidance. The Company included additional disclosures beginning in the first quarter of 2018 as required by the guidance. Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments.” The provisions of ASU 2016-13 were issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other commitments to extend credit held by a reporting entity at each reporting date. ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016-13 eliminate the probable incurred loss recognition in current GAAP and reflect an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets. For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses on PCD assets are recognized through the statement of income as a credit loss expense. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact of these amendments to the Company’s financial position and results of operations and currently does not know or cannot reasonably quantify the impact of the adoption of the amendments as a result of the complexity and extensive changes from the amendments. The Allowance for Loan Losses (ALL) estimate is material to the Company and given the change from an incurred loss model to a methodology that considers the credit loss over the life of the loan, there is the potential for an increase in the ALL at adoption date. The Company is anticipating a significant change in the processes and procedures to calculate the ALL, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. In addition, the current accounting policy and procedures for the other-than-temporary impairment on available-for-sale securities will be replaced with an allowance approach. The Company continues to work with an outside vendor on data collection and reviewing segmentation to ensure it is fully compliant with the amendments at adoption date. For additional information on the allowance for loan losses, see Note 4. On February 25, 2016, the FASB issued ASU 2016-02 “ Leases (Topic 842). ” ASU 2016-02 is intended to improve financial reporting about leasing transactions. This ASU affects all companies and other organizations that lease assets such as real estate, airplanes, and manufacturing equipment. Under the current accounting model, an organization applies a classification test to determine the accounting for the lease arrangement: (a) Some leases are classified as capital whereby the lessee would recognize lease assets and liabilities on the balance sheet. (b) Other leases are classified as operating leases whereby the lessee would not recognize lease assets and liabilities on the balance sheet. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with Generally Accepted Accounting Principles (GAAP), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet—the new ASU will require both types of leases to be recognized on the balance sheet. For public companies, the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Thus, for a calendar year company, it would be effective January 1, 2019. The impact is not expected to have a material effect on the Company’s financial position or results of operations since the Company does not have a material amount of lease agreements. Future Acquisition The Company and Powhatan Community Bancshares, Inc. (“Powhatan”) , the holding company for First National Bank of Powhatan Point ("First National"), announced on June 14, 2018 they have signed a definitive agreement whereby the Company will acquire Powhatan in a stock and cash transaction. Upon completion, First National will be merged into the Company’s subsidiary bank, Unified Bank. At that time, the main office of First National will become a full-service branch of Unified Bank. Powhatan operates one full-service office in Belmont County, Ohio and has approximately $62.8 million in assets, $6.7 million in loans, $57.6 million of deposits and $5.1 million in consolidated equity as of June 30, 2018 The acquisition is expected to close in the fourth quarter of 2018 and is subject to Powhatan shareholder approval, regulatory approval, and other conditions set forth in the merger agreement. Subject to the terms of the merger agreement, which has been unanimously approved by the Board of Directors of each company, Powhatan shareholders will receive 6.9233 shares of common stock plus $38.75 in cash for each outstanding share of Powhatan common stock, subject to adjustment based on closing equity and other factors. Based on our closing share price prior to the ann | Note 1: Nature of Operations and Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of United Bancorp, Inc. (“United” or “the Company”) and its wholly-owned subsidiary, Unified Bank of Martins Ferry, Ohio (“the Bank” or “Unified”). All intercompany transactions and balances have been eliminated in consolidation. Nature of Operations The Company’s revenues, operating income and assets are almost exclusively derived from banking. Accordingly, all of the Company’s banking operations are considered by management to be aggregated in one reportable operating segment. Customers are mainly located in Athens, Belmont, Carroll, Fairfield, Harrison, Jefferson and Tuscarawas Counties and the surrounding localities in northeastern, east-central and southeastern Ohio and include a wide range of individuals, businesses and other organizations. Unified Bank conducts its business through its main office in Martins Ferry, Ohio and branches in Amesville, Bridgeport, Colerain, Dellroy, Dillonvale, Dover, Glouster, Jewett, Lancaster Downtown, Lancaster East, Nelsonville, New Philadelphia, St. Clairsville East, St. Clairsville West, Sherrodsville, Strasburg and Tiltonsville, Ohio. The Bank also operates a Loan Production Office in Wheeling, West Virginia. The Company’s primary deposit products are checking, savings and term certificate accounts and its primary lending products are residential mortgage, commercial and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. Real estate loans are secured by both residential and commercial real estate. Net interest income is affected by the relative amount of interest-earning assets and interest-bearing liabilities and the interest received or paid on these balances. The level of interest rates paid or received by the Company can be significantly influenced by a number of environmental factors, such as governmental monetary policy, that are outside of management’s control. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowance for loan losses and the valuation of foreclosed assets held for sale, management obtains independent appraisals for significant properties. Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2017 and 2016, cash equivalents consisted primarily of due from accounts with the Federal Reserve and other correspondent Banks. Currently, the FDIC’s insurance limits are $250,000. At December 31, 2017 and 2016, none of the Company’s cash accounts exceeded the federally insured limit of $250,000. Securities Certain debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. Securities not classified as held to maturity, including equity securities with readily determinable fair values, are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. For debt securities with fair value below amortized cost, when the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held-to-maturity debt securities, the amount of an other-than-temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment is amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security. Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. At December 31, 2017 and 2016, the Company did not have any loans held for sale. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. For all loan classes, the accrual of interest is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. For all loan classes, the entire balance of the loan is considered past due if the minimum payment contractually required to be paid is not received by the contractual due date. For all loan classes, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. Management’s general practice is to proactively charge down loans individually evaluated for impairment to the fair value of the underlying collateral. Consistent with regulatory guidance, charge-offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. The Company’s policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined. For all loan portfolio segments except residential and consumer loans, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral. The Company charges-off residential and consumer loans when the Company reasonably determines the amount of the loss. The Company adheres to timeframes established by applicable regulatory guidance which provides for the charge-down of 1-4 family first and junior lien mortgages to the net realizable value less costs to sell when the loan is 120 days past due, charge-off of unsecured open-end loans when the loan is 120 days past due, and charge down to the net realizable value when other secured loans are 120 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off. For all classes, all interest accrued but not collected for loans that are placed on nonaccrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status. When cash payments are received on impaired loans in each loan class, the Company records the payment as interest income unless collection of the remaining recorded principal amount is doubtful, at which time payments are used to reduce the principal balance of the loan. Troubled debt restructured loans recognize interest income on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms, no principal reduction has been granted and the loan has demonstrated the ability to perform in accordance with the renegotiated terms for a period of at least six months. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a monthly basis by Bank management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on historical charge-off experience by segment. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the prior five years. Management believes the five year historical loss experience methodology is appropriate in the current economic environment. Other adjustments (qualitative/environmental considerations) for each segment may be added to the allowance for each loan segment after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. A loan is considered 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. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due based on the loan’s current payment status and the borrower’s financial condition including available sources of cash flows. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. 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. Impairment is measured on a loan-by-loan basis for non-homogenous type loans such as commercial, non-owner residential and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. For impaired loans where the Company utilizes the discounted cash flows to determine the level of impairment, the Company includes the entire change in the present value of cash flows as bad debt expense. The fair values of collateral dependent impaired loans are based on independent appraisals of the collateral. In general, the Company acquires an updated appraisal upon identification of impairment and annually thereafter for commercial, commercial real estate and multi-family loans. If the most recent appraisal is over a year old, and a new appraisal is not performed, due to lack of comparable values or other reasons, the existing appraisal is utilized and discounted generally 10% -35% based on the age of the appraisal, condition of the subject property, and overall economic conditions. After determining the collateral value as described, the fair value is calculated based on the determined collateral value less selling expenses. The potential for outdated appraisal values is considered in our determination of the allowance for loan losses through our analysis of various trends and conditions including the local economy, trends in charge-offs and delinquencies, etc. and the related qualitative adjustments assigned by the Company. Segments of loans with similar risk characteristics are collectively evaluated for impairment based on the segment’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. In the course of working with borrowers, the Company may choose to restructure the contractual terms of certain loans. In this scenario, the Company attempts to work-out an alternative payment schedule with the borrower in order to optimize collectability of the loan. Any loans that are modified are reviewed by the Company to identify if a troubled debt restructuring (“TDR”) has occurred, which is when, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms, or a combination of the two. If such efforts by the Company do not result in a satisfactory arrangement, the loan is referred to legal counsel, at which time foreclosure proceedings are initiated. At any time prior to a sale of the property at foreclosure, the Company may terminate foreclosure proceedings if the borrower is able to work-out a satisfactory payment plan. It is the Company’s policy to have any restructured loans which are on nonaccrual status prior to being restructured remain on nonaccrual status until six months of satisfactory borrower performance at which time management would consider its return to accrual status. If a loan was accruing at the time of restructuring, the Company reviews the loan to determine if it is appropriate to continue the accrual of interest on the restructured loan. With regard to determination of the amount of the allowance for credit losses, trouble debt restructured loans are considered to be impaired. As a result, the determination of the amount of impaired loans for each portfolio segment within troubled debt restructurings is the same as detailed previously. Premises and Equipment Depreciable assets are stated at cost less accumulated depreciation. Depreciation is charged to expense using the straight-line method over the estimated useful lives of the assets. An accelerated method is used for tax purposes. Federal Home Loan Bank Stock Federal Home Loan Bank stock is a required investment for institutions that are members of the Federal Home Loan Bank system. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for impairment. Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value, less costs to sell, at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net income or expense from foreclosed assets. Bank-Owned Life Insurance The Company and the Bank have purchased life insurance policies on certain key executives. Company and bank-owned life insurance is recorded at its cash surrender value, or the amount that can be realized. Treasury Stock Common shares repurchased are recorded at cost. Cost of shares retired or reissued is determined using the weighted average cost. Restricted Stock Awards The Company has a share-based employee compensation plan, which is described more fully in Note 14. Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if based on the weight of evidence available it is more likely than not that some portion or all of a deferred tax asset will not be realized. Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. At December 31, 2017, the Company had no uncertain tax positions. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Company’s impact of this Tax Act resulted in a charge against net income of approximately $216,000. This is primarily due to the write down of its deferred tax assets as a result of the Tax Act’s reduction in the base corporate tax rate from 35% to 21%. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company files consolidated income tax returns with its subsidiary. With a few exceptions, the Company is no longer subject to the examination by tax authorities for years before 2014. Deferred Compensation Plan Directors have the option to defer all or a portion of fees for their services into a deferred stock compensation plan that invests in common shares of the Company. Officers of the Company have the option to defer up to 50% of their annual incentive award into this plan. The plan does not permit diversification and must be settled by the delivery of a fixed number of shares of the Company stock. The stock held in the plan is included in equity as deferred shares and is accounted for in a manner similar to treasury stock. Subsequent changes in the fair value of the Company’s stock are not recognized. The deferred compensation obligation is also classified as an equity instrument and changes in the fair value of the amount owed to the participant are not recognized. Stockholders’ Equity and Dividend Restrictions The Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. Generally, the Bank’s payment of dividends is limited to net income for the current year plus the two preceding calendar years, less capital distributions paid over the comparable time period. Dividend payments to the stockholders may be legally paid from additional paid-in capital or retained earnings. Earnings Per Share Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during each period. Diluted earnings per share reflects additional potential common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options and restricted stock awards and are determined using the treasury stock method. Treasury stock shares, deferred compensation shares and unearned ESOP shares are not deemed outstanding for earnings per share calculations. Comprehensive Income Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities and changes in the funded status of the defined benefit pension plan. Advertising Advertising costs are expensed as incurred. |
Securities
Securities | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Securities [Abstract] | ||
Securities | Note 2: Securities The amortized cost and approximate fair values, together with gross unrealized gains and losses of securities are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Available-for-sale Securities: June 30, 2018: U.S. government agencies $ 45,250 $ — $ (669 ) $ 44,581 State and political subdivisions 41,366 271 (6 ) 41,631 $ 86,616 $ 271 $ (675 ) $ 86,212 Available-for-sale Securities: December 31, 2017: U.S. government agencies $ 45,249 $ — (290 ) $ 44,959 $ 45,249 $ 3 $ (290 ) $ 44,959 The amortized cost and fair value of available-for-sale securities at June 30, 2018, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-sale Amortized Fair (In thousands) Within one year $ — $ — One to five years 45,250 44,580 Five to ten year — — Due after ten years 41,366 41,632 Totals $ 86,616 $ 86,212 The carrying value of securities pledged to secure public deposits and for other purpose, was $42.6 million and $41.5 million at June 30, 2018 and December 31, 2017, respectively. Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. The total fair value of these investments at June 30, 2018 and December 31, 2017, was $47.7 million and $44.9 million, which represented approximately 55.2% and 100.0%, respectively, of the Company’s available-for-sale investment portfolio. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary and are a result on an general increase in longer term interest rates. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. The following tables show the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2018 and December 31, 2017: June 30, 2018 Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) U.S. Government agencies $ 12,094 $ (156 ) $ 32,487 $ (513 ) $ 44,581 $ (669 ) State and Political Subdivisions 3,081 (6 ) — — 3,081 (6 ) Total $ 15,175 $ (162 ) $ 32,487 $ (513 ) $ 47,662 $ (675 ) December 31, 2017 Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) U.S. Government agencies $ 12,190 $ (59 ) $ 32,769 $ (231 ) $ 44,959 $ (290 ) The unrealized losses on the Company’s investments in U.S. Government agencies were caused primarily by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at June 30, 2018 and December 31, 2017. There were no investment sales for the six months ended June 30, 2018 and 2017. | Note 3: Securities The amortized cost and approximate fair values, together with gross unrealized gains and losses of securities are as follows: Amortized Gross Gross Approximate (In thousands) Available-for-sale Securities: December 31, 2017: U.S. government agencies $ 45,249 $ — $ (290 ) $ 44,959 $ 45,249 $ — $ (290 ) $ 44,959 Available-for-sale Securities: December 31, 2016: U.S. government agencies $ 39,000 $ — $ (486 ) $ 38,514 State and political subdivisions 1,249 3 — 1,252 $ 40,249 $ 3 $ (486 ) $ 39,766 The amortized cost and fair value of available-for-sale securities at December 31, 2017, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Maturities for mortgage-backed securities are presented in the table below based on their projected maturities. Available-for-sale Amortized Fair (In thousands) One to five years $ 45,249 $ 44,959 Totals $ 45,249 $ 44,959 The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was $41.5 million and $27.9 million at December 31, 2017 and 2016, respectively. Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. The total fair value of these investments at December 31, 2017 and 2016, was $44.9 million and $38.5 million, which represented approximately 100% and 96.8%, respectively, of the Company’s available-for-sale investment portfolio. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. The following tables show the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2017 and 2016: December 31, 2017 Less than 12 Months 12 Months or More Total Description of Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) US Government agencies $ 12,190 $ (59 ) $ 32,769 $ (231 ) $ 44,959 $ (290 ) Total temporarily impaired securities $ 12,190 $ (59 ) $ 32,769 $ (231 ) $ 44,959 $ (290 ) December 31, 2016 Less than 12 Months 12 Months or More Total Description of Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) US Government agencies $ 38,514 $ (486 ) $ — $ — $ 38,514 $ (486 ) Total temporarily impaired securities $ 38,514 $ (486 ) $ — $ — $ 38,514 $ (486 ) U. S. Government Agencies The unrealized losses on the Company’s investments in direct obligations of U. S. Government agencies were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2017. |
Restriction on Cash and Due Fro
Restriction on Cash and Due From Banks | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Restriction on Cash and Due From Banks | Note 2: Restriction on Cash and Due From Banks The Company is required to maintain reserve funds in cash and/or on deposit with the Federal Reserve Bank. The reserve required at December 31, 2017 and 2016, was $3.5 million and $2.8 million, respectively. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Loans and Allowance For Loan Losses [Abstract] | ||
Loans and Allowance for Loan Losses | Note 3: Loans and Allowance for Loan Losses Categories of loans include: June 30, December 31, 2018 2017 (In thousands) Commercial loans $ 84,772 $ 81,327 Commercial real estate 206,795 198,936 Residential real estate 76,476 75,853 Installment loans 11,470 12,473 Total gross loans 379,513 368,589 Less allowance for loan losses (2,080 ) (2,122 ) Total loans $ 377,433 $ 366,467 The risk characteristics of each loan portfolio segment are as follows: Commercial Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may include a personal guarantee. Short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial Real Estate Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The characteristics of properties securing the Company’s commercial real estate portfolio are diverse, but with geographic location almost entirely in the Company’s market area. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In general, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate versus nonowner-occupied loans. Residential and Installment Residential and loans consist of two segments - residential mortgage loans and personal loans. For residential mortgage loans that are secured by 1-4 family residences and are generally owner-occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer personal loans are secured by consumer personal assets, such as automobiles or recreational vehicles. Some personal loans are unsecured, such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas, such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Allowance for Loan Losses and Recorded Investment in Loans As of and for the three and six month periods ended June 30, 2018 Commercial Commercial Real Estate Residential Installment Unallocated Total (In thousands) Allowance for loan losses: Balance, April 1, 2018 $ 522 $ 671 $ 446 $ 400 $ 86 $ 2,125 Provision charged to expense 22 (17 ) 137 16 (86 ) 72 Losses charged off — — (79 ) (55 ) — (134 ) Recoveries 1 — 1 15 — 17 Balance, June 30, 2018 $ 545 $ 654 $ 505 $ 376 $ — $ 2,080 Balance, January 1, 2018 $ 537 $ 843 $ 436 $ 218 $ 88 $ 2,122 Provision charged to expense 6 (190 ) 146 255 (88 ) 129 Losses charged off — — (79 ) (124 ) — (203 ) Recoveries 2 1 2 27 — 32 Balance, June 30, 2018 $ 545 $ 654 $ 505 $ 376 $ — $ 2,080 Allocation: Ending balance: individually evaluated for impairment $ — $ 75 $ — $ — $ — $ 75 Ending balance: collectively evaluated for impairment $ 545 $ 579 $ 505 $ 376 $ — $ 2,005 Loans: Ending balance: individually evaluated for impairment $ 58 $ 577 $ — $ 98 $ — $ 733 Ending balance: collectively evaluated for impairment $ 84,714 $ 206,218 $ 76,476 $ 11,372 $ — $ 378,780 Allowance for Loan Losses and Recorded Investment in Loans As of and for the three and six month periods ended June 30, 2017 Commercial Commercial Real Estate Residential Installment Unallocated Total (In thousands) Allowance for loan losses: Balance, April 1, 2017 $ 498 $ 793 $ 583 $ 162 $ 297 $ 2,333 Provision charged to expense 33 56 (137 ) 193 (120 ) 25 Losses charged off — (5 ) — (77 ) — (82 ) Recoveries 1 1 1 13 — 16 Balance, June 30, 2017 $ 532 $ 845 $ 447 $ 291 $ 177 $ 2,292 Balance, January 1, 2017 $ 495 $ 804 $ 591 $ 107 $ 344 $ 2,341 Provision charged to expense 36 44 (150 ) 287 (167 ) 50 Losses charged off — (5 ) — (127 ) — (132 ) Recoveries 1 2 6 24 — 33 Balance, June 30, 2017 $ 532 $ 845 $ 447 $ 291 $ 177 $ 2,292 Loans: Ending balance: individually evaluated for impairment $ 129 $ 841 $ — $ 462 $ — $ 1,432 Ending balance: collectively evaluated for impairment $ 51,732 $ 216,508 $ 75,158 $ 12,739 $ — $ 356,137 Allowance for Loan Losses and Recorded Investment in Loans As of December 31, 2017 Commercial Commercial Real Estate Residential Installment Unallocated Total (In thousands) Allowance for loan losses: Ending balance: individually evaluated for impairment $ — $ 73 $ — $ — $ — $ 73 Ending balance: collectively evaluated for impairment $ 537 $ 770 $ 436 $ 218 $ 88 $ 2,049 Loans: Ending balance: individually evaluated for impairment $ 83 $ 619 $ — $ 306 $ — $ 1,008 Ending balance: collectively evaluated for impairment $ 81,244 $ 198,317 $ 75,853 $ 12,167 $ — $ 367,581 The following tables show the portfolio quality indicators. June 30, 2018 Loan Class Commercial Commercial Real Estate Residential Installment Total (In thousands) Pass Grade $ 84,701 $ 203,010 $ 76,476 $ 11,371 $ 375,558 Special Mention — 2,943 — — 2,943 Substandard 71 842 — 99 1,012 Doubtful — — — — — $ 84,772 $ 206,795 $ 76,476 $ 11,470 $ 379,513 December 31, 2017 Loan Class Commercial Commercial Real Estate Residential Installment Total (In thousands) Pass Grade $ 78,652 $ 195,063 $ 75,853 $ 12,167 $ 361,735 Special Mention 20 3,066 — — 3,086 Substandard 2,655 807 — 306 3,768 Doubtful — — — — — $ 81,327 $ 198,936 $ 75,853 $ 12,473 $ 368,589 To facilitate the monitoring of credit quality within the loan portfolio, and for purposes of analyzing historical loss rates used in the determination of the ALLL, the Company utilizes the following categories of credit grades: pass, special mention, substandard, and doubtful. The four categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter. Pass ratings, which are assigned to those borrowers that do not have identified potential or well defined weaknesses and for which there is a high likelihood of orderly repayment, are updated periodically based on the size and credit characteristics of the borrower. All other categories are updated on at least a quarterly basis. The Company assigns a special mention rating to loans that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the loan or the Company’s credit position. The Company assigns a substandard rating to loans that are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. Substandard loans have well defined weaknesses or weaknesses that could jeopardize the orderly repayment of the debt. Loans and leases in this grade also are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies noted are not addressed and corrected. The Company assigns a doubtful rating to loans that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan or lease, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans. The Company evaluates the loan risk grading system definitions and allowance for loan losses methodology on an ongoing basis. No significant changes were made to either during the past year to date Loan Portfolio Aging Analysis As of June 30, 2018 30-59 Days Past Due and Accruing 60-89 Days Past Due and Accruing Greater Than 90 Days and Accruing Non Accrual Total Past Due and Non Accrual Current Total Loans Receivable (In thousands) Commercial $ 35 $ — $ 57 $ — $ 92 $ 84,680 $ 84,772 Commercial real estate 997 — — 486 1,483 205,312 206,795 Residential 611 18 — 659 1,288 75,188 76,476 Installment 13 — — 59 72 11,398 11,470 Total $ 1,656 $ 18 $ 57 $ 1,204 $ 2,935 $ 376,578 $ 379,513 Loan Portfolio Aging Analysis As of December 31, 2017 30-59 Days Past Due and Accruing 60-89 Days Past Due and Accruing Greater Than 90 Days and Accruing Non Accrual Total Past Due and Non Accrual Current Total Loans Receivable (In thousands) Commercial $ 56 $ — $ — $ 83 $ 139 $ 81,188 $ 81,327 Commercial real estate 262 — — 500 762 198,174 198,936 Residential 559 306 — 760 1,625 74,228 75,853 Installment 61 40 — 52 153 12,320 12,473 Total $ 938 $ 346 $ — $ 1,395 $ 2,679 $ 365,910 $ 368,589 A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Impaired Loans As of June 30, 2018 For the three months ended June 30, 2018 For the six months ended June 30, 2018 Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized (In thousands) Loans without a specific valuation allowance: Commercial $ 58 $ 58 $ — $ 59 $ 2 $ 60 $ 2 Commercial real estate 168 168 — 583 1 582 5 Residential — — — — — — — Installment 98 98 — 99 1 100 2 324 324 — 741 4 742 9 Loans with a specific valuation allowance: Commercial — — — — — — — Commercial real estate 409 409 75 421 1 422 1 Residential — — — — — — — Installment — — — — — — — 409 409 75 421 1 422 1 Total: Commercial $ 58 $ 58 $ — $ 59 $ 2 $ 60 $ 2 Commercial real estate $ 577 $ 577 $ 75 $ 1,004 $ 2 $ 1,004 $ 6 Residential $ — $ — $ — $ — $ — $ — $ — Installment $ 98 $ 98 $ — $ 99 $ 1 $ 100 $ 2 Impaired Loans As of December 31, 2017 For the three months ended June 30, 2017 For the six months ended June 30, 2017 Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized (In thousands) Loans without a specific valuation allowance: Commercial $ 83 $ 83 $ — $ 131 $ 1 $ 128 $ 2 Commercial real estate 209 317 — 808 3 825 5 Residential — — — — — — — Installment 306 306 — 463 3 477 3 598 706 — 1,402 7 1,430 10 Loans with a specific valuation allowance: Commercial — — — — — — 3 Commercial real estate 410 410 73 489 6 498 12 Residential — — — — — — — Installment — — — — — — — 410 410 73 489 6 498 15 Total: Commercial $ 83 $ 83 $ 73 $ 131 $ 1 $ 128 $ 5 Commercial real estate $ 619 $ 727 $ — $ 1,297 $ 9 $ 1,323 $ 17 Residential $ — $ — $ — $ — $ — $ — $ — Installment $ 306 $ 306 $ — $ 463 $ 3 $ 477 $ 3 Interest income recognized on a cash basis was not materiality different than interest income recognized. For the TDRs noted in the tables below, the Company extended the maturity dates and granted interest rate concessions as part of each of those loan restructurings. The loans included in the tables are considered impaired and specific loss calculations are performed on the individual loans. In conjunction with the restructuring there were no amounts charged-off. Three Months ended June 30, 2018 Number of Pre- Modification Post-Modification (In thousands) Commercial — $ — $ — Commercial real estate — — — Residential — — — Installment — — — Three Months Ended June 30, 2018 Interest Term Combination Total ( In thousands Commercial $ — $ — $ — $ — Commercial real estate — — — — Residential — — — — Consumer — — — — Six Months ended June 30, 2018 Number of Contracts Pre- Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (In thousands) Commercial — $ — $ — Commercial real estate — — — Residential — — — Installment — — — Six Months Ended June 30, 2018 Interest Only Term Combination Total Modification ( In thousands Commercial $ — $ — $ — $ — Commercial real estate — — — — Residential — — — — Consumer — — — — Three Months ended June 30, 2017 Number of Contracts Pre- Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (In thousands) Commercial — $ — $ — Commercial real estate 2 127 103 Residential — — — Installment — — — Three Months Ended June 30, 2017 Interest Term Combination Total Modification ( In thousands Commercial $ — $ — $ — $ — Commercial real estate — 103 — 103 Residential — — — — Consumer — — — — Six Months ended June 30, 2017 Number of Pre- Modification Post-Modification (In thousands) Commercial — $ — $ — Commercial real estate 2 127 103 Residential — — — Installment — — — Six Months Ended June 30, 2017 Interest Only Term Combination Total Modification ( In thousands Commercial $ — $ — $ — $ — Commercial real estate — 103 — 103 Residential — — — — Consumer — — — — During the six months ended June 30, 2018 troubled debt restructurings did not have an impact on the allowance for loan losses. During the six months ended June 30, 2017 troubled debt restructurings described above increased the allowance for loan losses by 24,000. At June 30, 2018 and 2017 and for three and six month periods then ended, there were no material defaults of any troubled debt restructurings that were modified in the last 12 months. The Company generally considers TDR’s that become 90 days or more past due under the modified terms as subsequently defaulted. | Note 4: Loans and Allowance for Loan Losses Categories of loans at December 31, include: 2017 2016 (In thousands) Commercial loans $ 81,327 $ 74,514 Commercial real estate 198,936 191,686 Residential real estate 75,853 76,154 Installment loans 12,473 14,367 Total gross loans 368,589 356,721 Less allowance for loan losses (2,122 ) (2,341 ) Total loans $ 366,467 $ 354,380 The risk characteristics of each loan portfolio segment are as follows: Commercial Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may include a personal guarantee. Short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial Real Estate Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The characteristics of properties securing the Company’s commercial real estate portfolio are diverse, but with geographic location almost entirely in the Company’s market area. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In general, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate versus nonowner-occupied loans. Residential and Consumer Residential and consumer loans consist of two segments - residential mortgage loans and personal loans. For residential mortgage loans that are secured by 1-4 family residences and are generally owner-occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer personal loans are secured by consumer personal assets, such as automobiles or recreational vehicles. Some consumer personal loans are unsecured, such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas, such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2017 and 2016: 2017 Commercial Commercial Residential Installment Unallocated Total (In thousands) Allowance for loan losses: Balance, beginning of year $ 495 $ 804 $ 591 $ 107 $ 344 $ 2,341 Provision charged to expense 39 118 (97 ) 296 (256 ) 100 Losses charged off (49 ) (81 ) (78 ) (230 ) –– (438 ) Recoveries 52 2 20 45 –– 119 Balance, end of year $ 537 $ 843 $ 436 $ 218 $ 88 $ 2,122 Ending balance: individually evaluated for impairment $ — $ 73 $ –– $ –– $ –– $ 73 Ending balance: collectively evaluated for impairment $ 537 $ 770 $ 436 $ 218 $ 88 $ 2,049 Loans: Ending balance: individually evaluated for impairment $ 83 $ 619 $ –– $ 306 $ –– $ 1,008 Ending balance: collectively evaluated for impairment $ 75,205 $ 195,108 $ 76,501 $ 12,567 $ –– $ 359,381 2016 Commercial Commercial Residential Installment Unallocated Total (In thousands) Allowance for loan losses: Balance, beginning of year $ 184 $ 597 $ 170 $ 113 $ 1,373 $ 2,437 Provision charged to expense 235 213 542 340 (1,029 ) 301 Losses charged off (2 ) (108 ) (143 ) (417 ) –– (670 ) Recoveries 78 102 22 71 –– 273 Balance, end of year $ 495 $ 804 $ 591 $ 107 $ 344 $ 2,341 Ending balance: individually evaluated for impairment $ 11 $ 108 $ –– $ –– $ –– $ 119 Ending balance: collectively evaluated for impairment $ 484 $ 696 $ 591 $ 107 $ 344 $ 2,222 Loans: Ending balance: individually evaluated for impairment $ 3,148 $ 1,178 $ –– $ 326 $ –– $ 4,652 Ending balance: collectively evaluated for impairment $ 71,366 $ 190,508 $ 76,154 $ 14,041 $ –– $ 352,069 To facilitate the monitoring of credit quality within the loan portfolio, and for purposes of analyzing historical loss rates used in the determination of the allowance for loan loss estimate, the Company utilizes the following categories of credit grades: pass, special mention, substandard, and doubtful. The four categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter. Pass ratings, which are assigned to those borrowers that do not have identified potential or well defined weaknesses and for which there is a high likelihood of orderly repayment, are updated periodically based on the size and credit characteristics of the borrower. All other categories are updated on at least a quarterly basis. The Company assigns a special mention rating to loans that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the loan or the Company’s credit position. The Company assigns a substandard rating to loans that are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. Substandard loans have well defined weaknesses or weaknesses that could jeopardize the orderly repayment of the debt. Loans and leases in this grade also are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies noted are not addressed and corrected. The Company assigns a doubtful rating to loans that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan or lease, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans. The following table shows the portfolio quality indicators as of December 31, 2017: Loan Class Commercial Commercial Residential Installment Total (In thousands) Pass Grade $ 78,652 $ 195,063 $ 75,853 $ 12,167 $ 361,735 Special Mention 20 3,066 –– –– 3,086 Substandard 2,655 807 –– 306 3,768 Doubtful –– –– –– –– –– $ 81,327 $ 198,936 $ 75,853 $ 12,473 $ 368,589 The following table shows the portfolio quality indicators as of December 31, 2016: Loan Class Commercial Commercial Residential Installment Total (In thousands) Pass Grade $ 71,302 $ 187,255 $ 76,154 $ 14,041 $ 348,752 Special Mention 64 3,253 –– –– 3,317 Substandard 3,148 1,178 –– 326 4,652 Doubtful –– –– –– –– –– $ 74,514 $ 191,686 $ 76,154 $ 14,367 $ 356,721 The Company evaluates the loan risk grading system definitions and allowance for loan losses methodology on an ongoing basis. No significant methodology changes were made during 2017 and 2016. The following table shows the loan portfolio aging analysis of the recorded investment in loans as of December 31, 2017: 30-59 Days 60-89 Days Greater Non Total Past Current Total Loans (In thousands) Commercial $ 56 $ — $ — $ 83 $ 139 $ 81,188 $ 81,327 Commercial real estate 262 — –– 500 762 198,174 198,936 Residential 559 306 — 760 1,625 74,228 75,853 Installment 61 40 –– 52 153 12,320 12,473 Total $ 938 $ 346 $ — $ 1,395 $ 2,679 $ 365,910 $ 368,589 The following table shows the loan portfolio aging analysis of the recorded investment in loans as of December 31, 2016: 30-59 Days 60-89 Days Greater Non Total Past Current Total Loans (In thousands) Commercial $ 153 $ 105 $ 75 $ 49 $ 382 $ 74,132 $ 74,514 Commercial real estate — 55 –– 335 390 191,296 191,686 Residential 805 135 161 922 2,023 74,131 76,154 Installment 213 8 –– 55 276 14,091 14,367 Total $ 1,171 $ 303 $ 236 $ 1,361 $ 3,071 $ 353,650 $ 356,721 A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. The following table presents impaired loans for the year ended December 31, 2017: Recorded Unpaid Specific Average Interest (In thousands) Loans without a specific valuation allowance: Commercial $ 83 $ 83 $ –– $ 90 $ 5 Commercial real estate 209 317 –– 635 13 Installment 306 306 –– 312 3 598 598 –– 1,037 21 Loans with a specific valuation allowance: Commercial $ — $ — $ — $ — $ 7 Commercial real estate 410 410 73 392 14 Installment — — — — — 410 410 73 392 21 Total: Commercial $ 83 $ 83 $ — $ 90 $ 12 Commercial Real Estate $ 619 $ 619 $ 73 $ 1,027 $ 27 Installment $ 306 $ 306 $ — $ 312 $ 3 The following table presents impaired loans for the year ended December 31, 2016: Recorded Unpaid Specific Average Interest (In thousands) Loans without a specific valuation allowance: Commercial $ 2,975 $ 2,975 $ –– $ 2,930 $ 142 Commercial real estate 658 766 –– 1,176 43 Installment 326 326 –– 328 13 3,959 4,067 –– 4,434 198 Loans with a specific valuation allowance: Commercial 173 173 11 188 8 Commercial real estate 520 520 108 586 26 Installment –– –– –– –– 2 693 693 119 774 36 Total: Commercial $ 3,148 $ 3,148 $ 11 $ 3,118 $ 150 Commercial Real Estate $ 1,178 $ 1,286 $ 108 $ 1,762 $ 69 Installment $ 326 $ 326 $ — $ 328 $ 15 At December 31, 2017 and 2016, the Company had certain loans that were modified in troubled debt restructurings and impaired. The modification of terms of such loans included one or a combination of the following: an extension of maturity, a reduction of the stated interest rate or a permanent reduction of the recorded investment in the loan. The following tables present information regarding troubled debt restructurings by class and by type of modification for the years ended December 31, 2017 and 2016: Year Ended December 31, 2017 Number of Pre-Modification Post-Modification (In thousands) Commercial 2 $ 40 $ 40 Commercial real estate 3 208 188 Year Ended December 31, 2017 Interest Term Combination Total (In thousands) Commercial $ –– $ 40 $ –– $ 40 Commercial real estate –– 188 –– 188 Year Ended December 31, 2016 Number of Pre-Modification Post-Modification (In thousands) Commercial 1 $ 17 $ 17 Commercial real estate 3 116 116 Year Ended December 31, 2016 Interest Term Combination Total (In thousands) Commercial $ –– $ 17 $ –– $ 17 Commercial real estate –– 116 –– 116 During the 2017 and 2016, troubled debt restructurings did not have an impact on the allowance for loan losses. At December 31, 2017 and 2016 and for the years then ended, there were no material defaults of any troubled debt restructurings that were modified in the last 12 months. The Company generally considers TDR’s that become 90 days or more past due under the modified terms as subsequently defaulted. |
Benefit Plans
Benefit Plans | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Benefit Plans [Abstract] | ||
Benefit Plans | Note 4: Benefit Plans Pension expense includes the following: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Service cost $ 76 $ 68 $ 152 $ 136 Interest cost 55 50 110 100 Expected return on assets (111 ) (90 ) (222 ) (180 ) Amortization of prior service cost and net loss (10 ) (6 ) (20 ) (12 ) Pension expense $ 10 $ 22 $ 20 $ 44 | Note 13: Benefit Plans Pension and Other Postretirement Benefit Plans The Company has a noncontributory defined benefit pension plan covering all employees who meet the eligibility requirements. The Company’s funding policy is to make the minimum annual contribution that is required by applicable regulations, plus such amounts as the Company may determine to be appropriate from time to time. The Company expects to contribute $421,000 to the plan in 2018. The Company uses a December 31st measurement date for the plan. Information about the plan’s funded status and pension cost follows: Pension Benefits 2017 2016 (In thousands) Change in benefit obligation Beginning of year $ (3,926 ) $ (3,968 ) Service cost (273 ) (312 ) Interest cost (198 ) (198 ) Actuarial (loss) gain (403 ) 23 Benefits paid 128 529 End of year (4,672 ) (3,926 ) Change in fair value of plan assets Beginning of year 4,625 4,458 Actual return on plan assets 702 382 Employer contribution 406 314 Benefits paid (128 ) (529 ) End of year 5,605 4,625 Funded status at end of year $ 933 $ 699 Amounts recognized in accumulated other comprehensive loss not yet recognized as components of net periodic benefit cost consist of: Pension Benefits 2017 2016 (In thousands) Unamortized net loss $ 1,048 $ 1,052 Unamortized prior service (758 ) (847 ) $ 290 $ 205 The estimated net loss and prior service credit for the defined benefit pension plan that will be amortized from accumulated other comprehensive income as a credit into net periodic benefit cost over the next fiscal year is approximately $41,000. The accumulated benefit obligation for the defined benefit pension plan was $4.4 million and $3.8 million at December 31, 2017 and 2016, respectively. Information for the pension plan with respect to accumulated benefit obligation and plan assets is as follows: December 31, 2017 2016 (In thousands) Projected benefit obligation $ 4,672 $ 3,926 Accumulated benefit obligation $ 4,375 $ 3,756 Fair value of plan assets $ 5,605 $ 4,625 December 31, 2017 2016 (In thousands) Components of net periodic benefit cost Service cost $ 273 $ 312 Interest cost 198 198 Expected return on plan assets (357 ) (341 ) Amortization of prior service (credit) cost (89 ) (89 ) Amortization of net loss 63 81 Net periodic benefit cost $ 88 $ 161 Significant assumptions include: Pension Benefits 2017 2016 Weighted-average assumptions used to determine benefit obligation: Discount rate 4.83 % 5.39 % Rate of compensation increase 3.00 % 3.00 % Weighted-average assumptions used to determine benefit cost: Discount rate 4.83 % 5.39 % Expected return on plan assets 7.50 % 7.50 % Rate of compensation increase 3.00 % 3.00 % The Company has estimated the long-term rate of return on plan assets based primarily on historical returns on plan assets, adjusted for changes in target portfolio allocations and recent changes in long-term interest rates based on publicly available information. The long-term rate of return did not change from 2016 to 2017. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as of December 31, 2017: Pension (In thousands) 2018 $ 186 2019 199 2020 843 2021 548 2022 373 2023-2027 1,796 Total $ 3,945 Plan assets are held by an outside trustee which invests the plan assets in accordance with the provisions of the plan agreement. All equity and fixed income investments are held in various mutual funds with quoted market prices. Mutual fund equity securities primarily include investment funds that are comprised of large-cap, mid-cap and international companies. Fixed income mutual funds primarily include investments in corporate bonds, mortgage-backed securities and U.S. Treasuries. Other types of investments include a prime money market fund. The asset allocation strategy of the plan is designed to allow flexibility in the determination of the appropriate investment allocations between equity and fixed income investments. This strategy is designed to help achieve the actuarial long term rate on plan assets of 7.5%. The target asset allocation percentages for both 2017 and 2016 are as follows: Large-Cap stocks Not to exceed 68% Small-Cap stocks Not to exceed 23% Mid-Cap stocks Not to exceed 23% International equity securities Not to exceed 30% Fixed income investments Not to exceed 35% Alternative investments Not to exceed 19% At December 31, 2017 and 2016, the fair value of plan assets as a percentage of the total was invested in the following: December 31, 2017 2016 Equity securities 70.1 % 68.1 % Debt securities 27.3 29.6 Cash and cash equivalents 2.6 2.3 100.0 % 100.0 % Pension Plan Assets Following is a description of the valuation methodologies used for pension plan assets measured at fair value on a recurring basis, as well as the general classification of pension plan assets pursuant to the valuation hierarchy. Where quoted market prices are available in an active market, plan assets are classified within Level 1 of the valuation hierarchy. Level 1 plan assets include investments in mutual funds that involve equity, bond and money market investments. All of the Plan’s assets are classified as Level 1. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of plan assets with similar characteristics or discounted cash flows. In certain cases where Level 1 or Level 2 inputs are not available, plan assets are classified within Level 3 of the hierarchy. At December 31, 2017 and 2016, the Plan did not contain Level 2 or Level 3 investments. The fair values of Company’s pension plan assets at December 31st, by asset category are as follows: December 31, 2017 Fair Value Measurements Using Asset Category Total Fair Value Quoted Prices Significant Significant (In thousands) Mutual money market $ 199 $ 199 $ –– $ –– Mutual funds – equities ETF mutual funds 3,042 3,042 –– –– Large and small Cap 301 301 –– –– International 420 420 Commodities 182 182 –– –– Mutual funds – fixed income Fixed income 1,145 1,145 –– –– ETF fixed income 316 316 –– –– Total $ 5,605 $ 5,605 $ –– $ –– December 31, 2016 Fair Value Measurements Using Asset Category Total Fair Value Quoted Prices Significant Significant (In thousands) Mutual money market $ 106 $ 106 $ –– $ –– Mutual funds – equities Eft mutual funds 2,561 2,561 –– –– Large and Small Cap 584 584 –– –– Commodies 140 140 –– –– Mutual funds – fixed income Fixed income 1,022 1,022 –– –– ETF fixed income 212 212 –– –– Total $ 4,625 $ 4,625 $ –– $ –– Employee Stock Ownership Plan The Company has an Employee Stock Ownership Plan (“ESOP”) with an integrated 401(k) plan covering substantially all employees of the Company. The ESOP acquired 354,551 shares of Company common stock at $9.64 per share in 2005 with funds provided by a loan from the Company. Accordingly, $3.4 million of common stock acquired by the ESOP was shown as a reduction of stockholders’ equity. Shares are released to participants proportionately as the loan is repaid. Dividends on allocated shares are recorded as dividends and charged to retained earnings. Compensation expense is recorded equal to the fair market value of the stock when contributions, which are determined annually by the Board of Directors of the Company, are made to the ESOP. The Company’s 401(k) matching percentage was 50% of the employees’ first 6% of contributions for 2017 and 2016. ESOP and 401(k) expense for the years ended December 31, 2017 and 2016 was approximately $280,000 and $231,000, respectively. Share information for the ESOP is as follows at December 31, 2017 and 2016: 2017 2016 Allocated shares at beginning of the year $ 333,790 $ 267,558 Shares released for allocation during the year 23,635 23,635 Net shares acquired on reinvestment of cash or (distributed) due to retirement/diversification (21,063 ) 42,597 Unearned shares 70,906 94,541 Total ESOP shares 407,268 428,331 Fair value of unearned shares at December 31st $ 943,000 $ 1,276,000 At December 31, 2017, the fair value of the 336,362 allocated shares held by the ESOP was approximately $4,474,000. Split Dollar Life Insurance Arrangements The Company has split-dollar life insurance arrangements with its executive officers and certain directors that provide certain death benefits to the executive’s beneficiaries upon his or her death. The agreements provide a pre- and post-retirement death benefit payable to the beneficiaries of the executive in the event of the executive’s death. The Company has purchased life insurance policies on the lives of all participants covered by these agreements in amounts sufficient to provide the sums necessary to pay the beneficiaries, and the Company pays all premiums due on the policies. In the case of an early separation from the Company, the nonvested executive portion of the death benefit is retained by the Company. The accumulated post retirement benefit obligation was $1.5 million at December 31, 2017 and $1.5 million at December 31, 2016. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Note 5: Premises and Equipment Major classifications of premises and equipment, stated at cost, are as follows: 2017 2016 (In thousands) Land, buildings and improvements $ 17,282 $ 17,025 Furniture and equipment 12,637 12,164 Computer software 2,143 2,116 32,062 31,305 Less accumulated depreciation (20,322 ) (19,421 ) Net premises and equipment $ 11,740 $ 11,884 |
Off-balance-sheet Activities
Off-balance-sheet Activities | 6 Months Ended |
Jun. 30, 2018 | |
Off Balance Sheet Activities [Abstract] | |
Off-balance-sheet Activities | Note 5: Off-balance-sheet Activities Some financial instruments, such as loan commitments, credit lines, letters of credit and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contracts are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. A summary of the notional or contractual amounts of financial instruments with off-balance-sheet risk at the indicated dates is as follows: June 30, December 31, 2018 2017 (In thousands) Commercial loans unused lines of credit $ 27,089 $ 25,814 Commitment to originate loans 15,909 15,350 Consumer open end lines of credit 37,971 36,938 Standby lines of credit 46 — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Accumulated Other Comprehensive Loss | Note 6: Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, included in stockholders’ equity, are as follows: June 30, 2018 December 31, 2017 (In thousands) Net unrealized loss on securities available-for-sale $ (405 ) $ (290 ) Net unrealized loss for unfunded status of defined benefit plan liability (242 ) (289 ) (647 ) (579 ) Tax effect 136 159 Net-of-tax amount $ (511 ) $ (420 ) | Note 10: Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, included in stockholders’ equity, are as follows: 2017 2016 (In thousands) Net unrealized loss on securities available-for-sale $ (290 ) $ (483 ) Net unrealized loss for funded status of defined benefit plan liability (289 ) (205 ) (579 ) (688 ) Tax effect 159 234 Net-of-tax amount $ (420 ) $ (454 ) |
Time Deposits
Time Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Time Deposits | Note 6: Time Deposits Time deposits in denominations of $250,000 or more were $5.1 million at December 31, 2017 and $1.4 million at December 31, 2016. At December 31, 2017, the scheduled maturities of time deposits are as follows: Due during the year ending December 31, (In thousands) 2018 $ 33,954 2019 14,364 2020 12,473 2021 2,176 2022 758 Thereafter 2,092 $ 65,817 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Measurements | Note 7: Fair Value Measurements The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company also utilizes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy. Available-for-sale Securities Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2018 and December 31, 2017: Fair Value Measurements Using Fair Value Quoted Prices Significant (Level 2) Significant (Level 3) (In thousands) June 30, 2018 U.S. government agencies $ 44,581 $ — $ 44,581 $ — State and political subdivisions 41,631 — 41,631 — December 31, 2017 U.S. government agencies $ 44,959 $ — $ 44,959 $ — Following is a description of the valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Impaired Loans (Collateral Dependent) Collateral dependent impaired loans consisted primarily of loans secured by nonresidential real estate. Management has determined fair value measurements on impaired loans primarily through evaluations of appraisals performed. Due to the nature of the valuation inputs, impaired loans are classified within Level 3 of the hierarchy. The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Company’s Chief Lender. Appraisals are reviewed for accuracy and consistency by the Company’s Chief Lender. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the Company’s Chief Lender by comparison to historical results. Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value (based on current appraised value) at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Management has determined fair value measurements on other real estate owned primarily through evaluations of appraisals performed, and current and past offers. Due to the nature of the valuation inputs, foreclosed assets held for sale are classified within Level 3 of the hierarchy. Appraisals of are obtained when the real estate is acquired and subsequently as deemed necessary by the Company’s Chief lender. Appraisals are reviewed for accuracy and consistency by the Company’s Chief Lender and are selected from the list of approved appraisers maintained by management. The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2018 and December 31, 2017. Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) June 30, 2018 Collateral dependent impaired loans $ 334 $ — $ — $ 334 Foreclosed assets held for sale 250 — — 250 December 31, 2017 Collateral dependent impaired loans $ 336 $ — $ — $ 336 Foreclosed assets held for sale 34 — — 34 Unobservable (Level 3) Inputs The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. Fair Value at Valuation Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 334 Market comparable properties Marketability discount 10% - 25% Foreclosed assets held for sale $ 250 Market comparable properties Selling costs 10% – 35% Fair Value at 12/31/17 Valuation Technique Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 336 Market comparable properties Marketability discount 10% - 25% Foreclosed assets held for sale $ 34 Market comparable properties Selling costs 10% – 35% There were no significant changes in the valuation techniques used during 2018 and 2017. The following table presents estimated fair values of the Company’s financial instruments. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate. Fair Value Measurements Using Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) June 30, 2018 Financial assets Cash and cash equivalents $ 16,308 $ 16,308 $ — $ — Loans, net of allowance 377,433 — — 373,437 Federal Home Loan Bank stock 4,164 — 4,164 — Accrued interest receivable 1,275 — 1,275 — Financial liabilities Deposits 415,634 — 354,553 — Short term borrowings 12,346 — 12,346 — Federal Home Loan Bank Advances 33,768 — 33,762 — Subordinated debentures 4,124 — 3,733 — Interest payable 122 122 — Fair Value Measurements Using Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) December 31, 2017 Financial assets Cash and cash equivalents $ 14,315 $ 14,315 $ — $ — Loans, net of allowance 366,467 — — 368,033 Federal Home Loan Bank stock 4,164 — 4,164 — Accrued interest receivable 993 — 993 — Financial liabilities Deposits 385,966 — 358,722 — Short term borrowings 11,085 — 11,085 — Federal Home Loan Bank Advances 10,022 — 10,012 — Subordinated debentures 4,124 — 3,590 — Interest payable 70 — 70 — The following methods and assumptions were used to estimate the fair value of each class of financial instruments. Cash and Cash Equivalents, Accrued Interest Receivable and Federal Home Loan Bank Stock The carrying amounts approximate fair value. Loans For June 30, 2018, fair values of loans and leases are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. This is not comparable with the fair values disclosed for December 31, 2017, which were based on an entrance price basis. For that date, fair values of variable rate loans and leases that reprice frequently and with no significant change in credit risk were based on carrying values. The fair values of other loans and leases as of that date were estimated using discounted cash flow analyses which used interest rates then being offered for loans and leases with similar terms to borrowers of similar credit quality. The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans with similar characteristics were aggregated for purposes of the calculations. Deposits Deposits include demand deposits, savings accounts, NOW accounts and certain money market deposits. The carrying amount approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. Interest Payable The carrying amount approximates fair value. Short-term Borrowings, Federal Home Loan Bank Advances and Subordinated Debentures Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt. Commitments to Originate Loans, Letters of Credit and Lines of Credit The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. Fair values of commitments were not material at June 30, 2018 and December 31, 2017. | Note 16: Disclosures about Fair Value of Financial Instruments and Other Assets and Liabilities The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company also utilizes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. Available-for-sale Securities Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2017 and 2016: December 31, 2017 Fair Quoted Prices in Significant Significant (In thousands) U.S government agencies $ 44,959 $ –– $ 44,959 $ –– December 31, 2016 Fair Quoted Prices in Significant Significant (In thousands) U.S government agencies $ 38,514 $ –– $ 38,514 $ –– State and political subdivisions 1,252 –– 1,252 –– Following is a description of the valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy. Impaired Loans (Collateral Dependent) Collateral dependent impaired loans consisted primarily of loans secured by nonresidential real estate. Management has determined fair value measurements on impaired loans primarily through evaluations of appraisals performed. Due to the nature of the valuation inputs, impaired loans are classified within Level 3 of the hierarchy. The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Company’s Chief Lender. Appraisals are reviewed for accuracy and consistency by the Company’s Chief Lender. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the Company’s Chief Lender by comparison to historical results. Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value (based on current appraised value) at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Management has determined fair value measurements on other real estate owned primarily through evaluations of appraisals performed, and current and past offers for the other real estate under evaluation. Due to the nature of the valuation inputs, foreclosed assets held for sale are classified within Level 3 of the hierarchy. Appraisals of other real estate owned (OREO) are obtained when the real estate is acquired and subsequently as deemed necessary by the Company’s Chief Lender. Appraisals are reviewed for accuracy and consistency by the Company’s Chief Lender and are selected from the list of approved appraisers maintained by management. The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2017 and 2016: December 31, 2017 Fair Quoted Prices in Significant Significant (In thousands) Collateral dependent impaired loans $ 336 $ –– $ –– $ 336 Foreclosed assets held for sale 34 –– –– 34 December 31, 2016 Fair Quoted Prices in Significant Significant (In thousands) Collateral dependent impaired loans $ 3,435 $ –– $ –– $ 3,435 Foreclosed assets held for sale 249 –– –– 249 Unobservable (Level 3) Inputs The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. Fair Value at Valuation Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 333 Market comparable properties Comparability adjustments Not available Foreclosed assets held for sale 34 Market comparable properties Marketability discount 10% – 35% Fair Value at Valuation Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 3,435 Market comparable properties Comparability adjustments Not available Foreclosed assets held for sale 249 Market comparable properties Marketability discount 10% – 35% There were no significant changes in the valuation techniques used during 2017. The following table presents estimated fair values of the Company’s financial instruments. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Fair value is the estimated amount at which financial assets or liabilities could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate. Fair Value Measurements Using Carrying Quoted Prices Significant Significant (In thousands) December 31, 2017 Financial assets Cash and cash equivalents $ 14,315 $ 14,315 $ –– $ –– Loans, net of allowance 366,467 –– –– 368,033 Federal Home Loan Bank stock 4,164 –– 4,164 –– Accrued interest receivable 993 –– 993 –– Financial liabilities Deposits 385,966 –– 358,722 –– Short term borrowings 11,085 –– 11,085 –– Federal Home Loan Bank advances 10,022 –– 10,012 –– Subordinated debentures 4,124 –– 3,590 –– Interest payable 70 –– 70 –– The classification of the assets and liabilities pursuant to the valuation hierarchy as of December 31, 2016 in the following table have not been audited. The fair value has been derived from the December 31, 2016 audited consolidated financial statements. Fair Value Measurements Using Carrying Quoted Prices Significant Significant (In thousands) December 31, 2016 Financial assets Cash and cash equivalents $ 11,541 $ 11,541 $ –– $ –– Loans, net of allowance 354,380 –– –– 355,753 Federal Home Loan Bank stock 4,164 –– 4,164 –– Accrued interest receivable 840 –– 840 –– Financial liabilities Deposits 338,803 –– 312,240 –– Short term borrowings 9,393 –– 9,393 –– Federal Home Loan Bank advances 39,855 –– 40,120 –– Subordinated debentures 4,124 –– 3,435 –– Interest payable 111 –– 111 –– The following methods and assumptions were used to estimate the fair value of each class of financial instruments. Cash and Cash Equivalents, Accrued Interest Receivable and Federal Home Loan Bank Stock The carrying amounts approximate fair value. Loans The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans with similar characteristics were aggregated for purposes of the calculations. Deposits Deposits include demand deposits, savings accounts, NOW accounts and certain money market deposits. The carrying amount approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. Interest Payable The carrying amount approximates fair value. Short-term Borrowings, Federal Home Loan Bank Advances and Subordinated Debentures Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt. Commitments to Originate Loans, Letters of Credit and Lines of Credit The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. Fair values of commitments were not material at December 31, 2017 and 2016. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 7: Borrowings At December 31, advances from the Federal Home Loan Bank were as follows: 2017 2016 (In thousands) Maturities March 2018 through August 2025, primarily at fixed rates ranging from 3.15% to 6.65%, averaging 5.15% $ 200 $ –– Cash Management advances maturities in March 2018 at floating rates averaging 1.52% 9,822 –– Cash Management advances maturities January 2017 through March 2017 at floating rates averaging 0.74% –– 19,500 Maturities January 2017 through August 2025, primarily at fixed rates ranging from 3.08% to 6.65%, averaging 3.93% –– 20,355 $ 10,022 $ 39,855 At December 31, 2017 required annual principal payments on Federal Home Loan Bank advances were as follows: For the year ending December 31, (In thousands) 2018 $ 9,919 2019 38 2020 15 2021 15 2022 15 Thereafter 20 $ 10,022 At December 31, 2017 and 2016, as a member of the Federal Home Loan Bank system the Bank had the ability to obtain up to $94.1 million and $60.8 million, respectively, in additional borrowings based on securities and certain loans pledged to the FHLB. At December 31, 2017 and 2016, the Bank had approximately $121.6 million and $122.6 million, respectively of one- to four-family residential real estate and commercial real estate loans pledged as collateral for borrowings. Also at December 31, 2017 and 2016, the Company and the Bank have cash management lines of credit with various correspondent banks (excluding FHLB cash management lines of credit) enabling additional borrowings of up to $15.0 million. Securities sold under repurchase agreements were approximately $11.0 million and $9.4 million at December 31, 2017 and 2016. Securities sold under agreements to repurchase are financing arrangements whereby the Company sells securities and agrees to repurchase the identical securities at the maturities of the agreements at specified prices. Physical control is maintained for all securities sold under repurchase agreements. Information concerning securities sold under agreements to repurchase is summarized as follows: 2017 2016 (Dollars in thousands) Balance outstanding at year end $ 10,022 $ 9,393 Average daily balance during the year $ 13,578 $ 11,058 Average interest rate during the year 0.28 % 0.12 % Maximum month-end balance during the year $ 17,033 $ 14,200 Weighted-average interest rate at year end 0.28 % 0.12 % All repurchase agreements are subject to term and conditions of repurchase/security agreements between the Company and the customer and are accounted for as secured borrowings. The Company’s repurchase agreements reflected in short-term borrowings consist of customer accounts and securities which are pledged on an individual security basis. The following table presents the Company’s repurchase agreements accounted for as secured borrowings: Remaining Contractual Maturity of the Agreement (In thousands) December 31, 2017 Overnight and Up to 30 Days 30-90 Days Greater than 90 Total Repurchase Agreements U.S government agencies $ 10,022 $ –– $ –– $ –– $ 10,022 Total $ 10,022 $ –– $ –– $ –– $ 10,022 (In thousands) December 31, 2016 Overnight and Up to 30 Days 30-90 Days Greater than 90 Total Repurchase Agreements U.S. government agencies $ 9,393 –– –– –– 9,393 Total $ 9,393 $ –– $ –– $ –– $ 9,393 Securities with an approximate carrying value of $18.4 million and $13.0 million at December 31, 2017 and 2016, respectively, were pledged as collateral for repurchase borrowings. |
Repurchase Agreements
Repurchase Agreements | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Repurchase Agreements [Abstract] | |
Disclosure of Repurchase Agreements | Note 8: Repurchase Agreements Securities sold under agreements to repurchase (“repurchase agreements”) with customers represent funds deposited by customers, generally on an overnight basis that are collateralized by investment securities owned by the Company. At June 30, 2018 and December 31, 2017, repurchase agreement borrowings totaled $12,346,000 and $11,085,000, respectively and are included in short-term borrowings on the consolidated condensed balance sheets. All repurchase agreements are subject to term and conditions of repurchase/security agreements between the Company and the customer and are accounted for as secured borrowings. The Company’s repurchase agreements reflected in short-term borrowings, consist of customer accounts and securities which are pledged on an individual security basis. The following table presents the Company’s repurchase agreements accounted for as secured borrowings: Remaining Contractual Maturity of the Agreement (In thousands) June 30, 2018 Overnight and Continuous Up to 30 Days 30-90 Days Greater than 90 Days Total Repurchase Agreements U.S. government agencies $ 12,346 $ — $ — $ — $ 12,346 Total $ 12,346 $ — $ — $ — $ 12,346 December 31, 2017 Overnight and Continuous Up to 30 Days 30-90 Days Greater than 90 Days Total Repurchase Agreements U.S. government agencies $ 11,085 $ — $ — $ — $ 11,085 Total $ 11,085 $ — $ — $ — $ 11,085 These borrowings were collateralized with U.S. government and agency securities with a carrying value of $18.2 million at June 30, 2018 and $18.4 million at December 31, 2017. Declines in the fair value would require the Company to pledge additional securities. |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2017 | |
Brokers and Dealers [Abstract] | |
Subordinated Debentures | Note 8: Subordinated Debentures In 2005, a Delaware statutory business trust owned by the Company, United Bancorp Statutory Trust I (“Trust I” or the “Trust”), issued $4.1 million of mandatorily redeemable debt securities. The sale proceeds were utilized to purchase $4.1 million of the Company’s subordinated debentures which mature in 2035. The Company’s subordinated debentures are the sole asset of Trust I. The Company’s investment in Trust I is not consolidated herein as the Company is not deemed the primary beneficiary of the Trust. However, the $4.1 million of mandatorily redeemable debt securities issued by the Trust are includible for regulatory purposes as a component of the Company’s Tier I Capital. Interest on the Company’s subordinated debentures is equal to three month LIBOR plus 1.35% and is payable quarterly. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9: Income Taxes The provision for income taxes includes these components: 2017 2016 (In thousands) Taxes currently payable $ 1,499 $ 1,498 Deferred income taxes 545 82 Income tax expense $ 2,044 $ 1,580 A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below: 2017 2016 (In thousands) Computed at the statutory rate (34%) $ 1,901 $ 1,755 (Decrease) increase resulting from Tax exempt interest (17 ) (42 ) Earnings on bank-owned life insurance - net (160 ) (160 ) Deferred tax re-valuation 216 — Other 104 27 Actual tax expense $ 2,044 $ 1,580 The tax effects of temporary differences related to deferred taxes shown on the balance sheets were: 2017 2016 (In thousands) Deferred tax assets Allowance for loan losses $ 244 $ 382 Stock based compensation 221 375 Allowance for losses on foreclosed real estate 31 82 Deferred compensation and ESOP 422 690 Intangible assets 65 124 Non-accrual loan interest 52 79 Unrealized losses on securities available for sale 61 164 Total deferred tax assets 1,096 1,896 Deferred tax liabilities Depreciation (144 ) (199 ) Deferred loan costs, net (86 ) (158 ) Accretion — (1 ) FHLB stock dividends (315 ) (510 ) Mortgage servicing rights (9 ) (16 ) Employee benefit expense (193 ) (162 ) Total deferred tax liabilities (747 ) (1,046 ) Net deferred tax asset $ 349 $ 850 |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | Note 11: Regulatory Matters The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory–and possibly additional discretionary–actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Company and the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements. In July 2013, the Federal Reserve approved final rules, referred to herein as the Basel III Rules, establishing a new comprehensive capital framework for U.S. banking organizations. The Basel III Rules generally implement the Basel Committee on Banking Supervision’s December 2010 final capital framework referred to as “Basel III” for strengthening international capital standards. The Basel III Rules substantially revise the risk-based capital requirements applicable to bank holding companies and their depository institution subsidiaries, including the Company and Citizens, as compared to the current U.S. general risk-based capital rules. The Basel III Rules revise the definitions and the components of regulatory capital, as well as address other issues affecting the computation of regulatory capital ratios. The Basel III rules added another capital ratio component “Tier 1 Common Capital Ratio” which is a measurement of a bank’s core equity capital compared with its total risk-weighted assets The Basel III Rules also prescribe a new standardized approach for risk weightings that expand the risk-weighting categories from the current categories to a larger more risk-sensitive number of categories, depending on the nature of the assets, generally ranging from 0% for U.S. government and agency securities, to 600% for certain equity exposures, and resulting in higher risk weights for a variety of asset classes. The Basel III capital rules became effective for the Company and Unified on January 1, 2015, subject to phase-in periods for certain components. The Company’s management believes that the Company and Citizens will be able to meet targeted capital ratios upon implementation of the revised requirements as finalized. The minimum capital requirements exclude the capital conservation buffer required to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. The capital conservation buffer was 1.250% at December 31, 2017. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital. As of December 31, 2017, the Company exceeded its minimum regulatory capital requirements with a total risk-based capital ratio of 13.2%, common equity tier 1 ratio of 11.5%, Tier 1 risk-based capital ratio of 12.6% and a Tier 1 leverage ratio of 10.6%. As of December 31, 2017, the most recent notification from Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, the Bank must maintain capital ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Company’s and Bank’s actual capital amounts and ratios are presented in the following table. Actual For Capital Adequacy To Be Well Capitalized Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2017 Total Capital Consolidated $ 49,590 13.2 % $ 30,149 8.0 % N/A N/A Unified 44,637 11.9 30,026 8.0 $ 37,532 10.0 % Common Equity Tier 1 Capital Consolidated $ 43,468 11.5 % $ 16,959 4.5 % N/A N/A Unified 42,515 11.3 16,889 4.5 $ 24,396 6.5 % Tier I Capital Consolidated $ 47,468 12.6 % $ 22,612 6.0 % N/A N/A Unified 42,515 11.3 22,519 6.0 $ 30,026 8.0 % Tier I Capital Consolidated $ 47,468 10.6 % $ 17,904 4.0 % N/A N/A Unified 42,515 9.4 18,017 4.0 $ 22,521 5.0 % As of December 31, 2016 Total Capital Consolidated $ 48,429 13.6 % $ 28,516 8.0 % N/A N/A Unified 41,801 11.8 28,382 8.0 $ 35,478 10.0 % Common Equity Tier 1 Capital Consolidated $ 42,088 11.8 % $ 16,040 4.5 % N/A N/A Unified 39,460 11.1 15,965 4.5 $ 23,061 6.5 % Tier I Capital Consolidated $ 46,088 12.9 % $ 21,387 6.0 % N/A N/A Unified 39,460 11.1 21,287 6.0 $ 28,382 8.0 % Tier I Capital Consolidated $ 46,088 11.0 % $ 16,729 4.0 % N/A N/A Unified 39,460 9.3 17,048 4.0 $ 21,310 5.0 % |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 12: Related Party Transactions At December 31, 2017 and 2016, the Bank had loan commitments outstanding to executive officers, directors, significant stockholders and their affiliates (related parties). In management’s opinion, such loans and other extensions of credit and deposits were made in the ordinary course of business and were made on substantially the same terms (including interest rates and collateral) as those prevailing at the time for comparable transactions with other persons. Further, in management’s opinion, these loans did not involve more than normal risk of collectibility or present other unfavorable features. Such loans are summarized below. 2017 2016 (In thousands) Aggregate balance – January 1 $ 13,635 $ 10,546 New loans 189 4,864 Repayments (828 ) (1,775 ) Aggregate balance – December 31 $ 12,996 $ 13,635 Deposits from related parties held by the Bank at December 31, 2017 and 2016, totaled approximately $691,000 and $1.4 million, respectively. |
Restricted Stock Plan
Restricted Stock Plan | 12 Months Ended |
Dec. 31, 2017 | |
Stock Option And Restricted Stock Plans [Abstract] | |
Stock Option and Restricted Stock Plans | Note 14: Restricted Stock Plan During 2008, the Company’s stockholders authorized the adoption of the United Bancorp, Inc. 2008 Stock Incentive Plan (the “2008 Plan”). No more than 500,000 shares of the Company’s common stock may be issued under the 2008 Plan. The shares that may be issued can be authorized but unissued shares or treasury shares. The 2008 Plan permits the grant of incentive awards in the form of options, stock appreciation rights, restricted share and share unit awards, and performance share awards. The 2008 Plan contains annual limits on certain types of awards to individual participants. In any calendar year, no participant may be granted awards covering more than 25,000 shares. The Company believes that such awards better align the interests of its employees with those of its stockholders. Stock options are generally granted with an exercise price, and restricted stock awards are valued, equal to the market price of the Company’s stock at the date of grant; stock option awards generally vest within 9.25 years of continuous service and have a 9.5 year contractual term. Restricted stock awards generally vest over a 9.5 year contractual term, or over the period to retirement, whichever is shorter. Restricted stock awards have no post-vesting restrictions. Restricted stock awards provide for accelerated vesting if there is a change in control (as defined in the Plans). A summary of the status of the Company’s nonvested restricted shares as of December 31, 2017, and changes during the year then ended, is presented below: Shares Weighted- Nonvested, beginning of year 170,000 $ 8.75 Granted 10,000 11.99 Vested (5,000 ) 8.40 Forfeited — — Nonvested, end of year 175,000 $ 8.95 Total compensation cost recognized in the income statement for share-based payment arrangements during the years ended December 31, 2017 and 2016 was $163,000 and $147,000, respectively. The recognized tax benefits related thereto were $55,000 and $50,000, for the years ended December 31, 2017 and 2016, respectively. As of December 31, 2017 and 2016, there was $728,000 and $660,000, respectively, of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted-average period of 3.7 years. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 15: Earnings Per Share Earnings per share (EPS) were computed as follows: Year Ended December 31, 2017 Net Weighted- Per Share (In thousands) Net income $ 3,546 Dividends on non-vested restricted stock (31 ) Net income allocated to stockholders 3,515 Basic earnings per share Income available to common stockholders –– 4,861,942 $ 0.72 Effect of dilutive securities Restricted stock awards –– 123,857 Diluted earnings per share Income available to common stockholders and assumed conversions $ 3,515 4,985,799 $ 0.71 Year Ended December 31, 2016 Net Weighted-Average Per Share (In thousands) Net income $ 3,580 Dividends on non-vested restricted stock (31 ) Net income allocated to stockholders 3,549 Basic earnings per share Income available to common stockholders –– 4,907,799 $ 0.72 Effect of dilutive securities Restricted stock awards –– 108,521 Diluted earnings per share Income available to common stockholders and assumed conversions $ 3,549 5,016,320 $ 0.71 |
Disclosures about Fair Value of
Disclosures about Fair Value of Financial Instruments and Other Assets and Liabilities | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Measurements | Note 7: Fair Value Measurements The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company also utilizes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy. Available-for-sale Securities Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2018 and December 31, 2017: Fair Value Measurements Using Fair Value Quoted Prices Significant (Level 2) Significant (Level 3) (In thousands) June 30, 2018 U.S. government agencies $ 44,581 $ — $ 44,581 $ — State and political subdivisions 41,631 — 41,631 — December 31, 2017 U.S. government agencies $ 44,959 $ — $ 44,959 $ — Following is a description of the valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Impaired Loans (Collateral Dependent) Collateral dependent impaired loans consisted primarily of loans secured by nonresidential real estate. Management has determined fair value measurements on impaired loans primarily through evaluations of appraisals performed. Due to the nature of the valuation inputs, impaired loans are classified within Level 3 of the hierarchy. The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Company’s Chief Lender. Appraisals are reviewed for accuracy and consistency by the Company’s Chief Lender. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the Company’s Chief Lender by comparison to historical results. Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value (based on current appraised value) at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Management has determined fair value measurements on other real estate owned primarily through evaluations of appraisals performed, and current and past offers. Due to the nature of the valuation inputs, foreclosed assets held for sale are classified within Level 3 of the hierarchy. Appraisals of are obtained when the real estate is acquired and subsequently as deemed necessary by the Company’s Chief lender. Appraisals are reviewed for accuracy and consistency by the Company’s Chief Lender and are selected from the list of approved appraisers maintained by management. The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2018 and December 31, 2017. Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) June 30, 2018 Collateral dependent impaired loans $ 334 $ — $ — $ 334 Foreclosed assets held for sale 250 — — 250 December 31, 2017 Collateral dependent impaired loans $ 336 $ — $ — $ 336 Foreclosed assets held for sale 34 — — 34 Unobservable (Level 3) Inputs The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. Fair Value at Valuation Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 334 Market comparable properties Marketability discount 10% - 25% Foreclosed assets held for sale $ 250 Market comparable properties Selling costs 10% – 35% Fair Value at 12/31/17 Valuation Technique Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 336 Market comparable properties Marketability discount 10% - 25% Foreclosed assets held for sale $ 34 Market comparable properties Selling costs 10% – 35% There were no significant changes in the valuation techniques used during 2018 and 2017. The following table presents estimated fair values of the Company’s financial instruments. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate. Fair Value Measurements Using Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) June 30, 2018 Financial assets Cash and cash equivalents $ 16,308 $ 16,308 $ — $ — Loans, net of allowance 377,433 — — 373,437 Federal Home Loan Bank stock 4,164 — 4,164 — Accrued interest receivable 1,275 — 1,275 — Financial liabilities Deposits 415,634 — 354,553 — Short term borrowings 12,346 — 12,346 — Federal Home Loan Bank Advances 33,768 — 33,762 — Subordinated debentures 4,124 — 3,733 — Interest payable 122 122 — Fair Value Measurements Using Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) December 31, 2017 Financial assets Cash and cash equivalents $ 14,315 $ 14,315 $ — $ — Loans, net of allowance 366,467 — — 368,033 Federal Home Loan Bank stock 4,164 — 4,164 — Accrued interest receivable 993 — 993 — Financial liabilities Deposits 385,966 — 358,722 — Short term borrowings 11,085 — 11,085 — Federal Home Loan Bank Advances 10,022 — 10,012 — Subordinated debentures 4,124 — 3,590 — Interest payable 70 — 70 — The following methods and assumptions were used to estimate the fair value of each class of financial instruments. Cash and Cash Equivalents, Accrued Interest Receivable and Federal Home Loan Bank Stock The carrying amounts approximate fair value. Loans For June 30, 2018, fair values of loans and leases are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. This is not comparable with the fair values disclosed for December 31, 2017, which were based on an entrance price basis. For that date, fair values of variable rate loans and leases that reprice frequently and with no significant change in credit risk were based on carrying values. The fair values of other loans and leases as of that date were estimated using discounted cash flow analyses which used interest rates then being offered for loans and leases with similar terms to borrowers of similar credit quality. The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans with similar characteristics were aggregated for purposes of the calculations. Deposits Deposits include demand deposits, savings accounts, NOW accounts and certain money market deposits. The carrying amount approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. Interest Payable The carrying amount approximates fair value. Short-term Borrowings, Federal Home Loan Bank Advances and Subordinated Debentures Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt. Commitments to Originate Loans, Letters of Credit and Lines of Credit The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. Fair values of commitments were not material at June 30, 2018 and December 31, 2017. | Note 16: Disclosures about Fair Value of Financial Instruments and Other Assets and Liabilities The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company also utilizes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. Available-for-sale Securities Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2017 and 2016: December 31, 2017 Fair Quoted Prices in Significant Significant (In thousands) U.S government agencies $ 44,959 $ –– $ 44,959 $ –– December 31, 2016 Fair Quoted Prices in Significant Significant (In thousands) U.S government agencies $ 38,514 $ –– $ 38,514 $ –– State and political subdivisions 1,252 –– 1,252 –– Following is a description of the valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy. Impaired Loans (Collateral Dependent) Collateral dependent impaired loans consisted primarily of loans secured by nonresidential real estate. Management has determined fair value measurements on impaired loans primarily through evaluations of appraisals performed. Due to the nature of the valuation inputs, impaired loans are classified within Level 3 of the hierarchy. The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Company’s Chief Lender. Appraisals are reviewed for accuracy and consistency by the Company’s Chief Lender. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the Company’s Chief Lender by comparison to historical results. Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value (based on current appraised value) at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Management has determined fair value measurements on other real estate owned primarily through evaluations of appraisals performed, and current and past offers for the other real estate under evaluation. Due to the nature of the valuation inputs, foreclosed assets held for sale are classified within Level 3 of the hierarchy. Appraisals of other real estate owned (OREO) are obtained when the real estate is acquired and subsequently as deemed necessary by the Company’s Chief Lender. Appraisals are reviewed for accuracy and consistency by the Company’s Chief Lender and are selected from the list of approved appraisers maintained by management. The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2017 and 2016: December 31, 2017 Fair Quoted Prices in Significant Significant (In thousands) Collateral dependent impaired loans $ 336 $ –– $ –– $ 336 Foreclosed assets held for sale 34 –– –– 34 December 31, 2016 Fair Quoted Prices in Significant Significant (In thousands) Collateral dependent impaired loans $ 3,435 $ –– $ –– $ 3,435 Foreclosed assets held for sale 249 –– –– 249 Unobservable (Level 3) Inputs The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. Fair Value at Valuation Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 333 Market comparable properties Comparability adjustments Not available Foreclosed assets held for sale 34 Market comparable properties Marketability discount 10% – 35% Fair Value at Valuation Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 3,435 Market comparable properties Comparability adjustments Not available Foreclosed assets held for sale 249 Market comparable properties Marketability discount 10% – 35% There were no significant changes in the valuation techniques used during 2017. The following table presents estimated fair values of the Company’s financial instruments. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Fair value is the estimated amount at which financial assets or liabilities could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate. Fair Value Measurements Using Carrying Quoted Prices Significant Significant (In thousands) December 31, 2017 Financial assets Cash and cash equivalents $ 14,315 $ 14,315 $ –– $ –– Loans, net of allowance 366,467 –– –– 368,033 Federal Home Loan Bank stock 4,164 –– 4,164 –– Accrued interest receivable 993 –– 993 –– Financial liabilities Deposits 385,966 –– 358,722 –– Short term borrowings 11,085 –– 11,085 –– Federal Home Loan Bank advances 10,022 –– 10,012 –– Subordinated debentures 4,124 –– 3,590 –– Interest payable 70 –– 70 –– The classification of the assets and liabilities pursuant to the valuation hierarchy as of December 31, 2016 in the following table have not been audited. The fair value has been derived from the December 31, 2016 audited consolidated financial statements. Fair Value Measurements Using Carrying Quoted Prices Significant Significant (In thousands) December 31, 2016 Financial assets Cash and cash equivalents $ 11,541 $ 11,541 $ –– $ –– Loans, net of allowance 354,380 –– –– 355,753 Federal Home Loan Bank stock 4,164 –– 4,164 –– Accrued interest receivable 840 –– 840 –– Financial liabilities Deposits 338,803 –– 312,240 –– Short term borrowings 9,393 –– 9,393 –– Federal Home Loan Bank advances 39,855 –– 40,120 –– Subordinated debentures 4,124 –– 3,435 –– Interest payable 111 –– 111 –– The following methods and assumptions were used to estimate the fair value of each class of financial instruments. Cash and Cash Equivalents, Accrued Interest Receivable and Federal Home Loan Bank Stock The carrying amounts approximate fair value. Loans The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans with similar characteristics were aggregated for purposes of the calculations. Deposits Deposits include demand deposits, savings accounts, NOW accounts and certain money market deposits. The carrying amount approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. Interest Payable The carrying amount approximates fair value. Short-term Borrowings, Federal Home Loan Bank Advances and Subordinated Debentures Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt. Commitments to Originate Loans, Letters of Credit and Lines of Credit The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. Fair values of commitments were not material at December 31, 2017 and 2016. |
Significant Estimates and Conce
Significant Estimates and Concentrations | 12 Months Ended |
Dec. 31, 2017 | |
Significant Estimates And Concentrations [Abstract] | |
Significant Estimates and Concentrations | Note 17: Significant Estimates and Concentrations Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for loan losses are reflected in the footnote regarding loans. Current vulnerabilities due to certain concentrations of credit risk are discussed in the footnote on commitments and credit risk. |
Commitments and Credit Risk
Commitments and Credit Risk | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Credit Risk | Note 18: Commitments and Credit Risk At December 31, 2017 and 2016, total commercial and commercial real estate loans made up Included in cash and due from banks as of December 31, 2017 and 2016, is $9.5 million and $7.3 million, respectively, of deposits with the Federal Reserve Bank of Cleveland. Commitments to Originate Loans Commitments to originate loans are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since a portion of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. At December 31, 2017 and 2016, the Company had outstanding commitments to originate variable rate loans aggregating approximately $15.4 million and $12.3 million, respectively. The commitments extended over varying periods of time with the majority being disbursed within a one-year period. Mortgage loans in the process of origination represent amounts that the Company plans to fund within a normal period of 60 to 90 days, some of which are intended for sale to investors in the secondary market. The Company did not have any mortgage loans in the process of origination which are intended for sale at December 31, 2017 or 2016. Standby Letters of Credit Standby letters of credit are irrevocable conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Financial standby letters of credit are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. Performance standby letters of credit are issued to guarantee performance of certain customers under non-financial contractual obligations. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. Fees for letters of credit are initially recorded by the Company as deferred revenue and are included in earnings at the termination of the respective agreements. Should the Company be obligated to perform under the standby letters of credit, the Company may seek recourse from the customer for reimbursement of amounts paid. The Company did not have any total outstanding standby letters of credit at December 31, 2017 and 2016. At both December 31, 2017 and 2016, the Company had no deferred revenue under standby letter of credit agreements. Lines of Credit and Other Lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Lines of credit generally have fixed expiration dates. Since a portion of the line may expire without being drawn upon, the total unused lines do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for on-balance-sheet instruments. At December 31, 2017, the Company had granted unused lines of credit to borrowers aggregating approximately $25.8 million and $36.9 million for commercial lines and open-end consumer lines, respectively. At December 31, 2016, the Company had granted unused lines of credit to borrowers aggregating approximately $20.9 million and $35.6 million for commercial lines and open-end consumer lines, respectively. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 19: Recent Accounting Pronouncements ASU No. 2018-02 was issued in February 2018 to provide guidance to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Act and will improve usefulness of information reported to financial statement users. The amendments in this ASU will also require certain disclosures about stranded tax effects and is effective for fiscal years beginning after December 31, 2018. The impact of this guidance is not material to the Company’s financial statements. ASU No. 2017-09 was issued in May 2017 and provides guidance about which changes to the terms or condition of a share-based payment award require and entity to apply modification accounting in Topic 718. The amendments in this Update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company has adopted ASU 2017-09 on January 1, 2018 and it did not have a significant impact on its accounting and disclosures. ASU No. 2017-07 was issued in March 2017 and applies to all employers that offer to their employees defined benefit pension plans, other postretirement benefit plans, or other types of benefits accounted for under Topic 715. The amendments in this update require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost, as defined, are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The amendments in ASU No. 2017-07 are effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The amendments in this update are to be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement. The Company has adopted ASU 2017-07 on January 1, 2018 and it did not have a significant impact on its accounting and disclosures. In August 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-15 "Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments.” For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses on PCD assets are recognized through the statement of income as a credit loss expense. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact of these amendments to the Company’s financial position and results of operations and currently does not know or cannot reasonably quantify the impact of the adoption of the amendments as a result of the complexity and extensive changes from the amendments. The Allowance for Loan Losses (ALL) estimate is material to the Company and given the change from an incurred loss model to a methodology that considers the credit loss over the life of the loan, there is the potential for an increase in the ALL at adoption date. The Company is anticipating a significant change in the processes and procedures to calculate the ALL, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. In addition, the current accounting policy and procedures for the other-than-temporary impairment on available-for-sale securities will be replaced with an allowance approach. The Company continues to work with an outside vendor to begin developing and implementing processes during the next two years to ensure it is fully compliant with the amendments at adoption date. For additional information on the allowance for loan losses, see Note 4. ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ASU No. 2016-01 was issued in January 2016 and applies to all entities that hold financial assets or owe financial liabilities. ASU 2016-01 is intended to improve the recognition and measurement of financial instruments by requiring equity investments to be measured at fair value with changes in fair value recognized in net income; requiring public entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured and amortized at cost on the balance sheet; and requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instruments specific credit risk when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. ASU 2016-01 is effective for annual periods and interim periods within those periods, beginning after December 15, 2017. The amendments should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity instruments that exist as of the date of adoption. The Company is currently evaluating the impact of these amendments, but does not expect them to have a material effect on the Company’s financial position or results of operations since it does not have any equity securities or a valuation allowance. However, the amendments will have an impact on certain items that are disclosed at fair value that are not currently utilizing the exit price notion when measuring fair value. The Company has adopted ASU 2016-01 on January 1, 2018 and it did not have a material effect on its fair value disclosures and other disclosure requirements. For additional information on fair value of assets and liabilities, see Note 16. In May 2014, the FASB issued ASU No. 2014-09 “ Revenue from Contracts with Customers (Topic 606) On February 25, 2016, the FASB issued ASU 2016-02 “ Leases (Topic 842). Under the current accounting model, an organization applies a classification test to determine the accounting for the lease arrangement: (a) Some leases are classified as capital where by the lessee would recognize lease assets and liabilities on the balance sheet. (b) Other leases are classified as operating leases whereby the lessee would not recognize lease assets and liabilities on the balance sheet. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with Generally Accepted Accounting Principles (GAAP), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet—the new ASU will require both types of leases to be recognized on the balance sheet. For public companies, the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Thus, for a calendar year company, it would be effective January 1, 2019. The impact is not expected to have a material effect on the Company’s financial position or results of operations since the Company does not have a material amount of lease agreements. |
Condensed Financial Information
Condensed Financial Information (Parent Company Only) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information (Parent Company Only) | Note 20: Condensed Financial Information (Parent Company Only) Presented below is condensed financial information as to financial position, results of operations and cash flows of the Company: Condensed Balance Sheets December 31, 2017 2016 (In thousands) Assets Cash and cash equivalents $ 2,771 $ 4,644 Investment in the Bank 42,286 39,141 Corporate owned life insurance — 7 Other assets 3,042 2,973 Total assets $ 48,099 $ 46,765 Liabilities and Stockholders’ Equity Subordinated debentures $ 4,124 $ 4,124 Other liabilities 80 — Stockholders’ equity 43,895 42,641 Total liabilities and stockholders’ equity $ 48,099 $ 46,765 Condensed Statements of Income and Comprehensive Income Years Ended December 31, 2017 2016 (In thousands) Operating Income Dividends from subsidiary $ 2,035 $ 4,701 Interest and dividend income from securities and federal funds 1 7 Total operating income 2,036 4,708 General, Administrative and Other Expenses 1,961 1,651 Income Before Income Taxes and Equity in Undistributed Income of Subsidiary 75 3,057 Income Tax Benefits 416 484 Income Before Equity in Undistributed Income of Subsidiary 491 3,541 Equity in Undistributed Income of Subsidiary 3,055 39 Net Income $ 3,546 $ 3,580 Comprehensive Income $ 3,578 $ 3,307 Condensed Statements of Cash Flows Years Ended December 31, 2017 2016 (In thousands) Operating Activities Net income $ 3,546 $ 3,580 Items not requiring (providing) cash Equity in undistributed income of subsidiary (3,055 ) (39 ) Amortization of ESOP and share-based compensation plans 443 378 Net change in other assets and other liabilities (38 ) (190 ) Net cash provided by operating activities 896 3,729 Financing Activities Dividends paid to stockholders (2,769 ) (2,540 ) Net cash used in financing activities (2,769 ) (2,540 ) Net Change in Cash and Cash Equivalents (1,873 ) 1,189 Cash and Cash Equivalents at Beginning of Year 4,644 3,455 Cash and Cash Equivalents at End of Year $ 2,771 $ 4,644 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Note 21: Quarterly Financial Data (Unaudited) The following tables summarize the Company’s quarterly results of operations for the years ended December 31, 2017 and 2016. Three Months Ended 2017: March 31, June 30, September 30, December 31, (In thousands, except per share data) Total interest income $ 4,184 $ 4,290 $ 4,586 $ 4,591 Total interest expense 438 438 449 439 Net interest income 3,746 3,852 4,137 4,152 Provision for loan losses 25 25 25 25 Other income 832 869 892 859 General, administrative and other expense 3,334 3,365 3,456 3,494 Income before income taxes 1,219 1,331 1,548 1,492 Federal income taxes 369 415 548 712 Net income $ 850 $ 916 $ 1,000 $ 780 Earnings per share Basic $ 0.17 $ 0.18 $ 0.20 $ 0.17 Diluted $ 0.17 $ 0.18 $ 0.20 $ 0.16 Three Months Ended 2016: March 31, June 30, September 30, December 31, (In thousands, except per share data) Total interest income $ 4,038 $ 4,187 $ 4,166 $ 4,244 Total interest expense 475 437 432 440 Net interest income 3,563 3,750 3,734 3,804 Provision (credit) for loan losses 71 105 131 (6 ) Other income 867 902 1,056 856 General, administrative and other expense 3,141 3,251 3,345 3,333 Income before income taxes 1,218 1,296 1,314 1,333 Federal income taxes 373 389 386 432 Net income $ 845 $ 907 $ 928 $ 901 Earnings per share Basic $ 0.18 $ 0.18 $ 0.18 $ 0.18 Diluted $ 0.17 $ 0.18 $ 0.18 $ 0.18 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of United Bancorp, Inc. (“United” or “the Company”) and its wholly-owned subsidiary, Unified Bank of Martins Ferry, Ohio (“the Bank”). All intercompany transactions and balances have been eliminated in consolidation. | Principles of Consolidation The consolidated financial statements include the accounts of United Bancorp, Inc. (“United” or “the Company”) and its wholly-owned subsidiary, Unified Bank of Martins Ferry, Ohio (“the Bank” or “Unified”). All intercompany transactions and balances have been eliminated in consolidation. |
Nature of Operations | Nature of Operations The Company’s revenues, operating income and assets are almost exclusively derived from banking. Accordingly, all of the Company’s banking operations are considered by management to be aggregated in one reportable operating segment. Customers are mainly located in Athens, Belmont, Carroll, Fairfield, Harrison, Jefferson and Tuscarawas Counties and the surrounding localities in northeastern, east-central and southeastern Ohio and include a wide range of individuals, businesses and other organizations. Unified Bank conducts its business through its main office in Martins Ferry, Ohio and branches in Amesville, Bridgeport, Colerain, Dellroy, Dillonvale, Dover, Glouster, Jewett, Lancaster Downtown, Lancaster East, Nelsonville, New Philadelphia, St. Clairsville East, St. Clairsville West, Sherrodsville, Strasburg and Tiltonsville, Ohio. The Bank also operates a Loan Production Office in Wheeling, West Virginia. The Company’s primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential mortgage, commercial, and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and real estate and are not considered “sub prime” type loans. The targeted lending areas of our Bank operations encompass four separate metropolitan areas, minimizing the risk to changes in economic conditions in the communities housing the Company’s branch locations. Commercial loans are expected to be repaid from cash flow from operations of businesses. Real estate loans are secured by both residential and commercial real estate. Net interest income is affected by the relative amount of interest-earning assets and interest-bearing liabilities and the interest received or paid on these balances. The level of interest rates paid or received by the Company can be significantly influenced by a number of environmental factors, such as governmental monetary and fiscal policies, that are outside of management’s control. | Nature of Operations The Company’s revenues, operating income and assets are almost exclusively derived from banking. Accordingly, all of the Company’s banking operations are considered by management to be aggregated in one reportable operating segment. Customers are mainly located in Athens, Belmont, Carroll, Fairfield, Harrison, Jefferson and Tuscarawas Counties and the surrounding localities in northeastern, east-central and southeastern Ohio and include a wide range of individuals, businesses and other organizations. Unified Bank conducts its business through its main office in Martins Ferry, Ohio and branches in Amesville, Bridgeport, Colerain, Dellroy, Dillonvale, Dover, Glouster, Jewett, Lancaster Downtown, Lancaster East, Nelsonville, New Philadelphia, St. Clairsville East, St. Clairsville West, Sherrodsville, Strasburg and Tiltonsville, Ohio. The Bank also operates a Loan Production Office in Wheeling, West Virginia. The Company’s primary deposit products are checking, savings and term certificate accounts and its primary lending products are residential mortgage, commercial and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. Real estate loans are secured by both residential and commercial real estate. Net interest income is affected by the relative amount of interest-earning assets and interest-bearing liabilities and the interest received or paid on these balances. The level of interest rates paid or received by the Company can be significantly influenced by a number of environmental factors, such as governmental monetary policy, that are outside of management’s control. |
Revenue Recognition | Revenue Recognition Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, investment securities, as well as revenue related to our mortgage banking activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our income statements as components of non-interest income are as follows: Service charges on deposit accounts - these represent general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. | |
Use of Estimates | Use of Estimates To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided and future results could differ. The allowance for loan losses and fair values of financial instruments are particularly subject to change. | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowance for loan losses and the valuation of foreclosed assets held for sale, management obtains independent appraisals for significant properties. |
Cash Equivalents | Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2017 and 2016, cash equivalents consisted primarily of due from accounts with the Federal Reserve and other correspondent Banks. Currently, the FDIC’s insurance limits are $250,000. At December 31, 2017 and 2016, none of the Company’s cash accounts exceeded the federally insured limit of $250,000. | |
Securities | Securities Certain debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. Securities not classified as held to maturity, including equity securities with readily determinable fair values, are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. For debt securities with fair value below amortized cost, when the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held-to-maturity debt securities, the amount of an other-than-temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment is amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security. | |
Loans Held for Sale | Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. At December 31, 2017 and 2016, the Company did not have any loans held for sale. | |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. For all loan classes, the accrual of interest is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. For all loan classes, the entire balance of the loan is considered past due if the minimum payment contractually required to be paid is not received by the contractual due date. For all loan classes, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. Management’s general practice is to proactively charge down loans individually evaluated for impairment to the fair value of the underlying collateral. Consistent with regulatory guidance, charge-offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. The Company’s policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined. For all loan portfolio segments except residential and consumer loans, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral. The Company charges-off residential and consumer loans when the Company reasonably determines the amount of the loss. The Company adheres to timeframes established by applicable regulatory guidance which provides for the charge-down of 1-4 family first and junior lien mortgages to the net realizable value less costs to sell when the loan is 120 days past due, charge-off of unsecured open-end loans when the loan is 120 days past due, and charge down to the net realizable value when other secured loans are 120 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off. For all classes, all interest accrued but not collected for loans that are placed on nonaccrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status. When cash payments are received on impaired loans in each loan class, the Company records the payment as interest income unless collection of the remaining recorded principal amount is doubtful, at which time payments are used to reduce the principal balance of the loan. Troubled debt restructured loans recognize interest income on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms, no principal reduction has been granted and the loan has demonstrated the ability to perform in accordance with the renegotiated terms for a period of at least six months. | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. For all loan classes, the accrual of interest is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. For all loan classes, the entire balance of the loan is considered past due if the minimum payment contractually required to be paid is not received by the contractual due date. For all loan classes, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. Management’s general practice is to proactively charge down loans individually evaluated for impairment to the fair value of the underlying collateral. Consistent with regulatory guidance, charge-offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. The Company’s policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined. For all loan portfolio segments except residential and consumer loans, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral. The Company charges-off residential and consumer loans when the Company reasonably determines the amount of the loss. The Company adheres to timeframes established by applicable regulatory guidance which provides for the charge-down of 1-4 family first and junior lien mortgages to the net realizable value less costs to sell when the loan is 120 days past due, charge-off of unsecured open-end loans when the loan is 120 days past due, and charge down to the net realizable value when other secured loans are 120 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off. For all classes, all interest accrued but not collected for loans that are placed on nonaccrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status. When cash payments are received on impaired loans in each loan class, the Company records the payment as interest income unless collection of the remaining recorded principal amount is doubtful, at which time payments are used to reduce the principal balance of the loan. Troubled debt restructured loans recognize interest income on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms, no principal reduction has been granted and the loan has demonstrated the ability to perform in accordance with the renegotiated terms for a period of at least six months. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on historical charge-off experience by segment. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the prior three years. Management believes the three year historical loss experience methodology is appropriate in the current economic environment. Other adjustments (qualitative/environmental considerations) for each segment may be added to the allowance for each loan segment after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. A loan is considered 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. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due based on the loan’s current payment status and the borrower’s financial condition including available sources of cash flows. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. 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. Impairment is measured on a loan-by-loan basis for non-homogenous type loans such as commercial, non-owner residential and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. For impaired loans where the Company utilizes the discounted cash flows to determine the level of impairment, the Company includes the entire change in the present value of cash flows as bad debt expense. The fair values of collateral dependent impaired loans are based on independent appraisals of the collateral. In general, the Company acquires an updated appraisal upon identification of impairment and annually thereafter for commercial, commercial real estate and multi-family loans. If the most recent appraisal is over a year old, and a new appraisal is not performed, due to lack of comparable values or other reasons, the existing appraisal is utilized and discounted generally 10% - 35% based on the age of the appraisal, condition of the subject property, and overall economic conditions. After determining the collateral value as described, the fair value is calculated based on the determined collateral value less selling expenses. The potential for outdated appraisal values is considered in our determination of the allowance for loan losses through our analysis of various trends and conditions including the local economy, trends in charge-offs and delinquencies, etc. and the related qualitative adjustments assigned by the Company. Segments of loans with similar risk characteristics are collectively evaluated for impairment based on the segment’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. In the course of working with borrowers, the Company may choose to restructure the contractual terms of certain loans. In this scenario, the Company attempts to work-out an alternative payment schedule with the borrower in order to optimize collectability of the loan. Any loans that are modified are reviewed by the Company to identify if a troubled debt restructuring (“TDR”) has occurred, which is when, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms, or a combination of the two. If such efforts by the Company do not result in a satisfactory arrangement, the loan is referred to legal counsel, at which time foreclosure proceedings are initiated. At any time prior to a sale of the property at foreclosure, the Company may terminate foreclosure proceedings if the borrower is able to work-out a satisfactory payment plan. It is the Company’s policy to have any restructured loans which are on nonaccrual status prior to being restructured remain on nonaccrual status until six months of satisfactory borrower performance at which time management would consider its return to accrual status. If a loan was accruing at the time of restructuring, the Company reviews the loan to determine if it is appropriate to continue the accrual of interest on the restructured loan. With regard to determination of the amount of the allowance for credit losses, trouble debt restructured loans are considered to be impaired. As a result, the determination of the amount of impaired loans for each portfolio segment within troubled debt restructurings is the same as detailed previously. | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a monthly basis by Bank management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on historical charge-off experience by segment. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the prior five years. Management believes the five year historical loss experience methodology is appropriate in the current economic environment. Other adjustments (qualitative/environmental considerations) for each segment may be added to the allowance for each loan segment after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. A loan is considered 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. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due based on the loan’s current payment status and the borrower’s financial condition including available sources of cash flows. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. 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. Impairment is measured on a loan-by-loan basis for non-homogenous type loans such as commercial, non-owner residential and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. For impaired loans where the Company utilizes the discounted cash flows to determine the level of impairment, the Company includes the entire change in the present value of cash flows as bad debt expense. The fair values of collateral dependent impaired loans are based on independent appraisals of the collateral. In general, the Company acquires an updated appraisal upon identification of impairment and annually thereafter for commercial, commercial real estate and multi-family loans. If the most recent appraisal is over a year old, and a new appraisal is not performed, due to lack of comparable values or other reasons, the existing appraisal is utilized and discounted generally 10% -35% based on the age of the appraisal, condition of the subject property, and overall economic conditions. After determining the collateral value as described, the fair value is calculated based on the determined collateral value less selling expenses. The potential for outdated appraisal values is considered in our determination of the allowance for loan losses through our analysis of various trends and conditions including the local economy, trends in charge-offs and delinquencies, etc. and the related qualitative adjustments assigned by the Company. Segments of loans with similar risk characteristics are collectively evaluated for impairment based on the segment’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. In the course of working with borrowers, the Company may choose to restructure the contractual terms of certain loans. In this scenario, the Company attempts to work-out an alternative payment schedule with the borrower in order to optimize collectability of the loan. Any loans that are modified are reviewed by the Company to identify if a troubled debt restructuring (“TDR”) has occurred, which is when, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms, or a combination of the two. If such efforts by the Company do not result in a satisfactory arrangement, the loan is referred to legal counsel, at which time foreclosure proceedings are initiated. At any time prior to a sale of the property at foreclosure, the Company may terminate foreclosure proceedings if the borrower is able to work-out a satisfactory payment plan. It is the Company’s policy to have any restructured loans which are on nonaccrual status prior to being restructured remain on nonaccrual status until six months of satisfactory borrower performance at which time management would consider its return to accrual status. If a loan was accruing at the time of restructuring, the Company reviews the loan to determine if it is appropriate to continue the accrual of interest on the restructured loan. With regard to determination of the amount of the allowance for credit losses, trouble debt restructured loans are considered to be impaired. As a result, the determination of the amount of impaired loans for each portfolio segment within troubled debt restructurings is the same as detailed previously. |
Earnings Per Share | Earnings Per Share Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during each period. Diluted earnings per share reflects additional potential common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options and restricted stock awards and are determined using the treasury stock method. Treasury stock shares, deferred compensation shares and unearned ESOP shares are not deemed outstanding for earnings per share calculations. Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands, except share and per share data) Basic Net income $ 1,212 $ 916 $ 2,360 $ 1,766 Dividends on non-vested restricted stock (27 ) (9 ) (53 ) (17 ) Net income allocated to stockholders $ 1,185 $ 907 $ 2,307 $ 1,749 Weighted average common shares outstanding 4,990,904 4,847,884 4,986,290 4,839,725 Basic earnings per common share $ 0.24 $ 0.18 $ 0.46 $ 0.35 Diluted Net income allocated to stockholders $ 1,185 $ 907 $ 2,307 $ 1,749 Weighted average common shares outstanding for basic earnings per common share 4,990,904 4,847,884 4,986,290 4,839,725 Add: Dilutive effects of assumed exercise of stock options and restricted stock 226,030 119,102 224,998 119,102 Average shares and dilutive potential common shares 5,216,934 4,966,986 5,211,288 4,958,827 Diluted earnings per common share $ 0.22 $ 0.18 $ 0.44 $ 0.35 | Earnings Per Share Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during each period. Diluted earnings per share reflects additional potential common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options and restricted stock awards and are determined using the treasury stock method. Treasury stock shares, deferred compensation shares and unearned ESOP shares are not deemed outstanding for earnings per share calculations. |
Premises and Equipment | Premises and Equipment Depreciable assets are stated at cost less accumulated depreciation. Depreciation is charged to expense using the straight-line method over the estimated useful lives of the assets. An accelerated method is used for tax purposes. | |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock Federal Home Loan Bank stock is a required investment for institutions that are members of the Federal Home Loan Bank system. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for impairment. | |
Foreclosed Assets Held for Sale | Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value, less costs to sell, at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net income or expense from foreclosed assets. | |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The Company and the Bank have purchased life insurance policies on certain key executives. Company and bank-owned life insurance is recorded at its cash surrender value, or the amount that can be realized. | |
Treasury Stock | Treasury Stock Common shares repurchased are recorded at cost. Cost of shares retired or reissued is determined using the weighted average cost. | |
Restricted Stock Awards | Restricted Stock Awards The Company has a share-based employee compensation plan, which is described more fully in Note 14. | |
Income Taxes | Income Taxes The Company is subject to income taxes in the U.S. federal jurisdiction, as well as various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for the years before 2014. | Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if based on the weight of evidence available it is more likely than not that some portion or all of a deferred tax asset will not be realized. Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. At December 31, 2017, the Company had no uncertain tax positions. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Company’s impact of this Tax Act resulted in a charge against net income of approximately $216,000. This is primarily due to the write down of its deferred tax assets as a result of the Tax Act’s reduction in the base corporate tax rate from 35% to 21%. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company files consolidated income tax returns with its subsidiary. With a few exceptions, the Company is no longer subject to the examination by tax authorities for years before 2014. |
Recently Adopted Accounting Pronouncements | Recently Ado pted Accounting Pronouncements ASU No. 2018-02 was issued in February 2018 to provide guidance to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Act and will improve usefulness of information reported to financial statement users. The amendments in this ASU will also require certain disclosures about stranded tax effects and is effective for fiscal years beginning after December 31, 2018. The Company early adopted ASU 2018-02 effective January 1, 2018 and reclassified approximately $48,000 in stranded tax effects in the adoption using the method. ASU No. 2017-09 was issued in May 2017 and provides guidance about which changes to the terms or condition of a share-based payment award require and entity to apply modification accounting in Topic 718. The amendments in this Update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company has adopted ASU 2017-09 on January 1, 2018 and it did not have a significant impact on its accounting and disclosures. ASU No. 2017-07 was issued in March 2017 and applies to all employers that offer to their employees defined benefit pension plans, other postretirement benefit plans, or other types of benefits accounted for under Topic 715. The amendments in this update require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost, as defined, are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The amendments in ASU No. 2017-07 are effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The amendments in this update are to be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement. The Company has adopted ASU 2017-07 on January 1, 2018 and it did not have a significant impact on its accounting and disclosures. In August 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-15 "Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments. ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ASU No. 2016-01 was issued in January 2016 and applies to all entities that hold financial assets or owe financial liabilities. ASU 2016-01 is intended to improve the recognition and measurement of financial instruments by requiring equity investments to be measured at fair value with changes in fair value recognized in net income; requiring public entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured and amortized at cost on the balance sheet; and requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instruments specific credit risk when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. ASU 2016-01 is effective for annual periods and interim periods within those periods, beginning after December 15, 2017. The amendments should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity instruments that exist as of the date of adoption. The amendments will have an impact on certain items that are disclosed at fair value that are not currently utilizing the exit price notion when measuring fair value. The Company has adopted ASU 2016-01 on January 1, 2018 and it did not have a material effect on its fair value disclosures and other disclosure requirements. For additional information on fair value of assets and liabilities, see Note 16. In May 2014, the FASB issued ASU No. 2014-09 “ Revenue from Contracts with Customers (Topic 606) ” (ASU 2014-09). This update to the ASC is the culmination of efforts by the FASB and the International Accounting Standards Board (IASB) to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards (IFRS). ASU 2014-09 supersedes Topic 605 – Revenue Recognition and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance in ASU 2014-09 describes a 5-step process entities can apply to achieve the core principle of revenue recognition and requires disclosures sufficient to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers and the significant judgments used in determining that information. Originally, the amendments in ASU 2014-09 were effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and early application is not allowed. In July 2015, the FASB extended the implementation date to annual reporting periods beginning after December 15, 2017 including interim periods within that reporting period. Transitional guidance is included in the update. Earlier adoption is permitted only as of annual reporting periods beginning after December 31, 2016, including interim periods within that reporting period. The Company’s revenue is comprised of net interest income, which is explicitly excluded from the scope of ASU 2014-09, and non interest income. The Company has adopted ASU 2014-09 on January 1, 2018 and it did not identify any changes in the timing of revenue recognition when considering the amended accounting guidance. The Company included additional disclosures beginning in the first quarter of 2018 as required by the guidance. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments.” The provisions of ASU 2016-13 were issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other commitments to extend credit held by a reporting entity at each reporting date. ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016-13 eliminate the probable incurred loss recognition in current GAAP and reflect an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets. For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses on PCD assets are recognized through the statement of income as a credit loss expense. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact of these amendments to the Company’s financial position and results of operations and currently does not know or cannot reasonably quantify the impact of the adoption of the amendments as a result of the complexity and extensive changes from the amendments. The Allowance for Loan Losses (ALL) estimate is material to the Company and given the change from an incurred loss model to a methodology that considers the credit loss over the life of the loan, there is the potential for an increase in the ALL at adoption date. The Company is anticipating a significant change in the processes and procedures to calculate the ALL, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. In addition, the current accounting policy and procedures for the other-than-temporary impairment on available-for-sale securities will be replaced with an allowance approach. The Company continues to work with an outside vendor on data collection and reviewing segmentation to ensure it is fully compliant with the amendments at adoption date. For additional information on the allowance for loan losses, see Note 4. On February 25, 2016, the FASB issued ASU 2016-02 “ Leases (Topic 842). ” ASU 2016-02 is intended to improve financial reporting about leasing transactions. This ASU affects all companies and other organizations that lease assets such as real estate, airplanes, and manufacturing equipment. Under the current accounting model, an organization applies a classification test to determine the accounting for the lease arrangement: (a) Some leases are classified as capital whereby the lessee would recognize lease assets and liabilities on the balance sheet. (b) Other leases are classified as operating leases whereby the lessee would not recognize lease assets and liabilities on the balance sheet. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with Generally Accepted Accounting Principles (GAAP), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet—the new ASU will require both types of leases to be recognized on the balance sheet. For public companies, the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Thus, for a calendar year company, it would be effective January 1, 2019. The impact is not expected to have a material effect on the Company’s financial position or results of operations since the Company does not have a material amount of lease agreements. Future Acquisition The Company and Powhatan Community Bancshares, Inc. (“Powhatan”) , the holding company for First National Bank of Powhatan Point ("First National"), announced on June 14, 2018 they have signed a definitive agreement whereby the Company will acquire Powhatan in a stock and cash transaction. Upon completion, First National will be merged into the Company’s subsidiary bank, Unified Bank. At that time, the main office of First National will become a full-service branch of Unified Bank. Powhatan operates one full-service office in Belmont County, Ohio and has approximately $62.8 million in assets, $6.7 million in loans, $57.6 million of deposits and $5.1 million in consolidated equity as of June 30, 2018 The acquisition is expected to close in the fourth quarter of 2018 and is subject to Powhatan shareholder approval, regulatory approval, and other conditions set forth in the merger agreement. Subject to the terms of the merger agreement, which has been unanimously approved by the Board of Directors of each company, Powhatan shareholders will receive 6.9233 shares of common stock plus $38.75 in cash for each outstanding share of Powhatan common stock, subject to adjustment based on closing equity and other factors. Based on our closing share price prior to the announcement of $13.05 on June 13, 2018, the transaction is valued at $129.10 for each Powhatan share or approximately $6.836 million in aggregate. The acquisition will be accounted for in accordance with applicable accounting guidance. Accordingly, the assets and liabilities of Powhatan will be recorded at their estimated fair values at the acquisition date. The excess of the estimated fair value of the Company’s common shares issued and cash paid over the net fair values of the assets acquired, including identifiable intangible assets and liabilities assumed, will be recorded as goodwill. The results of operations will be included in the consolidated income statement from the date of the acquisition. Goodwill will be subject to an annual test for impairment and the amount impaired, if any, will be charged to expense at the time of impairment. The estimated fair values of the assets and liabilities have not yet been determined. 123,000 | |
Deferred Compensation Plan | Deferred Compensation Plan Directors have the option to defer all or a portion of fees for their services into a deferred stock compensation plan that invests in common shares of the Company. Officers of the Company have the option to defer up to 50% of their annual incentive award into this plan. The plan does not permit diversification and must be settled by the delivery of a fixed number of shares of the Company stock. The stock held in the plan is included in equity as deferred shares and is accounted for in a manner similar to treasury stock. Subsequent changes in the fair value of the Company’s stock are not recognized. The deferred compensation obligation is also classified as an equity instrument and changes in the fair value of the amount owed to the participant are not recognized. | |
Stockholders' Equity and Dividend Restrictions | Stockholders’ Equity and Dividend Restrictions The Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. Generally, the Bank’s payment of dividends is limited to net income for the current year plus the two preceding calendar years, less capital distributions paid over the comparable time period. Dividend payments to the stockholders may be legally paid from additional paid-in capital or retained earnings. | |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities and changes in the funded status of the defined benefit pension plan. | |
Advertising | Advertising Advertising costs are expensed as incurred. |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Schedule of Earnings Per Share, Basic and Diluted | Treasury stock shares, deferred compensation shares and unearned ESOP shares are not deemed outstanding for earnings per share calculations. Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands, except share and per share data) Basic Net income $ 1,212 $ 916 $ 2,360 $ 1,766 Dividends on non-vested restricted stock (27 ) (9 ) (53 ) (17 ) Net income allocated to stockholders $ 1,185 $ 907 $ 2,307 $ 1,749 Weighted average common shares outstanding 4,990,904 4,847,884 4,986,290 4,839,725 Basic earnings per common share $ 0.24 $ 0.18 $ 0.46 $ 0.35 Diluted Net income allocated to stockholders $ 1,185 $ 907 $ 2,307 $ 1,749 Weighted average common shares outstanding for basic earnings per common share 4,990,904 4,847,884 4,986,290 4,839,725 Add: Dilutive effects of assumed exercise of stock options and restricted stock 226,030 119,102 224,998 119,102 Average shares and dilutive potential common shares 5,216,934 4,966,986 5,211,288 4,958,827 Diluted earnings per common share $ 0.22 $ 0.18 $ 0.44 $ 0.35 | Earnings per share (EPS) were computed as follows: Year Ended December 31, 2017 Net Weighted- Per Share (In thousands) Net income $ 3,546 Dividends on non-vested restricted stock (31 ) Net income allocated to stockholders 3,515 Basic earnings per share Income available to common stockholders –– 4,861,942 $ 0.72 Effect of dilutive securities Restricted stock awards –– 123,857 Diluted earnings per share Income available to common stockholders and assumed conversions $ 3,515 4,985,799 $ 0.71 Year Ended December 31, 2016 Net Weighted-Average Per Share (In thousands) Net income $ 3,580 Dividends on non-vested restricted stock (31 ) Net income allocated to stockholders 3,549 Basic earnings per share Income available to common stockholders –– 4,907,799 $ 0.72 Effect of dilutive securities Restricted stock awards –– 108,521 Diluted earnings per share Income available to common stockholders and assumed conversions $ 3,549 5,016,320 $ 0.71 |
Securities (Tables)
Securities (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Securities [Abstract] | ||
Amortized Cost and Approximate Fair Values, Together with Gross Unrealized Gains and Losses of Securities | The amortized cost and approximate fair values, together with gross unrealized gains and losses of securities are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Available-for-sale Securities: June 30, 2018: U.S. government agencies $ 45,250 $ — $ (669 ) $ 44,581 State and political subdivisions 41,366 271 (6 ) 41,631 $ 86,616 $ 271 $ (675 ) $ 86,212 Available-for-sale Securities: December 31, 2017: U.S. government agencies $ 45,249 $ — (290 ) $ 44,959 $ 45,249 $ 3 $ (290 ) $ 44,959 | The amortized cost and approximate fair values, together with gross unrealized gains and losses of securities are as follows: Amortized Gross Gross Approximate (In thousands) Available-for-sale Securities: December 31, 2017: U.S. government agencies $ 45,249 $ — $ (290 ) $ 44,959 $ 45,249 $ — $ (290 ) $ 44,959 Available-for-sale Securities: December 31, 2016: U.S. government agencies $ 39,000 $ — $ (486 ) $ 38,514 State and political subdivisions 1,249 3 — 1,252 $ 40,249 $ 3 $ (486 ) $ 39,766 |
Amortized Cost and Fair Value of Available-for-Sale Securities and Held-to-Maturity Securities, by Contractual Maturity | The amortized cost and fair value of available-for-sale securities at June 30, 2018, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-sale Amortized Fair (In thousands) Within one year $ — $ — One to five years 45,250 44,580 Five to ten year — — Due after ten years 41,366 41,632 Totals $ 86,616 $ 86,212 | The amortized cost and fair value of available-for-sale securities at December 31, 2017, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Maturities for mortgage-backed securities are presented in the table below based on their projected maturities. Available-for-sale Amortized Fair (In thousands) One to five years $ 45,249 $ 44,959 Totals $ 45,249 $ 44,959 |
Investments' Gross Unrealized Losses and Fair Value, Aggregated by Investment Category and Length of Time that Individual Securities have been in Continuous Unrealized Loss Position | The following tables show the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2018 and December 31, 2017: June 30, 2018 Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) U.S. Government agencies $ 12,094 $ (156 ) $ 32,487 $ (513 ) $ 44,581 $ (669 ) State and Political Subdivisions 3,081 (6 ) — — 3,081 (6 ) Total $ 15,175 $ (162 ) $ 32,487 $ (513 ) $ 47,662 $ (675 ) December 31, 2017 Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) U.S. Government agencies $ 12,190 $ (59 ) $ 32,769 $ (231 ) $ 44,959 $ (290 ) | The following tables show the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2017 and 2016: December 31, 2017 Less than 12 Months 12 Months or More Total Description of Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) US Government agencies $ 12,190 $ (59 ) $ 32,769 $ (231 ) $ 44,959 $ (290 ) Total temporarily impaired securities $ 12,190 $ (59 ) $ 32,769 $ (231 ) $ 44,959 $ (290 ) December 31, 2016 Less than 12 Months 12 Months or More Total Description of Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) US Government agencies $ 38,514 $ (486 ) $ — $ — $ 38,514 $ (486 ) Total temporarily impaired securities $ 38,514 $ (486 ) $ — $ — $ 38,514 $ (486 ) |
Loans and Allowance for Loan 37
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Loans and Allowance For Loan Losses [Abstract] | ||
Categories of Loans | Categories of loans include: June 30, December 31, 2018 2017 (In thousands) Commercial loans $ 84,772 $ 81,327 Commercial real estate 206,795 198,936 Residential real estate 76,476 75,853 Installment loans 11,470 12,473 Total gross loans 379,513 368,589 Less allowance for loan losses (2,080 ) (2,122 ) Total loans $ 377,433 $ 366,467 | Categories of loans at December 31, include: 2017 2016 (In thousands) Commercial loans $ 81,327 $ 74,514 Commercial real estate 198,936 191,686 Residential real estate 75,853 76,154 Installment loans 12,473 14,367 Total gross loans 368,589 356,721 Less allowance for loan losses (2,122 ) (2,341 ) Total loans $ 366,467 $ 354,380 |
Allowance for Loan Losses and Recorded Investment in Loans | Allowance for Loan Losses and Recorded Investment in Loans As of and for the three and six month periods ended June 30, 2018 Commercial Commercial Real Estate Residential Installment Unallocated Total (In thousands) Allowance for loan losses: Balance, April 1, 2018 $ 522 $ 671 $ 446 $ 400 $ 86 $ 2,125 Provision charged to expense 22 (17 ) 137 16 (86 ) 72 Losses charged off — — (79 ) (55 ) — (134 ) Recoveries 1 — 1 15 — 17 Balance, June 30, 2018 $ 545 $ 654 $ 505 $ 376 $ — $ 2,080 Balance, January 1, 2018 $ 537 $ 843 $ 436 $ 218 $ 88 $ 2,122 Provision charged to expense 6 (190 ) 146 255 (88 ) 129 Losses charged off — — (79 ) (124 ) — (203 ) Recoveries 2 1 2 27 — 32 Balance, June 30, 2018 $ 545 $ 654 $ 505 $ 376 $ — $ 2,080 Allocation: Ending balance: individually evaluated for impairment $ — $ 75 $ — $ — $ — $ 75 Ending balance: collectively evaluated for impairment $ 545 $ 579 $ 505 $ 376 $ — $ 2,005 Loans: Ending balance: individually evaluated for impairment $ 58 $ 577 $ — $ 98 $ — $ 733 Ending balance: collectively evaluated for impairment $ 84,714 $ 206,218 $ 76,476 $ 11,372 $ — $ 378,780 Allowance for Loan Losses and Recorded Investment in Loans As of and for the three and six month periods ended June 30, 2017 Commercial Commercial Real Estate Residential Installment Unallocated Total (In thousands) Allowance for loan losses: Balance, April 1, 2017 $ 498 $ 793 $ 583 $ 162 $ 297 $ 2,333 Provision charged to expense 33 56 (137 ) 193 (120 ) 25 Losses charged off — (5 ) — (77 ) — (82 ) Recoveries 1 1 1 13 — 16 Balance, June 30, 2017 $ 532 $ 845 $ 447 $ 291 $ 177 $ 2,292 Balance, January 1, 2017 $ 495 $ 804 $ 591 $ 107 $ 344 $ 2,341 Provision charged to expense 36 44 (150 ) 287 (167 ) 50 Losses charged off — (5 ) — (127 ) — (132 ) Recoveries 1 2 6 24 — 33 Balance, June 30, 2017 $ 532 $ 845 $ 447 $ 291 $ 177 $ 2,292 Loans: Ending balance: individually evaluated for impairment $ 129 $ 841 $ — $ 462 $ — $ 1,432 Ending balance: collectively evaluated for impairment $ 51,732 $ 216,508 $ 75,158 $ 12,739 $ — $ 356,137 Allowance for Loan Losses and Recorded Investment in Loans As of December 31, 2017 Commercial Commercial Real Estate Residential Installment Unallocated Total (In thousands) Allowance for loan losses: Ending balance: individually evaluated for impairment $ — $ 73 $ — $ — $ — $ 73 Ending balance: collectively evaluated for impairment $ 537 $ 770 $ 436 $ 218 $ 88 $ 2,049 Loans: Ending balance: individually evaluated for impairment $ 83 $ 619 $ — $ 306 $ — $ 1,008 Ending balance: collectively evaluated for impairment $ 81,244 $ 198,317 $ 75,853 $ 12,167 $ — $ 367,581 | The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2017 and 2016: 2017 Commercial Commercial Residential Installment Unallocated Total (In thousands) Allowance for loan losses: Balance, beginning of year $ 495 $ 804 $ 591 $ 107 $ 344 $ 2,341 Provision charged to expense 39 118 (97 ) 296 (256 ) 100 Losses charged off (49 ) (81 ) (78 ) (230 ) –– (438 ) Recoveries 52 2 20 45 –– 119 Balance, end of year $ 537 $ 843 $ 436 $ 218 $ 88 $ 2,122 Ending balance: individually evaluated for impairment $ — $ 73 $ –– $ –– $ –– $ 73 Ending balance: collectively evaluated for impairment $ 537 $ 770 $ 436 $ 218 $ 88 $ 2,049 Loans: Ending balance: individually evaluated for impairment $ 83 $ 619 $ –– $ 306 $ –– $ 1,008 Ending balance: collectively evaluated for impairment $ 75,205 $ 195,108 $ 76,501 $ 12,567 $ –– $ 359,381 2016 Commercial Commercial Residential Installment Unallocated Total (In thousands) Allowance for loan losses: Balance, beginning of year $ 184 $ 597 $ 170 $ 113 $ 1,373 $ 2,437 Provision charged to expense 235 213 542 340 (1,029 ) 301 Losses charged off (2 ) (108 ) (143 ) (417 ) –– (670 ) Recoveries 78 102 22 71 –– 273 Balance, end of year $ 495 $ 804 $ 591 $ 107 $ 344 $ 2,341 Ending balance: individually evaluated for impairment $ 11 $ 108 $ –– $ –– $ –– $ 119 Ending balance: collectively evaluated for impairment $ 484 $ 696 $ 591 $ 107 $ 344 $ 2,222 Loans: Ending balance: individually evaluated for impairment $ 3,148 $ 1,178 $ –– $ 326 $ –– $ 4,652 Ending balance: collectively evaluated for impairment $ 71,366 $ 190,508 $ 76,154 $ 14,041 $ –– $ 352,069 |
Portfolio Quality Indicators | The following tables show the portfolio quality indicators. June 30, 2018 Loan Class Commercial Commercial Real Estate Residential Installment Total (In thousands) Pass Grade $ 84,701 $ 203,010 $ 76,476 $ 11,371 $ 375,558 Special Mention — 2,943 — — 2,943 Substandard 71 842 — 99 1,012 Doubtful — — — — — $ 84,772 $ 206,795 $ 76,476 $ 11,470 $ 379,513 December 31, 2017 Loan Class Commercial Commercial Real Estate Residential Installment Total (In thousands) Pass Grade $ 78,652 $ 195,063 $ 75,853 $ 12,167 $ 361,735 Special Mention 20 3,066 — — 3,086 Substandard 2,655 807 — 306 3,768 Doubtful — — — — — $ 81,327 $ 198,936 $ 75,853 $ 12,473 $ 368,589 | The following table shows the portfolio quality indicators as of December 31, 2017: Loan Class Commercial Commercial Residential Installment Total (In thousands) Pass Grade $ 78,652 $ 195,063 $ 75,853 $ 12,167 $ 361,735 Special Mention 20 3,066 –– –– 3,086 Substandard 2,655 807 –– 306 3,768 Doubtful –– –– –– –– –– $ 81,327 $ 198,936 $ 75,853 $ 12,473 $ 368,589 The following table shows the portfolio quality indicators as of December 31, 2016: Loan Class Commercial Commercial Residential Installment Total (In thousands) Pass Grade $ 71,302 $ 187,255 $ 76,154 $ 14,041 $ 348,752 Special Mention 64 3,253 –– –– 3,317 Substandard 3,148 1,178 –– 326 4,652 Doubtful –– –– –– –– –– $ 74,514 $ 191,686 $ 76,154 $ 14,367 $ 356,721 |
Loan Portfolio Aging Analysis | The Company evaluates the loan risk grading system definitions and allowance for loan losses methodology on an ongoing basis. No significant changes were made to either during the past year to date Loan Portfolio Aging Analysis As of June 30, 2018 30-59 Days Past Due and Accruing 60-89 Days Past Due and Accruing Greater Than 90 Days and Accruing Non Accrual Total Past Due and Non Accrual Current Total Loans Receivable (In thousands) Commercial $ 35 $ — $ 57 $ — $ 92 $ 84,680 $ 84,772 Commercial real estate 997 — — 486 1,483 205,312 206,795 Residential 611 18 — 659 1,288 75,188 76,476 Installment 13 — — 59 72 11,398 11,470 Total $ 1,656 $ 18 $ 57 $ 1,204 $ 2,935 $ 376,578 $ 379,513 Loan Portfolio Aging Analysis As of December 31, 2017 30-59 Days Past Due and Accruing 60-89 Days Past Due and Accruing Greater Than 90 Days and Accruing Non Accrual Total Past Due and Non Accrual Current Total Loans Receivable (In thousands) Commercial $ 56 $ — $ — $ 83 $ 139 $ 81,188 $ 81,327 Commercial real estate 262 — — 500 762 198,174 198,936 Residential 559 306 — 760 1,625 74,228 75,853 Installment 61 40 — 52 153 12,320 12,473 Total $ 938 $ 346 $ — $ 1,395 $ 2,679 $ 365,910 $ 368,589 | The following table shows the loan portfolio aging analysis of the recorded investment in loans as of December 31, 2017: 30-59 Days 60-89 Days Greater Non Total Past Current Total Loans (In thousands) Commercial $ 56 $ — $ — $ 83 $ 139 $ 81,188 $ 81,327 Commercial real estate 262 — –– 500 762 198,174 198,936 Residential 559 306 — 760 1,625 74,228 75,853 Installment 61 40 –– 52 153 12,320 12,473 Total $ 938 $ 346 $ — $ 1,395 $ 2,679 $ 365,910 $ 368,589 The following table shows the loan portfolio aging analysis of the recorded investment in loans as of December 31, 2016: 30-59 Days 60-89 Days Greater Non Total Past Current Total Loans (In thousands) Commercial $ 153 $ 105 $ 75 $ 49 $ 382 $ 74,132 $ 74,514 Commercial real estate — 55 –– 335 390 191,296 191,686 Residential 805 135 161 922 2,023 74,131 76,154 Installment 213 8 –– 55 276 14,091 14,367 Total $ 1,171 $ 303 $ 236 $ 1,361 $ 3,071 $ 353,650 $ 356,721 |
Impaired Loans | Impaired Loans As of June 30, 2018 For the three months ended June 30, 2018 For the six months ended June 30, 2018 Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized (In thousands) Loans without a specific valuation allowance: Commercial $ 58 $ 58 $ — $ 59 $ 2 $ 60 $ 2 Commercial real estate 168 168 — 583 1 582 5 Residential — — — — — — — Installment 98 98 — 99 1 100 2 324 324 — 741 4 742 9 Loans with a specific valuation allowance: Commercial — — — — — — — Commercial real estate 409 409 75 421 1 422 1 Residential — — — — — — — Installment — — — — — — — 409 409 75 421 1 422 1 Total: Commercial $ 58 $ 58 $ — $ 59 $ 2 $ 60 $ 2 Commercial real estate $ 577 $ 577 $ 75 $ 1,004 $ 2 $ 1,004 $ 6 Residential $ — $ — $ — $ — $ — $ — $ — Installment $ 98 $ 98 $ — $ 99 $ 1 $ 100 $ 2 Impaired Loans As of December 31, 2017 For the three months ended June 30, 2017 For the six months ended June 30, 2017 Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized (In thousands) Loans without a specific valuation allowance: Commercial $ 83 $ 83 $ — $ 131 $ 1 $ 128 $ 2 Commercial real estate 209 317 — 808 3 825 5 Residential — — — — — — — Installment 306 306 — 463 3 477 3 598 706 — 1,402 7 1,430 10 Loans with a specific valuation allowance: Commercial — — — — — — 3 Commercial real estate 410 410 73 489 6 498 12 Residential — — — — — — — Installment — — — — — — — 410 410 73 489 6 498 15 Total: Commercial $ 83 $ 83 $ 73 $ 131 $ 1 $ 128 $ 5 Commercial real estate $ 619 $ 727 $ — $ 1,297 $ 9 $ 1,323 $ 17 Residential $ — $ — $ — $ — $ — $ — $ — Installment $ 306 $ 306 $ — $ 463 $ 3 $ 477 $ 3 | The following table presents impaired loans for the year ended December 31, 2017: Recorded Unpaid Specific Average Interest (In thousands) Loans without a specific valuation allowance: Commercial $ 83 $ 83 $ –– $ 90 $ 5 Commercial real estate 209 317 –– 635 13 Installment 306 306 –– 312 3 598 598 –– 1,037 21 Loans with a specific valuation allowance: Commercial $ — $ — $ — $ — $ 7 Commercial real estate 410 410 73 392 14 Installment — — — — — 410 410 73 392 21 Total: Commercial $ 83 $ 83 $ — $ 90 $ 12 Commercial Real Estate $ 619 $ 619 $ 73 $ 1,027 $ 27 Installment $ 306 $ 306 $ — $ 312 $ 3 The following table presents impaired loans for the year ended December 31, 2016: Recorded Unpaid Specific Average Interest (In thousands) Loans without a specific valuation allowance: Commercial $ 2,975 $ 2,975 $ –– $ 2,930 $ 142 Commercial real estate 658 766 –– 1,176 43 Installment 326 326 –– 328 13 3,959 4,067 –– 4,434 198 Loans with a specific valuation allowance: Commercial 173 173 11 188 8 Commercial real estate 520 520 108 586 26 Installment –– –– –– –– 2 693 693 119 774 36 Total: Commercial $ 3,148 $ 3,148 $ 11 $ 3,118 $ 150 Commercial Real Estate $ 1,178 $ 1,286 $ 108 $ 1,762 $ 69 Installment $ 326 $ 326 $ — $ 328 $ 15 |
Troubled Debt Restructurings on Financing Receivables | Three Months ended June 30, 2018 Number of Pre- Modification Post-Modification (In thousands) Commercial — $ — $ — Commercial real estate — — — Residential — — — Installment — — — Three Months Ended June 30, 2018 Interest Term Combination Total ( In thousands Commercial $ — $ — $ — $ — Commercial real estate — — — — Residential — — — — Consumer — — — — Six Months ended June 30, 2018 Number of Contracts Pre- Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (In thousands) Commercial — $ — $ — Commercial real estate — — — Residential — — — Installment — — — Six Months Ended June 30, 2018 Interest Only Term Combination Total Modification ( In thousands Commercial $ — $ — $ — $ — Commercial real estate — — — — Residential — — — — Consumer — — — — Three Months ended June 30, 2017 Number of Contracts Pre- Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (In thousands) Commercial — $ — $ — Commercial real estate 2 127 103 Residential — — — Installment — — — Three Months Ended June 30, 2017 Interest Term Combination Total Modification ( In thousands Commercial $ — $ — $ — $ — Commercial real estate — 103 — 103 Residential — — — — Consumer — — — — Six Months ended June 30, 2017 Number of Pre- Modification Post-Modification (In thousands) Commercial — $ — $ — Commercial real estate 2 127 103 Residential — — — Installment — — — Six Months Ended June 30, 2017 Interest Only Term Combination Total Modification ( In thousands Commercial $ — $ — $ — $ — Commercial real estate — 103 — 103 Residential — — — — Consumer — — — — | The following tables present information regarding troubled debt restructurings by class and by type of modification for the years ended December 31, 2017 and 2016: Year Ended December 31, 2017 Number of Pre-Modification Post-Modification (In thousands) Commercial 2 $ 40 $ 40 Commercial real estate 3 208 188 Year Ended December 31, 2017 Interest Term Combination Total (In thousands) Commercial $ –– $ 40 $ –– $ 40 Commercial real estate –– 188 –– 188 Year Ended December 31, 2016 Number of Pre-Modification Post-Modification (In thousands) Commercial 1 $ 17 $ 17 Commercial real estate 3 116 116 Year Ended December 31, 2016 Interest Term Combination Total (In thousands) Commercial $ –– $ 17 $ –– $ 17 Commercial real estate –– 116 –– 116 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Benefit Plans [Abstract] | ||
Pension Expense | Pension expense includes the following: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands) Service cost $ 76 $ 68 $ 152 $ 136 Interest cost 55 50 110 100 Expected return on assets (111 ) (90 ) (222 ) (180 ) Amortization of prior service cost and net loss (10 ) (6 ) (20 ) (12 ) Pension expense $ 10 $ 22 $ 20 $ 44 | December 31, 2017 2016 (In thousands) Components of net periodic benefit cost Service cost $ 273 $ 312 Interest cost 198 198 Expected return on plan assets (357 ) (341 ) Amortization of prior service (credit) cost (89 ) (89 ) Amortization of net loss 63 81 Net periodic benefit cost $ 88 $ 161 |
Information About the Plan's Funded Status and Pension Cost | Information about the plan’s funded status and pension cost follows: Pension Benefits 2017 2016 (In thousands) Change in benefit obligation Beginning of year $ (3,926 ) $ (3,968 ) Service cost (273 ) (312 ) Interest cost (198 ) (198 ) Actuarial (loss) gain (403 ) 23 Benefits paid 128 529 End of year (4,672 ) (3,926 ) Change in fair value of plan assets Beginning of year 4,625 4,458 Actual return on plan assets 702 382 Employer contribution 406 314 Benefits paid (128 ) (529 ) End of year 5,605 4,625 Funded status at end of year $ 933 $ 699 | |
Components of Net Periodic Benefit Cost | Amounts recognized in accumulated other comprehensive loss not yet recognized as components of net periodic benefit cost consist of: Pension Benefits 2017 2016 (In thousands) Unamortized net loss $ 1,048 $ 1,052 Unamortized prior service (758 ) (847 ) $ 290 $ 205 | |
Information For the Pension Plan With Respect To Accumulated Benefit Obligation And Plan Assets | Information for the pension plan with respect to accumulated benefit obligation and plan assets is as follows: December 31, 2017 2016 (In thousands) Projected benefit obligation $ 4,672 $ 3,926 Accumulated benefit obligation $ 4,375 $ 3,756 Fair value of plan assets $ 5,605 $ 4,625 | |
Summary of Significant Assumptions | Significant assumptions include: Pension Benefits 2017 2016 Weighted-average assumptions used to determine benefit obligation: Discount rate 4.83 % 5.39 % Rate of compensation increase 3.00 % 3.00 % Weighted-average assumptions used to determine benefit cost: Discount rate 4.83 % 5.39 % Expected return on plan assets 7.50 % 7.50 % Rate of compensation increase 3.00 % 3.00 % | |
Summary of Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as of December 31, 2017: Pension (In thousands) 2018 $ 186 2019 199 2020 843 2021 548 2022 373 2023-2027 1,796 Total $ 3,945 | |
Target Asset Allocation Percentages | The target asset allocation percentages for both 2017 and 2016 are as follows: Large-Cap stocks Not to exceed 68% Small-Cap stocks Not to exceed 23% Mid-Cap stocks Not to exceed 23% International equity securities Not to exceed 30% Fixed income investments Not to exceed 35% Alternative investments Not to exceed 19% | |
Investment of Fair Value of Plan Assets as a Percentage of the Total | At December 31, 2017 and 2016, the fair value of plan assets as a percentage of the total was invested in the following: December 31, 2017 2016 Equity securities 70.1 % 68.1 % Debt securities 27.3 29.6 Cash and cash equivalents 2.6 2.3 100.0 % 100.0 % | |
Fair Values of Company's Pension Plan By Asset Category | The fair values of Company’s pension plan assets at December 31st, by asset category are as follows: December 31, 2017 Fair Value Measurements Using Asset Category Total Fair Value Quoted Prices Significant Significant (In thousands) Mutual money market $ 199 $ 199 $ –– $ –– Mutual funds – equities ETF mutual funds 3,042 3,042 –– –– Large and small Cap 301 301 –– –– International 420 420 Commodities 182 182 –– –– Mutual funds – fixed income Fixed income 1,145 1,145 –– –– ETF fixed income 316 316 –– –– Total $ 5,605 $ 5,605 $ –– $ –– December 31, 2016 Fair Value Measurements Using Asset Category Total Fair Value Quoted Prices Significant Significant (In thousands) Mutual money market $ 106 $ 106 $ –– $ –– Mutual funds – equities Eft mutual funds 2,561 2,561 –– –– Large and Small Cap 584 584 –– –– Commodies 140 140 –– –– Mutual funds – fixed income Fixed income 1,022 1,022 –– –– ETF fixed income 212 212 –– –– Total $ 4,625 $ 4,625 $ –– $ –– | |
Share Information for the ESOP | Share information for the ESOP is as follows at December 31, 2017 and 2016: 2017 2016 Allocated shares at beginning of the year $ 333,790 $ 267,558 Shares released for allocation during the year 23,635 23,635 Net shares acquired on reinvestment of cash or (distributed) due to retirement/diversification (21,063 ) 42,597 Unearned shares 70,906 94,541 Total ESOP shares 407,268 428,331 Fair value of unearned shares at December 31st $ 943,000 $ 1,276,000 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Major classifications of premises and equipment, stated at cost, are as follows: 2017 2016 (In thousands) Land, buildings and improvements $ 17,282 $ 17,025 Furniture and equipment 12,637 12,164 Computer software 2,143 2,116 32,062 31,305 Less accumulated depreciation (20,322 ) (19,421 ) Net premises and equipment $ 11,740 $ 11,884 |
Off-balance-sheet Activities (T
Off-balance-sheet Activities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Off Balance Sheet Activities [Abstract] | |
Summary of the Notional or Contractual Amounts of Financial Instruments With Off-Balance-Sheet Risk | A summary of the notional or contractual amounts of financial instruments with off-balance-sheet risk at the indicated dates is as follows: June 30, December 31, 2018 2017 (In thousands) Commercial loans unused lines of credit $ 27,089 $ 25,814 Commitment to originate loans 15,909 15,350 Consumer open end lines of credit 37,971 36,938 Standby lines of credit 46 — |
Time Deposits (Tables)
Time Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Scheduled Of Maturities Of Time Deposits | At December 31, 2017, the scheduled maturities of time deposits are as follows: Due during the year ending December 31, (In thousands) 2018 $ 33,954 2019 14,364 2020 12,473 2021 2,176 2022 758 Thereafter 2,092 $ 65,817 |
Accumulated Other Comprehensi42
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Components of Accumulated Other Comprehensive Loss included in Stockholders Equity | The components of accumulated other comprehensive loss, included in stockholders’ equity, are as follows: June 30, 2018 December 31, 2017 (In thousands) Net unrealized loss on securities available-for-sale $ (405 ) $ (290 ) Net unrealized loss for unfunded status of defined benefit plan liability (242 ) (289 ) (647 ) (579 ) Tax effect 136 159 Net-of-tax amount $ (511 ) $ (420 ) | The components of accumulated other comprehensive loss, included in stockholders’ equity, are as follows: 2017 2016 (In thousands) Net unrealized loss on securities available-for-sale $ (290 ) $ (483 ) Net unrealized loss for funded status of defined benefit plan liability (289 ) (205 ) (579 ) (688 ) Tax effect 159 234 Net-of-tax amount $ (420 ) $ (454 ) |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | ||
Advances from the Federal Home Loan Bank | At December 31, advances from the Federal Home Loan Bank were as follows: 2017 2016 (In thousands) Maturities March 2018 through August 2025, primarily at fixed rates ranging from 3.15% to 6.65%, averaging 5.15% $ 200 $ –– Cash Management advances maturities in March 2018 at floating rates averaging 1.52% 9,822 –– Cash Management advances maturities January 2017 through March 2017 at floating rates averaging 0.74% –– 19,500 Maturities January 2017 through August 2025, primarily at fixed rates ranging from 3.08% to 6.65%, averaging 3.93% –– 20,355 $ 10,022 $ 39,855 | |
Required Annual Principal Payments on Federal Home Loan Bank Advances | At December 31, 2017 required annual principal payments on Federal Home Loan Bank advances were as follows: For the year ending December 31, (In thousands) 2018 $ 9,919 2019 38 2020 15 2021 15 2022 15 Thereafter 20 $ 10,022 | |
Summary of Information Concerning Securities Sold Under Agreements to Repurchase | Information concerning securities sold under agreements to repurchase is summarized as follows: 2017 2016 (Dollars in thousands) Balance outstanding at year end $ 10,022 $ 9,393 Average daily balance during the year $ 13,578 $ 11,058 Average interest rate during the year 0.28 % 0.12 % Maximum month-end balance during the year $ 17,033 $ 14,200 Weighted-average interest rate at year end 0.28 % 0.12 % | |
Schedule of Repurchase Agreements | The following table presents the Company’s repurchase agreements accounted for as secured borrowings: Remaining Contractual Maturity of the Agreement (In thousands) June 30, 2018 Overnight and Continuous Up to 30 Days 30-90 Days Greater than 90 Days Total Repurchase Agreements U.S. government agencies $ 12,346 $ — $ — $ — $ 12,346 Total $ 12,346 $ — $ — $ — $ 12,346 December 31, 2017 Overnight and Continuous Up to 30 Days 30-90 Days Greater than 90 Days Total Repurchase Agreements U.S. government agencies $ 11,085 $ — $ — $ — $ 11,085 Total $ 11,085 $ — $ — $ — $ 11,085 | The following table presents the Company’s repurchase agreements accounted for as secured borrowings: Remaining Contractual Maturity of the Agreement (In thousands) December 31, 2017 Overnight and Up to 30 Days 30-90 Days Greater than 90 Total Repurchase Agreements U.S government agencies $ 10,022 $ –– $ –– $ –– $ 10,022 Total $ 10,022 $ –– $ –– $ –– $ 10,022 (In thousands) December 31, 2016 Overnight and Up to 30 Days 30-90 Days Greater than 90 Total Repurchase Agreements U.S. government agencies $ 9,393 –– –– –– 9,393 Total $ 9,393 $ –– $ –– $ –– $ 9,393 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Measurements of Assets Recognized in Consolidated Balance Sheets Measured at Fair Value on Recurring Basis | The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2018 and December 31, 2017: Fair Value Measurements Using Fair Value Quoted Prices Significant (Level 2) Significant (Level 3) (In thousands) June 30, 2018 U.S. government agencies $ 44,581 $ — $ 44,581 $ — State and political subdivisions 41,631 — 41,631 — December 31, 2017 U.S. government agencies $ 44,959 $ — $ 44,959 $ — | The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2017 and 2016: December 31, 2017 Fair Quoted Prices in Significant Significant (In thousands) U.S government agencies $ 44,959 $ –– $ 44,959 $ –– December 31, 2016 Fair Quoted Prices in Significant Significant (In thousands) U.S government agencies $ 38,514 $ –– $ 38,514 $ –– State and political subdivisions 1,252 –– 1,252 –– |
Fair Value Measurements of Assets Recognized in Consolidated Balance Sheets Measured at Fair Value on Nonrecurring Basis | The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2018 and December 31, 2017. Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) June 30, 2018 Collateral dependent impaired loans $ 334 $ — $ — $ 334 Foreclosed assets held for sale 250 — — 250 December 31, 2017 Collateral dependent impaired loans $ 336 $ — $ — $ 336 Foreclosed assets held for sale 34 — — 34 | The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2017 and 2016: December 31, 2017 Fair Quoted Prices in Significant Significant (In thousands) Collateral dependent impaired loans $ 336 $ –– $ –– $ 336 Foreclosed assets held for sale 34 –– –– 34 December 31, 2016 Fair Quoted Prices in Significant Significant (In thousands) Collateral dependent impaired loans $ 3,435 $ –– $ –– $ 3,435 Foreclosed assets held for sale 249 –– –– 249 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. Fair Value at Valuation Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 334 Market comparable properties Marketability discount 10% - 25% Foreclosed assets held for sale $ 250 Market comparable properties Selling costs 10% – 35% Fair Value at 12/31/17 Valuation Technique Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 336 Market comparable properties Marketability discount 10% - 25% Foreclosed assets held for sale $ 34 Market comparable properties Selling costs 10% – 35% | The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. Fair Value at Valuation Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 333 Market comparable properties Comparability adjustments Not available Foreclosed assets held for sale 34 Market comparable properties Marketability discount 10% – 35% Fair Value at Valuation Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 3,435 Market comparable properties Comparability adjustments Not available Foreclosed assets held for sale 249 Market comparable properties Marketability discount 10% – 35% |
Estimated Fair Values of Company's Financial Instruments | The following table presents estimated fair values of the Company’s financial instruments. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate. Fair Value Measurements Using Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) June 30, 2018 Financial assets Cash and cash equivalents $ 16,308 $ 16,308 $ — $ — Loans, net of allowance 377,433 — — 373,437 Federal Home Loan Bank stock 4,164 — 4,164 — Accrued interest receivable 1,275 — 1,275 — Financial liabilities Deposits 415,634 — 354,553 — Short term borrowings 12,346 — 12,346 — Federal Home Loan Bank Advances 33,768 — 33,762 — Subordinated debentures 4,124 — 3,733 — Interest payable 122 122 — Fair Value Measurements Using Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) December 31, 2017 Financial assets Cash and cash equivalents $ 14,315 $ 14,315 $ — $ — Loans, net of allowance 366,467 — — 368,033 Federal Home Loan Bank stock 4,164 — 4,164 — Accrued interest receivable 993 — 993 — Financial liabilities Deposits 385,966 — 358,722 — Short term borrowings 11,085 — 11,085 — Federal Home Loan Bank Advances 10,022 — 10,012 — Subordinated debentures 4,124 — 3,590 — Interest payable 70 — 70 — | Fair Value Measurements Using Carrying Quoted Prices Significant Significant (In thousands) December 31, 2017 Financial assets Cash and cash equivalents $ 14,315 $ 14,315 $ –– $ –– Loans, net of allowance 366,467 –– –– 368,033 Federal Home Loan Bank stock 4,164 –– 4,164 –– Accrued interest receivable 993 –– 993 –– Financial liabilities Deposits 385,966 –– 358,722 –– Short term borrowings 11,085 –– 11,085 –– Federal Home Loan Bank advances 10,022 –– 10,012 –– Subordinated debentures 4,124 –– 3,590 –– Interest payable 70 –– 70 –– The classification of the assets and liabilities pursuant to the valuation hierarchy as of December 31, 2016 in the following table have not been audited. The fair value has been derived from the December 31, 2016 audited consolidated financial statements. Fair Value Measurements Using Carrying Quoted Prices Significant Significant (In thousands) December 31, 2016 Financial assets Cash and cash equivalents $ 11,541 $ 11,541 $ –– $ –– Loans, net of allowance 354,380 –– –– 355,753 Federal Home Loan Bank stock 4,164 –– 4,164 –– Accrued interest receivable 840 –– 840 –– Financial liabilities Deposits 338,803 –– 312,240 –– Short term borrowings 9,393 –– 9,393 –– Federal Home Loan Bank advances 39,855 –– 40,120 –– Subordinated debentures 4,124 –– 3,435 –– Interest payable 111 –– 111 –– |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components Of Income Tax Expense | The provision for income taxes includes these components: 2017 2016 (In thousands) Taxes currently payable $ 1,499 $ 1,498 Deferred income taxes 545 82 Income tax expense $ 2,044 $ 1,580 |
Reconciliation of Income Tax Expense at the Statutory Rate to the Company's Actual Income Tax Expense | A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below: 2017 2016 (In thousands) Computed at the statutory rate (34%) $ 1,901 $ 1,755 (Decrease) increase resulting from Tax exempt interest (17 ) (42 ) Earnings on bank-owned life insurance - net (160 ) (160 ) Deferred tax re-valuation 216 — Other 104 27 Actual tax expense $ 2,044 $ 1,580 |
Tax Effects of Temporary Differences Related to Deferred Taxes Shown on the Balance Sheets | The tax effects of temporary differences related to deferred taxes shown on the balance sheets were: 2017 2016 (In thousands) Deferred tax assets Allowance for loan losses $ 244 $ 382 Stock based compensation 221 375 Allowance for losses on foreclosed real estate 31 82 Deferred compensation and ESOP 422 690 Intangible assets 65 124 Non-accrual loan interest 52 79 Unrealized losses on securities available for sale 61 164 Total deferred tax assets 1,096 1,896 Deferred tax liabilities Depreciation (144 ) (199 ) Deferred loan costs, net (86 ) (158 ) Accretion — (1 ) FHLB stock dividends (315 ) (510 ) Mortgage servicing rights (9 ) (16 ) Employee benefit expense (193 ) (162 ) Total deferred tax liabilities (747 ) (1,046 ) Net deferred tax asset $ 349 $ 850 |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Disclosure of Repurchase Agreements [Abstract] | ||
Schedule of Repurchase Agreements | The following table presents the Company’s repurchase agreements accounted for as secured borrowings: Remaining Contractual Maturity of the Agreement (In thousands) June 30, 2018 Overnight and Continuous Up to 30 Days 30-90 Days Greater than 90 Days Total Repurchase Agreements U.S. government agencies $ 12,346 $ — $ — $ — $ 12,346 Total $ 12,346 $ — $ — $ — $ 12,346 December 31, 2017 Overnight and Continuous Up to 30 Days 30-90 Days Greater than 90 Days Total Repurchase Agreements U.S. government agencies $ 11,085 $ — $ — $ — $ 11,085 Total $ 11,085 $ — $ — $ — $ 11,085 | The following table presents the Company’s repurchase agreements accounted for as secured borrowings: Remaining Contractual Maturity of the Agreement (In thousands) December 31, 2017 Overnight and Up to 30 Days 30-90 Days Greater than 90 Total Repurchase Agreements U.S government agencies $ 10,022 $ –– $ –– $ –– $ 10,022 Total $ 10,022 $ –– $ –– $ –– $ 10,022 (In thousands) December 31, 2016 Overnight and Up to 30 Days 30-90 Days Greater than 90 Total Repurchase Agreements U.S. government agencies $ 9,393 –– –– –– 9,393 Total $ 9,393 $ –– $ –– $ –– $ 9,393 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Summary of Company's and Bank's Actual Capital Amounts and Ratios | The Company’s and Bank’s actual capital amounts and ratios are presented in the following table. Actual For Capital Adequacy To Be Well Capitalized Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2017 Total Capital Consolidated $ 49,590 13.2 % $ 30,149 8.0 % N/A N/A Unified 44,637 11.9 30,026 8.0 $ 37,532 10.0 % Common Equity Tier 1 Capital Consolidated $ 43,468 11.5 % $ 16,959 4.5 % N/A N/A Unified 42,515 11.3 16,889 4.5 $ 24,396 6.5 % Tier I Capital Consolidated $ 47,468 12.6 % $ 22,612 6.0 % N/A N/A Unified 42,515 11.3 22,519 6.0 $ 30,026 8.0 % Tier I Capital Consolidated $ 47,468 10.6 % $ 17,904 4.0 % N/A N/A Unified 42,515 9.4 18,017 4.0 $ 22,521 5.0 % As of December 31, 2016 Total Capital Consolidated $ 48,429 13.6 % $ 28,516 8.0 % N/A N/A Unified 41,801 11.8 28,382 8.0 $ 35,478 10.0 % Common Equity Tier 1 Capital Consolidated $ 42,088 11.8 % $ 16,040 4.5 % N/A N/A Unified 39,460 11.1 15,965 4.5 $ 23,061 6.5 % Tier I Capital Consolidated $ 46,088 12.9 % $ 21,387 6.0 % N/A N/A Unified 39,460 11.1 21,287 6.0 $ 28,382 8.0 % Tier I Capital Consolidated $ 46,088 11.0 % $ 16,729 4.0 % N/A N/A Unified 39,460 9.3 17,048 4.0 $ 21,310 5.0 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Summary of Loans Outstanding | Such loans are summarized below. 2017 2016 (In thousands) Aggregate balance – January 1 $ 13,635 $ 10,546 New loans 189 4,864 Repayments (828 ) (1,775 ) Aggregate balance – December 31 $ 12,996 $ 13,635 |
Restricted Stock Plan (Tables)
Restricted Stock Plan (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stock Option And Restricted Stock Plans [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | A summary of the status of the Company’s nonvested restricted shares as of December 31, 2017, and changes during the year then ended, is presented below: Shares Weighted- Nonvested, beginning of year 170,000 $ 8.75 Granted 10,000 11.99 Vested (5,000 ) 8.40 Forfeited — — Nonvested, end of year 175,000 $ 8.95 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Schedule of Earnings Per Share, Basic and Diluted | Treasury stock shares, deferred compensation shares and unearned ESOP shares are not deemed outstanding for earnings per share calculations. Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (In thousands, except share and per share data) Basic Net income $ 1,212 $ 916 $ 2,360 $ 1,766 Dividends on non-vested restricted stock (27 ) (9 ) (53 ) (17 ) Net income allocated to stockholders $ 1,185 $ 907 $ 2,307 $ 1,749 Weighted average common shares outstanding 4,990,904 4,847,884 4,986,290 4,839,725 Basic earnings per common share $ 0.24 $ 0.18 $ 0.46 $ 0.35 Diluted Net income allocated to stockholders $ 1,185 $ 907 $ 2,307 $ 1,749 Weighted average common shares outstanding for basic earnings per common share 4,990,904 4,847,884 4,986,290 4,839,725 Add: Dilutive effects of assumed exercise of stock options and restricted stock 226,030 119,102 224,998 119,102 Average shares and dilutive potential common shares 5,216,934 4,966,986 5,211,288 4,958,827 Diluted earnings per common share $ 0.22 $ 0.18 $ 0.44 $ 0.35 | Earnings per share (EPS) were computed as follows: Year Ended December 31, 2017 Net Weighted- Per Share (In thousands) Net income $ 3,546 Dividends on non-vested restricted stock (31 ) Net income allocated to stockholders 3,515 Basic earnings per share Income available to common stockholders –– 4,861,942 $ 0.72 Effect of dilutive securities Restricted stock awards –– 123,857 Diluted earnings per share Income available to common stockholders and assumed conversions $ 3,515 4,985,799 $ 0.71 Year Ended December 31, 2016 Net Weighted-Average Per Share (In thousands) Net income $ 3,580 Dividends on non-vested restricted stock (31 ) Net income allocated to stockholders 3,549 Basic earnings per share Income available to common stockholders –– 4,907,799 $ 0.72 Effect of dilutive securities Restricted stock awards –– 108,521 Diluted earnings per share Income available to common stockholders and assumed conversions $ 3,549 5,016,320 $ 0.71 |
Disclosures about Fair Value 51
Disclosures about Fair Value of Financial Instruments and Other Assets and Liabilities (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Measurements of Assets Recognized in Consolidated Balance Sheets Measured at Fair Value on Recurring Basis | The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2018 and December 31, 2017: Fair Value Measurements Using Fair Value Quoted Prices Significant (Level 2) Significant (Level 3) (In thousands) June 30, 2018 U.S. government agencies $ 44,581 $ — $ 44,581 $ — State and political subdivisions 41,631 — 41,631 — December 31, 2017 U.S. government agencies $ 44,959 $ — $ 44,959 $ — | The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2017 and 2016: December 31, 2017 Fair Quoted Prices in Significant Significant (In thousands) U.S government agencies $ 44,959 $ –– $ 44,959 $ –– December 31, 2016 Fair Quoted Prices in Significant Significant (In thousands) U.S government agencies $ 38,514 $ –– $ 38,514 $ –– State and political subdivisions 1,252 –– 1,252 –– |
Fair Value Measurements of Assets Recognized in Consolidated Balance Sheets Measured at Fair Value on Nonrecurring Basis | The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2018 and December 31, 2017. Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) June 30, 2018 Collateral dependent impaired loans $ 334 $ — $ — $ 334 Foreclosed assets held for sale 250 — — 250 December 31, 2017 Collateral dependent impaired loans $ 336 $ — $ — $ 336 Foreclosed assets held for sale 34 — — 34 | The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2017 and 2016: December 31, 2017 Fair Quoted Prices in Significant Significant (In thousands) Collateral dependent impaired loans $ 336 $ –– $ –– $ 336 Foreclosed assets held for sale 34 –– –– 34 December 31, 2016 Fair Quoted Prices in Significant Significant (In thousands) Collateral dependent impaired loans $ 3,435 $ –– $ –– $ 3,435 Foreclosed assets held for sale 249 –– –– 249 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. Fair Value at Valuation Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 334 Market comparable properties Marketability discount 10% - 25% Foreclosed assets held for sale $ 250 Market comparable properties Selling costs 10% – 35% Fair Value at 12/31/17 Valuation Technique Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 336 Market comparable properties Marketability discount 10% - 25% Foreclosed assets held for sale $ 34 Market comparable properties Selling costs 10% – 35% | The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. Fair Value at Valuation Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 333 Market comparable properties Comparability adjustments Not available Foreclosed assets held for sale 34 Market comparable properties Marketability discount 10% – 35% Fair Value at Valuation Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 3,435 Market comparable properties Comparability adjustments Not available Foreclosed assets held for sale 249 Market comparable properties Marketability discount 10% – 35% |
Estimated Fair Values of Company's Financial Instruments | The following table presents estimated fair values of the Company’s financial instruments. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate. Fair Value Measurements Using Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) June 30, 2018 Financial assets Cash and cash equivalents $ 16,308 $ 16,308 $ — $ — Loans, net of allowance 377,433 — — 373,437 Federal Home Loan Bank stock 4,164 — 4,164 — Accrued interest receivable 1,275 — 1,275 — Financial liabilities Deposits 415,634 — 354,553 — Short term borrowings 12,346 — 12,346 — Federal Home Loan Bank Advances 33,768 — 33,762 — Subordinated debentures 4,124 — 3,733 — Interest payable 122 122 — Fair Value Measurements Using Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) December 31, 2017 Financial assets Cash and cash equivalents $ 14,315 $ 14,315 $ — $ — Loans, net of allowance 366,467 — — 368,033 Federal Home Loan Bank stock 4,164 — 4,164 — Accrued interest receivable 993 — 993 — Financial liabilities Deposits 385,966 — 358,722 — Short term borrowings 11,085 — 11,085 — Federal Home Loan Bank Advances 10,022 — 10,012 — Subordinated debentures 4,124 — 3,590 — Interest payable 70 — 70 — | Fair Value Measurements Using Carrying Quoted Prices Significant Significant (In thousands) December 31, 2017 Financial assets Cash and cash equivalents $ 14,315 $ 14,315 $ –– $ –– Loans, net of allowance 366,467 –– –– 368,033 Federal Home Loan Bank stock 4,164 –– 4,164 –– Accrued interest receivable 993 –– 993 –– Financial liabilities Deposits 385,966 –– 358,722 –– Short term borrowings 11,085 –– 11,085 –– Federal Home Loan Bank advances 10,022 –– 10,012 –– Subordinated debentures 4,124 –– 3,590 –– Interest payable 70 –– 70 –– The classification of the assets and liabilities pursuant to the valuation hierarchy as of December 31, 2016 in the following table have not been audited. The fair value has been derived from the December 31, 2016 audited consolidated financial statements. Fair Value Measurements Using Carrying Quoted Prices Significant Significant (In thousands) December 31, 2016 Financial assets Cash and cash equivalents $ 11,541 $ 11,541 $ –– $ –– Loans, net of allowance 354,380 –– –– 355,753 Federal Home Loan Bank stock 4,164 –– 4,164 –– Accrued interest receivable 840 –– 840 –– Financial liabilities Deposits 338,803 –– 312,240 –– Short term borrowings 9,393 –– 9,393 –– Federal Home Loan Bank advances 39,855 –– 40,120 –– Subordinated debentures 4,124 –– 3,435 –– Interest payable 111 –– 111 –– |
Condensed Financial Informati52
Condensed Financial Information (Parent Company Only) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet | Presented below is condensed financial information as to financial position, results of operations and cash flows of the Company: Condensed Balance Sheets December 31, 2017 2016 (In thousands) Assets Cash and cash equivalents $ 2,771 $ 4,644 Investment in the Bank 42,286 39,141 Corporate owned life insurance — 7 Other assets 3,042 2,973 Total assets $ 48,099 $ 46,765 Liabilities and Stockholders’ Equity Subordinated debentures $ 4,124 $ 4,124 Other liabilities 80 — Stockholders’ equity 43,895 42,641 Total liabilities and stockholders’ equity $ 48,099 $ 46,765 |
Condensed Statements of Income | Condensed Statements of Income and Comprehensive Income Years Ended December 31, 2017 2016 (In thousands) Operating Income Dividends from subsidiary $ 2,035 $ 4,701 Interest and dividend income from securities and federal funds 1 7 Total operating income 2,036 4,708 General, Administrative and Other Expenses 1,961 1,651 Income Before Income Taxes and Equity in Undistributed Income of Subsidiary 75 3,057 Income Tax Benefits 416 484 Income Before Equity in Undistributed Income of Subsidiary 491 3,541 Equity in Undistributed Income of Subsidiary 3,055 39 Net Income $ 3,546 $ 3,580 Comprehensive Income $ 3,578 $ 3,307 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows Years Ended December 31, 2017 2016 (In thousands) Operating Activities Net income $ 3,546 $ 3,580 Items not requiring (providing) cash Equity in undistributed income of subsidiary (3,055 ) (39 ) Amortization of ESOP and share-based compensation plans 443 378 Net change in other assets and other liabilities (38 ) (190 ) Net cash provided by operating activities 896 3,729 Financing Activities Dividends paid to stockholders (2,769 ) (2,540 ) Net cash used in financing activities (2,769 ) (2,540 ) Net Change in Cash and Cash Equivalents (1,873 ) 1,189 Cash and Cash Equivalents at Beginning of Year 4,644 3,455 Cash and Cash Equivalents at End of Year $ 2,771 $ 4,644 |
Quarterly Financial Data (Una53
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule Of Quarterly Financial Information | The following tables summarize the Company’s quarterly results of operations for the years ended December 31, 2017 and 2016. Three Months Ended 2017: March 31, June 30, September 30, December 31, (In thousands, except per share data) Total interest income $ 4,184 $ 4,290 $ 4,586 $ 4,591 Total interest expense 438 438 449 439 Net interest income 3,746 3,852 4,137 4,152 Provision for loan losses 25 25 25 25 Other income 832 869 892 859 General, administrative and other expense 3,334 3,365 3,456 3,494 Income before income taxes 1,219 1,331 1,548 1,492 Federal income taxes 369 415 548 712 Net income $ 850 $ 916 $ 1,000 $ 780 Earnings per share Basic $ 0.17 $ 0.18 $ 0.20 $ 0.17 Diluted $ 0.17 $ 0.18 $ 0.20 $ 0.16 Three Months Ended 2016: March 31, June 30, September 30, December 31, (In thousands, except per share data) Total interest income $ 4,038 $ 4,187 $ 4,166 $ 4,244 Total interest expense 475 437 432 440 Net interest income 3,563 3,750 3,734 3,804 Provision (credit) for loan losses 71 105 131 (6 ) Other income 867 902 1,056 856 General, administrative and other expense 3,141 3,251 3,345 3,333 Income before income taxes 1,218 1,296 1,314 1,333 Federal income taxes 373 389 386 432 Net income $ 845 $ 907 $ 928 $ 901 Earnings per share Basic $ 0.18 $ 0.18 $ 0.18 $ 0.18 Diluted $ 0.17 $ 0.18 $ 0.18 $ 0.18 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | Jun. 20, 2018 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 13, 2018 |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Accumulated Other Comprehensive Income Loss Reclassification of Stranded Tax Effects | $ 48,000 | |||||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ 1,901,000 | $ 1,755,000 | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | |||||
Stock Issued During Period, Shares, Acquisitions | 6.9233 | |||||
Common Stock Held by Subsidiary | $ 38.75 | |||||
Stock Issued During Period, Value, Acquisitions | $ 6,836,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 62,800,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 6,700,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Assets | 57,600,000 | |||||
Consolidated Equity | 5,100,000 | |||||
Accounts Payable, Interest-bearing | $ 250,000 | 250,000 | ||||
Maximum Deferrable Under Annual Incentive Award Percent | 50.00% | |||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 216,000 | $ 0 | ||||
Powhatan Community Bancshares Inc [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Business Combination, Acquisition Related Costs | $ 123,000 | |||||
Maximum [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Sale of Stock, Price Per Share | $ 129.10 | |||||
Minimum [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Sale of Stock, Price Per Share | $ 13.05 | |||||
Scenario, Plan [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Basic and Diluted Earnings Per
Basic and Diluted Earnings Per Common Share (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Basic | |||||||||||
Net income | $ 1,212,000 | $ 1,000,000 | $ 916,000 | $ 850,000 | $ 928,000 | $ 907,000 | $ 845,000 | $ 2,360,000 | $ 1,766,000 | $ 3,546,000 | $ 3,580,000 |
Dividends on non-vested restricted stock | (27,000) | (9,000) | (53,000) | (17,000) | (31) | (31) | |||||
Net income allocated to stockholders | $ 1,185,000 | $ 907,000 | $ 2,307,000 | $ 1,749,000 | $ 3,515,000 | $ 3,549,000 | |||||
Weighted average common shares outstanding | 4,990,904 | 4,847,884 | 4,986,290 | 4,839,725 | 4,861,942 | 4,907,799 | |||||
Basic earnings per common share | $ 0.24 | $ 0.20 | $ 0.18 | $ 0.17 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.46 | $ 0.35 | $ 0.72 | $ 0.72 |
Diluted | |||||||||||
Net income allocated to stockholders | $ 1,185,000 | $ 907,000 | $ 2,307,000 | $ 1,749,000 | $ 3,515,000 | $ 3,549,000 | |||||
Weighted average common shares outstanding for basic earnings per common share | 4,990,904 | 4,847,884 | 4,986,290 | 4,839,725 | 4,861,942 | 4,907,799 | |||||
Add: Dilutive effects of assumed exercise of stock options and restricted stock | 226,030 | 119,102 | 224,998 | 119,102 | 123,857 | 108,521 | |||||
Average shares and dilutive potential common shares | 5,216,934 | 4,966,986 | 5,211,288 | 4,958,827 | 4,985,799 | 5,016,320 | |||||
Diluted earnings per common share | $ 0.22 | $ 0.20 | $ 0.18 | $ 0.17 | $ 0.18 | $ 0.18 | $ 0.17 | $ 0.44 | $ 0.35 | $ 0.71 | $ 0.71 |
Securities - Additional Informa
Securities - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule Of Marketable Securities [Line Items] | |||
Debt Securities, Available-for-sale, Restricted | $ 42.6 | $ 41.5 | $ 27.9 |
Fair Value of Investment in debt securities | $ 47.7 | $ 44.9 | $ 38.5 |
Percentage of fair value of investment in debt | 55.20% | 100.00% | 96.80% |
Amortized Cost and Approximate
Amortized Cost and Approximate Fair Values, Together with Gross Unrealized Gains and Losses of Securities (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Gain (Loss) on Investments [Line Items] | |||
Available-for-sale Securities, Amortized Cost | $ 86,616 | $ 45,249 | $ 40,249 |
Available-for-sale Securities, Gross Unrealized Gains | 271 | 3 | 3 |
Available-for-sale Securities, Gross Unrealized Losses | (675) | (290) | (486) |
Available-for-sale securities, Fair Value | 86,212 | 44,959 | 39,766 |
U.S. government agencies | |||
Gain (Loss) on Investments [Line Items] | |||
Available-for-sale Securities, Amortized Cost | 45,250 | 45,249 | 39,000 |
Available-for-sale Securities, Gross Unrealized Gains | 0 | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Losses | (669) | (290) | (486) |
Available-for-sale securities, Fair Value | 44,581 | $ 44,959 | 38,514 |
State and political subdivisions | |||
Gain (Loss) on Investments [Line Items] | |||
Available-for-sale Securities, Amortized Cost | 41,366 | 1,249 | |
Available-for-sale Securities, Gross Unrealized Gains | 271 | 3 | |
Available-for-sale Securities, Gross Unrealized Losses | (6) | 0 | |
Available-for-sale securities, Fair Value | $ 41,631 | $ 1,252 |
Amortized Cost and Fair Value o
Amortized Cost and Fair Value of Available-for-Sale Securities and Held-to-Maturity Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale, Amortized Cost | |||
Within one year | $ 0 | ||
One to five years | 45,250 | $ 45,249 | |
Five to ten year | 0 | ||
Due after ten years | 41,366 | ||
Totals | 86,616 | 45,249 | $ 40,249 |
Available-for-sale, Fair Value | |||
Within one year | 0 | ||
One to five years | 44,580 | 44,959 | |
Five to ten year | 0 | ||
Due after ten years | 41,632 | ||
Totals | $ 86,212 | $ 44,959 | $ 39,766 |
Gross Unrealized Losses and Fai
Gross Unrealized Losses and Fair Value, Aggregated by Investment Category and Length of Time that Individual Securities have been in a Continuous Unrealized Loss Position (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Gain (Loss) on Investments [Line Items] | |||
Less than 12 Months, Fair Value | $ 15,175 | $ 12,190 | $ 38,514 |
Less than 12 Months, Unrealized Losses | (162) | (59) | (486) |
12 Months or More, Fair Value | 32,487 | 32,769 | 0 |
12 Months or More, Unrealized Losses | (513) | (231) | 0 |
Total, Fair Value | 47,662 | 44,959 | 38,514 |
Total, Unrealized Losses | (675) | (290) | (486) |
U.S. government agencies | |||
Gain (Loss) on Investments [Line Items] | |||
Less than 12 Months, Fair Value | 12,094 | 12,190 | 38,514 |
Less than 12 Months, Unrealized Losses | (156) | (59) | (486) |
12 Months or More, Fair Value | 32,487 | 32,769 | 0 |
12 Months or More, Unrealized Losses | (513) | (231) | 0 |
Total, Fair Value | 44,581 | 44,959 | 38,514 |
Total, Unrealized Losses | (669) | $ (290) | $ (486) |
State and political subdivisions | |||
Gain (Loss) on Investments [Line Items] | |||
Less than 12 Months, Fair Value | 3,081 | ||
Less than 12 Months, Unrealized Losses | (6) | ||
12 Months or More, Fair Value | 0 | ||
12 Months or More, Unrealized Losses | 0 | ||
Total, Fair Value | 3,081 | ||
Total, Unrealized Losses | $ (6) |
Loans and Allowance for Loan 60
Loans and Allowance for Loan Losses - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Loans and Allowance For Loan Losses [Abstract] | |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | $ 24,000 |
Categories of Loan (Detail)
Categories of Loan (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts Notes And Loans Receivable [Line Items] | |||||||
Commercial loans | $ 84,772 | $ 81,327 | $ 74,514 | ||||
Commercial real estate | 206,795 | 198,936 | 191,686 | ||||
Residential real estate | 76,476 | 75,853 | 76,154 | ||||
Installment loans | 11,470 | 12,473 | 14,367 | ||||
Total gross loans | 379,513 | 368,589 | 356,721 | ||||
Less allowance for loan losses | (2,080) | $ (2,125) | (2,122) | $ (2,292) | $ (2,333) | (2,341) | $ (2,437) |
Total loans | $ 377,433 | $ 366,467 | $ 354,380 |
Allowance for Loan Losses and R
Allowance for Loan Losses and Recorded Investment in Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for loan losses: | |||||||||||
Balance, beginning of period | $ 2,125 | $ 2,292 | $ 2,333 | $ 2,341 | $ 2,437 | $ 2,122 | $ 2,341 | $ 2,341 | $ 2,437 | ||
Provision charged to expense | 72 | 25 | 25 | 25 | $ 131 | $ 105 | 71 | 129 | 50 | 100 | 301 |
Losses charged off | (134) | (82) | (203) | (132) | (438) | (670) | |||||
Recoveries | 17 | 16 | 32 | 33 | 119 | 273 | |||||
Balance, end of period | 2,080 | 2,292 | 2,333 | 2,080 | 2,292 | 2,122 | 2,341 | ||||
Ending balance: individually evaluated for impairment | 75 | 75 | 73 | 119 | |||||||
Ending balance: collectively evaluated for impairment | 2,005 | 0 | 2,005 | 0 | 2,049 | 2,222 | |||||
Loans: | |||||||||||
Ending balance: individually evaluated for impairment | 733 | 1,432 | 733 | 1,432 | 1,008 | 4,652 | |||||
Ending balance: collectively evaluated for impairment | 378,780 | 356,137 | 378,780 | 356,137 | 359,381 | 352,069 | |||||
Commercial | |||||||||||
Allowance for loan losses: | |||||||||||
Balance, beginning of period | 522 | 532 | 498 | 495 | 184 | 537 | 495 | 495 | 184 | ||
Provision charged to expense | 22 | 33 | 6 | 36 | 39 | 235 | |||||
Losses charged off | 0 | 0 | 0 | 0 | (49) | (2) | |||||
Recoveries | 1 | 1 | 2 | 1 | 52 | 78 | |||||
Balance, end of period | 545 | 532 | 498 | 545 | 532 | 537 | 495 | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 11 | |||||||
Ending balance: collectively evaluated for impairment | 545 | 545 | 537 | 484 | |||||||
Loans: | |||||||||||
Ending balance: individually evaluated for impairment | 58 | 129 | 58 | 129 | 83 | 3,148 | |||||
Ending balance: collectively evaluated for impairment | 84,714 | 51,732 | 84,714 | 51,732 | 81,244 | 71,366 | |||||
Commercial Real Estate | |||||||||||
Allowance for loan losses: | |||||||||||
Balance, beginning of period | 671 | 845 | 793 | 804 | 597 | 843 | 804 | 804 | 597 | ||
Provision charged to expense | (17) | 56 | (190) | 44 | 118 | 213 | |||||
Losses charged off | 0 | (5) | 0 | (5) | (81) | (108) | |||||
Recoveries | 0 | 1 | 1 | 2 | 2 | 102 | |||||
Balance, end of period | 654 | 845 | 793 | 654 | 845 | 843 | 804 | ||||
Ending balance: individually evaluated for impairment | 75 | 75 | 73 | 108 | |||||||
Ending balance: collectively evaluated for impairment | 579 | 579 | 770 | 696 | |||||||
Loans: | |||||||||||
Ending balance: individually evaluated for impairment | 577 | 841 | 577 | 841 | 619 | 1,178 | |||||
Ending balance: collectively evaluated for impairment | 206,218 | 216,508 | 206,218 | 216,508 | 198,317 | 190,508 | |||||
Residential | |||||||||||
Allowance for loan losses: | |||||||||||
Balance, beginning of period | 446 | 447 | 583 | 591 | 170 | 436 | 591 | 591 | 170 | ||
Provision charged to expense | 137 | (137) | 146 | (150) | (97) | 542 | |||||
Losses charged off | (79) | 0 | (79) | 0 | (78) | (143) | |||||
Recoveries | 1 | 1 | 2 | 6 | 20 | 22 | |||||
Balance, end of period | 505 | 447 | 583 | 505 | 447 | 436 | 591 | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 505 | 505 | 436 | 591 | |||||||
Loans: | |||||||||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | |||||||
Ending balance: collectively evaluated for impairment | 76,476 | 75,158 | 76,476 | 75,158 | 75,853 | 76,154 | |||||
Installment | |||||||||||
Allowance for loan losses: | |||||||||||
Balance, beginning of period | 400 | 291 | 162 | 107 | 113 | 218 | 107 | 107 | 113 | ||
Provision charged to expense | 16 | 193 | 255 | 287 | 296 | 340 | |||||
Losses charged off | (55) | (77) | (124) | (127) | (230) | (417) | |||||
Recoveries | 15 | 13 | 27 | 24 | 45 | 71 | |||||
Balance, end of period | 376 | 291 | 162 | 376 | 291 | 218 | 107 | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | |||||||
Ending balance: collectively evaluated for impairment | 376 | 376 | 218 | 107 | |||||||
Loans: | |||||||||||
Ending balance: individually evaluated for impairment | 98 | 462 | 98 | 462 | 306 | 326 | |||||
Ending balance: collectively evaluated for impairment | 11,372 | 12,739 | 11,372 | 12,739 | 12,167 | 14,041 | |||||
Unallocated | |||||||||||
Allowance for loan losses: | |||||||||||
Balance, beginning of period | 86 | $ 177 | 297 | 344 | $ 1,373 | 88 | 344 | 344 | 1,373 | ||
Provision charged to expense | (86) | (120) | (88) | (167) | (256) | (1,029) | |||||
Losses charged off | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Recoveries | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Balance, end of period | 0 | 177 | $ 297 | 0 | 177 | 88 | 344 | ||||
Ending balance: individually evaluated for impairment | 0 | $ 0 | 0 | $ 0 | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 0 | 0 | 88 | 344 | |||||||
Loans: | |||||||||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | |||||||
Ending balance: collectively evaluated for impairment | $ 0 | $ 0 | $ 0 | $ 0 |
Portfolio Quality Indicators (D
Portfolio Quality Indicators (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial | $ 84,772 | $ 81,327 | $ 74,514 |
Commercial Real Estate | 206,795 | 198,936 | 191,686 |
Residential | 76,476 | 75,853 | 76,154 |
Installment | 11,470 | 12,473 | 14,367 |
Total | 379,513 | 368,589 | 356,721 |
Pass Grade | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial | 84,701 | 78,652 | 71,302 |
Commercial Real Estate | 203,010 | 195,063 | 187,255 |
Residential | 76,476 | 75,853 | 76,154 |
Installment | 11,371 | 12,167 | 14,041 |
Total | 375,558 | 361,735 | 348,752 |
Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial | 0 | 20 | 64 |
Commercial Real Estate | 2,943 | 3,066 | 3,253 |
Residential | 0 | 0 | 0 |
Installment | 0 | 0 | 0 |
Total | 2,943 | 3,086 | 3,317 |
Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial | 71 | 2,655 | 3,148 |
Commercial Real Estate | 842 | 807 | 1,178 |
Residential | 0 | 0 | 0 |
Installment | 99 | 306 | 326 |
Total | 1,012 | 3,768 | 4,652 |
Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial | 0 | 0 | 0 |
Commercial Real Estate | 0 | 0 | 0 |
Residential | 0 | 0 | 0 |
Installment | 0 | 0 | 0 |
Total | $ 0 | $ 0 | $ 0 |
Loan Portfolio Aging Analysis (
Loan Portfolio Aging Analysis (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non Accrual | $ 1,204 | $ 1,395 | $ 1,361 |
Total Past Due and Non Accrual | 2,935 | 2,679 | 3,071 |
Current | 376,578 | 365,910 | 353,650 |
Total Loans Receivable | 379,513 | 368,589 | 356,721 |
Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non Accrual | 1,656 | 938 | 1,171 |
Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non Accrual | 18 | 346 | 303 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non Accrual | 57 | 0 | 236 |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non Accrual | 0 | 83 | 49 |
Total Past Due and Non Accrual | 92 | 139 | 382 |
Current | 84,680 | 81,188 | 74,132 |
Total Loans Receivable | 84,772 | 81,327 | 74,514 |
Commercial | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non Accrual | 35 | 56 | 153 |
Commercial | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non Accrual | 0 | 0 | 105 |
Commercial | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non Accrual | 57 | 0 | 75 |
Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non Accrual | 486 | 500 | 335 |
Total Past Due and Non Accrual | 1,483 | 762 | 390 |
Current | 205,312 | 198,174 | 191,296 |
Total Loans Receivable | 206,795 | 198,936 | 191,686 |
Commercial Real Estate | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non Accrual | 997 | 262 | 0 |
Commercial Real Estate | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non Accrual | 0 | 0 | 55 |
Commercial Real Estate | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non Accrual | 0 | 0 | |
Residential | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non Accrual | 659 | 760 | 922 |
Total Past Due and Non Accrual | 1,288 | 1,625 | 2,023 |
Current | 75,188 | 74,228 | 74,131 |
Total Loans Receivable | 76,476 | 75,853 | 76,154 |
Residential | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non Accrual | 611 | 559 | 805 |
Residential | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non Accrual | 18 | 306 | 135 |
Residential | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non Accrual | 0 | 0 | 161 |
Installment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non Accrual | 59 | 52 | 55 |
Total Past Due and Non Accrual | 72 | 153 | 276 |
Current | 11,398 | 12,320 | 14,091 |
Total Loans Receivable | 11,470 | 12,473 | 14,367 |
Installment | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non Accrual | 13 | 61 | 213 |
Installment | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non Accrual | 0 | 40 | $ 8 |
Installment | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non Accrual | $ 0 | $ 0 |
Impaired Loans (Detail)
Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commercial | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Recorded Balance | $ 58 | $ 58 | $ 83 | $ 3,148 | ||
Unpaid Principal Balance | 58 | 58 | 83 | 3,148 | ||
Specific Allowance | 0 | 0 | 73 | 11 | ||
Average Investment in Impaired Loans | 59 | $ 131 | 60 | $ 128 | 90 | 3,118 |
Interest Income Recognized | 2 | 1 | 2 | 5 | 12 | 150 |
Commercial real estate | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Recorded Balance | 577 | 577 | 619 | 1,178 | ||
Unpaid Principal Balance | 577 | 577 | 727 | 1,286 | ||
Specific Allowance | 75 | 75 | 0 | 108 | ||
Average Investment in Impaired Loans | 1,004 | 1,297 | 1,004 | 1,323 | 1,027 | 1,762 |
Interest Income Recognized | 2 | 9 | 6 | 17 | 27 | 69 |
Residential | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Recorded Balance | 0 | 0 | 0 | |||
Unpaid Principal Balance | 0 | 0 | 0 | |||
Specific Allowance | 0 | 0 | 0 | |||
Average Investment in Impaired Loans | 0 | 0 | 0 | 0 | ||
Interest Income Recognized | 0 | 0 | 0 | 0 | ||
Installment | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Recorded Balance | 98 | 98 | 306 | 326 | ||
Unpaid Principal Balance | 98 | 98 | 306 | 326 | ||
Specific Allowance | 0 | 0 | 0 | 0 | ||
Average Investment in Impaired Loans | 99 | 463 | 100 | 477 | 312 | 328 |
Interest Income Recognized | 1 | 3 | 2 | 3 | 3 | 15 |
Loans without a specific valuation allowance | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Recorded Balance | 324 | 324 | 598 | 3,959 | ||
Unpaid Principal Balance | 324 | 324 | 706 | 4,067 | ||
Specific Allowance | 0 | 0 | 0 | 0 | ||
Average Investment in Impaired Loans | 741 | 1,402 | 742 | 1,430 | 1,037 | 4,434 |
Interest Income Recognized | 4 | 7 | 9 | 10 | 21 | 198 |
Loans without a specific valuation allowance | Commercial | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Recorded Balance | 58 | 58 | 83 | 2,975 | ||
Unpaid Principal Balance | 58 | 58 | 83 | 2,975 | ||
Specific Allowance | 0 | 0 | 0 | 0 | ||
Average Investment in Impaired Loans | 59 | 131 | 60 | 128 | 90 | 2,930 |
Interest Income Recognized | 2 | 1 | 2 | 2 | 5 | 142 |
Loans without a specific valuation allowance | Commercial real estate | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Recorded Balance | 168 | 168 | 209 | 658 | ||
Unpaid Principal Balance | 168 | 168 | 317 | 766 | ||
Specific Allowance | 0 | 0 | 0 | 0 | ||
Average Investment in Impaired Loans | 583 | 808 | 582 | 825 | 635 | 1,176 |
Interest Income Recognized | 1 | 3 | 5 | 5 | 13 | 43 |
Loans without a specific valuation allowance | Residential | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Recorded Balance | 0 | 0 | 0 | |||
Unpaid Principal Balance | 0 | 0 | 0 | |||
Specific Allowance | 0 | 0 | 0 | |||
Average Investment in Impaired Loans | 0 | 0 | 0 | 0 | ||
Interest Income Recognized | 0 | 0 | 0 | 0 | ||
Loans without a specific valuation allowance | Installment | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Recorded Balance | 98 | 98 | 306 | 326 | ||
Unpaid Principal Balance | 98 | 98 | 306 | 326 | ||
Specific Allowance | 0 | 0 | 0 | 0 | ||
Average Investment in Impaired Loans | 99 | 463 | 100 | 477 | 312 | 328 |
Interest Income Recognized | 1 | 3 | 2 | 3 | 3 | 13 |
Loans with a specific valuation allowance | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Recorded Balance | 409 | 409 | 410 | 693 | ||
Unpaid Principal Balance | 409 | 409 | 410 | 693 | ||
Specific Allowance | 75 | 75 | 73 | 119 | ||
Average Investment in Impaired Loans | 421 | 489 | 422 | 498 | 392 | 774 |
Interest Income Recognized | 1 | 6 | 1 | 15 | 21 | 36 |
Loans with a specific valuation allowance | Commercial | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Recorded Balance | 0 | 0 | 0 | 173 | ||
Unpaid Principal Balance | 0 | 0 | 0 | 173 | ||
Specific Allowance | 0 | 0 | 0 | 11 | ||
Average Investment in Impaired Loans | 0 | 0 | 0 | 0 | 0 | 188 |
Interest Income Recognized | 0 | 0 | 0 | 3 | 7 | 8 |
Loans with a specific valuation allowance | Commercial real estate | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Recorded Balance | 409 | 409 | 410 | 520 | ||
Unpaid Principal Balance | 409 | 409 | 410 | 520 | ||
Specific Allowance | 75 | 75 | 73 | 108 | ||
Average Investment in Impaired Loans | 421 | 489 | 422 | 498 | 392 | 586 |
Interest Income Recognized | 1 | 6 | 1 | 12 | 14 | 26 |
Loans with a specific valuation allowance | Residential | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Recorded Balance | 0 | 0 | 0 | |||
Unpaid Principal Balance | 0 | 0 | 0 | |||
Specific Allowance | 0 | 0 | 0 | |||
Average Investment in Impaired Loans | 0 | 0 | 0 | 0 | ||
Interest Income Recognized | 0 | 0 | 0 | 0 | ||
Loans with a specific valuation allowance | Installment | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Recorded Balance | 0 | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | 0 | ||
Specific Allowance | 0 | 0 | 0 | 0 | ||
Average Investment in Impaired Loans | 0 | 0 | 0 | 0 | 0 | 0 |
Interest Income Recognized | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 2 |
Troubled Debt Restructuring (De
Troubled Debt Restructuring (Detail) Number in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018USD ($)Number | Jun. 30, 2017USD ($)Number | Jun. 30, 2018USD ($)Number | Jun. 30, 2017USD ($)Number | Dec. 31, 2017USD ($)Number | Dec. 31, 2016USD ($)Number | |
Financing Receivable, Modifications [Line Items] | ||||||
Total Modification | $ 103 | $ 103 | ||||
Commercial | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | Number | 0 | 0 | 0 | 0 | 2 | 1 |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 | $ 40 | $ 17 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | 40 | 17 |
Interest Only | 0 | 0 | 0 | 0 | 0 | 0 |
Term | 0 | 0 | 0 | 0 | 40 | 17 |
Combination | 0 | 0 | 0 | 0 | 0 | 0 |
Total Modification | $ 0 | $ 0 | $ 0 | $ 0 | $ 40 | $ 17 |
Commercial real estate | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | Number | 0 | 2 | 0 | 2 | 3 | 3 |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 127 | $ 0 | $ 127 | $ 208 | $ 116 |
Post-Modification Outstanding Recorded Investment | 0 | 103 | 0 | 103 | 188 | 116 |
Interest Only | 0 | 0 | 0 | 0 | ||
Term | 0 | 103 | 0 | 103 | 188 | 116 |
Combination | 0 | 0 | 0 | 0 | 0 | 0 |
Total Modification | $ 0 | $ 103 | $ 0 | $ 103 | $ 188 | $ 116 |
Residential | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | Number | 0 | 0 | 0 | 0 | ||
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 | ||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | ||
Interest Only | 0 | 0 | 0 | 0 | ||
Term | 0 | 0 | 0 | 0 | ||
Combination | 0 | 0 | 0 | 0 | ||
Total Modification | $ 0 | $ 0 | $ 0 | $ 0 | ||
Installment | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | Number | 0 | 0 | 0 | 0 | ||
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 | ||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 | ||
Consumer | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Interest Only | 0 | 0 | 0 | 0 | ||
Term | 0 | 0 | 0 | 0 | ||
Combination | 0 | 0 | 0 | 0 | ||
Total Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Pension Expense (Detail)
Pension Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components of net periodic benefit cost | ||||||
Service cost | $ 76 | $ 68 | $ 152 | $ 136 | $ 273 | $ 312 |
Interest cost | 55 | 50 | 110 | 100 | 198 | 198 |
Expected return on assets | (111) | (90) | (222) | (180) | (357) | (341) |
Amortization of prior service cost and net loss | (10) | (6) | (20) | (12) | (89) | (89) |
Amortization of net loss | 63 | 81 | ||||
Pension expense | $ 10 | $ 22 | $ 20 | $ 44 | $ 88 | $ 161 |
Notional or Contractual Amounts
Notional or Contractual Amounts of Financial Instruments with Off-Balance-Sheet Risk (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Commercial loans unused lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Asset | $ 27,089 | $ 25,814 |
Commitment to originate loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Asset | 15,909 | 15,350 |
Consumer open end lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Asset | 37,971 | 36,938 |
Standby lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Asset | $ 46 | $ 0 |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Loss Included in Stockholders' Equity (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Other Comprehensive Income (Loss) [Line Items] | |||
Net unrealized loss on securities available-for-sale | $ (405) | $ (290) | $ (483) |
Net unrealized loss for unfunded status of defined benefit plan liability | (242) | (289) | (205) |
Accumulated other comprehensive income (Loss), before taxes, total | (647) | (579) | (688) |
Tax effect | 136 | 159 | 234 |
Net-of-tax amount | $ (511) | $ (420) | $ (454) |
Components of Provision for Inc
Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Taxes currently payable | $ 1,499 | $ 1,498 | |||||||||
Deferred income taxes | 545 | 82 | |||||||||
Income tax expense | $ 250 | $ 548 | $ 415 | $ 369 | $ 386 | $ 389 | $ 373 | $ 448 | $ 784 | $ 2,044 | $ 1,580 |
Repurchase Agreements - Additio
Repurchase Agreements - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Short-term Debt | $ 12,346 | $ 11,085 | $ 9,393 |
US Government Corporations and Agencies Securities | |||
Short-term Debt | $ 18,200 | $ 18,400 |
Repurchase Agreements (Detail)
Repurchase Agreements (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Secured Borrowings, Gross Including Not Subject to Master Netting Arrangement, Total | $ 12,346 | $ 11,085 | $ 9,393 |
Repurchase Agreements U.S. government agencies [Member] | |||
Secured Borrowings, Gross Including Not Subject to Master Netting Arrangement, Total | 12,346 | 11,085 | 9,393 |
Overnight and Continuous [Member] | |||
Secured Borrowings, Gross Including Not Subject to Master Netting Arrangement, Total | 12,346 | 11,085 | 9,393 |
Overnight and Continuous [Member] | Repurchase Agreements U.S. government agencies [Member] | |||
Secured Borrowings, Gross Including Not Subject to Master Netting Arrangement, Total | 12,346 | 11,085 | 9,393 |
Up to 30 Days [Member] | |||
Secured Borrowings, Gross Including Not Subject to Master Netting Arrangement, Total | 0 | 0 | 0 |
Up to 30 Days [Member] | Repurchase Agreements U.S. government agencies [Member] | |||
Secured Borrowings, Gross Including Not Subject to Master Netting Arrangement, Total | 0 | 0 | 0 |
30-90 Days [Member] | |||
Secured Borrowings, Gross Including Not Subject to Master Netting Arrangement, Total | 0 | 0 | 0 |
30-90 Days [Member] | Repurchase Agreements U.S. government agencies [Member] | |||
Secured Borrowings, Gross Including Not Subject to Master Netting Arrangement, Total | 0 | 0 | 0 |
Greater than 90 Days [Member] | |||
Secured Borrowings, Gross Including Not Subject to Master Netting Arrangement, Total | 0 | 0 | 0 |
Greater than 90 Days [Member] | Repurchase Agreements U.S. government agencies [Member] | |||
Secured Borrowings, Gross Including Not Subject to Master Netting Arrangement, Total | $ 0 | $ 0 | $ 0 |
Restriction on Cash and Due F73
Restriction on Cash and Due From Banks - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Cash Reserve Deposit Required and Made | $ 3.5 | $ 2.8 |
Premises and Equipment (Detail)
Premises and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 32,062 | $ 31,305 | |
Less accumulated depreciation | (20,322) | (19,421) | |
Net premises and equipment | $ 11,817 | 11,740 | 11,884 |
Land, buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 17,282 | 17,025 | |
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 12,637 | 12,164 | |
Computer software | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 2,143 | $ 2,116 |
Maturities of Time Deposits (De
Maturities of Time Deposits (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Banking and Thrift [Abstract] | |
2,018 | $ 33,954 |
2,019 | 14,364 |
2,020 | 12,473 |
2,021 | 2,176 |
2,022 | 758 |
Thereafter | 2,092 |
Time deposits maturities, after next twelve months | $ 65,817 |
Time Deposits - Additional Info
Time Deposits - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Banking and Thrift [Abstract] | ||
Time deposits, $250,000 or more | $ 5.1 | $ 1.4 |
Related Party Transactions (Det
Related Party Transactions (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Aggregate balance – January 1 | $ 13,635 | $ 10,546 |
New loans | 189 | 4,864 |
Repayments | (828) | (1,775) |
Aggregate balance – December 31 | $ 12,996 | $ 13,635 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Related Party Deposit Liabilities | $ 691,000 | $ 1,400,000 |
Subordinated Debentures - Addit
Subordinated Debentures - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2005USD ($) | |
Subordinated Borrowing [Line Items] | |
Proceeds from Issuance of Subordinated Long-term Debt | $ 4.1 |
Debt Instrument Maturity Date Year | 2035 years |
Mandatorily redeemable debt securities | $ 4.1 |
Subordinated debenture variable interest rate | 1.35% |
Information About the Plan's Fu
Information About the Plan's Funded Status and Pension Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in benefit obligation | ||||||||
Beginning of year | $ (4,672) | $ (3,926) | $ (3,926) | $ (3,968) | ||||
Service cost | $ (76) | $ (68) | (152) | (136) | (273) | (312) | ||
Interest cost | $ (55) | (50) | $ (110) | (100) | (198) | (198) | ||
Actuarial (loss) gain | (403) | 23 | ||||||
Benefits paid | 128 | 529 | ||||||
End of year | (4,672) | (3,926) | ||||||
Change in fair value of plan assets | ||||||||
Beginning of year | 199 | 199 | 5,605 | 4,625 | $ 5,605 | $ 4,625 | ||
Actual return on plan assets | 702 | 382 | ||||||
Employer contribution | 406 | 314 | ||||||
Benefits paid | (128) | (529) | ||||||
End of year | $ 199 | $ 199 | $ 5,605 | $ 4,625 | ||||
Funded status at end of year | $ 933 | $ 699 |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Unamortized net loss | $ 1,048 | $ 1,052 |
Unamortized prior service | (758) | (847) |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | $ 290 | $ 205 |
Information For the Pension Pla
Information For the Pension Plan With Respect To Accumulated Benefit Obligation and Plan Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Projected benefit obligation | $ 4,672 | $ 3,926 |
Accumulated benefit obligation | 4,375 | 3,756 |
Fair value of plan assets | $ 5,605 | $ 4,625 |
Summary of Significant Assumpti
Summary of Significant Assumptions (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted-average assumptions used to determine benefit obligation: | ||
Discount rate | 4.83% | 5.39% |
Rate of compensation increase | 3.00% | 3.00% |
Weighted-average assumptions used to determine benefit cost: | ||
Discount rate | 4.83% | 5.39% |
Expected return on plan assets | 7.50% | 7.50% |
Rate of compensation increase | 3.00% | 3.00% |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income | $ 1,212,000 | $ 1,000,000 | $ 916,000 | $ 850,000 | $ 928,000 | $ 907,000 | $ 845,000 | $ 2,360,000 | $ 1,766,000 | $ 3,546,000 | $ 3,580,000 |
Dividends on non-vested restricted stock | (27,000) | (9,000) | (53,000) | (17,000) | (31) | (31) | |||||
Net income allocated to stockholders | $ 1,185,000 | $ 907,000 | $ 2,307,000 | $ 1,749,000 | $ 3,515,000 | $ 3,549,000 | |||||
Basic earnings per share | |||||||||||
Income available to common stockholders | 4,990,904 | 4,847,884 | 4,986,290 | 4,839,725 | 4,861,942 | 4,907,799 | |||||
Income available to common stockholders, Per Share Amount | $ 0.24 | $ 0.20 | $ 0.18 | $ 0.17 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.46 | $ 0.35 | $ 0.72 | $ 0.72 |
Dilutive Securities, Effect on Basic Earnings Per Share [Abstract] | |||||||||||
Restricted stock awards | 226,030 | 119,102 | 224,998 | 119,102 | 123,857 | 108,521 | |||||
Earnings Per Share, Diluted [Abstract] | |||||||||||
Income available to common stockholders and assumed conversions | $ 3,515,000 | $ 3,549,000 | |||||||||
Income available to common stockholders and assumed conversions, Weighted Average Shares | 5,216,934 | 4,966,986 | 5,211,288 | 4,958,827 | 4,985,799 | 5,016,320 | |||||
Income available to common stockholders and assumed conversions, Per Share Amount | $ 0.22 | $ 0.20 | $ 0.18 | $ 0.17 | $ 0.18 | $ 0.18 | $ 0.17 | $ 0.44 | $ 0.35 | $ 0.71 | $ 0.71 |
Summary of Benefit Payments (De
Summary of Benefit Payments (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
2,018 | $ 186 |
2,019 | 199 |
2,020 | 843 |
2,021 | 548 |
2,022 | 373 |
2023-2027 | 1,796 |
Total | $ 3,945 |
Target Asset Allocation Percent
Target Asset Allocation Percentages (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Large-Cap stocks | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | Not to exceed 68% | Not to exceed 68% |
Small-Cap stocks | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | Not to exceed 23% | Not to exceed 23% |
Mid-Cap stocks | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | Not to exceed 23% | Not to exceed 23% |
International equity securities | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | Not to exceed 30% | Not to exceed 30% |
Fixed income investments | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | Not to exceed 35% | Not to exceed 35% |
Alternative investments | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | Not to exceed 19% | Not to exceed 19% |
Investment of Fair Value of Pla
Investment of Fair Value of Plan Assets as a Percentage of the Total (Detail) | Dec. 31, 2017 | Dec. 31, 2016 |
Fair value of plan assets as a percentage of the total was invested | 100.00% | 100.00% |
Equity securities | ||
Fair value of plan assets as a percentage of the total was invested | 70.10% | 68.10% |
Debt securities | ||
Fair value of plan assets as a percentage of the total was invested | 27.30% | 29.60% |
Cash and cash equivalents | ||
Fair value of plan assets as a percentage of the total was invested | 2.60% | 2.30% |
Fair Values of Company's Pensio
Fair Values of Company's Pension Plan By Asset Category (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 5,605 | $ 199 | $ 4,625 |
Fair Value, Inputs, Level 1 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 5,605 | 4,625 | |
Fair Value, Inputs, Level 2 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Mutual money market | Fair Value, Inputs, Level 1 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 106 | ||
Mutual money market | Fair Value, Inputs, Level 2 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
Mutual money market | Fair Value, Inputs, Level 3 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
ETF mutual funds | Fair Value, Inputs, Level 1 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 3,042 | 2,561 | |
ETF mutual funds | Fair Value, Inputs, Level 2 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
ETF mutual funds | Fair Value, Inputs, Level 3 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Large and small Cap | Fair Value, Inputs, Level 1 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 301 | 584 | |
Large and small Cap | Fair Value, Inputs, Level 2 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Large and small Cap | Fair Value, Inputs, Level 3 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Fair Value, Inputs, Level 1 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 420 | ||
International | Fair Value, Inputs, Level 2 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
International | Fair Value, Inputs, Level 3 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
Commodities | Fair Value, Inputs, Level 1 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 182 | 140 | |
Commodities | Fair Value, Inputs, Level 2 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Commodities | Fair Value, Inputs, Level 3 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Fixed income | Fair Value, Inputs, Level 1 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1,145 | 1,022 | |
Fixed income | Fair Value, Inputs, Level 2 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Fixed income | Fair Value, Inputs, Level 3 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
ETF fixed income | Fair Value, Inputs, Level 1 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 316 | 212 | |
ETF fixed income | Fair Value, Inputs, Level 2 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
ETF fixed income | Fair Value, Inputs, Level 3 [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Total Fair Value [Member] | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 5,605 | 4,625 | |
Total Fair Value [Member] | Mutual money market | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 199 | 106 | |
Total Fair Value [Member] | ETF mutual funds | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 3,042 | 2,561 | |
Total Fair Value [Member] | Large and small Cap | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 301 | 584 | |
Total Fair Value [Member] | International | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 420 | ||
Total Fair Value [Member] | Commodities | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 182 | 140 | |
Total Fair Value [Member] | Fixed income | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1,145 | 1,022 | |
Total Fair Value [Member] | ETF fixed income | |||
Schedule Of Fair Value Of Plan Assets [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 316 | $ 212 |
Reconciliation of Income Tax Ex
Reconciliation of Income Tax Expense at the Statutory Rate to the Company's Actual Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Computed at the statutory rate (34%) | $ 1,901 | $ 1,755 | |||||||||
(Decrease) increase resulting from Tax exempt interest | (17) | (42) | |||||||||
Earnings on bank-owned life insurance - net | (160) | (160) | |||||||||
Deferred tax re-valuation | 216 | 0 | |||||||||
Other | 104 | 27 | |||||||||
Actual tax expense | $ 250 | $ 548 | $ 415 | $ 369 | $ 386 | $ 389 | $ 373 | $ 448 | $ 784 | $ 2,044 | $ 1,580 |
Tax Effects of Temporary Differ
Tax Effects of Temporary Differences Related to Deferred Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets | ||
Allowance for loan losses | $ 244 | $ 382 |
Stock based compensation | 221 | 375 |
Allowance for losses on foreclosed real estate | 31 | 82 |
Deferred compensation and ESOP | 422 | 690 |
Intangible assets | 65 | 124 |
Non-accrual loan interest | 52 | 79 |
Unrealized losses on securities available for sale | 61 | 164 |
Total deferred tax assets | 1,096 | 1,896 |
Deferred tax liabilities | ||
Depreciation | (144) | (199) |
Deferred loan costs, net | (86) | (158) |
Accretion | 0 | (1) |
FHLB stock dividends | (315) | (510) |
Mortgage servicing rights | (9) | (16) |
Employee benefit expense | (193) | (162) |
Total deferred tax liabilities | (747) | (1,046) |
Net deferred tax asset | $ 349 | $ 850 |
Restricted Stock Plan - Additio
Restricted Stock Plan - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2008 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee | 25,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 9 years 3 months | ||
Share Based Compensation Arrangement By Share Based Payment Award Contractual Period | 9 years 6 months | ||
Allocated Share-based Compensation Expense | $ 163,000 | $ 147,000 | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 55,000 | 50,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 728,000 | $ 660,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 8 months 12 days | ||
Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 500,000 | ||
Restricted Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award Contractual Period | 9 years 6 months |
Summarized status of Company's
Summarized status of Company's nonvested restricted shares (Detail) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Shares | |
Nonvested, beginning of year | shares | 170,000 |
Granted | shares | 10,000 |
Vested | shares | (5,000) |
Forfeited | shares | 0 |
Nonvested, end of year | shares | 175,000 |
Weighted - Average Grant-Date Fair Value | |
Nonvested, beginning of year | $ / shares | $ 8.75 |
Granted | $ / shares | 11.99 |
Vested | $ / shares | 8.40 |
Forfeited | $ / shares | 0 |
Nonvested, end of year | $ / shares | $ 8.95 |
Share Information for the ESOP
Share Information for the ESOP (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Allocated shares at beginning of the year | 333,790 | 267,558 |
Shares released for allocation during the year | 23,635 | 23,635 |
Net shares acquired on reinvestment of cash or (distributed) due to retirement/diversification | (21,063) | 42,597 |
Unearned shares | 70,906 | 94,541 |
Total ESOP shares | 407,268 | 428,331 |
Fair value of unearned shares at December 31st | $ 943,000 | $ 1,276,000 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Purchased for Award | 354,551 | |
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 9.64 | |
Stockholders' Equity, Period Increase (Decrease) | $ 3,400 | |
Amortization Stock Based Compensation | $ 280 | $ 231 |
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares | 333,790 | 267,558 |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 406 | $ 314 |
Defined Benefit Plan, Expected Amortization, Next Fiscal Year | 41 | |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Accumulated Benefit Obligation | 4,375 | 3,756 |
Employee Stock Option | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 4,474 | |
Defined benefit postretirement life insurance | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 421 | |
Defined Benefit Plan, Accumulated Benefit Obligation | $ 1,500 | $ 1,500 |
Advances of Federal Home Loan B
Advances of Federal Home Loan Bank (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Short-term Debt [Line Items] | ||
Advances from Federal Home Loan Banks | $ 10,022 | $ 39,855 |
Federal Home Loan Bank Advances [Member] | ||
Short-term Debt [Line Items] | ||
Advances from Federal Home Loan Banks | 200 | 0 |
Federal Home Loan Bank Advances One [Member] | ||
Short-term Debt [Line Items] | ||
Advances from Federal Home Loan Banks | 9,822 | 0 |
Federal Home Loan Bank Advances Two [Member] | ||
Short-term Debt [Line Items] | ||
Advances from Federal Home Loan Banks | 0 | 19,500 |
Federal Home Loan Bank Advances Three [Member] | ||
Short-term Debt [Line Items] | ||
Advances from Federal Home Loan Banks | $ 0 | $ 20,355 |
Annual Principal Payments on Fe
Annual Principal Payments on Federal Home Loan Bank Advances (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Short-term Debt [Line Items] | |||
2,018 | $ 9,919 | ||
2,019 | 38 | ||
2,020 | 15 | ||
2,021 | 15 | ||
2,022 | 15 | ||
Thereafter | 20 | ||
Federal Home Loan Bank advances | $ 33,768 | $ 10,022 | $ 39,855 |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2018 | |
Short-term Debt [Line Items] | |||
Balance outstanding at year end | $ 11,085 | $ 9,393 | $ 12,346 |
Average daily balance during the year | $ 13,578 | $ 11,058 | |
Average interest rate during the year | 0.28% | 0.12% | |
Maximum month-end balance during the year | $ 17,033 | $ 14,200 | |
Weighted-average interest rate at year end | 0.28% | 0.12% |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Short-term Debt [Line Items] | |||
Federal Home Loan Bank Additional Borrowings Capacity | $ 94,100 | $ 60,800 | |
Loans Pledged as Collateral | 121,600 | 122,600 | |
Cash Management Lines OfCredit Additional Borrowings | 15,000 | ||
Securities Sold under Agreements to Repurchase | $ 12,346 | 11,085 | 9,393 |
Security Owned and Pledged as Collateral, Fair Value | $ 18,400 | $ 13,000 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 5.15% | ||
Maximum [Member] | Federal Home Loan Bank Advances [Member] | |||
Short-term Debt [Line Items] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 6.65% | ||
Maximum [Member] | Federal Home Loan Bank Advances Three Member [Member] | |||
Short-term Debt [Line Items] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 6.65% | ||
Minimum [Member] | Federal Home Loan Bank Advances [Member] | |||
Short-term Debt [Line Items] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 3.15% | ||
Minimum [Member] | Federal Home Loan Bank Advances Three Member [Member] | |||
Short-term Debt [Line Items] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 3.08% | ||
Weighted Average [Member] | Federal Home Loan Bank Advances One Member [Member] | |||
Short-term Debt [Line Items] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 1.52% | ||
Weighted Average [Member] | Federal Home Loan Bank Advances Two Member [Member] | |||
Short-term Debt [Line Items] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 0.74% | ||
Weighted Average [Member] | Federal Home Loan Bank Advances Three Member [Member] | |||
Short-term Debt [Line Items] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 3.93% |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Detail) | Dec. 31, 2017 | Dec. 31, 2016 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier One Risk Based Capital to Risk Weighted Assets | 11.50% | 12.90% |
Capital Conservation Buffer | 1.25% | |
US Government Debt Securities [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier One Risk Based Capital to Risk Weighted Assets | 0.00% | |
Equity Securities [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier One Risk Based Capital to Risk Weighted Assets | 600.00% | |
Consolidated Entities [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital to Risk Weighted Assets | 13.20% | 13.60% |
Tier One Risk Based Capital to Risk Weighted Assets | 12.60% | 11.80% |
Tier One Leverage Capital to Average Assets | 10.60% | 11.00% |
Common Equity [Member] | Consolidated Entities [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier One Risk Based Capital to Risk Weighted Assets | 11.50% |
Summary of Company's and Bank's
Summary of Company's and Bank's Actual Capital Amounts and Ratios (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Tier I Capital, Actual Amount | $ 46,088 | |
Tier I Capital, Actual Ratio | 11.50% | 12.90% |
Tier I Capital, For Capital Adequacy Purposes Amount | $ 21,387 | |
Tier I Capital, For Capital Adequacy Purposes Ratio | 4.50% | 6.00% |
Total Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 6.50% | |
Consolidated Entities [Member] | ||
Total Capital, Actual Amount | $ 49,590 | $ 48,429 |
Total Capital, Actual Ratio | 13.20% | 13.60% |
Total Capital, For Capital Adequacy Purposes Amount | $ 30,149 | $ 28,516 |
Total Capital, For Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Tier I Capital, Actual Amount | $ 47,468 | $ 42,088 |
Tier I Capital, Actual Ratio | 12.60% | 11.80% |
Tier I Capital, For Capital Adequacy Purposes Amount | $ 22,612 | $ 16,040 |
Tier I Capital, For Capital Adequacy Purposes Ratio | 6.00% | 4.50% |
Tier I Capital (to Average Assets), Actual Amount | $ 47,468 | $ 46,088 |
Tier I Capital (to Average Assets), Actual Ratio | 10.60% | 11.00% |
Tier I Capital (to Average Assets), For Capital Adequacy Purposes Amount | $ 17,904 | $ 16,729 |
Tier I Capital (to Average Assets), For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Common Equity [Member] | Consolidated Entities [Member] | ||
Tier I Capital, Actual Amount | $ 43,468 | |
Tier I Capital, Actual Ratio | 11.50% | |
Tier I Capital, For Capital Adequacy Purposes Amount | $ 16,959 | |
Citizens [Member] | ||
Total Capital, Actual Amount | $ 44,637 | $ 41,801 |
Total Capital, Actual Ratio | 11.90% | 11.80% |
Total Capital, For Capital Adequacy Purposes Amount | $ 30,026 | $ 28,382 |
Total Capital, For Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Total Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 37,532 | $ 35,478 |
Total Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% |
Tier I Capital, Actual Amount | $ 42,515 | $ 39,460 |
Tier I Capital, Actual Ratio | 11.30% | 11.10% |
Tier I Capital, For Capital Adequacy Purposes Amount | $ 22,519 | $ 15,965 |
Tier I Capital, For Capital Adequacy Purposes Ratio | 6.00% | 4.50% |
Total Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 30,026 | $ 23,061 |
Total Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 8.00% | 6.50% |
Tier I Capital (to Average Assets), Actual Amount | $ 42,515 | $ 39,460 |
Tier I Capital (to Average Assets), Actual Ratio | 9.40% | 9.30% |
Tier I Capital (to Average Assets), For Capital Adequacy Purposes Amount | $ 18,017 | $ 17,048 |
Tier I Capital (to Average Assets), For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier I Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 22,521 | $ 21,310 |
Tier I Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% |
Citizens [Member] | Common Equity [Member] | ||
Tier I Capital, Actual Amount | $ 42,515 | $ 39,460 |
Tier I Capital, Actual Ratio | 11.10% | |
Tier I Capital, For Capital Adequacy Purposes Amount | 16,889 | $ 21,287 |
Tier I Capital, For Capital Adequacy Purposes Ratio | 6.00% | |
Total Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 24,396 | $ 28,382 |
Total Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 8.00% |
Fair Value Measurements of Asse
Fair Value Measurements of Assets Recognized in Consolidated Balance Sheets Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | $ 336 | $ 3,435 | |
Foreclosed assets held for sale | 34 | 249 | |
Fair Value, Inputs, Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 0 | 0 | |
Foreclosed assets held for sale | 0 | 0 | |
Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 0 | 0 | |
Foreclosed assets held for sale | 0 | 0 | |
Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 336 | 3,435 | |
Foreclosed assets held for sale | 34 | $ 249 | |
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | $ 334 | 336 | |
Foreclosed assets held for sale | 250 | 34 | |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 0 | 0 | |
Foreclosed assets held for sale | 0 | 0 | |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 0 | 0 | |
Foreclosed assets held for sale | 0 | 0 | |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 334 | 336 | |
Foreclosed assets held for sale | $ 250 | $ 34 |
Fair Value Measurements of A102
Fair Value Measurements of Assets Recognized in Consolidated Balance Sheets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of asset, recurring basis | $ 0 | ||
U.S. government agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of asset, recurring basis | 44,959 | $ 38,514 | |
State and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of asset, recurring basis | 1,252 | ||
Fair Value, Measurements, Recurring | U.S. government agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of asset, recurring basis | $ 44,581 | 44,959 | |
Fair Value, Measurements, Recurring | State and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of asset, recurring basis | 41,631 | ||
Fair Value, Inputs, Level 1 | U.S. government agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of asset, recurring basis | 0 | ||
Fair Value, Inputs, Level 1 | State and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of asset, recurring basis | 0 | ||
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | U.S. government agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of asset, recurring basis | 0 | 0 | |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | State and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of asset, recurring basis | 0 | ||
Fair Value, Inputs, Level 2 | U.S. government agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of asset, recurring basis | 44,959 | 38,514 | |
Fair Value, Inputs, Level 2 | State and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of asset, recurring basis | 1,252 | ||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | U.S. government agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of asset, recurring basis | 44,581 | 44,959 | |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | State and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of asset, recurring basis | 41,631 | ||
Fair Value, Inputs, Level 3 | U.S. government agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of asset, recurring basis | 0 | 0 | |
Fair Value, Inputs, Level 3 | State and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of asset, recurring basis | $ 0 | ||
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | U.S. government agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of asset, recurring basis | 0 | $ 0 | |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | State and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of asset, recurring basis | $ 0 |
Quantitative Information About
Quantitative Information About Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Range | 10.00% | ||
Collateral-dependent impaired loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 333 | $ 3,435 | |
Valuation Technique | Market comparable properties | Market comparable properties | |
Unobservable Inputs | Comparability adjustments | Comparability adjustments | |
Collateral-dependent impaired loans | Market comparable properties [Member] | Marketability discount [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 334 | $ 336 | |
Collateral-dependent impaired loans | Maximum | Market comparable properties [Member] | Marketability discount [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Range | 25.00% | 25.00% | |
Collateral-dependent impaired loans | Minimum | Market comparable properties [Member] | Marketability discount [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Range | 10.00% | 10.00% | |
Foreclosed assets held for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 34 | $ 249 | |
Valuation Technique | Market comparable properties | Market comparable properties | |
Unobservable Inputs | Marketability discount | Marketability discount | |
Foreclosed assets held for sale | Market comparable properties [Member] | Selling costs [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 250 | $ 34 | |
Foreclosed assets held for sale | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Range | 35.00% | 35.00% | |
Foreclosed assets held for sale | Maximum | Market comparable properties [Member] | Selling costs [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Range | 35.00% | 35.00% | |
Foreclosed assets held for sale | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Range | 10.00% | ||
Foreclosed assets held for sale | Minimum | Market comparable properties [Member] | Selling costs [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Range | 10.00% | 10.00% |
Estimated Fair Values of Compan
Estimated Fair Values of Company's Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financial assets | |||||
Cash and cash equivalents | $ 16,308 | $ 14,315 | $ 20,784 | $ 11,541 | $ 12,701 |
Loans, net of allowance | 377,433 | 366,467 | 354,380 | ||
Federal Home Loan Bank stock | 4,164 | 4,164 | 4,164 | ||
Accrued interest receivable | 1,275 | 993 | 840 | ||
Financial liabilities | |||||
Deposits | 415,634 | 385,966 | 338,803 | ||
Short term borrowings | 12,346 | 11,085 | 9,393 | ||
Federal Home Loan Bank Advances | 33,768 | 10,022 | 39,855 | ||
Subordinated debentures | 4,124 | 4,124 | 4,124 | ||
Interest payable | 122 | 70 | 111 | ||
Fair Value, Inputs, Level 1 | |||||
Financial assets | |||||
Cash and cash equivalents | 16,308 | 14,315 | 11,541 | ||
Loans, net of allowance | 0 | 0 | 0 | ||
Federal Home Loan Bank stock | 0 | 0 | 0 | ||
Accrued interest receivable | 0 | 0 | |||
Financial liabilities | |||||
Deposits | 0 | 0 | 0 | ||
Short term borrowings | 0 | 0 | 0 | ||
Federal Home Loan Bank Advances | 0 | 0 | 0 | ||
Subordinated debentures | 0 | 0 | 0 | ||
Interest payable | 0 | 0 | |||
Fair Value, Inputs, Level 2 | |||||
Financial assets | |||||
Cash and cash equivalents | 0 | 0 | 0 | ||
Loans, net of allowance | 0 | 0 | 0 | ||
Federal Home Loan Bank stock | 4,164 | 4,164 | 4,164 | ||
Accrued interest receivable | 1,275 | 993 | 840 | ||
Financial liabilities | |||||
Deposits | 354,553 | 358,722 | 312,240 | ||
Short term borrowings | 12,346 | 11,085 | 9,393 | ||
Federal Home Loan Bank Advances | 33,762 | 10,012 | 40,120 | ||
Subordinated debentures | 3,733 | 3,590 | 3,435 | ||
Interest payable | 122 | 70 | 111 | ||
Fair Value, Inputs, Level 3 | |||||
Financial assets | |||||
Cash and cash equivalents | 0 | 0 | 0 | ||
Loans, net of allowance | 373,437 | 368,033 | 355,753 | ||
Federal Home Loan Bank stock | 0 | 0 | 0 | ||
Accrued interest receivable | 0 | 0 | 0 | ||
Financial liabilities | |||||
Deposits | 0 | 0 | 0 | ||
Short term borrowings | 0 | 0 | 0 | ||
Federal Home Loan Bank Advances | 0 | 0 | 0 | ||
Subordinated debentures | 0 | 0 | 0 | ||
Interest payable | $ 0 | $ 0 | $ 0 |
Commitments and Credit Risk - A
Commitments and Credit Risk - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Loans and Leases Receivable, Commitments, Variable Rates | $ 15.4 | $ 12.3 |
Commercial Real Estate Other Receivable | ||
Concentration Risk Percentage Credit Risk Loan Products | 76.00% | 74.60% |
Installment Loans | ||
Concentration Risk Percentage Credit Risk Loan Products | 3.40% | 4.00% |
Real Estate Loans | ||
Concentration Risk Percentage Credit Risk Loan Products | 20.60% | 21.40% |
Deposits With Federal Reserve Bank Of Cleveland | $ 9.5 | $ 7.3 |
Commercial Line | ||
Lines Of Credit Granted | 25.8 | 20.9 |
Consumer Lines | ||
Lines Of Credit Granted | $ 36.9 | $ 35.6 |
Maximum [Member] | ||
Time To Fund Mortgage Loan | 90 days | |
Minimum [Member] | ||
Time To Fund Mortgage Loan | 60 days |
Condensed Balance Sheets (Detai
Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | |||||
Cash and cash equivalents | $ 16,308 | $ 14,315 | $ 20,784 | $ 11,541 | $ 12,701 |
Corporate owned life insurance | 12,263 | 12,114 | 11,822 | ||
Other assets | 4,219 | 3,834 | 2,436 | ||
Total assets | 514,801 | 459,332 | 438,018 | ||
Liabilities and Stockholders' Equity | |||||
Subordinated debentures | 4,124 | 4,124 | 4,124 | ||
Stockholders' equity | 44,985 | 43,895 | 42,641 | 41,496 | |
Total liabilities and stockholders' equity | $ 514,801 | 459,332 | 438,018 | ||
Parent Company [Member] | |||||
Assets | |||||
Cash and cash equivalents | 2,771 | 4,644 | $ 3,455 | ||
Investment in the Bank | 42,286 | 39,141 | |||
Corporate owned life insurance | 0 | 7 | |||
Other assets | 3,042 | 2,973 | |||
Total assets | 48,099 | 46,765 | |||
Liabilities and Stockholders' Equity | |||||
Subordinated debentures | 4,124 | 4,124 | |||
Other liabilities | 80 | 0 | |||
Stockholders' equity | 43,895 | 42,641 | |||
Total liabilities and stockholders' equity | $ 48,099 | $ 46,765 |
Condensed Statements of Income
Condensed Statements of Income and Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Income | |||||||||||
General, administrative and other expense | $ 3,456 | $ 3,365 | $ 3,334 | $ 3,345 | $ 3,251 | $ 3,141 | $ 3,494 | $ 3,333 | |||
Income Before Income Taxes and Equity in Undistributed Income of Subsidiary | $ 1,462 | 1,548 | 1,331 | 1,219 | 1,314 | 1,296 | 1,218 | $ 2,808 | $ 2,550 | 5,590 | 5,160 |
Income Tax Benefits | (250) | (548) | (415) | (369) | (386) | (389) | (373) | (448) | (784) | (2,044) | (1,580) |
Net Income | 1,212 | $ 1,000 | 916 | $ 850 | $ 928 | $ 907 | $ 845 | 2,360 | 1,766 | 3,546 | 3,580 |
Comprehensive Income | $ 1,291 | $ 1,009 | $ 2,269 | $ 2,014 | 3,580 | 3,307 | |||||
Parent Company [Member] | |||||||||||
Operating Income | |||||||||||
Dividends from subsidiary | 2,035 | 4,701 | |||||||||
Interest and dividend income from securities and federal funds | 1 | 7 | |||||||||
Total operating income | 2,036 | 4,708 | |||||||||
General, administrative and other expense | 1,961 | 1,651 | |||||||||
Income Before Income Taxes and Equity in Undistributed Income of Subsidiary | 75 | 3,057 | |||||||||
Income Tax Benefits | 416 | 484 | |||||||||
Income Before Equity in Undistributed Income of Subsidiary | 491 | 3,541 | |||||||||
Equity in Undistributed Income of Subsidiary | 3,055 | 39 | |||||||||
Net Income | 3,546 | 3,580 | |||||||||
Comprehensive Income | $ 3,578 | $ 3,307 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities | |||||||||||
Net income | $ 1,212 | $ 1,000 | $ 916 | $ 850 | $ 928 | $ 907 | $ 845 | $ 2,360 | $ 1,766 | $ 3,546 | $ 3,580 |
Items not requiring (providing) cash | |||||||||||
Amortization of ESOP and share-based compensation plans | (124) | (52) | (163) | (147) | |||||||
Net change in other assets and other liabilities | 2,010 | 1,343 | 4,567 | 4,177 | |||||||
Financing Activities | |||||||||||
Dividends paid to stockholders | 2,769 | 2,540 | |||||||||
Net cash used in financing activities | 53,232 | 7,946 | 16,253 | 29,667 | |||||||
Net Change in Cash and Cash Equivalents | 1,993 | 9,243 | 2,774 | (1,160) | |||||||
Cash and Cash Equivalents, Beginning of Period | $ 20,784 | 11,541 | 12,701 | 14,315 | 11,541 | 11,541 | 12,701 | ||||
Cash and Cash Equivalents, End of Period | $ 16,308 | $ 20,784 | 16,308 | 20,784 | 14,315 | 11,541 | |||||
Parent Company [Member] | |||||||||||
Operating Activities | |||||||||||
Net income | 3,546 | 3,580 | |||||||||
Items not requiring (providing) cash | |||||||||||
Equity in undistributed income of subsidiary | 3,055 | 39 | |||||||||
Amortization of ESOP and share-based compensation plans | 443 | 378 | |||||||||
Net change in other assets and other liabilities | (38) | (190) | |||||||||
Net cash provided by operating activities | 896 | 3,729 | |||||||||
Financing Activities | |||||||||||
Dividends paid to stockholders | (2,769) | (2,540) | |||||||||
Net cash used in financing activities | (2,769) | (2,540) | |||||||||
Net Change in Cash and Cash Equivalents | (1,873) | 1,189 | |||||||||
Cash and Cash Equivalents, Beginning of Period | $ 4,644 | $ 3,455 | $ 2,771 | $ 4,644 | 4,644 | 3,455 | |||||
Cash and Cash Equivalents, End of Period | $ 2,771 | $ 4,644 |
Summarize the Company's Quarter
Summarize the Company's Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total interest income | $ 4,586 | $ 4,290 | $ 4,184 | $ 4,166 | $ 4,187 | $ 4,038 | $ 4,591 | $ 4,244 | |||
Total interest expense | $ 707 | 449 | 438 | 438 | 432 | 437 | 475 | $ 1,230 | $ 876 | 1,764 | 1,784 |
Net interest income | 4,400 | 4,137 | 3,852 | 3,746 | 3,734 | 3,750 | 3,563 | 8,502 | 7,598 | 15,887 | 14,851 |
Provision for loan losses | 72 | 25 | 25 | 25 | 131 | 105 | 71 | 129 | 50 | 100 | 301 |
Other income | 215 | 892 | 208 | 832 | 1,056 | 902 | 867 | 450 | 428 | 381 | 527 |
General, administrative and other expense | 3,456 | 3,365 | 3,334 | 3,345 | 3,251 | 3,141 | 3,494 | 3,333 | |||
Income before income taxes | 1,462 | 1,548 | 1,331 | 1,219 | 1,314 | 1,296 | 1,218 | 2,808 | 2,550 | 5,590 | 5,160 |
Federal income taxes | 250 | 548 | 415 | 369 | 386 | 389 | 373 | 448 | 784 | 2,044 | 1,580 |
Net income | $ 1,212 | $ 1,000 | $ 916 | $ 850 | $ 928 | $ 907 | $ 845 | $ 2,360 | $ 1,766 | $ 3,546 | $ 3,580 |
Earnings per share | |||||||||||
Basic | $ 0.24 | $ 0.20 | $ 0.18 | $ 0.17 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.46 | $ 0.35 | $ 0.72 | $ 0.72 |
Diluted | $ 0.22 | $ 0.20 | $ 0.18 | $ 0.17 | $ 0.18 | $ 0.18 | $ 0.17 | $ 0.44 | $ 0.35 | $ 0.71 | $ 0.71 |