Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 01, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity Registrant Name | Standard AVB Financial Corp. | ||
Trading Symbol | stnd | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 4,700,054 | ||
Entity Public Float | $ 130.9 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Central Index Key | 0001492915 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash on hand and due from banks | $ 3,396 | $ 3,371 |
Interest-earning deposits in other institutions | 29,031 | 12,836 |
Cash and Cash Equivalents | 32,427 | 16,207 |
Investment securities available for sale, at fair value | 69,884 | 66,169 |
Equity securities, at fair value | 2,955 | 2,725 |
Mortgage-backed securities available for sale, at fair value | 91,478 | 81,794 |
Certificate of deposit | 249 | 249 |
Federal Home Loan Bank and other restricted stock, at cost | 7,486 | 7,900 |
Loans receivable, net of allowance for loan losses of $4,882 and $4,414 | 712,965 | 728,982 |
Loans held for sale | 373 | |
Foreclosed real estate | 404 | 486 |
Office properties and equipment, net | 9,930 | 7,794 |
Bank-owned life insurance | 23,374 | 22,572 |
Goodwill | 25,836 | 25,836 |
Core deposit intangible | 1,881 | 2,508 |
Accrued interest receivable and other assets | 5,145 | 8,574 |
TOTAL ASSETS | 984,387 | 971,796 |
Deposits: | ||
Demand and savings accounts | 489,292 | 471,177 |
Time Deposits | 245,114 | 246,697 |
Total Deposits | 734,406 | 717,874 |
Federal Home Loan Bank short-term borrowings | 0 | 4,524 |
Long-term borrowings | 99,098 | 104,963 |
Securities sold under agreements to repurchase | 3,740 | 2,137 |
Advance deposits by borrowers for taxes and insurance | 47 | 45 |
Accrued interest payable and other liabilities | 5,248 | 4,363 |
TOTAL LIABILITIES | 842,539 | 833,906 |
Stockholders' Equity | ||
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized, none issued | ||
Common stock, $0.01 par value per share, 40,000,000 shares authorized, 4,689,354 and 4,812,991 shares outstanding, respectively | 47 | 48 |
Additional paid-in-capital | 72,155 | 75,571 |
Retained earnings | 70,037 | 65,301 |
Unearned Employee Stock Ownership Plan (ESOP) shares | (1,533) | (1,686) |
Accumulated other comprehensive income (loss) | 1,142 | (1,344) |
TOTAL STOCKHOLDERS' EQUITY | 141,848 | 137,890 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 984,387 | $ 971,796 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Consolidated Statements of Financial Condition | ||
Allowance for loan losses, loans receivable (in dollars) | $ 4,882 | $ 4,414 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares outstanding | 4,689,354 | 4,812,991 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interest and Dividend Income | ||
Loans, including fees | $ 32,487,000 | $ 32,033,000 |
Mortgage-backed securities | 2,183,000 | 1,999,000 |
Investments: | ||
Taxable | 464,000 | 420,000 |
Tax-exempt | 1,580,000 | 1,431,000 |
Federal Home Loan Bank and other restricted stock | 618,000 | 590,000 |
Interest-earning deposits and federal funds sold | 372,000 | 322,000 |
Total Interest and Dividend Income | 37,704,000 | 36,795,000 |
Interest Expense | ||
Deposits | 6,991,000 | 4,961,000 |
Federal Home Loan Bank short-term borrowings | 45,000 | 227,000 |
Long-term borrowings | 2,209,000 | 2,255,000 |
Securities sold under agreements to repurchase | 17,000 | 11,000 |
Total Interest Expense | 9,262,000 | 7,454,000 |
Net Interest Income | 28,442,000 | 29,341,000 |
Provision for Loan Losses | 725,000 | 572,000 |
Net Interest Income after Provision for Loan Losses | 27,717,000 | 28,769,000 |
Noninterest Income | ||
Earnings on bank-owned life insurance | 537,000 | 533,000 |
Net losses on sales of securities | (1,000) | (17,000) |
Net gains on sales of equities | 0 | 394,000 |
Net equity securities fair value adjustment gains (losses) | 230,000 | (484,000) |
Net loan sale gains and referral fees | 273,000 | 71,000 |
Other income | 272,000 | 236,000 |
Total Noninterest Income | 5,052,000 | 4,347,000 |
Noninterest Expenses | ||
Compensation and employee benefits | 12,812,000 | 12,418,000 |
Data processing | 717,000 | 644,000 |
Premises and occupancy costs | 2,427,000 | 2,637,000 |
Automatic teller machine expense | 595,000 | 512,000 |
Federal deposit insurance | 105,000 | 293,000 |
Core deposit amortization | 627,000 | 836,000 |
Other operating expenses | 4,342,000 | 4,727,000 |
Total Noninterest Expenses | 21,625,000 | 22,067,000 |
Income before Income Tax Expense | 11,144,000 | 11,049,000 |
Income Tax Expense | ||
Federal | 1,704,000 | 1,713,000 |
State | 634,000 | 535,000 |
Total Income Tax Expense | 2,338,000 | 2,248,000 |
Net Income | $ 8,806,000 | $ 8,801,000 |
Earnings Per Share: | ||
Basic earnings per common share (in dollars per share) | $ 1.91 | $ 1.90 |
Diluted earnings per common share (in dollars per share) | 1.90 | 1.88 |
Cash dividends paid per common share (in dollars per share) | $ 0.88 | $ 0.88 |
Basic weighted average shares outstanding (in shares) | 4,606,457 | 4,634,003 |
Diluted weighted average shares outstanding (in shares) | 4,642,775 | 4,685,044 |
Service charges | ||
Noninterest Income | ||
Fees and commissions | $ 3,046,000 | $ 2,970,000 |
Investment management fees | ||
Noninterest Income | ||
Fees and commissions | $ 695,000 | $ 644,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements of Comprehensive Income | ||
Net Income | $ 8,806 | $ 8,801 |
Other comprehensive income (loss): | ||
Change in unrealized gain (loss) on securities available for sale | 3,151 | (1,949) |
Tax effect | (663) | 409 |
Reclassification adjustment for security losses realized in income | 1 | 17 |
Tax effect | 0 | (4) |
Change in pension obligation for defined benefit plan | (4) | 90 |
Tax effect | 1 | (19) |
Total other comprehensive (loss) income | 2,486 | (1,456) |
Total Comprehensive Income | $ 11,292 | $ 7,345 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Unearned ESOP Shares | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2017 | $ 48 | $ 75,063 | $ 60,172 | $ (1,839) | $ 528 | $ 133,972 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 8,801 | 8,801 | ||||
Other comprehensive loss | (1,456) | (1,456) | ||||
Change in accounting principle for adoption of ASU 2016-01 | 416 | (416) | ||||
Stock repurchases | (428) | (428) | ||||
Cash dividends | (4,088) | (4,088) | ||||
Stock options exercised | 648 | 648 | ||||
Compensation expense on stock awards | 1 | 1 | ||||
Compensation expense on ESOP | 287 | 153 | 440 | |||
Balance at Dec. 31, 2018 | 48 | 75,571 | 65,301 | (1,686) | (1,344) | 137,890 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 8,806 | 8,806 | ||||
Other comprehensive loss | 2,486 | 2,486 | ||||
Stock repurchases | (1) | (4,011) | (4,012) | |||
Cash dividends | (4,070) | (4,070) | ||||
Stock options exercised | 257 | 257 | ||||
Compensation expense on stock awards | 81 | 81 | ||||
Compensation expense on ESOP | 257 | 153 | 410 | |||
Balance at Dec. 31, 2019 | $ 47 | $ 72,155 | $ 70,037 | $ (1,533) | $ 1,142 | $ 141,848 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Stockholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statement of Changes in Stockholders' Equity | ||
Stock repurchases, shares | 147,098 | 13,482 |
Cash dividends paid per common share (in dollars per share) | $ 0.88 | $ 0.88 |
Number of stock options exercised | 18,914 | 35,536 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows From Operating Activities | ||
Net income | $ 8,806,000 | $ 8,801,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,940,000 | 1,352,000 |
Provision for loan losses | 725,000 | 572,000 |
Amortization of core deposit intangible | 627,000 | 836,000 |
Net loss on sale of securities available for sale | 1,000 | 17,000 |
Net gain on sale of equity securities | 0 | (394,000) |
Net gain on sale of office properties and equipment | (29,000) | |
Net equity securities fair value adjustment (gains) losses | (230,000) | 484,000 |
Origination of loans held for sale | (13,981,000) | (5,552,000) |
Proceeds from sale of loans held for sale | 13,784,000 | 5,623,000 |
Net loan sale gains | (273,000) | (71,000) |
Compensation expense on ESOP | 410,000 | 440,000 |
Compensation expense on stock awards | 81,000 | 1,000 |
Deferred income taxes | (80,000) | (288,000) |
Decrease (Increase) in accrued interest receivable | 29,000 | (166,000) |
Earnings on bank-owned life insurance | (537,000) | (533,000) |
(Decrease) increase in accrued interest payable | (144,000) | 161,000 |
Other, net | 3,250,000 | 1,350,000 |
Net Cash Provided by Operating Activities | 14,379,000 | 12,633,000 |
Cash Flows Used In Investing Activities | ||
Net decrease in loans | 15,230,000 | 14,077,000 |
Purchases of investment securities | (13,138,000) | (11,699,000) |
Purchases of equity securities | (546,000) | |
Purchases of mortgage-backed securities | (30,351,000) | (27,985,000) |
Proceeds from maturities of certificates of deposits | 500,000 | |
Proceeds from maturities/principal repayments/calls of investment securities | 5,315,000 | 1,335,000 |
Proceeds from maturities/principal repayments/calls of mortgage-backed securities | 20,252,000 | 12,046,000 |
Proceeds from sales of investment securities | 6,328,000 | 4,830,000 |
Proceeds from sales of equity securities | 1,900,000 | |
Proceeds from sales of mortgage-backed securities | 1,286,000 | |
Purchase of Federal Home Loan Bank stock | (3,137,000) | (3,532,000) |
Redemption of Federal Home Loan Bank stock | 3,551,000 | 5,173,000 |
Proceeds from sales of foreclosed real estate | 83,000 | 450,000 |
Purchase of bank-owned life insurance | (265,000) | |
Proceeds from sales of office properties and equipment | 997,000 | |
Net additions of office properties and equipment | (734,000) | (374,000) |
Net Cash Provided by (Used in) Investing Activities | 5,417,000 | (3,825,000) |
Cash Flows From Financing Activities | ||
Net increase (decrease) in demand and savings accounts | 18,115,000 | (11,725,000) |
Net (decrease) increase in certificate accounts | (1,583,000) | 34,753,000 |
Net increase (decrease) in securities sold under agreements to repurchase | 1,603,000 | (2,103,000) |
Repayments of Federal Home Loan Bank short-term borrowings | (109,517,000) | (165,491,000) |
Proceeds from Federal Home Loan Bank short-term borrowing | 104,993,000 | 142,994,000 |
Repayments of Federal Home Loan Bank advances | (34,165,000) | (35,689,000) |
Proceeds from Federal Home Loan Bank advances | 25,208,000 | 33,000,000 |
Lease liabilities payments | (407,000) | |
Net increase (decrease) in advance deposits by borrowers for taxes and insurance | 2,000 | (737,000) |
Exercise of stock options | 257,000 | 648,000 |
Dividends paid | (4,070,000) | (4,088,000) |
Stock repurchases | (4,012,000) | (428,000) |
Net Cash Used in Financing Activities | (3,576,000) | (8,866,000) |
Net Increase in Cash and Cash Equivalents | 16,220,000 | (58,000) |
Cash and Cash Equivalents - Beginning | 16,207,000 | 16,265,000 |
Cash and Cash Equivalents - Ending | 32,427,000 | 16,207,000 |
Supplementary Cash Flows Information: | ||
Interest paid | 9,406,000 | 7,293,000 |
Income taxes paid | 2,923,000 | 1,594,000 |
Foreclosed real estate acquired in settlement of loans | 404,000 | 486,000 |
Loan participation payoffs not settled | $ 3,000,000 | |
Investment securities purchased not settled | 756,000 | |
Right-of-use asset | (3,423,000) | |
Lease liability | 3,449,000 | |
Prepaid lease payments | $ (26,000) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1 - Summary of Significant Accounting Policies The following comprise the significant accounting policies, which Standard AVB Financial Corp. and subsidiaries (the “Company”) follow in preparing and presenting their consolidated financial statements: Principles of Consolidation The accompanying consolidated financial statements include the accounts of Standard AVB Financial Corp. and its direct and indirect wholly owned subsidiaries, Standard Bank, PaSB (the “Bank”), and Westmoreland Investment Company. All significant intercompany accounts and transactions have been eliminated in consolidation. Standard AVB Financial Corp. owns all of the outstanding shares of common stock of the Bank. Nature of Operations The Company’s primary asset is the stock of its wholly owned subsidiary, the Bank, a Pennsylvania-chartered state savings bank with deposits insured by the Federal Deposit Insurance Corporation (“FDIC”). The Bank is a retail-oriented financial institution, which offers traditional deposit and loan products through its seventeen offices in Allegheny, Westmoreland, and Bedford Counties of Pennsylvania and Allegany County of Maryland. Westmoreland Investment Company is a Delaware subsidiary, holding residential mortgage loans as the majority of its assets. Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of related revenue and expenses during the reporting period. Although our current estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that in 2020, actual conditions could be worse than anticipated in those estimates, which could materially affect our results of operations and financial condition. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, obligations associated with the deferred benefit pension plan, valuation of deferred taxes, fair value of investments and mortgage-backed securities available for sale, and the valuation of intangible assets. Significant Group Concentrations of Credit Risk Most of the Bank’s activities are with customers located within Allegheny, Westmoreland, and Bedford Counties of Pennsylvania and Allegany County of Maryland. Notes 2, 3 and 4 discuss the types of securities in which the Company invests. Note 5 details the types of lending in which the Company engages. The Company does not have any significant concentrations in any one industry or customer. Cash and Cash Equivalents For the purposes of reporting cash flows, the Company has defined cash and cash equivalents as those amounts included in the balance sheet captions cash on hand and due from banks and interest-earning deposits in other institutions. Interest-earning deposits in other institutions includes balances with original maturities of 90 days or less. Account balances are insured by the FDIC up to at least $250,000. At times, the Company may maintain more than $250,000 in cash at a financial institution. Investment, Mortgage-Backed and Equity Securities The Company accounts for investment, mortgage-backed and equity securities by classifying them into one of three categories at the time of purchase: trading, held to maturity, and available for sale. Securities bought and held principally for the purpose of selling them in the near term are classified as trading and are reported at fair value, with unrealized gains and losses included in earnings. The Company had no trading securities in 2019 or 2018. Held-to-maturity securities are debt securities acquired with the intent and ability to hold to maturity and are stated at amortized cost. The Company had no held-to-maturity securities in 2019 or 2018. Available-for-sale securities are debt and equity securities that are not classified as trading or held-to-maturity securities and serve principally as a source of liquidity. Available-for-sale debt securities are stated at fair value, with unrealized holding gains and losses reported as a separate component of stockholders’ equity, net of tax, until realized. Available-for-sale equity securities are stated at fair value, with unrealized holding gains and losses reported as equity fair value adjustments in the income statement. Declines in the fair value of individual securities below their cost that are other than temporary will result in write-downs of the individual securities to their fair value. The other-than-temporary impairment is separated into credit-related and noncredit-related components. The credit-related impairment generally represents the amount by which the present value of the cash flows that are expected to be collected on an other-than-temporarily impaired security fall below its amortized cost while the noncredit-related component represents the remaining portion of the impairment not otherwise designated as credit-related. The Company recognizes credit-related, other-than-temporary impairments in earnings, while noncredit-related, other-than-temporary impairments on debt securities are recognized, net of deferred taxes, in accumulated other comprehensive income. In estimating other than-temporary losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) whether the Company plans to sell or will be forced to sell the security. Realized securities gains and losses are computed using the specific identification method. Amortization of premiums and accretion of discounts are recorded as interest income from investments over the life of the security utilizing the level yield method. Interest and dividends on investment securities are recognized as income when earned. Federal Home Loan Bank Stock The Company, as a member of the Federal Home Loan Bank (“FHLB”) system, is required to maintain an investment in capital stock of the FHLB. During 2019, the FHLB made quarterly dividend payments. Additionally, excess capital stock was repurchased weekly in an amount equal to the lesser of five percent of the member’s total capital stock outstanding or its excess capital stock outstanding. FHLB stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost on the Consolidated Statements of Financial Condition, and evaluated for impairment. The determination of whether the stock is impaired is based on the assessment of the ultimate recoverability of the cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of the cost is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB. Management evaluated the stock based on the above and determined that the stock was not impaired as of December 31, 2019 or December 31, 2018. Loans Receivable Loans which management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their unpaid principal balance, adjusted for any allowance for loan losses and any deferred loan fees or costs. Interest on loans is credited to income as earned. Interest income on loans is accrued at the contractual rate on the principal amount outstanding and includes the amortization of deferred loan fees and costs. Deferred loan fees and costs are netted and amortized to income over the life of the loan. Accrual of interest is discontinued when, in the opinion of management, collection is doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. Amortization of any net deferred fees is discontinued when a loan is placed on nonaccrual status. Interest on nonaccrual 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, six months of timely payments are received, and future payments are reasonably assured. All loans are charged off when management determines that principal and interest are not collectible. Any excess of the Company’s recorded investment in impaired loans over the measured value of the loan is provided for in the allowance for loan losses. Loans Acquired Loans acquired including loans that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable, are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance. Loans are evaluated individually to determine if there is evidence of deterioration of credit quality since origination. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield,” is recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “non-accretable difference,” are not recognized as a yield adjustment or as a loss accrual or a valuation allowance. Increases in expected cash flows subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining estimated life. Decreases in expected cash flows are recognized immediately as impairment. Any valuation allowances on these impaired loans reflect only losses incurred after acquisition. For purchased loans acquired that are not deemed impaired at acquisition, credit discounts representing the principal losses expected over the life of the loan are a component of the initial fair value. Loans are aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. Subsequent to the purchase date, the methods utilized to estimate the required allowance for credit losses for these loans is similar to originated loans; however, the Company records a provision for loan losses only when the required allowance exceeds any remaining credit discounts. The remaining difference between the purchase price and the unpaid principal balance at the date of acquisition are recorded in interest income over the life of the loans. Allowance for Loan Losses The allowance for loan and lease losses represents the amount which management estimates is necessary to provide for probable losses in its loan and lease portfolio. The Company uses the allowance method in providing for loan and lease losses. Accordingly, all loan and lease losses are charged to the allowance, and all recoveries are credited to it. The allowance for loan and lease losses is established through a provision for loan losses which is charged to operations. Mortgage Loans Held for Sale and Mortgage Servicing Rights Mortgage loans held for sale are valued at the lower of cost or fair value as determined by current investor yield requirements calculated on an aggregate basis. Mortgage servicing rights (“MSRs”) represent the right to service loans for third-party investors. MSRs are recognized as a separate asset for the right to service mortgage loans for others, regardless of how those servicing rights are acquired. MSRs are recognized upon the sale of mortgage loans to a third-party investor with the servicing rights retained by the Bank. Servicing loans for others generally consists of collecting mortgage payments from borrowers, maintaining escrow accounts, remitting payments to third-party investors and, when necessary, processing foreclosures. Serviced loans are not included in the Consolidated Statements of Financial Condition. Loan servicing income includes servicing fees received from the third-party investors. Originated MSRs are recorded in accrued interest receivable and other assets on the Consolidated Statements of Financial Condition at allocated fair value at the time of the sale of the loans to the third-party investor. MSRs are amortized in proportion to and over the estimated period of net servicing income. MSRs are carried at amortized cost, less a valuation allowance for impairment, if any. Impairment exists if the carrying value of MSRs exceeds the estimated fair value of the MSRs. There was no impairment at December 31, 2019 or December 31, 2018. Transfers of Financial Assets Transfers of financial assets, including loan and loan participation sales, are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Bank; (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and (3) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Foreclosed Real Estate Foreclosed real estate consists of property acquired through a foreclosure proceeding or acceptance of a deed in lieu of foreclosure. Foreclosed real estate is initially recorded at fair value, net of estimated selling costs, at the date of foreclosure establishing a new cost basis. Any write downs based on the asset’s fair value at the date of acquisition are charged to the allowance for loan losses. 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 other expense. Office Properties and Equipment Office properties and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are capitalized and depreciated to operating expense over the term of the lease or the useful life of the asset whichever is shorter. The cost of major additions and improvements is capitalized and depreciated to operating expense over the estimated remaining life of the asset. Expenditures for maintenance and repairs are charged to expense as incurred. Bank-Owned Life Insurance The Bank owns insurance on the lives of certain directors and officers. The policies were purchased to help offset the cost of various fringe benefit plans, including health care. The cash surrender value of these policies is included on the Consolidated Statements of Financial Condition and any increases in the cash surrender value are recorded in noninterest income in the Consolidated Statements of Income. In the event of the death of an insured individual under these policies, a portion of the death benefit would be payable to the Bank and recorded as other income in the Consolidated Statements of Income. The remainder of the death benefit would be payable to the beneficiary, assuming the insured was employed by the Bank at the time of death. Goodwill and Core Deposit Intangible Goodwill represents the excess of the purchase price over the cost of net assets purchased. Goodwill is not amortized, but is evaluated for impairment. At least annually, management reviews goodwill and evaluates events or changes in circumstances that may indicate impairment in the carrying amount of goodwill. If the sum of the expected undiscounted future cash flows is less than the carrying amount of the net assets, an impairment loss will be recognized. Impairment, if any, is measured on a discounted future cash flow basis. For December 31, 2019 and December 31, 2018, no impairment existed; however, for any future period, if the Company determines that there has been impairment in the carrying value of goodwill, the Company would record a charge to earnings, which could have a material adverse effect on net income. Core deposit intangible assets represent the premiums paid to acquire the core deposits of another institution. The premium is the amount paid in excess of the dollar amount of the deposits acquired and it is carried at amortized cost on the Consolidated Statements of Financial Condition. The Company has core deposit intangible assets relating to the 2017 acquisition of Allegheny Valley Bancorp Inc. (“Allegheny Valley”). These intangible assets are being amortized on an accelerated basis over an 8‑year period. The balance of core deposit intangibles was $1.9 million and $2.5 million, net of accumulated amortization of $2.2 million and $1.6 million, for the years ended December 31, 2019 and December 31, 2018, respectively. Pension Plan The Bank maintains a noncontributory defined benefit pension plan covering employees whose benefits were frozen effective August 1, 2005. No future benefits are accrued, however, the plan calls for benefits to be paid to eligible employees at retirement based primarily upon years of service with the Bank. Interest on Deposits Interest on deposits is accrued and charged to expense daily and is paid or credited in accordance with the terms of the respective accounts. Income Taxes The Company accounts for income taxes in accordance with GAAP. The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. 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. The Company accounts for uncertain tax positions 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%; 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% 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. The Company had no uncertain tax positions at December 31, 2019 or December 31, 2018. If the Company were to incur interest and penalties on income taxes, it would be recognized as a component of income tax expense. Stock Compensation The Company accounts for share-based awards in accordance with GAAP, which requires companies to estimate the fair value of awards on the date of grant. The value of the portion of the award that is ultimately expected to vest is included in compensation and employee benefits on the income statement. Compensation expense for share-based awards with graded vesting schedules is recognized on a straight-line basis over the requisite service period for the entire grant. Advertising Expense Advertising costs are expensed as incurred and included in other operating expense in the Consolidated Statements of Income. Advertising expense for the years ended December 31, 2019 and December 31, 2018 totaled $262,000 and $289,000, respectively. Comprehensive Income Comprehensive income consists of net income and other comprehensive gain (loss). Other comprehensive gain (loss) includes the change in unrealized gains on debt securities available for sale, unrealized losses related to factors other than credit on debt securities, and the change in the pension benefit obligation for the defined benefit plan. On January 1, 2018, the Company adopted ASU 2016‑01 - Financial Instruments - Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Financial Liabilities , which requires equity securities to be measured at fair value with net unrealized gains and losses recognized in noninterest income on the Consolidated Statements of Income. As a result of the adoption of this guidance, there was a one-time cumulative effect adjustment of $416,000 between retained earnings and accumulated other comprehensive income on the Consolidated Statement of Financial Condition for December 31, 2018. The adjustment had no impact on net income for the year ended December 31, 2018. Earnings per Share Basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. The following table sets forth the computation of basic and diluted EPS for the years ended December 31, 2019 and December 31, 2018 (dollars in thousands except share and per share data): Years Ended December 31 2019 2018 Net income available to common stockholders $ 8,806 $ 8,801 Basic EPS: Weighted average shares outstanding 4,606,457 4,634,003 Basic EPS $ 1.91 $ 1.90 Diluted EPS: Weighted average shares outstanding 4,606,457 4,634,003 Diluted effect of common stock equivalents 36,318 51,041 Total diluted weighted average shares outstanding 4,642,775 4,685,044 Diluted EPS $ 1.90 $ 1.88 Options to purchase 247,781 and 266,695 shares of common stock were outstanding as of December 31, 2019 and December 31, 2018, respectively, with an average exercise price of $17.07 and $17.12, respectively. There were no anti-dilutive options as of December 31, 2019 or December 31, 2018. As of December 31, 2019 and December 31, 2018, there were 1,944 and 250 shares of outstanding restricted stock, respectively, that were not fully vested and included in the computation of diluted earnings per common share. Reclassifications Certain comparative amounts for the prior year have been reclassified to conform to current-year presentation. Such reclassifications had no effect on net income or stockholders’ equity. Recent Accounting Pronouncements Accounting Standards Adopted in 2019 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. Additionally, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) – Targeted Improvements, which, among other things, provided an additional transition method that allows entities to not apply the guidance in ASU 2016-02 in the comparative periods presented in the financial statements and instead to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted ASU 2016-02 and its related amendments as of January 1, 2019, which resulted in the recognition of finance right-of-use assets and finance lease liabilities totaling $1.1 million and $1.2 million, respectively. The Company elected to adopt the transition relief provisions from ASU 2018-11 and recorded the impact of adoption as of January 1, 2019, without restating any prior-year amounts or disclosures. Additional lease disclosures can be found in Note 7 contained herein. There was no cumulative effect adjustment to the opening balance of retained earnings required. Accounting Standards Pending Adoption In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should 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 allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) . This Update defers the effective date of ASU 2016-13 for SEC filers that are eligible to be smaller reporting companies, non-SEC filers, and all other companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. The Company has been working with a third party to evaluate the various CECL methodologies and decided to utilize the vintage method. The Company is continuing to work through implementation of that method and determine what impact it will have on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is a U.S. Securities and Exchange Commission (“SEC”) filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. A public business entity that is not an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020. All other entities, including not-for-profit entities that are adopting the amendments in this Update should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) , which deferred the effective date for ASC 350, Intangibles – Goodwill and Other , for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In August 2018, the FASB issued ASU 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes the Disclosure Requirements for Fair Value Measurements . The Update removes the requirement to disclose the amount of and reasons for transfers between Level I and Level II of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level III fair value measurements. The Update requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level III fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level III fair value measurements. This Update is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018‑14, Compensation- Retirement Benefits (Topic 715‑20) . This Update amends ASC 715 to add, remove and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The Update eliminates the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year. The Update also removes the disclosure requirements for the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost and the benefit obligation for postretirement health care benefits. This Update is effective for public business entities for fiscal years ending after December 15, 2020, and must be applied on a retrospective basis. For all other entities, this Update is effective for fiscal years ending after December 15, 2021. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) . This Update addresses customers’ accounting for implementation costs incurred in a cloud computing arrangement that is a service contract and also adds certain disclosure requirements related to implementation costs incurred for internal-use software and cloud computing arrangements. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This Update is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. For |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Available-for-sale securities other than mortgage backed securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Investment Securities | Note 2 - Investment Securities Investment securities available for sale at December 31, 2019 and December 31, 2018 were as follows (dollars in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2019: U.S. government and agency obligations due: 1 year or less $ 5,986 $ 12 $ — $ 5,998 Beyond 1 year but within 5 years 1,470 29 — 1,499 Beyond 5 year but within 10 years 948 44 — 992 Corporate bonds due: Beyond 1 year but within 5 years 2,477 102 — 2,579 Municipal obligations due: 1 year or less 260 2 — 262 Beyond 1 year but within 5 years 5,085 244 — 5,329 Beyond 5 years but within 10 years 18,210 456 — 18,666 Beyond 10 years 33,951 648 (40) 34,559 $ 68,387 $ 1,537 $ (40) $ 69,884 December 31, 2018: U.S. government and agency obligations due: Beyond 1 year but within 5 years $ 7,428 $ — $ (81) $ 7,347 Beyond 5 year but within 10 years 940 — (17) 923 Corporate bonds due: 1 year or less 1,758 — (15) 1,743 Beyond 1 year but within 5 years 1,472 2 (10) 1,464 Beyond 5 years but within 10 years 996 — (2) 994 Municipal obligations due: Beyond 1 year but within 5 years 6,658 298 — 6,956 Beyond 5 years but within 10 years 22,384 132 (81) 22,435 Beyond 10 years 24,504 82 (279) 24,307 $ 66,140 $ 514 $ (485) $ 66,169 For the year ended December 31, 2019, gains on sales of investment securities were $11,000 and losses were $11,000 with total proceeds from such sales of $6.3 million. For the year ended December 31, 2018, gains on sales of investment securities were $1,000 and losses were $18,000 with total proceeds from such sales of $4.8 million. Investment securities with a carrying value of $11.9 million and $11.6 million were pledged to secure repurchase agreements and public funds accounts at December 31, 2019 and December 31, 2018, respectively. The following table presents the fair value and gross unrealized losses on investment securities and the length of time that the securities have been in a continuous unrealized loss position at December 31, 2019 and December 31, 2018 (dollars in thousands): Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses December 31, 2019: Municipal obligations $ 4,496 $ (40) $ — $ — $ 4,496 $ (40) Total $ 4,496 $ (40) $ — $ — $ 4,496 $ (40) December 31, 2018: U.S. government and agency obligations $ — $ — $ 8,270 $ (98) $ 8,270 $ (98) Corporate bonds 1,490 (12) 1,743 (15) 3,233 (27) Municipal obligations 10,049 (55) 11,730 (305) 21,779 (360) Total $ 11,539 $ (67) $ 21,743 $ (418) $ 33,282 $ (485) At December 31, 2019, the Company held eight investment securities in an unrealized loss position. The unrealized losses on these securities resulted primarily from interest rate fluctuations. The Company does not intend to sell these securities nor is it more likely than not that the Company would be required to sell these securities before their anticipated recovery and the Company believes the collection of the investment and related interest is probable. Based on this, the Company considers all of the unrealized losses to be temporary impairment losses. |
Equity Securities
Equity Securities | 12 Months Ended |
Dec. 31, 2019 | |
Equity Securities | |
Equity Securities | Note 3 – Equity Securities The following table presents the net gains and losses on equity investments recognized in earnings during the years ended December 31, 2019 and December 31, 2018, and the portion of unrealized gains and losses for those periods that relate to equity investments held (dollars in thousands): Year Ended December 31, 2019 2018 Net equity securities fair value adjustment gains (losses) $ 230 $ (484) Net gains realized on the sale of equity securities during the year — 394 Gains (losses) recognized on equity securities during the period $ 230 $ (90) There were no sales of equity securities during the year ended December 31, 2019. During the year ended December 31, 2018, gains on sales of equity securities were $427,000 and losses were $33,000 with total proceeds from such sales of $1.9 million. |
Mortgage-Backed Securities
Mortgage-Backed Securities | 12 Months Ended |
Dec. 31, 2019 | |
Mortgage-backed securities available for sale | |
Schedule of Available-for-sale Securities [Line Items] | |
Mortgage-Backed Securities | Note 4 – Mortgage-Backed Securities Mortgage-backed securities available for sale at December 31, 2019 and December 31, 2018 were as follows (dollars in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2019: Government pass-throughs: Ginnie Mae $ 21,386 $ 188 $ (70) $ 21,504 Fannie Mae 20,537 258 - 20,795 Freddie Mac 13,986 134 (34) 14,086 Private pass-throughs 21,904 - (301) 21,603 Collateralized mortgage obligations 13,406 110 (26) 13,490 $ 91,219 $ 690 $ (431) $ 91,478 December 31, 2018: Government pass-throughs: Ginnie Mae $ 19,213 $ 1 $ (324) $ 18,890 Fannie Mae 13,952 7 (339) 13,620 Freddie Mac 12,662 — (252) 12,410 Private pass-throughs 25,064 — (349) 24,715 Collateralized mortgage obligations 12,328 11 (180) 12,159 $ 83,219 $ 19 $ (1,444) $ 81,794 Private pass-throughs include Small Business Administration (“SBA”) securities that are each an aggregation of SBA guaranteed portions of loans made by SBA lenders under section 7(a) of the Small Business Act. The guaranty is backed by the full faith and credit of the United States. For the year ended December 31, 2019, losses on sales of mortgage-backed securities were $1,000 and proceeds from such sales were $1.3 million. There were no sales of mortgage-backed securities during the year ended December 31, 2018. Mortgage-backed securities with a carrying value of $13.3 million and $10.4 million were pledged to secure repurchase agreements and public funds accounts at December 31, 2019 and December 31, 2018, respectively. The following table presents the fair value and gross unrealized losses on mortgage-backed securities and the length of time that the securities have been in a continuous unrealized loss position at December 31, 2019 and December 31, 2018 (dollars in thousands): Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Unrealized Value Losses Value Losses Fair Value Losses December 31, 2019: Government pass-throughs: Ginnie Mae $ 4,070 (27) 3,516 (43) $ 7,586 $ (70) Freddie Mac 5,537 (34) — — 5,537 (34) Private pass-throughs 2,060 (29) 19,197 (272) 21,257 (301) Collateralized mortgage obligations 562 (2) 3,526 (24) 4,088 (26) Total $ 12,229 $ (92) $ 26,239 $ (339) $ 38,468 $ (431) Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Unrealized Value Losses Value Losses Fair Value Losses December 31, 2018: Government pass-throughs: Ginnie Mae $ 4,850 $ (26) $ 13,794 $ (298) $ 18,644 $ (324) Fannie Mae 403 (2) 12,152 (337) 12,555 (339) Freddie Mac 680 (24) 11,699 (228) 12,379 (252) Private pass-throughs 14,436 (134) 9,359 (215) 23,795 (349) Collateralized mortgage obligations 4,091 (40) 6,048 (140) 10,139 (180) Total $ 24,460 $ (226) $ 53,052 $ (1,218) $ 77,512 $ (1,444) At December 31, 2019, the Company held 34 mortgage-backed securities in an unrealized loss position. The decline in the fair value of these securities resulted primarily from interest rate fluctuations. The Company does not intend to sell these securities nor is it more likely than not that the Company would be required to sell these securities before their anticipated recovery. The Company believes the collection of the investment principal and related interest is probable. Based on the above, the Company considers all of the unrealized loss to be temporary impairment loss. |
Loans Receivable
Loans Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Loans Receivable | |
Loans Receivable | Note 5 – Loans Receivable The following table summarizes the primary segments of the loan portfolio by the amounts collectively evaluated for impairment and the amounts individually evaluated for impairment, as of December 31, 2019 and December 31, 2018 (dollars in thousands): One-to-four- Commercial Home family Real Estate Equity Loans Residential and and and Lines Commercial Other Construction Construction of Credit Business Loans Total December 31, 2019: Collectively evaluated for impairment $ 234,421 $ 323,008 $ 111,499 $ 46,907 $ 570 $ 716,405 Individually evaluated for impairment — 835 — 607 — 1,442 Total loans before allowance for loan losses $ 234,421 $ 323,843 $ 111,499 $ 47,514 $ 570 $ 717,847 December 31, 2018: Collectively evaluated for impairment $ 253,913 $ 308,775 $ 123,373 $ 46,196 $ 1,139 $ 733,396 Individually evaluated for impairment — — — — — — Total loans before allowance for loan losses $ 253,913 $ 308,775 $ 123,373 $ 46,196 $ 1,139 $ 733,396 Total loans at December 31, 2019 and December 31, 2018 were net of deferred loan fees of $233,000 and $226,000, respectively. The Company’s primary business activity is with customers located within its local trade area. Although the Company has a diversified loan portfolio, loans outstanding to individuals and businesses are dependent upon the local economic conditions in its immediate trade area. The segments of the Bank’s loan portfolio are disaggregated to a level that allows management to monitor risk and performance. The three segments are: real estate, commercial business and other. The real estate loan segment is further disaggregated into three classes. One-to-four family residential mortgages (including residential construction loans) include loans to individuals secured by residential properties having maturities up to 30 years. Commercial real estate (including commercial construction loans) consists of loans to commercial borrowers secured by commercial or residential real estate. Home equity loans and lines of credit include loans having maturities up to 20 years. The commercial business loan segment consists of loans to finance the activities of commercial business customers. The other loan segment consists primarily of consumer loans and overdraft lines of credit. The portfolio segments utilized in the calculation of the allowance for loan losses are disaggregated at the same level that management uses to monitor risk in the portfolio. Therefore the portfolio segments and classes of loans are the same. There are various risks associated with lending to each portfolio segment. One-to-four family residential mortgage loans are typically longer-term loans which generally entail greater interest rate risk than consumer and commercial loans. Under certain economic conditions, housing values may decline, which may increase the risk that the collateral values are insufficient. Commercial real estate loans generally present a higher level of risk than loans secured by residences. This greater risk is due to several factors including but not limited to concentration of principal in a limited number of loans and borrowers, the effect of general economic conditions on income producing properties, and the increased difficulty in monitoring these types of loans. Furthermore, the repayment of commercial real estate loans is typically dependent upon successful operation of the related real estate project. If the cash flow from the project is reduced by such occurrences as leases not being obtained, renewed, or not entirely fulfilled, the borrower’s ability to repay the loan may be impaired. Commercial business loans are primarily secured by business assets, inventories, and accounts receivable which present collateral risk. The repayment of the commercial business loan is dependent upon the ongoing cash flow of the operating entity and the ability of a guarantor to support the company.The other loan segment generally has higher interest rates and shorter terms than one-to-four family residential mortgage loans, however, they can have additional credit risk due to the type of collateral securing the loan. Management evaluates individual loans in all of the commercial segments for possible impairment if the relationship is greater than $200,000 and the loan is in nonaccrual status, risk-rated Substandard or Doubtful, 90 days or more past due or represents a troubled debt restructuring (“TDR”). Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. The definition of “impaired loans” is not the same as the definition of “nonaccrual loans,” although the two categories overlap. The Company may choose to place a loan on nonaccrual status due to payment delinquency or uncertain collectability, while not classifying the loan as impaired if the loan is not a commercial business or commercial real estate loan. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company does not separately evaluate individual consumer and residential mortgage loans for impairment, unless such loan is part of a larger relationship that is impaired, has a classified risk rating, or is a TDR. Once the decision has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is calculated by comparing the recorded investment in the loan to the fair value of the loan using one of three methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs. The appropriate method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis. The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. Consistent with accounting and regulatory guidance, the Company recognizes a TDR when a borrower is experiencing financial difficulties and the Bank, for economic or legal reasons related to a borrower's financial difficulties, grants a concession to the borrower that would not normally be considered. Regardless of the form of concession granted, the Company's objective in offering a TDR is to increase the probability of repayment of the borrower's loan. During the year ended December 31, 2019, there was one modification determined to be a TDR. The modification to one customer relationship consisted of one commercial real estate loan and one commercial business loan. The modification extended the amortization period for each of the term loans which will result in a balloon payment at the maturity date of each loan. The loans remain on accrual status and there were no specific reserves established. The loans are included in the impaired loan table below. The Company did not modify any loans as TDRs during the year ended December 31, 2018. The Company did not have any TDRs where a concession had previously been made that then defaulted during the years ended December 31, 2019 or December 31, 2018. The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary at December 31, 2019 (dollars in thousands): Impaired Loans Impaired Loans With Without Allowance Allowance Total Impaired Loans Recorded Related Recorded Recorded Unpaid Principal Investment Allowance Investment Investment Balance December 31, 2019: Commercial real estate and construction $ — $ — $ 835 $ 835 $ 835 Commercial business — — 607 607 607 Total impaired loans $ — $ — $ 1,442 $ 1,442 $ 1,442 December 31, 2018: Commercial real estate and construction $ — $ — $ — $ — $ — Total impaired loans $ — $ — $ — $ — $ — There were no impaired loans at December 31, 2018. The following table presents the average recorded investment in impaired loans and related interest income recognized for the years ended December 31, 2019 and December 31, 2018 (dollars in thousands): Year Ended December 31 2019 2018 Average investment in impaired loans: Commercial real estate and construction $ 167 $ 236 Commercial business 121 — $ 288 $ 236 Interest income recognized on impaired loans $ 78 $ — Management uses a nine-point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first five categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently performing but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the collection of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans 90 days or more past due are considered Substandard. Any loan that has a specific allocation of the allowance for loan losses and is in the process of liquidation of the collateral is placed in the Doubtful category. Any portion of a loan that has been charged off is placed in the Loss category. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as delinquency, bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. The Company’s Commercial Loan Officers are responsible for the timely and accurate risk rating of the loans in their portfolio at origination. Commercial relationships are periodically reviewed internally for credit deterioration or improvement in order to confirm that the relationship is appropriately risk rated. The Audit Committee of the Company also engages an external consultant to conduct loan reviews. The scope of the annual external engagement, which is performed through semi-annual loan reviews, includes reviewing approximately the top 50 to 60 loan relationships, all watchlist loans greater than $100,000, all commercial Reg O loans, and a random sampling of new loan originations between $200,000 and $500,000 during the year. Status reports are provided to management for loans classified as Substandard on a quarterly basis, which results in a proactive approach to resolution. Loans in the Special Mention and Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance. The following table presents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the Company’s internal risk rating system as of December 31, 2019 and December 31, 2018 (dollars in thousands): Special Pass Mention Substandard Doubtful Total December 31, 2019: Real estate loans: One-to-four-family residential and construction $ 232,354 $ — $ 2,067 $ — $ 234,421 Commercial real estate and construction 320,988 2,544 311 — 323,843 Home equity loans and lines of credit 111,165 62 272 — 111,499 Commercial business loans 46,636 818 60 — 47,514 Other loans 564 — 6 — 570 Total $ 711,707 $ 3,424 $ 2,716 $ — $ 717,847 December 31, 2018: Real estate loans: One-to-four-family residential and construction $ 252,186 $ — $ 1,727 $ — $ 253,913 Commercial real estate and construction 303,161 4,851 763 — 308,775 Home equity loans and lines of credit 123,053 62 258 — 123,373 Commercial business loans 45,902 232 62 — 46,196 Other loans 1,120 — 19 — 1,139 Total $ 725,422 $ 5,145 $ 2,829 $ — $ 733,396 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due based on the loans’ contractual due dates. Management considers nonperforming loans to be those loans that are past due 90 days or more and are still accruing as well as nonaccrual loans. The following table presents the segments of the loan portfolio summarized by the past due status of the loans still accruing and nonaccrual loans as of December 31, 2019 and December 31, 2018 (dollars in thousands): 30-59 Days 60-89 Days 90 Days Past Total Current Past Due Past Due Non-Accrual Due & Accruing Loans December 31, 2019: Real estate loans: One-to-four-family residential and construction $ 230,952 $ 1,021 $ 381 $ 2,067 $ — $ 234,421 Commercial real estate and construction 322,922 610 — 311 — 323,843 Home equity loans and lines of credit 110,634 591 2 272 — 111,499 Commercial business loans 47,420 34 — 60 — 47,514 Other loans 564 — — 6 — 570 Total $ 712,492 $ 2,256 $ 383 $ 2,716 $ — $ 717,847 30-59 Days 60-89 Days 90 Days Past Total Current Past Due Past Due Non-Accrual Due & Accruing Loans December 31, 2018: Real estate loans: One-to-four-family residential and construction $ 250,691 $ 1,341 $ 154 $ 1,727 $ — $ 253,913 Commercial real estate and construction 307,740 374 — 661 — 308,775 Home equity loans and lines of credit 122,929 163 23 258 — 123,373 Commercial business loans 45,434 690 10 62 — 46,196 Other loans 1,111 3 3 19 3 1,139 Total $ 727,905 $ 2,571 $ 190 $ 2,727 $ 3 $ 733,396 An allowance for loan losses (“ALL”) is maintained to absorb losses from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans. The Bank’s methodology for determining the ALL is based on the requirements of ASC Section 310‑10‑35 for loans individually evaluated for impairment (discussed above) and ASC Subtopic 450‑20 for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. The total of the two components represents the Bank’s ALL. Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by other qualitative factors. Management tracks the historical net charge-off activity for the loan segments which may be adjusted for qualitative factors. Pass rated credits are segregated from criticized credits for the application of qualitative factors. Loans in the criticized pools, which possess certain qualities or characteristics that may lead to collection and loss issues, are closely monitored by management and subject to additional qualitative factors. Management has identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors are evaluated using information obtained from internal, regulatory, and governmental sources such as national and local economic trends and conditions; levels of and trends in delinquency rates and non-accrual loans; trends in volumes and terms of loans; effects of changes in lending policies; experience, depth and ability of management; and concentrations of credit from a loan type, industry and/or geographic standpoint. Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. Management utilizes an internally developed spreadsheet to track and apply the various components of the allowance. During the year ended December 31, 2019, there was an increase in the provision for the commercial real estate and construction loan class primarily due to growth in the loan balances included in the allowance calculation for that loan class as well as charge-offs incurred during the year; there was a decrease in the provision for the one-to-four family residential and construction loan class primarily due to a decline in the loan balances included in the allowance calculation for that loan class as well as a decrease in the qualitative factors; and there was an increase in the provision for the commercial business loan segment primarily due to an increase in both the historical loss factor and the qualitative factor related to trends in volume as well as an increase in the balance of loans included in the allowance calculation for that loan segment. The allowance for the home equity loans and lines of credit class and the other loan segment remained consistent with the previous year. The following tables summarize the activity in the primary segments of the ALL for the years ended December 31, 2019 and December 31, 2018 as well as the allowance required for loans individually and collectively evaluated for impairment as of December 31, 2019 and December 31, 2018 (dollars in thousands): Real Estate Loans One-to-four- Commercial Home family Real Estate Equity Loans Residential and and and Lines Commercial Other Construction Construction of Credit Business Loans Total Balance at December 31, 2018 $ 1,051 $ 2,761 $ 312 $ 286 $ 4 $ 4,414 Charge-offs — (187) (2) (37) (41) (267) Recoveries 4 3 1 — 2 10 Provision (334) 736 (1) 285 39 725 Balance December 31, 2019 $ 721 $ 3,313 $ 310 $ 534 $ 4 $ 4,882 Balance at December 31, 2017 $ 1,384 $ 2,003 $ 400 $ 333 $ 7 $ 4,127 Charge-offs — (80) — (244) (48) (372) Recoveries 69 2 11 5 — 87 Provision (402) 836 (99) 192 45 572 Balance December 31, 2018 $ 1,051 $ 2,761 $ 312 $ 286 $ 4 $ 4,414 Real Estate Loans One-to-four- Commercial Home family Real Estate Equity Loans Residential and and and Lines Commercial Other Construction Construction of Credit Business Loans Total Evaluated for Impairment: Individually $ — $ — $ — $ — $ — $ — Collectively 721 3,313 310 534 4 4,882 Balance at December 31, 2019 $ 721 $ 3,313 $ 310 $ 534 $ 4 $ 4,882 Evaluated for Impairment: Individually $ — $ — $ — $ — $ — $ — Collectively 1,051 2,761 312 286 4 4,414 Balance at December 31, 2018 $ 1,051 $ 2,761 $ 312 $ 286 $ 4 $ 4,414 The ALL is based on estimates and actual losses will vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the loan portfolio at any given date. In addition, federal regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses and may require the Bank to make changes to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to Management. Based on Management’s comprehensive analysis of the loan portfolio, they believe the current level of the allowance for loan losses is adequate. Loans serviced for others were $69.0 million and $66.3 million at December 31, 2019 and December 31, 2018, respectively. Net mortgage servicing rights were $487,000 and $454,000 at December 31, 2019 and December 31, 2018, respectively. |
Foreclosed Assets Held For Sale
Foreclosed Assets Held For Sale | 12 Months Ended |
Dec. 31, 2019 | |
Foreclosed Assets Held For Sale | |
Foreclosed Assets Held For Sale | Note 6 – Foreclosed Assets Held for Sale Foreclosed assets acquired in the settlement of loans are carried at fair value less estimated costs to sell and are included in foreclosed real estate on the Consolidated Statement of Financial Condition. As of December 31, 2019 and December 31, 2018, foreclosed real estate totaled $404,000 and $486,000, respectively. As of December 31, 2019, included within the foreclosed assets totaling $404,000 were two residential properties and one commercial real estate property. As of December 31, 2018, included within the foreclosed assets totaling $486,000 were two residential properties and one commercial real estate property. Additionally, the Company had initiated formal foreclosure procedures on $1.1 million in one-to-four family residential loans and $53,000 in home equity loans as of December 31, 2019. |
Office Properties and Equipment
Office Properties and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Office Properties and Equipment | |
Office Properties and Equipment | Note 7 – Office Properties and Equipment Office properties and equipment at December 31, 2019 and December 31, 2018 are summarized by major classifications as follows (dollars in thousands): December 31 Estimated Useful Life 2019 2018 Land and land improvements Indefinite - 10 years $ 2,402 $ 3,152 Buildings and building improvements 10 - 50 years 10,322 10,475 Leasehold improvements 1 - 20 years 893 871 Right-of-use asset financing leases 1 - 12 years 3,050 — Furnitures, fixtures, and equipment 3 - 10 years 4,689 4,678 $ 21,356 $ 19,176 Less accumulated depreciation (11,468) (11,447) Plus projects in progress 42 65 Premises and equipment, net $ 9,930 $ 7,794 Depreciation expense was $1.1 million and $771,000 for the years ended December 31, 2019 and December 31, 2018, respectively. The Company currently has four financing lease agreements for branch offices. In conjunction with those financing leases, the Company recognized Right-Of-Use (“ROU”) assets totaling $3.4 million and lease liabilities totaling $3.4 million related to those financing leases. Some of the leases includes an option to extend which was recognized as part of the Company’s ROU asset and corresponding lease liability for that property if the Company believes that it is more likely than not to exercise the extension option. The ROU assets are included with office properties and equipment while lease liabilities are included in long-term borrowings on the December 31, 2019 Consolidated Statements of Financial Condition. Amortization of ROU assets is included in premises and occupancy costs while interest expense on the lease liabilities is included in the interest expense on long-term borrowings on the Consolidated Statements of Income. The following table presents the financing lease costs during year ended December 31, 2019 (dollars in thousands): Year Ended December 31, 2019 Financing lease costs Amortization of right-of-use asset $ 372 Interest expense 50 Total financing lease costs $ 422 The discount rates utilized to determine the interest expense portion of the lease liability were obtained by utilizing FHLB advance rates for a similar term borrowings as of January 1, 2019. The following table presents the weighted-average remaining term and discount rates for financing leases outstanding as of December 31, 2019: Financing Weighted-average term (years) 9.9 Weighted-average discount rate 2.60 % The following table presents the undiscounted cash flows due related to financing leases as of December 31, 2019, along with a reconciliation to the discounted amount recorded in long-term borrowings on the December 31, 2019 Consolidated Statements of Financial Condition (dollars in thousands): Financing Undiscounted cash flows due within: 2020 $ 361 2021 358 2022 359 2023 361 2024 362 2025 and thereafter 1,719 Total undiscounted cash flows 3,520 Impact of present value discount (428) Amount reported on balance sheet $ 3,092 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits | |
Deposits | Note 8 - Deposits Deposit balances at December 31, 2019 and December 31, 2018 are summarized as follows (dollars in thousands): December 31 2019 2018 Noninterest-bearing demand $ 127,168 $ 135,708 Interest-bearing demand 111,428 100,163 Savings 144,120 147,695 Money market 106,576 87,611 Time deposits 245,114 246,697 Total deposits $ 734,406 $ 717,874 At December 31, 2019, the scheduled maturities of time deposit are as follows (dollars in thousands): December 31 2019 One year or less $ 127,643 Over one through two years 35,141 Over two through three years 33,932 Over three through four years 32,356 Over four through five years 9,271 Over five years 6,771 Total $ 245,114 At December 31, 2019, the scheduled maturities of time deposit in denominations of $100,000 or more are as follows (dollars in thousands): December 31 2019 Three months or less $ 24,941 Over three to six months 15,548 Over six to twelve months 21,926 Over twelve months 50,263 Total $ 112,678 Time deposits include certificates of deposit in denominations of $250,000 or more. Such deposits aggregated $46.0 million and $35.2 million at December 31, 2019 and December 31, 2018, respectively. |
Short-term and Long-term Borrow
Short-term and Long-term Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Short-term and Long-term Borrowings | |
Short-term and Long-term Borrowings | Note 9 - Short-term and Long-term Borrowings The Bank is a member of the FHLB. This membership allows the Bank to borrow funds from the FHLB which are collateralized by qualifying securities and loans. At December 31, 2019, the Bank had approximately $431.8 million in maximum borrowing capacity available as collateral for existing and future borrowings. Included in the $431.8 million is a revolving line of credit agreement the Bank has established with the FHLB whereby it can borrow up to approximately $207.1 million on a short-term basis. The outstanding balance under this agreement was $0 at December 31, 2019. At December 31, 2018, the outstanding balance under this agreement was approximately $4.5 million with an interest rate in effect on that borrowing of 2.64%. The outstanding balances and related information for short-term borrowings at or for the years ended December 31, 2019 and December 31, 2018 are summarized as follows (dollars in thousands): December 31 2019 2018 Balance $ — $ 4,524 Average balance outstanding during the period 1,698 12,696 Maximum amount outstanding at any month-end 11,339 51,500 Weighted average interest rate at period end — % 2.64 % Average interest rate during the period 2.67 1.79 Advances, which are typically more long-term in nature, are also available from the FHLB. At December 31, 2019 and December 31, 2018, the Bank had long-term borrowings including FHLB advances as well as lease liabilities as follows (dollars in thousands): December 31 Stated Maturity Interest Rate 2019 2018 January 22, 2019 1.25 % $ — $ 125 June 24, 2019 1.63 — 1,805 September 11, 2019 1.59 — 6,438 November 12, 2019 1.91 — 3,151 January 8, 2020 1.70 5,794 5,794 March 20, 2020 2.51 1,278 6,309 July 29, 2020 1.91 1,822 1,822 August 17, 2020 1.63 5,635 5,635 September 8, 2020 1.69 4,204 9,726 December 9, 2020 1.92 3,500 3,500 January 26, 2021 1.94 4,000 4,000 February 22, 2021 1.95 3,365 3,365 March 8, 2021 2.54 4,421 7,639 May 7, 2021 2.38 5,000 — August 18, 2021 1.80 1,443 2,289 September 7, 2021 2.17 5,000 — September 8, 2021 1.77 7,363 11,469 November 15, 2021 3.23 3,000 3,000 June 6, 2022 2.14 5,000 — August 8, 2022 1.85 5,000 — September 8, 2022 1.86 5,615 7,587 December 9, 2022 2.26 3,212 3,212 December 29, 2022 2.45 6,146 8,097 May 30, 2023 2.93 10,000 10,000 August 8, 2023 1.82 5,208 — Lease liabilities 2.60 3,092 — $ 99,098 $ 104,963 |
Securities Sold Under Agreement
Securities Sold Under Agreement to Repurchase | 12 Months Ended |
Dec. 31, 2019 | |
Securities Sold Under Agreement to Repurchase | |
Securities Sold Under Agreement to Repurchase | Note 10 - Securities Sold Under Agreement to Repurchase The Bank utilizes securities sold under agreements to repurchase to facilitate the needs of our customers and to facilitate secured short-term funding needs. Securities sold under agreements to repurchase are stated at the amount of cash received in connection with the transaction. Collateral levels are monitored on a continuous basis. The Bank may be required to provide additional collateral based on the fair value of the underlying securities. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. The collateral pledged to secure the borrowings based on the remaining contractual maturity of the securities sold under agreements to repurchase as of December 31, 2019 and December 31, 2018 are presented in the following tables (dollars in thousands): Remaining Contractual Maturity of the Agreements Overnight and Up to 30 30-90 Greater than Continuous Days Days 90 Days Total December 31, 2019: U.S. government obligations $ 4,435 $ — $ — $ — $ 4,435 Municipal obligations 5,011 — — — 5,011 Total collateral pledged $ 9,446 $ — $ — $ — $ 9,446 Gross amount of recognized liabilities for securities sold under agreements to repurchase $ 3,740 Amounts related to agreements not included in offsetting disclosures above $ 5,706 December 31, 2018: U.S. government obligations $ 6,031 $ — $ — $ — $ 6,031 Municipal obligations 4,824 — — — 4,824 Total collateral pledged $ 10,855 $ — $ — $ — $ 10,855 Gross amount of recognized liabilities for securities sold under agreements to repurchase $ 2,137 Amounts related to agreements not included in offsetting disclosures above $ 8,718 The outstanding balances and related information for repurchase agreements at or for the years ended December 31, 2019 and December 31, 2018 are summarized as follows (dollars in thousands): December 31 2019 2018 Balance $ 3,740 $ 2,137 Average balance outstanding during the period 3,738 4,782 Maximum amount outstanding at any month-end 4,136 8,251 Weighted average interest rate at period end 0.48 % 0.19 % Average interest rate during the period 0.45 0.23 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income Taxes | Note 11 - Income Taxes Total income tax expense for the years ended December 31, 2019 and December 31, 2018 was as follows (dollars in thousands): Years Ended December 31 2019 2018 Federal: Current $ 1,784 $ 2,001 Deferred (80) (288) $ 1,704 $ 1,713 State, current $ 634 $ 535 The difference between the expected and actual tax provision expressed as a percentage of earnings before income tax provision are as follows: December 31 2019 2018 % of Pre-tax % of Pre-tax Amount Income Amount Income Expected federal tax rate $ 2,341 21.0 % $ 2,321 21.0 % State taxes, net of federal tax benefit 501 4.5 421 3.8 Nontaxable interest income (393) (3.5) (377) (3.4) Bank-owned life insurance (113) (1.0) (112) (1.0) Other items, net 2 — (5) (0.1) Effective Tax Rate $ 2,338 21.0 % $ 2,248 20.3 % The Bank is subject to the Pennsylvania, Maryland and West Virginia corporate net income tax which is allocated between the states and calculated at 11.50%, 8.25% and 6.50%, respectively, based on taxable income applicable to the individual states. The net deferred tax asset consisted of the following components as of December 31, 2019 and December 31, 2018 (dollars in thousands): December 31 2019 2018 Deferred Tax Assets: Allowance for loan losses $ 1,025 $ 927 Employee benefits 326 290 Impairment reserves — 11 Net unrealized losses on securities — 195 Capital loss carryforward — 19 Other, net 192 148 Total Deferred Tax Assets 1,543 1,590 Deferred Tax Liabilities: Net unrealized gains on securities (369) — Premises and equipment (172) (214) Purchase accounting (61) (14) Equity security fair value adjustments (57) — Other, net (51) (46) Total Deferred Tax Liabilities (710) (274) Net Deferred Tax Assets $ 833 $ 1,316 U.S. generally accepted accounting principles prescribe a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. The Bank recognizes, when applicable, interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Consolidated Statements of Income. The Bank’s federal and Pennsylvania and Maryland state tax returns for taxable years through 2015 have been closed for purposes of examination by the Internal Revenue Service and the Pennsylvania and Maryland taxing authorities. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Capital Requirements | |
Regulatory Capital Requirements | Note 12 - Regulatory Capital Requirements Included in interest-earning deposits with other institutions are required federal reserves of $11.7 million and $11.5 million at December 31, 2019 and December 31, 2018, respectively, for facilitating the implementation of monetary policy by the Federal Reserve System. The required reserves are computed by applying prescribed ratios to the classes of average deposit balances. These reserves are held in the form of cash on-hand and a balance maintained with the Federal Reserve Bank. The Company is subject to various regulatory capital requirements administered by the federal banking agencies. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk-weightings, and other factors. 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 financial statements. Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios (set forth in the tables below) of Total and Tier I capital to risk-weighted assets and Tier I capital to average assets. The final Basel III rules require the Company to maintain a minimum amount and ratio of Common Equity Tier I capital (as defined in the regulations) to risk-weighted assets. Additionally, under Basel III rules, the decision was made to opt-out of including accumulated other comprehensive income in regulatory capital. As of December 31, 2019 and December 31, 2018, the Bank and the Company were categorized as “Well Capitalized” under the regulatory framework for prompt corrective action promulgated by the FDIC and the Federal Reserve, respectively. The Company believes that no conditions or events have occurred that would change this conclusion since such date. To be categorized as Well Capitalized, the Bank must maintain minimum Total capital, Common Equity Tier I capital, Tier I capital, and Tier I leverage ratios as set forth in the tables below (dollars in thousands). December 31, 2019 Bank Company Amount Ratio Amount Ratio Total capital (to risk weighted assets) Actual $ 114,626 17.64 % $ 118,113 18.17 % For capital adequacy purposes 51,989 8.00 52,014 8.00 To be well capitalized 64,986 10.00 65,017 10.00 Common equity tier I (to risk weighted assets) Actual $ 109,747 16.89 % $ 113,234 17.42 % For capital adequacy purposes 29,244 4.50 29,258 4.50 To be well capitalized 42,241 6.50 42,261 6.50 Tier I capital (to risk weighted assets) Actual $ 109,747 16.89 % $ 113,234 17.42 % For capital adequacy purposes 38,992 6.00 39,010 6.00 To be well capitalized 51,989 8.00 52,014 8.00 Tier I capital (to average assets) Actual $ 109,747 11.46 % $ 113,234 11.76 % For capital adequacy purposes 38,314 4.00 38,504 4.00 To be well capitalized 47,892 5.00 48,130 5.00 December 31, 2018 Bank Company Amount Ratio Amount Ratio Total capital (to risk weighted assets) Actual $ 111,857 16.85 % $ 115,390 17.38 % For capital adequacy purposes 53,108 8.00 53,127 8.00 To be well capitalized 66,384 10.00 66,409 10.00 Common equity tier I (to risk weighted assets) Actual $ 107,451 16.19 % $ 110,981 16.71 % For capital adequacy purposes 29,873 4.50 29,884 4.50 To be well capitalized 43,150 6.50 43,166 6.50 Tier I capital (to risk weighted assets) Actual $ 107,451 16.19 % $ 110,981 16.71 % For capital adequacy purposes 39,831 6.00 39,845 6.00 To be well capitalized 53,108 8.00 53,127 8.00 Tier I capital (to average assets) Actual $ 107,451 11.33 % $ 110,981 11.71 % For capital adequacy purposes 37,947 4.00 37,921 4.00 To be well capitalized 47,434 5.00 47,401 5.00 |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Stock Based Compensation | |
Stock Based Compensation | Note 13 - Stock Based Compensation The Company currently has two stock plans that allow for the issuance of stock based compensation, the Allegheny Valley Bancorp, Inc. 2011 Stock Incentive Plan (the “2011 Plan”) and the Standard Financial Corp. 2012 Equity Incentive Plan (the “2012 Plan”). On February 26, 2019, 1,820 shares of restricted stock were awarded to directors out of the 2011 Plan. The awards vested quarterly through December 31, 2019 and the related compensation expense was recognized straight line over the 11 month vesting period. On March 12, 2019, 2,727 shares of restricted stock were awarded to employees out of the 2011 Plan. The awards vest over 34 months and the related compensation expense is being recognized straight line over the vesting period. On September 28, 2018, 250 shares of restricted stock were awarded out of the 2011 Plan. The award vests over two years and the related compensation expense will be recognized straight line over the vesting period. At December 31, 2019, there were 72,588 and 101,144 shares available to be issued under the 2011 Plan and the 2012 Plan, respectively. For both the years ended December 31, 2019 and December 31, 2018, there was no recorded compensation expense related to stock options. As of December 31, 2019, all outstanding stock options were fully vested and there was no unrecognized compensation cost. The following table summarizes transactions regarding the options under the Plan: Weighted Average Weighted Average Exercise Remaining Options Price Contractual Term Outstanding at December 31, 2017 302,231 $ 17.25 4.11 Granted — — Exercised (35,536) 18.25 Forfeited — — Outstanding at December 31, 2018 266,695 $ 17.12 3.32 Granted — — Exercised (18,914) 17.74 Forfeited — — Outstanding at December 31, 2019 247,781 $ 17.07 Exercisable at December 31, 2018 266,695 $ 17.12 Exercisable at December 31, 2019 247,781 $ 17.07 For the year ended December 31, 2019, there was $81,000 of compensation expense recorded on restricted stock grants. For the year ended December 31, 2018, there was $972 of compensation expense recorded on restricted stock grants.As of December 31, 2019, there was $59,000 of unrecognized compensation expense that will be recognized over the remaining vesting periods. The following table summarizes transactions regarding restricted stock under the Plan: Weighted Average Number of Grant Date Restricted Price Per Shares Share Non-vested shares at December 31, 2017 — $ — Granted 250 31.10 Vested — — Forfeited — — Non-vested shares at December 31, 2018 250 $ 31.10 Granted 4,547 29.13 Vested (2,853) 29.47 Forfeited — — Non-vested shares at December 31, 2019 1,944 $ 28.90 |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 12 Months Ended |
Dec. 31, 2019 | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan | Note 14 - Employee Stock Ownership Plan The Company established a tax qualified Employee Stock Ownership Plan (“ESOP”) for the benefit of its employees in conjunction with the stock conversion on October 6, 2010. Eligible employees begin to participate in the plan after one year of service and become 20% vested in their accounts after two years of service, 40% after three years of service, 60% after four years of service, 80% after five years of service and 100% after six years of service, or earlier, upon death, disability or attainment of normal retirement age. In connection with the stock conversion, the purchase of the 278,254 shares of the Company stock by the ESOP was funded by a loan from the Company through the Bank. Unreleased ESOP shares collateralize the loan payable, and the cost of the shares is recorded as a contra-equity account in the stockholders’ equity of the Company. Shares are released as debt payments are made by the ESOP to the loan. The ESOP’s sources of repayment of the loan can include dividends, if any, on the unallocated stock held by the ESOP and discretionary contributions from the Company to the ESOP and earnings thereon. Compensation expense is equal to the fair value of the shares committed to be released and unallocated ESOP shares are excluded from outstanding shares for purposes of computing earnings per share. Compensation expense related to the ESOP of $410,000 and $440,000 was recognized during the years ended December 31, 2019 and December 31, 2018, respectively. Dividends on unallocated shares are not treated as ordinary dividends but are instead used to repay the ESOP loan and recorded as compensation expense. As of December 31, 2019, the ESOP held a total of 253,588 shares of the Company’s stock.Of the 253,588 shares, there were 159,003 unallocated as of December 31, 2019 with a fair market value of $4.8 million. As of December 31, 2018, the ESOP held 254,610 shares of the Company’s stock. Of the 254,610 shares, there were 173,458 unallocated as of December 31, 2018 with a fair market value of $5.2 million. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefit Plans | |
Employee Benefit Plans | Note 15 - Employee Benefit Plans The Company sponsors a pension plan which is a noncontributory defined benefit retirement plan. Effective August 1, 2005, the annual benefit provided to employees under this defined benefit pension plan was frozen by the Bank. Freezing the plan eliminated all future benefit accruals; however, the accrued benefit as of August 1, 2005 remained. Obligations and Funded Status The following table sets forth the change in the plan assets and the projected benefit obligations of the Standard Bank PaSB Defined Benefit Pension Plan and Trust at December 31, 2019 and December 31, 2018 (dollars in thousands): December 31 2019 2018 Change in projected benefit obligation: Benefit obligation at beginning of year $ 3,437 $ 4,168 Interest cost 123 131 Settlement (gain) loss (32) 11 Actuarial loss (gain) 388 (312) Benefits paid (37) (36) Settlement payments (411) (525) Projected benefit obligation at end of year 3,468 3,437 Change in plan assets: Fair value of plan assets at beginning of year 2,883 3,564 Actual return on plan assets 454 (99) Benefits paid (37) (36) Administrative expenses (33) (21) Settlement payments (411) (525) Fair value of plan assets at end of year 2,856 2,883 Funded status $ (612) $ (554) Amounts recognized in accumulated other comprehensive loss consists of: Unrecognized actuarial loss $ 405 $ 400 Total $ 405 $ 400 The accumulated benefit obligation for the defined benefit pension plan was approximately $3.5 million and $3.4 million at December 31, 2019 and December 31, 2018, respectively. Components of Net Periodic Benefit Cost The net periodic pension cost for the years ended December 31, 2019 and December 31, 2018 was as follows (dollars in thousands): Years Ended December 31 2019 2018 Interest Cost $ 123 $ 131 Expected return on plan assets (126) (162) Amortization of net loss 9 10 Settlement obligation 48 61 Net periodic pension cost $ 54 $ 40 The estimated net loss and prior service cost that will be amortized from accumulated other comprehensive income (loss) into the net periodic benefit cost in 2020 are as follows (dollars in thousands): Net loss $ 10 Total $ 10 Assumptions The weighted-average assumptions used to determine benefit obligations at December 31, 2019 and December 31, 2018 were as follows: December 31 2019 2018 Discount rate 3.25 % 4.00 % The weighted-average assumptions used to determine net periodic benefit cost for years ended December 31, 2019 and December 31, 2018 were as follows: December 31 2019 2018 Discount rate 3.25 % 4.00 % The long-term rate of return on plan assets was assumed to be 5.00% for December 31, 2019 and December 31, 2018 and gives consideration to returns currently being earned on plan assets, as well as future rates expected to be earned. Plan Assets The Bank’s defined benefit pension plan weighted-average asset allocations at December 31, 2019 and December 31, 2018 by assets category are as follows: December 31 Asset Category 2019 2018 Cash and Cash Equivalents 2.11 % 2.89 % Equity Mutual Funds 55.68 37.88 Bond Mutual Funds 42.21 59.23 Total 100.00 % 100.00 % The asset allocation and policy limits are evaluated periodically and may be changed at the discretion of the investment committee. The current strategic allocation for the defined benefit pension plan assets is to maintain 50% in equity mutual funds and 50% in bond mutual funds. This will move slightly in either direction as tactical adjustments are made quarterly. A portion of the equity portfolio can be moved into a cash equivalent investment based on market signals to provide some protection when equity markets sell-off, like they did in December 2018. The following tables set forth by level, within the fair value hierarchy, the plan’s assets at fair value as of December 31, 2019 and December 31, 2018 (dollars in thousands): Level I Level II Level III Total December 31, 2019: Cash and Cash Equivalents $ 61 $ — $ — $ 61 Domestic Stock Funds 1,251 — — 1,251 International Stock Funds 339 — — 339 Domestic Bond Funds 1,205 — — 1,205 Total assets at fair value $ 2,856 $ — $ — $ 2,856 December 31, 2018: Cash and Cash Equivalents $ 83 $ — $ — $ 83 Domestic Stock Funds 896 — — 896 International Stock Funds 196 — — 196 Domestic Bond Funds 1,708 — — 1,708 Total assets at fair value $ 2,883 $ — $ — $ 2,883 Cash Flows There is an expected contribution of $100,000 to the defined benefit pension plan during 2020. The following benefit payments which reflect expected future service, as appropriate, are expected to be paid subsequent to December 31, 2019 (dollars in thousands): Year Ended December 31, Plan Benefits 2020 $ 682 2021 152 2022 157 2023 136 2024 151 2025-2029 818 Total $ 2,096 The Company participates in the Pentegra Financial Institutions Thrift Plan, a multi-employer 401(k) plan, which provides benefits to substantially all of the Company’s employees. Employees’ contributions to the plan are matched by the Company up to a maximum of four percent of such employees’ pretax salaries. Expense recognized for the plan was $309,000 and $306,000 for the years ended December 31, 2019 and December 31, 2018, respectively. The Company sponsors a Supplemental Executive Retirement Plan (“SERP”) to provide certain additional retirement benefits to participating executive officers. During the year ended December 31, 2019 and December 31, 2018, the Company had service cost of $102,000 and $114,000 and interest cost of $3,000 and $4,000 related to the SERP, respectively. |
Financial Instruments With Off-
Financial Instruments With Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments With Off-Balance Sheet Risk | |
Financial Instruments With Off-Balance Sheet Risk | Note 16 - Financial Instruments With Off-Balance Sheet Risk In the normal course of business, the Company extends credit in the form of various outstanding commitments that are not reflected in the accompanying Consolidated Financial Statements. These off-balance sheet instruments involve, to various degrees, elements of credit and interest rate risk not reported in the statement of financial condition. Financial instruments with off-balance sheet risk as of December 31, 2019 and December 31, 2018 were comprised of the following (dollars in thousands): December 31 2019 2018 One-to-four family and construction: Loan commitments $ 5,869 $ 872 Undisbursed home equity lines of credit 30,716 34,485 Undisbursed funds - construction loans in process 3,931 6,129 Commerical loan commitments 58,569 67,240 Standby letters of credit 4,012 4,202 Other 18,601 24,251 Total $ 121,698 $ 137,179 The Company uses the same credit policies in making commitments for off-balance sheet financial instruments as it does for on-balance sheet instruments. Collateral is generally required to support financial instruments with credit risk and it typically includes real estate property. The Company grants loan commitments at prevailing market rates of interest. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any conditions established in the loan agreement. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. The Company’s exposure to credit loss in the event of nonperformance by the other party to these financial instruments is represented by the contract amount of the financial instrument and is limited by subjecting them to credit approval and monitoring procedures. Substantially all commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of the loan funding. Sometimes commitments expire without being drawn upon. Therefore, the total contractual amounts presented do not necessarily represent future funding requirements. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value of Assets and Liabilities | |
Fair Value of Assets and Liabilities | Note 17 - Fair Value of Assets and Liabilities Fair Value Hierarchy Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. GAAP established a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels: Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. A contractually binding sales price also provides reliable evidence of fair value. Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that utilize model-based techniques for which all significant assumptions are observable in the market. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement; inputs to the valuation methodology that utilize model-based techniques for which significant assumptions are not observable in the market; or inputs to the valuation methodology that requires significant management judgment or estimation, some of which may be internally developed. Management maximizes the use of observable inputs and minimizes the use of unobservable inputs when determining fair value measurements. Management reviews and updates the fair value hierarchy classifications of the Company’s assets and liabilities on a quarterly basis. Assets Measured at Fair Value on a Recurring Basis Investment, Mortgage-Backed and Equity Securities Fair values of investment, mortgage-backed and equity securities were primarily measured using information from a third-party pricing service. This service provides pricing information by utilizing evaluated pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data from market research publications. Level 1 securities are comprised of equity securities. As quoted prices were available, unadjusted, for identical securities in active markets, these securities were classified as Level 1 measurements. Level 2 securities were primarily comprised of debt securities issued by government agencies, states and municipalities, corporations, as well as mortgage-backed securities issued by government agencies. Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models. In cases where there may be limited or less transparent information provided by the Company’s third-party pricing service, fair value may be estimated by the use of secondary pricing services or through the use of non-binding third-party broker quotes. On a quarterly basis, management reviews the pricing information received from the Company’s third-party pricing service. This review process includes a comparison to non-binding third-party broker quotes, as well as a review of market-related conditions impacting the information provided by the Company’s third-party pricing service. Management primarily identifies investment securities which may have traded in illiquid or inactive markets by identifying instances of a significant decrease in the volume or frequency of trades, relative to historical levels, as well as instances of a significant widening of the bid-ask spread in the brokered markets. Securities that are deemed to have been trading in illiquid or inactive markets may require the use of significant unobservable inputs. As of December 31, 2019 and December 31, 2018, management did not make adjustments to prices provided by the third-party pricing service as a result of illiquid or inactive markets. On a quarterly basis, management also reviews a sample of securities priced by the Company’s third-party pricing service to review significant assumptions and valuation methodologies used. Based on this review, management determines whether the current placement of the security in the fair value hierarchy is appropriate or whether transfers may be warranted. The following table presents the assets measured at fair value on a recurring basis as of December 31, 2019 and December 31, 2018 by level within the fair value hierarchy (dollars in thousands): Level 1 Level 2 Level 3 Total December 31, 2019: Investment securities available for sale: U.S. government and agency obligations $ — $ 8,489 $ — $ 8,489 Corporate bonds — 2,579 — 2,579 Municipal obligations — 58,816 — 58,816 Total investment securities available for sale — 69,884 — 69,884 Equity securities 2,955 — — 2,955 Mortgage-backed securities available for sale — 91,478 — 91,478 Total recurring fair value measurements $ 2,955 $ 161,362 $ — $ 164,317 December 31, 2018: Investment securities available for sale: U.S. government and agency obligations $ — $ 8,270 $ — $ 8,270 Corporate bonds — 4,201 — 4,201 Municipal obligations — 53,698 — 53,698 Total investment securities available for sale — 66,169 — 66,169 Equity securities 2,725 — — 2,725 Mortgage-backed securities available for sale — 81,794 — 81,794 Total recurring fair value measurements $ 2,725 $ 147,963 $ — $ 150,688 Assets Measured at Fair Value on a Nonrecurring Basis The following table presents the assets measured at fair value on a nonrecurring basis as of December 31, 2019 and December 31, 2018 by level within the fair value hierarchy (dollars in thousands): Level 1 Level 2 Level 3 Total December 31, 2019: Foreclosed real estate $ — $ — $ 404 $ 404 Total nonrecurring fair value measurements $ — $ — $ 404 $ 404 December 31, 2018: Foreclosed real estate $ — $ — $ 486 $ 486 Total nonrecurring fair value measurements $ — $ — $ 486 $ 486 The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Company uses Level 3 inputs to determine fair value (dollars in thousands): Quantitative Information about Level 3 Fair Value Measurements December 31 Valuation Unobservable Range 2019 2018 Techniques Input (Weighted Average) Foreclosed real estate $ 404 $ 486 Appraisal of collateral (1) Appraisal adjustments (2) 0% to 30% Liquidation expenses (2) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. The following table presents the carrying value, estimated fair value, and placement in the fair value hierarchy of the Company’s financial instruments not required to be carried at fair value as of December 31, 2019 and December 31, 2018 (dollars in thousands): Carrying Estimated Fair Value Value Level 1 Level 2 Level 3 December 31, 2019: Financial Instruments - Assets: Cash on hand and due from banks (1) $ 3,396 $ 3,396 $ 3,396 $ — $ — Interest-earning deposits in other institutions (1) 29,031 29,031 29,031 — — Certificate of deposit (1) 249 249 249 — — Investment securities (2) 69,884 69,884 — 69,884 — Equity Securities (3) 2,955 2,955 2,955 — — Mortgage-backed securities (2) 91,478 91,478 — 91,478 — Federal Home Loan Bank and other restricted stock (1) 7,486 7,486 7,486 — — Loans receivable (1) 712,965 721,197 — — 721,197 Bank-owned life insurance (1) 23,374 23,374 23,374 — — Accrued interest receivable (1) 2,794 2,794 2,794 — — Financial Instruments - Liabilities: Demand and savings accounts (1) $ 489,292 $ 489,292 $ 489,292 $ — $ — Certificate deposit accounts (1) 245,114 247,456 — — 247,456 Federal Home Loan Bank short-term borrowings (1) — — — — — Long-term borrowings (1) 99,098 100,032 — — 100,032 Securities sold under agreements to repurchase (1) 3,740 3,740 3,740 — — Accrued interest payable (1) 1,010 1,010 1,010 — — December 31, 2018: Financial Instruments - Assets: Cash on hand and due from banks (1) $ 3,371 $ 3,371 $ 3,371 $ — $ — Interest-earning deposits in other institutions (1) 12,836 12,836 12,836 — — Certificate of deposit (1) 249 249 249 — — Investment securities (2) 66,169 66,169 — 66,169 — Equity Securities (3) 2,725 2,725 2,725 — — Mortgage-backed securities (2) 81,794 81,794 — 81,794 — Federal Home Loan Bank and other restricted stock (1) 7,900 7,900 7,900 — — Loans receivable (1) 728,982 717,491 — — 717,491 Bank-owned life insurance (1) 22,572 22,572 22,572 — — Accrued interest receivable (1) 2,823 2,823 2,823 — — Financial Instruments - Liabilities: Demand and savings accounts (1) $ 471,177 $ 471,177 $ 471,177 $ — $ — Certificate deposit accounts (1) 246,697 245,740 — — 245,740 Federal Home Loan Bank short-term borrowings (1) 4,524 4,524 4,524 — — Federal Home Loan Bank advances (1) 104,963 104,345 — — 104,345 Securities sold under agreements to repurchase (1) 2,137 2,137 2,137 — — Accrued interest payable (1) 1,154 1,154 1,154 — — (1) The financial instrument is carried at amortized cost. (2) The financial instrument is carried at fair value through other comprehensive income. (3) The financial instrument is carried at fair value through net income. |
Parent Only Financial Informati
Parent Only Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure | |
Parent Only Financial Information | Note 18 - Parent Only Financial Information Statement of Financial Condition December 31 (Dollars in thousands) 2019 2018 Assets Cash $ 2,222 $ 1,421 Interest-earning deposits with other institutions 82 47 Cash and cash equivalents 2,304 1,468 Equity securities 1,160 1,022 Accrued interest receivable and other assets 51 1,047 Investment in subsidiary 138,606 134,451 Total Assets $ 142,121 $ 137,988 Liabilities and Stockholders’ Equity Accrued interest payable and other liabilities $ 273 $ 98 Stockholders’ equity 141,848 137,890 Total Liabilities and Stockholders’ Equity $ 142,121 $ 137,988 Statement of Operations Years Ended December 31 (Dollars in thousands) 2019 2018 Income Dividends from subsidiary $ 7,126 $ 2,000 Dividend Income 38 62 Gain on sale of investments — 394 Net equity securities fair value adjustment gains (losses) 138 (468) Total Income 7,302 1,988 Operating expenses 200 259 Total Expense 200 259 Income before taxes 7,102 1,729 Credit for income taxes (35) (70) Income before equity in undistributed net income of subsidiaries 7,137 1,799 Equity in undistributed income of Standard Bank 1,669 7,002 Net Income $ 8,806 $ 8,801 Comprehensive Income $ 8,803 $ 8,872 Statement of Cash Flows Years Ended December 31 (Dollars in thousands) 2019 2018 Net income $ 8,806 $ 8,801 Adjustments to reconcile net income to net cash provided by operating activities: Net gain on sale of equity securities — (394) Net equity securities fair value adjustment (gains) losses (138) 468 Stock compensation expense 81 1 ESOP expense 410 440 Net change in other assets and liabilities 1,171 215 Equity in undistributed income of subsidiaries (1,669) (7,002) Net cash provided by operating activities 8,661 2,529 Investing Activities: Proceeds from sale of equtiy securities — 1,900 Purchases of equity securities — (546) Net cash provided by investing activities — 1,354 Financing activities: Proceeds from exercise of stock options 257 648 Stock repurchases (4,012) (428) Dividends paid (4,070) (4,088) Net cash used for financing activities (7,825) (3,868) Net change in cash and cash equivalents 836 15 Cash and cash equivalents at the beginning of the year 1,468 1,453 Cash and cash equivalents at the end of the year $ 2,304 $ 1,468 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | Note 19 - Accumulated Other Comprehensive Income (Loss) The following tables present the significant amounts reclassified out of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income (loss) by component for the years ended December 31, 2019 and December 31, 2018. Unrealized Gains on Unrecognized Available for Sale Pension Securities Costs Total Balance as of December 31, 2017 $ 840 $ (312) $ 528 Other comprehensive (loss)income before reclassification (1,540) 15 (1,525) Amount reclassified from accumulated other comprehensive income 13 56 69 Total other comprehensive (loss) income (1,527) 71 (1,456) Change in accounting principle for adoption of ASU 2016‑01 (416) — (416) Balance as of December 31, 2018 $ (1,103) $ (241) $ (1,344) Other comprehensive income before reclassification 2,488 (48) 2,440 Amount reclassified from accumulated other comprehensive loss 1 45 46 Total other comprehensive income (loss) 2,489 (3) 2,486 Balance as of December 31, 2019 $ 1,386 $ (244) $ 1,142 Amount Reclassified from Accumulated Other Comprehensive Affected Line on the Income (Loss) Consolidated Statements of Income December 31, 2019: Unrealized losses on available for sale securities $ 1 Net losses on sales of securities — Income tax expense 1 Net of tax Amortization of defined benefit items: Actuarial loss 9 Other operating expenses Distribution settlement 48 Other operating expenses (12) Income tax expense 45 Net of tax Total reclassification for the period $ 46 Net income December 31, 2018: Unrealized losses on available for sale securities $ 17 Net losses on sales of securities (4) Income tax expense 13 Net of tax Amortization of defined benefit items: Actuarial loss 10 Other operating expenses Distribution settlement 61 Other operating expenses (15) Income tax expense 56 Net of tax Total reclassification for the period $ 69 Net income |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition | |
Revenue Recognition | Note 20 - Revenue Recognition Effective January 1, 2018, the Company adopted ASU No. 2014‑09 Revenue from Contracts with Customers - Topic 606 and all subsequent ASUs that modified Topic 606. As stated in Note 1 Summary of Significant Accounting Policies , the Company elected to apply the standard utilizing the modified retrospective approach with a cumulative effect of adoption for the impact from uncompleted contracts at the date of adoption. However, the implementation of the new standard did not have a material impact on the measurement or recognition of revenue of prior periods; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as loan servicing fees, gains on the sale of loans, earnings on bank-owned life insurance, and gains on the sale of investments are also not within the scope of the new guidance. As a result, no changes were made during the period related to these sources of revenue. Topic 606 is applicable to noninterest revenue streams such as service charges, which includes charges on deposit accounts, interchange fees, and other service fees, and investment management fees. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. The main types of noninterest revenue within the scope of the standard are as follows: Service Charges Service charges on deposit accounts consist of insufficient funds (NSF) fees, monthly service fees, minimum balance fees, and other deposit account related fees. The Company’s performance obligation for monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. NSF fees, minimum balance fees, and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges is primarily received immediately or in the following month through a direct charge to customers’ accounts. Income from debit and credit cards is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks. The Company’s performance obligation for interchange fees is largely satisfied, and related revenue recognized, when the services are rendered. Payment is typically received immediately. Other fee income is primarily comprised of ATM fees and other service charges. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Other service charges include revenue from processing wire transfers, bill pay service, ACH origination, and other services. The Company’s performance obligation for ATM fees and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Investment Management Fees Investment management fees include three basic components including brokerage commissions, trailers and advisory fees. Brokerage commissions are fees earned from the sale of annuities, stocks, bonds, mutual funds and insurance products and are recognized in the month following the settlement date, which is when the Company has satisfied its performance obligation (that is successful consummation of trade in a compliant manner) and is paid. The Company also receives periodic services fees (i.e. trailers) from mutual fund companies typically based on a percentage of market value and are paid quarterly. Advisory fees are earned over time and based on an annual percentage rate of the market value of the accounts. Advisory fees are charged to customer’s accounts, on a quarterly basis “in advance”, beginning in the first month of account opening and funding in accordance with a customer signed agreement. The first quarter’s pro-rated initial advisory fees are then paid to the Company the month after the account is opened and funded. Thereafter the first pro-rated quarter, the advisory fees are paid to the Company monthly with 1/3 of the quarterly fee being earned each month. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2019 and December 31, 2018 (dollars in thousands). Year Ended December 31, 2019 2018 Noninterest income In scope of Topic 606: Service charges on deposit accounts $ 2,977 $ 2,900 Investment management fees 695 644 Noninterest income (in-scope of Topic 606) 3,672 3,544 Noninterest income (out-of-scope of Topic 606) 1,380 803 Total noninterest income $ 5,052 $ 4,347 Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of December 31, 2019 and December 31, 2018, the Company did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Other Intangibles | |
Goodwill and Other Intangibles | Note 21 - Goodwill and Other Intangibles The Company has recorded goodwill associated with mergers totaling $25.8 million. Goodwill is not amortized, but is periodically evaluated for impairment. The Company did not recognize any impairment during either of the years ended December 31, 2019 and December 31, 2018. Identifiable intangibles are amortized to their estimated residual values over the expected useful lives of such assets. The balance of the core deposit intangible at December 31, 2019 was $1.9 million net of $2.2 million of accumulated amortization as of that date. The balance of the core deposit intangible at December 31, 2018 was $2.5 million net of $1.6 million of accumulated amortization as of that date. As of December 31, 2019, the estimated future amortization expense for the core deposit intangible was (dollars in thousands): 2020 470 2021 353 2022 326 2023 326 2024 325 2025 81 $ 1,881 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Standard AVB Financial Corp. and its direct and indirect wholly owned subsidiaries, Standard Bank, PaSB (the “Bank”), and Westmoreland Investment Company. All significant intercompany accounts and transactions have been eliminated in consolidation. Standard AVB Financial Corp. owns all of the outstanding shares of common stock of the Bank. |
Nature of Operations | Nature of Operations The Company’s primary asset is the stock of its wholly owned subsidiary, the Bank, a Pennsylvania-chartered state savings bank with deposits insured by the Federal Deposit Insurance Corporation (“FDIC”). The Bank is a retail-oriented financial institution, which offers traditional deposit and loan products through its seventeen offices in Allegheny, Westmoreland, and Bedford Counties of Pennsylvania and Allegany County of Maryland. Westmoreland Investment Company is a Delaware subsidiary, holding residential mortgage loans as the majority of its assets. |
Use of Estimates | Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of related revenue and expenses during the reporting period. Although our current estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that in 2020, actual conditions could be worse than anticipated in those estimates, which could materially affect our results of operations and financial condition. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, obligations associated with the deferred benefit pension plan, valuation of deferred taxes, fair value of investments and mortgage-backed securities available for sale, and the valuation of intangible assets. |
Significant Group Concentrations of Credit Risk | Significant Group Concentrations of Credit Risk Most of the Bank’s activities are with customers located within Allegheny, Westmoreland, and Bedford Counties of Pennsylvania and Allegany County of Maryland. Notes 2, 3 and 4 discuss the types of securities in which the Company invests. Note 5 details the types of lending in which the Company engages. The Company does not have any significant concentrations in any one industry or customer. |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purposes of reporting cash flows, the Company has defined cash and cash equivalents as those amounts included in the balance sheet captions cash on hand and due from banks and interest-earning deposits in other institutions. Interest-earning deposits in other institutions includes balances with original maturities of 90 days or less. Account balances are insured by the FDIC up to at least $250,000. At times, the Company may maintain more than $250,000 in cash at a financial institution. |
Investment, Mortgage-Backed and Equity Securities | Investment, Mortgage-Backed and Equity Securities The Company accounts for investment, mortgage-backed and equity securities by classifying them into one of three categories at the time of purchase: trading, held to maturity, and available for sale. Securities bought and held principally for the purpose of selling them in the near term are classified as trading and are reported at fair value, with unrealized gains and losses included in earnings. The Company had no trading securities in 2019 or 2018. Held-to-maturity securities are debt securities acquired with the intent and ability to hold to maturity and are stated at amortized cost. The Company had no held-to-maturity securities in 2019 or 2018. Available-for-sale securities are debt and equity securities that are not classified as trading or held-to-maturity securities and serve principally as a source of liquidity. Available-for-sale debt securities are stated at fair value, with unrealized holding gains and losses reported as a separate component of stockholders’ equity, net of tax, until realized. Available-for-sale equity securities are stated at fair value, with unrealized holding gains and losses reported as equity fair value adjustments in the income statement. Declines in the fair value of individual securities below their cost that are other than temporary will result in write-downs of the individual securities to their fair value. The other-than-temporary impairment is separated into credit-related and noncredit-related components. The credit-related impairment generally represents the amount by which the present value of the cash flows that are expected to be collected on an other-than-temporarily impaired security fall below its amortized cost while the noncredit-related component represents the remaining portion of the impairment not otherwise designated as credit-related. The Company recognizes credit-related, other-than-temporary impairments in earnings, while noncredit-related, other-than-temporary impairments on debt securities are recognized, net of deferred taxes, in accumulated other comprehensive income. In estimating other than-temporary losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) whether the Company plans to sell or will be forced to sell the security. Realized securities gains and losses are computed using the specific identification method. Amortization of premiums and accretion of discounts are recorded as interest income from investments over the life of the security utilizing the level yield method. Interest and dividends on investment securities are recognized as income when earned. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock The Company, as a member of the Federal Home Loan Bank (“FHLB”) system, is required to maintain an investment in capital stock of the FHLB. During 2019, the FHLB made quarterly dividend payments. Additionally, excess capital stock was repurchased weekly in an amount equal to the lesser of five percent of the member’s total capital stock outstanding or its excess capital stock outstanding. FHLB stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost on the Consolidated Statements of Financial Condition, and evaluated for impairment. The determination of whether the stock is impaired is based on the assessment of the ultimate recoverability of the cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of the cost is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB. Management evaluated the stock based on the above and determined that the stock was not impaired as of December 31, 2019 or December 31, 2018. |
Loans Receivable | Loans Receivable Loans which management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their unpaid principal balance, adjusted for any allowance for loan losses and any deferred loan fees or costs. Interest on loans is credited to income as earned. Interest income on loans is accrued at the contractual rate on the principal amount outstanding and includes the amortization of deferred loan fees and costs. Deferred loan fees and costs are netted and amortized to income over the life of the loan. Accrual of interest is discontinued when, in the opinion of management, collection is doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. Amortization of any net deferred fees is discontinued when a loan is placed on nonaccrual status. Interest on nonaccrual 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, six months of timely payments are received, and future payments are reasonably assured. All loans are charged off when management determines that principal and interest are not collectible. Any excess of the Company’s recorded investment in impaired loans over the measured value of the loan is provided for in the allowance for loan losses. Loans Acquired Loans acquired including loans that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable, are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance. Loans are evaluated individually to determine if there is evidence of deterioration of credit quality since origination. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield,” is recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “non-accretable difference,” are not recognized as a yield adjustment or as a loss accrual or a valuation allowance. Increases in expected cash flows subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining estimated life. Decreases in expected cash flows are recognized immediately as impairment. Any valuation allowances on these impaired loans reflect only losses incurred after acquisition. For purchased loans acquired that are not deemed impaired at acquisition, credit discounts representing the principal losses expected over the life of the loan are a component of the initial fair value. Loans are aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. Subsequent to the purchase date, the methods utilized to estimate the required allowance for credit losses for these loans is similar to originated loans; however, the Company records a provision for loan losses only when the required allowance exceeds any remaining credit discounts. The remaining difference between the purchase price and the unpaid principal balance at the date of acquisition are recorded in interest income over the life of the loans. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan and lease losses represents the amount which management estimates is necessary to provide for probable losses in its loan and lease portfolio. The Company uses the allowance method in providing for loan and lease losses. Accordingly, all loan and lease losses are charged to the allowance, and all recoveries are credited to it. The allowance for loan and lease losses is established through a provision for loan losses which is charged to operations. |
Mortgage Loans Held for Sale and Mortgage Servicing Rights | Mortgage Loans Held for Sale and Mortgage Servicing Rights Mortgage loans held for sale are valued at the lower of cost or fair value as determined by current investor yield requirements calculated on an aggregate basis. Mortgage servicing rights (“MSRs”) represent the right to service loans for third-party investors. MSRs are recognized as a separate asset for the right to service mortgage loans for others, regardless of how those servicing rights are acquired. MSRs are recognized upon the sale of mortgage loans to a third-party investor with the servicing rights retained by the Bank. Servicing loans for others generally consists of collecting mortgage payments from borrowers, maintaining escrow accounts, remitting payments to third-party investors and, when necessary, processing foreclosures. Serviced loans are not included in the Consolidated Statements of Financial Condition. Loan servicing income includes servicing fees received from the third-party investors. Originated MSRs are recorded in accrued interest receivable and other assets on the Consolidated Statements of Financial Condition at allocated fair value at the time of the sale of the loans to the third-party investor. MSRs are amortized in proportion to and over the estimated period of net servicing income. MSRs are carried at amortized cost, less a valuation allowance for impairment, if any. Impairment exists if the carrying value of MSRs exceeds the estimated fair value of the MSRs. There was no impairment at December 31, 2019 or December 31, 2018. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets, including loan and loan participation sales, are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Bank; (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and (3) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Foreclosed Real Estate | Foreclosed Real Estate Foreclosed real estate consists of property acquired through a foreclosure proceeding or acceptance of a deed in lieu of foreclosure. Foreclosed real estate is initially recorded at fair value, net of estimated selling costs, at the date of foreclosure establishing a new cost basis. Any write downs based on the asset’s fair value at the date of acquisition are charged to the allowance for loan losses. 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 other expense. |
Office Properties and Equipment | Office Properties and Equipment Office properties and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are capitalized and depreciated to operating expense over the term of the lease or the useful life of the asset whichever is shorter. The cost of major additions and improvements is capitalized and depreciated to operating expense over the estimated remaining life of the asset. Expenditures for maintenance and repairs are charged to expense as incurred. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The Bank owns insurance on the lives of certain directors and officers. The policies were purchased to help offset the cost of various fringe benefit plans, including health care. The cash surrender value of these policies is included on the Consolidated Statements of Financial Condition and any increases in the cash surrender value are recorded in noninterest income in the Consolidated Statements of Income. In the event of the death of an insured individual under these policies, a portion of the death benefit would be payable to the Bank and recorded as other income in the Consolidated Statements of Income. The remainder of the death benefit would be payable to the beneficiary, assuming the insured was employed by the Bank at the time of death. |
Goodwill and Core Deposit Intangible | Goodwill and Core Deposit Intangible Goodwill represents the excess of the purchase price over the cost of net assets purchased. Goodwill is not amortized, but is evaluated for impairment. At least annually, management reviews goodwill and evaluates events or changes in circumstances that may indicate impairment in the carrying amount of goodwill. If the sum of the expected undiscounted future cash flows is less than the carrying amount of the net assets, an impairment loss will be recognized. Impairment, if any, is measured on a discounted future cash flow basis. For December 31, 2019 and December 31, 2018, no impairment existed; however, for any future period, if the Company determines that there has been impairment in the carrying value of goodwill, the Company would record a charge to earnings, which could have a material adverse effect on net income. Core deposit intangible assets represent the premiums paid to acquire the core deposits of another institution. The premium is the amount paid in excess of the dollar amount of the deposits acquired and it is carried at amortized cost on the Consolidated Statements of Financial Condition. The Company has core deposit intangible assets relating to the 2017 acquisition of Allegheny Valley Bancorp Inc. (“Allegheny Valley”). These intangible assets are being amortized on an accelerated basis over an 8‑year period. The balance of core deposit intangibles was $1.9 million and $2.5 million, net of accumulated amortization of $2.2 million and $1.6 million, for the years ended December 31, 2019 and December 31, 2018, respectively. |
Pension Plan | Pension Plan The Bank maintains a noncontributory defined benefit pension plan covering employees whose benefits were frozen effective August 1, 2005. No future benefits are accrued, however, the plan calls for benefits to be paid to eligible employees at retirement based primarily upon years of service with the Bank. |
Interest on Deposits | Interest on Deposits Interest on deposits is accrued and charged to expense daily and is paid or credited in accordance with the terms of the respective accounts. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with GAAP. The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. 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. The Company accounts for uncertain tax positions 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%; 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% 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. The Company had no uncertain tax positions at December 31, 2019 or December 31, 2018. If the Company were to incur interest and penalties on income taxes, it would be recognized as a component of income tax expense. |
Stock Compensation | Stock Compensation The Company accounts for share-based awards in accordance with GAAP, which requires companies to estimate the fair value of awards on the date of grant. The value of the portion of the award that is ultimately expected to vest is included in compensation and employee benefits on the income statement. Compensation expense for share-based awards with graded vesting schedules is recognized on a straight-line basis over the requisite service period for the entire grant. |
Advertising Expense | Advertising Expense Advertising costs are expensed as incurred and included in other operating expense in the Consolidated Statements of Income. Advertising expense for the years ended December 31, 2019 and December 31, 2018 totaled $262,000 and $289,000, respectively. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive gain (loss). Other comprehensive gain (loss) includes the change in unrealized gains on debt securities available for sale, unrealized losses related to factors other than credit on debt securities, and the change in the pension benefit obligation for the defined benefit plan. On January 1, 2018, the Company adopted ASU 2016‑01 - Financial Instruments - Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Financial Liabilities , which requires equity securities to be measured at fair value with net unrealized gains and losses recognized in noninterest income on the Consolidated Statements of Income. As a result of the adoption of this guidance, there was a one-time cumulative effect adjustment of $416,000 between retained earnings and accumulated other comprehensive income on the Consolidated Statement of Financial Condition for December 31, 2018. The adjustment had no impact on net income for the year ended December 31, 2018. |
Earnings per Share | Earnings per Share Basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. The following table sets forth the computation of basic and diluted EPS for the years ended December 31, 2019 and December 31, 2018 (dollars in thousands except share and per share data): Years Ended December 31 2019 2018 Net income available to common stockholders $ 8,806 $ 8,801 Basic EPS: Weighted average shares outstanding 4,606,457 4,634,003 Basic EPS $ 1.91 $ 1.90 Diluted EPS: Weighted average shares outstanding 4,606,457 4,634,003 Diluted effect of common stock equivalents 36,318 51,041 Total diluted weighted average shares outstanding 4,642,775 4,685,044 Diluted EPS $ 1.90 $ 1.88 Options to purchase 247,781 and 266,695 shares of common stock were outstanding as of December 31, 2019 and December 31, 2018, respectively, with an average exercise price of $17.07 and $17.12, respectively. There were no anti-dilutive options as of December 31, 2019 or December 31, 2018. As of December 31, 2019 and December 31, 2018, there were 1,944 and 250 shares of outstanding restricted stock, respectively, that were not fully vested and included in the computation of diluted earnings per common share. |
Reclassifications | Reclassifications Certain comparative amounts for the prior year have been reclassified to conform to current-year presentation. Such reclassifications had no effect on net income or stockholders’ equity. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Adopted in 2019 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. Additionally, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) – Targeted Improvements, which, among other things, provided an additional transition method that allows entities to not apply the guidance in ASU 2016-02 in the comparative periods presented in the financial statements and instead to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted ASU 2016-02 and its related amendments as of January 1, 2019, which resulted in the recognition of finance right-of-use assets and finance lease liabilities totaling $1.1 million and $1.2 million, respectively. The Company elected to adopt the transition relief provisions from ASU 2018-11 and recorded the impact of adoption as of January 1, 2019, without restating any prior-year amounts or disclosures. Additional lease disclosures can be found in Note 7 contained herein. There was no cumulative effect adjustment to the opening balance of retained earnings required. Accounting Standards Pending Adoption In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should 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 allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) . This Update defers the effective date of ASU 2016-13 for SEC filers that are eligible to be smaller reporting companies, non-SEC filers, and all other companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. The Company has been working with a third party to evaluate the various CECL methodologies and decided to utilize the vintage method. The Company is continuing to work through implementation of that method and determine what impact it will have on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is a U.S. Securities and Exchange Commission (“SEC”) filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. A public business entity that is not an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020. All other entities, including not-for-profit entities that are adopting the amendments in this Update should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) , which deferred the effective date for ASC 350, Intangibles – Goodwill and Other , for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In August 2018, the FASB issued ASU 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes the Disclosure Requirements for Fair Value Measurements . The Update removes the requirement to disclose the amount of and reasons for transfers between Level I and Level II of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level III fair value measurements. The Update requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level III fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level III fair value measurements. This Update is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018‑14, Compensation- Retirement Benefits (Topic 715‑20) . This Update amends ASC 715 to add, remove and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The Update eliminates the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year. The Update also removes the disclosure requirements for the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost and the benefit obligation for postretirement health care benefits. This Update is effective for public business entities for fiscal years ending after December 15, 2020, and must be applied on a retrospective basis. For all other entities, this Update is effective for fiscal years ending after December 15, 2021. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) . This Update addresses customers’ accounting for implementation costs incurred in a cloud computing arrangement that is a service contract and also adds certain disclosure requirements related to implementation costs incurred for internal-use software and cloud computing arrangements. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This Update is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The amendments in this Update can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) , which deferred the effective date for ASC 350, Intangibles – Goodwill and Other , for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. This Update is not expected to have a significant impact on the Company’s financial statements. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements , which addressed issues lessors sometimes encounter. Specifically addressed in this Update were issues related to 1) determining the fair value of the underlying asset by the lessor that are not manufacturers or dealers (generally financial institutions and captive finance companies), and 2) lessors that are depository and lending institutions should classify principal and payments received under sales-type and direct financing leases within investing activities in the cash flow statement. The ASU also exempts both lessees and lessors from having to provide the interim disclosures required by ASC 250-10-50-3 in the fiscal year in which a company adopts the new leases standard. The amendments addressing the two lessor accounting issues are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other entities, the effective date is for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. This Update is not expected to have a significant impact on the Company’s financial statements. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which affects a variety of topics in the Codification and applies to all reporting entities within the scope of the affected accounting guidance. Topic 326, Financial Instruments – Credit Losses amendments are effective for SEC registrants for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other public business entities, the effective date is for fiscal years beginning after December 15, 2020, and for all other entities, the effective date is for fiscal years beginning after December 15, 2021. Topic 815, Derivatives and Hedging amendments are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods beginning after December 15, 2020. For entities that have adopted the amendments in Update 2017-12, the effective date is as of the beginning of the first annual period beginning after the issuance of this Update. Topic 825, Financial Instruments amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326) , Derivatives and Hedging (Topic 815), and Leases (Topic 842) . This Update defers the effective date of ASU 2016-13 for SEC filers that are eligible to be smaller reporting companies, non-SEC filers and all other companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Furthermore, the ASU provides a one-year deferral of the effective dates of the ASUs on derivatives and hedging for companies that are not public business entities. This Update is not expected to have a significant impact on the Company’s financial statements. In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses, Topic 326 , which allows entities to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost upon adoption of the new credit losses standard. To be eligible for the transition election, the existing financial asset must otherwise be both within the scope of the new credit losses standard and eligible for the applying the fair value option in ASC 825-10.3. The election must be applied on an instrument-by-instrument basis and is not available for either available-for-sale or held-to-maturity debt securities. For entities that elect the fair value option, the difference between the carrying amount and the fair value of the financial assets would be recognized through a cumulative-effect adjustment to opening retained earnings as of the date an entity adopted ASU 2016-13. Changes in fair value of that financial asset would subsequently be reported in current earnings. For entities that have not yet adopted ASU 2016-13, the effective dates and transition requirements are the same as those in ASU 2016-13. For entities that have adopted ASU 2016-13, ASU 2019-05 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted once ASU 2016-13 has been adopted. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) . The Update defers the effective date of ASU 2016-13 for SEC filers that are eligible to be smaller reporting companies, non-SEC filers and all other companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. This Update is not expected to have a significant impact on the Company’s financial statements. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) . The Update defers the effective dates of ASU 2016-13 for SEC filers that are eligible to be smaller reporting companies, non-SEC filers, and all other companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. This Update also amends the mandatory effective date for the elimination of Step 2 from the goodwill impairment test under ASU No. 2017-04, Intangibles ‒ Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (Goodwill) , to align with those used for credit losses. Furthermore, the ASU provides a one-year deferral of the effective dates of the ASUs on derivatives and hedging and leases for companies that are not public business entities. The Company qualifies as a smaller reporting company and does not expect to early adopt these ASUs with the exception of the ASU on leases which was adopted January 1, 2019 as noted in the Accounting Standards Adopted in 2019 section above. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses , to clarify its new credit impairment guidance in ASC 326, based on implementation issues raised by stakeholders. This Update clarified, among other things, that expected recoveries are to be included in the allowance for credit losses for these financial assets; an accounting policy election can be made to adjust the effective interest rate for existing troubled debt restructurings based on the prepayment assumptions instead of the prepayment assumptions applicable immediately prior to the restructuring event; and extends the practical expedient to exclude accrued interest receivable from all additional relevant disclosures involving amortized cost basis. The effective dates in this Update are the same as those applicable for ASU 2019-10. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Schedule of computation of basic and diluted EPS | Years Ended December 31 2019 2018 Net income available to common stockholders $ 8,806 $ 8,801 Basic EPS: Weighted average shares outstanding 4,606,457 4,634,003 Basic EPS $ 1.91 $ 1.90 Diluted EPS: Weighted average shares outstanding 4,606,457 4,634,003 Diluted effect of common stock equivalents 36,318 51,041 Total diluted weighted average shares outstanding 4,642,775 4,685,044 Diluted EPS $ 1.90 $ 1.88 |
Investment Securities (Tables)
Investment Securities (Tables) - Available-for-sale securities other than mortgage backed securities | 12 Months Ended |
Dec. 31, 2019 | |
Investment Securities | |
Schedule of investment securities available for sale | Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2019: U.S. government and agency obligations due: 1 year or less $ 5,986 $ 12 $ — $ 5,998 Beyond 1 year but within 5 years 1,470 29 — 1,499 Beyond 5 year but within 10 years 948 44 — 992 Corporate bonds due: Beyond 1 year but within 5 years 2,477 102 — 2,579 Municipal obligations due: 1 year or less 260 2 — 262 Beyond 1 year but within 5 years 5,085 244 — 5,329 Beyond 5 years but within 10 years 18,210 456 — 18,666 Beyond 10 years 33,951 648 (40) 34,559 $ 68,387 $ 1,537 $ (40) $ 69,884 December 31, 2018: U.S. government and agency obligations due: Beyond 1 year but within 5 years $ 7,428 $ — $ (81) $ 7,347 Beyond 5 year but within 10 years 940 — (17) 923 Corporate bonds due: 1 year or less 1,758 — (15) 1,743 Beyond 1 year but within 5 years 1,472 2 (10) 1,464 Beyond 5 years but within 10 years 996 — (2) 994 Municipal obligations due: Beyond 1 year but within 5 years 6,658 298 — 6,956 Beyond 5 years but within 10 years 22,384 132 (81) 22,435 Beyond 10 years 24,504 82 (279) 24,307 $ 66,140 $ 514 $ (485) $ 66,169 |
Schedule of fair value and gross unrealized losses on investment securities and the length of time the securities have been in a continuous unrealized loss position | Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses December 31, 2019: Municipal obligations $ 4,496 $ (40) $ — $ — $ 4,496 $ (40) Total $ 4,496 $ (40) $ — $ — $ 4,496 $ (40) December 31, 2018: U.S. government and agency obligations $ — $ — $ 8,270 $ (98) $ 8,270 $ (98) Corporate bonds 1,490 (12) 1,743 (15) 3,233 (27) Municipal obligations 10,049 (55) 11,730 (305) 21,779 (360) Total $ 11,539 $ (67) $ 21,743 $ (418) $ 33,282 $ (485) |
Equity Securities (Tables)
Equity Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Securities | |
Schedule of gains and losses on equity investments | Year Ended December 31, 2019 2018 Net equity securities fair value adjustment gains (losses) $ 230 $ (484) Net gains realized on the sale of equity securities during the year — 394 Gains (losses) recognized on equity securities during the period $ 230 $ (90) |
Mortgage-Backed Securities (Tab
Mortgage-Backed Securities (Tables) - Mortgage-backed securities available for sale | 12 Months Ended |
Dec. 31, 2019 | |
Mortgage-backed securities | |
Schedule of securities available for sale | Mortgage-backed securities available for sale at December 31, 2019 and December 31, 2018 were as follows (dollars in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2019: Government pass-throughs: Ginnie Mae $ 21,386 $ 188 $ (70) $ 21,504 Fannie Mae 20,537 258 - 20,795 Freddie Mac 13,986 134 (34) 14,086 Private pass-throughs 21,904 - (301) 21,603 Collateralized mortgage obligations 13,406 110 (26) 13,490 $ 91,219 $ 690 $ (431) $ 91,478 December 31, 2018: Government pass-throughs: Ginnie Mae $ 19,213 $ 1 $ (324) $ 18,890 Fannie Mae 13,952 7 (339) 13,620 Freddie Mac 12,662 — (252) 12,410 Private pass-throughs 25,064 — (349) 24,715 Collateralized mortgage obligations 12,328 11 (180) 12,159 $ 83,219 $ 19 $ (1,444) $ 81,794 |
Schedule of fair value and gross unrealized losses on mortgage-backed securities and the length of time the securities have been in a continuous unrealized loss position | Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Unrealized Value Losses Value Losses Fair Value Losses December 31, 2019: Government pass-throughs: Ginnie Mae $ 4,070 (27) 3,516 (43) $ 7,586 $ (70) Freddie Mac 5,537 (34) — — 5,537 (34) Private pass-throughs 2,060 (29) 19,197 (272) 21,257 (301) Collateralized mortgage obligations 562 (2) 3,526 (24) 4,088 (26) Total $ 12,229 $ (92) $ 26,239 $ (339) $ 38,468 $ (431) Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Unrealized Value Losses Value Losses Fair Value Losses December 31, 2018: Government pass-throughs: Ginnie Mae $ 4,850 $ (26) $ 13,794 $ (298) $ 18,644 $ (324) Fannie Mae 403 (2) 12,152 (337) 12,555 (339) Freddie Mac 680 (24) 11,699 (228) 12,379 (252) Private pass-throughs 14,436 (134) 9,359 (215) 23,795 (349) Collateralized mortgage obligations 4,091 (40) 6,048 (140) 10,139 (180) Total $ 24,460 $ (226) $ 53,052 $ (1,218) $ 77,512 $ (1,444) |
Loans Receivable (Tables)
Loans Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans Receivable | |
Schedule of loans receivable | One-to-four- Commercial Home family Real Estate Equity Loans Residential and and and Lines Commercial Other Construction Construction of Credit Business Loans Total December 31, 2019: Collectively evaluated for impairment $ 234,421 $ 323,008 $ 111,499 $ 46,907 $ 570 $ 716,405 Individually evaluated for impairment — 835 — 607 — 1,442 Total loans before allowance for loan losses $ 234,421 $ 323,843 $ 111,499 $ 47,514 $ 570 $ 717,847 December 31, 2018: Collectively evaluated for impairment $ 253,913 $ 308,775 $ 123,373 $ 46,196 $ 1,139 $ 733,396 Individually evaluated for impairment — — — — — — Total loans before allowance for loan losses $ 253,913 $ 308,775 $ 123,373 $ 46,196 $ 1,139 $ 733,396 |
Schedule of impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary | Impaired Loans Impaired Loans With Without Allowance Allowance Total Impaired Loans Recorded Related Recorded Recorded Unpaid Principal Investment Allowance Investment Investment Balance December 31, 2019: Commercial real estate and construction $ — $ — $ 835 $ 835 $ 835 Commercial business — — 607 607 607 Total impaired loans $ — $ — $ 1,442 $ 1,442 $ 1,442 December 31, 2018: Commercial real estate and construction $ — $ — $ — $ — $ — Total impaired loans $ — $ — $ — $ — $ — |
Schedule of average recorded investment in impaired loans and related interest income recognized for the periods indicated | Year Ended December 31 2019 2018 Average investment in impaired loans: Commercial real estate and construction $ 167 $ 236 Commercial business 121 — $ 288 $ 236 Interest income recognized on impaired loans $ 78 $ — |
Schedule of classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system | Special Pass Mention Substandard Doubtful Total December 31, 2019: Real estate loans: One-to-four-family residential and construction $ 232,354 $ — $ 2,067 $ — $ 234,421 Commercial real estate and construction 320,988 2,544 311 — 323,843 Home equity loans and lines of credit 111,165 62 272 — 111,499 Commercial business loans 46,636 818 60 — 47,514 Other loans 564 — 6 — 570 Total $ 711,707 $ 3,424 $ 2,716 $ — $ 717,847 December 31, 2018: Real estate loans: One-to-four-family residential and construction $ 252,186 $ — $ 1,727 $ — $ 253,913 Commercial real estate and construction 303,161 4,851 763 — 308,775 Home equity loans and lines of credit 123,053 62 258 — 123,373 Commercial business loans 45,902 232 62 — 46,196 Other loans 1,120 — 19 — 1,139 Total $ 725,422 $ 5,145 $ 2,829 $ — $ 733,396 |
Schedule of classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | 30-59 Days 60-89 Days 90 Days Past Total Current Past Due Past Due Non-Accrual Due & Accruing Loans December 31, 2019: Real estate loans: One-to-four-family residential and construction $ 230,952 $ 1,021 $ 381 $ 2,067 $ — $ 234,421 Commercial real estate and construction 322,922 610 — 311 — 323,843 Home equity loans and lines of credit 110,634 591 2 272 — 111,499 Commercial business loans 47,420 34 — 60 — 47,514 Other loans 564 — — 6 — 570 Total $ 712,492 $ 2,256 $ 383 $ 2,716 $ — $ 717,847 30-59 Days 60-89 Days 90 Days Past Total Current Past Due Past Due Non-Accrual Due & Accruing Loans December 31, 2018: Real estate loans: One-to-four-family residential and construction $ 250,691 $ 1,341 $ 154 $ 1,727 $ — $ 253,913 Commercial real estate and construction 307,740 374 — 661 — 308,775 Home equity loans and lines of credit 122,929 163 23 258 — 123,373 Commercial business loans 45,434 690 10 62 — 46,196 Other loans 1,111 3 3 19 3 1,139 Total $ 727,905 $ 2,571 $ 190 $ 2,727 $ 3 $ 733,396 |
Schedule of activity in the allowance | Real Estate Loans One-to-four- Commercial Home family Real Estate Equity Loans Residential and and and Lines Commercial Other Construction Construction of Credit Business Loans Total Balance at December 31, 2018 $ 1,051 $ 2,761 $ 312 $ 286 $ 4 $ 4,414 Charge-offs — (187) (2) (37) (41) (267) Recoveries 4 3 1 — 2 10 Provision (334) 736 (1) 285 39 725 Balance December 31, 2019 $ 721 $ 3,313 $ 310 $ 534 $ 4 $ 4,882 Balance at December 31, 2017 $ 1,384 $ 2,003 $ 400 $ 333 $ 7 $ 4,127 Charge-offs — (80) — (244) (48) (372) Recoveries 69 2 11 5 — 87 Provision (402) 836 (99) 192 45 572 Balance December 31, 2018 $ 1,051 $ 2,761 $ 312 $ 286 $ 4 $ 4,414 Real Estate Loans One-to-four- Commercial Home family Real Estate Equity Loans Residential and and and Lines Commercial Other Construction Construction of Credit Business Loans Total Evaluated for Impairment: Individually $ — $ — $ — $ — $ — $ — Collectively 721 3,313 310 534 4 4,882 Balance at December 31, 2019 $ 721 $ 3,313 $ 310 $ 534 $ 4 $ 4,882 Evaluated for Impairment: Individually $ — $ — $ — $ — $ — $ — Collectively 1,051 2,761 312 286 4 4,414 Balance at December 31, 2018 $ 1,051 $ 2,761 $ 312 $ 286 $ 4 $ 4,414 |
Office Properties and Equipme_2
Office Properties and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Office Properties and Equipment | |
Schedule of office properties and equipment summarized by major classifications | December 31 Estimated Useful Life 2019 2018 Land and land improvements Indefinite - 10 years $ 2,402 $ 3,152 Buildings and building improvements 10 - 50 years 10,322 10,475 Leasehold improvements 1 - 20 years 893 871 Right-of-use asset financing leases 1 - 12 years 3,050 — Furnitures, fixtures, and equipment 3 - 10 years 4,689 4,678 $ 21,356 $ 19,176 Less accumulated depreciation (11,468) (11,447) Plus projects in progress 42 65 Premises and equipment, net $ 9,930 $ 7,794 |
Schedule of financing lease costs | Year Ended December 31, 2019 Financing lease costs Amortization of right-of-use asset $ 372 Interest expense 50 Total financing lease costs $ 422 |
Schedule of weighted-average remaining term and discount rates for financing leases outstanding | Financing Weighted-average term (years) 9.9 Weighted-average discount rate 2.60 % |
Schedule of maturities of undiscounted cash flows | Financing Undiscounted cash flows due within: 2020 $ 361 2021 358 2022 359 2023 361 2024 362 2025 and thereafter 1,719 Total undiscounted cash flows 3,520 Impact of present value discount (428) Amount reported on balance sheet $ 3,092 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits | |
Schedule of deposit balances | December 31 2019 2018 Noninterest-bearing demand $ 127,168 $ 135,708 Interest-bearing demand 111,428 100,163 Savings 144,120 147,695 Money market 106,576 87,611 Time deposits 245,114 246,697 Total deposits $ 734,406 $ 717,874 |
Schedule of maturities of time deposit | December 31 2019 One year or less $ 127,643 Over one through two years 35,141 Over two through three years 33,932 Over three through four years 32,356 Over four through five years 9,271 Over five years 6,771 Total $ 245,114 |
Schedule of maturities of time deposit in denomination | December 31 2019 Three months or less $ 24,941 Over three to six months 15,548 Over six to twelve months 21,926 Over twelve months 50,263 Total $ 112,678 |
Short-term and Long-term Borr_2
Short-term and Long-term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Short-term and Long-term Borrowings | |
Schedule of outstanding balances and related information for short-term borrowings | December 31 2019 2018 Balance $ — $ 4,524 Average balance outstanding during the period 1,698 12,696 Maximum amount outstanding at any month-end 11,339 51,500 Weighted average interest rate at period end — % 2.64 % Average interest rate during the period 2.67 1.79 |
Schedule of FHLB advances as well as lease liabilities | December 31 Stated Maturity Interest Rate 2019 2018 January 22, 2019 1.25 % $ — $ 125 June 24, 2019 1.63 — 1,805 September 11, 2019 1.59 — 6,438 November 12, 2019 1.91 — 3,151 January 8, 2020 1.70 5,794 5,794 March 20, 2020 2.51 1,278 6,309 July 29, 2020 1.91 1,822 1,822 August 17, 2020 1.63 5,635 5,635 September 8, 2020 1.69 4,204 9,726 December 9, 2020 1.92 3,500 3,500 January 26, 2021 1.94 4,000 4,000 February 22, 2021 1.95 3,365 3,365 March 8, 2021 2.54 4,421 7,639 May 7, 2021 2.38 5,000 — August 18, 2021 1.80 1,443 2,289 September 7, 2021 2.17 5,000 — September 8, 2021 1.77 7,363 11,469 November 15, 2021 3.23 3,000 3,000 June 6, 2022 2.14 5,000 — August 8, 2022 1.85 5,000 — September 8, 2022 1.86 5,615 7,587 December 9, 2022 2.26 3,212 3,212 December 29, 2022 2.45 6,146 8,097 May 30, 2023 2.93 10,000 10,000 August 8, 2023 1.82 5,208 — Lease liabilities 2.60 3,092 — $ 99,098 $ 104,963 |
Securities Sold Under Agreeme_2
Securities Sold Under Agreement to Repurchase (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Securities Sold Under Agreement to Repurchase | |
Schedule of contractual maturity of the securities sold under repurchase agreements | Remaining Contractual Maturity of the Agreements Overnight and Up to 30 30-90 Greater than Continuous Days Days 90 Days Total December 31, 2019: U.S. government obligations $ 4,435 $ — $ — $ — $ 4,435 Municipal obligations 5,011 — — — 5,011 Total collateral pledged $ 9,446 $ — $ — $ — $ 9,446 Gross amount of recognized liabilities for securities sold under agreements to repurchase $ 3,740 Amounts related to agreements not included in offsetting disclosures above $ 5,706 December 31, 2018: U.S. government obligations $ 6,031 $ — $ — $ — $ 6,031 Municipal obligations 4,824 — — — 4,824 Total collateral pledged $ 10,855 $ — $ — $ — $ 10,855 Gross amount of recognized liabilities for securities sold under agreements to repurchase $ 2,137 Amounts related to agreements not included in offsetting disclosures above $ 8,718 |
Schedule of outstanding balances and related information for repurchase agreements | December 31 2019 2018 Balance $ 3,740 $ 2,137 Average balance outstanding during the period 3,738 4,782 Maximum amount outstanding at any month-end 4,136 8,251 Weighted average interest rate at period end 0.48 % 0.19 % Average interest rate during the period 0.45 0.23 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Schedule of income tax expense | Years Ended December 31 2019 2018 Federal: Current $ 1,784 $ 2,001 Deferred (80) (288) $ 1,704 $ 1,713 State, current $ 634 $ 535 |
Schedule of difference between the expected and actual tax provision expressed as percentage of earnings before income tax provision | December 31 2019 2018 % of Pre-tax % of Pre-tax Amount Income Amount Income Expected federal tax rate $ 2,341 21.0 % $ 2,321 21.0 % State taxes, net of federal tax benefit 501 4.5 421 3.8 Nontaxable interest income (393) (3.5) (377) (3.4) Bank-owned life insurance (113) (1.0) (112) (1.0) Other items, net 2 — (5) (0.1) Effective Tax Rate $ 2,338 21.0 % $ 2,248 20.3 % |
Schedule of components of net deferred tax asset | December 31 2019 2018 Deferred Tax Assets: Allowance for loan losses $ 1,025 $ 927 Employee benefits 326 290 Impairment reserves — 11 Net unrealized losses on securities — 195 Capital loss carryforward — 19 Other, net 192 148 Total Deferred Tax Assets 1,543 1,590 Deferred Tax Liabilities: Net unrealized gains on securities (369) — Premises and equipment (172) (214) Purchase accounting (61) (14) Equity security fair value adjustments (57) — Other, net (51) (46) Total Deferred Tax Liabilities (710) (274) Net Deferred Tax Assets $ 833 $ 1,316 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) ) | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Capital Requirements | |
Schedule of Company's and Bank's actual capital and leverage ratios | December 31, 2019 Bank Company Amount Ratio Amount Ratio Total capital (to risk weighted assets) Actual $ 114,626 17.64 % $ 118,113 18.17 % For capital adequacy purposes 51,989 8.00 52,014 8.00 To be well capitalized 64,986 10.00 65,017 10.00 Common equity tier I (to risk weighted assets) Actual $ 109,747 16.89 % $ 113,234 17.42 % For capital adequacy purposes 29,244 4.50 29,258 4.50 To be well capitalized 42,241 6.50 42,261 6.50 Tier I capital (to risk weighted assets) Actual $ 109,747 16.89 % $ 113,234 17.42 % For capital adequacy purposes 38,992 6.00 39,010 6.00 To be well capitalized 51,989 8.00 52,014 8.00 Tier I capital (to average assets) Actual $ 109,747 11.46 % $ 113,234 11.76 % For capital adequacy purposes 38,314 4.00 38,504 4.00 To be well capitalized 47,892 5.00 48,130 5.00 December 31, 2018 Bank Company Amount Ratio Amount Ratio Total capital (to risk weighted assets) Actual $ 111,857 16.85 % $ 115,390 17.38 % For capital adequacy purposes 53,108 8.00 53,127 8.00 To be well capitalized 66,384 10.00 66,409 10.00 Common equity tier I (to risk weighted assets) Actual $ 107,451 16.19 % $ 110,981 16.71 % For capital adequacy purposes 29,873 4.50 29,884 4.50 To be well capitalized 43,150 6.50 43,166 6.50 Tier I capital (to risk weighted assets) Actual $ 107,451 16.19 % $ 110,981 16.71 % For capital adequacy purposes 39,831 6.00 39,845 6.00 To be well capitalized 53,108 8.00 53,127 8.00 Tier I capital (to average assets) Actual $ 107,451 11.33 % $ 110,981 11.71 % For capital adequacy purposes 37,947 4.00 37,921 4.00 To be well capitalized 47,434 5.00 47,401 5.00 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stock Based Compensation | |
Schedule of transactions regarding the options under the plan | Weighted Average Weighted Average Exercise Remaining Options Price Contractual Term Outstanding at December 31, 2017 302,231 $ 17.25 4.11 Granted — — Exercised (35,536) 18.25 Forfeited — — Outstanding at December 31, 2018 266,695 $ 17.12 3.32 Granted — — Exercised (18,914) 17.74 Forfeited — — Outstanding at December 31, 2019 247,781 $ 17.07 Exercisable at December 31, 2018 266,695 $ 17.12 Exercisable at December 31, 2019 247,781 $ 17.07 |
Schedule of transactions regarding restricted stock under the Plan | Weighted Average Number of Grant Date Restricted Price Per Shares Share Non-vested shares at December 31, 2017 — $ — Granted 250 31.10 Vested — — Forfeited — — Non-vested shares at December 31, 2018 250 $ 31.10 Granted 4,547 29.13 Vested (2,853) 29.47 Forfeited — — Non-vested shares at December 31, 2019 1,944 $ 28.90 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefit Plans | |
Schedule of change in the plan assets and the projected benefit obligations | December 31 2019 2018 Change in projected benefit obligation: Benefit obligation at beginning of year $ 3,437 $ 4,168 Interest cost 123 131 Settlement (gain) loss (32) 11 Actuarial loss (gain) 388 (312) Benefits paid (37) (36) Settlement payments (411) (525) Projected benefit obligation at end of year 3,468 3,437 Change in plan assets: Fair value of plan assets at beginning of year 2,883 3,564 Actual return on plan assets 454 (99) Benefits paid (37) (36) Administrative expenses (33) (21) Settlement payments (411) (525) Fair value of plan assets at end of year 2,856 2,883 Funded status $ (612) $ (554) Amounts recognized in accumulated other comprehensive loss consists of: Unrecognized actuarial loss $ 405 $ 400 Total $ 405 $ 400 |
Schedule of net periodic pension (benefit) cost | Years Ended December 31 2019 2018 Interest Cost $ 123 $ 131 Expected return on plan assets (126) (162) Amortization of net loss 9 10 Settlement obligation 48 61 Net periodic pension cost $ 54 $ 40 |
Schedule estimated net loss and prior service cost of accumulated other comprehensive income (loss) into the net periodic benefit cost | Net loss $ 10 Total $ 10 |
Schedule of weighted-average assumptions used to determine benefit obligations | The weighted-average assumptions used to determine benefit obligations at December 31, 2019 and December 31, 2018 were as follows: December 31 2019 2018 Discount rate 3.25 % 4.00 % The weighted-average assumptions used to determine net periodic benefit cost for years ended December 31, 2019 and December 31, 2018 were as follows: December 31 2019 2018 Discount rate 3.25 % 4.00 % |
Schedule of plan assets of weighted-average asset allocations | December 31 Asset Category 2019 2018 Cash and Cash Equivalents 2.11 % 2.89 % Equity Mutual Funds 55.68 37.88 Bond Mutual Funds 42.21 59.23 Total 100.00 % 100.00 % |
Schedule of fair value of plan assets of fair value hierarchy | Level I Level II Level III Total December 31, 2019: Cash and Cash Equivalents $ 61 $ — $ — $ 61 Domestic Stock Funds 1,251 — — 1,251 International Stock Funds 339 — — 339 Domestic Bond Funds 1,205 — — 1,205 Total assets at fair value $ 2,856 $ — $ — $ 2,856 December 31, 2018: Cash and Cash Equivalents $ 83 $ — $ — $ 83 Domestic Stock Funds 896 — — 896 International Stock Funds 196 — — 196 Domestic Bond Funds 1,708 — — 1,708 Total assets at fair value $ 2,883 $ — $ — $ 2,883 |
Schedule of benefit payments that reflect expected future service | Year Ended December 31, Plan Benefits 2020 $ 682 2021 152 2022 157 2023 136 2024 151 2025-2029 818 Total $ 2,096 |
Financial Instruments With Of_2
Financial Instruments With Off-Balance Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments With Off-Balance Sheet Risk | |
Schedule of financial instruments with off-balance sheet risk | December 31 2019 2018 One-to-four family and construction: Loan commitments $ 5,869 $ 872 Undisbursed home equity lines of credit 30,716 34,485 Undisbursed funds - construction loans in process 3,931 6,129 Commerical loan commitments 58,569 67,240 Standby letters of credit 4,012 4,202 Other 18,601 24,251 Total $ 121,698 $ 137,179 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value of Assets and Liabilities | |
Schedule of assets measured at fair value on a recurring basis | Level 1 Level 2 Level 3 Total December 31, 2019: Investment securities available for sale: U.S. government and agency obligations $ — $ 8,489 $ — $ 8,489 Corporate bonds — 2,579 — 2,579 Municipal obligations — 58,816 — 58,816 Total investment securities available for sale — 69,884 — 69,884 Equity securities 2,955 — — 2,955 Mortgage-backed securities available for sale — 91,478 — 91,478 Total recurring fair value measurements $ 2,955 $ 161,362 $ — $ 164,317 December 31, 2018: Investment securities available for sale: U.S. government and agency obligations $ — $ 8,270 $ — $ 8,270 Corporate bonds — 4,201 — 4,201 Municipal obligations — 53,698 — 53,698 Total investment securities available for sale — 66,169 — 66,169 Equity securities 2,725 — — 2,725 Mortgage-backed securities available for sale — 81,794 — 81,794 Total recurring fair value measurements $ 2,725 $ 147,963 $ — $ 150,688 |
Schedule of assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy | Level 1 Level 2 Level 3 Total December 31, 2019: Foreclosed real estate $ — $ — $ 404 $ 404 Total nonrecurring fair value measurements $ — $ — $ 404 $ 404 December 31, 2018: Foreclosed real estate $ — $ — $ 486 $ 486 Total nonrecurring fair value measurements $ — $ — $ 486 $ 486 |
Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs | Quantitative Information about Level 3 Fair Value Measurements December 31 Valuation Unobservable Range 2019 2018 Techniques Input (Weighted Average) Foreclosed real estate $ 404 $ 486 Appraisal of collateral (1) Appraisal adjustments (2) 0% to 30% Liquidation expenses (2) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. |
Schedule of carrying amount, fair value, and placement in the fair value hierarchy of the financial instruments | The following table presents the carrying value, estimated fair value, and placement in the fair value hierarchy of the Company’s financial instruments not required to be carried at fair value as of December 31, 2019 and December 31, 2018 (dollars in thousands): Carrying Estimated Fair Value Value Level 1 Level 2 Level 3 December 31, 2019: Financial Instruments - Assets: Cash on hand and due from banks (1) $ 3,396 $ 3,396 $ 3,396 $ — $ — Interest-earning deposits in other institutions (1) 29,031 29,031 29,031 — — Certificate of deposit (1) 249 249 249 — — Investment securities (2) 69,884 69,884 — 69,884 — Equity Securities (3) 2,955 2,955 2,955 — — Mortgage-backed securities (2) 91,478 91,478 — 91,478 — Federal Home Loan Bank and other restricted stock (1) 7,486 7,486 7,486 — — Loans receivable (1) 712,965 721,197 — — 721,197 Bank-owned life insurance (1) 23,374 23,374 23,374 — — Accrued interest receivable (1) 2,794 2,794 2,794 — — Financial Instruments - Liabilities: Demand and savings accounts (1) $ 489,292 $ 489,292 $ 489,292 $ — $ — Certificate deposit accounts (1) 245,114 247,456 — — 247,456 Federal Home Loan Bank short-term borrowings (1) — — — — — Long-term borrowings (1) 99,098 100,032 — — 100,032 Securities sold under agreements to repurchase (1) 3,740 3,740 3,740 — — Accrued interest payable (1) 1,010 1,010 1,010 — — December 31, 2018: Financial Instruments - Assets: Cash on hand and due from banks (1) $ 3,371 $ 3,371 $ 3,371 $ — $ — Interest-earning deposits in other institutions (1) 12,836 12,836 12,836 — — Certificate of deposit (1) 249 249 249 — — Investment securities (2) 66,169 66,169 — 66,169 — Equity Securities (3) 2,725 2,725 2,725 — — Mortgage-backed securities (2) 81,794 81,794 — 81,794 — Federal Home Loan Bank and other restricted stock (1) 7,900 7,900 7,900 — — Loans receivable (1) 728,982 717,491 — — 717,491 Bank-owned life insurance (1) 22,572 22,572 22,572 — — Accrued interest receivable (1) 2,823 2,823 2,823 — — Financial Instruments - Liabilities: Demand and savings accounts (1) $ 471,177 $ 471,177 $ 471,177 $ — $ — Certificate deposit accounts (1) 246,697 245,740 — — 245,740 Federal Home Loan Bank short-term borrowings (1) 4,524 4,524 4,524 — — Federal Home Loan Bank advances (1) 104,963 104,345 — — 104,345 Securities sold under agreements to repurchase (1) 2,137 2,137 2,137 — — Accrued interest payable (1) 1,154 1,154 1,154 — — (1) The financial instrument is carried at amortized cost. (2) The financial instrument is carried at fair value through other comprehensive income. (3) The financial instrument is carried at fair value through net income. |
Parent Only Financial Informa_2
Parent Only Financial Information (Tables) - Reportable Legal Entities [Member] - Standard AVB Financial Corp. | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Balance Sheet Statements, Captions [Line Items] | |
Schedule of Statement of Financial Condition | Statement of Financial Condition December 31 (Dollars in thousands) 2019 2018 Assets Cash $ 2,222 $ 1,421 Interest-earning deposits with other institutions 82 47 Cash and cash equivalents 2,304 1,468 Equity securities 1,160 1,022 Accrued interest receivable and other assets 51 1,047 Investment in subsidiary 138,606 134,451 Total Assets $ 142,121 $ 137,988 Liabilities and Stockholders’ Equity Accrued interest payable and other liabilities $ 273 $ 98 Stockholders’ equity 141,848 137,890 Total Liabilities and Stockholders’ Equity $ 142,121 $ 137,988 |
Schedule of Statement of Operations | Statement of Operations Years Ended December 31 (Dollars in thousands) 2019 2018 Income Dividends from subsidiary $ 7,126 $ 2,000 Dividend Income 38 62 Gain on sale of investments — 394 Net equity securities fair value adjustment gains (losses) 138 (468) Total Income 7,302 1,988 Operating expenses 200 259 Total Expense 200 259 Income before taxes 7,102 1,729 Credit for income taxes (35) (70) Income before equity in undistributed net income of subsidiaries 7,137 1,799 Equity in undistributed income of Standard Bank 1,669 7,002 Net Income $ 8,806 $ 8,801 Comprehensive Income $ 8,803 $ 8,872 |
Schedule of Statement of Cash Flows | Statement of Cash Flows Years Ended December 31 (Dollars in thousands) 2019 2018 Net income $ 8,806 $ 8,801 Adjustments to reconcile net income to net cash provided by operating activities: Net gain on sale of equity securities — (394) Net equity securities fair value adjustment (gains) losses (138) 468 Stock compensation expense 81 1 ESOP expense 410 440 Net change in other assets and liabilities 1,171 215 Equity in undistributed income of subsidiaries (1,669) (7,002) Net cash provided by operating activities 8,661 2,529 Investing Activities: Proceeds from sale of equtiy securities — 1,900 Purchases of equity securities — (546) Net cash provided by investing activities — 1,354 Financing activities: Proceeds from exercise of stock options 257 648 Stock repurchases (4,012) (428) Dividends paid (4,070) (4,088) Net cash used for financing activities (7,825) (3,868) Net change in cash and cash equivalents 836 15 Cash and cash equivalents at the beginning of the year 1,468 1,453 Cash and cash equivalents at the end of the year $ 2,304 $ 1,468 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) | |
Schedule of changes in accumulated other comprehensive income (loss) by component | Unrealized Gains on Unrecognized Available for Sale Pension Securities Costs Total Balance as of December 31, 2017 $ 840 $ (312) $ 528 Other comprehensive (loss)income before reclassification (1,540) 15 (1,525) Amount reclassified from accumulated other comprehensive income 13 56 69 Total other comprehensive (loss) income (1,527) 71 (1,456) Change in accounting principle for adoption of ASU 2016‑01 (416) — (416) Balance as of December 31, 2018 $ (1,103) $ (241) $ (1,344) Other comprehensive income before reclassification 2,488 (48) 2,440 Amount reclassified from accumulated other comprehensive loss 1 45 46 Total other comprehensive income (loss) 2,489 (3) 2,486 Balance as of December 31, 2019 $ 1,386 $ (244) $ 1,142 |
Schedule of significant amounts reclassified out of accumulated other comprehensive income | Amount Reclassified from Accumulated Other Comprehensive Affected Line on the Income (Loss) Consolidated Statements of Income December 31, 2019: Unrealized losses on available for sale securities $ 1 Net losses on sales of securities — Income tax expense 1 Net of tax Amortization of defined benefit items: Actuarial loss 9 Other operating expenses Distribution settlement 48 Other operating expenses (12) Income tax expense 45 Net of tax Total reclassification for the period $ 46 Net income December 31, 2018: Unrealized losses on available for sale securities $ 17 Net losses on sales of securities (4) Income tax expense 13 Net of tax Amortization of defined benefit items: Actuarial loss 10 Other operating expenses Distribution settlement 61 Other operating expenses (15) Income tax expense 56 Net of tax Total reclassification for the period $ 69 Net income |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition | |
Schedule of noninterest income, segregated by revenue | Year Ended December 31, 2019 2018 Noninterest income In scope of Topic 606: Service charges on deposit accounts $ 2,977 $ 2,900 Investment management fees 695 644 Noninterest income (in-scope of Topic 606) 3,672 3,544 Noninterest income (out-of-scope of Topic 606) 1,380 803 Total noninterest income $ 5,052 $ 4,347 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Other Intangibles | |
Schedule of estimated future amortization expense | As of December 31, 2019, the estimated future amortization expense for the core deposit intangible was (dollars in thousands): 2020 470 2021 353 2022 326 2023 326 2024 325 2025 81 $ 1,881 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of Significant Accounting Policies | ||
Net income available to common stockholders | $ 8,806 | $ 8,801 |
Basic EPS: | ||
Weighted average shares outstanding | 4,606,457 | 4,634,003 |
Basic EPS | $ 1.91 | $ 1.90 |
Diluted EPS: | ||
Weighted average shares outstanding | 4,606,457 | 4,634,003 |
Dilutive effect of common stock equivalents | 36,318 | 51,041 |
Total diluted weighted average shares outstanding | 4,642,775 | 4,685,044 |
Diluted EPS (in dollars per share) | $ 1.90 | $ 1.88 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Cash, FDIC Insured Amount | $ 250,000 | ||
Amortization period of intangible assets | 8 years | ||
Core deposit intangible | $ 1,881,000 | $ 2,508,000 | |
Accumulated amortization of core deposit intangible | 2,200,000 | 1,600,000 | |
Advertising expense | 262,000 | 289,000 | |
One-time cumulative effect adjustment | 416,000 | ||
Finance Lease, Liability | $ 3,092,000 | 0 | |
ASU 2016-01 | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Finance right-of-use assets | 1,100,000 | ||
Finance Lease, Liability | $ 1,200,000 | ||
Unearned ESOP Shares | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of options to purchase common stock outstanding | 247,781 | 266,695 | 302,231 |
Average exercise price of options outstanding | $ 17.07 | $ 17.12 | $ 17.25 |
Restricted stock | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of unvested restricted stock | 1,944 | 250 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Amortized Cost | $ 68,387 | $ 66,140 |
Gross Unrealized Gains | ||
Gross Unrealized Gains | 1,537 | 514 |
Gross Unrealized Losses | ||
Gross Unrealized Losses | (40) | (485) |
Fair Value | ||
Fair Value | 69,884 | 66,169 |
U.S. government and agency obligations | ||
Amortized Cost | ||
Within 1 year | 5,986 | |
Beyond 1 year but within 5 years | 1,470 | 7,428 |
Beyond 5 years but within 10 years | 948 | 940 |
Gross Unrealized Gains | ||
Within 1 year | 12 | |
Beyond 1 year but within 5 years | 29 | 0 |
Beyond 5 years but within 10 years | 44 | 0 |
Gross Unrealized Losses | ||
Within 1 year | 0 | |
Beyond 1 year but within 5 years | 0 | (81) |
Beyond 5 years but within 10 years | 0 | (17) |
Fair Value | ||
Within 1 year | 5,998 | |
Beyond 1 year but within 5 years | 1,499 | 7,347 |
Beyond 5 years but within 10 years | 992 | 923 |
Corporate bonds | ||
Amortized Cost | ||
Within 1 year | 1,758 | |
Beyond 1 year but within 5 years | 2,477 | 1,472 |
Beyond 5 years but within 10 years | 996 | |
Gross Unrealized Gains | ||
Within 1 year | 0 | |
Beyond 1 year but within 5 years | 102 | 2 |
Beyond 5 years but within 10 years | 0 | |
Gross Unrealized Losses | ||
Within 1 year | (15) | |
Beyond 1 year but within 5 years | 0 | (10) |
Beyond 5 years but within 10 years | (2) | |
Fair Value | ||
Within 1 year | 1,743 | |
Beyond 1 year but within 5 years | 2,579 | 1,464 |
Beyond 5 years but within 10 years | 994 | |
Municipal obligations | ||
Amortized Cost | ||
Within 1 year | 260 | |
Beyond 1 year but within 5 years | 5,085 | 6,658 |
Beyond 5 years but within 10 years | 18,210 | 22,384 |
Beyond 10 years | 33,951 | 24,504 |
Gross Unrealized Gains | ||
Within 1 year | 2 | |
Beyond 1 year but within 5 years | 244 | 298 |
Beyond 5 years but within 10 years | 456 | 132 |
Beyond 10 years | 648 | 82 |
Gross Unrealized Losses | ||
Within 1 year | 0 | |
Beyond 1 year but within 5 years | 0 | 0 |
Beyond 5 years but within 10 years | 0 | (81) |
Beyond 10 years | (40) | (279) |
Fair Value | ||
Within 1 year | 262 | |
Beyond 1 year but within 5 years | 5,329 | 6,956 |
Beyond 5 years but within 10 years | 18,666 | 22,435 |
Beyond 10 years | $ 34,559 | $ 24,307 |
Investment Securities - Fair va
Investment Securities - Fair value and gross unrealized losses on available for sale debt securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-sale securities other than mortgage backed securities | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | $ 4,496 | $ 11,539 |
Less than 12 Months, Gross Unrealized Losses | (40) | (67) |
12 Months or More, Fair Value | 0 | 21,743 |
12 Months or More, Gross Unrealized Losses | 0 | (418) |
Total, Fair Value | 4,496 | 33,282 |
Total, Gross Unrealized Losses | (40) | (485) |
U.S. government and agency obligations | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 0 | |
Less than 12 Months, Gross Unrealized Losses | 0 | |
12 Months or More, Fair Value | 8,270 | |
12 Months or More, Gross Unrealized Losses | (98) | |
Total, Fair Value | 8,270 | |
Total, Gross Unrealized Losses | (98) | |
Corporate bonds | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 1,490 | |
Less than 12 Months, Gross Unrealized Losses | (12) | |
12 Months or More, Fair Value | 1,743 | |
12 Months or More, Gross Unrealized Losses | (15) | |
Total, Fair Value | 3,233 | |
Total, Gross Unrealized Losses | (27) | |
Municipal obligations | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 4,496 | 10,049 |
Less than 12 Months, Gross Unrealized Losses | (40) | (55) |
12 Months or More, Fair Value | 0 | 11,730 |
12 Months or More, Gross Unrealized Losses | 0 | (305) |
Total, Fair Value | 4,496 | 21,779 |
Total, Gross Unrealized Losses | $ (40) | $ (360) |
Investment Securities - Additio
Investment Securities - Additional information (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||
Losses on sales of investment securities | $ 11,000 | $ 18,000 |
Gains on sales of investment securities | 11,000 | 1,000 |
Proceeds from sales of investment securities | 6,328,000 | 4,830,000 |
Available-for-sale securities other than mortgage backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities pledged to secure repurchase agreements and public funds accounts | $ 11,900,000 | $ 11,600,000 |
Number of securities held in an unrealized loss position | security | 8 |
Equity Securities (Details)
Equity Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity Securities | ||
Net equity securities fair value adjustment gains (losses) | $ 230 | $ (484) |
Net gains realized on the sale of equity securities during the year | 0 | 394 |
Gains (losses) recognized on equity securities during the period | $ 230 | $ (90) |
Equity Securities - Additional
Equity Securities - Additional information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity Securities | ||
Gain On Sale Of Equity Investments | $ 427,000 | |
Loss On Sale Of Equity Investments | 33,000 | |
Net gains on sales of equities | $ 0 | 394,000 |
Proceeds from sale of equity | $ 1,900,000 |
Mortgage-Backed Securities (Det
Mortgage-Backed Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Mortgage-backed securities | ||
Amortized Cost | $ 68,387 | $ 66,140 |
Gross Unrealized Gains | 1,537 | 514 |
Gross Unrealized Losses | (40) | (485) |
Investment securities available for sale, at fair value | 69,884 | 66,169 |
Mortgage-backed securities available for sale | ||
Mortgage-backed securities | ||
Amortized Cost | 91,219 | 83,219 |
Gross Unrealized Gains | 690 | 19 |
Gross Unrealized Losses | (431) | (1,444) |
Investment securities available for sale, at fair value | 91,478 | 81,794 |
Government pass-throughs, Ginnie Mae | ||
Mortgage-backed securities | ||
Amortized Cost | 21,386 | 19,213 |
Gross Unrealized Gains | 188 | 1 |
Gross Unrealized Losses | (70) | (324) |
Investment securities available for sale, at fair value | 21,504 | 18,890 |
Government pass-throughs, Fannie Mae | ||
Mortgage-backed securities | ||
Amortized Cost | 20,537 | 13,952 |
Gross Unrealized Gains | 258 | 7 |
Gross Unrealized Losses | 0 | (339) |
Investment securities available for sale, at fair value | 20,795 | 13,620 |
Government pass-throughs, Freddie Mac | ||
Mortgage-backed securities | ||
Amortized Cost | 13,986 | 12,662 |
Gross Unrealized Gains | 134 | 0 |
Gross Unrealized Losses | (34) | (252) |
Investment securities available for sale, at fair value | 14,086 | 12,410 |
Private pass-throughs | ||
Mortgage-backed securities | ||
Amortized Cost | 21,904 | 25,064 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (301) | (349) |
Investment securities available for sale, at fair value | 21,603 | 24,715 |
Collateralized mortgage obligations | ||
Mortgage-backed securities | ||
Amortized Cost | 13,406 | 12,328 |
Gross Unrealized Gains | 110 | 11 |
Gross Unrealized Losses | (26) | (180) |
Investment securities available for sale, at fair value | $ 13,490 | $ 12,159 |
Mortgage-Backed Securities - Co
Mortgage-Backed Securities - Contractual maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amortized cost by contractual maturity: | ||
Amortized Cost | $ 68,387 | $ 66,140 |
Fair value by contractual maturity: | ||
Fair Value | 69,884 | 66,169 |
Mortgage-backed securities available for sale | ||
Amortized cost by contractual maturity: | ||
Amortized Cost | 91,219 | 83,219 |
Fair value by contractual maturity: | ||
Fair Value | $ 91,478 | $ 81,794 |
Mortgage-Backed Securities - Fa
Mortgage-Backed Securities - Fair value and gross unrealized losses (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Mortgage-backed securities available for sale | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | $ 12,229 | $ 24,460 |
Less than 12 Months, Gross Unrealized Losses | (92) | (226) |
12 Months or More, Fair Value | 26,239 | 53,052 |
12 Months or More, Gross Unrealized Losses | (339) | (1,218) |
Total, Fair Value | 38,468 | 77,512 |
Total, Gross Unrealized Losses | (431) | (1,444) |
Government pass-throughs, Ginnie Mae | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 4,070 | 4,850 |
Less than 12 Months, Gross Unrealized Losses | (27) | (26) |
12 Months or More, Fair Value | 3,516 | 13,794 |
12 Months or More, Gross Unrealized Losses | (43) | (298) |
Total, Fair Value | 7,586 | 18,644 |
Total, Gross Unrealized Losses | (70) | (324) |
Government pass-throughs, Fannie Mae | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 403 | |
Less than 12 Months, Gross Unrealized Losses | (2) | |
12 Months or More, Fair Value | 12,152 | |
12 Months or More, Gross Unrealized Losses | (337) | |
Total, Fair Value | 12,555 | |
Total, Gross Unrealized Losses | (339) | |
Government pass-throughs, Freddie Mac | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 5,537 | 680 |
Less than 12 Months, Gross Unrealized Losses | (34) | (24) |
12 Months or More, Fair Value | 11,699 | |
12 Months or More, Gross Unrealized Losses | (228) | |
Total, Fair Value | 5,537 | 12,379 |
Total, Gross Unrealized Losses | (34) | (252) |
Private pass-throughs | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 2,060 | 14,436 |
Less than 12 Months, Gross Unrealized Losses | (29) | (134) |
12 Months or More, Fair Value | 19,197 | 9,359 |
12 Months or More, Gross Unrealized Losses | (272) | (215) |
Total, Fair Value | 21,257 | 23,795 |
Total, Gross Unrealized Losses | (301) | (349) |
Collateralized mortgage obligations | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 562 | 4,091 |
Less than 12 Months, Gross Unrealized Losses | (2) | (40) |
12 Months or More, Fair Value | 3,526 | 6,048 |
12 Months or More, Gross Unrealized Losses | (24) | (140) |
Total, Fair Value | 4,088 | 10,139 |
Total, Gross Unrealized Losses | $ (26) | $ (180) |
Mortgage-Backed Securities - Ad
Mortgage-Backed Securities - Additional information (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($) | |
Mortgage-backed securities | ||
Loss on sales of mortgage-backed securities | $ 1,000 | $ 0 |
Total proceeds from sales | 1,286,000 | |
Mortgage-backed securities available for sale | ||
Mortgage-backed securities | ||
Carrying amount of mortgage-backed securities pledged to secure repurchase agreements and public fund accounts | $ 13,300,000 | $ 10,400,000 |
Number of securities held in an unrealized loss position | security | 34 |
Loans Receivable (Details)
Loans Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | $ 716,405 | $ 733,396 |
Individually evaluated for impairment | 1,442 | 0 |
Total loans before allowance for loan losses | 717,847 | 733,396 |
Real Estate Loans | One-to-four-family Residential and Construction | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 234,421 | 253,913 |
Individually evaluated for impairment | 0 | 0 |
Total loans before allowance for loan losses | 234,421 | 253,913 |
Real Estate Loans | Commercial Real Estate and Construction | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 323,008 | 308,775 |
Individually evaluated for impairment | 835 | 0 |
Total loans before allowance for loan losses | 323,843 | 308,775 |
Real Estate Loans | Home Equity Loans and Lines of Credit | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 111,499 | 123,373 |
Individually evaluated for impairment | 0 | 0 |
Total loans before allowance for loan losses | 111,499 | 123,373 |
Commercial Business | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 46,907 | 46,196 |
Individually evaluated for impairment | 607 | 0 |
Total loans before allowance for loan losses | 47,514 | 46,196 |
Other Loans | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 570 | 1,139 |
Individually evaluated for impairment | 0 | 0 |
Total loans before allowance for loan losses | $ 570 | $ 1,139 |
Loans Receivable - Schedule of
Loans Receivable - Schedule of impaired loans by class and Specific allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Impaired Loans | ||
Impaired Loans With Allowance, Recorded Investment | $ 0 | $ 0 |
Impaired Loans With Allowance, Related Allowance | 0 | 0 |
Impaired loans without allowance Recorded Investment | 1,442 | 0 |
Total Impaired Loans, Recorded Investment | 1,442 | 0 |
Total Impaired Loans, Unpaid Principal Balance | 1,442 | 0 |
Average investment in impaired loans | 288 | 236 |
Interest income recognized on impaired loans | 78 | 0 |
Real Estate Loans | Commercial Real Estate and Construction | ||
Impaired Loans | ||
Impaired Loans With Allowance, Recorded Investment | 0 | 0 |
Impaired Loans With Allowance, Related Allowance | 0 | 0 |
Impaired loans without allowance Recorded Investment | 835 | 0 |
Total Impaired Loans, Recorded Investment | 835 | 0 |
Total Impaired Loans, Unpaid Principal Balance | 835 | 0 |
Average investment in impaired loans | 167 | 236 |
Commercial Business | ||
Impaired Loans | ||
Impaired Loans With Allowance, Recorded Investment | 0 | |
Impaired Loans With Allowance, Related Allowance | 0 | |
Impaired loans without allowance Recorded Investment | 607 | |
Total Impaired Loans, Recorded Investment | 607 | |
Total Impaired Loans, Unpaid Principal Balance | 607 | |
Commercial Business | Commercial Real Estate and Construction | ||
Impaired Loans | ||
Average investment in impaired loans | $ 121 | $ 0 |
Loans Receivable - Aggregate Pa
Loans Receivable - Aggregate Pass rating (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | $ 717,847 | $ 733,396 |
Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 711,707 | 725,422 |
Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 3,424 | 5,145 |
Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 2,716 | 2,829 |
Doubtful | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 0 | 0 |
Real Estate Loans | One-to-four-family Residential and Construction | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 234,421 | 253,913 |
Real Estate Loans | One-to-four-family Residential and Construction | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 232,354 | 252,186 |
Real Estate Loans | One-to-four-family Residential and Construction | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 0 | 0 |
Real Estate Loans | One-to-four-family Residential and Construction | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 2,067 | 1,727 |
Real Estate Loans | One-to-four-family Residential and Construction | Doubtful | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 0 | 0 |
Real Estate Loans | Commercial Real Estate and Construction | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 323,843 | 308,775 |
Real Estate Loans | Commercial Real Estate and Construction | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 320,988 | 303,161 |
Real Estate Loans | Commercial Real Estate and Construction | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 2,544 | 4,851 |
Real Estate Loans | Commercial Real Estate and Construction | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 311 | 763 |
Real Estate Loans | Commercial Real Estate and Construction | Doubtful | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 0 | 0 |
Real Estate Loans | Home Equity Loans and Lines of Credit | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 111,499 | 123,373 |
Real Estate Loans | Home Equity Loans and Lines of Credit | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 111,165 | 123,053 |
Real Estate Loans | Home Equity Loans and Lines of Credit | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 62 | 62 |
Real Estate Loans | Home Equity Loans and Lines of Credit | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 272 | 258 |
Real Estate Loans | Home Equity Loans and Lines of Credit | Doubtful | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 0 | 0 |
Commercial Business | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 47,514 | 46,196 |
Commercial Business | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 46,636 | 45,902 |
Commercial Business | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 818 | 232 |
Commercial Business | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 60 | 62 |
Commercial Business | Doubtful | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 0 | 0 |
Other Loans | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 570 | 1,139 |
Other Loans | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 564 | 1,120 |
Other Loans | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 0 | 0 |
Other Loans | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 6 | 19 |
Other Loans | Doubtful | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | $ 0 | $ 0 |
Loans Receivable - Loans accrui
Loans Receivable - Loans accruing and nonaccrual loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | $ 712,492 | $ 727,905 |
Non-Accrual | 2,716 | 2,727 |
90 Days Past Due and Accruing | 0 | 3 |
Total loans before allowance for loan losses | 717,847 | 733,396 |
30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 2,256 | 2,571 |
60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 383 | 190 |
Real Estate Loans | One-to-four-family Residential and Construction | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 230,952 | 250,691 |
Non-Accrual | 2,067 | 1,727 |
90 Days Past Due and Accruing | 0 | 0 |
Total loans before allowance for loan losses | 234,421 | 253,913 |
Real Estate Loans | One-to-four-family Residential and Construction | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 1,021 | 1,341 |
Real Estate Loans | One-to-four-family Residential and Construction | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 381 | 154 |
Real Estate Loans | Commercial Real Estate and Construction | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 322,922 | 307,740 |
Non-Accrual | 311 | 661 |
90 Days Past Due and Accruing | 0 | 0 |
Total loans before allowance for loan losses | 323,843 | 308,775 |
Real Estate Loans | Commercial Real Estate and Construction | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 610 | 374 |
Real Estate Loans | Commercial Real Estate and Construction | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 0 | 0 |
Real Estate Loans | Home Equity Loans and Lines of Credit | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 110,634 | 122,929 |
Non-Accrual | 272 | 258 |
90 Days Past Due and Accruing | 0 | 0 |
Total loans before allowance for loan losses | 111,499 | 123,373 |
Real Estate Loans | Home Equity Loans and Lines of Credit | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 591 | 163 |
Real Estate Loans | Home Equity Loans and Lines of Credit | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 2 | 23 |
Commercial Business | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 47,420 | 45,434 |
Non-Accrual | 60 | 62 |
90 Days Past Due and Accruing | 0 | 0 |
Total loans before allowance for loan losses | 47,514 | 46,196 |
Commercial Business | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 34 | 690 |
Commercial Business | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 0 | 10 |
Other Loans | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 564 | 1,111 |
Non-Accrual | 6 | 19 |
90 Days Past Due and Accruing | 0 | 3 |
Total loans before allowance for loan losses | 570 | 1,139 |
Other Loans | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 0 | 3 |
Other Loans | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | $ 0 | $ 3 |
Loans Receivable - Allowance re
Loans Receivable - Allowance required for loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for loan losses | ||||
Balance at the beginning of the period | $ 4,414 | $ 4,127 | ||
Charge-offs | (267) | (372) | ||
Recoveries | 10 | 87 | ||
Provision | 725 | 572 | ||
Balance at the end of the period | 4,882 | 4,414 | ||
Evaluated for Impairment: | ||||
Individually | $ 0 | $ 0 | ||
Collectively | 4,882 | 4,414 | ||
Balance at the end of the period | 4,882 | 4,414 | 4,882 | 4,414 |
Real Estate Loans | One-to-four-family Residential and Construction | ||||
Allowance for loan losses | ||||
Balance at the beginning of the period | 1,051 | 1,384 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 4 | 69 | ||
Provision | (334) | (402) | ||
Balance at the end of the period | 721 | 1,051 | ||
Evaluated for Impairment: | ||||
Individually | 0 | 0 | ||
Collectively | 721 | 1,051 | ||
Balance at the end of the period | 721 | 1,051 | 721 | 1,051 |
Real Estate Loans | Commercial Real Estate and Construction | ||||
Allowance for loan losses | ||||
Balance at the beginning of the period | 2,761 | 2,003 | ||
Charge-offs | (187) | (80) | ||
Recoveries | 3 | 2 | ||
Provision | 736 | 836 | ||
Balance at the end of the period | 3,313 | 2,761 | ||
Evaluated for Impairment: | ||||
Individually | 0 | 0 | ||
Collectively | 3,313 | 2,761 | ||
Balance at the end of the period | 3,313 | 2,761 | 3,313 | 2,761 |
Real Estate Loans | Home Equity Loans and Lines of Credit | ||||
Allowance for loan losses | ||||
Balance at the beginning of the period | 312 | 400 | ||
Charge-offs | (2) | 0 | ||
Recoveries | 1 | 11 | ||
Provision | (1) | (99) | ||
Balance at the end of the period | 310 | 312 | ||
Evaluated for Impairment: | ||||
Individually | 0 | 0 | ||
Collectively | 310 | 312 | ||
Balance at the end of the period | 310 | 312 | 310 | 312 |
Commercial Business | ||||
Allowance for loan losses | ||||
Balance at the beginning of the period | 286 | 333 | ||
Charge-offs | (37) | (244) | ||
Recoveries | 0 | 5 | ||
Provision | 285 | 192 | ||
Balance at the end of the period | 534 | 286 | ||
Evaluated for Impairment: | ||||
Individually | 0 | 0 | ||
Collectively | 534 | 286 | ||
Balance at the end of the period | 534 | 286 | 534 | 286 |
Other Loans | ||||
Allowance for loan losses | ||||
Balance at the beginning of the period | 4 | 7 | ||
Charge-offs | (41) | (48) | ||
Recoveries | 2 | 0 | ||
Provision | 39 | 45 | ||
Balance at the end of the period | 4 | 4 | ||
Evaluated for Impairment: | ||||
Individually | 0 | 0 | ||
Collectively | 4 | 4 | ||
Balance at the end of the period | $ 4 | $ 4 | $ 4 | $ 4 |
Loans Receivable - Additional I
Loans Receivable - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)itemsecurity | Dec. 31, 2018USD ($)item | |
Financing Receivable, Recorded Investment [Line Items] | ||
Deferred loan costs of loans receivable | $ 233,000 | $ 226,000 |
Possible impairment of past due troubled debt restructuring | 200,000 | |
Average investment in impaired loans | $ 288,000 | 236,000 |
Past due period for troubled debt restructuring | 90 days | |
Threshold limit of watch list loans for external loan review | $ 100,000 | |
Net mortgage servicing rights | 487,000 | 454,000 |
Real Estate Acquired Through Foreclosure | $ 404,000 | $ 486,000 |
Residential property | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of Real Estate Properties | item | 2 | 2 |
Commercial Real Estate and Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of Real Estate Properties | item | 1 | 1 |
Minimum | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of semi annual review loan relationship | security | 50 | |
Amount of new loan originations limit selected for external loan review | $ 200,000 | |
Maximum | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of semi annual review loan relationship | security | 60 | |
Amount of new loan originations limit selected for external loan review | $ 500,000 | |
Real Estate Loans | One-to-four-family Residential and Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan receivable maturity | 30 years | |
Real Estate Loans | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan receivable maturity | 20 years | |
Other Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan balances serviced for others | $ 69,000,000 | $ 66,300,000 |
Foreclosed Assets Held For Sa_2
Foreclosed Assets Held For Sale (Details) | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($)item |
Foreclosed Assets Held For Sale [Line Items] | ||
Foreclosed assets acquired in settlement of loans | $ 404,000 | $ 486,000 |
Residential property | ||
Foreclosed Assets Held For Sale [Line Items] | ||
Number of properties | item | 2 | 2 |
One-to-four family residential loans | ||
Foreclosed Assets Held For Sale [Line Items] | ||
Initiated formal foreclosure procedures | $ 1,100,000 | |
Commercial Real Estate and Construction | ||
Foreclosed Assets Held For Sale [Line Items] | ||
Number of properties | item | 1 | 1 |
Home Equity Loans and Lines of Credit | ||
Foreclosed Assets Held For Sale [Line Items] | ||
Initiated formal foreclosure procedures | $ 53,000 |
Office Properties and Equipme_3
Office Properties and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 21,356 | $ 19,176 |
Less accumulated depreciation | (11,468) | (11,447) |
Plus projects in progress | 42 | 65 |
Premises and equipment, net | 9,930 | 7,794 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 2,402 | 3,152 |
Estimated Useful Life | 10 years | |
Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 10,322 | 10,475 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 893 | 871 |
Right-of-use asset financing leases | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 3,050 | 0 |
Furnitures, fixtures, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 4,689 | $ 4,678 |
Minimum | Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 10 years | |
Minimum | Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 1 year | |
Minimum | Right-of-use asset financing leases | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 1 year | |
Minimum | Furnitures, fixtures, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Maximum | Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 50 years | |
Maximum | Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 20 years | |
Maximum | Right-of-use asset financing leases | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 12 years | |
Maximum | Furnitures, fixtures, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 10 years |
Office Properties and Equipme_4
Office Properties and Equipment - Financing Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Office Properties and Equipment | |
Amortization of right-of-use asset | $ 372 |
Interest expense | 50 |
Total financing lease costs | $ 422 |
Office Properties and Equipme_5
Office Properties and Equipment - Weighted-average remaining term and discount rates (Details) | Dec. 31, 2019 |
Office Properties and Equipment | |
Weighted-average term (years) | 9 years 10 months 24 days |
Weighted-average discount rate | 2.60% |
Office Properties and Equipme_6
Office Properties and Equipment - Undiscounted cash flow due (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Undiscounted cash flows due within: | |
2020 | $ 361 |
2021 | 358 |
2022 | 359 |
2023 | 361 |
2024 | 362 |
2025 and thereafter | 1,719 |
Total undiscounted cash flows | 3,520 |
Impact of present value discount | (428) |
Amount reported on balance sheet | $ 3,092 |
Office Properties and Equipme_7
Office Properties and Equipment - Additional information (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)agreement | Dec. 31, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Depreciation expense | $ 1,100,000 | $ 771,000 |
Number of financing lease agreements | agreement | 4 | |
Finance lease liabilities | $ 3,092,000 | $ 0 |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Finance right-of-use assets | 3,400,000 | |
Finance lease liabilities | $ 3,400,000 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits | ||
Noninterest-bearing demand | $ 127,168 | $ 135,708 |
Interest-bearing demand | 111,428 | 100,163 |
Savings | 144,120 | 147,695 |
Money market | 106,576 | 87,611 |
Time deposits | 245,114 | 246,697 |
Total Deposits | $ 734,406 | $ 717,874 |
Deposits - Scheduled maturities
Deposits - Scheduled maturities of time deposit (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits | ||
One year or less | $ 127,643 | |
Over one through two years | 35,141 | |
Over two through three years | 33,932 | |
Over three through four years | 32,356 | |
Over four through five years | 9,271 | |
Over five years | 6,771 | |
Total | $ 245,114 | $ 246,697 |
Deposits - Scheduled maturiti_2
Deposits - Scheduled maturities of time deposit in denominations of $100,000 or more (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Deposits | |
Three months or less | $ 24,941 |
Over three to six months | 15,548 |
Over six to twelve months | 21,926 |
Over twelve months | 50,263 |
Total | $ 112,678 |
Deposits - Additional informati
Deposits - Additional information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits | ||
Aggregated amount certificates of deposit in denominations of $250,000 or more | $ 46 | $ 35.2 |
Short-term and Long-term Borr_3
Short-term and Long-term Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Short-term and Long-term Borrowings | ||
Federal Home Loan Bank short-term borrowings, Balance | $ 0 | $ 4,524 |
Average balance outstanding during the period | 1,698 | 12,696 |
Maximum amount outstanding at any month-end | $ 11,339 | $ 51,500 |
Weighted average interest rate at period end | 0.00% | 2.64% |
Average interest rate during the period | 2.67% | 1.79% |
Short-term and Long-term Borr_4
Short-term and Long-term Borrowings - Schedule of Federal home loan bank advances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Interest Rate on Lease LIabilities | 2.60% | |
Lease liabilities | $ 3,092 | $ 0 |
FHLB advances as well as lease liabilities | $ 99,098 | 104,963 |
January 22, 2019 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Jan. 22, 2019 | |
Interest Rate | 1.25% | |
FHLB advances as well as lease liabilities | $ 0 | 125 |
June 24, 2019 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Jun. 24, 2019 | |
Interest Rate | 1.63% | |
FHLB advances as well as lease liabilities | $ 0 | 1,805 |
September 11, 2019 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Sep. 11, 2019 | |
Interest Rate | 1.59% | |
FHLB advances as well as lease liabilities | $ 0 | 6,438 |
November 12, 2019 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Nov. 12, 2019 | |
Interest Rate | 1.91% | |
FHLB advances as well as lease liabilities | $ 0 | 3,151 |
January 8, 2020 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Jan. 8, 2020 | |
Interest Rate | 1.70% | |
FHLB advances as well as lease liabilities | $ 5,794 | 5,794 |
March 20 2020 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Mar. 20, 2020 | |
Interest Rate | 2.51% | |
FHLB advances as well as lease liabilities | $ 1,278 | 6,309 |
July 29, 2020 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Jul. 29, 2020 | |
Interest Rate | 1.91% | |
FHLB advances as well as lease liabilities | $ 1,822 | 1,822 |
August 17, 2020 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Aug. 17, 2020 | |
Interest Rate | 1.63% | |
FHLB advances as well as lease liabilities | $ 5,635 | 5,635 |
September 8, 2020 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Sep. 8, 2020 | |
Interest Rate | 1.69% | |
FHLB advances as well as lease liabilities | $ 4,204 | 9,726 |
December 9, 2020 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Dec. 9, 2020 | |
Interest Rate | 1.92% | |
FHLB advances as well as lease liabilities | $ 3,500 | 3,500 |
January 26, 2021 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Jan. 26, 2021 | |
Interest Rate | 1.94% | |
FHLB advances as well as lease liabilities | $ 4,000 | 4,000 |
February 22, 2021 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Feb. 22, 2021 | |
Interest Rate | 1.95% | |
FHLB advances as well as lease liabilities | $ 3,365 | 3,365 |
March 8, 2021 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Mar. 8, 2021 | |
Interest Rate | 2.54% | |
FHLB advances as well as lease liabilities | $ 4,421 | 7,639 |
May 7, 2021 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | May 7, 2021 | |
Interest Rate | 2.38% | |
FHLB advances as well as lease liabilities | $ 5,000 | 0 |
August 18, 2021 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Aug. 18, 2021 | |
Interest Rate | 1.80% | |
FHLB advances as well as lease liabilities | $ 1,443 | 2,289 |
September 7, 2021 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Sep. 7, 2021 | |
Interest Rate | 2.17% | |
FHLB advances as well as lease liabilities | $ 5,000 | 0 |
September 8, 2021 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Sep. 8, 2021 | |
Interest Rate | 1.77% | |
FHLB advances as well as lease liabilities | $ 7,363 | 11,469 |
November 15, 2021 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Nov. 15, 2021 | |
Interest Rate | 3.23% | |
FHLB advances as well as lease liabilities | $ 3,000 | 3,000 |
June 6, 2022 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Jun. 6, 2022 | |
Interest Rate | 2.14% | |
FHLB advances as well as lease liabilities | $ 5,000 | 0 |
August 8, 2022 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Aug. 8, 2022 | |
Interest Rate | 1.85% | |
FHLB advances as well as lease liabilities | $ 5,000 | 0 |
September 8, 2022 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Sep. 8, 2022 | |
Interest Rate | 1.86% | |
FHLB advances as well as lease liabilities | $ 5,615 | 7,587 |
December 9, 2022 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Dec. 9, 2022 | |
Interest Rate | 2.26% | |
FHLB advances as well as lease liabilities | $ 3,212 | 3,212 |
December 29, 2022 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Dec. 29, 2022 | |
Interest Rate | 2.45% | |
FHLB advances as well as lease liabilities | $ 6,146 | 8,097 |
May 30 2023 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | May 30, 2023 | |
Interest Rate | 2.93% | |
FHLB advances as well as lease liabilities | $ 10,000 | 10,000 |
August 8, 2023 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Aug. 8, 2023 | |
Interest Rate | 1.82% | |
FHLB advances as well as lease liabilities | $ 5,208 | $ 0 |
Short-term and Long-term Borr_5
Short-term and Long-term Borrowings - Additional information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term and Long-term Borrowings | ||
Maximum borrowing capacity under revolving line of credit | $ 431,800 | |
FHLB borrowing capacity on short term basis | 207,100 | |
FHLB outstanding balance | $ 0 | $ 4,524 |
Interest rate | 2.64% |
Securities Sold Under Agreeme_3
Securities Sold Under Agreement to Repurchase (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total collateral pledged | $ 9,446 | $ 10,855 |
Gross amount of recognized liabilities for securities sold under agreements to repurchase | 3,740 | 2,137 |
Amounts related to agreements not included in offsetting disclosures above | 5,706 | 8,718 |
U.S. government and agency obligations | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total collateral pledged | 4,435 | 6,031 |
Municipal obligations | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total collateral pledged | 5,011 | 4,824 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total collateral pledged | 9,446 | 10,855 |
Overnight and Continuous | U.S. government and agency obligations | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total collateral pledged | 4,435 | 6,031 |
Overnight and Continuous | Municipal obligations | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total collateral pledged | 5,011 | 4,824 |
Up to 30 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total collateral pledged | 0 | 0 |
Up to 30 Days | U.S. government and agency obligations | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total collateral pledged | 0 | 0 |
Up to 30 Days | Municipal obligations | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total collateral pledged | 0 | 0 |
30 - 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total collateral pledged | 0 | 0 |
30 - 90 Days | U.S. government and agency obligations | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total collateral pledged | 0 | 0 |
30 - 90 Days | Municipal obligations | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total collateral pledged | 0 | 0 |
Greater than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total collateral pledged | 0 | 0 |
Greater than 90 Days | U.S. government and agency obligations | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total collateral pledged | 0 | 0 |
Greater than 90 Days | Municipal obligations | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total collateral pledged | $ 0 | $ 0 |
Securities Sold Under Agreeme_4
Securities Sold Under Agreement to Repurchase - Outstanding balances and related information for repurchase agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Securities Sold Under Agreement to Repurchase | ||
Balance | $ 3,740 | $ 2,137 |
Average balance outstanding during the period | 3,738 | 4,782 |
Maximum amount outstanding at any month-end | $ 4,136 | $ 8,251 |
Weighted average interest rate at period end | 0.48% | 0.19% |
Average interest rate during the period | 0.45% | 0.23% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Federal: | ||
Current | $ 1,784 | $ 2,001 |
Deferred | (80) | (288) |
Total federal | 1,704 | 1,713 |
State | $ 634 | $ 535 |
Income Taxes - Difference betwe
Income Taxes - Difference between the expected and actual tax provision (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes | ||
Expected federal tax rate, Amount | $ 2,341 | $ 2,321 |
Expected federal tax rate, % of Pre-tax Income | 21.00% | 21.00% |
State taxes, net of federal tax benefit, Amount | $ 501 | $ 421 |
State taxes, net of federal tax benefit, % of Pre-tax Income | 4.50% | 3.80% |
Nontaxable interest income, Amount | $ (393) | $ (377) |
Nontaxable interest income, % of Pre-tax Income | (3.50%) | (3.40%) |
Bank-owned life insurance, Amount | $ (113) | $ (112) |
Bank-owned life insurance, % of Pre-tax Income | 1.00% | 1.00% |
Other items, net, Amount | $ 2 | $ (5) |
Other items, net, % of Pre-tax Income | 0.00% | (0.10%) |
Total Income Tax Expense | $ 2,338 | $ 2,248 |
Effective Tax Rate, % of Pre-tax Income | 21.00% | 20.30% |
Income Taxes - Components of ne
Income Taxes - Components of net deferred tax asset (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets: | ||
Allowance for loan losses | $ 1,025 | $ 927 |
Employee benefits | 326 | 290 |
Impairment reserves | 0 | 11 |
Net unrealized losses on securities | 0 | 195 |
Capital loss carryforward | 0 | 19 |
Other, net | 192 | 148 |
Total Deferred Tax Assets | 1,543 | 1,590 |
Deferred Tax Liabilities: | ||
Net unrealized gains on securities | (369) | 0 |
Premises and equipment | (172) | (214) |
Purchase accounting | (61) | (14) |
Equity security fair value adjustments | (57) | 0 |
Other, net | (51) | (46) |
Total Deferred Tax Liabilities | (710) | (274) |
Net Deferred Tax Assets | $ 833 | $ 1,316 |
Income Taxes - Additional infor
Income Taxes - Additional information (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax [Line Items] | ||
US corporate income tax rate | 21.00% | 21.00% |
Percentage of corporate income tax | 4.50% | 3.80% |
Pennsylvania | ||
Income Tax [Line Items] | ||
Percentage of corporate income tax | 11.50% | |
Maryland | ||
Income Tax [Line Items] | ||
Percentage of corporate income tax | 8.25% | |
West Virginia Corporation | ||
Income Tax [Line Items] | ||
Percentage of corporate income tax | 6.50% |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Total capital (to risk weighted assets) | ||
Total capital (to risk weighted assets) Actual Amount | $ 118,113 | $ 115,390 |
Total capital (to risk weighted assets) Actual Ratio | 18.17% | 17.38% |
Total capital (to risk weighted assets) For capital adequacy purposes Amount | $ 52,014 | $ 53,127 |
Total capital (to risk weighted assets) For capital adequacy purposes Ratio | 8.00% | 8.00% |
Total capital (to risk weighted assets) To be well capitalized Amount | $ 65,017 | $ 66,409 |
Total capital (to risk weighted assets) To be well capitalized Ratio | 10.00% | 10.00% |
Common equity tier I (to risk weighted assets) | ||
Common equity tier I (to risk weighted assets) Actual Amount | $ 113,234 | $ 110,981 |
Common equity tier I (to risk weighted assets) Actual Ratio | 17.42% | 16.71% |
Common equity tier I (to risk weighted assets) For capital adequacy purposes Amount | $ 29,258 | $ 29,884 |
Common equity tier I (to risk weighted assets) For capital adequacy purposes Ratio | 4.50% | 4.50% |
Common equity tier I (to risk weighted assets) To be well capitalized Amount | $ 42,261 | $ 43,166 |
Common equity tier I (to risk weighted assets) To be well capitalized Ratio | 6.50% | 6.50% |
Tier I capital (to risk weighted assets) | ||
Tier I capital (to risk weighted assets) Actual Amount | $ 113,234 | $ 110,981 |
Tier I capital (to risk weighted assets) Actual Ratio | 17.42% | 16.71% |
Tier I capital (to risk weighted assets) For capital adequacy purposes Amount | $ 39,010 | $ 39,845 |
Tier I capital (to risk weighted assets) For capital adequacy purposes Ratio | 6.00% | 6.00% |
Tier I capital (to risk weighted assets) To be well capitalized Amount | $ 52,014 | $ 53,127 |
Tier I capital (to risk weighted assets) To be well capitalized Ratio | 8.00% | 8.00% |
Tier I capital (to average assets) | ||
Tier I capital (to average assets) Actual Amount | $ 113,234 | $ 110,981 |
Tier I capital (to average assets) Actual Ratio | 11.76% | 11.71% |
Tier I capital (to average assets) For capital adequacy purposes Amount | $ 38,504 | $ 37,921 |
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 Amount | $ 48,130 | $ 47,401 |
Tier I capital (to average assets) To be well capitalized Ratio | 5.00% | 5.00% |
Bank | ||
Total capital (to risk weighted assets) | ||
Total capital (to risk weighted assets) Actual Amount | $ 114,626 | $ 111,857 |
Total capital (to risk weighted assets) Actual Ratio | 17.64% | 16.85% |
Total capital (to risk weighted assets) For capital adequacy purposes Amount | $ 51,989 | $ 53,108 |
Total capital (to risk weighted assets) For capital adequacy purposes Ratio | 8.00% | 8.00% |
Total capital (to risk weighted assets) To be well capitalized Amount | $ 64,986 | $ 66,384 |
Total capital (to risk weighted assets) To be well capitalized Ratio | 10.00% | 10.00% |
Common equity tier I (to risk weighted assets) | ||
Common equity tier I (to risk weighted assets) Actual Amount | $ 109,747 | $ 107,451 |
Common equity tier I (to risk weighted assets) Actual Ratio | 16.89% | 16.19% |
Common equity tier I (to risk weighted assets) For capital adequacy purposes Amount | $ 29,244 | $ 29,873 |
Common equity tier I (to risk weighted assets) For capital adequacy purposes Ratio | 4.50% | 4.50% |
Common equity tier I (to risk weighted assets) To be well capitalized Amount | $ 42,241 | $ 43,150 |
Common equity tier I (to risk weighted assets) To be well capitalized Ratio | 6.50% | 6.50% |
Tier I capital (to risk weighted assets) | ||
Tier I capital (to risk weighted assets) Actual Amount | $ 109,747 | $ 107,451 |
Tier I capital (to risk weighted assets) Actual Ratio | 16.89% | 16.19% |
Tier I capital (to risk weighted assets) For capital adequacy purposes Amount | $ 38,992 | $ 39,831 |
Tier I capital (to risk weighted assets) For capital adequacy purposes Ratio | 6.00% | 6.00% |
Tier I capital (to risk weighted assets) To be well capitalized Amount | $ 51,989 | $ 53,108 |
Tier I capital (to risk weighted assets) To be well capitalized Ratio | 8.00% | 8.00% |
Tier I capital (to average assets) | ||
Tier I capital (to average assets) Actual Amount | $ 109,747 | $ 107,451 |
Tier I capital (to average assets) Actual Ratio | 11.46% | 11.33% |
Tier I capital (to average assets) For capital adequacy purposes Amount | $ 38,314 | $ 37,947 |
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 Amount | $ 47,892 | $ 47,434 |
Tier I capital (to average assets) To be well capitalized Ratio | 5.00% | 5.00% |
Regulatory Capital Requiremen_4
Regulatory Capital Requirements - Additional information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Regulatory Capital Requirements | ||
Federal reserve | $ 11.7 | $ 11.5 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Options | |||
Exercised (in shares) | (18,914) | (35,536) | |
Unearned ESOP Shares | |||
Options | |||
Outstanding at the beginning of the year | 266,695 | 302,231 | |
Granted (in shares) | 0 | 0 | |
Exercised (in shares) | (18,914) | (35,536) | |
Forfeited (in shares) | 0 | 0 | |
Outstanding at the ending of the year | 247,781 | 266,695 | 302,231 |
Exercisable (in shares) | 247,781 | 266,695 | |
Weighted Average Exercise Price | |||
Outstanding at the beginning of the year (in dollars per share) | $ 17.12 | $ 17.25 | |
Granted (in dollars per share) | 0 | 0 | |
Exercise price (in dollars per share) | 17.74 | 18.25 | |
Forfeited (in dollars per share) | 0 | 0 | |
Outstanding at the ending of the year (in dollars per share) | 17.07 | 17.12 | $ 17.25 |
Exercisable (in dollars per share) | $ 17.07 | $ 17.12 | |
Weighted Average Remaining Contractual Term | 2 years 5 months 19 days | 3 years 3 months 26 days | 4 years 1 month 10 days |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted stock (Details) - Restricted stock - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Restricted Shares | ||
Non-vested shares at beginning (in shares) | 250 | |
Granted | 4,547 | 250 |
Vested | 2,853 | |
Forfeited | 0 | 0 |
Non-vested shares at ending (in shares) | 1,944 | 250 |
Weighted Average Grant Date Price Per Share | ||
Non-vested shares at the beginning of the period (in dollars per share) | $ 31.10 | |
Granted | 29.13 | $ 31.10 |
Vested | 29.47 | |
Forfeited | 0 | 0 |
Non-vested shares at the end of the period (in dollars per share) | $ 28.90 | $ 31.10 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) - USD ($) | Mar. 12, 2019 | Feb. 26, 2019 | Sep. 28, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Stock Based Compensation | |||||
Unrecognized compensation expense | $ 59,000 | ||||
Allegheny Valley Bancorp, Inc. 2011 Stock Incentive Plan (the "2011 Plan") | |||||
Stock Based Compensation | |||||
Number of shares available to be issued | 72,588 | ||||
Standard Financial Corp. 2012 Equity Incentive Plan (the "2012 Plan") | |||||
Stock Based Compensation | |||||
Number of shares available to be issued | 101,144 | ||||
Restricted stock | |||||
Stock Based Compensation | |||||
Compensation expense | $ 81,000 | $ 972 | |||
Restricted stock | Allegheny Valley Bancorp, Inc. 2011 Stock Incentive Plan (the "2011 Plan") | |||||
Stock Based Compensation | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 250 | ||||
Restricted stock | Allegheny Valley Bancorp, Inc. 2011 Stock Incentive Plan (the "2011 Plan") | Directors and officers | |||||
Stock Based Compensation | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 1,820 | ||||
Restricted stock | Allegheny Valley Bancorp, Inc. 2011 Stock Incentive Plan (the "2011 Plan") | Employee | |||||
Stock Based Compensation | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 2,727 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Stock Ownership Plan | ||
Number of years of service to be completed to participate in the plan | 1 year | |
Employees vesting rate in ESOP account after two years of service (as a percent) | 20.00% | |
Employees vesting rate in ESOP account after three years of service (as a percent) | 40.00% | |
Employees vesting rate in ESOP account after four years of service (as a percent) | 60.00% | |
Employees vesting rate in ESOP account after five years of service (as a percent) | 80.00% | |
Employees vesting rate in ESOP account after six years of service (as a percent) | 100.00% | |
Stock purchased by the ESOP, funded by loan (in shares) | 278,254 | |
ESOP expense | $ 410 | $ 440 |
Total shares held by ESOP | 253,588 | 254,610 |
Unallocated shares | 159,003 | 173,458 |
Fair market value of the unallocated ESOP shares | $ 4,800 | $ 5,200 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Change in projected benefit obligation: | ||
Interest cost | $ (123) | $ (131) |
Settlement payments | 48 | 61 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 2,883 | |
Fair value of plan assets at end of year | 2,856 | 2,883 |
Pension plan | ||
Change in projected benefit obligation: | ||
Benefit obligation at beginning of year | 3,437 | 4,168 |
Interest cost | (123) | (131) |
Settlement (gain) loss | (32) | 11 |
Actuarial loss (gain) | 388 | (312) |
Benefits paid | (37) | (36) |
Settlement payments | (411) | (525) |
Projected benefit obligation at end of year | 3,468 | 3,437 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 2,883 | 3,564 |
Actual return on plan assets | 454 | (99) |
Benefits paid | (37) | (36) |
Administrative expenses | (33) | (21) |
Settlement payments | (411) | (525) |
Fair value of plan assets at end of year | 2,856 | 2,883 |
Funded status | (612) | (554) |
Amounts recognized in accumulated other comprehensive loss consists of: | ||
Unrecognized actuarial loss | 405 | 400 |
Total | $ 405 | $ 400 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Benefit Plans | ||
Interest Cost | $ 123 | $ 131 |
Expected return on plan assets | (126) | (162) |
Amortization of net loss | 9 | 10 |
Settlement payments | 48 | 61 |
Net periodic pension cost | $ 54 | $ 40 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of net periodic benefit cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Total | $ 1,142 | $ (1,344) |
Accumulated Other Comprehensive Income (Loss) | ||
Net loss | 10 | |
Total | $ 10 |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted-average assumptions used to determine benefit obligations (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Pension plan | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Discount rate | 3.25% | 4.00% |
Employee Benefit Plans - Weig_2
Employee Benefit Plans - Weighted-average assumptions to determine net periodic benefit cost (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension plan | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Discount rate | 3.25% | 4.00% |
Employee Benefit Plans - Plan A
Employee Benefit Plans - Plan Assets (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 100.00% | 100.00% |
Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 2.11% | 2.89% |
Equity Mutual Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 55.68% | 37.88% |
Bond Mutual Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 42.21% | 59.23% |
Employee Benefit Plans - Plan_2
Employee Benefit Plans - Plan assets at fair value hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | $ 2,856 | $ 2,883 |
Cash and Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 61 | 83 |
Domestic Stock Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 1,251 | 896 |
International Stock Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 339 | 196 |
Domestic Bond Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 1,205 | 1,708 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 2,856 | 2,883 |
Level 1 | Cash and Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 61 | 83 |
Level 1 | Domestic Stock Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 1,251 | 896 |
Level 1 | International Stock Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 339 | 196 |
Level 1 | Domestic Bond Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 1,205 | 1,708 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 0 | 0 |
Level 2 | Cash and Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 0 | 0 |
Level 2 | Domestic Stock Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 0 | 0 |
Level 2 | International Stock Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 0 | 0 |
Level 2 | Domestic Bond Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 0 | 0 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 0 | 0 |
Level 3 | Cash and Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 0 | 0 |
Level 3 | Domestic Stock Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 0 | 0 |
Level 3 | International Stock Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 0 | 0 |
Level 3 | Domestic Bond Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | $ 0 | $ 0 |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of defined benefit payments (Details) - Defined benefit plan $ in Thousands | Dec. 31, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 682 |
2021 | 152 |
2022 | 157 |
2023 | 136 |
2024 | 151 |
2025-2029 | 818 |
Total | $ 2,096 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan | ||
Expected contribution to defined benefit pension plan | $ 100,000 | |
Defined benefit pension accumulated obligation | 3,500,000 | $ 3,400,000 |
Interest Cost | $ 123,000 | $ 131,000 |
Long-term rate of return on plan assets assumed percentage | 5.00% | 5.00% |
Supplemental Executive Retirement Plan ("SERP") | ||
Defined Benefit Plan | ||
Service cost | $ 102,000 | $ 114,000 |
Interest Cost | $ 3,000 | 4,000 |
Equity Mutual Funds [Member] | ||
Defined Benefit Plan | ||
Defined benefit pension plan percent | 50.00% | |
Bond Mutual Funds [Member] | ||
Defined Benefit Plan | ||
Defined benefit pension plan percent | 50.00% | |
Multiemployer 401k plans | ||
Defined Benefit Plan | ||
Employees' contributions matched by the employer, as a percentage of employees' pretax salaries | 4.00% | |
Expense recognized | $ 309,000 | $ 306,000 |
Financial Instruments With Of_3
Financial Instruments With Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk, amount | $ 121,698 | $ 137,179 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk, amount | 4,012 | 4,202 |
Commercial loan commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk, amount | 58,569 | 67,240 |
Other | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk, amount | 18,601 | 24,251 |
One-to-four-family Residential and Construction | Loan commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk, amount | 5,869 | 872 |
One-to-four-family Residential and Construction | Undisbursed home equity lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk, amount | 30,716 | 34,485 |
One-to-four-family Residential and Construction | Undisbursed funds - construction loans in process | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk, amount | $ 3,931 | $ 6,129 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets measured at fair value | ||
Total investment securities available for sale | $ 69,884 | $ 66,169 |
Equity securities | 2,955 | 2,725 |
Mortgage-backed securities available for sale | 91,478 | 81,794 |
Level 1 | ||
Assets measured at fair value | ||
Total investment securities available for sale | 0 | 0 |
Equity securities | 2,955 | 2,725 |
Mortgage-backed securities available for sale | 0 | 0 |
Level 2 | ||
Assets measured at fair value | ||
Total investment securities available for sale | 69,884 | 66,169 |
Equity securities | 0 | |
Mortgage-backed securities available for sale | 91,478 | 81,794 |
Level 3 | ||
Assets measured at fair value | ||
Total investment securities available for sale | 0 | 0 |
Equity securities | 0 | |
Mortgage-backed securities available for sale | 0 | 0 |
Recurring basis | ||
Assets measured at fair value | ||
Total investment securities available for sale | 69,884 | 66,169 |
Equity securities | 2,955 | 2,725 |
Mortgage-backed securities available for sale | 91,478 | 81,794 |
Total recurring fair value measurements | 164,317 | 150,688 |
Recurring basis | U.S. government and agency obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | 8,489 | 8,270 |
Recurring basis | Corporate bonds | ||
Assets measured at fair value | ||
Total investment securities available for sale | 2,579 | 4,201 |
Recurring basis | Municipal obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | 58,816 | 53,698 |
Recurring basis | Level 1 | ||
Assets measured at fair value | ||
Total investment securities available for sale | 0 | 0 |
Equity securities | 2,955 | 2,725 |
Mortgage-backed securities available for sale | 0 | 0 |
Total recurring fair value measurements | 2,955 | 2,725 |
Recurring basis | Level 1 | U.S. government and agency obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | 0 | 0 |
Recurring basis | Level 1 | Corporate bonds | ||
Assets measured at fair value | ||
Total investment securities available for sale | 0 | 0 |
Recurring basis | Level 1 | Municipal obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | 0 | 0 |
Recurring basis | Level 2 | ||
Assets measured at fair value | ||
Total investment securities available for sale | 69,884 | 66,169 |
Equity securities | 0 | 0 |
Mortgage-backed securities available for sale | 91,478 | 81,794 |
Total recurring fair value measurements | 161,362 | 147,963 |
Recurring basis | Level 2 | U.S. government and agency obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | 8,489 | 8,270 |
Recurring basis | Level 2 | Corporate bonds | ||
Assets measured at fair value | ||
Total investment securities available for sale | 2,579 | 4,201 |
Recurring basis | Level 2 | Municipal obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | 58,816 | 53,698 |
Recurring basis | Level 3 | ||
Assets measured at fair value | ||
Total investment securities available for sale | 0 | 0 |
Equity securities | 0 | 0 |
Mortgage-backed securities available for sale | 0 | 0 |
Total recurring fair value measurements | 0 | 0 |
Recurring basis | Level 3 | U.S. government and agency obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | 0 | 0 |
Recurring basis | Level 3 | Corporate bonds | ||
Assets measured at fair value | ||
Total investment securities available for sale | 0 | 0 |
Recurring basis | Level 3 | Municipal obligations | ||
Assets measured at fair value | ||
Total investment securities available for sale | $ 0 | $ 0 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Nonrecurring (Details) - Nonrecurring basis - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | $ 404 | $ 486 |
Level 1 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 0 | 0 |
Level 2 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 0 | 0 |
Level 3 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 404 | 486 |
Foreclosed real estate | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 404 | 486 |
Foreclosed real estate | Level 1 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 0 | 0 |
Foreclosed real estate | Level 2 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 0 | 0 |
Foreclosed real estate | Level 3 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | $ 404 | $ 486 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Additional quantitative information (Details) - Nonrecurring basis - Level 3 $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Foreclosed real estate | $ 404 | $ 486 |
Appraisal Of Collateral | Appraisal adjustments | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Foreclosed real estate, unobservable input (in percent) | 0 | |
Appraisal Of Collateral | Appraisal adjustments | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Foreclosed real estate, unobservable input (in percent) | 30 |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Fair value hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments - Assets: | ||
Cash on hand and due from banks | $ 3,396 | $ 3,371 |
Interest-earning deposits in other institutions | 29,031 | 12,836 |
Investment securities | 69,884 | 66,169 |
Mortgage-backed securities | 91,478 | 81,794 |
Equity Securities | 2,955 | 2,725 |
Bank-owned life insurance | 23,374 | 22,572 |
Financial Instruments - Liabilities: | ||
Demand and savings accounts | 489,292 | 471,177 |
Certificate deposit accounts | 245,114 | 246,697 |
Federal Home Loan Bank short-term borrowings | 0 | 4,524 |
Carrying Amount | ||
Financial Instruments - Assets: | ||
Cash on hand and due from banks | 3,396 | 3,371 |
Interest-earning deposits in other institutions | 29,031 | 12,836 |
Certificate of deposit | 249 | 249 |
Investment securities | 69,884 | 66,169 |
Mortgage-backed securities | 91,478 | 81,794 |
Equity Securities | 2,955 | 2,725 |
Federal Home Loan Bank and other restricted stock | 7,486 | 7,900 |
Loans receivable | 712,965 | 728,982 |
Bank-owned life insurance | 23,374 | 22,572 |
Accrued interest receivable | 2,794 | 2,823 |
Financial Instruments - Liabilities: | ||
Demand and savings accounts | 489,292 | 471,177 |
Certificate deposit accounts | 245,114 | 246,697 |
Federal Home Loan Bank short-term borrowings | 0 | 4,524 |
Federal Home Loan Bank advances | 99,098 | 104,963 |
Securities sold under agreements to repurchase | 3,740 | 2,137 |
Accrued interest payable | 1,010 | 1,154 |
Estimated Fair Value | ||
Financial Instruments - Assets: | ||
Cash on hand and due from banks | 3,396 | 3,371 |
Interest-earning deposits in other institutions | 29,031 | 12,836 |
Certificate of deposit | 249 | 249 |
Investment securities | 69,884 | 66,169 |
Mortgage-backed securities | 91,478 | 81,794 |
Equity Securities | 2,955 | 2,725 |
Federal Home Loan Bank and other restricted stock | 7,486 | 7,900 |
Loans receivable | 721,197 | 717,491 |
Bank-owned life insurance | 23,374 | 22,572 |
Accrued interest receivable | 2,794 | 2,823 |
Financial Instruments - Liabilities: | ||
Demand and savings accounts | 489,292 | 471,177 |
Certificate deposit accounts | 247,456 | 245,740 |
Federal Home Loan Bank short-term borrowings | 0 | 4,524 |
Federal Home Loan Bank advances | 100,032 | 104,345 |
Securities sold under agreements to repurchase | 3,740 | 2,137 |
Accrued interest payable | 1,010 | 1,154 |
Level 1 | ||
Financial Instruments - Assets: | ||
Cash on hand and due from banks | 3,396 | 3,371 |
Interest-earning deposits in other institutions | 29,031 | 12,836 |
Certificate of deposit | 249 | 249 |
Investment securities | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Equity Securities | 2,955 | 2,725 |
Federal Home Loan Bank and other restricted stock | 7,486 | 7,900 |
Loans receivable | 0 | 0 |
Bank-owned life insurance | 23,374 | 22,572 |
Accrued interest receivable | 2,794 | 2,823 |
Financial Instruments - Liabilities: | ||
Demand and savings accounts | 489,292 | 471,177 |
Certificate deposit accounts | 0 | 0 |
Federal Home Loan Bank short-term borrowings | 0 | 4,524 |
Federal Home Loan Bank advances | 0 | 0 |
Securities sold under agreements to repurchase | 3,740 | 2,137 |
Accrued interest payable | 1,010 | 1,154 |
Level 2 | ||
Financial Instruments - Assets: | ||
Cash on hand and due from banks | 0 | 0 |
Interest-earning deposits in other institutions | 0 | 0 |
Certificate of deposit | 0 | 0 |
Investment securities | 69,884 | 66,169 |
Mortgage-backed securities | 91,478 | 81,794 |
Equity Securities | 0 | |
Federal Home Loan Bank and other restricted stock | 0 | 0 |
Loans receivable | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial Instruments - Liabilities: | ||
Demand and savings accounts | 0 | 0 |
Certificate deposit accounts | 0 | 0 |
Federal Home Loan Bank short-term borrowings | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level 3 | ||
Financial Instruments - Assets: | ||
Cash on hand and due from banks | 0 | 0 |
Interest-earning deposits in other institutions | 0 | 0 |
Certificate of deposit | 0 | 0 |
Investment securities | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Equity Securities | 0 | |
Federal Home Loan Bank and other restricted stock | 0 | 0 |
Loans receivable | 721,197 | 717,491 |
Bank-owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial Instruments - Liabilities: | ||
Demand and savings accounts | 0 | 0 |
Certificate deposit accounts | 247,456 | 245,740 |
Federal Home Loan Bank short-term borrowings | 0 | 0 |
Federal Home Loan Bank advances | 100,032 | 104,345 |
Securities sold under agreements to repurchase | 0 | 0 |
Accrued interest payable | $ 0 | $ 0 |
Parent Only Financial Informa_3
Parent Only Financial Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | |||
Interest-earning deposits with other institutions | $ 29,031 | $ 12,836 | |
Cash and Cash Equivalents | 32,427 | 16,207 | |
Equity securities | 2,955 | 2,725 | |
Accrued interest receivable and other assets | 5,145 | 8,574 | |
Total Assets | 984,387 | 971,796 | |
Liabilities and Stockholders' Equity | |||
Accrued interest payable and other liabilities | 5,248 | 4,363 | |
Total Stockholders' Equity | 141,848 | 137,890 | $ 133,972 |
Total Liabilities and Stockholders' Equity | 984,387 | 971,796 | |
Reportable Legal Entities [Member] | Standard AVB Financial Corp. | |||
Assets | |||
Cash | 2,222 | 1,421 | |
Interest-earning deposits with other institutions | 82 | 47 | |
Cash and Cash Equivalents | 2,304 | 1,468 | $ 1,453 |
Equity securities | 1,160 | 1,022 | |
Accrued interest receivable and other assets | 51 | 1,047 | |
Investment in subsidiary | 138,606 | 134,451 | |
Total Assets | 142,121 | 137,988 | |
Liabilities and Stockholders' Equity | |||
Accrued interest payable and other liabilities | 273 | 98 | |
Total Stockholders' Equity | 141,848 | 137,890 | |
Total Liabilities and Stockholders' Equity | $ 142,121 | $ 137,988 |
Parent Only Financial Informa_4
Parent Only Financial Information - Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interest and Dividend Income, Operating [Abstract] | ||
Net equity securities fair value adjustment gains (losses) | $ 230 | $ (484) |
Other income | 272 | 236 |
Total Income | 5,052 | 4,347 |
Operating expenses | 4,342 | 4,727 |
Total Expense | 21,625 | 22,067 |
Income before taxes | 11,144 | 11,049 |
Income Tax Expense (Benefit) | 2,338 | 2,248 |
Comprehensive Income | 11,292 | 7,345 |
Reportable Legal Entities [Member] | Standard AVB Financial Corp. | ||
Interest and Dividend Income, Operating [Abstract] | ||
Dividends from subsidiary | 7,126 | 2,000 |
Dividend Income | 38 | 62 |
Gain (loss) on sale of investments | 0 | 394 |
Net equity securities fair value adjustment gains (losses) | 138 | (468) |
Total Income | 7,302 | 1,988 |
Operating expenses | 200 | 259 |
Total Expense | 200 | 259 |
Income before taxes | 7,102 | 1,729 |
Income Tax Expense (Benefit) | (35) | (70) |
Income before equity in undistributed net income of subsidiaries | 7,137 | 1,799 |
Equity in undistributed income of Standard Bank | 1,669 | 7,002 |
Net income | 8,806 | 8,801 |
Comprehensive Income | $ 8,803 | $ 8,872 |
Parent Only Financial Informa_5
Parent Only Financial Information - Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows From Operating Activities | ||
Net Income | $ 8,806 | $ 8,801 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net equity securities fair value adjustment (gains) losses | 230 | (484) |
ESOP expense | 410 | 440 |
Investing Activities: | ||
Purchases of investment securities | (13,138) | (11,699) |
Financing activities: | ||
Proceeds from exercise of stock options | 257 | 648 |
Stock repurchases | 4,012 | 428 |
Dividends paid | 4,070 | 4,088 |
Cash and Cash Equivalents - Beginning | 16,207 | |
Cash and Cash Equivalents - Ending | 32,427 | 16,207 |
Reportable Legal Entities [Member] | Standard AVB Financial Corp. | ||
Cash Flows From Operating Activities | ||
Net Income | 8,806 | 8,801 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net gain on sale of equity securities | (394) | |
Net equity securities fair value adjustment (gains) losses | (138) | 468 |
Stock compensation expense | 81 | 1 |
ESOP expense | 410 | 440 |
Net change in other assets and liabilities | 1,171 | 215 |
Equity in undistributed income of subsidiaries | (1,669) | (7,002) |
Net cash provided by operating activities | 8,661 | 2,529 |
Investing Activities: | ||
Proceeds from sale of equity securities | 1,900 | |
Purchases of investment securities | (546) | |
Net cash (used for) provided by investing activities | 1,354 | |
Financing activities: | ||
Proceeds from exercise of stock options | 257 | 648 |
Stock repurchases | (4,012) | (428) |
Dividends paid | (4,070) | (4,088) |
Net cash used for financing activities | (7,825) | (3,868) |
Net change in cash and cash equivalents | 836 | 15 |
Cash and Cash Equivalents - Beginning | 1,468 | 1,453 |
Cash and Cash Equivalents - Ending | $ 2,304 | $ 1,468 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in accumulated other comprehensive income by component | ||
Balance at the beginning of the period | $ (1,344) | |
Total other comprehensive (loss) income | 2,486 | $ (1,456) |
Balance at the end of the period | 1,142 | (1,344) |
Amount Reclassified from Accumulated Other Comprehensive Income | ||
Changes in accumulated other comprehensive income by component | ||
Balance at the beginning of the period | (1,344) | 528 |
Other comprehensive loss before reclassification | 2,440 | (1,525) |
Amount reclassified from accumulated other comprehensive income | 46 | 69 |
Total other comprehensive (loss) income | 2,486 | (1,456) |
Change in accounting principle for adoption of ASU 2016-01 | (416) | |
Balance at the end of the period | 1,142 | (1,344) |
Amount Reclassified from Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Available for Sale Securities | ||
Changes in accumulated other comprehensive income by component | ||
Balance at the beginning of the period | (1,103) | 840 |
Other comprehensive loss before reclassification | 2,488 | (1,540) |
Amount reclassified from accumulated other comprehensive income | 1 | 13 |
Total other comprehensive (loss) income | 2,489 | (1,527) |
Change in accounting principle for adoption of ASU 2016-01 | (416) | |
Balance at the end of the period | 1,386 | (1,103) |
Amount Reclassified from Accumulated Other Comprehensive Income | Amortization of defined benefit items | ||
Changes in accumulated other comprehensive income by component | ||
Balance at the beginning of the period | (241) | (312) |
Other comprehensive loss before reclassification | (48) | 15 |
Amount reclassified from accumulated other comprehensive income | 45 | 56 |
Total other comprehensive (loss) income | (3) | 71 |
Balance at the end of the period | $ (244) | $ (241) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Significant amounts reclassified (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net losses on sales of securities | $ (1) | $ (17) |
Other operating expenses | 4,342 | 4,727 |
Income tax expense | 2,338 | 2,248 |
Net income | 8,806 | 8,801 |
Amount Reclassified from Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net of tax | 46 | 69 |
Net income | 46 | 69 |
Amount Reclassified from Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Available for Sale Securities | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net losses on sales of securities | 1 | 17 |
Income tax expense | (4) | |
Net of tax | 1 | 13 |
Amount Reclassified from Accumulated Other Comprehensive Income | Amortization of defined benefit items | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income tax expense | (12) | (15) |
Net of tax | 45 | 56 |
Amount Reclassified from Accumulated Other Comprehensive Income | Amortization of defined benefit items: Actuarial loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other operating expenses | 9 | 10 |
Amount Reclassified from Accumulated Other Comprehensive Income | Amortization of defined benefit items: Distribution settlement | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other operating expenses | $ 48 | $ 61 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Noninterest Income | ||
Noninterest income (in-scope of Topic 606) | $ 3,672 | $ 3,544 |
Noninterest income (out-of-scope of Topic 606) | 1,380 | 803 |
Total noninterest income | 5,052 | 4,347 |
Accounting Standards Update 2014-09 (Topic 606) | Service charges | ||
Noninterest Income | ||
Noninterest income (in-scope of Topic 606) | 2,977 | 2,900 |
Accounting Standards Update 2014-09 (Topic 606) | Investment management fees | ||
Noninterest Income | ||
Noninterest income (in-scope of Topic 606) | $ 695 | $ 644 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 1,881 | $ 2,508 |
Core deposit intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
2020 | 470 | |
2021 | 353 | |
2022 | 326 | |
2023 | 326 | |
2024 | 325 | |
2025 | 81 | |
Total | $ 1,881 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Other Intangibles | ||
Goodwill | $ 25,836 | $ 25,836 |
Core deposit intangible | 1,881 | 2,508 |
Accumulated amortization of core deposit intangible | $ 2,200 | $ 1,600 |