10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended September 30, 2017

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

For the transition period from to

UNITED COMMUNITY FINANCIAL CORP.

(Exact name of the registrant as specified in its charter)

OHIO	000-024399	34-1856319
(State or other jurisdiction of incorporation)	(Commission File No.)	(IRS Employer I.D. No.)

275 West Federal Street, Youngstown, Ohio 44503-1203

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (330) 742-0500

Not Applicable

(Former name or former address, if changed since last report)

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 filing requirements for the past 90 days.

Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes  ☒    No  ☐

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

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
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  ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. 49,770,126 common shares as of October 31, 2017.

TABLE OF CONTENTS

			PAGE
Part I. FINANCIAL INFORMATION
	Item 1.	Financial Statements	3
	Condensed Consolidated Statements of Financial Condition as of September 30, 2017 (Unaudited) and December 31, 2016		3
	Condensed Consolidated Statements of Income and Comprehensive Income for the Three and Nine Months Ended September 30, 2017 and 2016 (Unaudited)		4
	Condensed Consolidated Statement of Shareholders’ Equity for the Nine Months ended September 30, 2017and 2016 (Unaudited)		6
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2017and 2016 (Unaudited)		7
	Notes to Consolidated Financial Statements (Unaudited)		8-58
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	59-68
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	69
	Item 4.	Controls and Procedures	70
Part II.OTHER INFORMATION			71
	Item 1.	Legal Proceedings	71
	Item 1A.	Risk Factors	71
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	71
	Item 3.	Defaults Upon Senior Securities (None)	71
	Item 4.	Mine Safety Disclosures (None)	71
	Item 5.	Other Information (None)	71
	Item 6.	Exhibits	72
Signatures			73

2

PART I—FINANCIAL INFORMATION

ITEM 1. Financial Statements

UNITED COMMUNITY FINANCIAL CORP.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

	September 30,			December 31,
	2017			2016
	(Dollars in thousands)
Assets:
Cash and deposits with banks	$	29,600		$	27,690
Federal funds sold		8,410			18,197
Total cash and cash equivalents		38,010			45,887
Securities:
Available for sale, at fair value		274,822			343,284
Held to maturity, (fair value of $85,024 and $96,150, respectively)		85,549			97,519
Loans held for sale, at lower of cost or market		196			165
Loans held for sale, at fair value		84,349			62,593
Loans, net of allowance for loan losses of $20,555 and $19,087		1,947,695			1,503,577
Federal Home Loan Bank stock, at cost		19,324			18,068
Premises and equipment, net		22,132			20,963
Accrued interest receivable		7,253			6,900
Real estate owned and other repossessed assets, net		1,143			1,777
Goodwill		19,488			208
Customer list intangible		2,090			1,356
Core deposit intangible		2,017			5
Cash surrender value of life insurance		62,050			55,861
Other assets		36,247			33,182
Total assets	$	2,602,365		$	2,191,345
Liabilities and Shareholders' Equity
Liabilities:
Deposits:
Non-interest bearing	$	343,146		$	256,918
Interest bearing
Customer deposits		1,438,944			1,181,557
Brokered deposits		156,609			76,516
Total interest bearing deposits		1,595,553			1,258,073
Total deposits		1,938,699			1,514,991
Borrowed funds:
Federal Home Loan Bank advances
Long-term Federal Home Loan Bank advances		48,341			47,756
Short-term Federal Home Loan Bank advances		280,000			343,000
Total Federal Home Loan Bank advances		328,341			390,756
Repurchase agreements and other		10,191			512
Total borrowed funds		338,532			391,268
Advance payments by borrowers for taxes and insurance		16,048			23,812
Accrued interest payable		722			145
Accrued expenses and other liabilities		16,513			11,323
Total liabilities		2,310,514			1,941,539
Shareholders' Equity:
Preferred stock-no par value; 1,000,000 shares authorized and no shares issued and outstanding		—			—
Common stock-no par value; 499,000,000 shares authorized; 54,138,910 shares issued and    49,758,487 and 46,581,370 shares, respectively, outstanding		177,460			174,360
Retained earnings		164,988			152,675
Accumulated other comprehensive income (loss)		(17,929	)		(21,040	)
Treasury stock, at cost, 4,380,423 and 7,557,540 shares, respectively		(32,668	)		(56,189	)
Total shareholders’ equity		291,851			249,806
Total liabilities and shareholders’ equity	$	2,602,365		$	2,191,345

See Notes to Consolidated Financial Statements.

3

UNITED COMMUNITY FINANCIAL CORP.

CONDENSEDCONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
	(Dollars in thousands, except per share data)
Interest income
Loans	$	20,697		$	14,633		$	58,266		$	42,618
Loans held for sale		882			482			2,415			1,177
Securities available for sale, nontaxable		416			339			1,252			752
Securities available for sale, taxable		1,276			1,630			4,357			5,346
Securities held to maturity, nontaxable		49			66			163			183
Securities held to maturity, taxable		424			466			1,343			1,567
Federal Home Loan Bank stock dividends		253			180			694			542
Other interest earning assets		51			19			171			49
Total interest income		24,048			17,815			68,661			52,234
Interest expense
Deposits		2,226			1,389			5,834			4,497
Federal Home Loan Bank advances		1,315			661			3,334			1,754
Repurchase agreements and other		4			5			20			16
Total interest expense		3,545			2,055			9,188			6,267
Net interest income		20,503			15,760			59,473			45,967
Provision for loan losses		721			1,344			3,038			3,894
Net interest income after provision for loan losses		19,782			14,416			56,435			42,073
Non-interest income
Insurance agency income		509			451			1,454			1,269
Brokerage income		271			337			894			1,033
Deposit related fees		1,499			1,418			4,200			4,106
Mortgage servicing fees		760			715			2,225			2,114
Mortgage servicing rights valuation		(10	)		25			(15	)		(702	)
Mortgage servicing rights amortization		(491	)		(525	)		(1,426	)		(1,560	)
Other service fees		21			43			83			108
Net gains:
Securities available for sale (includes $236, $218, $566 and $604,    respectively, accumulated other comprehensive income reclassifications    for unrealized net gains on available for sale securities)		236			218			566			604
Mortgage banking income		1,688			1,957			5,128			5,208
Real estate owned and other repossessed assets, net		(73	)		—			(143	)		(76	)
Debit/credit card fees		971			915			3,220			2,916
Trust fees		449			—			1,151			—
Other income		475			449			1,442			1,421
Total non-interest income		6,305			6,003			18,779			16,441
Non-interest expense
Salaries and employee benefits (includes $0, $(445), $0 and $(1,001),    respectively, accumulated other comprehensive income reclassifications    from prior service credit on postretirement plan).		8,736			6,950			26,460			21,224
Occupancy		1,013			847			2,920			2,564
Equipment and data processing		2,303			1,926			6,688			5,648
Financial institutions tax		348			411			1,348			1,284
Advertising		285			290			674			638
Amortization of intangible assets		113			72			308			95
FDIC insurance premiums		301			155			829			768
Other insurance premiums		115			89			336			251
Legal and consulting fees		156			211			569			622
Other professional fees		666			341			1,606			762
Real estate owned and other repossessed asset expenses		33			41			118			190
Acquisition costs		—			—			4,962			—
Other expenses		1,395			1,645			4,112			4,256
Total non-interest expenses		15,464			12,978			50,930			38,302
Income before income taxes		10,623			7,441			24,284			20,212
Income tax expense (includes $83, $232, $198 and $561 income tax expense    from reclassification items)		3,067			2,288			7,001			6,409
Net income	$	7,556		$	5,153		$	17,283		$	13,803

(Continued)

4

(Continued)

UNITED COMMUNITY FINANCIAL CORP.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
		2017		2016			2017		2016
	(Dollars in thousands, except per share data)
Net income	$	7,556	$	5,153		$	17,283	$	13,803
Other comprehensive income
Unrealized gain (loss) on securities, available for sale, net of    reclassifications and tax of $262, $(737), $1,624 and    $5,117, respectively		486		(1,369	)		3,013		9,502
Accretion of unrealized losses on securities transferred from    available for sale to held to maturity, net of tax of $18, $25,    $53 and $63, respectively		33		47			98		118
Accretion of unrecognized actuarial gains and amortization of    prior service credit on postretirement plan, net of tax of $0,    $(156), $0 and $(350), respectively recognized in net    income		—		(289	)		—		(651	)
Total other comprehensive income (loss)		519		(1,611	)		3,111		8,969
Comprehensive income	$	8,075	$	3,542		$	20,394	$	22,772
Earnings per share
Basic	$	0.15	$	0.11		$	0.35	$	0.29
Diluted		0.15		0.11			0.35		0.29

See Notes to Consolidated Financial Statements.

5

UNITED COMMUNITY FINANCIAL CORP.

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

(Unaudited)

	Common Shares Outstanding			Common Stock			Retained Earnings			Accumulated Other Comprehensive Income(Loss)			Treasury Stock			Total
	(Dollars in thousands, except per share data)
Balance January 1, 2017		46,581,370		$	174,360		$	152,675		$	(21,040	)	$	(56,189	)	$	249,806
Net income								17,283									17,283
Other comprehensive income											3,111						3,111
Stock option exercises		80,085			(381	)								597			216
Stock option expense					1												1
Restricted stock grants		75,875			(564	)								564			—
Restricted stock expense					696												696
Vesting of Long-term Incentive Plan		68,783			87									510			597
Purchase of Ohio Legacy Corp.		3,033,604			3,261									22,555			25,816
Cash dividend payments ($0.10 per share)								(4,970	)								(4,970	)
Treasury stock purchases		(81,230	)											(705	)		(705	)
Balance September 30, 2017		49,758,487		$	177,460		$	164,988		$	(17,929	)	$	(32,668	)	$	291,851

	Common Shares Outstanding			Common Stock			Retained Earnings			Accumulated Other Comprehensive Income(Loss)			Treasury Stock			Total
	(Dollars in thousands, except per share data)
Balance January 1, 2016		47,517,644		$	174,304		$	140,819		$	(19,220	)	$	(51,658	)	$	244,245
Net income								13,803									13,803
Other comprehensive income											8,969						8,969
Stock option exercises		165,405						(782	)					1,244			462
Stock option expense					8												8
Restricted stock grants		192,874			(1,157	)		(328	)					1,485			—
Restricted stock forfeitures		(2,928	)		13			14						(27	)		—
Restricted stock expense					716												716
Purchase of James & Sons Insurance		262,705						(501	)					2,048			1,547
Cash dividend payments ($0.08 per share)								(3,776	)								(3,776	)
Treasury stock purchases		(1,593,312	)											(9,571	)		(9,571	)
Balance September 30, 2016		46,542,388		$	173,884		$	149,249		$	(10,251	)	$	(56,479	)	$	256,403

See Notes to Consolidated Financial Statements.

6

UNITED COMMUNITY FINANCIAL CORP.

CONDENSEDCONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Nine Months Ended September 30,
	2017			2016
	(Dollars in thousands)
Cash Flows from Operating Activities
Net income	$	17,283		$	13,803
Adjustments to reconcile net income to net cash provided by operating activities
Provision for loan losses		3,038			3,894
Mortgage banking income		(1,140	)		(3,003	)
Changes in fair value on loans held for sale		(3,988	)		(2,205	)
Net losses on real estate owned and other repossessed assets sold		143			76
Net gain on available for sale securities sold		(566	)		(604	)
Net gain on other assets sold		—			(2	)
Amortization of premiums and accretion of discounts		3,169			5,320
Depreciation and amortization		2,018			1,729
Net change in interest receivable		326			(88	)
Net change in interest payable		506			64
Net change in prepaid and other assets		2,107			(3,040	)
Net change in other liabilities		3,956			2,570
Stock based compensation		697			724
Net principal disbursed on loans originated for sale		(194,232	)		(214,201	)
Proceeds from sale of loans held for sale		203,676			192,994
Net change in deferred tax assets		2,047			5,707
Cash surrender value of life insurance		(1,189	)		(1,108	)
Tax benefit recognized on stock based compensation		(300	)		—
Net change in interest rate caps		—			3
Net cash from operating activities		37,551			2,633
Cash Flows from Investing Activities
Proceeds from the principal repayments and maturities of securities available for sale		19,164			21,896
Proceeds from the principal repayments and maturities of securities held to maturity		11,625			10,270
Proceeds from the sale of securities available for sale		62,906			33,702
Proceeds from the sale of real estate owned and other repossessed assets		1,231			1,671
Proceeds from the sale of loans held for investment		2,250			1
Proceeds from the sale of premises and equipment		3			2
Purchases of premises and equipment		(1,943	)		(1,591	)
Principal disbursed on loans, net of repayments		(172,222	)		(129,388	)
Loans purchased		(45,350	)		(33,203	)
Purchase of bank owned life insurance		(5,000	)		—
Purchase of securities available for sale		—			(38,843	)
Purchase of securities held to maturity		—			(3,200	)
Net cash (paid) received in acquisition of insurance agencies		(144	)		107
Net cash received in acquisition of OLCB		25,779			—
Net cash from investing activities		(101,701	)		(138,576	)
Cash Flows from Financing Activities
Net increase in checking, savings and money market accounts		37,125			44,937
Net increase (decrease) in certificates of deposit		120,496			(7,637	)
Net decrease in advance payments by borrowers for taxes and insurance		(8,297	)		(6,416	)
Net change in short-term FHLB advances		(86,500	)		126,000
Net change in repurchase agreements and other borrowed funds		(1,092	)		(18	)
Proceeds from the exercise of stock options		216			462
Dividends paid		(4,970	)		(3,776	)
Purchase of treasury stock		(705	)		(9,571	)
Net cash from financing activities		56,273			143,981
Change in cash and cash equivalents		(7,877	)		8,038
Cash and cash equivalents, beginning of period		45,887			35,910
Cash and cash equivalents, end of period	$	38,010		$	43,948

See Notes to Consolidated Financial Statements

7

UNITED COMMUNITY FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. BASIS OF PRESENTATION

United Community Financial Corp. (United Community or the Company) was incorporated in the State of Ohio in February 1998 for the purpose of owning all of the outstanding capital stock of Home Savings and Loan Company of Youngstown, Ohio (Home Savings or the Bank) issued upon the conversion of Home Savings from a mutual savings association to a permanent capital stock savings association (Conversion). Upon consummation of the Conversion on July 8, 1998, United Community became the unitary thrift holding company for Home Savings.  Home Savings conducts its business from its main office located in Youngstown, Ohio, 35 retail banking offices, 13 loan production centers and three wealth management offices located throughout Ohio, western Pennsylvania and West Virginia.  

On January 29, 2016, United Community acquired James & Sons Insurance.  James & Sons Insurance was merged into HSB Insurance, LLC, a wholly-owned subsidiary of United Community.  HSB Insurance, LLC d/b/a James & Sons Insurance is an insurance agency that offers a wide variety of insurance products for business and residential customers, which include auto, homeowners, life-health, commercial, surety bonds and aviation. On February 28, 2017, James & Sons Insurance acquired Eich Brothers Insurance. Eich Brothers Insurance is an insurance agency that offers insurance products for business and residential customers, which include auto, commercial, homeowners and life-health.  On July 1, 2017, James & Sons Insurance acquired Stevens Insurance Agency, that offers insurance products for business and residential customers, which include auto, commercial, homeowners and life-health.      

HSB Capital, LLC, a wholly-owned subsidiary of United Community, was formed by United Community during 2016 for the purpose of providing mezzanine funding for customers.  Mezzanine loans are offered to customers in United Community’s market area and are expected to repaid from the cash flow from the operations of the business.

On January 31, 2017, United Community completed its acquisition of Ohio Legacy Corp. (OLCB).  Immediately following the acquisition of OLCB, Home Savings was merged into Premier Bank & Trust, OLCB’s wholly-owned subsidiary state chartered bank (PB&T), and PB&T changed its name to Home Savings Bank.  As a result of the acquisition, United Community issued 3,033,604 United Community common shares and paid $20.4 million to OLCB shareholders.   Also, in connection with the acquisition, United Community became a financial holding company, and its wholly owned subsidiary is now an Ohio bank.

HSB Insurance, Inc., a wholly-owned subsidiary of the Company which was formed and began operations on June 1, 2017, is a Delaware-based captive insurance company which insures against certain risks unique to the operations of the Company and its subsidiaries and for which insurance may not be currently available or economically feasible in today's insurance marketplace. HSB Insurance, Inc. pools resources with several other similar insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves.  HSB Insurance, Inc. is subject to regulations of the State of Delaware and undergoes periodic examinations by the Delaware Division of Insurance.

The accompanying consolidated financial statements of United Community have been prepared in accordance with instructions relating to Form 10-Q.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles (U.S. GAAP) for complete financial statements. However, such information reflects all adjustments (consisting solely of normal recurring adjustments) that are, in the opinion of management, necessary for a fair statement of results for the interim periods.

The results of operations for the three and nine months ended September 30, 2017, are not necessarily indicative of the results to be expected for the year ending December 31, 2017. The consolidated financial statements and notes thereto should be read in conjunction with the audited financial statements and notes contained in United Community’s Form 10-K for the year ended December 31, 2016.

The consolidated financial statements include the accounts of United Community and its subsidiaries, Home Savings, HSB Insurance, LLC, HSB Capital, LLC and HSB Insurance, Inc.  All material inter-company transactions have been eliminated.  Some items in the prior year financial statements were reclassified to conform to the current presentation. These reclassifications had no effect on prior year consolidated statements of operations or shareholders’ equity.

8

2. RECENT ACCOUNTING DEVELOPMENTS

In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606).  The ASU implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 was originally going to be effective on January 1, 2017; however, the FASB recently issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date which deferred the effective date of ASU 2014-09 by one year to January 1, 2018. United Community’s revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. We expect that ASU 2014-09 will require us to change how we recognize certain insurance commissions and fees; however, we do not expect these changes to have a significant impact on our financial statements. Additional disclosures will be required to provide quantitative and qualitative information regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (viii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The new guidance is effective for annual reporting periods and interim reporting periods within those annual periods, beginning after December 15, 2017.  Management is currently evaluating the impact of the adoption of this guidance on the Company’s consolidated financial statements and expects revisions to disclosures included in the consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02 - Leases (Topic 842). The ASU will require all organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additional qualitative and quantitative disclosures will be required so that users can understand more about the nature of an entity’s leasing activities. The new guidance is effective for annual reporting periods and interim reporting periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted. Management is currently evaluating the impact of the adoption of this guidance on the Company’s consolidated financial statements and expects to recognize an increase in other assets and other liabilities for the rights and obligations created by leasing of branch offices.  Management also expects minimal impact in the income statement with respect to occupancy expense related to leases.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC Topic 718, Compensation - Stock Compensation. The ASU includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements.  Key provisions include the elimination of “windfall pools” and removes the requirement to delay recognition of a windfall tax benefit until it reduces current taxes payable.  Additionally, the simplification permits entities to withhold an amount up to the employees’ maximum individual tax rate in the relevant jurisdiction without resulting in a liability classification of the award.  Entities are now permitted to make accounting policy elections for the impact of forfeitures on the recognition of expense for share-based payment awards.  This ASU was adopted on January 1, 2017.  The Company recognized a tax benefit of $300,000 in income tax expense during the nine months ended September 30, 2017 as a result of adoption related to vesting of restricted stock awards and exercised stock options.    

In June 2016, FASB Issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.   This ASU adds a new Topic 326 to the Codification and removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. Under current U.S. GAAP, companies generally recognize credit losses when it is probable that the loss has been incurred. The revised guidance will remove all recognition thresholds and will require companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the company expects to collect over the instrument’s contractual life. ASU 2016-13 also amends the credit loss measurement guidance for available-for-sale

9

debt securities and beneficial interests in securitized financial assets. The guidance in ASU 2016-13 is effective for “public business entities,” as defined, that are SEC filers for fiscal years, and for interim periods with those fiscal years, beginning after December 15, 2019.  Early adoption of the guidance is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Management is currently evaluating the impact of the adoption of this guidance on the Company’s consolidated financial statements.  Management is aggregating the necessary data requirements and addressing any data-archiving improvements necessary for the implementation of this ASU.

In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments, which amends the guidance in ASC 230 on the classification of certain cash receipts and payments in the statement of cash flows. The primary purpose of the ASU is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic. The ASU’s amendments add or clarify guidance on eight cash flow issues:

• Debt prepayment or debt extinguishment costs.

• Settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing.

• Contingent consideration payments made after a business combination.

• Proceeds from the settlement of insurance claims.

• Proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies.

• Distributions received from equity method investees.

• Beneficial interests in securitization transactions.

• Separately identifiable cash flows and application of the predominance principle.

For public business entities, the guidance in the ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years.  Early adoption is permitted for all entities. Entities must apply the guidance retrospectively to all periods presented but may apply it prospectively from the earliest date practicable if retrospective application would be impracticable.  Management is currently evaluating the impact of the adoption of this guidance on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU eliminates Step 2 from the goodwill impairment test. Instead, under the new guidance, an entity is to perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. The new guidance is effective for annual reporting periods, and interim reporting periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this guidance is not expected to have an impact on the Company’s consolidated financial statements.

In March 2017, the FASB issuedASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. This ASU amends the amortization period for certain purchased callable debt securities held at a premium. It shortens the amortization period for the premium to the earliest call date. Under current U.S. GAAP, premiums on callable debt securities generally are amortized to the maturity date. The new guidance is effective for annual reporting periods, and interim reporting periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted for interim or annual periods. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

In May 2017, the FASB issuedASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting . ASU 2017-09 applies to entities that change the terms or conditions of a share-based payment award.  The FASB adopted ASU 2017-09 to provide clarity and reduce diversity in practice as well as cost and complexity when applying the guidance in Topic 718, Compensation—Stock Compensation , to the modification of the terms and conditions of a share-based payment award.

The amendments in ASU 2017-09 include guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718.

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These amendments require the entity to account for the effects of a modification unless all of the following conditions are met:

• The fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or value using an alternative measurement method) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification;

• The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and

• The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified.

The amendments are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period for. The amendments should be applied prospectively to an award modified on or after the adoption date.  The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

In July 2017, the FASB ASU No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480);Derivatives and Hedging (Topic 815 ): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception.  ASU 2017-11 simplifies the accounting for certain financial instruments with down round features, a provision in an equity-linked financial instrument (or embedded feature) that provides a downward adjustment of the current exercise price based on the price of future equity offerings.

The new ASU will require companies to disregard the down round feature when assessing whether the instrument is indexed to its own stock, for purposes of determining liability or equity classification. Companies that provide earnings per share (EPS) data will adjust their basic EPS calculation for the effect of the feature when triggered (i.e., when the exercise price of the related equity-linked financial instrument is adjusted downward because of the down round feature) and will also recognize the effect of the trigger within equity.

The provisions of the new ASU related to down rounds are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities.  The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

3. STOCK COMPENSATION

Stock Options:

On April 30, 2015, shareholders approved the United Community Financial Corp. 2015 Long-Term Incentive Compensation Plan (the 2015 Plan). The purpose of the 2015 Plan is to provide a means through which United Community may attract and retain employees and non-employee directors, to provide incentives that align their interest with those of United Community’s shareholders and promote the success of United Community’s business.  All employees and non-employee directors are eligible to participate in the 2015 Plan.  The 2015 Plan provides for the issuance of up to 1,200,000 shares that are to be used for awards of stock options, stock awards, stock units, stock appreciation rights, annual bonus awards and long-term incentive awards.

On April 26, 2007, shareholders approved the United Community Financial Corp. 2007 Long-Term Incentive Plan (as amended, the 2007 Plan). The purpose of the 2007 Plan was to promote and advance the interests of United Community and its shareholders by enabling United Community to attract, retain and reward directors, directors emeritus, managerial and other key employees of United Community, including Home Savings, by facilitating their purchase of an ownership interest in United Community. The 2007 Plan was terminated on April 30, 2015 upon the adoption of the 2015 Plan, although the 2007 Plan survives with respect to awards issued under the 2007 Plan that remain outstanding and exercisable.  The 2007 Plan provided for the issuance of up to 2,000,000 shares that were to be used for awards of restricted stock, stock options, performance awards, stock appreciation rights (SARs), or other forms of stock-based incentive awards.  Because the 2007 Plan terminated, no additional awards may be made under it.

On July 12, 1999, shareholders approved the United Community Financial Corp. 1999 Long-Term Incentive Plan (as amended, the 1999 Plan). The purpose of the 1999 Plan was the same as the 2007 Plan. The 1999 Plan terminated on May 20, 2009, although the 1999 Plan survives with respect to options issued under the 1999 Plan remain outstanding and exercisable. The 1999 Plan provided for the grant of either incentive or nonqualified stock options. Options were awarded at exercise prices that were not less than the fair

11

market value of the share at the grant date. The maximum number of common shares that could be issued under the 1999 Plan was 3,569,766. Because the 1999 Plan terminated, no additional options may be issued under it.

There were no stock options granted in the three and nine months ended September 30, 2017 and 2016. Any options granted must be exercised within 10 years from the date of grant.  Expenses related to prior stock option grants are included with salaries and employee benefits. The Company recognized $0 and $1,000 in stock option expense for the three and nine months ended September 30, 2017, respectively.  The Company recognized $2,000 and $8,000 in stock option expense for the three and nine months ended September 30, 2016, respectively. The Company does not expect to recognize any stock option expense for the remainder of 2017.

A summary of option activity in the plans is as follows:

	For the nine months ended
	September 30, 2017
				Weighted		Aggregate
				average		intrinsic value
	Shares			exercise price		(in thousands)
Outstanding at beginning of year		371,218		$	2.55
Granted		—			—
Exercised		(80,085	)		2.69
Forfeited and expired		(600	)		2.10
Outstanding at end of period		290,533			2.51	$	2,061
Shares subject to options exercisable at end of period		290,533			2.51	$	2,061

Information related to stock options for the nine months ended September 30, 2017 and 2016 follows:

	September 30, 2017		September 30, 2016
Intrinsic value of options exercised	$	487,000	$	631,000
Cash received from option exercises		216,000		462,000
Tax benefit realized from option exercises		170,523		—
Weighted average fair value of options granted, per share	$	—	$	—

As of September 30, 2017, there were no unvested stock options remaining.

Outstanding stock options at September 30, 2017 have a weighted average remaining life of 2.79 years and may be exercised in the range of $1.20 to $5.89 per share.

Restricted Stock Awards:

The 2007 Plan permitted and the 2015 Plan permits the issuance of restricted stock awards to employees and nonemployee directors. Nonvested shares at September 30, 2017 aggregated 275,438, of which 7,709 are expected to vest during the remainder of 2017, 129,044 in 2018, 106,012 in 2019 and 32,673 in 2020. Expense related to restricted stock awards is charged to salaries and employee benefits and is recognized over the vesting period of the awards based on the fair value of the shares at the grant date. The Company recognized approximately $240,000 and $696,000 in restricted stock award expenses for the three and nine months ended September 30, 2017. The Company recognized approximately $254,000 and $716,000 in restricted stock award expense for the three and nine months ended September 30, 2016.  The Company expects to recognize additional expenses of approximately $203,000 in 2017, $581,000 in 2018, $259,000 in 2019 and $60,000 in 2020.  The total average per share fair value of shares vested during the nine months ended September 30, 2017 was $8.52.

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A summary of changes in the Company’s nonvested restricted shares for the nine months ended September 30, 2017 is as follows:

	For the nine months ended
	September 30, 2017
				Weighted
				average
				grant date
	Shares			fair value
Nonvested at beginning of year		341,184		$	5.50
Granted		75,875		$	8.60
Vested		(141,621	)	$	4.98
Forfeited		—		$	—
Nonvested shares at end of period		275,438		$	6.63

Annual Incentive Plan

The Annual Incentive Plan (AIP) provides incentive compensation awards to certain officers of the Company. Annual incentive awards are generally based upon the actual performance of the Company and individual participant performance for the twelve months ending December 31, compared to the actual performance of a peer group during the same twelve-month period. The target incentive awards for each year are measured as a percentage of the base salary of participating officers.  Once the awards under the AIP are calculated, they are paid in cash and/or restricted stock. The restricted stock vests equally over three years, beginning on the first anniversary of the date the restricted stock is issued.  The Company incurred $100,000and $222,000 in expense for the restricted stock portion of the AIP for the three and nine months ended September 30, 2017, respectively and $431,000 and $1.3 million for the cash portion of the AIP for the three and nine months ended September 30, 2017, respectively.  The Company incurred $96,000 and $265,000 in expense for the restricted stock portion of the AIP for the three and nine months ended September 30, 2016, respectively and $306,000 and $924,000 for the cash portion of the AIP for the three and nine months ended September 30, 2016, respectively.  

Long-term Incentive Plan

The Long-term Incentive Plan (LTIP) provides a long-term incentive compensation opportunity to certain executive officers, whose participation and target award opportunities will be approved by the Compensation Committee of the Board of Directors. Each participant in the LTIP will be granted a target number of Performance Share Units (PSUs).  Target PSUs will be determined as a percentage of base salary and translated into share units based on the Company’s average stock price at the appropriate measurement date.  The performance period for the annual grant for a given year will be from January 1, year 1 through December 31, year 3.   The Company incurred $146,000and $295,000 for the LTIP for the three and nine months ended September 30, 2017, respectively.  The Company incurred $96,000 and $289,000 in expense for the LTIP for the three and nine months ended September 30, 2016, respectively.

4. BUSINESS COMBINATION

On January 31, 2017, United Community completed its acquisition of OLCB pursuant to the terms and conditions of the Agreement and Plan of Merger, dated as of September 8, 2016 by and among United Community, the Bank, OLCB and Premier Bank & Trust (Merger Agreement).  Pursuant to the terms of the Merger Agreement, OLCB was merged with and into United Community. Immediately following the merger, Home Savings was merged with and into Premier Bank & Trust, a subsidiary of OLCB, and changed its name to Home Savings Bank.

As a result of the acquisiton and in accordance with the terms of the Merger Agreement, each preferred share of OLCB was deemed to have been converted into OLCB common shares. Each OLCB common share was converted into the right to receive either $18.00 in cash or 2.736 United Community common shares, subject to certain allocation procedures set forth in the Merger Agreement that ensured that 50% of OLCB’s common shares outstanding were converted into United Community common shares and 50% of OLCB’s common shares outstanding were exchanged for the cash consideration. The Company issued cash in lieu of issuing fractional shares.  

After the allocation procedures were applied, the Company issued 3,033,604 United Community common shares and paid $20.4 million to OLCB shareholders as a result of the acquisition.  Acquisition related costs aggregating $5.0 million were included in United Community’s Consolidated Statements of Operations for the nine months ended September 30, 2017.  The fair value of the common shares issued as part of the consideration paid for OLCB was determined in the basis of the closing price of United Community’s commons shares on the acquisition date.

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The following table summarizes the consideration paid for OLCB.

	(In thousands)
Cash	$	20,379
United Community shares issued		25,816
Total fair value of consideration paid	$	46,195

At the acquisition date, United Community added the following to the Company’s consolidated statements of financial position:

	(In thousands)
Cash	$	46,159
Loans		259,373
Available for sale securities		9,996
FHLB stock, at cost		1,256
Premises and equipment		2,940
Accrued interest		679
Other intangible assets		2,426
Other real estate owned		89
Other assets		7,988
Total assets acquired	$	330,906
Deposits assumed	$	266,279
Federal Home Loan Bank advances		23,500
Repurchase agreements and other borrowings		10,771
Accrued expenses and other liabilities		2,581
Total liabilities assumed	$	303,131
Goodwill created	$	18,420

The fair value of net assets acquired included fair value adjustments to certain receivables that were not considered impaired as of the acquisition date.  The fair value adjustments were determined using discounted contractual cash flows.  However, the Company believes that all contractual cash flows related to these financial instruments will be collected.  As such, these receivables were not considered impaired at the acquisition date and were not subject to the guidance relating to purchased credit impaired loans, which have shown evidence of credit deterioration since origination.  The Company has purchased loans, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected with a fair value and gross contractual amounts receivable of $2.5 million and $2.6 million, respectively, on the date of acquisition.

Upon adoption of ASU 2016-16, Business Combinations (Topic 805), adjustments to provisional amounts booked in previous years are to be adjusted through current year goodwill with the full effect of changes to depreciation, amortization, or other income recorded in current year earnings as if the change had been completed as of the acquisition date.

The following table presents proforma information as if the OLCB acquisition had occurred at the beginning of 2016.  The proforma information includes adjustments for interest income on loans and securities acquired, amortization of intangibles arising from the transaction, depreciation expense on property acquired, interest expense on deposits acquired, and the related income tax effects.  The proforma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effected on the assumed dates.  Net income includes the recognition of $4.1 million in acquisition related expenses incurred by United Community and $368,000 in acquisition related expenses for OLCB during the nine months ended September 30, 2017.  The impact of the acquired insurance agencies is considered immaterial and not included in the table below.  

	For the Nine Months Ended September 30,
	2017		2016
	(In thousands, except per share data)
Net interest income	$	61,185	$	55,595
Net income		16,928		16,118
Basic earnings per share	$	0.34	$	0.32
Diluted earnings per share	$	0.34	$	0.32

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Goodwill is recorded arising from the acquisition, which consisted largely of synergies and the cost savings resulting from combining the operations of the companies.  No goodwill is expected to be deductible for income tax purposes.

At the time of the closing, Home Savings’ charter changed to a state chartered commercial bank and United Community became a financial holding company.

The acquisition benefits the Company and its shareholders by enabling the Company to further expand into the markets currently served by OLCB and strengthening the competitive position of the combined organization. Furthermore, the Company believes its increased asset size after the acquisition will create additional economies of scale and provide opportunities for asset and earnings growth in an extremely competitive banking environment.  OLCB results of operations were included in the Company’s results beginning January 31, 2017.

The fair value of $2.2 million of intangible assets related to core deposits is subject to change pending receipt of the final valuation.  

On February 28, 2017, HSB Insurance, LLC completed the purchase of an insurance agency engaged in the business of selling insurance including auto, commercial, homeowners and life-health insurance.  Under the purchase agreement, the Company paid $535,000, of which $107,000 was paid in cash at closing and the remaining $428,000 will be paid in four equal installments in connection with this acquisition.  Total assets purchased were $722,000, which includes the customer list intangible and goodwill.

On July 1, 2017, HSB Insurance, LLC completed the purchase of an insurance agency engaged in the business of selling insurance including auto, commercial, homeowners and life-health insurance.  Under the purchase agreement, the Company paid $60,000, of which $23,000 was paid in cash at closing and the remaining $37,000 will be paid in two equal installments in connection with this acquisition.  Total assets purchased were $81,000, which includes the customer list intangible and goodwill

5. SECURITIES

Components of the available for sale portfolio are as follows:

	September 30, 2017
			Gross		Gross
	Amortized		unrealized		unrealized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Available for Sale
U.S. Treasury and government sponsored entities' securities	$	125,153	$	237	$	(330	)	$	125,060
States of the U.S. and political subdivisions		58,959		699		(466	)		59,192
Mortgage-backed GSE securities: residential		90,888		106		(424	)		90,570
Total	$	275,000	$	1,042	$	(1,220	)	$	274,822

	December 31, 2016
			Gross		Gross
	Amortized		unrealized		unrealized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Available for Sale
U.S. Treasury and government sponsored entities' securities	$	188,082	$	172	$	(2,221	)	$	186,033
States of the U.S. and political subdivisions		59,415		3		(1,661	)		57,757
Mortgage-backed GSE securities: residential		100,602		50		(1,158	)		99,494
Total	$	348,099	$	225	$	(5,040	)	$	343,284

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Components of held to maturity securities portfolio are as follows:

	September 30, 2017
			Gross		Gross
	Amortized		unrecognized		unrecognized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Held to maturity
Mortgage-backed GSE securities: residential	$	76,314	$	—	$	(615	)	$	75,699
States of the U.S. and political subdivisions		9,235		94		(4	)		9,325
Total	$	85,549	$	94	$	(619	)	$	85,024

	December 31, 2016
			Gross		Gross
	Amortized		unrecognized		unrecognized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Held to maturity
Mortgage-backed GSE securities: residential	$	85,065	$	—	$	(1,300	)	$	83,765
States of the U.S. and political subdivisions		12,454		17		(86	)		12,385
Total	$	97,519	$	17	$	(1,386	)	$	96,150

Debt securities available for sale by contractual maturity, repricing or expected call date are shown below:

	September 30, 2017
	Amortized cost		Fair value
	(Dollars in thousands)
Due in one year or less	$	—	$	—
Due after one year through five years		14,556		14,570
Due after five years through ten years		111,011		110,912
Due after ten years		58,545		58,770
Mortgage-backed GSE securities: residential		90,888		90,570
Total	$	275,000	$	274,822

Debt securities held to maturity by contractual maturity, repricing or expected call date are shown below:

	September 30, 2017
	Amortized cost		Fair value
	(Dollars in thousands)
Due in one year or less	$	—	$	—
Due after one year through five years		—		—
Due after five years through ten years		7,285		7,357
Due after ten years		1,950		1,968
Mortgage-backed GSE securities: residential		76,314		75,699
Total	$	85,549	$	85,024

Securities pledged for public funds were approximately $133.3 million at September 30, 2017 and approximately $146.5 million at December 31, 2016.  

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Securities available for sale that have been in an unrealized loss position for less than twelve months or twelve months or more at September 30, 2017 are as follows:

	September 30, 2017
	Less than 12 months					12 months or more					Total
	Fair		Unrealized loss			Fair		Unrealized			Fair		Unrealized
	value		Loss			value		Loss			value		Loss
	(Dollars in thousands)
Description of securities:
U.S. Treasury and government sponsored entities	$	59,316	$	(330	)	$	—	$	—		$	59,316	$	(330	)
States of the U.S. and political subdivisions		21,789		(283	)		6,350		(183	)		28,139		(466	)
Mortgage-backed GSE securities: residential		68,648		(424	)		—		—			68,648		(424	)
Total temporarily impaired securities	$	149,753	$	(1,037	)	$	6,350	$	(183	)	$	156,103	$	(1,220	)

Securities available for sale that have been in an unrealized loss position for less than twelve months or twelve months or more at December 31, 2016 are as follows:

	December 31, 2016
	Less than 12 months					12 months or more				Total
	Fair		Unrealized loss			Fair		Unrealized		Fair		Unrealized
	value		Loss			value		Loss		value		Loss
	(Dollars in thousands)
Description of securities:
U.S. Treasury and government sponsored entities	$	171,411	$	(2,221	)	$	—	$	—	$	171,411	$	(2,221	)
States of the U.S. and political subdivisions		53,283		(1,661	)		—		—		53,283		(1,661	)
Mortgage-backed GSE securities: residential		98,775		(1,158	)		—		—		98,775		(1,158	)
Total temporarily impaired securities	$	323,469	$	(5,040	)	$	—	$	—	$	323,469	$	(5,040	)

All of the U.S. treasury and government sponsored entities and mortgage-backed securities available for sale that were temporarily impaired at September 30, 2017 and December 31, 2016, were impaired due to the level of interest rates at the time of purchase compared to current interest rates. Unrealized losses on these securities have not been recognized into income during the nine months ended September 30, 2017 or 2016 because the issuer’s securities are of high credit quality (rated AA or higher), it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. There is risk that longer term rates could rise further resulting in greater unrealized losses.  The Company expects to realize all interest and principal on these securities and has no intent to sell, and more than likely will not be required to sell, these securities before their anticipated recovery.

All of the obligations of U.S. states and political subdivisions held for sale that were temporarily impaired at September 30, 2017 and December 31, 2016, were impaired due to the level of interest rates at the time of purchase compared to current interest rates.  Unrealized losses on these securities have not been recognized into income for the nine months ended September 30, 2017 or 2016 because the issuer’s securities are of high credit quality (rated AA or higher), it is likely that management will not be required to sell, and has no intent to sell, the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions.

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Securities held to maturity that have been in an unrecognized loss position for less than twelve months or twelve months or more are as follows:

	September 30, 2017
	Less than 12 months					12 months or more					Total
	Fair		Unrealized loss			Fair		Unrealized			Fair		Unrealized
	value		Loss			value		Loss			value		Loss
	(Dollars in thousands)
Description of securities:
Mortgage-backed GSE securities: residential	$	48,309	$	(668	)	$	27,390	$	(1,027	)	$	75,699	$	(1,695	)
States of the U.S. and political subdivisions		1,543		(4	)		—		—			1,543		(4	)
Total temporarily impaired securities	$	49,852	$	(672	)	$	27,390	$	(1,027	)	$	77,242	$	(1,699	)
	December 31, 2016
	Less than 12 months					12 months or more					Total
	Fair		Unrealized loss			Fair		Unrealized			Fair		Unrealized
	value		Loss			value		Loss			value		Loss
	(Dollars in thousands)
Description of securities:
Mortgage-backed GSE securities: residential	$	57,340	$	(1,243	)	$	26,426	$	(1,287	)	$	83,766	$	(2,530	)
States of the U.S. and political subdivisions		7,416		(86	)		—		—			7,416		(86	)
Total temporarily impaired securities	$	64,756	$	(1,329	)	$	26,426	$	(1,287	)	$	91,182	$	(2,616	)

During the third quarter of 2015, Home Savings transferred securities with a total amortized cost of $105.3 million with a corresponding fair value of $103.8 million from available for sale to held to maturity.  The net unrealizable loss, net of taxes, on these securities at the date of transfer was $999,000.  The fair value at the date of transfer becomes the securities’ new cost basis.  The unrealized holding loss at the time of transfer continues to be reported in accumulated other comprehensive income, net of tax and is amortized over the remaining lives of the securities as an adjustment of the yield.  The amortization of the unamortized holding loss reported in accumulated other comprehensive income will directly offset the effect on interest income from the accretion of the reduced amortized cost for the transferred securities.  Because of this transfer, the total losses less than 12 months and greater than 12 months reported in the table above will not agree to the unrealized losses reported in the inventory of held to maturity securities.  The inventory table reports unrealized gains and losses based upon the transferred securities adjusted cost basis and current fair value.  The reporting of losses less than 12 months and greater than 12 months represents that actual period of time that these securities have been in an unrealized loss position and the securities amortized cost basis as if the transfer did not occur.

All of the mortgage-backed securities held to maturity that were temporarily impaired at September 30, 2017 and December 31, 2016, were impaired due to the level of interest rates at the time of purchase compared to current interest rates. Unrealized losses on these securities have not been recognized into income for the nine months ended September 30, 2017 or 2016 because the issuer’s securities are of high credit quality (rated AA or higher), it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. There is risk that longer term rates could rise further resulting in greater unrealized losses.  The Company expects to realize all interest and principal on these securities and has no intent to sell and more than likely will not be required to sell these securities before their anticipated recovery.

All of the obligations of U.S. states and political subdivisions held to maturity that were temporarily impaired at September 30, 2017, and December 31, 2016, were impaired due to the level of interest rates at the time of purchase compared to current interest rates.  Unrealized losses on these securities have not been recognized into income for the nine months ended September 30, 2017 or 2016 because the issuer’s securities are of high credit quality (rated AA or higher), it is likely that management will not be required to sell and has no intent to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions.

Proceeds from the sale of available for sale securities were $9.7 million and $5.2 million, for the three months ended September 30, 2017 and 2016, respectively.  Gross gains of $236,000 and $218,000 were realized on these sales during the three months ended September 30, 2017 and 2016, respectively.  No gross losses were realized on these sales during the three months ended September 30, 2017 or 2016.  Income tax expense related to net realized gains and losses was $83,000 and $76,000 for the three months ended September 30, 2017 and 2016, respectively.

18

Proceeds from the sale of available for sale securities were $62.9 million and $33.7 million, for the nine months ended September 30, 2017 and 2016, respectively.  Gross gains of $610,000 and $609,000 were realized on these sales during the nine months ended September 30, 2017 and 2016, respectively.  Gross losses of $44,000 and $0 were realized on these sales during the nine months ended September 30, 2017 and 2016, respectively.  Income tax expense related to net realized gains and losses was $198,000 and $211,000 for the nine months ended September 30, 2017 and 2016, respectively.

6. LOANS

Portfolio loans consist of the following:

	September 30,			December 31,
	2017			2016
	(Dollars in thousands)
Commercial loans
Multifamily	$	126,977		$	93,597
Nonresidential		366,747			231,401
Land		13,666			8,373
Construction		108,105			68,158
Secured		167,433			95,343
Unsecured		8,148			7,386
Total commercial loans		791,076			504,258
Residential mortgage loans
One-to four-family		851,863			762,926
Construction		57,081			35,695
Total residential mortgage loans		908,944			798,621
Consumer loans
Home equity		193,402			165,054
Auto		56,883			39,609
Marine		1,564			1,796
Recreational vehicle		6,249			7,602
Other		5,594			2,537
Total consumer loans		263,692			216,598
Total loans		1,963,712			1,519,477
Less:
Allowance for loan losses		20,555			19,087
Deferred loan costs, net		(4,538	)		(3,187	)
Total		16,017			15,900
Loans, net	$	1,947,695		$	1,503,577

19

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and are based on impairment method as of September 30, 2017 and December 31, 2016 and activity for the three and nine months ended September 30, 2017 and 2016.

Allowance For Loan Losses

	Commercial Loans			Residential Loans			Consumer Loans			Total
	(Dollars in thousands)
For the three months ended September 30, 2017
Beginning balance	$	10,821		$	5,968		$	2,871		$	19,660
Provision (recovery)		512			369			(160	)		721
Charge-offs		(12	)		(427	)		(147	)		(586	)
Recoveries		361			136			263			760
Ending balance	$	11,682		$	6,046		$	2,827		$	20,555
For the nine months ended September 30, 2017
Beginning balance	$	10,824		$	5,538		$	2,725		$	19,087
Provision		1,537			1,234			267			3,038
Charge-offs		(1,335	)		(930	)		(626	)		(2,891	)
Recoveries		656			204			461			1,321
Ending balance	$	11,682		$	6,046		$	2,827		$	20,555
As of September 30, 2017
Period-end amount allocated to:
Loans individually evaluated for impairment	$	16		$	1,169		$	411			1,596
Loans collectively evaluated for impairment		11,612			4,877			2,416			18,905
Loans acquired with deteriorated credit quality		54			—			—			54
Ending balance	$	11,682		$	6,046		$	2,827		$	20,555
Period-end balances:
Loans individually evaluated for impairment		2,322			16,718			7,314			26,354
Loans collectively evaluated for impairment		787,550			892,226			256,378			1,936,154
Loans acquired with deteriorated credit quality		1,204			—			—			1,204
Ending balance	$	791,076		$	908,944		$	263,692		$	1,963,712

20

Allowance For Loan Losses

	Commercial Loans			Residential Loans			Consumer Loans			Total
For the three months ended September 30, 2016
Beginning balance	$	8,958		$	5,644		$	2,570		$	17,172
Provision		842			268			234			1,344
Charge-offs		(533	)		(166	)		(222	)		(921	)
Recoveries		527			20			92			639
Ending balance	$	9,794		$	5,766		$	2,674		$	18,234
For the nine months ended September 30, 2016
Beginning balance	$	8,077		$	6,630		$	3,005		$	17,712
Provision (recovery)		4,055			(359	)		198			3,894
Charge-offs		(3,026	)		(612	)		(977	)		(4,615	)
Recoveries		688			107			448			1,243
Ending balance	$	9,794		$	5,766		$	2,674		$	18,234
As of December 31, 2016
Period-end amount allocated to:
Loans individually evaluated for impairment	$	1,271		$	1,245		$	500		$	3,016
Loans collectively evaluated for impairment		9,553			4,293			2,225			16,071
Ending balance	$	10,824		$	5,538		$	2,725		$	19,087
Period-end balances:
Loans individually evaluated for impairment	$	6,018		$	17,485		$	8,045		$	31,548
Loans collectively evaluated for impairment		498,240			781,136			208,553			1,487,929
Ending balance	$	504,258		$	798,621		$	216,598		$	1,519,477

The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required based on an analysis using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations, estimated collateral values, general economic conditions in the market area and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off.

Other loans not reviewed specifically by management are evaluated as a homogenous group of loans (generally single-family residential mortgage loans and all consumer credits except marine loans) using a loss factor applied to the outstanding loan balance to determine the level of reserve required. This loss factor consists of two components, a quantitative and a qualitative component. The quantitative component is based on a historical analysis of all charged-off loans, net of recoveries. In determining the qualitative factors, consideration is given to such attributes as lending policies, economic conditions, nature and volume of the portfolio, management, loan quality trend, loan review, collateral value, concentrations, economic cycles and other external factors.  As of September 30, 2017, the Company evaluated 21 quarters of net charge-off history and applied this information to the current period.  This component is combined with the qualitative component to arrive at the loss factor, which is applied to the outstanding balance of homogenous loans.

21

The following table presents loans individually evaluated for impairment by class of loans as of and for nine months ended September 30, 2017:

Impaired Loans

(Dollars in thousands)

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	466	$	402	$	—	$	309	$	3	$	3
Nonresidential		673		153		—		818		6		6
Land		715		9		—		15		—		—
Construction		2,467		—		—		—		—		—
Secured		263		210		—		195		1		1
Unsecured		194		—		—		—		—		—
Total commercial loans		4,778		774		—		1,337		10		10
Residential mortgage loans
One-to four-family		6,793		5,814		—		6,025		81		73
Construction		—		—		—		—		—		—
Total residential mortgage loans		6,793		5,814		—		6,025		81		73
Consumer loans
Home equity		1,556		1,177		—		1,477		11		11
Auto		8		1		—		9		—		—
Marine		540		169		—		200		—		—
Recreational vehicle		809		389		—		220		12		12
Other		1		1		—		—		—		—
Total consumer loans		2,914		1,737		—		1,906		23		23
Total	$	14,485	$	8,325	$	—	$	9,268	$	114	$	106
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—	$	—	$	—	$	—
Nonresidential		1,582		1,548		16		2,010		86		85
Land		—		—		—		—		—		—
Construction		—		—		—		—		—		—
Secured		—		—		—		43		—		—
Unsecured		—		—		—		—		—		—
Total commercial loans		1,582		1,548		16		2,053		86		85
Residential mortgage loans
One-to four-family		11,042		10,904		1,169		10,799		385		343
Construction		—		—		—		—		—		—
Total residential mortgage loans		11,042		10,904		1,169		10,799		385		343
Consumer loans
Home equity		5,132		5,055		387		5,173		214		199
Auto		—		—		—		—		—		—
Marine		102		102		1		105		4		4
Recreational vehicle		432		420		23		616		14		14
Other		—		—		—		—		—		—
Total consumer loans		5,666		5,577		411		5,894		232		217
Total		18,290		18,029		1,596		18,746		703		645
Total impaired loans	$	32,775	$	26,354	$	1,596	$	28,014	$	817	$	751

22

The following table presents loans individually evaluated for impairment by class of loans as of and for nine months ended September 30, 2016:

Impaired Loans

(Dollars in thousands)

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	59	$	—	$	—	$	—	$	—	$	—
Nonresidential		952		149		—		248		4		4
Land		3,922		134		—		322		—		—
Construction		3,594		—		—		—		—		—
Secured		3,743		3,700		—		3,700		—		—
Unsecured		821		—		—		—		7		7
Total commercial loans		13,091		3,983		—		4,270		11		11
Residential mortgage loans
One-to four-family		7,401		5,727		—		6,049		55		49
Construction		—		—		—		—		—		—
Total residential mortgage loans		7,401		5,727		—		6,049		55		49
Consumer loans
Home equity		1,728		1,272		—		1,415		14		14
Auto		13		8		—		10		—		—
Marine		543		301		—		294		—		—
Recreational vehicle		637		322		—		241		4		4
Other		—		—		—		3		—		—
Total consumer loans		2,921		1,903		—		1,963		18		18
Total	$	23,413	$	11,613	$	—	$	12,282	$	84	$	78
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—	$	—	$	—	$	—
Nonresidential		11,660		9,164		935		7,911		208		206
Land		—		—		—		—		—		—
Construction		—		—		—		—		—		—
Secured		616		550		81		692		—		—
Unsecured		—		—		—		—		—		—
Total commercial loans		12,276		9,714		1,016		8,603		208		206
Residential mortgage loans
One-to four-family		12,123		12,121		1,342		12,587		423		373
Construction		—		—		—		—		—		—
Total residential mortgage loans		12,123		12,121		1,342		12,587		423		373
Consumer loans
Home equity		5,997		5,997		435		6,592		257		238
Auto		—		—		—		—		—		—
Marine		153		153		4		158		6		4
Recreational vehicle		655		655		77		815		20		19
Other		—		—		—		2		—		—
Total consumer loans		6,805		6,805		516		7,567		283		261
Total		31,204		28,640		2,874		28,757		914		840
Total impaired loans	$	54,617	$	40,253	$	2,874	$	41,039	$	998	$	918

23

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2016:

Impaired Loans

(Dollars in thousands)

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With no specific allowance recorded
Commercial loans
Multifamily	$	55	$	—	$	—
Nonresidential		2,278		1,489		—
Land		3,922		34		—
Construction		3,594		—		—
Secured		242		190		—
Unsecured		713		—		—
Total commercial loans		10,804		1,713		—
Residential mortgage loans
One-to four-family		8,736		6,758		—
Construction		—		—		—
Total residential mortgage loans		8,736		6,758		—
Consumer loans
Home equity		2,159		1,583		—
Auto		11		3		—
Marine		585		267		—
Recreational vehicle		433		120		—
Other		—		—		—
Total consumer loans		3,188		1,973		—
Total	$	22,728	$	10,444	$	—
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		6,930		4,133		1,193
Land		—		—		—
Construction		—		—		—
Secured		237		172		78
Unsecured		—		—		—
Total commercial loans		7,167		4,305		1,271
Residential mortgage loans
One-to four-family		10,810		10,727		1,245
Construction		—		—		—
Total residential mortgage loans		10,810		10,727		1,245
Consumer loans
Home equity		5,390		5,335		426
Auto		—		—		—
Marine		108		108		1
Recreational vehicle		639		629		73
Other		—		—		—
Total consumer loans		6,137		6,072		500
Total		24,114		21,104		3,016
Total impaired loans	$	46,842	$	31,548	$	3,016

The unpaid principal balance is the total amount of the loan that is due to Home Savings. The recorded investment includes the unpaid principal balance less any charge-offs or partial charge-offs applied to specific loans. The unpaid principal balance and the recorded investment both exclude accrued interest receivable and deferred loan costs, both of which are immaterial.

24

The following table presents loans individually evaluated for impairment by class of loans as of and for the three months ended September 30, 2017:

	Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	408	$	—	$	—
Nonresidential		809		3		3
Land		9		—		—
Construction		—		—		—
Secured		200		1		1
Unsecured		—		—		—
Total commercial loans		1,426		4		4
Residential mortgage loans
One-to four-family		5,788		35		33
Construction		—		—		—
Total residential mortgage loans		5,788		35		33
Consumer loans
Home equity		1,356		4		4
Auto		10		—		—
Marine		169		—		—
Recreational vehicle		271		3		3
Other		1		—		—
Total consumer loans		1,807		7		7
Total	$	9,021	$	46	$	44
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		1,002		26		26
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		1,002		26		26
Residential mortgage loans
One-to four-family		10,666		112		112
Construction		—		—		—
Total residential mortgage loans		10,666		112		112
Consumer loans
Home equity		4,987		65		65
Auto		—		—		—
Marine		103		1		1
Recreational vehicle		556		5		5
Other		—		—		—
Total consumer loans		5,646		71		71
Total		17,314		209		209
Total impaired loans	$	26,335	$	255	$	253

25

The following table presents loans individually evaluated for impairment by class of loans as of and for the three months ended September 30, 2016:

	Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		238		1		1
Land		259		—
Construction		—		—		—
Secured		3,700		—		—
Unsecured		—		—		—
Total commercial loans		4,197		1		1
Residential mortgage loans
One-to four-family		6,125		19		19
Construction		—		—		—
Total residential mortgage loans		6,125		19		19
Consumer loans
Home equity		1,306		9		9
Auto		9		—		—
Marine		302		—		—
Recreational vehicle		298		1		1
Other		2		—		—
Total consumer loans		1,917		10		10
Total	$	12,239	$	30	$	30
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		8,868		84		84
Land		—		—		—
Construction		—		—		—
Secured		742		—		—
Unsecured		—		—		—
Total commercial loans		9,610		84		84
Residential mortgage loans
One-to four-family		12,077		132		127
Construction		—		—		—
Total residential mortgage loans		12,077		132		127
Consumer loans
Home equity		6,138		77		76
Auto		—		—		—
Marine		155		2		2
Recreational vehicle		724		6		6
Other		—		—		—
Total consumer loans		7,017		85		84
Total		28,704		301		295
Total impaired loans	$	40,943	$	331	$	325

26

Home Savings reclassifies a collateralized mortgage loan and a consumer loan secured by real estate to real estate owned and other repossessed assets once it has either obtained legal title to the real estate collateral or the borrower voluntarily conveys all interest in the real property to the Bank to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement.  The table below presents loans that are in the process of foreclosure at September 30, 2017 and December 31, 2016, but legal title, deed in lieu of foreclosure or similar legal agreement to the property has not yet been obtained:

	September 30, 2017				December 31, 2016
	Unpaid Principal Balance		Recorded Investment		Unpaid Principal Balance		Recorded Investment
	(Dollars in thousands)				(Dollars in thousands)
Mortgage loans in process of foreclosure	$	2,975	$	2,805	$	3,025	$	2,576
Consumer loans in process of foreclosure		955		798		1,069		795

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans as of September 30, 2017:

Nonaccrual Loans and Loans Past Due Over 90 Days and Still Accruing

As of September 30, 2017

	Nonaccrual		Loans past due over 90 days and still accruing
	(Dollars in thousands)
Commercial loans
Multifamily	$	402	$	—
Nonresidential		1,234		—
Land		9		—
Construction		—		—
Secured		234		—
Unsecured		—		—
Total commercial loans		1,879		—
Residential mortgage loans
One-to four-family		6,627		—
Construction		—		—
Total residential mortgage loans		6,627		—
Consumer Loans
Home equity		1,714		—
Auto		38		—
Marine		169		—
Recreational vehicle		409		6
Other		2		2
Total consumer loans		2,332		8
Total nonaccrual loans and loans past due over 90 days and still accruing	$	10,838	$	8

27

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans as of December 31, 2016:

Nonaccrual Loans and Loans Past Due Over 90 Days and Still Accruing

As of December 31, 2016

	Nonaccrual		Loans past due over 90 days and still accruing
	(Dollars in thousands)
Commercial loans
Multifamily	$	—	$	—
Nonresidential		3,546		—
Land		34		—
Construction		—		—
Secured		361		—
Unsecured		—		—
Total commercial loans		3,941		—
Residential mortgage loans
One-to four-family		6,084		—
Construction		—		—
Total residential mortgage loans		6,084		—
Consumer Loans
Home equity		1,936		—
Auto		31		—
Marine		267		—
Recreational vehicle		178		—
Other		2		—
Total consumer loans		2,414		—
Total nonaccrual loans and loans past due over 90 days and still accruing	$	12,439	$	—

28

The following table presents an age analysis of past-due loans, segregated by class of loans as of September 30, 2017:

Past Due Loans

(Dollars in thousands)

	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current Loans		Total Loans
Commercial loans
Multifamily	$	—			$	402	$	402	$	126,575	$	126,977
Nonresidential		206		1,204		7		1,417		365,330		366,747
Land		—		—		9		9		13,657		13,666
Construction		—		—		—		—		108,105		108,105
Secured		157		16		212		385		167,048		167,433
Unsecured		—		—		—		—		8,148		8,148
Total commercial loans		363		1,220		630		2,213		788,863		791,076
Residential mortgage loans
One-to four-family		3,588		1,305		5,066		9,959		841,904		851,863
Construction		—		—		—		—		57,081		57,081
Total residential mortgage loans		3,588		1,305		5,066		9,959		898,985		908,944
Consumer Loans:
Home equity		1,026		192		1,467		2,685		190,717		193,402
Automobile		137		76		17		230		56,653		56,883
Marine		13		—		169		182		1,382		1,564
Recreational vehicle		357		164		298		819		5,430		6,249
Other		2		13		3		18		5,576		5,594
Total consumer loans		1,535		445		1,954		3,934		259,758		263,692
Total loans	$	5,486	$	2,970	$	7,650	$	16,106	$	1,947,606	$	1,963,712

29

The following table presents an age analysis of past-due loans, segregated by class of loans as of December 31, 2016:

Past Due Loans

(Dollars in thousands)

	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current Loans		Total Loans
Commercial loans
Multifamily	$	—	$	—	$	—	$	—	$	93,597	$	93,597
Nonresidential		3,511		—		61		3,572		227,829		231,401
Land		—		—		34		34		8,339		8,373
Construction		—		—		—		—		68,158		68,158
Secured		—		—		361		361		94,982		95,343
Unsecured		—		—		—		—		7,386		7,386
Total commercial loans		3,511		—		456		3,967		500,291		504,258
Residential mortgage loans
One-to four-family		3,774		1,717		5,461		10,952		751,974		762,926
Construction		—		—		—		—		35,695		35,695
Total residential mortgage loans		3,774		1,717		5,461		10,952		787,669		798,621
Consumer Loans:
Home equity		941		458		1,669		3,068		161,986		165,054
Automobile		130		—		3		133		39,476		39,609
Marine		—		—		267		267		1,529		1,796
Recreational vehicle		131		347		—		478		7,124		7,602
Other		1		3		2		6		2,531		2,537
Total consumer loans		1,203		808		1,941		3,952		212,646		216,598
Total loans	$	8,488	$	2,525	$	7,858	$	18,871	$	1,500,606	$	1,519,477

As of September 30, 2017 and December 31, 2016, the Company has a recorded investment in troubled debt restructurings of $21.3 million and $26.6 million, respectively.  The Company allocated $1.6 million of specific allowance for those loans at September 30, 2017 and $3.0 million at December 31, 2016.  The Company has committed to lend additional amounts totaling up to $37,000 and $31,000 at September 30, 2017 and December 31, 2016, respectively.  

30

The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ended September 30, 2017:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(In thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		—		—		—
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		—		—		—
Residential mortgage loans
One-to four-family		1		147		169
Construction		—		—		—
Total residential mortgage loans		1		147		169
Consumer loans
Home equity		—		—		—
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		—		—		—
Total restructured loans		1	$	147	$	169

The troubled debt restructurings described above had no effect on the allowance for loan losses and resulted in no charge-offs during the three months ended September 30, 2017.

31

The following table presents loans by class modified as troubled debt restructurings that occurred during the nine months ended September 30, 2017:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(In thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		—		—		—
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		—		—		—
Residential mortgage loans
One-to four-family		2		222		253
Construction		—		—		—
Total residential mortgage loans		2		222		253
Consumer loans
Home equity		—		—		—
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		1		115		115
Other		—		—		—
Total consumer loans		1		115		115
Total restructured loans		3	$	337	$	368

The troubled debt restructurings described above increased the allowance for loan losses by $6,000 and resulted in no charge-offs during the nine months ended September 30, 2017.

32

The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ended September 30, 2016:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		1		1,371		1,377
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		1		1,371		1,377
Residential mortgage loans
One-to four-family		1		113		114
Construction		—		—		—
Total residential mortgage loans		1		113		114
Consumer loans
Home equity		—		—		—
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		—		—		—
Total restructured loans		2	$	1,484	$	1,491

The troubled debt restructurings described above increased the allowance for loan losses by $20,000, and resulted in no charge-offs during the three months ended September 30, 2016.

33

The following table presents loans by class modified as troubled debt restructurings that occurred during the nine months ended September 30, 2016:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		3		5,459		5,465
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		3		5,459		5,465
Residential mortgage loans
One-to four-family		4		429		449
Construction		—		—		—
Total residential mortgage loans		4		429		449
Consumer loans
Home equity		3		130		134
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		3		130		134
Total restructured loans		10	$	6,018	$	6,048

The troubled debt restructurings described above increased the allowance for loan losses by $31,000 and resulted in no charge-offs during the nine months ended September 30, 2017.

34

The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within a twelve-month cycle following the modification during the period ended September 30, 2017.

	Number of loans		Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—
Nonresidential		—		—
Land		—		—
Construction		—		—
Secured		—		—
Unsecured		—		—
Total commercial loans		—		—
Residential mortgage loans
One-to four-family		1		162
Construction		—		—
Total residential mortgage loans		1		162
Consumer loans
Home equity		1		47
Auto		—		—
Marine		—		—
Recreational vehicle		—		—
Other		—		—
Total consumer loans		1		47
Total restructured loans		2	$	209

The troubled debt restructurings that subsequently defaulted described above resulted in no charge-offs during the three and nine months ended September 30, 2017, and had no effect on the provision for loan losses.

The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within a twelve month cycle following the modification during the period ended September 30, 2016:

	Number of loans		Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—
Nonresidential		—		—
Land		—		—
Construction		—		—
Secured		—		—
Unsecured		—		—
Total commercial loans		—		—
Residential mortgage loans
One-to four-family		1		4
Construction		—		—
Total residential mortgage loans		1		4
Consumer loans
Home equity		—		—
Auto		—		—
Marine		—		—
Recreational vehicle		—		—
Other		—		—
Total consumer loans		—		—
Total restructured loans		1	$	4

35

The troubled debt restructurings that subsequently defaulted described above resulted in no of charge-offs during the three and nine months ended September 30, 2016, and had no effect on the provision for loan losses.

A troubled debt restructuring is considered to be in payment default once it is 30 days contractually past due under the modified terms.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed in accordance with the Company’s internal underwriting policy.

Credit Quality Indicators:

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, public information and current economic trends. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes homogeneous loans past due 90 cumulative days, and all non-homogeneous loans, including commercial loans and commercial real estate loans. Smaller balance homogeneous loans are primarily monitored by payment status.

Asset quality ratings are divided into two groups: Pass (unclassified) and Classified. Within the unclassified group, certain loans that display potential weakness are risk rated as special mention. In addition, there are three classified risk ratings: substandard, doubtful and loss. These specific credit risk categories are defined as follows:

Special Mention. Loans classified as special mention have potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

Loss. Loans classified as loss are considered uncollectible and of such little value, that continuance as assets is not warranted. Although there may be a chance of recovery on these assets, it is not practical or desirable to defer writing off the asset.

The Company monitors loans on a monthly basis to determine if they should be included in one of the categories listed above. All impaired non-homogeneous credits classified as substandard, doubtful or loss are analyzed on an individual basis for a specific reserve requirement. This analysis is performed on each individual credit at least annually or more frequently if warranted.

36

As of September 30, 2017 and December 31, 2016, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Loans

September 30, 2017

(Dollars in thousands)

	Unclassified				Classified
	Unclassified		Special Mention		Substandard		Doubtful		Loss		Total Classified		Total Loans
Commercial Loans
Multifamily	$	124,441	$	1,975	$	561	$	—	$	—	$	561	$	126,977
Nonresidential		355,846		3,171		7,730		—		—		7,730		366,747
Land		13,657		—		9		—		—		9		13,666
Construction		107,702		403		—		—		—		—		108,105
Secured		137,977		1,421		28,035		—		—		28,035		167,433
Unsecured		8,054		—		94		—		—		94		8,148
Total commercial loans		747,677		6,970		36,429		—		—		36,429		791,076
Residential mortgage loans
One-to four-family		842,928		769		8,166		—		—		8,166		851,863
Construction		57,081		—		—		—		—		—		57,081
Total residential mortgage loans		900,009		769		8,166		—		—		8,166		908,944
Consumer Loans
Home equity		191,689		—		1,713		—		—		1,713		193,402
Auto		56,845		—		38		—		—		38		56,883
Marine		1,395		—		169		—		—		169		1,564
Recreational vehicle		5,840		—		409		—		—		409		6,249
Other		5,592		—		2		—		—		2		5,594
Total consumer loans		261,361		—		2,331		—		—		2,331		263,692
Total loans	$	1,909,047	$	7,739	$	46,926	$	—	$	—	$	46,926	$	1,963,712

37

Loans

December 31, 2016

(Dollars in thousands)

	Unclassified				Classified
	Unclassified		Special Mention		Substandard		Doubtful		Loss		Total Classified		Total Loans
Commercial Loans
Multifamily	$	89,468	$	3,564	$	565	$	—	$	—	$	565	$	93,597
Nonresidential		217,204		6,037		8,160		—		—		8,160		231,401
Land		8,339		—		34		—		—		34		8,373
Construction		68,158		—		—		—		—		—		68,158
Secured		89,756		3,420		2,167		—		—		2,167		95,343
Unsecured		7,291		—		95		—		—		95		7,386
Total commercial loans		480,216		13,021		11,021		—		—		11,021		504,258
Residential mortgage loans
One-to four-family		754,996		104		7,826		—		—		7,826		762,926
Construction		35,695		—		—		—		—		—		35,695
Total residential mortgage loans		790,691		104		7,826		—		—		7,826		798,621
Consumer Loans
Home equity		163,101		—		1,953		—		—		1,953		165,054
Auto		39,577		1		31		—		—		31		39,609
Marine		1,530		—		266		—		—		266		1,796
Recreational vehicle		7,424		—		178		—		—		178		7,602
Other		2,535		—		2		—		—		2		2,537
Total consumer loans		214,167		1		2,430		—		—		2,430		216,598
Total loans	$	1,485,074	$	13,126	$	21,277	$	—	$	—	$	21,277	$	1,519,477

Purchased Credit Impaired Loans:

The Company has purchased loans, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected.  The carrying amount of those loans is as follows:

	September 30, 2017
	(Dollars in thousands)
Commercial loans	$	1,204
Residential mortgage loans		—
Consumer loans		—
Outstanding balance	$	1,204
Carrying amount, net of allowance of $54,000	$	1,150

Accretable yield, or income expected to be collected, is as follows:

	Three Months Ended		Nine Months Ended
	September 30, 2017		September 30, 2017
			(Dollars in thousands)
Beginning of period	$	116	$	—
New loans purchased		—		158
Accretion of income		12		54
Balance at September 30	$	104	$	104

For the purchased credit impaired loans disclosed above, there was an increase of $54,000 in the allowance for loan losses for the three and nine months ended September 30, 2017.  

38

Purchased credit impaired loans acquired during the nine months ended September 30, 2017 for which it was probable at acquisition that all contractually required payments would not be collected are as follows:

	September 30, 2017
	(Dollars in thousands)
Contractually required payments receivable of   loans purchased during the year:
Commercial loans	$	4,499
Residential mortgage loans		—
Consumer loans		—
	$	4,499
Cash flow expected to be collected at acquisition	$	1,955
Fair value of acquired loans at acquisition		1,797

Income is not recognized on purchased credit impaired loans if the Company cannot reasonably estimate cash flows expected to be collected.  The carrying amounts of such loans are as follows:

	September 30, 2017
	(Dollars in thousands)
Loans at beginning of year	$	—
Loans purchased during the year		1,797
Loans at end of period		1,204

7. MORTGAGE BANKING ACTIVITIES

Mortgage loans serviced for others, which are not reported in United Community’s assets, totaled $1.2 billion as of September 30, 2017 and $1.2 billion as of December 31, 2016. Mortgage banking income is comprised of gains recognized on the sale of loans and changes in fair value of mortgage banking derivatives.

The principal balances of mortgage loans serviced for others are as follows:

	September 30, 2017		December 31, 2016
	(Dollars in thousands)
Mortgage loan portfolios serviced for:
FHLMC	$	979,546	$	956,278
FNMA		235,246		208,114
Private investor		26,350		—

During the second quarter of 2017, the Company sold $27.9 million of adjustable rate 1-4 family mortgages to a private investor in a bulk mortgage loan sale.  The Company recognized 45 basis points of mortgage service release premium as part of the gain recognized on this sale.   Customer escrow balances with loans serviced for FHLMC, FNMA and the private investor totaled $9.2 million and $14.3 million at September 30, 2017 and December 31, 2016, respectively.

Activity for capitalized mortgage servicing rights, included in other assets, was as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
	(Dollars in thousands)
Balance, beginning of period	$	6,161		$	5,813		$	6,070		$	5,686
Originations		793			708			1,819			1,870
Amortized to expense		(491	)		(525	)		(1,426	)		(1,560	)
Balance, end of period		6,463			5,996			6,463			5,996
Less valuation allowance		(15	)		(741	)		(15	)		(741	)
Net balance	$	6,448		$	5,255		$	6,448		$	5,255

39

Activity in the valuation allowance for mortgage servicing rights was as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
	(Dollars in thousands)
Balance, beginning of period	$	(5	)	$	(766	)	$	—		$	(39	)
Impairment charges		(10	)		—			(15	)		(727	)
Recoveries		—			25			—			25
Balance, end of period	$	(15	)	$	(741	)	$	(15	)	$	(741	)

The fair value of mortgage servicing rights as of September 30, 2017, was approximately $10.5 million and at December 31, 2016, the fair value was approximately $10.2 million.

Key economic assumptions in measuring the value of mortgage servicing rights at September 30, 2017, and December 31, 2016, were as follows:

	September 30, 2017		December 31, 2016
Weighted average prepayment rate	187 PSA		165 PSA
Weighted average life (in years)	6.22		6.64
Weighted average discount rate		9.00%		9.00%

8. OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS

Real estate owned and other repossessed assets at September 30, 2017 and December 31, 2016 were as follows:

	September 30, 2017			December 31, 2016
	(Dollars in thousands)
Real estate owned and other repossessed assets	$	1,566		$	2,789
Valuation allowance		(423	)		(1,012	)
End of period	$	1,143		$	1,777

Activity in the valuation allowance was as follows:

	Three Months Ended					Nine Months Ended
	September 30, 2017			September 30, 2016		September 30, 2017			September 30, 2016
	(Dollars in thousands)
Beginning of period	$	389		$	1,001	$	1,012		$	1,229
Amounts  charged to (recovery of) expense		53			1		15			(25	)
Reductions due to sales		(19	)		1		(604	)		(201	)
End of period	$	423		$	1,003	$	423		$	1,003

Expenses related to foreclosed and repossessed assets include:

	Three Months Ended					Nine Months Ended
	September 30, 2017		September 30, 2016			September 30, 2017		September 30, 2016
	(Dollars in thousands)
Net loss (gains) on sales	$	20	$	(1	)	$	128	$	101
Provision for unrealized (gains) losses , net		53		1			15		(25	)
Operating expenses, net of rental income		33		41			118		190
Total expenses	$	106	$	41		$	261	$	266

40

9. FAIR VALUE MEASUREMENT

Fair value is the exchange price that would be received for an asset if paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own beliefs about the assumptions that market participants would use in pricing an asset or liability.

United Community uses the following methods and significant assumptions to estimate the fair value of each type of financial instrument:

Available for sale securities: The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing.  Matrix pricing is a mathematical technique commonly used to price debt securities that are not actively traded, values debt securities without relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

Impaired loans: At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value generally receive specific allocations of the allowance for loan losses. For collateral dependent loans, fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Other real estate owned: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Real estate owned properties are individually evaluated at least annually for additional impairment and adjusted accordingly.

Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by Home Savings. Once received, a member of the Special Assets Department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with the independent data sources such as recent market data or industry-wide statistics. In addition to the Special Assets Department review, a third party independent review is also performed.  On an annual basis, Home Savings compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustment should be made to the appraisal value to arrive at fair value. At the time a property is acquired and classified as real estate owned, the fair value is determined utilizing the most appropriate method. A fair value in excess of $250,000 will be supported by an appraisal. After determination of fair value, each property will be recorded at the lower of cost (i.e., recorded investment in the loan) or the estimated net realizable value on the date of transfer to real estate owned. In determining net realizable value, reductions to fair market value may be taken for estimated costs of sale, conditions that must be remedied immediately upon acquisition, and other factors that negatively impact the marketability and prompt sale of the property.

41

Mortgage servicing rights: On a quarterly basis, loan servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. If the carrying amount of an individual tranche exceeds fair value, impairment is recorded on that tranche so that the servicing asset is carried at fair value. Fair value is determined at a tranche level, based on market prices for comparable mortgage servicing contracts, when available, or alternatively based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model utilizes assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data (Level 2).

Loans held for sale: Loans held for sale are carried at the lower of cost or fair value, which is evaluated on a pool-level basis. The fair value of loans held for sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan or other observable market data, such as outstanding commitments from third party investors (Level 2).

Loans held for sale, at fair value:  The Company elected the fair value option for all conventional residential one-to four-family loans held for sale originated after January 1, 2016 and all permanent construction loans held for sale originated on or after January 1, 2015.   The fair value of conventional loans held for sale is determined using the current 15 day forward contract price for either 15 or 30 year conventional mortgages (Level 2).

The fair value of the Company’s permanent construction loans held for sale is determined using the current 60 day forward contract price for 30 year conventional loans which is then adjusted by extrapolating this rate to the estimated time period remaining until construction is complete.  The fair value is also adjusted for unobservable market data such as estimated fall out rates and the estimated time from origination to completion of construction (Level 3).  

Interest rate caps: Home Savings uses an independent third party that performs a market valuation analysis for interest rate caps. The methodology used consists of a discounted cash flow model, all future floating cash flows are projected and both floating and fixed cash flows are discounted to the valuation date. The yield curve utilized for discounting and projecting is built by obtaining publicly available third party market quotes from Reuters, which handle up to 30-year swap maturities (Level 3). Assumptions used in the valuation of interest rate caps are back-tested for reasonableness on a quarterly basis using an independent source along with a third party service.

Purchased and written certificate of deposit option: Home Savings periodically enters into written and purchased option derivative instruments to facilitate the Power CD. The written and purchased options are mirror derivative instruments which are carried at fair value on the consolidated balance sheets. Home Savings uses an independent third party that performs a market valuation analysis for purchased and written certificate of deposit options. (Level 2).

Assets and Liabilities Measured on a Recurring Basis: Assets and liabilities measured at fair value on a recurring basis are summarized below:

			Fair Value Measurements at September 30, 2017 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	September 30,		Assets		Inputs		Inputs
	2017		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Available for sale securities
U.S. Treasury and government sponsored entities'    securities	$	125,060	$	—	$	125,060	$	—
States of the U.S. and political subdivisions		59,192		—		59,192
Mortgage-backed GSE securities: residential		90,570		—		90,570		—
Loans held for sale, at fair value		84,349		—		14,111		70,238
Purchased certificate of deposit option		823		—		823		—
Liabilities
Written certificate of deposit option		823		—		823		—

42

			Fair Value Measurements at December 31, 2016 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
	2016		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Available for sale securities
U.S. Treasury and government sponsored entities'    securities	$	186,033	$	—	$	186,033	$	—
States of the U.S. and political subdivisions		57,757		—		57,757		—
Mortgage-backed GSE securities: residential		99,494		—		99,494		—
Loans held for sale, at fair value		62,593		—		8,832		53,761
Purchased certificate of deposit option		882		—		882		—
Liabilities
Written certificate of deposit option		882		—		882		—

There were no transfers between Level 1 and Level 2 during 2017 or 2016.

The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2017 and 2016.  

	Loans Held for Sale, At Fair Value						Loans Held for Sale, At Fair Value
	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
	(Dollars in thousands)
Balance of recurring Level 3 assets at beginning of period	$	69,995		$	33,605		$	53,761		$	26,716
Total gains (losses) for the period
Included in change in fair value of loans held for sale		1,145			414			3,557			1,705
Included in other comprehensive income		—			—			—			—
Originations/Draws on construction perm loans		28,864			25,464			80,109			60,925
Amortization		—			—			—			—
Sales		(29,766	)		(12,347	)		(67,189	)		(42,210	)
Balance of recurring Level 3 assets at end of period	$	70,238		$	47,136		$	70,238		$	47,136

The following table presents quantitative information about recurring Level 3 fair value measurements at September 30, 2017:

			Valuation	Unobservable
	Fair Value		Technique(s)	Input(s)	Range
Loans held for sale, at fair value	$	70,238	Comparable sales	Time discount	0.00-1.80%

The following table presents quantitative information about recurring Level 3 fair value measurements at December 31, 2016:

			Valuation	Unobservable
	Fair Value		Technique(s)	Input(s)	Range
Loans held for sale, at fair value	$	53,761	Comparable sales	Time discount	0.00-1.80%

The fair value of loans held for sale, at fair value was determined using pricing from a quoted market, discounted for the length of time to the completion of the construction project.

43

Assets and Liabilities Measured on a Non-Recurring Basis: Assets and liabilities measured at fair value on a non-recurring basis are summarized below:

			Fair Value Measurements at September 30, 2017 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	September 30,		Assets		Inputs		Inputs
	2017		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Impaired loans:
Commercial loans
Multifamily	$	443	$	—	$	—	$	443
Residential loans
One-to four-family residential		536		—		—		536
Consumer loans
Home Equity		92		—		—		92
Marine		169		—		—		169
Mortgage servicing rights		125		—		125		—
Other real estate owned, net
Commercial loans
Construction loans		443		—		—		443
Residential loans
One-to four-family residential		136		—		—		136

			Fair Value Measurements at December 31, 2016 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
	2016		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Impaired loans:
Commercial loans
Nonresidential	$	2,257	$	—	$	—	$	2,257
Secured		284		—		—		284
Residential loans
One-to four-family residential		919		—		—		919
Consumer loans
Home Equity		228		—		—		228
Auto		177		—		—		177
Recreational vehicle		89		—		—		89
Other real estate owned, net
Commercial loans
Construction loans		748		—		—		748
Residential loans
One-to four-family residential		281		—		—		281

44

Impaired loans with specific allocations of the allowance for loan losses, carried at fair value, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a net carrying amount of $1.2 million at September 30, 2017, that includes a specific valuation allowance of $42,000. This resulted in an increase of the provision for loan losses of $92,000 and $571,000 during the three and nine months ended September 30, 2017, respectively. Impaired loans with specific allocations of the allowance for loan losses, carried at fair value, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a net carrying amount of $7.7 million at September 30, 2016, which includes a specific valuation allowance of $989,000. This resulted in an increase in the provision for loan losses of $134,000 and $3.7 million for the three and nine months ended September 30, 2016.  Impaired loans with specific allocations of the allowance for loan losses, carried at fair value, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a net carrying amount of $4.0 million at December 31, 2016, that includes a specific valuation allowance of $1.3 million.

The significant unobservable (Level 3) inputs used in the fair value measurement of collateral for collateral dependent impaired loans included in the above table primarily relate to the adjustment between carrying values versus appraised value. During the reported periods, discounts applied to appraisals for estimated selling costs were 10%.

At September 30, 2017, mortgage servicing rights carried at fair value were $125,000, with a net valuation allowance of $15,000.  At September 30, 2016, mortgage servicing rights, carried at fair value totaled $3.3 million, resulting in a net valuation allowance of $741,000.  Mortgage servicing rights are valued by an independent third party that is active in purchasing and selling these instruments.  Net impairment reflected in other income totaled $10,000 and $15,000 for the three and nine months ended September 30, 2017, respectively.  Net (recovery) impairment reflected in other income totaled $(25,000) and $702,000 for the three and nine months ended September 30, 2016.  The value reflects the characteristics of the underlying loans.  

At September 30, 2017, other real estate owned, carried at fair value, which is measured for impairment using the fair value of the property less estimated selling costs, and had a net carrying amount of $580,000, with a valuation allowance of $423,000. This resulted in expense of $53,000 and $15,000 during the three and nine months ended September 30, 2017.  At September 30, 2016, other real estate owned, carried at fair value, which is measured for impairment using the fair value of the property less estimated selling costs, and had a net carrying amount of $1.0 million with a valuation allowance of $1.0 million. This resulted in an expense (recovery) of $1,000 and $(25,000) during the three and nine months ended September 30, 2016, respectively. At December 31, 2016, other real estate owned had a net carrying amount of $1.0 million, with a valuation allowance of $1.0  million.

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at September 30, 2017:

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial loans
Multi Family	$	443	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-35.00%  (15.00%)
Residential loans
One-to four-family residential		536	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-10.77%  (4.27%)
Consumer loans
Home Equity		92	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-17.85%  (8.93%)
Marine		169	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-37.00%  (37.00%)
Other real estate owned, net
Commercial loans
Construction loans		443	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-80.00%(24.03%)
Residential loans
One-to four-family residential		136	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-0.00%  (0.00%)

45

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at December 31, 2016:

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial loans
Nonresidential	$	2,257	Sales comparison approach	Adjustment for differences between comparable sales	0.00-35.00%  (15.00%)
Secured		284	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-64.00%  (16.00%)
Residential loans
One-to four-family residential		919	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-10.77%  (4.27%)
Consumer loans
Home Equity		228	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-17.85%  (8.93%)
Other real estate owned:
Commercial loans
Construction loans		748	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-90.40%  (27.46%)
			Cost approach	Adjustment for differences in cost	0.00%-33.33%  (16.67%)
Residential loans
One-to four-family residential		281	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-27.00%  (7.74%)

Auto and recreational vehicle loans were excluded from the table above as their value is considered immaterial.

The Company has elected the fair value option for newly originated residential mortgage and permanent construction loans held for sale.  These loans are intended for sale and the Company believes that fair value is the best indicator of the resolution of these loans.  Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policy on loans held for investment.  None of these loans are 90 or more days past due nor on nonaccrual status as of September 30, 2017 and December 31, 2016.  

	September 30, 2017		December 31, 2016
	(Dollars in thousands)
Aggregate fair value	$	84,349	$	62,593
Contractual balance		80,611		62,843
Gain (loss)		3,738		(250	)

The total amount of gains and losses from changes in fair value included in earnings for the three and nine months ended September 30, 2017 and 2016 for loans held for sale, at fair value were:

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
	(Dollars in thousands)
Interest  income	$	—	$	—	$	—	$	—
Interest expense		—		—		—		—
Change in fair value		1,088		556		3,988		2,205
Total change in fair value	$	1,088	$	556	$	3,988	$	2,205

46

In accordance with U.S. GAAP, the carrying value and estimated fair values of financial instruments at September 30, 2017 and December 31, 2016, were as follows:

				Fair Value Measurements at September 30, 2017 Using:
	September 30,
	2017
	Carrying Value			(Level 1)			(Level 2)			(Level 3)
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	38,010		$	38,010		$	—		$	—
Available for sale securities		274,822			—			274,822			—
Held to maturity securities		85,549			—			85,024			—
Loans held for sale		196			—			203			—
Loans held for sale, at fair value		84,349			—			14,111			70,238
Loans, net		1,947,695			—			—			1,942,267
FHLB stock		19,324		n/a			n/a			n/a
Accrued interest receivable		7,253			—			1,733			5,520
Purchased certificate of deposit option		823			—			823			—
Liabilities:
Deposits:
Checking, savings and money market accounts		(1,241,779	)		(1,241,779	)		—			—
Certificates of deposit		(696,920	)		—			(698,045	)		—
FHLB advances		(328,341	)		—			(328,342	)		—
Repurchase agreements and other		(10,191	)		—			(9,911	)		—
Advance payments by borrowers for taxes and insurance		(16,048	)		(16,048	)		—			—
Accrued interest payable		(722	)		—			(722	)		—
Written certificate of deposit option		(823	)		—			(823	)		—

				Fair Value Measurements at December 31, 2016 Using:
	December 31,
	2016
	Carrying Value			(Level 1)			(Level 2)			(Level 3)
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	45,887		$	45,887		$	—		$	—
Available for sale securities		343,284			—			343,284			—
Held to maturity securities		97,519			—			92,940			3,210
Loans held for sale at lower of cost or market		165			—			169			—
Loans held for sale, at fair value		62,593			—			8,832			53,761
Loans, net		1,503,577			—			—			1,494,534
FHLB stock		18,068		n/a			n/a			n/a
Accrued interest receivable		6,900			—			2,624			4,276
Purchased certificate of deposit option		882			—			882			—
Liabilities:
Deposits:
Checking, savings and money market accounts		(1,026,565	)		(1,026,565	)		—			—
Certificates of deposit		(488,426	)		—			(491,278	)		—
FHLB advances		(390,756	)		—			(390,750	)		—
Repurchase agreements and other		(512	)		—			(513	)		—
Advance payments by borrowers for taxes and insurance		(23,812	)		(23,812	)		—			—
Accrued interest payable		(145	)		—			(145	)		—
Written certificate of deposit option		(882	)		—			(882	)		—

47

The methods and assumptions, not previously presented, used to estimate fair values are described as follows:

(a) Cash and Cash Equivalents

The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1.

(b) FHLB Stock

It is not practical to determine the fair value of FHLB stock due to restrictions placed on its transferability.

(c) Held to maturity securities

Fair values for held to maturity securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows.

(d) Loans

Fair values of loans, excluding loans held for sale, are estimated as follows: for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification; fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification; and impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price.

(e) Deposits

The fair values disclosed for demand deposits (e.g., interest and non-interest checking, savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 1 classification. The carrying amounts of variable rate, fixed-term money market accounts approximate their fair values at the reporting date resulting in a Level 1 classification. Fair values for fixed and variable rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates of deposit to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification.

(f) Other Borrowings

Short-term borrowings, generally maturing within 90 days, approximate their fair values resulting in a Level 2 classification. The fair values of Home Savings long-term borrowings are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification.

(g) Accrued Interest Receivable/Payable

The carrying amounts of accrued interest approximate fair value resulting in a Level 2 or Level 3 classification, depending on the classification of the underlying asset or liability.

(h) Off-balance Sheet Instruments

Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments is not material.

48

10. STATEMENT OF CASH FLOWS SUPPLEMENTAL DISCLOSURE

Supplemental disclosures of cash flow information are summarized below.

	For the Nine Months Ended September 30,
	2017		2016
	(Dollars in thousands)
Supplemental disclosures of cash flow information
Cash paid  during the period for:
Interest on deposits and borrowings	$	8,611	$	6,203
Income taxes		425		275
Supplemental schedule of noncash activities:
Transfers from loans to real estate owned and other repossessed assets		651		813
Transfers from loans to loans held for sale		27,921		—
Transfers from premises and equipment to other assets, held for sale		1,720		—
Accretion of securities held to maturity		151		181
Issuance of common stock - James & Sons acquisition		—		1,547
Issuance of common stock - Ohio Legacy Corp. acquisition		25,816		—
Net assets acquired from Ohio Legacy Corp., excluding cash and cash equivalents		36		—

11. EARNINGS PER SHARE

The Company has granted stock compensation awards with nonforfeitable dividend rights which are considered participating securities. As such, earnings per share is computed using the two-class method as required by ASC 206-10-45. Basic earnings per common share is computed by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding during the period which excludes the participating securities. Diluted earnings per common share includes the dilutive effect of additional potential common shares from stock compensation awards, but also excludes awards considered participating securities. No stock options were anti-dilutive for the three and nine months ended September 30, 2017.  No stock options were anti-dilutive for the three months and nine months ended September 30, 2016.  

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
	(Dollars in thousands, except per share data)
Net income per consolidated statements of income	$	7,556		$	5,153		$	17,283		$	13,803
Net income allocated to participating securities		(42	)		(38	)		(108	)		(88	)
Net income allocated to common stock	$	7,514		$	5,115		$	17,175		$	13,715
Basic earnings per common share computation:
Distributed earnings allocated to common stock	$	1,979		$	1,385		$	4,941		$	3,753
Undistributed earnings allocated to common stock		5,535			3,730			12,234			9,962
Net income allocated to common stock	$	7,514		$	5,115		$	17,175		$	13,715
Weighted average common shares outstanding, including shares    considered participating securities		49,736			46,508			49,353			47,104
Less: Average participating securities		(276	)		(341	)		(308	)		(302	)
Weighted average shares		49,460			46,167			49,045			46,802
Basic earnings per common share	$	0.15		$	0.11		$	0.35		$	0.29
Diluted earnings per common share computation:
Net income allocated to common stock	$	7,514		$	5,115		$	17,175		$	13,715
Weighted average common shares outstanding for basic    earnings per common share		49,460			46,167			49,045			46,802
Add: Dilutive effects of assumed exercises of stock options and LTIP    awards		391			225			396			214
Weighted average shares and dilutive potential common shares		49,851			46,392			49,441			47,016
Diluted earnings per common share	$	0.15		$	0.11		$	0.35		$	0.29

49

12. OTHER COMPREHENSIVE INCOME (LOSS)

Other comprehensive income (loss) included in the consolidated statements of shareholders’ equity consists of unrealized gains and losses on available for sale securities, disproportional tax effects and changes in unrealized gains and losses on the postretirement liability. The change includes reclassification of net gains or (losses) on sales of securities of $236,000 and $218,000 for the three months ended September 30, 2017 and 2016, respectively and $566,000 and $604,000 for the nine months ended September 30, 2017 and 2016, respectively.  Reclassifications also include amortization of unrealized gains on postretirement plan and accretion of unrealized loss on held to maturity securities.    

Other comprehensive income (loss) components and related tax effects for the three-month periods are as follows:

	Unrealized Gains (Losses) on Securities Availablefor Sale			Disproportionate Tax Effect from Securities Available for Sale			Losses on Securities Transferred From Available for Sale to Held to Maturity			Total
September 30, 2017	(Dollars in thousands)
Balances at beginning of period, net of tax	$	(603	)	$	(17,110	)	$	(735	)	$	(18,448	)
Other comprehensive income before    reclassifications		639			—			—			639
Accretion of unrealized losses of securities    transferred from available for sale to    held to maturity recognized in other    comprehensive income		—			—			33			33
Reclassification adjustment for gains realized    in income		(153	)		—			—			(153	)
Net current period other comprehensive income		486			—			33			519
Balances at end of period, net of tax	$	(117	)	$	(17,110	)	$	(702	)	$	(17,929	)

	Unrealized Gains (Losses) on Securities Available for Sale			Disproportionate Tax Effect from Securities Available for Sale			Losses on Securities Transferred From Available for Sale to Held to Maturity			Unrealized Gains (Losses) from Postretirement Plan			Disproportionate Tax Effect from Postretirement Plan		Total
September 30, 2016	(Dollars in thousands)
Balances at beginning of period,    net of tax	$	8,379		$	(17,110	)	$	(889	)	$	469		$	511	$	(8,640	)
Other comprehensive income    before reclassifications		(1,227	)		—			—			—			—		(1,227	)
Amortization of unrealized gains    of postretirement plan    recognized in other    comprehensive income		—			—			—			(289	)		—		(289	)
Accretion of unrealized losses of    securities transferred from    available for sale to held    to maturity recognized in    other comprehensive income		—			—			47			—			—		47
Reclassification adjustment for    gains realized in income		(142	)		—			—			—			—		(142	)
Net current period other    comprehensive income		(1,369	)		—			47			(289	)		—		(1,611	)
Balances at end of period, net of    tax	$	7,010		$	(17,110	)	$	(842	)	$	180		$	511	$	(10,251	)

50

Other comprehensive income (loss) components and related tax effects for the nine-month periods are as follows:

	Unrealized Gains (Losses) on Securities Availablefor Sale			Disproportionate Tax Effect from Securities Available for Sale			Losses on Securities Transferred From Available for Sale to Held to Maturity			Total
September 30, 2017	(Dollars in thousands)
Balances at beginning of period, net of tax	$	(3,130	)	$	(17,110	)	$	(800	)	$	(21,040	)
Other comprehensive income before    reclassifications		3,381			—			—			3,381
Accretion of unrealized losses of securities    transferred from available for sale to held    to maturity recognized in other    comprehensive income		—			—			98			98
Reclassification adjustment for gains realized    in income		(368	)		—			—			(368	)
Net current period other comprehensive    income		3,013			—			98			3,111
Balances at end of period, net of tax	$	(117	)	$	(17,110	)	$	(702	)	$	(17,929	)

	Unrealized Gains (Losses) on Securities Available for Sale			Disproportionate Tax Effect from Securities Available for Sale			Losses on Securities Transferred From Available for Sale to Held to Maturity			Unrealized Gains (Losses) from Postretirement Plan			Disproportionate Tax Effect from Postretirement Plan		Total
September 30, 2016	(Dollars in thousands)
Balances at beginning of period,    net of tax	$	(2,492	)	$	(17,110	)	$	(960	)	$	831		$	511	$	(19,220	)
Other comprehensive income    before reclassifications		9,895			—						—			—		9,895
Amortization of unrealized    gains of postretirement plan    recognized in other    comprehensive income		—			—			—			(651	)		—		(651	)
Accretion of unrealized losses    of securities transferred    from available for sale to    held to maturity recognized    in other comprehensive    income		—			—			118			—			—		118
Reclassification adjustment    for gains realized in income		(393	)		—			—			—			—		(393	)
Net current period other    comprehensive income		9,502			—			118			(651	)		—		8,969
Balances at end of period, net of    tax	$	7,010		$	(17,110	)	$	(842	)	$	180		$	511	$	(10,251	)

51

As of June 30, 2014, management concluded it was more likely than not that the Company’s net deferred tax asset (DTA) would be realized and accordingly determined a full deferred tax valuation allowance was no longer required. Upon reversal of the former full deferred tax valuation allowance as of June 30, 2014, certain disproportionate tax effects are retained in accumulated other comprehensive income (loss) totaling approximately a ($16.6) million loss. Almost the entire disproportionate tax effect is attributable to valuation allowance expense recorded through other comprehensive income (loss) on the tax benefit of losses sustained on the available for sale securities portfolio while the Company was in a full deferred tax valuation allowance. This valuation allowance was appropriately reversed through continuing operations at June 30, 2014, leaving the original expense in accumulated other comprehensive income (loss), where it will remain in accordance with the Company’s election of the “portfolio approach”, until such time as the Company would cease to have an available for sale security portfolio.

The following are significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the three months ended September 30, 2017:

	Amount Reclassified			Affected Line Item on
	From Accumulated			the Statement Where
Details About Accumulated Other Comprehensive	Other Comprehensive			Net Income is
Income Components	Income			Presented
	(Dollars in thousands)
Realized net gains on the sale of available for sale securities	$	236		Net gains on securitiesavailable for sale
		(83	)	Tax expense
Total reclassification during the period	$	153		Net of tax, increase to net income

The following are significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the three months ended September 30, 2016:

	Amount Reclassified			Affected Line Item on
	From Accumulated			the Statement Where
Details About Accumulated Other Comprehensive	Other Comprehensive			Net Income is
Income Components	Income			Presented
	(Dollars in thousands)
Realized net gains on the sale of available for sale securities	$	218		Net gainson securitiesavailable for sale
		(76	)	Tax expense
		142		Net of tax
Amortization of postretirement benefits prior service costs		445		Reduction in salaries and employee benefits
		(156	)	Tax expense
		289		Net of tax
Total reclassification during the period	$	431		Increase to net income

The following are significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the nine months ended September 30, 2017:

	Amount Reclassified			Affected Line Item on
	From Accumulated			the Statement Where
Details About Accumulated Other Comprehensive	Other Comprehensive			Net Income is
Income Components	Income			Presented
	(Dollars in thousands)
Realized net gains on the sale of available for sale securities	$	566		Net gains on securitiesavailable for sale
		(198	)	Tax expense
Total reclassification during the period	$	368		Net of tax, increase to net income

52

The following are significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the nine months ended September 30, 2016:

	Amount Reclassified			Affected Line Item on
	From Accumulated			the Statement Where
Details About Accumulated Other Comprehensive	Other Comprehensive			Net Income is
Income Components	Income			Presented
	(Dollars in thousands)
Realized net gains on the sale of available for sale securities	$	604		Net gainson securitiesavailable for sale
		(211	)	Tax expense
		393		Net of tax
Amortization of postretirement benefits prior service costs		1,001		Reduction in salaries and employee benefits
		(350	)	Tax expense
		651		Net of tax
Total reclassification during the period	$	1,044		Increase to net income

13. REGULATORY CAPITAL REQUIREMENTS

Home Savings and United Community are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on Home Savings and United Community. The regulations require Home Savings to meet specific capital adequacy guidelines in keeping with the regulatory framework for prompt corrective action that involve quantitative measures of Home Savings’ assets, liabilities, and certain off balance sheet items as calculated under regulatory accounting practices. Home Savings’ capital classification is also subject to qualitative judgments by the regulators about components of capital, risk weightings, and other factors.

The Basel III Capital Rules establish a common equity Tier 1 minimum capital requirement (4.5% of risk-weighted assets), a minimum Tier 1 capital to risk-based assets requirement (6% of risk-weighted assets) and assigns a risk weight (150%) to exposures that are more than 90 days past due or are on nonaccrual status and to certain commercial real estate facilities that finance the acquisition, development or construction of real property. The rules also require unrealized gains and losses on certain available-for-sale securities holdings to be included for purposes of calculating regulatory capital requirements unless a one-time opt-in or opt-out is exercised. In connection with the adoption of the Basel III Capital Rules, United Community and Home Savings elected to opt-out of the requirement to include most components of accumulated other comprehensive income in Common Equity Tier 1.  The rule limits a banking organization’s capital distributions and certain discretionary bonus payments if the banking organization does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital risk-based weighted assets in addition to the amount necessary to meeting its minimum risk-based capital requirements.

The capital conservation buffer requirement will be phased in through January 1, 2019, when the full capital conservation buffer requirement will be effective. The capital conservation buffer for 2017 is 1.25%.  The capital conservation buffer for 2016 was 0.625%.  The final rule also implemented consolidated capital requirements.

Quantitative measures established by regulation for capital adequacy require Home Savings to maintain minimum ratios of Tier 1 (or Core) capital (as defined in the regulations) to average total assets (as defined) and of total risk-based capital (as defined) to risk-weighted assets (as defined).  United Community and Home Savings’ Common Equity Tier 1 capital consists of common stock and related paid-in capital, net of treasury stock, and retained earnings. Common Equity Tier 1 for both United Community and Home Savings is reduced by intangible assets, net of associated deferred tax liabilities and subject to transition provisions. Actual and regulatory required capital ratios for Home Savings, along with the dollar amount of capital implied by such ratios, are presented below.

	September 30, 2017
											To Be Well Capitalized
						Minimum Capital					Under Prompt
						Requirements For Capital					Corrective Action
	Actual					Adequacy Purposes***					Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
Total capital (to risk-weighted assets)	$	287,665		14.74	%	$	180,469		9.25	%	$	195,101		10.00	%
Tier 1 capital (to risk-weighted assets)		267,141		13.69	%		141,448		7.25	%		156,081		8.00	%
Common equity Tier 1 capital (to risk-weighted    assets)		267,141		13.69	%		112,183		5.75	%		126,816		6.50	%
Tier 1 capital (to average assets)**		267,141		10.46	%		102,142		4.00	%		127,677		5.00	%

53

	December 31, 2016
											To Be Well Capitalized
						Minimum Capital					Under Prompt
						Requirements					Corrective Action
	Actual					Per Regulation***					Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
Total capital (to risk-weighted assets)	$	248,861		16.47	%	$	130,292		8.625	%	$	151,063		10.00	%
Tier 1 capital (to risk-weighted assets)		229,938		15.22	%		100,079		6.625	%		120,850		8.00	%
Common equity Tier 1 capital (to risk-weighted    assets)		229,938		15.22	%		77,420		5.125	%		98,191		6.50	%
Tier 1 capital (to average assets)**		229,938		10.65	%		86,360		4.000	%		107,950		5.00	%

** Tier 1 Leverage Capital Ratio

*** The capital ratios are reflective of the capital conservation buffer

Management believes that as of September 30, 2017 and December 31, 2016, Home Savings met all capital adequacy requirements to which it was subject.  As of September 30, 2017 and December 31, 2016, Home Savings met the capital requirements to be deemed well capitalized. There are no known conditions that would change this classification subsequent to September 30, 2017.  

The components of Home Savings’ regulatory capital are as follows:

	September 30, 2017			December 31, 2016
Total shareholders' equity	$	272,589		$	216,475
Add (deduct)
Accumulated other comprehensive income		17,944			21,056
Intangible assets		(20,241	)		(3	)
Disallowed deferred tax assets		(3,151	)		(7,590	)
Disallowed capitalized mortgage loan servicing rights		—			—
Tier 1 Capital		267,141			229,938
Allowance for loan losses and allowance for unfunded lending commitments    limited to 1.25% of total risk-weighted assets		20,524			18,923
Total risk-based capital	$	287,665		$	248,861

54

Actual and regulatory required consolidated capital ratios for United Community, along with the dollar amount of capital implied by such ratios, are presented below.

	September 30, 2017
						Minimum Capital
						Requirements
	Actual					Per Regulation***
	Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
Total capital (to risk-weighted assets)	$	300,578		15.38	%	$	180,758		9.25	%
Tier 1 capital (to risk-weighted assets)		280,023		14.33	%		141,675		7.25	%
Common equity Tier 1 capital (to risk-weighted assets)		280,023		14.33	%		112,363		5.75	%
Tier 1 capital (to average assets)**		280,023		10.95	%		102,306		4.00	%
	December 31, 2016
						Minimum Capital
						Requirements
	Actual					Per Regulation***
	Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
Total capital (to risk-weighted assets)	$	277,817		18.38	%	$	130,369		8.625	%
Tier 1 capital (to risk-weighted assets)		258,869		17.13	%		100,139		6.625	%
Common equity Tier 1 capital (to risk-weighted assets)		258,869		17.13	%		77,466		5.125	%
Tier 1 capital (to average assets)**		258,869		11.98	%		86,425		4.000	%

** Tier 1 Leverage Capital Ratio

*** The capital ratios are reflective of the capital conservation buffer

The components of United Community’s consolidated regulatory capital are as follows:

	September 30, 2017			December 31, 2016
Total shareholders' equity	$	291,851		$	249,806
Add (deduct)
Accumulated other comprehensive income		17,929			21,040
Intangible assets		(22,773	)		(1,567	)
Disallowed deferred tax assets		(6,984	)		(10,410	)
Disallowed capitalized mortgage loan servicing rights		—			—
Tier 1 Capital		280,023			258,869
Allowance for loan losses and allowance for unfunded lending commitments    limited to 1.25% of total risk-weighted assets		20,555			18,948
Total risk-based capital	$	300,578		$	277,817

55

14. INCOME TAXES

Significant components of the deferred tax assets and liabilities are as follows:

	September 30,		December 31,
	2017		2016
	(Dollars in thousands)
Deferred tax assets:
Loan loss reserves	$	7,194	$	6,680
Depreciation		940		748
Other real estate owned valuation		148		354
Tax credits carryforward		2,816		1,471
Unrealized loss on securities available for sale		62		1,685
Unrealized loss on securities held to maturity		378		431
Interest on nonaccrual loans		887		1,039
Net operating loss carryforward		4,613		8,574
Purchase accounting adjustment		781		—
Accrued bonuses		991		812
Other		80		221
Deferred tax assets		18,890		22,015
Deferred tax liabilities:
Deferred loan fees		1,772		1,275
Federal Home Loan Bank stock dividends		4,645		4,585
Mortgage servicing rights		2,257		2,124
FHLB prepayment penalty		649		786
Purchase accounting adjustment		—		371
Prepaid expenses		555		139
Deferred tax liabilities		9,878		9,280
Net deferred tax asset	$	9,012	$	12,735

As of September 30, 2017, the net deferred tax asset was $9.0 million, and as of December 31, 2016, the net deferred tax asset was $12.7 million.

The Company’s ultimate realization of the net deferred tax asset is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible. Management considers the nature and amount of historical and projected future taxable income, the scheduled reversal of deferred tax assets and liabilities, and available tax planning strategies in making this assessment. The amount of deferred taxes recognized could be impacted by changes to any of these variables.

United Community’s net operating loss of $13.2 million at September 30, 2017 will be carried forward to use against future taxable income. The net operating loss carryforwards begin to expire in the year ending December 31, 2030. In addition, United Community is carrying forward $2.8 million of alternative minimum tax credits. The alternative minimum tax credits are carried forward indefinitely.

Effective tax rates differ from the statutory federal income tax rate of 35% due to the following:

	For the Three Months Ended September 30,
	2017						2016
	Dollars			Rate			Dollars			Rate
	(Dollars in thousands)
Tax at statutory rate:	$	3,718			35.00	%	$	2,604			35.00	%
Increase (decrease) due to:
Tax exempt income		(164	)		(1.54	)%		(142	)		(1.91	)%
Life insurance		(148	)		(1.39	)%		(132	)		(1.78	)%
Stock compensation		(102	)		(0.96	)%		—			—	%
Other		(237	)		(2.23	)%		(42	)		(0.56	)%
Income tax provision	$	3,067			28.88	%	$	2,288			30.75	%

56

	For the Nine Months Ended September 30,
	2017						2016
	Dollars			Rate			Dollars			Rate
	(Dollars in thousands)
Tax at statutory rate:	$	8,499			35.00	%	$	7,074			35.00	%
Increase (decrease) due to:
Tax exempt income		(499	)		(2.05	)%		(327	)		(1.62	)%
Life insurance		(416	)		(1.71	)%		(388	)		(1.92	)%
Stock compensation		(300	)		(1.24	)%		—			—	%
Other		(283	)		(1.17	)%		50			0.25	%
Income tax provision	$	7,001			28.83	%	$	6,409			31.71	%

15. GOODWILL AND INTANGIBLE ASSETS

Goodwill:

The change in goodwill during the periods presented is as follows:

	September 30, 2017		December 31, 2016
	(In thousands)
Beginning of the year	$	208	$	—
Effect of adjustments-James & Sons Insurance		636		—
Acquired goodwill-OLCB		18,420		—
Effect of adjustments-OLCB		15		—
Acquired goodwill-Eich Brothers Insurance		188		—
Acquired goodwill-Stevens Insurance		21		—
Acquired goodwill-James & Sons Insurance		—		208
Impairment	—		—
End of the year	$	19,488	$	208

The changes to goodwill during the nine months ended September 30, 2017 are primarily due to changes in the final market value for the customer list intangible asset, as well as the related tax effect from those adjustments related to the James & Sons acquisition in January 2016.  

Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value.  If the carrying amount of a reporting unit is zero or less than zero, a qualitative analysis of whether it is more likely than not that the reporting unit goodwill is impaired will be performed.  The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment.  The Company did not have any reporting units with a carrying amount of zero or less than zero at September 30, 2017 or December 31, 2016.

Acquired Intangible Assets:

	September 30, 2017				December 31, 2016
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
	(In thousands)
Amortized intangible assets:
Core deposit intangibles	$	11,184	$	9,167	$	8,952	$	8,947
Customer list intangible		2,222		132		1,400		44
Total	$	13,406	$	9,299	$	10,352	$	8,991

57

Core deposit intangible:

	For the nine months ended September 30, 2017			For the year ended December 31, 2016
	(In thousands)
Beginning of the year	$	5		$	30
Acquired core deposit intangible-OLCB		2,232			—
Amortization		(220	)		(25	)
End of the period	$	2,017		$	5

Customer list intangible:

	For the nine months ended September 30, 2017			For the year ended December 31, 2016
	(In thousands)
Beginning of the year	$	1,356		$	—
Effect of adjustments-James & Sons Insurance		(41	)		—
Acquired customer list intangible-OLCB		268			—
Acquired customer list intangible-Eich Brothers Insurance		535			—
Acquired customer list intangible-Stevens Insurance		60			—
Acquired customer list intangible-James & Sons Insurance		—			1,400
Amortization		(88	)		(44	)
End of the period	$	2,090		$	1,356

Aggregate amortization expense for the three months ended September 30, 2017 and 2016 was $113,000 and $72,000, respectively.  Aggregate amortization expense for the nine months ended September 30, 2017 and 2016 was $308,000 and $95,000, respectively.  Estimated amortization expense for the remainder of 2017 and the next five years is as follows:

Remainder of 2017	$	112,000
2018		448,000
2019		448,000
2020		448,000
2021		448,000
2022		448,000

16. QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS

The Company invests in qualified affordable housing projects.  At September 30, 2017 and December 31, 2016, the balance of the investment for qualified affordable housing projects was $5.8 million and $3.0 million, respectively.  These balances are reflected in other assets on the consolidated balance sheet.  Total unfunded commitments related to the investments in qualified affordable housing projects totaled $5.7 million and $2.9 million at September 30, 2017 and December 31, 2016, respectively.  The Company expects to fulfill these commitments over the next eight to ten years.

During the three months ended September 30, 2017 and 2016, the Company recognized amortization expense of $44,000 and $5,000, respectively, which was included within income tax expense on the consolidated statements of income. During the nine months ended September 30, 2017 and 2016, the Company recognized amortization expense of $134,000 and $5,000, respectively.

Additionally, during the three months ended September 30, 2017 and 2016, the Company recognized tax credits and other benefits from its investment in affordable housing tax credits of $55,000 and $6,000, respectively.  During the nine months ended September 30, 2017 and 2016, the Company recognized tax credits and other benefits from its investment in affordable housing tax credits of $165,000 and $6,000, respectively.  During the three and nine months ended September 30, 2017 and 2016, the Company incurred no impairment losses.

58

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

UNITED COMMUNITY FINANCIAL CORP.

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
Selected financial ratios and other data: (1)	2017			2016			2017			2016
Performance ratios:
Return on average assets (2)		1.17	%		0.98	%		0.91	%		0.90	%
Return on average equity (3)		10.43	%		8.38	%		8.17	%		7.44	%
Interest rate spread (4)		3.30	%		3.14	%		3.27	%		3.13	%
Net interest margin (5)		3.45	%		3.25	%		3.40	%		3.23	%
Noninterest expense to average assets		2.39	%		2.47	%		2.68	%		2.49	%
Efficiency ratio (6)		57.13	%		59.40	%		64.47	%		61.28	%
Average interest-earning assets to average interest-bearing liabilities		124.72	%		124.21	%		124.66	%		124.74	%
Capital ratios:
Average equity to average assets		11.19	%		11.72	%		11.12	%		12.08	%
Equity to assets, end of period		11.21	%		11.87	%		11.21	%		11.87	%
Tier 1 leverage ratio (Bank only)		10.46	%		11.28	%		10.46	%		11.28	%
Common equity Tier 1 capital (Bank only)		13.69	%		15.97	%		13.69	%		15.97	%
Tier 1 risk-based capital ratio (Bank only)		13.69	%		15.97	%		13.69	%		15.97	%
Total risk-based capital ratio (Bank only)		14.74	%		17.21	%		14.74	%		17.21	%
Asset quality ratios:
Nonperforming loans to net loans at end of period (7)		0.62	%		1.32	%		0.62	%		1.32	%
Nonperforming assets to average assets (8)		0.76	%		1.01	%		0.77	%		1.04	%
Nonperforming assets to total assets at end of period		0.75	%		0.98	%		0.75	%		0.98	%
Allowance for loan losses as a percent of loans		1.04	%		1.22	%		1.04	%		1.22	%
Allowance for loan losses as a percent of nonperforming loans (7)		169.64	%		93.76	%		169.64	%		93.76	%
Total classified assets as a percent of Tier 1 Capital (Bank only)		21.05	%		14.83	%		21.05	%		14.83	%
Total classified loans as a percent of Tier 1 Capital and ALLL (Bank    only)		16.93	%		13.06	%		16.93	%		13.06	%
Total classified assets as a percent of Tier 1 Capital and ALLL (Bank    only)		19.55	%		13.76	%		19.55	%		13.76	%
Net (recoveries) chargeoffs as a percent of average loans		(0.04	)%		0.08	%		0.11	%		0.33	%
Total 90+ days past due as a percent of net loans		0.40	%		1.04	%		0.40	%		1.04	%
Per share data:
Basic earnings per common share (9)	$	0.15		$	0.11		$	0.35		$	0.29
Diluted earnings per common share (9)		0.15			0.11			0.35			0.29
Book value per common share (10)		5.87			5.51			5.87			5.51
Tangible book value per common share (11)		5.38			5.48			5.38			5.48
Cash dividend per common share		0.040			0.030			0.100			0.080
Dividend payout ratio (12)		26.54	%		27.27	%		28.79	%		27.59	%

Notes:

1. Ratios for the three and nine month periods are annualized where appropriate

2. Net income divided by average total assets

3. Net income divided by average total equity

4. Difference between weighted average yield on interest-earning assets and weighted average cost of interest-bearing liabilities

5. Net interest income as a percent of average interest-earning assets

6. Noninterest expense, excluding the amortization of the core deposit intangible and prepayment penalty, divided by the sum of net interest income and noninterest income, excluding gains and losses on securities and gains and losses on foreclosed assets

7. Nonperforming loans consist of nonaccrual loans and loans past due ninety days and still accruing

8. Nonperforming assets consist of nonperforming loans, real estate owned and other repossessed assets and other assets

9. Net income divided by the number of basic or diluted shares outstanding

10. Shareholders’ equity divided by number of shares outstanding

11. Shareholders’ equity minus goodwill and core deposit intangible divided by number of shares outstanding

12. Historical per share dividends declared and paid for the period divided by the diluted earnings per share for that year

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Forward-Looking Statements

When used in this Form 10-Q, the words or phrases “will likely result,” “are expected to,” “plan to,” “will continue,” “is anticipated,” “estimate,” “project” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, including changes in economic conditions in United Community’s market area, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans in Home Savings’ market area and competition that could cause actual results to differ materially from results presently anticipated or projected. United Community cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. United Community advises readers that the factors listed above could affect United Community’s financial performance and could cause United Community’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. United Community undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made.

Material Changes in Financial Condition at September 30, 2017 and December 31, 2016

On January 31, 2017, United Community completed its acquisition of OLCB.  Pursuant to the terms of the Merger Agreement, OLCB was merged with and into United Community (the merger). Immediately following the merger, Home Savings was merged with and into Premier Bank & Trust, a subsidiary of OLCB, and changed its name to Home Savings Bank.

As a result of the merger and in accordance with the terms of the Merger Agreement, each preferred share of OLCB was deemed to have been converted into OLCB common shares. Each OLCB common share was converted into the right to receive either $18.00 in cash or 2.736 United Community common shares, subject to certain allocation procedures set forth in the Merger Agreement that ensured that 50% of OLCB’s common shares outstanding were converted into United Community common shares, and 50% of OLCB’s common shares outstanding were converted into the right to receive the cash consideration. The Company paid cash in lieu of issuing fractional shares.  This transaction resulted in the addition of approximately $349.3 million in assets and the addition of 4 branches in Summit, Stark and Belmont counties.  See Note 4 to the consolidated financial statements for additional information regarding this transaction.

HSB Insurance, Inc., a wholly-owned subsidiary of the Company which was formed and began operations on June 1, 2017, is a Delaware-based captive insurance company which insures against certain risks unique to the operations of the Corporation and its subsidiaries and for which insurance may not be currently available or economically feasible in today's insurance marketplace. HSB Insurance, Inc. pools resources with several other similar insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves.  HSB Insurance, Inc. is subject to regulations of the State of Delaware and undergoes periodic examinations by the Delaware Division of Insurance.

Cash and cash equivalents decreased $7.9 million during the first nine months of 2017.  Cash levels can fluctuate period to period based on expectations of funding needs but are expected to remain stable during the remainder of 2017.  

Available for sale securities decreased $68.5 million during the first nine months of 2017.  The acquisition of OLCB added $10.0 million dollars in securities to the available for sale portfolio, but the securities matured prior to the end of the first quarter.  The decrease in the available for sale securities balance since December 31, 2016 was the result of pay downs and the amortization of premiums/discounts on the securities along with sales totaling $62.3 million.  The sales were completed to provide additional liquidity for lending activity.  The shrinkage of the securities portfolio to fund loan growth has been part of the Company’s strategic plan.  Partially offsetting this activity was a decrease in the unrealized loss on securities. The unrealized loss in the available for sale portfolio was $178,000 at September 30, 2017, compared to an unrealized loss of $4.8 million at December 31, 2016.

Held to maturity securities declined $12.0 million at September 30, 2017 compared to December 31, 2016.  This change was the result of pay downs and the amortization of premiums/discounts on the securities.

Net loans increased $444.1 million during the first nine months of 2017 primarily as a result of the acquisition of OLCB, which added $259.4 million in balances, but also due to $184.7 million of organic loan growth. The organic loan growth increase was substantially attributed to the commercial portfolio during the period. Offsetting this growth was a mortgage loan sale of $27.7 million during the second quarter of 2017.  See Note 6 to the consolidated financial statements for additional information regarding the composition of loans.

The allowance for loan losses is a valuation allowance for probable incurred credit losses established through a provision for loan losses charged to expense. The allowance for loan losses was $20.6 million at September 30, 2017, up from the $19.1 million reported at December 31, 2016. The allowance for loan losses as a percentage of loans was 1.04% at September 30, 2017, compared to 1.25% at December 31, 2016.  The decrease is the result of the acquired loan portfolio being recorded at fair value without an allowance for loan losses.    

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The allowance for loan losses as a percentage of nonperforming loans was 169.6% at September 30, 2017, compared to 153.5% at December 31, 2016.  Loan losses are charged against the allowance when the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are added back to the allowance. Home Savings’ allowance for loan loss methodology includes allowance allocations calculated in accordance with ASC Topic 310, “Receivables,” and allowance allocations calculated in accordance with ASC Topic 450, “Contingencies”. As of September 30, 2017, the Company evaluated 21 quarters of net charge-off history and applied this information to the current period.  This component is combined with the qualitative component to arrive at the loss factor, which is applied to the outstanding balance of homogenous loans.

A loan is considered impaired when there is a deterioration of the credit worthiness of the borrower to the extent that the collection of the full amount of principal and interest is no longer probable. The total outstanding balance of all impaired loans was $26.4 million at September 30, 2017 as compared to $31.5 million at December 31, 2016.

Included in impaired loans above are certain loans Home Savings considers to be troubled debt restructurings (TDR). A loan is considered a TDR if Home Savings grants a concession to a debtor experiencing financial difficulty that it would otherwise not consider. The concession either stems from an agreement between the creditor and the debtor or is imposed by law or a court. If the debtor is not currently experiencing financial difficulties, but would probably be in payment default in the future without the modification, then this type of restructure also could be considered a TDR.

TDR loans aggregated $21.3 million at September 30, 2017 compared to $26.6 million at December 31, 2016.  Of the $21.3 million at September 30, 2017, $18.5 million were performing loans according to their modified terms.  The remaining balance of TDR loans of $2.8 million were considered nonperforming.

Nonperforming loans consist of nonaccrual loans and loans past due 90 days and still accruing. Nonperforming loans were $10.8 million, or 0.56% of loans, at September 30, 2017, compared to $12.4 million, or 0.83% of loans, at December 31, 2016.

Loans held for sale, carried at lower of cost or market, were $196,000 at September 30, 2017, compared to $165,000 at December 31, 2016.  Loans held for sale, carried at fair value, were $84.3 million at September 30, 2017, compared to $62.6 million at December 31, 2016. OLCB had no loans held for sale at the time of acquisition.  The change was primarily attributable to the origination of permanent construction loans during the period.  These loans are not sold until construction of the residence is complete, which is usually within nine to ten months of origination.  Home Savings continues to sell a majority of its newly originated fixed rate mortgage loans into the secondary market as part of its risk management strategy and anticipates continuing to do so in the future.

Real estate owned and other repossessed assets decreased $634,000 to $1.1 million during the nine months ended September 30, 2017.  Real estate owned and other repossessed assets are recorded at the fair market value of the property less costs to sell. Appraisals are obtained at least annually on real estate properties that exceed $1.0 million in value. A valuation allowance may be established on any property to properly reflect the asset at fair value.  

Goodwill and other intangible assets increased $22.0 million during the first nine months of 2017, which was primarily due to the acquisition of OLCB.  

Bank Owned Life Insurance (BOLI) is maintained on select officers and employees of Home Savings whereby Home Savings is the beneficiary. BOLI is recorded at its cash surrender value, or the amount currently realizable. Increases in the Home Savings’ policy cash surrender value are tax exempt and death benefit proceeds received by Home Savings are tax-free. Income from these policies and changes in the cash surrender value are recorded in other income. There is no post-termination coverage, split dollar or other benefits provided to participants covered by the BOLI. Home Savings recognized $1.2 million as other non-interest income based on the change in cash value of the policies in the nine months ended September 30, 2017 compared to $1.1 million for the nine months ended September 30, 2016.

Total deposits increased $423.7 million from $1.5 billion at December 31, 2016, to $1.9 billion at September 30, 2017.  The increase in deposits is primarily the result of the $266.3 in deposits acquired in the OLCB transaction.  In addition, brokered certificates of deposit increased $80.1 million during the first nine months of 2017 from $76.5 million at December 31, 2016 to $156.6 million at September 30, 2017.  The remaining $77.3 million in balance change was attributable to organic growth.  All deposit types have shown increases as a result of the acquisition.  As of September 30, 2017, the Company had $113.5 million in public funds compared to $106.3 million in public funds at December 31, 2016.  No public funds were acquired in the merger.        

FHLB advances decreased from $390.8 million at December 31, 2016 to $328.3 million at September 30, 2017.  The change was primarily due to an increase in brokered certificates of deposit that were used to pay down FHLB advances.

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Shareholders’ equity increased $42.0 million to $291.8 million at September 30, 2017 from $249.8 million at December 31, 2016.  The increase is primarily due to the $25.8 million of stock that was issued as part of the purchase of OLCB.  In addition, the Company has earned $17.3 million during the first nine months of 2017 while paying out $5.0 million in common dividends.  A positive change in accumulated other comprehensive income of $3.1 million also contributed to the change in shareholders’ equity.

Book value per common share as of September 30, 2017 was $5.87 as compared to $5.36 per common share as of December 31, 2016.  The Company’s tangible book value per share increased from $5.32 per share at December 31, 2016 to $5.38 at September 30, 2017.  The increase in book value was due to the issuance of shares in the OLCB acquisition while the increase in tangible book value can be attributed to the earnings of the Company along with an improvement in accumulated other comprehensive income. Book value per share is calculated as total shareholders’ equity divided by the number of common shares outstanding. Tangible book value per share is calculated as total shareholders’ equity less goodwill and other intangible assets divided by the number of common shares outstanding.

Material Changes in Results of Operations for the Three Months Ended

September 30, 2017 and September 30, 2016

Net Income. United Community recognized net income for the three months ended September 30, 2017, of $7.6 million, or $0.15 per diluted common share compared to net income of $5.2 million for the three months ended September 30, 2016, or $0.11 per diluted share.  The acquisition of OLCB, the continued growth in earning assets and noninterest income along with a strong focus on expense control have all led to the growth in net income.

Net Interest Income. Net interest income was $20.5 million in the third quarter of 2017 up from the $15.8 million recorded in the third quarter of 2016.  The growth of interest earning assets, both organically and from the acquisition of OLCB, drove this increase along with a 38 basis point improvement in the yield on interest earning assets.  Net interest margin was 3.45% for the third quarter of 2017 compared to 3.25% in the third quarter of 2016.  The increase in the yield on interest earning assets was driven by an increase in yield on total securities of 21 basis points along with a 22 basis point increase in the yield on net loans.  The yield on securities improved primarily due to a change in mix toward higher yielding municipal securities.  The improvement in the yield on net loans was primarily due to the accretion of loan discounts recognized in the acquisition of OLCB along with an increase in market rates on floating and adjustable rate loans.

Interest income increased by $6.3 million in the third quarter of 2017 compared to the same period in 2016, to $24.0 million from $17.8 million. The increase is primarily a result of an increase in average net loans and loans held for sale from both the acquisition and organic growth along with accretion of loan discounts discussed above.  Average net loans increased $484.5 million in the third quarter compared to the same period in 2016. Interest income from net loans increased to $20.7 million for the quarter ended September 30, 2017 compared to $14.6 million for the same period in 2016.  Income from loans held for sale increased to $882,000 for the quarter ended September 30, 2017 compared to $482,000 for the quarter ended September 30, 2016.  

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Interest expense increased by $1.5 million in the third quarter of 2017 to $3.5 million compared to the same period in 2016. This increase was primarily due to a $346.3 million increase in average interest-bearing liabilities from the acquisition and growth over the previous twelve months along with a 22 basis point increase in the cost of interest-bearing liabilities.  The cost of average interest-bearing deposits increased 11 basis points to 57 basis points for the three months ended September 30, 2017 from 46 basis points for the three months ended September 30, 2016.  The cost of average borrowed funds increased to 1.45% for the quarter ending September 30, 2017 compared to 0.71% for the quarter ended September 30, 2016.

	For the Three Months Ended September 30,
	2017 vs. 2016
	Increase						Total
	(decrease) due to						increase
	Rate			Volume			(decrease)
	(Dollars in thousands)
Interest earning assets:
Loans	$	844		$	5,221		$	6,065
Loans held for sale		5			395			400
Securities:
Available for sale-taxable		79			(433	)		(354	)
Available for sale-nontaxable		25			97			122
Held to maturity-taxable		40			(82	)		(42	)
Held to maturity-nontaxable		14			(38	)		(24	)
Federal Home Loan Bank stock		60			13			73
Other interest earning assets		33			(1	)		32
Total interest earning assets	$	1,100		$	5,172		$	6,272
Interest bearing liabilities:
Interest bearing deposits:
Savings accounts	$	2		$	2		$	4
Checking accounts		174			56			230
Customer certificates of deposit		(49	)		255			206
Brokered certificates of deposit		3			394			397
Federal Home Loan Bank advances:
Long-term advances		64			5			69
Short-term advances		601			(16	)		585
Repurchase agreements and other		—			(1	)		(1	)
Total interest bearing liabilities	$	795		$	695			1,490
Change in net interest income							$	4,782

Provision for Loan Losses. A provision for loan losses is charged to income to bring the total allowance for loan losses to a level considered by management to be adequate, based on management’s evaluation of such factors as the delinquency status of loans, current economic conditions, the net realizable value of the underlying collateral, changes in the composition of the loan portfolio and prior loan loss experience. The Company recognized a loan loss provision of $721,000 in the third quarter of 2017, compared to $1.3 million in the third quarter of 2016.  Provision expense in the third quarter of 2017 was primarily driven by organic loan growth during the period.  

Noninterest Income. Non-interest income was $6.3 million in the third quarter of 2017 compared to $6.0 million in the third quarter of 2016.  Favorably affecting this change was the increased customer base due to the OLCB acquisition increasing various fee income including $449,000 in trust fees recognized during that time frame.  Offsetting the increase was a decline in mortgage banking income due to lower sales volumes compared to the prior year quarter.

Noninterest Expense. Non-interest expense increased to $15.5 million during the third quarter of 2017 compared to $13.0 million during the third quarter of 2016.  The increase is primarily due to the acquisition of OLCB.

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Income Taxes. During the three months ended September 30, 2017, the Company recognized tax expense of $3.1 million on pre-tax income of $10.6 million, compared to tax expense of $2.3 million on pre-tax income of $7.4 million for the three months ended September 30, 2016.  The increased pre-tax income discussed in the narratives above was the primary reason for the increased income tax along with a lower effective tax rate compared to the same quarter a year ago.  The lower effective tax rate is due primarily to nontaxable municipal securities income, BOLI income, tax benefits derived from vesting of restricted stock above grant price, stock option exercises and affordable housing tax credits. See Note 14 to the consolidated financial statements for additional information regarding the composition of income taxes.

Material Changes in Results of Operations for the Nine Months Ended

September 30, 2017 and September 30, 2016

Net Income. United Community recognized net income for the nine months ended September 30, 2017, of $17.3 million, or $0.35 per diluted common share compared to net income of $13.8 million for the nine months ended September 30, 2016, or $0.29 per diluted share.  The increase is primarily the result of the acquisition of OLCB and continued growth in earning assets and fee income lines of business.  Acquisition expenses, net of tax, of $3.3 million related to acquisition activities in the first quarter of 2017 reduced net income and diluted earnings per common share.  

Net Interest Income. Net interest income was $59.5 million in the first nine months of 2017 up from the $46.0 million recorded in the first nine months of 2016.  The growth of interest earning assets, both organically and from the acquisition of OLCB, drove this increase along with a 25 basis point improvement in the yield on interest earning assets.  Net interest margin was 3.40% for the first nine months of 2017 compared to 3.23% for the first nine months of 2016.  The increase in the yield on interest earning assets was driven by an increase in yield on total securities of 15 basis points along with a 12 basis point increase in the yield on net loans.  The yield on securities improved primarily due to a change in mix toward higher yielding municipal securities.  The improvement in the yield on net loans was primarily due to the accretion of loan discounts recognized in the acquisition of OLCB along with an increase in market rates on floating and adjustable rate loans.

Interest income increased by $16.4 million in the first nine months of 2017 compared to the same period in 2016, to $68.7 million from $52.2 million. The increase is primarily a result of an increase in average net loans and loans held for sale from both the acquisition and organic growth.  Average total loans, net increased $489.9 million during the first nine months of 2017 compared to the same period in 2016. Interest income from loans increased to $58.3 million for the first nine months of 2017 compared to $42.6 million for the same period in 2016.  Income from loans held for sale increased to $2.4 million for the nine months ended September 30, 2017 compared to $1.2 million for the nine months ended September 30, 2016.  

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Interest expense increased by $2.9 million in the first nine months of 2017 to $9.2 million compared to the same period in 2016. This increase was primarily due to a $357.8 million increase in average interest-bearing liabilities from the acquisition and growth over the previous twelve months.  The cost of average interest-bearing deposits increased 2 basis points to 51 basis points for the nine months ended September 30, 2017 from 49 basis points at September 30, 2016.  Average borrowed funds increased 48 basis for the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016.

	For the Nine Months Ended September 30,
	2017 vs. 2016
	Increase						Total
	(decrease) due to						increase
	Rate			Volume			(decrease)
	(Dollars in thousands)
Interest earning assets:
Loans	$	1,273		$	14,376		$	15,649
Loans held for sale		70			1,168			1,238
Securities:
Available for sale-taxable		47			(1,036	)		(989	)
Available for sale-nontaxable		29			704			733
Held to maturity-taxable		24			(248	)		(224	)
Held to maturity-nontaxable		14			(44	)		(30	)
Federal Home Loan Bank stock		117			35			152
Other interest earning assets		92			30			122
Total interest earning assets	$	1,666		$	14,985		$	16,651
Interest bearing liabilities:
Interest bearing deposits:
Savings accounts	$	(21	)	$	7		$	(14	)
Checking accounts		336			184			520
Customer certificates of deposit		1,751			(1,812	)		(61	)
Brokered certificates of deposit		2			890			892
Federal Home Loan Bank advances:
Long-term advances		176			15			191
Short-term advances		1,232			157			1,389
Repurchase agreements and other		(1	)		5			4
Total interest bearing liabilities	$	3,475		$	(554	)		2,921
Change in net interest income							$	13,730

Provision for Loan Losses. The Company recognized a loan loss provision of $3.0 million in the first nine months of 2017, compared to $3.9 million in the first nine months of 2016.  Provision expense in the last year has primarily been driven by organic loan growth.  

Noninterest Income. Non-interest income was $18.8 million in the first nine months of 2017 compared to $16.4 million in the first nine months of 2016.  Favorably affecting this change was the increased customer base due to the OLCB acquisition increasing various fee income for eight months including $1.2 million in trust fees recognized during that time frame. The Company also a had minimal negative change in the valuation adjustment of the mortgage serving asset in the first nine months of 2017, compared with a negative adjustment of $702,000 in the first nine months of 2016.

Noninterest Expense. Non-interest expense increased to $50.9 million during the first nine months of 2017 compared to $38.3 million during the first nine months of 2016.  Excluding the $5.0 million of acquisition related expense, non-interest expense was up $7.6 million during the first nine months of 2017 compared to the first nine months of 2016.  The increase is primarily due to the acquisition of OLCB.    

Income Taxes. During the nine months ended September 30, 2017, the Company recognized tax expense of $7.0 million on pre-tax income of $24.3 million, compared to tax expense of $6.4 million on pre-tax income of $20.2 million for the nine months ended September 30, 2016.  The lower effective tax rate is due primarily to nontaxable municipal securities income, BOLI income, tax benefits derived from vesting of restricted stock above grant price, stock option exercises and affordable housing tax credits. See Note 14 to the consolidated financial statements for additional information regarding the composition of income taxes.

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Liquidity

United Community's liquidity, primarily represented by cash and cash equivalents, is a result of its operating, investing and financing activities.

The principal sources of funds for United Community are deposits, loan repayments, maturities of securities, borrowings from financial institutions, repurchase agreements and other funds provided by operations.  Home Savings also has the ability to borrow from the Federal Home Loan Bank.  While scheduled loan repayments and maturing investments are relatively predictable, deposit flows and early loan prepayments are more influenced by interest rates, general economic conditions and competition.  Investments in liquid assets maintained by United Community and Home Savings are based upon management's assessment of (1) the need for funds, (2) expected deposit flows, (3) yields available on short-term liquid assets, and (4) objectives of the asset and liability management program.  At September 30, 2017, approximately $440.6 million of Home Savings’ certificates of deposit were expected to mature within one year.  Based on past experience and Home Savings’ prevailing pricing strategies, management believes that a substantial percentage of such certificates will be renewed with Home Savings at maturity, although there can be no assurance that this will occur.

Home Savings’ Asset/Liability Committee (ALCO) is responsible for establishing and monitoring liquidity guidelines, policies and procedures.  ALCO uses a variety of methods to monitor the liquidity position of Home Savings including a liquidity analysis that measures potential sources and uses of funds over future time periods out to one year.  ALCO also performs contingency funding analyses to determine Home Savings’ ability to meet potential liquidity needs under stress scenarios that cover varying time horizons ranging from immediate to long-term.

At September 30, 2017, United Community had total on-hand liquidity, defined as cash and cash equivalents, unencumbered securities and additional FHLB borrowing capacity, of $500.6 million.

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UNITED COMMUNITY FINANCIAL CORP.

AVERAGE BALANCE SHEETS

The following table presents the total dollar amounts of interest income and interest expense on the indicated amounts of average interest-earning assets or interest-bearing liabilities, together with the weighted average interest rates for the three months ended September 30, 2017 and 2016. Average balance calculations were based on daily balances.

	For the Three Months Ended September 30,
	2017							2016
	Average		Interest					Average		Interest
	outstanding		earned/		Yield/			outstanding		earned/		Yield/
	balance		paid		rate			balance		paid		rate
	(Dollars in thousands)
Interest earning assets:
Net loans (1)	$	1,906,786	$	20,699		4.34	%	$	1,422,294	$	14,634		4.12	%
Loans held for sale		88,854		882		3.97	%		49,095		482		3.93	%
Total loans, net		1,995,640		21,581		4.33	%		1,471,389		15,116		4.11	%
Securities:
Available for sale-taxable		224,927		1,276		2.27	%		300,522		1,630		2.17	%
Available for sale-nontaxable (2)		59,057		611		4.14	%		49,489		489		3.95	%
Held to maturity-taxable		77,947		424		2.18	%		92,077		466		2.02	%
Held to maturity-nontaxable (2)		9,239		76		3.29	%		13,563		100		2.95	%
Total securities		371,170		2,387		2.57	%		455,651		2,685		2.36	%
Federal Home Loan Bank stock		19,324		253		5.24	%		18,068		180		3.98	%
Other interest earning assets		18,881		51		1.08	%		20,028		19		0.38	%
Total interest earning assets		2,405,015		24,272		4.04	%		1,965,136		18,000		3.66	%
Non-interest earning assets		185,773							132,922
Total assets	$	2,590,788						$	2,098,058
Interest bearing liabilities:
Deposits:
Checking accounts	$	591,982		468		0.32	%	$	491,553		238		0.19	%
Savings accounts		308,829		28		0.04	%		290,998		24		0.03	%
Certificates of deposit
Customer certificates of deposit		526,697		1,333		1.01	%		425,307		1,127		1.06	%
Brokered certificates of deposit		135,956		397		1.17	%		—		—		—	%
Total certificates of deposit		662,653		1,730		1.04	%		425,307		1,127		1.06	%
Total interest bearing deposits		1,563,464		2,226		0.57	%		1,207,858		1,389		0.46	%
Federal Home Loan Bank advances
Long-term advances		48,212		388		3.22	%		47,432		319		2.69	%
Short-term advances		310,152		927		1.20	%		326,250		342		0.42	%
Total Federal Home Loan Bank advances		358,364		1,315		1.47	%		373,682		661		0.71	%
Repurchase agreements and other		6,483		4		0.25	%		520		5		3.85	%
Total borrowed funds		364,847		1,319		1.45	%		374,202		666		0.71	%
Total interest bearing liabilities	$	1,928,311		3,545		0.74	%	$	1,582,060		2,055		0.52	%
Non-interest bearing liabilities
Noninterest-bearing deposits		337,067							242,310
Other noninterest-bearing liabilities		35,577							27,769
Total noninterest bearing liabilities		372,644							270,079
Total liabilities	$	2,300,955						$	1,852,139
Shareholders’ equity		289,834							245,919
Total liabilities and equity	$	2,590,789						$	2,098,058
Net interest income and interest rate spread			$	20,727		3.30	%			$	15,945		3.14	%
Net interest margin						3.45	%						3.25	%
Average interest earning assets to average interest    bearing liabilities						124.72	%						124.21	%

(1) Nonaccrual loans are included in the average balance at a yield of 0%.

(2) Yields are on a fully taxable equivalent basis.

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The following table presents the total dollar amounts of interest income and interest expense on the indicated amounts of average interest-earning assets or interest-bearing liabilities, together with the weighted average interest rates for the nine months ended September 30, 2017 and 2016. Average balance calculations were based on daily balances.

	For the Nine Months Ended September 30,
	2017							2016
	Average		Interest					Average		Interest
	outstanding		earned/		Yield/			outstanding		earned/		Yield/
	balance		paid		rate			balance		paid		rate
	(Dollars in thousands)
Interest earning assets:
Net loans (1)	$	1,826,175	$	58,271		4.25	%	$	1,374,588	$	42,622		4.13	%
Loans held for sale		79,050		2,415		4.07	%		40,689		1,177		3.86	%
Total loans, net		1,905,225		60,686		4.25	%		1,415,277		43,799		4.13	%
Securities:
Available for sale-taxable		256,742		4,357		2.26	%		317,752		5,346		2.24	%
Available for sale-nontaxable (2)		59,208		1,851		4.17	%		36,681		1,118		4.06	%
Held to maturity-taxable		80,785		1,343		2.22	%		95,671		1,567		2.18	%
Held to maturity-nontaxable (2)		10,499		249		3.16	%		12,308		279		3.02	%
Total securities		407,234		7,800		2.55	%		462,412		8,310		2.40	%
Federal Home Loan Bank stock		19,186		694		4.82	%		18,068		542		4.00	%
Other interest earning assets		27,934		171		0.82	%		19,144		49		0.34	%
Total interest earning assets		2,359,579		69,351		3.92	%		1,914,901		52,700		3.67	%
Non-interest earning assets		177,643							133,202
Total assets	$	2,537,222						$	2,048,103
Interest bearing liabilities:
Deposits:
Checking accounts	$	596,820		1,285		0.29	%	$	492,698		765		0.21	%
Savings accounts		306,422		85		0.04	%		288,911		99		0.05	%
Certificates of deposit
Customer certificates of deposit		500,139		3,572		0.95	%		435,569		3,633		1.11	%
Brokered certificates of deposit		122,940		892		0.97	%		—		—		—	%
Total certificates of deposit		623,079		4,464		0.96	%		435,569		3,633		1.11	%
Total interest bearing deposits		1,526,321		5,834		0.51	%		1,217,178		4,497		0.49	%
Federal Home Loan Bank advances
Long-term advances		48,019		1,106		3.07	%		47,238		915		2.58	%
Short-term advances		314,467		2,228		0.94	%		270,193		839		0.41	%
Total Federal Home Loan Bank advances		362,486		3,334		1.23	%		317,431		1,754		0.74	%
Repurchase agreements and other		4,079		20		0.65	%		526		16		4.06	%
Total borrowed funds		366,565		3,354		1.22	%		317,957		1,770		0.74	%
Total interest bearing liabilities	$	1,892,886		9,188		0.65	%	$	1,535,135		6,267		0.54	%
Non-interest bearing liabilities
Noninterest-bearing deposits		326,151							237,281
Other noninterest-bearing liabilities		36,019							28,279
Total noninterest bearing liabilities		362,170							265,560
Total liabilities	$	2,255,056						$	1,800,695
Shareholders’ equity		282,166							247,408
Total liabilities and equity	$	2,537,222						$	2,048,103
Net interest income and interest rate spread			$	60,163		3.27	%			$	46,433		3.13	%
Net interest margin						3.40	%						3.23	%
Average interest earning assets to average interest    bearing liabilities						124.66	%						124.74	%

(1) Nonaccrual loans are included in the average balance at a yield of 0%.

(2) Yields are on a fully taxable equivalent basis.

68

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk.

Qualitative Aspects of Market Risk. The principal market risk affecting United Community is interest rate risk. United Community is subject to interest rate risk to the extent that its interest-earning assets reprice differently than its interest-bearing liabilities. Interest rate risk is defined as the sensitivity of United Community’s earnings and net asset values to changes in interest rates. As part of its efforts to monitor and manage the interest rate risk, the Board of Directors of Home Savings has adopted an interest rate risk policy that requires the Home Savings Board to review quarterly reports related to interest rate risk and to annually set exposure limits for Home Savings as a guide to management in setting and implementing day to day operating strategies.

Quantitative Aspects of Market Risk. As part of its interest rate risk analysis, Home Savings uses the net portfolio value (NPV) and net interest income methodology. Generally, NPV is the discounted present value of the difference between incoming cash flows on interest-earning and other assets and outgoing cash flows on interest-bearing and other liabilities. The application of the methodology attempts to quantify interest rate risk as the change in the NPV and net interest income that would result from various levels of theoretical basis point changes in market interest rates.

Home Savings uses an NPV and earnings simulation model prepared internally as its primary method to identify and manage its interest rate risk profile. The model is based on actual cash flows and repricing characteristics for all financial instruments and incorporates market-based assumptions regarding the impact of changing interest rates on future volumes and the prepayment rate of applicable financial instruments. Assumptions based on the historical behavior of deposit rates and balances in relation to changes in interest rates also are incorporated into the model. These assumptions inherently are uncertain and, as a result, the model cannot measure precisely NPV or net interest income or precisely predict the impact of fluctuations in interest rates on net interest rate changes as well as changes in market conditions and management strategies.

Presented below are analyses of Home Savings’ interest rate risk as measured by changes in NPV and net interest income for instantaneous and sustained parallel shifts of 100 basis point increments in market interest rates.  As noted, for the quarter ended September 30, 2017 and the year ended December 31, 2016, the percentage changes fall within the policy limits set by the Board of Directors of Home Savings as the minimum NPV ratio and the maximum change in interest income the Home Savings Board deems advisable in the event of various changes in interest rates. See the table below for Board adopted policy limits.

Quarter Ended September 30, 2017
NPV as % of portfolio value of assets													Next 12 months net interest income
													(Dollars in thousands)
Change in rates (Basis points)	NPV Ratio			Internal policy limitations			Change in %			Internal policy limitations on NPV Change			$ Change			Internal policy limitations			% Change
400		11.25	%		6.00	%		(0.66	)%		-25.00	%	$	(2,763	)		(18.00	)%		(3.39	)%
300		11.64	%		6.00	%		(0.27	)%		-20.00	%		(1,879	)		(13.00	)%		(2.31	)%
200		12.00	%		7.00	%		0.08	%		-15.00	%		(1,020	)		(8.00	)%		(1.25	)%
100		12.11	%		7.00	%		0.20	%		-10.00	%		(545	)		(3.00	)%		(0.67	)%
Static		11.91	%		9.00	%		—	%		0.00	%		—			—	%		—	%
-100		11.23	%		7.00	%		(0.68	)%		-15.00	%		(1,864	)		(5.00	)%		(2.29	)%

Year Ended December 31, 2016
NPV as % of portfolio value of assets													Next 12 months net interest income
													(Dollars in thousands)
Change in rates (Basis points)	NPV Ratio			Internal policy limitations			Change in %			Internal policy limitations on NPV Change			$ Change			Internal policy limitations			% Change
400		10.04	%		6.00	%		(2.07	)%		-30.00	%	$	(8,716	)		(20.00	)%		(13.27	)%
300		10.73	%		6.00	%		(1.39	)%		-25.00	%		(6,903	)		(15.00	)%		(10.51	)%
200		11.35	%		7.00	%		(0.77	)%		-20.00	%		(4,198	)		(10.00	)%		(6.39	)%
100		11.88	%		7.00	%		(0.24	)%		-15.00	%		(1,726	)		(5.00	)%		(2.63	)%
Static		12.12	%		9.00	%		—	%		0.00	%		—			—	%		—	%

Due to a low interest rate environment, it was not meaningful to calculate results for a drop in interest rates at December 31, 2016.  For the quarter ended September 30, 2017, it was only meaningful to calculate a drop of 100 basis points.  

69

As with any method of measuring interest rate risk, certain shortcomings are inherent in the above approach. For example, although certain assets and liabilities may have similar maturities or periods of repricing, they may react in different degrees to changes in market interest rates. Also, the interest rates on certain types of assets and liabilities may fluctuate in advance of changes in market interest rates, while interest rates on other types may lag behind changes in market rates. Further, in the event of a change in interest rates, expected rates of prepayment on loans and early withdrawal levels from certificates of deposit may deviate significantly from those assumed in making risk calculations.

Potential Impact of Changes in Interest Rates. Home Savings’ profitability depends to a large extent on its net interest income, which is the difference between interest income from loans and securities and interest expense on deposits and borrowings. Like most financial institutions, Home Savings’ short-term interest income and interest expense are affected significantly by changes in market interest rates and other economic factors beyond its control.

ITEM 4. Controls and Procedures.

An evaluation was carried out by United Community’s management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of United Community’s disclosure controls and procedures (as defined in Rules 13a-15(e)/15d-15(e) of the Securities Exchange Act of 1934 (the Exchange Act)) as of September 30, 2017. Based on their evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that United Community’s disclosure controls and procedures as of September 30, 2017, were effective in ensuring that information required to be disclosed in the reports that United Community files or submits under the Exchange Act was recorded, processed, summarized and reported on a timely basis, including those controls and procedures designed to ensure that such information is accumulated and communicated to management, including United Community’s Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure. During the quarter ended September 30, 2017, there were no changes in United Community’s internal control over financial reporting that have materially affected or are reasonably likely to materially affect United Community’s internal control over financial reporting.

70

PART II. OTHER INFORMATION

UNITED COMMUNITY FINANCIAL CORP.

ITEM 1. Legal Proceedings.

United Community and its subsidiaries are parties to litigation arising in the normal course of business. While it is impossible to determine the ultimate resolution of these contingent matters, management believes any resulting liability would not have a material effect upon United Community’s financial statements.

ITEM 1A. Risk Factors.

There have been no material changes in United Community’s risk factors as outlined in United Community’s Annual Report on Form 10-K for the year ended December 31, 2016.  The risk factors described in the Annual Report on Form 10-K are not the only risks facing the Company.  Additional risks and uncertainties not currently known to the Company or that management currently deems to be immaterial also may materially adversely affect the Company’s business, financial condition and/or operating results.  Moreover, the Company undertakes no obligation and disclaims any intention to publish revised information or updates to forward-looking statements contained in such risk factors or in any other statement made at any time by the Company or any of its directors, officers, employees or other representatives, unless and until any such revisions or updates are expressly required to be disclosed by securities laws or regulations.

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

(a) None.

(b) Not applicable.

(c) The following table provides information concerning purchases of United Community’s common shares made by United Community during the three months ended September 30, 2017:

Period	Total number of common sharespurchased		Average price paid per common share		Total number of common shares purchased as part of publicly announced plans		Maximum number of shares that may yet be purchased under the plan(2)
July 1 through July 31, 2017		—	$	—		—		1,683,830
August 1 through August 31, 2017		—		—		—		1,683,830
September 1 through September 30,    2017(1)		10,315		9.37		—		1,683,830
Total		10,315	$	9.37		—		1,683,830

⁽¹⁾ In September 2017, United Community purchased 195 shares at $8.78 per share from employees for the payment of employment taxes.  Additionally during September 2017, United Community purchased 10,120 shares at $9.38 per share from an employee for the exercise of stock options in a stock-swap transaction.  The purchase of these shares was not part of United Community’s share repurchase program.  

⁽²⁾ United Community’s stock repurchase program was publically announced on April 28, 2016 in a press release, a copy of which can be found in United Community’s Form 8-K filed on May 2, 2016.  The program permits the repurchase of up to 2,500,000 common shares.  There is no expiration date for the program.

ITEM 3. Defaults Upon Senior Securities

Not Applicable

ITEM 4. Mine Safety Disclosures

Not Applicable

ITEM 5. Other Information

(a) None.

(b) None.

71

ITEM 6. Exhibits.

Exhibit Number	Description
2.1	Agreement and Plan of Merger by and among United Community Financial Corp., The Home Savings and Loan Company of Youngstown, Ohio, Ohio Legacy Corp. and Premier Bank & Trust, dated September 8, 2016, incorporated by reference to Exhibit 2.1 in the Third Quarter Form 10-Q filed by United Community on November 8, 2016 with the SEC, film number 161981248.
3.1	Articles of Incorporation (reflecting all amendments filed with the Ohio Secretary of State) [for purposes of SEC reporting compliance only – not filed with the Ohio Secretary of State], incorporated by reference to Exhibit 3.1 in the Second Quarter 2016 Form 10-Q filed by United Community on August 5, 2016 with the SEC, film number 161811451.
3.2	Amended Code of Regulations, incorporated by reference to Exhibit 3.2 in the 1998 Form 10-K filed by United Community on March 31, 1999 with the SEC, film number 99582343.
31.1	Section 302 Certification by Chief Executive Officer
31.2	Section 302 Certification by Chief Financial Officer
32	Section 1350 Certifications by Chief Executive Officer and Chief Financial Officer
101	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Financial Condition, (ii) the Consolidated Statements of Operations and Comprehensive Income (Loss), (iii) the Consolidated Statements of Changes in Shareholders’ Equity, (iv) the Consolidated Statements of Cash Flows and (v) the Notes to Unaudited Consolidated Financial Statements.

72

UNITED COMMUNITY FINANCIAL CORP.

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.

	UNITED COMMUNITY FINANCIAL CORP.
Date: November 9, 2017	/s/ Gary M. Small
	Gary M. Small President and Chief Executive Officer
	(Principal Executive Officer)
Date: November 9, 2017	/s/ Timothy W. Esson
	Timothy W. Esson Chief Financial Officer
	(Principal Financial Officer)

73

EX-31.1

Exhibit 31.1

RULE 13a-14(a)/15d-14(a) CERTIFICATION

I, Gary M. Small, certify that:

1) I have reviewed this report on Form 10-Q of United Community 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(s) 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; and

5) The registrant’s other certifying officer(s) 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 the 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.

/S/ Gary M. Small

Gary M. Small

President and Chief Executive Officer

(Principal Executive Officer)

November 9, 2017

EX-31.2

Exhibit 31.2

RULE 13a-14(a)/15d-14(a) CERTIFICATION

I, Timothy W. Esson, certify that:

1) I have reviewed this report on Form 10-Q of United Community 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(s) 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; and

5) The registrant’s other certifying officer(s) 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 the 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.

/S/ Timothy W. Esson

Timothy W. Esson

Chief Financial Officer

(Principal Financial Officer)

November 9, 2017

EX-32

Exhibit 32

UNITED COMMUNITY FINANCIAL CORP.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of United Community Financial Corp. (the “Company”) on Form 10-Q for the period ending September 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), we certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 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.

/S/ Gary M. Small	/S/ Timothy W. Esson
Gary M. Small President and Chief Executive Officer	Timothy W. Esson Chief Financial Officer
(Principal Executive Officer)	(Principal Financial Officer)
November 9, 2017	November 9, 2017

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	9 Months Ended
	Sep. 30, 2017	Oct. 31, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Trading Symbol	UCFC
Entity Registrant Name	UNITED COMMUNITY FINANCIAL CORP
Entity Central Index Key	0000707886
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		49,770,126

XML

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets:
Cash and deposits with banks	$ 29,600	$ 27,690
Federal funds sold	8,410	18,197
Total cash and cash equivalents	38,010	45,887
Securities:
Available for sale, at fair value	274,822	343,284
Held to maturity, (fair value of $85,024 and $96,150, respectively)	85,549	97,519
Loans held for sale, at lower of cost or market	196	165
Loans held for sale, at fair value	84,349	62,593
Loans, net of allowance for loan losses of $20,555 and $19,087	1,947,695	1,503,577
Federal Home Loan Bank stock, at cost	19,324	18,068
Premises and equipment, net	22,132	20,963
Accrued interest receivable	7,253	6,900
Real estate owned and other repossessed assets, net	1,143	1,777
Goodwill	19,488	208
Cash surrender value of life insurance	62,050	55,861
Other assets	36,247	33,182
Total assets	2,602,365	2,191,345
Deposits:
Non-interest bearing	343,146	256,918
Interest bearing
Customer deposits	1,438,944	1,181,557
Brokered deposits	156,609	76,516
Total interest bearing deposits	1,595,553	1,258,073
Total deposits	1,938,699	1,514,991
Federal Home Loan Bank advances
Long-term Federal Home Loan Bank advances	48,341	47,756
Short-term Federal Home Loan Bank advances	280,000	343,000
Total Federal Home Loan Bank advances	328,341	390,756
Repurchase agreements and other	10,191	512
Total borrowed funds	338,532	391,268
Advance payments by borrowers for taxes and insurance	16,048	23,812
Accrued interest payable	722	145
Accrued expenses and other liabilities	16,513	11,323
Total liabilities	2,310,514	1,941,539
Shareholders' Equity:
Preferred stock-no par value; 1,000,000 shares authorized and no shares issued and outstanding
Common stock-no par value; 499,000,000 shares authorized; 54,138,910 shares issued and 49,758,487 and 46,581,370 shares, respectively, outstanding	177,460	174,360
Retained earnings	164,988	152,675
Accumulated other comprehensive income (loss)	(17,929)	(21,040)
Treasury stock, at cost, 4,380,423 and 7,557,540 shares, respectively	(32,668)	(56,189)
Total shareholders’ equity	291,851	249,806
Total liabilities and shareholders’ equity	2,602,365	2,191,345
Customer list intangible [Member]
Securities:
Intangible assets	2,090	1,356
Core deposit intangibles [Member]
Securities:
Intangible assets	$ 2,017	$ 5

XML

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Held to maturity, Fair Value	$ 85,024	$ 96,150
Allowance for loan losses	$ 20,555	$ 19,087
Preferred stock, par value
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value
Common stock, shares authorized	499,000,000	499,000,000
Common stock, shares issued	54,138,910	54,138,910
Common stock, shares outstanding	49,758,487	46,581,370
Treasury stock, shares	4,380,423	7,557,540

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Interest income
Loans	$ 20,697	$ 14,633	$ 58,266	$ 42,618
Loans held for sale	882	482	2,415	1,177
Securities available for sale, nontaxable	416	339	1,252	752
Securities available for sale, taxable	1,276	1,630	4,357	5,346
Securities held to maturity, nontaxable	49	66	163	183
Securities held to maturity, taxable	424	466	1,343	1,567
Federal Home Loan Bank stock dividends	253	180	694	542
Other interest earning assets	51	19	171	49
Total interest income	24,048	17,815	68,661	52,234
Interest expense
Deposits	2,226	1,389	5,834	4,497
Federal Home Loan Bank advances	1,315	661	3,334	1,754
Repurchase agreements and other	4	5	20	16
Total interest expense	3,545	2,055	9,188	6,267
Net interest income	20,503	15,760	59,473	45,967
Provision for loan losses	721	1,344	3,038	3,894
Net interest income after provision for loan losses	19,782	14,416	56,435	42,073
Non-interest income
Insurance agency income	509	451	1,454	1,269
Brokerage income	271	337	894	1,033
Deposit related fees	1,499	1,418	4,200	4,106
Mortgage servicing fees	760	715	2,225	2,114
Mortgage servicing rights valuation	(10)	25	(15)	(702)
Mortgage servicing rights amortization	(491)	(525)	(1,426)	(1,560)
Other service fees	21	43	83	108
Net gains:
Securities available for sale (includes $236, $218, $566 and $604, respectively, accumulated other comprehensive income reclassifications for unrealized net gains on available for sale securities)	236	218	566	604
Mortgage banking income	1,688	1,957	5,128	5,208
Real estate owned and other repossessed assets, net	(73)		(143)	(76)
Debit/credit card fees	971	915	3,220	2,916
Trust fees	449		1,151
Other income	475	449	1,442	1,421
Total non-interest income	6,305	6,003	18,779	16,441
Non-interest expense
Salaries and employee benefits (includes $0, $(445), $0 and $(1,001), respectively, accumulated other comprehensive income reclassifications from prior service credit on postretirement plan).	8,736	6,950	26,460	21,224
Occupancy	1,013	847	2,920	2,564
Equipment and data processing	2,303	1,926	6,688	5,648
Financial institutions tax	348	411	1,348	1,284
Advertising	285	290	674	638
Amortization of intangible assets	113	72	308	95
FDIC insurance premiums	301	155	829	768
Other insurance premiums	115	89	336	251
Legal and consulting fees	156	211	569	622
Other professional fees	666	341	1,606	762
Real estate owned and other repossessed asset expenses	33	41	118	190
Acquisition costs			4,962
Other expenses	1,395	1,645	4,112	4,256
Total non-interest expenses	15,464	12,978	50,930	38,302
Income before income taxes	10,623	7,441	24,284	20,212
Income tax expense (includes $83, $232, $198 and $561 income tax expense from reclassification items)	3,067	2,288	7,001	6,409
Net income	7,556	5,153	17,283	13,803
Other comprehensive income
Unrealized gain (loss) on securities, available for sale, net of reclassifications and tax of $262, $(737), $1,624 and $5,117, respectively	486	(1,369)	3,013	9,502
Accretion of unrealized losses on securities transferred from available for sale to held to maturity, net of tax of $18, $25, $53 and $63, respectively	33	47	98	118
Accretion of unrecognized actuarial gains and amortization of prior service credit on postretirement plan, net of tax of $0, $(156), $0 and $(350), respectively recognized in net income		(289)		(651)
Total other comprehensive income (loss)	519	(1,611)	3,111	8,969
Comprehensive income	$ 8,075	$ 3,542	$ 20,394	$ 22,772
Earnings per share
Basic	$ 0.15	$ 0.11	$ 0.35	$ 0.29
Diluted	$ 0.15	$ 0.11	$ 0.35	$ 0.29

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Accumulated other comprehensive income	$ 236	$ 218	$ 566	$ 604
Accumulated other comprehensive income reclassification from prior service credit on postretirement plan	0	(445)	0	(1,001)
Income tax expense from reclassification items	83	232	198	561
Unrealized gain on securities available for sale, net of reclassifications, tax	262	(737)	1,624	5,117
Accretion of unrealized losses on securities transferred from available for sale to held to maturity, tax	18	25	53	63
Accretion of unrecognized actuarial gains and amortization of prior service credit on postretirement plan, tax	$ 0	$ (156)	$ 0	$ (350)

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CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Ohio Legacy Corp. [Member]	James & Sons Insurance [Member]	Common Stock [Member]	Common Stock [Member] Ohio Legacy Corp. [Member]	Common Stock [Member] James & Sons Insurance [Member]	Retained Earnings [Member]	Retained Earnings [Member] James & Sons Insurance [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]	Treasury Stock [Member] Ohio Legacy Corp. [Member]	Treasury Stock [Member] James & Sons Insurance [Member]
Balance at Dec. 31, 2015	$ 244,245			$ 174,304			$ 140,819		$ (19,220)	$ (51,658)
Balance, shares at Dec. 31, 2015				47,517,644
Net income	13,803						13,803
Other comprehensive income	8,969								8,969
Stock option exercises, value	462						(782)			1,244
Stock option exercises, shares				165,405
Stock option expense	8			$ 8
Restricted stock grants, value				$ (1,157)			(328)			1,485
Restricted stock grants, shares				192,874
Restricted stock expense	716			$ 716
Restricted stock forfeitures, value				$ 13			14			(27)
Restricted stock forfeitures, shares				(2,928)
Purchase of shares, value			$ 1,547					$ (501)				$ 2,048
Purchase of shares, shares						262,705
Cash dividend payments	(3,776)						(3,776)
Treasury stock purchases, value	(9,571)									(9,571)
Treasury stock purchases, shares				(1,593,312)
Balance at Sep. 30, 2016	256,403			$ 173,884			149,249		(10,251)	(56,479)
Balance, shares at Sep. 30, 2016				46,542,388
Balance at Jun. 30, 2016									(8,640)
Net income	5,153
Other comprehensive income	(1,611)
Balance at Sep. 30, 2016	256,403			$ 173,884			149,249		(10,251)	(56,479)
Balance, shares at Sep. 30, 2016				46,542,388
Balance at Dec. 31, 2016	249,806			$ 174,360			152,675		(21,040)	(56,189)
Balance, shares at Dec. 31, 2016				46,581,370
Net income	17,283						17,283
Other comprehensive income	3,111								3,111
Stock option exercises, value	$ 216			$ (381)						597
Stock option exercises, shares	80,085			80,085
Stock option expense	$ 1			$ 1
Restricted stock grants, value				$ (564)						564
Restricted stock grants, shares				75,875
Restricted stock expense	696			$ 696
Vesting of Long-term Incentive Plan, value	597			$ 87						510
Vesting of Long-term Incentive Plan, shares				68,783
Purchase of shares, value		$ 25,816			$ 3,261						$ 22,555
Purchase of shares, shares					3,033,604
Cash dividend payments	(4,970)						(4,970)
Treasury stock purchases, value	(705)									(705)
Treasury stock purchases, shares				(81,230)
Balance at Sep. 30, 2017	291,851			$ 177,460			164,988		(17,929)	(32,668)
Balance, shares at Sep. 30, 2017				49,758,487
Balance at Jun. 30, 2017									(18,448)
Net income	7,556
Other comprehensive income	519
Balance at Sep. 30, 2017	$ 291,851			$ 177,460			$ 164,988		$ (17,929)	$ (32,668)
Balance, shares at Sep. 30, 2017				49,758,487

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CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Statement Of Stockholders Equity [Abstract]
Cash dividend payments, per share	$ 0.10	$ 0.08

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash Flows from Operating Activities
Net income	$ 17,283,000	$ 13,803,000
Adjustments to reconcile net income to net cash provided by operating activities
Provision for loan losses	3,038,000	3,894,000
Mortgage banking income	(1,140,000)	(3,003,000)
Changes in fair value on loans held for sale	(3,988,000)	(2,205,000)
Net losses on real estate owned and other repossessed assets sold	143,000	76,000
Net gain on available for sale securities sold	(566,000)	(604,000)
Net gain on other assets sold		(2,000)
Amortization of premiums and accretion of discounts	3,169,000	5,320,000
Depreciation and amortization	2,018,000	1,729,000
Net change in interest receivable	326,000	(88,000)
Net change in interest payable	506,000	64,000
Net change in prepaid and other assets	2,107,000	(3,040,000)
Net change in other liabilities	3,956,000	2,570,000
Stock based compensation	697,000	724,000
Net principal disbursed on loans originated for sale	(194,232,000)	(214,201,000)
Proceeds from sale of loans held for sale	203,676,000	192,994,000
Net change in deferred tax assets	2,047,000	5,707,000
Cash surrender value of life insurance	(1,189,000)	(1,108,000)
Tax benefit recognized on stock based compensation	(300,000)
Net change in interest rate caps		3,000
Net cash from operating activities	37,551,000	2,633,000
Cash Flows from Investing Activities
Proceeds from the principal repayments and maturities of securities available for sale	19,164,000	21,896,000
Proceeds from the principal repayments and maturities of securities held to maturity	11,625,000	10,270,000
Proceeds from the sale of securities available for sale	62,906,000	33,702,000
Proceeds from the sale of real estate owned and other repossessed assets	1,231,000	1,671,000
Proceeds from the sale of loans held for investment	2,250,000	1,000
Proceeds from the sale of premises and equipment	3,000	2,000
Purchases of premises and equipment	(1,943,000)	(1,591,000)
Principal disbursed on loans, net of repayments	(172,222,000)	(129,388,000)
Loans purchased	(45,350,000)	(33,203,000)
Purchase of bank owned life insurance	(5,000,000)
Purchase of securities available for sale		(38,843,000)
Purchase of securities held to maturity		(3,200,000)
Net cash (paid) received in acquisition of insurance agencies	(144,000)	107,000
Net cash from investing activities	(101,701,000)	(138,576,000)
Cash Flows from Financing Activities
Net increase in checking, savings and money market accounts	37,125,000	44,937,000
Net increase (decrease) in certificates of deposit	120,496,000	(7,637,000)
Net decrease in advance payments by borrowers for taxes and insurance	(8,297,000)	(6,416,000)
Net change in short-term FHLB advances	(86,500,000)	126,000,000
Net change in repurchase agreements and other borrowed funds	(1,092,000)	(18,000)
Proceeds from the exercise of stock options	216,000	462,000
Dividends paid	(4,970,000)	(3,776,000)
Purchase of treasury stock	(705,000)	(9,571,000)
Net cash from financing activities	56,273,000	143,981,000
Change in cash and cash equivalents	(7,877,000)	8,038,000
Cash and cash equivalents, beginning of period	45,887,000	35,910,000
Cash and cash equivalents, end of period	38,010,000	$ 43,948,000
OLCB [Member]
Cash Flows from Investing Activities
Net cash received in acquisition	$ 25,779,000

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BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

BASIS OF PRESENTATION

1. BASIS OF PRESENTATION

United Community Financial Corp. (United Community or the Company) was incorporated in the State of Ohio in February 1998 for the purpose of owning all of the outstanding capital stock of Home Savings and Loan Company of Youngstown, Ohio (Home Savings or the Bank) issued upon the conversion of Home Savings from a mutual savings association to a permanent capital stock savings association (Conversion). Upon consummation of the Conversion on July 8, 1998, United Community became the unitary thrift holding company for Home Savings.  Home Savings conducts its business from its main office located in Youngstown, Ohio, 35 retail banking offices, 13 loan production centers and three wealth management offices located throughout Ohio, western Pennsylvania and West Virginia.  

On January 29, 2016, United Community acquired James & Sons Insurance.  James & Sons Insurance was merged into HSB Insurance, LLC, a wholly-owned subsidiary of United Community.  HSB Insurance, LLC d/b/a James & Sons Insurance is an insurance agency that offers a wide variety of insurance products for business and residential customers, which include auto, homeowners, life-health, commercial, surety bonds and aviation. On February 28, 2017, James & Sons Insurance acquired Eich Brothers Insurance. Eich Brothers Insurance is an insurance agency that offers insurance products for business and residential customers, which include auto, commercial, homeowners and life-health.  On July 1, 2017, James & Sons Insurance acquired Stevens Insurance Agency, that offers insurance products for business and residential customers, which include auto, commercial, homeowners and life-health.      

HSB Capital, LLC, a wholly-owned subsidiary of United Community, was formed by United Community during 2016 for the purpose of providing mezzanine funding for customers.  Mezzanine loans are offered to customers in United Community’s market area and are expected to repaid from the cash flow from the operations of the business.

On January 31, 2017, United Community completed its acquisition of Ohio Legacy Corp. (OLCB).  Immediately following the acquisition of OLCB, Home Savings was merged into Premier Bank & Trust, OLCB’s wholly-owned subsidiary state chartered bank (PB&T), and PB&T changed its name to Home Savings Bank.  As a result of the acquisition, United Community issued 3,033,604 United Community common shares and paid $20.4 million to OLCB shareholders.   Also, in connection with the acquisition, United Community became a financial holding company, and its wholly owned subsidiary is now an Ohio bank.

HSB Insurance, Inc., a wholly-owned subsidiary of the Company which was formed and began operations on June 1, 2017, is a Delaware-based captive insurance company which insures against certain risks unique to the operations of the Company and its subsidiaries and for which insurance may not be currently available or economically feasible in today's insurance marketplace. HSB Insurance, Inc. pools resources with several other similar insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves.  HSB Insurance, Inc. is subject to regulations of the State of Delaware and undergoes periodic examinations by the Delaware Division of Insurance.

The accompanying consolidated financial statements of United Community have been prepared in accordance with instructions relating to Form 10-Q.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles (U.S. GAAP) for complete financial statements. However, such information reflects all adjustments (consisting solely of normal recurring adjustments) that are, in the opinion of management, necessary for a fair statement of results for the interim periods.

The results of operations for the three and nine months ended September 30, 2017, are not necessarily indicative of the results to be expected for the year ending December 31, 2017. The consolidated financial statements and notes thereto should be read in conjunction with the audited financial statements and notes contained in United Community’s Form 10-K for the year ended December 31, 2016.

The consolidated financial statements include the accounts of United Community and its subsidiaries, Home Savings, HSB Insurance, LLC, HSB Capital, LLC and HSB Insurance, Inc.  All material inter-company transactions have been eliminated.  Some items in the prior year financial statements were reclassified to conform to the current presentation. These reclassifications had no effect on prior year consolidated statements of operations or shareholders’ equity.

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RECENT ACCOUNTING DEVELOPMENTS

9 Months Ended

Sep. 30, 2017

Accounting Changes And Error Corrections [Abstract]

RECENT ACCOUNTING DEVELOPMENTS

2. RECENT ACCOUNTING DEVELOPMENTS

In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606).  The ASU implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 was originally going to be effective on January 1, 2017; however, the FASB recently issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date which deferred the effective date of ASU 2014-09 by one year to January 1, 2018. United Community’s revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. We expect that ASU 2014-09 will require us to change how we recognize certain insurance commissions and fees; however, we do not expect these changes to have a significant impact on our financial statements. Additional disclosures will be required to provide quantitative and qualitative information regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (viii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The new guidance is effective for annual reporting periods and interim reporting periods within those annual periods, beginning after December 15, 2017.  Management is currently evaluating the impact of the adoption of this guidance on the Company’s consolidated financial statements and expects revisions to disclosures included in the consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02 - Leases (Topic 842). The ASU will require all organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additional qualitative and quantitative disclosures will be required so that users can understand more about the nature of an entity’s leasing activities. The new guidance is effective for annual reporting periods and interim reporting periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted. Management is currently evaluating the impact of the adoption of this guidance on the Company’s consolidated financial statements and expects to recognize an increase in other assets and other liabilities for the rights and obligations created by leasing of branch offices.  Management also expects minimal impact in the income statement with respect to occupancy expense related to leases.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC Topic 718, Compensation - Stock Compensation. The ASU includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements.  Key provisions include the elimination of “windfall pools” and removes the requirement to delay recognition of a windfall tax benefit until it reduces current taxes payable.  Additionally, the simplification permits entities to withhold an amount up to the employees’ maximum individual tax rate in the relevant jurisdiction without resulting in a liability classification of the award.  Entities are now permitted to make accounting policy elections for the impact of forfeitures on the recognition of expense for share-based payment awards.  This ASU was adopted on January 1, 2017.  The Company recognized a tax benefit of $300,000 in income tax expense during the nine months ended September 30, 2017 as a result of adoption related to vesting of restricted stock awards and exercised stock options.    

In June 2016, FASB Issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.   This ASU adds a new Topic 326 to the Codification and removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. Under current U.S. GAAP, companies generally recognize credit losses when it is probable that the loss has been incurred. The revised guidance will remove all recognition thresholds and will require companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the company expects to collect over the instrument’s contractual life. ASU 2016-13 also amends the credit loss measurement guidance for available-for-sale debt securities and beneficial interests in securitized financial assets. The guidance in ASU 2016-13 is effective for “public business entities,” as defined, that are SEC filers for fiscal years, and for interim periods with those fiscal years, beginning after December 15, 2019.  Early adoption of the guidance is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Management is currently evaluating the impact of the adoption of this guidance on the Company’s consolidated financial statements.  Management is aggregating the necessary data requirements and addressing any data-archiving improvements necessary for the implementation of this ASU.

In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments, which amends the guidance in ASC 230 on the classification of certain cash receipts and payments in the statement of cash flows. The primary purpose of the ASU is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic. The ASU’s amendments add or clarify guidance on eight cash flow issues:

• Debt prepayment or debt extinguishment costs.

• Settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing.

• Contingent consideration payments made after a business combination.

• Proceeds from the settlement of insurance claims.

• Proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies.

• Distributions received from equity method investees.

• Beneficial interests in securitization transactions.

• Separately identifiable cash flows and application of the predominance principle.

For public business entities, the guidance in the ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years.  Early adoption is permitted for all entities. Entities must apply the guidance retrospectively to all periods presented but may apply it prospectively from the earliest date practicable if retrospective application would be impracticable.  Management is currently evaluating the impact of the adoption of this guidance on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU eliminates Step 2 from the goodwill impairment test. Instead, under the new guidance, an entity is to perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. The new guidance is effective for annual reporting periods, and interim reporting periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this guidance is not expected to have an impact on the Company’s consolidated financial statements.

In March 2017, the FASB issuedASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. This ASU amends the amortization period for certain purchased callable debt securities held at a premium. It shortens the amortization period for the premium to the earliest call date. Under current U.S. GAAP, premiums on callable debt securities generally are amortized to the maturity date. The new guidance is effective for annual reporting periods, and interim reporting periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted for interim or annual periods. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

In May 2017, the FASB issuedASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting . ASU 2017-09 applies to entities that change the terms or conditions of a share-based payment award.  The FASB adopted ASU 2017-09 to provide clarity and reduce diversity in practice as well as cost and complexity when applying the guidance in Topic 718, Compensation—Stock Compensation , to the modification of the terms and conditions of a share-based payment award.

The amendments in ASU 2017-09 include guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718.

These amendments require the entity to account for the effects of a modification unless all of the following conditions are met:

• The fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or value using an alternative measurement method) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification;

• The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and

• The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified.

The amendments are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period for. The amendments should be applied prospectively to an award modified on or after the adoption date.  The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

In July 2017, the FASB ASU No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480);Derivatives and Hedging (Topic 815 ): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception.  ASU 2017-11 simplifies the accounting for certain financial instruments with down round features, a provision in an equity-linked financial instrument (or embedded feature) that provides a downward adjustment of the current exercise price based on the price of future equity offerings.

The new ASU will require companies to disregard the down round feature when assessing whether the instrument is indexed to its own stock, for purposes of determining liability or equity classification. Companies that provide earnings per share (EPS) data will adjust their basic EPS calculation for the effect of the feature when triggered (i.e., when the exercise price of the related equity-linked financial instrument is adjusted downward because of the down round feature) and will also recognize the effect of the trigger within equity.

The provisions of the new ASU related to down rounds are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities.  The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

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STOCK COMPENSATION

9 Months Ended

Sep. 30, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

STOCK COMPENSATION

3. STOCK COMPENSATION

Stock Options:

On April 30, 2015, shareholders approved the United Community Financial Corp. 2015 Long-Term Incentive Compensation Plan (the 2015 Plan). The purpose of the 2015 Plan is to provide a means through which United Community may attract and retain employees and non-employee directors, to provide incentives that align their interest with those of United Community’s shareholders and promote the success of United Community’s business.  All employees and non-employee directors are eligible to participate in the 2015 Plan.  The 2015 Plan provides for the issuance of up to 1,200,000 shares that are to be used for awards of stock options, stock awards, stock units, stock appreciation rights, annual bonus awards and long-term incentive awards.

On April 26, 2007, shareholders approved the United Community Financial Corp. 2007 Long-Term Incentive Plan (as amended, the 2007 Plan). The purpose of the 2007 Plan was to promote and advance the interests of United Community and its shareholders by enabling United Community to attract, retain and reward directors, directors emeritus, managerial and other key employees of United Community, including Home Savings, by facilitating their purchase of an ownership interest in United Community. The 2007 Plan was terminated on April 30, 2015 upon the adoption of the 2015 Plan, although the 2007 Plan survives with respect to awards issued under the 2007 Plan that remain outstanding and exercisable.  The 2007 Plan provided for the issuance of up to 2,000,000 shares that were to be used for awards of restricted stock, stock options, performance awards, stock appreciation rights (SARs), or other forms of stock-based incentive awards.  Because the 2007 Plan terminated, no additional awards may be made under it.

On July 12, 1999, shareholders approved the United Community Financial Corp. 1999 Long-Term Incentive Plan (as amended, the 1999 Plan). The purpose of the 1999 Plan was the same as the 2007 Plan. The 1999 Plan terminated on May 20, 2009, although the 1999 Plan survives with respect to options issued under the 1999 Plan remain outstanding and exercisable. The 1999 Plan provided for the grant of either incentive or nonqualified stock options. Options were awarded at exercise prices that were not less than the fair market value of the share at the grant date. The maximum number of common shares that could be issued under the 1999 Plan was 3,569,766. Because the 1999 Plan terminated, no additional options may be issued under it.

There were no stock options granted in the three and nine months ended September 30, 2017 and 2016. Any options granted must be exercised within 10 years from the date of grant.  Expenses related to prior stock option grants are included with salaries and employee benefits. The Company recognized $0 and $1,000 in stock option expense for the three and nine months ended September 30, 2017, respectively.  The Company recognized $2,000 and $8,000 in stock option expense for the three and nine months ended September 30, 2016, respectively. The Company does not expect to recognize any stock option expense for the remainder of 2017.

A summary of option activity in the plans is as follows:

	For the nine months ended
	September 30, 2017
				Weighted		Aggregate
				average		intrinsic value
	Shares			exercise price		(in thousands)
Outstanding at beginning of year		371,218		$	2.55
Granted		—			—
Exercised		(80,085	)		2.69
Forfeited and expired		(600	)		2.10
Outstanding at end of period		290,533			2.51	$	2,061
Shares subject to options exercisable at end of period		290,533			2.51	$	2,061

Information related to stock options for the nine months ended September 30, 2017 and 2016 follows:

	September 30, 2017		September 30, 2016
Intrinsic value of options exercised	$	487,000	$	631,000
Cash received from option exercises		216,000		462,000
Tax benefit realized from option exercises		170,523		—
Weighted average fair value of options granted, per share	$	—	$	—

As of September 30, 2017, there were no unvested stock options remaining.

Outstanding stock options at September 30, 2017 have a weighted average remaining life of 2.79 years and may be exercised in the range of $1.20 to $5.89 per share.

Restricted Stock Awards:

The 2007 Plan permitted and the 2015 Plan permits the issuance of restricted stock awards to employees and nonemployee directors. Nonvested shares at September 30, 2017 aggregated 275,438, of which 7,709 are expected to vest during the remainder of 2017, 129,044 in 2018, 106,012 in 2019 and 32,673 in 2020. Expense related to restricted stock awards is charged to salaries and employee benefits and is recognized over the vesting period of the awards based on the fair value of the shares at the grant date. The Company recognized approximately $240,000 and $696,000 in restricted stock award expenses for the three and nine months ended September 30, 2017. The Company recognized approximately $254,000 and $716,000 in restricted stock award expense for the three and nine months ended September 30, 2016.  The Company expects to recognize additional expenses of approximately $203,000 in 2017, $581,000 in 2018, $259,000 in 2019 and $60,000 in 2020.  The total average per share fair value of shares vested during the nine months ended September 30, 2017 was $8.52.

A summary of changes in the Company’s nonvested restricted shares for the nine months ended September 30, 2017 is as follows:

	For the nine months ended
	September 30, 2017
				Weighted
				average
				grant date
	Shares			fair value
Nonvested at beginning of year		341,184		$	5.50
Granted		75,875		$	8.60
Vested		(141,621	)	$	4.98
Forfeited		—		$	—
Nonvested shares at end of period		275,438		$	6.63

Annual Incentive Plan

The Annual Incentive Plan (AIP) provides incentive compensation awards to certain officers of the Company. Annual incentive awards are generally based upon the actual performance of the Company and individual participant performance for the twelve months ending December 31, compared to the actual performance of a peer group during the same twelve-month period. The target incentive awards for each year are measured as a percentage of the base salary of participating officers.  Once the awards under the AIP are calculated, they are paid in cash and/or restricted stock. The restricted stock vests equally over three years, beginning on the first anniversary of the date the restricted stock is issued.  The Company incurred $100,000and $222,000 in expense for the restricted stock portion of the AIP for the three and nine months ended September 30, 2017, respectively and $431,000 and $1.3 million for the cash portion of the AIP for the three and nine months ended September 30, 2017, respectively.  The Company incurred $96,000 and $265,000 in expense for the restricted stock portion of the AIP for the three and nine months ended September 30, 2016, respectively and $306,000 and $924,000 for the cash portion of the AIP for the three and nine months ended September 30, 2016, respectively.  

Long-term Incentive Plan

The Long-term Incentive Plan (LTIP) provides a long-term incentive compensation opportunity to certain executive officers, whose participation and target award opportunities will be approved by the Compensation Committee of the Board of Directors. Each participant in the LTIP will be granted a target number of Performance Share Units (PSUs).  Target PSUs will be determined as a percentage of base salary and translated into share units based on the Company’s average stock price at the appropriate measurement date.  The performance period for the annual grant for a given year will be from January 1, year 1 through December 31, year 3.   The Company incurred $146,000and $295,000 for the LTIP for the three and nine months ended September 30, 2017, respectively.  The Company incurred $96,000 and $289,000 in expense for the LTIP for the three and nine months ended September 30, 2016, respectively.

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BUSINESS COMBINATION

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

BUSINESS COMBINATION

4. BUSINESS COMBINATION

On January 31, 2017, United Community completed its acquisition of OLCB pursuant to the terms and conditions of the Agreement and Plan of Merger, dated as of September 8, 2016 by and among United Community, the Bank, OLCB and Premier Bank & Trust (Merger Agreement).  Pursuant to the terms of the Merger Agreement, OLCB was merged with and into United Community. Immediately following the merger, Home Savings was merged with and into Premier Bank & Trust, a subsidiary of OLCB, and changed its name to Home Savings Bank.

As a result of the acquisiton and in accordance with the terms of the Merger Agreement, each preferred share of OLCB was deemed to have been converted into OLCB common shares. Each OLCB common share was converted into the right to receive either $18.00 in cash or 2.736 United Community common shares, subject to certain allocation procedures set forth in the Merger Agreement that ensured that 50% of OLCB’s common shares outstanding were converted into United Community common shares and 50% of OLCB’s common shares outstanding were exchanged for the cash consideration. The Company issued cash in lieu of issuing fractional shares.  

After the allocation procedures were applied, the Company issued 3,033,604 United Community common shares and paid $20.4 million to OLCB shareholders as a result of the acquisition.  Acquisition related costs aggregating $5.0 million were included in United Community’s Consolidated Statements of Operations for the nine months ended September 30, 2017.  The fair value of the common shares issued as part of the consideration paid for OLCB was determined in the basis of the closing price of United Community’s commons shares on the acquisition date.

The following table summarizes the consideration paid for OLCB.

	(In thousands)
Cash	$	20,379
United Community shares issued		25,816
Total fair value of consideration paid	$	46,195

At the acquisition date, United Community added the following to the Company’s consolidated statements of financial position:

	(In thousands)
Cash	$	46,159
Loans		259,373
Available for sale securities		9,996
FHLB stock, at cost		1,256
Premises and equipment		2,940
Accrued interest		679
Other intangible assets		2,426
Other real estate owned		89
Other assets		7,988
Total assets acquired	$	330,906
Deposits assumed	$	266,279
Federal Home Loan Bank advances		23,500
Repurchase agreements and other borrowings		10,771
Accrued expenses and other liabilities		2,581
Total liabilities assumed	$	303,131
Goodwill created	$	18,420

The fair value of net assets acquired included fair value adjustments to certain receivables that were not considered impaired as of the acquisition date.  The fair value adjustments were determined using discounted contractual cash flows.  However, the Company believes that all contractual cash flows related to these financial instruments will be collected.  As such, these receivables were not considered impaired at the acquisition date and were not subject to the guidance relating to purchased credit impaired loans, which have shown evidence of credit deterioration since origination.  The Company has purchased loans, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected with a fair value and gross contractual amounts receivable of $2.5 million and $2.6 million, respectively, on the date of acquisition.

Upon adoption of ASU 2016-16, Business Combinations (Topic 805), adjustments to provisional amounts booked in previous years are to be adjusted through current year goodwill with the full effect of changes to depreciation, amortization, or other income recorded in current year earnings as if the change had been completed as of the acquisition date.

The following table presents proforma information as if the OLCB acquisition had occurred at the beginning of 2016.  The proforma information includes adjustments for interest income on loans and securities acquired, amortization of intangibles arising from the transaction, depreciation expense on property acquired, interest expense on deposits acquired, and the related income tax effects.  The proforma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effected on the assumed dates.  Net income includes the recognition of $4.1 million in acquisition related expenses incurred by United Community and $368,000 in acquisition related expenses for OLCB during the nine months ended September 30, 2017.  The impact of the acquired insurance agencies is considered immaterial and not included in the table below.  

	For the Nine Months Ended September 30,
	2017		2016
	(In thousands, except per share data)
Net interest income	$	61,185	$	55,595
Net income		16,928		16,118
Basic earnings per share	$	0.34	$	0.32
Diluted earnings per share	$	0.34	$	0.32

Goodwill is recorded arising from the acquisition, which consisted largely of synergies and the cost savings resulting from combining the operations of the companies.  No goodwill is expected to be deductible for income tax purposes.  

At the time of the closing, Home Savings’ charter changed to a state chartered commercial bank and United Community became a financial holding company.

The acquisition benefits the Company and its shareholders by enabling the Company to further expand into the markets currently served by OLCB and strengthening the competitive position of the combined organization. Furthermore, the Company believes its increased asset size after the acquisition will create additional economies of scale and provide opportunities for asset and earnings growth in an extremely competitive banking environment.  OLCB results of operations were included in the Company’s results beginning January 31, 2017.

The fair value of $2.2 million of intangible assets related to core deposits is subject to change pending receipt of the final valuation.  

On February 28, 2017, HSB Insurance, LLC completed the purchase of an insurance agency engaged in the business of selling insurance including auto, commercial, homeowners and life-health insurance.  Under the purchase agreement, the Company paid $535,000, of which $107,000 was paid in cash at closing and the remaining $428,000 will be paid in four equal installments in connection with this acquisition.  Total assets purchased were $722,000, which includes the customer list intangible and goodwill.

On July 1, 2017, HSB Insurance, LLC completed the purchase of an insurance agency engaged in the business of selling insurance including auto, commercial, homeowners and life-health insurance.  Under the purchase agreement, the Company paid $60,000, of which $23,000 was paid in cash at closing and the remaining $37,000 will be paid in two equal installments in connection with this acquisition.  Total assets purchased were $81,000, which includes the customer list intangible and goodwill

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SECURITIES

9 Months Ended

Sep. 30, 2017

Investments Debt And Equity Securities [Abstract]

SECURITIES

5. SECURITIES

Components of the available for sale portfolio are as follows:

	September 30, 2017
			Gross		Gross
	Amortized		unrealized		unrealized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Available for Sale
U.S. Treasury and government sponsored entities' securities	$	125,153	$	237	$	(330	)	$	125,060
States of the U.S. and political subdivisions		58,959		699		(466	)		59,192
Mortgage-backed GSE securities: residential		90,888		106		(424	)		90,570
Total	$	275,000	$	1,042	$	(1,220	)	$	274,822

	December 31, 2016
			Gross		Gross
	Amortized		unrealized		unrealized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Available for Sale
U.S. Treasury and government sponsored entities' securities	$	188,082	$	172	$	(2,221	)	$	186,033
States of the U.S. and political subdivisions		59,415		3		(1,661	)		57,757
Mortgage-backed GSE securities: residential		100,602		50		(1,158	)		99,494
Total	$	348,099	$	225	$	(5,040	)	$	343,284

Components of held to maturity securities portfolio are as follows:

	September 30, 2017
			Gross		Gross
	Amortized		unrecognized		unrecognized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Held to maturity
Mortgage-backed GSE securities: residential	$	76,314	$	—	$	(615	)	$	75,699
States of the U.S. and political subdivisions		9,235		94		(4	)		9,325
Total	$	85,549	$	94	$	(619	)	$	85,024

	December 31, 2016
			Gross		Gross
	Amortized		unrecognized		unrecognized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Held to maturity
Mortgage-backed GSE securities: residential	$	85,065	$	—	$	(1,300	)	$	83,765
States of the U.S. and political subdivisions		12,454		17		(86	)		12,385
Total	$	97,519	$	17	$	(1,386	)	$	96,150

Debt securities available for sale by contractual maturity, repricing or expected call date are shown below:

	September 30, 2017
	Amortized cost		Fair value
	(Dollars in thousands)
Due in one year or less	$	—	$	—
Due after one year through five years		14,556		14,570
Due after five years through ten years		111,011		110,912
Due after ten years		58,545		58,770
Mortgage-backed GSE securities: residential		90,888		90,570
Total	$	275,000	$	274,822

Debt securities held to maturity by contractual maturity, repricing or expected call date are shown below:

	September 30, 2017
	Amortized cost		Fair value
	(Dollars in thousands)
Due in one year or less	$	—	$	—
Due after one year through five years		—		—
Due after five years through ten years		7,285		7,357
Due after ten years		1,950		1,968
Mortgage-backed GSE securities: residential		76,314		75,699
Total	$	85,549	$	85,024

Securities pledged for public funds were approximately $133.3 million at September 30, 2017 and approximately $146.5 million at December 31, 2016.  

Securities available for sale that have been in an unrealized loss position for less than twelve months or twelve months or more at September 30, 2017 are as follows:

	September 30, 2017
	Less than 12 months					12 months or more					Total
	Fair		Unrealized loss			Fair		Unrealized			Fair		Unrealized
	value		Loss			value		Loss			value		Loss
	(Dollars in thousands)
Description of securities:
U.S. Treasury and government sponsored entities	$	59,316	$	(330	)	$	—	$	—		$	59,316	$	(330	)
States of the U.S. and political subdivisions		21,789		(283	)		6,350		(183	)		28,139		(466	)
Mortgage-backed GSE securities: residential		68,648		(424	)		—		—			68,648		(424	)
Total temporarily impaired securities	$	149,753	$	(1,037	)	$	6,350	$	(183	)	$	156,103	$	(1,220	)

Securities available for sale that have been in an unrealized loss position for less than twelve months or twelve months or more at December 31, 2016 are as follows:

	December 31, 2016
	Less than 12 months					12 months or more				Total
	Fair		Unrealized loss			Fair		Unrealized		Fair		Unrealized
	value		Loss			value		Loss		value		Loss
	(Dollars in thousands)
Description of securities:
U.S. Treasury and government sponsored entities	$	171,411	$	(2,221	)	$	—	$	—	$	171,411	$	(2,221	)
States of the U.S. and political subdivisions		53,283		(1,661	)		—		—		53,283		(1,661	)
Mortgage-backed GSE securities: residential		98,775		(1,158	)		—		—		98,775		(1,158	)
Total temporarily impaired securities	$	323,469	$	(5,040	)	$	—	$	—	$	323,469	$	(5,040	)

All of the U.S. treasury and government sponsored entities and mortgage-backed securities available for sale that were temporarily impaired at September 30, 2017 and December 31, 2016, were impaired due to the level of interest rates at the time of purchase compared to current interest rates. Unrealized losses on these securities have not been recognized into income during the nine months ended September 30, 2017 or 2016 because the issuer’s securities are of high credit quality (rated AA or higher), it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. There is risk that longer term rates could rise further resulting in greater unrealized losses.  The Company expects to realize all interest and principal on these securities and has no intent to sell, and more than likely will not be required to sell, these securities before their anticipated recovery.

All of the obligations of U.S. states and political subdivisions held for sale that were temporarily impaired at September 30, 2017 and December 31, 2016, were impaired due to the level of interest rates at the time of purchase compared to current interest rates.  Unrealized losses on these securities have not been recognized into income for the nine months ended September 30, 2017 or 2016 because the issuer’s securities are of high credit quality (rated AA or higher), it is likely that management will not be required to sell, and has no intent to sell, the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions.

Securities held to maturity that have been in an unrecognized loss position for less than twelve months or twelve months or more are as follows:

	September 30, 2017
	Less than 12 months					12 months or more					Total
	Fair		Unrealized loss			Fair		Unrealized			Fair		Unrealized
	value		Loss			value		Loss			value		Loss
	(Dollars in thousands)
Description of securities:
Mortgage-backed GSE securities: residential	$	48,309	$	(668	)	$	27,390	$	(1,027	)	$	75,699	$	(1,695	)
States of the U.S. and political subdivisions		1,543		(4	)		—		—			1,543		(4	)
Total temporarily impaired securities	$	49,852	$	(672	)	$	27,390	$	(1,027	)	$	77,242	$	(1,699	)
	December 31, 2016
	Less than 12 months					12 months or more					Total
	Fair		Unrealized loss			Fair		Unrealized			Fair		Unrealized
	value		Loss			value		Loss			value		Loss
	(Dollars in thousands)
Description of securities:
Mortgage-backed GSE securities: residential	$	57,340	$	(1,243	)	$	26,426	$	(1,287	)	$	83,766	$	(2,530	)
States of the U.S. and political subdivisions		7,416		(86	)		—		—			7,416		(86	)
Total temporarily impaired securities	$	64,756	$	(1,329	)	$	26,426	$	(1,287	)	$	91,182	$	(2,616	)

During the third quarter of 2015, Home Savings transferred securities with a total amortized cost of $105.3 million with a corresponding fair value of $103.8 million from available for sale to held to maturity.  The net unrealizable loss, net of taxes, on these securities at the date of transfer was $999,000.  The fair value at the date of transfer becomes the securities’ new cost basis.  The unrealized holding loss at the time of transfer continues to be reported in accumulated other comprehensive income, net of tax and is amortized over the remaining lives of the securities as an adjustment of the yield.  The amortization of the unamortized holding loss reported in accumulated other comprehensive income will directly offset the effect on interest income from the accretion of the reduced amortized cost for the transferred securities.  Because of this transfer, the total losses less than 12 months and greater than 12 months reported in the table above will not agree to the unrealized losses reported in the inventory of held to maturity securities.  The inventory table reports unrealized gains and losses based upon the transferred securities adjusted cost basis and current fair value.  The reporting of losses less than 12 months and greater than 12 months represents that actual period of time that these securities have been in an unrealized loss position and the securities amortized cost basis as if the transfer did not occur.

All of the mortgage-backed securities held to maturity that were temporarily impaired at September 30, 2017 and December 31, 2016, were impaired due to the level of interest rates at the time of purchase compared to current interest rates. Unrealized losses on these securities have not been recognized into income for the nine months ended September 30, 2017 or 2016 because the issuer’s securities are of high credit quality (rated AA or higher), it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. There is risk that longer term rates could rise further resulting in greater unrealized losses.  The Company expects to realize all interest and principal on these securities and has no intent to sell and more than likely will not be required to sell these securities before their anticipated recovery.

All of the obligations of U.S. states and political subdivisions held to maturity that were temporarily impaired at September 30, 2017, and December 31, 2016, were impaired due to the level of interest rates at the time of purchase compared to current interest rates.  Unrealized losses on these securities have not been recognized into income for the nine months ended September 30, 2017 or 2016 because the issuer’s securities are of high credit quality (rated AA or higher), it is likely that management will not be required to sell and has no intent to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions.

Proceeds from the sale of available for sale securities were $9.7 million and $5.2 million, for the three months ended September 30, 2017 and 2016, respectively.  Gross gains of $236,000 and $218,000 were realized on these sales during the three months ended September 30, 2017 and 2016, respectively.  No gross losses were realized on these sales during the three months ended September 30, 2017 or 2016.  Income tax expense related to net realized gains and losses was $83,000 and $76,000 for the three months ended September 30, 2017 and 2016, respectively.

Proceeds from the sale of available for sale securities were $62.9 million and $33.7 million, for the nine months ended September 30, 2017 and 2016, respectively.  Gross gains of $610,000 and $609,000 were realized on these sales during the nine months ended September 30, 2017 and 2016, respectively.  Gross losses of $44,000 and $0 were realized on these sales during the nine months ended September 30, 2017 and 2016, respectively.  Income tax expense related to net realized gains and losses was $198,000 and $211,000 for the nine months ended September 30, 2017 and 2016, respectively.

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LOANS

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

LOANS

6. LOANS

Portfolio loans consist of the following:

	September 30,			December 31,
	2017			2016
	(Dollars in thousands)
Commercial loans
Multifamily	$	126,977		$	93,597
Nonresidential		366,747			231,401
Land		13,666			8,373
Construction		108,105			68,158
Secured		167,433			95,343
Unsecured		8,148			7,386
Total commercial loans		791,076			504,258
Residential mortgage loans
One-to four-family		851,863			762,926
Construction		57,081			35,695
Total residential mortgage loans		908,944			798,621
Consumer loans
Home equity		193,402			165,054
Auto		56,883			39,609
Marine		1,564			1,796
Recreational vehicle		6,249			7,602
Other		5,594			2,537
Total consumer loans		263,692			216,598
Total loans		1,963,712			1,519,477
Less:
Allowance for loan losses		20,555			19,087
Deferred loan costs, net		(4,538	)		(3,187	)
Total		16,017			15,900
Loans, net	$	1,947,695		$	1,503,577

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and are based on impairment method as of September 30, 2017 and December 31, 2016 and activity for the three and nine months ended September 30, 2017 and 2016.

Allowance For Loan Losses

	Commercial Loans			Residential Loans			Consumer Loans			Total
	(Dollars in thousands)
For the three months ended September 30, 2017
Beginning balance	$	10,821		$	5,968		$	2,871		$	19,660
Provision (recovery)		512			369			(160	)		721
Charge-offs		(12	)		(427	)		(147	)		(586	)
Recoveries		361			136			263			760
Ending balance	$	11,682		$	6,046		$	2,827		$	20,555
For the nine months ended September 30, 2017
Beginning balance	$	10,824		$	5,538		$	2,725		$	19,087
Provision		1,537			1,234			267			3,038
Charge-offs		(1,335	)		(930	)		(626	)		(2,891	)
Recoveries		656			204			461			1,321
Ending balance	$	11,682		$	6,046		$	2,827		$	20,555
As of September 30, 2017
Period-end amount allocated to:
Loans individually evaluated for impairment	$	16		$	1,169		$	411			1,596
Loans collectively evaluated for impairment		11,612			4,877			2,416			18,905
Loans acquired with deteriorated credit quality		54			—			—			54
Ending balance	$	11,682		$	6,046		$	2,827		$	20,555
Period-end balances:
Loans individually evaluated for impairment		2,322			16,718			7,314			26,354
Loans collectively evaluated for impairment		787,550			892,226			256,378			1,936,154
Loans acquired with deteriorated credit quality		1,204			—			—			1,204
Ending balance	$	791,076		$	908,944		$	263,692		$	1,963,712

Allowance For Loan Losses

	Commercial Loans			Residential Loans			Consumer Loans			Total
For the three months ended September 30, 2016
Beginning balance	$	8,958		$	5,644		$	2,570		$	17,172
Provision		842			268			234			1,344
Charge-offs		(533	)		(166	)		(222	)		(921	)
Recoveries		527			20			92			639
Ending balance	$	9,794		$	5,766		$	2,674		$	18,234
For the nine months ended September 30, 2016
Beginning balance	$	8,077		$	6,630		$	3,005		$	17,712
Provision (recovery)		4,055			(359	)		198			3,894
Charge-offs		(3,026	)		(612	)		(977	)		(4,615	)
Recoveries		688			107			448			1,243
Ending balance	$	9,794		$	5,766		$	2,674		$	18,234
As of December 31, 2016
Period-end amount allocated to:
Loans individually evaluated for impairment	$	1,271		$	1,245		$	500		$	3,016
Loans collectively evaluated for impairment		9,553			4,293			2,225			16,071
Ending balance	$	10,824		$	5,538		$	2,725		$	19,087
Period-end balances:
Loans individually evaluated for impairment	$	6,018		$	17,485		$	8,045		$	31,548
Loans collectively evaluated for impairment		498,240			781,136			208,553			1,487,929
Ending balance	$	504,258		$	798,621		$	216,598		$	1,519,477

The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required based on an analysis using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations, estimated collateral values, general economic conditions in the market area and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off.

Other loans not reviewed specifically by management are evaluated as a homogenous group of loans (generally single-family residential mortgage loans and all consumer credits except marine loans) using a loss factor applied to the outstanding loan balance to determine the level of reserve required. This loss factor consists of two components, a quantitative and a qualitative component. The quantitative component is based on a historical analysis of all charged-off loans, net of recoveries. In determining the qualitative factors, consideration is given to such attributes as lending policies, economic conditions, nature and volume of the portfolio, management, loan quality trend, loan review, collateral value, concentrations, economic cycles and other external factors.  As of September 30, 2017, the Company evaluated 21 quarters of net charge-off history and applied this information to the current period.  This component is combined with the qualitative component to arrive at the loss factor, which is applied to the outstanding balance of homogenous loans.

The following table presents loans individually evaluated for impairment by class of loans as of and for nine months ended September 30, 2017:

Impaired Loans

(Dollars in thousands)

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	466	$	402	$	—	$	309	$	3	$	3
Nonresidential		673		153		—		818		6		6
Land		715		9		—		15		—		—
Construction		2,467		—		—		—		—		—
Secured		263		210		—		195		1		1
Unsecured		194		—		—		—		—		—
Total commercial loans		4,778		774		—		1,337		10		10
Residential mortgage loans
One-to four-family		6,793		5,814		—		6,025		81		73
Construction		—		—		—		—		—		—
Total residential mortgage loans		6,793		5,814		—		6,025		81		73
Consumer loans
Home equity		1,556		1,177		—		1,477		11		11
Auto		8		1		—		9		—		—
Marine		540		169		—		200		—		—
Recreational vehicle		809		389		—		220		12		12
Other		1		1		—		—		—		—
Total consumer loans		2,914		1,737		—		1,906		23		23
Total	$	14,485	$	8,325	$	—	$	9,268	$	114	$	106
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—	$	—	$	—	$	—
Nonresidential		1,582		1,548		16		2,010		86		85
Land		—		—		—		—		—		—
Construction		—		—		—		—		—		—
Secured		—		—		—		43		—		—
Unsecured		—		—		—		—		—		—
Total commercial loans		1,582		1,548		16		2,053		86		85
Residential mortgage loans
One-to four-family		11,042		10,904		1,169		10,799		385		343
Construction		—		—		—		—		—		—
Total residential mortgage loans		11,042		10,904		1,169		10,799		385		343
Consumer loans
Home equity		5,132		5,055		387		5,173		214		199
Auto		—		—		—		—		—		—
Marine		102		102		1		105		4		4
Recreational vehicle		432		420		23		616		14		14
Other		—		—		—		—		—		—
Total consumer loans		5,666		5,577		411		5,894		232		217
Total		18,290		18,029		1,596		18,746		703		645
Total impaired loans	$	32,775	$	26,354	$	1,596	$	28,014	$	817	$	751

The following table presents loans individually evaluated for impairment by class of loans as of and for nine months ended September 30, 2016:

Impaired Loans

(Dollars in thousands)

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	59	$	—	$	—	$	—	$	—	$	—
Nonresidential		952		149		—		248		4		4
Land		3,922		134		—		322		—		—
Construction		3,594		—		—		—		—		—
Secured		3,743		3,700		—		3,700		—		—
Unsecured		821		—		—		—		7		7
Total commercial loans		13,091		3,983		—		4,270		11		11
Residential mortgage loans
One-to four-family		7,401		5,727		—		6,049		55		49
Construction		—		—		—		—		—		—
Total residential mortgage loans		7,401		5,727		—		6,049		55		49
Consumer loans
Home equity		1,728		1,272		—		1,415		14		14
Auto		13		8		—		10		—		—
Marine		543		301		—		294		—		—
Recreational vehicle		637		322		—		241		4		4
Other		—		—		—		3		—		—
Total consumer loans		2,921		1,903		—		1,963		18		18
Total	$	23,413	$	11,613	$	—	$	12,282	$	84	$	78
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—	$	—	$	—	$	—
Nonresidential		11,660		9,164		935		7,911		208		206
Land		—		—		—		—		—		—
Construction		—		—		—		—		—		—
Secured		616		550		81		692		—		—
Unsecured		—		—		—		—		—		—
Total commercial loans		12,276		9,714		1,016		8,603		208		206
Residential mortgage loans
One-to four-family		12,123		12,121		1,342		12,587		423		373
Construction		—		—		—		—		—		—
Total residential mortgage loans		12,123		12,121		1,342		12,587		423		373
Consumer loans
Home equity		5,997		5,997		435		6,592		257		238
Auto		—		—		—		—		—		—
Marine		153		153		4		158		6		4
Recreational vehicle		655		655		77		815		20		19
Other		—		—		—		2		—		—
Total consumer loans		6,805		6,805		516		7,567		283		261
Total		31,204		28,640		2,874		28,757		914		840
Total impaired loans	$	54,617	$	40,253	$	2,874	$	41,039	$	998	$	918

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2016:

Impaired Loans

(Dollars in thousands)

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With no specific allowance recorded
Commercial loans
Multifamily	$	55	$	—	$	—
Nonresidential		2,278		1,489		—
Land		3,922		34		—
Construction		3,594		—		—
Secured		242		190		—
Unsecured		713		—		—
Total commercial loans		10,804		1,713		—
Residential mortgage loans
One-to four-family		8,736		6,758		—
Construction		—		—		—
Total residential mortgage loans		8,736		6,758		—
Consumer loans
Home equity		2,159		1,583		—
Auto		11		3		—
Marine		585		267		—
Recreational vehicle		433		120		—
Other		—		—		—
Total consumer loans		3,188		1,973		—
Total	$	22,728	$	10,444	$	—
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		6,930		4,133		1,193
Land		—		—		—
Construction		—		—		—
Secured		237		172		78
Unsecured		—		—		—
Total commercial loans		7,167		4,305		1,271
Residential mortgage loans
One-to four-family		10,810		10,727		1,245
Construction		—		—		—
Total residential mortgage loans		10,810		10,727		1,245
Consumer loans
Home equity		5,390		5,335		426
Auto		—		—		—
Marine		108		108		1
Recreational vehicle		639		629		73
Other		—		—		—
Total consumer loans		6,137		6,072		500
Total		24,114		21,104		3,016
Total impaired loans	$	46,842	$	31,548	$	3,016

The unpaid principal balance is the total amount of the loan that is due to Home Savings. The recorded investment includes the unpaid principal balance less any charge-offs or partial charge-offs applied to specific loans. The unpaid principal balance and the recorded investment both exclude accrued interest receivable and deferred loan costs, both of which are immaterial.

The following table presents loans individually evaluated for impairment by class of loans as of and for the three months ended September 30, 2017:

	Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	408	$	—	$	—
Nonresidential		809		3		3
Land		9		—		—
Construction		—		—		—
Secured		200		1		1
Unsecured		—		—		—
Total commercial loans		1,426		4		4
Residential mortgage loans
One-to four-family		5,788		35		33
Construction		—		—		—
Total residential mortgage loans		5,788		35		33
Consumer loans
Home equity		1,356		4		4
Auto		10		—		—
Marine		169		—		—
Recreational vehicle		271		3		3
Other		1		—		—
Total consumer loans		1,807		7		7
Total	$	9,021	$	46	$	44
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		1,002		26		26
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		1,002		26		26
Residential mortgage loans
One-to four-family		10,666		112		112
Construction		—		—		—
Total residential mortgage loans		10,666		112		112
Consumer loans
Home equity		4,987		65		65
Auto		—		—		—
Marine		103		1		1
Recreational vehicle		556		5		5
Other		—		—		—
Total consumer loans		5,646		71		71
Total		17,314		209		209
Total impaired loans	$	26,335	$	255	$	253

The following table presents loans individually evaluated for impairment by class of loans as of and for the three months ended September 30, 2016:

	Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		238		1		1
Land		259		—
Construction		—		—		—
Secured		3,700		—		—
Unsecured		—		—		—
Total commercial loans		4,197		1		1
Residential mortgage loans
One-to four-family		6,125		19		19
Construction		—		—		—
Total residential mortgage loans		6,125		19		19
Consumer loans
Home equity		1,306		9		9
Auto		9		—		—
Marine		302		—		—
Recreational vehicle		298		1		1
Other		2		—		—
Total consumer loans		1,917		10		10
Total	$	12,239	$	30	$	30
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		8,868		84		84
Land		—		—		—
Construction		—		—		—
Secured		742		—		—
Unsecured		—		—		—
Total commercial loans		9,610		84		84
Residential mortgage loans
One-to four-family		12,077		132		127
Construction		—		—		—
Total residential mortgage loans		12,077		132		127
Consumer loans
Home equity		6,138		77		76
Auto		—		—		—
Marine		155		2		2
Recreational vehicle		724		6		6
Other		—		—		—
Total consumer loans		7,017		85		84
Total		28,704		301		295
Total impaired loans	$	40,943	$	331	$	325

Home Savings reclassifies a collateralized mortgage loan and a consumer loan secured by real estate to real estate owned and other repossessed assets once it has either obtained legal title to the real estate collateral or the borrower voluntarily conveys all interest in the real property to the Bank to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement.  The table below presents loans that are in the process of foreclosure at September 30, 2017 and December 31, 2016, but legal title, deed in lieu of foreclosure or similar legal agreement to the property has not yet been obtained:

	September 30, 2017				December 31, 2016
	Unpaid Principal Balance		Recorded Investment		Unpaid Principal Balance		Recorded Investment
	(Dollars in thousands)				(Dollars in thousands)
Mortgage loans in process of foreclosure	$	2,975	$	2,805	$	3,025	$	2,576
Consumer loans in process of foreclosure		955		798		1,069		795

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans as of September 30, 2017:

Nonaccrual Loans and Loans Past Due Over 90 Days and Still Accruing

As of September 30, 2017

	Nonaccrual		Loans past due over 90 days and still accruing
	(Dollars in thousands)
Commercial loans
Multifamily	$	402	$	—
Nonresidential		1,234		—
Land		9		—
Construction		—		—
Secured		234		—
Unsecured		—		—
Total commercial loans		1,879		—
Residential mortgage loans
One-to four-family		6,627		—
Construction		—		—
Total residential mortgage loans		6,627		—
Consumer Loans
Home equity		1,714		—
Auto		38		—
Marine		169		—
Recreational vehicle		409		6
Other		2		2
Total consumer loans		2,332		8
Total nonaccrual loans and loans past due over 90 days and still accruing	$	10,838	$	8

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans as of December 31, 2016:

Nonaccrual Loans and Loans Past Due Over 90 Days and Still Accruing

As of December 31, 2016

	Nonaccrual		Loans past due over 90 days and still accruing
	(Dollars in thousands)
Commercial loans
Multifamily	$	—	$	—
Nonresidential		3,546		—
Land		34		—
Construction		—		—
Secured		361		—
Unsecured		—		—
Total commercial loans		3,941		—
Residential mortgage loans
One-to four-family		6,084		—
Construction		—		—
Total residential mortgage loans		6,084		—
Consumer Loans
Home equity		1,936		—
Auto		31		—
Marine		267		—
Recreational vehicle		178		—
Other		2		—
Total consumer loans		2,414		—
Total nonaccrual loans and loans past due over 90 days and still accruing	$	12,439	$	—

The following table presents an age analysis of past-due loans, segregated by class of loans as of September 30, 2017:

Past Due Loans

(Dollars in thousands)

	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current Loans		Total Loans
Commercial loans
Multifamily	$	—			$	402	$	402	$	126,575	$	126,977
Nonresidential		206		1,204		7		1,417		365,330		366,747
Land		—		—		9		9		13,657		13,666
Construction		—		—		—		—		108,105		108,105
Secured		157		16		212		385		167,048		167,433
Unsecured		—		—		—		—		8,148		8,148
Total commercial loans		363		1,220		630		2,213		788,863		791,076
Residential mortgage loans
One-to four-family		3,588		1,305		5,066		9,959		841,904		851,863
Construction		—		—		—		—		57,081		57,081
Total residential mortgage loans		3,588		1,305		5,066		9,959		898,985		908,944
Consumer Loans:
Home equity		1,026		192		1,467		2,685		190,717		193,402
Automobile		137		76		17		230		56,653		56,883
Marine		13		—		169		182		1,382		1,564
Recreational vehicle		357		164		298		819		5,430		6,249
Other		2		13		3		18		5,576		5,594
Total consumer loans		1,535		445		1,954		3,934		259,758		263,692
Total loans	$	5,486	$	2,970	$	7,650	$	16,106	$	1,947,606	$	1,963,712

The following table presents an age analysis of past-due loans, segregated by class of loans as of December 31, 2016:

Past Due Loans

(Dollars in thousands)

	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current Loans		Total Loans
Commercial loans
Multifamily	$	—	$	—	$	—	$	—	$	93,597	$	93,597
Nonresidential		3,511		—		61		3,572		227,829		231,401
Land		—		—		34		34		8,339		8,373
Construction		—		—		—		—		68,158		68,158
Secured		—		—		361		361		94,982		95,343
Unsecured		—		—		—		—		7,386		7,386
Total commercial loans		3,511		—		456		3,967		500,291		504,258
Residential mortgage loans
One-to four-family		3,774		1,717		5,461		10,952		751,974		762,926
Construction		—		—		—		—		35,695		35,695
Total residential mortgage loans		3,774		1,717		5,461		10,952		787,669		798,621
Consumer Loans:
Home equity		941		458		1,669		3,068		161,986		165,054
Automobile		130		—		3		133		39,476		39,609
Marine		—		—		267		267		1,529		1,796
Recreational vehicle		131		347		—		478		7,124		7,602
Other		1		3		2		6		2,531		2,537
Total consumer loans		1,203		808		1,941		3,952		212,646		216,598
Total loans	$	8,488	$	2,525	$	7,858	$	18,871	$	1,500,606	$	1,519,477

As of September 30, 2017 and December 31, 2016, the Company has a recorded investment in troubled debt restructurings of $21.3 million and $26.6 million, respectively.  The Company allocated $1.6 million of specific allowance for those loans at September 30, 2017 and $3.0 million at December 31, 2016.  The Company has committed to lend additional amounts totaling up to $37,000 and $31,000 at September 30, 2017 and December 31, 2016, respectively.  

The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ended September 30, 2017:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(In thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		—		—		—
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		—		—		—
Residential mortgage loans
One-to four-family		1		147		169
Construction		—		—		—
Total residential mortgage loans		1		147		169
Consumer loans
Home equity		—		—		—
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		—		—		—
Total restructured loans		1	$	147	$	169

The troubled debt restructurings described above had no effect on the allowance for loan losses and resulted in no charge-offs during the three months ended September 30, 2017.

The following table presents loans by class modified as troubled debt restructurings that occurred during the nine months ended September 30, 2017:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(In thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		—		—		—
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		—		—		—
Residential mortgage loans
One-to four-family		2		222		253
Construction		—		—		—
Total residential mortgage loans		2		222		253
Consumer loans
Home equity		—		—		—
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		1		115		115
Other		—		—		—
Total consumer loans		1		115		115
Total restructured loans		3	$	337	$	368

The troubled debt restructurings described above increased the allowance for loan losses by $6,000 and resulted in no charge-offs during the nine months ended September 30, 2017.

The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ended September 30, 2016:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		1		1,371		1,377
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		1		1,371		1,377
Residential mortgage loans
One-to four-family		1		113		114
Construction		—		—		—
Total residential mortgage loans		1		113		114
Consumer loans
Home equity		—		—		—
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		—		—		—
Total restructured loans		2	$	1,484	$	1,491

The troubled debt restructurings described above increased the allowance for loan losses by $20,000, and resulted in no charge-offs during the three months ended September 30, 2016.

The following table presents loans by class modified as troubled debt restructurings that occurred during the nine months ended September 30, 2016:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		3		5,459		5,465
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		3		5,459		5,465
Residential mortgage loans
One-to four-family		4		429		449
Construction		—		—		—
Total residential mortgage loans		4		429		449
Consumer loans
Home equity		3		130		134
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		3		130		134
Total restructured loans		10	$	6,018	$	6,048

The troubled debt restructurings described above increased the allowance for loan losses by $31,000 and resulted in no charge-offs during the nine months ended September 30, 2017.

The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within a twelve-month cycle following the modification during the period ended September 30, 2017.

	Number of loans		Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—
Nonresidential		—		—
Land		—		—
Construction		—		—
Secured		—		—
Unsecured		—		—
Total commercial loans		—		—
Residential mortgage loans
One-to four-family		1		162
Construction		—		—
Total residential mortgage loans		1		162
Consumer loans
Home equity		1		47
Auto		—		—
Marine		—		—
Recreational vehicle		—		—
Other		—		—
Total consumer loans		1		47
Total restructured loans		2	$	209

The troubled debt restructurings that subsequently defaulted described above resulted in no charge-offs during the three and nine months ended September 30, 2017, and had no effect on the provision for loan losses.

The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within a twelve month cycle following the modification during the period ended September 30, 2016:

	Number of loans		Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—
Nonresidential		—		—
Land		—		—
Construction		—		—
Secured		—		—
Unsecured		—		—
Total commercial loans		—		—
Residential mortgage loans
One-to four-family		1		4
Construction		—		—
Total residential mortgage loans		1		4
Consumer loans
Home equity		—		—
Auto		—		—
Marine		—		—
Recreational vehicle		—		—
Other		—		—
Total consumer loans		—		—
Total restructured loans		1	$	4

The troubled debt restructurings that subsequently defaulted described above resulted in no of charge-offs during the three and nine months ended September 30, 2016, and had no effect on the provision for loan losses.

A troubled debt restructuring is considered to be in payment default once it is 30 days contractually past due under the modified terms.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed in accordance with the Company’s internal underwriting policy.

Credit Quality Indicators:

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, public information and current economic trends. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes homogeneous loans past due 90 cumulative days, and all non-homogeneous loans, including commercial loans and commercial real estate loans. Smaller balance homogeneous loans are primarily monitored by payment status.

Asset quality ratings are divided into two groups: Pass (unclassified) and Classified. Within the unclassified group, certain loans that display potential weakness are risk rated as special mention. In addition, there are three classified risk ratings: substandard, doubtful and loss. These specific credit risk categories are defined as follows:

Special Mention. Loans classified as special mention have potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

Loss. Loans classified as loss are considered uncollectible and of such little value, that continuance as assets is not warranted. Although there may be a chance of recovery on these assets, it is not practical or desirable to defer writing off the asset.

The Company monitors loans on a monthly basis to determine if they should be included in one of the categories listed above. All impaired non-homogeneous credits classified as substandard, doubtful or loss are analyzed on an individual basis for a specific reserve requirement. This analysis is performed on each individual credit at least annually or more frequently if warranted.

As of September 30, 2017 and December 31, 2016, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Loans

September 30, 2017

(Dollars in thousands)

	Unclassified				Classified
	Unclassified		Special Mention		Substandard		Doubtful		Loss		Total Classified		Total Loans
Commercial Loans
Multifamily	$	124,441	$	1,975	$	561	$	—	$	—	$	561	$	126,977
Nonresidential		355,846		3,171		7,730		—		—		7,730		366,747
Land		13,657		—		9		—		—		9		13,666
Construction		107,702		403		—		—		—		—		108,105
Secured		137,977		1,421		28,035		—		—		28,035		167,433
Unsecured		8,054		—		94		—		—		94		8,148
Total commercial loans		747,677		6,970		36,429		—		—		36,429		791,076
Residential mortgage loans
One-to four-family		842,928		769		8,166		—		—		8,166		851,863
Construction		57,081		—		—		—		—		—		57,081
Total residential mortgage loans		900,009		769		8,166		—		—		8,166		908,944
Consumer Loans
Home equity		191,689		—		1,713		—		—		1,713		193,402
Auto		56,845		—		38		—		—		38		56,883
Marine		1,395		—		169		—		—		169		1,564
Recreational vehicle		5,840		—		409		—		—		409		6,249
Other		5,592		—		2		—		—		2		5,594
Total consumer loans		261,361		—		2,331		—		—		2,331		263,692
Total loans	$	1,909,047	$	7,739	$	46,926	$	—	$	—	$	46,926	$	1,963,712

Loans

December 31, 2016

(Dollars in thousands)

	Unclassified				Classified
	Unclassified		Special Mention		Substandard		Doubtful		Loss		Total Classified		Total Loans
Commercial Loans
Multifamily	$	89,468	$	3,564	$	565	$	—	$	—	$	565	$	93,597
Nonresidential		217,204		6,037		8,160		—		—		8,160		231,401
Land		8,339		—		34		—		—		34		8,373
Construction		68,158		—		—		—		—		—		68,158
Secured		89,756		3,420		2,167		—		—		2,167		95,343
Unsecured		7,291		—		95		—		—		95		7,386
Total commercial loans		480,216		13,021		11,021		—		—		11,021		504,258
Residential mortgage loans
One-to four-family		754,996		104		7,826		—		—		7,826		762,926
Construction		35,695		—		—		—		—		—		35,695
Total residential mortgage loans		790,691		104		7,826		—		—		7,826		798,621
Consumer Loans
Home equity		163,101		—		1,953		—		—		1,953		165,054
Auto		39,577		1		31		—		—		31		39,609
Marine		1,530		—		266		—		—		266		1,796
Recreational vehicle		7,424		—		178		—		—		178		7,602
Other		2,535		—		2		—		—		2		2,537
Total consumer loans		214,167		1		2,430		—		—		2,430		216,598
Total loans	$	1,485,074	$	13,126	$	21,277	$	—	$	—	$	21,277	$	1,519,477

Purchased Credit Impaired Loans:

The Company has purchased loans, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected.  The carrying amount of those loans is as follows:

	September 30, 2017
	(Dollars in thousands)
Commercial loans	$	1,204
Residential mortgage loans		—
Consumer loans		—
Outstanding balance	$	1,204
Carrying amount, net of allowance of $54,000	$	1,150

Accretable yield, or income expected to be collected, is as follows:

	Three Months Ended		Nine Months Ended
	September 30, 2017		September 30, 2017
			(Dollars in thousands)
Beginning of period	$	116	$	—
New loans purchased		—		158
Accretion of income		12		54
Balance at September 30	$	104	$	104

For the purchased credit impaired loans disclosed above, there was an increase of $54,000 in the allowance for loan losses for the three and nine months ended September 30, 2017.  

Purchased credit impaired loans acquired during the nine months ended September 30, 2017 for which it was probable at acquisition that all contractually required payments would not be collected are as follows:

	September 30, 2017
	(Dollars in thousands)
Contractually required payments receivable of   loans purchased during the year:
Commercial loans	$	4,499
Residential mortgage loans		—
Consumer loans		—
	$	4,499
Cash flow expected to be collected at acquisition	$	1,955
Fair value of acquired loans at acquisition		1,797

Income is not recognized on purchased credit impaired loans if the Company cannot reasonably estimate cash flows expected to be collected.  The carrying amounts of such loans are as follows:

	September 30, 2017
	(Dollars in thousands)
Loans at beginning of year	$	—
Loans purchased during the year		1,797
Loans at end of period		1,204

XML

MORTGAGE BANKING ACTIVITIES

9 Months Ended

Sep. 30, 2017

Mortgage Banking [Abstract]

MORTGAGE BANKING ACTIVITIES

7. MORTGAGE BANKING ACTIVITIES

Mortgage loans serviced for others, which are not reported in United Community’s assets, totaled $1.2 billion as of September 30, 2017 and $1.2 billion as of December 31, 2016. Mortgage banking income is comprised of gains recognized on the sale of loans and changes in fair value of mortgage banking derivatives.

The principal balances of mortgage loans serviced for others are as follows:

	September 30, 2017		December 31, 2016
	(Dollars in thousands)
Mortgage loan portfolios serviced for:
FHLMC	$	979,546	$	956,278
FNMA		235,246		208,114
Private investor		26,350		—

During the second quarter of 2017, the Company sold $27.9 million of adjustable rate 1-4 family mortgages to a private investor in a bulk mortgage loan sale.  The Company recognized 45 basis points of mortgage service release premium as part of the gain recognized on this sale.   Customer escrow balances with loans serviced for FHLMC, FNMA and the private investor totaled $9.2 million and $14.3 million at September 30, 2017 and December 31, 2016, respectively.

Activity for capitalized mortgage servicing rights, included in other assets, was as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
	(Dollars in thousands)
Balance, beginning of period	$	6,161		$	5,813		$	6,070		$	5,686
Originations		793			708			1,819			1,870
Amortized to expense		(491	)		(525	)		(1,426	)		(1,560	)
Balance, end of period		6,463			5,996			6,463			5,996
Less valuation allowance		(15	)		(741	)		(15	)		(741	)
Net balance	$	6,448		$	5,255		$	6,448		$	5,255

Activity in the valuation allowance for mortgage servicing rights was as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
	(Dollars in thousands)
Balance, beginning of period	$	(5	)	$	(766	)	$	—		$	(39	)
Impairment charges		(10	)		—			(15	)		(727	)
Recoveries		—			25			—			25
Balance, end of period	$	(15	)	$	(741	)	$	(15	)	$	(741	)

The fair value of mortgage servicing rights as of September 30, 2017, was approximately $10.5 million and at December 31, 2016, the fair value was approximately $10.2 million.

Key economic assumptions in measuring the value of mortgage servicing rights at September 30, 2017, and December 31, 2016, were as follows:

	September 30, 2017		December 31, 2016
Weighted average prepayment rate	187 PSA		165 PSA
Weighted average life (in years)	6.22		6.64
Weighted average discount rate		9.00%		9.00%

XML

OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS

9 Months Ended

Sep. 30, 2017

Real Estate [Abstract]

OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS

8. OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS

Real estate owned and other repossessed assets at September 30, 2017 and December 31, 2016 were as follows:

	September 30, 2017			December 31, 2016
	(Dollars in thousands)
Real estate owned and other repossessed assets	$	1,566		$	2,789
Valuation allowance		(423	)		(1,012	)
End of period	$	1,143		$	1,777

Activity in the valuation allowance was as follows:

	Three Months Ended					Nine Months Ended
	September 30, 2017			September 30, 2016		September 30, 2017			September 30, 2016
	(Dollars in thousands)
Beginning of period	$	389		$	1,001	$	1,012		$	1,229
Amounts  charged to (recovery of) expense		53			1		15			(25	)
Reductions due to sales		(19	)		1		(604	)		(201	)
End of period	$	423		$	1,003	$	423		$	1,003

Expenses related to foreclosed and repossessed assets include:

	Three Months Ended					Nine Months Ended
	September 30, 2017		September 30, 2016			September 30, 2017		September 30, 2016
	(Dollars in thousands)
Net loss (gains) on sales	$	20	$	(1	)	$	128	$	101
Provision for unrealized (gains) losses , net		53		1			15		(25	)
Operating expenses, net of rental income		33		41			118		190
Total expenses	$	106	$	41		$	261	$	266

XML

FAIR VALUE MEASUREMENT

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENT

9. FAIR VALUE MEASUREMENT

Fair value is the exchange price that would be received for an asset if paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own beliefs about the assumptions that market participants would use in pricing an asset or liability.

United Community uses the following methods and significant assumptions to estimate the fair value of each type of financial instrument:

Available for sale securities: The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing.  Matrix pricing is a mathematical technique commonly used to price debt securities that are not actively traded, values debt securities without relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

Impaired loans: At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value generally receive specific allocations of the allowance for loan losses. For collateral dependent loans, fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Other real estate owned: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Real estate owned properties are individually evaluated at least annually for additional impairment and adjusted accordingly.

Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by Home Savings. Once received, a member of the Special Assets Department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with the independent data sources such as recent market data or industry-wide statistics. In addition to the Special Assets Department review, a third party independent review is also performed.  On an annual basis, Home Savings compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustment should be made to the appraisal value to arrive at fair value. At the time a property is acquired and classified as real estate owned, the fair value is determined utilizing the most appropriate method. A fair value in excess of $250,000 will be supported by an appraisal. After determination of fair value, each property will be recorded at the lower of cost (i.e., recorded investment in the loan) or the estimated net realizable value on the date of transfer to real estate owned. In determining net realizable value, reductions to fair market value may be taken for estimated costs of sale, conditions that must be remedied immediately upon acquisition, and other factors that negatively impact the marketability and prompt sale of the property.

Mortgage servicing rights: On a quarterly basis, loan servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. If the carrying amount of an individual tranche exceeds fair value, impairment is recorded on that tranche so that the servicing asset is carried at fair value. Fair value is determined at a tranche level, based on market prices for comparable mortgage servicing contracts, when available, or alternatively based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model utilizes assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data (Level 2).

Loans held for sale: Loans held for sale are carried at the lower of cost or fair value, which is evaluated on a pool-level basis. The fair value of loans held for sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan or other observable market data, such as outstanding commitments from third party investors (Level 2).

Loans held for sale, at fair value:  The Company elected the fair value option for all conventional residential one-to four-family loans held for sale originated after January 1, 2016 and all permanent construction loans held for sale originated on or after January 1, 2015.   The fair value of conventional loans held for sale is determined using the current 15 day forward contract price for either 15 or 30 year conventional mortgages (Level 2).

The fair value of the Company’s permanent construction loans held for sale is determined using the current 60 day forward contract price for 30 year conventional loans which is then adjusted by extrapolating this rate to the estimated time period remaining until construction is complete.  The fair value is also adjusted for unobservable market data such as estimated fall out rates and the estimated time from origination to completion of construction (Level 3).  

Interest rate caps: Home Savings uses an independent third party that performs a market valuation analysis for interest rate caps. The methodology used consists of a discounted cash flow model, all future floating cash flows are projected and both floating and fixed cash flows are discounted to the valuation date. The yield curve utilized for discounting and projecting is built by obtaining publicly available third party market quotes from Reuters, which handle up to 30-year swap maturities (Level 3). Assumptions used in the valuation of interest rate caps are back-tested for reasonableness on a quarterly basis using an independent source along with a third party service.

Purchased and written certificate of deposit option: Home Savings periodically enters into written and purchased option derivative instruments to facilitate the Power CD. The written and purchased options are mirror derivative instruments which are carried at fair value on the consolidated balance sheets. Home Savings uses an independent third party that performs a market valuation analysis for purchased and written certificate of deposit options. (Level 2).

Assets and Liabilities Measured on a Recurring Basis: Assets and liabilities measured at fair value on a recurring basis are summarized below:

			Fair Value Measurements at September 30, 2017 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	September 30,		Assets		Inputs		Inputs
	2017		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Available for sale securities
U.S. Treasury and government sponsored entities'    securities	$	125,060	$	—	$	125,060	$	—
States of the U.S. and political subdivisions		59,192		—		59,192
Mortgage-backed GSE securities: residential		90,570		—		90,570		—
Loans held for sale, at fair value		84,349		—		14,111		70,238
Purchased certificate of deposit option		823		—		823		—
Liabilities
Written certificate of deposit option		823		—		823		—

			Fair Value Measurements at December 31, 2016 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
	2016		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Available for sale securities
U.S. Treasury and government sponsored entities'    securities	$	186,033	$	—	$	186,033	$	—
States of the U.S. and political subdivisions		57,757		—		57,757		—
Mortgage-backed GSE securities: residential		99,494		—		99,494		—
Loans held for sale, at fair value		62,593		—		8,832		53,761
Purchased certificate of deposit option		882		—		882		—
Liabilities
Written certificate of deposit option		882		—		882		—

There were no transfers between Level 1 and Level 2 during 2017 or 2016.

The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2017 and 2016.  

	Loans Held for Sale, At Fair Value						Loans Held for Sale, At Fair Value
	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
	(Dollars in thousands)
Balance of recurring Level 3 assets at beginning of period	$	69,995		$	33,605		$	53,761		$	26,716
Total gains (losses) for the period
Included in change in fair value of loans held for sale		1,145			414			3,557			1,705
Included in other comprehensive income		—			—			—			—
Originations/Draws on construction perm loans		28,864			25,464			80,109			60,925
Amortization		—			—			—			—
Sales		(29,766	)		(12,347	)		(67,189	)		(42,210	)
Balance of recurring Level 3 assets at end of period	$	70,238		$	47,136		$	70,238		$	47,136

The following table presents quantitative information about recurring Level 3 fair value measurements at September 30, 2017:

			Valuation	Unobservable
	Fair Value		Technique(s)	Input(s)	Range
Loans held for sale, at fair value	$	70,238	Comparable sales	Time discount	0.00-1.80%

The following table presents quantitative information about recurring Level 3 fair value measurements at December 31, 2016:

			Valuation	Unobservable
	Fair Value		Technique(s)	Input(s)	Range
Loans held for sale, at fair value	$	53,761	Comparable sales	Time discount	0.00-1.80%

The fair value of loans held for sale, at fair value was determined using pricing from a quoted market, discounted for the length of time to the completion of the construction project.

Assets and Liabilities Measured on a Non-Recurring Basis: Assets and liabilities measured at fair value on a non-recurring basis are summarized below:

			Fair Value Measurements at September 30, 2017 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	September 30,		Assets		Inputs		Inputs
	2017		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Impaired loans:
Commercial loans
Multifamily	$	443	$	—	$	—	$	443
Residential loans
One-to four-family residential		536		—		—		536
Consumer loans
Home Equity		92		—		—		92
Marine		169		—		—		169
Mortgage servicing rights		125		—		125		—
Other real estate owned, net
Commercial loans
Construction loans		443		—		—		443
Residential loans
One-to four-family residential		136		—		—		136

			Fair Value Measurements at December 31, 2016 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
	2016		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Impaired loans:
Commercial loans
Nonresidential	$	2,257	$	—	$	—	$	2,257
Secured		284		—		—		284
Residential loans
One-to four-family residential		919		—		—		919
Consumer loans
Home Equity		228		—		—		228
Auto		177		—		—		177
Recreational vehicle		89		—		—		89
Other real estate owned, net
Commercial loans
Construction loans		748		—		—		748
Residential loans
One-to four-family residential		281		—		—		281

Impaired loans with specific allocations of the allowance for loan losses, carried at fair value, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a net carrying amount of $1.2 million at September 30, 2017, that includes a specific valuation allowance of $42,000. This resulted in an increase of the provision for loan losses of $92,000 and $571,000 during the three and nine months ended September 30, 2017, respectively. Impaired loans with specific allocations of the allowance for loan losses, carried at fair value, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a net carrying amount of $7.7 million at September 30, 2016, which includes a specific valuation allowance of $989,000. This resulted in an increase in the provision for loan losses of $134,000 and $3.7 million for the three and nine months ended September 30, 2016.  Impaired loans with specific allocations of the allowance for loan losses, carried at fair value, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a net carrying amount of $4.0 million at December 31, 2016, that includes a specific valuation allowance of $1.3 million.

The significant unobservable (Level 3) inputs used in the fair value measurement of collateral for collateral dependent impaired loans included in the above table primarily relate to the adjustment between carrying values versus appraised value. During the reported periods, discounts applied to appraisals for estimated selling costs were 10%.

At September 30, 2017, mortgage servicing rights carried at fair value were $125,000, with a net valuation allowance of $15,000.  At September 30, 2016, mortgage servicing rights, carried at fair value totaled $3.3 million, resulting in a net valuation allowance of $741,000.  Mortgage servicing rights are valued by an independent third party that is active in purchasing and selling these instruments.  Net impairment reflected in other income totaled $10,000 and $15,000 for the three and nine months ended September 30, 2017, respectively.  Net (recovery) impairment reflected in other income totaled $(25,000) and $702,000 for the three and nine months ended September 30, 2016.  The value reflects the characteristics of the underlying loans.  

At September 30, 2017, other real estate owned, carried at fair value, which is measured for impairment using the fair value of the property less estimated selling costs, and had a net carrying amount of $580,000, with a valuation allowance of $423,000. This resulted in expense of $53,000 and $15,000 during the three and nine months ended September 30, 2017.  At September 30, 2016, other real estate owned, carried at fair value, which is measured for impairment using the fair value of the property less estimated selling costs, and had a net carrying amount of $1.0 million with a valuation allowance of $1.0 million. This resulted in an expense (recovery) of $1,000 and $(25,000) during the three and nine months ended September 30, 2016, respectively. At December 31, 2016, other real estate owned had a net carrying amount of $1.0 million, with a valuation allowance of $1.0 million.

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at September 30, 2017:

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial loans
Multi Family	$	443	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-35.00%  (15.00%)
Residential loans
One-to four-family residential		536	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-10.77%  (4.27%)
Consumer loans
Home Equity		92	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-17.85%  (8.93%)
Marine		169	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-37.00%  (37.00%)
Other real estate owned, net
Commercial loans
Construction loans		443	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-80.00%(24.03%)
Residential loans
One-to four-family residential		136	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-0.00%  (0.00%)

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at December 31, 2016:

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial loans
Nonresidential	$	2,257	Sales comparison approach	Adjustment for differences between comparable sales	0.00-35.00%  (15.00%)
Secured		284	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-64.00%  (16.00%)
Residential loans
One-to four-family residential		919	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-10.77%  (4.27%)
Consumer loans
Home Equity		228	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-17.85%  (8.93%)
Other real estate owned:
Commercial loans
Construction loans		748	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-90.40%  (27.46%)
			Cost approach	Adjustment for differences in cost	0.00%-33.33%  (16.67%)
Residential loans
One-to four-family residential		281	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-27.00%  (7.74%)

Auto and recreational vehicle loans were excluded from the table above as their value is considered immaterial.

The Company has elected the fair value option for newly originated residential mortgage and permanent construction loans held for sale.  These loans are intended for sale and the Company believes that fair value is the best indicator of the resolution of these loans.  Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policy on loans held for investment.  None of these loans are 90 or more days past due nor on nonaccrual status as of September 30, 2017 and December 31, 2016.  

	September 30, 2017		December 31, 2016
	(Dollars in thousands)
Aggregate fair value	$	84,349	$	62,593
Contractual balance		80,611		62,843
Gain (loss)		3,738		(250	)

The total amount of gains and losses from changes in fair value included in earnings for the three and nine months ended September 30, 2017 and 2016 for loans held for sale, at fair value were:

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
	(Dollars in thousands)
Interest  income	$	—	$	—	$	—	$	—
Interest expense		—		—		—		—
Change in fair value		1,088		556		3,988		2,205
Total change in fair value	$	1,088	$	556	$	3,988	$	2,205

In accordance with U.S. GAAP, the carrying value and estimated fair values of financial instruments at September 30, 2017 and December 31, 2016, were as follows:

				Fair Value Measurements at September 30, 2017 Using:
	September 30,
	2017
	Carrying Value			(Level 1)			(Level 2)			(Level 3)
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	38,010		$	38,010		$	—		$	—
Available for sale securities		274,822			—			274,822			—
Held to maturity securities		85,549			—			85,024			—
Loans held for sale		196			—			203			—
Loans held for sale, at fair value		84,349			—			14,111			70,238
Loans, net		1,947,695			—			—			1,942,267
FHLB stock		19,324		n/a			n/a			n/a
Accrued interest receivable		7,253			—			1,733			5,520
Purchased certificate of deposit option		823			—			823			—
Liabilities:
Deposits:
Checking, savings and money market accounts		(1,241,779	)		(1,241,779	)		—			—
Certificates of deposit		(696,920	)		—			(698,045	)		—
FHLB advances		(328,341	)		—			(328,342	)		—
Repurchase agreements and other		(10,191	)		—			(9,911	)		—
Advance payments by borrowers for taxes and insurance		(16,048	)		(16,048	)		—			—
Accrued interest payable		(722	)		—			(722	)		—
Written certificate of deposit option		(823	)		—			(823	)		—

				Fair Value Measurements at December 31, 2016 Using:
	December 31,
	2016
	Carrying Value			(Level 1)			(Level 2)			(Level 3)
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	45,887		$	45,887		$	—		$	—
Available for sale securities		343,284			—			343,284			—
Held to maturity securities		97,519			—			92,940			3,210
Loans held for sale at lower of cost or market		165			—			169			—
Loans held for sale, at fair value		62,593			—			8,832			53,761
Loans, net		1,503,577			—			—			1,494,534
FHLB stock		18,068		n/a			n/a			n/a
Accrued interest receivable		6,900			—			2,624			4,276
Purchased certificate of deposit option		882			—			882			—
Liabilities:
Deposits:
Checking, savings and money market accounts		(1,026,565	)		(1,026,565	)		—			—
Certificates of deposit		(488,426	)		—			(491,278	)		—
FHLB advances		(390,756	)		—			(390,750	)		—
Repurchase agreements and other		(512	)		—			(513	)		—
Advance payments by borrowers for taxes and insurance		(23,812	)		(23,812	)		—			—
Accrued interest payable		(145	)		—			(145	)		—
Written certificate of deposit option		(882	)		—			(882	)		—

The methods and assumptions, not previously presented, used to estimate fair values are described as follows:

(a) Cash and Cash Equivalents

The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1.

(b) FHLB Stock

It is not practical to determine the fair value of FHLB stock due to restrictions placed on its transferability.

(c) Held to maturity securities

Fair values for held to maturity securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows.

(d) Loans

Fair values of loans, excluding loans held for sale, are estimated as follows: for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification; fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification; and impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price.

(e) Deposits

The fair values disclosed for demand deposits (e.g., interest and non-interest checking, savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 1 classification. The carrying amounts of variable rate, fixed-term money market accounts approximate their fair values at the reporting date resulting in a Level 1 classification. Fair values for fixed and variable rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates of deposit to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification.

(f) Other Borrowings

Short-term borrowings, generally maturing within 90 days, approximate their fair values resulting in a Level 2 classification. The fair values of Home Savings long-term borrowings are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification.

(g) Accrued Interest Receivable/Payable

The carrying amounts of accrued interest approximate fair value resulting in a Level 2 or Level 3 classification, depending on the classification of the underlying asset or liability.

(h) Off-balance Sheet Instruments

Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments is not material.

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STATEMENT OF CASH FLOWS SUPPLEMENTAL DISCLOSURE

9 Months Ended

Sep. 30, 2017

Supplemental Cash Flow Elements [Abstract]

STATEMENT OF CASH FLOWS SUPPLEMENTAL DISCLOSURE

10. STATEMENT OF CASH FLOWS SUPPLEMENTAL DISCLOSURE

Supplemental disclosures of cash flow information are summarized below.

	For the Nine Months Ended September 30,
	2017		2016
	(Dollars in thousands)
Supplemental disclosures of cash flow information
Cash paid  during the period for:
Interest on deposits and borrowings	$	8,611	$	6,203
Income taxes		425		275
Supplemental schedule of noncash activities:
Transfers from loans to real estate owned and other repossessed assets		651		813
Transfers from loans to loans held for sale		27,921		—
Transfers from premises and equipment to other assets, held for sale		1,720		—
Accretion of securities held to maturity		151		181
Issuance of common stock - James & Sons acquisition		—		1,547
Issuance of common stock - Ohio Legacy Corp. acquisition		25,816		—
Net assets acquired from Ohio Legacy Corp., excluding cash and cash equivalents		36		—

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EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

EARNINGS PER SHARE

11. EARNINGS PER SHARE

The Company has granted stock compensation awards with nonforfeitable dividend rights which are considered participating securities. As such, earnings per share is computed using the two-class method as required by ASC 206-10-45. Basic earnings per common share is computed by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding during the period which excludes the participating securities. Diluted earnings per common share includes the dilutive effect of additional potential common shares from stock compensation awards, but also excludes awards considered participating securities. No stock options were anti-dilutive for the three and nine months ended September 30, 2017.  No stock options were anti-dilutive for the three months and nine months ended September 30, 2016.  

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
	(Dollars in thousands, except per share data)
Net income per consolidated statements of income	$	7,556		$	5,153		$	17,283		$	13,803
Net income allocated to participating securities		(42	)		(38	)		(108	)		(88	)
Net income allocated to common stock	$	7,514		$	5,115		$	17,175		$	13,715
Basic earnings per common share computation:
Distributed earnings allocated to common stock	$	1,979		$	1,385		$	4,941		$	3,753
Undistributed earnings allocated to common stock		5,535			3,730			12,234			9,962
Net income allocated to common stock	$	7,514		$	5,115		$	17,175		$	13,715
Weighted average common shares outstanding, including shares    considered participating securities		49,736			46,508			49,353			47,104
Less: Average participating securities		(276	)		(341	)		(308	)		(302	)
Weighted average shares		49,460			46,167			49,045			46,802
Basic earnings per common share	$	0.15		$	0.11		$	0.35		$	0.29
Diluted earnings per common share computation:
Net income allocated to common stock	$	7,514		$	5,115		$	17,175		$	13,715
Weighted average common shares outstanding for basic    earnings per common share		49,460			46,167			49,045			46,802
Add: Dilutive effects of assumed exercises of stock options and LTIP    awards		391			225			396			214
Weighted average shares and dilutive potential common shares		49,851			46,392			49,441			47,016
Diluted earnings per common share	$	0.15		$	0.11		$	0.35		$	0.29

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OTHER COMPREHENSIVE INCOME (LOSS)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

OTHER COMPREHENSIVE INCOME (LOSS)

12. OTHER COMPREHENSIVE INCOME (LOSS)

Other comprehensive income (loss) included in the consolidated statements of shareholders’ equity consists of unrealized gains and losses on available for sale securities, disproportional tax effects and changes in unrealized gains and losses on the postretirement liability. The change includes reclassification of net gains or (losses) on sales of securities of $236,000 and $218,000 for the three months ended September 30, 2017 and 2016, respectively and $566,000 and $604,000 for the nine months ended September 30, 2017 and 2016, respectively.  Reclassifications also include amortization of unrealized gains on postretirement plan and accretion of unrealized loss on held to maturity securities.    

Other comprehensive income (loss) components and related tax effects for the three-month periods are as follows:

	Unrealized Gains (Losses) on Securities Availablefor Sale			Disproportionate Tax Effect from Securities Available for Sale			Losses on Securities Transferred From Available for Sale to Held to Maturity			Total
September 30, 2017	(Dollars in thousands)
Balances at beginning of period, net of tax	$	(603	)	$	(17,110	)	$	(735	)	$	(18,448	)
Other comprehensive income before    reclassifications		639			—			—			639
Accretion of unrealized losses of securities    transferred from available for sale to    held to maturity recognized in other    comprehensive income		—			—			33			33
Reclassification adjustment for gains realized    in income		(153	)		—			—			(153	)
Net current period other comprehensive income		486			—			33			519
Balances at end of period, net of tax	$	(117	)	$	(17,110	)	$	(702	)	$	(17,929	)

	Unrealized Gains (Losses) on Securities Available for Sale			Disproportionate Tax Effect from Securities Available for Sale			Losses on Securities Transferred From Available for Sale to Held to Maturity			Unrealized Gains (Losses) from Postretirement Plan			Disproportionate Tax Effect from Postretirement Plan		Total
September 30, 2016	(Dollars in thousands)
Balances at beginning of period,    net of tax	$	8,379		$	(17,110	)	$	(889	)	$	469		$	511	$	(8,640	)
Other comprehensive income    before reclassifications		(1,227	)		—			—			—			—		(1,227	)
Amortization of unrealized gains    of postretirement plan    recognized in other    comprehensive income		—			—			—			(289	)		—		(289	)
Accretion of unrealized losses of    securities transferred from    available for sale to held    to maturity recognized in    other comprehensive income		—			—			47			—			—		47
Reclassification adjustment for    gains realized in income		(142	)		—			—			—			—		(142	)
Net current period other    comprehensive income		(1,369	)		—			47			(289	)		—		(1,611	)
Balances at end of period, net of    tax	$	7,010		$	(17,110	)	$	(842	)	$	180		$	511	$	(10,251	)

Other comprehensive income (loss) components and related tax effects for the nine-month periods are as follows:

	Unrealized Gains (Losses) on Securities Availablefor Sale			Disproportionate Tax Effect from Securities Available for Sale			Losses on Securities Transferred From Available for Sale to Held to Maturity			Total
September 30, 2017	(Dollars in thousands)
Balances at beginning of period, net of tax	$	(3,130	)	$	(17,110	)	$	(800	)	$	(21,040	)
Other comprehensive income before    reclassifications		3,381			—			—			3,381
Accretion of unrealized losses of securities    transferred from available for sale to held    to maturity recognized in other    comprehensive income		—			—			98			98
Reclassification adjustment for gains realized    in income		(368	)		—			—			(368	)
Net current period other comprehensive    income		3,013			—			98			3,111
Balances at end of period, net of tax	$	(117	)	$	(17,110	)	$	(702	)	$	(17,929	)

	Unrealized Gains (Losses) on Securities Available for Sale			Disproportionate Tax Effect from Securities Available for Sale			Losses on Securities Transferred From Available for Sale to Held to Maturity			Unrealized Gains (Losses) from Postretirement Plan			Disproportionate Tax Effect from Postretirement Plan		Total
September 30, 2016	(Dollars in thousands)
Balances at beginning of period,    net of tax	$	(2,492	)	$	(17,110	)	$	(960	)	$	831		$	511	$	(19,220	)
Other comprehensive income    before reclassifications		9,895			—						—			—		9,895
Amortization of unrealized    gains of postretirement plan    recognized in other    comprehensive income		—			—			—			(651	)		—		(651	)
Accretion of unrealized losses    of securities transferred    from available for sale to    held to maturity recognized    in other comprehensive    income		—			—			118			—			—		118
Reclassification adjustment    for gains realized in income		(393	)		—			—			—			—		(393	)
Net current period other    comprehensive income		9,502			—			118			(651	)		—		8,969
Balances at end of period, net of    tax	$	7,010		$	(17,110	)	$	(842	)	$	180		$	511	$	(10,251	)

As of June 30, 2014, management concluded it was more likely than not that the Company’s net deferred tax asset (DTA) would be realized and accordingly determined a full deferred tax valuation allowance was no longer required. Upon reversal of the former full deferred tax valuation allowance as of June 30, 2014, certain disproportionate tax effects are retained in accumulated other comprehensive income (loss) totaling approximately a ($16.6) million loss. Almost the entire disproportionate tax effect is attributable to valuation allowance expense recorded through other comprehensive income (loss) on the tax benefit of losses sustained on the available for sale securities portfolio while the Company was in a full deferred tax valuation allowance. This valuation allowance was appropriately reversed through continuing operations at June 30, 2014, leaving the original expense in accumulated other comprehensive income (loss), where it will remain in accordance with the Company’s election of the “portfolio approach”, until such time as the Company would cease to have an available for sale security portfolio.

The following are significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the three months ended September 30, 2017:

	Amount Reclassified			Affected Line Item on
	From Accumulated			the Statement Where
Details About Accumulated Other Comprehensive	Other Comprehensive			Net Income is
Income Components	Income			Presented
	(Dollars in thousands)
Realized net gains on the sale of available for sale securities	$	236		Net gains on securitiesavailable for sale
		(83	)	Tax expense
Total reclassification during the period	$	153		Net of tax, increase to net income

The following are significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the three months ended September 30, 2016:

	Amount Reclassified			Affected Line Item on
	From Accumulated			the Statement Where
Details About Accumulated Other Comprehensive	Other Comprehensive			Net Income is
Income Components	Income			Presented
	(Dollars in thousands)
Realized net gains on the sale of available for sale securities	$	218		Net gainson securitiesavailable for sale
		(76	)	Tax expense
		142		Net of tax
Amortization of postretirement benefits prior service costs		445		Reduction in salaries and employee benefits
		(156	)	Tax expense
		289		Net of tax
Total reclassification during the period	$	431		Increase to net income

The following are significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the nine months ended September 30, 2017:

	Amount Reclassified			Affected Line Item on
	From Accumulated			the Statement Where
Details About Accumulated Other Comprehensive	Other Comprehensive			Net Income is
Income Components	Income			Presented
	(Dollars in thousands)
Realized net gains on the sale of available for sale securities	$	566		Net gains on securitiesavailable for sale
		(198	)	Tax expense
Total reclassification during the period	$	368		Net of tax, increase to net income

The following are significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the nine months ended September 30, 2016:

	Amount Reclassified			Affected Line Item on
	From Accumulated			the Statement Where
Details About Accumulated Other Comprehensive	Other Comprehensive			Net Income is
Income Components	Income			Presented
	(Dollars in thousands)
Realized net gains on the sale of available for sale securities	$	604		Net gainson securitiesavailable for sale
		(211	)	Tax expense
		393		Net of tax
Amortization of postretirement benefits prior service costs		1,001		Reduction in salaries and employee benefits
		(350	)	Tax expense
		651		Net of tax
Total reclassification during the period	$	1,044		Increase to net income

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REGULATORY CAPITAL REQUIREMENTS

9 Months Ended

Sep. 30, 2017

Banking And Thrift [Abstract]

REGULATORY CAPITAL REQUIREMENTS

13. REGULATORY CAPITAL REQUIREMENTS

Home Savings and United Community are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on Home Savings and United Community. The regulations require Home Savings to meet specific capital adequacy guidelines in keeping with the regulatory framework for prompt corrective action that involve quantitative measures of Home Savings’ assets, liabilities, and certain off balance sheet items as calculated under regulatory accounting practices. Home Savings’ capital classification is also subject to qualitative judgments by the regulators about components of capital, risk weightings, and other factors.

The Basel III Capital Rules establish a common equity Tier 1 minimum capital requirement (4.5% of risk-weighted assets), a minimum Tier 1 capital to risk-based assets requirement (6% of risk-weighted assets) and assigns a risk weight (150%) to exposures that are more than 90 days past due or are on nonaccrual status and to certain commercial real estate facilities that finance the acquisition, development or construction of real property. The rules also require unrealized gains and losses on certain available-for-sale securities holdings to be included for purposes of calculating regulatory capital requirements unless a one-time opt-in or opt-out is exercised. In connection with the adoption of the Basel III Capital Rules, United Community and Home Savings elected to opt-out of the requirement to include most components of accumulated other comprehensive income in Common Equity Tier 1.  The rule limits a banking organization’s capital distributions and certain discretionary bonus payments if the banking organization does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital risk-based weighted assets in addition to the amount necessary to meeting its minimum risk-based capital requirements.

The capital conservation buffer requirement will be phased in through January 1, 2019, when the full capital conservation buffer requirement will be effective. The capital conservation buffer for 2017 is 1.25%.  The capital conservation buffer for 2016 was 0.625%.  The final rule also implemented consolidated capital requirements.

Quantitative measures established by regulation for capital adequacy require Home Savings to maintain minimum ratios of Tier 1 (or Core) capital (as defined in the regulations) to average total assets (as defined) and of total risk-based capital (as defined) to risk-weighted assets (as defined).  United Community and Home Savings’ Common Equity Tier 1 capital consists of common stock and related paid-in capital, net of treasury stock, and retained earnings. Common Equity Tier 1 for both United Community and Home Savings is reduced by intangible assets, net of associated deferred tax liabilities and subject to transition provisions. Actual and regulatory required capital ratios for Home Savings, along with the dollar amount of capital implied by such ratios, are presented below.

	September 30, 2017
											To Be Well Capitalized
						Minimum Capital					Under Prompt
						Requirements For Capital					Corrective Action
	Actual					Adequacy Purposes***					Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
Total capital (to risk-weighted assets)	$	287,665		14.74	%	$	180,469		9.25	%	$	195,101		10.00	%
Tier 1 capital (to risk-weighted assets)		267,141		13.69	%		141,448		7.25	%		156,081		8.00	%
Common equity Tier 1 capital (to risk-weighted    assets)		267,141		13.69	%		112,183		5.75	%		126,816		6.50	%
Tier 1 capital (to average assets)**		267,141		10.46	%		102,142		4.00	%		127,677		5.00	%

	December 31, 2016
											To Be Well Capitalized
						Minimum Capital					Under Prompt
						Requirements					Corrective Action
	Actual					Per Regulation***					Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
Total capital (to risk-weighted assets)	$	248,861		16.47	%	$	130,292		8.625	%	$	151,063		10.00	%
Tier 1 capital (to risk-weighted assets)		229,938		15.22	%		100,079		6.625	%		120,850		8.00	%
Common equity Tier 1 capital (to risk-weighted    assets)		229,938		15.22	%		77,420		5.125	%		98,191		6.50	%
Tier 1 capital (to average assets)**		229,938		10.65	%		86,360		4.000	%		107,950		5.00	%

** Tier 1 Leverage Capital Ratio

*** The capital ratios are reflective of the capital conservation buffer

Management believes that as of September 30, 2017 and December 31, 2016, Home Savings met all capital adequacy requirements to which it was subject.  As of September 30, 2017 and December 31, 2016, Home Savings met the capital requirements to be deemed well capitalized. There are no known conditions that would change this classification subsequent to September 30, 2017.  

The components of Home Savings’ regulatory capital are as follows:

	September 30, 2017			December 31, 2016
Total shareholders' equity	$	272,589		$	216,475
Add (deduct)
Accumulated other comprehensive income		17,944			21,056
Intangible assets		(20,241	)		(3	)
Disallowed deferred tax assets		(3,151	)		(7,590	)
Disallowed capitalized mortgage loan servicing rights		—			—
Tier 1 Capital		267,141			229,938
Allowance for loan losses and allowance for unfunded lending commitments    limited to 1.25% of total risk-weighted assets		20,524			18,923
Total risk-based capital	$	287,665		$	248,861

Actual and regulatory required consolidated capital ratios for United Community, along with the dollar amount of capital implied by such ratios, are presented below.

	September 30, 2017
						Minimum Capital
						Requirements
	Actual					Per Regulation***
	Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
Total capital (to risk-weighted assets)	$	300,578		15.38	%	$	180,758		9.25	%
Tier 1 capital (to risk-weighted assets)		280,023		14.33	%		141,675		7.25	%
Common equity Tier 1 capital (to risk-weighted assets)		280,023		14.33	%		112,363		5.75	%
Tier 1 capital (to average assets)**		280,023		10.95	%		102,306		4.00	%
	December 31, 2016
						Minimum Capital
						Requirements
	Actual					Per Regulation***
	Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
Total capital (to risk-weighted assets)	$	277,817		18.38	%	$	130,369		8.625	%
Tier 1 capital (to risk-weighted assets)		258,869		17.13	%		100,139		6.625	%
Common equity Tier 1 capital (to risk-weighted assets)		258,869		17.13	%		77,466		5.125	%
Tier 1 capital (to average assets)**		258,869		11.98	%		86,425		4.000	%

** Tier 1 Leverage Capital Ratio

*** The capital ratios are reflective of the capital conservation buffer

The components of United Community’s consolidated regulatory capital are as follows:

	September 30, 2017			December 31, 2016
Total shareholders' equity	$	291,851		$	249,806
Add (deduct)
Accumulated other comprehensive income		17,929			21,040
Intangible assets		(22,773	)		(1,567	)
Disallowed deferred tax assets		(6,984	)		(10,410	)
Disallowed capitalized mortgage loan servicing rights		—			—
Tier 1 Capital		280,023			258,869
Allowance for loan losses and allowance for unfunded lending commitments    limited to 1.25% of total risk-weighted assets		20,555			18,948
Total risk-based capital	$	300,578		$	277,817

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INCOME TAXES

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

INCOME TAXES

14. INCOME TAXES

Significant components of the deferred tax assets and liabilities are as follows:

	September 30,		December 31,
	2017		2016
	(Dollars in thousands)
Deferred tax assets:
Loan loss reserves	$	7,194	$	6,680
Depreciation		940		748
Other real estate owned valuation		148		354
Tax credits carryforward		2,816		1,471
Unrealized loss on securities available for sale		62		1,685
Unrealized loss on securities held to maturity		378		431
Interest on nonaccrual loans		887		1,039
Net operating loss carryforward		4,613		8,574
Purchase accounting adjustment		781		—
Accrued bonuses		991		812
Other		80		221
Deferred tax assets		18,890		22,015
Deferred tax liabilities:
Deferred loan fees		1,772		1,275
Federal Home Loan Bank stock dividends		4,645		4,585
Mortgage servicing rights		2,257		2,124
FHLB prepayment penalty		649		786
Purchase accounting adjustment		—		371
Prepaid expenses		555		139
Deferred tax liabilities		9,878		9,280
Net deferred tax asset	$	9,012	$	12,735

As of September 30, 2017, the net deferred tax asset was $9.0 million, and as of December 31, 2016, the net deferred tax asset was $12.7 million.

The Company’s ultimate realization of the net deferred tax asset is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible. Management considers the nature and amount of historical and projected future taxable income, the scheduled reversal of deferred tax assets and liabilities, and available tax planning strategies in making this assessment. The amount of deferred taxes recognized could be impacted by changes to any of these variables.

United Community’s net operating loss of $13.2 million at September 30, 2017 will be carried forward to use against future taxable income. The net operating loss carryforwards begin to expire in the year ending December 31, 2030. In addition, United Community is carrying forward $2.8 million of alternative minimum tax credits. The alternative minimum tax credits are carried forward indefinitely.

Effective tax rates differ from the statutory federal income tax rate of 35% due to the following:

	For the Three Months Ended September 30,
	2017						2016
	Dollars			Rate			Dollars			Rate
	(Dollars in thousands)
Tax at statutory rate:	$	3,718			35.00	%	$	2,604			35.00	%
Increase (decrease) due to:
Tax exempt income		(164	)		(1.54	)%		(142	)		(1.91	)%
Life insurance		(148	)		(1.39	)%		(132	)		(1.78	)%
Stock compensation		(102	)		(0.96	)%		—			—	%
Other		(237	)		(2.23	)%		(42	)		(0.56	)%
Income tax provision	$	3,067			28.88	%	$	2,288			30.75	%

	For the Nine Months Ended September 30,
	2017						2016
	Dollars			Rate			Dollars			Rate
	(Dollars in thousands)
Tax at statutory rate:	$	8,499			35.00	%	$	7,074			35.00	%
Increase (decrease) due to:
Tax exempt income		(499	)		(2.05	)%		(327	)		(1.62	)%
Life insurance		(416	)		(1.71	)%		(388	)		(1.92	)%
Stock compensation		(300	)		(1.24	)%		—			—	%
Other		(283	)		(1.17	)%		50			0.25	%
Income tax provision	$	7,001			28.83	%	$	6,409			31.71	%

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GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

15. GOODWILL AND INTANGIBLE ASSETS

Goodwill:

The change in goodwill during the periods presented is as follows:

	September 30, 2017		December 31, 2016
	(In thousands)
Beginning of the year	$	208	$	—
Effect of adjustments-James & Sons Insurance		636		—
Acquired goodwill-OLCB		18,420		—
Effect of adjustments-OLCB		15		—
Acquired goodwill-Eich Brothers Insurance		188		—
Acquired goodwill-Stevens Insurance		21		—
Acquired goodwill-James & Sons Insurance		—		208
Impairment	—		—
End of the year	$	19,488	$	208

The changes to goodwill during the nine months ended September 30, 2017 are primarily due to changes in the final market value for the customer list intangible asset, as well as the related tax effect from those adjustments related to the James & Sons acquisition in January 2016.  

Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value.  If the carrying amount of a reporting unit is zero or less than zero, a qualitative analysis of whether it is more likely than not that the reporting unit goodwill is impaired will be performed.  The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment.  The Company did not have any reporting units with a carrying amount of zero or less than zero at September 30, 2017 or December 31, 2016.

Acquired Intangible Assets:

	September 30, 2017				December 31, 2016
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
	(In thousands)
Amortized intangible assets:
Core deposit intangibles	$	11,184	$	9,167	$	8,952	$	8,947
Customer list intangible		2,222		132		1,400		44
Total	$	13,406	$	9,299	$	10,352	$	8,991

Core deposit intangible:

	For the nine months ended September 30, 2017			For the year ended December 31, 2016
	(In thousands)
Beginning of the year	$	5		$	30
Acquired core deposit intangible-OLCB		2,232			—
Amortization		(220	)		(25	)
End of the period	$	2,017		$	5

Customer list intangible:

	For the nine months ended September 30, 2017			For the year ended December 31, 2016
	(In thousands)
Beginning of the year	$	1,356		$	—
Effect of adjustments-James & Sons Insurance		(41	)		—
Acquired customer list intangible-OLCB		268			—
Acquired customer list intangible-Eich Brothers Insurance		535			—
Acquired customer list intangible-Stevens Insurance		60			—
Acquired customer list intangible-James & Sons Insurance		—			1,400
Amortization		(88	)		(44	)
End of the period	$	2,090		$	1,356

Aggregate amortization expense for the three months ended September 30, 2017 and 2016 was $113,000 and $72,000, respectively.  Aggregate amortization expense for the nine months ended September 30, 2017 and 2016 was $308,000 and $95,000, respectively.  Estimated amortization expense for the remainder of 2017 and the next five years is as follows:

Remainder of 2017	$	112,000
2018		448,000
2019		448,000
2020		448,000
2021		448,000
2022		448,000

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QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS

9 Months Ended

Sep. 30, 2017

Federal Home Loan Banks [Abstract]

QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS

16. QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS

The Company invests in qualified affordable housing projects.  At September 30, 2017 and December 31, 2016, the balance of the investment for qualified affordable housing projects was $5.8 million and $3.0 million, respectively.  These balances are reflected in other assets on the consolidated balance sheet.  Total unfunded commitments related to the investments in qualified affordable housing projects totaled $5.7 million and $2.9 million at September 30, 2017 and December 31, 2016, respectively.  The Company expects to fulfill these commitments over the next eight to ten years.

During the three months ended September 30, 2017 and 2016, the Company recognized amortization expense of $44,000 and $5,000, respectively, which was included within income tax expense on the consolidated statements of income. During the nine months ended September 30, 2017 and 2016, the Company recognized amortization expense of $134,000 and $5,000, respectively.

Additionally, during the three months ended September 30, 2017 and 2016, the Company recognized tax credits and other benefits from its investment in affordable housing tax credits of $55,000 and $6,000, respectively.  During the nine months ended September 30, 2017 and 2016, the Company recognized tax credits and other benefits from its investment in affordable housing tax credits of $165,000 and $6,000, respectively.  During the three and nine months ended September 30, 2017 and 2016, the Company incurred no impairment losses.

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RECENT ACCOUNTING DEVELOPMENTS (Policies)

9 Months Ended

Sep. 30, 2017

Accounting Changes And Error Corrections [Abstract]

Revenue from Contracts with Customers

In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606).  The ASU implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 was originally going to be effective on January 1, 2017; however, the FASB recently issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date which deferred the effective date of ASU 2014-09 by one year to January 1, 2018. United Community’s revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. We expect that ASU 2014-09 will require us to change how we recognize certain insurance commissions and fees; however, we do not expect these changes to have a significant impact on our financial statements. Additional disclosures will be required to provide quantitative and qualitative information regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.

Recognition and Measurement of Financial Assets and Financial Liabilities

In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (viii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The new guidance is effective for annual reporting periods and interim reporting periods within those annual periods, beginning after December 15, 2017.  Management is currently evaluating the impact of the adoption of this guidance on the Company’s consolidated financial statements and expects revisions to disclosures included in the consolidated financial statements.

Leases

In February 2016, the FASB issued ASU 2016-02 - Leases (Topic 842). The ASU will require all organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additional qualitative and quantitative disclosures will be required so that users can understand more about the nature of an entity’s leasing activities. The new guidance is effective for annual reporting periods and interim reporting periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted. Management is currently evaluating the impact of the adoption of this guidance on the Company’s consolidated financial statements and expects to recognize an increase in other assets and other liabilities for the rights and obligations created by leasing of branch offices.  Management also expects minimal impact in the income statement with respect to occupancy expense related to leases.

Improvements to Employee Share-Based Payment Accounting

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC Topic 718, Compensation - Stock Compensation. The ASU includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements.  Key provisions include the elimination of “windfall pools” and removes the requirement to delay recognition of a windfall tax benefit until it reduces current taxes payable.  Additionally, the simplification permits entities to withhold an amount up to the employees’ maximum individual tax rate in the relevant jurisdiction without resulting in a liability classification of the award.  Entities are now permitted to make accounting policy elections for the impact of forfeitures on the recognition of expense for share-based payment awards.  This ASU was adopted on January 1, 2017.  The Company recognized a tax benefit of $300,000 in income tax expense during the nine months ended September 30, 2017 as a result of adoption related to vesting of restricted stock awards and exercised stock options.

In May 2017, the FASB issuedASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting . ASU 2017-09 applies to entities that change the terms or conditions of a share-based payment award.  The FASB adopted ASU 2017-09 to provide clarity and reduce diversity in practice as well as cost and complexity when applying the guidance in Topic 718, Compensation—Stock Compensation , to the modification of the terms and conditions of a share-based payment award.

The amendments in ASU 2017-09 include guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718.

These amendments require the entity to account for the effects of a modification unless all of the following conditions are met:

• The fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or value using an alternative measurement method) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification;

• The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and

• The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified.

The amendments are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period for. The amendments should be applied prospectively to an award modified on or after the adoption date.  The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

Measurement of Credit Losses on Financial Instruments

In June 2016, FASB Issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.   This ASU adds a new Topic 326 to the Codification and removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. Under current U.S. GAAP, companies generally recognize credit losses when it is probable that the loss has been incurred. The revised guidance will remove all recognition thresholds and will require companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the company expects to collect over the instrument’s contractual life. ASU 2016-13 also amends the credit loss measurement guidance for available-for-sale debt securities and beneficial interests in securitized financial assets. The guidance in ASU 2016-13 is effective for “public business entities,” as defined, that are SEC filers for fiscal years, and for interim periods with those fiscal years, beginning after December 15, 2019.  Early adoption of the guidance is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Management is currently evaluating the impact of the adoption of this guidance on the Company’s consolidated financial statements.  Management is aggregating the necessary data requirements and addressing any data-archiving improvements necessary for the implementation of this ASU.

Classification of Certain Cash Receipts and Cash Payments

In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments, which amends the guidance in ASC 230 on the classification of certain cash receipts and payments in the statement of cash flows. The primary purpose of the ASU is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic. The ASU’s amendments add or clarify guidance on eight cash flow issues:

• Debt prepayment or debt extinguishment costs.

• Settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing.

• Contingent consideration payments made after a business combination.

• Proceeds from the settlement of insurance claims.

• Proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies.

• Distributions received from equity method investees.

• Beneficial interests in securitization transactions.

• Separately identifiable cash flows and application of the predominance principle.

For public business entities, the guidance in the ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years.  Early adoption is permitted for all entities. Entities must apply the guidance retrospectively to all periods presented but may apply it prospectively from the earliest date practicable if retrospective application would be impracticable.  Management is currently evaluating the impact of the adoption of this guidance on the Company’s consolidated financial statements.

Simplifying the Test for Goodwill Impairment

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU eliminates Step 2 from the goodwill impairment test. Instead, under the new guidance, an entity is to perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. The new guidance is effective for annual reporting periods, and interim reporting periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this guidance is not expected to have an impact on the Company’s consolidated financial statements.

Premium Amortization on Purchased Callable Debt Securities

In March 2017, the FASB issuedASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. This ASU amends the amortization period for certain purchased callable debt securities held at a premium. It shortens the amortization period for the premium to the earliest call date. Under current U.S. GAAP, premiums on callable debt securities generally are amortized to the maturity date. The new guidance is effective for annual reporting periods, and interim reporting periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted for interim or annual periods. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

Distinguishing Liabilities from Equity, Derivatives and Hedging

In July 2017, the FASB ASU No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480);Derivatives and Hedging (Topic 815 ): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception.  ASU 2017-11 simplifies the accounting for certain financial instruments with down round features, a provision in an equity-linked financial instrument (or embedded feature) that provides a downward adjustment of the current exercise price based on the price of future equity offerings.

The new ASU will require companies to disregard the down round feature when assessing whether the instrument is indexed to its own stock, for purposes of determining liability or equity classification. Companies that provide earnings per share (EPS) data will adjust their basic EPS calculation for the effect of the feature when triggered (i.e., when the exercise price of the related equity-linked financial instrument is adjusted downward because of the down round feature) and will also recognize the effect of the trigger within equity.

The provisions of the new ASU related to down rounds are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities.  The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

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STOCK COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Option Activity in Plans

A summary of option activity in the plans is as follows:

	For the nine months ended
	September 30, 2017
				Weighted		Aggregate
				average		intrinsic value
	Shares			exercise price		(in thousands)
Outstanding at beginning of year		371,218		$	2.55
Granted		—			—
Exercised		(80,085	)		2.69
Forfeited and expired		(600	)		2.10
Outstanding at end of period		290,533			2.51	$	2,061
Shares subject to options exercisable at end of period		290,533			2.51	$	2,061

Information Related to Stock Options

Information related to stock options for the nine months ended September 30, 2017 and 2016 follows:

	September 30, 2017		September 30, 2016
Intrinsic value of options exercised	$	487,000	$	631,000
Cash received from option exercises		216,000		462,000
Tax benefit realized from option exercises		170,523		—
Weighted average fair value of options granted, per share	$	—	$	—

Summary of Changes in Company's Nonvested Restricted Shares

A summary of changes in the Company’s nonvested restricted shares for the nine months ended September 30, 2017 is as follows:

	For the nine months ended
	September 30, 2017
				Weighted
				average
				grant date
	Shares			fair value
Nonvested at beginning of year		341,184		$	5.50
Granted		75,875		$	8.60
Vested		(141,621	)	$	4.98
Forfeited		—		$	—
Nonvested shares at end of period		275,438		$	6.63

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BUSINESS COMBINATION (Tables) - OLCB [Member]

9 Months Ended

Sep. 30, 2017

Business Acquisition [Line Items]

Summary of Consideration Paid

The following table summarizes the consideration paid for OLCB.

	(In thousands)
Cash	$	20,379
United Community shares issued		25,816
Total fair value of consideration paid	$	46,195

Schedule of Assets Acquired and Liabilities Assumed

At the acquisition date, United Community added the following to the Company’s consolidated statements of financial position:

	(In thousands)
Cash	$	46,159
Loans		259,373
Available for sale securities		9,996
FHLB stock, at cost		1,256
Premises and equipment		2,940
Accrued interest		679
Other intangible assets		2,426
Other real estate owned		89
Other assets		7,988
Total assets acquired	$	330,906
Deposits assumed	$	266,279
Federal Home Loan Bank advances		23,500
Repurchase agreements and other borrowings		10,771
Accrued expenses and other liabilities		2,581
Total liabilities assumed	$	303,131
Goodwill created	$	18,420

Summary of Pro Forma Information

The following table presents proforma information as if the OLCB acquisition had occurred at the beginning of 2016.  The proforma information includes adjustments for interest income on loans and securities acquired, amortization of intangibles arising from the transaction, depreciation expense on property acquired, interest expense on deposits acquired, and the related income tax effects.  The proforma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effected on the assumed dates.  Net income includes the recognition of $4.1 million in acquisition related expenses incurred by United Community and $368,000 in acquisition related expenses for OLCB during the nine months ended September 30, 2017.  The impact of the acquired insurance agencies is considered immaterial and not included in the table below.  

	For the Nine Months Ended September 30,
	2017		2016
	(In thousands, except per share data)
Net interest income	$	61,185	$	55,595
Net income		16,928		16,118
Basic earnings per share	$	0.34	$	0.32
Diluted earnings per share	$	0.34	$	0.32

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SECURITIES (Tables)

9 Months Ended

Sep. 30, 2017

Components of Available for Sale Portfolio

Components of the available for sale portfolio are as follows:

	September 30, 2017
			Gross		Gross
	Amortized		unrealized		unrealized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Available for Sale
U.S. Treasury and government sponsored entities' securities	$	125,153	$	237	$	(330	)	$	125,060
States of the U.S. and political subdivisions		58,959		699		(466	)		59,192
Mortgage-backed GSE securities: residential		90,888		106		(424	)		90,570
Total	$	275,000	$	1,042	$	(1,220	)	$	274,822

	December 31, 2016
			Gross		Gross
	Amortized		unrealized		unrealized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Available for Sale
U.S. Treasury and government sponsored entities' securities	$	188,082	$	172	$	(2,221	)	$	186,033
States of the U.S. and political subdivisions		59,415		3		(1,661	)		57,757
Mortgage-backed GSE securities: residential		100,602		50		(1,158	)		99,494
Total	$	348,099	$	225	$	(5,040	)	$	343,284

Components of Held to Maturity Securities Portfolio

Components of held to maturity securities portfolio are as follows:

	September 30, 2017
			Gross		Gross
	Amortized		unrecognized		unrecognized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Held to maturity
Mortgage-backed GSE securities: residential	$	76,314	$	—	$	(615	)	$	75,699
States of the U.S. and political subdivisions		9,235		94		(4	)		9,325
Total	$	85,549	$	94	$	(619	)	$	85,024

	December 31, 2016
			Gross		Gross
	Amortized		unrecognized		unrecognized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Held to maturity
Mortgage-backed GSE securities: residential	$	85,065	$	—	$	(1,300	)	$	83,765
States of the U.S. and political subdivisions		12,454		17		(86	)		12,385
Total	$	97,519	$	17	$	(1,386	)	$	96,150

Available For Sale Securities [Member]

Debt Securities by Contractual Maturity

Debt securities available for sale by contractual maturity, repricing or expected call date are shown below:

	September 30, 2017
	Amortized cost		Fair value
	(Dollars in thousands)
Due in one year or less	$	—	$	—
Due after one year through five years		14,556		14,570
Due after five years through ten years		111,011		110,912
Due after ten years		58,545		58,770
Mortgage-backed GSE securities: residential		90,888		90,570
Total	$	275,000	$	274,822

Securities Available for Sale and Held to Maturity in Unrealized and Unrecognized Loss Position

Securities available for sale that have been in an unrealized loss position for less than twelve months or twelve months or more at September 30, 2017 are as follows:

	September 30, 2017
	Less than 12 months					12 months or more					Total
	Fair		Unrealized loss			Fair		Unrealized			Fair		Unrealized
	value		Loss			value		Loss			value		Loss
	(Dollars in thousands)
Description of securities:
U.S. Treasury and government sponsored entities	$	59,316	$	(330	)	$	—	$	—		$	59,316	$	(330	)
States of the U.S. and political subdivisions		21,789		(283	)		6,350		(183	)		28,139		(466	)
Mortgage-backed GSE securities: residential		68,648		(424	)		—		—			68,648		(424	)
Total temporarily impaired securities	$	149,753	$	(1,037	)	$	6,350	$	(183	)	$	156,103	$	(1,220	)

Securities available for sale that have been in an unrealized loss position for less than twelve months or twelve months or more at December 31, 2016 are as follows:

	December 31, 2016
	Less than 12 months					12 months or more				Total
	Fair		Unrealized loss			Fair		Unrealized		Fair		Unrealized
	value		Loss			value		Loss		value		Loss
	(Dollars in thousands)
Description of securities:
U.S. Treasury and government sponsored entities	$	171,411	$	(2,221	)	$	—	$	—	$	171,411	$	(2,221	)
States of the U.S. and political subdivisions		53,283		(1,661	)		—		—		53,283		(1,661	)
Mortgage-backed GSE securities: residential		98,775		(1,158	)		—		—		98,775		(1,158	)
Total temporarily impaired securities	$	323,469	$	(5,040	)	$	—	$	—	$	323,469	$	(5,040	)

Held To Maturity Securities [Member]

Debt Securities by Contractual Maturity

Debt securities held to maturity by contractual maturity, repricing or expected call date are shown below:

	September 30, 2017
	Amortized cost		Fair value
	(Dollars in thousands)
Due in one year or less	$	—	$	—
Due after one year through five years		—		—
Due after five years through ten years		7,285		7,357
Due after ten years		1,950		1,968
Mortgage-backed GSE securities: residential		76,314		75,699
Total	$	85,549	$	85,024

Securities Available for Sale and Held to Maturity in Unrealized and Unrecognized Loss Position

Securities held to maturity that have been in an unrecognized loss position for less than twelve months or twelve months or more are as follows:

	September 30, 2017
	Less than 12 months					12 months or more					Total
	Fair		Unrealized loss			Fair		Unrealized			Fair		Unrealized
	value		Loss			value		Loss			value		Loss
	(Dollars in thousands)
Description of securities:
Mortgage-backed GSE securities: residential	$	48,309	$	(668	)	$	27,390	$	(1,027	)	$	75,699	$	(1,695	)
States of the U.S. and political subdivisions		1,543		(4	)		—		—			1,543		(4	)
Total temporarily impaired securities	$	49,852	$	(672	)	$	27,390	$	(1,027	)	$	77,242	$	(1,699	)
	December 31, 2016
	Less than 12 months					12 months or more					Total
	Fair		Unrealized loss			Fair		Unrealized			Fair		Unrealized
	value		Loss			value		Loss			value		Loss
	(Dollars in thousands)
Description of securities:
Mortgage-backed GSE securities: residential	$	57,340	$	(1,243	)	$	26,426	$	(1,287	)	$	83,766	$	(2,530	)
States of the U.S. and political subdivisions		7,416		(86	)		—		—			7,416		(86	)
Total temporarily impaired securities	$	64,756	$	(1,329	)	$	26,426	$	(1,287	)	$	91,182	$	(2,616	)

XML

LOANS (Tables)

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Schedule of Portfolio of Loans

Portfolio loans consist of the following:

	September 30,			December 31,
	2017			2016
	(Dollars in thousands)
Commercial loans
Multifamily	$	126,977		$	93,597
Nonresidential		366,747			231,401
Land		13,666			8,373
Construction		108,105			68,158
Secured		167,433			95,343
Unsecured		8,148			7,386
Total commercial loans		791,076			504,258
Residential mortgage loans
One-to four-family		851,863			762,926
Construction		57,081			35,695
Total residential mortgage loans		908,944			798,621
Consumer loans
Home equity		193,402			165,054
Auto		56,883			39,609
Marine		1,564			1,796
Recreational vehicle		6,249			7,602
Other		5,594			2,537
Total consumer loans		263,692			216,598
Total loans		1,963,712			1,519,477
Less:
Allowance for loan losses		20,555			19,087
Deferred loan costs, net		(4,538	)		(3,187	)
Total		16,017			15,900
Loans, net	$	1,947,695		$	1,503,577

Investment in Loans by Portfolio Segment and Based on Impairment

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and are based on impairment method as of September 30, 2017 and December 31, 2016 and activity for the three and nine months ended September 30, 2017 and 2016.

Allowance For Loan Losses

	Commercial Loans			Residential Loans			Consumer Loans			Total
	(Dollars in thousands)
For the three months ended September 30, 2017
Beginning balance	$	10,821		$	5,968		$	2,871		$	19,660
Provision (recovery)		512			369			(160	)		721
Charge-offs		(12	)		(427	)		(147	)		(586	)
Recoveries		361			136			263			760
Ending balance	$	11,682		$	6,046		$	2,827		$	20,555
For the nine months ended September 30, 2017
Beginning balance	$	10,824		$	5,538		$	2,725		$	19,087
Provision		1,537			1,234			267			3,038
Charge-offs		(1,335	)		(930	)		(626	)		(2,891	)
Recoveries		656			204			461			1,321
Ending balance	$	11,682		$	6,046		$	2,827		$	20,555
As of September 30, 2017
Period-end amount allocated to:
Loans individually evaluated for impairment	$	16		$	1,169		$	411			1,596
Loans collectively evaluated for impairment		11,612			4,877			2,416			18,905
Loans acquired with deteriorated credit quality		54			—			—			54
Ending balance	$	11,682		$	6,046		$	2,827		$	20,555
Period-end balances:
Loans individually evaluated for impairment		2,322			16,718			7,314			26,354
Loans collectively evaluated for impairment		787,550			892,226			256,378			1,936,154
Loans acquired with deteriorated credit quality		1,204			—			—			1,204
Ending balance	$	791,076		$	908,944		$	263,692		$	1,963,712

Allowance For Loan Losses

	Commercial Loans			Residential Loans			Consumer Loans			Total
For the three months ended September 30, 2016
Beginning balance	$	8,958		$	5,644		$	2,570		$	17,172
Provision		842			268			234			1,344
Charge-offs		(533	)		(166	)		(222	)		(921	)
Recoveries		527			20			92			639
Ending balance	$	9,794		$	5,766		$	2,674		$	18,234
For the nine months ended September 30, 2016
Beginning balance	$	8,077		$	6,630		$	3,005		$	17,712
Provision (recovery)		4,055			(359	)		198			3,894
Charge-offs		(3,026	)		(612	)		(977	)		(4,615	)
Recoveries		688			107			448			1,243
Ending balance	$	9,794		$	5,766		$	2,674		$	18,234
As of December 31, 2016
Period-end amount allocated to:
Loans individually evaluated for impairment	$	1,271		$	1,245		$	500		$	3,016
Loans collectively evaluated for impairment		9,553			4,293			2,225			16,071
Ending balance	$	10,824		$	5,538		$	2,725		$	19,087
Period-end balances:
Loans individually evaluated for impairment	$	6,018		$	17,485		$	8,045		$	31,548
Loans collectively evaluated for impairment		498,240			781,136			208,553			1,487,929
Ending balance	$	504,258		$	798,621		$	216,598		$	1,519,477

Presentation of Loans Individually Evaluated for Impairment by Class

The following table presents loans individually evaluated for impairment by class of loans as of and for nine months ended September 30, 2017:

Impaired Loans

(Dollars in thousands)

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	466	$	402	$	—	$	309	$	3	$	3
Nonresidential		673		153		—		818		6		6
Land		715		9		—		15		—		—
Construction		2,467		—		—		—		—		—
Secured		263		210		—		195		1		1
Unsecured		194		—		—		—		—		—
Total commercial loans		4,778		774		—		1,337		10		10
Residential mortgage loans
One-to four-family		6,793		5,814		—		6,025		81		73
Construction		—		—		—		—		—		—
Total residential mortgage loans		6,793		5,814		—		6,025		81		73
Consumer loans
Home equity		1,556		1,177		—		1,477		11		11
Auto		8		1		—		9		—		—
Marine		540		169		—		200		—		—
Recreational vehicle		809		389		—		220		12		12
Other		1		1		—		—		—		—
Total consumer loans		2,914		1,737		—		1,906		23		23
Total	$	14,485	$	8,325	$	—	$	9,268	$	114	$	106
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—	$	—	$	—	$	—
Nonresidential		1,582		1,548		16		2,010		86		85
Land		—		—		—		—		—		—
Construction		—		—		—		—		—		—
Secured		—		—		—		43		—		—
Unsecured		—		—		—		—		—		—
Total commercial loans		1,582		1,548		16		2,053		86		85
Residential mortgage loans
One-to four-family		11,042		10,904		1,169		10,799		385		343
Construction		—		—		—		—		—		—
Total residential mortgage loans		11,042		10,904		1,169		10,799		385		343
Consumer loans
Home equity		5,132		5,055		387		5,173		214		199
Auto		—		—		—		—		—		—
Marine		102		102		1		105		4		4
Recreational vehicle		432		420		23		616		14		14
Other		—		—		—		—		—		—
Total consumer loans		5,666		5,577		411		5,894		232		217
Total		18,290		18,029		1,596		18,746		703		645
Total impaired loans	$	32,775	$	26,354	$	1,596	$	28,014	$	817	$	751

The following table presents loans individually evaluated for impairment by class of loans as of and for nine months ended September 30, 2016:

Impaired Loans

(Dollars in thousands)

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	59	$	—	$	—	$	—	$	—	$	—
Nonresidential		952		149		—		248		4		4
Land		3,922		134		—		322		—		—
Construction		3,594		—		—		—		—		—
Secured		3,743		3,700		—		3,700		—		—
Unsecured		821		—		—		—		7		7
Total commercial loans		13,091		3,983		—		4,270		11		11
Residential mortgage loans
One-to four-family		7,401		5,727		—		6,049		55		49
Construction		—		—		—		—		—		—
Total residential mortgage loans		7,401		5,727		—		6,049		55		49
Consumer loans
Home equity		1,728		1,272		—		1,415		14		14
Auto		13		8		—		10		—		—
Marine		543		301		—		294		—		—
Recreational vehicle		637		322		—		241		4		4
Other		—		—		—		3		—		—
Total consumer loans		2,921		1,903		—		1,963		18		18
Total	$	23,413	$	11,613	$	—	$	12,282	$	84	$	78
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—	$	—	$	—	$	—
Nonresidential		11,660		9,164		935		7,911		208		206
Land		—		—		—		—		—		—
Construction		—		—		—		—		—		—
Secured		616		550		81		692		—		—
Unsecured		—		—		—		—		—		—
Total commercial loans		12,276		9,714		1,016		8,603		208		206
Residential mortgage loans
One-to four-family		12,123		12,121		1,342		12,587		423		373
Construction		—		—		—		—		—		—
Total residential mortgage loans		12,123		12,121		1,342		12,587		423		373
Consumer loans
Home equity		5,997		5,997		435		6,592		257		238
Auto		—		—		—		—		—		—
Marine		153		153		4		158		6		4
Recreational vehicle		655		655		77		815		20		19
Other		—		—		—		2		—		—
Total consumer loans		6,805		6,805		516		7,567		283		261
Total		31,204		28,640		2,874		28,757		914		840
Total impaired loans	$	54,617	$	40,253	$	2,874	$	41,039	$	998	$	918

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2016:

Impaired Loans

(Dollars in thousands)

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With no specific allowance recorded
Commercial loans
Multifamily	$	55	$	—	$	—
Nonresidential		2,278		1,489		—
Land		3,922		34		—
Construction		3,594		—		—
Secured		242		190		—
Unsecured		713		—		—
Total commercial loans		10,804		1,713		—
Residential mortgage loans
One-to four-family		8,736		6,758		—
Construction		—		—		—
Total residential mortgage loans		8,736		6,758		—
Consumer loans
Home equity		2,159		1,583		—
Auto		11		3		—
Marine		585		267		—
Recreational vehicle		433		120		—
Other		—		—		—
Total consumer loans		3,188		1,973		—
Total	$	22,728	$	10,444	$	—
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		6,930		4,133		1,193
Land		—		—		—
Construction		—		—		—
Secured		237		172		78
Unsecured		—		—		—
Total commercial loans		7,167		4,305		1,271
Residential mortgage loans
One-to four-family		10,810		10,727		1,245
Construction		—		—		—
Total residential mortgage loans		10,810		10,727		1,245
Consumer loans
Home equity		5,390		5,335		426
Auto		—		—		—
Marine		108		108		1
Recreational vehicle		639		629		73
Other		—		—		—
Total consumer loans		6,137		6,072		500
Total		24,114		21,104		3,016
Total impaired loans	$	46,842	$	31,548	$	3,016

The following table presents loans individually evaluated for impairment by class of loans as of and for the three months ended September 30, 2017:

	Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	408	$	—	$	—
Nonresidential		809		3		3
Land		9		—		—
Construction		—		—		—
Secured		200		1		1
Unsecured		—		—		—
Total commercial loans		1,426		4		4
Residential mortgage loans
One-to four-family		5,788		35		33
Construction		—		—		—
Total residential mortgage loans		5,788		35		33
Consumer loans
Home equity		1,356		4		4
Auto		10		—		—
Marine		169		—		—
Recreational vehicle		271		3		3
Other		1		—		—
Total consumer loans		1,807		7		7
Total	$	9,021	$	46	$	44
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		1,002		26		26
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		1,002		26		26
Residential mortgage loans
One-to four-family		10,666		112		112
Construction		—		—		—
Total residential mortgage loans		10,666		112		112
Consumer loans
Home equity		4,987		65		65
Auto		—		—		—
Marine		103		1		1
Recreational vehicle		556		5		5
Other		—		—		—
Total consumer loans		5,646		71		71
Total		17,314		209		209
Total impaired loans	$	26,335	$	255	$	253

The following table presents loans individually evaluated for impairment by class of loans as of and for the three months ended September 30, 2016:

	Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		238		1		1
Land		259		—
Construction		—		—		—
Secured		3,700		—		—
Unsecured		—		—		—
Total commercial loans		4,197		1		1
Residential mortgage loans
One-to four-family		6,125		19		19
Construction		—		—		—
Total residential mortgage loans		6,125		19		19
Consumer loans
Home equity		1,306		9		9
Auto		9		—		—
Marine		302		—		—
Recreational vehicle		298		1		1
Other		2		—		—
Total consumer loans		1,917		10		10
Total	$	12,239	$	30	$	30
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		8,868		84		84
Land		—		—		—
Construction		—		—		—
Secured		742		—		—
Unsecured		—		—		—
Total commercial loans		9,610		84		84
Residential mortgage loans
One-to four-family		12,077		132		127
Construction		—		—		—
Total residential mortgage loans		12,077		132		127
Consumer loans
Home equity		6,138		77		76
Auto		—		—		—
Marine		155		2		2
Recreational vehicle		724		6		6
Other		—		—		—
Total consumer loans		7,017		85		84
Total		28,704		301		295
Total impaired loans	$	40,943	$	331	$	325

Loans in Process of Foreclosure

The table below presents loans that are in the process of foreclosure at September 30, 2017 and December 31, 2016, but legal title, deed in lieu of foreclosure or similar legal agreement to the property has not yet been obtained:

	September 30, 2017				December 31, 2016
	Unpaid Principal Balance		Recorded Investment		Unpaid Principal Balance		Recorded Investment
	(Dollars in thousands)				(Dollars in thousands)
Mortgage loans in process of foreclosure	$	2,975	$	2,805	$	3,025	$	2,576
Consumer loans in process of foreclosure		955		798		1,069		795

Presentation of Recorded Investment in Nonaccrual Loans and Loans Past Due Over 90 Days and Still on Accrual by Class of Loans

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans as of September 30, 2017:

Nonaccrual Loans and Loans Past Due Over 90 Days and Still Accruing

As of September 30, 2017

	Nonaccrual		Loans past due over 90 days and still accruing
	(Dollars in thousands)
Commercial loans
Multifamily	$	402	$	—
Nonresidential		1,234		—
Land		9		—
Construction		—		—
Secured		234		—
Unsecured		—		—
Total commercial loans		1,879		—
Residential mortgage loans
One-to four-family		6,627		—
Construction		—		—
Total residential mortgage loans		6,627		—
Consumer Loans
Home equity		1,714		—
Auto		38		—
Marine		169		—
Recreational vehicle		409		6
Other		2		2
Total consumer loans		2,332		8
Total nonaccrual loans and loans past due over 90 days and still accruing	$	10,838	$	8

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans as of December 31, 2016:

Nonaccrual Loans and Loans Past Due Over 90 Days and Still Accruing

As of December 31, 2016

	Nonaccrual		Loans past due over 90 days and still accruing
	(Dollars in thousands)
Commercial loans
Multifamily	$	—	$	—
Nonresidential		3,546		—
Land		34		—
Construction		—		—
Secured		361		—
Unsecured		—		—
Total commercial loans		3,941		—
Residential mortgage loans
One-to four-family		6,084		—
Construction		—		—
Total residential mortgage loans		6,084		—
Consumer Loans
Home equity		1,936		—
Auto		31		—
Marine		267		—
Recreational vehicle		178		—
Other		2		—
Total consumer loans		2,414		—
Total nonaccrual loans and loans past due over 90 days and still accruing	$	12,439	$	—

Presentation of Age Analysis of Past-Due Loans, Segregated by Class of Loans

The following table presents an age analysis of past-due loans, segregated by class of loans as of September 30, 2017:

Past Due Loans

(Dollars in thousands)

	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current Loans		Total Loans
Commercial loans
Multifamily	$	—			$	402	$	402	$	126,575	$	126,977
Nonresidential		206		1,204		7		1,417		365,330		366,747
Land		—		—		9		9		13,657		13,666
Construction		—		—		—		—		108,105		108,105
Secured		157		16		212		385		167,048		167,433
Unsecured		—		—		—		—		8,148		8,148
Total commercial loans		363		1,220		630		2,213		788,863		791,076
Residential mortgage loans
One-to four-family		3,588		1,305		5,066		9,959		841,904		851,863
Construction		—		—		—		—		57,081		57,081
Total residential mortgage loans		3,588		1,305		5,066		9,959		898,985		908,944
Consumer Loans:
Home equity		1,026		192		1,467		2,685		190,717		193,402
Automobile		137		76		17		230		56,653		56,883
Marine		13		—		169		182		1,382		1,564
Recreational vehicle		357		164		298		819		5,430		6,249
Other		2		13		3		18		5,576		5,594
Total consumer loans		1,535		445		1,954		3,934		259,758		263,692
Total loans	$	5,486	$	2,970	$	7,650	$	16,106	$	1,947,606	$	1,963,712

The following table presents an age analysis of past-due loans, segregated by class of loans as of December 31, 2016:

Past Due Loans

(Dollars in thousands)

	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current Loans		Total Loans
Commercial loans
Multifamily	$	—	$	—	$	—	$	—	$	93,597	$	93,597
Nonresidential		3,511		—		61		3,572		227,829		231,401
Land		—		—		34		34		8,339		8,373
Construction		—		—		—		—		68,158		68,158
Secured		—		—		361		361		94,982		95,343
Unsecured		—		—		—		—		7,386		7,386
Total commercial loans		3,511		—		456		3,967		500,291		504,258
Residential mortgage loans
One-to four-family		3,774		1,717		5,461		10,952		751,974		762,926
Construction		—		—		—		—		35,695		35,695
Total residential mortgage loans		3,774		1,717		5,461		10,952		787,669		798,621
Consumer Loans:
Home equity		941		458		1,669		3,068		161,986		165,054
Automobile		130		—		3		133		39,476		39,609
Marine		—		—		267		267		1,529		1,796
Recreational vehicle		131		347		—		478		7,124		7,602
Other		1		3		2		6		2,531		2,537
Total consumer loans		1,203		808		1,941		3,952		212,646		216,598
Total loans	$	8,488	$	2,525	$	7,858	$	18,871	$	1,500,606	$	1,519,477

Loans by Class Modified as Troubled Debt Restructurings

The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ended September 30, 2017:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(In thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		—		—		—
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		—		—		—
Residential mortgage loans
One-to four-family		1		147		169
Construction		—		—		—
Total residential mortgage loans		1		147		169
Consumer loans
Home equity		—		—		—
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		—		—		—
Total restructured loans		1	$	147	$	169

The following table presents loans by class modified as troubled debt restructurings that occurred during the nine months ended September 30, 2017:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(In thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		—		—		—
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		—		—		—
Residential mortgage loans
One-to four-family		2		222		253
Construction		—		—		—
Total residential mortgage loans		2		222		253
Consumer loans
Home equity		—		—		—
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		1		115		115
Other		—		—		—
Total consumer loans		1		115		115
Total restructured loans		3	$	337	$	368

The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ended September 30, 2016:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		1		1,371		1,377
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		1		1,371		1,377
Residential mortgage loans
One-to four-family		1		113		114
Construction		—		—		—
Total residential mortgage loans		1		113		114
Consumer loans
Home equity		—		—		—
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		—		—		—
Total restructured loans		2	$	1,484	$	1,491

The following table presents loans by class modified as troubled debt restructurings that occurred during the nine months ended September 30, 2016:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		3		5,459		5,465
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		3		5,459		5,465
Residential mortgage loans
One-to four-family		4		429		449
Construction		—		—		—
Total residential mortgage loans		4		429		449
Consumer loans
Home equity		3		130		134
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		3		130		134
Total restructured loans		10	$	6,018	$	6,048

Loans by Class Modified as Troubled Debt Restructurings with Payment Default

The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within a twelve-month cycle following the modification during the period ended September 30, 2017.

	Number of loans		Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—
Nonresidential		—		—
Land		—		—
Construction		—		—
Secured		—		—
Unsecured		—		—
Total commercial loans		—		—
Residential mortgage loans
One-to four-family		1		162
Construction		—		—
Total residential mortgage loans		1		162
Consumer loans
Home equity		1		47
Auto		—		—
Marine		—		—
Recreational vehicle		—		—
Other		—		—
Total consumer loans		1		47
Total restructured loans		2	$	209

The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within a twelve month cycle following the modification during the period ended September 30, 2016:

	Number of loans		Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—
Nonresidential		—		—
Land		—		—
Construction		—		—
Secured		—		—
Unsecured		—		—
Total commercial loans		—		—
Residential mortgage loans
One-to four-family		1		4
Construction		—		—
Total residential mortgage loans		1		4
Consumer loans
Home equity		—		—
Auto		—		—
Marine		—		—
Recreational vehicle		—		—
Other		—		—
Total consumer loans		—		—
Total restructured loans		1	$	4

Risk Category of Loans by Class of Loans

As of September 30, 2017 and December 31, 2016, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Loans

September 30, 2017

(Dollars in thousands)

	Unclassified				Classified
	Unclassified		Special Mention		Substandard		Doubtful		Loss		Total Classified		Total Loans
Commercial Loans
Multifamily	$	124,441	$	1,975	$	561	$	—	$	—	$	561	$	126,977
Nonresidential		355,846		3,171		7,730		—		—		7,730		366,747
Land		13,657		—		9		—		—		9		13,666
Construction		107,702		403		—		—		—		—		108,105
Secured		137,977		1,421		28,035		—		—		28,035		167,433
Unsecured		8,054		—		94		—		—		94		8,148
Total commercial loans		747,677		6,970		36,429		—		—		36,429		791,076
Residential mortgage loans
One-to four-family		842,928		769		8,166		—		—		8,166		851,863
Construction		57,081		—		—		—		—		—		57,081
Total residential mortgage loans		900,009		769		8,166		—		—		8,166		908,944
Consumer Loans
Home equity		191,689		—		1,713		—		—		1,713		193,402
Auto		56,845		—		38		—		—		38		56,883
Marine		1,395		—		169		—		—		169		1,564
Recreational vehicle		5,840		—		409		—		—		409		6,249
Other		5,592		—		2		—		—		2		5,594
Total consumer loans		261,361		—		2,331		—		—		2,331		263,692
Total loans	$	1,909,047	$	7,739	$	46,926	$	—	$	—	$	46,926	$	1,963,712

Loans

December 31, 2016

(Dollars in thousands)

	Unclassified				Classified
	Unclassified		Special Mention		Substandard		Doubtful		Loss		Total Classified		Total Loans
Commercial Loans
Multifamily	$	89,468	$	3,564	$	565	$	—	$	—	$	565	$	93,597
Nonresidential		217,204		6,037		8,160		—		—		8,160		231,401
Land		8,339		—		34		—		—		34		8,373
Construction		68,158		—		—		—		—		—		68,158
Secured		89,756		3,420		2,167		—		—		2,167		95,343
Unsecured		7,291		—		95		—		—		95		7,386
Total commercial loans		480,216		13,021		11,021		—		—		11,021		504,258
Residential mortgage loans
One-to four-family		754,996		104		7,826		—		—		7,826		762,926
Construction		35,695		—		—		—		—		—		35,695
Total residential mortgage loans		790,691		104		7,826		—		—		7,826		798,621
Consumer Loans
Home equity		163,101		—		1,953		—		—		1,953		165,054
Auto		39,577		1		31		—		—		31		39,609
Marine		1,530		—		266		—		—		266		1,796
Recreational vehicle		7,424		—		178		—		—		178		7,602
Other		2,535		—		2		—		—		2		2,537
Total consumer loans		214,167		1		2,430		—		—		2,430		216,598
Total loans	$	1,485,074	$	13,126	$	21,277	$	—	$	—	$	21,277	$	1,519,477

Schedule of Purchased Credit Impaired Loans for which Payments Would Not be Collected

The carrying amount of those loans is as follows:

	September 30, 2017
	(Dollars in thousands)
Commercial loans	$	1,204
Residential mortgage loans		—
Consumer loans		—
Outstanding balance	$	1,204
Carrying amount, net of allowance of $54,000	$	1,150

Accretable Yield or Income Expected to be Collected

Accretable yield, or income expected to be collected, is as follows:

	Three Months Ended		Nine Months Ended
	September 30, 2017		September 30, 2017
			(Dollars in thousands)
Beginning of period	$	116	$	—
New loans purchased		—		158
Accretion of income		12		54
Balance at September 30	$	104	$	104

Schedule of Purchased Credit Impaired Loans Acquired at Acquisition

Purchased credit impaired loans acquired during the nine months ended September 30, 2017 for which it was probable at acquisition that all contractually required payments would not be collected are as follows:

	September 30, 2017
	(Dollars in thousands)
Contractually required payments receivable of   loans purchased during the year:
Commercial loans	$	4,499
Residential mortgage loans		—
Consumer loans		—
	$	4,499
Cash flow expected to be collected at acquisition	$	1,955
Fair value of acquired loans at acquisition		1,797

Carrying Amount of Purchased Credit Impaired Loans

Income is not recognized on purchased credit impaired loans if the Company cannot reasonably estimate cash flows expected to be collected.  The carrying amounts of such loans are as follows:

	September 30, 2017
	(Dollars in thousands)
Loans at beginning of year	$	—
Loans purchased during the year		1,797
Loans at end of period		1,204

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MORTGAGE BANKING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2017

Mortgage Banking [Abstract]

Principal Balances of Mortgage Servicing Rights

The principal balances of mortgage loans serviced for others are as follows:

	September 30, 2017		December 31, 2016
	(Dollars in thousands)
Mortgage loan portfolios serviced for:
FHLMC	$	979,546	$	956,278
FNMA		235,246		208,114
Private investor		26,350		—

Capitalized Mortgage Servicing Rights

Activity for capitalized mortgage servicing rights, included in other assets, was as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
	(Dollars in thousands)
Balance, beginning of period	$	6,161		$	5,813		$	6,070		$	5,686
Originations		793			708			1,819			1,870
Amortized to expense		(491	)		(525	)		(1,426	)		(1,560	)
Balance, end of period		6,463			5,996			6,463			5,996
Less valuation allowance		(15	)		(741	)		(15	)		(741	)
Net balance	$	6,448		$	5,255		$	6,448		$	5,255

Valuation Allowance for Mortgage Servicing Rights

Activity in the valuation allowance for mortgage servicing rights was as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
	(Dollars in thousands)
Balance, beginning of period	$	(5	)	$	(766	)	$	—		$	(39	)
Impairment charges		(10	)		—			(15	)		(727	)
Recoveries		—			25			—			25
Balance, end of period	$	(15	)	$	(741	)	$	(15	)	$	(741	)

Key Economic Assumptions in Measuring Value of Mortgage Servicing Rights

Key economic assumptions in measuring the value of mortgage servicing rights at September 30, 2017, and December 31, 2016, were as follows:

	September 30, 2017		December 31, 2016
Weighted average prepayment rate	187 PSA		165 PSA
Weighted average life (in years)	6.22		6.64
Weighted average discount rate		9.00%		9.00%

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OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS (Tables)

9 Months Ended

Sep. 30, 2017

Real Estate [Abstract]

Real Estate Owned and Other Repossessed Assets

Real estate owned and other repossessed assets at September 30, 2017 and December 31, 2016 were as follows:

	September 30, 2017			December 31, 2016
	(Dollars in thousands)
Real estate owned and other repossessed assets	$	1,566		$	2,789
Valuation allowance		(423	)		(1,012	)
End of period	$	1,143		$	1,777

Valuation Allowance Related to Real Estate Owned

Activity in the valuation allowance was as follows:

	Three Months Ended					Nine Months Ended
	September 30, 2017			September 30, 2016		September 30, 2017			September 30, 2016
	(Dollars in thousands)
Beginning of period	$	389		$	1,001	$	1,012		$	1,229
Amounts  charged to (recovery of) expense		53			1		15			(25	)
Reductions due to sales		(19	)		1		(604	)		(201	)
End of period	$	423		$	1,003	$	423		$	1,003

Expenses Related to Foreclosed and Repossessed Assets

Expenses related to foreclosed and repossessed assets include:

	Three Months Ended					Nine Months Ended
	September 30, 2017		September 30, 2016			September 30, 2017		September 30, 2016
	(Dollars in thousands)
Net loss (gains) on sales	$	20	$	(1	)	$	128	$	101
Provision for unrealized (gains) losses , net		53		1			15		(25	)
Operating expenses, net of rental income		33		41			118		190
Total expenses	$	106	$	41		$	261	$	266

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FAIR VALUE MEASUREMENT (Tables)

9 Months Ended

Sep. 30, 2017

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and Liabilities Measured on a Recurring Basis: Assets and liabilities measured at fair value on a recurring basis are summarized below:

			Fair Value Measurements at September 30, 2017 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	September 30,		Assets		Inputs		Inputs
	2017		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Available for sale securities
U.S. Treasury and government sponsored entities'    securities	$	125,060	$	—	$	125,060	$	—
States of the U.S. and political subdivisions		59,192		—		59,192
Mortgage-backed GSE securities: residential		90,570		—		90,570		—
Loans held for sale, at fair value		84,349		—		14,111		70,238
Purchased certificate of deposit option		823		—		823		—
Liabilities
Written certificate of deposit option		823		—		823		—

			Fair Value Measurements at December 31, 2016 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
	2016		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Available for sale securities
U.S. Treasury and government sponsored entities'    securities	$	186,033	$	—	$	186,033	$	—
States of the U.S. and political subdivisions		57,757		—		57,757		—
Mortgage-backed GSE securities: residential		99,494		—		99,494		—
Loans held for sale, at fair value		62,593		—		8,832		53,761
Purchased certificate of deposit option		882		—		882		—
Liabilities
Written certificate of deposit option		882		—		882		—

Reconciliation of All Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)

The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2017 and 2016.  

	Loans Held for Sale, At Fair Value						Loans Held for Sale, At Fair Value
	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
	(Dollars in thousands)
Balance of recurring Level 3 assets at beginning of period	$	69,995		$	33,605		$	53,761		$	26,716
Total gains (losses) for the period
Included in change in fair value of loans held for sale		1,145			414			3,557			1,705
Included in other comprehensive income		—			—			—			—
Originations/Draws on construction perm loans		28,864			25,464			80,109			60,925
Amortization		—			—			—			—
Sales		(29,766	)		(12,347	)		(67,189	)		(42,210	)
Balance of recurring Level 3 assets at end of period	$	70,238		$	47,136		$	70,238		$	47,136

Assets and Liabilities Measured at Fair Value on Non-recurring Basis

Assets and Liabilities Measured on a Non-Recurring Basis: Assets and liabilities measured at fair value on a non-recurring basis are summarized below:

			Fair Value Measurements at September 30, 2017 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	September 30,		Assets		Inputs		Inputs
	2017		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Impaired loans:
Commercial loans
Multifamily	$	443	$	—	$	—	$	443
Residential loans
One-to four-family residential		536		—		—		536
Consumer loans
Home Equity		92		—		—		92
Marine		169		—		—		169
Mortgage servicing rights		125		—		125		—
Other real estate owned, net
Commercial loans
Construction loans		443		—		—		443
Residential loans
One-to four-family residential		136		—		—		136

			Fair Value Measurements at December 31, 2016 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
	2016		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Impaired loans:
Commercial loans
Nonresidential	$	2,257	$	—	$	—	$	2,257
Secured		284		—		—		284
Residential loans
One-to four-family residential		919		—		—		919
Consumer loans
Home Equity		228		—		—		228
Auto		177		—		—		177
Recreational vehicle		89		—		—		89
Other real estate owned, net
Commercial loans
Construction loans		748		—		—		748
Residential loans
One-to four-family residential		281		—		—		281

Fair Value Option for Newly Originated Residential Mortgage and Permanent Construction Loans Held for Sale

The Company has elected the fair value option for newly originated residential mortgage and permanent construction loans held for sale.  These loans are intended for sale and the Company believes that fair value is the best indicator of the resolution of these loans.  Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policy on loans held for investment.  None of these loans are 90 or more days past due nor on nonaccrual status as of September 30, 2017 and December 31, 2016.  

	September 30, 2017		December 31, 2016
	(Dollars in thousands)
Aggregate fair value	$	84,349	$	62,593
Contractual balance		80,611		62,843
Gain (loss)		3,738		(250	)

Amount of Gains and Losses from Changes in Fair Value Included in Earnings

The total amount of gains and losses from changes in fair value included in earnings for the three and nine months ended September 30, 2017 and 2016 for loans held for sale, at fair value were:

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
	(Dollars in thousands)
Interest  income	$	—	$	—	$	—	$	—
Interest expense		—		—		—		—
Change in fair value		1,088		556		3,988		2,205
Total change in fair value	$	1,088	$	556	$	3,988	$	2,205

Carrying Value and Estimated Fair Values of Financial Instruments

In accordance with U.S. GAAP, the carrying value and estimated fair values of financial instruments at September 30, 2017 and December 31, 2016, were as follows:

				Fair Value Measurements at September 30, 2017 Using:
	September 30,
	2017
	Carrying Value			(Level 1)			(Level 2)			(Level 3)
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	38,010		$	38,010		$	—		$	—
Available for sale securities		274,822			—			274,822			—
Held to maturity securities		85,549			—			85,024			—
Loans held for sale		196			—			203			—
Loans held for sale, at fair value		84,349			—			14,111			70,238
Loans, net		1,947,695			—			—			1,942,267
FHLB stock		19,324		n/a			n/a			n/a
Accrued interest receivable		7,253			—			1,733			5,520
Purchased certificate of deposit option		823			—			823			—
Liabilities:
Deposits:
Checking, savings and money market accounts		(1,241,779	)		(1,241,779	)		—			—
Certificates of deposit		(696,920	)		—			(698,045	)		—
FHLB advances		(328,341	)		—			(328,342	)		—
Repurchase agreements and other		(10,191	)		—			(9,911	)		—
Advance payments by borrowers for taxes and insurance		(16,048	)		(16,048	)		—			—
Accrued interest payable		(722	)		—			(722	)		—
Written certificate of deposit option		(823	)		—			(823	)		—

				Fair Value Measurements at December 31, 2016 Using:
	December 31,
	2016
	Carrying Value			(Level 1)			(Level 2)			(Level 3)
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	45,887		$	45,887		$	—		$	—
Available for sale securities		343,284			—			343,284			—
Held to maturity securities		97,519			—			92,940			3,210
Loans held for sale at lower of cost or market		165			—			169			—
Loans held for sale, at fair value		62,593			—			8,832			53,761
Loans, net		1,503,577			—			—			1,494,534
FHLB stock		18,068		n/a			n/a			n/a
Accrued interest receivable		6,900			—			2,624			4,276
Purchased certificate of deposit option		882			—			882			—
Liabilities:
Deposits:
Checking, savings and money market accounts		(1,026,565	)		(1,026,565	)		—			—
Certificates of deposit		(488,426	)		—			(491,278	)		—
FHLB advances		(390,756	)		—			(390,750	)		—
Repurchase agreements and other		(512	)		—			(513	)		—
Advance payments by borrowers for taxes and insurance		(23,812	)		(23,812	)		—			—
Accrued interest payable		(145	)		—			(145	)		—
Written certificate of deposit option		(882	)		—			(882	)		—

Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member]

Quantitative Information About Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value

The following table presents quantitative information about recurring Level 3 fair value measurements at September 30, 2017:

			Valuation	Unobservable
	Fair Value		Technique(s)	Input(s)	Range
Loans held for sale, at fair value	$	70,238	Comparable sales	Time discount	0.00-1.80%

The following table presents quantitative information about recurring Level 3 fair value measurements at December 31, 2016:

			Valuation	Unobservable
	Fair Value		Technique(s)	Input(s)	Range
Loans held for sale, at fair value	$	53,761	Comparable sales	Time discount	0.00-1.80%

Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member]

Quantitative Information About Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at September 30, 2017:

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial loans
Multi Family	$	443	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-35.00%  (15.00%)
Residential loans
One-to four-family residential		536	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-10.77%  (4.27%)
Consumer loans
Home Equity		92	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-17.85%  (8.93%)
Marine		169	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-37.00%  (37.00%)
Other real estate owned, net
Commercial loans
Construction loans		443	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-80.00%(24.03%)
Residential loans
One-to four-family residential		136	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-0.00%  (0.00%)

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at December 31, 2016:

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial loans
Nonresidential	$	2,257	Sales comparison approach	Adjustment for differences between comparable sales	0.00-35.00%  (15.00%)
Secured		284	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-64.00%  (16.00%)
Residential loans
One-to four-family residential		919	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-10.77%  (4.27%)
Consumer loans
Home Equity		228	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-17.85%  (8.93%)
Other real estate owned:
Commercial loans
Construction loans		748	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-90.40%  (27.46%)
			Cost approach	Adjustment for differences in cost	0.00%-33.33%  (16.67%)
Residential loans
One-to four-family residential		281	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-27.00%  (7.74%)

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STATEMENT OF CASH FLOWS SUPPLEMENTAL DISCLOSURE (Tables)

9 Months Ended

Sep. 30, 2017

Supplemental Cash Flow Elements [Abstract]

Supplemental Disclosures of Cash Flow Information

Supplemental disclosures of cash flow information are summarized below.

	For the Nine Months Ended September 30,
	2017		2016
	(Dollars in thousands)
Supplemental disclosures of cash flow information
Cash paid  during the period for:
Interest on deposits and borrowings	$	8,611	$	6,203
Income taxes		425		275
Supplemental schedule of noncash activities:
Transfers from loans to real estate owned and other repossessed assets		651		813
Transfers from loans to loans held for sale		27,921		—
Transfers from premises and equipment to other assets, held for sale		1,720		—
Accretion of securities held to maturity		151		181
Issuance of common stock - James & Sons acquisition		—		1,547
Issuance of common stock - Ohio Legacy Corp. acquisition		25,816		—
Net assets acquired from Ohio Legacy Corp., excluding cash and cash equivalents		36		—

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EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Computation of Earnings Per Share

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
	(Dollars in thousands, except per share data)
Net income per consolidated statements of income	$	7,556		$	5,153		$	17,283		$	13,803
Net income allocated to participating securities		(42	)		(38	)		(108	)		(88	)
Net income allocated to common stock	$	7,514		$	5,115		$	17,175		$	13,715
Basic earnings per common share computation:
Distributed earnings allocated to common stock	$	1,979		$	1,385		$	4,941		$	3,753
Undistributed earnings allocated to common stock		5,535			3,730			12,234			9,962
Net income allocated to common stock	$	7,514		$	5,115		$	17,175		$	13,715
Weighted average common shares outstanding, including shares    considered participating securities		49,736			46,508			49,353			47,104
Less: Average participating securities		(276	)		(341	)		(308	)		(302	)
Weighted average shares		49,460			46,167			49,045			46,802
Basic earnings per common share	$	0.15		$	0.11		$	0.35		$	0.29
Diluted earnings per common share computation:
Net income allocated to common stock	$	7,514		$	5,115		$	17,175		$	13,715
Weighted average common shares outstanding for basic    earnings per common share		49,460			46,167			49,045			46,802
Add: Dilutive effects of assumed exercises of stock options and LTIP    awards		391			225			396			214
Weighted average shares and dilutive potential common shares		49,851			46,392			49,441			47,016
Diluted earnings per common share	$	0.15		$	0.11		$	0.35		$	0.29

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OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Other Comprehensive Income (Loss) Components and Related Tax Effects

Other comprehensive income (loss) components and related tax effects for the three-month periods are as follows:

	Unrealized Gains (Losses) on Securities Availablefor Sale			Disproportionate Tax Effect from Securities Available for Sale			Losses on Securities Transferred From Available for Sale to Held to Maturity			Total
September 30, 2017	(Dollars in thousands)
Balances at beginning of period, net of tax	$	(603	)	$	(17,110	)	$	(735	)	$	(18,448	)
Other comprehensive income before    reclassifications		639			—			—			639
Accretion of unrealized losses of securities    transferred from available for sale to    held to maturity recognized in other    comprehensive income		—			—			33			33
Reclassification adjustment for gains realized    in income		(153	)		—			—			(153	)
Net current period other comprehensive income		486			—			33			519
Balances at end of period, net of tax	$	(117	)	$	(17,110	)	$	(702	)	$	(17,929	)

	Unrealized Gains (Losses) on Securities Available for Sale			Disproportionate Tax Effect from Securities Available for Sale			Losses on Securities Transferred From Available for Sale to Held to Maturity			Unrealized Gains (Losses) from Postretirement Plan			Disproportionate Tax Effect from Postretirement Plan		Total
September 30, 2016	(Dollars in thousands)
Balances at beginning of period,    net of tax	$	8,379		$	(17,110	)	$	(889	)	$	469		$	511	$	(8,640	)
Other comprehensive income    before reclassifications		(1,227	)		—			—			—			—		(1,227	)
Amortization of unrealized gains    of postretirement plan    recognized in other    comprehensive income		—			—			—			(289	)		—		(289	)
Accretion of unrealized losses of    securities transferred from    available for sale to held    to maturity recognized in    other comprehensive income		—			—			47			—			—		47
Reclassification adjustment for    gains realized in income		(142	)		—			—			—			—		(142	)
Net current period other    comprehensive income		(1,369	)		—			47			(289	)		—		(1,611	)
Balances at end of period, net of    tax	$	7,010		$	(17,110	)	$	(842	)	$	180		$	511	$	(10,251	)

Other comprehensive income (loss) components and related tax effects for the nine-month periods are as follows:

	Unrealized Gains (Losses) on Securities Availablefor Sale			Disproportionate Tax Effect from Securities Available for Sale			Losses on Securities Transferred From Available for Sale to Held to Maturity			Total
September 30, 2017	(Dollars in thousands)
Balances at beginning of period, net of tax	$	(3,130	)	$	(17,110	)	$	(800	)	$	(21,040	)
Other comprehensive income before    reclassifications		3,381			—			—			3,381
Accretion of unrealized losses of securities    transferred from available for sale to held    to maturity recognized in other    comprehensive income		—			—			98			98
Reclassification adjustment for gains realized    in income		(368	)		—			—			(368	)
Net current period other comprehensive    income		3,013			—			98			3,111
Balances at end of period, net of tax	$	(117	)	$	(17,110	)	$	(702	)	$	(17,929	)

	Unrealized Gains (Losses) on Securities Available for Sale			Disproportionate Tax Effect from Securities Available for Sale			Losses on Securities Transferred From Available for Sale to Held to Maturity			Unrealized Gains (Losses) from Postretirement Plan			Disproportionate Tax Effect from Postretirement Plan		Total
September 30, 2016	(Dollars in thousands)
Balances at beginning of period,    net of tax	$	(2,492	)	$	(17,110	)	$	(960	)	$	831		$	511	$	(19,220	)
Other comprehensive income    before reclassifications		9,895			—						—			—		9,895
Amortization of unrealized    gains of postretirement plan    recognized in other    comprehensive income		—			—			—			(651	)		—		(651	)
Accretion of unrealized losses    of securities transferred    from available for sale to    held to maturity recognized    in other comprehensive    income		—			—			118			—			—		118
Reclassification adjustment    for gains realized in income		(393	)		—			—			—			—		(393	)
Net current period other    comprehensive income		9,502			—			118			(651	)		—		8,969
Balances at end of period, net of    tax	$	7,010		$	(17,110	)	$	(842	)	$	180		$	511	$	(10,251	)

Summary of Reclassification Out of Each Component of Accumulated Comprehensive Income (Loss)

The following are significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the three months ended September 30, 2017:

	Amount Reclassified			Affected Line Item on
	From Accumulated			the Statement Where
Details About Accumulated Other Comprehensive	Other Comprehensive			Net Income is
Income Components	Income			Presented
	(Dollars in thousands)
Realized net gains on the sale of available for sale securities	$	236		Net gains on securitiesavailable for sale
		(83	)	Tax expense
Total reclassification during the period	$	153		Net of tax, increase to net income

The following are significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the three months ended September 30, 2016:

	Amount Reclassified			Affected Line Item on
	From Accumulated			the Statement Where
Details About Accumulated Other Comprehensive	Other Comprehensive			Net Income is
Income Components	Income			Presented
	(Dollars in thousands)
Realized net gains on the sale of available for sale securities	$	218		Net gainson securitiesavailable for sale
		(76	)	Tax expense
		142		Net of tax
Amortization of postretirement benefits prior service costs		445		Reduction in salaries and employee benefits
		(156	)	Tax expense
		289		Net of tax
Total reclassification during the period	$	431		Increase to net income

The following are significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the nine months ended September 30, 2017:

	Amount Reclassified			Affected Line Item on
	From Accumulated			the Statement Where
Details About Accumulated Other Comprehensive	Other Comprehensive			Net Income is
Income Components	Income			Presented
	(Dollars in thousands)
Realized net gains on the sale of available for sale securities	$	566		Net gains on securitiesavailable for sale
		(198	)	Tax expense
Total reclassification during the period	$	368		Net of tax, increase to net income

The following are significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the nine months ended September 30, 2016:

	Amount Reclassified			Affected Line Item on
	From Accumulated			the Statement Where
Details About Accumulated Other Comprehensive	Other Comprehensive			Net Income is
Income Components	Income			Presented
	(Dollars in thousands)
Realized net gains on the sale of available for sale securities	$	604		Net gainson securitiesavailable for sale
		(211	)	Tax expense
		393		Net of tax
Amortization of postretirement benefits prior service costs		1,001		Reduction in salaries and employee benefits
		(350	)	Tax expense
		651		Net of tax
Total reclassification during the period	$	1,044		Increase to net income

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REGULATORY CAPITAL REQUIREMENTS (Tables)

9 Months Ended

Sep. 30, 2017

United Community [Member]

Actual and Statutory Required Capital Amounts and Ratios

Actual and regulatory required consolidated capital ratios for United Community, along with the dollar amount of capital implied by such ratios, are presented below.

	September 30, 2017
						Minimum Capital
						Requirements
	Actual					Per Regulation***
	Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
Total capital (to risk-weighted assets)	$	300,578		15.38	%	$	180,758		9.25	%
Tier 1 capital (to risk-weighted assets)		280,023		14.33	%		141,675		7.25	%
Common equity Tier 1 capital (to risk-weighted assets)		280,023		14.33	%		112,363		5.75	%
Tier 1 capital (to average assets)**		280,023		10.95	%		102,306		4.00	%
	December 31, 2016
						Minimum Capital
						Requirements
	Actual					Per Regulation***
	Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
Total capital (to risk-weighted assets)	$	277,817		18.38	%	$	130,369		8.625	%
Tier 1 capital (to risk-weighted assets)		258,869		17.13	%		100,139		6.625	%
Common equity Tier 1 capital (to risk-weighted assets)		258,869		17.13	%		77,466		5.125	%
Tier 1 capital (to average assets)**		258,869		11.98	%		86,425		4.000	%

Components of Regulatory Capital

The components of United Community’s consolidated regulatory capital are as follows:

	September 30, 2017			December 31, 2016
Total shareholders' equity	$	291,851		$	249,806
Add (deduct)
Accumulated other comprehensive income		17,929			21,040
Intangible assets		(22,773	)		(1,567	)
Disallowed deferred tax assets		(6,984	)		(10,410	)
Disallowed capitalized mortgage loan servicing rights		—			—
Tier 1 Capital		280,023			258,869
Allowance for loan losses and allowance for unfunded lending commitments    limited to 1.25% of total risk-weighted assets		20,555			18,948
Total risk-based capital	$	300,578		$	277,817

Home Savings [Member]

Actual and Statutory Required Capital Amounts and Ratios

Actual and regulatory required capital ratios for Home Savings, along with the dollar amount of capital implied by such ratios, are presented below.

	September 30, 2017
											To Be Well Capitalized
						Minimum Capital					Under Prompt
						Requirements For Capital					Corrective Action
	Actual					Adequacy Purposes***					Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
Total capital (to risk-weighted assets)	$	287,665		14.74	%	$	180,469		9.25	%	$	195,101		10.00	%
Tier 1 capital (to risk-weighted assets)		267,141		13.69	%		141,448		7.25	%		156,081		8.00	%
Common equity Tier 1 capital (to risk-weighted    assets)		267,141		13.69	%		112,183		5.75	%		126,816		6.50	%
Tier 1 capital (to average assets)**		267,141		10.46	%		102,142		4.00	%		127,677		5.00	%

	December 31, 2016
											To Be Well Capitalized
						Minimum Capital					Under Prompt
						Requirements					Corrective Action
	Actual					Per Regulation***					Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
Total capital (to risk-weighted assets)	$	248,861		16.47	%	$	130,292		8.625	%	$	151,063		10.00	%
Tier 1 capital (to risk-weighted assets)		229,938		15.22	%		100,079		6.625	%		120,850		8.00	%
Common equity Tier 1 capital (to risk-weighted    assets)		229,938		15.22	%		77,420		5.125	%		98,191		6.50	%
Tier 1 capital (to average assets)**		229,938		10.65	%		86,360		4.000	%		107,950		5.00	%

** Tier 1 Leverage Capital Ratio

*** The capital ratios are reflective of the capital conservation buffer

Components of Regulatory Capital

The components of Home Savings’ regulatory capital are as follows:

	September 30, 2017			December 31, 2016
Total shareholders' equity	$	272,589		$	216,475
Add (deduct)
Accumulated other comprehensive income		17,944			21,056
Intangible assets		(20,241	)		(3	)
Disallowed deferred tax assets		(3,151	)		(7,590	)
Disallowed capitalized mortgage loan servicing rights		—			—
Tier 1 Capital		267,141			229,938
Allowance for loan losses and allowance for unfunded lending commitments    limited to 1.25% of total risk-weighted assets		20,524			18,923
Total risk-based capital	$	287,665		$	248,861

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INCOME TAXES (Tables)

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Significant Components of Deferred Tax Assets and Liabilities

Significant components of the deferred tax assets and liabilities are as follows:

	September 30,		December 31,
	2017		2016
	(Dollars in thousands)
Deferred tax assets:
Loan loss reserves	$	7,194	$	6,680
Depreciation		940		748
Other real estate owned valuation		148		354
Tax credits carryforward		2,816		1,471
Unrealized loss on securities available for sale		62		1,685
Unrealized loss on securities held to maturity		378		431
Interest on nonaccrual loans		887		1,039
Net operating loss carryforward		4,613		8,574
Purchase accounting adjustment		781		—
Accrued bonuses		991		812
Other		80		221
Deferred tax assets		18,890		22,015
Deferred tax liabilities:
Deferred loan fees		1,772		1,275
Federal Home Loan Bank stock dividends		4,645		4,585
Mortgage servicing rights		2,257		2,124
FHLB prepayment penalty		649		786
Purchase accounting adjustment		—		371
Prepaid expenses		555		139
Deferred tax liabilities		9,878		9,280
Net deferred tax asset	$	9,012	$	12,735

Summary of Difference in Effective Tax Rates and Statutory Federal Income Tax Rate of 35%

Effective tax rates differ from the statutory federal income tax rate of 35% due to the following:

	For the Three Months Ended September 30,
	2017						2016
	Dollars			Rate			Dollars			Rate
	(Dollars in thousands)
Tax at statutory rate:	$	3,718			35.00	%	$	2,604			35.00	%
Increase (decrease) due to:
Tax exempt income		(164	)		(1.54	)%		(142	)		(1.91	)%
Life insurance		(148	)		(1.39	)%		(132	)		(1.78	)%
Stock compensation		(102	)		(0.96	)%		—			—	%
Other		(237	)		(2.23	)%		(42	)		(0.56	)%
Income tax provision	$	3,067			28.88	%	$	2,288			30.75	%

	For the Nine Months Ended September 30,
	2017						2016
	Dollars			Rate			Dollars			Rate
	(Dollars in thousands)
Tax at statutory rate:	$	8,499			35.00	%	$	7,074			35.00	%
Increase (decrease) due to:
Tax exempt income		(499	)		(2.05	)%		(327	)		(1.62	)%
Life insurance		(416	)		(1.71	)%		(388	)		(1.92	)%
Stock compensation		(300	)		(1.24	)%		—			—	%
Other		(283	)		(1.17	)%		50			0.25	%
Income tax provision	$	7,001			28.83	%	$	6,409			31.71	%

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GOODWILL AND INTANGIBLE ASSETS (Tables)

9 Months Ended

Sep. 30, 2017

Goodwill And Intangible Assets [Line Items]

Change in Goodwill

The change in goodwill during the periods presented is as follows:

	September 30, 2017		December 31, 2016
	(In thousands)
Beginning of the year	$	208	$	—
Effect of adjustments-James & Sons Insurance		636		—
Acquired goodwill-OLCB		18,420		—
Effect of adjustments-OLCB		15		—
Acquired goodwill-Eich Brothers Insurance		188		—
Acquired goodwill-Stevens Insurance		21		—
Acquired goodwill-James & Sons Insurance		—		208
Impairment	—		—
End of the year	$	19,488	$	208

Schedule of Acquired Intangible Assets

Acquired Intangible Assets:

	September 30, 2017				December 31, 2016
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
	(In thousands)
Amortized intangible assets:
Core deposit intangibles	$	11,184	$	9,167	$	8,952	$	8,947
Customer list intangible		2,222		132		1,400		44
Total	$	13,406	$	9,299	$	10,352	$	8,991

Estimated Amortization Expense

Estimated amortization expense for the remainder of 2017 and the next five years is as follows:

Remainder of 2017	$	112,000
2018		448,000
2019		448,000
2020		448,000
2021		448,000
2022		448,000

Core deposit intangibles [Member]

Goodwill And Intangible Assets [Line Items]

Schedule of Acquired Intangible Assets

Core deposit intangible:

	For the nine months ended September 30, 2017			For the year ended December 31, 2016
	(In thousands)
Beginning of the year	$	5		$	30
Acquired core deposit intangible-OLCB		2,232			—
Amortization		(220	)		(25	)
End of the period	$	2,017		$	5

Customer list intangible [Member]

Goodwill And Intangible Assets [Line Items]

Schedule of Acquired Intangible Assets

Customer list intangible:

	For the nine months ended September 30, 2017			For the year ended December 31, 2016
	(In thousands)
Beginning of the year	$	1,356		$	—
Effect of adjustments-James & Sons Insurance		(41	)		—
Acquired customer list intangible-OLCB		268			—
Acquired customer list intangible-Eich Brothers Insurance		535			—
Acquired customer list intangible-Stevens Insurance		60			—
Acquired customer list intangible-James & Sons Insurance		—			1,400
Amortization		(88	)		(44	)
End of the period	$	2,090		$	1,356

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Basis of Presentation - Additional Information (Detail) $ in Thousands		9 Months Ended
	Jan. 31, 2017 USD ($) shares	Sep. 30, 2017 RetailBankingOffice LoanProductionCenter ManagementOffice
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Number of retail banking offices | RetailBankingOffice		35
Number of loan production centers | LoanProductionCenter		13
Number of wealth management offices | ManagementOffice		3
HSB Insurance, Inc. [Member]
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Operations commenced date		Jun. 01, 2017
OLCB [Member]
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Acquisition date		Jan. 31, 2017
Business acquisition, common shares issued | shares	3,033,604
Business acquisition, cash | $	$ 20,379

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Recent Accounting Developments - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2017 USD ($)
Accounting Standards Update 2016-09 [Member]
New Accounting Pronouncement Early Adoption [Line Items]
Recognized tax benefit in income tax expense related to vesting of restricted stock awards and exercised stock options	$ 300,000

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Stock Compensation - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Apr. 30, 2015	Apr. 26, 2007
Stock Option [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Granted	0	0	0	0
Option expiry term (Years)			10 years
Stock-based compensation expense	$ 0	$ 2,000	$ 1,000	$ 8,000
Expected additional expense for 2017	$ 0		$ 0
Remaining unvested stock options	0		0
Weighted average remaining life for outstanding stock			2 years 9 months 15 days
Exercise price range, lower range limit			$ 1.20
Exercise price range, upper range limit			$ 5.89
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 240,000	254,000	$ 696,000	716,000
Expected additional expense for 2017	$ 203,000		$ 203,000
Nonvested shares	275,438		275,438		341,184
Expected to vest shares during remainder of 2017			7,709
Expected to vest shares during 2018			129,044
Expected to vest shares during 2019			106,012
Expected to vest shares during 2020			32,673
Expected additional expense for 2018	$ 581,000		$ 581,000
Expected additional expense for 2019	259,000		259,000
Expected additional expense for 2020	$ 60,000		$ 60,000
Total average per share fair value of shares vested			$ 8.52
2015 Long Term Incentive Compensation Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Authorized shares of stock, option plan, maximum						1,200,000
2007 Long-Term Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Authorized shares of stock, option plan, maximum							2,000,000
1999 Long-Term Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Authorized shares of stock, option plan, maximum	3,569,766		3,569,766
Annual Incentive Plan [Member] | Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 100,000	96,000	$ 222,000	265,000
Annual Incentive Plan [Member] | Restricted Stock [Member] | Beginning on first anniversary of issue date [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation vesting period			3 years
Annual Incentive Plan [Member] | Cash Portion [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	431,000	306,000	$ 1,300,000	924,000
Long Term Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 146,000	$ 96,000	$ 295,000	$ 289,000

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Stock Compensation - Summary of Option Activity in Plans (Detail) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Shares, Outstanding at beginning of year	371,218
Shares, Exercised	(80,085)
Shares, Forfeited and expired	(600)
Shares, Outstanding at end of period	290,533
Shares, Shares subject to options exercisable at end of period	290,533
Weighted average exercise price, Outstanding at beginning of year	$ 2.55
Weighted average exercise price, Exercised	2.69
Weighted average exercise price, Forfeited and expired	2.10
Weighted average exercise price, Outstanding at end of period	2.51
Weighted average exercise price, Shares subject to options exercisable at end of period	$ 2.51
Aggregate intrinsic value, Outstanding at end of period	$ 2,061
Aggregate intrinsic value, Shares subject to options exercisable at end of period	$ 2,061

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Stock Compensation - Information Related to Stock Options (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Intrinsic value of options exercised	$ 487,000	$ 631,000
Cash received from option exercises	216,000	$ 462,000
Tax benefit realized from option exercises	$ 170,523

XML

Stock Compensation - Summary of Changes in Company's Nonvested Restricted Shares (Detail) - Restricted Stock [Member]	9 Months Ended
	Sep. 30, 2017 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Nonvested shares, Beginning balance | shares	341,184
Shares, Granted | shares	75,875
Shares, Vested | shares	(141,621)
Shares, Nonvested shares, Ending balance | shares	275,438
Weighted average grant date fair value, Nonvested shares, Beginning balance | $ / shares	$ 5.50
Weighted average grant date fair value, Granted | $ / shares	8.60
Weighted average grant date fair value, Vested | $ / shares	4.98
Weighted average grant date fair value, Nonvested shares, Ending balance | $ / shares	$ 6.63

XML

Business Combination - Additional Information (Detail) - USD ($)				9 Months Ended
	Jul. 01, 2017	Feb. 28, 2017	Jan. 31, 2017	Sep. 30, 2017
Business Acquisition [Line Items]
Business acquisition, related costs				$ 4,962,000
United Community [Member]
Business Acquisition [Line Items]
Business acquisition, related costs				$ 4,100,000
OLCB [Member]
Business Acquisition [Line Items]
Acquisition date				Jan. 31, 2017
Common stock conversion				Each OLCB common share was converted into the right to receive either $18.00 in cash or 2.736 United Community common shares, subject to certain allocation procedures set forth in the Merger Agreement that ensured that 50% of OLCB’s common shares outstanding were converted into United Community common shares and 50% of OLCB’s common shares outstanding were exchanged for the cash consideration.
Business acquisition, per share price			$ 18.00
Business acquisition, common stock issuable per each acquired share			2.736
Business acquisition, shares consideration			50.00%
Business acquisition, cash consideration			50.00%
Business acquisition, common shares issued			3,033,604
Business acquisition, cash			$ 20,379,000
Business acquisition, related costs				$ 368,000
Gross value of acquired receivables			2,600,000
Fair value of acquired receivables			2,500,000
Deductible goodwill for income tax purposes			0
Business acquisition, total consideration			46,195,000
OLCB [Member] | Core Deposits [Member]
Business Acquisition [Line Items]
Fair value of intangible assets			$ 2,200,000
Eich Brothers Insurance [Member] | HSB Insurance, LLC [Member]
Business Acquisition [Line Items]
Acquisition date				Feb. 28, 2017
Business acquisition, cash		$ 107,000
Business acquisition, remaining amount to be paid		428,000
Business acquisition, equal installments				four equal installments
Business acquisition, total consideration		535,000
Business acquisition, total assets purchase		$ 722,000
Stevens Insurance [Member] | HSB Insurance, LLC [Member]
Business Acquisition [Line Items]
Acquisition date				Jul. 01, 2017
Business acquisition, cash	$ 23,000
Business acquisition, remaining amount to be paid	37,000
Business acquisition, equal installments				two equal installments
Business acquisition, total consideration	60,000
Business acquisition, total assets purchase	$ 81,000

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Business Combination - Summary of Consideration Paid (Detail) - OLCB [Member] $ in Thousands	Jan. 31, 2017 USD ($)
Business Acquisition [Line Items]
Cash	$ 20,379
United Community shares issued	25,816
Total fair value of consideration paid	$ 46,195

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Business Combination - Schedule of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Jan. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Goodwill created	$ 19,488		$ 208
OLCB [Member]
Business Acquisition [Line Items]
Cash		$ 46,159
Loans		259,373
Available for sale securities		9,996
FHLB stock, at cost		1,256
Premises and equipment		2,940
Accrued interest		679
Other intangible assets		2,426
Other real estate owned		89
Other assets		7,988
Total assets acquired		330,906
Deposits assumed		266,279
Federal Home Loan Bank advances		23,500
Repurchase agreements and other borrowings		10,771
Accrued expenses and other liabilities		2,581
Total liabilities assumed		303,131
Goodwill created		$ 18,420

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Business Combination - Summary of Pro Forma Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Business Combinations [Abstract]
Net interest income	$ 61,185	$ 55,595
Net income	$ 16,928	$ 16,118
Basic earnings per share	$ 0.34	$ 0.32
Diluted earnings per share	$ 0.34	$ 0.32

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Securities - Components of Available for Sale Portfolio (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Total amortized cost	$ 275,000	$ 348,099
Available-for-sale securities, Gross unrealized gains	1,042	225
Available-for-sale securities, Gross unrealized losses	(1,220)	(5,040)
Available-for-sale securities, Total fair value	274,822	343,284
U.S. Treasury and Government Sponsored Entities' Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Total amortized cost	125,153	188,082
Available-for-sale securities, Gross unrealized gains	237	172
Available-for-sale securities, Gross unrealized losses	(330)	(2,221)
Available-for-sale securities, Total fair value	125,060	186,033
States of the U.S. and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Total amortized cost	58,959	59,415
Available-for-sale securities, Gross unrealized gains	699	3
Available-for-sale securities, Gross unrealized losses	(466)	(1,661)
Available-for-sale securities, Total fair value	59,192	57,757
Mortgage-Backed GSE Securities: Residential [Member]
Schedule of Available-for-sale Securities [Line Items]
Total amortized cost	90,888	100,602
Available-for-sale securities, Gross unrealized gains	106	50
Available-for-sale securities, Gross unrealized losses	(424)	(1,158)
Available-for-sale securities, Total fair value	$ 90,570	$ 99,494

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Securities - Components of Held to Maturity Securities Portfolio (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Schedule Of Held To Maturity Securities [Line Items]
Held to maturity securities, Total amortized cost	$ 85,549	$ 97,519
Held to maturity securities, Gross unrecognized gains	94	17
Held to maturity securities, Gross unrecognized losses	(619)	(1,386)
Held to maturity securities, Fair value	85,024	96,150
Mortgage-Backed GSE Securities: Residential [Member]
Schedule Of Held To Maturity Securities [Line Items]
Held to maturity securities, Total amortized cost	76,314	85,065
Held to maturity securities, Gross unrecognized losses	(615)	(1,300)
Held to maturity securities, Fair value	75,699	83,765
States of the U.S. and Political Subdivisions [Member]
Schedule Of Held To Maturity Securities [Line Items]
Held to maturity securities, Total amortized cost	9,235	12,454
Held to maturity securities, Gross unrecognized gains	94	17
Held to maturity securities, Gross unrecognized losses	(4)	(86)
Held to maturity securities, Fair value	$ 9,325	$ 12,385

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Securities - Debt Securities Available for Sale by Contractual Maturity (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Available For Sale Securities Debt Maturities [Abstract]
Due after one year through five years, amortized cost	$ 14,556
Due after five years through ten years, amortized cost	111,011
Due after ten years, amortized cost	58,545
Mortgage-backed GSE securities: residential, amortized cost	90,888
Total amortized cost	275,000	$ 348,099
Due after one year through five years, fair value	14,570
Due after five years through ten years, fair value	110,912
Due after ten years, fair value	58,770
Mortgage-backed GSE securities: residential, fair value	90,570
Total fair value	$ 274,822	$ 343,284

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Securities - Debt Securities Held to Maturity by Contractual Maturity (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Investments Debt And Equity Securities [Abstract]
Due after five years through ten years, amortized cost	$ 7,285
Due after ten years, amortized cost	1,950
Mortgage-backed GSE securities: residential, amortized cost	76,314
Held to maturity securities, Total amortized cost	85,549	$ 97,519
Due after five years through ten years, fair value	7,357
Due after ten years, fair value	1,968
Mortgage-backed GSE securities: residential, fair value	75,699
Held to maturity securities, Total fair value	$ 85,024	$ 96,150

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Securities - Additional Information (Detail) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Investments Debt And Equity Securities [Abstract]
Securities pledged for public funds	$ 133,300,000			$ 133,300,000		$ 146,500,000
Available for sale securities transferred to held to maturity, total amortized cost			$ 105,300,000
Available for sale securities transferred to held to maturity fair value			103,800,000
Net unrealized loss, net of taxes, on securities at date of transfer			$ (999,000)
Proceeds from the sale of securities available for sale	9,700,000	$ 5,200,000		62,906,000	$ 33,702,000
Gross gains realized on sales of securities available for sale	236,000	218,000		610,000	609,000
Gross loss realized on sales of securities available for sale	0	0		44,000	0
Income tax expense related to net realized gains and losses	$ 83,000	$ 76,000		$ 198,000	$ 211,000

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Securities - Securities Available for Sale in Unrealized Loss Position (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Fair value, Less than 12 months	$ 149,753	$ 323,469
Unrealized loss, Less than 12 months	(1,037)	(5,040)
Fair value, 12 months or more	6,350
Unrealized loss, 12 months or more	(183)
Total Fair value	156,103	323,469
Total, unrealized loss	(1,220)	(5,040)
States of the U.S. and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, Less than 12 months	21,789	53,283
Unrealized loss, Less than 12 months	(283)	(1,661)
Fair value, 12 months or more	6,350
Unrealized loss, 12 months or more	(183)
Total Fair value	28,139	53,283
Total, unrealized loss	(466)	(1,661)
U.S. Treasury and Government Sponsored Entities' Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, Less than 12 months	59,316	171,411
Unrealized loss, Less than 12 months	(330)	(2,221)
Total Fair value	59,316	171,411
Total, unrealized loss	(330)	(2,221)
Mortgage-Backed GSE Securities: Residential [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, Less than 12 months	68,648	98,775
Unrealized loss, Less than 12 months	(424)	(1,158)
Total Fair value	68,648	98,775
Total, unrealized loss	$ (424)	$ (1,158)

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Securities - Securities Held to Maturity in Unrecognized Loss Position (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Schedule Of Held To Maturity Securities [Line Items]
Fair value, Less than 12 months	$ 49,852	$ 64,756
Unrealized loss, Less than 12 months	(672)	(1,329)
Fair value, 12 months or more	27,390	26,426
Unrealized loss, 12 months or more	(1,027)	(1,287)
Total fair value	77,242	91,182
Total unrealized loss	(1,699)	(2,616)
Mortgage-Backed GSE Securities: Residential [Member]
Schedule Of Held To Maturity Securities [Line Items]
Fair value, Less than 12 months	48,309	57,340
Unrealized loss, Less than 12 months	(668)	(1,243)
Fair value, 12 months or more	27,390	26,426
Unrealized loss, 12 months or more	(1,027)	(1,287)
Total fair value	75,699	83,766
Total unrealized loss	(1,695)	(2,530)
States of the U.S. and Political Subdivisions [Member]
Schedule Of Held To Maturity Securities [Line Items]
Fair value, Less than 12 months	1,543	7,416
Unrealized loss, Less than 12 months	(4)	(86)
Total fair value	1,543	7,416
Total unrealized loss	$ (4)	$ (86)

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Loans - Schedule of Portfolio of Loans (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	$ 1,963,712		$ 1,519,477
Allowance for loan losses	20,555	$ 19,660	19,087	$ 18,234	$ 17,172	$ 17,712
Deferred loan costs, net	(4,538)		(3,187)
Total	16,017		15,900
Loans, net	1,947,695		1,503,577
Commercial Loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	791,076		504,258
Allowance for loan losses	11,682	10,821	10,824	9,794	8,958	8,077
Commercial Loans [Member] | Multifamily [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	126,977		93,597
Commercial Loans [Member] | Nonresidential [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	366,747		231,401
Commercial Loans [Member] | Land [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	13,666		8,373
Commercial Loans [Member] | Construction [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	108,105		68,158
Commercial Loans [Member] | Secured [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	167,433		95,343
Commercial Loans [Member] | Unsecured [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	8,148		7,386
Residential Mortgage Loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	908,944		798,621
Allowance for loan losses	6,046	5,968	5,538	5,766	5,644	6,630
Residential Mortgage Loans [Member] | Construction [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	57,081		35,695
Residential Mortgage Loans [Member] | One-to Four-Family [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	851,863		762,926
Consumer Loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	263,692		216,598
Allowance for loan losses	2,827	$ 2,871	2,725	$ 2,674	$ 2,570	$ 3,005
Consumer Loans [Member] | Home Equity [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	193,402		165,054
Consumer Loans [Member] | Auto [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	56,883		39,609
Consumer Loans [Member] | Marine [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	1,564		1,796
Consumer Loans [Member] | Recreational Vehicle [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	6,249		7,602
Consumer Loans [Member] | Other [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	$ 5,594		$ 2,537

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Loans - Investment in Loans by Portfolio Segment and Based on Impairment (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance, Beginning balance	$ 19,660	$ 17,172	$ 19,087	$ 17,712
Provision (recovery) for loan losses	721	1,344	3,038	3,894
Charge-offs	(586)	(921)	(2,891)	(4,615)
Recoveries	760	639	1,321	1,243
Allowance, Ending balance	20,555	18,234	20,555	18,234
Allowance, Loans individually evaluated for impairment	1,596	2,874	1,596	2,874	$ 3,016
Allowance, Loans collectively evaluated for impairment	18,905		18,905		16,071
Period-end balances, Loans individually evaluated for impairment	26,354		26,354		31,548
Period-end balances, Loans collectively evaluated for impairment	1,936,154		1,936,154		1,487,929
Total loans	1,963,712		1,963,712		1,519,477
Loans Acquired with Deteriorated Credit Quality [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance, Loans acquired with deteriorated credit quality	54		54
Period-end balances, Loans acquired with deteriorated credit quality	1,204		1,204
Commercial Loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance, Beginning balance	10,821	8,958	10,824	8,077
Provision (recovery) for loan losses	512	842	1,537	4,055
Charge-offs	(12)	(533)	(1,335)	(3,026)
Recoveries	361	527	656	688
Allowance, Ending balance	11,682	9,794	11,682	9,794
Allowance, Loans individually evaluated for impairment	16	1,016	16	1,016	1,271
Allowance, Loans collectively evaluated for impairment	11,612		11,612		9,553
Period-end balances, Loans individually evaluated for impairment	2,322		2,322		6,018
Period-end balances, Loans collectively evaluated for impairment	787,550		787,550		498,240
Total loans	791,076		791,076		504,258
Commercial Loans [Member] | Loans Acquired with Deteriorated Credit Quality [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance, Loans acquired with deteriorated credit quality	54		54
Period-end balances, Loans acquired with deteriorated credit quality	1,204		1,204
Residential Mortgage Loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance, Beginning balance	5,968	5,644	5,538	6,630
Provision (recovery) for loan losses	369	268	1,234	(359)
Charge-offs	(427)	(166)	(930)	(612)
Recoveries	136	20	204	107
Allowance, Ending balance	6,046	5,766	6,046	5,766
Allowance, Loans individually evaluated for impairment	1,169	1,342	1,169	1,342	1,245
Allowance, Loans collectively evaluated for impairment	4,877		4,877		4,293
Period-end balances, Loans individually evaluated for impairment	16,718		16,718		17,485
Period-end balances, Loans collectively evaluated for impairment	892,226		892,226		781,136
Total loans	908,944		908,944		798,621
Consumer Loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance, Beginning balance	2,871	2,570	2,725	3,005
Provision (recovery) for loan losses	(160)	234	267	198
Charge-offs	(147)	(222)	(626)	(977)
Recoveries	263	92	461	448
Allowance, Ending balance	2,827	2,674	2,827	2,674
Allowance, Loans individually evaluated for impairment	411	$ 516	411	$ 516	500
Allowance, Loans collectively evaluated for impairment	2,416		2,416		2,225
Period-end balances, Loans individually evaluated for impairment	7,314		7,314		8,045
Period-end balances, Loans collectively evaluated for impairment	256,378		256,378		208,553
Total loans	$ 263,692		$ 263,692		$ 216,598

XML

Loans - Presentation of Loans Individually Evaluated for Impairment by Class (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	$ 14,485	$ 23,413	$ 14,485	$ 23,413	$ 22,728
With no specific allowance recorded, Recorded Investment	8,325	11,613	8,325	11,613	10,444
With no specific allowance recorded, Average Recorded Investment	9,021	12,239	9,268	12,282
With no specific allowance recorded, Interest Income Recognized	46	30	114	84
With no specific allowance recorded, Cash Basis Income Recognized	44	30	106	78
With a specific allowance recorded, Unpaid Principal Balance	18,290	31,204	18,290	31,204	24,114
With a specific allowance recorded, Recorded Investment	18,029	28,640	18,029	28,640	21,104
With a specific allowance recorded, Allowance for Loan Losses Allocated	1,596	2,874	1,596	2,874	3,016
With a specific allowance recorded, Average Recorded Investment	17,314	28,704	18,746	28,757
With a specific allowance recorded, Interest Income Recognized	209	301	703	914
With a specific allowance recorded, Cash Basis Income Recognized	209	295	645	840
Total Unpaid Principal Balance	32,775	54,617	32,775	54,617	46,842
Total Recorded Investment	26,354	40,253	26,354	40,253	31,548
Total Average Recorded Investment	26,335	40,943	28,014	41,039
Total Interest Income Recognized	255	331	817	998
Total Cash Basis Income Recognized	253	325	751	918
Commercial Loans [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	4,778	13,091	4,778	13,091	10,804
With no specific allowance recorded, Recorded Investment	774	3,983	774	3,983	1,713
With no specific allowance recorded, Average Recorded Investment	1,426	4,197	1,337	4,270
With no specific allowance recorded, Interest Income Recognized	4	1	10	11
With no specific allowance recorded, Cash Basis Income Recognized	4	1	10	11
With a specific allowance recorded, Unpaid Principal Balance	1,582	12,276	1,582	12,276	7,167
With a specific allowance recorded, Recorded Investment	1,548	9,714	1,548	9,714	4,305
With a specific allowance recorded, Allowance for Loan Losses Allocated	16	1,016	16	1,016	1,271
With a specific allowance recorded, Average Recorded Investment	1,002	9,610	2,053	8,603
With a specific allowance recorded, Interest Income Recognized	26	84	86	208
With a specific allowance recorded, Cash Basis Income Recognized	26	84	85	206
Commercial Loans [Member] | Multifamily [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	466	59	466	59	55
With no specific allowance recorded, Recorded Investment	402		402
With no specific allowance recorded, Average Recorded Investment	408		309
With no specific allowance recorded, Interest Income Recognized			3
With no specific allowance recorded, Cash Basis Income Recognized			3
Commercial Loans [Member] | Nonresidential [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	673	952	673	952	2,278
With no specific allowance recorded, Recorded Investment	153	149	153	149	1,489
With no specific allowance recorded, Average Recorded Investment	809	238	818	248
With no specific allowance recorded, Interest Income Recognized	3	1	6	4
With no specific allowance recorded, Cash Basis Income Recognized	3	1	6	4
With a specific allowance recorded, Unpaid Principal Balance	1,582	11,660	1,582	11,660	6,930
With a specific allowance recorded, Recorded Investment	1,548	9,164	1,548	9,164	4,133
With a specific allowance recorded, Allowance for Loan Losses Allocated	16	935	16	935	1,193
With a specific allowance recorded, Average Recorded Investment	1,002	8,868	2,010	7,911
With a specific allowance recorded, Interest Income Recognized	26	84	86	208
With a specific allowance recorded, Cash Basis Income Recognized	26	84	85	206
Commercial Loans [Member] | Land [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	715	3,922	715	3,922	3,922
With no specific allowance recorded, Recorded Investment	9	134	9	134	34
With no specific allowance recorded, Average Recorded Investment	9	259	15	322
Commercial Loans [Member] | Construction [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	2,467	3,594	2,467	3,594	3,594
Commercial Loans [Member] | Secured [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	263	3,743	263	3,743	242
With no specific allowance recorded, Recorded Investment	210	3,700	210	3,700	190
With no specific allowance recorded, Average Recorded Investment	200	3,700	195	3,700
With no specific allowance recorded, Interest Income Recognized	1		1
With no specific allowance recorded, Cash Basis Income Recognized	1		1
With a specific allowance recorded, Unpaid Principal Balance		616		616	237
With a specific allowance recorded, Recorded Investment		550		550	172
With a specific allowance recorded, Allowance for Loan Losses Allocated		81		81	78
With a specific allowance recorded, Average Recorded Investment		742	43	692
Commercial Loans [Member] | Unsecured [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	194	821	194	821	713
With no specific allowance recorded, Interest Income Recognized				7
With no specific allowance recorded, Cash Basis Income Recognized				7
Residential Mortgage Loans [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	6,793	7,401	6,793	7,401	8,736
With no specific allowance recorded, Recorded Investment	5,814	5,727	5,814	5,727	6,758
With no specific allowance recorded, Average Recorded Investment	5,788	6,125	6,025	6,049
With no specific allowance recorded, Interest Income Recognized	35	19	81	55
With no specific allowance recorded, Cash Basis Income Recognized	33	19	73	49
With a specific allowance recorded, Unpaid Principal Balance	11,042	12,123	11,042	12,123	10,810
With a specific allowance recorded, Recorded Investment	10,904	12,121	10,904	12,121	10,727
With a specific allowance recorded, Allowance for Loan Losses Allocated	1,169	1,342	1,169	1,342	1,245
With a specific allowance recorded, Average Recorded Investment	10,666	12,077	10,799	12,587
With a specific allowance recorded, Interest Income Recognized	112	132	385	423
With a specific allowance recorded, Cash Basis Income Recognized	112	127	343	373
Residential Mortgage Loans [Member] | One-to Four-Family [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	6,793	7,401	6,793	7,401	8,736
With no specific allowance recorded, Recorded Investment	5,814	5,727	5,814	5,727	6,758
With no specific allowance recorded, Average Recorded Investment	5,788	6,125	6,025	6,049
With no specific allowance recorded, Interest Income Recognized	35	19	81	55
With no specific allowance recorded, Cash Basis Income Recognized	33	19	73	49
With a specific allowance recorded, Unpaid Principal Balance	11,042	12,123	11,042	12,123	10,810
With a specific allowance recorded, Recorded Investment	10,904	12,121	10,904	12,121	10,727
With a specific allowance recorded, Allowance for Loan Losses Allocated	1,169	1,342	1,169	1,342	1,245
With a specific allowance recorded, Average Recorded Investment	10,666	12,077	10,799	12,587
With a specific allowance recorded, Interest Income Recognized	112	132	385	423
With a specific allowance recorded, Cash Basis Income Recognized	112	127	343	373
Consumer Loans [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	2,914	2,921	2,914	2,921	3,188
With no specific allowance recorded, Recorded Investment	1,737	1,903	1,737	1,903	1,973
With no specific allowance recorded, Average Recorded Investment	1,807	1,917	1,906	1,963
With no specific allowance recorded, Interest Income Recognized	7	10	23	18
With no specific allowance recorded, Cash Basis Income Recognized	7	10	23	18
With a specific allowance recorded, Unpaid Principal Balance	5,666	6,805	5,666	6,805	6,137
With a specific allowance recorded, Recorded Investment	5,577	6,805	5,577	6,805	6,072
With a specific allowance recorded, Allowance for Loan Losses Allocated	411	516	411	516	500
With a specific allowance recorded, Average Recorded Investment	5,646	7,017	5,894	7,567
With a specific allowance recorded, Interest Income Recognized	71	85	232	283
With a specific allowance recorded, Cash Basis Income Recognized	71	84	217	261
Consumer Loans [Member] | Home Equity [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	1,556	1,728	1,556	1,728	2,159
With no specific allowance recorded, Recorded Investment	1,177	1,272	1,177	1,272	1,583
With no specific allowance recorded, Average Recorded Investment	1,356	1,306	1,477	1,415
With no specific allowance recorded, Interest Income Recognized	4	9	11	14
With no specific allowance recorded, Cash Basis Income Recognized	4	9	11	14
With a specific allowance recorded, Unpaid Principal Balance	5,132	5,997	5,132	5,997	5,390
With a specific allowance recorded, Recorded Investment	5,055	5,997	5,055	5,997	5,335
With a specific allowance recorded, Allowance for Loan Losses Allocated	387	435	387	435	426
With a specific allowance recorded, Average Recorded Investment	4,987	6,138	5,173	6,592
With a specific allowance recorded, Interest Income Recognized	65	77	214	257
With a specific allowance recorded, Cash Basis Income Recognized	65	76	199	238
Consumer Loans [Member] | Auto [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	8	13	8	13	11
With no specific allowance recorded, Recorded Investment	1	8	1	8	3
With no specific allowance recorded, Average Recorded Investment	10	9	9	10
Consumer Loans [Member] | Marine [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	540	543	540	543	585
With no specific allowance recorded, Recorded Investment	169	301	169	301	267
With no specific allowance recorded, Average Recorded Investment	169	302	200	294
With a specific allowance recorded, Unpaid Principal Balance	102	153	102	153	108
With a specific allowance recorded, Recorded Investment	102	153	102	153	108
With a specific allowance recorded, Allowance for Loan Losses Allocated	1	4	1	4	1
With a specific allowance recorded, Average Recorded Investment	103	155	105	158
With a specific allowance recorded, Interest Income Recognized	1	2	4	6
With a specific allowance recorded, Cash Basis Income Recognized	1	2	4	4
Consumer Loans [Member] | Recreational Vehicle [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	809	637	809	637	433
With no specific allowance recorded, Recorded Investment	389	322	389	322	120
With no specific allowance recorded, Average Recorded Investment	271	298	220	241
With no specific allowance recorded, Interest Income Recognized	3	1	12	4
With no specific allowance recorded, Cash Basis Income Recognized	3	1	12	4
With a specific allowance recorded, Unpaid Principal Balance	432	655	432	655	639
With a specific allowance recorded, Recorded Investment	420	655	420	655	629
With a specific allowance recorded, Allowance for Loan Losses Allocated	23	77	23	77	$ 73
With a specific allowance recorded, Average Recorded Investment	556	724	616	815
With a specific allowance recorded, Interest Income Recognized	5	6	14	20
With a specific allowance recorded, Cash Basis Income Recognized	5	6	14	19
Consumer Loans [Member] | Other [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	1		1
With no specific allowance recorded, Recorded Investment	1		$ 1
With no specific allowance recorded, Average Recorded Investment	$ 1	$ 2		3
With a specific allowance recorded, Average Recorded Investment				$ 2

XML

Loans - Loans in Process of Foreclosure (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
Financing Receivable Impaired [Line Items]
Unpaid Principal Balance	$ 32,775	$ 46,842	$ 54,617
Total Recorded Investment	26,354	31,548
Residential Mortgage Loans [Member] | Loans In Process Of Foreclosure [Member]
Financing Receivable Impaired [Line Items]
Unpaid Principal Balance	2,975	3,025
Total Recorded Investment	2,805	2,576
Consumer Loans [Member] | Loans In Process Of Foreclosure [Member]
Financing Receivable Impaired [Line Items]
Unpaid Principal Balance	955	1,069
Total Recorded Investment	$ 798	$ 795

XML

Loans - Presentation of Recorded Investment in Nonaccrual Loans and Loans Past Due Over 90 Days and Still on Accrual by Class of Loans (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	$ 10,838	$ 12,439
Financing receivable, recorded investment, Loans past due over 90 days and still accruing	8
Commercial Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	1,879	3,941
Commercial Loans [Member] | Multifamily [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	402
Commercial Loans [Member] | Nonresidential [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	1,234	3,546
Commercial Loans [Member] | Land [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	9	34
Commercial Loans [Member] | Secured [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	234	361
Residential Mortgage Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	6,627	6,084
Residential Mortgage Loans [Member] | One-to Four-Family [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	6,627	6,084
Consumer Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	2,332	2,414
Financing receivable, recorded investment, Loans past due over 90 days and still accruing	8
Consumer Loans [Member] | Home Equity [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	1,714	1,936
Consumer Loans [Member] | Auto [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	38	31
Consumer Loans [Member] | Marine [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	169	267
Consumer Loans [Member] | Recreational Vehicle [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	409	178
Financing receivable, recorded investment, Loans past due over 90 days and still accruing	6
Consumer Loans [Member] | Other [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	2	$ 2
Financing receivable, recorded investment, Loans past due over 90 days and still accruing	$ 2

XML

Loans - Presentation of Age Analysis of Past-Due Loans, Segregated by Class of Loans (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	$ 16,106	$ 18,871
Current Loans	1,947,606	1,500,606
Total loans	1,963,712	1,519,477
30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	5,486	8,488
60-89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	2,970	2,525
Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	7,650	7,858
Commercial Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	2,213	3,967
Current Loans	788,863	500,291
Total loans	791,076	504,258
Commercial Loans [Member] | 30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	363	3,511
Commercial Loans [Member] | 60-89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,220
Commercial Loans [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	630	456
Commercial Loans [Member] | Multifamily [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	402
Current Loans	126,575	93,597
Total loans	126,977	93,597
Commercial Loans [Member] | Multifamily [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	402
Commercial Loans [Member] | Nonresidential [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,417	3,572
Current Loans	365,330	227,829
Total loans	366,747	231,401
Commercial Loans [Member] | Nonresidential [Member] | 30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	206	3,511
Commercial Loans [Member] | Nonresidential [Member] | 60-89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,204
Commercial Loans [Member] | Nonresidential [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	7	61
Commercial Loans [Member] | Land [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	9	34
Current Loans	13,657	8,339
Total loans	13,666	8,373
Commercial Loans [Member] | Land [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	9	34
Commercial Loans [Member] | Construction [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Current Loans	108,105	68,158
Total loans	108,105	68,158
Commercial Loans [Member] | Secured [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	385	361
Current Loans	167,048	94,982
Total loans	167,433	95,343
Commercial Loans [Member] | Secured [Member] | 30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	157
Commercial Loans [Member] | Secured [Member] | 60-89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	16
Commercial Loans [Member] | Secured [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	212	361
Commercial Loans [Member] | Unsecured [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Current Loans	8,148	7,386
Total loans	8,148	7,386
Residential Mortgage Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	9,959	10,952
Current Loans	898,985	787,669
Total loans	908,944	798,621
Residential Mortgage Loans [Member] | 30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	3,588	3,774
Residential Mortgage Loans [Member] | 60-89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,305	1,717
Residential Mortgage Loans [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	5,066	5,461
Residential Mortgage Loans [Member] | Construction [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Current Loans	57,081	35,695
Total loans	57,081	35,695
Residential Mortgage Loans [Member] | One-to Four-Family [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	9,959	10,952
Current Loans	841,904	751,974
Total loans	851,863	762,926
Residential Mortgage Loans [Member] | One-to Four-Family [Member] | 30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	3,588	3,774
Residential Mortgage Loans [Member] | One-to Four-Family [Member] | 60-89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,305	1,717
Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	5,066	5,461
Consumer Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	3,934	3,952
Current Loans	259,758	212,646
Total loans	263,692	216,598
Consumer Loans [Member] | 30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,535	1,203
Consumer Loans [Member] | 60-89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	445	808
Consumer Loans [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,954	1,941
Consumer Loans [Member] | Home Equity [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	2,685	3,068
Current Loans	190,717	161,986
Total loans	193,402	165,054
Consumer Loans [Member] | Home Equity [Member] | 30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,026	941
Consumer Loans [Member] | Home Equity [Member] | 60-89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	192	458
Consumer Loans [Member] | Home Equity [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,467	1,669
Consumer Loans [Member] | Automobile [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	230	133
Current Loans	56,653	39,476
Total loans	56,883	39,609
Consumer Loans [Member] | Automobile [Member] | 30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	137	130
Consumer Loans [Member] | Automobile [Member] | 60-89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	76
Consumer Loans [Member] | Automobile [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	17	3
Consumer Loans [Member] | Marine [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	182	267
Current Loans	1,382	1,529
Total loans	1,564	1,796
Consumer Loans [Member] | Marine [Member] | 30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	13
Consumer Loans [Member] | Marine [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	169	267
Consumer Loans [Member] | Recreational Vehicle [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	819	478
Current Loans	5,430	7,124
Total loans	6,249	7,602
Consumer Loans [Member] | Recreational Vehicle [Member] | 30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	357	131
Consumer Loans [Member] | Recreational Vehicle [Member] | 60-89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	164	347
Consumer Loans [Member] | Recreational Vehicle [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	298
Consumer Loans [Member] | Other [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	18	6
Current Loans	5,576	2,531
Total loans	5,594	2,537
Consumer Loans [Member] | Other [Member] | 30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	2	1
Consumer Loans [Member] | Other [Member] | 60-89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	13	3
Consumer Loans [Member] | Other [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	$ 3	$ 2

XML

Loans - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Accounts Notes And Loans Receivable [Line Items]
Allowance for loan losses	$ 20,555,000	$ 18,234,000	$ 20,555,000	$ 18,234,000	$ 19,660,000	$ 19,087,000	$ 17,172,000	$ 17,712,000
Amounts charged off	586,000	921,000	$ 2,891,000	$ 4,615,000
Troubled debt restructuring period past due considered payment default				30 days
Period of cumulative homogeneous loans past due included in company analysis			90 days
Purchased Credit Impaired Loans [Member]
Accounts Notes And Loans Receivable [Line Items]
Allowance for loan losses	54,000,000		$ 54,000,000
Increment in allowance for loan losses	54,000		54,000
Troubled Debt Restructuring [Member]
Accounts Notes And Loans Receivable [Line Items]
Recorded investment in trouble debt restructuring	21,300,000		21,300,000			26,600,000
Allowance for loan losses	1,600,000		1,600,000			3,000,000
Commitment to lend additional amounts	37,000		37,000			$ 31,000
Increment in allowance for loan losses	0	20,000	6,000	$ 31,000
Amounts charged off	0	0	0	0
TDRs with Subsequent Default [Member]
Accounts Notes And Loans Receivable [Line Items]
Increment in allowance for loan losses	0	0	0	0
Amounts charged off	$ 0	$ 0	$ 0	$ 0

XML

Loans - Loans by Class Modified as Troubled Debt Restructurings (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($) Loan	Sep. 30, 2016 USD ($) Loan	Sep. 30, 2017 USD ($) Loan	Sep. 30, 2016 USD ($) Loan
Financing Receivable Modifications [Line Items]
Number of Loans | Loan	1	2	3	10
Pre-Modification Outstanding Recorded Investment	$ 147	$ 1,484	$ 337	$ 6,018
Post-Modification Recorded Investment	$ 169	$ 1,491	$ 368	$ 6,048
Commercial Loans [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Loan		1		3
Pre-Modification Outstanding Recorded Investment		$ 1,371		$ 5,459
Post-Modification Recorded Investment		$ 1,377		$ 5,465
Commercial Loans [Member] | Nonresidential [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Loan		1		3
Pre-Modification Outstanding Recorded Investment		$ 1,371		$ 5,459
Post-Modification Recorded Investment		$ 1,377		$ 5,465
Residential Mortgage Loans [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Loan	1	1	2	4
Pre-Modification Outstanding Recorded Investment	$ 147	$ 113	$ 222	$ 429
Post-Modification Recorded Investment	$ 169	$ 114	$ 253	$ 449
Residential Mortgage Loans [Member] | One-to Four-Family [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Loan	1	1	2	4
Pre-Modification Outstanding Recorded Investment	$ 147	$ 113	$ 222	$ 429
Post-Modification Recorded Investment	$ 169	$ 114	$ 253	$ 449
Consumer Loans [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Loan			1	3
Pre-Modification Outstanding Recorded Investment			$ 115	$ 130
Post-Modification Recorded Investment			$ 115	$ 134
Consumer Loans [Member] | Home Equity [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Loan				3
Pre-Modification Outstanding Recorded Investment				$ 130
Post-Modification Recorded Investment				$ 134
Consumer Loans [Member] | Recreational Vehicle [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Loan			1
Pre-Modification Outstanding Recorded Investment			$ 115
Post-Modification Recorded Investment			$ 115

XML

Loans - Loans by Class Modified as Troubled Debt Restructurings with Payment Default (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2017 USD ($) Loan	Sep. 30, 2016 USD ($) Loan
Financing Receivable Modifications [Line Items]
Number of loans | Loan	2	1
Recorded Investment | $	$ 209	$ 4
Residential Mortgage Loans [Member]
Financing Receivable Modifications [Line Items]
Number of loans | Loan	1	1
Recorded Investment | $	$ 162	$ 4
Residential Mortgage Loans [Member] | One-to Four-Family [Member]
Financing Receivable Modifications [Line Items]
Number of loans | Loan	1	1
Recorded Investment | $	$ 162	$ 4
Consumer Loans [Member]
Financing Receivable Modifications [Line Items]
Number of loans | Loan	1
Recorded Investment | $	$ 47
Consumer Loans [Member] | Home Equity [Member]
Financing Receivable Modifications [Line Items]
Number of loans | Loan	1
Recorded Investment | $	$ 47

XML

Loans - Risk Category of Loans by Class of Loans (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable Recorded Investment [Line Items]
Total loans	$ 1,963,712	$ 1,519,477
Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	1,909,047	1,485,074
Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	7,739	13,126
Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	46,926	21,277
Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	46,926	21,277
Commercial Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	791,076	504,258
Commercial Loans [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	747,677	480,216
Commercial Loans [Member] | Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	6,970	13,021
Commercial Loans [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	36,429	11,021
Commercial Loans [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	36,429	11,021
Commercial Loans [Member] | Multifamily [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	126,977	93,597
Commercial Loans [Member] | Multifamily [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	124,441	89,468
Commercial Loans [Member] | Multifamily [Member] | Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	1,975	3,564
Commercial Loans [Member] | Multifamily [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	561	565
Commercial Loans [Member] | Multifamily [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	561	565
Commercial Loans [Member] | Nonresidential [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	366,747	231,401
Commercial Loans [Member] | Nonresidential [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	355,846	217,204
Commercial Loans [Member] | Nonresidential [Member] | Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	3,171	6,037
Commercial Loans [Member] | Nonresidential [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	7,730	8,160
Commercial Loans [Member] | Nonresidential [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	7,730	8,160
Commercial Loans [Member] | Land [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	13,666	8,373
Commercial Loans [Member] | Land [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	13,657	8,339
Commercial Loans [Member] | Land [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	9	34
Commercial Loans [Member] | Land [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	9	34
Commercial Loans [Member] | Construction [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	108,105	68,158
Commercial Loans [Member] | Construction [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	107,702	68,158
Commercial Loans [Member] | Construction [Member] | Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	403
Commercial Loans [Member] | Secured [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	167,433	95,343
Commercial Loans [Member] | Secured [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	137,977	89,756
Commercial Loans [Member] | Secured [Member] | Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	1,421	3,420
Commercial Loans [Member] | Secured [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	28,035	2,167
Commercial Loans [Member] | Secured [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	28,035	2,167
Commercial Loans [Member] | Unsecured [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	8,148	7,386
Commercial Loans [Member] | Unsecured [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	8,054	7,291
Commercial Loans [Member] | Unsecured [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	94	95
Commercial Loans [Member] | Unsecured [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	94	95
Residential Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	908,944	798,621
Residential Mortgage Loans [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	900,009	790,691
Residential Mortgage Loans [Member] | Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	769	104
Residential Mortgage Loans [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	8,166	7,826
Residential Mortgage Loans [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	8,166	7,826
Residential Mortgage Loans [Member] | Construction [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	57,081	35,695
Residential Mortgage Loans [Member] | Construction [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	57,081	35,695
Residential Mortgage Loans [Member] | One-to Four-Family [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	851,863	762,926
Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	842,928	754,996
Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	769	104
Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	8,166	7,826
Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	8,166	7,826
Consumer Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	263,692	216,598
Consumer Loans [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	261,361	214,167
Consumer Loans [Member] | Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans		1
Consumer Loans [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	2,331	2,430
Consumer Loans [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	2,331	2,430
Consumer Loans [Member] | Home Equity [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	193,402	165,054
Consumer Loans [Member] | Home Equity [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	191,689	163,101
Consumer Loans [Member] | Home Equity [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	1,713	1,953
Consumer Loans [Member] | Home Equity [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	1,713	1,953
Consumer Loans [Member] | Auto [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	56,883	39,609
Consumer Loans [Member] | Auto [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	56,845	39,577
Consumer Loans [Member] | Auto [Member] | Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans		1
Consumer Loans [Member] | Auto [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	38	31
Consumer Loans [Member] | Auto [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	38	31
Consumer Loans [Member] | Marine [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	1,564	1,796
Consumer Loans [Member] | Marine [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	1,395	1,530
Consumer Loans [Member] | Marine [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	169	266
Consumer Loans [Member] | Marine [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	169	266
Consumer Loans [Member] | Recreational Vehicle [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	6,249	7,602
Consumer Loans [Member] | Recreational Vehicle [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	5,840	7,424
Consumer Loans [Member] | Recreational Vehicle [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	409	178
Consumer Loans [Member] | Recreational Vehicle [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	409	178
Consumer Loans [Member] | Other [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	5,594	2,537
Consumer Loans [Member] | Other [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	5,592	2,535
Consumer Loans [Member] | Other [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	2	2
Consumer Loans [Member] | Other [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	$ 2	$ 2

XML

Loans - Schedule of Purchased Credit Impaired Loans for which Payments Would Not be Collected (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable Impaired [Line Items]
Total loans	$ 1,963,712	$ 1,519,477
Purchased credit impairment loans, Net carrying amount	1,947,695	1,503,577
Commercial Loans [Member]
Financing Receivable Impaired [Line Items]
Total loans	791,076	504,258
Residential Mortgage Loans [Member]
Financing Receivable Impaired [Line Items]
Total loans	908,944	798,621
Consumer Loans [Member]
Financing Receivable Impaired [Line Items]
Total loans	263,692	$ 216,598
Purchased Credit Impaired Loans [Member]
Financing Receivable Impaired [Line Items]
Total loans	1,204
Purchased credit impairment loans, Net carrying amount	1,150
Purchased Credit Impaired Loans [Member] | Commercial Loans [Member]
Financing Receivable Impaired [Line Items]
Total loans	$ 1,204

XML

Loans - Schedule of Purchased Credit Impaired Loans for which Payments Would Not be Collected (Parenthetical) (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable Impaired [Line Items]
Allowance for loan losses	$ 20,555	$ 19,660	$ 19,087	$ 18,234	$ 17,172	$ 17,712
Purchased Credit Impaired Loans [Member]
Financing Receivable Impaired [Line Items]
Allowance for loan losses	$ 54,000

XML

Loans - Accretable Yield or Income Expected to be Collected (Detail) - Purchased Credit Impaired Loans [Member] - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
Financing Receivable Impaired [Line Items]
Beginning of period	$ 116
New loans purchased		$ 158
Accretion of income	12	54
Ending Balance	$ 104	$ 104

XML

Loans - Schedule of Purchased Credit Impaired Loans Acquired at Acquitision (Detail) - Purchased Credit Impaired Loans [Member] $ in Thousands	Sep. 30, 2017 USD ($)
Financing Receivable Impaired [Line Items]
Contractually required payments receivable of loans purchased during the year	$ 4,499
Cash flow expected to be collected at acquisition	1,955
Fair value of acquired loans at acquisition	1,797
Commercial Loans [Member]
Financing Receivable Impaired [Line Items]
Contractually required payments receivable of loans purchased during the year	$ 4,499

XML

Loans - Carrying Amount of Purchased Credit Impaired Loans (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Financing Receivable Impaired [Line Items]
Beginning Balance	$ 1,519,477
Loans purchased during the year	45,350	$ 33,203
Ending Balance	1,963,712
Purchased Credit Impaired Loans [Member]
Financing Receivable Impaired [Line Items]
Loans purchased during the year	1,797
Ending Balance	$ 1,204

XML

Mortgage Banking Activities - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Sep. 30, 2017	Dec. 31, 2016
Mortgage Loan Activity [Line Items]
Mortgage loans serviced for others		$ 1,200,000	$ 1,200,000
Fair value of mortgage servicing rights		10,500	10,200
Private Investor [Member]
Mortgage Loan Activity [Line Items]
Mortgage loans serviced for others		26,350
Private Investor [Member] | Adjustable Rate Residential Mortgages [Member] | One-to Four-Family [Member]
Mortgage Loan Activity [Line Items]
Mortgage loans serviced for others	$ 27,900
Percentage of mortgage service release premium as part of gain recognized on sale	0.45%
FHLMC, FNMA and Private Investor [Member]
Mortgage Loan Activity [Line Items]
Customer escrow balances		$ 9,200	$ 14,300

XML

Mortgage Banking Activities - Principal Balances of Mortgage Servicing Rights (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Mortgage loan portfolios serviced for:
Mortgage loans serviced for others	$ 1,200,000	$ 1,200,000
FHLMC [Member]
Mortgage loan portfolios serviced for:
Mortgage loans serviced for others	979,546	956,278
FNMA [Member]
Mortgage loan portfolios serviced for:
Mortgage loans serviced for others	235,246	$ 208,114
Private Investor [Member]
Mortgage loan portfolios serviced for:
Mortgage loans serviced for others	$ 26,350

XML

Mortgage Banking Activities - Capitalized Mortgage Servicing Rights (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2015
Mortgage Banking [Abstract]
Balance, beginning of period	$ 6,161	$ 5,813	$ 6,070	$ 5,686
Originations	793	708	1,819	1,870
Amortized to expense	(491)	(525)	(1,426)	(1,560)
Balance, end of period	6,463	5,996	6,463	5,996
Less valuation allowance	(15)	(741)	(15)	(741)	$ (5)	$ (766)	$ (39)
Net balance	$ 6,448	$ 5,255	$ 6,448	$ 5,255

XML

Mortgage Banking Activities - Valuation Allowance for Mortgage Servicing Rights (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Mortgage Banking [Abstract]
Balance, beginning of period	$ (5)	$ (766)		$ (39)
Impairment charges	(10)		$ (15)	(727)
Recoveries		25		25
Balance, end of period	$ (15)	$ (741)	$ (15)	$ (741)

XML

Mortgage Banking Activities - Key Economic Assumptions in Measuring Value of Mortgage Servicing Rights (Detail)	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Mortgage Banking [Abstract]
Weighted average prepayment rate	187.00%	165.00%
Weighted average life (in years)	6 years 2 months 20 days	6 years 7 months 20 days
Weighted average discount rate	9.00%	9.00%

XML

Other Real Estate Owned and Other Repossessed Assets - Real Estate Owned and Other Repossessed Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Other Real Estate And Foreclosed Assets [Abstract]
Real estate owned and other repossessed assets	$ 1,566		$ 2,789
Valuation allowance	(423)	$ (389)	(1,012)	$ (1,003)	$ (1,001)	$ (1,229)
End of period	$ 1,143		$ 1,777

XML

Other Real Estate Owned and Other Repossessed Assets - Valuation Allowance Related to Real Estate Owned (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other Real Estate And Foreclosed Assets [Abstract]
Beginning of period	$ 389,000	$ 1,001,000	$ 1,012,000	$ 1,229,000
Amounts charged to (recovery of) expense	53,000	1,000	15,000	(25,000)
Reductions due to sales	(19,000)	1,000	(604,000)	(201,000)
End of period	$ 423,000	$ 1,003,000	$ 423,000	$ 1,003,000

XML

Other Real Estate Owned and Other Repossessed Assets - Expenses Related to Foreclosed and Repossessed Assets (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other Real Estate And Foreclosed Assets [Abstract]
Net loss (gains) on sales	$ 20,000	$ (1,000)	$ 128,000	$ 101,000
Provision for unrealized (gains) losses , net	53,000	1,000	15,000	(25,000)
Operating expenses, net of rental income	33,000	41,000	118,000	190,000
Total expenses	$ 106,000	$ 41,000	$ 261,000	$ 266,000

XML

Fair Value Measurement - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Increase in fair value			$ 250,000
Derivative instrument maximum maturity period			30 years
Transfers between level 1 and level 2			$ 0		$ 0
Fair value of the collateral dependent loans, net carrying amount	$ 1,200,000	$ 7,700,000	1,200,000	$ 7,700,000	4,000,000
Specific allowance for collateral dependent loans	42,000	989,000	$ 42,000	989,000	1,300,000
Discount applied to appraisals for estimated selling costs percentage			10.00%
Mortgage servicing rights carried at fair value, valuation allowance net change during the period			$ 15,000	741,000
Net impairment (recovery) reflected in other income	10,000	(25,000)	15,000	702,000
Other real estate owned carried at fair value	580,000	1,000,000	580,000	1,000,000	1,000,000
Valuation allowance related to other real estate owned	423,000	1,000,000	423,000	1,000,000	1,000,000
Other real estate owned expense (recovery)	53,000	1,000	$ 15,000	(25,000)
Maximum maturity period of short term borrowings			90 days
Collateral Dependent Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Increase (decrease) in provision for loan losses	92,000	134,000	$ 571,000	3,700,000
Mortgage Servicing Rights [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Mortgage servicing rights carried at fair value	125,000	$ 3,300,000	125,000	$ 3,300,000
Construction [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value option, loans held as assets, aggregate amount in nonaccrual status	$ 0		$ 0		$ 0

XML

Fair Value Measurement - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available for sale securities, Fair value	$ 274,822	$ 343,284
Loans held for sale, at fair value	84,349	62,593
Fair Value, Measurements, Recurring [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Loans held for sale, at fair value	84,349	62,593
Purchased certificate of deposit option	823	882
Written certificate of deposit option	823	882
Fair Value, Measurements, Recurring [Member] | U.S. Treasury and Government Sponsored Entities' Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available for sale securities, Fair value	125,060	186,033
Fair Value, Measurements, Recurring [Member] | States of the U.S. and Political Subdivisions [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available for sale securities, Fair value	59,192	57,757
Fair Value, Measurements, Recurring [Member] | Mortgage-Backed GSE Securities: Residential [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available for sale securities, Fair value	90,570	99,494
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Loans held for sale, at fair value	14,111	8,832
Purchased certificate of deposit option	823	882
Written certificate of deposit option	823	882
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury and Government Sponsored Entities' Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available for sale securities, Fair value	125,060	186,033
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | States of the U.S. and Political Subdivisions [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available for sale securities, Fair value	59,192	57,757
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage-Backed GSE Securities: Residential [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available for sale securities, Fair value	90,570	99,494
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Loans held for sale, at fair value	$ 70,238	$ 53,761

XML

Fair Value Measurement - Reconciliation of All Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Included in change in fair value of loans held for sale			$ 3,988	$ 2,205
Loans Held For Sale [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Balance of recurring Level 3 assets at beginning of period	$ 69,995	$ 33,605	53,761	26,716
Included in change in fair value of loans held for sale	1,145	414	3,557	1,705
Included in other comprehensive income				0
Originations/Draws on construction perm loans	28,864	25,464	80,109	60,925
Amortization				0
Sales	(29,766)	(12,347)	(67,189)	(42,210)
Balance of recurring Level 3 assets at end of period	$ 70,238	$ 47,136	$ 70,238	$ 47,136

XML

Fair Value Measurement - Quantitative Information About Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Fair Value Inputs Assets Quantitative Information [Line Items]
Loans held for sale, at fair value	$ 84,349	$ 62,593
Fair Value, Measurements, Recurring [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Loans held for sale, at fair value	84,349	62,593
Fair Value, Measurements, Recurring [Member] | Comparable Sales [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Loans held for sale, at fair value	$ 70,238	$ 53,761
Fair Value, Measurements, Recurring [Member] | Minimum [Member] | Comparable Sales [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value Inputs, Time discount	0.00%	0.00%
Fair Value, Measurements, Recurring [Member] | Maximum [Member] | Comparable Sales [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value Inputs, Time discount	1.80%	1.80%

XML

Fair Value Measurement - Assets and Liabilities Measured at Fair Value on Non-recurring Basis (Detail) - USD ($)	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
Mortgage Servicing Rights [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Mortgage servicing rights	$ 125,000		$ 3,300,000
Fair Value, Measurements, Nonrecurring [Member] | Multifamily [Member] | Commercial Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans	443,000
Fair Value, Measurements, Nonrecurring [Member] | Home Equity [Member] | Consumer Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans	92,000	$ 228,000
Fair Value, Measurements, Nonrecurring [Member] | Marine [Member] | Consumer Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans	169,000
Fair Value, Measurements, Nonrecurring [Member] | Mortgage Servicing Rights [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Mortgage servicing rights	125,000
Fair Value, Measurements, Nonrecurring [Member] | Construction [Member] | Commercial Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Other real estate owned, net	443,000	748,000
Fair Value, Measurements, Nonrecurring [Member] | Nonresidential [Member] | Commercial Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans		2,257,000
Fair Value, Measurements, Nonrecurring [Member] | Secured [Member] | Commercial Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans		284,000
Fair Value, Measurements, Nonrecurring [Member] | Auto [Member] | Consumer Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans		177,000
Fair Value, Measurements, Nonrecurring [Member] | Recreational Vehicle [Member] | Consumer Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans		89,000
Residential Mortgage Loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | One-to Four-Family [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans	536,000	919,000
Other real estate owned, net	136,000	281,000
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Mortgage Servicing Rights [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Mortgage servicing rights	125,000
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Multifamily [Member] | Commercial Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans	443,000
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Home Equity [Member] | Consumer Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans	92,000	228,000
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Marine [Member] | Consumer Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans	169,000
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Construction [Member] | Commercial Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Other real estate owned, net	443,000	748,000
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Nonresidential [Member] | Commercial Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans		2,257,000
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Secured [Member] | Commercial Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans		284,000
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Auto [Member] | Consumer Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans		177,000
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Recreational Vehicle [Member] | Consumer Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans		89,000
Significant Unobservable Inputs (Level 3) [Member] | Residential Mortgage Loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | One-to Four-Family [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans	536,000	919,000
Other real estate owned, net	$ 136,000	$ 281,000

XML

Fair Value Measurement - Quantitative Information About Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on Nonrecurring Basis (Detail) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Impaired Loans [Member] | Multifamily [Member] | Commercial Loans [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value	$ 443
Impaired Loans [Member] | Multifamily [Member] | Commercial Loans [Member] | Minimum [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales	0.00%
Impaired Loans [Member] | Multifamily [Member] | Commercial Loans [Member] | Maximum [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales	35.00%
Impaired Loans [Member] | Multifamily [Member] | Commercial Loans [Member] | Weighted Average [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales	15.00%
Impaired Loans [Member] | Home Equity [Member] | Consumer Loans [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value	$ 92	$ 228
Impaired Loans [Member] | Home Equity [Member] | Consumer Loans [Member] | Minimum [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales	0.00%	0.00%
Impaired Loans [Member] | Home Equity [Member] | Consumer Loans [Member] | Maximum [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales	17.85%	17.85%
Impaired Loans [Member] | Home Equity [Member] | Consumer Loans [Member] | Weighted Average [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales	8.93%	8.93%
Impaired Loans [Member] | Marine [Member] | Consumer Loans [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value	$ 169
Impaired Loans [Member] | Marine [Member] | Consumer Loans [Member] | Minimum [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales	0.00%
Impaired Loans [Member] | Marine [Member] | Consumer Loans [Member] | Maximum [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales	37.00%
Impaired Loans [Member] | Marine [Member] | Consumer Loans [Member] | Weighted Average [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales	37.00%
Impaired Loans [Member] | Nonresidential [Member] | Commercial Loans [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value		$ 2,257
Impaired Loans [Member] | Nonresidential [Member] | Commercial Loans [Member] | Minimum [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales		0.00%
Impaired Loans [Member] | Nonresidential [Member] | Commercial Loans [Member] | Maximum [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales		35.00%
Impaired Loans [Member] | Nonresidential [Member] | Commercial Loans [Member] | Weighted Average [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales		15.00%
Impaired Loans [Member] | Secured [Member] | Commercial Loans [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value		$ 284
Impaired Loans [Member] | Secured [Member] | Commercial Loans [Member] | Minimum [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales		0.00%
Impaired Loans [Member] | Secured [Member] | Commercial Loans [Member] | Maximum [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales		64.00%
Impaired Loans [Member] | Secured [Member] | Commercial Loans [Member] | Weighted Average [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales		16.00%
Impaired Loans [Member] | Residential Mortgage Loans [Member] | One-to Four-Family [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value	$ 536	$ 919
Impaired Loans [Member] | Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Minimum [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales	0.00%	0.00%
Impaired Loans [Member] | Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Maximum [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales	10.77%	10.77%
Impaired Loans [Member] | Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Weighted Average [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales	4.27%	4.27%
Other Real Estate Owned [Member] | Construction [Member] | Commercial Loans [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value	$ 443	$ 748
Other Real Estate Owned [Member] | Construction [Member] | Commercial Loans [Member] | Minimum [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales	0.00%	0.00%
Other Real Estate Owned [Member] | Construction [Member] | Commercial Loans [Member] | Minimum [Member] | Cost Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales		0.00%
Other Real Estate Owned [Member] | Construction [Member] | Commercial Loans [Member] | Maximum [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales	80.00%	90.40%
Other Real Estate Owned [Member] | Construction [Member] | Commercial Loans [Member] | Maximum [Member] | Cost Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales		33.33%
Other Real Estate Owned [Member] | Construction [Member] | Commercial Loans [Member] | Weighted Average [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales	24.03%	27.46%
Other Real Estate Owned [Member] | Construction [Member] | Commercial Loans [Member] | Weighted Average [Member] | Cost Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales		16.67%
Other Real Estate Owned [Member] | Residential Mortgage Loans [Member] | One-to Four-Family [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value	$ 136	$ 281
Other Real Estate Owned [Member] | Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Minimum [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales	0.00%	0.00%
Other Real Estate Owned [Member] | Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Maximum [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales	0.00%	27.00%
Other Real Estate Owned [Member] | Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Weighted Average [Member] | Sales Comparison Approach [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for differences between comparable sales	0.00%	7.74%

XML

Fair Value Measurement - Fair Value Option for Newly Originated Residential Mortgage and Permanent Construction Loans Held for Sale (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value Inputs Assets Quantitative Information [Line Items]
Aggregate fair value	$ 84,349	$ 62,593
Construction [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Aggregate fair value	84,349	62,593
Contractual balance	80,611	62,843
Gain (loss)	$ 3,738	$ (250)

XML

Fair Value Measurement - Amount of Gains and Losses from Changes in Fair Value Included in Earnings (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Fair Value Inputs Assets Quantitative Information [Line Items]
Change in fair value			$ 3,988	$ 2,205
Construction [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Change in fair value	$ 1,088	$ 556	3,988	2,205
Total change in fair value	$ 1,088	$ 556	$ 3,988	$ 2,205

XML

Fair Value Measurement - Carrying Value and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and cash equivalents, Carrying Value	$ 38,010	$ 45,887	$ 43,948	$ 35,910
Available for sale securities, Fair value	274,822	343,284
Held to maturity securities, Carrying Value	85,549	97,519
Loans held for sale at lower of cost or market, Carrying Value	196	165
Loans held for sale, at fair value	84,349	62,593
Loans, net, Carrying Value	1,947,695	1,503,577
FHLB stock, Carrying Value	19,324	18,068
Accrued interest receivable, Carrying Value	7,253	6,900
FHLB advances, Carrying Value	(328,341)	(390,756)
Advance payments by borrowers for taxes and insurance, Carrying Value	(16,048)	(23,812)
Accrued interest payable, Carrying Value	(722)	(145)
Held to maturity securities, Fair value	85,024	96,150
Reported Value Measurement [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and cash equivalents, Carrying Value	38,010	45,887
Available for sale securities, Fair value	274,822	343,284
Held to maturity securities, Carrying Value	85,549	97,519
Loans held for sale at lower of cost or market, Carrying Value	196	165
Loans held for sale, at fair value	84,349	62,593
Loans, net, Carrying Value	1,947,695	1,503,577
FHLB stock, Carrying Value	19,324	18,068
Accrued interest receivable, Carrying Value	7,253	6,900
Purchased certificate of deposit option, Carrying Value	823	882
Checking, savings and money market accounts, Carrying Value	(1,241,779)	(1,026,565)
Certificates of deposit, Carrying Value	(696,920)	(488,426)
FHLB advances, Carrying Value	(328,341)	(390,756)
Repurchase agreements and other, Carrying Value	(10,191)	(512)
Advance payments by borrowers for taxes and insurance, Carrying Value	(16,048)	(23,812)
Accrued interest payable, Carrying Value	(722)	(145)
Written certificate of deposit option, Carrying Value	(823)	(882)
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and cash equivalents, Fair Value	38,010	45,887
Checking, savings and money market accounts, Fair Value	(1,241,779)	(1,026,565)
Advance payments by borrowers for taxes and insurance, Fair Value	(16,048)	(23,812)
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available for sale securities, Fair value	274,822	343,284
Loans held for sale, at fair value	14,111	8,832
Held to maturity securities, Fair value	85,024	92,940
Loans held for sale, Carrying Value	203	169
Accrued interest receivable, Fair Value	1,733	2,624
Purchased certificate of deposit option, Fair Value	823	882
Certificates of deposit, Fair Value	(698,045)	(491,278)
FHLB advances, Fair Value	(328,342)	(390,750)
Repurchase agreements and other, Fair Value	(9,911)	(513)
Accrued interest payable, Fair Value	(722)	(145)
Written certificate of deposit option, Fair Value	(823)	(882)
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Loans held for sale, at fair value	70,238	53,761
Held to maturity securities, Fair value		3,210
Loans, net, Fair Value	1,942,267	1,494,534
Accrued interest receivable, Fair Value	$ 5,520	$ 4,276

XML

Statement of Cash Flows Supplemental Disclosure - Supplemental Disclosures of Cash Flow Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Supplemental Cash Flow Information [Line Items]
Interest on deposits and borrowings	$ 8,611	$ 6,203
Income taxes	425	275
Supplemental schedule of noncash activities:
Transfers from loans to real estate owned and other repossessed assets	651	813
Transfers from loans to loans held for sale	27,921
Transfers from premises and equipment to other assets, held for sale	1,720
Accretion of securities held to maturity	151	181
James & Sons Insurance Company [Member]
Supplemental schedule of noncash activities:
Issuance of common stock		$ 1,547
Ohio Legacy Corp. [Member]
Supplemental schedule of noncash activities:
Issuance of common stock	25,816
Net assets acquired excluding cash and cash equivalents	$ 36

XML

Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Stock Option [Member]
Earnings Per Common Share [Line Items]
Number of anti-dilutive shares related to stock options	0	0	0	0

XML

Earnings Per Share - Computation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Net income per consolidated statements of income	$ 7,556	$ 5,153	$ 17,283	$ 13,803
Net income allocated to participating securities	(42)	(38)	(108)	(88)
Net income allocated to common stock	7,514	5,115	17,175	13,715
Distributed earnings allocated to common stock	1,979	1,385	4,941	3,753
Undistributed earnings allocated to common stock	5,535	3,730	12,234	9,962
Net income allocated to common stock	$ 7,514	$ 5,115	$ 17,175	$ 13,715
Weighted average common shares outstanding, including shares considered participating securities	49,736	46,508	49,353	47,104
Less: Average participating securities	(276)	(341)	(308)	(302)
Weighted average shares	49,460	46,167	49,045	46,802
Basic earnings per common share	$ 0.15	$ 0.11	$ 0.35	$ 0.29
Weighted average common shares outstanding for basic earnings per common share	49,460	46,167	49,045	46,802
Add: Dilutive effects of assumed exercises of stock options and LTIP awards	391	225	396	214
Weighted average shares and dilutive potential common shares	49,851	46,392	49,441	47,016
Diluted earnings per common share	$ 0.15	$ 0.11	$ 0.35	$ 0.29

XML

Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2014
Equity [Abstract]
Reclassification of net gains or (losses) included in other comprehensive income	$ 236	$ 218	$ 566	$ 604
Effect of disproportionate tax on accumulated other comprehensive income (loss)					$ (16,600)

XML

Other Comprehensive Income (Loss) - Other Comprehensive Income (Loss) Components and Related Tax Effects (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive Income Loss [Line Items]
Balance			$ 249,806	$ 244,245
Other comprehensive income before reclassifications	$ 639	$ (1,227)	3,381	9,895
Amortization of unrealized gains of postretirement plan recognized in other comprehensive income		(289)		(651)
Accretion of unrealized losses of securities transferred from available for sale to held to maturity recognized in other comprehensive income	33	47	98	118
Reclassification adjustment for gains realized in income	(153)	(142)	(368)	(393)
Total other comprehensive income	519	(1,611)	3,111	8,969
Balance	291,851	256,403	291,851	256,403
Unrealized Gains (Losses) on Securities Available for Sale [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(603)	8,379	(3,130)	(2,492)
Other comprehensive income before reclassifications	639	(1,227)	3,381	9,895
Reclassification adjustment for gains realized in income	(153)	(142)	(368)	(393)
Total other comprehensive income	486	(1,369)	3,013	9,502
Balance	(117)	7,010	(117)	7,010
Disproportionate Tax Effect from Securities Available for Sale [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(17,110)	(17,110)	(17,110)	(17,110)
Balance	(17,110)	(17,110)	(17,110)	(17,110)
Losses on Securities Transferred From Available for Sale to Held to Maturity [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(735)	(889)	(800)	(960)
Accretion of unrealized losses of securities transferred from available for sale to held to maturity recognized in other comprehensive income	33	47	98	118
Total other comprehensive income	33	47	98	118
Balance	(702)	(842)	(702)	(842)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(18,448)	(8,640)	(21,040)	(19,220)
Total other comprehensive income			3,111	8,969
Balance	$ (17,929)	(10,251)	$ (17,929)	(10,251)
Unrealized Gains (Losses) from Postretirement Plan [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance		469		831
Amortization of unrealized gains of postretirement plan recognized in other comprehensive income		(289)		(651)
Total other comprehensive income		(289)		(651)
Balance		180		180
Disproportionate Tax Effect from Postretirement Plan [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance		511		511
Balance		$ 511		$ 511

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Other Comprehensive Income (Loss) - Summary of Reclassification Out of Each Component of Accumulated Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items]
Net gains on securities available for sale	$ 236	$ 218	$ 566	$ 604
Reduction in salaries & employee benefits	0	(445)	0	(1,001)
Tax expense	(3,067)	(2,288)	(7,001)	(6,409)
Net income	7,556	5,153	17,283	13,803
Amount Reclassified From Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items]
Net income	153	431	368	1,044
Amount Reclassified From Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Securities Available for Sale [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items]
Net gains on securities available for sale	236	218	566	604
Tax expense	$ (83)	(76)	$ (198)	(211)
Net income		142		393
Amount Reclassified From Accumulated Other Comprehensive Income [Member] | Amortization of Postretirement Benefits Prior Service Costs [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items]
Reduction in salaries & employee benefits		445		1,001
Tax expense		(156)		(350)
Net income		$ 289		$ 651

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Regulatory Capital Requirements - Additional Information (Detail)	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Capital adequacy requirements	The Basel III Capital Rules establish a common equity Tier 1 minimum capital requirement (4.5% of risk-weighted assets), a minimum Tier 1 capital to risk-based assets requirement (6% of risk-weighted assets) and assigns a risk weight (150%) to exposures that are more than 90 days past due or are on nonaccrual status and to certain commercial real estate facilities that finance the acquisition, development or construction of real property. The rules also require unrealized gains and losses on certain available-for-sale securities holdings to be included for purposes of calculating regulatory capital requirements unless a one-time opt-in or opt-out is exercised. In connection with the adoption of the Basel III Capital Rules, United Community and Home Savings elected to opt-out of the requirement to include most components of accumulated other comprehensive income in Common Equity Tier 1. The rule limits a banking organization’s capital distributions and certain discretionary bonus payments if the banking organization does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital risk-based weighted assets in addition to the amount necessary to meeting its minimum risk-based capital requirements.
Capital conservation buffer rate			0.625%
Scenario Forecast [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Capital conservation buffer rate		1.25%

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Regulatory Capital Requirements - Actual and Statutory Required Capital Amounts and Ratios (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
United Community [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Total capital (to risk-weighted assets), Actual Amount	$ 300,578	$ 277,817
Tier 1 capital (to risk-weighted assets), Actual Amount	280,023	258,869
Common equity Tier 1 capital (to risk-weighted assets), Actual Amount	280,023	258,869
Tier 1 capital (to average assets), Actual Amount	$ 280,023	$ 258,869
Total capital (to risk-weighted assets), Actual Ratio	15.38%	18.38%
Tier 1 capital (to risk-weighted assets), Actual Ratio	14.33%	17.13%
Common equity Tier 1 capital (to risk-weighted assets), Actual Ratio	14.33%	17.13%
Tier 1 capital (to average assets), Actual Ratio	10.95%	11.98%
Total capital (to risk-weighted assets), Minimum Capital Requirements Amount	$ 180,758	$ 130,369
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirements Amount	141,675	100,139
Common equity Tier 1 capital (to risk-weighted assets), Minimum Capital Requirements Amount	112,363	77,466
Tier 1 capital (to average assets), Minimum Capital Requirements Amount	$ 102,306	$ 86,425
Total capital (to risk-weighted assets), Minimum Capital Requirements Ratio	9.25%	8.625%
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirements Ratio	7.25%	6.625%
Common equity Tier 1 capital (to risk-weighted assets), Minimum Capital Requirements Ratio	5.75%	5.125%
Tier 1 capital (to average assets), Minimum Capital Requirements Ratio	4.00%	4.00%
Home Savings [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Total capital (to risk-weighted assets), Actual Amount	$ 287,665	$ 248,861
Tier 1 capital (to risk-weighted assets), Actual Amount	267,141	229,938
Common equity Tier 1 capital (to risk-weighted assets), Actual Amount	267,141	229,938
Tier 1 capital (to average assets), Actual Amount	$ 267,141	$ 229,938
Total capital (to risk-weighted assets), Actual Ratio	14.74%	16.47%
Tier 1 capital (to risk-weighted assets), Actual Ratio	13.69%	15.22%
Common equity Tier 1 capital (to risk-weighted assets), Actual Ratio	13.69%	15.22%
Tier 1 capital (to average assets), Actual Ratio	10.46%	10.65%
Total capital (to risk-weighted assets), Minimum Capital Requirements Amount	$ 180,469	$ 130,292
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirements Amount	141,448	100,079
Common equity Tier 1 capital (to risk-weighted assets), Minimum Capital Requirements Amount	112,183	77,420
Tier 1 capital (to average assets), Minimum Capital Requirements Amount	$ 102,142	$ 86,360
Total capital (to risk-weighted assets), Minimum Capital Requirements Ratio	9.25%	8.625%
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirements Ratio	7.25%	6.625%
Common equity Tier 1 capital (to risk-weighted assets), Minimum Capital Requirements Ratio	5.75%	5.125%
Tier 1 capital (to average assets), Minimum Capital Requirements Ratio	4.00%	4.00%
Total capital (to risk-weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 195,101	$ 151,063
Tier 1 capital (to risk-weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	156,081	120,850
Common equity Tier 1 capital (to risk-weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	126,816	98,191
Tier 1 capital (to average assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 127,677	$ 107,950
Total capital (to risk-weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	10.00%	10.00%
Tier 1 capital (to risk-weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	8.00%	8.00%
Common equity Tier 1 capital (to risk-weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	6.50%	6.50%
Tier 1 capital (to average assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	5.00%	5.00%

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Regulatory Capital Requirements - Components of Regulatory Capital (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Total shareholders' equity	$ 291,851	$ 249,806	$ 256,403	$ 244,245
Accumulated other comprehensive income	(17,929)	(21,040)
United Community [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Total shareholders' equity	291,851	249,806
Accumulated other comprehensive income	17,929	21,040
Intangible assets	(22,773)	(1,567)
Disallowed deferred tax assets	(6,984)	(10,410)
Tier 1 Capital	280,023	258,869
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets	20,555	18,948
Total risk-based capital	300,578	277,817
Home Savings [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Total shareholders' equity	272,589	216,475
Accumulated other comprehensive income	17,944	21,056
Intangible assets	(20,241)	(3)
Disallowed deferred tax assets	(3,151)	(7,590)
Tier 1 Capital	267,141	229,938
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets	20,524	18,923
Total risk-based capital	$ 287,665	$ 248,861

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Regulatory Capital Requirements - Components of Regulatory Capital (Parenthetical) (Detail)	Sep. 30, 2017	Dec. 31, 2016
United Community [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Allowance for loan and allowance for unfunded lending commitments, percentage of risk-weighted assets	1.25%	1.25%
Home Savings [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Allowance for loan and allowance for unfunded lending commitments, percentage of risk-weighted assets	1.25%	1.25%

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Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Deferred tax assets:
Loan loss reserves	$ 7,194	$ 6,680
Depreciation	940	748
Other real estate owned valuation	148	354
Tax credits carryforward	2,816	1,471
Unrealized loss on securities available for sale	62	1,685
Unrealized loss on securities held to maturity	378	431
Interest on nonaccrual loans	887	1,039
Net operating loss carryforward	4,613	8,574
Purchase accounting adjustment	781
Accrued bonuses	991	812
Other	80	221
Deferred tax assets	18,890	22,015
Deferred tax liabilities:
Deferred loan fees	1,772	1,275
Federal Home Loan Bank stock dividends	4,645	4,585
Mortgage servicing rights	2,257	2,124
FHLB prepayment penalty	649	786
Purchase accounting adjustment		371
Prepaid expenses	555	139
Deferred tax liabilities	9,878	9,280
Net deferred tax asset	$ 9,012	$ 12,735

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Income Taxes - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Net deferred tax asset	$ 9,012,000	$ 12,735,000
Operating loss carryforwards used against taxable income	$ 13,200,000
Expiration dates, operating loss carried forward	Dec. 31, 2030
Alternative minimum tax credits carried forward	$ 2,800,000

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Income Taxes - Summary of Difference in Effective Tax Rates and Statutory Federal Income Tax Rate of 35% (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Tax at statutory rate, amount	$ 3,718	$ 2,604	$ 8,499	$ 7,074
Tax exempt income, amount	(164)	(142)	(499)	(327)
Life insurance, amount	(148)	(132)	(416)	(388)
Stock compensation, amount	(102)		(300)
Other, amount	(237)	(42)	(283)	50
Income tax provision, total amount	$ 3,067	$ 2,288	$ 7,001	$ 6,409
Tax at statutory rate, rate	35.00%	35.00%	35.00%	35.00%
Tax exempt income, rate	(1.54%)	(1.91%)	(2.05%)	(1.62%)
Life insurance, rate	(1.39%)	(1.78%)	(1.71%)	(1.92%)
Stock compensation, rate	(0.96%)		(1.24%)
Other, rate	(2.23%)	(0.56%)	(1.17%)	0.25%
Income tax provision, total rate	28.88%	30.75%	28.83%	31.71%

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Goodwill and Intangible Assets - Change in Goodwill (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Goodwill [Line Items]
Beginning of the year	$ 208
End of the year	19,488	$ 208
James & Sons Insurance Company [Member]
Goodwill [Line Items]
Effect of adjustments	636
Acquired goodwill		$ 208
OLCB [Member]
Goodwill [Line Items]
Effect of adjustments	15
Acquired goodwill	18,420
Eich Brothers Insurance [Member]
Goodwill [Line Items]
Acquired goodwill	188
Stevens Insurance [Member]
Goodwill [Line Items]
Acquired goodwill	$ 21

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Goodwill and Intangible Assets - Additional Information (Detail)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) ReportingUnit	Sep. 30, 2016 USD ($)	Dec. 31, 2016 USD ($) ReportingUnit
Goodwill And Intangible Assets [Line Items]
Number of reporting units with carrying amount of zero or less than zero | ReportingUnit			0		0
Carrying amount of reporting unit	$ 0		$ 0		$ 0
Amortization of intangible assets	113,000	$ 72,000	308,000	$ 95,000
Maximum [Member]
Goodwill And Intangible Assets [Line Items]
Carrying amount of reporting unit	$ 0		$ 0		$ 0

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Goodwill and Intangible Assets - Schedule of Acquired Intangible Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 13,406	$ 10,352
Accumulated Amortization	9,299	8,991
Core deposit intangibles [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	11,184	8,952
Accumulated Amortization	9,167	8,947
Customer list intangible [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,222	1,400
Accumulated Amortization	$ 132	$ 44

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Goodwill and Intangible Assets - Schedule of Acquired Intangible Assets - Core Deposit (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Finite Lived Intangible Assets [Line Items]
Amortization	$ (113)	$ (72)	$ (308)	$ (95)
Core deposit intangibles [Member]
Finite Lived Intangible Assets [Line Items]
Beginning of the year			5	$ 30	$ 30
Amortization			(220)		(25)
End of the period	$ 2,017		2,017		$ 5
Core deposit intangibles [Member] | OLCB [Member]
Finite Lived Intangible Assets [Line Items]
Acquired intangibles			$ 2,232

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Goodwill and Intangible Assets - Schedule of Acquired Intangible Assets - Customer List (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Finite Lived Intangible Assets [Line Items]
Amortization	$ (113)	$ (72)	$ (308)	$ (95)
Customer list intangible [Member]
Finite Lived Intangible Assets [Line Items]
Beginning of the year			1,356
Amortization			(88)		$ (44)
End of the period	$ 2,090		2,090		1,356
Customer list intangible [Member] | James & Sons Insurance Company [Member]
Finite Lived Intangible Assets [Line Items]
Effect of adjustments			(41)
Acquired intangibles					$ 1,400
Customer list intangible [Member] | OLCB [Member]
Finite Lived Intangible Assets [Line Items]
Acquired intangibles			268
Customer list intangible [Member] | Eich Brothers Insurance [Member]
Finite Lived Intangible Assets [Line Items]
Acquired intangibles			535
Customer list intangible [Member] | Stevens Insurance [Member]
Finite Lived Intangible Assets [Line Items]
Acquired intangibles			$ 60

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Goodwill and Intangible Assets - Estimated Amortization Expense (Detail)	Sep. 30, 2017 USD ($)
Intangible Assets Accumulated Amortization [Abstract]
Remainder of 2017	$ 112,000
2018	448,000
2019	448,000
2020	448,000
2021	448,000
2022	$ 448,000

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Qualified Affordable Housing Project Investments - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Schedule Of Equity Method Investments [Line Items]
Investment in qualified affordable housing projects	$ 5,800,000		$ 5,800,000		$ 3,000,000
Unfunded commitments of investments in qualified affordable housing projects	5,700,000		5,700,000		$ 2,900,000
Recognized amortization expense included in income tax expense	44,000	$ 5,000	134,000	$ 5,000
Recognized tax credits and other benefits from investment in affordable housing tax credits	55,000	6,000	165,000	6,000
Impairment losses related to investment in qualified affordable housing projects	$ 0	$ 0	$ 0	$ 0
Minimum [Member]
Schedule Of Equity Method Investments [Line Items]
Expected period for fulfillment of investment commitments			8 years
Maximum [Member]
Schedule Of Equity Method Investments [Line Items]
Expected period for fulfillment of investment commitments			10 years