10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2019

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission File No. 001-34893

Standard AVB Financial Corp.

(Exact Name of Registrant as Specified in Its Charter)

Maryland	27-3100949
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
2640 Monroeville Blvd. Monroeville, Pennsylvania	15146
(Address of Principal Executive Offices)	(Zip Code)

(412) 856-0363

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such requirements for the past 90 days.

YES       x          NO ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

YES      x          NO ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ¨	Accelerated filer  x
Non-accelerated filer  ¨	Smaller reporting company  x
	Emerging growth company  ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES     ¨          NO   x

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Yes     x          No  ¨

As of May 6, 2019, the registrant had 4,813,646 shares of common stock, $0.01 par value per share, outstanding.

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	STND	The NASDAQ Stock Market, LLC

Standard AVB Financial Corp.

Table of Contents 

Part I – Financial Information
ITEM 1.	Financial Statements (Unaudited)	2-26
	Consolidated Statements of Financial Condition as of March 31, 2019 and December 31, 2018
	Consolidated Statements of Income for the Three Months Ended March 31, 2019 and 2018
	Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2019 and 2018
	Consolidated Statement of Changes in Stockholders’ Equity for the Three Months Ended March 31, 2019 and 2018
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2019 and 2018
	Notes to Consolidated Statements
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27-32
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	32
ITEM 4.	Controls and Procedures	32-33
PART II – Other Information
ITEM 1.	Legal Proceedings	33
ITEM 1A.	Risk Factors	33
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
ITEM 3.	Defaults Upon Senior Securities	33
ITEM 4.	Mine Safety Disclosures	33
ITEM 5.	Other Information	33
ITEM 6.	Exhibits	34
	Signatures	35

EXPLANATORY NOTE

The unaudited consolidated financial statements and other financial information contained in this quarterly report on Form 10-Q should be read in conjunction with the audited financial statements of Standard AVB Financial Corp. at and for the year ended December 31, 2018 contained in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 18, 2019.

1

PART I - FINANCIAL INFORMATION

ITEM 1. Financial Statements

Standard AVB Financial Corp.

Consolidated Statements of Financial Condition

(Dollars in thousands, except per share data)

	March 31,
	2019			December 31,
	(Unaudited)			2018
ASSETS
Cash on hand and due from banks	$	3,201		$	3,371
Interest-earning deposits in other institutions		31,500			12,836
Cash and Cash Equivalents		34,701			16,207
Investment securities available for sale, at fair value		66,848			66,169
Equity securities, at fair value		2,752			2,725
Mortgage-backed securities available for sale, at fair value		87,771			81,794
Certificate of deposit		249			249
Federal Home Loan Bank and other restricted stock, at cost		7,463			7,900
Loans receivable, net of allowance for loan losses of $4,375 and $4,414		724,605			728,982
Loans held for sale		198			-
Foreclosed real estate		531			486
Office properties and equipment, net		8,835			7,794
Bank-owned life insurance		22,703			22,572
Goodwill		25,836			25,836
Core deposit intangible		2,315			2,508
Accrued interest receivable and other assets		4,943			8,574
TOTAL ASSETS	$	989,750		$	971,796
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand, savings and club accounts	$	496,515		$	471,177
Certificate accounts		246,907			246,697
Total Deposits		743,422			717,874
Federal Home Loan Bank short-term borrowings		-			4,524
Long-term borrowings		98,148			104,963
Securities sold under agreements to repurchase		3,988			2,137
Advance deposits by borrowers for taxes and insurance		38			45
Accrued interest payable and other liabilities		4,010			4,363
TOTAL LIABILITIES		849,606			833,906
Stockholders' Equity
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized, none issued		-			-
Common stock, $0.01 par value per share, 40,000,000 shares authorized, 4,822,646 and 4,812,991 shares outstanding, respectively		48			48
Additional paid-in-capital		75,663			75,571
Retained earnings		66,441			65,301
Unearned Employee Stock Ownership Plan (ESOP) shares		(1,648	)		(1,686	)
Accumulated other comprehensive loss		(360	)		(1,344	)
TOTAL STOCKHOLDERS' EQUITY		140,144			137,890
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	989,750		$	971,796

See accompanying notes to the consolidated financial statements.

2

Standard AVB Financial Corp.

Consolidated Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended March 31,
	2019			2018
Interest and Dividend Income
Loans, including fees	$	8,016		$	7,916
Mortgage-backed securities		548			457
Investments:
Taxable		115			100
Tax-exempt		379			355
Federal Home Loan Bank and other restricted stock		174			160
Interest-earning deposits and federal funds sold		80			50
Total Interest and Dividend Income		9,312			9,038
Interest Expense
Deposits		1,593			974
Federal Home Loan Bank short-term borrowings		28			158
Long-term borrowings		536			497
Securities sold under agreements to repurchase		6			2
Total Interest Expense		2,163			1,631
Net Interest Income		7,149			7,407
Provision for Loan Losses		108			-
Net Interest Income after Provision for Loan Losses		7,041			7,407
Noninterest Income
Service charges		689			710
Earnings on bank-owned life insurance		131			131
Net losses on sales of securities		(7	)		-
Net gains on sales of equities		-			40
Net equity securities fair value adjustment gains		27			50
Net loan sale gains		34			4
Investment management fees		202			132
Other income		62			15
Total Noninterest Income		1,138			1,082
Noninterest Expenses
Compensation and employee benefits		3,221			3,430
Data processing		177			154
Premises and occupancy costs		673			685
Automatic teller machine expense		137			129
Federal deposit insurance		68			81
Core deposit amortization		193			257
Other operating expenses		998			1,017
Total Noninterest Expenses		5,467			5,753
Income before Income Tax Expense		2,712			2,736
Income Tax Expense
Federal		357			476
State		186			100
Total Income Tax Expense		543			576
Net Income	$	2,169		$	2,160
Earnings Per Share:
Basic earnings per common share	$	0.47		$	0.47
Diluted earnings per common share	$	0.46		$	0.46
Cash dividends paid per common share	$	0.22		$	0.22
Basic weighted average shares outstanding		4,659,335			4,622,384
Diluted weighted average shares outstanding		4,765,175			4,738,280

See accompanying notes to the consolidated financial statements.

3

Standard AVB Financial Corp.

Consolidated Statements of Comprehensive Income

(Dollars in thousands)

(Unaudited)

	Three Months Ended March 31,
	2019			2018
Net Income	$	2,169		$	2,160
Other comprehensive income (loss):
Change in unrealized gain (loss) on securities available for sale		1,236			(2,460	)
Tax effect		(260	)		517
Reclassification adjustment for security losses realized in income		7			-
Tax effect		(1	)		-
Change in pension obligation for defined benefit plan		2			3
Tax effect		-			(1	)
Total other comprehensive income (loss)		984			(1,941	)
Total Comprehensive Income	$	3,153		$	219

See accompanying notes to the consolidated financial statements.

4

Standard AVB Financial Corp.

Consolidated Statement of Changes in Stockholders' Equity

(Dollars in thousands, except per share data)

(Unaudited)

												Accumulated
			Additional						Unearned			Other			Total
	Common		Paid-In			Retained			ESOP			Comprehensive			Stockholders'
	Stock		Capital			Earnings			Shares			Loss			Equity
Balance, December 31, 2018	$	48	$	75,571		$	65,301		$	(1,686	)	$	(1,344	)	$	137,890
Net income		-		-			2,169			-			-			2,169
Other comprehensive income		-		-						-			984			984
Stock repurchases (5,557 shares)		-		(180	)		-			-			-			(180	)
Cash dividends ($0.22 per share)		-		-			(1,029	)		-			-			(1,029	)
Stock options exercised (10,665 shares)		-		189			-			-			-			189
Compensation expense on stock awards		-		13			-			-			-			13
Compensation expense on ESOP		-		70			-			38			-			108
Balance, March 31, 2019	$	48	$	75,663		$	66,441		$	(1,648	)	$	(360	)	$	140,144
Balance, December 31, 2017	$	48	$	75,063		$	60,172		$	(1,839	)	$	528		$	133,972
Net income		-		-			2,160			-			-			2,160
Other comprehensive loss		-		-			-			-			(1,941	)		(1,941	)
Change in accounting principle ‘for adoption of ASU 2016-01		-		-			416			-			(416	)		-
Stock repurchases (2,845 shares)		-		(86	)		-			-			-			(86	)
Cash dividends ($0.22 per share)		-		-			(1,059	)		-			-			(1,059	)
Stock options exercised (8,801 shares)		-		155			-			-			-			155
Compensation expense on ESOP		-		71			-			38			-			109
Balance, March 31, 2018	$	48	$	75,203		$	61,689		$	(1,801	)	$	(1,829	)	$	133,310

See accompanying notes to the consolidated financial statements.

5

Standard AVB Financial Corp.

Consolidated Statements of Cash Flows

(Dollars in thousands)

(Unaudited)

	Three Months Ended March 31,
	2019			2018
Cash Flows From Operating Activities
Net income	$	2,169		$	2,160
Adjustments to reconcile net income to net cash  provided by operating activities:
Depreciation and amortization		446			305
Provision for loan losses		108			-
Amortization of core deposit intangible		193			257
Net loss on sale of securities available for sale		7			-
Net gain on sale of equity securities		-			(40	)
Origination of loans held for sale		(1,780	)		(1,116	)
Proceeds from sale of loans held for sale		1,814			1,120
Net equity securities fair value adjustment gains		(27	)		(50	)
Net loan sale gains		(34	)		(4	)
Compensation expense on ESOP		108			109
Compensation expense on stock awards		13			-
Deferred income taxes		743			635
Increase in accrued interest receivable		(181	)		(70	)
Earnings on bank-owned life insurance		(131	)		(131	)
Increase (decrease) in accrued interest payable		9			(47	)
Other, net		1,989			890
Net Cash Provided by Operating Activities		5,446			4,018
Cash Flows Used In Investing Activities
Net decrease in loans		4,026			4,239
Purchases of investment securities		(3,221	)		(2,556	)
Purchases of equity securities		-			(387	)
Purchases of mortgage-backed securities		(9,112	)		(16,147	)
Proceeds from maturities of certificates of deposits		-			250
Proceeds from maturities/principal repayments/calls of investment securities		35			30
Proceeds from maturities/principal repayments/calls of mortgage-backed securities		3,523			2,377
Proceeds from sales of investment securities		3,696			-
Proceeds from sales of equity securities		-			178
Purchase of Federal Home Loan Bank stock		(1,033	)		(2,207	)
Redemption of Federal Home Loan Bank stock		1,470			2,255
Net purchases of office properties and equipment		(203	)		(93	)
Net Cash Used in Investing Activities		(819	)		(12,061	)
Cash Flows From Financing Activities
Net increase (decrease) in demand, savings and club accounts		25,338			(2,378	)
Net increase (decrease) in certificate accounts		210			(381	)
Net increase in securities sold under agreements to repurchase		1,851			319
Repayments of Federal Home Loan Bank short-term borrowings		(57,961	)		(84,500	)
Proceeds from Federal Home Loan Bank short-term borrowing		53,437			80,362
Repayments of Federal Home Loan Bank advances		(7,879	)		(6,356	)
Proceeds from Federal Home Loan Bank advances		-			20,000
Lease liabilies payments		(102	)		-
Net decrease in advance deposits by borrowers for taxes and insurance		(7	)		(68	)
Exercise of stock options		189			155
Dividends paid		(1,029	)		(1,059	)
Stock repurchases		(180	)		(86	)
Net Cash Provided by Financing Activities		13,867			6,008
Net Increase (Decrease) in Cash and Cash Equivalents		18,494			(2,035	)
Cash and Cash Equivalents - Beginning		16,207			16,265
Cash and Cash Equivalents - Ending	$	34,701		$	14,230
Supplementary Cash Flows Information:
Interest paid	$	2,154		$	1,678
Income taxes paid	$	273		$	36
Investment security purchased not settled	$	496		$	-
Loans held for sale	$	198		$	-
Right-of-use asset	$	(1,132	)	$	-
Lease liability	$	1,158		$	-
Prepaid lease payments	$	(26	)	$	-

See accompanying notes to the consolidated financial statements.

6

STANDARD AVB FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (UNAUDITED)

March 31, 2019

(1) Consolidation

The accompanying consolidated financial statements include the accounts of Standard AVB Financial Corp. (the “Company”) and its direct and indirect wholly owned subsidiaries, Standard Bank, PaSB (the “Bank”), and Westmoreland Investment Company. All significant intercompany accounts and transactions have been eliminated in consolidation. Standard AVB Financial Corp. owns all of the outstanding shares of common stock of the Bank.

(2) Basis of Presentation

The accompanying consolidated financial statements were prepared in accordance with instructions to Form 10-Q, and therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles in the United States. All adjustments (consisting of normal recurring adjustments), which, in the opinion of management are necessary for a fair presentation of the financial statements and to make the financial statements not misleading have been included. The unaudited consolidated financial statements and other financial information contained in this quarterly report on Form 10-Q should be read in conjunction with the audited financial statements of Standard AVB Financial Corp. at and for the year ended December 31, 2018 contained in the Company’s annual report on Form 10-K as filed with the Securities and Exchange Commission on March 18, 2019. The results for the three month period ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any future interim period. Certain amounts in the 2018 financial statements have been reclassified to conform to the 2019 presentation format. These reclassifications had no effect on stockholders’ equity or net income.

(3) Earnings per Share

Basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. The following table sets forth the computation of basic and diluted EPS for the three months ended March 31, 2019 and March 31, 2018 (dollars in thousands, except per share data):

	Three Months Ended March 31,
	2019		2018
Net income available to common stockholders	$	2,169	$	2,160
Basic EPS:
Weighted average shares outstanding		4,659,335		4,622,384
Basic EPS	$	0.47	$	0.47
Diluted EPS:
Weighted average shares outstanding		4,659,335		4,622,384
Dilutive effect of common stock equivalents		105,840		115,896
Total diluted weighted average shares outstanding		4,765,175		4,738,280
Diluted EPS	$	0.46	$	0.46

(4) Recent Accounting Pronouncements

Accounting Standards Adopted in 2019

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet.  Additionally, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) – Targeted Improvements, which, among other things, provided an additional transition method that allows entities to not apply the guidance in ASU 2016-02 in the comparative periods presented in the financial statements and instead to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted ASU 2016-02 and its related amendments as of January 1, 2019, which resulted in the recognition of finance right-of-use assets and finance lease liabilities totaling $1.1 million and $1.2 million, respectively. The Company elected to adopt the transition relief provisions from ASU 2018-11 and recorded the impact of adoption as of January 1, 2019, without restating any prior-year amounts or disclosures. Additional lease disclosures can be found in Note 10 contained herein. There was no cumulative effect adjustment to the opening balance of retained earnings required.

7

STANDARD AVB FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (UNAUDITED)

March 31, 2019

(4) Recent Accounting Pronouncements (Continued)

Accounting Standards Pending Adoption

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, which amended the effective date of ASU 2016-13 for entities other than public business entities. The ASU also clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Rather, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. The Company has been working with a third party to evaluate the various CECL methodologies and decided to utilize the vintage method. The Company is continuing to work through implementation of that method and determine what impact it will have on the consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is a U.S. Securities and Exchange Commission (“SEC”) filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. A public business entity that is not an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020. All other entities, including not-for-profit entities that are adopting the amendments in this Update should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021. 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 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.

8

STANDARD AVB FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (UNAUDITED)

March 31, 2019

(4) Recent Accounting Pronouncements (Continued)

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.

In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements, which addressed issues lessors sometimes encounter. Specifically addressed in this Update were issues related to 1) determining the fair value of the underlying asset by the lessor that are not manufacturers or dealers (generally financial institutions and captive finance companies), and 2) lessors that are depository and lending institutions should classify principal and payments received under sales-type and direct financing leases within investing activities in the cash flow statement. The ASU also exempts both lessees and lessors from having to provide the interim disclosures required by ASC 250-10-50-3 in the fiscal year in which a company adopts the new leases standard. The amendments addressing the two lessor accounting issues are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other entities, the effective date is for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. This Update is not expected to have a significant impact on the Company’s financial statements.

In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which affects a variety of topics in the Codification and applies to all reporting entities within the scope of the affected accounting guidance. This Update is not expected to have a significant impact on the Company’s financial statements.

9

STANDARD AVB FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (UNAUDITED)

March 31, 2019

(5) Investment Securities

Investment securities available for sale at March 31, 2019 and December 31, 2018 are as follows (dollars in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
March 31, 2019:
U.S. government and agency obligations due:
Beyond 1 year but within 5 years	$	7,435	$	1		(48	)	$	7,388
Beyond 5 year but within 10 years		942		3		-			945
Corporate bonds due:
Within 1 year		1,755		-		(7	)		1,748
Beyond 1 year but within 5 years		1,474		22		-			1,496
Beyond 5 years but within 10 years		996		26		-			1,022
Municipal obligations due:
Beyond 1 year but within 5 years		5,215		296		-			5,511
Beyond 5 years but within 10 years		20,123		327		(1	)		20,449
Beyond 10 years		28,184		216		(111	)		28,289
	$	66,124	$	891	$	(167	)	$	66,848
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:
Within 1 year		1,758		-		(15	)		1,743
Beyond 1 year but within 5 years		1,472		2		(10	)		1,464
Beyond 5 years but within 10 years		996		-		(2	)		994
Municipal obligations due:
Beyond 1 year but within 5 years		6,658		298		-			6,956
Beyond 5 years but within 10 years		22,384		132		(81	)		22,435
Beyond 10 years		24,504		82		(279	)		24,307
	$	66,140	$	514	$	(485	)	$	66,169

For the three months ended March 31, 2019, losses on sales of investment securities were $7,000 and proceeds from such sales were $3.7 million. There were no sales of investment securities for the three months ended March 31, 2018.

Investment securities with a carrying value of $11.6 million were pledged to secure repurchase agreements and public funds accounts at both March 31, 2019 and December 31, 2018.

10

STANDARD AVB FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (UNAUDITED)

March 31, 2019

(5) Investment Securities (Continued)

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 March 31, 2019 and December 31, 2018 (dollars in thousands):

	Less than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
March 31, 2019:
U.S. government and agency obligations	$	-	$	-		$	6,897	$	(48	)	$	6,897	$	(48	)
Corporate bonds		-		-			1,748		(7	)		1,748		(7	)
Municipal obligations		950		(1	)		7,332		(111	)		8,282		(112	)
Total	$	950	$	(1	)	$	15,977	$	(166	)	$	16,927	$	(167	)
December 31, 2018:
U.S. government and agency obligations	$	-	$	-		$	8,270	$	(98	)	$	8,270	$	(98	)
Corporate bonds		1,490		(12	)		1,743		(15	)		3,233		(27	)
Municipal obligations		10,049		(55	)		11,730		(305	)		21,779		(360	)
Total	$	11,539	$	(67	)	$	21,743	$	(418	)	$	33,282	$	(485	)

At March 31, 2019, the Company held 20 investment securities in an unrealized loss position. The decline in the fair value of these securities resulted primarily from interest rate fluctuations. The Company does not intend to sell these securities nor is it more likely than not that the Company would be required to sell these securities before their anticipated recovery. Additionally, the Company believes the collection of the investment principal and related interest is probable. Based on the above, the Company considers all of the unrealized losses to be temporary impairment losses.

(6) Equity Securities

The following table presents the net gains and losses on equity investments recognized in earnings during the three months ended March 31, 2019 and March 31, 2018, and the portion of unrealized gains and losses for those periods that relate to equity investments held (dollars in thousands):

	Three Months Ended March 31,
	2019		2018
Net equity securities fair value adjustment gains	$	27	$	50
Net gains realized on the sale of equity securities during the period		-		40
Gains recognized on equity securities during the period	$	27	$	90

There were no sales of equity securities for the three months ended March 31, 2019. During the three months ended March 31, 2018, gains on sales of equity securities were $40,000 and proceeds from such sales were $178,000.

11

STANDARD AVB FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (UNAUDITED)

March 31, 2019

(7) Mortgage-Backed Securities

Mortgage-backed securities available for sale at March 31, 2019 and December 31, 2018 are as follows (dollars in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
March 31, 2019:
Government pass-throughs:
Ginnie Mae	$	19,618	$	23	$	(231	)	$	19,410
Fannie Mae		20,107		47		(164	)		19,990
Freddie Mac		12,291		12		(110	)		12,193
Private pass-throughs		23,819		-		(308	)		23,511
Collateralized mortgage obligations		12,813		4		(150	)		12,667
	$	88,648	$	86	$	(963	)	$	87,771
December 31, 2018:
Government pass-throughs:
Ginnie Mae	$	19,213	$	1	$	(324	)	$	18,890
Fannie Mae		13,952		7		(339	)		13,620
Freddie Mac		12,662		-		(252	)		12,410
Private pass-throughs		25,064		-		(349	)		24,715
Collateralized mortgage obligations		12,328		11		(180	)		12,159
	$	83,219	$	19	$	(1,444	)	$	81,794

Private pass-throughs include Small Business Administration (SBA) securities that are each an aggregation of SBA guaranteed portions of loans made by SBA lenders under section 7(a) of the Small Business Act. The guaranty is backed by the full faith and credit of the United States.

There were no sales of mortgage-backed securities for the three months ended March 31, 2019 and March 31, 2018, respectively.

The amortized cost and fair value of mortgage-backed securities at March 31, 2019, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to repay obligations with or without prepayment penalties (dollars in thousands):

	Amortized Cost		Fair Value
Due after one year through five years	$	817	$	817
Due after five years through ten years		6,250		6,233
Due after ten years		81,581		80,721
Total Mortgage-Backed Securities	$	88,648	$	87,771

12

STANDARD AVB FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (UNAUDITED)

March 31, 2019

(7) Mortgage-Backed Securities (Continued)

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 March 31, 2019 and December 31, 2018 (dollars in thousands):

	Less than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
March 31, 2019:
Government pass-throughs:
Ginnie Mae	$	-	$	-		$	14,367		(231	)	$	14,367	$	(231	)
Fannie Mae		-		-			10,736		(164	)		10,736		(164	)
Freddie Mac		-		-			8,660		(110	)		8,660		(110	)
Private pass-throughs		2,085		(19	)		20,613		(289	)		22,698		(308	)
Collateralized mortgage obligations		1,884		(11	)		8,005		(139	)		9,889		(150	)
Total	$	3,969	$	(30	)	$	62,381	$	(933	)	$	66,350	$	(963	)
December 31, 2018:
Government pass-throughs:
Ginnie Mae	$	4,850	$	(26	)	$	13,794	$	(298	)	$	18,644	$	(324	)
Fannie Mae		403		(2	)		12,152		(337	)		12,555		(339	)
Freddie Mac		680		(24	)		11,699		(228	)		12,379		(252	)
Private pass-throughs		14,436		(134	)		9,359		(215	)		23,795		(349	)
Collateralized mortgage obligations		4,091		(40	)		6,048		(140	)		10,139		(180	)
Total	$	24,460	$	(226	)	$	53,052	$	(1,218	)	$	77,512	$	(1,444	)

At March 31, 2019, the Company held 61 mortgage-backed securities in an unrealized loss position. The decline in the fair value of these securities resulted primarily from interest rate fluctuations. The Company does not intend to sell these securities nor is it more likely than not that the Company would be required to sell these securities before their anticipated recovery. Additionally, the Company believes the collection of the investment principal and related interest is probable. Based on the above, the Company considers all of the unrealized loss to be temporary impairment loss.

Mortgage-backed securities with a carrying value of $10.3 million and $10.4 million were pledged to secure repurchase agreements and public funds accounts at March 31, 2019 and December 31, 2018, respectively.

13

STANDARD AVB FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (UNAUDITED)

March 31, 2019

(8) Loans Receivable and Related Allowance for Loan Losses

The following table summarizes the primary segments of the loan portfolio, and the related allowance for loan losses, as of March 31, 2019 and December 31, 2018 (dollars in thousands):

	Real Estate Loans
	One-to-four-				Home
	family		Commercial		Equity Loans
	Residential and		Real		and Lines		Commercial		Other
	Construction		Estate		of Credit		Business		Loans		Total
March 31, 2019:
Collectively evaluated for impairment	$	252,071	$	308,999	$	120,129	$	47,274	$	507	$	728,980
Individually evaluated for impairment		-		-		-		-		-		-
Total loans before allowance for loan losses	$	252,071	$	308,999	$	120,129	$	47,274	$	507	$	728,980
December 31, 2018:
Collectively evaluated for impairment	$	253,913	$	308,775	$	123,373	$	46,196	$	1,139	$	733,396
Individually evaluated for impairment		-		-		-		-		-		-
Total loans before allowance for loan losses	$	253,913	$	308,775	$	123,373	$	46,196	$	1,139	$	733,396

Total loans at March 31, 2019 and December 31, 2018 were net of deferred loan fees of $247,000 and $226,000 respectively. The Company’s primary business activity is with customers located within its local trade area. Although the Company has a diversified loan portfolio, loans outstanding to individuals and businesses are dependent upon the local economic conditions in its immediate trade area.

The segments of the Bank’s loan portfolio are disaggregated to a level that allows management to monitor risk and performance. The three segments are: real estate, commercial business and other. The real estate loan segment is further disaggregated into three classes. One-to-four family residential mortgages (including residential construction loans) includes 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.

14

STANDARD AVB FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (UNAUDITED)

March 31, 2019

(8) Loans Receivable and Related Allowance for Loan Losses (Continued)

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 (“TDR”). Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. The definition of “impaired loans” is not the same as the definition of “nonaccrual loans,” although the two categories overlap. The Company may choose to place a loan on nonaccrual status due to payment delinquency or uncertain collectability, while not classifying the loan as impaired if the loan is not a commercial business or commercial real estate loan. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company does not separately evaluate individual consumer and residential mortgage loans for impairment, unless such loan is part of a larger relationship that is impaired, has a classified risk rating, or is a TDR.

Once the decision has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is calculated by comparing the recorded investment in the loan to the fair value of the loan using one of three methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs. The appropriate method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis. The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition.

Consistent with accounting and regulatory guidance, the Company recognizes a TDR when the Bank, for economic or legal reasons related to a borrower's financial difficulties, grants a concession to the borrower that would not normally be considered. Regardless of the form of concession granted, the Company's objective in offering a TDR is to increase the probability of repayment of the borrower's loan. To be considered a TDR, the borrower must be experiencing financial difficulties and the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that would not otherwise be considered. The Company did not modify any loans as TDRs during the three month periods ended March 31, 2019 or 2018 nor did it have any TDRs within the preceding year where a concession had been made that then defaulted during the three month periods ending March 31, 2019 or 2018.

There were no impaired loans at March 31, 2019 or December 31, 2018. The following table presents the average recorded investment in impaired loans and related interest income recognized for the three months ended March 31, 2019 and March 31, 2018 (dollars in thousands):

	For the Three Months Ended March 31,
	2019		2018
Average investment in impaired loans:
Commercial real estate	$	-	$	295
	$	-	$	295
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.

15

STANDARD AVB FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (UNAUDITED)

March 31, 2019

(8) Loans Receivable and Related Allowance for Loan Losses (Continued)

The following table presents the classes of the loan portfolio summarized by the aggregate Pass rating and the criticized ratings of Special Mention, Substandard and Doubtful within the Company’s internal risk rating system as of March 31, 2019 and December 31, 2018 (dollars in thousands):

			Special
	Pass		Mention		Substandard		Doubtful		Total
March 31, 2019:
Real estate loans:
One-to-four-family residential and construction	$	250,464	$	-	$	1,607	$	-	$	252,071
Commercial real estate		306,559		1,784		656		-		308,999
Home equity loans and lines of credit		119,816		60		253		-		120,129
Commercial business loans		46,992		226		56		-		47,274
Other loans		497		-		10		-		507
Total	$	724,328	$	2,070	$	2,582	$	-	$	728,980
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

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due based on the loans’ contractual due dates. Management considers nonperforming loans to be those loans that are past due 90 days or more and are still accruing as well as all nonaccrual loans. At March 31 2019, there were 11 loans on non-accrual status that were less than 90 days past due totaling $1.2 million. 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 March 31, 2019 and December 31, 2018 (dollars in thousands):

16

STANDARD AVB FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (UNAUDITED)

March 31, 2019

(8) Loans Receivable and Related Allowance for Loan Losses (Continued)

			30-59 Days		60-89 Days				90 Days Past		Total
	Current		Past Due		Past Due		Non-Accrual		Due & Accruing		Loans
March 31, 2019:
Real estate loans:
One-to-four-family residential and construction	$	249,086	$	1,379	$	-	$	1,606	$	-	$	252,071
Commercial real estate		307,954		469		-		576		-		308,999
Home equity loans and lines of credit		119,573		264		39		253		-		120,129
Commercial business loans		47,171		47		-		56		-		47,274
Other loans		490		4		3		10		-		507
Total	$	724,274	$	2,163	$	42	$	2,501	$	-	$	728,980
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

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 three months ended March 31, 2019, 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 charge-offs incurred during the period as well as growth in the loan balances included in the allowance calculation for that loan class. The increase for the Commercial Business loan class was the result of both an increase in the loan balances included in the allowance calculation for that loan class as well as an increase in the qualitative factors for the period. The Other loan class increased primarily due to the charge-offs incurred during the period. 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 as well as decreases in the loan balances included in the allowance calculation for those loan classes during the period. The following tables summarize the activity in the primary segments of the ALL for the three months ended March 31, 2019 and March 31, 2018 as well as the allowance required for loans individually and collectively evaluated for impairment as of March 31, 2019 and December 31, 2018 (dollars in thousands):

17

STANDARD AVB FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (UNAUDITED)

March 31, 2019

(8) Loans Receivable and Related Allowance for Loan Losses (Continued)

	Real Estate Loans
	One-to-four-						Home
	family			Commercial			Equity Loans
	Residential and			Real			and Lines			Commercial			Other
	Construction			Estate			of Credit			Business			Loans			Total
Three Months Ended:
Balance December 31, 2018	$	1,051		$	2,761		$	312		$	286		$	4		$	4,414
Charge-offs		-			(121	)		-			-			(27	)		(148	)
Recoveries		-			-			1			-			-			1
Provision		(191	)		114			(15	)		175			25			108
Balance March 31, 2019	$	860		$	2,754		$	298		$	461		$	2		$	4,375
Balance at December 31, 2017	$	1,384		$	2,003		$	400		$	333		$	7		$	4,127
Charge-offs		-			-			-			(9	)		(2	)		(11	)
Recoveries		69			-			-			-			-			69
Provision		(54	)		119			(10	)		(54	)		(1	)		-
Balance at March 31, 2018	$	1,399		$	2,122		$	390		$	270		$	4		$	4,185

	Real Estate Loans
	One-to-four-				Home
	family		Commercial		Equity Loans
	Residential and		Real		and Lines		Commercial		Other
	Construction		Estate		of Credit		Business		Loans		Total
Evaluated for Impairment:
Individually	$	-	$	-	$	-	$	-	$	-	$	-
Collectively		860		2,754		298		461		2		4,375
Balance at March 31, 2019	$	860	$	2,754	$	298	$	461	$	2	$	4,375
Evaluated for Impairment:
Individually	$	-	$	-	$	-	$	-	$	-	$	-
Collectively		1,051		2,761		312		286		4		4,414
Balance at December 31, 2018	$	1,051	$	2,761	$	312	$	286	$	4	$	4,414

The ALL is based on estimates and actual losses will vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the loan portfolio at any given date. In addition, federal regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses and may require the Bank to make changes to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to Management. Based on Management’s comprehensive analysis of the loan portfolio, they believe the current level of the allowance for loan losses is adequate.

(9) Foreclosed Assets Held For Sale

Foreclosed assets acquired in the settlement of loans are carried at fair value less estimated costs to sell and are included in foreclosed real estate on the Consolidated Statement of Financial Condition. As of March 31, 2019 and December 31, 2018, foreclosed real estate totaled $531,000 and $486,000, respectively. As of March 31, 2019, the $531,000 included two residential properties and two commercial real estate properties. As of March 31, 2019, the Company had initiated formal foreclosure procedures on $362,000 of loans, consisting of $194,000 in commercial real estate loans, $97,000 in one-to-four family residential loans and $70,000 in home equity loans.

18

STANDARD AVB FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (UNAUDITED)

March 31, 2019

(10) Leases

The Company currently has four financing lease agreements for branch offices. In conjunction with the implementation of ASU 2016-02, the Company recognized right-of-use assets totaling $1.1 million and lease liabilities totaling $1.2 million related to those financing leases. One of the leases includes an option to extend which was recognized as part of the Company’s right-of-use asset and corresponding lease liability for that property because the Company believes that it is more likely than not to exercise the extension option.

The right-of-use assets are included with office properties and equipment while lease liabilities are included in long-term borrowings on the March 31, 2019 Consolidated Statements of Financial Condition. Amortization of right-of-use assets is included in premises and occupancy costs while interest expense on the lease liabilities is included in the interest expense on long-term borrowings on the Consolidated Statements of Income. The following table presents the financing lease costs during the three months ended March 31, 2019 (dollars in thousands):

	Quarter Ended
	March 31, 2019
Financing lease costs
Amortization of right-of-use asset	$	94
Interest expense		8
Total financing lease costs	$	102

The discount rates utilized to determine the interest expense portion of the lease liability were obtained by utilizing FHLB advance rates for a similar term borrowings as of January 1, 2019. The following table presents the weighted-average remaining term and discount rates for financing leases outstanding as of March 31, 2019:

	Financing
Weighted-average term (years)		4.7
Weighted-average discount rate		2.81	%

The following table presents the undiscounted cash flows due related to financing leases as of March 31, 2019, along with a reconciliation to the discounted amount recorded on the March 31, 2019 Consolidated Statements of Financial Condition (dollars in thousands):

	Financing
Undiscounted cash flows due within:
2019	$	305
2020		292
2021		124
2022		102
2023		102
2024 and thereafter		212
Total undiscounted cash flows		1,137
Impact of present value discount		(73	)
Amount reported on balance sheet	$	1,064

(11) Stock Based Compensation

The Company currently has two stock plans that allow for the issuance of stock based compensation, the Allegheny Valley Bancorp, Inc. 2011 Stock Incentive Plan (the “2011 Plan”) and the Standard Financial Corp. 2012 Equity Incentive Plan (the “2012 Plan”). On February 26, 2019, 1,820 shares of restricted stock were awarded to directors out of the 2011 Plan. The awards vest on December 31, 2019 and the related compensation expense is being recognized straight line over the 11 month vesting period. On March 12, 2019, 2,727 shares of restricted stock were awarded to employees out of the 2011 Plan. The awards vest over 34 months and the related compensation expense is being recognized straight line over the vesting period. At March 31, 2019, there were 72,588 and 101,144 shares available to be issued under the 2011 Plan and the 2012 Plan, respectively.

For each of the three months ended March 31, 2019 and March 31, 2018, there was no recorded compensation expense on the options. As of March 31, 2019, all outstanding options were fully vested and there was no unrecognized compensation cost.

19

STANDARD AVB FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (UNAUDITED)

March 31, 2019

(11) Stock Based Compensation (Continued)

The following table summarizes transactions regarding the options under the Plans:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term
Outstanding at December 31, 2018		266,695		$	17.12		3.32
Granted		-			-
Exercised		(10,665	)		17.75
Forfeited		-			-
Outstanding at March 31, 2019		256,030		$	17.09		3.17
Exercisable at March 31, 2019		256,030		$	17.09

For the three months ended March 31, 2019, there was $13,000 of compensation expense recorded on restricted stock grants. For the three months ended March 31, 2018, there was no recorded compensation expense on restricted stock. As of March 31, 2019, there was $68,000 of unrecognized compensation expense that will be recognized over the remaining vesting periods.

The following table summarizes transactions regarding the restricted stock under the Plans:

	Number of Restricted Shares		Weighted Average Grant Date Price Per Share
Non-vested shares at December 31, 2018		250	$	31.10
Granted		4,547		29.13
Vested		-		-
Forfeited		-		-
Non-vested shares at March 31, 2019		4,797	$	29.24

(12) Employee Stock Ownership Plan

The Company established a tax qualified Employee Stock Ownership Plan (“ESOP”) for the benefit of its employees in conjunction with the stock conversion on October 6, 2010. Eligible employees begin to participate in the plan after one year of service and become 20% vested in their accounts after two years of service, 40% after three years of service, 60% after four years of service, 80% after five years of service and 100% after six years of service, or earlier, upon death, disability or attainment of normal retirement age.

In connection with the stock conversion, the purchase of the 278,254 shares of the Company stock by the ESOP was funded by a loan from the Company through the Bank. Unreleased ESOP shares collateralize the loan payable, and the cost of the shares is recorded as a contra-equity account in the stockholders’ equity of the Company. Shares are released as debt payments are made by the ESOP to the loan. The ESOP’s sources of repayment of the loan can include dividends, if any, on the unallocated stock held by the ESOP and discretionary contributions from the Company to the ESOP and earnings thereon.

Compensation expense is equal to the fair value of the shares committed to be released and unallocated ESOP shares are excluded from outstanding shares for purposes of computing earnings per share. Compensation expense related to the ESOP of $108,000 and $109,000 was recognized during the three months ended March 31, 2019 and 2018, 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 March 31, 2019, the ESOP held a total of 254,610 released shares of the Company’s stock. Of the 254,610 shares, there were 159,003 unallocated as of March 31, 2019 with a fair market value of $4.3 million.

20

STANDARD AVB FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (UNAUDITED)

March 31, 2019

(13) Pension Information

The Company sponsors a pension plan which is a noncontributory defined benefit retirement plan. Effective August 1, 2005, the annual benefit provided to employees under this defined benefit pension plan was frozen by the Bank. Freezing the plan eliminated all future benefit accruals; however, the accrued benefit as of August 1, 2005 remained.

The net periodic pension cost for the three months ended March 31, 2019 and March 31, 2018 are as follows (dollars in thousands):

	Three Months Ended March 31,
	2019			2018
Interest Cost	$	31		$	33
Expected return on plan assets		(32	)		(41	)
Amortization of net loss		2			3
Net periodic pension cost	$	1		$	(5	)

(14) Fair Value of Assets and Liabilities

Fair Value Hierarchy

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date.  GAAP established a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels:

Level 1:	Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.  A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available.  A contractually binding sales price also provides reliable evidence of fair value.
Level 2:	Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that utilize model-based techniques for which all significant assumptions are observable in the market.
Level 3:	Inputs to the valuation methodology are unobservable and significant to the fair value measurement; inputs to the valuation methodology that utilize model-based techniques for which significant assumptions are not observable in the market; or inputs to the valuation methodology that requires significant management judgment or estimation, some of which may be internally developed.

Management maximizes the use of observable inputs and minimizes the use of unobservable inputs when determining fair value measurements.  Management reviews and updates the fair value hierarchy classifications of the Company’s assets and liabilities on a quarterly basis.

Assets Measured at Fair Value on a Recurring Basis

Investment, Mortgage-Backed and Equity Securities

Fair values of investment and mortgage-backed securities were primarily measured using information from a third-party pricing service.  This service provides pricing information by utilizing evaluated pricing models supported with market data information.  Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data from market research publications.  Level 1 securities are comprised of equity securities.  As quoted prices were available, unadjusted, for identical securities in active markets, these securities were classified as Level 1 measurements.  Level 2 securities were primarily comprised of debt securities issued by government agencies, states and municipalities, corporations, as well as mortgage-backed securities issued by government agencies.  Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models.  In cases where there may be limited or less transparent information provided by the Company’s third-party pricing service, fair value may be estimated by the use of secondary pricing services or through the use of non-binding third-party broker quotes.

21

STANDARD AVB FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (UNAUDITED)

March 31, 2019

(14) Fair Value of Assets and Liabilities (Continued)

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 March 31, 2019 and December 31, 2018, management did not make adjustments to prices provided by the third-party pricing service as a result of illiquid or inactive markets.  On a quarterly basis, management also reviews a sample of securities priced by the Company’s third-party pricing service to review significant assumptions and valuation methodologies used.  Based on this review, management determines whether the current placement of the security in the fair value hierarchy is appropriate or whether transfers may be warranted.

The following table presents the assets measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018 by level within the fair value hierarchy (dollars in thousands):

	Level 1		Level 2		Level 3		Total
March 31, 2019:
Investment securities available for sale:
U.S. government and agency obligations	$	-	$	8,333	$	-	$	8,333
Corporate bonds		-		4,266		-		4,266
Municipal obligations		-		54,249		-		54,249
Total investment securities available for sale		-		66,848		-		66,848
Equity securities		2,752		-		-		2,752
Mortgage-backed securities available for sale		-		87,771		-		87,771
Total recurring fair value measurements	$	2,752	$	154,619	$	-	$	157,371
December 31, 2018:
Investment securities available for sale:
U.S. government and agency obligations	$	-	$	8,270	$	-	$	8,270
Corporate bonds		-		4,201		-		4,201
Municipal obligations		-		53,698		-		53,698
Total investment securities available for sale		-		66,169		-		66,169
Equity securities		2,725		-		-		2,725
Mortgage-backed securities available for sale		-		81,794		-		81,794
Total recurring fair value measurements	$	2,725	$	147,963	$	-	$	150,688

Assets Measured at Fair Value on a Nonrecurring Basis

The following table presents the assets measured at fair value on a nonrecurring basis as of March 31, 2019 and December 31, 2018 by level within the fair value hierarchy (dollars in thousands):

	Level 1		Level 2		Level 3		Total
March 31, 2019:
Foreclosed real estate	$	-	$	-	$	531	$	531
Total nonrecurring fair value measurements	$	-	$	-	$	531	$	531
December 31, 2018:
Foreclosed real estate	$	-	$	-	$	486	$	486
Total nonrecurring fair value measurements	$	-	$	-	$	486	$	486

22

STANDARD AVB FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (UNAUDITED)

March 31, 2019

(14) Fair Value of Assets and Liabilities (continued)

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
	March 31,		December 31,		Valuation	Unobservable
	2019		2018		Techniques	Input	Range
Foreclosed real estate	$	531	$	486	Appraisal of collateral (1)	Appraisal adjustments (2)	0% to 30	%
					Liquidation expenses (2)		0% to 15	%

(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.

23

STANDARD AVB FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (UNAUDITED)

March 31, 2019

(14) Fair Value of Assets and Liabilities (Continued)

The following table presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of March 31, 2019 and December 31, 2018 (dollars in thousands): 

	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
March 31, 2019:
Financial Instruments - Assets:
Cash on hand and due from banks (1)	$	3,201	$	3,201	$	3,201	$	-	$	-
Interest-earning deposits in other institutions (1)		31,500		31,500		31,500		-		-
Investment securities (2)		66,848		66,848		-		66,848		-
Equity Securities (3)		2,752		2,752		2,752		-		-
Mortgage-backed securities (2)		87,771		87,771		-		87,771		-
Certificate of deposit (1)		249		249		249		-		-
Federal Home Loan Bank and other restricted stocks (1)		7,463		7,463		7,463		-		-
Loans receivable (1) (4)		724,605		724,301		-		-		724,301
Bank-owned life insurance (1)		22,703		22,703		22,703		-		-
Accrued interest receivable (1)		3,004		3,004		3,004		-		-
Financial Instruments - Liabilities:
Demand, savings and club accounts (1)	$	496,515	$	496,515	$	496,515	$	-	$	-
Certificate deposit accounts (1)		246,907		247,322		-		-		247,322
Long-term borrowings (1)		98,148		98,058		-		-		98,058
Securities sold under agreements to repurchase (1)		3,988		3,988		3,988		-		-
Accrued interest payable (1)		1,163		1,163		1,163		-		-
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		-		-
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		-
Certificate of deposit (1)		249	$	249		249		-		-
Federal Home Loan Bank and other restricted stocks (1)		7,900	$	7,900		7,900		-		-
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		-		-

(1) The financial instrument is carried at amortized cost.

(2) The financial instrument is carried at fair value through other comprehensive income.

(3) The financial instrument is carried at fair value through net income.

(4) In accordance with the adoption of ASU 2016-01, the fair value of loans was measured using an exit price notion.

24

STANDARD AVB FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (UNAUDITED)

March 31, 2019

(15) Accumulated Other Comprehensive (Loss) Income

The following tables present the significant amounts reclassified out of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2019 and March 31, 2018 (dollars in thousands):

	Unrealized Gains (Losses)			Unrecognized
	on Available for Sale			Pension
	Securities			Costs			Total
Balance as of December 31, 2018	$	(1,103	)	$	(241	)	$	(1,344	)
Other comprehensive income before reclassification		976			-			976
Amount reclassified from accumulated other comprehensive loss		6			2			8
Total other comprehensive income		982			2			984
Balance as of March 31, 2019	$	(121	)	$	(239	)	$	(360	)

	Amount Reclassified
	from Accumulated			Affected Line on
	Other Comprehensive			the Consolidated
	Income (Loss)			Statements of Income
Three months ended March 31, 2019:
Unrealized losses on available for sale securities	$	7		Net loss on sales of securities
		(1	)	Income tax expense
	$	6		Net of tax
Amortization of defined benefit items:   Actuarial loss	$	2		Other operating expenses
		-		Income tax expense
	$	2		Net of tax
Total reclassification for the period	$	8		Net income

	Unrealized Gains (Losses)			Unrecognized
	on Available for Sale			Pension
	Securities			Costs			Total
Balance as of December 31, 2017	$	840		$	(312	)	$	528
Other comprehensive loss before reclassification		(1,943	)		-			(1,943	)
Amount reclassified from accumulated other comprehensive income		-			2			2
Total other comprehensive (loss) income		(1,943	)		2			(1,941	)
Change in accounting principle for adoption of ASU 2016-01		(416	)		-			(416	)
Balance as of March 31, 2018	$	(1,519	)	$	(310	)	$	(1,829	)

	Amount Reclassified
	from Accumulated			Affected Line on
	Other Comprehensive			the Consolidated
	Income (Loss)			Statements of Income
Three months ended March 31, 2018:
Amortization of defined benefit items:  Actuarial gains	$	3		Other operating expenses
		(1	)	Income tax expense
	$	2		Net of tax
Total reclassification for the period	$	2		Net income

25

STANDARD AVB FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (UNAUDITED)

March 31, 2019

(16) Revenue Recognition

The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2019 and March 31, 2018.

	Three Months Ended March 31,
	2019		2018
Noninterest income
In scope of Topic 606:
Service charges on deposit accounts	$	672	$	692
Investment management fees		202		132
Noninterest income (in-scope of Topic 606)		874		824
Noninterest income (out-of-scope of Topic 606)		264		258
Total noninterest income	$	1,138	$	1,082

(17) Goodwill and Other Intangibles

The Company has recorded goodwill associated with mergers totaling $25.8 million. Goodwill is not amortized, but is periodically evaluated for impairment. The Company did not recognize any impairment during the three months ended March 31, 2019 or March 31, 2018.

Identifiable intangibles are amortized to their estimated residual values over the expected useful lives of such assets. The balance of the core deposit intangible at March 31, 2019 was $2.3 million net of $1.8 million of accumulated amortization as of that date.

As of March, 2019, the remaining current year and estimated future amortization expense for the core deposit intangible is (dollars in thousands):

2019		435
2020		472
2021		352
2022		325
2023		325
2024		325
2025		81
	$	2,315

26

ITEM 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis provides further detail to the financial condition and results of operations of the Company. This section should be read in conjunction with the Notes to Consolidated Financial Statements (Unaudited) presented elsewhere in this report.

The Company’s critical accounting policies involving the significant judgments and assumptions used in the preparation of the Consolidated Financial Statements as of March 31, 2019 have remained unchanged from the disclosures presented in the Company’s audited financial statements for the year ended December 31, 2018 contained in the Company’s annual report on Form 10-K as filed with the Securities and Exchange Commission on March 18, 2019.

Standard AVB Financial Corp. is a Maryland corporation that provides a wide array of retail and commercial financial products and services to individuals, families and businesses through 17 banking offices located in the Pennsylvania counties of Allegheny, Westmoreland and Bedford and Allegany County, Maryland through its wholly-owned subsidiary Standard Bank.

Comparison of Financial Condition at March 31, 2019 and December 31, 2018

General. The Company’s total assets as of March 31, 2019 increased $18.0 million, or 1.8% to $989.8 million, from $971.8 million at December 31, 2018. The increase in total assets included an increase in cash and cash equivalents as well as an increase in mortgage-backed securities partially offset by a decrease in net loans receivable.

Cash and Cash Equivalents. Cash and cash equivalents increased $18.5 million, or 114.1%, to $34.7 million at March 31, 2019 from $16.2 million at December 31, 2018. The increase primarily resulted from the receipt of a large deposit from a new commercial relationship established late in the quarter.

Investment Securities. Investment securities available for sale increased $679,000, or 1.0%, to $66.8 million at March 31, 2019 from $66.2 million at December 31, 2018. Purchases of municipal bonds totaling $3.7 million were offset by calls of $35,000 and sales of $3.7 million during the three months ended March 31, 2019. Additionally, there was a $695,000 increase in the unrealized gain on investment securities during the period.

Equity Securities. Equity securities available for sale were $2.7 million at March 31, 2019 and December 31, 2018, respectively. There were no purchases or sales of equity securities during the three months ended March 31, 2019.

Mortgage-Backed Securities. The Company’s mortgage-backed securities available for sale increased $6.0 million, or 7.3%, to $87.8 million at March 31, 2019 from $81.8 million at December 31, 2018. Purchases of mortgage-backed securities totaled $9.1 million, partially offset by repayments of $3.5 million during the three month period. There were no sales of mortgage-backed securities during the three months ended March 31, 2019. Additionally, there was a $548,000 decrease in the unrealized loss on mortgage-backed securities during the period.

Loans. At March 31, 2019, net loans were $724.6 million, or 73.2% of total assets compared to $729.0 million, or 75.0% of total assets at December 31, 2018. The $4.4 million, or 0.6%, decrease in loans receivable was the result of loan payoffs and amortization exceeding loan production during the period. Home equity loans and lines of credit, 1-4 family residential and construction, and other loans decreased $3.2 million or 2.6%, $1.8 million or 0.7%, and $632,000 or 55.5%, respectively. These decreases were partially offset by an increase in commercial real estate loans and commercial business loans of $224,000 or 0.1%, and $1.1 million or 2.3%, respectively.

Office Properties and Equipment. Office properties and equipment increased $1.0 million, or 13.4%, to $8.8 million at March 31, 2019 from $7.8 million at December 31, 2018. The increase was primarily due to the implementation of ASU 2016-02, Leases (Topic 842) as of January 1, 2019. See Footnote 10 in the Notes to Consolidated Financial Statements (Unaudited) for additional information.

Deposits. The Company accepts deposits primarily from the areas in which the offices are located. The Company has consistently focused on building broader customer relationships and targeting small business customers to increase core deposits. The Company also relies on customer service to attract and retain deposits. The Company offers a variety of deposit accounts with a range of interest rates and terms. Deposit accounts consist of savings accounts, certificates of deposit, money market accounts, commercial and consumer checking accounts and individual retirement accounts. Interest rates, maturity terms, service fees and withdrawal penalties are established on a periodic basis. Deposit rates and terms are based primarily on current operating strategies and market interest rates, liquidity requirements and deposit growth goals.

Deposits increased $25.5 million, or 3.6%, to $743.4 million at March 31, 2019 from $717.9 million at December 31, 2018. Money market and interest-bearing checking accounts increased $19.3 million or 22.0% and $8.4 million or 8.4%, respectively. The increase in money market accounts includes $20.0 million received late in the quarter as a result of a new commercial relationship. These increases were partially offset by a decrease in non-interest demand accounts of $2.1 million, or 1.5%, during the three months ended March 31, 2019.

27

Borrowings. Borrowed funds decreased $9.5 million, or 8.5%, to $102.1 million at March 31, 2019 from $111.6 million at December 31, 2018. The decrease in borrowed funds was primarily due to the repayment of a maturing long term advance and pay downs on both amortizing long term advances and the overnight borrowing line. Federal Home Loan Bank advances decreased $7.9 million, or 7.5%, to $97.1 million from $105.0 million at December 31, 2018. No additional advances were entered into during the three months ended March 31, 2019. Included in the long-term borrowings on the March 31, 2019 Consolidated Statements of Financial Condition were $1.1 million in financing lease liabilities booked in the accordance with the implementation of ASU 2016-02, Leases (Topic 842). There were no short-term borrowings at March 31, 2019 compared to $4.5 million at December 31, 2018. During the three months ended March 31, 2019, proceeds from short-term borrowings were $53.5 million, offset by repayments of $58.0 million.

Stockholders’ Equity. Stockholders’ equity increased $2.2 million or 1.6%, to $140.1 million at March 31, 2019 from $137.9 million at December 31, 2018. The increase was a result of net income of $2.2 million earned during the three months ended March 31, 2019 and a $984,000 decrease in accumulated other comprehensive loss resulting from fair value adjustments on available for sale securities during the period partially offset by $1.0 million of dividends paid during the period.

Average Balance and Yields

The following tables set forth average balance sheets, average yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments were made. All average balances are daily average balances. Non-accrual loans were included in the computation of average balances, but have been reflected in the table as loans carrying a zero yield. The yields set forth below include the effect of deferred fees, discounts and premiums that are amortized or accreted to interest income or expense (dollars in thousands).

28

	For the Three Months Ended March 31,
	2019								2018
	Average Outstanding Balance			Interest		Yield/ Rate			Average Outstanding Balance			Interest		Yield/ Rate
Interest-earning assets:
Loans	$	731,294		$	8,016		4.39	%	$	750,658		$	7,916		4.23	%
Investment and mortgage-backed securities		151,209			1,042		2.76	%		141,083			912		2.58	%
FHLB and other restricted stocks		7,849			174		9.02	%		9,432			160		6.90	%
Interest-earning deposits		12,230			80		2.67	%		16,204			50		1.25	%
Total interest-earning assets		902,582			9,312		4.14	%		917,377			9,038		3.95	%
Noninterest-earning assets		66,353								62,703
Total assets	$	968,935							$	980,080
Interest-bearing liabilities:
Savings accounts	$	146,703			54		0.15	%		152,417			51		0.14	%
Certificates of deposit		246,854			1,245		2.05	%		212,477			777		1.48	%
Money market accounts		88,833			219		1.00	%		96,546			99		0.42	%
Demand and NOW accounts		102,799			75		0.30	%		96,056			47		0.20	%
Total interest-bearing deposits		585,189			1,593		1.10	%		557,496			974		0.71	%
Borrowings		105,153			564		2.15	%		146,355			655		1.79	%
Securities sold under agreements to repurchase		3,861			6		0.59	%		5,887			2		0.13	%
Total interest-bearing liabilities		694,203			2,163		1.26	%		709,738			1,631		0.93	%
Noninterest-bearing deposits		133,016								132,885
Noninterest-bearing liabilities		3,222								3,823
Total liabilities		830,441								846,446
Stockholders' equity		138,494								133,634
Total liabilities and stockholders' equity	$	968,935							$	980,080
Net interest income				$	7,149							$	7,407
Net interest rate spread (1)							2.88	%							3.02	%
Net interest-earning assets (2)	$	208,379							$	207,639
Net interest margin (3)							3.21	%							3.27	%
Average interest-earning assets to interest- bearing liabilities		130.02	%							129.26	%

(1) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(2) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

(3) Net interest margin represents net interest income divided by average total interest-earning assets.

29

Comparison of Operating Results for the Three Months Ended March 31, 2019 and 2018

General. Net income was $2.2 million for the quarters ended March 31, 2019 and March 31, 2018, respectively. Earnings per share for each of the quarters ended March 31, 2019 and March 31, 2018 was $0.47 for basic and $0.46 for fully diluted, respectively.

The Company’s annualized return on average assets (ROA) and return on average equity (ROE) for the quarter ended March 31, 2019 were 0.91% and 6.35%, respectively, compared to 0.89% and 6.56%, respectively, for the quarter ended March 31, 2018.

Net Interest Income. Net interest income for the quarter ended March 31, 2019 was $7.1 million, a decrease of 3.5% compared to $7.4 million for the quarter ended March 31, 2018. The decrease was primarily due to an increase in the average balance and the cost of interest-bearing deposits as well as a decrease in the average balance of loans receivable. These decreases were partially offset by an increase in the yield on interest-earning assets. The net interest rate spread and net interest margin were 2.88% and 3.21%, respectively for the three months ended March 31, 2019, compared to 3.02% and 3.27%, respectively for the three months ended March 31, 2018.

Interest and Dividend Income. Total interest and dividend income increased by $274,000, or 3.0%, to $9.3 million for the three months ended March 31, 2019 compared to $9.0 million for the three months ended March 31, 2018. The increase was primarily due to a 19 basis point increase in the average yield on interest-earning assets to 4.14% for the three months ended March 31, 2019 from 3.95% for the same period in the prior year. The decrease in the average balance of loans receivable was partially offset by an increase in the average balance of investments and mortgage-backed securities.

Interest income on loans increased $100,000, or 1.3%, to $8.0 million for the three months ended March 31, 2019 compared to $7.9 million for the three months ended March 31, 2018. The average yield on loans receivable increased by 16 basis points to 4.39% for the three months ended March 31, 2019 from 4.23% for the same period in the prior year. The increase in the average yield was primarily attributable to adjustable rate loans resetting higher as a result of increases in general market rates as well as new loan originations at higher interest rates during the period. Average loans receivable decreased by $19.4 million, or 2.6%, to $731.3 million for the three months ended March 31, 2019 from $750.7 million for the same period in the prior year.

Interest income on investment and mortgage-backed securities increased by $130,000, or 14.3%, to $1.0 million for the three months ended March 31, 2019 compared to $912,000 for the three months ended March 31, 2018. The increase was due primarily to an increase in the average yield earned on investment and mortgage-backed securities by 18 basis points to 2.76% for the three months ended March 31, 2019 from 2.58% for the same period in the prior year. The increase in the average yield was due to new security purchases at higher interest rates during the period as well as variable rate securities resetting higher as a result of increases in general market rates. In addition, the average balance of investment and mortgage backed securities increased by $10.1 million, or 7.2%, to $151.2 million for the three months ended March 31, 2019 compared to the prior period.

Interest income on FHLB stock and other restricted stock increased $14,000, or 8.8%, to $174,000 for the three months ended March 31, 2019 compared to $160,000 for the three months ended March 31, 2018. The increase is primarily due to the increase in the average yield to 9.02% for the three months ended March 31, 2019 from 6.90% for the same period in the prior year. The FHLB increased the dividend yield on both activity and membership stock as of the fourth quarter of 2018. The additional dividend income to true up the 2018 quarter was received in 2019. The average balance of FHLB stock and other restricted stock decreased $1.6 million, or 16.8%, to $7.8 million for the three months ended March 31, 2019 compared to the prior period.

Interest income on interest-earning deposits increased $30,000, or 60.0%, to $80,000 for the three months ended March 31, 2019 compared to $50,000 for the three months ended March 31, 2018. The increase is primarily due to a 142 basis point increase in the average yield to 2.67% for the three months ended March 31, 2019 from 1.25% for the same period in the prior year as a result of the rising short-term interest rates. The average balance of interest-earning deposits decreased $4.0 million, or 24.5%, to $12.2 million for the three months ended March 31, 2019 compared to the prior period.

Interest Expense. Total interest expense increased by $532,000, or 32.6%, to $2.2 million for the three months ended March 31, 2019 from $1.6 million for the three months ended March 31, 2018. The increase in interest expense was due to a 33 basis point increase in the average cost of interest-bearing liabilities to 1.26% for the three months ended March 31, 2019 from 0.93% for the same prior year period. The average balance of interest-bearing liabilities decreased by $15.5 million, or 2.2%, to $694.2 million for the three months ended March 31, 2019 from $709.7 million for the same period in the prior year. The decrease includes a decrease in the average balance of borrowed funds partially offset by an increase in the average balance of certificates of deposit.

Interest expense on deposits increased by $619,000, or 63.6%, to $1.6 million for the three months ended March 31, 2019 from $974,000 for the three months ended March 31, 2018. The increase was the result of an increase in both the average balance and the cost of interest-bearing deposits. The average balance of interest-bearing deposits increased $27.7 million, or 5.0% for the three months ended March 31, 2019 compared to the same period in the prior year. Additionally, the cost of interest-bearing deposits increased by 39 basis points to 1.10% for the three months ended March 31, 2019 from 0.71% for the three months ended March 31, 2018 due to a rising interest rate market.

30

Interest expense on borrowed funds decreased $91,000 or 13.9%, to $564,000 for the three months ended March 31, 2019 from $655,000 for the three months ended March 31, 2018. The decrease is the result of a $41.2 million, or 28.2%, decrease in the average balance of borrowings to $105.2 million for the three months ended March 31, 2019 compared to the same period in the prior year. Included in the decrease in the average balance of borrowings is a $33.6 million decrease in the average balance of FHLB short term borrowings for the quarter ended March 31, 2019 compared to the same period in the prior year. The cost of borrowings increased by 36 basis points to 2.15% for the quarter ended March 31, 2019 from 1.79% for the quarter ended March 31, 2018 due to the repayment of lower cost borrowings.

Provision for Loan Losses. Provision for loan losses was $108,000 for the three months ended March 31, 2019. No provision for loan losses were recorded for the three months ended March 31, 2018. In management’s judgment, the allowance for loan losses is at a sufficient level that reflects the losses inherent in the loan portfolio relative to loan mix, economic conditions and historical loss experience. See Footnote 8 in the Notes to Consolidated Financial Statements (Unaudited) for additional information.

Noninterest Income. Noninterest income totaled $1.1 million for each of the three months ended March 31, 2019 and March 31, 2018. For the three months ended March 31, 2019, there was an increase in investment management fees and net loan sale gains of $70,000 or 53.0% and $30,000 or 750.0%, respectively, compared to the same period in the prior year. These increases were partially offset by a $40,000 decrease in the net gains on the sales of equity securities as there were no sales during the quarter ended March 31, 2019 compared to the quarter ended March 31, 2018.

Noninterest Expenses. Noninterest expenses decreased $286,000, or 5.0%, to $5.5 million for the three months ended March 31, 2019 compared to $5.8 million for the three months ended March 31, 2018. The decrease was primarily the result of a decrease in compensation and employee benefits in the current period. The quarter ended March 31, 2018 included $510,000 related to severance paid during the period.

Income Tax Expense. The Company recorded a provision for income tax of $543,000 for the three months ended March 31, 2019 compared to $576,000 for the three months ended March 31, 2018. The effective tax rate was 20.0% for the three months ended March 31, 2019 and 21.0% for the three months ended March 31, 2018.

Non-Performing and Problem Assets

The table below sets forth the amounts and categories of non-performing assets at the dates indicated. At March 31, 2019 and December 31, 2018, there were no TDRs (loans for which a portion of interest or principal has been forgiven and loans modified at interest rates materially less than current market rates).

	March 31,			December 31,
	2019			2018
Non-accrual loans:
One-to-four family residential and construction	$	1,606		$	1,727
Commercial real estate		576			661
Home equity loans and lines of credit		253			258
Commercial business		56			62
Other		10			19
Total nonaccrual loans		2,501			2,727
Loans past due 90 days and still accruing		-			3
Total non-performing loans		2,501			2,730
Foreclosed real estate		531			486
Total non-performing assets	$	3,032		$	3,216
Ratios:
Non-accrual loans to total loans		0.34	%		0.37	%
Non-performing loans to total loans		0.34	%		0.37	%
Non-performing assets to total assets		0.31	%		0.33	%
Allowance for loan losses to non-performing loans		174.93	%		161.68	%

At March 31, 2019, loans in process of foreclosure totaled $362,000.

31

Liquidity and Capital Resources

Liquidity is the ability to meet current and future financial obligations. The Company’s primary sources of funds consist of deposit inflows, loan repayments and sales, borrowings from the Federal Home Loan Bank of Pittsburgh, repurchase agreements and maturities, principal repayments and the sale of available-for-sale securities. While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and mortgage prepayments are greatly influenced by general interest rates, economic conditions and competition. The Company’s Asset/Liability Management Committee, under the direction of the Chief Financial Officer, is responsible for establishing and monitoring liquidity targets and strategies in order to ensure that sufficient liquidity exists for meeting the borrowing needs and deposit withdrawals of the Bank’s customers as well as unanticipated contingencies. At March 31, 2019, the Company’s cash and cash equivalents amounted to $34.7 million. Management believes there is enough sources of liquidity to satisfy short- and long-term liquidity needs as of March 31, 2019.

Certificates of deposit due within one year of March 31, 2019 totaled $83.2 million, or 11.2% of total deposits. If these deposits do not remain with the Bank, it may be required to seek other sources of funds, including loan and securities sales, repurchase agreements and Federal Home Loan Bank advances. Management believes, however, based on historical experience and current market interest rates, the Bank will retain upon maturity a large portion of the certificates of deposit with maturities of one year or less. The Company’s maximum borrowing capacity at the FHLB at March 31, 2019 was $420.1 million.

Stockholders’ equity was $140.1 million at March 31, 2019, an increase of $2.2 million or 1.6% from $137.9 million at December 31, 2018. The increase was a result of net income of $2.2 million earned during the three months ended March 31, 2019 as well as a $984,000 decrease in accumulated other comprehensive loss resulting from fair value adjustments on available for sale securities during the period partially offset by $1.0 million dividends paid during the period.

Current regulatory requirements specify that the Bank and similar institutions must maintain regulatory capital sufficient to meet tier 1 leverage, common equity tier 1 risk-based, tier 1 risk-based and total risk-based capital ratios of at least 4.00%, 4.50%, 6.00% and 8.00%, respectively. At March 31, 2019, the Bank was in compliance with all regulatory capital requirements ratios of 11.7%, 16.6%, 16.6% and 17.2%, respectively, and was considered “well capitalized” under regulatory guidelines.

Off-Balance Sheet Arrangements and Aggregate Contractual Obligations

Commitments. As a financial services provider, the Company routinely is a party to various financial instruments with off-balance-sheet risks, such as commitments to extend credit and unused lines of credit. While these contractual obligations represent future cash requirements, a significant portion of commitments to extend credit may expire without being drawn upon. Such commitments are subject to the same credit policies and approval process accorded to loans the Bank makes. At March 31, 2019, the Company had $139.2 million in loan commitments outstanding, $70.1 million of which were for commercial loan originations and $7.5 million which were for one- to four-family and construction loan originations. In addition to those commitments to originate loans, loan commitments outstanding included $35.1 million in unused home equity lines of credit to borrowers and $26.5 million in other commitments.

Contractual Obligations. In the ordinary course of operations, the Company enters into certain contractual obligations. Such obligations include data processing services, operating leases for premises and equipment, agreements with respect to borrowed funds and deposit liabilities.

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

ITEM 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of March 31, 2019, an evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer, the President and the Executive Vice President and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934). Based on that evaluation, the Company’s management, including the Chief Executive Officer, the President and the Executive Vice President and Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were effective as of March 31, 2019.

32

Disclosure controls and procedures are the controls and other procedures that are designed to ensure that the information required to be disclosed by the Company in reports filed and submitted under the Securities Exchange Act of 1934, as amended (“Exchange Act”) is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in reports filed under the Exchange Act is accumulated and communicated to the Company’s management, including the principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

During the quarter ended March 31, 2019, there were no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15-d15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

As of March 31, 2019, the Company was not involved in any pending legal proceedings as a defendant other than routine legal proceedings occurring in the ordinary course of business. As of March 31, 2019, the Company was not involved in any legal proceedings the outcome of which would be material to its financial condition or results of operations.

Item 1A. Risk Factors

In addition to the other information set forth in this quarterly report, you should carefully consider the factors discussed under the heading “Risk Factors” contained in the Company’s annual report on Form 10-K filed with the SEC on March 18, 2019. The Company’s evaluation of the risk factors applicable to it has not changed materially from those disclosed in the Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

33

Item 6. Exhibits

Exhibit
Number	Description
3.1	Articles of Incorporation of Standard AVB Financial Corp., as amended (1)
3.2	Bylaws of Standard AVB Financial Corp., as amended (2)
4.1	Form of common stock certificate of Standard AVB Financial Corp. (3)
31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	Written Statement of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.0	The following materials for the three months ended March 31, 2019, formatted in XBRL (Extensible Business Reporting Language): (i) Statements of Financial Condition, (ii) Statements of Income, (iii) Statements of Comprehensive Income, (iv) Statements of Changes in Stockholder’s Equity, (v) Statements of Cash Flows, and (vi) Notes to Financial Statements.

(1) Incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K as filed with the Securities and Exchange Commission on April 12, 2017.

(2) Incorporated by reference to Exhibit 3.2 to the Company’s Form 8-K as filed with the Securities and Exchange Commission on August 24, 2017.

(3) Incorporated by reference to Exhibit 4 to the Company’s Annual Report on Form 10-K, as filed on April 2, 2018.

34

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	STANDARD AVB FINANCIAL CORP.
Date:  May 10, 2019	/s/ Timothy K. Zimmerman
	Timothy K. Zimmerman
	Chief Executive Officer
Date:  May 10, 2019	/s/ Susan A. Parente
	Susan A. Parente
	Executive Vice President and Chief Financial Officer

35

EX-31.1

Exhibit 31.1

Certification of Principal Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Timothy K. Zimmerman, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Standard AVB Financial Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  May 10, 2019	/s/ Timothy K. Zimmerman
	Timothy K. Zimmerman
	Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Principal Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Susan A. Parente, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Standard AVB Financial Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  May 10, 2019	/s/ Susan A. Parente
	Susan A. Parente
	Executive Vice President and Chief Financial Officer

EX-32

Exhibit 32

Certification of Chief Executive Officer and Chief Financial Officer

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Timothy K. Zimmerman, Chief Executive Officer of Standard AVB Financial Corp. (the “Company”), and Susan A. Parente, Executive Vice President and Chief Financial Officer of the Company, each certify in his or her capacity as an executive officer of the Company that he or she has reviewed the quarterly report on Form 10-Q for the quarter ended March 31, 2019 (the “Report”) and that to the best of his or her knowledge:

1. the Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  May 10, 2019	/s/ Timothy K. Zimmerman
	Timothy K. Zimmerman
	Chief Executive Officer
Date:  May 10, 2019	/s/ Susan A. Parente
	Susan A. Parente
	Executive Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 06, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	Standard AVB Financial Corp.
Entity Central Index Key	0001492915
Trading Symbol	stnd
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		4,813,646
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	false

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Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
ASSETS
Cash on hand and due from banks	$ 3,201	$ 3,371
Interest-earning deposits in other institutions	31,500	12,836
Cash and Cash Equivalents	34,701	16,207
Investment securities available for sale, at fair value	66,848	66,169
Equity securities, at fair value	2,752	2,725
Mortgage-backed securities available for sale, at fair value	87,771	81,794
Certificate of deposit	249	249
Federal Home Loan Bank and other restricted stock, at cost	7,463	7,900
Loans receivable, net of allowance for loan losses of $4,375 and $4,414	724,605	728,982
Loans held for sale	198
Foreclosed real estate	531	486
Office properties and equipment, net	8,835	7,794
Bank-owned life insurance	22,703	22,572
Goodwill	25,836	25,836
Core deposit intangible	2,315	2,508
Accrued interest receivable and other assets	4,943	8,574
TOTAL ASSETS	989,750	971,796
Deposits:
Demand, savings and club accounts	496,515	471,177
Certificate accounts	246,907	246,697
Total Deposits	743,422	717,874
Federal Home Loan Bank short-term borrowings		4,524
Long-term borrowings	98,148	104,963
Securities sold under agreements to repurchase	3,988	2,137
Advance deposits by borrowers for taxes and insurance	38	45
Accrued interest payable and other liabilities	4,010	4,363
TOTAL LIABILITIES	849,606	833,906
Stockholders' Equity
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized, none issued
Common stock, $0.01 par value per share, 40,000,000 shares authorized, 4,822,646 and 4,812,991 shares outstanding, respectively	48	48
Additional paid-in-capital	75,663	75,571
Retained earnings	66,441	65,301
Unearned Employee Stock Ownership Plan (ESOP) shares	(1,648)	(1,686)
Accumulated other comprehensive loss	(360)	(1,344)
TOTAL STOCKHOLDERS' EQUITY	140,144	137,890
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 989,750	$ 971,796

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Consolidated Statements of Financial Condition (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Loans receivable, net of allowance for loan losses (in dollars)	$ 4,375	$ 4,414
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares outstanding	4,822,646	4,812,991

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Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Interest and Dividend Income
Loans, including fees	$ 8,016	$ 7,916
Mortgage-backed securities	548	457
Investments:
Taxable	115	100
Tax-exempt	379	355
Federal Home Loan Bank and other restricted stock	174	160
Interest-earning deposits and federal funds sold	80	50
Total Interest and Dividend Income	9,312	9,038
Interest Expense
Deposits	1,593	974
Federal Home Loan Bank short-term borrowings	28	158
Long-term borrowings	536	497
Securities sold under agreements to repurchase	6	2
Total Interest Expense	2,163	1,631
Net Interest Income	7,149	7,407
Provision for Loan Losses	108
Net Interest Income after Provision for Loan Losses	7,041	7,407
Noninterest Income
Earnings on bank-owned life insurance	131	131
Net losses on sales of securities	(7)
Net gains on sales of equities		40
Net equity securities fair value adjustment gains	27	50
Net loan sale gains	34	4
Other income	62	15
Total Noninterest Income	1,138	1,082
Noninterest Expenses
Compensation and employee benefits	3,221	3,430
Data processing	177	154
Premises and occupancy costs	673	685
Automatic teller machine expense	137	129
Federal deposit insurance	68	81
Core deposit amortization	193	257
Other operating expenses	998	1,017
Total Noninterest Expenses	5,467	5,753
Income before Income Tax Expense	2,712	2,736
Income Tax Expense
Federal	357	476
State	186	100
Total Income Tax Expense	543	576
Net Income	$ 2,169	$ 2,160
Earnings Per Share:
Basic earnings per common share (in dollars per share)	$ 0.47	$ 0.47
Diluted earnings per common share (in dollars per share)	0.46	0.46
Cash dividends paid per common share (in dollars per share)	$ 0.22	$ 0.22
Basic weighted average shares outstanding (in shares)	4,659,335	4,622,384
Diluted weighted average shares outstanding (in shares)	4,765,175	4,738,280
Service charges
Noninterest Income
Fees and commissions	$ 689	$ 710
Investment management fees
Noninterest Income
Fees and commissions	$ 202	$ 132

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net Income	$ 2,169	$ 2,160
Other comprehensive income (loss):
Change in unrealized gain (loss) on securities available for sale	1,236	(2,460)
Tax effect	(260)	517
Reclassification adjustment for security losses realized in income	7
Tax effect	(1)
Change in pension obligation for defined benefit plan	2	3
Tax effect		(1)
Total other comprehensive income (loss)	984	(1,941)
Total Comprehensive Income	$ 3,153	$ 219

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Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Unearned ESOP Shares	Accumulated Other Comprehensive Loss	Total
Balance at Dec. 31, 2017	$ 48	$ 75,063	$ 60,172	$ (1,839)	$ 528	$ 133,972
Increase (Decrease) in Stockholders' Equity
Net income			2,160			2,160
Other comprehensive loss					(1,941)	(1,941)
Change in accounting principle 'for adoption of ASU 2016-01			416		(416)
Stock repurchases (2,845 shares)		(86)				(86)
Cash dividends ($0.22 per share)			(1,059)			(1,059)
Stock options exercised (8,801 shares)		155				155
Compensation expense on ESOP		71		38		109
Balance at Mar. 31, 2018	48	75,203	61,689	(1,801)	(1,829)	133,310
Balance at Dec. 31, 2018	48	75,571	65,301	(1,686)	(1,344)	137,890
Increase (Decrease) in Stockholders' Equity
Net income			2,169			2,169
Other comprehensive loss					984	984
Stock repurchases (2,845 shares)		(180)				(180)
Cash dividends ($0.22 per share)			(1,029)			(1,029)
Stock options exercised (8,801 shares)		189				189
Compensation expense on stock awards		13				13
Compensation expense on ESOP		70		38		108
Balance at Mar. 31, 2019	$ 48	$ 75,663	$ 66,441	$ (1,648)	$ (360)	$ 140,144

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Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Consolidated Statement of Changes in Stockholders' Equity
Stock repurchases, shares	5,557	2,845
Cash dividends paid per common share (in dollars per share)	$ 0.22	$ 0.22
Number of stock options exercised	10,665	8,801

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash Flows From Operating Activities
Net income	$ 2,169	$ 2,160
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	446	305
Provision for loan losses	108
Amortization of core deposit intangible	193	257
Net loss on sale of securities available for sale	7
Net gain on sale of equity securities		(40)
Origination of loans held for sale	(1,780)	(1,116)
Proceeds from sale of loans held for sale	1,814	1,120
Net equity securities fair value adjustment gains	(27)	(50)
Net loan sale gains	(34)	(4)
Compensation expense on ESOP	108	109
Compensation expense on stock awards	13
Deferred income taxes	743	635
Increase in accrued interest receivable	(181)	(70)
Earnings on bank-owned life insurance	(131)	(131)
Increase (decrease) in accrued interest payable	9	(47)
Other, net	1,989	890
Net Cash Provided by Operating Activities	5,446	4,018
Cash Flows Used In Investing Activities
Net decrease in loans	4,026	4,239
Purchases of investment securities	(3,221)	(2,556)
Purchases of equity securities		(387)
Purchases of mortgage-backed securities	(9,112)	(16,147)
Proceeds from maturities of certificates of deposits		250
Proceeds from maturities/principal repayments/calls of investment securities	35	30
Proceeds from maturities/principal repayments/calls of mortgage-backed securities	3,523	2,377
Proceeds from sales of investment securities	3,696
Proceeds from sales of equity securities		178
Purchase of Federal Home Loan Bank stock	(1,033)	(2,207)
Redemption of Federal Home Loan Bank stock	1,470	2,255
Net purchases of office properties and equipment	(203)	(93)
Net Cash Used in Investing Activities	(819)	(12,061)
Cash Flows From Financing Activities
Net increase (decrease) in demand, savings and club accounts	25,338	(2,378)
Net increase (decrease) in certificate accounts	210	(381)
Net increase in securities sold under agreements to repurchase	1,851	319
Repayments of Federal Home Loan Bank short-term borrowings	(57,961)	(84,500)
Proceeds from Federal Home Loan Bank short-term borrowing	53,437	80,362
Repayments of Federal Home Loan Bank advances	(7,879)	(6,356)
Proceeds from Federal Home Loan Bank advances		20,000
Lease liabilies payments	(102)
Net decrease in advance deposits by borrowers for taxes and insurance	(7)	(68)
Exercise of stock options	189	155
Dividends paid	(1,029)	(1,059)
Stock repurchases	(180)	(86)
Net Cash Provided by Financing Activities	13,867	6,008
Net Increase (Decrease) in Cash and Cash Equivalents	18,494	(2,035)
Cash and Cash Equivalents - Beginning	16,207	16,265
Cash and Cash Equivalents - Ending	34,701	14,230
Supplementary Cash Flows Information:
Interest paid	2,154	1,678
Income taxes paid	273	$ 36
Investment security purchased not settled	496
Loans held for sale	198
Right-of-use asset	(1,132)
Lease liability	1,158
Prepaid lease payments	$ (26)

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Consolidation

3 Months Ended

Mar. 31, 2019

Consolidation

Consolidation

(1) Consolidation

The accompanying consolidated financial statements include the accounts of Standard AVB Financial Corp. (the “Company”) and its direct and indirect wholly owned subsidiaries, Standard Bank, PaSB (the “Bank”), and Westmoreland Investment Company. All significant intercompany accounts and transactions have been eliminated in consolidation. Standard AVB Financial Corp. owns all of the outstanding shares of common stock of the Bank.

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Basis of Presentation

3 Months Ended

Mar. 31, 2019

Basis Of Presentation [Abstract]

Basis of Presentation

(2) Basis of Presentation

The accompanying consolidated financial statements were prepared in accordance with instructions to Form 10-Q, and therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles in the United States. All adjustments (consisting of normal recurring adjustments), which, in the opinion of management are necessary for a fair presentation of the financial statements and to make the financial statements not misleading have been included. The unaudited consolidated financial statements and other financial information contained in this quarterly report on Form 10-Q should be read in conjunction with the audited financial statements of Standard AVB Financial Corp. at and for the year ended December 31, 2018 contained in the Company’s annual report on Form 10-K as filed with the Securities and Exchange Commission on March 18, 2019. The results for the three month period ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any future interim period. Certain amounts in the 2018 financial statements have been reclassified to conform to the 2019 presentation format. These reclassifications had no effect on stockholders’ equity or net income.

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Earnings per Share

3 Months Ended

Mar. 31, 2019

Earnings per Share

Earnings per Share

(3) Earnings per Share

Basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. The following table sets forth the computation of basic and diluted EPS for the three months ended March 31, 2019 and March 31, 2018 (dollars in thousands, except per share data):

	Three Months Ended March 31,
	2019		2018
Net income available to common stockholders	$	2,169	$	2,160
Basic EPS:
Weighted average shares outstanding		4,659,335		4,622,384
Basic EPS	$	0.47	$	0.47
Diluted EPS:
Weighted average shares outstanding		4,659,335		4,622,384
Dilutive effect of common stock equivalents		105,840		115,896
Total diluted weighted average shares outstanding		4,765,175		4,738,280
Diluted EPS	$	0.46	$	0.46

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Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2019

Recent Accounting Pronouncements

Recent Accounting Pronouncements

(4) Recent Accounting Pronouncements

Accounting Standards Adopted in 2019

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet.  Additionally, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) – Targeted Improvements, which, among other things, provided an additional transition method that allows entities to not apply the guidance in ASU 2016-02 in the comparative periods presented in the financial statements and instead to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted ASU 2016-02 and its related amendments as of January 1, 2019, which resulted in the recognition of finance right-of-use assets and finance lease liabilities totaling $1.1 million and $1.2 million, respectively. The Company elected to adopt the transition relief provisions from ASU 2018-11 and recorded the impact of adoption as of January 1, 2019, without restating any prior-year amounts or disclosures. Additional lease disclosures can be found in Note 10 contained herein. There was no cumulative effect adjustment to the opening balance of retained earnings required.

Accounting Standards Pending Adoption

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, which amended the effective date of ASU 2016-13 for entities other than public business entities. The ASU also clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Rather, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. The Company has been working with a third party to evaluate the various CECL methodologies and decided to utilize the vintage method. The Company is continuing to work through implementation of that method and determine what impact it will have on the consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is a U.S. Securities and Exchange Commission (“SEC”) filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. A public business entity that is not an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020. All other entities, including not-for-profit entities that are adopting the amendments in this Update should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021. 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 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.

In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements, which addressed issues lessors sometimes encounter. Specifically addressed in this Update were issues related to 1) determining the fair value of the underlying asset by the lessor that are not manufacturers or dealers (generally financial institutions and captive finance companies), and 2) lessors that are depository and lending institutions should classify principal and payments received under sales-type and direct financing leases within investing activities in the cash flow statement. The ASU also exempts both lessees and lessors from having to provide the interim disclosures required by ASC 250-10-50-3 in the fiscal year in which a company adopts the new leases standard. The amendments addressing the two lessor accounting issues are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other entities, the effective date is for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. This Update is not expected to have a significant impact on the Company’s financial statements.

In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which affects a variety of topics in the Codification and applies to all reporting entities within the scope of the affected accounting guidance. This Update is not expected to have a significant impact on the Company’s financial statements.

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Investment Securities

3 Months Ended

Mar. 31, 2019

Available-for-sale securities other than mortgage backed securities

Schedule of Available-for-sale Securities [Line Items]

Investment Securities

(5) Investment Securities

Investment securities available for sale at March 31, 2019 and December 31, 2018 are as follows (dollars in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
March 31, 2019:
U.S. government and agency obligations due:
Beyond 1 year but within 5 years	$	7,435	$	1		(48	)	$	7,388
Beyond 5 year but within 10 years		942		3		-			945
Corporate bonds due:
Within 1 year		1,755		-		(7	)		1,748
Beyond 1 year but within 5 years		1,474		22		-			1,496
Beyond 5 years but within 10 years		996		26		-			1,022
Municipal obligations due:
Beyond 1 year but within 5 years		5,215		296		-			5,511
Beyond 5 years but within 10 years		20,123		327		(1	)		20,449
Beyond 10 years		28,184		216		(111	)		28,289
	$	66,124	$	891	$	(167	)	$	66,848
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:
Within 1 year		1,758		-		(15	)		1,743
Beyond 1 year but within 5 years		1,472		2		(10	)		1,464
Beyond 5 years but within 10 years		996		-		(2	)		994
Municipal obligations due:
Beyond 1 year but within 5 years		6,658		298		-			6,956
Beyond 5 years but within 10 years		22,384		132		(81	)		22,435
Beyond 10 years		24,504		82		(279	)		24,307
	$	66,140	$	514	$	(485	)	$	66,169

For the three months ended March 31, 2019, losses on sales of investment securities were $7,000 and proceeds from such sales were $3.7 million. There were no sales of investment securities for the three months ended March 31, 2018.

Investment securities with a carrying value of $11.6 million were pledged to secure repurchase agreements and public funds accounts at both March 31, 2019 and December 31, 2018. 

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 March 31, 2019 and December 31, 2018 (dollars in thousands):

	Less than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
March 31, 2019:
U.S. government and agency obligations	$	-	$	-		$	6,897	$	(48	)	$	6,897	$	(48	)
Corporate bonds		-		-			1,748		(7	)		1,748		(7	)
Municipal obligations		950		(1	)		7,332		(111	)		8,282		(112	)
Total	$	950	$	(1	)	$	15,977	$	(166	)	$	16,927	$	(167	)
December 31, 2018:
U.S. government and agency obligations	$	-	$	-		$	8,270	$	(98	)	$	8,270	$	(98	)
Corporate bonds		1,490		(12	)		1,743		(15	)		3,233		(27	)
Municipal obligations		10,049		(55	)		11,730		(305	)		21,779		(360	)
Total	$	11,539	$	(67	)	$	21,743	$	(418	)	$	33,282	$	(485	)

At March 31, 2019, the Company held 20 investment securities in an unrealized loss position. The decline in the fair value of these securities resulted primarily from interest rate fluctuations. The Company does not intend to sell these securities nor is it more likely than not that the Company would be required to sell these securities before their anticipated recovery. Additionally, the Company believes the collection of the investment principal and related interest is probable. Based on the above, the Company considers all of the unrealized losses to be temporary impairment losses.

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Equity Securities

3 Months Ended

Mar. 31, 2019

Equity Securities [Abstract]

Equity Securities

(6) Equity Securities

The following table presents the net gains and losses on equity investments recognized in earnings during the three months ended March 31, 2019 and March 31, 2018, and the portion of unrealized gains and losses for those periods that relate to equity investments held (dollars in thousands):

	Three Months Ended March 31,
	2019		2018
Net equity securities fair value adjustment gains	$	27	$	50
Net gains realized on the sale of equity securities during the period		-		40
Gains recognized on equity securities during the period	$	27	$	90

There were no sales of equity securities for the three months ended March 31, 2019. During the three months ended March 31, 2018, gains on sales of equity securities were $40,000 and proceeds from such sales were $178,000.

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Mortgage-Backed Securities

3 Months Ended

Mar. 31, 2019

Mortgage-backed securities

Schedule of Available-for-sale Securities [Line Items]

Mortgage-Backed Securities

(7) Mortgage-Backed Securities

Mortgage-backed securities available for sale at March 31, 2019 and December 31, 2018 are as follows (dollars in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
March 31, 2019:
Government pass-throughs:
Ginnie Mae	$	19,618	$	23	$	(231	)	$	19,410
Fannie Mae		20,107		47		(164	)		19,990
Freddie Mac		12,291		12		(110	)		12,193
Private pass-throughs		23,819		-		(308	)		23,511
Collateralized mortgage obligations		12,813		4		(150	)		12,667
	$	88,648	$	86	$	(963	)	$	87,771
December 31, 2018:
Government pass-throughs:
Ginnie Mae	$	19,213	$	1	$	(324	)	$	18,890
Fannie Mae		13,952		7		(339	)		13,620
Freddie Mac		12,662		-		(252	)		12,410
Private pass-throughs		25,064		-		(349	)		24,715
Collateralized mortgage obligations		12,328		11		(180	)		12,159
	$	83,219	$	19	$	(1,444	)	$	81,794

Private pass-throughs include Small Business Administration (SBA) securities that are each an aggregation of SBA guaranteed portions of loans made by SBA lenders under section 7(a) of the Small Business Act. The guaranty is backed by the full faith and credit of the United States.

There were no sales of mortgage-backed securities for the three months ended March 31, 2019 and March 31, 2018, respectively.

The amortized cost and fair value of mortgage-backed securities at March 31, 2019, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to repay obligations with or without prepayment penalties (dollars in thousands):

	Amortized Cost		Fair Value
Due after one year through five years	$	817	$	817
Due after five years through ten years		6,250		6,233
Due after ten years		81,581		80,721
Total Mortgage-Backed Securities	$	88,648	$	87,771

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 March 31, 2019 and December 31, 2018 (dollars in thousands):

	Less than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
March 31, 2019:
Government pass-throughs:
Ginnie Mae	$	-	$	-		$	14,367		(231	)	$	14,367	$	(231	)
Fannie Mae		-		-			10,736		(164	)		10,736		(164	)
Freddie Mac		-		-			8,660		(110	)		8,660		(110	)
Private pass-throughs		2,085		(19	)		20,613		(289	)		22,698		(308	)
Collateralized mortgage obligations		1,884		(11	)		8,005		(139	)		9,889		(150	)
Total	$	3,969	$	(30	)	$	62,381	$	(933	)	$	66,350	$	(963	)
December 31, 2018:
Government pass-throughs:
Ginnie Mae	$	4,850	$	(26	)	$	13,794	$	(298	)	$	18,644	$	(324	)
Fannie Mae		403		(2	)		12,152		(337	)		12,555		(339	)
Freddie Mac		680		(24	)		11,699		(228	)		12,379		(252	)
Private pass-throughs		14,436		(134	)		9,359		(215	)		23,795		(349	)
Collateralized mortgage obligations		4,091		(40	)		6,048		(140	)		10,139		(180	)
Total	$	24,460	$	(226	)	$	53,052	$	(1,218	)	$	77,512	$	(1,444	)

At March 31, 2019, the Company held 61 mortgage-backed securities in an unrealized loss position. The decline in the fair value of these securities resulted primarily from interest rate fluctuations. The Company does not intend to sell these securities nor is it more likely than not that the Company would be required to sell these securities before their anticipated recovery. Additionally, the Company believes the collection of the investment principal and related interest is probable. Based on the above, the Company considers all of the unrealized loss to be temporary impairment loss.

Mortgage-backed securities with a carrying value of $10.3 million and $10.4 million were pledged to secure repurchase agreements and public funds accounts at March 31, 2019 and December 31, 2018, respectively.

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Loans Receivable and Related Allowance for Loan Losses

3 Months Ended

Mar. 31, 2019

Receivables [Abstract]

Loans Receivable and Related Allowance for Loan Losses

(8) Loans Receivable and Related Allowance for Loan Losses

The following table summarizes the primary segments of the loan portfolio, and the related allowance for loan losses, as of March 31, 2019 and December 31, 2018 (dollars in thousands):

	Real Estate Loans
	One-to-four-				Home
	family		Commercial		Equity Loans
	Residential and		Real		and Lines		Commercial		Other
	Construction		Estate		of Credit		Business		Loans		Total
March 31, 2019:
Collectively evaluated for impairment	$	252,071	$	308,999	$	120,129	$	47,274	$	507	$	728,980
Individually evaluated for impairment		-		-		-		-		-		-
Total loans before allowance for loan losses	$	252,071	$	308,999	$	120,129	$	47,274	$	507	$	728,980
December 31, 2018:
Collectively evaluated for impairment	$	253,913	$	308,775	$	123,373	$	46,196	$	1,139	$	733,396
Individually evaluated for impairment		-		-		-		-		-		-
Total loans before allowance for loan losses	$	253,913	$	308,775	$	123,373	$	46,196	$	1,139	$	733,396

Total loans at March 31, 2019 and December 31, 2018 were net of deferred loan fees of $247,000 and $226,000 respectively. The Company’s primary business activity is with customers located within its local trade area. Although the Company has a diversified loan portfolio, loans outstanding to individuals and businesses are dependent upon the local economic conditions in its immediate trade area.

The segments of the Bank’s loan portfolio are disaggregated to a level that allows management to monitor risk and performance. The three segments are: real estate, commercial business and other. The real estate loan segment is further disaggregated into three classes. One-to-four family residential mortgages (including residential construction loans) includes 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 (“TDR”). Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. The definition of “impaired loans” is not the same as the definition of “nonaccrual loans,” although the two categories overlap. The Company may choose to place a loan on nonaccrual status due to payment delinquency or uncertain collectability, while not classifying the loan as impaired if the loan is not a commercial business or commercial real estate loan. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company does not separately evaluate individual consumer and residential mortgage loans for impairment, unless such loan is part of a larger relationship that is impaired, has a classified risk rating, or is a TDR.

Once the decision has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is calculated by comparing the recorded investment in the loan to the fair value of the loan using one of three methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs. The appropriate method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis. The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition.

Consistent with accounting and regulatory guidance, the Company recognizes a TDR when the Bank, for economic or legal reasons related to a borrower's financial difficulties, grants a concession to the borrower that would not normally be considered. Regardless of the form of concession granted, the Company's objective in offering a TDR is to increase the probability of repayment of the borrower's loan. To be considered a TDR, the borrower must be experiencing financial difficulties and the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that would not otherwise be considered. The Company did not modify any loans as TDRs during the three month periods ended March 31, 2019 or 2018 nor did it have any TDRs within the preceding year where a concession had been made that then defaulted during the three month periods ending March 31, 2019 or 2018.

There were no impaired loans at March 31, 2019 or December 31, 2018. The following table presents the average recorded investment in impaired loans and related interest income recognized for the three months ended March 31, 2019 and March 31, 2018 (dollars in thousands):

	For the Three Months Ended March 31,
	2019		2018
Average investment in impaired loans:
Commercial real estate	$	-	$	295
	$	-	$	295
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 rating and the criticized ratings of Special Mention, Substandard and Doubtful within the Company’s internal risk rating system as of March 31, 2019 and December 31, 2018 (dollars in thousands):

			Special
	Pass		Mention		Substandard		Doubtful		Total
March 31, 2019:
Real estate loans:
One-to-four-family residential and construction	$	250,464	$	-	$	1,607	$	-	$	252,071
Commercial real estate		306,559		1,784		656		-		308,999
Home equity loans and lines of credit		119,816		60		253		-		120,129
Commercial business loans		46,992		226		56		-		47,274
Other loans		497		-		10		-		507
Total	$	724,328	$	2,070	$	2,582	$	-	$	728,980
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

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due based on the loans’ contractual due dates. Management considers nonperforming loans to be those loans that are past due 90 days or more and are still accruing as well as all nonaccrual loans. At March 31 2019, there were 11 loans on non-accrual status that were less than 90 days past due totaling $1.2 million. 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 March 31, 2019 and December 31, 2018 (dollars in thousands): 

			30-59 Days		60-89 Days				90 Days Past		Total
	Current		Past Due		Past Due		Non-Accrual		Due & Accruing		Loans
March 31, 2019:
Real estate loans:
One-to-four-family residential and construction	$	249,086	$	1,379	$	-	$	1,606	$	-	$	252,071
Commercial real estate		307,954		469		-		576		-		308,999
Home equity loans and lines of credit		119,573		264		39		253		-		120,129
Commercial business loans		47,171		47		-		56		-		47,274
Other loans		490		4		3		10		-		507
Total	$	724,274	$	2,163	$	42	$	2,501	$	-	$	728,980
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

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 three months ended March 31, 2019, 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 charge-offs incurred during the period as well as growth in the loan balances included in the allowance calculation for that loan class. The increase for the Commercial Business loan class was the result of both an increase in the loan balances included in the allowance calculation for that loan class as well as an increase in the qualitative factors for the period. The Other loan class increased primarily due to the charge-offs incurred during the period. 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 as well as decreases in the loan balances included in the allowance calculation for those loan classes during the period. The following tables summarize the activity in the primary segments of the ALL for the three months ended March 31, 2019 and March 31, 2018 as well as the allowance required for loans individually and collectively evaluated for impairment as of March 31, 2019 and December 31, 2018 (dollars in thousands):

	Real Estate Loans
	One-to-four-						Home
	family			Commercial			Equity Loans
	Residential and			Real			and Lines			Commercial			Other
	Construction			Estate			of Credit			Business			Loans			Total
Three Months Ended:
Balance December 31, 2018	$	1,051		$	2,761		$	312		$	286		$	4		$	4,414
Charge-offs		-			(121	)		-			-			(27	)		(148	)
Recoveries		-			-			1			-			-			1
Provision		(191	)		114			(15	)		175			25			108
Balance March 31, 2019	$	860		$	2,754		$	298		$	461		$	2		$	4,375
Balance at December 31, 2017	$	1,384		$	2,003		$	400		$	333		$	7		$	4,127
Charge-offs		-			-			-			(9	)		(2	)		(11	)
Recoveries		69			-			-			-			-			69
Provision		(54	)		119			(10	)		(54	)		(1	)		-
Balance at March 31, 2018	$	1,399		$	2,122		$	390		$	270		$	4		$	4,185

	Real Estate Loans
	One-to-four-				Home
	family		Commercial		Equity Loans
	Residential and		Real		and Lines		Commercial		Other
	Construction		Estate		of Credit		Business		Loans		Total
Evaluated for Impairment:
Individually	$	-	$	-	$	-	$	-	$	-	$	-
Collectively		860		2,754		298		461		2		4,375
Balance at March 31, 2019	$	860	$	2,754	$	298	$	461	$	2	$	4,375
Evaluated for Impairment:
Individually	$	-	$	-	$	-	$	-	$	-	$	-
Collectively		1,051		2,761		312		286		4		4,414
Balance at December 31, 2018	$	1,051	$	2,761	$	312	$	286	$	4	$	4,414

The ALL is based on estimates and actual losses will vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the loan portfolio at any given date. In addition, federal regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses and may require the Bank to make changes to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to Management. Based on Management’s comprehensive analysis of the loan portfolio, they believe the current level of the allowance for loan losses is adequate.

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Foreclosed Assets Held For Sale

3 Months Ended

Mar. 31, 2019

Foreclosed Assets Held For Sale [Abstract]

Foreclosed Assets Held For Sale

(9) Foreclosed Assets Held For Sale

Foreclosed assets acquired in the settlement of loans are carried at fair value less estimated costs to sell and are included in foreclosed real estate on the Consolidated Statement of Financial Condition. As of March 31, 2019 and December 31, 2018, foreclosed real estate totaled $531,000 and $486,000, respectively. As of March 31, 2019, the $531,000 included two residential properties and two commercial real estate properties. As of March 31, 2019, the Company had initiated formal foreclosure procedures on $362,000 of loans, consisting of $194,000 in commercial real estate loans, $97,000 in one-to-four family residential loans and $70,000 in home equity loans.

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Leases

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

(10) Leases

The Company currently has four financing lease agreements for branch offices. In conjunction with the implementation of ASU 2016-02, the Company recognized right-of-use assets totaling $1.1 million and lease liabilities totaling $1.2 million related to those financing leases. One of the leases includes an option to extend which was recognized as part of the Company’s right-of-use asset and corresponding lease liability for that property because the Company believes that it is more likely than not to exercise the extension option.

The right-of-use assets are included with office properties and equipment while lease liabilities are included in long-term borrowings on the March 31, 2019 Consolidated Statements of Financial Condition. Amortization of right-of-use assets is included in premises and occupancy costs while interest expense on the lease liabilities is included in the interest expense on long-term borrowings on the Consolidated Statements of Income. The following table presents the financing lease costs during the three months ended March 31, 2019 (dollars in thousands):

	Quarter Ended
	March 31, 2019
Financing lease costs
Amortization of right-of-use asset	$	94
Interest expense		8
Total financing lease costs	$	102

The discount rates utilized to determine the interest expense portion of the lease liability were obtained by utilizing FHLB advance rates for a similar term borrowings as of January 1, 2019. The following table presents the weighted-average remaining term and discount rates for financing leases outstanding as of March 31, 2019:

	Financing
Weighted-average term (years)		4.7
Weighted-average discount rate		2.81	%

The following table presents the undiscounted cash flows due related to financing leases as of March 31, 2019, along with a reconciliation to the discounted amount recorded on the March 31, 2019 Consolidated Statements of Financial Condition (dollars in thousands):

	Financing
Undiscounted cash flows due within:
2019	$	305
2020		292
2021		124
2022		102
2023		102
2024 and thereafter		212
Total undiscounted cash flows		1,137
Impact of present value discount		(73	)
Amount reported on balance sheet	$	1,064

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Stock Based Compensation

3 Months Ended

Mar. 31, 2019

Stock Based Compensation

Stock Based Compensation

(11) Stock Based Compensation

The Company currently has two stock plans that allow for the issuance of stock based compensation, the Allegheny Valley Bancorp, Inc. 2011 Stock Incentive Plan (the “2011 Plan”) and the Standard Financial Corp. 2012 Equity Incentive Plan (the “2012 Plan”). On February 26, 2019, 1,820 shares of restricted stock were awarded to directors out of the 2011 Plan. The awards vest on December 31, 2019 and the related compensation expense is being recognized straight line over the 11 month vesting period. On March 12, 2019, 2,727 shares of restricted stock were awarded to employees out of the 2011 Plan. The awards vest over 34 months and the related compensation expense is being recognized straight line over the vesting period. At March 31, 2019, there were 72,588 and 101,144 shares available to be issued under the 2011 Plan and the 2012 Plan, respectively.

For each of the three months ended March 31, 2019 and March 31, 2018, there was no recorded compensation expense on the options. As of March 31, 2019, all outstanding options were fully vested and there was no unrecognized compensation cost. 

The following table summarizes transactions regarding the options under the Plans:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term
Outstanding at December 31, 2018		266,695		$	17.12		3.32
Granted		-			-
Exercised		(10,665	)		17.75
Forfeited		-			-
Outstanding at March 31, 2019		256,030		$	17.09		3.17
Exercisable at March 31, 2019		256,030		$	17.09

For the three months ended March 31, 2019, there was $13,000 of compensation expense recorded on restricted stock grants. For the three months ended March 31, 2018, there was no recorded compensation expense on restricted stock. As of March 31, 2019, there was $68,000 of unrecognized compensation expense that will be recognized over the remaining vesting periods.

The following table summarizes transactions regarding the restricted stock under the Plans:

	Number of  Restricted  Shares		Weighted  Average Grant Date  Price Per Share
Non-vested shares at December 31, 2018		250	$	31.10
Granted		4,547		29.13
Vested		-		-
Forfeited		-		-
Non-vested shares at March 31, 2019		4,797	$	29.24

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Employee Stock Ownership Plan

3 Months Ended

Mar. 31, 2019

Shareholders Equity And Share Based Payments Disclosure [Abstract]

Employee Stock Ownership Plan

(12) Employee Stock Ownership Plan

The Company established a tax qualified Employee Stock Ownership Plan (“ESOP”) for the benefit of its employees in conjunction with the stock conversion on October 6, 2010. Eligible employees begin to participate in the plan after one year of service and become 20% vested in their accounts after two years of service, 40% after three years of service, 60% after four years of service, 80% after five years of service and 100% after six years of service, or earlier, upon death, disability or attainment of normal retirement age.

In connection with the stock conversion, the purchase of the 278,254 shares of the Company stock by the ESOP was funded by a loan from the Company through the Bank. Unreleased ESOP shares collateralize the loan payable, and the cost of the shares is recorded as a contra-equity account in the stockholders’ equity of the Company. Shares are released as debt payments are made by the ESOP to the loan. The ESOP’s sources of repayment of the loan can include dividends, if any, on the unallocated stock held by the ESOP and discretionary contributions from the Company to the ESOP and earnings thereon.

Compensation expense is equal to the fair value of the shares committed to be released and unallocated ESOP shares are excluded from outstanding shares for purposes of computing earnings per share. Compensation expense related to the ESOP of $108,000 and $109,000 was recognized during the three months ended March 31, 2019 and 2018, 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 March 31, 2019, the ESOP held a total of 254,610 released shares of the Company’s stock. Of the 254,610 shares, there were 159,003 unallocated as of March 31, 2019 with a fair market value of $4.3 million.

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Pension Information

3 Months Ended

Mar. 31, 2019

Compensation and Retirement Disclosure [Abstract]

Pension Information

(13) Pension Information

The Company sponsors a pension plan which is a noncontributory defined benefit retirement plan. Effective August 1, 2005, the annual benefit provided to employees under this defined benefit pension plan was frozen by the Bank. Freezing the plan eliminated all future benefit accruals; however, the accrued benefit as of August 1, 2005 remained.

The net periodic pension cost for the three months ended March 31, 2019 and March 31, 2018 are as follows (dollars in thousands):

	Three Months Ended March 31,
	2019			2018
Interest Cost	$	31		$	33
Expected return on plan assets		(32	)		(41	)
Amortization of net loss		2			3
Net periodic pension cost	$	1		$	(5	)

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Fair Value of Assets and Liabilities

3 Months Ended

Mar. 31, 2019

Fair Value of Assets and Liabilities

Fair Value of Assets and Liabilities

(14) Fair Value of Assets and Liabilities

Fair Value Hierarchy

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date.  GAAP established a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels:

Level 1:	Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.  A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available.  A contractually binding sales price also provides reliable evidence of fair value.
Level 2:	Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that utilize model-based techniques for which all significant assumptions are observable in the market.
Level 3:	Inputs to the valuation methodology are unobservable and significant to the fair value measurement; inputs to the valuation methodology that utilize model-based techniques for which significant assumptions are not observable in the market; or inputs to the valuation methodology that requires significant management judgment or estimation, some of which may be internally developed.

Management maximizes the use of observable inputs and minimizes the use of unobservable inputs when determining fair value measurements.  Management reviews and updates the fair value hierarchy classifications of the Company’s assets and liabilities on a quarterly basis.

Assets Measured at Fair Value on a Recurring Basis

Investment, Mortgage-Backed and Equity Securities

Fair values of investment and mortgage-backed securities were primarily measured using information from a third-party pricing service.  This service provides pricing information by utilizing evaluated pricing models supported with market data information.  Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data from market research publications.  Level 1 securities are comprised of equity securities.  As quoted prices were available, unadjusted, for identical securities in active markets, these securities were classified as Level 1 measurements.  Level 2 securities were primarily comprised of debt securities issued by government agencies, states and municipalities, corporations, as well as mortgage-backed securities issued by government agencies.  Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models.  In cases where there may be limited or less transparent information provided by the Company’s third-party pricing service, fair value may be estimated by the use of secondary pricing services or through the use of non-binding third-party broker quotes.

On a quarterly basis, management reviews the pricing information received from the Company’s third-party pricing service.  This review process includes a comparison to non-binding third-party broker quotes, as well as a review of market-related conditions impacting the information provided by the Company’s third-party pricing service.  Management primarily identifies investment securities which may have traded in illiquid or inactive markets by identifying instances of a significant decrease in the volume or frequency of trades, relative to historical levels, as well as instances of a significant widening of the bid-ask spread in the brokered markets. Securities that are deemed

(14) Fair Value of Assets and Liabilities (continued)

to have been trading in illiquid or inactive markets may require the use of significant unobservable inputs.  As of March 31, 2019 and December 31, 2018, management did not make adjustments to prices provided by the third-party pricing service as a result of illiquid or inactive markets.  On a quarterly basis, management also reviews a sample of securities priced by the Company’s third-party pricing service to review significant assumptions and valuation methodologies used.  Based on this review, management determines whether the current placement of the security in the fair value hierarchy is appropriate or whether transfers may be warranted.

The following table presents the assets measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018 by level within the fair value hierarchy (dollars in thousands):

	Level 1		Level 2		Level 3		Total
March 31, 2019:
Investment securities available for sale:
U.S. government and agency obligations	$	-	$	8,333	$	-	$	8,333
Corporate bonds		-		4,266		-		4,266
Municipal obligations		-		54,249		-		54,249
Total investment securities available for sale		-		66,848		-		66,848
Equity securities		2,752		-		-		2,752
Mortgage-backed securities available for sale		-		87,771		-		87,771
Total recurring fair value measurements	$	2,752	$	154,619	$	-	$	157,371
December 31, 2018:
Investment securities available for sale:
U.S. government and agency obligations	$	-	$	8,270	$	-	$	8,270
Corporate bonds		-		4,201		-		4,201
Municipal obligations		-		53,698		-		53,698
Total investment securities available for sale		-		66,169		-		66,169
Equity securities		2,725		-		-		2,725
Mortgage-backed securities available for sale		-		81,794		-		81,794
Total recurring fair value measurements	$	2,725	$	147,963	$	-	$	150,688

Assets Measured at Fair Value on a Nonrecurring Basis

The following table presents the assets measured at fair value on a nonrecurring basis as of March 31, 2019 and December 31, 2018 by level within the fair value hierarchy (dollars in thousands):

	Level 1		Level 2		Level 3		Total
March 31, 2019:
Foreclosed real estate	$	-	$	-	$	531	$	531
Total nonrecurring fair value measurements	$	-	$	-	$	531	$	531
December 31, 2018:
Foreclosed real estate	$	-	$	-	$	486	$	486
Total nonrecurring fair value measurements	$	-	$	-	$	486	$	486

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Company uses level 3 inputs to determine fair value (dollars in thousands):

					Quantitative Information about Level 3 Fair Value Measurements
	March 31,		December 31,		Valuation	Unobservable
	2019		2018		Techniques	Input	Range
Foreclosed real estate	$	531	$	486	Appraisal of collateral (1)	Appraisal adjustments (2)	0% to 30	%
					Liquidation expenses (2)		0% to 15	%

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses.

The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

The following table presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of March 31, 2019 and December 31, 2018 (dollars in thousands): 

	Carrying Value		Estimated  Fair Value		Level 1		Level 2		Level 3
March 31, 2019:
Financial Instruments - Assets:
Cash on hand and due from banks (1)	$	3,201	$	3,201	$	3,201	$	-	$	-
Interest-earning deposits in other institutions (1)		31,500		31,500		31,500		-		-
Investment securities (2)		66,848		66,848		-		66,848		-
Equity Securities (3)		2,752		2,752		2,752		-		-
Mortgage-backed securities (2)		87,771		87,771		-		87,771		-
Certificate of deposit (1)		249		249		249		-		-
Federal Home Loan Bank and other restricted stocks (1)		7,463		7,463		7,463		-		-
Loans receivable (1) (4)		724,605		724,301		-		-		724,301
Bank-owned life insurance (1)		22,703		22,703		22,703		-		-
Accrued interest receivable (1)		3,004		3,004		3,004		-		-
Financial Instruments - Liabilities:
Demand, savings and club accounts (1)	$	496,515	$	496,515	$	496,515	$	-	$	-
Certificate deposit accounts (1)		246,907		247,322		-		-		247,322
Long-term borrowings (1)		98,148		98,058		-		-		98,058
Securities sold under agreements to repurchase (1)		3,988		3,988		3,988		-		-
Accrued interest payable (1)		1,163		1,163		1,163		-		-
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		-		-
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		-
Certificate of deposit (1)		249	$	249		249		-		-
Federal Home Loan Bank and other restricted stocks (1)		7,900	$	7,900		7,900		-		-
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		-		-

(1) The financial instrument is carried at amortized cost.

(2) The financial instrument is carried at fair value through other comprehensive income.

(3) The financial instrument is carried at fair value through net income.

(4) In accordance with the adoption of ASU 2016-01, the fair value of loans was measured using an exit price notion.

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Accumulated Other Comprehensive (Loss) Income

3 Months Ended

Mar. 31, 2019

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive (Loss) Income

(15) Accumulated Other Comprehensive (Loss) Income

The following tables present the significant amounts reclassified out of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2019 and March 31, 2018 (dollars in thousands):

	Unrealized Gains (Losses)			Unrecognized
	on Available for Sale			Pension
	Securities			Costs			Total
Balance as of December 31, 2018	$	(1,103	)	$	(241	)	$	(1,344	)
Other comprehensive income before reclassification		976			-			976
Amount reclassified from accumulated other comprehensive loss		6			2			8
Total other comprehensive income		982			2			984
Balance as of March 31, 2019	$	(121	)	$	(239	)	$	(360	)

	Amount Reclassified
	from Accumulated			Affected Line on
	Other Comprehensive			the Consolidated
	Income (Loss)			Statements of Income
Three months ended March 31, 2019:
Unrealized losses on available for sale securities	$	7		Net loss on sales of securities
		(1	)	Income tax expense
	$	6		Net of tax
Amortization of defined benefit items:   Actuarial loss	$	2		Other operating expenses
		-		Income tax expense
	$	2		Net of tax
Total reclassification for the period	$	8		Net income

	Unrealized Gains (Losses)			Unrecognized
	on Available for Sale			Pension
	Securities			Costs			Total
Balance as of December 31, 2017	$	840		$	(312	)	$	528
Other comprehensive loss before reclassification		(1,943	)		-			(1,943	)
Amount reclassified from accumulated other comprehensive income		-			2			2
Total other comprehensive (loss) income		(1,943	)		2			(1,941	)
Change in accounting principle for adoption of ASU 2016-01		(416	)		-			(416	)
Balance as of March 31, 2018	$	(1,519	)	$	(310	)	$	(1,829	)

	Amount Reclassified
	from Accumulated			Affected Line on
	Other Comprehensive			the Consolidated
	Income (Loss)			Statements of Income
Three months ended March 31, 2018:
Amortization of defined benefit items:  Actuarial gains	$	3		Other operating expenses
		(1	)	Income tax expense
	$	2		Net of tax
Total reclassification for the period	$	2		Net income

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Revenue Recognition

3 Months Ended

Mar. 31, 2019

Revenue Recognition [Abstract]

Revenue Recognition

(16) Revenue Recognition

The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2019 and March 31, 2018.

	Three Months Ended March 31,
	2019		2018
Noninterest income
In scope of Topic 606:
Service charges on deposit accounts	$	672	$	692
Investment management fees		202		132
Noninterest income (in-scope of Topic 606)		874		824
Noninterest income (out-of-scope of Topic 606)		264		258
Total noninterest income	$	1,138	$	1,082

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Goodwill and Other Intangibles

3 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

(17) Goodwill and Other Intangibles

The Company has recorded goodwill associated with mergers totaling $25.8 million. Goodwill is not amortized, but is periodically evaluated for impairment. The Company did not recognize any impairment during the three months ended March 31, 2019 or March 31, 2018.

Identifiable intangibles are amortized to their estimated residual values over the expected useful lives of such assets. The balance of the core deposit intangible at March 31, 2019 was $2.3 million net of $1.8 million of accumulated amortization as of that date.

As of March, 2019, the remaining current year and estimated future amortization expense for the core deposit intangible is (dollars in thousands):

2019		435
2020		472
2021		352
2022		325
2023		325
2024		325
2025		81
	$	2,315

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Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Consolidation

Consolidation

The accompanying consolidated financial statements include the accounts of Standard AVB Financial Corp. (the “Company”) and its direct and indirect wholly owned subsidiaries, Standard Bank, PaSB (the “Bank”), and Westmoreland Investment Company. All significant intercompany accounts and transactions have been eliminated in consolidation. Standard AVB Financial Corp. owns all of the outstanding shares of common stock of the Bank.

Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements were prepared in accordance with instructions to Form 10-Q, and therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles in the United States. All adjustments (consisting of normal recurring adjustments), which, in the opinion of management are necessary for a fair presentation of the financial statements and to make the financial statements not misleading have been included. The unaudited consolidated financial statements and other financial information contained in this quarterly report on Form 10-Q should be read in conjunction with the audited financial statements of Standard AVB Financial Corp. at and for the year ended December 31, 2018 contained in the Company’s annual report on Form 10-K as filed with the Securities and Exchange Commission on March 18, 2019. The results for the three month period ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any future interim period. Certain amounts in the 2018 financial statements have been reclassified to conform to the 2019 presentation format. These reclassifications had no effect on stockholders’ equity or net income.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Accounting Standards Adopted in 2019

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet.  Additionally, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) – Targeted Improvements,which, among other things, provided an additional transition method that allows entities to not apply the guidance in ASU 2016-02 in the comparative periods presented in the financial statements and instead to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted ASU 2016-02 and its related amendments as of January 1, 2019, which resulted in the recognition of finance right-of-use assets and finance lease liabilities totaling $1.1 million and $1.2 million, respectively. The Company elected to adopt the transition relief provisions from ASU 2018-11 and recorded the impact of adoption as of January 1, 2019, without restating any prior-year amounts or disclosures. Additional lease disclosures can be found in Note 10 contained herein. There was no cumulative effect adjustment to the opening balance of retained earnings required.

Accounting Standards Pending Adoption

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, which amended the effective date of ASU 2016-13 for entities other than public business entities. The ASU also clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Rather, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. The Company has been working with a third party to evaluate the various CECL methodologies and decided to utilize the vintage method. The Company is continuing to work through implementation of that method and determine what impact it will have on the consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is a U.S. Securities and Exchange Commission (“SEC”) filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. A public business entity that is not an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020. All other entities, including not-for-profit entities that are adopting the amendments in this Update should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021. 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 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.

In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements, which addressed issues lessors sometimes encounter. Specifically addressed in this Update were issues related to 1) determining the fair value of the underlying asset by the lessor that are not manufacturers or dealers (generally financial institutions and captive finance companies), and 2) lessors that are depository and lending institutions should classify principal and payments received under sales-type and direct financing leases within investing activities in the cash flow statement. The ASU also exempts both lessees and lessors from having to provide the interim disclosures required by ASC 250-10-50-3 in the fiscal year in which a company adopts the new leases standard. The amendments addressing the two lessor accounting issues are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other entities, the effective date is for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. This Update is not expected to have a significant impact on the Company’s financial statements.

In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which affects a variety of topics in the Codification and applies to all reporting entities within the scope of the affected accounting guidance. This Update is not expected to have a significant impact on the Company’s financial statements.

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Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2019

Earnings per Share

Schedule of computation of basic and diluted EPS

	Three Months Ended March 31,
	2019		2018
Net income available to common stockholders	$	2,169	$	2,160
Basic EPS:
Weighted average shares outstanding		4,659,335		4,622,384
Basic EPS	$	0.47	$	0.47
Diluted EPS:
Weighted average shares outstanding		4,659,335		4,622,384
Dilutive effect of common stock equivalents		105,840		115,896
Total diluted weighted average shares outstanding		4,765,175		4,738,280
Diluted EPS	$	0.46	$	0.46

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Investment Securities (Tables) - Available-for-sale securities other than mortgage backed securities

3 Months Ended

Mar. 31, 2019

Investment Securities

Schedule of investment securities available for sale

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
March 31, 2019:
U.S. government and agency obligations due:
Beyond 1 year but within 5 years	$	7,435	$	1		(48	)	$	7,388
Beyond 5 year but within 10 years		942		3		-			945
Corporate bonds due:
Within 1 year		1,755		-		(7	)		1,748
Beyond 1 year but within 5 years		1,474		22		-			1,496
Beyond 5 years but within 10 years		996		26		-			1,022
Municipal obligations due:
Beyond 1 year but within 5 years		5,215		296		-			5,511
Beyond 5 years but within 10 years		20,123		327		(1	)		20,449
Beyond 10 years		28,184		216		(111	)		28,289
	$	66,124	$	891	$	(167	)	$	66,848
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:
Within 1 year		1,758		-		(15	)		1,743
Beyond 1 year but within 5 years		1,472		2		(10	)		1,464
Beyond 5 years but within 10 years		996		-		(2	)		994
Municipal obligations due:
Beyond 1 year but within 5 years		6,658		298		-			6,956
Beyond 5 years but within 10 years		22,384		132		(81	)		22,435
Beyond 10 years		24,504		82		(279	)		24,307
	$	66,140	$	514	$	(485	)	$	66,169

Schedule of fair value and gross unrealized losses on investment securities and the length of time the securities have been in a continuous unrealized loss position

	Less than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
March 31, 2019:
U.S. government and agency obligations	$	-	$	-		$	6,897	$	(48	)	$	6,897	$	(48	)
Corporate bonds		-		-			1,748		(7	)		1,748		(7	)
Municipal obligations		950		(1	)		7,332		(111	)		8,282		(112	)
Total	$	950	$	(1	)	$	15,977	$	(166	)	$	16,927	$	(167	)
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	)

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Equity Securities (Tables)

3 Months Ended

Mar. 31, 2019

Equity Securities [Abstract]

Schedule of gains and losses on equity investments

	Three Months Ended March 31,
	2019		2018
Net equity securities fair value adjustment gains	$	27	$	50
Net gains realized on the sale of equity securities during the period		-		40
Gains recognized on equity securities during the period	$	27	$	90

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Mortgage-Backed Securities (Tables) - Mortgage-backed securities

3 Months Ended

Mar. 31, 2019

Mortgage-backed securities

Schedule of securities available for sale

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
March 31, 2019:
Government pass-throughs:
Ginnie Mae	$	19,618	$	23	$	(231	)	$	19,410
Fannie Mae		20,107		47		(164	)		19,990
Freddie Mac		12,291		12		(110	)		12,193
Private pass-throughs		23,819		-		(308	)		23,511
Collateralized mortgage obligations		12,813		4		(150	)		12,667
	$	88,648	$	86	$	(963	)	$	87,771
December 31, 2018:
Government pass-throughs:
Ginnie Mae	$	19,213	$	1	$	(324	)	$	18,890
Fannie Mae		13,952		7		(339	)		13,620
Freddie Mac		12,662		-		(252	)		12,410
Private pass-throughs		25,064		-		(349	)		24,715
Collateralized mortgage obligations		12,328		11		(180	)		12,159
	$	83,219	$	19	$	(1,444	)	$	81,794

Schedule of contractual maturity

	Amortized Cost		Fair Value
Due after one year through five years	$	817	$	817
Due after five years through ten years		6,250		6,233
Due after ten years		81,581		80,721
Total Mortgage-Backed Securities	$	88,648	$	87,771

Schedule of fair value and gross unrealized losses on mortgage-backed securities and the length of time the securities have been in a continuous unrealized loss position

	Less than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
March 31, 2019:
Government pass-throughs:
Ginnie Mae	$	-	$	-		$	14,367		(231	)	$	14,367	$	(231	)
Fannie Mae		-		-			10,736		(164	)		10,736		(164	)
Freddie Mac		-		-			8,660		(110	)		8,660		(110	)
Private pass-throughs		2,085		(19	)		20,613		(289	)		22,698		(308	)
Collateralized mortgage obligations		1,884		(11	)		8,005		(139	)		9,889		(150	)
Total	$	3,969	$	(30	)	$	62,381	$	(933	)	$	66,350	$	(963	)
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	)

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Loans Receivable and Related Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2019

Receivables [Abstract]

Schedule of loans receivable

	Real Estate Loans
	One-to-four-				Home
	family		Commercial		Equity Loans
	Residential and		Real		and Lines		Commercial		Other
	Construction		Estate		of Credit		Business		Loans		Total
March 31, 2019:
Collectively evaluated for impairment	$	252,071	$	308,999	$	120,129	$	47,274	$	507	$	728,980
Individually evaluated for impairment		-		-		-		-		-		-
Total loans before allowance for loan losses	$	252,071	$	308,999	$	120,129	$	47,274	$	507	$	728,980
December 31, 2018:
Collectively evaluated for impairment	$	253,913	$	308,775	$	123,373	$	46,196	$	1,139	$	733,396
Individually evaluated for impairment		-		-		-		-		-		-
Total loans before allowance for loan losses	$	253,913	$	308,775	$	123,373	$	46,196	$	1,139	$	733,396

Schedule of average recorded investment in impaired loans and related interest income recognized for the periods indicated

	For the Three Months Ended March 31,
	2019		2018
Average investment in impaired loans:
Commercial real estate	$	-	$	295
	$	-	$	295
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

			Special
	Pass		Mention		Substandard		Doubtful		Total
March 31, 2019:
Real estate loans:
One-to-four-family residential and construction	$	250,464	$	-	$	1,607	$	-	$	252,071
Commercial real estate		306,559		1,784		656		-		308,999
Home equity loans and lines of credit		119,816		60		253		-		120,129
Commercial business loans		46,992		226		56		-		47,274
Other loans		497		-		10		-		507
Total	$	724,328	$	2,070	$	2,582	$	-	$	728,980
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

Schedule of classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans

			30-59 Days		60-89 Days				90 Days Past		Total
	Current		Past Due		Past Due		Non-Accrual		Due & Accruing		Loans
March 31, 2019:
Real estate loans:
One-to-four-family residential and construction	$	249,086	$	1,379	$	-	$	1,606	$	-	$	252,071
Commercial real estate		307,954		469		-		576		-		308,999
Home equity loans and lines of credit		119,573		264		39		253		-		120,129
Commercial business loans		47,171		47		-		56		-		47,274
Other loans		490		4		3		10		-		507
Total	$	724,274	$	2,163	$	42	$	2,501	$	-	$	728,980
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

Schedule of activity in the allowance

	Real Estate Loans
	One-to-four-						Home
	family			Commercial			Equity Loans
	Residential and			Real			and Lines			Commercial			Other
	Construction			Estate			of Credit			Business			Loans			Total
Three Months Ended:
Balance December 31, 2018	$	1,051		$	2,761		$	312		$	286		$	4		$	4,414
Charge-offs		-			(121	)		-			-			(27	)		(148	)
Recoveries		-			-			1			-			-			1
Provision		(191	)		114			(15	)		175			25			108
Balance March 31, 2019	$	860		$	2,754		$	298		$	461		$	2		$	4,375
Balance at December 31, 2017	$	1,384		$	2,003		$	400		$	333		$	7		$	4,127
Charge-offs		-			-			-			(9	)		(2	)		(11	)
Recoveries		69			-			-			-			-			69
Provision		(54	)		119			(10	)		(54	)		(1	)		-
Balance at March 31, 2018	$	1,399		$	2,122		$	390		$	270		$	4		$	4,185

	Real Estate Loans
	One-to-four-				Home
	family		Commercial		Equity Loans
	Residential and		Real		and Lines		Commercial		Other
	Construction		Estate		of Credit		Business		Loans		Total
Evaluated for Impairment:
Individually	$	-	$	-	$	-	$	-	$	-	$	-
Collectively		860		2,754		298		461		2		4,375
Balance at March 31, 2019	$	860	$	2,754	$	298	$	461	$	2	$	4,375
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

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Leases (Tables)

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Schedule of financing lease costs

	Quarter Ended
	March 31, 2019
Financing lease costs
Amortization of right-of-use asset	$	94
Interest expense		8
Total financing lease costs	$	102

Schedule of weighted-average remaining term and discount rates for financing leases outstanding

	Financing
Weighted-average term (years)		4.7
Weighted-average discount rate		2.81	%

Schedule of maturities of undiscounted cash flows

	Financing
Undiscounted cash flows due within:
2019	$	305
2020		292
2021		124
2022		102
2023		102
2024 and thereafter		212
Total undiscounted cash flows		1,137
Impact of present value discount		(73	)
Amount reported on balance sheet	$	1,064

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Stock Based Compensation (Tables)

3 Months Ended

Mar. 31, 2019

Stock Based Compensation

Schedule of transactions regarding the options under the plan

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term
Outstanding at December 31, 2018		266,695		$	17.12		3.32
Granted		-			-
Exercised		(10,665	)		17.75
Forfeited		-			-
Outstanding at March 31, 2019		256,030		$	17.09		3.17
Exercisable at March 31, 2019		256,030		$	17.09

	Number of  Restricted  Shares		Weighted  Average Grant Date  Price Per Share
Non-vested shares at December 31, 2018		250	$	31.10
Granted		4,547		29.13
Vested		-		-
Forfeited		-		-
Non-vested shares at March 31, 2019		4,797	$	29.24

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Pension Information (Tables)

3 Months Ended

Mar. 31, 2019

Compensation and Retirement Disclosure [Abstract]

Schedule of net periodic pension (benefit) cost

	Three Months Ended March 31,
	2019			2018
Interest Cost	$	31		$	33
Expected return on plan assets		(32	)		(41	)
Amortization of net loss		2			3
Net periodic pension cost	$	1		$	(5	)

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Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value of Assets and Liabilities

Schedule of assets measured at fair value on a recurring basis

	Level 1		Level 2		Level 3		Total
March 31, 2019:
Investment securities available for sale:
U.S. government and agency obligations	$	-	$	8,333	$	-	$	8,333
Corporate bonds		-		4,266		-		4,266
Municipal obligations		-		54,249		-		54,249
Total investment securities available for sale		-		66,848		-		66,848
Equity securities		2,752		-		-		2,752
Mortgage-backed securities available for sale		-		87,771		-		87,771
Total recurring fair value measurements	$	2,752	$	154,619	$	-	$	157,371
December 31, 2018:
Investment securities available for sale:
U.S. government and agency obligations	$	-	$	8,270	$	-	$	8,270
Corporate bonds		-		4,201		-		4,201
Municipal obligations		-		53,698		-		53,698
Total investment securities available for sale		-		66,169		-		66,169
Equity securities		2,725		-		-		2,725
Mortgage-backed securities available for sale		-		81,794		-		81,794
Total recurring fair value measurements	$	2,725	$	147,963	$	-	$	150,688

Schedule of assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy

	Level 1		Level 2		Level 3		Total
March 31, 2019:
Foreclosed real estate	$	-	$	-	$	531	$	531
Total nonrecurring fair value measurements	$	-	$	-	$	531	$	531
December 31, 2018:
Foreclosed real estate	$	-	$	-	$	486	$	486
Total nonrecurring fair value measurements	$	-	$	-	$	486	$	486

Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs

					Quantitative Information about Level 3 Fair Value Measurements
	March 31,		December 31,		Valuation	Unobservable
	2019		2018		Techniques	Input	Range
Foreclosed real estate	$	531	$	486	Appraisal of collateral (1)	Appraisal adjustments (2)	0% to 30	%
					Liquidation expenses (2)		0% to 15	%

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses.

The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

Schedule of carrying amount, fair value, and placement in the fair value hierarchy of the financial instruments

	Carrying Value		Estimated  Fair Value		Level 1		Level 2		Level 3
March 31, 2019:
Financial Instruments - Assets:
Cash on hand and due from banks (1)	$	3,201	$	3,201	$	3,201	$	-	$	-
Interest-earning deposits in other institutions (1)		31,500		31,500		31,500		-		-
Investment securities (2)		66,848		66,848		-		66,848		-
Equity Securities (3)		2,752		2,752		2,752		-		-
Mortgage-backed securities (2)		87,771		87,771		-		87,771		-
Certificate of deposit (1)		249		249		249		-		-
Federal Home Loan Bank and other restricted stocks (1)		7,463		7,463		7,463		-		-
Loans receivable (1) (4)		724,605		724,301		-		-		724,301
Bank-owned life insurance (1)		22,703		22,703		22,703		-		-
Accrued interest receivable (1)		3,004		3,004		3,004		-		-
Financial Instruments - Liabilities:
Demand, savings and club accounts (1)	$	496,515	$	496,515	$	496,515	$	-	$	-
Certificate deposit accounts (1)		246,907		247,322		-		-		247,322
Long-term borrowings (1)		98,148		98,058		-		-		98,058
Securities sold under agreements to repurchase (1)		3,988		3,988		3,988		-		-
Accrued interest payable (1)		1,163		1,163		1,163		-		-
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		-		-
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		-
Certificate of deposit (1)		249	$	249		249		-		-
Federal Home Loan Bank and other restricted stocks (1)		7,900	$	7,900		7,900		-		-
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		-		-

(1) The financial instrument is carried at amortized cost.

(2) The financial instrument is carried at fair value through other comprehensive income.

(3) The financial instrument is carried at fair value through net income.

(4) In accordance with the adoption of ASU 2016-01, the fair value of loans was measured using an exit price notion.

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Accumulated Other Comprehensive (Loss) Income (Tables)

3 Months Ended

Mar. 31, 2019

Accumulated Other Comprehensive Income

Schedule of changes in accumulated other comprehensive income (loss) by component

	Unrealized Gains (Losses)			Unrecognized
	on Available for Sale			Pension
	Securities			Costs			Total
Balance as of December 31, 2018	$	(1,103	)	$	(241	)	$	(1,344	)
Other comprehensive income before reclassification		976			-			976
Amount reclassified from accumulated other comprehensive loss		6			2			8
Total other comprehensive income		982			2			984
Balance as of March 31, 2019	$	(121	)	$	(239	)	$	(360	)

	Unrealized Gains (Losses)			Unrecognized
	on Available for Sale			Pension
	Securities			Costs			Total
Balance as of December 31, 2017	$	840		$	(312	)	$	528
Other comprehensive loss before reclassification		(1,943	)		-			(1,943	)
Amount reclassified from accumulated other comprehensive income		-			2			2
Total other comprehensive (loss) income		(1,943	)		2			(1,941	)
Change in accounting principle for adoption of ASU 2016-01		(416	)		-			(416	)
Balance as of March 31, 2018	$	(1,519	)	$	(310	)	$	(1,829	)

Schedule of significant amounts reclassified out of accumulated other comprehensive income

	Amount Reclassified
	from Accumulated			Affected Line on
	Other Comprehensive			the Consolidated
	Income (Loss)			Statements of Income
Three months ended March 31, 2019:
Unrealized losses on available for sale securities	$	7		Net loss on sales of securities
		(1	)	Income tax expense
	$	6		Net of tax
Amortization of defined benefit items:   Actuarial loss	$	2		Other operating expenses
		-		Income tax expense
	$	2		Net of tax
Total reclassification for the period	$	8		Net income

	Amount Reclassified
	from Accumulated			Affected Line on
	Other Comprehensive			the Consolidated
	Income (Loss)			Statements of Income
Three months ended March 31, 2018:
Amortization of defined benefit items:  Actuarial gains	$	3		Other operating expenses
		(1	)	Income tax expense
	$	2		Net of tax
Total reclassification for the period	$	2		Net income

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Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2019

Revenue Recognition [Abstract]

Schedule of noninterest income, segregated by revenue

	Three Months Ended March 31,
	2019		2018
Noninterest income
In scope of Topic 606:
Service charges on deposit accounts	$	672	$	692
Investment management fees		202		132
Noninterest income (in-scope of Topic 606)		874		824
Noninterest income (out-of-scope of Topic 606)		264		258
Total noninterest income	$	1,138	$	1,082

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Goodwill and Other Intangibles (Tables)

3 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of estimated future amortization expense

2019		435
2020		472
2021		352
2022		325
2023		325
2024		325
2025		81
	$	2,315

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Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings per Share
Net income available to common stockholders	$ 2,169	$ 2,160
Basic EPS:
Weighted average shares outstanding	4,659,335	4,622,384
Basic EPS	$ 0.47	$ 0.47
Diluted EPS:
Weighted average shares outstanding	4,659,335	4,622,384
Dilutive effect of common stock equivalents	105,840	115,896
Total diluted weighted average shares outstanding	4,765,175	4,738,280
Diluted EPS	$ 0.46	$ 0.46

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Recent Accounting Pronouncements (Detail Textuals) - ASU 2016-02 $ in Millions	Mar. 31, 2019 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Finance right-of-use assets	$ 1.1
Finance lease liability	$ 1.2

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Investment Securities - Debt securities, available for sale (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Amortized Cost
Amortized Cost	$ 66,124	$ 66,140
Gross Unrealized Gains
Gross Unrealized Gains	891	514
Gross Unrealized Losses
Gross Unrealized Losses	(167)	(485)
Fair Value
Fair Value	66,848	66,169
U.S. government and agency obligations
Amortized Cost
Beyond 1 year but within 5 years	7,435	7,428
Beyond 5 years but within 10 years	942	940
Gross Unrealized Gains
Beyond 1 year but within 5 years	1	0
Beyond 5 years but within 10 years	3	0
Gross Unrealized Losses
Beyond 1 year but within 5 years	(48)	(81)
Beyond 5 years but within 10 years	0	(17)
Fair Value
Beyond 1 year but within 5 years	7,388	7,347
Beyond 5 years but within 10 years	945	923
Corporate bonds
Amortized Cost
Within 1 year	1,755	1,758
Beyond 1 year but within 5 years	1,474	1,472
Beyond 5 years but within 10 years	996	996
Gross Unrealized Gains
Within 1 year	0	0
Beyond 1 year but within 5 years	22	2
Beyond 5 years but within 10 years	26	0
Gross Unrealized Losses
Within 1 year	(7)	(15)
Beyond 1 year but within 5 years	0	(10)
Beyond 5 years but within 10 years	0	(2)
Fair Value
Within 1 year	1,748	1,743
Beyond 1 year but within 5 years	1,496	1,464
Beyond 5 years but within 10 years	1,022	994
Municipal obligations
Amortized Cost
Beyond 1 year but within 5 years	5,215	6,658
Beyond 5 years but within 10 years	20,123	22,384
Beyond 10 years	28,184	24,504
Gross Unrealized Gains
Beyond 1 year but within 5 years	296	298
Beyond 5 years but within 10 years	327	132
Beyond 10 years	216	82
Gross Unrealized Losses
Beyond 1 year but within 5 years	0	0
Beyond 5 years but within 10 years	(1)	(81)
Beyond 10 years	(111)	(279)
Fair Value
Beyond 1 year but within 5 years	5,511	6,956
Beyond 5 years but within 10 years	20,449	22,435
Beyond 10 years	$ 28,289	$ 24,307

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Investment Securities - Fair value and gross unrealized losses on available for sale debt securities (Details 1) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Available-for-sale securities other than mortgage backed securities
Securities in a continuous unrealized loss position presented by length of time
Less than 12 Months, Fair Value	$ 950	$ 11,539
Less than 12 Months, Gross Unrealized Losses	(1)	(67)
12 Months or More, Fair Value	15,977	21,743
12 Months or More, Gross Unrealized Losses	(166)	(418)
Total, Fair Value	16,927	33,282
Total, Gross Unrealized Losses	(167)	(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	0
Less than 12 Months, Gross Unrealized Losses	0	0
12 Months or More, Fair Value	6,897	8,270
12 Months or More, Gross Unrealized Losses	(48)	(98)
Total, Fair Value	6,897	8,270
Total, Gross Unrealized Losses	(48)	(98)
Corporate bonds
Securities in a continuous unrealized loss position presented by length of time
Less than 12 Months, Fair Value	0	1,490
Less than 12 Months, Gross Unrealized Losses	0	(12)
12 Months or More, Fair Value	1,748	1,743
12 Months or More, Gross Unrealized Losses	(7)	(15)
Total, Fair Value	1,748	3,233
Total, Gross Unrealized Losses	(7)	(27)
Municipal obligations
Securities in a continuous unrealized loss position presented by length of time
Less than 12 Months, Fair Value	950	10,049
Less than 12 Months, Gross Unrealized Losses	(1)	(55)
12 Months or More, Fair Value	7,332	11,730
12 Months or More, Gross Unrealized Losses	(111)	(305)
Total, Fair Value	8,282	21,779
Total, Gross Unrealized Losses	$ (112)	$ (360)

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Investment Securities (Detail Textuals) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($) Security	Dec. 31, 2018 USD ($)
Schedule of Available-for-sale Securities [Line Items]
Losses on sales of investment securities	$ 7,000
Proceeds from sales of investment securities	3,696
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	$ 11,600
Number of securities held in an unrealized loss position | Security	20

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Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Equity Securities [Abstract]
Net equity securities fair value adjustment losses	$ 27	$ 50
Net gains realized on the sale of equity securities during the period	0	40
Gains recognized on equity securities during the period	$ 27	$ 90

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Equity Securities (Detail Textuals)	3 Months Ended
	Mar. 31, 2018 USD ($)
Equity Securities [Abstract]
Gains on sales of equity securities	$ 40,000
Proceeds from sale of equity	$ 178,000

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Mortgage-Backed Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Mortgage-backed securities
Amortized Cost	$ 66,124	$ 66,140
Gross Unrealized Gains	891	514
Gross Unrealized Losses	(167)	(485)
Fair Value	66,848	66,169
Mortgage-backed securities available for sale
Mortgage-backed securities
Amortized Cost	88,648	83,219
Gross Unrealized Gains	86	19
Gross Unrealized Losses	(963)	(1,444)
Fair Value	87,771	81,794
Government pass-throughs, Ginnie Mae
Mortgage-backed securities
Amortized Cost	19,618	19,213
Gross Unrealized Gains	23	1
Gross Unrealized Losses	(231)	(324)
Fair Value	19,410	18,890
Government pass-throughs, Fannie Mae
Mortgage-backed securities
Amortized Cost	20,107	13,952
Gross Unrealized Gains	47	7
Gross Unrealized Losses	(164)	(339)
Fair Value	19,990	13,620
Government pass-throughs, Freddie Mac
Mortgage-backed securities
Amortized Cost	12,291	12,662
Gross Unrealized Gains	12	0
Gross Unrealized Losses	(110)	(252)
Fair Value	12,193	12,410
Private pass-throughs
Mortgage-backed securities
Amortized Cost	23,819	25,064
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(308)	(349)
Fair Value	23,511	24,715
Collateralized mortgage obligations
Mortgage-backed securities
Amortized Cost	12,813	12,328
Gross Unrealized Gains	4	11
Gross Unrealized Losses	(150)	(180)
Fair Value	$ 12,667	$ 12,159

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Mortgage-Backed Securities (Details 1) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Amortized cost by contractual maturity:
Amortized Cost	$ 66,124	$ 66,140
Fair value by contractual maturity:
Fair Value	66,848	66,169
Mortgage-backed securities
Amortized cost by contractual maturity:
Due after one year through five years	817
Due after five years through ten years	6,250
Due after ten years	81,581
Amortized Cost	88,648	83,219
Fair value by contractual maturity:
Due after one year through five years	817
Due after five years through ten years	6,233
Due after ten years	80,721
Fair Value	$ 87,771	$ 81,794

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Mortgage-Backed Securities (Details 2) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Mortgage-backed securities available for sale
Securities in a continuous unrealized loss position presented by length of time
Less than 12 Months, Fair Value	$ 3,969	$ 24,460
Less than 12 Months, Gross Unrealized Losses	(30)	(226)
12 Months or More, Fair Value	62,381	53,052
12 Months or More, Gross Unrealized Losses	(933)	(1,218)
Total, Fair Value	66,350	77,512
Total, Gross Unrealized Losses	(963)	(1,444)
Government pass-throughs, Ginnie Mae
Securities in a continuous unrealized loss position presented by length of time
Less than 12 Months, Fair Value	0	4,850
Less than 12 Months, Gross Unrealized Losses	0	(26)
12 Months or More, Fair Value	14,367	13,794
12 Months or More, Gross Unrealized Losses	(231)	(298)
Total, Fair Value	14,367	18,644
Total, Gross Unrealized Losses	(231)	(324)
Government pass-throughs, Fannie Mae
Securities in a continuous unrealized loss position presented by length of time
Less than 12 Months, Fair Value	0	403
Less than 12 Months, Gross Unrealized Losses	0	(2)
12 Months or More, Fair Value	10,736	12,152
12 Months or More, Gross Unrealized Losses	(164)	(337)
Total, Fair Value	10,736	12,555
Total, Gross Unrealized Losses	(164)	(339)
Government pass-throughs, Freddie Mac
Securities in a continuous unrealized loss position presented by length of time
Less than 12 Months, Fair Value	0	680
Less than 12 Months, Gross Unrealized Losses	0	(24)
12 Months or More, Fair Value	8,660	11,699
12 Months or More, Gross Unrealized Losses	(110)	(228)
Total, Fair Value	8,660	12,379
Total, Gross Unrealized Losses	(110)	(252)
Private pass-throughs
Securities in a continuous unrealized loss position presented by length of time
Less than 12 Months, Fair Value	2,085	14,436
Less than 12 Months, Gross Unrealized Losses	(19)	(134)
12 Months or More, Fair Value	20,613	9,359
12 Months or More, Gross Unrealized Losses	(289)	(215)
Total, Fair Value	22,698	23,795
Total, Gross Unrealized Losses	(308)	(349)
Collateralized mortgage obligations
Securities in a continuous unrealized loss position presented by length of time
Less than 12 Months, Fair Value	1,884	4,091
Less than 12 Months, Gross Unrealized Losses	(11)	(40)
12 Months or More, Fair Value	8,005	6,048
12 Months or More, Gross Unrealized Losses	(139)	(140)
Total, Fair Value	9,889	10,139
Total, Gross Unrealized Losses	$ (150)	$ (180)

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Mortgage-Backed Securities (Detail Textuals) - Mortgage-backed securities available for sale $ in Millions	Mar. 31, 2019 USD ($) Security	Dec. 31, 2018 USD ($)
Mortgage-backed securities
Number of mortgage-backed securities held in an unrealized loss position | Security	61
Carrying amount of mortgage-backed securities pledged to secure repurchase agreements and public fund accounts | $	$ 10.3	$ 10.4

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Loans Receivable and Related Allowance for Loan Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Primary segments of the loan portfolio
Collectively evaluated for impairment	$ 728,980	$ 733,396
Individually evaluated for impairment	0	0
Total loans before allowance for loan losses	728,980	733,396
Real Estate Loans | One-to-four-family Residential and Construction
Primary segments of the loan portfolio
Collectively evaluated for impairment	252,071	253,913
Individually evaluated for impairment	0	0
Total loans before allowance for loan losses	252,071	253,913
Real Estate Loans | Commercial Real Estate
Primary segments of the loan portfolio
Collectively evaluated for impairment	308,999	308,775
Individually evaluated for impairment	0	0
Total loans before allowance for loan losses	308,999	308,775
Real Estate Loans | Home Equity Loans and Lines of Credit
Primary segments of the loan portfolio
Collectively evaluated for impairment	120,129	123,373
Individually evaluated for impairment	0	0
Total loans before allowance for loan losses	120,129	123,373
Commercial Business
Primary segments of the loan portfolio
Collectively evaluated for impairment	47,274	46,196
Individually evaluated for impairment	0	0
Total loans before allowance for loan losses	47,274	46,196
Other Loans
Primary segments of the loan portfolio
Collectively evaluated for impairment	507	1,139
Individually evaluated for impairment	0	0
Total loans before allowance for loan losses	$ 507	$ 1,139

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Loans Receivable and Related Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Impaired Loans
Average investment in impaired loans	$ 0	$ 295
Interest income recognized on impaired loans	0	0
Real Estate Loans | Commercial real estate
Impaired Loans
Average investment in impaired loans	$ 0	$ 295

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Loans Receivable and Related Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Classes of loan portfolio summarized within internal risk rating system
Loans	$ 728,980	$ 733,396
Pass
Classes of loan portfolio summarized within internal risk rating system
Loans	724,328	725,422
Special Mention
Classes of loan portfolio summarized within internal risk rating system
Loans	2,070	5,145
Substandard
Classes of loan portfolio summarized within internal risk rating system
Loans	2,582	2,829
Doubtful
Classes of loan portfolio summarized within internal risk rating system
Loans	0	0
Real Estate Loans | One-to-four-family residential and construction
Classes of loan portfolio summarized within internal risk rating system
Loans	252,071	253,913
Real Estate Loans | One-to-four-family residential and construction | Pass
Classes of loan portfolio summarized within internal risk rating system
Loans	250,464	252,186
Real Estate Loans | One-to-four-family residential and construction | Special Mention
Classes of loan portfolio summarized within internal risk rating system
Loans	0	0
Real Estate Loans | One-to-four-family residential and construction | Substandard
Classes of loan portfolio summarized within internal risk rating system
Loans	1,607	1,727
Real Estate Loans | One-to-four-family residential and construction | Doubtful
Classes of loan portfolio summarized within internal risk rating system
Loans	0	0
Real Estate Loans | Commercial real estate
Classes of loan portfolio summarized within internal risk rating system
Loans	308,999	308,775
Real Estate Loans | Commercial real estate | Pass
Classes of loan portfolio summarized within internal risk rating system
Loans	306,559	303,161
Real Estate Loans | Commercial real estate | Special Mention
Classes of loan portfolio summarized within internal risk rating system
Loans	1,784	4,851
Real Estate Loans | Commercial real estate | Substandard
Classes of loan portfolio summarized within internal risk rating system
Loans	656	763
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	120,129	123,373
Real Estate Loans | Home equity loans and lines of credit | Pass
Classes of loan portfolio summarized within internal risk rating system
Loans	119,816	123,053
Real Estate Loans | Home equity loans and lines of credit | Special Mention
Classes of loan portfolio summarized within internal risk rating system
Loans	60	62
Real Estate Loans | Home equity loans and lines of credit | Substandard
Classes of loan portfolio summarized within internal risk rating system
Loans	253	258
Real Estate Loans | Home equity loans and lines of credit | Doubtful
Classes of loan portfolio summarized within internal risk rating system
Loans	0	0
Commercial business loans
Classes of loan portfolio summarized within internal risk rating system
Loans	47,274	46,196
Commercial business loans | Pass
Classes of loan portfolio summarized within internal risk rating system
Loans	46,992	45,902
Commercial business loans | Special Mention
Classes of loan portfolio summarized within internal risk rating system
Loans	226	232
Commercial business loans | Substandard
Classes of loan portfolio summarized within internal risk rating system
Loans	56	62
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	507	1,139
Other loans | Pass
Classes of loan portfolio summarized within internal risk rating system
Loans	497	1,120
Other loans | Special Mention
Classes of loan portfolio summarized within internal risk rating system
Loans	0	0
Other loans | Substandard
Classes of loan portfolio summarized within internal risk rating system
Loans	10	19
Other loans | Doubtful
Classes of loan portfolio summarized within internal risk rating system
Loans	$ 0	$ 0

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Loans Receivable and Related Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Current	$ 724,274	$ 727,905
Non-Accrual	2,501	2,727
90 Days Past Due and Accruing	0	3
Total loans before allowance for loan losses	728,980	733,396
30-59 Days Past Due
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Past Due	2,163	2,571
60-89 Days Past Due
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Past Due	42	190
Real Estate Loans | One-to-four-family Residential and Construction
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Current	249,086	250,691
Non-Accrual	1,606	1,727
90 Days Past Due and Accruing	0	0
Total loans before allowance for loan losses	252,071	253,913
Real Estate Loans | One-to-four-family Residential and Construction | 30-59 Days Past Due
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Past Due	1,379	1,341
Real Estate Loans | One-to-four-family Residential and Construction | 60-89 Days Past Due
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Past Due	0	154
Real Estate Loans | Commercial real estate
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Current	307,954	307,740
Non-Accrual	576	661
90 Days Past Due and Accruing	0	0
Total loans before allowance for loan losses	308,999	308,775
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	469	374
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	0
Real Estate Loans | Home equity loans and lines of credit
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Current	119,573	122,929
Non-Accrual	253	258
90 Days Past Due and Accruing	0	0
Total loans before allowance for loan losses	120,129	123,373
Real Estate Loans | Home equity loans and lines of credit | 30-59 Days Past Due
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Past Due	264	163
Real Estate Loans | Home equity loans and lines of credit | 60-89 Days Past Due
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Past Due	39	23
Commercial business loans
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Current	47,171	45,434
Non-Accrual	56	62
90 Days Past Due and Accruing	0	0
Total loans before allowance for loan losses	47,274	46,196
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	47	690
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	0	10
Other loans
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Current	490	1,111
Non-Accrual	10	19
90 Days Past Due and Accruing	0	3
Total loans before allowance for loan losses	507	1,139
Other loans | 30-59 Days Past Due
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Past Due	4	3
Other loans | 60-89 Days Past Due
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Past Due	$ 3	$ 3

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Loans Receivable and Related Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Dec. 31, 2018
Allowance for loan losses
Balance at the beginning of the period	$ 4,414	$ 4,127
Charge-offs	(148)	(11)
Recoveries	1	69
Provision	108
Balance at the end of the period	4,375	4,185
Evaluated for Impairment:
Individually			$ 0	$ 0
Collectively			4,375	4,414
Balance at the end of the period	4,414	4,127	4,375	4,414
Real Estate Loans | One-to-four-family Residential and Construction
Allowance for loan losses
Balance at the beginning of the period	1,051	1,384
Charge-offs	0	0
Recoveries	0	69
Provision	(191)	(54)
Balance at the end of the period	860	1,399
Evaluated for Impairment:
Individually			0	0
Collectively			860	1,051
Balance at the end of the period	1,051	1,384	860	1,051
Real Estate Loans | Commercial Real Estate
Allowance for loan losses
Balance at the beginning of the period	2,761	2,003
Charge-offs	(121)	0
Recoveries	0	0
Provision	114	119
Balance at the end of the period	2,754	2,122
Evaluated for Impairment:
Individually			0	0
Collectively			2,754	2,761
Balance at the end of the period	2,761	2,003	2,754	2,761
Real Estate Loans | Home Equity Loans and Lines of Credit
Allowance for loan losses
Balance at the beginning of the period	312	400
Charge-offs	0	0
Recoveries	1	0
Provision	(15)	(10)
Balance at the end of the period	298	390
Evaluated for Impairment:
Individually			0	0
Collectively			298	312
Balance at the end of the period	312	400	298	312
Commercial Business
Allowance for loan losses
Balance at the beginning of the period	286	333
Charge-offs	0	(9)
Recoveries	0	0
Provision	175	(54)
Balance at the end of the period	461	270
Evaluated for Impairment:
Individually			0	0
Collectively			461	286
Balance at the end of the period	286	333	461	286
Other Loans
Allowance for loan losses
Balance at the beginning of the period	4	7
Charge-offs	(27)	(2)
Recoveries	0	0
Provision	25	(1)
Balance at the end of the period	2	4
Evaluated for Impairment:
Individually			0	0
Collectively			2	4
Balance at the end of the period	$ 4	$ 7	$ 2	$ 4

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Loans Receivable and Related Allowance for Loan Losses (Detail Textuals)	3 Months Ended
	Mar. 31, 2019 USD ($) Security Loan	Dec. 31, 2018 USD ($)
Financing Receivable, Recorded Investment [Line Items]
Deferred loan costs of loans receivable	$ 247,000	$ 226,000
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
Number of loans on non-accrual status | Loan	11
Non-accrual status less than 90 days past due	$ 1,200,000
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
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

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Foreclosed Assets Held For Sale (Detail Textuals)	Mar. 31, 2019 USD ($) Residential_properties	Dec. 31, 2018 USD ($)
Foreclosed Assets Held For Sale [Line Items]
Foreclosed assets acquired in settlement of loans	$ 531,000	$ 486,000
Initiated formal foreclosure procedures	$ 362,000
Residential property
Foreclosed Assets Held For Sale [Line Items]
Number of properties | Residential_properties	2
One-to-four family residential loans
Foreclosed Assets Held For Sale [Line Items]
Initiated formal foreclosure procedures	$ 97,000
Home equity loans and lines of credit
Foreclosed Assets Held For Sale [Line Items]
Initiated formal foreclosure procedures	$ 70,000
Commercial real estate
Foreclosed Assets Held For Sale [Line Items]
Number of properties | Residential_properties	2
Initiated formal foreclosure procedures	$ 194,000

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Leases (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Financing lease costs
Amortization of right-of-use asset	$ 94
Interest expense	8
Total financing lease costs	$ 102

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Leases (Details 1)	Mar. 31, 2019
Leases [Abstract]
Weighted-average term (years)	4 years 8 months 12 days
Weighted-average discount rate	2.81%

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Leases (Details 2) $ in Thousands	Mar. 31, 2019 USD ($)
Undiscounted cash flows due within:
2019	$ 305
2020	292
2021	124
2022	102
2023	102
2024 and thereafter	212
Total undiscounted cash flows	1,137
Impact of present value discount	(73)
Amount reported on balance sheet	$ 1,064

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Leases (Details 3) $ in Millions	Mar. 31, 2019 USD ($) Agreement
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of financing lease agreements | Agreement	4
ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Finance right-of-use assets	$ 1.1
Finance lease liability	$ 1.2

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Stock Based Compensation (Details) - $ / shares	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Options
Exercised (in shares)	(10,665)	(8,801)
Employee Stock Option
Options
Outstanding at December 31, 2018 (in shares)	266,695
Granted (in shares)	0
Exercised (in shares)	(10,665)
Forfeited (in shares)	0
Outstanding at March 31, 2019 (in shares)	256,030		266,695
Exercisable at March 31, 2019 (in shares)	256,030
Weighted Average Exercise Price
Outstanding at December 31, 2018 (in dollars per share)	$ 17.12
Granted (in dollars per share)	0
Exercise price (in dollars per share)	17.75
Forfeited (in dollars per share)	0
Outstanding at March 31, 2019 (in dollars per share)	17.09		$ 17.12
Exercisable at March 31, 2019 (in dollars per share)	$ 17.09
Weighted Average Remaining Contractual Term	3 years 2 months 1 day		3 years 3 months 26 days

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Stock Based Compensation (Details 1) - Restricted stock	3 Months Ended
	Mar. 31, 2019 $ / shares shares
Number of Restricted Shares
Balance, Non-vested shares at December 31, 2018 | shares	250
Granted | shares	4,547
Vested | shares	0
Forfeited | shares	0
Balance, Non-vested shares at March 31, 2019 | shares	4,797
Weighted Average Grant Date Price Per Share
Balance, Non-vested shares at December 31, 2018 | $ / shares	$ 31.1
Granted | $ / shares	29.13
Vested | $ / shares	0
Forfeited | $ / shares	0
Balance, Non-vested shares at March 31, 2019 | $ / shares	$ 29.24

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Stock Based Compensation (Detail Textuals)		1 Months Ended	3 Months Ended
	Mar. 12, 2019 shares	Feb. 26, 2019 shares	Mar. 31, 2019 USD ($) Plan shares
Stock Based Compensation
Number of stock option plan | Plan			2
Allegheny Valley Bancorp, Inc. 2011 Stock Incentive Plan (the "2011 Plan")
Stock Based Compensation
Number of shares available to be issued			72,588
Standard Financial Corp. 2012 Equity Incentive Plan (the "2012 Plan")
Stock Based Compensation
Number of shares available to be issued			101,144
Restricted stock
Stock Based Compensation
Compensation expense | $			$ 13,000
Unrecognized compensation expense | $			$ 68,000
Restricted stock | Directors | Allegheny Valley Bancorp, Inc. 2011 Stock Incentive Plan (the "2011 Plan")
Stock Based Compensation
Aggregate number of shares issued under plan		1,820
Vesting period		11 months
Restricted stock | Employee | Allegheny Valley Bancorp, Inc. 2011 Stock Incentive Plan (the "2011 Plan")
Stock Based Compensation
Aggregate number of shares issued under plan	2,727
Vesting period	34 months

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Employee Stock Ownership Plan (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
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	$ 108	$ 109
Total shares held by ESOP	254,610
Unallocated shares	159,003
Fair market value of the unallocated ESOP shares	$ 4,300

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Pension Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Compensation and Retirement Disclosure [Abstract]
Interest Cost	$ 31	$ 33
Expected return on plan assets	(32)	(41)
Amortization of net loss	2	3
Net periodic pension cost	$ 1	$ (5)

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Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands		Mar. 31, 2019	Dec. 31, 2018
Assets measured at fair value
Total investment securities available for sale		$ 66,848	$ 66,169
Mortgage-backed securities available for sale		87,771	81,794
Level 1
Assets measured at fair value
Total investment securities available for sale	[1]	0	0
Equity securities available for sale	[2]	2,752	2,725
Mortgage-backed securities available for sale	[1]	0	0
Level 2
Assets measured at fair value
Total investment securities available for sale	[1]	66,848	66,169
Equity securities available for sale	[2]	0	0
Mortgage-backed securities available for sale	[1]	87,771	81,794
Level 3
Assets measured at fair value
Total investment securities available for sale	[1]	0	0
Equity securities available for sale	[2]	0	0
Mortgage-backed securities available for sale	[1]	0	0
Recurring basis
Assets measured at fair value
Total investment securities available for sale		66,848	66,169
Equity securities available for sale		2,752	2,725
Mortgage-backed securities available for sale		87,771	81,794
Total recurring fair value measurements		157,371	150,688
Recurring basis | U.S. government and agency obligations
Assets measured at fair value
Total investment securities available for sale		8,333	8,270
Recurring basis | Corporate bonds
Assets measured at fair value
Total investment securities available for sale		4,266	4,201
Recurring basis | Municipal obligations
Assets measured at fair value
Total investment securities available for sale		54,249	53,698
Recurring basis | Level 1
Assets measured at fair value
Total investment securities available for sale		0	0
Equity securities available for sale		2,752	2,725
Mortgage-backed securities available for sale		0	0
Total recurring fair value measurements		2,752	2,725
Recurring basis | Level 1 | U.S. government and agency obligations
Assets measured at fair value
Total investment securities available for sale		0	0
Recurring basis | Level 1 | Corporate bonds
Assets measured at fair value
Total investment securities available for sale		0	0
Recurring basis | Level 1 | Municipal obligations
Assets measured at fair value
Total investment securities available for sale		0	0
Recurring basis | Level 2
Assets measured at fair value
Total investment securities available for sale		66,848	66,169
Equity securities available for sale		0	0
Mortgage-backed securities available for sale		87,771	81,794
Total recurring fair value measurements		154,619	147,963
Recurring basis | Level 2 | U.S. government and agency obligations
Assets measured at fair value
Total investment securities available for sale		8,333	8,270
Recurring basis | Level 2 | Corporate bonds
Assets measured at fair value
Total investment securities available for sale		4,266	4,201
Recurring basis | Level 2 | Municipal obligations
Assets measured at fair value
Total investment securities available for sale		54,249	53,698
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.

[2] The financial instrument is carried at fair value through net income.

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Fair Value of Assets and Liabilities (Details 1) - Nonrecurring basis - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Assets measured at fair value
Assets measured at fair value on nonrecurring basis	$ 531	$ 486
Level 1
Assets measured at fair value
Assets measured at fair value on nonrecurring basis	0	0
Level 2
Assets measured at fair value
Assets measured at fair value on nonrecurring basis	0	0
Level 3
Assets measured at fair value
Assets measured at fair value on nonrecurring basis	531	486
Foreclosed real estate
Assets measured at fair value
Assets measured at fair value on nonrecurring basis	531	486
Foreclosed real estate | Level 1
Assets measured at fair value
Assets measured at fair value on nonrecurring basis	0	0
Foreclosed real estate | Level 2
Assets measured at fair value
Assets measured at fair value on nonrecurring basis	0	0
Foreclosed real estate | Level 3
Assets measured at fair value
Assets measured at fair value on nonrecurring basis	$ 531	$ 486

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Fair Value of Assets and Liabilities (Details 2) - Nonrecurring basis - Level 3 $ in Thousands		Mar. 31, 2019 USD ($) Percent	Dec. 31, 2018 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Foreclosed real estate | $		$ 531	$ 486
Liquidation expenses | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Foreclosed real estate, unobservable input (in percent)	[1]	0
Liquidation expenses | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Foreclosed real estate, unobservable input (in percent)	[1]	15
Appraisal adjustments | Appraisal Of Collateral | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Foreclosed real estate, unobservable input (in percent)	[1],[2]	0
Appraisal adjustments | Appraisal Of Collateral | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Foreclosed real estate, unobservable input (in percent)	[1],[2]	30

[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.

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Fair Value of Assets and Liabilities (Details 3) - USD ($) $ in Thousands		Mar. 31, 2019	Dec. 31, 2018
Financial Instruments - Assets:
Cash on hand and due from banks		$ 3,201	$ 3,371
Interest-earning deposits in other institutions		31,500	12,836
Investment securities		66,848	66,169
Mortgage-backed securities		87,771	81,794
Bank-owned life insurance		22,703	22,572
Financial Instruments - Liabilities:
Demand, savings and club accounts		496,515	471,177
Certificate deposit accounts		246,907	246,697
Federal Home Loan Bank short-term borrowings			4,524
Carrying Amount
Financial Instruments - Assets:
Cash on hand and due from banks	[1]	3,201	3,371
Interest-earning deposits in other institutions	[1]	31,500	12,836
Investment securities	[2]	66,848	66,169
Equity Securities	[3]	2,752	2,725
Mortgage-backed securities	[2]	87,771	81,794
Certificate of deposit	[1]	249	249
Federal Home Loan Bank and other restricted stocks	[1]	7,463	7,900
Loans receivable	[1],[4]	724,605	728,982
Bank-owned life insurance	[1]	22,703	22,572
Accrued interest receivable	[1]	3,004	2,823
Financial Instruments - Liabilities:
Demand, savings and club accounts	[1]	496,515	471,177
Certificate deposit accounts	[1]	246,907	246,697
Long-term borrowings	[1]	98,148
Federal Home Loan Bank short-term borrowings	[1]		4,524
Federal Home Loan Bank advances	[1]		104,963
Securities sold under agreements to repurchase	[1]	3,988	2,137
Accrued interest payable	[1]	1,163	1,154
Estimated Fair Value
Financial Instruments - Assets:
Cash on hand and due from banks	[1]	3,201	3,371
Interest-earning deposits in other institutions	[1]	31,500	12,836
Investment securities	[2]	66,848	66,169
Equity Securities	[3]	2,752	2,725
Mortgage-backed securities	[2]	87,771	81,794
Certificate of deposit	[1]	249	249
Federal Home Loan Bank and other restricted stocks	[1]	7,463	7,900
Loans receivable	[1],[4]	724,301	717,491
Bank-owned life insurance	[1]	22,703	22,572
Accrued interest receivable	[1]	3,004	2,823
Financial Instruments - Liabilities:
Demand, savings and club accounts	[1]	496,515	471,177
Certificate deposit accounts	[1]	247,322	245,740
Long-term borrowings	[1]	98,058
Federal Home Loan Bank short-term borrowings	[1]		4,524
Federal Home Loan Bank advances	[1]		104,345
Securities sold under agreements to repurchase	[1]	3,988	2,137
Accrued interest payable	[1]	1,163	1,154
Level 1
Financial Instruments - Assets:
Cash on hand and due from banks	[1]	3,201	3,371
Interest-earning deposits in other institutions	[1]	31,500	12,836
Investment securities	[2]	0	0
Equity Securities	[3]	2,752	2,725
Mortgage-backed securities	[2]	0	0
Certificate of deposit	[1]	249	249
Federal Home Loan Bank and other restricted stocks	[1]	7,463	7,900
Loans receivable	[1],[4]	0	0
Bank-owned life insurance	[1]	22,703	22,572
Accrued interest receivable	[1]	3,004	2,823
Financial Instruments - Liabilities:
Demand, savings and club accounts	[1]	496,515	471,177
Certificate deposit accounts	[1]	0	0
Long-term borrowings	[1]	0
Federal Home Loan Bank short-term borrowings	[1]		4,524
Federal Home Loan Bank advances	[1]		0
Securities sold under agreements to repurchase	[1]	3,988	2,137
Accrued interest payable	[1]	1,163	1,154
Level 2
Financial Instruments - Assets:
Cash on hand and due from banks	[1]	0	0
Interest-earning deposits in other institutions	[1]	0	0
Investment securities	[2]	66,848	66,169
Equity Securities	[3]	0	0
Mortgage-backed securities	[2]	87,771	81,794
Certificate of deposit	[1]	0	0
Federal Home Loan Bank and other restricted stocks	[1]	0	0
Loans receivable	[1],[4]	0	0
Bank-owned life insurance	[1]	0	0
Accrued interest receivable	[1]	0	0
Financial Instruments - Liabilities:
Demand, savings and club accounts	[1]	0	0
Certificate deposit accounts	[1]	0	0
Long-term borrowings	[1]	0
Federal Home Loan Bank short-term borrowings	[1]		0
Federal Home Loan Bank advances	[1]		0
Securities sold under agreements to repurchase	[1]	0	0
Accrued interest payable	[1]	0	0
Level 3
Financial Instruments - Assets:
Cash on hand and due from banks	[1]	0	0
Interest-earning deposits in other institutions	[1]	0	0
Investment securities	[2]	0	0
Equity Securities	[3]	0	0
Mortgage-backed securities	[2]	0	0
Certificate of deposit	[1]	0	0
Federal Home Loan Bank and other restricted stocks	[1]	0	0
Loans receivable	[1],[4]	724,301	717,491
Bank-owned life insurance	[1]	0	0
Accrued interest receivable	[1]	0	0
Financial Instruments - Liabilities:
Demand, savings and club accounts	[1]	0	0
Certificate deposit accounts	[1]	247,322	245,740
Long-term borrowings	[1]	98,058
Federal Home Loan Bank short-term borrowings	[1]		0
Federal Home Loan Bank advances	[1]		104,345
Securities sold under agreements to repurchase	[1]	0	0
Accrued interest payable	[1]	$ 0	$ 0

[1] The financial instrument is carried at amortized cost.

[2] The financial instrument is carried at fair value through other comprehensive income.

[3] The financial instrument is carried at fair value through net income.

[4] In accordance with the adoption of ASU 2016-01, the fair value of loans was measured using an exit price notion.

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Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Changes in accumulated other comprehensive income by component
Balance at the beginning of the period	$ (1,344)
Total other comprehensive income (loss)	984	$ (1,941)
Balance at the end of the period	(360)
Amount Reclassified from Accumulated Other Comprehensive Income
Changes in accumulated other comprehensive income by component
Balance at the beginning of the period	(1,344)	528
Other comprehensive income (loss) before reclassification	976	(1,943)
Total other comprehensive income (loss)	984	(1,941)
Change in accounting principle for adoption of ASU 2016-01		(416)
Balance at the end of the period	(360)	(1,829)
Unrealized Gains (Losses) on Available for Sale Securities | Amount Reclassified from Accumulated Other Comprehensive Income
Changes in accumulated other comprehensive income by component
Balance at the beginning of the period	(1,103)	840
Other comprehensive income (loss) before reclassification	976	(1,943)
Amount reclassified from accumulated other comprehensive income (loss)	6
Total other comprehensive income (loss)	982	(1,943)
Change in accounting principle for adoption of ASU 2016-01		(416)
Balance at the end of the period	(121)	(1,519)
Unrecognized Pension Costs | Amount Reclassified from Accumulated Other Comprehensive Income
Changes in accumulated other comprehensive income by component
Balance at the beginning of the period	(241)	(312)
Other comprehensive income (loss) before reclassification	0	0
Amount reclassified from accumulated other comprehensive income (loss)	2	2
Total other comprehensive income (loss)	2	2
Change in accounting principle for adoption of ASU 2016-01		0
Balance at the end of the period	$ (239)	$ (310)

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Accumulated Other Comprehensive Income (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net losses on sales of securities	$ (7)
Other operating expenses	998	$ 1,017
Income tax expense	543	576
Net income	2,169	2,160
Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	8	2
Amount Reclassified from Accumulated Other Comprehensive Income | Unrealized gains on available for sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net losses on sales of securities	7
Income tax expense	(1)
Net of tax	6
Amount Reclassified from Accumulated Other Comprehensive Income | Amortization of defined benefit items: Actuarial loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net losses on sales of securities		3
Other operating expenses	2
Income tax expense	0	(1)
Net of tax	$ 2	$ 2

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Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Noninterest income (in-scope of Topic 606)	$ 874	$ 824
Noninterest income (out-of-scope of Topic 606)	264	258
Noninterest Income	1,138	1,082
Accounting Standards Update 2014-09 (Topic 606) | Service charges on deposit accounts
Disaggregation of Revenue [Line Items]
Noninterest income (in-scope of Topic 606)	672	692
Accounting Standards Update 2014-09 (Topic 606) | Investment management fees
Disaggregation of Revenue [Line Items]
Noninterest income (in-scope of Topic 606)	$ 202	$ 132

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Goodwill and Other Intangibles (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Total	$ 2,315	$ 2,508
Core deposit intangible
Finite-Lived Intangible Assets [Line Items]
2019	435
2020	472
2021	352
2022	325
2023	325
2024	325
2025	81
Total	$ 2,315

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Goodwill and Other Intangibles (Detail Textuals) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill associated with mergers	$ 25,836	$ 25,836
Core deposit intangible	2,315	$ 2,508
Accumulated amortization of core deposit intangible	$ 1,800