Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Standard AVB Financial Corp. | ||
Entity Central Index Key | 0001492915 | ||
Trading Symbol | stnd | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 4,819,919 | ||
Entity Public Float | $ 145.1 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash on hand and due from banks | $ 3,371 | $ 3,523 |
Interest-earning deposits in other institutions | 12,836 | 12,742 |
Cash and Cash Equivalents | 16,207 | 16,265 |
Investment securities available for sale, at fair value | 66,169 | 65,559 |
Equity securities, at fair value | 2,725 | |
Mortgage-backed securities available for sale, at fair value | 81,794 | 67,630 |
Certificate of deposit | 249 | 749 |
Federal Home Loan Bank stock, at cost | 7,827 | 9,468 |
Loans receivable, net of allowance for loan losses of $4,414 and $4,127 | 728,982 | 747,035 |
Foreclosed real estate | 486 | 419 |
Office properties and equipment, net | 7,794 | 8,191 |
Bank-owned life insurance | 22,572 | 22,040 |
Goodwill | 25,836 | 25,836 |
Core deposit intangible | 2,508 | 3,344 |
Accrued interest receivable and other assets | 8,647 | 6,064 |
TOTAL ASSETS | 971,796 | 972,600 |
Deposits: | ||
Demand, savings and club accounts | 471,177 | 482,902 |
Time Deposits | 246,697 | 211,944 |
Total Deposits | 717,874 | 694,846 |
Federal Home Loan Bank short-term borrowings | 4,524 | 27,021 |
Federal Home Loan Bank advances | 104,963 | 107,652 |
Securities sold under agreements to repurchase | 2,137 | 4,240 |
Advance deposits by borrowers for taxes and insurance | 45 | 782 |
Accrued interest payable and other liabilities | 4,363 | 4,087 |
TOTAL LIABILITIES | 833,906 | 838,628 |
Stockholders' Equity | ||
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized, none issued | ||
Common stock, $0.01 par value per share, 40,000,000 shares authorized, 4,812,991 and 4,790,687 shares outstanding, respectively | 48 | 48 |
Additional paid-in-capital | 75,571 | 75,063 |
Retained earnings | 65,301 | 60,172 |
Unearned Employee Stock Ownership Plan (ESOP) shares | (1,686) | (1,839) |
Accumulated other comprehensive (loss) income | (1,344) | 528 |
TOTAL STOCKHOLDERS' EQUITY | 137,890 | 133,972 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 971,796 | $ 972,600 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses in loans receivable (in dollars) | $ 4,414 | $ 4,127 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares outstanding | 4,812,991 | 4,790,687 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Interest and Dividend Income | ||
Loans, including fees | $ 32,033 | $ 26,948 |
Mortgage-backed securities | 1,999 | 1,257 |
Investments: | ||
Taxable | 420 | 518 |
Tax-exempt | 1,431 | 1,316 |
Federal Home Loan Bank stock | 590 | 384 |
Interest-earning deposits and federal funds sold | 322 | 133 |
Total Interest and Dividend Income | 36,795 | 30,556 |
Interest Expense | ||
Deposits | 4,961 | 3,471 |
Federal Home Loan Bank short-term borrowings | 227 | 470 |
Federal Home Loan Bank advances | 2,255 | 1,131 |
Securities sold under agreements to repurchase | 11 | 4 |
Total Interest Expense | 7,454 | 5,076 |
Net Interest Income | 29,341 | 25,480 |
Provision for Loan Losses | 572 | 517 |
Net Interest Income after Provision for Loan Losses | 28,769 | 24,963 |
Noninterest Income | ||
Earnings on bank-owned life insurance | 533 | 510 |
Net losses on sales of securities | (17) | (323) |
Net gains on sales of equities | 394 | |
Net equity securities fair value adjustment losses | (484) | |
Net loan sale gains | 71 | 197 |
Other income | 236 | 178 |
Total Noninterest Income | 4,347 | 3,543 |
Noninterest Expenses | ||
Compensation and employee benefits | 12,451 | 10,403 |
Data processing | 644 | 612 |
Premises and occupancy costs | 2,637 | 2,182 |
Automatic teller machine expense | 512 | 439 |
Federal deposit insurance | 293 | 279 |
Core deposit amortization | 836 | 772 |
Merger related expenses | 3,089 | |
Other operating expenses | 4,694 | 3,943 |
Total Noninterest Expenses | 22,067 | 21,719 |
Income before Income Tax Expense | 11,049 | 6,787 |
Income Tax Expense | ||
Federal | 1,713 | 2,106 |
State | 535 | 356 |
Total Income Tax Expense | 2,248 | 2,462 |
Net Income | $ 8,801 | $ 4,325 |
Earnings Per Share: | ||
Basic earnings per common share (in dollars per share) | $ 1.90 | $ 1.08 |
Diluted earnings per common share (in dollars per share) | 1.88 | 1.05 |
Cash dividends paid per common share (in dollars per share) | $ 0.88 | $ 0.77 |
Basic weighted average shares outstanding | 4,634,003 | 4,021,942 |
Diluted weighted average shares outstanding | 4,685,044 | 4,127,318 |
Service charges | ||
Noninterest Income | ||
Fees and commissions | $ 2,970 | $ 2,569 |
Investment management fees | ||
Noninterest Income | ||
Fees and commissions | $ 644 | $ 412 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 8,801 | $ 4,325 |
Other comprehensive (loss) income: | ||
Change in unrealized (loss) gain on securities available for sale | (1,949) | 788 |
Tax effect | 409 | (269) |
Reclassification adjustment for security losses realized in income | 17 | 323 |
Tax effect | (4) | (111) |
Change in pension obligation for defined benefit plan | 90 | 733 |
Tax effect | (19) | (249) |
Total other comprehensive (loss) income | (1,456) | 1,215 |
Total Comprehensive Income | $ 7,345 | $ 5,540 |
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, 2016 | $ 26 | $ 16,626 | $ 59,107 | $ (1,992) | $ (777) | $ 72,990 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 4,325 | 4,325 | ||||
Other comprehensive loss | 1,215 | 1,215 | ||||
Reclassification of certain income tax effects from accumulated other comprehensive income | (90) | 90 | ||||
Stock repurchases (5,454 shares and 13,482 shares for the year ended December 31, 2017 & 2018 respectively) | (161) | (161) | ||||
Cash dividends ($0.77 per share & 0.88 per share for the year ended December 31, 2017 & 2018 respectively)) | (3,312) | (3,312) | ||||
Stock options exercised (18,895 shares and 35,536 shares for the year ended December 31, 2017 & 2018 respectively)) | 311 | 311 | ||||
Excess tax benefits from stock based compensation | (142) | 142 | ||||
Compensation expense on stock awards | 529 | 529 | ||||
Compensation expense on ESOP | 250 | 153 | 403 | |||
Merger consideration (2,168,097 shares for the year ended December 31, 2017) | 22 | 57,650 | 57,672 | |||
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 (5,454 shares and 13,482 shares for the year ended December 31, 2017 & 2018 respectively) | (428) | (428) | ||||
Cash dividends ($0.77 per share & 0.88 per share for the year ended December 31, 2017 & 2018 respectively)) | (4,088) | (4,088) | ||||
Stock options exercised (18,895 shares and 35,536 shares for the year ended December 31, 2017 & 2018 respectively)) | 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 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Stockholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statement of Changes in Stockholders' Equity | ||
Stock repurchases, shares | 13,482 | 5,454 |
Cash dividends paid per common share (in dollars per share) | $ 0.88 | $ 0.77 |
Number of stock options exercised | 35,536 | 18,895 |
Merger consideration (in shares) | 2,168,097 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows From Operating Activities | ||
Net income | $ 8,801 | $ 4,325 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,352 | 929 |
Provision for loan losses | 572 | 517 |
Amortization of core deposit intangible | 836 | 772 |
Net loss on sale of securities available for sale | 17 | 323 |
Net gain on sale of equity securities | (394) | |
Origination of loans held for sale | (5,552) | (8,063) |
Proceeds from sale of loans held for sale | 5,623 | 8,260 |
Net equity securities fair value adjustment losses | 484 | |
Net loan sale gains | (71) | (197) |
Compensation expense on ESOP | 440 | 403 |
Compensation expense on stock awards | 1 | 529 |
Deferred income taxes | (288) | 646 |
Increase in accrued interest receivable | (166) | (357) |
Earnings on bank-owned life insurance | (533) | (510) |
Increase in accrued interest payable | 161 | 187 |
Other, net | 1,350 | 1,144 |
Net Cash Provided by Operating Activities | 12,633 | 8,908 |
Cash Flows Used In Investing Activities | ||
Net decrease (increase) in loans | 14,077 | (54,638) |
Purchases of investment securities | (11,699) | (10,117) |
Purchases of equity securities | (546) | |
Purchases of mortgage-backed securities | (27,985) | (36,768) |
Proceeds from maturities of certificates of deposits | 500 | |
Proceeds from maturities/principal repayments/calls of investment securities | 1,335 | 8,920 |
Proceeds from maturities/principal repayments/calls of mortgage-backed securities | 12,046 | 8,850 |
Proceeds from sales of investment securities | 4,830 | 27,123 |
Proceeds from sales of equity securities | 1,900 | |
Proceeds from sales of mortgage-backed securities | 25,853 | |
Purchase of Federal Home Loan Bank stock | (3,532) | (6,405) |
Redemption of Federal Home Loan Bank stock | 5,173 | 4,847 |
Proceeds from sales of foreclosed real estate | 450 | 181 |
Net purchases of office properties and equipment | (374) | (1,206) |
Cash and cash equivalents acquired | 9,611 | |
Net Cash Used in Investing Activities | (3,825) | (23,749) |
Cash Flows From Financing Activities | ||
Net decrease in demand, savings and club accounts | (11,725) | (5,250) |
Net increase in certificate accounts | 34,753 | 3,965 |
Net (decrease) increase in securities sold under agreements to repurchase | (2,103) | 1,898 |
Repayments of Federal Home Loan Bank short-term borrowings | (165,491) | (239,737) |
Proceeds from Federal Home Loan Bank short-term borrowing | 142,994 | 202,134 |
Repayments of Federal Home Loan Bank advances | (35,689) | (15,651) |
Proceeds from Federal Home Loan Bank advances | 33,000 | 75,635 |
Net (decrease) increase in advance deposits by borrowers for taxes and insurance | (737) | 754 |
Exercise of stock options | 648 | 311 |
Dividends paid | (4,088) | (3,312) |
Stock repurchases | (428) | (161) |
Net Cash Provided (Used) by Financing Activities | (8,866) | 20,586 |
Net Increase (Decrease) in Cash and Cash Equivalents | (58) | 5,745 |
Cash and Cash Equivalents-Beginning | 16,265 | 10,520 |
Cash and Cash Equivalents-Ending | 16,207 | 16,265 |
Supplementary Cash Flows Information | ||
Interest paid | 7,293 | 4,889 |
Income taxes paid | 1,594 | 1,411 |
Supplementary Schedule of Noncash Investing and Financing Activities | ||
Foreclosed real estate acquired in settlement of loans | 486 | 419 |
Loan participation payoffs not settled | $ 3,000 | |
Non-cash assets acquired | ||
Investment securities available for sale | 95,919 | |
Federal Home Loan Bank stock | 4,739 | |
Loans receivable, net of allowance for loan losses | 311,736 | |
Office properties and equipment, net | 4,434 | |
Accrued interest receivable | 1,144 | |
Bank owned life insurance | 6,486 | |
Core deposit intangible | 4,116 | |
Other assets | 2,742 | |
Goodwill | 17,216 | |
Total non-cash assets | 448,532 | |
Liabilities assumed | ||
Certificate accounts | (70,422) | |
Deposits other than certificate accounts | (263,522) | |
Federal Home Loan Bank short-term borrowings | (64,624) | |
Accrued interest payable | (615) | |
Other liabilities | (1,288) | |
Total Liabilities assumed | (400,471) | |
Net Non Cash Assets Acquired | 48,061 | |
Cash and cash equivalents acquired | $ 9,611 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
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. The year ended December 31, 2017 includes the acquisition of Allegheny Valley Bancorp, Inc. effective April 7, 2017. 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 2019, 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 and 3 discuss the types of securities in which the Company invests. Note 4 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 Federal Deposit Insurance Corporation 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 2018 or 2017. 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 2018 or 2017. Available-for-sale securities are other 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. Effective January 1, 2018, 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 in accordance with ASU 2016-01. Prior to January 1, 2018, available-for-sale equity securities were stated at fair value, with unrealized holding gains and losses reported as a separate component of stockholders’ equity, net of tax, until realized. 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 2018, 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, 2018 or December 31, 2017. 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 differences 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 Standard Bank PaSB. 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, 2018 or December 31, 2017. 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 as other 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, 2018 and December 31, 2017, 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 prior year 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 $2.5 million and $3.3 million, net of accumulated amortization of $1.6 million and $772,000 for the years ended December 31, 2018 and December 31, 2017, respectively. Additional information regarding the acquisition of Allegheny Valley is included in Note 18 to these Consolidated Financial Statements. 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 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. The Company had no uncertain tax positions at December 31, 2018 or December 31, 2017. 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, 2018 and December 31, 2017 totaled $289,000 and $127,000, 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 February 14, 2018, the FASB finalized ASU 2018-02 — Income Statement Reporting Comprehensive Income (Topic 220) The Bank elected to early adopt this accounting standard, which provided a benefit to the financial statements by more accurately aligning the impacts of the items carried in accumulated other comprehensive income with the associated tax effect. The adoption resulted in a one-time cumulative effect adjustment of $90,000 between retained earnings and accumulated other comprehensive income on the Consolidated Statement of Financial Condition for December 31, 2017. The adjustment had no impact on net income for the year ended December 31, 2017. 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 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, 2018 and December 31, 2017 (dollars in thousands except share and per share data): Years Ended December 31 2018 2017 Net income available to common stockholders $ 8,801 $ 4,325 Basic EPS: Weighted average shares outstanding 4,634,003 4,021,942 Basic EPS $ 1.90 $ 1.08 Diluted EPS: Weighted average shares outstanding 4,634,003 4,021,942 Diluted effect of common stock equivalents 51,041 105,376 Total diluted weighted average shares outstanding 4,685,044 4,127,318 Diluted EPS $ 1.88 $ 1.05 Options to purchase 266,695 and 302,231 shares of common stock were outstanding as of December 31, 2018 and December 31, 2017, respectively with an average exercise price of $17.12 and $17.25, respectively. There were no anti-dilutive options as of December 31, 2018 or December 31, 2017. As of December 31, 2018, there were 250 shares of restricted stock that were not fully vested and added to the computation of diluted earnings per common share. As of December 31, 2017, all restricted stock was fully vested, therefore, no additional shares were 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 2018 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. In January 2016, the FASB issued ASU 2016-01, Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Fair Value of Assets and Liabilities In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business In March 2017, the FASB issued ASU 2017-07, Compensation Retirement Benefits (Topic 715) In May 2017, the FASB issued ASU 2017-09, Compensation Stock Compensation (Topic 718) issuance. The amendments in this Update should be applied prospectively to an award modified on or after the adoption date. The adoption of the standard by the Company, on January 1, 2018, did not have a material impact on the Company’s Consolidated Financial Statements. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments Overall (Subtopic 825-10) Fair Value Measurement Derivatives and Hedging Embedded Derivatives Financial Instruments Overall; Financial Services Insurance ASU 2018-04, Investments Debt Securities (Topic 320) Regulated Operations (Topic 980) Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273 ASU 2018-05, Income Taxes (Topic 740) Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 118 Accounting Standards Pending Adoption In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) recognize lease payments over the lease term on a straight-line basis. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company adopted this guidance January 1, 2019. As a result, right-of-use assets and lease obligations will be booked on the Consolidated Statement of Financial Condition. The Company has four operating lease agreements for branch offices. We expect to recognize right-of-use assets and corresponding lease liabilities of approximately $1.1 million related to those operating leases on the Consolidated Statement of Financial Condition in the first quarter of 2019. In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses: Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments Credit Losses Leases In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment 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. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. ASU 2018-06, Codification Improvements to Topic 942, Financial Services-Depository and Lending, amends the guidance in Subtopic 942-740, Financial Services-Depository and Lending-Income Taxes, that is related to Circular 202 because that guidance has been rescinded by the Office of the Comptroller of the Currency (OCC) and no longer is relevant. This Update is not expected to have a significant impact on the Company’s financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation — Stock Compensation (Topic 718), which simplified the accounting for nonemployee share-based payment transactions. The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments in this Update improve the following areas of nonemployee share-based payment accounting; (a) the overall measurement objective, (b) the measurement date, (c) awards with performance conditions, (d) classification reassessment of certain equity-classified awards, (e) calculated value (nonpublic entities only), and (f) intrinsic value (nonpublic entities only). The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. This Update is not expected to have a significant impact on the Company’s financial statements. In July 2018, the FASB issued ASU 2018-09, Codification Improvements, represents changes to clarify, correct errors in, or make minor improvements to the Codification. The amendments make the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. The transition and effective date guidance is based on the facts and circumstances of each amendment. Some of the amendments do not require transition guidance and will be effective upon issuance of this ASU. However, many of the amendments in this ASU do have transition guidance with effective dates for annual periods beginning after December 15, 2018, for public business entities. This Update is not expected to have a significant impact on the Company’s financial statements. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, represents changes to clarify, correct errors in, or make minor improvements to the Codification. The amendments in this ASU affect the amendments in ASU 2016-02, which are not yet effective, but for which early adoption upon issuance is permitted. For entities that early adopted Topic 842, the amendments are effective upon issuance of this ASU, and the transition requirements are the same as those in Topic 842. For entities that have not adopted Topic 842, the effective date and transition requirements will be the same as the effective date and transition requirements in Topic 842. This Update is not expected to have a significant impact on the Company’s financial statements. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. This Update provides another transition method which allows entities to initially apply ASC 842 at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Entities that elect this approach should report comparative periods in accordance with ASC 840, Leases. In addition, this Update provides a practical expedient under which lessors may elect, by class of underlying assets, to not separate nonlease components from the associated lease component, similar to the expedient provided for lessees. However, the lessor practical expedient is limited to circumstances in which the nonlease component or components otherwise would be accounted for under the new revenue guidance and both (a) the timing and pattern of transfer are the same for th |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and December 31, 2017 are as follows (dollars in thousands): Amortized Gross Gross Fair 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 December 31, 2017: U.S. government and agency obligations due: Beyond 1 year but within 5 years $ 7,400 $ 4 $ (8 ) $ 7,396 Beyond 5 year but within 10 years 934 10 — 944 Corporate bonds due: Beyond 1 year but within 5 years 2,276 14 (18 ) 2,272 Municipal obligations due: Beyond 1 year but within 5 years 8,702 441 — 9,143 Beyond 5 years but within 10 years 25,803 339 (21 ) 26,121 Beyond 10 years 15,483 129 (99 ) 15,513 Equity securities 3,647 557 (34 ) 4,170 $ 64,245 $ 1,494 $ (180 ) $ 65,559 For the 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. For the year ended December 31, 2017, gains on sales of investment securities were $72,000 and losses were $308,000 with total proceeds from such sales of $27.1 million. Investment securities with a carrying value of $11.6 million and $16.4 million were pledged to secure repurchase agreements and public funds accounts at December 31, 2018 and December 31, 2017, respectively. The following table shows the fair value and gross unrealized losses on investment securities and the length of time that the securities have been in a continuous unrealized loss position at December 31, 2018 and December 31, 2017 (dollars in thousands): Less than 12 Months 12 Months or More Total Fair Gross Fair Value Gross Fair Gross 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 ) December 31, 2017: U.S. government and agency obligations $ 5,924 $ (8 ) $ — $ — $ 5,924 $ (8 ) Corporate bonds 751 (3 ) 1,001 (15 ) 1,752 (18 ) Municipal obligations 4,911 (19 ) 4,491 (101 ) 9,402 (120 ) Equity securities 857 (34 ) — — 857 (34 ) Total $ 12,443 $ (64 ) $ 5,492 $ (116 ) $ 17,935 $ (180 ) At December 31, 2018, the Company held 48 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. The following table presents the net gains and losses on equity investments recognized in earnings during the year ended December 31, 2018, and the portion of unrealized gains and losses for the period that relates to equity investments held at December 31, 2018 (dollars in thousands): Year Ended Net equity securities fair value adjustment losses $ (484 ) Net gains realized on the sale of equity securities during the year 394 Losses recognized on equity securities during the period $ (90 ) 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, 2018 | |
Mortgage-backed securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Mortgage-Backed Securities | Note 3 — Mortgage-Backed Securities Mortgage-backed securities available for sale at December 31, 2018 and December 31, 2017 are as follows (dollars in thousands): Amortized Gross Gross Fair 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 December 31, 2017: Government pass-throughs: Ginnie Mae $ 17,416 $ 6 $ (131 ) $ 17,291 Fannie Mae 16,078 75 (8 ) 16,145 Freddie Mac 12,510 41 (14 ) 12,537 Private pass-throughs 14,603 8 (113 ) 14,498 Collateralized mortgage obligations 7,277 — (118 ) 7,159 $ 67,884 $ 130 $ (384 ) $ 67,630 For the year ended December 31, 2018 there were no sales of mortgage-backed securities. For the year ended December 31, 2017, gains on sales of mortgage-backed securities were $88,000 and losses were $175,000 with total proceeds from such sales of $25.9 million. Mortgage-backed securities with a carrying value of $10.4 million and $25.5 million were pledged to secure repurchase agreements and public funds accounts at December 31, 2018 and December 31, 2017, respectively. The following table shows the fair value and gross unrealized losses on mortgage-backed securities and the length of time that the securities have been in a continuous unrealized loss position at December 31, 2018 and December 31, 2017 (dollars in thousands): Less than 12 Months 12 Months or More Total Fair Gross Fair Gross Fair Gross 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 ) Less than 12 Months 12 Months or More Total Fair Gross Fair Gross Fair Gross December 31, 2017: Government pass-throughs: Ginnie Mae $ 12,231 $ (87 ) $ 2,591 $ (44 ) $ 14,822 $ (131 ) Fannie Mae 3,227 (8 ) — — 3,227 (8 ) Freddie Mac 5,949 (14 ) — — 5,949 (14 ) Private pass-throughs 12,559 (113 ) — — 12,559 (113 ) Collateralized mortgage obligations 5,968 (79 ) 1,191 (39 ) 7,159 (118 ) Total $ 39,934 $ (301 ) $ 3,782 $ (83 ) $ 43,716 $ (384 ) At December 31, 2018, the Company held 70 mortgage-backed 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. |
Loans Receivable
Loans Receivable | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans Receivable | Note 4 — 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, 2018 and December 31, 2017 (dollars in thousands): Real Estate Loans One-to-four- Commercial Home Commercial Other Total 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 December 31, 2017: Collectively evaluated for impairment $ 261,715 $ 300,702 $ 130,915 $ 56,122 $ 1,413 $ 750,867 Individually evaluated for impairment — 295 — — — 295 Total loans before allowance for loan losses $ 261,715 $ 300,997 $ 130,915 $ 56,122 $ 1,413 $ 751,162 Total loans were net of deferred loan fees of $226,000 and $276,000 at December 31, 2018 and December 31, 2017, 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. As a result of the acquisition of Allegheny Valley on April 7, 2017, the Company added $2.5 million of loans that were accounted for in accordance with ASC 310-30. Based on a review of the loans acquired by senior lending management, which included an analysis of credit deterioration of the loans since origination, the Company recorded a specific credit fair value adjustment of $2.5 million. For loans that were acquired with specific evidence of deterioration in credit quality, loan losses will be accounted for through a reduction of the specific reserve and will not impact the allowance for loan losses. For loans acquired without a deterioration of credit quality, losses incurred will result in adjustments to the allowance for loan losses through the allowance for loan loss adequacy calculation to the extent those losses represent additional deterioration since the date of acquisition. As of December 31, 2018 and December 31, 2017, the outstanding balance of ASC 310-30 loans acquired from Allegheny Valley was $0 and the carrying value was $0 as all loans with a specific mark were charged off against that mark during the year ended December 31, 2017, with no resulting impact on net income. The following table presents the components of the purchase accounting adjustments related to the purchased credit-impaired loans acquired: Contractually required principal and interest $ 2,467 Non-accretable discount (2,467 ) Expected cash flows — Accretable discount — Estimated fair value $ — There was no amortizable yield for purchased credit-impaired loans for the years ended December 31, 2018 or December 31, 2017. The segments of the Bank’s loan portfolio are disaggregated to a level that allows management to monitor risk and performance. The three segments are: real estate, commercial business and other. The real estate loan segment is further disaggregated into three classes. One-to-four family residential mortgages (including residential construction loans) include loans to individuals secured by residential properties having maturities up to 30 years. Commercial real estate consists of loans to commercial borrowers secured by commercial or residential real estate. The repayment of commercial real estate loans is dependent upon either the ongoing cash flow of the borrowing entity or the resale of or lease of the subject property. Home equity loans and lines of credit include loans having maturities up to 20 years. The commercial business loan segment consists of loans to finance the activities of commercial business customers. The other loan segment consists primarily of consumer loans and overdraft lines of credit. The portfolio segments utilized in the calculation of the allowance for loan losses are disaggregated at the same level that management uses to monitor risk in the portfolio. Therefore the portfolio segments and classes of loans are the same. There are various risks associated with lending to each portfolio segment. One-to-four family residential mortgage loans are typically longer-term loans which generally entail greater interest rate risk than consumer and commercial loans. Under certain economic conditions, housing values may decline, which may increase the risk that the collateral values are insufficient. Commercial real estate loans generally present a higher level of risk than loans secured by residences. This greater risk is due to several factors including but not limited to concentration of principal in a limited number of loans and borrowers, the effect of general economic conditions on income producing properties, and the increased difficulty in monitoring these types of loans. Furthermore, the repayment of commercial real estate loans is typically dependent upon successful operation of the related real estate project. If the cash flow from the project is reduced by such occurrences as leases not being obtained, renewed, or not entirely fulfilled, the borrower’s ability to repay the loan may be impaired. Commercial business loans are primarily secured by business assets, inventories, and accounts receivable which present collateral risk. The other loan segment generally has higher interest rates and shorter terms than one-to-four family residential mortgage loans, however, they can have additional credit risk due to the type of collateral securing the loan. Management evaluates individual loans in all of the commercial segments for possible impairment if the relationship is greater than $200,000 and the loan is in nonaccrual status, risk-rated Substandard or Doubtful, greater than 90 days past due or represents a troubled debt restructuring. Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. The definition of “impaired loans” is not the same as the definition of “nonaccrual loans,” although the two categories overlap. The Company may choose to place a loan on nonaccrual status due to payment delinquency or uncertain collectability, while not classifying the loan as impaired if the loan is not a commercial business or commercial real estate loan. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company does not separately evaluate individual consumer and residential mortgage loans for impairment, unless such loan is part of a larger relationship that is impaired, has a classified risk rating, or is a trouble debt restructuring (“TDR”). Once the decision has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is calculated by comparing the recorded investment in the loan to the fair value of the loan using one of three methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs. The appropriate method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis. The Corporation’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. Consistent with accounting and regulatory guidance, the Company recognizes a TDR when the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that would not normally be considered. Regardless of the form of concession granted, the Company’s objective in offering a TDR is to increase the probability of repayment of the borrower’s loan. To be considered a TDR, the borrower must be experiencing financial difficulties and the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that would not otherwise be considered. The Company did not modify any loans as TDRs during the years ended December 31, 2018 or December 31, 2017 nor did it have any TDRs where a concession had previously been made that then defaulted during the years ended December 31, 2018 or December 31, 2017. The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary at December 31, 2018 and December 31, 2017 (dollars in thousands): Impaired Loans With Impaired Loans Total Impaired Loans Recorded Related Recorded Recorded Unpaid Principal December 31, 2018: Commercial real estate $ — $ — $ — $ — $ — Total impaired loans $ — $ — $ — $ — $ — December 31, 2017: Commercial real estate $ — $ — $ 295 $ 295 $ 295 Total impaired loans $ — $ — $ 295 $ 295 $ 295 The following table presents the average recorded investment in impaired loans and related interest income recognized for the years ended December 31, 2018 and December 31, 2017 (dollars in thousands): Years Ended December 31 2018 2017 Average investment in impaired loans: Commercial real estate $ 236 $ 861 $ 236 $ 861 Interest income recognized on impaired loans $ — $ — Management uses a nine-point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first five categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently performing but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the collection of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are considered Substandard. Any loan that has a specific allocation of the allowance for loan losses and is in the process of liquidation of the collateral is placed in the Doubtful category. Any portion of a loan that has been charged off is placed in the Loss category. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as delinquency, bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. The Company’s Commercial Loan Officers are responsible for the timely and accurate risk rating of the loans in their portfolio at origination. Commercial relationships are periodically reviewed internally for credit deterioration or improvement in order to confirm that the relationship is appropriately risk rated. The Audit Committee of the Company also engages an external consultant to conduct loan reviews. The scope of the annual external engagement, which is performed through semi-annual loan reviews, includes reviewing approximately the top 50 to 60 loan relationships, all watchlist loans greater than $100,000, all commercial Reg O loans, and a random sampling of new loan originations between $200,000 and $500,000 during the year. Status reports are provided to management for loans classified as Substandard on a quarterly basis, which results in a proactive approach to resolution. Loans in the Special Mention and Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance. The following table presents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the Company’s internal risk rating system as of December 31, 2018 and December 31, 2017 (dollars in thousands): Pass Special Substandard Doubtful Total December 31, 2018: Real estate loans: One-to-four-family residential and construction $ 252,186 $ — $ 1,727 $ — $ 253,913 Commercial real estate 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 December 31, 2017: Real estate loans: One-to-four-family residential and construction $ 259,463 $ 211 $ 2,041 $ — $ 261,715 Commercial real estate 295,164 5,077 756 — 300,997 Home equity loans and lines of credit 130,763 — 152 — 130,915 Commercial business loans 55,878 239 5 — 56,122 Other loans 1,411 — 2 — 1,413 Total $ 742,679 $ 5,527 $ 2,956 $ — $ 751,162 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due based on the loans’ contractual due dates. Management considers nonperforming loans to be those loans that are past due 90 days or more and are still accruing as well as 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, 2018 and December 31, 2017 (dollars in thousands): Current 30 – 59 Days 60 – 89 Days Non-Accrual 90 Days Past Total December 31, 2018: Real estate loans: One-to-four-family residential and $ 250,691 $ 1,341 $ 154 $ 1,727 $ — $ 253,913 Commercial real estate 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 Current 30 – 59 Days 60 – 89 Days Non-Accrual 90 Days Past Total December 31, 2017: Real estate loans: One-to-four-family residential and $ 258,202 $ 1,342 $ 272 $ 1,899 $ — $ 261,715 Commercial real estate 299,888 338 15 756 — 300,997 Home equity loans and lines of credit 130,383 122 166 244 — 130,915 Commercial business loans 56,034 83 — 5 — 56,122 Other loans 1,376 14 1 3 19 1,413 Total $ 745,883 $ 1,899 $ 454 $ 2,907 $ 19 $ 751,162 An allowance for loan losses (“ALL”) is maintained to absorb losses from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans. The Bank’s methodology for determining the ALL is based on the requirements of ASC Section 310-10-35 for loans individually evaluated for impairment (discussed above) and ASC Subtopic 450-20 for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. The total of the two components represents the Bank’s ALL. Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by other qualitative factors. Management tracks the historical net charge-off activity for the loan segments which may be adjusted for qualitative factors. Pass rated credits are segregated from criticized credits for the application of qualitative factors. Loans in the criticized pools, which possess certain qualities or characteristics that may lead to collection and loss issues, are closely monitored by management and subject to additional qualitative factors. Management has identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors are evaluated using information obtained from internal, regulatory, and governmental sources such as national and local economic trends and conditions; levels of and trends in delinquency rates and non-accrual loans; trends in volumes and terms of loans; effects of changes in lending policies; experience, depth and ability of management; and concentrations of credit from a loan type, industry and/or geographic standpoint. Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. Management utilizes an internally developed spreadsheet to track and apply the various components of the allowance. During the year ended December 31, 2018, there was an increase in the provision for the Commercial Real Estate, Commercial Business and Other loan classes. The increase for the Commercial Real Estate loan class was primarily due to growth in the loan balances included in the allowance calculation for that loan class. The increase for the Commercial Business and Other loan classes was primarily due to the charge-offs incurred during the year. The provision for One-to-four family Residential and Construction and Home Equity Loans and Lines of credit loan classes decreased primarily as a result of fluctuations in the qualitative factors that overall reduced the provision required during the year. The following tables summarize the activity in the primary segments of the ALL for the years ended December 31, 2018 and December 31, 2017 as well as the allowance required for loans individually and collectively evaluated for impairment as of December 31, 2018 and December 31, 2017 (dollars in thousands): Real Estate Loans One-to-four- Commercial Home Commercial Other Total 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 Balance at December 31, 2016 $ 1,280 $ 1,787 $ 547 $ 211 $ 12 $ 3,837 Charge-offs (185 ) — (51 ) (1 ) (29 ) (266 ) Recoveries 28 1 — 3 7 39 Provision 261 215 (96 ) 120 17 517 Balance December 31, 2017 $ 1,384 $ 2,003 $ 400 $ 333 $ 7 $ 4,127 Real Estate Loans One-to-four- Commercial Home Commercial Other Total 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 Evaluated for Impairment: Individually $ — $ — $ — $ — $ — $ — Collectively 1,384 2,003 400 333 7 4,127 Balance at December 31, 2017 $ 1,384 $ 2,003 $ 400 $ 333 $ 7 $ 4,127 The ALL is based on estimates and actual losses will vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the loan portfolio at any given date. In addition, federal regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses and may require the Bank to make changes to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to Management. Based on Management’s comprehensive analysis of the loan portfolio, they believe the current level of the allowance for loan losses is adequate. As of December 31, 2018, included within the foreclosed assets totaling $486,000 were two residential properties and one commercial real estate property acquired upon foreclosure. As of December 31, 2017, foreclosed assets totaled $419,000 and included three residential properties acquired upon foreclosure. At December 31, 2018, loans in the process of foreclosure totaled $507,000. Loans serviced for others were $66.3 million, and $68.7 million at December 31, 2018 and December 31, 2017, respectively. Net mortgage servicing rights were $454,000 and $487,000 at December 31, 2018 and December 31, 2017, respectively. |
Office Properties and Equipment
Office Properties and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Office Properties and Equipment | Note 5 — Office Properties and Equipment Office properties and equipment at December 31, 2018 and December 31, 2017 are summarized by major classifications as follows (dollars in thousands): December 31 2018 2017 Land and land improvements $ 3,152 $ 3,152 Buildings and building improvements 10,475 10,433 Leasehold improvements 871 862 Furnitures, fixtures, and equipment 4,678 4,607 $ 19,176 $ 19,054 Less accumulated depreciation (11,447 ) (10,877 ) Plus projects in progress 65 14 Premises and equipment, net $ 7,794 $ 8,191 Depreciation expense was $771,000 and $658,000 for the years ended December 31, 2018 and December 31, 2017, respectively. The Company rents certain branch office buildings under long-term lease agreements expiring through 2019 and thereafter. These leases contain renewal options and generally provide that the Company will pay for insurance, taxes, and maintenance. Future minimum lease payments under existing rental agreements are as follows (dollars in thousands): Years Ending December 31: 2019 $ 407 2020 278 2021 30 Total $ 715 Rent expense was $407,000 and $313,000 for the years ended December 31, 2018 and December 31, 2017, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Deposits | Note 6 — Deposits Deposit balances at December 31, 2018 and December 31, 2017 are summarized as follows (dollars in thousands): December 31 2018 2017 Noninterest-bearing demand $ 135,708 $ 135,786 Interest-bearing demand 100,163 96,987 Savings 147,695 150,762 Money market 87,611 99,367 Time deposits 246,697 211,944 Total deposits $ 717,874 $ 694,846 At December 31, 2018, the scheduled maturities of time deposit are as follows (dollars in thousands): One year or less $ 86,458 Over one through two years 76,313 Over two through three years 29,167 Over three through four years 14,011 Over four through five years 31,283 Over five years 9,465 Total $ 246,697 At December 31, 2018, the scheduled maturities of time deposit in denominations of $100,000 or more are as follows (dollars in thousands): Three months or less $ 14,665 Over three to six months 10,976 Over six to twelve months 13,001 Over twelve months 69,425 Total $ 108,067 Time deposits include certificates of deposit in denominations of $250,000 or more. Such deposits aggregated $35.2 million and $30.9 million at December 31, 2018 and December 31, 2017, respectively. |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 12 Months Ended |
Dec. 31, 2018 | |
Advances from Federal Home Loan Banks [Abstract] | |
Federal Home Loan Bank Advances | Note 7 — Federal Home Loan Bank Advances 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, 2018, the Bank had approximately $416.6 million in maximum borrowing capacity available as collateral for existing and future borrowings. Included in the $416.6 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 approximately $4.5 million and $27.0 million at December 31, 2018 and December 31, 2017, respectively. The interest rate in effect on that borrowing was 2.64% at December 31, 2018 and 1.54% at December 31, 2017. The outstanding balances and related information for short-term borrowings at or for the years ended December 31, 2018 and December 31, 2017 are summarized as follows (dollars in thousands): December 31 2018 2017 Balance $ 4,524 $ 27,021 Average balance outstanding during the period 12,696 38,565 Maximum amount outstanding at any month-end 51,500 72,926 Weighted average interest rate at period end 2.64 % 1.54 % Average interest rate during the period 1.79 1.22 Advances, which are typically more long-term in nature, are also available from the FHLB. At December 31, 2018 and December 31, 2017, the Bank had the following advances (dollars in thousands): December 31 Stated Maturity Interest Rate 2018 2017 June 11, 2018 0.92 $ — $ 750 June 22, 2018 1.26 — 1,805 November 13, 2018 1.65 — 3,000 January 22, 2019 1.25 125 1,608 June 24, 2019 1.63 1,805 1,805 September 11, 2019 1.59 6,438 14,904 November 12, 2019 1.91 3,151 3,151 January 8, 2020 1.70 5,794 5,794 March 20, 2020 2.51 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 9,726 15,157 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 7,639 — August 18, 2021 1.80 2,289 3,119 September 8, 2021 1.77 11,469 15,503 November 15, 2021 3.23 3,000 — September 8, 2022 1.86 7,587 9,522 December 9, 2022 2.26 3,212 3,212 December 29, 2022 2.45 8,097 10,000 May 30, 2023 2.93 10,000 — $ 104,963 $ 107,652 |
Securities Sold Under Agreement
Securities Sold Under Agreement to Repurchase | 12 Months Ended |
Dec. 31, 2018 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | |
Securities Sold Under Agreement to Repurchase | Note 8 — 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, 2018 and December 31, 2017 are presented in the following tables (dollars in thousands): Remaining Contractual Maturity of the Agreements Overnight and Up to 30 30 – 90 Greater than Total 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 $ 2,137 Amounts related to agreements not included in offsetting disclosures above $ 8,718 December 31, 2017: U.S. government obligations $ 1,643 $ — $ — $ — $ 1,643 Municipal obligations 5,727 — — — 5,727 Total collateral pledged $ 7,370 $ — $ — $ — $ 7,370 Gross amount of recognized liabilities for securities $ 4,240 Amounts related to agreements not included in offsetting disclosures above $ 3,130 The outstanding balances and related information for repurchase agreements at or for the years ended December 31, 2018 and December 31, 2017 are summarized as follows (dollars in thousands): December 31 2018 2017 Balance $ 2,137 $ 4,240 Average balance outstanding during the period 4,782 3,373 Maximum amount outstanding at any month-end 8,251 6,274 Weighted average interest rate at period end 0.19 % 0.12 % Average interest rate during the period 0.23 0.12 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 — Income Taxes Total income tax expense for the years ended December 31, 2018 and December 31, 2017 is as follows (dollars in thousands): Years Ended December 31 2018 2017 Federal: Current $ 2,001 $ 1,460 Deferred (288 ) 259 Change in corporate tax rate — 387 $ 1,713 $ 2,106 State, current $ 535 $ 356 The difference between the expected and actual tax provision expressed as percentage of earnings before income tax provision are as follows: December 31 2018 2017 Amount % of Pre-tax Income Amount % of Pre-tax Income Expected federal tax rate $ 2,321 21.0 % $ 2,307 34.0 % State taxes, net of federal tax benefit 421 3.8 235 3.5 Nontaxable interest income (377 ) (3.4 ) (403 ) (5.9 ) Bank-owned life insurance (112 ) (1.0 ) (173 ) (2.6 ) Merger expenses — — 35 0.5 Change in corporate tax rate — — 387 5.7 Other items, net (5 ) (0.1 ) 74 1.1 Effective Tax Rate $ 2,248 20.3 % $ 2,462 36.3 % The Tax Cuts and Jobs Act, enacted on December 22, 2017, lowered the federal corporate income tax rate from 35% to 21% effective January 1, 2018. As a result, the carrying value of net deferred tax assets was reduced which increased income tax expense by $387,000 for the year ended December 31, 2017. The Bank is subject to the Pennsylvania, Maryland and West Virginia Corporation 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, 2018 and December 31, 2017 (dollars in thousands): December 31 2018 2017 Deferred Tax Assets: Allowance for loan losses $ 927 $ 867 Employee benefits 290 195 Impairment reserves 11 17 Purchase accounting — 70 Net unrealized losses on securities 195 — Capital loss carryforward 19 — Other, net 148 120 Total Deferred Tax Assets 1,590 1,269 Deferred Tax Liabilities: Net unrealized gains on securities — (223 ) Premises and equipment (214 ) (292 ) Purchase accounting (14 ) — Other, net (46 ) (121 ) Total Deferred Tax Liabilities (274 ) (636 ) Net Deferred Tax Assets $ 1,316 $ 633 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 percent 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 2014 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, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Requirements | Note 10 — Regulatory Capital Requirements Included in interest-earning deposits with other institutions are required federal reserves of $11.5 million and $12.3 million at December 31, 2018 and December 31, 2017, 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 table 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, 2018 and December 31, 2017, the Bank was categorized as “Well Capitalized” under the regulatory framework for prompt corrective action promulgated by the Federal Reserve. 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 table below. 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 December 31, 2017 Bank Company Amount Ratio Amount Ratio Total capital (to risk weighted assets) Actual $ 104,414 15.78 % $ 109,553 16.53 % For capital adequacy purposes 52,947 8.00 53,024 8.00 To be well capitalized 66,184 10.00 66,280 10.00 Common equity tier I (to risk weighted assets) Actual $ 100,265 15.15 % $ 105,191 15.87 % For capital adequacy purposes 29,783 4.50 29,826 4.50 To be well capitalized 43,020 6.50 43,082 6.50 Tier I capital (to risk weighted assets) Actual $ 100,265 15.15 % $ 105,191 15.87 % For capital adequacy purposes 39,711 6.00 39,768 6.00 To be well capitalized 52,947 8.00 53,024 8.00 Tier I capital (to average assets) Actual $ 100,265 10.55 % $ 105,191 11.01 % For capital adequacy purposes 38,030 4.00 38,221 4.00 To be well capitalized 47,538 5.00 47,776 5.00 |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Stock Based Compensation | |
Stock Based Compensation | Note 11 — Stock Based Compensation In 2012, the Company’s stockholders approved the 2012 Equity Incentive Plan (the “2012 Plan”). The purpose of the 2012 Plan is to provide officers, employees and directors with additional incentives to promote growth and performance of Standard AVB Financial Corp. The 2012 Plan authorizes the granting of options to purchase shares of the Company’s stock, which may be nonqualified stock options or incentive stock options, and restricted stock which is subject to vesting conditions and other restrictions. The 2012 Plan reserved an aggregate number of 486,943 shares of which 347,817 may be issued in connection with the exercise of stock options and 139,126 may be issued as restricted stock. On July 25, 2012, certain directors and officers of the Company were awarded an aggregate of 278,075 options to purchase shares of common stock and 111,300 restricted shares of common stock. The awards vested over five years at the rate of 20% per year and the stock options have a ten-year contractual life from the date of grant. The Company recognized compensation expense associated with the awards over the five-year vesting period. On December 19, 2017, certain officers of the Company were awarded an aggregate of 2,424 restricted shares of common stock. The awards vested immediately and, as such, all related compensation expense was recognized during the year ended December 31, 2017. Remaining shares available to be issued under the 2012 Plan include 75,742 options and 25,402 shares of restricted stock. The Company’s common stock closed at $16.50 per share on July 25, 2012, which is the exercise price of the options granted on that date. The estimated fair value of the stock options was $423,000, before the impact of income taxes. The per share weighted-average fair value of stock options granted with an exercise price equal to the market value on July 25, 2012 was $1.52 using the following Black-Scholes option pricing model assumptions: expected life of 7.5 years, expected dividend rate of 1.13%, risk-free interest rate of 1.10% and an expected volatility of 9.5% based on historical results of the stock prices of a bank peer group. For the year ended December 31, 2018, there was no recorded compensation expense on the options. For the year ended December 31, 2017, compensation expense recorded on options was $44,000 with a related tax benefit recorded of $5,000. As of December 31, 2018, all outstanding options were fully vested and there was no unrecognized compensation cost. As a result of the merger with Allegheny Valley on April 7, 2017, the Company assumed stock plans allowing for the issuance of an additional 77,634 shares of Standard AVB Financial Corp. stock. On April 10, 2017, one of the plans acquired expired which included 249 unissued shares. The remaining acquired Plan (the “2011 Plan”) provides for the granting of incentive stock options (as defined in section 422 of the Internal Revenue Code), nonstatutory stock options, restricted stock, and stock appreciation rights to eligible employees and directors. The 2011 Plan had an original term of ten years and it is administered by the Board of Directors or a committee designated by the Board. 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. The following table summarizes transactions regarding the options under the Plan: Options Weighted Weighted Average Outstanding at December 31, 2016 248,075 $ 16.50 5.56 Granted — — Merger related options 73,051 19.61 Exercised (18,895 ) 16.50 Forfeited — — 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 Exercisable at December 31, 2017 302,231 $ 17.25 Exercisable at December 31, 2018 266,695 $ 17.12 For the year ended December 31, 2018, there was $972 of compensation expense recorded on restricted stock grants. For the year ended December 31, 2017, compensation expense on the restricted stock grants was $485,000 with a related tax benefit recorded of $91,000. As of December 31, 2018, there was $6,803 of unrecognized compensation expense that will be recognized over the remaining vesting period. The following table summarizes transactions regarding restricted stock under the Plan: Number of Weighted Non-vested shares at December 31, 2016 19,860 $ 16.50 Granted 2,424 29.60 Vested (22,284 ) 17.92 Forfeited — — Non-vested shares at December 31, 2017 — $ — Granted 250 31.10 Vested — — Forfeited — — Non-vested shares at December 31, 2018 250 $ 31.10 |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 12 Months Ended |
Dec. 31, 2018 | |
Shareholders Equity And Share Based Payments Disclosure [Abstract] | |
Employee Stock Ownership Plan | Note 12 — Employee Stock Ownership Plan The Company established a tax qualified Employee Stock Ownership Plan (“ESOP”) for the benefit of its employees in conjunction with the stock conversion on October 6, 2010. Eligible employees begin to participate in the plan after one year of service and become 20% vested 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, if 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 Stockholders’ Equity. 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 was $440,000 and $403,000 for the years ended December 31, 2018 and December 31, 2017, respectively. Dividends on unallocated shares are not treated as ordinary dividends and are instead used to repay the ESOP loan and recorded as compensation expense. As of December 31, 2018, the ESOP held 254,610 shares of the Company’s stock, and there were 173,458 unallocated shares. As of December 31, 2017, the ESOP held 260,935 shares of the Company’s stock, and there were 187,912 unallocated shares. The fair market value of the unallocated ESOP shares was $5.2 million at December 31, 2018 and $7.8 million at December 31, 2017. During the year ended December 31, 2018, 14,454 shares were released for allocation. During the year December 31, 2017, 14,455 shares were released for allocation. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Defined Contribution Plan [Abstract] | |
Employee Benefit Plans | Note 13 — Employee Benefit Plans During 2015, the Company established the Standard Bank PaSB Defined Benefit Pension Plan and Trust (“the Standard Bank Plan”). The Standard Bank Plan was established effective January 1, 2015 to serve as recipient of a trust-to-trust transfer of assets from the previous plan held with Pentegra and thereafter to pay the benefits to participants and beneficiaries in accordance with the Standard Bank Plan, the terms of which generally mirror the terms of the previous Pentegra Plan. 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, 2018 and December 31, 2017 (dollars in thousands): December 31 2018 2017 Change in projected benefit obligation: Benefit obligation at beginning of year $ 4,168 $ 4,780 Interest cost 131 175 Settlement loss (gain) 11 (28 ) Actuarial gain (312 ) (133 ) Benefits paid (36 ) (30 ) Settlement payments (525 ) (596 ) Projected benefit obligation at end of year 3,437 4,168 Change in plan assets: Fair value of plan assets at beginning of year 3,564 3,683 Actual return on plan assets (99 ) 497 Employer contribution — 15 Benefits paid (36 ) (30 ) Administrative expenses (21 ) (5 ) Settlement payments (525 ) (596 ) Fair value of plan assets at end of year 2,883 3,564 Funded status $ (554 ) $ (604 ) Amounts recognized in accumulated other comprehensive income consist of: Unrecognized actuarial loss $ (400 ) $ (397 ) Total $ (400 ) $ (397 ) The accumulated benefit obligation for the defined benefit pension plan was $3.4 million and $4.2 million at December 31, 2018 and December 31, 2017, respectively. Components of Net Periodic Benefit Cost The net periodic pension cost for the years ended December 31, 2018 and December 31, 2017 are as follows (dollars in thousands): Years Ended December 31 2018 2017 Interest Cost $ 131 $ 175 Expected return on plan assets (162 ) (200 ) Amortization of net loss 10 96 Settlement obligation 61 72 Net periodic pension cost $ 40 $ 143 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 2019 are as follows (dollars in thousands): December 31 2018 2017 Net loss $ 9 $ 10 Total $ 9 $ 10 Assumptions The weighted-average assumptions used to determine benefit obligations at December 31, 2018 and December 31, 2017 were as follows: December 31 2018 2017 Discount rate 4.00 % 3.40 % The weighted-average assumptions used to determine net periodic benefit cost for years ended December 31, 2018 and December 31, 2017 are as follows: December 31 2018 2017 Discount rate 4.00 % 3.40 % The long-term rate of return on plan assets was assumed to be 5.00% for December 31, 2018 and December 31, 2017 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, 2018 and December 31, 2017 by assets category are as follows: December 31 Asset Category 2018 2017 Cash and Cash Equivalents 2.89 % 0.28 % Equity Mutual Funds 37.88 71.13 Bond Mutual Funds 59.23 28.59 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 asset allocation at December 31, 2018 reflects a more conservative allocation than the prior year. At December 31, 2017 the investment policy for the defined benefit pension plan assets is to maintain 60 percent in equity mutual funds and 40 percent in bond mutual funds. The asset allocation in equity mutual funds exceeded the policy limit at December 31, 2017 due to the record performance of the stock market in 2017.The following tables set forth by level, within the fair value hierarchy, the plan’s assets at fair value as of December 31, 2018 and December 31, 2017 (dollars in thousands): Level I Level II Level III Total 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 December 31, 2017: Cash and Cash Equivalents $ 10 $ — $ — $ 10 Domestic Stock Funds 2,040 — — 2,040 International Stock Funds 495 — — 495 Domestic Bond Funds 929 — — 929 International Bond Funds 90 — — 90 Total assets at fair value $ 3,564 $ — $ — $ 3,564 Cash Flows There are no expected contributions to the defined benefit pension plan during 2019. The following benefit payments that reflect expected future service, as appropriate, are expected to be paid subsequent to December 31, 2018 (dollars in thousands): Year Ended December 31, Plan Benefits 2019 $ 674 2020 195 2021 146 2022 152 2023 141 2024 – 2028 848 Total $ 2,156 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 4 percent of such employees’ pretax salaries. Expense recognized for the plan was $306,000 and $268,000 for the year ended December 31, 2018 and December 31, 2017, 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, 2018, the Company had service cost of $114,000 and interest cost of $4,000 related to the SERP. |
Financial Instruments With Off-
Financial Instruments With Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments with Off Balance Sheet Risk [Abstract] | |
Financial Instruments With Off-Balance Sheet Risk | Note 14 — 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, 2018 and December 31, 2017 were comprised of the following (dollars in thousands): December 31 2018 2017 One-to-four family and construction: Loan commitments $ 872 $ 510 Undisbursed home equity lines of credit 34,485 30,335 Undisbursed funds – construction loans in process 6,129 7,109 Commerical loan commitments 67,240 52,749 Standby letters of credit 4,202 1,961 Other 24,251 24,037 Total $ 137,179 $ 116,701 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, 2018 | |
Fair Value of Assets and Liabilities | |
Fair Value of Assets and Liabilities | Note 15 — 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, 2018 and December 31, 2017, management did not make adjustments to prices provided by the third-party pricing service as a result of illiquid or inactive markets. On a quarterly basis, management also reviews a sample of securities priced by the Company’s third-party pricing service to review significant assumptions and valuation methodologies used. Based on this review, management determines whether the current placement of the security in the fair value hierarchy is appropriate or whether transfers may be warranted. The following table presents the assets measured at fair value on a recurring basis as of December 31, 2018 and December 31, 2017 by level within the fair value hierarchy (dollars in thousands): Level 1 Level 2 Level 3 Total 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 December 31, 2017: Investment securities available for sale: U.S. government and agency obligations $ — $ 8,340 $ — $ 8,340 Corporate bonds — 2,272 — 2,272 Municipal obligations — 50,777 — 50,777 Equity securities 4,170 — — 4,170 Total investment securities available for sale 4,170 61,389 — 65,559 Mortgage-backed securities available for sale — 67,630 — 67,630 Total recurring fair value measurements $ 4,170 $ 129,019 $ — $ 133,189 Assets Measured at Fair Value on a Nonrecurring Basis The following table presents the assets measured at fair value on a nonrecurring basis as of December 31, 2018 and December 31, 2017 by level within the fair value hierarchy (dollars in thousands): Level 1 Level 2 Level 3 Total December 31, 2018: Foreclosed real estate $ — $ — $ 486 $ 486 Total nonrecurring fair value measurements $ — $ — $ 486 $ 486 December 31, 2017: Foreclosed real estate $ — $ — $ 419 $ 419 Impaired loans — — 295 295 Total nonrecurring fair value measurements $ — $ — $ 714 $ 714 The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Company uses Level 3 inputs to determine fair value (dollars in thousands): Quantitative Information about Level 3 Fair Value Measurements December 31 Valuation Techniques Unobservable Input Range (Weighted Average) 2018 2017 Foreclosed real estate $ 486 $ 419 Appraisal of collateral (1) Appraisal adjustments (2) 0% to 30% (17%) Liquidation expenses (2) 0% to 15% (11%) Impaired loans $ — $ 295 Fair value of collateral (1),(3) Appraisal adjustments (2) 0% to 20% (20%) Liquidation expenses (2) 0% to 10% (6%) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. (3) Includes qualitative adjustments by management and estimated liquidation expenses. 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, 2018 and December 31, 2017 (dollars in thousands): Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 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 stock (1) 7,827 7,827 7,827 — — Loans receivable (1)(4) 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, savings and club 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 — — December 31, 2017: Financial Instruments – Assets: Cash on hand and due from banks $ 3,523 $ 3,523 $ 3,523 $ — $ — Interest-earning deposits in other institutions 12,742 12,742 12,742 — — Certificate of deposit 749 749 749 — — Investment securities 65,559 65,559 4,170 61,389 — Mortgage-backed securities 67,630 67,630 — 67,630 — Federal Home Loan Bank stock 9,468 9,468 9,468 — — Loans receivable 747,035 747,371 — — 747,371 Bank-owned life insurance 22,040 22,040 22,040 — — Accrued interest receivable 2,657 2,657 2,657 — — Financial Instruments – Liabilities: Demand, savings and club accounts $ 482,902 $ 482,902 $ 482,902 $ — $ — Certificate deposit accounts 211,944 211,454 — — 211,454 Federal Home Loan Bank short-term borrowings 27,021 27,021 27,021 — — Federal Home Loan Bank advances 107,652 107,223 — — 107,223 Securities sold under agreements to repurchase 4,240 4,240 4,240 — — Accrued interest payable 993 993 993 — — (1) The financial instrument is carried at amortized cost at December 31, 2018. (2) The financial instrument is carried at fair value through other comprehensive income at December 31, 2018. (3) The financial instrument is carried at fair value through net income at December 31, 2018. (4) In accordance with the prospective adoption of ASU 2016-01, the fair value of loans as of December 31, 2018 was measured using an exit price notion. The fair value of loans as of December 31, 2017 was measured using an entry price notion. |
Parent Only Financial Informati
Parent Only Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Only Financial Information | Note 16 — Parent Only Financial Information Statement of Financial Condition (Dollars in thousands) December 31 2018 2017 Assets Cash $ 1,421 $ 980 Interest-earning deposits with other institutions 47 473 Cash and cash equivalents 1,468 1,453 Equity securities 1,022 2,451 Accrued interest receivable and other assets 1,047 1,208 Investment in subsidiary 134,451 128,904 Total Assets $ 137,988 $ 134,016 Liabilities and Stockholders’ Equity Accrued interest payable and other liabilities $ 98 $ 44 Stockholders’ equity 137,890 133,972 Total Liabilities and Stockholders’ Equity $ 137,988 $ 134,016 Statement of Operations (Dollars in thousands) Years Ended December 31 2018 2017 Income Dividends from subsidiary $ 2,000 $ 2,000 Interest income 62 60 Gain (loss) on sale of investments 394 (56 ) Net equity securities fair value adjustment losses (468 ) — Other income — 1 Total Income 1,988 2,005 Operating expenses 259 499 Total Expense 259 499 Income before taxes 1,729 1,506 Credit for income taxes (70 ) (304 ) Income before equity in undistributed net income of subsidiaries 1,799 1,810 Equity in undistributed income of Standard Bank 7,002 2,515 $ 8,801 $ 4,325 Statement of Cash Flows (Dollars in thousands) Years Ended December 31 2018 2017 Net income $ 8,801 $ 4,325 Adjustments to reconcile net income to net cash provided by operating activities: Net (gain) loss on sale of equity securities (394 ) 56 Net equity securities fair value adjustment losses 468 — Net change in other assets and liabilities 215 (103 ) Equity in undistributed income of subsidiaries (7,002 ) (2,515 ) Net cash provided by operating activities 2,088 1,763 Investing Activities: Proceeds from sale of equtiy securities 1,900 601 Purchases of equity securities (546 ) (318 ) Cash and cash equialents acquired — 408 Capital contribution to subsidiaries — (57,672 ) Net cash (used for) provided by investing activities 1,354 (56,981 ) Financing activities: Proceeds from exercise of stock options 648 311 Proceeds from stock issuance related to merger — 57,672 Stock compensation expense 1 529 ESOP expense 440 403 Stock repurchases (428 ) (161 ) Dividends paid (4,088 ) (3,312 ) Net cash provided by (used for) financing activities (3,427 ) 55,442 Net change in cash and cash equivalents 15 224 Cash and cash equivalents at the beginning of the year 1,453 1,229 Cash and cash equivalents at the end of the year $ 1,468 $ 1,453 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | Note 17 — Accumulated Other Comprehensive Income The following tables present the significant amounts reclassified out of accumulated other comprehensive income and the changes in accumulated other comprehensive income by component for the years ended December 31, 2018 and December 31, 2017. Unrealized Gains on Unrecognized Total Balance as of December 31, 2016 $ (32 ) $ (745 ) $ (777 ) Other comprehensive income before reclassification 519 373 892 Amount reclassified from accumulated other comprehensive income 212 111 323 Total other comprehensive income 731 484 1,215 Reclassification of certain income tax effects from accumulated other comprehensive income 141 (51 ) 90 Balance as of December 31, 2017 $ 840 $ (312 ) $ 528 Other comprehensive income before reclassification (1,540 ) 15 (1,525 ) Amount reclassified from accumulated other comprehensive loss 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 ) Amount Reclassified Affected Line on the 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: 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 December 31, 2017: Unrealized losses on available for sale securities $ 323 Net losses on sales of securities (111 ) Income tax expense 212 Net of tax Amortization of defined benefit items: 96 Other operating expenses Distribution settlement 72 Other operating expenses (57 ) Income tax expense 111 Net of tax Total reclassification for the period $ 323 Net income |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 18 — Revenue Recognition Effective January 1, 2018, the Company adopted ASU No. 2014-09 Revenue from Contracts with Customers — Topic 606 Summary of Significant Accounting Policies Topic 606 is applicable to noninterest revenue streams such as service charges, which includes charges on deposit accounts, interchange fees, and other service fees, and investment management fees. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. The main types of noninterest revenue within the scope of the standard are as follows: Service Charges Service charges on deposit accounts consist of insufficient funds (NSF) fees, monthly service fees, minimum balance fees, and other deposit account related fees. The Company’s performance obligation for monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. NSF fees, minimum balance fees, and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges is primarily received immediately or in the following month through a direct charge to customers’ accounts. Income from debit and credit cards is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks. The Company’s performance obligation for interchange fees is largely satisfied, and related revenue recognized, when the services are rendered. Payment is typically received immediately. Other fee income is primarily comprised of ATM fees and other service charges. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Other service charges include revenue from processing wire transfers, bill pay service, ACH origination, and other services. The Company’s performance obligation for ATM fees and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Investment Management Fees Investment management fees include three basic components including brokerage commissions, trailers and advisory fees. Brokerage commissions are fees earned from the sale of annuities, stocks, bonds, mutual funds and insurance products and are recognized in the month following the settlement date, which is when the Company has satisfied its performance obligation (that is successful consummation of trade in a compliant manner) and is paid. The Company also receives periodic services fees (i.e. trailers) from mutual fund companies typically based on a percentage of market value and are paid quarterly. Advisory fees are earned over time and based on an annual percentage rate of the market value of the accounts. Advisory fees are charged to customer’s accounts, on a quarterly basis “in advance”, beginning in the first month of account opening and funding in accordance with a customer signed agreement. The first quarter’s pro-rated initial advisory fees are then paid to the Company the month after the account is opened and funded. Thereafter the first pro-rated quarter, 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, 2018 and December 31, 2017. Year Ended December 31, 2018 2017 Noninterest income In scope of Topic 606: Service charges on deposit accounts $ 2,900 $ 2,510 Investment management fees 644 412 Noninterest income (in-scope of Topic 606) 3,544 2,922 Noninterest income (out-of-scope of Topic 606) 803 621 Total noninterest income $ 4,347 $ 3,543 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, 2018 and December 31, 2017, the Company did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost. |
Merger with Allegheny Valley Ba
Merger with Allegheny Valley Bancorp, Inc. | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Merger with Allegheny Valley Bancorp, Inc. | Note 19 — Merger with Allegheny Valley Bancorp, Inc. On August 29, 2016, Standard Financial Corp. and Allegheny Valley entered into an Agreement and Plan of Merger, which contemplated that Allegheny Valley would merge with and into Standard Financial Corp., with Standard Financial Corp. as the surviving entity to be known as “Standard AVB Financial Corp.” On April 7, 2017, Allegheny Valley merged with and into Standard Financial Corp. Accordingly, the Company is now referred to as “Standard AVB Financial Corp.” Under the terms of the Merger Agreement, each outstanding share of Allegheny Valley common stock was converted into the right to receive 2.083 shares of Standard AVB Financial Corp. common stock and cash in lieu of fractional shares (the “Merger Consideration”). As of the closing date, there were 1,040,923 outstanding shares of Allegheny Valley common stock which resulted in a total of 2,168,097 shares of Standard AVB Financial Corp. common stock issued for exchange, subject to adjustment for fractional shares. Cash for any fractional shares of Standard AVB Financial Corp. common stock was based on $26.60 for each whole share, based on the average closing price of Standard Financial common stock for the five trading days immediately preceding the merger date. In addition, each option to purchase Allegheny Valley common stock was converted into an option to purchase Standard AVB Financial Corp. common stock at the same terms and conditions as were applicable prior to the holding company merger, except that the number of shares of Standard AVB Financial Corp. common stock issuable upon exercise of a converted option was adjusted by multiplying the number of shares of Allegheny Valley common stock issuable by 2.083. Additionally, the exercise price per share of a converted option was adjusted by dividing the exercise price per share of the Allegheny Valley option by 2.083. Additionally, at the consummation of the holding company merger, each Allegheny Valley restricted stock award became fully vested and was converted into the right to receive the Merger Consideration. The acquired assets and assumed liabilities were measured at estimated fair values. Management made significant estimates and exercised significant judgement in accounting for the acquisition. Management measured loan fair values based on loan file reviews, appraised collateral values, expected cash flows, historical loss factors of Allegheny Valley and charge-off statistics published by the FDIC. The Company also recorded an identifiable intangible asset representing the core deposit base of Allegheny Valley based on management’s evaluation of the cost of deposits relative to alternative funding sources. Management used significant estimates including the average lives of depository accounts, future interest rate levels, and the cost of servicing various depository products. Management used market quotations to determine the fair value of investment securities. The merger resulted in the acquisition of loans with and without evidence of credit quality deterioration. The fair value of the loan portfolio included separate adjustments to reflect a credit risk and marketability component and a yield component reflecting the differential between portfolio and market yields. Allegheny Valley loans were deemed impaired at the acquisition date if the Company did not expect to receive all contractually required payments at the acquisition date. At the acquisition date, the Company recorded $2.5 million of purchased credit impaired loans. These loans were reserved at 100% given the unlikelihood of collection of the principal and interest on the loans. Allegheny Valley’s loans without evidence of credit deterioration were fair valued by discounting both expected principal and interest cash flows using observable discount rates for similar instruments that a market participant would consider in determining fair value. Additionally, consideration was given to management’s best estimates of default rates and payment speeds. At acquisition date, Allegheny Valley’s loan portfolio without evidence of deterioration totaled $316.4 million and was recorded at a fair value of $311.7 million, which included an interest rate adjustment of $861,000 and a general credit adjustment of $3.9 million. The following table summarizes the merger with Allegheny Valley as of April 7, 2017 (dollars in thousands, except per share data): Purchase Price Consideration in Common Stock AVLY common shares settled for stock 1,040,924 Exchange Ratio 2.083 Standard AVB Financial Corp. shares issued 2,168,097 Value assigned to Standard AVB Financial common share $ 26.60 Purchase price per share $ 55.41 Purchase price assigned AVLY common shares exchanged for Standard AVB Financial Corp. $ 57,672 Net Assets Acquired: AVLY shareholders’ equity 48,398 AVLY Goodwill (8,144 ) Total tangible equity 40,254 Adjustments to reflect assets acquired at fair value: Loans Interest rate (861 ) General Credit (3,851 ) Specific Credit-non amortizing (2,467 ) Elimination of existing loan ALLL 3,886 Certificates of Deposit Yield Premium (902 ) Core Deposit Intangible 4,116 Fixed assets 384 Deferred Tax Asset (103 ) 40,456 Goodwill resulting from the merger $ 17,216 The following condensed statement reflects the values assigned to Allegheny Valley net assets as of the acquisition date (dollars in thousands): Total Purchase Price $ 57,672 Net Assets Acquired: Cash 9,611 Securities available for sale 95,919 Loan 311,736 Premises 4,434 Accrued Interest receivable 1,144 Bank-owned life insurance 6,486 Deferred tax assets — Core deposit intangible 4,116 Other assets 7,481 Time deposits (70,422 ) Deposits other than time deposits (263,522 ) Borrowings (64,624 ) Accrued interest payable and other liabilities (1,903 ) 40,456 Goodwill resulting from the AVLY merger $ 17,216 The Company recorded goodwill and other intangibles associated with the merger totaling $21.3 million. Goodwill is not amortized, but is periodically evaluated for impairment. The Company did not recognize any impairment during the year ended December 31, 2018. The carrying amount of goodwill at December 31, 2018 related to the Allegheny Valley merger was $17.1 million, of which none is deductible for tax purposes. Identifiable intangibles are amortized to their estimated residual values over the expected useful lives of such assets. The gross carrying amount of the core deposit intangible at December 31, 2018 was $2.5 million with $1.6 million of accumulated amortization as of that date. As of December 31, 2018, the estimated future amortization expense for the core deposit intangible is (dollars in thousands): 2019 628 2020 472 2021 352 2022 325 2023 325 2024 325 2025 81 $ 2,508 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
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. The year ended December 31, 2017 includes the acquisition of Allegheny Valley Bancorp, Inc. effective April 7, 2017. 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 2019, 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 and 3 discuss the types of securities in which the Company invests. Note 4 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 Federal Deposit Insurance Corporation up to at least $250,000. At times, the Company may maintain more than $250,000 in cash at a financial institution. |
Investment and Mortgage-Backed 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 2018 or 2017. 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 2018 or 2017. Available-for-sale securities are other 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. Effective January 1, 2018, 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 in accordance with ASU 2016-01. Prior to January 1, 2018, available-for-sale equity securities were stated at fair value, with unrealized holding gains and losses reported as a separate component of stockholders’ equity, net of tax, until realized. 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 2018, 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, 2018 or December 31, 2017. |
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 differences 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 Standard Bank PaSB. 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, 2018 or December 31, 2017. |
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 as other 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, 2018 and December 31, 2017, 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 prior year 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 $2.5 million and $3.3 million, net of accumulated amortization of $1.6 million and $772,000 for the years ended December 31, 2018 and December 31, 2017, respectively. Additional information regarding the acquisition of Allegheny Valley is included in Note 18 to these Consolidated Financial Statements. |
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 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. The Company had no uncertain tax positions at December 31, 2018 or December 31, 2017. 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, 2018 and December 31, 2017 totaled $289,000 and $127,000, 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 February 14, 2018, the FASB finalized ASU 2018-02 — Income Statement Reporting Comprehensive Income (Topic 220) The Bank elected to early adopt this accounting standard, which provided a benefit to the financial statements by more accurately aligning the impacts of the items carried in accumulated other comprehensive income with the associated tax effect. The adoption resulted in a one-time cumulative effect adjustment of $90,000 between retained earnings and accumulated other comprehensive income on the Consolidated Statement of Financial Condition for December 31, 2017. The adjustment had no impact on net income for the year ended December 31, 2017. 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 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, 2018 and December 31, 2017 (dollars in thousands except share and per share data): Years Ended December 31 2018 2017 Net income available to common stockholders $ 8,801 $ 4,325 Basic EPS: Weighted average shares outstanding 4,634,003 4,021,942 Basic EPS $ 1.90 $ 1.08 Diluted EPS: Weighted average shares outstanding 4,634,003 4,021,942 Diluted effect of common stock equivalents 51,041 105,376 Total diluted weighted average shares outstanding 4,685,044 4,127,318 Diluted EPS $ 1.88 $ 1.05 Options to purchase 266,695 and 302,231 shares of common stock were outstanding as of December 31, 2018 and December 31, 2017, respectively with an average exercise price of $17.12 and $17.25, respectively. There were no anti-dilutive options as of December 31, 2018 or December 31, 2017. As of December 31, 2018, there were 250 shares of restricted stock that were not fully vested and added to the computation of diluted earnings per common share. As of December 31, 2017, all restricted stock was fully vested, therefore, no additional shares were 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 2018 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. In January 2016, the FASB issued ASU 2016-01, Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Fair Value of Assets and Liabilities In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business In March 2017, the FASB issued ASU 2017-07, Compensation Retirement Benefits (Topic 715) In May 2017, the FASB issued ASU 2017-09, Compensation Stock Compensation (Topic 718) issuance. The amendments in this Update should be applied prospectively to an award modified on or after the adoption date. The adoption of the standard by the Company, on January 1, 2018, did not have a material impact on the Company’s Consolidated Financial Statements. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments Overall (Subtopic 825-10) Fair Value Measurement Derivatives and Hedging Embedded Derivatives Financial Instruments Overall; Financial Services Insurance ASU 2018-04, Investments Debt Securities (Topic 320) Regulated Operations (Topic 980) Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273 ASU 2018-05, Income Taxes (Topic 740) Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 118 Accounting Standards Pending Adoption In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) recognize lease payments over the lease term on a straight-line basis. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company adopted this guidance January 1, 2019. As a result, right-of-use assets and lease obligations will be booked on the Consolidated Statement of Financial Condition. The Company has four operating lease agreements for branch offices. We expect to recognize right-of-use assets and corresponding lease liabilities of approximately $1.1 million related to those operating leases on the Consolidated Statement of Financial Condition in the first quarter of 2019. In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses: Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments Credit Losses Leases In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment 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. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. ASU 2018-06, Codification Improvements to Topic 942, Financial Services-Depository and Lending, amends the guidance in Subtopic 942-740, Financial Services-Depository and Lending-Income Taxes, that is related to Circular 202 because that guidance has been rescinded by the Office of the Comptroller of the Currency (OCC) and no longer is relevant. This Update is not expected to have a significant impact on the Company’s financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation — Stock Compensation (Topic 718), which simplified the accounting for nonemployee share-based payment transactions. The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments in this Update improve the following areas of nonemployee share-based payment accounting; (a) the overall measurement objective, (b) the measurement date, (c) awards with performance conditions, (d) classification reassessment of certain equity-classified awards, (e) calculated value (nonpublic entities only), and (f) intrinsic value (nonpublic entities only). The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. This Update is not expected to have a significant impact on the Company’s financial statements. In July 2018, the FASB issued ASU 2018-09, Codification Improvements, represents changes to clarify, correct errors in, or make minor improvements to the Codification. The amendments make the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. The transition and effective date guidance is based on the facts and circumstances of each amendment. Some of the amendments do not require transition guidance and will be effective upon issuance of this ASU. However, many of the amendments in this ASU do have transition guidance with effective dates for annual periods beginning after December 15, 2018, for public business entities. This Update is not expected to have a significant impact on the Company’s financial statements. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, represents changes to clarify, correct errors in, or make minor improvements to the Codification. The amendments in this ASU affect the amendments in ASU 2016-02, which are not yet effective, but for which early adoption upon issuance is permitted. For entities that early adopted Topic 842, the amendments are effective upon issuance of this ASU, and the transition requirements are the same as those in Topic 842. For entities that have not adopted Topic 842, the effective date and transition requirements will be the same as the effective date and transition requirements in Topic 842. This Update is not expected to have a significant impact on the Company’s financial statements. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. This Update provides another transition method which allows entities to initially apply ASC 842 at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Entities that elect this approach should report comparative periods in accordance with ASC 840, Leases. In addition, this Update provides a practical expedient under which lessors may elect, by class of underlying assets, to not separate nonlease components from the associated lease component, similar to the expedient provided for lessees. However, the lessor practical expedient is limited to circumstances in which the nonlease component or components otherwise would be accounted for under the new revenue guidance and both (a) the timing and pattern of transfer are the same for the nonlease component(s) and associated lease component and (b) the lease component, if accounted for separately, would be classified as an operating lease. If the nonlease component or components associated with the lease component are the predominant component of the combined component, an entity should account for the combined component in accordance with ASC 606, Revenue from Contracts with Customers. Otherwise, the entity should account for the combined component as an operating lease in accordance with ASC 842. If a lessor elects the practical expedient, certain disclosures are required. This Update is effective for public business entities for fiscal years beginning after December 15, 2018, 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, 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 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. This Update is not expected to have a significant impact on the Company’s financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of computation of basic and diluted EPS | Years Ended December 31 2018 2017 Net income available to common stockholders $ 8,801 $ 4,325 Basic EPS: Weighted average shares outstanding 4,634,003 4,021,942 Basic EPS $ 1.90 $ 1.08 Diluted EPS: Weighted average shares outstanding 4,634,003 4,021,942 Diluted effect of common stock equivalents 51,041 105,376 Total diluted weighted average shares outstanding 4,685,044 4,127,318 Diluted EPS $ 1.88 $ 1.05 |
Investment Securities (Tables)
Investment Securities (Tables) - Available-for-sale securities other than mortgage backed securities | 12 Months Ended |
Dec. 31, 2018 | |
Investment Securities | |
Schedule of investment securities available for sale | Amortized Gross Gross Fair 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 December 31, 2017: U.S. government and agency obligations due: Beyond 1 year but within 5 years $ 7,400 $ 4 $ (8 ) $ 7,396 Beyond 5 year but within 10 years 934 10 — 944 Corporate bonds due: Beyond 1 year but within 5 years 2,276 14 (18 ) 2,272 Municipal obligations due: Beyond 1 year but within 5 years 8,702 441 — 9,143 Beyond 5 years but within 10 years 25,803 339 (21 ) 26,121 Beyond 10 years 15,483 129 (99 ) 15,513 Equity securities 3,647 557 (34 ) 4,170 $ 64,245 $ 1,494 $ (180 ) $ 65,559 |
Schedule of fair value and gross unrealized losses on investment securities and the length of time the securities have been in a continuous unrealized loss position | Less than 12 Months 12 Months or More Total Fair Gross Fair Value Gross Fair Gross 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 ) December 31, 2017: U.S. government and agency obligations $ 5,924 $ (8 ) $ — $ — $ 5,924 $ (8 ) Corporate bonds 751 (3 ) 1,001 (15 ) 1,752 (18 ) Municipal obligations 4,911 (19 ) 4,491 (101 ) 9,402 (120 ) Equity securities 857 (34 ) — — 857 (34 ) Total $ 12,443 $ (64 ) $ 5,492 $ (116 ) $ 17,935 $ (180 ) |
Schedule of net gains and losses on equity investments | Year Ended Net equity securities fair value adjustment losses $ (484 ) Net gains realized on the sale of equity securities during the year 394 Losses recognized on equity securities during the period $ (90 ) |
Mortgage-Backed Securities (Tab
Mortgage-Backed Securities (Tables) - Mortgage-backed securities | 12 Months Ended |
Dec. 31, 2018 | |
Mortgage-backed securities | |
Schedule of securities available for sale | Amortized Gross Gross Fair 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 December 31, 2017: Government pass-throughs: Ginnie Mae $ 17,416 $ 6 $ (131 ) $ 17,291 Fannie Mae 16,078 75 (8 ) 16,145 Freddie Mac 12,510 41 (14 ) 12,537 Private pass-throughs 14,603 8 (113 ) 14,498 Collateralized mortgage obligations 7,277 — (118 ) 7,159 $ 67,884 $ 130 $ (384 ) $ 67,630 |
Schedule of 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 Fair Gross Fair Gross Fair Gross 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 ) Less than 12 Months 12 Months or More Total Fair Gross Fair Gross Fair Gross December 31, 2017: Government pass-throughs: Ginnie Mae $ 12,231 $ (87 ) $ 2,591 $ (44 ) $ 14,822 $ (131 ) Fannie Mae 3,227 (8 ) — — 3,227 (8 ) Freddie Mac 5,949 (14 ) — — 5,949 (14 ) Private pass-throughs 12,559 (113 ) — — 12,559 (113 ) Collateralized mortgage obligations 5,968 (79 ) 1,191 (39 ) 7,159 (118 ) Total $ 39,934 $ (301 ) $ 3,782 $ (83 ) $ 43,716 $ (384 ) |
Loans Receivable (Tables)
Loans Receivable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of loans receivable | Real Estate Loans One-to-four- Commercial Home Commercial Other Total 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 December 31, 2017: Collectively evaluated for impairment $ 261,715 $ 300,702 $ 130,915 $ 56,122 $ 1,413 $ 750,867 Individually evaluated for impairment — 295 — — — 295 Total loans before allowance for loan losses $ 261,715 $ 300,997 $ 130,915 $ 56,122 $ 1,413 $ 751,162 |
Schedule of components purchase accounting adjustments related to purchased credit Impaired loans acquired | Contractually required principal and interest $ 2,467 Non-accretable discount (2,467 ) Expected cash flows — Accretable discount — Estimated fair value $ — |
Schedule of impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary | Impaired Loans With Impaired Loans Total Impaired Loans Recorded Related Recorded Recorded Unpaid Principal December 31, 2018: Commercial real estate $ — $ — $ — $ — $ — Total impaired loans $ — $ — $ — $ — $ — December 31, 2017: Commercial real estate $ — $ — $ 295 $ 295 $ 295 Total impaired loans $ — $ — $ 295 $ 295 $ 295 |
Schedule of average recorded investment in impaired loans and related interest income recognized for the periods indicated | Years Ended December 31 2018 2017 Average investment in impaired loans: Commercial real estate $ 236 $ 861 $ 236 $ 861 Interest income recognized on impaired loans $ — $ — |
Schedule of classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system | Pass Special Mention Substandard Doubtful Total December 31, 2018: Real estate loans: One-to-four-family residential and construction $ 252,186 $ — $ 1,727 $ — $ 253,913 Commercial real estate 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 December 31, 2017: Real estate loans: One-to-four-family residential and construction $ 259,463 $ 211 $ 2,041 $ — $ 261,715 Commercial real estate 295,164 5,077 756 — 300,997 Home equity loans and lines of credit 130,763 — 152 — 130,915 Commercial business loans 55,878 239 5 — 56,122 Other loans 1,411 — 2 — 1,413 Total $ 742,679 $ 5,527 $ 2,956 $ — $ 751,162 |
Schedule of classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | Current 30 – 59 Days Past Due 60 – 89 Days Past Due Non-Accrual 90 Days Past Due & Accruing Total 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 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 Current 30 – 59 Days Past Due 60 – 89 Days Past Due Non-Accrual 90 Days Past Due & Accruing Total Loans December 31, 2017: Real estate loans: One-to-four-family residential and construction $ 258,202 $ 1,342 $ 272 $ 1,899 $ — $ 261,715 Commercial real estate 299,888 338 15 756 — 300,997 Home equity loans and lines of credit 130,383 122 166 244 — 130,915 Commercial business loans 56,034 83 — 5 — 56,122 Other loans 1,376 14 1 3 19 1,413 Total $ 745,883 $ 1,899 $ 454 $ 2,907 $ 19 $ 751,162 |
Schedule of activity in the allowance | Real Estate Loans One-to-four- family Residential and Construction Commercial Real Estate Home Equity Loans and Lines of Credit Commercial Business Other Loans Total 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 Balance at December 31, 2016 $ 1,280 $ 1,787 $ 547 $ 211 $ 12 $ 3,837 Charge-offs (185 ) — (51 ) (1 ) (29 ) (266 ) Recoveries 28 1 — 3 7 39 Provision 261 215 (96 ) 120 17 517 Balance December 31, 2017 $ 1,384 $ 2,003 $ 400 $ 333 $ 7 $ 4,127 Real Estate Loans One-to-four- family Residential and Construction Commercial Real Estate Home Equity Loans and Lines of Credit Commercial Business Other Loans Total 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 Evaluated for Impairment: Individually $ — $ — $ — $ — $ — $ — Collectively 1,384 2,003 400 333 7 4,127 Balance at December 31, 2017 $ 1,384 $ 2,003 $ 400 $ 333 $ 7 $ 4,127 |
Office Properties and Equipme_2
Office Properties and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of office properties and equipment summarized by major classifications | December 31 2018 2017 Land and land improvements $ 3,152 $ 3,152 Buildings and building improvements 10,475 10,433 Leasehold improvements 871 862 Furnitures, fixtures, and equipment 4,678 4,607 $ 19,176 $ 19,054 Less accumulated depreciation (11,447 ) (10,877 ) Plus projects in progress 65 14 Premises and equipment, net $ 7,794 $ 8,191 |
Schedule of future minimum lease payments under existing rental agreements | Years Ending December 31: 2019 $ 407 2020 278 2021 30 Total $ 715 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Schedule of deposit balances | December 31 2018 2017 Noninterest-bearing demand $ 135,708 $ 135,786 Interest-bearing demand 100,163 96,987 Savings 147,695 150,762 Money market 87,611 99,367 Time deposits 246,697 211,944 Total deposits $ 717,874 $ 694,846 |
Schedule of maturities of time deposit | One year or less $ 86,458 Over one through two years 76,313 Over two through three years 29,167 Over three through four years 14,011 Over four through five years 31,283 Over five years 9,465 Total $ 246,697 |
Schedule of maturities of time deposit in denomination | Three months or less $ 14,665 Over three to six months 10,976 Over six to twelve months 13,001 Over twelve months 69,425 Total $ 108,067 |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Advances from Federal Home Loan Banks [Abstract] | |
Schedule of outstanding balances and related information for short-term borrowings | December 31 2018 2017 Balance $ 4,524 $ 27,021 Average balance outstanding during the period 12,696 38,565 Maximum amount outstanding at any month-end 51,500 72,926 Weighted average interest rate at period end 2.64 % 1.54 % Average interest rate during the period 1.79 1.22 |
Schedule of advances of FHLB | December 31 Stated Maturity Interest Rate 2018 2017 June 11, 2018 0.92 $ — $ 750 June 22, 2018 1.26 — 1,805 November 13, 2018 1.65 — 3,000 January 22, 2019 1.25 125 1,608 June 24, 2019 1.63 1,805 1,805 September 11, 2019 1.59 6,438 14,904 November 12, 2019 1.91 3,151 3,151 January 8, 2020 1.70 5,794 5,794 March 20, 2020 2.51 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 9,726 15,157 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 7,639 — August 18, 2021 1.80 2,289 3,119 September 8, 2021 1.77 11,469 15,503 November 15, 2021 3.23 3,000 — September 8, 2022 1.86 7,587 9,522 December 9, 2022 2.26 3,212 3,212 December 29, 2022 2.45 8,097 10,000 May 30, 2023 2.93 10,000 — $ 104,963 $ 107,652 |
Securities Sold Under Agreeme_2
Securities Sold Under Agreement to Repurchase (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | |
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 Total 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 $ 2,137 Amounts related to agreements not included in offsetting disclosures above $ 8,718 December 31, 2017: U.S. government obligations $ 1,643 $ — $ — $ — $ 1,643 Municipal obligations 5,727 — — — 5,727 Total collateral pledged $ 7,370 $ — $ — $ — $ 7,370 Gross amount of recognized liabilities for securities $ 4,240 Amounts related to agreements not included in offsetting disclosures above $ 3,130 |
Schedule of outstanding balances and related information for repurchase agreements | December 31 2018 2017 Balance $ 2,137 $ 4,240 Average balance outstanding during the period 4,782 3,373 Maximum amount outstanding at any month-end 8,251 6,274 Weighted average interest rate at period end 0.19 % 0.12 % Average interest rate during the period 0.23 0.12 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense | Years Ended December 31 2018 2017 Federal: Current $ 2,001 $ 1,460 Deferred (288 ) 259 Change in corporate tax rate — 387 $ 1,713 $ 2,106 State, current $ 535 $ 356 |
Schedule of difference between the expected and actual tax provision expressed as percentage of earnings before income tax provision | December 31 2018 2017 Amount % of Pre-tax Amount % of Pre-tax Expected federal tax rate $ 2,321 21.0 % $ 2,307 34.0 % State taxes, net of federal tax benefit 421 3.8 235 3.5 Nontaxable interest income (377 ) (3.4 ) (403 ) (5.9 ) Bank-owned life insurance (112 ) (1.0 ) (173 ) (2.6 ) Merger expenses — — 35 0.5 Change in corporate tax rate — — 387 5.7 Other items, net (5 ) (0.1 ) 74 1.1 Effective Tax Rate $ 2,248 20.3 % $ 2,462 36.3 % |
Schedule of components of net deferred tax asset | December 31 2018 2017 Deferred Tax Assets: Allowance for loan losses $ 927 $ 867 Employee benefits 290 195 Impairment reserves 11 17 Purchase accounting — 70 Net unrealized losses on securities 195 — Capital loss carryforward 19 — Other, net 148 120 Total Deferred Tax Assets 1,590 1,269 Deferred Tax Liabilities: Net unrealized gains on securities — (223 ) Premises and equipment (214 ) (292 ) Purchase accounting (14 ) — Other, net (46 ) (121 ) Total Deferred Tax Liabilities (274 ) (636 ) Net Deferred Tax Assets $ 1,316 $ 633 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Company's and Bank's actual capital and leverage ratios | 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 December 31, 2017 Bank Company Amount Ratio Amount Ratio Total capital (to risk weighted assets) Actual $ 104,414 15.78 % $ 109,553 16.53 % For capital adequacy purposes 52,947 8.00 53,024 8.00 To be well capitalized 66,184 10.00 66,280 10.00 Common equity tier I (to risk weighted assets) Actual $ 100,265 15.15 % $ 105,191 15.87 % For capital adequacy purposes 29,783 4.50 29,826 4.50 To be well capitalized 43,020 6.50 43,082 6.50 Tier I capital (to risk weighted assets) Actual $ 100,265 15.15 % $ 105,191 15.87 % For capital adequacy purposes 39,711 6.00 39,768 6.00 To be well capitalized 52,947 8.00 53,024 8.00 Tier I capital (to average assets) Actual $ 100,265 10.55 % $ 105,191 11.01 % For capital adequacy purposes 38,030 4.00 38,221 4.00 To be well capitalized 47,538 5.00 47,776 5.00 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stock Based Compensation | |
Schedule of transactions regarding the options under the plan | Options Weighted Weighted Average Outstanding at December 31, 2016 248,075 $ 16.50 5.56 Granted — — Merger related options 73,051 19.61 Exercised (18,895 ) 16.50 Forfeited — — 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 Exercisable at December 31, 2017 302,231 $ 17.25 Exercisable at December 31, 2018 266,695 $ 17.12 |
Schedule of transactions regarding restricted stock under the Plan | Number of Weighted Non-vested shares at December 31, 2016 19,860 $ 16.50 Granted 2,424 29.60 Vested (22,284 ) 17.92 Forfeited — — Non-vested shares at December 31, 2017 — $ — Granted 250 31.10 Vested — — Forfeited — — Non-vested shares at December 31, 2018 250 $ 31.10 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Defined Contribution Plan [Abstract] | |
Schedule of change in the plan assets and the projected benefit obligations | December 31 2018 2017 Change in projected benefit obligation: Benefit obligation at beginning of year $ 4,168 $ 4,780 Interest cost 131 175 Settlement loss (gain) 11 (28 ) Actuarial gain (312 ) (133 ) Benefits paid (36 ) (30 ) Settlement payments (525 ) (596 ) Projected benefit obligation at end of year 3,437 4,168 Change in plan assets: Fair value of plan assets at beginning of year 3,564 3,683 Actual return on plan assets (99 ) 497 Employer contribution — 15 Benefits paid (36 ) (30 ) Administrative expenses (21 ) (5 ) Settlement payments (525 ) (596 ) Fair value of plan assets at end of year 2,883 3,564 Funded status $ (554 ) $ (604 ) Amounts recognized in accumulated other comprehensive income consist of: Unrecognized actuarial loss $ (400 ) $ (397 ) Total $ (400 ) $ (397 ) |
Schedule of net periodic pension (benefit) cost | Years Ended December 31 2018 2017 Interest Cost $ 131 $ 175 Expected return on plan assets (162 ) (200 ) Amortization of net loss 10 96 Settlement obligation 61 72 Net periodic pension cost $ 40 $ 143 |
Schedule estimated net loss and prior service cost of accumulated other comprehensive income (loss) into the net periodic benefit cost | December 31 2018 2017 Net loss $ 9 $ 10 Total $ 9 $ 10 |
Schedule of weighted-average assumptions used to determine benefit obligations | The weighted-average assumptions used to determine benefit obligations at December 31, 2018 and December 31, 2017 were as follows: December 31 2018 2017 Discount rate 4.00 % 3.40 % The weighted-average assumptions used to determine net periodic benefit cost for years ended December 31, 2018 and December 31, 2017 are as follows: December 31 2018 2017 Discount rate 4.00 % 3.40 % |
Schedule of plan assets of weighted-average asset allocations | December 31 Asset Category 2018 2017 Cash and Cash Equivalents 2.89 % 0.28 % Equity Mutual Funds 37.88 71.13 Bond Mutual Funds 59.23 28.59 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, 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 December 31, 2017: Cash and Cash Equivalents $ 10 $ — $ — $ 10 Domestic Stock Funds 2,040 — — 2,040 International Stock Funds 495 — — 495 Domestic Bond Funds 929 — — 929 International Bond Funds 90 — — 90 Total assets at fair value $ 3,564 $ — $ — $ 3,564 |
Schedule of benefit payments that reflect expected future service | Year Ended December 31, Plan Benefits 2019 $ 674 2020 195 2021 146 2022 152 2023 141 2024 – 2028 848 Total $ 2,156 |
Financial Instruments With Of_2
Financial Instruments With Off-Balance Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments with Off Balance Sheet Risk [Abstract] | |
Schedule of financial instruments with off-balance sheet risk | December 31 2018 2017 One-to-four family and construction: Loan commitments $ 872 $ 510 Undisbursed home equity lines of credit 34,485 30,335 Undisbursed funds – construction loans in process 6,129 7,109 Commerical loan commitments 67,240 52,749 Standby letters of credit 4,202 1,961 Other 24,251 24,037 Total $ 137,179 $ 116,701 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 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 December 31, 2017: Investment securities available for sale: U.S. government and agency obligations $ — $ 8,340 $ — $ 8,340 Corporate bonds — 2,272 — 2,272 Municipal obligations — 50,777 — 50,777 Equity securities 4,170 — — 4,170 Total investment securities available for sale 4,170 61,389 — 65,559 Mortgage-backed securities available for sale — 67,630 — 67,630 Total recurring fair value measurements $ 4,170 $ 129,019 $ — $ 133,189 |
Schedule of assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy | Level 1 Level 2 Level 3 Total December 31, 2018: Foreclosed real estate $ — $ — $ 486 $ 486 Total nonrecurring fair value measurements $ — $ — $ 486 $ 486 December 31, 2017: Foreclosed real estate $ — $ — $ 419 $ 419 Impaired loans — — 295 295 Total nonrecurring fair value measurements $ — $ — $ 714 $ 714 |
Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs | Quantitative Information about Level 3 Fair Value Measurements December 31 Valuation Unobservable Range 2018 2017 Foreclosed real estate $ 486 $ 419 Appraisal of collateral (1) Appraisal adjustments (2) 0% to 30% (17%) Liquidation expenses (2) 0% to 15% (11%) Impaired loans $ ---- $ 295 Fair value of collateral (1),(3) Appraisal adjustments (2) 0% to 20% (20%) Liquidation expenses (2) 0% to 10% (6%) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. (3) Includes qualitative adjustments by management and estimated liquidation expenses |
Schedule of carrying amount, fair value, and placement in the fair value hierarchy of the financial instruments | Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 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 stock (1) 7,827 7,827 7,827 — — Loans receivable (1)(4) 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, savings and club 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 — — December 31, 2017: Financial Instruments – Assets: Cash on hand and due from banks $ 3,523 $ 3,523 $ 3,523 $ — $ — Interest-earning deposits in other institutions 12,742 12,742 12,742 — — Certificate of deposit 749 749 749 — — Investment securities 65,559 65,559 4,170 61,389 — Mortgage-backed securities 67,630 67,630 — 67,630 — Federal Home Loan Bank stock 9,468 9,468 9,468 — — Loans receivable 747,035 747,371 — — 747,371 Bank-owned life insurance 22,040 22,040 22,040 — — Accrued interest receivable 2,657 2,657 2,657 — — Financial Instruments – Liabilities: Demand, savings and club accounts $ 482,902 $ 482,902 $ 482,902 $ — $ — Certificate deposit accounts 211,944 211,454 — — 211,454 Federal Home Loan Bank short-term borrowings 27,021 27,021 27,021 — — Federal Home Loan Bank advances 107,652 107,223 — — 107,223 Securities sold under agreements to repurchase 4,240 4,240 4,240 — — Accrued interest payable 993 993 993 — — (1) The financial instrument is carried at amortized cost at December 31, 2018. (2) The financial instrument is carried at fair value through other comprehensive income at December 31, 2018. (3) The financial instrument is carried at fair value through net income at December 31, 2018. (4) In accordance with the prospective adoption of ASU 2016-01, the fair value of loans as of December 31, 2018 was measured using an exit price notion. The fair value of loans as of December 31, 2017 was measured using an entry price notion. |
Parent Only Financial Informa_2
Parent Only Financial Information (Tables) - Standard AVB Financial Corp. | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Balance Sheet Statements, Captions [Line Items] | |
Schedule of Statement of Financial Condition | Statement of Financial Condition (Dollars in thousands) December 31 2018 2017 Assets Cash $ 1,421 $ 980 Interest-earning deposits with other institutions 47 473 Cash and cash equivalents 1,468 1,453 Equity securities 1,022 2,451 Accrued interest receivable and other assets 1,047 1,208 Investment in subsidiary 134,451 128,904 Total Assets $ 137,988 $ 134,016 Liabilities and Stockholders’ Equity Accrued interest payable and other liabilities $ 98 $ 44 Stockholders’ equity 137,890 133,972 Total Liabilities and Stockholders’ Equity $ 137,988 $ 134,016 |
Schedule of Statement of Operations | Statement of Operations (Dollars in thousands) Years Ended December 31 2018 2017 Income Dividends from subsidiary $ 2,000 $ 2,000 Interest income 62 60 Gain (loss) on sale of investments 394 (56 ) Net equity securities fair value adjustment losses (468 ) — Other income — 1 Total Income 1,988 2,005 Operating expenses 259 499 Total Expense 259 499 Income before taxes 1,729 1,506 Credit for income taxes (70 ) (304 ) Income before equity in undistributed net income of subsidiaries 1,799 1,810 Equity in undistributed income of Standard Bank 7,002 2,515 $ 8,801 $ 4,325 |
Schedule of Statement of Cash Flows | Statement of Cash Flows (Dollars in thousands) Years Ended December 31 2018 2017 Net income $ 8,801 $ 4,325 Adjustments to reconcile net income to net cash provided by operating activities: Net (gain) loss on sale of equity securities (394 ) 56 Net equity securities fair value adjustment losses 468 — Net change in other assets and liabilities 215 (103 ) Equity in undistributed income of subsidiaries (7,002 ) (2,515 ) Net cash provided by operating activities 2,088 1,763 Investing Activities: Proceeds from sale of equtiy securities 1,900 601 Purchases of equity securities (546 ) (318 ) Cash and cash equialents acquired — 408 Capital contribution to subsidiaries — (57,672 ) Net cash (used for) provided by investing activities 1,354 (56,981 ) Financing activities: Proceeds from exercise of stock options 648 311 Proceeds from stock issuance related to merger — 57,672 Stock compensation expense 1 529 ESOP expense 440 403 Stock repurchases (428 ) (161 ) Dividends paid (4,088 ) (3,312 ) Net cash provided by (used for) financing activities (3,427 ) 55,442 Net change in cash and cash equivalents 15 224 Cash and cash equivalents at the beginning of the year 1,453 1,229 Cash and cash equivalents at the end of the year $ 1,468 $ 1,453 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income | |
Schedule of changes in accumulated other comprehensive income (loss) by component | Unrealized Gains on Unrecognized Total Balance as of December 31, 2016 $ (32 ) $ (745 ) $ (777 ) Other comprehensive income before reclassification 519 373 892 Amount reclassified from accumulated other comprehensive income 212 111 323 Total other comprehensive income 731 484 1,215 Reclassification of certain income tax effects from accumulated other comprehensive income 141 (51 ) 90 Balance as of December 31, 2017 $ 840 $ (312 ) $ 528 Other comprehensive income before reclassification (1,540 ) 15 (1,525 ) Amount reclassified from accumulated other comprehensive loss 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 ) |
Schedule of significant amounts reclassified out of accumulated other comprehensive income | Amount Reclassified Affected Line on the 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: 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 December 31, 2017: Unrealized losses on available for sale securities $ 323 Net losses on sales of securities (111 ) Income tax expense 212 Net of tax Amortization of defined benefit items: 96 Other operating expenses Distribution settlement 72 Other operating expenses (57 ) Income tax expense 111 Net of tax Total reclassification for the period $ 323 Net income |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition [Abstract] | |
Schedule of noninterest income, segregated by revenue | Year Ended December 31, 2018 2017 Noninterest income In scope of Topic 606: Service charges on deposit accounts $ 2,900 $ 2,510 Investment management fees 644 412 Noninterest income (in-scope of Topic 606) 3,544 2,922 Noninterest income (out-of-scope of Topic 606) 803 621 Total noninterest income $ 4,347 $ 3,543 |
Merger with Allegheny Valley _2
Merger with Allegheny Valley Bancorp, Inc. (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of merger with Allegheny Valley | Purchase Price Consideration in Common Stock AVLY common shares settled for stock 1,040,924 Exchange Ratio 2.083 Standard AVB Financial Corp. shares issued 2,168,097 Value assigned to Standard AVB Financial common share $ 26.60 Purchase price per share $ 55.41 Purchase price assigned AVLY common shares exchanged for Standard AVB Financial Corp. $ 57,672 Net Assets Acquired: AVLY shareholders’ equity 48,398 AVLY Goodwill (8,144 ) Total tangible equity 40,254 Adjustments to reflect assets acquired at fair value: Loans Interest rate (861 ) General Credit (3,851 ) Specific Credit-non amortizing (2,467 ) Elimination of existing loan ALLL 3,886 Certificates of Deposit Yield Premium (902 ) Core Deposit Intangible 4,116 Fixed assets 384 Deferred Tax Asset (103 ) 40,456 Goodwill resulting from the merger $ 17,216 |
Schedule of condensed statement reflects the values assigned to Allegheny Valley | Total Purchase Price $ 57,672 Net Assets Acquired: Cash 9,611 Securities available for sale 95,919 Loan 311,736 Premises 4,434 Accrued Interest receivable 1,144 Bank-owned life insurance 6,486 Deferred tax assets — Core deposit intangible 4,116 Other assets 7,481 Time deposits (70,422 ) Deposits other than time deposits (263,522 ) Borrowings (64,624 ) Accrued interest payable and other liabilities (1,903 ) 40,456 Goodwill resulting from the AVLY merger $ 17,216 |
Schedule of estimated future amortization expense | 2019 628 2020 472 2021 352 2022 325 2023 325 2024 325 2025 81 $ 2,508 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Net income available to common stockholders | $ 8,801 | $ 4,325 |
Basic EPS: | ||
Weighted average shares outstanding | 4,634,003 | 4,021,942 |
Basic EPS | $ 1.90 | $ 1.08 |
Diluted EPS: | ||
Weighted average shares outstanding | 4,634,003 | 4,021,942 |
Diluted effect of common stock equivalents | 51,041 | 105,376 |
Total diluted weighted average shares outstanding | 4,685,044 | 4,127,318 |
Diluted EPS (in dollars per share) | $ 1.88 | $ 1.05 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Detail Textuals) | 1 Months Ended | 12 Months Ended | ||
Jul. 25, 2012$ / shares | Dec. 31, 2018USD ($)lease_agreement$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016$ / sharesshares | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Amortization period of intangible assets | 8 years | |||
Core deposit intangible | $ 2,508,000 | $ 3,344,000 | ||
Accumulated amortization | 1,600,000 | 772,000 | ||
Advertising expense | 289,000 | 127,000 | ||
One-time cumulative effect adjustment | $ 416,000 | $ 90,000 | ||
Number of Lease agreement | lease_agreement | 4 | |||
Amount for right-of-use assets and corresponding lease liabilities expect to recognize in the first quarter of 2019 | $ 1,100,000 | |||
ASU 2016-01 | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
One-time cumulative effect adjustment | $ 416,000 | |||
Stock options | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of options to purchase common stock outstanding | shares | 266,695 | 302,231 | 248,075 | |
Average exercise price of options outstanding | $ / shares | $ 17.12 | $ 17.25 | $ 16.50 | |
Grant price of unvested restricted stock | $ / shares | $ 1.52 | |||
Restricted stock | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of unvested restricted stock | shares | 250 |
Investment Securities - Debt se
Investment Securities - Debt securities, available for sale (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Amortized Cost | $ 66,140 | |
Gross Unrealized Gains | ||
Gross Unrealized Gains | 514 | |
Gross Unrealized Losses | ||
Gross Unrealized Losses | (485) | |
Fair Value | ||
Fair Value | 66,169 | |
U.S. government and agency obligations | ||
Amortized Cost | ||
Beyond 1 year but within 5 years | 7,428 | $ 7,400 |
Beyond 5 years but within 10 years | 940 | 934 |
Gross Unrealized Gains | ||
Beyond 1 year but within 5 years | 0 | 4 |
Beyond 5 years but within 10 years | 0 | 10 |
Gross Unrealized Losses | ||
Beyond 1 year but within 5 years | (81) | (8) |
Beyond 5 years but within 10 years | (17) | 0 |
Fair Value | ||
Beyond 1 year but within 5 years | 7,347 | 7,396 |
Beyond 5 years but within 10 years | 923 | 944 |
Corporate bonds | ||
Amortized Cost | ||
Within 1 year | 1,758 | |
Beyond 1 year but within 5 years | 1,472 | 2,276 |
Beyond 5 years but within 10 years | 996 | |
Gross Unrealized Gains | ||
Within 1 year | 0 | |
Beyond 1 year but within 5 years | 2 | 14 |
Beyond 5 years but within 10 years | 0 | |
Gross Unrealized Losses | ||
Within 1 year | (15) | |
Beyond 1 year but within 5 years | (10) | (18) |
Beyond 5 years but within 10 years | (2) | |
Fair Value | ||
Within 1 year | 1,743 | |
Beyond 1 year but within 5 years | 1,464 | 2,272 |
Beyond 5 years but within 10 years | 994 | |
Municipal obligations | ||
Amortized Cost | ||
Beyond 1 year but within 5 years | 6,658 | 8,702 |
Beyond 5 years but within 10 years | 22,384 | 25,803 |
Beyond 10 years | 24,504 | 15,483 |
Gross Unrealized Gains | ||
Beyond 1 year but within 5 years | 298 | 441 |
Beyond 5 years but within 10 years | 132 | 339 |
Beyond 10 years | 82 | 129 |
Gross Unrealized Losses | ||
Beyond 1 year but within 5 years | 0 | 0 |
Beyond 5 years but within 10 years | (81) | (21) |
Beyond 10 years | (279) | (99) |
Fair Value | ||
Beyond 1 year but within 5 years | 6,956 | 9,143 |
Beyond 5 years but within 10 years | 22,435 | 26,121 |
Beyond 10 years | $ 24,307 | $ 15,513 |
Investment Securities - Equity
Investment Securities - Equity securities, available for sale (Details 1) $ in Thousands | Dec. 31, 2017USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Equity securities, Amortized Cost | $ 3,647 |
Equity securities, Gross Unrealized Gains | 557 |
Equity securities, Gross Unrealized Losses | (34) |
Equity securities, Fair Value | $ 4,170 |
Investment Securities - Investm
Investment Securities - Investment securities, available for sale (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Available for sale, debt and equity securities: | ||
Amortized Cost | $ 64,245 | |
Gross Unrealized Gains | 1,494 | |
Gross Unrealized Losses | (180) | |
Fair Value | $ 66,169 | $ 65,559 |
Investment Securities - Fair va
Investment Securities - Fair value and gross unrealized losses on available for sale debt securities (Details 3) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
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 | $ 11,539 | |
Less than 12 Months, Gross Unrealized Losses | (67) | |
12 Months or More, Fair Value | 21,743 | |
12 Months or More, Gross Unrealized Losses | (418) | |
Total, Fair Value | 33,282 | |
Total, Gross Unrealized Losses | (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 | $ 5,924 |
Less than 12 Months, Gross Unrealized Losses | 0 | (8) |
12 Months or More, Fair Value | 8,270 | 0 |
12 Months or More, Gross Unrealized Losses | (98) | 0 |
Total, Fair Value | 8,270 | 5,924 |
Total, Gross Unrealized Losses | (98) | (8) |
Corporate bonds | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 1,490 | 751 |
Less than 12 Months, Gross Unrealized Losses | (12) | (3) |
12 Months or More, Fair Value | 1,743 | 1,001 |
12 Months or More, Gross Unrealized Losses | (15) | (15) |
Total, Fair Value | 3,233 | 1,752 |
Total, Gross Unrealized Losses | (27) | (18) |
Municipal obligations | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 10,049 | 4,911 |
Less than 12 Months, Gross Unrealized Losses | (55) | (19) |
12 Months or More, Fair Value | 11,730 | 4,491 |
12 Months or More, Gross Unrealized Losses | (305) | (101) |
Total, Fair Value | 21,779 | 9,402 |
Total, Gross Unrealized Losses | $ (360) | $ (120) |
Investment Securities - Fair _2
Investment Securities - Fair value and gross unrealized losses on available for sale equity securities (Details 4) $ in Thousands | Dec. 31, 2017USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Equity securities, Less than 12 months, Fair Value | $ 857 |
Equity securities, Less than 12 months, Unrealized Losses | (34) |
Equity securities, 12 months or more, Fair Value | 0 |
Equity securities, 12 months or more, Unrealized Losses | 0 |
Equity securities, Total, Fair Value | 857 |
Equity securities, Total, Unrealized Losses | $ (34) |
Investment Securities - Fair _3
Investment Securities - Fair value and gross unrealized losses on available for sale investment securities (Details 5) $ in Thousands | Dec. 31, 2017USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Less than 12 months, Fair Value | $ 12,443 |
Less than 12 months, Unrealized Losses | (64) |
12 months or more, Fair Value | 5,492 |
12 months or more, Unrealized Losses | (116) |
Total, Fair Value | 17,935 |
Total, Unrealized Losses | $ (180) |
Investment Securities (Details
Investment Securities (Details 6) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |
Net Interest Income after Provision for Loan Losses | $ 484 |
Net gains realized on the sale of equity securities during the year | 394 |
Losses recognized on equity securities during the period | $ (90) |
Investment Securities (Detail T
Investment Securities (Detail Textuals) | 12 Months Ended | |
Dec. 31, 2018USD ($)Security | Dec. 31, 2017USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||
Gains on sales of investment securities | $ 1,000 | $ 72,000 |
Losses on sales of investment securities | 18,000 | 308,000 |
Proceeds from sales of investment securities | 4,830,000 | 27,123,000 |
Gains on sales of equity securities | 427,000 | |
Losses on sales of equity securities | 33,000 | |
Proceeds from sale of equity | 1,900,000 | |
Investment securities available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities pledged to secure repurchase agreements and public funds accounts | $ 11,600,000 | $ 16,400,000 |
Number of securities held in an unrealized loss position | Security | 48 |
Mortgage-Backed Securities (Det
Mortgage-Backed Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Mortgage-backed securities | ||
Amortized Cost | $ 66,140 | |
Gross Unrealized Gains | 514 | |
Gross Unrealized Losses | (485) | |
Fair Value | 66,169 | |
Mortgage-backed securities available for sale | ||
Mortgage-backed securities | ||
Amortized Cost | 83,219 | $ 67,884 |
Gross Unrealized Gains | 19 | 130 |
Gross Unrealized Losses | (1,444) | (384) |
Fair Value | 81,794 | 67,630 |
Government pass-throughs, Ginnie Mae | ||
Mortgage-backed securities | ||
Amortized Cost | 19,213 | 17,416 |
Gross Unrealized Gains | 1 | 6 |
Gross Unrealized Losses | (324) | (131) |
Fair Value | 18,890 | 17,291 |
Government pass-throughs, Fannie Mae | ||
Mortgage-backed securities | ||
Amortized Cost | 13,952 | 16,078 |
Gross Unrealized Gains | 7 | 75 |
Gross Unrealized Losses | (339) | (8) |
Fair Value | 13,620 | 16,145 |
Government pass-throughs, Freddie Mac | ||
Mortgage-backed securities | ||
Amortized Cost | 12,662 | 12,510 |
Gross Unrealized Gains | 0 | 41 |
Gross Unrealized Losses | (252) | (14) |
Fair Value | 12,410 | 12,537 |
Private pass-throughs | ||
Mortgage-backed securities | ||
Amortized Cost | 25,064 | 14,603 |
Gross Unrealized Gains | 0 | 8 |
Gross Unrealized Losses | (349) | (113) |
Fair Value | 24,715 | 14,498 |
Collateralized mortgage obligations | ||
Mortgage-backed securities | ||
Amortized Cost | 12,328 | 7,277 |
Gross Unrealized Gains | 11 | 0 |
Gross Unrealized Losses | (180) | (118) |
Fair Value | $ 12,159 | $ 7,159 |
Mortgage-Backed Securities (D_2
Mortgage-Backed Securities (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized cost by contractual maturity: | ||
Amortized Cost | $ 66,140 | |
Fair value by contractual maturity: | ||
Fair Value | 66,169 | |
Mortgage-backed securities | ||
Amortized cost by contractual maturity: | ||
Amortized Cost | 83,219 | $ 67,884 |
Fair value by contractual maturity: | ||
Fair Value | $ 81,794 | $ 67,630 |
Mortgage-Backed Securities (D_3
Mortgage-Backed Securities (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Mortgage-backed securities available for sale | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | $ 24,460 | $ 39,934 |
Less than 12 Months, Gross Unrealized Losses | (226) | (301) |
12 Months or More, Fair Value | 53,052 | 3,782 |
12 Months or More, Gross Unrealized Losses | (1,218) | (83) |
Total, Fair Value | 77,512 | 43,716 |
Total, Gross Unrealized Losses | (1,444) | (384) |
Government pass-throughs, Ginnie Mae | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 4,850 | 12,231 |
Less than 12 Months, Gross Unrealized Losses | (26) | (87) |
12 Months or More, Fair Value | 13,794 | 2,591 |
12 Months or More, Gross Unrealized Losses | (298) | (44) |
Total, Fair Value | 18,644 | 14,822 |
Total, Gross Unrealized Losses | (324) | (131) |
Government pass-throughs, Fannie Mae | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 403 | 3,227 |
Less than 12 Months, Gross Unrealized Losses | (2) | (8) |
12 Months or More, Fair Value | 12,152 | 0 |
12 Months or More, Gross Unrealized Losses | (337) | 0 |
Total, Fair Value | 12,555 | 3,227 |
Total, Gross Unrealized Losses | (339) | (8) |
Government pass-throughs, Freddie Mac | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 680 | 5,949 |
Less than 12 Months, Gross Unrealized Losses | (24) | (14) |
12 Months or More, Fair Value | 11,699 | 0 |
12 Months or More, Gross Unrealized Losses | (228) | 0 |
Total, Fair Value | 12,379 | 5,949 |
Total, Gross Unrealized Losses | (252) | (14) |
Private pass-throughs | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 14,436 | 12,559 |
Less than 12 Months, Gross Unrealized Losses | (134) | (113) |
12 Months or More, Fair Value | 9,359 | 0 |
12 Months or More, Gross Unrealized Losses | (215) | 0 |
Total, Fair Value | 23,795 | 12,559 |
Total, Gross Unrealized Losses | (349) | (113) |
Collateralized mortgage obligations | ||
Securities in a continuous unrealized loss position presented by length of time | ||
Less than 12 Months, Fair Value | 4,091 | 5,968 |
Less than 12 Months, Gross Unrealized Losses | (40) | (79) |
12 Months or More, Fair Value | 6,048 | 1,191 |
12 Months or More, Gross Unrealized Losses | (140) | (39) |
Total, Fair Value | 10,139 | 7,159 |
Total, Gross Unrealized Losses | $ (180) | $ (118) |
Mortgage-Backed Securities (D_4
Mortgage-Backed Securities (Detail Textuals) | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)Security | |
Mortgage-backed securities | ||
Gains on sales of mortgage-backed securities | $ 88,000 | |
Loss on sales of mortgage-backed securities | 175,000 | |
Total proceeds from sales | 25,853,000 | |
Mortgage-backed securities available for sale | ||
Mortgage-backed securities | ||
Number of mortgage-backed securities held in an unrealized loss position | Security | 70 | |
Carrying amount of mortgage-backed securities pledged to secure repurchase agreements and public fund accounts | $ 25,500,000 | $ 10,400,000 |
Loans Receivable (Details)
Loans Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | $ 733,396 | $ 750,867 |
Individually evaluated for impairment | 0 | 295 |
Total loans before allowance for loan losses | 733,396 | 751,162 |
Real Estate Loans | One-to-four-family Residential and Construction | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 253,913 | 261,715 |
Individually evaluated for impairment | 0 | 0 |
Total loans before allowance for loan losses | 253,913 | 261,715 |
Real Estate Loans | Commercial Real Estate | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 308,775 | 300,702 |
Individually evaluated for impairment | 0 | 295 |
Total loans before allowance for loan losses | 308,775 | 300,997 |
Real Estate Loans | Home Equity Loans and Lines of Credit | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 123,373 | 130,915 |
Individually evaluated for impairment | 0 | 0 |
Total loans before allowance for loan losses | 123,373 | 130,915 |
Commercial Business | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 46,196 | 56,122 |
Individually evaluated for impairment | 0 | 0 |
Total loans before allowance for loan losses | 46,196 | 56,122 |
Other Loans | ||
Primary segments of the loan portfolio | ||
Collectively evaluated for impairment | 1,139 | 1,413 |
Individually evaluated for impairment | 0 | 0 |
Total loans before allowance for loan losses | $ 1,139 | $ 1,413 |
Loans Receivable (Details 2)
Loans Receivable (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Apr. 07, 2017 |
Receivables [Abstract] | ||
Contractually required principal and interest | $ 2,467 | $ 2,500 |
Non-accretable discount | (2,467) | |
Expected cash flows | 0 | |
Accretable discount | 0 | |
Estimated fair value | $ 0 |
Loans Receivable (Details 3)
Loans Receivable (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Impaired Loans | ||
Impaired Loans With Allowance, Recorded Investment | $ 0 | $ 0 |
Impaired Loans With Allowance, Related Allowance | 0 | 0 |
Impaired loans without allowance recorded investment | 0 | 295 |
Total Impaired Loans, Recorded Investment | 0 | 295 |
Total Impaired Loans, Unpaid Principal Balance | 0 | 295 |
Average investment in impaired loans | 236 | 861 |
Interest income recognized on impaired loans | 0 | 0 |
Real Estate Loans | Commercial real estate | ||
Impaired Loans | ||
Impaired Loans With Allowance, Recorded Investment | 0 | 0 |
Impaired Loans With Allowance, Related Allowance | 0 | 0 |
Impaired loans without allowance recorded investment | 0 | 295 |
Total Impaired Loans, Recorded Investment | 0 | 295 |
Total Impaired Loans, Unpaid Principal Balance | 0 | 295 |
Average investment in impaired loans | $ 236 | $ 861 |
Loans Receivable (Details 4)
Loans Receivable (Details 4) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | $ 733,396 | $ 751,162 |
Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 725,422 | 742,679 |
Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 5,145 | 5,527 |
Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 2,829 | 2,956 |
Doubtful | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 0 | 0 |
Real Estate Loans | One-to-four-family residential and construction | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 253,913 | 261,715 |
Real Estate Loans | One-to-four-family residential and construction | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 252,186 | 259,463 |
Real Estate Loans | One-to-four-family residential and construction | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 0 | 211 |
Real Estate Loans | One-to-four-family residential and construction | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 1,727 | 2,041 |
Real Estate Loans | One-to-four-family residential and construction | Doubtful | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 0 | 0 |
Real Estate Loans | Commercial real estate | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 308,775 | 300,997 |
Real Estate Loans | Commercial real estate | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 303,161 | 295,164 |
Real Estate Loans | Commercial real estate | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 4,851 | 5,077 |
Real Estate Loans | Commercial real estate | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 763 | 756 |
Real Estate Loans | Commercial real estate | Doubtful | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 0 | 0 |
Real Estate Loans | Home equity loans and lines of credit | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 123,373 | 130,915 |
Real Estate Loans | Home equity loans and lines of credit | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 123,053 | 130,763 |
Real Estate Loans | Home equity loans and lines of credit | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 62 | 0 |
Real Estate Loans | Home equity loans and lines of credit | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 258 | 152 |
Real Estate Loans | Home equity loans and lines of credit | Doubtful | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 0 | 0 |
Commercial business loans | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 46,196 | 56,122 |
Commercial business loans | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 45,902 | 55,878 |
Commercial business loans | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 232 | 239 |
Commercial business loans | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 62 | 5 |
Commercial business loans | Doubtful | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 0 | 0 |
Other loans | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 1,139 | 1,413 |
Other loans | Pass | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 1,120 | 1,411 |
Other loans | Special Mention | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 0 | 0 |
Other loans | Substandard | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | 19 | 2 |
Other loans | Doubtful | ||
Classes of loan portfolio summarized within internal risk rating system | ||
Loans | $ 0 | $ 0 |
Loans Receivable (Details 5)
Loans Receivable (Details 5) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | $ 727,905 | $ 745,883 |
Non-Accrual | 2,727 | 2,907 |
90 Days Past Due and Accruing | 3 | 19 |
Total loans before allowance for loan losses | 733,396 | 751,162 |
30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 2,571 | 1,899 |
60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 190 | 454 |
Real Estate Loans | One-to-four-family Residential and Construction | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 250,691 | 258,202 |
Non-Accrual | 1,727 | 1,899 |
90 Days Past Due and Accruing | 0 | 0 |
Total loans before allowance for loan losses | 253,913 | 261,715 |
Real Estate Loans | One-to-four-family Residential and Construction | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 1,341 | 1,342 |
Real Estate Loans | One-to-four-family Residential and Construction | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 154 | 272 |
Real Estate Loans | Commercial real estate | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 307,740 | 299,888 |
Non-Accrual | 661 | 756 |
90 Days Past Due and Accruing | 0 | 0 |
Total loans before allowance for loan losses | 308,775 | 300,997 |
Real Estate Loans | Commercial real estate | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 374 | 338 |
Real Estate Loans | Commercial real estate | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 0 | 15 |
Real Estate Loans | Home equity loans and lines of credit | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 122,929 | 130,383 |
Non-Accrual | 258 | 244 |
90 Days Past Due and Accruing | 0 | 0 |
Total loans before allowance for loan losses | 123,373 | 130,915 |
Real Estate Loans | Home equity loans and lines of credit | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 163 | 122 |
Real Estate Loans | Home equity loans and lines of credit | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 23 | 166 |
Commercial business loans | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 45,434 | 56,034 |
Non-Accrual | 62 | 5 |
90 Days Past Due and Accruing | 0 | 0 |
Total loans before allowance for loan losses | 46,196 | 56,122 |
Commercial business loans | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 690 | 83 |
Commercial business loans | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 10 | 0 |
Other loans | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 1,111 | 1,376 |
Non-Accrual | 19 | 3 |
90 Days Past Due and Accruing | 3 | 19 |
Total loans before allowance for loan losses | 1,139 | 1,413 |
Other loans | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | 3 | 14 |
Other loans | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Past Due | $ 3 | $ 1 |
Loans Receivable (Details 6)
Loans Receivable (Details 6) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for loan losses | ||
Balance at the beginning of the period | $ 4,127 | $ 3,837 |
Charge-offs | (372) | (266) |
Recoveries | 87 | 39 |
Provision | 572 | 517 |
Balance at the end of the period | 4,414 | 4,127 |
Evaluated for Impairment: | ||
Individually | 0 | 0 |
Collectively | 4,414 | 4,127 |
Balance at the end of the period | 4,414 | 4,127 |
Real Estate Loans | One-to-four-family Residential and Construction | ||
Allowance for loan losses | ||
Balance at the beginning of the period | 1,384 | 1,280 |
Charge-offs | 0 | (185) |
Recoveries | 69 | 28 |
Provision | (402) | 261 |
Balance at the end of the period | 1,051 | 1,384 |
Evaluated for Impairment: | ||
Individually | 0 | 0 |
Collectively | 1,051 | 1,384 |
Balance at the end of the period | 1,051 | 1,384 |
Real Estate Loans | Commercial Real Estate | ||
Allowance for loan losses | ||
Balance at the beginning of the period | 2,003 | 1,787 |
Charge-offs | (80) | 0 |
Recoveries | 2 | 1 |
Provision | 836 | 215 |
Balance at the end of the period | 2,761 | 2,003 |
Evaluated for Impairment: | ||
Individually | 0 | 0 |
Collectively | 2,761 | 2,003 |
Balance at the end of the period | 2,761 | 2,003 |
Real Estate Loans | Home Equity Loans and Lines of Credit | ||
Allowance for loan losses | ||
Balance at the beginning of the period | 400 | 547 |
Charge-offs | 0 | (51) |
Recoveries | 11 | 0 |
Provision | (99) | (96) |
Balance at the end of the period | 312 | 400 |
Evaluated for Impairment: | ||
Individually | 0 | 0 |
Collectively | 312 | 400 |
Balance at the end of the period | 312 | 400 |
Commercial Business | ||
Allowance for loan losses | ||
Balance at the beginning of the period | 333 | 211 |
Charge-offs | (244) | (1) |
Recoveries | 5 | 3 |
Provision | 192 | 120 |
Balance at the end of the period | 286 | 333 |
Evaluated for Impairment: | ||
Individually | 0 | 0 |
Collectively | 286 | 333 |
Balance at the end of the period | 286 | 333 |
Other Loans | ||
Allowance for loan losses | ||
Balance at the beginning of the period | 7 | 12 |
Charge-offs | (48) | (29) |
Recoveries | 0 | 7 |
Provision | 45 | 17 |
Balance at the end of the period | 4 | 7 |
Evaluated for Impairment: | ||
Individually | 0 | 0 |
Collectively | 4 | 7 |
Balance at the end of the period | $ 4 | $ 7 |
Loans Receivable (Detail Textua
Loans Receivable (Detail Textuals) | 12 Months Ended | ||
Dec. 31, 2018USD ($)SecurityForeclosure_properties | Dec. 31, 2017USD ($)Foreclosure_properties | Apr. 07, 2017USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | |||
Deferred loan costs of loans receivable | $ 226,000 | $ 276,000 | |
Acquisition of Allegheny Valley | $ 2,500,000 | ||
Recorded specific credit fair value adjustment | 2,467,000 | $ 2,500,000 | |
Outstanding balance of loans acquired from Allegheny Valley | 0 | 0 | |
Carrying value of loans acquired from Allegheny Valley | 0 | ||
Possible impairment of past due troubled debt restructuring | $ 200,000 | ||
Past due period for troubled debt restructuring | 90 days | ||
Threshold limit of watch list loans for external loan review | $ 100,000 | ||
Foreclosed assets acquired in settlement of loans | 486,000 | 419,000 | |
Initiated formal foreclosure procedures | 507,000 | ||
Loans receivable, net of allowance for loan losses | 728,982,000 | 747,035,000 | |
Net mortgage servicing rights | $ 454,000 | $ 487,000 | |
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 | ||
Residential property | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Number of foreclosure properties | Foreclosure_properties | 2 | 3 | |
Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Number of foreclosure properties | Foreclosure_properties | 1 | ||
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] | |||
Loans receivable, net of allowance for loan losses | $ 66,300,000 | $ 68,700,000 |
Office Properties and Equipme_3
Office Properties and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 19,176 | $ 19,054 |
Less accumulated depreciation | (11,447) | (10,877) |
Plus projects in progress | 65 | 14 |
Premises and equipment, net | 7,794 | 8,191 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 3,152 | 3,152 |
Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 10,475 | 10,433 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 871 | 862 |
Furnitures, fixtures, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 4,678 | $ 4,607 |
Office Properties and Equipme_4
Office Properties and Equipment (Details 1) $ in Thousands | Dec. 31, 2017USD ($) |
Years Ending December 31: | |
2019 | $ 407 |
2020 | 278 |
2021 | 30 |
Total | $ 715 |
Office Properties and Equipme_5
Office Properties and Equipment (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 771,000 | $ 658,000 |
Rent expense | $ 407,000 | $ 313,000 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Noninterest-bearing demand | $ 135,708 | $ 135,786 |
Interest-bearing demand | 100,163 | 96,987 |
Savings | 147,695 | 150,762 |
Money market | 87,611 | 99,367 |
Time deposits | 246,697 | 211,944 |
Total Deposits | $ 717,874 | $ 694,846 |
Deposits (Details 1)
Deposits (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
One year or less | $ 86,458 | |
Over one through two years | 76,313 | |
Over two through three years | 29,167 | |
Over three through four years | 14,011 | |
Over four through five years | 31,283 | |
Over five years | 9,465 | |
Total | $ 246,697 | $ 211,944 |
Deposits (Details 2)
Deposits (Details 2) $ in Thousands | Dec. 31, 2018USD ($) |
Deposits [Abstract] | |
Three months or less | $ 14,665 |
Over three to six months | 10,976 |
Over six to twelve months | 13,001 |
Over twelve months | 69,425 |
Total | $ 108,067 |
Deposits (Detail Textuals)
Deposits (Detail Textuals) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Aggregated amount certificates of deposit in denominations of $250,000 or more | $ 35.2 | $ 30.9 |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Advances from Federal Home Loan Banks [Abstract] | ||
Balance | $ 4,524 | $ 27,021 |
Average balance outstanding during the period | 12,696 | 38,565 |
Maximum amount outstanding at any month-end | $ 51,500 | $ 72,926 |
Weighted average interest rate at period end | 2.64% | 1.54% |
Average interest rate during the period | 1.79% | 1.22% |
Federal Home Loan Bank Advanc_4
Federal Home Loan Bank Advances (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Advances from FHLB | $ 104,963 | $ 107,652 |
June 11, 2018 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Jun. 11, 2018 | |
Interest Rate | 0.92% | |
Advances from FHLB | $ 0 | 750 |
June 22, 2018 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Jun. 22, 2018 | |
Interest Rate | 1.26% | |
Advances from FHLB | $ 0 | 1,805 |
November 13, 2018 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Nov. 13, 2018 | |
Interest Rate | 1.65% | |
Advances from FHLB | $ 0 | 3,000 |
January 22, 2019 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Jan. 22, 2019 | |
Interest Rate | 1.25% | |
Advances from FHLB | $ 125 | 1,608 |
June 24, 2019 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Jan. 24, 2019 | |
Interest Rate | 1.63% | |
Advances from FHLB | $ 1,805 | 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% | |
Advances from FHLB | $ 6,438 | 14,904 |
November 12, 2019 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Nov. 12, 2019 | |
Interest Rate | 1.91% | |
Advances from FHLB | $ 3,151 | 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% | |
Advances from FHLB | $ 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% | |
Advances from FHLB | $ 6,309 | 0 |
July 29, 2020 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Jul. 29, 2020 | |
Interest Rate | 1.91% | |
Advances from FHLB | $ 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% | |
Advances from FHLB | $ 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% | |
Advances from FHLB | $ 9,726 | 15,157 |
December 9, 2020 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Dec. 9, 2020 | |
Interest Rate | 1.92% | |
Advances from FHLB | $ 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% | |
Advances from FHLB | $ 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% | |
Advances from FHLB | $ 3,365 | 3,365 |
March 08, 2021 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Mar. 8, 2021 | |
Interest Rate | 2.54% | |
Advances from FHLB | $ 7,639 | 0 |
August 18, 2021 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Aug. 18, 2021 | |
Interest Rate | 1.80% | |
Advances from FHLB | $ 2,289 | 3,119 |
September 8, 2021 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Sep. 8, 2021 | |
Interest Rate | 1.77% | |
Advances from FHLB | $ 11,469 | 15,503 |
November 15, 2021 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Nov. 15, 2021 | |
Interest Rate | 3.23% | |
Advances from FHLB | $ 3,000 | 0 |
September 8, 2022 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Sep. 8, 2022 | |
Interest Rate | 1.86% | |
Advances from FHLB | $ 7,587 | 9,522 |
December 9, 2022 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | Dec. 9, 2022 | |
Interest Rate | 2.26% | |
Advances from FHLB | $ 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% | |
Advances from FHLB | $ 8,097 | 10,000 |
May 30, 2023 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Stated Maturity | May 23, 2023 | |
Interest Rate | 2.93% | |
Advances from FHLB | $ 10,000 | $ 0 |
Federal Home Loan Bank Advanc_5
Federal Home Loan Bank Advances (Detail Textuals) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Advances from Federal Home Loan Banks [Abstract] | ||
Maximum borrowing capacity under revolving line of credit | $ 416,600 | |
FHLB borrowing capacity on short term basis | 207,100 | |
FHLB outstanding balance | $ 4,524 | $ 27,021 |
Interest rate | 2.64% | 1.54% |
Securities Sold Under Agreeme_3
Securities Sold Under Agreement to Repurchase (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total collateral pledged | $ 10,855 | $ 7,370 |
Gross amount of recognized liabilities for securities sold under agreements to repurchase | 2,137 | 4,240 |
Amounts related to agreements not included in offsetting disclosures above | 8,718 | 3,130 |
U.S. government and agency obligations | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total collateral pledged | 6,031 | 1,643 |
Municipal obligations | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total collateral pledged | 4,824 | 5,727 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total collateral pledged | 10,855 | 7,370 |
Overnight and Continuous | U.S. government and agency obligations | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total collateral pledged | 6,031 | 1,643 |
Overnight and Continuous | Municipal obligations | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total collateral pledged | 4,824 | 5,727 |
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 (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | ||
Balance | $ 2,137 | $ 4,240 |
Average balance outstanding during the period | 4,782 | 3,373 |
Maximum amount outstanding at any month-end | $ 8,251 | $ 6,274 |
Weighted average interest rate at period end | 0.19% | 0.12% |
Average interest rate during the period | 0.23% | 0.12% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Federal: | ||
Current | $ 2,001 | $ 1,460 |
Deferred | (288) | 259 |
Change in corporate tax rate | 0 | 387 |
Total Federal | 1,713 | 2,106 |
State, current | $ 535 | $ 356 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Expected federal tax rate, Amount | $ 2,321 | $ 2,307 |
Expected federal tax rate, % of Pre-tax Income | 21.00% | 34.00% |
State taxes, net of federal tax benefit, Amount | $ 421 | $ 235 |
State taxes, net of federal tax benefit, % of Pre-tax Income | 3.80% | 3.50% |
Nontaxable interest income, Amount | $ (377) | $ (403) |
Nontaxable interest income, % of Pre-tax Income | (3.40%) | (5.90%) |
Bank-owned life insurance, Amount | $ (112) | $ (173) |
Bank-owned life insurance, % of Pre-tax Income | 1.00% | 2.60% |
Merger expenses, Amount | $ 0 | $ 35 |
Merger expenses, % of Pre-tax Income | 0.00% | 0.50% |
Change in corporate tax rate | $ 0 | $ 387 |
Change in corporate tax rate, % of Pre-tax Income | 0.00% | 5.70% |
Other items, net, Amount | $ (5) | $ 74 |
Other items, net, % of Pre-tax Income | (0.10%) | 1.10% |
Total Income Tax Expense | $ 2,248 | $ 2,462 |
Effective Tax Rate, % of Pre-tax Income | 20.30% | 36.30% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets: | ||
Allowance for loan losses | $ 927 | $ 867 |
Employee benefits | 290 | 195 |
Impairment reserves | 11 | 17 |
Purchase accounting | 0 | 70 |
Net unrealized losses on securities | 195 | 0 |
Capital loss carryforward | 19 | 0 |
Other, net | 148 | 120 |
Total Deferred Tax Assets | 1,590 | 1,269 |
Deferred Tax Liabilities: | ||
Net unrealized gains on securities | 0 | (223) |
Premises and equipment | (214) | (292) |
Purchase accounting | (14) | 0 |
Other, net | (46) | (121) |
Total Deferred Tax Liabilities | (274) | (636) |
Net Deferred Tax Assets | $ 1,316 | $ 633 |
Income Taxes (Detail Textuals)
Income Taxes (Detail Textuals) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax [Line Items] | ||
US corporate income tax rate | 21.00% | 34.00% |
Carrying value of net deferred tax assets | $ 387,000 | |
Thrift Institutions tax | 3.80% | 3.50% |
Previous year | ||
Income Tax [Line Items] | ||
US corporate income tax rate | 35.00% | |
Current year | ||
Income Tax [Line Items] | ||
US corporate income tax rate | 21.00% | |
Pennsylvania | ||
Income Tax [Line Items] | ||
Thrift Institutions tax | 11.50% | |
Maryland | ||
Income Tax [Line Items] | ||
Thrift Institutions tax | 8.25% | |
West Virginia Corporation | ||
Income Tax [Line Items] | ||
Thrift Institutions tax | 6.50% |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Total capital (to risk weighted assets) | ||
Total capital (to risk weighted assets) Actual Amount | $ 115,390 | $ 109,553 |
Total capital (to risk weighted assets) Actual Ratio | 17.38% | 16.53% |
Total capital (to risk weighted assets) For capital adequacy purposes Amount | $ 53,127 | $ 53,024 |
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 | $ 66,409 | $ 66,280 |
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 | $ 110,981 | $ 105,191 |
Common equity tier I (to risk weighted assets) Actual Ratio | 16.71% | 15.87% |
Common equity tier I (to risk weighted assets) For capital adequacy purposes Amount | $ 29,884 | $ 29,826 |
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 | $ 43,166 | $ 43,082 |
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 | $ 110,981 | $ 105,191 |
Tier I capital (to risk weighted assets) Actual Ratio | 16.71% | 15.87% |
Tier I capital (to risk weighted assets) For capital adequacy purposes Amount | $ 39,845 | $ 39,768 |
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 | $ 53,127 | $ 53,024 |
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 | $ 110,981 | $ 105,191 |
Tier I capital (to average assets) Actual Ratio | 11.71% | 11.01% |
Tier I capital (to average assets) For capital adequacy purposes Amount | $ 37,921 | $ 38,221 |
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 | $ 47,401 | $ 47,776 |
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 | $ 111,857 | $ 104,414 |
Total capital (to risk weighted assets) Actual Ratio | 16.85% | 15.78% |
Total capital (to risk weighted assets) For capital adequacy purposes Amount | $ 53,108 | $ 52,947 |
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 | $ 66,384 | $ 66,184 |
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 | $ 107,451 | $ 100,265 |
Common equity tier I (to risk weighted assets) Actual Ratio | 16.19% | 15.15% |
Common equity tier I (to risk weighted assets) For capital adequacy purposes Amount | $ 29,873 | $ 29,783 |
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 | $ 43,150 | $ 43,020 |
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 | $ 107,451 | $ 100,265 |
Tier I capital (to risk weighted assets) Actual Ratio | 16.19% | 15.15% |
Tier I capital (to risk weighted assets) For capital adequacy purposes Amount | $ 39,831 | $ 39,711 |
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 | $ 53,108 | $ 52,947 |
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 | $ 107,451 | $ 100,265 |
Tier I capital (to average assets) Actual Ratio | 11.33% | 10.55% |
Tier I capital (to average assets) For capital adequacy purposes Amount | $ 37,947 | $ 38,030 |
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 | $ 47,434 | $ 47,538 |
Tier I capital (to average assets) To be well capitalized Ratio | 5.00% | 5.00% |
Regulatory Capital Requiremen_4
Regulatory Capital Requirements (Detail Textuals) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Regulatory Capital Requirements [Abstract] | ||
Federal reserve | $ 11.5 | $ 12.3 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - $ / shares | 1 Months Ended | 12 Months Ended | ||
Jul. 25, 2012 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Options | ||||
Exercised | (35,536) | (18,895) | ||
Weighted Average Exercise Price | ||||
Granted | $ 16.50 | |||
Stock options | ||||
Options | ||||
Outstanding at December 31 (in shares) | 302,231 | 248,075 | ||
Granted | 0 | 0 | ||
Merger related options | 73,051 | |||
Exercised | (35,536) | (18,895) | ||
Forfeited | 0 | 0 | ||
Outstanding at December 31 (in shares) | 266,695 | 302,231 | 248,075 | |
Exercisable at December 31 (in shares) | 266,695 | 302,231 | ||
Weighted Average Exercise Price | ||||
Outstanding at beginning (in dollars per share) | $ 17.25 | $ 16.50 | ||
Granted | 0 | 0 | ||
Merger related options | 19.61 | |||
Exercise price | 18.25 | 16.50 | ||
Forfeited | 0 | 0 | ||
Outstanding at ending (in dollars per share) | 17.12 | 17.25 | $ 16.50 | |
Exercisable at ending (in dollars per share) | $ 17.12 | $ 17.25 | ||
Weighted Average Remaining Contractual Term | 3 years 3 months 26 days | 4 years 1 month 10 days | 5 years 6 months 22 days |
Stock Based Compensation (Det_2
Stock Based Compensation (Details 1) - Restricted stock - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Restricted Shares | ||
Non-vested shares at beginning (in shares) | 0 | 19,860 |
Granted | 250 | 2,424 |
Vested | 0 | (22,284) |
Forfeited | 0 | 0 |
Non-vested shares at ending (in shares) | 250 | 0 |
Weighted Average Grant Date Price Per Share | ||
Non-vested shares at the beginning of the period (in dollars per share) | $ 0 | $ 16.50 |
Granted | 31.10 | 29.60 |
Vested | 0 | 17.92 |
Forfeited | 0 | 0 |
Non-vested shares at the end of the period (in dollars per share) | $ 31.10 | $ 0 |
Stock Based Compensation (Det_3
Stock Based Compensation (Detail Textuals) - USD ($) | Apr. 10, 2017 | Apr. 07, 2017 | Sep. 28, 2018 | Dec. 19, 2017 | Jul. 25, 2012 | Dec. 31, 2018 | Dec. 31, 2017 |
Stock Based Compensation | |||||||
Aggregate number of shares reserved for issuance under the 2012 Equity Incentive Plan | 486,943 | ||||||
Compensation expense | $ 440,000 | $ 403,000 | |||||
Number of additional shares issued | 77,634 | ||||||
Number of shares expired | 249 | ||||||
Common stock price (in dollars per share) | $ 16.50 | ||||||
Unrecognized compensation expense | $ 6,803 | ||||||
Stock options | |||||||
Stock Based Compensation | |||||||
Aggregate number of shares reserved for issuance under the 2012 Equity Incentive Plan | 347,817 | ||||||
Vesting period | 5 years | ||||||
Vesting percentage per year | 20.00% | ||||||
Contractual life of stock options | 10 years | ||||||
Estimated fair value of stock options before income taxes | $ 423,000 | ||||||
Weighted-average fair value of stock options granted (in dollars per share) | $ 1.52 | ||||||
Expected life | 7 years 6 months | ||||||
Expected dividend rate (as a percent) | 1.13% | ||||||
Risk-free interest rate (as a percent) | 1.10% | ||||||
Expected volatility (as a percent) | 9.50% | ||||||
Compensation expense | 44,000 | ||||||
Share available issued under the stock | 75,742 | ||||||
Tax benefit recorded related to compensation expense | $ 5,000 | ||||||
Granted | 0 | 0 | |||||
Common stock price (in dollars per share) | $ 0 | $ 0 | |||||
Stock options | Directors and officers | |||||||
Stock Based Compensation | |||||||
Granted | 278,075 | ||||||
Restricted stock | |||||||
Stock Based Compensation | |||||||
Aggregate number of shares reserved for issuance under the 2012 Equity Incentive Plan | 139,126 | ||||||
Vesting period | 2 years | ||||||
Compensation expense | $ 972 | $ 485,000 | |||||
Share available issued under the stock | 250 | 25,402 | |||||
Tax benefit recorded related to compensation expense | $ 91,000 | ||||||
Restricted stock | Directors and officers | |||||||
Stock Based Compensation | |||||||
Granted | 2,424 | 111,300 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Shareholders Equity And Share Based Payments Disclosure [Abstract] | ||
Number of years of service to be completed to participate in the plan | 1 year | |
Employees vesting rate in ESOP account after two years of service (as a percent) | 20.00% | |
Employees vesting rate in ESOP account after three years of service (as a percent) | 40.00% | |
Employees vesting rate in ESOP account after four years of service (as a percent) | 60.00% | |
Employees vesting rate in ESOP account after five years of service (as a percent) | 80.00% | |
Employees vesting rate in ESOP account after six years of service (as a percent) | 100.00% | |
Stock purchased by the ESOP, funded by loan (in shares) | 278,254 | |
Compensation expense related to the ESOP | $ 440 | $ 403 |
Total shares held by ESOP | 254,610 | 260,935 |
Unallocated shares | 173,458 | 187,912 |
Fair market value of the unallocated ESOP shares | $ 5,200 | $ 7,800 |
Number of shares released for allocation | 14,454 | 14,455 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Change in projected benefit obligation: | ||
Interest Cost | $ (131) | $ (175) |
Settlement payments | 61 | 72 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 3,564 | |
Fair value of plan assets at end of year | 2,883 | 3,564 |
Pension plan | ||
Change in projected benefit obligation: | ||
Benefit obligation at beginning of year | 4,168 | 4,780 |
Interest Cost | 131 | 175 |
Settlement loss (gain) | 11 | (28) |
Actuarial gain | (312) | (133) |
Benefits paid | (36) | (30) |
Settlement payments | (525) | (596) |
Projected benefit obligation at end of year | 3,437 | 4,168 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 3,564 | 3,683 |
Actual return on plan assets | (99) | 497 |
Employer contribution | 0 | 15 |
Benefits paid | (36) | (30) |
Administrative expenses | (21) | (5) |
Settlement payments | (525) | (596) |
Fair value of plan assets at end of year | 2,883 | 3,564 |
Funded status | (554) | (604) |
Amounts recognized in accumulated other comprehensive income (loss) consist of: | ||
Unrecognized actuarial loss | (400) | (397) |
Total | $ (400) | $ (397) |
Employee Benefit Plans (Detai_2
Employee Benefit Plans (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan [Abstract] | ||
Interest cost | $ 131 | $ 175 |
Expected return on plan assets | (162) | (200) |
Amortization of net loss | 10 | 96 |
Settlement payments | 61 | 72 |
Net periodic pension benefit | $ (40) | $ (143) |
Employee Benefit Plans (Detai_3
Employee Benefit Plans (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Total | $ (1,344) | $ 528 |
Accumulated Other Comprehensive Income (Loss) | ||
Net loss | 9 | 10 |
Total | $ 9 | $ 10 |
Employee Benefit Plans (Detai_4
Employee Benefit Plans (Details 3) | Dec. 31, 2018 | Dec. 31, 2017 |
Pension plan | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Discount rate | 4.00% | 3.40% |
Employee Benefit Plans (Detai_5
Employee Benefit Plans (Details 4) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Pension plan | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Discount rate | 4.00% | 3.40% |
Employee Benefit Plans (Detai_6
Employee Benefit Plans (Details 5) | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 100.00% | 100.00% |
Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 2.89% | 0.28% |
Equity Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 37.88% | 71.13% |
Bond Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 59.23% | 28.59% |
Employee Benefit Plans (Detai_7
Employee Benefit Plans (Details 6) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | $ 2,883 | $ 3,564 |
Cash and Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 83 | 10 |
Domestic Stock Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 896 | 2,040 |
International Stock Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 196 | 495 |
Domestic Bond Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 1,708 | 929 |
International Bond Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 90 | |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 2,883 | 3,564 |
Level 1 | Cash and Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 83 | 10 |
Level 1 | Domestic Stock Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 896 | 2,040 |
Level 1 | International Stock Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 196 | 495 |
Level 1 | Domestic Bond Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 1,708 | (929) |
Level 1 | International Bond Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 90 | |
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 2 | International Bond Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 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 |
Level 3 | International Bond Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | $ 0 |
Employee Benefit Plans (Detai_8
Employee Benefit Plans (Details 7) - Defined benefit plan $ in Thousands | Dec. 31, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2019 | $ 674 |
2020 | 195 |
2021 | 146 |
2022 | 152 |
2023 | 141 |
2024 - 2028 | 848 |
Total | $ 2,156 |
Employee Benefit Plans (Detail
Employee Benefit Plans (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Multiemployer Plans [Line Items] | ||
Defined benefit pension accumulated obligation | $ 3,400 | $ 4,200 |
Interest cost | $ 131 | $ 175 |
Long-term rate of return on plan assets assumed percentage | 5.00% | 5.00% |
Supplemental Executive Retirement Plan ("SERP") | ||
Multiemployer Plans [Line Items] | ||
Service cost | $ 114 | |
Interest cost | $ 4 | |
Equity Mutual Funds | ||
Multiemployer Plans [Line Items] | ||
Defined benefit pension plan percent | 50.00% | 60.00% |
Bond Mutual Funds | ||
Multiemployer Plans [Line Items] | ||
Defined benefit pension plan percent | 50.00% | 40.00% |
Multiemployer 401k plans | ||
Multiemployer Plans [Line Items] | ||
Employees' contributions matched by the employer, as a percentage of employees' pretax salaries | 4.00% | |
Expense recognized | $ 306 | $ 268 |
Financial Instruments With Of_3
Financial Instruments With Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk, amount | $ 137,179 | $ 116,701 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk, amount | 4,202 | 1,961 |
Commercial loan commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk, amount | 67,240 | 52,749 |
Other | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk, amount | 24,251 | 24,037 |
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 | 872 | 510 |
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 | 34,485 | 30,335 |
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 | $ 6,129 | $ 7,109 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets measured at fair value | |||
Total investment securities available for sale | $ 66,169 | $ 65,559 | |
Equity securities available for sale | 4,170 | ||
Mortgage-backed securities available for sale | 81,794 | 67,630 | |
Level 1 | |||
Assets measured at fair value | |||
Total investment securities available for sale | 0 | [1] | 4,170 |
Equity securities available for sale | 2,725 | [2] | |
Mortgage-backed securities available for sale | 0 | [1] | 0 |
Level 2 | |||
Assets measured at fair value | |||
Total investment securities available for sale | 66,169 | [1] | 61,389 |
Equity securities available for sale | 0 | [2] | |
Mortgage-backed securities available for sale | 81,794 | [1] | 67,630 |
Level 3 | |||
Assets measured at fair value | |||
Total investment securities available for sale | 0 | [1] | 0 |
Equity securities available for sale | 0 | [2] | |
Mortgage-backed securities available for sale | 0 | [1] | 0 |
Recurring basis | |||
Assets measured at fair value | |||
Total investment securities available for sale | 66,169 | 65,559 | |
Equity securities available for sale | 2,725 | 4,170 | |
Mortgage-backed securities available for sale | 81,794 | 67,630 | |
Total recurring fair value measurements | 150,688 | 133,189 | |
Recurring basis | U.S. government and agency obligations | |||
Assets measured at fair value | |||
Total investment securities available for sale | 8,270 | 8,340 | |
Recurring basis | Corporate bonds | |||
Assets measured at fair value | |||
Total investment securities available for sale | 4,201 | 2,272 | |
Recurring basis | Municipal obligations | |||
Assets measured at fair value | |||
Total investment securities available for sale | 53,698 | 50,777 | |
Recurring basis | Level 1 | |||
Assets measured at fair value | |||
Total investment securities available for sale | 0 | 4,170 | |
Equity securities available for sale | 2,725 | 4,170 | |
Mortgage-backed securities available for sale | 0 | 0 | |
Total recurring fair value measurements | 2,725 | 4,170 | |
Recurring basis | Level 1 | U.S. government and agency obligations | |||
Assets measured at fair value | |||
Total investment securities available for sale | 0 | 0 | |
Recurring basis | Level 1 | Corporate bonds | |||
Assets measured at fair value | |||
Total investment securities available for sale | 0 | 0 | |
Recurring basis | Level 1 | Municipal obligations | |||
Assets measured at fair value | |||
Total investment securities available for sale | 0 | 0 | |
Recurring basis | Level 2 | |||
Assets measured at fair value | |||
Total investment securities available for sale | 66,169 | 61,389 | |
Equity securities available for sale | 0 | 0 | |
Mortgage-backed securities available for sale | 81,794 | 67,630 | |
Total recurring fair value measurements | 147,963 | 129,019 | |
Recurring basis | Level 2 | U.S. government and agency obligations | |||
Assets measured at fair value | |||
Total investment securities available for sale | 8,270 | 8,340 | |
Recurring basis | Level 2 | Corporate bonds | |||
Assets measured at fair value | |||
Total investment securities available for sale | 4,201 | 2,272 | |
Recurring basis | Level 2 | Municipal obligations | |||
Assets measured at fair value | |||
Total investment securities available for sale | 53,698 | 50,777 | |
Recurring basis | Level 3 | |||
Assets measured at fair value | |||
Total investment securities available for sale | 0 | 0 | |
Equity securities available for sale | 0 | 0 | |
Mortgage-backed securities available for sale | 0 | 0 | |
Total recurring fair value measurements | 0 | 0 | |
Recurring basis | Level 3 | U.S. government and agency obligations | |||
Assets measured at fair value | |||
Total investment securities available for sale | 0 | 0 | |
Recurring basis | Level 3 | Corporate bonds | |||
Assets measured at fair value | |||
Total investment securities available for sale | 0 | 0 | |
Recurring basis | Level 3 | Municipal obligations | |||
Assets measured at fair value | |||
Total investment securities available for sale | $ 0 | $ 0 | |
[1] | The financial instrument is carried at fair value through other comprehensive income at December 31, 2018. | ||
[2] | The financial instrument is carried at fair value through net income at December 31, 2018. |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities (Details 1) - Nonrecurring basis - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | $ 486 | $ 714 |
Level 1 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 0 | 0 |
Level 2 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 0 | 0 |
Level 3 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 486 | 714 |
Foreclosed real estate | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 486 | 419 |
Foreclosed real estate | Level 1 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 0 | 0 |
Foreclosed real estate | Level 2 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 0 | 0 |
Foreclosed real estate | Level 3 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | $ 486 | 419 |
Impaired loans | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 295 | |
Impaired loans | Level 1 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 0 | |
Impaired loans | Level 2 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | 0 | |
Impaired loans | Level 3 | ||
Assets measured at fair value | ||
Assets measured at fair value on nonrecurring basis | $ 295 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities (Details 2) - Nonrecurring basis - Level 3 $ in Thousands | Dec. 31, 2018USD ($)Percent | Dec. 31, 2017USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Foreclosed real estate | $ | $ 486 | $ 419 | |
Impaired loans | $ | $ 295 | ||
Appraisal Of Collateral | Appraisal adjustments | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Foreclosed real estate, unobservable input (in percent) | [1],[2] | 0 | |
Appraisal Of Collateral | Appraisal adjustments | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Foreclosed real estate, unobservable input (in percent) | [1],[2] | 30 | |
Appraisal Of Collateral | Appraisal adjustments | Weighted average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Foreclosed real estate, unobservable input (in percent) | [1],[2] | 17 | |
Fair Value Of Collateral | Appraisal adjustments | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, unobservable input (in percent) | [1],[2],[3] | 0 | |
Fair Value Of Collateral | Appraisal adjustments | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, unobservable input (in percent) | [1],[2],[3] | 20 | |
Fair Value Of Collateral | Appraisal adjustments | Weighted average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, unobservable input (in percent) | [1],[2],[3] | 20 | |
Liquidation expenses | Appraisal adjustments | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Foreclosed real estate, unobservable input (in percent) | [1] | 0 | |
Impaired loans, unobservable input (in percent) | [1] | 0 | |
Liquidation expenses | Appraisal adjustments | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Foreclosed real estate, unobservable input (in percent) | [1] | 15 | |
Impaired loans, unobservable input (in percent) | [1] | 10 | |
Liquidation expenses | Appraisal adjustments | Weighted average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Foreclosed real estate, unobservable input (in percent) | [1] | 11 | |
Impaired loans, unobservable input (in percent) | [1] | 6 | |
[1] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses.The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. | ||
[2] | Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. | ||
[3] | Includes qualitative adjustments by management and estimated liquidation expenses. |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities (Details 3) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial Instruments - Assets: | |||
Cash on hand and due from banks | $ 3,371 | $ 3,523 | |
Interest-earning deposits in other institutions | 12,836 | 12,742 | |
Investment securities | 66,169 | 65,559 | |
Equity Securities | 4,170 | ||
Mortgage-backed securities | 81,794 | 67,630 | |
Bank-owned life insurance | 22,572 | 22,040 | |
Financial Instruments - Liabilities: | |||
Demand, savings and club accounts | 471,177 | 482,902 | |
Certificate deposit accounts | 246,697 | 211,944 | |
Federal Home Loan Bank short-term borrowings | 4,524 | 27,021 | |
Carrying Amount | |||
Financial Instruments - Assets: | |||
Cash on hand and due from banks | 3,371 | [1] | 3,523 |
Interest-earning deposits in other institutions | 12,836 | [1] | 12,742 |
Certificate of deposit | 249 | [1] | 749 |
Investment securities | 66,169 | [2] | 65,559 |
Equity Securities | 2,725 | [3] | |
Mortgage-backed securities | 81,794 | [2] | 67,630 |
Federal Home Loan Bank stock | 7,827 | [1] | 9,468 |
Loans receivable | 728,982 | [1],[4] | 747,035 |
Bank-owned life insurance | 22,572 | [1] | 22,040 |
Accrued interest receivable | 2,823 | [1] | 2,657 |
Financial Instruments - Liabilities: | |||
Demand, savings and club accounts | 471,177 | [1] | 482,902 |
Certificate deposit accounts | 246,697 | [1] | 211,944 |
Federal Home Loan Bank short-term borrowings | 4,524 | [1] | 27,021 |
Federal Home Loan Bank advances | 104,963 | [1] | 107,652 |
Securities sold under agreements to repurchase | 2,137 | [1] | 4,240 |
Accrued interest payable | 1,154 | [1] | 993 |
Estimated Fair Value | |||
Financial Instruments - Assets: | |||
Cash on hand and due from banks | 3,371 | [1] | 3,523 |
Interest-earning deposits in other institutions | 12,836 | [1] | 12,742 |
Certificate of deposit | 249 | [1] | 749 |
Investment securities | 66,169 | [2] | 65,559 |
Equity Securities | 2,725 | [3] | |
Mortgage-backed securities | 81,794 | [2] | 67,630 |
Federal Home Loan Bank stock | 7,827 | [1] | 9,468 |
Loans receivable | 717,491 | [1],[4] | 747,371 |
Bank-owned life insurance | 22,572 | [1] | 22,040 |
Accrued interest receivable | 2,823 | [1] | 2,657 |
Financial Instruments - Liabilities: | |||
Demand, savings and club accounts | 471,177 | [1] | 482,902 |
Certificate deposit accounts | 245,740 | [1] | 211,454 |
Federal Home Loan Bank short-term borrowings | 4,524 | [1] | 27,021 |
Federal Home Loan Bank advances | 104,345 | [1] | 107,223 |
Securities sold under agreements to repurchase | 2,137 | [1] | 4,240 |
Accrued interest payable | 1,154 | [1] | 993 |
Level 1 | |||
Financial Instruments - Assets: | |||
Cash on hand and due from banks | 3,371 | [1] | 3,523 |
Interest-earning deposits in other institutions | 12,836 | [1] | 12,742 |
Certificate of deposit | 249 | [1] | 749 |
Investment securities | 0 | [2] | 4,170 |
Equity Securities | 2,725 | [3] | |
Mortgage-backed securities | 0 | [2] | 0 |
Federal Home Loan Bank stock | 7,827 | [1] | 9,468 |
Loans receivable | 0 | [1],[4] | 0 |
Bank-owned life insurance | 22,572 | [1] | 22,040 |
Accrued interest receivable | 2,823 | [1] | 2,657 |
Financial Instruments - Liabilities: | |||
Demand, savings and club accounts | 471,177 | [1] | 482,902 |
Certificate deposit accounts | 0 | [1] | 0 |
Federal Home Loan Bank short-term borrowings | 4,524 | [1] | 27,021 |
Federal Home Loan Bank advances | 0 | [1] | 0 |
Securities sold under agreements to repurchase | 2,137 | [1] | 4,240 |
Accrued interest payable | 1,154 | [1] | 993 |
Level 2 | |||
Financial Instruments - Assets: | |||
Cash on hand and due from banks | 0 | [1] | 0 |
Interest-earning deposits in other institutions | 0 | [1] | 0 |
Certificate of deposit | 0 | [1] | 0 |
Investment securities | 66,169 | [2] | 61,389 |
Equity Securities | 0 | [3] | |
Mortgage-backed securities | 81,794 | [2] | 67,630 |
Federal Home Loan Bank stock | 0 | [1] | 0 |
Loans receivable | 0 | [1],[4] | 0 |
Bank-owned life insurance | 0 | [1] | 0 |
Accrued interest receivable | 0 | [1] | 0 |
Financial Instruments - Liabilities: | |||
Demand, savings and club accounts | 0 | [1] | 0 |
Certificate deposit accounts | 0 | [1] | 0 |
Federal Home Loan Bank short-term borrowings | 0 | [1] | 0 |
Federal Home Loan Bank advances | 0 | [1] | 0 |
Securities sold under agreements to repurchase | 0 | [1] | 0 |
Accrued interest payable | 0 | [1] | 0 |
Level 3 | |||
Financial Instruments - Assets: | |||
Cash on hand and due from banks | 0 | [1] | 0 |
Interest-earning deposits in other institutions | 0 | [1] | 0 |
Certificate of deposit | 0 | [1] | 0 |
Investment securities | 0 | [2] | 0 |
Equity Securities | 0 | [3] | |
Mortgage-backed securities | 0 | [2] | 0 |
Federal Home Loan Bank stock | 0 | [1] | 0 |
Loans receivable | 717,491 | [1],[4] | 747,371 |
Bank-owned life insurance | 0 | [1] | 0 |
Accrued interest receivable | 0 | [1] | 0 |
Financial Instruments - Liabilities: | |||
Demand, savings and club accounts | 0 | [1] | 0 |
Certificate deposit accounts | 245,740 | [1] | 211,454 |
Federal Home Loan Bank short-term borrowings | 0 | [1] | 0 |
Federal Home Loan Bank advances | 104,345 | [1] | 107,223 |
Securities sold under agreements to repurchase | 0 | [1] | 0 |
Accrued interest payable | $ 0 | [1] | $ 0 |
[1] | The financial instrument is carried at amortized cost at December 31, 2018. | ||
[2] | The financial instrument is carried at fair value through other comprehensive income at December 31, 2018. | ||
[3] | The financial instrument is carried at fair value through net income at December 31, 2018. | ||
[4] | In accordance with the prospective adoption of ASU 2016-01, the fair value of loans as of December 31, 2018 was measured using an exit price notion. The fair value of loans as of December 31, 2017 was measured using an entry price notion. |
Parent Only Financial Informa_3
Parent Only Financial Information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | |||
Interest-earning deposits with other institutions | $ 12,836 | $ 12,742 | |
Cash and Cash Equivalents | 16,207 | 16,265 | $ 10,520 |
Equity securities | 2,725 | ||
Accrued interest receivable and other assets | 8,647 | 6,064 | |
Total Assets | 971,796 | 972,600 | |
Liabilities and Stockholders' Equity | |||
Accrued interest payable and other liabilities | 4,363 | 4,087 | |
Stockholders' equity | 137,890 | 133,972 | 72,990 |
Total Liabilities and Stockholders' Equity | 971,796 | 972,600 | |
Standard AVB Financial Corp. | |||
Assets | |||
Cash | 1,421 | 980 | |
Interest-earning deposits with other institutions | 47 | 473 | |
Cash and Cash Equivalents | 1,468 | 1,453 | $ 1,229 |
Equity securities | 1,022 | 2,451 | |
Accrued interest receivable and other assets | 1,047 | 1,208 | |
Investment in subsidiary | 134,451 | 128,904 | |
Total Assets | 137,988 | 134,016 | |
Liabilities and Stockholders' Equity | |||
Accrued interest payable and other liabilities | 98 | 44 | |
Stockholders' equity | 137,890 | 133,972 | |
Total Liabilities and Stockholders' Equity | $ 137,988 | $ 134,016 |
Parent Only Financial Informa_4
Parent Only Financial Information (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Interest and Dividend Income, Operating [Abstract] | ||
Interest income | $ 29,341 | $ 25,480 |
Net equity securities fair value adjustment losses | 484 | |
Other income | 236 | 178 |
Total Income | 4,347 | 3,543 |
Operating expenses | 4,694 | 3,943 |
Total Expense | 22,067 | 21,719 |
Income before taxes | 11,049 | 6,787 |
Credit for income taxes | 2,248 | 2,462 |
Standard AVB Financial Corp. | ||
Interest and Dividend Income, Operating [Abstract] | ||
Dividends from subsidiary | 2,000 | 2,000 |
Interest income | 62 | 60 |
Gain (loss) on sale of investments | 394 | (56) |
Net equity securities fair value adjustment losses | (468) | 0 |
Other income | 0 | 1 |
Total Income | 1,988 | 2,005 |
Operating expenses | 259 | 499 |
Total Expense | 259 | 499 |
Income before taxes | 1,729 | 1,506 |
Credit for income taxes | (70) | (304) |
Income before equity in undistributed net income of subsidiaries | 1,799 | 1,810 |
Equity in undistributed income of Standard Bank | 7,002 | 2,515 |
Net income | $ 8,801 | $ 4,325 |
Parent Only Financial Informa_5
Parent Only Financial Information (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows From Operating Activities | ||
Net income | $ 8,801 | $ 4,325 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net equity securities fair value adjustment losses | (484) | |
Investing Activities: | ||
Cash and cash equivalents acquired | 9,611 | |
Financing activities: | ||
Proceeds from exercise of stock options | 648 | 311 |
Compensation expense related to the ESOP | 440 | 403 |
Stock repurchases | 428 | 161 |
Dividends paid | 4,088 | 3,312 |
Cash and Cash Equivalents-Beginning | 16,265 | 10,520 |
Cash and Cash Equivalents-Ending | 16,207 | 16,265 |
Standard AVB Financial Corp. | ||
Cash Flows From Operating Activities | ||
Net income | 8,801 | 4,325 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net (gain) loss on sale of equity securities | (394) | 56 |
Net equity securities fair value adjustment losses | 468 | 0 |
Net change in other assets and liabilities | 215 | (103) |
Equity in undistributed income of subsidiaries | (7,002) | (2,515) |
Net cash provided by operating activities | 2,088 | 1,763 |
Investing Activities: | ||
Proceeds from sale of equtiy securities | 1,900 | 601 |
Purchases of equity securities | (546) | (318) |
Cash and cash equivalents acquired | 0 | 408 |
Capital contribution to subsidiaries | 0 | (57,672) |
Net cash (used for) provided by investing activities | 1,354 | (56,981) |
Financing activities: | ||
Proceeds from exercise of stock options | 648 | 311 |
Proceeds from stock issuance related to merger | 0 | 57,672 |
Stock compensation expense | 1 | 529 |
Compensation expense related to the ESOP | 440 | 403 |
Stock repurchases | (428) | (161) |
Dividends paid | (4,088) | (3,312) |
Net cash provided by (used for) financing activities | (3,427) | 55,442 |
Net change in cash and cash equivalents | 15 | 224 |
Cash and Cash Equivalents-Beginning | 1,453 | 1,229 |
Cash and Cash Equivalents-Ending | $ 1,468 | $ 1,453 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in accumulated other comprehensive income by component | ||
Balance at the beginning of the period | $ 528 | |
Total other comprehensive (loss) income | (1,456) | $ 1,215 |
Balance at the end of the period | (1,344) | 528 |
Amount Reclassified from Accumulated Other Comprehensive Income | ||
Changes in accumulated other comprehensive income by component | ||
Balance at the beginning of the period | 528 | (777) |
Other comprehensive loss before reclassification | (1,525) | 892 |
Amount reclassified from accumulated other comprehensive income | 69 | 323 |
Total other comprehensive (loss) income | (1,456) | 1,215 |
Change in accounting principle for adoption of ASU 2016-01 | (416) | 90 |
Balance at the end of the period | (1,344) | 528 |
Amount Reclassified from Accumulated Other Comprehensive Income | Unrealized Gains on Available for Sale Securities | ||
Changes in accumulated other comprehensive income by component | ||
Balance at the beginning of the period | 840 | (32) |
Other comprehensive loss before reclassification | (1,540) | 519 |
Amount reclassified from accumulated other comprehensive income | 13 | 212 |
Total other comprehensive (loss) income | (1,527) | 731 |
Change in accounting principle for adoption of ASU 2016-01 | (416) | 141 |
Balance at the end of the period | (1,103) | 840 |
Amount Reclassified from Accumulated Other Comprehensive Income | Unrecognized Pension Costs | ||
Changes in accumulated other comprehensive income by component | ||
Balance at the beginning of the period | (312) | (745) |
Other comprehensive loss before reclassification | 15 | 373 |
Amount reclassified from accumulated other comprehensive income | 56 | 111 |
Total other comprehensive (loss) income | 71 | 484 |
Change in accounting principle for adoption of ASU 2016-01 | 0 | (51) |
Balance at the end of the period | $ (241) | $ (312) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net losses on sales of securities | $ (17) | $ (323) |
Other operating expenses | 4,694 | 3,943 |
Income tax expense | 2,248 | 2,462 |
Net income | 8,801 | 4,325 |
Amount Reclassified from Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net of tax | 69 | 323 |
Net income | 69 | 323 |
Amount Reclassified from Accumulated Other Comprehensive Income | Unrealized losses on available for sale securities | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net losses on sales of securities | 17 | 323 |
Income tax expense | (4) | (111) |
Net of tax | 13 | 212 |
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 | (15) | (57) |
Net of tax | 56 | 111 |
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 | 10 | 96 |
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 | $ 61 | $ 72 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Noninterest Income | ||
Noninterest income (in-scope of Topic 606) | $ 3,544 | $ 2,922 |
Noninterest income (out-of-scope of Topic 606) | 803 | 621 |
Total noninterest income | 4,347 | 3,543 |
Service charges on deposit accounts | ||
Noninterest Income | ||
Noninterest income (in-scope of Topic 606) | 2,900 | 2,510 |
Investment management fees | ||
Noninterest Income | ||
Noninterest income (in-scope of Topic 606) | $ 644 | $ 412 |
Merger with Allegheny Valley _3
Merger with Allegheny Valley Bancorp, Inc. (Details) $ / shares in Units, $ in Thousands | Apr. 07, 2017USD ($)$ / sharesshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2018USD ($) |
Purchase Price Consideration in Common Stock | |||
Standard AVB Financial Corp. shares issued | shares | 2,168,097 | ||
Loans | |||
Goodwill | $ 25,836 | $ 25,836 | |
Allegheny Valley | |||
Purchase Price Consideration in Common Stock | |||
AVLY common shares settled for stock | shares | 1,040,924 | ||
Exchange Ratio | 2.083 | ||
Standard AVB Financial Corp. shares issued | shares | 2,168,097 | ||
Value assigned to Standard AVB Financial common share | $ / shares | $ 26.60 | ||
Purchase price per share | $ / shares | $ 55.41 | ||
Purchase price assigned AVLY common shares exchanged for Standard AVB Financial Corp. | $ 57,672 | ||
Net Assets Acquired: | |||
AVLY shareholders' equity | 48,398 | ||
AVLY Goodwill | (8,144) | ||
Total tangible equity | 40,254 | ||
Loans | |||
Interest rate | (861) | ||
General Credit | (3,851) | ||
Specific Credit-non amortizing | (2,467) | ||
Elimination of existing loan ALLL | 3,886 | ||
Certificates of Deposit Yield Premium | (902) | ||
Core Deposit Intangible | 4,116 | ||
Fixed assets | 384 | ||
Deferred Tax Asset | (103) | ||
Adjustments to reflect assets acquired at fair value | 40,456 | ||
Goodwill | $ 17,216 |
Merger with Allegheny Valley _4
Merger with Allegheny Valley Bancorp, Inc. (Details 1) - USD ($) $ in Thousands | Apr. 07, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Net Assets Acquired: | |||
Goodwill | $ 25,836 | $ 25,836 | |
Allegheny Valley | |||
Business Acquisition [Line Items] | |||
Total Purchase Price | $ 57,672 | ||
Net Assets Acquired: | |||
Cash | 9,611 | ||
Securities available for sale | 95,919 | ||
Loan | 311,736 | ||
Premises | 4,434 | ||
Accrued Interest receivable | 1,144 | ||
Bank-owned life insurance | 6,486 | ||
Deferred tax assets | 0 | ||
Core deposit intangible | 4,116 | ||
Other assets | 7,481 | ||
Time deposits | (70,422) | ||
Deposits other than time deposits | (263,522) | ||
Borrowings | (64,624) | ||
Accrued interest payable and other liabilities | (1,903) | ||
Net assets | 40,456 | ||
Goodwill | $ 17,216 |
Merger with Allegheny Valley _5
Merger with Allegheny Valley Bancorp, Inc. (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||
Total | $ 2,508 | $ 3,344 |
Allegheny Valley | Core deposit intangible | ||
Business Acquisition [Line Items] | ||
2019 | 628 | |
2020 | 472 | |
2021 | 352 | |
2022 | 325 | |
2023 | 325 | |
2024 | 325 | |
2025 | 81 | |
Total | $ 2,508 |
Merger with Allegheny Valley _6
Merger with Allegheny Valley Bancorp, Inc. (Detail Textuals) - USD ($) $ / shares in Units, $ in Thousands | Apr. 07, 2017 | Dec. 31, 2017 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Standard AVB Financial Corp. shares issued | 2,168,097 | ||
Purchased credit impaired loans | $ 2,500 | ||
Goodwill | $ 25,836 | $ 25,836 | |
Core deposit intangible | 3,344 | 2,508 | |
Accumulated amortization of core deposit intangible | $ 772 | 1,600 | |
Allegheny Valley | |||
Business Acquisition [Line Items] | |||
Number of shares received under merger agreement | 2.083 | ||
Outstanding shares of Allegheny Valley common stock | 1,040,924 | ||
Standard AVB Financial Corp. shares issued | 2,168,097 | ||
Per share price for fractional shares | $ 26.60 | ||
Purchased credit impaired loans | $ 2,500 | ||
Percentage reserved for collection of principal and interest on loans | 100.00% | ||
Loan portfolio without evidence of deterioration | $ 316,400 | ||
Fair value of loan | 311,736 | ||
Interest rate adjustment | 861 | ||
General credit adjustment | 3,851 | ||
Goodwill and other intangible assets | 21,300 | ||
Goodwill | $ 17,216 | ||
Allegheny Valley | Core deposit intangible | |||
Business Acquisition [Line Items] | |||
Core deposit intangible | 2,508 | ||
Accumulated amortization of core deposit intangible | $ 1,600 |