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 June 30, 2019

☐ 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 every Interactive Data File required to be submitted 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 such files). Yes  ☒    No  ☐

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

Large accelerated filer	☐		Accelerated filer	☒
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  ☒

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

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common shares, no par value	UCFC	Nasdaq Global Market

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 48,085,839 common shares as of July 31, 2019.

TABLE OF CONTENTS

			PAGE
Part I. FINANCIAL INFORMATION			3
	Item 1.	Financial Statements	3
	Condensed Consolidated Statements of Financial Condition as of June 30, 2019 (Unaudited) and December 31, 2018		3
	Condensed Consolidated Statements of Income and Comprehensive Income for the Three and Six Months Ended June 30, 2019 and 2018 (Unaudited)		4
	Condensed Consolidated Statement of Shareholders’ Equity for the Three and Six Months ended June 30, 2019 and 2018 (Unaudited)		6
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2019 and 2018 (Unaudited)		7
	Notes to Consolidated Financial Statements (Unaudited)		8-54
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	55-63
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	64
	Item 4.	Controls and Procedures	65
Part II. OTHER INFORMATION			66
	Item 1.	Legal Proceedings	66
	Item 1A.	Risk Factors	66
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	66
	Item 3.	Defaults Upon Senior Securities (None)	66
	Item 4.	Mine Safety Disclosures (None)	66
	Item 5.	Other Information (None)	66
	Item 6.	Exhibits	67
Signatures			68

2

PART I—FINANCIAL INFORMATION

ITEM 1. Financial Statements

UNITED COMMUNITY FINANCIAL CORP.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

	June 30,			December 31,
	2019			2018
	(Dollars in thousands)
Assets:
Cash and deposits with banks	$	27,507		$	34,380
Federal funds sold		27,055			26,605
Total cash and cash equivalents		54,562			60,985
Securities:
Trading		705			364
Available for sale		319,009			241,643
Held to maturity, (fair value of $0 and $75,075, respectively)		—			77,491
Loans held for sale, at fair value		97,477			91,472
Gross loans		2,249,808			2,197,285
Allowance for loan losses		(20,482	)		(20,443	)
Loans, net		2,229,326			2,176,842
Federal Home Loan Bank stock, at cost		14,059			19,144
Premises and equipment, net		22,130			21,930
Accrued interest receivable		9,184			9,080
Real estate owned and other repossessed assets, net		955			1,088
Goodwill		20,221			20,221
Customer list intangible		2,123			2,214
Core deposit intangible		1,439			1,603
Cash surrender value of life insurance		65,002			64,220
Other assets		32,924			23,060
Total assets	$	2,869,116		$	2,811,357
Liabilities and Shareholders' Equity
Liabilities:
Deposits:
Non-interest bearing	$	398,340		$	394,208
Interest bearing
Customer deposits		1,672,764			1,528,057
Brokered deposits		188,075			290,955
Total interest bearing deposits		1,860,839			1,819,012
Total deposits		2,259,179			2,213,220
Borrowed funds:
Short-term Federal Home Loan Bank advances		233,000			243,000
Repurchase agreements and other		146			224
Total borrowed funds		233,146			243,224
Advance payments by borrowers for taxes and insurance		25,335			27,192
Accrued interest payable		1,378			1,279
Accrued expenses and other liabilities		32,524			17,108
Total liabilities		2,551,562			2,502,023
Shareholders' Equity:
Preferred stock-no par value; 1,000,000 shares authorized and no shares issued or outstanding		—			—
Common stock-no par value; 499,000,000 shares authorized; 54,138,910 shares issued and    48,068,790 and 49,128,875 shares, respectively, outstanding		177,319			177,492
Retained earnings		204,355			192,062
Accumulated other comprehensive loss		(15,180	)		(21,436	)
Treasury stock, at cost, 6,070,120 and 5,010,035 shares, respectively		(48,940	)		(38,784	)
Total shareholders’ equity		317,554			309,334
Total liabilities and shareholders’ equity	$	2,869,116		$	2,811,357

See Notes to Consolidated Financial Statements.

3

UNITED COMMUNITY FINANCIAL CORP.

CONDENSEDCONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2019			2018			2019			2018
	(Dollars in thousands, except per share data)
Interest income
Loans	$	26,373		$	23,275		$	52,229		$	46,034
Loans held for sale		991			1,012			1,998			1,870
Securities available for sale, nontaxable		236			356			544			744
Securities available for sale, taxable		1,611			1,193			2,874			2,408
Securities held to maturity, nontaxable		25			61			100			112
Securities held to maturity, taxable		118			398			497			820
Federal Home Loan Bank stock dividends		245			274			534			554
Other interest earning assets		200			92			424			169
Total interest income		29,799			26,661			59,200			52,711
Interest expense
Deposits		7,197			3,790			13,771			6,887
Federal Home Loan Bank advances		559			1,576			1,200			2,996
Total interest expense		7,756			5,366			14,971			9,883
Net interest income		22,043			21,295			44,229			42,828
Provision for loan losses		(51	)		(138	)		10			269
Net interest income after provision for loan losses		22,094			21,433			44,219			42,559
Non-interest income
Insurance agency income		545			513			1,246			1,090
Brokerage income		409			300			779			572
Deposit related fees		1,417			1,392			2,758			2,692
Mortgage servicing fees		881			813			1,754			1,625
Mortgage servicing rights valuation		(996	)		(20	)		(1,495	)		(11	)
Mortgage servicing rights amortization		(553	)		(542	)		(999	)		(1,042	)
Other service fees		21			61			59			99
Net Gains (losses):
Trading securities, including change in fair value		39			—			103			—
Securities available for sale (includes $148, $94, $292 and $233,    respectively, accumulated other comprehensive income    reclassifications for unrealized net gains on available for sale    securities)		148			94			292			233
Mortgage banking income		2,631			1,205			4,307			2,563
Real estate owned and other repossessed assets, net		(33	)		(113	)		(64	)		(191	)
Debit/credit card fees		1,221			1,177			2,156			2,126
Trust fees		461			473			926			942
Increase in cash surrender value of life insurance		397			433			782			866
Other income		83			66			140			107
Total non-interest income		6,671			5,852			12,744			11,671
Non-interest expense
Salaries and employee benefits		9,106			8,937			19,681			18,935
Occupancy		1,028			950			2,074			2,050
Equipment and data processing		2,208			2,372			4,501			4,526
Financial institutions tax		509			495			1,018			991
Advertising		465			290			854			525
Amortization of intangible assets		127			132			255			245
FDIC insurance premiums		297			288			628			578
Other insurance premiums		76			109			151			218
Legal and consulting fees		214			147			274			446
Other professional fees		562			499			1,150			890
Supervisory fees		34			42			68			84
Real estate owned and other repossessed asset expenses		17			34			56			70
Other expenses		1,333			1,235			2,940			2,572
Total non-interest expenses		15,976			15,530			33,650			32,130
Income before income taxes		12,789			11,755			23,313			22,100
Income tax expense (includes $31, $20, $61 and $49 income tax expense from    reclassification items)		2,303			2,214			4,171			4,003
Net income	$	10,486		$	9,541		$	19,142		$	18,097

(Continued)

4

(Continued)

UNITED COMMUNITY FINANCIAL CORP.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)

	For the Three Months Ended June 30,					For the Six Months Ended June 30,
		2019		2018			2019		2018
	(Dollars in thousands, except per share data)
Net income	$	10,486	$	9,541		$	19,142	$	18,097
Other comprehensive (loss) income
Unrealized gain (loss) on securities, available for sale, net of    reclassifications and tax of $724, $381, $1,518 and $1,449,    respectively		2,715		(1,433	)		5,711		(5,453	)
Unamortized unrealized losses on securities transferred from    available for sale to held to maturity and then transferred    back to available for sale		512		—			512		—
Accretion of unrealized losses on securities transferred from    available for sale to held to maturity, net of tax of $2, $8, $9    and $16, respectively		9		31			33		61
Total other comprehensive income (loss)		3,236		(1,402	)		6,256		(5,392	)
Comprehensive income	$	13,722	$	8,139		$	25,398	$	12,705
Earnings per share
Basic	$	0.22	$	0.19		$	0.39	$	0.36
Diluted		0.22		0.19			0.39		0.36

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, 2019		49,128,875		$	177,492		$	192,062		$	(21,436	)	$	(38,784	)	$	309,334
Net income								8,656									8,656
Other comprehensive income											3,020						3,020
Stock option exercises		33,000			(187	)								257			70
Stock option expense					6												6
Restricted stock grants		18,969			(148	)								148			—
Restricted stock forfeitures		(834	)		6									(6	)		—
Restricted stock expense					143												143
Vesting of Long-term Incentive Plan		54,463			98									425			523
Cash dividend payments ($0.07 per share)								(3,432	)								(3,432	)
Treasury stock purchases		(381,785	)											(3,611	)		(3,611	)
Balance March 31, 2019		48,852,688		$	177,410		$	197,286		$	(18,416	)	$	(41,571	)	$	314,709
Net income							$	10,486									10,486
Other comprehensive income											3,236						3,236
Stock option exercises		26,600			(157	)								209			52
Restricted stock grants		11,489			(90	)								90			—
Restricted stock expense					156												156
Cash dividend payments ($0.07 per share)								(3,417	)								(3,417	)
Treasury stock purchases		(821,987	)		—									(7,668	)		(7,668	)
Balance June 30, 2019		48,068,790		$	177,319		$	204,355		$	(15,180	)	$	(48,940	)	$	317,554

	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, 2018		49,800,126		$	177,458		$	167,852		$	(18,685	)	$	(32,360	)	$	294,265
Net income								8,556									8,556
Other comprehensive loss											(3,990	)					(3,990	)
Stock option exercises		68,801			(284	)								513			229
Stock option expense					13												13
Restricted stock grants		27,702			(207	)								207			—
Restricted stock forfeitures		(807	)														—
Restricted stock expense					248									(6	)		242
Vesting of Long-term Incentive Plan		36,871			69									275			344
Cash dividend payments ($0.06 per share)								(2,989	)								(2,989	)
Treasury stock purchases		(50,202	)											(475	)		(475	)
Balance March 31, 2018		49,882,491		$	177,297		$	173,419		$	(22,675	)	$	(31,846	)	$	296,195
Net income								9,541									9,541
Other comprehensive loss											(1,402	)					(1,402	)
Stock option exercises		1,300			(8	)								11			3
Stock option expense					19												19
Restricted stock grants		30,283			(226	)								226			—
Restricted stock expense					229												229
Cash dividend payments ($0.06 per share)								(2,995	)								(2,995	)
Treasury stock purchases		(10,000	)											(106	)		(106	)
Balance June 30, 2018		49,904,074		$	177,311		$	179,965		$	(24,077	)	$	(31,715	)	$	301,484

See Notes to Consolidated Financial Statements.

6

UNITED COMMUNITY FINANCIAL CORP.

CONDENSEDCONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Six Months Ended June 30,
	2019			2018
	(Dollars in thousands)
Cash Flows from Operating Activities
Net income	$	19,142		$	18,097
Adjustments to reconcile net income to net cash provided by operating activities
Provision for loan losses		10			269
Mortgage banking income		(1,066	)		(4,760	)
Changes in fair value on loans held for sale		(3,241	)		2,197
Net losses on real estate owned and other repossessed assets sold		64			191
Net gain on available for sale securities sold		(292	)		(233	)
Net gain on trading securities sold and change in fair value		(103	)		—
Purchases of trading securities		(238	)		—
Amortization of premiums and accretion of discounts		3,886			2,781
Depreciation and amortization		1,474			1,359
Net change in interest receivable		(104	)		(264	)
Net change in interest payable		99			(133	)
Net change in prepaid and other assets		(11,076	)		(3,545	)
Net change in other liabilities		16,604			705
Stock based compensation		305			503
Net principal disbursed on loans originated for sale		(151,061	)		(165,861	)
Proceeds from sale of loans held for sale		147,877			143,172
Cash used in payment of operating leases		(665	)		—
Net change in right of use asset		(345	)		—
Net change in deferred tax assets		(1,298	)		3,547
Net change in cash surrender value of life insurance		(782	)		(866	)
Net cash from operating activities		19,190			(2,841	)
Cash Flows from Investing Activities
Proceeds from the principal repayments and maturities of securities available for sale		5,310			5,488
Proceeds from the principal repayments and maturities of securities held to maturity		5,661			4,428
Proceeds from the sale of securities available for sale		58,294			10,361
Proceeds from the sale of real estate owned and other repossessed assets		722			674
Proceeds from the sale of loans held for investment		650			—
Proceeds from redemption of FHLB stock		5,085			—
Purchases of available for sale securities		(59,701	)		—
Purchase of securities held to maturity		(2,000	)		(3,000	)
Purchases of premises and equipment		(1,657	)		(893	)
Principal disbursed on loans, net of repayments		(27,553	)		(82,540	)
Loans purchased		(26,509	)		(18,246	)
Net cash from investing activities		(41,698	)		(83,728	)
Cash Flows from Financing Activities
Net change in checking, savings and money market accounts		121,642			79,339
Net change in certificates of deposit		(75,616	)		99,451
Net change in advance payments by borrowers for taxes and insurance		(1,857	)		(5,785	)
Net change in short-term FHLB advances		(10,000	)		(60,000	)
Net change in repurchase agreements and other borrowed funds		(78	)		(6	)
Proceeds from the exercise of stock options		122			232
Dividends paid		(6,849	)		(5,984	)
Purchase of treasury stock		(11,279	)		(581	)
Net cash from financing activities		16,085			106,666
Change in cash and cash equivalents		(6,423	)		20,097
Cash and cash equivalents, beginning of period		60,985			46,880
Cash and cash equivalents, end of period	$	54,562		$	66,977

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 The Home Savings and Loan Company of Youngstown, Ohio (Home Savings and Loan) issued upon the conversion of Home Savings and Loan 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 and Loan.  Immediately following United Community’s acquisition of Ohio Legacy Corp. (OLCB) on January 31, 2017, Home Savings and Loan was merged into Premier Bank & Trust, OLCB’s wholly-owned, state-chartered bank subsidiary (PB&T), and the surviving bank changed its name to Home Savings Bank.  In connection with OLCB acquisition, United Community became a financial holding company, and Home Savings Bank, its wholly-owned bank subsidiary following the merger (Home Savings or the Bank), is now an Ohio bank.

Home Savings conducts its business from its main office located in Youngstown, Ohio and 33 retail banking offices (32 in Ohio and one in Pennsylvania). Home Savings also has residential mortgage loan centers servicing Ohio, West Virginia, western Pennsylvania, northern Kentucky, and eastern Indiana.  

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, which offers insurance products for business and residential customers, including auto, commercial, homeowners and life-health.  On July 1, 2018, James & Sons Insurance acquired Steinhauser Insurance Agency which offers property and casualty insurance.      

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 be repaid from the cash flow from the operations of the business.

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 six months ended June 30, 2019, are not necessarily indicative of the results to be expected for the year ending December 31, 2019. 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, 2018.

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 February 2016, the FASB issued ASU 2016-02 - Leases (Topic 842). The ASU amends existing guidance that requires lessees recognize the following for all leases (with the exception of short–term leases) at the commencement date (1) A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged.  Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers.  An entity may adopt the new guidance by either restating prior periods and recording a cumulative effect adjustment at the beginning of the earliest comparative period presented or by recording a cumulative effect adjustment at the beginning of the period of adoption.  The Company used the approach of recording a cumulative effect adjustment at the beginning of the period of adoption, however, no cumulative effect adjustment was required to be recorded.  The new guidance includes a number of optional transition-related practical expedients.  The practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset.  An entity that elects to apply these practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP.  The Company elected to apply the practical expedients.  In 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, ASU 2018-11, Leases (Topic 842): Targeted Improvements and ASU 2018-20, Leases (Topic 842): Narrow – Scope Improvements for Lessors.  These ASUs amend and clarify guidance in ASU 2016-02 and were being considered by the Company in determining the proper adoption of ASU 2016-02.  The adoption of this guidance on January 1, 2019, resulted in an approximate $5.2 million increase in right of use asset, $0.3 million increase in other assets and an approximate $5.5 million increase in lease liability.

In June 2016, the FASB Issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13).   ASU 2016-13 adds a new Topic 326 to the Accounting Standards Codification (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 has aggregated and verified the necessary data and addressed any data-archiving improvements necessary for the implementation of this ASU. Management has evaluated various models and parallel calculations are being performed to refine the calculation. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses.  The amendment clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20 and should be accounted for in accordance with Topic 842, Leases.

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.  The adoption of this guidance did not 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.

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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.  Early adoption is permitted for all entities.  The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.  These amendments revise and expand hedge accounting for both financial (e.g., interest rate) and commodity risks.  Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes.  It also makes certain targeted improvements to simplify the application of hedge accounting guidance.  This ASU is effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years.  Early adoption, including adoption in an interim period, is permitted. If an entity early adopts in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period (i.e., the initial application date).  The adoption of this guidance did not have an impact on the Company’s consolidated financial statements.

In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (ASU 2018-07).  The FASB issued ASU 2018-07 intending to reduce cost and complexity and to improve financial reporting for nonemployee share-based payments.  ASU 2018-07 expands the scope of Topic 718, Compensation—Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. ASU 2018-07 supersedes Subtopic 505-50, Equity—Equity-Based Payments to Non-Employees.  The amendments in ASU 2018-07 are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year.  Early adoption is permitted.  The adoption of this guidance did not have an impact on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.  This ASU modifies the disclosure objective paragraphs of ASU 820 to eliminate (1) “at a minimum” from the phrase “an entity shall disclose at a minimum” and (2) other similar “open ended” disclosure requirements to promote the appropriate exercise of discretion of entities.  The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.  Early adoption is permitted, including adoption in an interim period.  The Company is currently assessing the impact of ASU 2018-13 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 (SARs), 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, SARs, or other forms of stock-based incentive awards.  Because the 2007 Plan terminated, no additional awards may be made under it.

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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 that 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 under the 2015 Plan in the three or six months ended June 30, 2019  and zero and 50,000 options granted in the three and six months ended June 30, 2018. Pursuant to the terms of the 2015 Plan, 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 $- and $6,000 in stock option expense for the three and six months ended June 30, 2019, respectively.  The Company recognized $19,000 and $32,000 in stock option expense for the three and six months ended June 30, 2018, respectively.  The Company expects to recognize no additional stock option expense for the remainder of 2019.

A summary of option activity for the six months ended June 30, 2019 in the 2015 Plan, the 2007 Plan and the 1999 Plan is as follows:

	For the six months ended
	June 30, 2019
				Weighted		Aggregate
				average		intrinsic value
	Shares			exercise price		(in thousands)
Outstanding at beginning of year		223,432		$	3.93
Granted		—			—
Exercised		(59,600	)		2.03
Forfeited and expired		—			—
Outstanding at end of period		163,832			4.63	$	815
Shares subject to options exercisable at end of period		163,832			4.63	$	815

Information related to stock options for the six months ended June 30, 2019 and 2018 follows:

	June 30, 2019		June 30, 2018
Intrinsic value of options exercised	$	438,540	$	450,486
Cash received from option exercises		122,000		232,000
Tax benefit realized from option exercises		15,565		67,298
Weighted average fair value of options granted, per share	$	—	$	1.54

Information related to stock options granted during the six months ended June 30, 2018 were as follows:

	Six Months Ended
	June 30, 2018
Risk-free interest rate		2.69	%
Expected term (years)		5
Expected stock volatility		19.86	%
Dividend yield		2.48	%

As of June 30, 2019, there were no nonvested stock options outstanding.

Outstanding stock options at June 30, 2019 have a weighted average remaining life of 4.04 years and may be exercised in the range of $1.20 to $9.66 per share.

Restricted Stock Awards:

The 2007 Plan permitted and the 2015 Plan permits the issuance of restricted stock awards to eligible employees and nonemployee directors. Nonvested shares at June 30, 2019 aggregated 123,378, of which 21,953 are expected to vest during the remainder of 2019, 35,233 in 2020, 58,834 in 2021 and 7,358 in 2022. 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 $156,000 and $299,000 in restricted stock award expense for the three and six months ended June 30, 2019. The Company recognized approximately $229,000 and $471,000 in restricted stock award expense for the three and six months ended June 30, 2018.  The Company expects to recognize additional expenses related to restricted stock awards of approximately $261,000 in 2019, $321,000 in 2020, $153,000 in 2021 and $43,000 in 2022.  The total average per share fair value of shares vested during the three and six months ended June 30, 2019 was $9.36 and $9.62.

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A summary of changes in the Company’s nonvested restricted shares for the six months ended June 30, 2019 is as follows:

	For the six months ended
	June 30, 2019
				Weighted
				average
				grant date
	Shares			fair value
Nonvested at beginning of year		210,713		$	8.15
Granted		30,458		$	9.42
Vested		(116,959	)	$	6.92
Forfeited		(834	)	$	9.10
Nonvested shares at end of period		123,378		$	9.63

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 $44,000 and $70,000 in expense for the restricted stock portion of the AIP for the three and six months ended June 30, 2019 and $217,000 and $917,000 for the cash portion of the AIP for the three and six months ended June 30, 2019.  The Company incurred $95,000 and $190,000 in expense for the restricted stock portion of the AIP for the three and six months ended June 30, 2018 and $426,000 and $871,000 for the cash portion of the AIP for the six months ended June 30, 2018, 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 $184,000and $366,000 for the LTIP for the three and six months ended June 30, 2019.  The Company incurred $212,000 and $381,000 in expense for the LTIP for the three and six months ended June 30, 2018.

4. REVENUE RECOGNITION

The Company recognizes 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 this result, the following five steps are applied:

Step 1: Identify the contract(s) with the customer

Step 2: Identify the performance obligation(s) in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

The revenue guidance applies to all contracts with customers to provide goods or services in the ordinary course of business, except for loans and securities, which are specifically excluded from the scope.

Because loans and securities are outside the scope of the revenue standard, the Company does not use the new standard to account for gains and losses on its investments in securities, loans and derivatives.  The Company also does not use the standard to account for interest and dividend income on financial instruments owned or those included in the Company’s lending activities.  

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Home Savings’ servicing of loans sold to investors requires Home Savings to provide specific administrative functions for the owner(s) of these assets.  These administrative functions include collecting cash flows from borrowers and remitting them to beneficial interest holders, monitoring delinquencies and executing foreclosures.  Servicing rights that relate to transferred financial assets meet the conditions for sale accounting under ASC 860.  ASC 860 requires the recognition of a servicing asset or liability when the benefits of servicing obtained from the contract are respectively greater than or less than adequate compensation (as defined in ASC 860) for performing the servicing.  While ASC 860 provides initial recognition and subsequent measurement guidance for recognized servicing assets and liabilities, it does not include any explicit guidance for recognizing contractually specified servicing fees when servicing income is equal to adequate compensation.   Therefore, income from servicing financial assets in the scope of ASC 860 is not in the scope of ASC 606, regardless of whether a servicing asset or liability exists. ASC 606 contains an exception to its scope for contracts that fall under ASC 860.

Deposit-related fees and charges are in the scope of ASC 606, even though ASC 405 is listed as an exception to the scope of the standard. That is because ASC 405, which the Company applies to determine the appropriate liability accounting for customer deposits, does not provide a model for recognizing fees related to customer deposits (e.g., automated teller machine fees, nonsufficient funds fees, account maintenance or dormancy fees).  When reviewing standard customer agreements, fees are charged as the service is rendered and therefore revenue is recognized at the time the transaction is executed as it is the point when the performance obligation has been met.

The Company records real estate owned and other repossessed assets (OREO) at fair value less costs to sell upon foreclosure. The objective is to sell OREO within a short period of time because of regulatory and capital requirements. After foreclosure, these assets are carried at the lower of their carrying amount or their fair value less selling costs, so significant gains and losses are uncommon upon sale. OREO is often sold in a transaction that, under the standard, may not be considered a contract with a customer because the sale of the asset is not an output of the entity’s ordinary activities. However, sales of  nonfinancial assets, including in substance nonfinancial assets, should be accounted for using new guidance in ASC 610-20, Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets, which requires entities to apply certain measurement and recognition concepts of ASC 606. Accordingly, the Company recognizes the sale of a real estate property, along with any associated gain or loss, when control of the property transfers to the buyer. For sales of existing real estate properties, this generally will occur at a point in time.

Insurance agency income is within the scope of ASC 606.  The majority (75%) of the Company’s insurance agency income is derived from direct-bill customers.  With this arrangement, the customer is billed directly from the insurance carrier.  As a result, the insurance carrier pays a commission to the Company upon completion of the required documentation (policy application or renewal) and recognizes income at that time.  Agency-billed customers account for approximately 25% of the overall insurance agency income.  Premiums are collected from customers and remitted to the insurance carrier, net of commission, within a short period of time.  At the time the premiums are remitted to the insurance carrier, all work is completed and revenue recognized at that time.

Debit card fee income is earned as a result of standard interchange fees contractually obligated by VISA to be paid.  Fees are received when they are essentially earned, which include fees charged to a reseller for the presentment of credit/debit cards in a point-of-sale (POS) transaction (interchange).  The service is considered complete upon payment in a POS transaction, when the interchange fee is earned and paid.  Credit card fees are paid when earned as a result of an agreement between the Company and a third-party provider.

Trust fee income is calculated based on assets under management.  Fees are recognized at the end of the month to which the service has been provided for customers billed monthly.  This amounts to approximately 85% of trust fee income recognized, which is collected within a short period of time after the fee is assessed to the customer.  Quarterly and annual fees are accrued and collected based on the contractual agreements with customers.  Fees are assessed to these customers and paid at the end of each quarter.  Quarterly and annual fees are to be recognized over the period when the fees are earned, regardless of when they are assessed to the customer.

Brokerage revenue is recognized each month as sales occur.  Brokerage revenue is paid from sales to customers by a third-party.  In a manner similar to that of insurance agency revenue, income is paid directly to the Bank by the third-party once the sale to the customer is complete.  

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5. SECURITIES

Components of the available for sale portfolio are as follows:

	June 30, 2019
			Gross		Gross
	Amortized		unrealized		unrealized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Available for Sale
U.S. Treasury and agency securities	$	64,337	$	1,453				$	65,790
States and municipalities		35,085		940					36,025
Corporate debt securities		13,204		159		(3	)		13,360
Collateralized mortgage obligations (CMO)		54,773		1,356		(22	)		56,107
Mortgage-backed securities (MBS)		149,168		265		(1,706	)		147,727
Total	$	316,567	$	4,173	$	(1,731	)	$	319,009

	December 31, 2018
			Gross		Gross
	Amortized		unrealized		unrealized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Available for Sale
U.S. Treasury and agency securities	$	97,785	$	—	$	(2,204	)	$	95,581
States and municipalities		48,167		107		(528	)		47,746
Corporate debt securities		2,000		4		—			2,004
Collateralized mortgage obligations (CMO)		21,979		143		(14	)		22,108
Mortgage-backed securities (MBS)		76,495		23		(2,314	)		74,204
Total	$	246,426	$	277	$	(5,060	)	$	241,643

During the second quarter of 2019, the Company elected to transfer it’s held to maturity securities portfolio to the available for sale portfolio.  At the time of transfer, the securities had an amortized cost of $74.6 million and a fair value of $72.5 million.  Due to the continued decline in interest rates, the Company elected to move the securities into available for sale to provide more opportunities to reposition the portfolio.  

Components of the held to maturity securities portfolio at December 31, 2018 are as follows:

	December 31, 2018
			Gross		Gross
	Amortized		unrecognized		unrecognized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Held to maturity
Mortgage-backed securities (MBS)	$	64,442	$	—	$	(2,327	)	$	62,115
States and municipalities		13,049		20		(109	)		12,960
Total	$	77,491	$	20	$	(2,436	)	$	75,075

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

	June 30, 2019
	Amortized cost		Fair value
	(Dollars in thousands)
Due in one year or less	$	2,000	$	2,021
Due after one year through five years		19,010		19,349
Due after five years through ten years		60,026		61,309
Due after ten years		31,590		32,496
MBS and CMO		203,941		203,834
Total	$	316,567	$	319,009

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Securities pledged for public funds were approximately $160.1 million at June 30, 2019 and approximately $108.7 million at December 31, 2018.  

Securities available for sale that have been in an unrealized loss position for less than twelve months or twelve months or more at June 30, 2019 are as follows:

	June 30, 2019
	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 agency securities	$	—	$	—		$	—	$	—		$	—	$	—
States and municipalities		—		—			—		—			—		—
Corporate debt securities		503		(3	)		—		—			503		(3	)
Collateralized mortgage obligations (CMO)		7,803		(22	)		—		—			7,803		(22	)
Mortgage-backed securities (MBS)		—		—			108,254		(1,706	)		108,254		(1,706	)
Total temporarily impaired securities	$	8,306	$	(25	)	$	108,254	$	(1,706	)	$	116,560	$	(1,731	)

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, 2018 are as follows:

	December 31, 2018
	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 agency securities	$	—	$	—		$	95,581	$	(2,204	)	$	95,581	$	(2,204	)
States and municipalities		9,475		(39	)		24,850		(489	)		34,325		(528	)
Collateralized mortgage obligations (CMO)		5,475		(14	)		—		—			5,475		(14	)
Mortgage-backed securities (MBS)		—		—			73,542		(2,314	)		73,542		(2,314	)
Total temporarily impaired securities	$	14,950	$	(53	)	$	193,973	$	(5,007	)	$	208,923	$	(5,060	)

June 30, 2019six months ended June 30, 2019

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: 

	December 31, 2018
	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 securities (MBS)	$	—	$	—		$	62,115	$	(3,203	)	$	62,115	$	(3,203	)
States and municipalities		4,253		(48	)		3,525		(69	)		7,778		(117	)
Total temporarily impaired securities	$	4,253	$	(48	)	$	65,640	$	(3,272	)	$	69,893	$	(3,320	)

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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 for the period ending December 31, 2018, 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.  These securities were transferred to available for sale from held to maturity in the second quarter of 2019.

All of the securities in available for sale that were temporarily impaired at June 30, 2019 were impaired due to the level of interest rates at the time of purchase compared to current interest rates. All of the securities in available for sale and held to maturity that were temporarily impaired at December 31, 2018 were also impaired due to the level of interest rates at the time of purchase compared to interest rates at that time.  Unrealized losses on these securities have not been recognized into income for the three and six months ended June 30, 2019 or 2018 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.  

Proceeds from the sale of available for sale securities were $42.6 million and $5.7 million for the three months ended June 30, 2019 and 2018, respectively.  Gross gains of $180,000 and $94,000 were realized on these sales during the three months ended June 30, 2019 and 2018, respectively.  Gross losses of $32,000 and $0 were realized during the three months ended June 30, 2019 and 2018, respectively.

Proceeds from the sale of available for sale securities were $58.3 million and $10.4 million, for the six months ended June 30, 2019 and 2018, respectively.  Gross gains of $324,000 and $233,000 were realized on these sales during the six months ended June 30, 2019 and 2018, respectively. Gross losses of $32,000 and $0 were realized during the six months ended June 30, 2019 and 2018, respectively.  

16

6. LOANS

Portfolio loans consist of the following:

	June 30,			December 31,
	2019			2018
	(Dollars in thousands)
Commercial loans
Multifamily	$	154,630		$	134,143
Nonresidential		414,780			409,979
Land		16,955			16,830
Construction		138,043			141,686
Secured		243,044			233,306
Unsecured		6,854			6,987
Total commercial loans		974,306			942,931
Residential mortgage loans
One-to four-family		942,698			927,255
Construction		46,196			43,435
Total residential mortgage loans		988,894			970,690
Consumer loans
Home equity		184,676			185,661
Auto		82,715			78,686
Marine		1,097			1,206
Recreational vehicle		3,433			4,347
Other		7,610			7,141
Total consumer loans		279,531			277,041
Total loans		2,242,731			2,190,662
Less:
Allowance for loan losses		20,482			20,443
Deferred loan costs, net		(7,077	)		(6,623	)
Total		13,405			13,820
Loans, net	$	2,229,326		$	2,176,842

17

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 June 30, 2019 and December 31, 2018 and activity for the three and six months ended June 30, 2019 and 2018.

Allowance For Loan Losses

	Commercial Loans			Residential Loans			Consumer Loans			Total
	(Dollars in thousands)
For the three months ended June 30, 2019
Beginning balance	$	12,114		$	5,823		$	2,509		$	20,446
Provision (recovery)		263			(312	)		(2	)		(51	)
Charge-offs		—			(79	)		(115	)		(194	)
Recoveries		170			26			85			281
Ending balance	$	12,547		$	5,458		$	2,477		$	20,482
For the six months ended June 30, 2019
Beginning balance	$	11,875		$	5,923		$	2,645		$	20,443
Provision		444			(490	)		56			10
Charge-offs		(88	)		(99	)		(440	)		(627	)
Recoveries		316			124			216			656
Ending balance	$	12,547		$	5,458		$	2,477		$	20,482
As of June 30, 2019
Period-end amount allocated to:
Loans individually evaluated for impairment	$	857		$	669		$	290			1,816
Loans collectively evaluated for impairment		11,690			4,789			2,187			18,666
Ending balance	$	12,547		$	5,458		$	2,477		$	20,482
Period-end balances:
Loans individually evaluated for impairment		7,680			12,402			5,057			25,139
Loans collectively evaluated for impairment		966,626			976,492			274,474			2,217,592
Ending balance	$	974,306		$	988,894		$	279,531		$	2,242,731

Allowance For Loan Losses

	Commercial Loans			Residential Loans			Consumer Loans			Total
For the three months ended June 30, 2018
Beginning balance	$	13,095		$	5,701		$	2,814		$	21,610
Provision (recovery)		(263	)		180			(55	)		(138	)
Charge-offs		(75	)		(96	)		(83	)		(254	)
Recoveries		51			82			54			187
Ending balance	$	12,808		$	5,867		$	2,730		$	21,405
For the six months ended June 30, 2018
Beginning balance	$	12,542		$	5,860		$	2,800		$	21,202
Provision		133			87			49			269
Charge-offs		(75	)		(181	)		(269	)		(525	)
Recoveries		208			101			150			459
Ending balance	$	12,808		$	5,867		$	2,730		$	21,405
As of December 31, 2018
Period-end amount allocated to:
Loans individually evaluated for impairment	$	103		$	798		$	300			1,201
Loans collectively evaluated for impairment		11,772			5,125			2,345			19,242
Ending balance	$	11,875		$	5,923		$	2,645		$	20,443
Period-end balances:
Loans individually evaluated for impairment		2,017			13,086			5,491			20,594
Loans collectively evaluated for impairment		940,914			957,604			271,550			2,170,068
Ending balance	$	942,931		$	970,690		$	277,041		$	2,190,662

18

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 June 30, 2019, the Company evaluated 28 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.

19

The following table presents loans individually evaluated for impairment by class of loans as of and for six months ended June 30, 2019:

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	$	155	$	—	$	—	$	57	$	1	$	1
Nonresidential		2,942		2,801		—		1,019		17		17
Land		—		—		—		—		—		—
Construction		2,446		—		—		—		—		—
Secured		235		—		—		—		—		—
Unsecured		474		—		—		—		—		—
Total commercial loans		6,252		2,801		—		1,076		18		18
Residential mortgage loans
One-to four-family		5,579		4,792		—		4,672		64		55
Construction		—		—		—		—		—		—
Total residential mortgage loans		5,579		4,792		—		4,672		64		55
Consumer loans
Home equity		1,041		926		—		912		7		6
Auto		33		25		—		19		—		—
Marine		354		105		—		118		—		—
Recreational vehicle		386		49		—		95		4		4
Other		—		—		—		—		—		—
Total consumer loans		1,814		1,105		—		1,144		11		10
Total	$	13,645	$	8,698	$	—	$	6,892	$	93	$	83
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—	$	—	$	—	$	—
Nonresidential		—		—		—		1,301		45		37
Land		—		—		—		—		—		—
Construction		—		—		—		—		—		—
Secured		5,654		4,879		857		1,947		137		137
Unsecured		—		—		—		—		—		—
Total commercial loans		5,654		4,879		857		3,248		182		174
Residential mortgage loans
One-to four-family		7,741		7,610		669		8,077		239		202
Construction		—		—		—		—		—		—
Total residential mortgage loans		7,741		7,610		669		8,077		239		202
Consumer loans
Home equity		3,620		3,535		274		3,680		110		97
Auto		—		—		—		—		—		—
Marine		86		86		1		89		2		2
Recreational vehicle		343		331		15		314		11		10
Other		—		—		—		—		—		—
Total consumer loans		4,049		3,952		290		4,083		123		109
Total		17,444		16,441		1,816		15,408		544		485
Total impaired loans	$	31,089	$	25,139	$	1,816	$	22,300	$	637	$	568

20

The following table presents loans individually evaluated for impairment by class of loans as of and for six months ended June 30, 2018:

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	$	28	$	—	$	—	$	—	$	—	$	—
Nonresidential		630		137		—		100		4		4
Land		706		—		—		6		—		—
Construction		2,457		—		—		—		—		—
Secured		1,115		907		—		901		—		—
Unsecured		184		—		—		—		—		—
Total commercial loans		5,120		1,044		—		1,007		4		4
Residential mortgage loans
One-to four-family		6,918		5,994		—		5,602		74		58
Construction		—		—		—		—		—		—
Total residential mortgage loans		6,918		5,994		—		5,602		74		58
Consumer loans
Home equity		1,496		1,224		—		1,087		11		10
Auto		29		22		—		33		—		—
Marine		553		181		—		181		—		—
Recreational vehicle		520		100		—		122		4		4
Other		1		—		—		6		—		—
Total consumer loans		2,599		1,527		—		1,429		15		14
Total	$	14,637	$	8,565	$	—	$	8,038	$	93	$	76
With a specific allowance recorded
Commercial loans
Multifamily	$	422	$	275	$	28	$	275	$	—	$	—
Nonresidential		1,235		1,232		13		1,356		52		44
Land		—		—		—		—		—		—
Construction		—		—		—		—		—		—
Secured		819		568		473		579		—		—
Unsecured		—		—		—		—		—		—
Total commercial loans		2,476		2,075		514		2,210		52		44
Residential mortgage loans
One-to four-family		8,574		8,461		834		9,793		233		195
Construction		—		—		—		—		—		—
Total residential mortgage loans		8,574		8,461		834		9,793		233		195
Consumer loans
Home equity		4,282		4,201		295		4,505		123		110
Auto		—		—		—		—		—		—
Marine		95		95		1		97		2		2
Recreational vehicle		393		381		17		393		11		10
Other		—		—		—		—		—		—
Total consumer loans		4,770		4,677		313		4,995		136		122
Total		15,820		15,213		1,661		16,998		421		361
Total impaired loans	$	30,457	$	23,778	$	1,661	$	25,036	$	514	$	437

21

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2018:

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With no specific allowance recorded
Commercial loans
Multifamily	$	443	$	170	$	—
Nonresidential		588		130		—
Land		—		—		—
Construction		2,447		—		—
Secured		806		—		—
Unsecured		474		—		—
Total commercial loans		4,758		300		—
Residential mortgage loans
One-to four-family		5,840		4,908		—
Construction		—		—		—
Total residential mortgage loans		5,840		4,908		—
Consumer loans
Home equity		1,084		957		—
Auto		25		17		—
Marine		502		145		—
Recreational vehicle		592		172		—
Other		—		—		—
Total consumer loans		2,203		1,291		—
Total	$	12,801	$	6,499	$	—
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		1,186		1,186		12
Land		—		—		—
Construction		—		—		—
Secured		989		531		91
Unsecured		—		—		—
Total commercial loans		2,175		1,717		103
Residential mortgage loans
One-to four-family		8,298		8,178		798
Construction		—		—		—
Total residential mortgage loans		8,298		8,178		798
Consumer loans
Home equity		3,925		3,842		283
Auto		—		—		—
Marine		91		91		1
Recreational vehicle		279		267		16
Other		—		—		—
Total consumer loans		4,295		4,200		300
Total		14,768		14,095		1,201
Total impaired loans	$	27,569	$	20,594	$	1,201

22

The following table presents loans individually evaluated for impairment by class of loans for the three months ended June 30, 2019:

	Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	—			$	—
Nonresidential		1,464		16		16
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		1,464		16		16
Residential mortgage loans
One-to four-family		4,554		35		35
Construction		—		—		—
Total residential mortgage loans		4,554		35		35
Consumer loans
Home equity		889		6		6
Auto		20		—		—
Marine		105		—		—
Recreational vehicle		56		2		2
Other		—		—		—
Total consumer loans		1,070		8		8
Total	$	7,088	$	59	$	59
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		1,359		—		—
Land		—		—		—
Construction		—		—		—
Secured		2,656		134		134
Unsecured		—		—		—
Total commercial loans		4,015		134		134
Residential mortgage loans
One-to four-family		8,027		92		91
Construction		—		—		—
Total residential mortgage loans		8,027		92		91
Consumer loans
Home equity		3,600		49		48
Auto		—		—		—
Marine		88		1		1
Recreational vehicle		338		5		5
Other		—		—		—
Total consumer loans		4,026		55		54
Total		16,068		281		279
Total impaired loans	$	23,156	$	340	$	338

23

The following table presents loans individually evaluated for impairment by class of loans for the three months ended June 30, 2018:

	Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		78		1		1
Land		5		—		—
Construction		—		—		—
Secured		905		—		—
Unsecured		—		—		—
Total commercial loans		988		1		1
Residential mortgage loans
One-to four-family		5,683		30		30
Construction		—		—		—
Total residential mortgage loans		5,683		30		30
Consumer loans
Home equity		1,101		6		6
Auto		42		—		—
Marine		181		—		—
Recreational vehicle		108		2		2
Other		8		—		—
Total consumer loans		1,440		8		8
Total	$	8,111	$	39	$	39
With a specific allowance recorded
Commercial loans
Multifamily	$	275	$	—	$	—
Nonresidential		1,323		22		22
Land		—		—		—
Construction		—		—		—
Secured		563		—		—
Unsecured		—		—		—
Total commercial loans		2,161		22		22
Residential mortgage loans
One-to four-family		9,340		98		96
Construction		—		—		—
Total residential mortgage loans		9,340		98		96
Consumer loans
Home equity		4,338		57		56
Auto		—		—		—
Marine		96		1		1
Recreational vehicle		387		5		5
Other		—		—		—
Total consumer loans		4,821		63		62
Total		16,322		183		180
Total impaired loans	$	24,433	$	222	$	219

24

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 June 30, 2019 and December 31, 2018, but legal title, deed in lieu of foreclosure or similar legal agreement to the property has not yet been obtained:

	June 30, 2019				December 31, 2018
	Unpaid Principal Balance		Recorded Investment		Unpaid Principal Balance		Recorded Investment
	(Dollars in thousands)				(Dollars in thousands)
Mortgage loans in process of foreclosure	$	3,847	$	3,686	$	3,687	$	3,636
Consumer loans in process of foreclosure		358		350		700		685

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 June 30, 2019:

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

As of June 30, 2019

	Nonaccrual		Loans past due over 90 days and still accruing
	(Dollars in thousands)
Commercial loans
Multifamily	$	—	$	—
Nonresidential		2,688		—
Land		—		—
Construction		—		—
Secured		4,678		—
Unsecured		—		—
Total commercial loans		7,366		—
Residential mortgage loans
One-to four-family		4,365		—
Construction		—		—
Total residential mortgage loans		4,365		—
Consumer Loans
Home equity		936		—
Auto		57		—
Marine		105		—
Recreational vehicle		34		—
Other		9		—
Total consumer loans		1,141		—
Total nonaccrual loans and loans past due over 90 days and still accruing	$	12,872	$	—

25

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, 2018:

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

As of December 31, 2018

	Nonaccrual		Loans past due over 90 days and still accruing
	(Dollars in thousands)
Commercial loans
Multifamily	$	171	$	—
Nonresidential		13		—
Land		—		—
Construction		—		—
Secured		531		—
Unsecured		—		—
Total commercial loans		715		—
Residential mortgage loans
One-to four-family		4,170		—
Construction		—		—
Total residential mortgage loans		4,170		—
Consumer Loans
Home equity		1,223		—
Auto		131		—
Marine		145		—
Recreational vehicle		145		—
Other		10		—
Total consumer loans		1,654		—
Total nonaccrual loans and loans past due over 90 days and still accruing	$	6,539	$	—

26

The following table presents an age analysis of past-due loans, segregated by class of loans as of June 30, 2019:

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	$	—	$	—	$	—	$	—	$	154,630	$	154,630
Nonresidential		104		1,681		—		1,785		412,995		414,780
Land		—		—		—		—		16,955		16,955
Construction		—		—		—		—		138,043		138,043
Secured		24		44		427		495		242,549		243,044
Unsecured		—		—		—		—		6,854		6,854
Total commercial loans		128		1,725		427		2,280		972,026		974,306
Residential mortgage loans
One-to four-family		3,059		765		3,867		7,691		935,007		942,698
Construction		—		—		—		—		46,196		46,196
Total residential mortgage loans		3,059		765		3,867		7,691		981,203		988,894
Consumer Loans:
Home equity		1,166		319		893		2,378		182,298		184,676
Automobile		254		49		57		360		82,355		82,715
Marine		—		—		105		105		992		1,097
Recreational vehicle		59		73		34		166		3,267		3,433
Other		31		11		9		51		7,559		7,610
Total consumer loans		1,510		452		1,098		3,060		276,471		279,531
Total loans	$	4,697	$	2,942	$	5,392	$	13,031	$	2,229,700	$	2,242,731

27

The following table presents an age analysis of past-due loans, segregated by class of loans as of December 31, 2018:

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	$	—	$	—	$	171	$	171	$	133,972	$	134,143
Nonresidential		—		—		—		—		409,979		409,979
Land		—		—		—		—		16,830		16,830
Construction		—		—		—		—		141,686		141,686
Secured		195		—		531		726		232,580		233,306
Unsecured		—		—		—		—		6,987		6,987
Total commercial loans		195		—		702		897		942,034		942,931
Residential mortgage loans
One-to four-family		2,139		882		3,470		6,491		920,764		927,255
Construction		—		—		—		—		43,435		43,435
Total residential    mortgage loans		2,139		882		3,470		6,491		964,199		970,690
Consumer Loans:
Home equity		658		295		1,147		2,100		183,561		185,661
Automobile		283		112		131		526		78,160		78,686
Marine		—		—		145		145		1,061		1,206
Recreational vehicle		548		—		145		693		3,654		4,347
Other		33		—		10		43		7,098		7,141
Total consumer loans		1,522		407		1,578		3,507		273,534		277,041
Total loans	$	3,856	$	1,289	$	5,750	$	10,895	$	2,179,767	$	2,190,662

As of June 30, 2019 and December 31, 2018, the Company has a recorded investment in troubled debt restructurings of $15.3 million and $16.6 million, respectively.  The Company allocated $989,000 of specific allowance for those loans at June 30, 2019 and $1.1 million at December 31, 2018.  The Company has committed to lend, to existing troubled debt restructuring relationships, additional amounts totaling up to $45,000 and $41,000 at June 30, 2019 and December 31, 2018, respectively.  

28

The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ended June 30, 2019:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(In thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		—		—		—
Land		—		—		—
Construction		—		—		—
Secured		1		824		824
Unsecured		—		—		—
Total commercial loans		1		824		824
Residential mortgage loans
One-to four-family		—		—		—
Construction		—		—		—
Total residential mortgage loans		—		—		—
Consumer loans
Home equity		1		40		44
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		1		40		44
Total restructured loans		2	$	864	$	868

The troubled debt restructurings described above increased the allowance for loan losses by $1,000 and resulted in no charge-offs during the three months ended June 30, 2019.

29

The following table presents loans by class modified as troubled debt restructurings that occurred during the six months ended June 30, 2019:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(In thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		—		—		—
Land		—		—		—
Construction		—		—		—
Secured		1		824		824
Unsecured		—		—		—
Total commercial loans		1		824		824
Residential mortgage loans
One-to four-family		1		335		355
Construction		—		—		—
Total residential mortgage loans		1		335		355
Consumer loans
Home equity		1		40		44
Auto		—		—		—
Marine		—		—		—
Recreational vehicle
Other		—		—		—
Total consumer loans		1		40		44
Total restructured loans		3	$	1,199	$	1,223

The troubled debt restructurings described above increased the allowance for loan losses by $1,000 and resulted in no charge-offs during the six months ended June 30, 2019.

30

The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ended June 30, 2018:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		—		—		—
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		—		—		—
Residential mortgage loans
One-to four-family		3		521		547
Construction		—		—		—
Total residential mortgage loans		3		521		547
Consumer loans
Home equity		2		113		113
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		2		113		113
Total restructured loans		5	$	634	$	660

The troubled debt restructurings described above increased the allowance for loans losses by $3,000 and resulted in no charge-offs during the three months ended June 30, 2018.

31

The following table presents loans by class modified as troubled debt restructurings that occurred during the six months ended June 30, 2018:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		1		124		124
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		1		124		124
Residential mortgage loans
One-to four-family		3		521		547
Construction		—		—		—
Total residential mortgage loans		3		521		547
Consumer loans
Home equity		2		113		113
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		2		113		113
Total restructured loans		6	$	758	$	784

The troubled debt restructurings described above increased the allowance for loans losses by $3,000 and resulted in no charge-offs during the six months ended June 30, 2018.

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There were no loans modified as troubled debt restructurings for which there was a payment default within a twelve-month cycle following the modification during the period ended June 30, 2019.

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 June 30, 2018:

	Number of loans		Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—
Nonresidential		1		121
Land		—		—
Construction		—		—
Secured		—		—
Unsecured		—		—
Total commercial loans		1		121
Residential mortgage loans
One-to four-family		2		357
Construction		—		—
Total residential mortgage loans		2		357
Consumer loans
Home equity		—		—
Auto		—		—
Marine		—		—
Recreational vehicle		—		—
Other		—		—
Total consumer loans		—		—
Total restructured loans		3	$	478

The troubled debt restructurings that subsequently defaulted described above resulted in no charge-offs during the three and six months ended June 30, 2018, 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.

33

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 June 30, 2019 and December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

June 30, 2019

(Dollars in thousands)

	Unclassified				Classified
	Unclassified		Special Mention		Substandard		Doubtful		Loss		Total Classified		Total Loans
Commercial Loans
Multifamily	$	142,730	$	10,824	$	1,076	$	—	$	—	$	1,076	$	154,630
Nonresidential		389,262		15,346		10,172		—		—		10,172		414,780
Land		16,955		—		—		—		—		—		16,955
Construction		135,658		2,385		—		—		—		—		138,043
Secured		220,556		3,065		19,423		—		—		19,423		243,044
Unsecured		6,771		—		83		—		—		83		6,854
Total commercial loans		911,932		31,620		30,754		—		—		30,754		974,306
Residential mortgage loans
One-to four-family		937,532		96		5,070		—		—		5,070		942,698
Construction		46,196		—		—		—		—		—		46,196
Total residential mortgage loans		983,728		96		5,070		—		—		5,070		988,894
Consumer Loans
Home equity		183,700		—		976		—		—		976		184,676
Auto		82,658		—		57		—		—		57		82,715
Marine		992		—		105		—		—		105		1,097
Recreational vehicle		3,399		—		34		—		—		34		3,433
Other		7,597		—		13		—		—		13		7,610
Total consumer loans		278,346		—		1,185		—		—		1,185		279,531
Total loans	$	2,174,006	$	31,716	$	37,009	$	—	$	—	$	37,009	$	2,242,731

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December 31, 2018

(Dollars in thousands)

	Unclassified				Classified
	Unclassified		Special Mention		Substandard		Doubtful		Loss		Total Classified		Total Loans
Commercial Loans
Multifamily	$	133,972	$	—	$	171	$	—	$	—	$	171	$	134,143
Nonresidential		378,160		18,420		13,399		—		—		13,399		409,979
Land		16,830		—		—		—		—		—		16,830
Construction		139,540		2,146		—		—		—		—		141,686
Secured		214,924		2,184		16,198		—		—		16,198		233,306
Unsecured		6,894		—		93		—		—		93		6,987
Total commercial loans		890,320		22,750		29,861		—		—		29,861		942,931
Residential mortgage loans
One-to four-family		921,694		591		4,970		—		—		4,970		927,255
Construction		43,435		—		—		—		—		—		43,435
Total residential mortgage loans		965,129		591		4,970		—		—		4,970		970,690
Consumer Loans
Home equity		184,438		—		1,223		—		—		1,223		185,661
Auto		78,551		—		135		—		—		135		78,686
Marine		1,061		—		145		—		—		145		1,206
Recreational vehicle		4,221		—		126		—		—		126		4,347
Other		7,131		—		10		—		—		10		7,141
Total consumer loans		275,402		—		1,639		—		—		1,639		277,041
Total loans	$	2,130,851	$	23,341	$	36,470	$	—	$	—	$	36,470	$	2,190,662

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.  As of June 30, 2019 and December 31, 2018 there were no outstanding purchase credit impaired loans.  

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

	Three Months Ended		Three Months Ended		For the six months ended		For the six months ended
	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
	(Dollars in thousands)				(Dollars in thousands)
Beginning of period	$	—	$	110	$	—	$	110
Accretion of income		—		6		—		6
Balance at end of period	$	—	$	104	$	—	$	104

For the purchased credit impaired loans disclosed above, there was no change in the allowance for loan losses for the three and six months ended June 30, 2019 and 2018.  

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:

	June 30, 2019		June 30, 2018
	(Dollars in thousands)
Loans at beginning of period	$	—	$	1,194
Loans purchased during the period		—		—
Loans at end of period		—		1,091

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7. MORTGAGE BANKING ACTIVITIES

Mortgage loans serviced for others, which are not reported in United Community’s assets, totaled $1.4 billion as of June 30, 2019 and $1.4 billion as of December 31, 2018. 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:

	June 30, 2019		December 31, 2018
	(Dollars in thousands)
Mortgage loan portfolios serviced for:
FHLMC	$	1,018,365	$	1,016,097
FNMA		395,438		347,294
Private investor		11,641		15,049

Customer escrow balances with loans serviced for FHLMC, FNMA and the private investor totaled $15.1 million and $16.3 million at June 30, 2019 and December 31, 2018, respectively.

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

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2019			2018			2019			2018
	(Dollars in thousands)
Balance, beginning of period	$	8,041		$	6,843		$	7,704		$	6,681
Originations		703			641			1,486			1,303
Amortized to expense		(553	)		(542	)		(999	)		(1,042	)
Balance, end of period		8,191			6,942			8,191			6,942
Less valuation allowance		(1,565	)		(20	)		(1,565	)		(20	)
Net balance	$	6,626		$	6,922		$	6,626		$	6,922

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

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2019			2018			2019			2018
	(Dollars in thousands)
Balance, beginning of period	$	(569	)	$	—		$	(70	)	$	(9	)
Impairment charges		(996	)		(20	)		(1,495	)		(20	)
Recoveries		—			—			—			9
Balance, end of period	$	(1,565	)	$	(20	)	$	(1,565	)	$	(20	)

The fair value of mortgage servicing rights as of June 30, 2019, was approximately $10.5 million and at December 31, 2018, the fair value was approximately $12.2 million.

Key economic assumptions in measuring the value of mortgage servicing rights at June 30, 2019, and December 31, 2018, were as follows:

	June 30, 2019	December 31, 2018
Weighted average prepayment rate	266 PSA	145 PSA
Weighted average life (in years)	5.27	7.26
Weighted average discount rate	11.00%	11.00%

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8. OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS

Real estate owned and other repossessed assets at June 30, 2019 and December 31, 2018 were as follows:

	June 30, 2019			December 31, 2018
	(Dollars in thousands)
Real estate owned and other repossessed assets	$	1,113		$	1,396
Valuation allowance		(158	)		(308	)
End of period	$	955		$	1,088

Activity in the valuation allowance was as follows:

	Three Months Ended						For the six months ended
	June 30, 2019			June 30, 2018			June 30, 2019			June 30, 2018
	(Dollars in thousands)
Beginning of period	$	318		$	287		$	308		$	403
Additions charged to expense		17			10			36			33
Sales of real estate owned with a valuation allowance		(177	)		(49	)		(186	)		(188	)
End of period	$	158		$	248		$	158		$	248

Expenses related to foreclosed and repossessed assets include:

	Three Months Ended				For the six months ended
	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
	(Dollars in thousands)
Net loss on sales	$	16	$	103	$	28	$	158
Provision for unrealized losses		17		10		36		33
Operating expenses, net of rental income		17		34		56		70
Total expenses	$	50	$	147	$	120	$	261

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:

Trading securities:  The fair values of trading securities are determined by obtaining quoted prices from a counterparty who makes a market in the securities (Level 1 inputs).  For securities where quoted prices are not available, fair value is calculated based on the market price of similar securities discounted for the price that certain bidders are willing to pay for the securities (Level 2).

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).

37

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, 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).  

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).

Interest rate swaps:  Home Savings periodically enters into interest rate swap agreements with its commercial customers who desire a fixed rate loan term that is longer than Home Savings is willing to extend.  Home Savings then enters into a reciprocal swap agreement with a 3^rd party that offsets the interest rate risk from the interest rate swap extended to the customer.  The interest rate swaps are derivative instruments which are carried at fair value on the consolidated balance sheet.  Home Savings uses an independent third party that performs a market valuation analysis for both swap positions (Level 2).

38

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 June 30, 2019 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	June 30,		Assets		Inputs		Inputs
	2019		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Trading securities	$	705	$	234	$	471	$	—
Available for sale securities
U.S. Treasury and agency securities		65,790		—		65,790		—
States and municipalities		36,025		—		36,025		—
Corporate debt securities		13,360		—		13,360		—
Collateralized mortgage obligations		56,107		—		56,107		—
Mortgage-backed securities		147,727		—		147,727		—
Loans held for sale, at fair value		97,477		—		27,912		69,565
Purchased certificate of deposit option		279		—		279		—
Interest rate swaps		121		—		121		—
Liabilities
Written certificate of deposit option		279		—		279		—
Interest rate swaps		133		—		133		—

			Fair Value Measurements at December 31, 2018 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
	2018		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Trading securities	$	364	$	364		—		—
Available for sale securities
U.S. Treasury and agency securities		95,581		—		95,581		—
States and municipalities		47,746		—		47,746		—
Corporate debt securities		2,004		—		2,004		—
Collateralized mortgage obligations		22,108		—		22,108		—
Mortgage-backed securities		74,204		—		74,204		—
Loans held for sale, at fair value		91,472		—		11,221		80,251
Purchased certificate of deposit option		261		—		261		—
Interest rate swaps		56		—		56		—
Liabilities
Written certificate of deposit option		261		—		261		—
Interest rate swaps		62		—		62		—

There were no transfers between Level 1 and Level 2 during the first and second quarters of 2019 or fiscal year 2018.

39

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 months ended June 30, 2019 and 2018.  

	Loans Held for Sale, At Fair Value
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2019			2018			2019			2018
	(Dollars in thousands)
Balance of recurring Level 3 assets at beginning of period	$	65,796		$	64,552		$	80,251		$	65,016
Total gains (losses) for the period
Included in change in fair value of loans held for sale		1,581			19			2,650			(2,139	)
Included in other comprehensive income		—			—			—			—
Originations/Draws on construction perm loans		30,633			35,517			53,730			62,327
Amortization		—			—			—			—
Sales		(28,445	)		(23,398	)		(67,066	)		(48,514	)
Balance of recurring Level 3 assets at end of period	$	69,565		$	76,690		$	69,565		$	76,690

The following table presents quantitative information about recurring Level 3 fair value measurements at June 30, 2019:

			Valuation	Unobservable
	Fair Value		Technique(s)	Input(s)	Range
Construction loans held for sale	$	69,565	Comparable sales	Time discount	0.00-0.39%

The following table presents quantitative information about recurring Level 3 fair value measurements at December 31, 2018:

			Valuation	Unobservable
	Fair Value		Technique(s)	Input(s)	Range
Construction loans held for sale	$	80,251	Comparable sales	Time discount	0.00-1.05%

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.

40

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 June 30, 2019 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	June 30,		Assets		Inputs		Inputs
	2019		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Impaired loans:
Commercial loans
Secured Commercial		3,807		—		—		3,807
Residential loans
One-to four-family residential		241		—		—		241
Consumer loans
Marine		105		—		—		105
Recreational vehicle		4		—		—		4
Mortgage servicing rights		2,610		—		2,610		—
Other real estate owned, net
Commercial loans
Construction loans		63		—		—		63
Residential loans
One-to four-family residential		66		—		—		66

			Fair Value Measurements at December 31, 2018 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
	2018		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Impaired loans:
Commercial loans
Secured	$	419	$	—	$	—	$	419
Residential loans
One-to four-family residential		540		—		—		540
Consumer loans
Auto		8		—		—		8
Mortgage servicing rights		2,990		—		2,990		—
Other real estate owned, net
Commercial loans
Auto		181		—		—		181
Residential loans
One-to four-family residential		121		—		—		121

41

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 $4.2 million at June 30, 2019, that includes a specific valuation allowance of $828,000. This resulted in an increase of the provision for loan losses of $86,000 and $122,000 during the three and six months ended June 30, 2019, 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 $432,000 at June 30, 2018, which includes a specific valuation allowance of $490,000. This resulted in an increase in the provision for loan losses of $252,000 and $479,000 for the three and six months ended June 30, 2018.  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 $967,000 at December 31, 2018, that includes a specific valuation allowance of $69,000.

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 June 30, 2019, mortgage servicing rights carried at fair value totaled $2.6 million with a valuation allowance of $1.6 million.  At June 30, 2018, $240,000 mortgage servicing rights were carried at fair value, resulting in a net valuation allowance of $20,000.  Mortgage servicing rights are valued by an independent third party that is active in purchasing and selling these instruments.  Net impairment reflected in mortgage servicing rights valuation totaled $996,000 and $1.5 million for the three and six months ended June 30, 2019.  A net impairment reflected in other income totaled $20,000 and $11,000 for the three and six months ended June 30, 2018.  The value reflects the characteristics of the underlying loans.  

At June 30, 2019, 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 $129,000, with a valuation allowance of $158,000. This resulted in expense of $17,000 and $36,000 during the three and six months ended June 30, 2019.  At June 30, 2018, 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 $286,000 with a valuation allowance of $248,000. This resulted in expense of $10,000 and $33,000 during the three and six months ended June 30, 2018. At December 31, 2018, other real estate owned had a net carrying amount of $302,000, with a valuation allowance of $308,000.

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at June 30, 2019:

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial loans
Secured Commercial		3,807	Sales comparison approach	Adjustment for differences between comparable sales	0.00-35.00%  (15.00%)
Residential loans
One-to four-family residential		241	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-10.77%  (4.27%)
Consumer loans
Marine		105	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-17.85%  (8.93%)
Recreational vehicle		4	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-17.85%  (8.93%)
Other real estate owned, net
Commercial loans
Construction loans		63	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-50.00%  (45.85%)
Residential loans
One-to four-family residential		66	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-14.22%  (14.22%)

42

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, 2018:

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial loans
Secured		419	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-64.00%  (16.00%)
Residential loans
One-to four-family residential		540	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-10.77%  (4.27%)
Other real estate owned:
Commercial loans
Construction loans		181	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-52.90%  (52.41%)
Residential loans
One-to four-family residential		121	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-13.43%  (13.43%)

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 June 30, 2019 and December 31, 2018.  

	June 30, 2019		December 31, 2018
	(Dollars in thousands)
Aggregate fair value	$	97,477	$	91,472
Contractual balance		90,495		87,731
Gain		6,982		3,741

The total amount of gains and losses from changes in fair value included in earnings for the three and six months ended June 30, 2019 and 2018 for loans held for sale, at fair value were:

	For the Three Months Ended				For the six months ended
	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
	(Dollars in thousands)
Interest  income	$	—	$	—	$	—	$	—
Interest expense		—		—		—		—
Change in fair value		2,162		285		3,241		(2,197	)
Total change in fair value	$	2,162	$	285	$	3,241	$	(2,197	)

43

In accordance with U.S. GAAP, the carrying value and estimated fair values of financial instruments at June 30, 2019 and December 31, 2018, were as follows:

				Fair Value Measurements at June 30, 2019 Using:
	June 30,
	2019
	Carrying Value			(Level 1)			(Level 2)			(Level 3)
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	54,562		$	54,562		$	—		$	—
Trading securities		705			234			471			—
Available for sale securities		319,009			—			319,009			—
Held to maturity securities		—			—			—			—
Loans held for sale, at fair value		97,477			—			27,912			69,565
Loans, net		2,229,326			—			—			2,225,425
Purchased certificate of deposit option		279			—			279			—
Interest rate swaps		121			—			121			—
Liabilities:
Deposits:
Checking, savings and money market accounts		(1,427,080	)		(1,427,080	)		—			—
Certificates of deposit		(832,099	)		—			(832,695	)		—
FHLB advances		(233,000	)		—			(233,000	)		—
Repurchase agreements and other		(146	)		—			(143	)		—
Written certificate of deposit option		(279	)		—			(279	)		—
Interest rate swaps		(133	)		—			(133	)		—

				Fair Value Measurements at December 31, 2018 Using:
	December 31,
	2018
	Carrying Value			(Level 1)			(Level 2)			(Level 3)
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	60,985		$	60,985		$	—		$	—
Trading securities		364			364			—			—
Available for sale securities		241,643			—			241,643			—
Held to maturity securities		77,491			—			71,206			3,869
Loans held for sale, at fair value		91,472			—			11,221			80,251
Loans, net		2,176,842			—			—			2,138,319
Purchased certificate of deposit option		261			—			261			—
Interest rate swaps		56						56			—
Liabilities:
Deposits:
Checking, savings and money market accounts		(1,305,439	)		(1,305,439	)		—			—
Certificates of deposit		(907,781	)		—			(904,198	)		—
FHLB advances		(243,000	)		—			(243,000	)		—
Repurchase agreements and other		(224	)		—			(213	)		—
Written certificate of deposit option		(261	)		—			(261	)		—
Interest rate swaps		(62	)		—			(62	)		—

44

10. STATEMENT OF CASH FLOWS SUPPLEMENTAL DISCLOSURE

Supplemental disclosures of cash flow information are summarized below.

	For the Six Months Ended June 30,
	2019		2018
	(Dollars in thousands)
Supplemental disclosures of cash flow information
Cash paid  during the period for:
Interest on deposits and borrowings	$	14,872	$	10,016
Income taxes		7,125		500
Supplemental schedule of noncash activities:
Transfers from loans to real estate owned and other repossessed assets		653		489
Transfer from held to maturity securities to available for sale securities		74,560		—
Accretion of securities held to maturity		42		77
Right of use asset recorded		5,469		—

11. EARNINGS PER SHARE

The Company has granted stock compensation awards with nonforfeitable dividend rights that 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. There were 50,000 stock options that were anti-dilutive for the three and six months ended June 30, 2019 and June 30, 2018.

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2019			2018			2019			2018
	(Dollars in thousands, except per share data)
Net income per consolidated statements of income	$	10,486		$	9,541		$	19,142		$	18,097
Net income allocated to participating securities		(27	)		(41	)		(66	)		(91	)
Net income allocated to common stock	$	10,459		$	9,500		$	19,076		$	18,006
Basic earnings per common share computation:
Distributed earnings allocated to common stock	$	3,407		$	2,982		$	6,827		$	5,954
Undistributed earnings allocated to common stock		7,052			6,518			12,249			12,052
Net income allocated to common stock	$	10,459		$	9,500		$	19,076		$	18,006
Weighted average common shares outstanding, including shares    considered participating securities		48,589			49,906			48,805			49,877
Less: Average participating securities		(126	)		(212	)		(167	)		(250	)
Weighted average shares		48,463			49,694			48,638			49,627
Basic earnings per common share	$	0.22		$	0.19		$	0.39		$	0.36
Diluted earnings per common share computation:
Net income allocated to common stock	$	10,459		$	9,500		$	19,076		$	18,006
Weighted average common shares outstanding for basic earnings    per common share		48,463			49,694			48,638			49,627
Add: Dilutive effects of assumed exercises of stock options and    LTIP awards		181			250			201			262
Weighted average shares and dilutive potential common shares		48,644			49,944			48,839			49,889
Diluted earnings per common share	$	0.22		$	0.19		$	0.39		$	0.36

45

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, accretion of unrealized losses on held to maturity securities, the transfer of the held to maturity securities portfolio to available for sale and disproportionate tax effects. The change includes reclassification of net gains or (losses) on sales of securities of $148,000 and $94,000 for the three months ended June 30, 2019 and 2018, respectively, and $292,000 and $233,000 for the six months ended June 30, 2019 and 2018, respectively.  Reclassifications also includes accretion of unrealized losses 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
June 30, 2019	(Dollars in thousands)
Balances at beginning of period, net of tax	$	(785	)	$	(17,110	)	$	(521	)	$	(18,416	)
Other comprehensive income before    reclassifications		3,344			—			—			3,344
Accretion of unrealized losses of securities    transferred from available for sale to    held to maturity recognized in other    comprehensive income		—			—			9			9
Transfer of held to maturity securities to available    for sale		(512	)		—			512			—
Reclassification adjustment for gains realized    in income		(117	)		—			—			(117	)
Net current period other comprehensive income		2,715			—			521			3,236
Balances at end of period, net of tax	$	1,930		$	(17,110	)	$	—		$	(15,180	)

	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			Total
June 30, 2018	(Dollars in thousands)
Balances at beginning of period, net of tax	$	(4,924	)	$	(17,110	)	$	(641	)	$	(22,675	)
Other comprehensive income before    reclassifications		(1,359	)		—			—			(1,359	)
Accretion of unrealized losses of securities    transferred from available for sale to    held to maturity recognized in other    comprehensive income		—			—			31			31
Reclassification adjustment for gains realized    in income		(74	)		—			—			(74	)
Net current period other comprehensive income		(1,433	)		—			31			(1,402	)
Balances at end of period, net of tax	$	(6,357	)	$	(17,110	)	$	(610	)	$	(24,077	)

46

Other comprehensive income (loss) components and related tax effects for the six-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
June 30, 2019	(Dollars in thousands)
Balances at beginning of period, net of tax	$	(3,781	)	$	(17,110	)	$	(545	)	$	(21,436	)
Other comprehensive income before    reclassifications		6,454			—			—			6,454
Accretion of unrealized losses of securities    transferred from available for sale to held    to maturity recognized in other    comprehensive income		—			—			33			33
Transfer of held to maturity securities to available    for sale		(512	)		—			512			—
Reclassification adjustment for gains realized    in income		(231	)		—			—			(231	)
Net current period other comprehensive income		5,711			—			545			6,256
Balances at end of period, net of tax	$	1,930		$	(17,110	)	$	—		$	(15,180	)

	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			Total
June 30, 2018	(Dollars in thousands)
Balances at beginning of period, net of tax	$	(904	)	$	(17,110	)	$	(671	)	$	(18,685	)
Other comprehensive income before    reclassifications		(5,269	)		—						(5,269	)
Accretion of unrealized losses of securities    transferred from available for sale to held    to maturity recognized in other comprehensive    income		—			—			61			61
Reclassification adjustment for gains realized    in income		(184	)		—			—			(184	)
Net current period other comprehensive income		(5,453	)		—			61			(5,392	)
Balances at end of period, net of tax	$	(6,357	)	$	(17,110	)	$	(610	)	$	(24,077	)

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).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.

47

The following are significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the three months ended June 30, 2019:

	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	$	(148	)	Net gains on securitiesavailable for sale
		31		Tax expense
Total reclassification during the period	$	(117	)	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 June 30, 2018:

	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	$	(94	)	Net gainson securitiesavailable for sale
		20		Tax expense
Total reclassification during the period	$	(74	)	Net of tax, increase to net income

The following are significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the six months ended June 30, 2019:

	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	$	(292	)	Net gainson securitiesavailable for sale
		61		Tax expense
		(231	)	Net of tax

The following are significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the six months ended June 30, 2018:

	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	$	(233	)	Net gains on securitiesavailable for sale
		49		Tax expense
Total reclassification during the period	$	(184	)	Net of tax, increase to net income

13. REGULATORY CAPITAL REQUIREMENTS

Home Savings is 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. 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.

48

The Basel III Capital Rules establish a common equity Tier 1 minimum capital requirement (4.5% of risk-weighted assets)and a minimum Tier 1 capital to risk-based assets requirement (6% of risk-weighted assets), and assign 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, 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 was fully phased in beginning January 1, 2019.  The capital conservation buffer is now 2.50%.  The capital conservation buffer for 2018 was 1.875%.

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).  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 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.

	June 30, 2019
											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)	$	310,134		14.17	%	$	175,147		8.00	%	$	218,934		10.00	%
Tier 1 capital (to risk-weighted assets)		289,697		13.23	%		131,360		6.00	%		175,147		8.00	%
Common equity Tier 1 capital (to risk-weighted    assets)		289,697		13.23	%		98,520		4.50	%		142,307		6.50	%
Tier 1 capital (to average assets)**		289,697		10.32	%		112,334		4.00	%		140,418		5.00	%

	December 31, 2018
											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)	$	301,864		14.30	%	$	168,841		8.00	%	$	211,051		10.00	%
Tier 1 capital (to risk-weighted assets)		281,475		13.34	%		126,631		6.00	%		168,841		8.00	%
Common equity Tier 1 capital (to risk-weighted    assets)		281,475		13.34	%		94,973		4.50	%		137,183		6.50	%
Tier 1 capital (to average assets)**		281,475		10.11	%		111,318		4.00	%		139,147		5.00	%

** Tier 1 Leverage Capital Ratio

Management believes that as of June 30, 2019 and December 31, 2018, Home Savings met all capital adequacy requirements to which it was subject. As of June 30, 2019 and December 31, 2018, Home Savings met the capital requirements to be deemed well capitalized. There are no known conditions that would change this classification subsequent to June 30, 2019.  

49

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

	June 30, 2019			December 31, 2018
Total shareholders' equity	$	295,306		$	281,006
Add (deduct)
Accumulated other comprehensive income		15,195			21,450
Intangible assets		(20,804	)		(20,981	)
Tier 1 Capital		289,697			281,475
Allowance for loan losses and allowance for unfunded lending commitments    limited to 1.25% of total risk-weighted assets		20,437			20,389
Total risk-based capital	$	310,134		$	301,864

** Tier 1 Leverage Capital Ratio

14. INCOME TAXES

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

	June 30,		December 31,
	2019		2018
	(Dollars in thousands)
Deferred tax assets:
Loan loss reserves	$	4,331	$	4,293
Depreciation		314		363
Other real estate owned valuation		33		65
Unrealized loss on securities available for sale		—		1,005
Unrealized loss on securities held to maturity		—		184
Interest on nonaccrual loans		338		425
Net operating loss carryforward		—		409
Accrued bonuses		719		840
Other		4		125
Deferred tax assets		5,739		7,709
Deferred tax liabilities:
Deferred loan fees		1,645		1,512
Federal Home Loan Bank stock dividends		613		2,749
Mortgage servicing rights		1,391		1,603
Purchase accounting adjustment		199		62
Prepaid expenses		227		228
Unrealized gain on securities available for sale		513		—
Deferred tax liabilities		4,588		6,154
Net deferred tax asset	$	1,151	$	1,555

As of June 30, 2019, the net deferred tax asset was $1.2 million, and as of December 31, 2018, the net deferred tax asset was $1.6 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.

50

Effective tax rates differ from the statutory federal income tax rate of 21% for 2019 and 2018 due to the following:

	For the Three Months Ended June 30,
	2019						2018
	Dollars			Rate			Dollars			Rate
	(Dollars in thousands)
Tax at statutory rate:	$	2,686			21.00	%	$	2,469			21.00	%
Increase (decrease) due to:
Tax exempt income		(33	)		(0.26	)%		(147	)		(1.26	)%
Increase (decrease) due to:
Life insurance		(83	)		(0.65	)%		(91	)		(0.77	)%
Stock compensation		(22	)		(0.17	)%		(4	)		(0.03	)%
Reversal of disproportionate tax effect		(145	)		(1.13	)%		—			—	%
Other		(100	)		(0.78	)%		(13	)		(0.11	)%
Income tax provision	$	2,303			18.01	%	$	2,214			18.83	%

	For the Six Months Ended June 30,
	2019						2018
	Dollars			Rate			Dollars			Rate
	(Dollars in thousands)
Tax at statutory rate:	$	4,896			21.00	%	$	4,641			21.00	%
Increase (decrease) due to:
Tax exempt income		(93	)		(0.40	)%		(181	)		(0.82	)%
Increase (decrease) due to:
Life insurance		(164	)		(0.70	)%		(182	)		(0.82	)%
Stock compensation		(80	)		(0.34	)%		(132	)		(0.60	)%
Reversal of disproportionate tax effect		(145	)		(0.62	)%		—			—	%
Other		(243	)		(1.05	)%		(143	)		(0.65	)%
Income tax provision	$	4,171			17.89	%	$	4,003			18.11	%

15. GOODWILL AND INTANGIBLE ASSETS

Goodwill:

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

	June 30, 2019		December 31, 2018
	(In thousands)
Beginning of the year	$	20,221	$	20,221
Impairment	—		—
End of the year	$	20,221	$	20,221

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 June 30, 2019 or December 31, 2018.

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Acquired Intangible Assets:

	June 30, 2019				December 31, 2018
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
	(In thousands)
Amortized intangible assets:
Core deposit intangibles	$	11,184	$	9,745	$	11,184	$	9,581
Customer list intangible		2,547		424		2,547		333
Total	$	13,731	$	10,169	$	13,731	$	9,914

Aggregate amortization expense for the three months ended June 30, 2019 and 2018 was $127,000 and $132,000, respectively. Aggregate amortization expense for the six months ended June 30, 2019 and 2018 was $255,000 and $245,000, respectively.

Estimated amortization expense for the remainder of 2019 and the next five years is as follows:

Remainder of 2019	$	255,000
2020		510,000
2021		510,000
2022		510,000
2023		510,000
2024		510,000

16. QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS

The Company invests in qualified affordable housing projects.  At June 30, 2019 and December 31, 2018, the balance of the investment for qualified affordable housing projects was $11.0 million and $8.4 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 $8.5 million and $6.5 million at June 30, 2019 and December 31, 2018, respectively.  The Company expects to fulfill these commitments over the next eight to ten years.

During the three months ended June 30, 2019 and 2018, the Company recognized amortization expense of $172,000 and $122,000, respectively, which was included within income tax expense on the consolidated statements of income.  During the six months ended June 30, 2019 and 2018, the Company recognized amortization expense of $345,000 and $243,000, respectively.  

Additionally, during the three months ended June 30, 2019 and 2018, the Company recognized tax credits and other benefits from its investment in affordable housing tax credits of $197,000 and $138,000, respectively.  During the six months ended June 30, 2019 and 2018, the Company recognized tax credits and other benefits from its investment in affordable housing tax credits of $394,000 and $277,000, respectively.  During the three and six months ended June 30, 2019 and 2018, the Company incurred no impairment losses.

17. DERIVATIVES

The Company periodically enters into written and purchased option derivative instruments to facilitate an equity linked time deposit product (the Power CD). The Power CD is a time deposit that provides the purchaser a guaranteed return of principal at maturity plus a potential equity return (a written option), while Home Savings receives a known stream of funds based on the equity return (a purchased option). The written and purchased options are mirror derivative instruments which are carried at fair value on the consolidated statements of financial condition.

Summary information about purchased and written options is as follows:

	June 30, 2019		December 31, 2018
	(Dollars in thousands)
Notional amount of purchased/written option	$	12,882	$	13,024
Weighted average maturity	1.0 years		1.6 years
Fair value of purchased/written option	$	279	$	261

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Purchased and written options are mirror derivative instruments and as such the changes in fair value are recorded through noninterest income, and offset each other. These options increased in value $18,000 in 2019 and decreased in value by $548,000 in 2018.

The following table reflects the fair value and location in the consolidated statement of financial condition of interest rate caps, along with purchased and written certificates of deposit options:

Included in other assets:

	June 30, 2019		December 31, 2018
	(Dollars in thousands)
Freestanding derivative assets not designated as hedges:
Purchased certificate of deposit option	$	279	$	261

Included in other liabilities:

	June 30, 2019		December 31, 2018
	(Dollars in thousands)
Freestanding derivative liabilities not designated as hedges:
Written certificate of deposit option	$	279	$	261

The Company is subject to counterparty risk. Counterparty risk is the risk to the Company that the counterparty will not live up to its contractual obligations. The ability of the Company to realize the benefit of the derivative contracts is dependent on the creditworthiness of the counterparty, which the Company expects will perform in accordance with the terms of the contracts.

Interest Rate Swaps

The Company maintains an interest rate protection program for commercial loan customers, which was established in 2018. Under this program, the Company provides a customer with a fixed rate loan while creating a variable rate asset for the Company by the customer entering into an interest rate swap with terms that match the loan.  The Company offsets its risk exposure by entering into an offsetting interest rate swap with an unaffiliated institution.  The Company had interest rate swaps associated with commercial loans with a notional value of $2.5 million and fair value of $121,000 in other assets and $133,000 in other liabilities. The difference in fair value of $12,000 between the asset and liability accounts represents a credit valuation adjustment that flows through noninterest income in the first half of 2019.  At December 31, 2018 the Company had interest rate swaps associated with commercial loans with a notional value of $2.5 million and fair value of $56,000 in other assets and $62,000 in other liabilities. The difference in fair value of $6,000 between the asset and liability accounts represents a credit valuation adjustment that flows through noninterest income during 2018.  These interest rate swaps did not have a material impact on the Company’s statements of operation or financial condition.

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18. LEASES

As of January 1, 2019, when the Company adopted ASU 2016-02 prospectively, operating leases are recorded as a right of use (“ROU”) asset and operating lease liability, included in other assets and other liabilities, respectively, on the consolidated balance sheet.  Operating lease ROU assets represent the right to use an underlying asset during the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease.  ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the incremental borrowing rate at the lease commencement date.  Operating lease expense, which is comprised of amortization of the amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight line basis over the lease term and is recorded primarily in net occupancy expense in the consolidated statements of comprehensive income.

Operating leases relate primarily to bank branches, office space and license agreements with remaining lease terms of generally one to 23 years, which includes options for multiple extensions, with a weighted-average lease term of 7 years.  As of June 30, 2019, operating lease ROU assets and liabilities were $4.8 million and $5.2 million, respectively.  During the quarter ended June 30, 2019, a new lease was signed which added $242,000 to both the ROU asset and operating lease liability.  The lease expense for operating leases was $343,000 and $661,000 for the three and six months ended June 30, 2019.  The weighted average discount rate was 2.68% as of June 30, 2019.

The right of use asset amortized $298,000 and $626,000 during the three and six months ended June 30, 2019.  Short-term lease expense was $31,000 and $62,000 for the three and six months ended June 30, 2019.

Future minimum lease payments under non-cancellable leases with initial or remaining lease terms in excess of one year at June 30, 2019 are as follows:

Year	(Dollars in thousands)
Remainder of 2019	$	667
2020		1,231
2021		994
2022		779
2023		424
2024 and thereafter		1,626
Total lease payments		5,721
Less:  Interest		(519	)
Present value of lease liabilities	$	5,202

Rent expense was $259,000 and $542,000 for the three and six months ended June 30, 2018.  Rent commitments under noncancelable operating leases for offices were as follows as of December 31, 2018, before considering renewal options that generally are present:

Year	(Dollars in thousands)
2019	$	1,085
2020		949
2021		892
2022		651
2023		346
Thereafter		867
Total	$	4,790

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

UNITED COMMUNITY FINANCIAL CORP.

	At or
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
Selected financial ratios and other data: (1)	2019			2018			2019			2018
Performance ratios:
Return on average assets (2)		1.48	%		1.40	%		1.35	%		1.34	%
Return on average equity (3)		13.22	%		12.56	%		12.11	%		12.00	%
Interest rate spread (4)		3.00	%		3.12	%		3.04	%		3.19	%
Net interest margin (5)		3.33	%		3.36	%		3.35	%		3.41	%
Noninterest expense to average assets		2.25	%		2.28	%		2.37	%		2.38	%
Efficiency ratio (6)		55.37	%		57.75	%		58.81	%		58.35	%
Average interest-earning assets to average interest-bearing liabilities		128.90	%		127.25	%		128.55	%		126.99	%
Capital ratios:
Average equity to average assets		11.17	%		11.15	%		11.16	%		11.17	%
Equity to assets, end of period		11.07	%		10.88	%		11.07	%		10.88	%
Tier 1 leverage ratio (Bank only)		10.32	%		10.23	%		10.32	%		10.23	%
Common equity Tier 1 capital (Bank only)		13.23	%		13.16	%		13.23	%		13.16	%
Tier 1 risk-based capital ratio (Bank only)		13.23	%		13.16	%		13.23	%		13.16	%
Total risk-based capital ratio (Bank only)		14.17	%		14.18	%		14.17	%		14.18	%
Asset quality ratios:
Nonperforming loans to net loans at end of period (7)		0.58	%		0.51	%		0.58	%		0.51	%
Nonperforming assets to average assets (8)		0.49	%		0.58	%		0.49	%		0.58	%
Nonperforming assets to total assets at end of period		0.48	%		0.57	%		0.48	%		0.57	%
Allowance for loan losses as a percent of loans		0.91	%		1.01	%		0.91	%		1.01	%
Allowance for loan losses as a percent of nonperforming loans (7)		159.12	%		198.38	%		159.12	%		198.38	%
Total classified assets as a percent of Tier 1 Capital (Bank only)		13.10	%		17.01	%		13.10	%		17.01	%
Total classified loans as a percent of Tier 1 Capital and ALLL (Bank    only)		11.93	%		14.12	%		11.93	%		14.12	%
Total classified assets as a percent of Tier 1 Capital and ALLL (Bank    only)		12.24	%		15.78	%		12.24	%		15.78	%
Net (recoveries) chargeoffs as a percent of average loans		(0.02	)%		0.01	%		0.00	%		0.01	%
Total 90+ days past due as a percent of net loans		0.24	%		0.40	%		0.24	%		0.40	%
Per share data:
Basic earnings per common share (9)	$	0.22		$	0.19		$	0.39		$	0.36
Diluted earnings per common share (9)		0.22			0.19			0.39			0.36
Book value per common share (10)		6.61			6.04			6.61			6.04
Tangible book value per common share (11)		6.11			5.56			6.11			5.56
Cash dividend per common share	$	0.070		$	0.060			0.140			0.120
Dividend payout ratio (12)		31.82	%		31.58	%		35.90	%		33.24	%

Notes:

^1. Ratios for the three 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

55

Forward-Looking Statements

When used in this Form 10-Q or other materials we have filed or may file with the Securities and Exchange Commission, the words or phrases “will likely result,” “are expected to,” “plan to,” “will continue,” “is anticipated,” “is intended,” “believe,” “project,” “good,” “estimate,” “project,” “goal,” “seek,” “strategy,” “future,” “may,” “should,” 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 and Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2018 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 June 30, 2019 and December 31, 2018

Available for sale securities increased $77.4 million during the first six months of 2019.  The increase in the balance is primarily due to the transfer of the held to maturity securities portfolio into available for sale during the second quarter of 2019.  Held to maturity balances with an amortized cost of $74.6 million and a fair value of $72.5 million were moved into the available for sale portfolio. Given the continued fall in interest rates, the Company elected to make this change to provide more opportunities to reposition the portfolio.  In addition to the movement of the held to maturity portfolio, available for sale balances changed due to pay downs, amortization of premiums/discounts on the securities and sales totaling $58.3 million, offset by purchases totaling $59.7 million.  In addition, the net unrealized loss in the available for sale portfolio was $4.8 million at December 31, 2018, compared to a net unrealized gain of $2.4 million at June 30, 2019.  The decrease in interest rates during the first half of the year positively impacted this change.  

Held to maturity securities declined $77.5 million to $0.0 million at June 30, 2019 compared to December 31, 2018.  The change was primarily the result of the transfer of the portfolio to available for sale discussed above during the second quarter of 2019 in addition to pay downs and the amortization of premiums/discounts on the securities.

Net loans increased $52.5 million to $2.2 billion during the first six months of 2019, primarily as a result of growth in the commercial loan portfolio.  Commercial loan balances were $974.3 million at June 30, 2019 compared to $942.9 million at December 31, 2018.    Residential mortgage loans increased $18.2 million during the first six months to $988.9 million at June 30, 2019 and consumer loan balances increased $2.5 million for the same period.  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 $20.5 million at June 30, 2019, materially unchanged from the figure reported at December 31, 2018.  The allowance for loan losses as a percentage of loans was 0.91% at June 30, 2019, compared to 0.93% at December 31, 2018.  

The allowance for loan losses as a percentage of nonperforming loans was 159.1% at June 30, 2019, compared to 312.6% at December 31, 2018, primarily as a result of a single credit.  A substantial portion of this credit was paid off in July.  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 June 30, 2019, the Company evaluated 28 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 $25.1 million at June 30, 2019, as compared to $20.6 million at December 31, 2018.

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.

56

TDR loans aggregated to $15.3 million at June 30, 2019 compared to $16.6 million at December 31, 2018.  Of the $15.3 million at June 30, 2019, $13.9 million were performing according to their modified loan terms.  The remaining balance of TDR loans of $1.4 million were considered nonperforming.

Nonperforming loans consist of nonaccrual loans and loans past due 90 days and still accruing. Nonperforming loans were $12.9 million, or 0.58% of loans, at June 30, 2019, compared to $6.5 million, or 0.30% of loans, at December 31, 2018, primarily as a result of a single credit. A substantial portion of this credit was paid off in July.  

Loans held for sale, carried at fair value, were $97.5 million at June 30, 2019, compared to $91.5 million at December 31, 2018.  The change was primarily attributable to the increase in the balance of saleable conventional loans during the period.  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.

Goodwill and other intangible assets decreased $255,000 during the first six months of 2019, due to the amortization of the customer list and core deposit intangibles.  

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 $782,000 as other non-interest income based on the change in cash value of the policies in the six months ended June 30, 2019 compared to $866,000 for the six months ended June 30, 2018.

Total deposits increased $46.0 million from $2.2 billion at December 31, 2018, to $2.3 billion at June 30, 2019.  The increase in deposits is primarily the result of growth in customer deposits (excluding brokered certificates of deposits, which totaled $148.8 million.  Non-interest bearing customer deposits grew $4.1 million during the first six months of 2019 while interest bearing customer deposits grew $144.7 million.  Growth in money market accounts and certificate of deposit balances drove the majority of the increase in interest bearing deposits.  Brokered deposits declined $102.9 million during the six months ended June 30, 2019 as the growth in customer deposits was used to pay down the level of brokered deposits.      

FHLB advances decreased from $243.0 million at December 31, 2018 to $233.0 million at June 30, 2019.  The change was primarily due to an increase in deposit balances that were used to pay down FHLB advances.

Shareholders’ equity increased $8.2 million to $317.5 million at June 30, 2019 from $309.3 million at December 31, 2018.  The increase is primarily due to the $19.1 million of net income earned during the period offset by dividends paid to shareholders of $6.8 million.  In addition, a positive change in accumulated other comprehensive income of $6.3 million during the six months was offset by a net increase in the treasury stock balance of $10.3 million.  The Company repurchased over 1.1 million common shares during the first six months of the year.  

Book value and tangible book value per common share as of June 30, 2019 was $6.61 and $6.11, respectively as compared to $6.04 and $5.56 per common share, respectively as of December 31, 2018.  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

June 30, 2019 and June 30, 2018

Net Income. United Community recognized net income for the three months ended June 30, 2019, of $10.5 million, or $0.22 per diluted common share compared to net income of $9.5 million for the three months ended June 30, 2018, or $0.19 per diluted share.  The continued growth in net interest income from higher earning assets, solid credit performance and growth in the Company’s noninterest income offset by an increase in noninterest expense have all led to the increase in net income.

Net Interest Income. Net interest income was $22.0 million in the second quarter of 2019 up from the $21.3 million recorded in the second quarter of 2018.  The growth of interest earning assets drove this increase offset by a 3 basis point decline in the net interest margin.  Net interest margin was 3.33% for the second quarter of 2019 compared to 3.36% in the second quarter of 2018.  The yield on interest earning assets increased 30 basis points year over year driven by an increase in the yield on total loans of 31 basis points.  The yield on loans increased due to increases in market rates, the subsequent repricing of floating and adjustable rate loans.  The yield on securities increased 13 basis points to 2.60% for the second quarter of 2019.  

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Interest income increased by $3.1 million in the second quarter of 2019 compared to the same period in 2018, to $29.8 million from $26.7 million. The increase is primarily a result of an increase in average earning assets of $108.7 million along with an increase in the yield on average interest earning assets of 30 basis points.  Average total loans, net increased $124.6 million in the second quarter compared to the same period in 2018 while average securities declined $25.4 million during this same period.  Interest income from total loans, net increased to $27.4 million for the quarter ended June 30, 2019 compared to $24.3 million for the same period in 2018.  Income from securities remained consistent at $2.0 million for the quarters ended June 30, 2019 and June 30, 2018.  

Interest expense increased by $2.4 million in the second quarter of 2019 to $7.8 million compared to the same period in 2018. This increase was primarily due to a $58.7 million increase in average interest-bearing liabilities due to growth along with a 43 basis point increase in the cost of interest-bearing liabilities.  The increase in the cost of interest-bearing liabilities was primarily due to increases in market rates discussed previously.  The cost of average customer interest-bearing deposits increased 49 basis points to 129 basis points for the three months ended June 30, 2019 from 80 basis points for the three months ended June 30, 2018.  The cost of average brokered deposits increased 76 basis points to 2.40% and average Federal Home Loan Bank advances increased to 2.49% for the quarter ending June 30, 2019.  The Company continues to utilize short term brokered deposit and short term FHLB advances interchangeably depending upon which offers the better rate.  

	For the Three Months Ended June 30,
	2019 vs. 2018
	Increase						Total
	(decrease) due to						increase
	Rate			Volume			(decrease)
	(Dollars in thousands)
Interest earning assets:
Loans	$	1,576		$	1,531		$	3,107
Loans held for sale		94			(115	)		(21	)
Securities:
Available for sale-taxable		196			222			418
Available for sale-nontaxable		5			(151	)		(146	)
Held to maturity-taxable		(106	)		(174	)		(280	)
Held to maturity-nontaxable		(20	)		(27	)		(47	)
Federal Home Loan Bank stock		43			(72	)		(29	)
Other interest earning assets		44			64			108
Total interest earning assets	$	1,832		$	1,278		$	3,110
Interest bearing liabilities:
Interest bearing deposits:
Savings accounts	$	—		$	—		$	—
Checking accounts		1,030			160			1,190
Customer certificates of deposit		951			137			1,088
Brokered certificates of deposit		409			720			1,129
Federal Home Loan Bank advances:
Long-term advances		—			(493	)		(493	)
Short-term advances		727			(1,251	)		(524	)
Repurchase agreements and other		—			—			—
Total interest bearing liabilities	$	3,117		$	(727	)		2,390
Change in net interest income							$	720

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 negative loan loss provision of $51,000 in the second quarter of 2019 compared to a negative loan loss provision of $138,000 in the second quarter of 2018.  The negative provision expense in the second quarter of 2019 was primarily driven by net recoveries on loans during the period along with a lower level of required allowance for loan losses.  Net recoveries in the second quarter of 2019 were $87,000.    

58

Noninterest Income. Non-interest income was $6.7 million in the second quarter of 2019 compared to $5.9 million in the second quarter of 2018.  The increase was primarily driven by an increase in mortgage banking income of $1.4 million along with increases in brokerage income of $109,000, trading security gains of $39,000 and lower losses on the sale of real estate owned of $80,000.  Offsetting this was a negative change in the valuation of mortgage servicing rights which amounted to $996,000.  The drop in mortgage rates during the last two quarters and a subsequent increase in prepayment speeds on mortgages was the driver of the valuation charge on mortgage servicing rights.

Noninterest Expense. Non-interest expense increased to $16.0 million during the second quarter of 2019 compared to $15.5 million during the second quarter of 2018.  The increase is primarily due to an increase of $169,000 in salary and benefit cost during the second quarter of 2019.  Increased expense in occupancy, advertising, legal and other professional fees and other expenses also contributed to the increase year over year offset by a decline in equipment and data processing expense.  

Income Taxes. During the three months ended June 30, 2019, the Company recognized tax expense of $2.3 million on pre-tax income of $12.8 million, compared to tax expense of $2.2 million on pre-tax income of $11.8 million for the three months ended June 30, 2018.  The increased pre-tax income discussed above was the primary reason for the increased income tax.  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 Six Months Ended

June 30, 2019 and June 30, 2018

Net Income. United Community recognized net income for the six months ended June 30, 2019, of $19.1 million, or $0.39 per diluted common share compared to net income of $18.1 million for the six months ended June 30, 2018, or $0.36 per diluted share.  The continued growth in net interest income from higher earning assets and reduced loan loss provision, along with improvement in noninterest income all contributed to the increase in net income, which was partially offset by an increase in noninterest expense.

Net Interest Income. Net interest income was $44.2 million in the first six months of 2019, up from the $42.8 million recorded in the first six months of 2018.  The growth of interest earning assets drove this increase, which was partially offset by a 6 basis point decline in the net interest margin.  Net interest margin was 3.35% for the first six months of 2019 compared to 3.41% in the first six months of 2018.  The yield on interest earning assets increased 30 basis points year over year driven by an increase in yield on total loans of 29 basis points.  The yield on loans increased due to increases in market rates and the subsequent repricing of floating and adjustable rate loans.  The yield on securities also increased 13 basis points compared to a year ago.  

Interest income increased by $6.5 million in the first six months of 2019 compared to the same period in 2018, to $59.2 million from $52.7 million. The increase is primarily a result of an increase in average earning assets of $130.9 million along with an increase in the yield on average interest earning assets of 30 basis points.  Average total loans net increased $147.1 million in the first six months of 2019 compared to the same period in 2018 while average securities declined $26.5 million during this same period.  Interest income from total loans, net increased to $54.2 million for the six months ended June 30, 2019 compared to $47.9 million for the same period in 2018.  Income from securities decreased to $4.0 million for the six months ended June 30, 2019 compared to $4.1 million for the six months ended June 30, 2018.  

59

Interest expense increased by $5.1 million in the first six months of 2019 to $15.0 million compared to the same period in 2018. This increase was primarily due to a $77.8 million increase in average interest-bearing liabilities due to growth along with a 45 basis point increase in the cost of interest-bearing liabilities.  The increase in the cost of interest-bearing liabilities was primarily due to increases in market rates interest rates.  The cost of average interest-bearing customer deposits increased 46 basis points to 120 basis points for the six months ended June 30, 2019 from 74 basis points for the six months ended June 30, 2018.  The cost of average borrowed funds increased to 2.49% for the six months ending June 30, 2019 compared to 2.02% for the six months ended June 30, 2018.

	For the Six Months Ended June 30,
	2019 vs. 2018
	Increase						Total
	(decrease) due to						increase
	Rate			Volume			(decrease)
	(Dollars in thousands)
Interest earning assets:
Loans	$	2,764		$	3,447		$	6,211
Loans held for sale		164			(36	)		128
Securities:
Available for sale-taxable		318			148			466
Available for sale-nontaxable		(6	)		(246	)		(252	)
Held to maturity-taxable		(67	)		(256	)		(323	)
Held to maturity-nontaxable		(10	)		(7	)		(17	)
Federal Home Loan Bank stock		113			(133	)		(20	)
Other interest earning assets		133			122			255
Total interest earning assets	$	3,409		$	3,039		$	6,448
Interest bearing liabilities:
Interest bearing deposits:
Savings accounts	$	4		$	(2	)	$	2
Checking accounts		1,738			204			1,942
Customer certificates of deposit		1,837			259			2,096
Brokered certificates of deposit		952			1,892			2,844
Federal Home Loan Bank advances:
Long-term advances		—			(924	)		(924	)
Short-term advances		3,998			(4,870	)		(872	)
Repurchase agreements and other		—			—			—
Total interest bearing liabilities	$	8,529		$	(3,441	)		5,088
Change in net interest income							$	1,360

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 $10,000 in the first six months of 2019, compared to $269,000 in the first six months of 2018.  Provision expense in the first six months of 2019 was primarily driven by net recoveries totaling $29,000 while there were $66,000 in net charge-offs during the first six months of 2018.  Improving credit quality continues to drive the low levels of loan loss provision.  

Noninterest Income. Non-interest income was $12.7 million in the first six months of 2019 compared to $11.7 million in the first six months of 2018.  The primary drivers of the increase were a year over year increase in mortgage banking income of $1.7 million, an increase in agency income of $156,000, an increase in brokerage income of $207,000, an increase in trading and security gains of $103,000 and an increase in mortgage servicing fees of $129,000.  A $1.5 million increase in the mortgage servicing rights valuation partially offset these increases.

Noninterest Expense. Non-interest expense increased to $33.7 million during the first six months of 2019 compared to $32.1 million during the first six months of 2018.  The change is due to a $746,000 increase in salaries and benefits, a $329,000 increase in advertising expense, a $260,000 increase in other professional fees and a $368,000 increase in other expenses.  A decrease in legal expenses partially offset these increases.  

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Income Taxes. During the six months ended June 30, 2019, the Company recognized tax expense of $4.2 million on pre-tax income of $23.3 million, compared to tax expense of $4.0 million on pre-tax income of $22.1 million for the six months ended June 30, 2018.  The increased pre-tax income discussed above was the primary reason for the increased income tax.  See Note 14 to the consolidated financial statements for additional information regarding the composition of income taxes.

Liquidity

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

The principal source 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 June 30, 2019, approximately $413.3 million of Home Savings’ customer 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 June 30, 2019, United Community had total on-hand liquidity, defined as cash and cash equivalents, unencumbered securities and additional FHLB borrowing capacity, of $644.3 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 June 30, 2019 and 2018. Average balance calculations were based on daily balances.

	For the Three Months Ended June 30,
	2019							2018
	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)(2)	$	2,207,554	$	26,382		4.79	%	$	2,075,307	$	23,275		4.49	%
Loans held for sale		84,210		991		4.71	%		91,836		1,012		4.42	%
Total loans, net		2,291,764		27,373		4.79	%		2,167,143		24,287		4.48	%
Securities:
Available for sale-taxable		243,895		1,611		2.64	%		207,908		1,193		2.30	%
Available for sale-nontaxable (2)		33,068		283		3.42	%		50,710		429		3.38	%
Held to maturity-taxable		31,498		118		1.50	%		70,406		398		2.26	%
Held to maturity-nontaxable (2)		6,406		31		1.94	%		11,265		78		2.77	%
Total securities		314,867		2,043		2.60	%		340,289		2,098		2.47	%
Federal Home Loan Bank stock		15,408		245		6.36	%		19,324		274		5.67	%
Other interest earning assets		37,240		200		2.15	%		23,831		92		1.55	%
Total interest earning assets		2,659,279		29,861		4.50	%		2,550,587		26,751		4.20	%
Non-interest earning assets		181,268							174,270
Total assets	$	2,840,547						$	2,724,857
Interest bearing liabilities:
Deposits:
Checking accounts	$	734,458		2,138		1.16	%	$	638,910		948		0.60	%
Savings accounts		293,784		26		0.04	%		307,250		26		0.03	%
Certificates of deposit
Customer certificates of deposit		645,115		3,231		2.00	%		608,079		2,143		1.41	%
Brokered certificates of deposit		299,747		1,802		2.40	%		164,400		673		1.64	%
Total certificates of deposit		944,862		5,033		2.14	%		772,479		2,816		1.46	%
Total interest bearing deposits		1,973,104		7,197		1.46	%		1,718,639		3,790		0.88	%
Federal Home Loan Bank advances
Long-term advances		—		—		0.00	%		48,799		493		4.05	%
Short-term advances		89,879		559		2.49	%		236,747		1,083		1.83	%
Total Federal Home Loan Bank advances		89,879		559		2.49	%		285,546		1,576		2.21	%
Repurchase agreements and other		142		—		0.00	%		195		—		0.00	%
Total borrowed funds		90,021		559		2.49	%		285,741		1,576		2.21	%
Total interest bearing liabilities	$	2,063,125		7,756		1.50	%	$	2,004,380		5,366		1.07	%
Non-interest bearing liabilities
Noninterest-bearing deposits		405,535							376,905
Other noninterest-bearing liabilities		54,622							39,839
Total noninterest bearing liabilities		460,157							416,744
Total liabilities	$	2,523,282						$	2,421,124
Shareholders’ equity		317,265							303,733
Total liabilities and equity	$	2,840,547						$	2,724,857
Net interest income and interest rate spread			$	22,105		3.00	%			$	21,385		3.12	%
Net interest margin						3.33	%						3.36	%
Average interest earning assets to average interest    bearing liabilities						128.90	%						127.25	%

⁽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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	For the Six Months Ended June 30,
	2019							2018
	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)	$	2,199,694	$	52,246		4.77	%	$	2,050,922	$	46,035		4.49	%
Loans held for sale		84,569		1,998		4.73	%		86,289		1,870		4.37	%
Total loans, net		2,284,263		54,244		4.77	%		2,137,211		47,905		4.48	%
Securities:
Available for sale-taxable		222,112		2,874		2.59	%		209,611		2,408		2.30	%
Available for sale-nontaxable (2)		38,240		649		3.39	%		52,712		901		3.42	%
Held to maturity-taxable		47,497		497		2.09	%		71,511		820		2.29	%
Held to maturity-nontaxable (2)		9,708		124		2.55	%		10,252		141		2.75	%
Total securities		317,557		4,144		2.61	%		344,086		4,270		2.48	%
Federal Home Loan Bank stock		16,702		534		6.39	%		19,324		554		5.73	%
Other interest earning assets		36,119		424		2.37	%		23,159		169		1.47	%
Total interest earning assets		2,654,641		59,346		4.49	%		2,523,780		52,898		4.19	%
Non-interest earning assets		179,102							175,520
Total assets	$	2,833,743						$	2,699,300
Interest bearing liabilities:
Deposits:
Checking accounts	$	692,595		3,577		1.03	%	$	622,221		1,635		0.53	%
Savings accounts		295,587		55		0.04	%		305,455		53		0.03	%
Certificates of deposit
Customer certificates of deposit		632,007		6,056		1.92	%		595,041		3,960		1.34	%
Brokered certificates of deposit		348,173		4,083		2.35	%		164,782		1,239		1.52	%
Total certificates of deposit		980,180		10,139		2.07	%		759,823		5,199		1.38	%
Total interest bearing deposits		1,968,362		13,771		1.40	%		1,687,499		6,887		0.82	%
Federal Home Loan Bank advances
Long-term advances		—		—		0.00	%		48,702		924		3.83	%
Short-term advances		96,569		1,200		2.49	%		250,956		2,072		1.66	%
Total Federal Home Loan Bank advances		96,569		1,200		2.49	%		299,658		2,996		2.02	%
Repurchase agreements and other		187		—		0.00	%		204		—		0.00	%
Total borrowed funds		96,756		1,200		2.49	%		299,862		2,996		2.01	%
Total interest bearing liabilities	$	2,065,118		14,971		1.45	%	$	1,987,361		9,883		1.00	%
Non-interest bearing liabilities
Noninterest-bearing deposits		403,218							370,138
Other noninterest-bearing liabilities		49,265							40,280
Total noninterest bearing liabilities		452,483							410,418
Total liabilities	$	2,517,601						$	2,397,779
Shareholders’ equity		316,142							301,521
Total liabilities and equity	$	2,833,743						$	2,699,300
Net interest income and interest rate spread			$	44,375		3.04	%			$	43,015		3.19	%
Net interest margin						3.35	%						3.41	%
Average interest earning assets to average interest    bearing liabilities						128.55	%						126.99	%

⁽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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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 set exposure limits annually 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 June 30, 2019 and the year ended December 31, 2018, 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 June 30, 2019
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			NPV Ratio Change %			Internal policy limitations on NPV Change			$ Change			Internal policy limitations			% Change
400		11.01	%		6.00	%		(0.27	)%		(10.00	)%	$	(4,290	)		(9.00	)%		(4.96	)%
300		11.27	%		6.00	%		2.08	%		(8.00	)%		(3,055	)		(7.00	)%		(3.53	)%
200		11.45	%		7.00	%		3.71	%		(6.00	)%		(1,852	)		(5.00	)%		(2.14	)%
100		11.46	%		7.00	%		3.86	%		(4.00	)%		(875	)		(3.00	)%		(1.01	)%
Static		11.04	%		9.00	%		—	%		—	%		—			—	%		—	%
-100		10.57	%		7.00	%		(4.27	)%		(4.00	)%		(92	)		(3.00	)%		(0.11	)%
-200		11.85	%		7.00	%		7.38	%		(6.00	)%		(1,992	)		(5.00	)%		(2.30	)%

Year Ended December 31, 2018
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			NPV Ratio Change %			Internal policy limitations on NPV Change			$ Change			Internal policy limitations			% Change
400		11.50	%		6.00	%		(0.63	)%		(20.00	)%	$	(3,055	)		(15.00	)%		(3.46	)%
300		11.80	%		6.00	%		(0.33	)%		(15.00	)%		(2,266	)		(10.00	)%		(2.56	)%
200		12.02	%		7.00	%		(0.11	)%		(10.00	)%		(1,486	)		(7.00	)%		(1.68	)%
100		12.16	%		7.00	%		0.04	%		(5.00	)%		(816	)		(3.00	)%		(0.92	)%
Static		12.13	%		9.00	%		—	%		—	%		—			—	%		—	%
-100		11.71	%		7.00	%		(0.41	)%		(10.00	)%		(184	)		(5.00	)%		(0.21	)%
-200		11.57	%		7.00	%		(0.55	)%		(15.00	)%		(2,139	)		(10.00	)%		(2.42	)%

64

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.

Evaluation of Disclosure Controls and Procedures

United Community’s management, with the participation of its Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of United Community’s disclosure controls and procedures as of June 30, 2019, as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934, as amended.  Based on this evaluation, United Community’s Chief Executive Officer and Chief Financial Officer concluded that United Community’s disclosure controls and procedures as of June 30, 2019 were effective.  

Changes in Internal Control over Financial Reporting

There were no changes in United Community’s internal control over financial reporting that occurred during the quarter ended June 30, 2019 that have materially affected, or are reasonably likely to materially affect, United Community’s internal control over financial reporting.

65

PART II. OTHER INFORMATION

UNITED COMMUNITY FINANCIAL CORP.

ITEM 1. Legal Proceedings.

United Community and its subsidiaries may, from time-to-time, be 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, 2018.  

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 June 30, 2019:

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(3)
April 1 through April 31, 2019		84,224	$	9.29		84,224		1,460,980
May 1 through May 31, 2019 (1)		429,756		9.27		427,724		1,033,256
June 1 through June 30, 2019 (2)		308,007		9.42		305,545		727,711
Total		821,987	$	9.33		817,493		727,711

⁽¹⁾ In May 2019, United Community purchased 2,032 common shares at $9.35 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⁾ In June 2019, United Community purchased 2,462 common shares at $9.29 per share from employees for the payment of employment taxes.  The purchase of these shares was not part of United Community’s share repurchase program

⁽³⁾ United Community’s stock repurchase program was publicly 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.  On January 22, 2019, United Community announced in a press release, an increase to the stock repurchase program of 1,000,000 common shares, a copy of which can be found in United Community’s Form 8-K filed on January 23, 2019.  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.

66

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 June 30, 2019, 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.

67

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: August 8, 2019	/s/ Gary M. Small
	Gary M. Small President and Chief Executive Officer
	(Principal Executive Officer)
Date: August 8, 2019	/s/ Timothy W. Esson
	Timothy W. Esson Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)

68

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)

August 8, 2019

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)

August 8, 2019

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 June 30, 2019 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)
August 8, 2019	August 8, 2019

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	6 Months Ended
	Jun. 30, 2019	Jul. 31, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Trading Symbol	UCFC
Entity Registrant Name	UNITED COMMUNITY FINANCIAL CORP
Entity Central Index Key	0000707886
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity File Number	000-024399
Entity Tax Identification Number	341856319
Entity Address, Address Line One	275 West Federal Street
Entity Address, City or Town	Youngstown
Entity Address, State or Province	Ohio
Entity Address, Postal Zip Code	44503-1203
City Area Code	330
Local Phone Number	742-0500
Entity Common Stock, Shares Outstanding		48,085,839

XML

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets:
Cash and deposits with banks	$ 27,507	$ 34,380
Federal funds sold	27,055	26,605
Total cash and cash equivalents	54,562	60,985
Securities:
Trading	705	364
Available for sale	319,009	241,643
Held to maturity, (fair value of $0 and $75,075, respectively)		77,491
Loans held for sale, at fair value	97,477	91,472
Gross loans	2,249,808	2,197,285
Allowance for loan losses	(20,482)	(20,443)
Loans, net	2,229,326	2,176,842
Federal Home Loan Bank stock, at cost	14,059	19,144
Premises and equipment, net	22,130	21,930
Accrued interest receivable	9,184	9,080
Real estate owned and other repossessed assets, net	955	1,088
Goodwill	20,221	20,221
Cash surrender value of life insurance	65,002	64,220
Other assets	32,924	23,060
Total assets	2,869,116	2,811,357
Deposits:
Non-interest bearing	398,340	394,208
Interest bearing
Customer deposits	1,672,764	1,528,057
Brokered deposits	188,075	290,955
Total interest bearing deposits	1,860,839	1,819,012
Total deposits	2,259,179	2,213,220
Borrowed funds:
Short-term Federal Home Loan Bank advances	233,000	243,000
Repurchase agreements and other	146	224
Total borrowed funds	233,146	243,224
Advance payments by borrowers for taxes and insurance	25,335	27,192
Accrued interest payable	1,378	1,279
Accrued expenses and other liabilities	32,524	17,108
Total liabilities	2,551,562	2,502,023
Shareholders' Equity:
Preferred stock-no par value; 1,000,000 shares authorized and no shares issued or outstanding
Common stock-no par value; 499,000,000 shares authorized; 54,138,910 shares issued and 48,068,790 and 49,128,875 shares, respectively, outstanding	177,319	177,492
Retained earnings	204,355	192,062
Accumulated other comprehensive loss	(15,180)	(21,436)
Treasury stock, at cost, 6,070,120 and 5,010,035 shares, respectively	(48,940)	(38,784)
Total shareholders’ equity	317,554	309,334
Total liabilities and shareholders’ equity	2,869,116	2,811,357
Customer list intangible [Member]
Securities:
Intangible assets	2,123	2,214
Core deposit intangibles [Member]
Securities:
Intangible assets	$ 1,439	$ 1,603

XML

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Held to maturity, Fair Value	$ 0	$ 75,075
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	48,068,790	49,128,875
Treasury stock, shares	6,070,120	5,010,035

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Interest income
Loans	$ 26,373	$ 23,275	$ 52,229	$ 46,034
Loans held for sale	991	1,012	1,998	1,870
Securities available for sale, nontaxable	236	356	544	744
Securities available for sale, taxable	1,611	1,193	2,874	2,408
Securities held to maturity, nontaxable	25	61	100	112
Securities held to maturity, taxable	118	398	497	820
Federal Home Loan Bank stock dividends	245	274	534	554
Other interest earning assets	200	92	424	169
Total interest income	29,799	26,661	59,200	52,711
Interest expense
Deposits	7,197	3,790	13,771	6,887
Federal Home Loan Bank advances	559	1,576	1,200	2,996
Total interest expense	7,756	5,366	14,971	9,883
Net interest income	22,043	21,295	44,229	42,828
Provision for loan losses	(51)	(138)	10	269
Net interest income after provision for loan losses	22,094	21,433	44,219	42,559
Non-interest income
Insurance agency income	545	513	1,246	1,090
Brokerage income	409	300	779	572
Mortgage servicing fees	881	813	1,754	1,625
Mortgage servicing rights valuation	(996)	(20)	(1,495)	(11)
Mortgage servicing rights amortization	(553)	(542)	(999)	(1,042)
Net Gains (losses):
Trading securities, including change in fair value	39		103
Securities available for sale (includes $148, $94, $292 and $233, respectively, accumulated other comprehensive income reclassifications for unrealized net gains on available for sale securities)	148	94	292	233
Mortgage banking income	2,631	1,205	4,307	2,563
Real estate owned and other repossessed assets, net	(33)	(113)	(64)	(191)
Increase in cash surrender value of life insurance	397	433	782	866
Other income	83	66	140	107
Total non-interest income	6,671	5,852	12,744	11,671
Non-interest expense
Salaries and employee benefits	9,106	8,937	19,681	18,935
Occupancy	1,028	950	2,074	2,050
Equipment and data processing	2,208	2,372	4,501	4,526
Financial institutions tax	509	495	1,018	991
Advertising	465	290	854	525
Amortization of intangible assets	127	132	255	245
FDIC insurance premiums	297	288	628	578
Other insurance premiums	76	109	151	218
Legal and consulting fees	214	147	274	446
Other professional fees	562	499	1,150	890
Supervisory fees	34	42	68	84
Real estate owned and other repossessed asset expenses	17	34	56	70
Other expenses	1,333	1,235	2,940	2,572
Total non-interest expenses	15,976	15,530	33,650	32,130
Income before income taxes	12,789	11,755	23,313	22,100
Income tax expense (includes $31, $20, $61 and $49 income tax expense from reclassification items)	2,303	2,214	4,171	4,003
Net income	10,486	9,541	19,142	18,097
Other comprehensive (loss) income
Unrealized gain (loss) on securities, available for sale, net of reclassifications and tax of $724, $381, $1,518 and $1,449, respectively	2,715	(1,433)	5,711	(5,453)
Unamortized unrealized losses on securities transferred from available for sale to held to maturity and then transferred back to available for sale	512		512
Accretion of unrealized losses on securities transferred from available for sale to held to maturity, net of tax of $2, $8, $9 and $16, respectively	9	31	33	61
Total other comprehensive income (loss)	3,236	(1,402)	6,256	(5,392)
Comprehensive income	$ 13,722	$ 8,139	$ 25,398	$ 12,705
Earnings per share
Basic	$ 0.22	$ 0.19	$ 0.39	$ 0.36
Diluted	$ 0.22	$ 0.19	$ 0.39	$ 0.36
Deposit Account [Member]
Non-interest income
Deposit related fees	$ 1,417	$ 1,392	$ 2,758	$ 2,692
Financial Service, Other [Member]
Non-interest income
Deposit related fees	21	61	59	99
Credit and Debit Card [Member]
Non-interest income
Deposit related fees	1,221	1,177	2,156	2,126
Fiduciary and Trust [Member]
Non-interest income
Deposit related fees	$ 461	$ 473	$ 926	$ 942

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Accumulated other comprehensive income	$ 148	$ 94	$ 292	$ 233
Income tax expense from reclassification items	31	20	61	49
Unrealized (loss) gain on securities available for sale, net of reclassifications, tax	724	381	1,518	1,449
Accretion of unrealized losses on securities transferred from available for sale to held to maturity, tax	$ 2	$ 8	$ 9	$ 16

XML

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]
Balance at Dec. 31, 2017	$ 294,265	$ 177,458	$ 167,852	$ (18,685)	$ (32,360)
Balance, shares at Dec. 31, 2017		49,800,126
Net income	8,556		8,556
Other comprehensive income (loss)	(3,990)			(3,990)
Stock option exercises, value	229	$ (284)			513
Stock option exercises, shares		68,801
Stock option expense	13	$ 13
Restricted stock grants, value		$ (207)			207
Restricted stock grants, shares		27,702
Restricted stock forfeitures, shares		(807)
Restricted stock expense	242	$ 248			(6)
Vesting of Long-term Incentive Plan, value	344	$ 69			275
Vesting of Long-term Incentive Plan, shares		36,871
Cash dividend payments	(2,989)		(2,989)
Treasury stock purchases, value	(475)				(475)
Treasury stock purchases, shares		(50,202)
Balance at Mar. 31, 2018	296,195	$ 177,297	173,419	(22,675)	(31,846)
Balance, shares at Mar. 31, 2018		49,882,491
Balance at Dec. 31, 2017	294,265	$ 177,458	167,852	(18,685)	(32,360)
Balance, shares at Dec. 31, 2017		49,800,126
Net income	18,097
Other comprehensive income (loss)	(5,392)
Balance at Jun. 30, 2018	301,484	$ 177,311	179,965	(24,077)	(31,715)
Balance, shares at Jun. 30, 2018		49,904,074
Balance at Mar. 31, 2018	296,195	$ 177,297	173,419	(22,675)	(31,846)
Balance, shares at Mar. 31, 2018		49,882,491
Net income	9,541		9,541
Other comprehensive income (loss)	(1,402)			(1,402)
Stock option exercises, value	3	$ (8)			11
Stock option exercises, shares		1,300
Stock option expense	19	$ 19
Restricted stock grants, value		$ (226)			226
Restricted stock grants, shares		30,283
Restricted stock expense	229	$ 229
Cash dividend payments	(2,995)		(2,995)
Treasury stock purchases, value	(106)				(106)
Treasury stock purchases, shares		(10,000)
Balance at Jun. 30, 2018	301,484	$ 177,311	179,965	(24,077)	(31,715)
Balance, shares at Jun. 30, 2018		49,904,074
Balance at Dec. 31, 2018	309,334	$ 177,492	192,062	(21,436)	(38,784)
Balance, shares at Dec. 31, 2018		49,128,875
Net income	8,656		8,656
Other comprehensive income (loss)	3,020			3,020
Stock option exercises, value	70	$ (187)			257
Stock option exercises, shares		33,000
Stock option expense	6	$ 6
Restricted stock grants, value		$ (148)			148
Restricted stock grants, shares		18,969
Restricted stock forfeitures, value		$ 6			(6)
Restricted stock forfeitures, shares		(834)
Restricted stock expense	143	$ 143
Vesting of Long-term Incentive Plan, value	523	$ 98			425
Vesting of Long-term Incentive Plan, shares		54,463
Cash dividend payments	(3,432)		(3,432)
Treasury stock purchases, value	(3,611)				(3,611)
Treasury stock purchases, shares		(381,785)
Balance at Mar. 31, 2019	314,709	$ 177,410	197,286	(18,416)	(41,571)
Balance, shares at Mar. 31, 2019		48,852,688
Balance at Dec. 31, 2018	309,334	$ 177,492	192,062	(21,436)	(38,784)
Balance, shares at Dec. 31, 2018		49,128,875
Net income	19,142
Other comprehensive income (loss)	$ 6,256
Stock option exercises, shares	59,600
Balance at Jun. 30, 2019	$ 317,554	$ 177,319	204,355	(15,180)	(48,940)
Balance, shares at Jun. 30, 2019		48,068,790
Balance at Mar. 31, 2019	314,709	$ 177,410	197,286	(18,416)	(41,571)
Balance, shares at Mar. 31, 2019		48,852,688
Net income	10,486		10,486
Other comprehensive income (loss)	3,236			3,236
Stock option exercises, value	52	$ (157)			209
Stock option exercises, shares		26,600
Restricted stock grants, value		$ (90)			90
Restricted stock grants, shares		11,489
Restricted stock expense	156	$ 156
Cash dividend payments	(3,417)		(3,417)
Treasury stock purchases, value	(7,668)				(7,668)
Treasury stock purchases, shares		(821,987)
Balance at Jun. 30, 2019	$ 317,554	$ 177,319	$ 204,355	$ (15,180)	$ (48,940)
Balance, shares at Jun. 30, 2019		48,068,790

XML

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018
Statement Of Stockholders Equity [Abstract]
Cash dividend payments, per share	$ 0.07	$ 0.07	$ 0.06	$ 0.06

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash Flows from Operating Activities
Net income	$ 19,142	$ 18,097
Adjustments to reconcile net income to net cash provided by operating activities
Provision for loan losses	10	269
Mortgage banking income	(1,066)	(4,760)
Changes in fair value on loans held for sale	(3,241)	2,197
Net losses on real estate owned and other repossessed assets sold	64	191
Net gain on available for sale securities sold	(292)	(233)
Net gain on trading securities sold and change in fair value	(103)
Purchases of trading securities	(238)
Amortization of premiums and accretion of discounts	3,886	2,781
Depreciation and amortization	1,474	1,359
Net change in interest receivable	(104)	(264)
Net change in interest payable	99	(133)
Net change in prepaid and other assets	(11,076)	(3,545)
Net change in other liabilities	16,604	705
Stock based compensation	305	503
Net principal disbursed on loans originated for sale	(151,061)	(165,861)
Proceeds from sale of loans held for sale	147,877	143,172
Cash used in payment of operating leases	(665)
Net change in right of use asset	(345)
Net change in deferred tax assets	(1,298)	3,547
Net change in cash surrender value of life insurance	(782)	(866)
Net cash from operating activities	19,190	(2,841)
Cash Flows from Investing Activities
Proceeds from the principal repayments and maturities of securities available for sale	5,310	5,488
Proceeds from the principal repayments and maturities of securities held to maturity	5,661	4,428
Proceeds from the sale of securities available for sale	58,294	10,361
Proceeds from the sale of real estate owned and other repossessed assets	722	674
Proceeds from the sale of loans held for investment	650
Proceeds from redemption of FHLB stock	5,085
Purchases of available for sale securities	(59,701)
Purchase of securities held to maturity	(2,000)	(3,000)
Purchases of premises and equipment	(1,657)	(893)
Principal disbursed on loans, net of repayments	(27,553)	(82,540)
Loans purchased	(26,509)	(18,246)
Net cash from investing activities	(41,698)	(83,728)
Cash Flows from Financing Activities
Net change in checking, savings and money market accounts	121,642	79,339
Net change in certificates of deposit	(75,616)	99,451
Net change in advance payments by borrowers for taxes and insurance	(1,857)	(5,785)
Net change in short-term FHLB advances	(10,000)	(60,000)
Net change in repurchase agreements and other borrowed funds	(78)	(6)
Proceeds from the exercise of stock options	122	232
Dividends paid	(6,849)	(5,984)
Purchase of treasury stock	(11,279)	(581)
Net cash from financing activities	16,085	106,666
Change in cash and cash equivalents	(6,423)	20,097
Cash and cash equivalents, beginning of period	60,985	46,880
Cash and cash equivalents, end of period	$ 54,562	$ 66,977

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BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2019

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 The Home Savings and Loan Company of Youngstown, Ohio (Home Savings and Loan) issued upon the conversion of Home Savings and Loan 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 and Loan.  Immediately following United Community’s acquisition of Ohio Legacy Corp. (OLCB) on January 31, 2017, Home Savings and Loan was merged into Premier Bank & Trust, OLCB’s wholly-owned, state-chartered bank subsidiary (PB&T), and the surviving bank changed its name to Home Savings Bank.  In connection with OLCB acquisition, United Community became a financial holding company, and Home Savings Bank, its wholly-owned bank subsidiary following the merger (Home Savings or the Bank), is now an Ohio bank.

Home Savings conducts its business from its main office located in Youngstown, Ohio and 33 retail banking offices (32 in Ohio and one in Pennsylvania). Home Savings also has residential mortgage loan centers servicing Ohio, West Virginia, western Pennsylvania, northern Kentucky, and eastern Indiana.  

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, which offers insurance products for business and residential customers, including auto, commercial, homeowners and life-health.  On July 1, 2018, James & Sons Insurance acquired Steinhauser Insurance Agency which offers property and casualty insurance.      

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 be repaid from the cash flow from the operations of the business.

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 six months ended June 30, 2019, are not necessarily indicative of the results to be expected for the year ending December 31, 2019. 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, 2018.

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

6 Months Ended

Jun. 30, 2019

Accounting Changes And Error Corrections [Abstract]

RECENT ACCOUNTING DEVELOPMENTS

2. RECENT ACCOUNTING DEVELOPMENTS

In February 2016, the FASB issued ASU 2016-02 - Leases (Topic 842). The ASU amends existing guidance that requires lessees recognize the following for all leases (with the exception of short–term leases) at the commencement date (1) A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.  Under the new guidance, lessor accounting is largely unchanged.  Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers.  An entity may adopt the new guidance by either restating prior periods and recording a cumulative effect adjustment at the beginning of the earliest comparative period presented or by recording a cumulative effect adjustment at the beginning of the period of adoption.  The Company used the approach of recording a cumulative effect adjustment at the beginning of the period of adoption, however, no cumulative effect adjustment was required to be recorded.  The new guidance includes a number of optional transition-related practical expedients.  The practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset.  An entity that elects to apply these practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP.  The Company elected to apply the practical expedients.  In 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, ASU 2018-11, Leases (Topic 842): Targeted Improvements and ASU 2018-20, Leases (Topic 842): Narrow – Scope Improvements for Lessors.  These ASUs amend and clarify guidance in ASU 2016-02 and were being considered by the Company in determining the proper adoption of ASU 2016-02.  The adoption of this guidance on January 1, 2019, resulted in an approximate $5.2 million increase in right of use asset, $0.3 million increase in other assets and an approximate $5.5 million increase in lease liability.

In June 2016, the FASB Issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13).   ASU 2016-13 adds a new Topic 326 to the Accounting Standards Codification (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 has aggregated and verified the necessary data and addressed any data-archiving improvements necessary for the implementation of this ASU. Management has evaluated various models and parallel calculations are being performed to refine the calculation. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses.  The amendment clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20 and should be accounted for in accordance with Topic 842, Leases.

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.  The adoption of this guidance did not 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.  Early adoption is permitted for all entities.  The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.  These amendments revise and expand hedge accounting for both financial (e.g., interest rate) and commodity risks.  Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes.  It also makes certain targeted improvements to simplify the application of hedge accounting guidance.  This ASU is effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years.  Early adoption, including adoption in an interim period, is permitted. If an entity early adopts in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period (i.e., the initial application date).  The adoption of this guidance did not have an impact on the Company’s consolidated financial statements.

In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (ASU 2018-07).  The FASB issued ASU 2018-07 intending to reduce cost and complexity and to improve financial reporting for nonemployee share-based payments.  ASU 2018-07 expands the scope of Topic 718, Compensation—Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. ASU 2018-07 supersedes Subtopic 505-50, Equity—Equity-Based Payments to Non-Employees.  The amendments in ASU 2018-07 are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year.  Early adoption is permitted.  The adoption of this guidance did not have an impact on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.  This ASU modifies the disclosure objective paragraphs of ASU 820 to eliminate (1) “at a minimum” from the phrase “an entity shall disclose at a minimum” and (2) other similar “open ended” disclosure requirements to promote the appropriate exercise of discretion of entities.  The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.  Early adoption is permitted, including adoption in an interim period.  The Company is currently assessing the impact of ASU 2018-13 on the Company’s consolidated financial statements.

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STOCK COMPENSATION

6 Months Ended

Jun. 30, 2019

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 (SARs), 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, 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 that 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 under the 2015 Plan in the three or six months ended June 30, 2019  and zero and 50,000 options granted in the three and six months ended June 30, 2018. Pursuant to the terms of the 2015 Plan, 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 $- and $6,000 in stock option expense for the three and six months ended June 30, 2019, respectively.  The Company recognized $19,000 and $32,000 in stock option expense for the three and six months ended June 30, 2018, respectively.  The Company expects to recognize no additional stock option expense for the remainder of 2019.

A summary of option activity for the six months ended June 30, 2019 in the 2015 Plan, the 2007 Plan and the 1999 Plan is as follows:

	For the six months ended
	June 30, 2019
				Weighted		Aggregate
				average		intrinsic value
	Shares			exercise price		(in thousands)
Outstanding at beginning of year		223,432		$	3.93
Granted		—			—
Exercised		(59,600	)		2.03
Forfeited and expired		—			—
Outstanding at end of period		163,832			4.63	$	815
Shares subject to options exercisable at end of period		163,832			4.63	$	815

Information related to stock options for the six months ended June 30, 2019 and 2018 follows:

	June 30, 2019		June 30, 2018
Intrinsic value of options exercised	$	438,540	$	450,486
Cash received from option exercises		122,000		232,000
Tax benefit realized from option exercises		15,565		67,298
Weighted average fair value of options granted, per share	$	—	$	1.54

Information related to stock options granted during the six months ended June 30, 2018 were as follows:

	Six Months Ended
	June 30, 2018
Risk-free interest rate		2.69	%
Expected term (years)		5
Expected stock volatility		19.86	%
Dividend yield		2.48	%

As of June 30, 2019, there were no nonvested stock options outstanding.

Outstanding stock options at June 30, 2019 have a weighted average remaining life of 4.04 years and may be exercised in the range of $1.20 to $9.66 per share.

Restricted Stock Awards:

The 2007 Plan permitted and the 2015 Plan permits the issuance of restricted stock awards to eligible employees and nonemployee directors. Nonvested shares at June 30, 2019 aggregated 123,378, of which 21,953 are expected to vest during the remainder of 2019, 35,233 in 2020, 58,834 in 2021 and 7,358 in 2022. 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 $156,000 and $299,000 in restricted stock award expense for the three and six months ended June 30, 2019. The Company recognized approximately $229,000 and $471,000 in restricted stock award expense for the three and six months ended June 30, 2018.  The Company expects to recognize additional expenses related to restricted stock awards of approximately $261,000 in 2019, $321,000 in 2020, $153,000 in 2021 and $43,000 in 2022.  The total average per share fair value of shares vested during the three and six months ended June 30, 2019 was $9.36 and $9.62.

A summary of changes in the Company’s nonvested restricted shares for the six months ended June 30, 2019 is as follows:

	For the six months ended
	June 30, 2019
				Weighted
				average
				grant date
	Shares			fair value
Nonvested at beginning of year		210,713		$	8.15
Granted		30,458		$	9.42
Vested		(116,959	)	$	6.92
Forfeited		(834	)	$	9.10
Nonvested shares at end of period		123,378		$	9.63

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 $44,000 and $70,000 in expense for the restricted stock portion of the AIP for the three and six months ended June 30, 2019 and $217,000 and $917,000 for the cash portion of the AIP for the three and six months ended June 30, 2019.  The Company incurred $95,000 and $190,000 in expense for the restricted stock portion of the AIP for the three and six months ended June 30, 2018 and $426,000 and $871,000 for the cash portion of the AIP for the six months ended June 30, 2018, 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 $184,000and $366,000 for the LTIP for the three and six months ended June 30, 2019.  The Company incurred $212,000 and $381,000 in expense for the LTIP for the three and six months ended June 30, 2018.

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REVENUE RECOGNITION

6 Months Ended

Jun. 30, 2019

Revenue From Contract With Customer [Abstract]

REVENUE RECOGNITION

4. REVENUE RECOGNITION

The Company recognizes 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 this result, the following five steps are applied:

Step 1: Identify the contract(s) with the customer

Step 2: Identify the performance obligation(s) in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

The revenue guidance applies to all contracts with customers to provide goods or services in the ordinary course of business, except for loans and securities, which are specifically excluded from the scope.

Because loans and securities are outside the scope of the revenue standard, the Company does not use the new standard to account for gains and losses on its investments in securities, loans and derivatives.  The Company also does not use the standard to account for interest and dividend income on financial instruments owned or those included in the Company’s lending activities.  

Home Savings’ servicing of loans sold to investors requires Home Savings to provide specific administrative functions for the owner(s) of these assets.  These administrative functions include collecting cash flows from borrowers and remitting them to beneficial interest holders, monitoring delinquencies and executing foreclosures.  Servicing rights that relate to transferred financial assets meet the conditions for sale accounting under ASC 860.  ASC 860 requires the recognition of a servicing asset or liability when the benefits of servicing obtained from the contract are respectively greater than or less than adequate compensation (as defined in ASC 860) for performing the servicing.  While ASC 860 provides initial recognition and subsequent measurement guidance for recognized servicing assets and liabilities, it does not include any explicit guidance for recognizing contractually specified servicing fees when servicing income is equal to adequate compensation.   Therefore, income from servicing financial assets in the scope of ASC 860 is not in the scope of ASC 606, regardless of whether a servicing asset or liability exists. ASC 606 contains an exception to its scope for contracts that fall under ASC 860.

Deposit-related fees and charges are in the scope of ASC 606, even though ASC 405 is listed as an exception to the scope of the standard. That is because ASC 405, which the Company applies to determine the appropriate liability accounting for customer deposits, does not provide a model for recognizing fees related to customer deposits (e.g., automated teller machine fees, nonsufficient funds fees, account maintenance or dormancy fees).  When reviewing standard customer agreements, fees are charged as the service is rendered and therefore revenue is recognized at the time the transaction is executed as it is the point when the performance obligation has been met.

The Company records real estate owned and other repossessed assets (OREO) at fair value less costs to sell upon foreclosure. The objective is to sell OREO within a short period of time because of regulatory and capital requirements. After foreclosure, these assets are carried at the lower of their carrying amount or their fair value less selling costs, so significant gains and losses are uncommon upon sale. OREO is often sold in a transaction that, under the standard, may not be considered a contract with a customer because the sale of the asset is not an output of the entity’s ordinary activities. However, sales of  nonfinancial assets, including in substance nonfinancial assets, should be accounted for using new guidance in ASC 610-20, Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets, which requires entities to apply certain measurement and recognition concepts of ASC 606. Accordingly, the Company recognizes the sale of a real estate property, along with any associated gain or loss, when control of the property transfers to the buyer. For sales of existing real estate properties, this generally will occur at a point in time.

Insurance agency income is within the scope of ASC 606.  The majority (75%) of the Company’s insurance agency income is derived from direct-bill customers.  With this arrangement, the customer is billed directly from the insurance carrier.  As a result, the insurance carrier pays a commission to the Company upon completion of the required documentation (policy application or renewal) and recognizes income at that time.  Agency-billed customers account for approximately 25% of the overall insurance agency income.  Premiums are collected from customers and remitted to the insurance carrier, net of commission, within a short period of time.  At the time the premiums are remitted to the insurance carrier, all work is completed and revenue recognized at that time.

Debit card fee income is earned as a result of standard interchange fees contractually obligated by VISA to be paid.  Fees are received when they are essentially earned, which include fees charged to a reseller for the presentment of credit/debit cards in a point-of-sale (POS) transaction (interchange).  The service is considered complete upon payment in a POS transaction, when the interchange fee is earned and paid.  Credit card fees are paid when earned as a result of an agreement between the Company and a third-party provider.

Trust fee income is calculated based on assets under management.  Fees are recognized at the end of the month to which the service has been provided for customers billed monthly.  This amounts to approximately 85% of trust fee income recognized, which is collected within a short period of time after the fee is assessed to the customer.  Quarterly and annual fees are accrued and collected based on the contractual agreements with customers.  Fees are assessed to these customers and paid at the end of each quarter.  Quarterly and annual fees are to be recognized over the period when the fees are earned, regardless of when they are assessed to the customer.

Brokerage revenue is recognized each month as sales occur.  Brokerage revenue is paid from sales to customers by a third-party.  In a manner similar to that of insurance agency revenue, income is paid directly to the Bank by the third-party once the sale to the customer is complete.  

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SECURITIES

6 Months Ended

Jun. 30, 2019

Investments Debt And Equity Securities [Abstract]

SECURITIES

5. SECURITIES

Components of the available for sale portfolio are as follows:

	June 30, 2019
			Gross		Gross
	Amortized		unrealized		unrealized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Available for Sale
U.S. Treasury and agency securities	$	64,337	$	1,453				$	65,790
States and municipalities		35,085		940					36,025
Corporate debt securities		13,204		159		(3	)		13,360
Collateralized mortgage obligations (CMO)		54,773		1,356		(22	)		56,107
Mortgage-backed securities (MBS)		149,168		265		(1,706	)		147,727
Total	$	316,567	$	4,173	$	(1,731	)	$	319,009

	December 31, 2018
			Gross		Gross
	Amortized		unrealized		unrealized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Available for Sale
U.S. Treasury and agency securities	$	97,785	$	—	$	(2,204	)	$	95,581
States and municipalities		48,167		107		(528	)		47,746
Corporate debt securities		2,000		4		—			2,004
Collateralized mortgage obligations (CMO)		21,979		143		(14	)		22,108
Mortgage-backed securities (MBS)		76,495		23		(2,314	)		74,204
Total	$	246,426	$	277	$	(5,060	)	$	241,643

During the second quarter of 2019, the Company elected to transfer it’s held to maturity securities portfolio to the available for sale portfolio.  At the time of transfer, the securities had an amortized cost of $74.6 million and a fair value of $72.5 million.  Due to the continued decline in interest rates, the Company elected to move the securities into available for sale to provide more opportunities to reposition the portfolio.  

Components of the held to maturity securities portfolio at December 31, 2018 are as follows:

	December 31, 2018
			Gross		Gross
	Amortized		unrecognized		unrecognized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Held to maturity
Mortgage-backed securities (MBS)	$	64,442	$	—	$	(2,327	)	$	62,115
States and municipalities		13,049		20		(109	)		12,960
Total	$	77,491	$	20	$	(2,436	)	$	75,075

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

	June 30, 2019
	Amortized cost		Fair value
	(Dollars in thousands)
Due in one year or less	$	2,000	$	2,021
Due after one year through five years		19,010		19,349
Due after five years through ten years		60,026		61,309
Due after ten years		31,590		32,496
MBS and CMO		203,941		203,834
Total	$	316,567	$	319,009

Securities pledged for public funds were approximately $160.1 million at June 30, 2019 and approximately $108.7 million at December 31, 2018.  

Securities available for sale that have been in an unrealized loss position for less than twelve months or twelve months or more at June 30, 2019 are as follows:

	June 30, 2019
	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 agency securities	$	—	$	—		$	—	$	—		$	—	$	—
States and municipalities		—		—			—		—			—		—
Corporate debt securities		503		(3	)		—		—			503		(3	)
Collateralized mortgage obligations (CMO)		7,803		(22	)		—		—			7,803		(22	)
Mortgage-backed securities (MBS)		—		—			108,254		(1,706	)		108,254		(1,706	)
Total temporarily impaired securities	$	8,306	$	(25	)	$	108,254	$	(1,706	)	$	116,560	$	(1,731	)

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, 2018 are as follows:

	December 31, 2018
	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 agency securities	$	—	$	—		$	95,581	$	(2,204	)	$	95,581	$	(2,204	)
States and municipalities		9,475		(39	)		24,850		(489	)		34,325		(528	)
Collateralized mortgage obligations (CMO)		5,475		(14	)		—		—			5,475		(14	)
Mortgage-backed securities (MBS)		—		—			73,542		(2,314	)		73,542		(2,314	)
Total temporarily impaired securities	$	14,950	$	(53	)	$	193,973	$	(5,007	)	$	208,923	$	(5,060	)

June 30, 2019six months ended June 30, 2019

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: 

	December 31, 2018
	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 securities (MBS)	$	—	$	—		$	62,115	$	(3,203	)	$	62,115	$	(3,203	)
States and municipalities		4,253		(48	)		3,525		(69	)		7,778		(117	)
Total temporarily impaired securities	$	4,253	$	(48	)	$	65,640	$	(3,272	)	$	69,893	$	(3,320	)

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 for the period ending December 31, 2018, 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.  These securities were transferred to available for sale from held to maturity in the second quarter of 2019.

All of the securities in available for sale that were temporarily impaired at June 30, 2019 were impaired due to the level of interest rates at the time of purchase compared to current interest rates. All of the securities in available for sale and held to maturity that were temporarily impaired at December 31, 2018 were also impaired due to the level of interest rates at the time of purchase compared to interest rates at that time.  Unrealized losses on these securities have not been recognized into income for the three and six months ended June 30, 2019 or 2018 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.  

Proceeds from the sale of available for sale securities were $42.6 million and $5.7 million for the three months ended June 30, 2019 and 2018, respectively.  Gross gains of $180,000 and $94,000 were realized on these sales during the three months ended June 30, 2019 and 2018, respectively.  Gross losses of $32,000 and $0 were realized during the three months ended June 30, 2019 and 2018, respectively.

Proceeds from the sale of available for sale securities were $58.3 million and $10.4 million, for the six months ended June 30, 2019 and 2018, respectively.  Gross gains of $324,000 and $233,000 were realized on these sales during the six months ended June 30, 2019 and 2018, respectively. Gross losses of $32,000 and $0 were realized during the six months ended June 30, 2019 and 2018, respectively.  

XML

LOANS

6 Months Ended

Jun. 30, 2019

Receivables [Abstract]

LOANS

6. LOANS

Portfolio loans consist of the following:

	June 30,			December 31,
	2019			2018
	(Dollars in thousands)
Commercial loans
Multifamily	$	154,630		$	134,143
Nonresidential		414,780			409,979
Land		16,955			16,830
Construction		138,043			141,686
Secured		243,044			233,306
Unsecured		6,854			6,987
Total commercial loans		974,306			942,931
Residential mortgage loans
One-to four-family		942,698			927,255
Construction		46,196			43,435
Total residential mortgage loans		988,894			970,690
Consumer loans
Home equity		184,676			185,661
Auto		82,715			78,686
Marine		1,097			1,206
Recreational vehicle		3,433			4,347
Other		7,610			7,141
Total consumer loans		279,531			277,041
Total loans		2,242,731			2,190,662
Less:
Allowance for loan losses		20,482			20,443
Deferred loan costs, net		(7,077	)		(6,623	)
Total		13,405			13,820
Loans, net	$	2,229,326		$	2,176,842

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 June 30, 2019 and December 31, 2018 and activity for the three and six months ended June 30, 2019 and 2018.

Allowance For Loan Losses

	Commercial Loans			Residential Loans			Consumer Loans			Total
	(Dollars in thousands)
For the three months ended June 30, 2019
Beginning balance	$	12,114		$	5,823		$	2,509		$	20,446
Provision (recovery)		263			(312	)		(2	)		(51	)
Charge-offs		—			(79	)		(115	)		(194	)
Recoveries		170			26			85			281
Ending balance	$	12,547		$	5,458		$	2,477		$	20,482
For the six months ended June 30, 2019
Beginning balance	$	11,875		$	5,923		$	2,645		$	20,443
Provision		444			(490	)		56			10
Charge-offs		(88	)		(99	)		(440	)		(627	)
Recoveries		316			124			216			656
Ending balance	$	12,547		$	5,458		$	2,477		$	20,482
As of June 30, 2019
Period-end amount allocated to:
Loans individually evaluated for impairment	$	857		$	669		$	290			1,816
Loans collectively evaluated for impairment		11,690			4,789			2,187			18,666
Ending balance	$	12,547		$	5,458		$	2,477		$	20,482
Period-end balances:
Loans individually evaluated for impairment		7,680			12,402			5,057			25,139
Loans collectively evaluated for impairment		966,626			976,492			274,474			2,217,592
Ending balance	$	974,306		$	988,894		$	279,531		$	2,242,731

Allowance For Loan Losses

	Commercial Loans			Residential Loans			Consumer Loans			Total
For the three months ended June 30, 2018
Beginning balance	$	13,095		$	5,701		$	2,814		$	21,610
Provision (recovery)		(263	)		180			(55	)		(138	)
Charge-offs		(75	)		(96	)		(83	)		(254	)
Recoveries		51			82			54			187
Ending balance	$	12,808		$	5,867		$	2,730		$	21,405
For the six months ended June 30, 2018
Beginning balance	$	12,542		$	5,860		$	2,800		$	21,202
Provision		133			87			49			269
Charge-offs		(75	)		(181	)		(269	)		(525	)
Recoveries		208			101			150			459
Ending balance	$	12,808		$	5,867		$	2,730		$	21,405
As of December 31, 2018
Period-end amount allocated to:
Loans individually evaluated for impairment	$	103		$	798		$	300			1,201
Loans collectively evaluated for impairment		11,772			5,125			2,345			19,242
Ending balance	$	11,875		$	5,923		$	2,645		$	20,443
Period-end balances:
Loans individually evaluated for impairment		2,017			13,086			5,491			20,594
Loans collectively evaluated for impairment		940,914			957,604			271,550			2,170,068
Ending balance	$	942,931		$	970,690		$	277,041		$	2,190,662

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 June 30, 2019, the Company evaluated 28 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 six months ended June 30, 2019:

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	$	155	$	—	$	—	$	57	$	1	$	1
Nonresidential		2,942		2,801		—		1,019		17		17
Land		—		—		—		—		—		—
Construction		2,446		—		—		—		—		—
Secured		235		—		—		—		—		—
Unsecured		474		—		—		—		—		—
Total commercial loans		6,252		2,801		—		1,076		18		18
Residential mortgage loans
One-to four-family		5,579		4,792		—		4,672		64		55
Construction		—		—		—		—		—		—
Total residential mortgage loans		5,579		4,792		—		4,672		64		55
Consumer loans
Home equity		1,041		926		—		912		7		6
Auto		33		25		—		19		—		—
Marine		354		105		—		118		—		—
Recreational vehicle		386		49		—		95		4		4
Other		—		—		—		—		—		—
Total consumer loans		1,814		1,105		—		1,144		11		10
Total	$	13,645	$	8,698	$	—	$	6,892	$	93	$	83
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—	$	—	$	—	$	—
Nonresidential		—		—		—		1,301		45		37
Land		—		—		—		—		—		—
Construction		—		—		—		—		—		—
Secured		5,654		4,879		857		1,947		137		137
Unsecured		—		—		—		—		—		—
Total commercial loans		5,654		4,879		857		3,248		182		174
Residential mortgage loans
One-to four-family		7,741		7,610		669		8,077		239		202
Construction		—		—		—		—		—		—
Total residential mortgage loans		7,741		7,610		669		8,077		239		202
Consumer loans
Home equity		3,620		3,535		274		3,680		110		97
Auto		—		—		—		—		—		—
Marine		86		86		1		89		2		2
Recreational vehicle		343		331		15		314		11		10
Other		—		—		—		—		—		—
Total consumer loans		4,049		3,952		290		4,083		123		109
Total		17,444		16,441		1,816		15,408		544		485
Total impaired loans	$	31,089	$	25,139	$	1,816	$	22,300	$	637	$	568

The following table presents loans individually evaluated for impairment by class of loans as of and for six months ended June 30, 2018:

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	$	28	$	—	$	—	$	—	$	—	$	—
Nonresidential		630		137		—		100		4		4
Land		706		—		—		6		—		—
Construction		2,457		—		—		—		—		—
Secured		1,115		907		—		901		—		—
Unsecured		184		—		—		—		—		—
Total commercial loans		5,120		1,044		—		1,007		4		4
Residential mortgage loans
One-to four-family		6,918		5,994		—		5,602		74		58
Construction		—		—		—		—		—		—
Total residential mortgage loans		6,918		5,994		—		5,602		74		58
Consumer loans
Home equity		1,496		1,224		—		1,087		11		10
Auto		29		22		—		33		—		—
Marine		553		181		—		181		—		—
Recreational vehicle		520		100		—		122		4		4
Other		1		—		—		6		—		—
Total consumer loans		2,599		1,527		—		1,429		15		14
Total	$	14,637	$	8,565	$	—	$	8,038	$	93	$	76
With a specific allowance recorded
Commercial loans
Multifamily	$	422	$	275	$	28	$	275	$	—	$	—
Nonresidential		1,235		1,232		13		1,356		52		44
Land		—		—		—		—		—		—
Construction		—		—		—		—		—		—
Secured		819		568		473		579		—		—
Unsecured		—		—		—		—		—		—
Total commercial loans		2,476		2,075		514		2,210		52		44
Residential mortgage loans
One-to four-family		8,574		8,461		834		9,793		233		195
Construction		—		—		—		—		—		—
Total residential mortgage loans		8,574		8,461		834		9,793		233		195
Consumer loans
Home equity		4,282		4,201		295		4,505		123		110
Auto		—		—		—		—		—		—
Marine		95		95		1		97		2		2
Recreational vehicle		393		381		17		393		11		10
Other		—		—		—		—		—		—
Total consumer loans		4,770		4,677		313		4,995		136		122
Total		15,820		15,213		1,661		16,998		421		361
Total impaired loans	$	30,457	$	23,778	$	1,661	$	25,036	$	514	$	437

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2018:

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With no specific allowance recorded
Commercial loans
Multifamily	$	443	$	170	$	—
Nonresidential		588		130		—
Land		—		—		—
Construction		2,447		—		—
Secured		806		—		—
Unsecured		474		—		—
Total commercial loans		4,758		300		—
Residential mortgage loans
One-to four-family		5,840		4,908		—
Construction		—		—		—
Total residential mortgage loans		5,840		4,908		—
Consumer loans
Home equity		1,084		957		—
Auto		25		17		—
Marine		502		145		—
Recreational vehicle		592		172		—
Other		—		—		—
Total consumer loans		2,203		1,291		—
Total	$	12,801	$	6,499	$	—
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		1,186		1,186		12
Land		—		—		—
Construction		—		—		—
Secured		989		531		91
Unsecured		—		—		—
Total commercial loans		2,175		1,717		103
Residential mortgage loans
One-to four-family		8,298		8,178		798
Construction		—		—		—
Total residential mortgage loans		8,298		8,178		798
Consumer loans
Home equity		3,925		3,842		283
Auto		—		—		—
Marine		91		91		1
Recreational vehicle		279		267		16
Other		—		—		—
Total consumer loans		4,295		4,200		300
Total		14,768		14,095		1,201
Total impaired loans	$	27,569	$	20,594	$	1,201

The following table presents loans individually evaluated for impairment by class of loans for the three months ended June 30, 2019:

	Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	—			$	—
Nonresidential		1,464		16		16
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		1,464		16		16
Residential mortgage loans
One-to four-family		4,554		35		35
Construction		—		—		—
Total residential mortgage loans		4,554		35		35
Consumer loans
Home equity		889		6		6
Auto		20		—		—
Marine		105		—		—
Recreational vehicle		56		2		2
Other		—		—		—
Total consumer loans		1,070		8		8
Total	$	7,088	$	59	$	59
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		1,359		—		—
Land		—		—		—
Construction		—		—		—
Secured		2,656		134		134
Unsecured		—		—		—
Total commercial loans		4,015		134		134
Residential mortgage loans
One-to four-family		8,027		92		91
Construction		—		—		—
Total residential mortgage loans		8,027		92		91
Consumer loans
Home equity		3,600		49		48
Auto		—		—		—
Marine		88		1		1
Recreational vehicle		338		5		5
Other		—		—		—
Total consumer loans		4,026		55		54
Total		16,068		281		279
Total impaired loans	$	23,156	$	340	$	338

The following table presents loans individually evaluated for impairment by class of loans for the three months ended June 30, 2018:

	Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		78		1		1
Land		5		—		—
Construction		—		—		—
Secured		905		—		—
Unsecured		—		—		—
Total commercial loans		988		1		1
Residential mortgage loans
One-to four-family		5,683		30		30
Construction		—		—		—
Total residential mortgage loans		5,683		30		30
Consumer loans
Home equity		1,101		6		6
Auto		42		—		—
Marine		181		—		—
Recreational vehicle		108		2		2
Other		8		—		—
Total consumer loans		1,440		8		8
Total	$	8,111	$	39	$	39
With a specific allowance recorded
Commercial loans
Multifamily	$	275	$	—	$	—
Nonresidential		1,323		22		22
Land		—		—		—
Construction		—		—		—
Secured		563		—		—
Unsecured		—		—		—
Total commercial loans		2,161		22		22
Residential mortgage loans
One-to four-family		9,340		98		96
Construction		—		—		—
Total residential mortgage loans		9,340		98		96
Consumer loans
Home equity		4,338		57		56
Auto		—		—		—
Marine		96		1		1
Recreational vehicle		387		5		5
Other		—		—		—
Total consumer loans		4,821		63		62
Total		16,322		183		180
Total impaired loans	$	24,433	$	222	$	219

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 June 30, 2019 and December 31, 2018, but legal title, deed in lieu of foreclosure or similar legal agreement to the property has not yet been obtained:

	June 30, 2019				December 31, 2018
	Unpaid Principal Balance		Recorded Investment		Unpaid Principal Balance		Recorded Investment
	(Dollars in thousands)				(Dollars in thousands)
Mortgage loans in process of foreclosure	$	3,847	$	3,686	$	3,687	$	3,636
Consumer loans in process of foreclosure		358		350		700		685

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 June 30, 2019:

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

As of June 30, 2019

	Nonaccrual		Loans past due over 90 days and still accruing
	(Dollars in thousands)
Commercial loans
Multifamily	$	—	$	—
Nonresidential		2,688		—
Land		—		—
Construction		—		—
Secured		4,678		—
Unsecured		—		—
Total commercial loans		7,366		—
Residential mortgage loans
One-to four-family		4,365		—
Construction		—		—
Total residential mortgage loans		4,365		—
Consumer Loans
Home equity		936		—
Auto		57		—
Marine		105		—
Recreational vehicle		34		—
Other		9		—
Total consumer loans		1,141		—
Total nonaccrual loans and loans past due over 90 days and still accruing	$	12,872	$	—

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, 2018:

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

As of December 31, 2018

	Nonaccrual		Loans past due over 90 days and still accruing
	(Dollars in thousands)
Commercial loans
Multifamily	$	171	$	—
Nonresidential		13		—
Land		—		—
Construction		—		—
Secured		531		—
Unsecured		—		—
Total commercial loans		715		—
Residential mortgage loans
One-to four-family		4,170		—
Construction		—		—
Total residential mortgage loans		4,170		—
Consumer Loans
Home equity		1,223		—
Auto		131		—
Marine		145		—
Recreational vehicle		145		—
Other		10		—
Total consumer loans		1,654		—
Total nonaccrual loans and loans past due over 90 days and still accruing	$	6,539	$	—

The following table presents an age analysis of past-due loans, segregated by class of loans as of June 30, 2019:

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	$	—	$	—	$	—	$	—	$	154,630	$	154,630
Nonresidential		104		1,681		—		1,785		412,995		414,780
Land		—		—		—		—		16,955		16,955
Construction		—		—		—		—		138,043		138,043
Secured		24		44		427		495		242,549		243,044
Unsecured		—		—		—		—		6,854		6,854
Total commercial loans		128		1,725		427		2,280		972,026		974,306
Residential mortgage loans
One-to four-family		3,059		765		3,867		7,691		935,007		942,698
Construction		—		—		—		—		46,196		46,196
Total residential mortgage loans		3,059		765		3,867		7,691		981,203		988,894
Consumer Loans:
Home equity		1,166		319		893		2,378		182,298		184,676
Automobile		254		49		57		360		82,355		82,715
Marine		—		—		105		105		992		1,097
Recreational vehicle		59		73		34		166		3,267		3,433
Other		31		11		9		51		7,559		7,610
Total consumer loans		1,510		452		1,098		3,060		276,471		279,531
Total loans	$	4,697	$	2,942	$	5,392	$	13,031	$	2,229,700	$	2,242,731

The following table presents an age analysis of past-due loans, segregated by class of loans as of December 31, 2018:

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	$	—	$	—	$	171	$	171	$	133,972	$	134,143
Nonresidential		—		—		—		—		409,979		409,979
Land		—		—		—		—		16,830		16,830
Construction		—		—		—		—		141,686		141,686
Secured		195		—		531		726		232,580		233,306
Unsecured		—		—		—		—		6,987		6,987
Total commercial loans		195		—		702		897		942,034		942,931
Residential mortgage loans
One-to four-family		2,139		882		3,470		6,491		920,764		927,255
Construction		—		—		—		—		43,435		43,435
Total residential    mortgage loans		2,139		882		3,470		6,491		964,199		970,690
Consumer Loans:
Home equity		658		295		1,147		2,100		183,561		185,661
Automobile		283		112		131		526		78,160		78,686
Marine		—		—		145		145		1,061		1,206
Recreational vehicle		548		—		145		693		3,654		4,347
Other		33		—		10		43		7,098		7,141
Total consumer loans		1,522		407		1,578		3,507		273,534		277,041
Total loans	$	3,856	$	1,289	$	5,750	$	10,895	$	2,179,767	$	2,190,662

As of June 30, 2019 and December 31, 2018, the Company has a recorded investment in troubled debt restructurings of $15.3 million and $16.6 million, respectively.  The Company allocated $989,000 of specific allowance for those loans at June 30, 2019 and $1.1 million at December 31, 2018.  The Company has committed to lend, to existing troubled debt restructuring relationships, additional amounts totaling up to $45,000 and $41,000 at June 30, 2019 and December 31, 2018, respectively.  

The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ended June 30, 2019:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(In thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		—		—		—
Land		—		—		—
Construction		—		—		—
Secured		1		824		824
Unsecured		—		—		—
Total commercial loans		1		824		824
Residential mortgage loans
One-to four-family		—		—		—
Construction		—		—		—
Total residential mortgage loans		—		—		—
Consumer loans
Home equity		1		40		44
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		1		40		44
Total restructured loans		2	$	864	$	868

The troubled debt restructurings described above increased the allowance for loan losses by $1,000 and resulted in no charge-offs during the three months ended June 30, 2019.

The following table presents loans by class modified as troubled debt restructurings that occurred during the six months ended June 30, 2019:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(In thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		—		—		—
Land		—		—		—
Construction		—		—		—
Secured		1		824		824
Unsecured		—		—		—
Total commercial loans		1		824		824
Residential mortgage loans
One-to four-family		1		335		355
Construction		—		—		—
Total residential mortgage loans		1		335		355
Consumer loans
Home equity		1		40		44
Auto		—		—		—
Marine		—		—		—
Recreational vehicle
Other		—		—		—
Total consumer loans		1		40		44
Total restructured loans		3	$	1,199	$	1,223

The troubled debt restructurings described above increased the allowance for loan losses by $1,000 and resulted in no charge-offs during the six months ended June 30, 2019.

The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ended June 30, 2018:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		—		—		—
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		—		—		—
Residential mortgage loans
One-to four-family		3		521		547
Construction		—		—		—
Total residential mortgage loans		3		521		547
Consumer loans
Home equity		2		113		113
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		2		113		113
Total restructured loans		5	$	634	$	660

The troubled debt restructurings described above increased the allowance for loans losses by $3,000 and resulted in no charge-offs during the three months ended June 30, 2018.

The following table presents loans by class modified as troubled debt restructurings that occurred during the six months ended June 30, 2018:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		1		124		124
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		1		124		124
Residential mortgage loans
One-to four-family		3		521		547
Construction		—		—		—
Total residential mortgage loans		3		521		547
Consumer loans
Home equity		2		113		113
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		2		113		113
Total restructured loans		6	$	758	$	784

The troubled debt restructurings described above increased the allowance for loans losses by $3,000 and resulted in no charge-offs during the six months ended June 30, 2018.

There were no loans modified as troubled debt restructurings for which there was a payment default within a twelve-month cycle following the modification during the period ended June 30, 2019.

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 June 30, 2018:

	Number of loans		Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—
Nonresidential		1		121
Land		—		—
Construction		—		—
Secured		—		—
Unsecured		—		—
Total commercial loans		1		121
Residential mortgage loans
One-to four-family		2		357
Construction		—		—
Total residential mortgage loans		2		357
Consumer loans
Home equity		—		—
Auto		—		—
Marine		—		—
Recreational vehicle		—		—
Other		—		—
Total consumer loans		—		—
Total restructured loans		3	$	478

The troubled debt restructurings that subsequently defaulted described above resulted in no charge-offs during the three and six months ended June 30, 2018, 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 June 30, 2019 and December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

June 30, 2019

(Dollars in thousands)

	Unclassified				Classified
	Unclassified		Special Mention		Substandard		Doubtful		Loss		Total Classified		Total Loans
Commercial Loans
Multifamily	$	142,730	$	10,824	$	1,076	$	—	$	—	$	1,076	$	154,630
Nonresidential		389,262		15,346		10,172		—		—		10,172		414,780
Land		16,955		—		—		—		—		—		16,955
Construction		135,658		2,385		—		—		—		—		138,043
Secured		220,556		3,065		19,423		—		—		19,423		243,044
Unsecured		6,771		—		83		—		—		83		6,854
Total commercial loans		911,932		31,620		30,754		—		—		30,754		974,306
Residential mortgage loans
One-to four-family		937,532		96		5,070		—		—		5,070		942,698
Construction		46,196		—		—		—		—		—		46,196
Total residential mortgage loans		983,728		96		5,070		—		—		5,070		988,894
Consumer Loans
Home equity		183,700		—		976		—		—		976		184,676
Auto		82,658		—		57		—		—		57		82,715
Marine		992		—		105		—		—		105		1,097
Recreational vehicle		3,399		—		34		—		—		34		3,433
Other		7,597		—		13		—		—		13		7,610
Total consumer loans		278,346		—		1,185		—		—		1,185		279,531
Total loans	$	2,174,006	$	31,716	$	37,009	$	—	$	—	$	37,009	$	2,242,731

December 31, 2018

(Dollars in thousands)

	Unclassified				Classified
	Unclassified		Special Mention		Substandard		Doubtful		Loss		Total Classified		Total Loans
Commercial Loans
Multifamily	$	133,972	$	—	$	171	$	—	$	—	$	171	$	134,143
Nonresidential		378,160		18,420		13,399		—		—		13,399		409,979
Land		16,830		—		—		—		—		—		16,830
Construction		139,540		2,146		—		—		—		—		141,686
Secured		214,924		2,184		16,198		—		—		16,198		233,306
Unsecured		6,894		—		93		—		—		93		6,987
Total commercial loans		890,320		22,750		29,861		—		—		29,861		942,931
Residential mortgage loans
One-to four-family		921,694		591		4,970		—		—		4,970		927,255
Construction		43,435		—		—		—		—		—		43,435
Total residential mortgage loans		965,129		591		4,970		—		—		4,970		970,690
Consumer Loans
Home equity		184,438		—		1,223		—		—		1,223		185,661
Auto		78,551		—		135		—		—		135		78,686
Marine		1,061		—		145		—		—		145		1,206
Recreational vehicle		4,221		—		126		—		—		126		4,347
Other		7,131		—		10		—		—		10		7,141
Total consumer loans		275,402		—		1,639		—		—		1,639		277,041
Total loans	$	2,130,851	$	23,341	$	36,470	$	—	$	—	$	36,470	$	2,190,662

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.  As of June 30, 2019 and December 31, 2018 there were no outstanding purchase credit impaired loans.  

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

	Three Months Ended		Three Months Ended		For the six months ended		For the six months ended
	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
	(Dollars in thousands)				(Dollars in thousands)
Beginning of period	$	—	$	110	$	—	$	110
Accretion of income		—		6		—		6
Balance at end of period	$	—	$	104	$	—	$	104

For the purchased credit impaired loans disclosed above, there was no change in the allowance for loan losses for the three and six months ended June 30, 2019 and 2018.  

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:

	June 30, 2019		June 30, 2018
	(Dollars in thousands)
Loans at beginning of period	$	—	$	1,194
Loans purchased during the period		—		—
Loans at end of period		—		1,091

XML

MORTGAGE BANKING ACTIVITIES

6 Months Ended

Jun. 30, 2019

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 $1.4 billion as of June 30, 2019 and $1.4 billion as of December 31, 2018. 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:

	June 30, 2019		December 31, 2018
	(Dollars in thousands)
Mortgage loan portfolios serviced for:
FHLMC	$	1,018,365	$	1,016,097
FNMA		395,438		347,294
Private investor		11,641		15,049

Customer escrow balances with loans serviced for FHLMC, FNMA and the private investor totaled $15.1 million and $16.3 million at June 30, 2019 and December 31, 2018, respectively.

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

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2019			2018			2019			2018
	(Dollars in thousands)
Balance, beginning of period	$	8,041		$	6,843		$	7,704		$	6,681
Originations		703			641			1,486			1,303
Amortized to expense		(553	)		(542	)		(999	)		(1,042	)
Balance, end of period		8,191			6,942			8,191			6,942
Less valuation allowance		(1,565	)		(20	)		(1,565	)		(20	)
Net balance	$	6,626		$	6,922		$	6,626		$	6,922

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

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2019			2018			2019			2018
	(Dollars in thousands)
Balance, beginning of period	$	(569	)	$	—		$	(70	)	$	(9	)
Impairment charges		(996	)		(20	)		(1,495	)		(20	)
Recoveries		—			—			—			9
Balance, end of period	$	(1,565	)	$	(20	)	$	(1,565	)	$	(20	)

The fair value of mortgage servicing rights as of June 30, 2019, was approximately $10.5 million and at December 31, 2018, the fair value was approximately $12.2 million.

Key economic assumptions in measuring the value of mortgage servicing rights at June 30, 2019, and December 31, 2018, were as follows:

	June 30, 2019	December 31, 2018
Weighted average prepayment rate	266 PSA	145 PSA
Weighted average life (in years)	5.27	7.26
Weighted average discount rate	11.00%	11.00%

XML

OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS

6 Months Ended

Jun. 30, 2019

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 June 30, 2019 and December 31, 2018 were as follows:

	June 30, 2019			December 31, 2018
	(Dollars in thousands)
Real estate owned and other repossessed assets	$	1,113		$	1,396
Valuation allowance		(158	)		(308	)
End of period	$	955		$	1,088

Activity in the valuation allowance was as follows:

	Three Months Ended						For the six months ended
	June 30, 2019			June 30, 2018			June 30, 2019			June 30, 2018
	(Dollars in thousands)
Beginning of period	$	318		$	287		$	308		$	403
Additions charged to expense		17			10			36			33
Sales of real estate owned with a valuation allowance		(177	)		(49	)		(186	)		(188	)
End of period	$	158		$	248		$	158		$	248

Expenses related to foreclosed and repossessed assets include:

	Three Months Ended				For the six months ended
	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
	(Dollars in thousands)
Net loss on sales	$	16	$	103	$	28	$	158
Provision for unrealized losses		17		10		36		33
Operating expenses, net of rental income		17		34		56		70
Total expenses	$	50	$	147	$	120	$	261

XML

FAIR VALUE MEASUREMENT

6 Months Ended

Jun. 30, 2019

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:

Trading securities:  The fair values of trading securities are determined by obtaining quoted prices from a counterparty who makes a market in the securities (Level 1 inputs).  For securities where quoted prices are not available, fair value is calculated based on the market price of similar securities discounted for the price that certain bidders are willing to pay for the securities (Level 2).

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, 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).  

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).

Interest rate swaps:  Home Savings periodically enters into interest rate swap agreements with its commercial customers who desire a fixed rate loan term that is longer than Home Savings is willing to extend.  Home Savings then enters into a reciprocal swap agreement with a 3^rd party that offsets the interest rate risk from the interest rate swap extended to the customer.  The interest rate swaps are derivative instruments which are carried at fair value on the consolidated balance sheet.  Home Savings uses an independent third party that performs a market valuation analysis for both swap positions (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 June 30, 2019 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	June 30,		Assets		Inputs		Inputs
	2019		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Trading securities	$	705	$	234	$	471	$	—
Available for sale securities
U.S. Treasury and agency securities		65,790		—		65,790		—
States and municipalities		36,025		—		36,025		—
Corporate debt securities		13,360		—		13,360		—
Collateralized mortgage obligations		56,107		—		56,107		—
Mortgage-backed securities		147,727		—		147,727		—
Loans held for sale, at fair value		97,477		—		27,912		69,565
Purchased certificate of deposit option		279		—		279		—
Interest rate swaps		121		—		121		—
Liabilities
Written certificate of deposit option		279		—		279		—
Interest rate swaps		133		—		133		—

			Fair Value Measurements at December 31, 2018 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
	2018		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Trading securities	$	364	$	364		—		—
Available for sale securities
U.S. Treasury and agency securities		95,581		—		95,581		—
States and municipalities		47,746		—		47,746		—
Corporate debt securities		2,004		—		2,004		—
Collateralized mortgage obligations		22,108		—		22,108		—
Mortgage-backed securities		74,204		—		74,204		—
Loans held for sale, at fair value		91,472		—		11,221		80,251
Purchased certificate of deposit option		261		—		261		—
Interest rate swaps		56		—		56		—
Liabilities
Written certificate of deposit option		261		—		261		—
Interest rate swaps		62		—		62		—

There were no transfers between Level 1 and Level 2 during the first and second quarters of 2019 or fiscal year 2018.

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 months ended June 30, 2019 and 2018.  

	Loans Held for Sale, At Fair Value
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2019			2018			2019			2018
	(Dollars in thousands)
Balance of recurring Level 3 assets at beginning of period	$	65,796		$	64,552		$	80,251		$	65,016
Total gains (losses) for the period
Included in change in fair value of loans held for sale		1,581			19			2,650			(2,139	)
Included in other comprehensive income		—			—			—			—
Originations/Draws on construction perm loans		30,633			35,517			53,730			62,327
Amortization		—			—			—			—
Sales		(28,445	)		(23,398	)		(67,066	)		(48,514	)
Balance of recurring Level 3 assets at end of period	$	69,565		$	76,690		$	69,565		$	76,690

The following table presents quantitative information about recurring Level 3 fair value measurements at June 30, 2019:

			Valuation	Unobservable
	Fair Value		Technique(s)	Input(s)	Range
Construction loans held for sale	$	69,565	Comparable sales	Time discount	0.00-0.39%

The following table presents quantitative information about recurring Level 3 fair value measurements at December 31, 2018:

			Valuation	Unobservable
	Fair Value		Technique(s)	Input(s)	Range
Construction loans held for sale	$	80,251	Comparable sales	Time discount	0.00-1.05%

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 June 30, 2019 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	June 30,		Assets		Inputs		Inputs
	2019		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Impaired loans:
Commercial loans
Secured Commercial		3,807		—		—		3,807
Residential loans
One-to four-family residential		241		—		—		241
Consumer loans
Marine		105		—		—		105
Recreational vehicle		4		—		—		4
Mortgage servicing rights		2,610		—		2,610		—
Other real estate owned, net
Commercial loans
Construction loans		63		—		—		63
Residential loans
One-to four-family residential		66		—		—		66

			Fair Value Measurements at December 31, 2018 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
	2018		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Impaired loans:
Commercial loans
Secured	$	419	$	—	$	—	$	419
Residential loans
One-to four-family residential		540		—		—		540
Consumer loans
Auto		8		—		—		8
Mortgage servicing rights		2,990		—		2,990		—
Other real estate owned, net
Commercial loans
Auto		181		—		—		181
Residential loans
One-to four-family residential		121		—		—		121

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 $4.2 million at June 30, 2019, that includes a specific valuation allowance of $828,000. This resulted in an increase of the provision for loan losses of $86,000 and $122,000 during the three and six months ended June 30, 2019, 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 $432,000 at June 30, 2018, which includes a specific valuation allowance of $490,000. This resulted in an increase in the provision for loan losses of $252,000 and $479,000 for the three and six months ended June 30, 2018.  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 $967,000 at December 31, 2018, that includes a specific valuation allowance of $69,000.

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 June 30, 2019, mortgage servicing rights carried at fair value totaled $2.6 million with a valuation allowance of $1.6 million.  At June 30, 2018, $240,000 mortgage servicing rights were carried at fair value, resulting in a net valuation allowance of $20,000.  Mortgage servicing rights are valued by an independent third party that is active in purchasing and selling these instruments.  Net impairment reflected in mortgage servicing rights valuation totaled $996,000 and $1.5 million for the three and six months ended June 30, 2019.  A net impairment reflected in other income totaled $20,000 and $11,000 for the three and six months ended June 30, 2018.  The value reflects the characteristics of the underlying loans.  

At June 30, 2019, 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 $129,000, with a valuation allowance of $158,000. This resulted in expense of $17,000 and $36,000 during the three and six months ended June 30, 2019.  At June 30, 2018, 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 $286,000 with a valuation allowance of $248,000. This resulted in expense of $10,000 and $33,000 during the three and six months ended June 30, 2018. At December 31, 2018, other real estate owned had a net carrying amount of $302,000, with a valuation allowance of $308,000.

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at June 30, 2019:

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial loans
Secured Commercial		3,807	Sales comparison approach	Adjustment for differences between comparable sales	0.00-35.00%  (15.00%)
Residential loans
One-to four-family residential		241	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-10.77%  (4.27%)
Consumer loans
Marine		105	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-17.85%  (8.93%)
Recreational vehicle		4	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-17.85%  (8.93%)
Other real estate owned, net
Commercial loans
Construction loans		63	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-50.00%  (45.85%)
Residential loans
One-to four-family residential		66	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-14.22%  (14.22%)

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, 2018:

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial loans
Secured		419	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-64.00%  (16.00%)
Residential loans
One-to four-family residential		540	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-10.77%  (4.27%)
Other real estate owned:
Commercial loans
Construction loans		181	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-52.90%  (52.41%)
Residential loans
One-to four-family residential		121	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-13.43%  (13.43%)

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 June 30, 2019 and December 31, 2018.  

	June 30, 2019		December 31, 2018
	(Dollars in thousands)
Aggregate fair value	$	97,477	$	91,472
Contractual balance		90,495		87,731
Gain		6,982		3,741

The total amount of gains and losses from changes in fair value included in earnings for the three and six months ended June 30, 2019 and 2018 for loans held for sale, at fair value were:

	For the Three Months Ended				For the six months ended
	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
	(Dollars in thousands)
Interest  income	$	—	$	—	$	—	$	—
Interest expense		—		—		—		—
Change in fair value		2,162		285		3,241		(2,197	)
Total change in fair value	$	2,162	$	285	$	3,241	$	(2,197	)

In accordance with U.S. GAAP, the carrying value and estimated fair values of financial instruments at June 30, 2019 and December 31, 2018, were as follows:

				Fair Value Measurements at June 30, 2019 Using:
	June 30,
	2019
	Carrying Value			(Level 1)			(Level 2)			(Level 3)
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	54,562		$	54,562		$	—		$	—
Trading securities		705			234			471			—
Available for sale securities		319,009			—			319,009			—
Held to maturity securities		—			—			—			—
Loans held for sale, at fair value		97,477			—			27,912			69,565
Loans, net		2,229,326			—			—			2,225,425
Purchased certificate of deposit option		279			—			279			—
Interest rate swaps		121			—			121			—
Liabilities:
Deposits:
Checking, savings and money market accounts		(1,427,080	)		(1,427,080	)		—			—
Certificates of deposit		(832,099	)		—			(832,695	)		—
FHLB advances		(233,000	)		—			(233,000	)		—
Repurchase agreements and other		(146	)		—			(143	)		—
Written certificate of deposit option		(279	)		—			(279	)		—
Interest rate swaps		(133	)		—			(133	)		—

				Fair Value Measurements at December 31, 2018 Using:
	December 31,
	2018
	Carrying Value			(Level 1)			(Level 2)			(Level 3)
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	60,985		$	60,985		$	—		$	—
Trading securities		364			364			—			—
Available for sale securities		241,643			—			241,643			—
Held to maturity securities		77,491			—			71,206			3,869
Loans held for sale, at fair value		91,472			—			11,221			80,251
Loans, net		2,176,842			—			—			2,138,319
Purchased certificate of deposit option		261			—			261			—
Interest rate swaps		56						56			—
Liabilities:
Deposits:
Checking, savings and money market accounts		(1,305,439	)		(1,305,439	)		—			—
Certificates of deposit		(907,781	)		—			(904,198	)		—
FHLB advances		(243,000	)		—			(243,000	)		—
Repurchase agreements and other		(224	)		—			(213	)		—
Written certificate of deposit option		(261	)		—			(261	)		—
Interest rate swaps		(62	)		—			(62	)		—

XML

STATEMENT OF CASH FLOWS SUPPLEMENTAL DISCLOSURE

6 Months Ended

Jun. 30, 2019

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 Six Months Ended June 30,
	2019		2018
	(Dollars in thousands)
Supplemental disclosures of cash flow information
Cash paid  during the period for:
Interest on deposits and borrowings	$	14,872	$	10,016
Income taxes		7,125		500
Supplemental schedule of noncash activities:
Transfers from loans to real estate owned and other repossessed assets		653		489
Transfer from held to maturity securities to available for sale securities		74,560		—
Accretion of securities held to maturity		42		77
Right of use asset recorded		5,469		—

XML

EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

EARNINGS PER SHARE

11. EARNINGS PER SHARE

The Company has granted stock compensation awards with nonforfeitable dividend rights that 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. There were 50,000 stock options that were anti-dilutive for the three and six months ended June 30, 2019 and June 30, 2018.

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2019			2018			2019			2018
	(Dollars in thousands, except per share data)
Net income per consolidated statements of income	$	10,486		$	9,541		$	19,142		$	18,097
Net income allocated to participating securities		(27	)		(41	)		(66	)		(91	)
Net income allocated to common stock	$	10,459		$	9,500		$	19,076		$	18,006
Basic earnings per common share computation:
Distributed earnings allocated to common stock	$	3,407		$	2,982		$	6,827		$	5,954
Undistributed earnings allocated to common stock		7,052			6,518			12,249			12,052
Net income allocated to common stock	$	10,459		$	9,500		$	19,076		$	18,006
Weighted average common shares outstanding, including shares    considered participating securities		48,589			49,906			48,805			49,877
Less: Average participating securities		(126	)		(212	)		(167	)		(250	)
Weighted average shares		48,463			49,694			48,638			49,627
Basic earnings per common share	$	0.22		$	0.19		$	0.39		$	0.36
Diluted earnings per common share computation:
Net income allocated to common stock	$	10,459		$	9,500		$	19,076		$	18,006
Weighted average common shares outstanding for basic earnings    per common share		48,463			49,694			48,638			49,627
Add: Dilutive effects of assumed exercises of stock options and    LTIP awards		181			250			201			262
Weighted average shares and dilutive potential common shares		48,644			49,944			48,839			49,889
Diluted earnings per common share	$	0.22		$	0.19		$	0.39		$	0.36

XML

OTHER COMPREHENSIVE INCOME (LOSS)

6 Months Ended

Jun. 30, 2019

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, accretion of unrealized losses on held to maturity securities, the transfer of the held to maturity securities portfolio to available for sale and disproportionate tax effects. The change includes reclassification of net gains or (losses) on sales of securities of $148,000 and $94,000 for the three months ended June 30, 2019 and 2018, respectively, and $292,000 and $233,000 for the six months ended June 30, 2019 and 2018, respectively.  Reclassifications also includes accretion of unrealized losses 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
June 30, 2019	(Dollars in thousands)
Balances at beginning of period, net of tax	$	(785	)	$	(17,110	)	$	(521	)	$	(18,416	)
Other comprehensive income before    reclassifications		3,344			—			—			3,344
Accretion of unrealized losses of securities    transferred from available for sale to    held to maturity recognized in other    comprehensive income		—			—			9			9
Transfer of held to maturity securities to available    for sale		(512	)		—			512			—
Reclassification adjustment for gains realized    in income		(117	)		—			—			(117	)
Net current period other comprehensive income		2,715			—			521			3,236
Balances at end of period, net of tax	$	1,930		$	(17,110	)	$	—		$	(15,180	)

	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			Total
June 30, 2018	(Dollars in thousands)
Balances at beginning of period, net of tax	$	(4,924	)	$	(17,110	)	$	(641	)	$	(22,675	)
Other comprehensive income before    reclassifications		(1,359	)		—			—			(1,359	)
Accretion of unrealized losses of securities    transferred from available for sale to    held to maturity recognized in other    comprehensive income		—			—			31			31
Reclassification adjustment for gains realized    in income		(74	)		—			—			(74	)
Net current period other comprehensive income		(1,433	)		—			31			(1,402	)
Balances at end of period, net of tax	$	(6,357	)	$	(17,110	)	$	(610	)	$	(24,077	)

Other comprehensive income (loss) components and related tax effects for the six-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
June 30, 2019	(Dollars in thousands)
Balances at beginning of period, net of tax	$	(3,781	)	$	(17,110	)	$	(545	)	$	(21,436	)
Other comprehensive income before    reclassifications		6,454			—			—			6,454
Accretion of unrealized losses of securities    transferred from available for sale to held    to maturity recognized in other    comprehensive income		—			—			33			33
Transfer of held to maturity securities to available    for sale		(512	)		—			512			—
Reclassification adjustment for gains realized    in income		(231	)		—			—			(231	)
Net current period other comprehensive income		5,711			—			545			6,256
Balances at end of period, net of tax	$	1,930		$	(17,110	)	$	—		$	(15,180	)

	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			Total
June 30, 2018	(Dollars in thousands)
Balances at beginning of period, net of tax	$	(904	)	$	(17,110	)	$	(671	)	$	(18,685	)
Other comprehensive income before    reclassifications		(5,269	)		—						(5,269	)
Accretion of unrealized losses of securities    transferred from available for sale to held    to maturity recognized in other comprehensive    income		—			—			61			61
Reclassification adjustment for gains realized    in income		(184	)		—			—			(184	)
Net current period other comprehensive income		(5,453	)		—			61			(5,392	)
Balances at end of period, net of tax	$	(6,357	)	$	(17,110	)	$	(610	)	$	(24,077	)

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).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 June 30, 2019:

	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	$	(148	)	Net gains on securitiesavailable for sale
		31		Tax expense
Total reclassification during the period	$	(117	)	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 June 30, 2018:

	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	$	(94	)	Net gainson securitiesavailable for sale
		20		Tax expense
Total reclassification during the period	$	(74	)	Net of tax, increase to net income

The following are significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the six months ended June 30, 2019:

	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	$	(292	)	Net gainson securitiesavailable for sale
		61		Tax expense
		(231	)	Net of tax

The following are significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the six months ended June 30, 2018:

	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	$	(233	)	Net gains on securitiesavailable for sale
		49		Tax expense
Total reclassification during the period	$	(184	)	Net of tax, increase to net income

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REGULATORY CAPITAL REQUIREMENTS

6 Months Ended

Jun. 30, 2019

Banking And Thrift [Abstract]

REGULATORY CAPITAL REQUIREMENTS

13. REGULATORY CAPITAL REQUIREMENTS

Home Savings is 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. 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)and a minimum Tier 1 capital to risk-based assets requirement (6% of risk-weighted assets), and assign 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, 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 was fully phased in beginning January 1, 2019.  The capital conservation buffer is now 2.50%.  The capital conservation buffer for 2018 was 1.875%.

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).  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 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.

	June 30, 2019
											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)	$	310,134		14.17	%	$	175,147		8.00	%	$	218,934		10.00	%
Tier 1 capital (to risk-weighted assets)		289,697		13.23	%		131,360		6.00	%		175,147		8.00	%
Common equity Tier 1 capital (to risk-weighted    assets)		289,697		13.23	%		98,520		4.50	%		142,307		6.50	%
Tier 1 capital (to average assets)**		289,697		10.32	%		112,334		4.00	%		140,418		5.00	%

	December 31, 2018
											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)	$	301,864		14.30	%	$	168,841		8.00	%	$	211,051		10.00	%
Tier 1 capital (to risk-weighted assets)		281,475		13.34	%		126,631		6.00	%		168,841		8.00	%
Common equity Tier 1 capital (to risk-weighted    assets)		281,475		13.34	%		94,973		4.50	%		137,183		6.50	%
Tier 1 capital (to average assets)**		281,475		10.11	%		111,318		4.00	%		139,147		5.00	%

** Tier 1 Leverage Capital Ratio

Management believes that as of June 30, 2019 and December 31, 2018, Home Savings met all capital adequacy requirements to which it was subject.  As of June 30, 2019 and December 31, 2018, Home Savings met the capital requirements to be deemed well capitalized. There are no known conditions that would change this classification subsequent to June 30, 2019.  

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

	June 30, 2019			December 31, 2018
Total shareholders' equity	$	295,306		$	281,006
Add (deduct)
Accumulated other comprehensive income		15,195			21,450
Intangible assets		(20,804	)		(20,981	)
Tier 1 Capital		289,697			281,475
Allowance for loan losses and allowance for unfunded lending commitments    limited to 1.25% of total risk-weighted assets		20,437			20,389
Total risk-based capital	$	310,134		$	301,864

** Tier 1 Leverage Capital Ratio

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INCOME TAXES

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

14. INCOME TAXES

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

	June 30,		December 31,
	2019		2018
	(Dollars in thousands)
Deferred tax assets:
Loan loss reserves	$	4,331	$	4,293
Depreciation		314		363
Other real estate owned valuation		33		65
Unrealized loss on securities available for sale		—		1,005
Unrealized loss on securities held to maturity		—		184
Interest on nonaccrual loans		338		425
Net operating loss carryforward		—		409
Accrued bonuses		719		840
Other		4		125
Deferred tax assets		5,739		7,709
Deferred tax liabilities:
Deferred loan fees		1,645		1,512
Federal Home Loan Bank stock dividends		613		2,749
Mortgage servicing rights		1,391		1,603
Purchase accounting adjustment		199		62
Prepaid expenses		227		228
Unrealized gain on securities available for sale		513		—
Deferred tax liabilities		4,588		6,154
Net deferred tax asset	$	1,151	$	1,555

As of June 30, 2019, the net deferred tax asset was $1.2 million, and as of December 31, 2018, the net deferred tax asset was $1.6 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.

Effective tax rates differ from the statutory federal income tax rate of 21% for 2019 and 2018 due to the following:

	For the Three Months Ended June 30,
	2019						2018
	Dollars			Rate			Dollars			Rate
	(Dollars in thousands)
Tax at statutory rate:	$	2,686			21.00	%	$	2,469			21.00	%
Increase (decrease) due to:
Tax exempt income		(33	)		(0.26	)%		(147	)		(1.26	)%
Increase (decrease) due to:
Life insurance		(83	)		(0.65	)%		(91	)		(0.77	)%
Stock compensation		(22	)		(0.17	)%		(4	)		(0.03	)%
Reversal of disproportionate tax effect		(145	)		(1.13	)%		—			—	%
Other		(100	)		(0.78	)%		(13	)		(0.11	)%
Income tax provision	$	2,303			18.01	%	$	2,214			18.83	%

	For the Six Months Ended June 30,
	2019						2018
	Dollars			Rate			Dollars			Rate
	(Dollars in thousands)
Tax at statutory rate:	$	4,896			21.00	%	$	4,641			21.00	%
Increase (decrease) due to:
Tax exempt income		(93	)		(0.40	)%		(181	)		(0.82	)%
Increase (decrease) due to:
Life insurance		(164	)		(0.70	)%		(182	)		(0.82	)%
Stock compensation		(80	)		(0.34	)%		(132	)		(0.60	)%
Reversal of disproportionate tax effect		(145	)		(0.62	)%		—			—	%
Other		(243	)		(1.05	)%		(143	)		(0.65	)%
Income tax provision	$	4,171			17.89	%	$	4,003			18.11	%

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GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2019

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:

	June 30, 2019		December 31, 2018
	(In thousands)
Beginning of the year	$	20,221	$	20,221
Impairment	—		—
End of the year	$	20,221	$	20,221

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 June 30, 2019 or December 31, 2018.

Acquired Intangible Assets:

	June 30, 2019				December 31, 2018
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
	(In thousands)
Amortized intangible assets:
Core deposit intangibles	$	11,184	$	9,745	$	11,184	$	9,581
Customer list intangible		2,547		424		2,547		333
Total	$	13,731	$	10,169	$	13,731	$	9,914

Aggregate amortization expense for the three months ended June 30, 2019 and 2018 was $127,000 and $132,000, respectively. Aggregate amortization expense for the six months ended June 30, 2019 and 2018 was $255,000 and $245,000, respectively.

Estimated amortization expense for the remainder of 2019 and the next five years is as follows:

Remainder of 2019	$	255,000
2020		510,000
2021		510,000
2022		510,000
2023		510,000
2024		510,000

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QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS

6 Months Ended

Jun. 30, 2019

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 June 30, 2019 and December 31, 2018, the balance of the investment for qualified affordable housing projects was $11.0 million and $8.4 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 $8.5 million and $6.5 million at June 30, 2019 and December 31, 2018, respectively.  The Company expects to fulfill these commitments over the next eight to ten years.

During the three months ended June 30, 2019 and 2018, the Company recognized amortization expense of $172,000 and $122,000, respectively, which was included within income tax expense on the consolidated statements of income. During the six months ended June 30, 2019 and 2018, the Company recognized amortization expense of $345,000 and $243,000, respectively.  

Additionally, during the three months ended June 30, 2019 and 2018, the Company recognized tax credits and other benefits from its investment in affordable housing tax credits of $197,000 and $138,000, respectively.  During the six months ended June 30, 2019 and 2018, the Company recognized tax credits and other benefits from its investment in affordable housing tax credits of $394,000 and $277,000, respectively.  During the three and six months ended June 30, 2019 and 2018, the Company incurred no impairment losses.

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DERIVATIVES

6 Months Ended

Jun. 30, 2019

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives

17. DERIVATIVES

The Company periodically enters into written and purchased option derivative instruments to facilitate an equity linked time deposit product (the Power CD). The Power CD is a time deposit that provides the purchaser a guaranteed return of principal at maturity plus a potential equity return (a written option), while Home Savings receives a known stream of funds based on the equity return (a purchased option). The written and purchased options are mirror derivative instruments which are carried at fair value on the consolidated statements of financial condition.

Summary information about purchased and written options is as follows:

	June 30, 2019		December 31, 2018
	(Dollars in thousands)
Notional amount of purchased/written option	$	12,882	$	13,024
Weighted average maturity	1.0 years		1.6 years
Fair value of purchased/written option	$	279	$	261

Purchased and written options are mirror derivative instruments and as such the changes in fair value are recorded through noninterest income, and offset each other. These options increased in value $18,000 in 2019 and decreased in value by $548,000 in 2018.

The following table reflects the fair value and location in the consolidated statement of financial condition of interest rate caps, along with purchased and written certificates of deposit options:

Included in other assets:

	June 30, 2019		December 31, 2018
	(Dollars in thousands)
Freestanding derivative assets not designated as hedges:
Purchased certificate of deposit option	$	279	$	261

Included in other liabilities:

	June 30, 2019		December 31, 2018
	(Dollars in thousands)
Freestanding derivative liabilities not designated as hedges:
Written certificate of deposit option	$	279	$	261

The Company is subject to counterparty risk. Counterparty risk is the risk to the Company that the counterparty will not live up to its contractual obligations. The ability of the Company to realize the benefit of the derivative contracts is dependent on the creditworthiness of the counterparty, which the Company expects will perform in accordance with the terms of the contracts.

Interest Rate Swaps

The Company maintains an interest rate protection program for commercial loan customers, which was established in 2018. Under this program, the Company provides a customer with a fixed rate loan while creating a variable rate asset for the Company by the customer entering into an interest rate swap with terms that match the loan.  The Company offsets its risk exposure by entering into an offsetting interest rate swap with an unaffiliated institution.  The Company had interest rate swaps associated with commercial loans with a notional value of $2.5 million and fair value of $121,000 in other assets and $133,000 in other liabilities. The difference in fair value of $12,000 between the asset and liability accounts represents a credit valuation adjustment that flows through noninterest income in the first half of 2019.  At December 31, 2018 the Company had interest rate swaps associated with commercial loans with a notional value of $2.5 million and fair value of $56,000 in other assets and $62,000 in other liabilities. The difference in fair value of $6,000 between the asset and liability accounts represents a credit valuation adjustment that flows through noninterest income during 2018.  These interest rate swaps did not have a material impact on the Company’s statements of operation or financial condition.

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LEASES

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

LEASES

18. LEASES

As of January 1, 2019, when the Company adopted ASU 2016-02 prospectively, operating leases are recorded as a right of use (“ROU”) asset and operating lease liability, included in other assets and other liabilities, respectively, on the consolidated balance sheet.  Operating lease ROU assets represent the right to use an underlying asset during the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease.  ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the incremental borrowing rate at the lease commencement date.  Operating lease expense, which is comprised of amortization of the amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight line basis over the lease term and is recorded primarily in net occupancy expense in the consolidated statements of comprehensive income.

Operating leases relate primarily to bank branches, office space and license agreements with remaining lease terms of generally one to 23 years, which includes options for multiple extensions, with a weighted-average lease term of 7 years.  As of June 30, 2019, operating lease ROU assets and liabilities were $4.8 million and $5.2 million, respectively.  During the quarter ended June 30, 2019, a new lease was signed which added $242,000 to both the ROU asset and operating lease liability.  The lease expense for operating leases was $343,000 and $661,000 for the three and six months ended June 30, 2019.  The weighted average discount rate was 2.68% as of June 30, 2019.

The right of use asset amortized $298,000 and $626,000 during the three and six months ended June 30, 2019.  Short-term lease expense was $31,000 and $62,000 for the three and six months ended June 30, 2019.

Future minimum lease payments under non-cancellable leases with initial or remaining lease terms in excess of one year at June 30, 2019 are as follows:

Year	(Dollars in thousands)
Remainder of 2019	$	667
2020		1,231
2021		994
2022		779
2023		424
2024 and thereafter		1,626
Total lease payments		5,721
Less:  Interest		(519	)
Present value of lease liabilities	$	5,202

Rent expense was $259,000 and $542,000 for the three and six months ended June 30, 2018.  Rent commitments under noncancelable operating leases for offices were as follows as of December 31, 2018, before considering renewal options that generally are present:

Year	(Dollars in thousands)
2019	$	1,085
2020		949
2021		892
2022		651
2023		346
Thereafter		867
Total	$	4,790

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RECENT ACCOUNTING DEVELOPMENTS (Policies)

6 Months Ended

Jun. 30, 2019

Accounting Changes And Error Corrections [Abstract]

Leases

In February 2016, the FASB issued ASU 2016-02 - Leases (Topic 842). The ASU amends existing guidance that requires lessees recognize the following for all leases (with the exception of short–term leases) at the commencement date (1) A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.  Under the new guidance, lessor accounting is largely unchanged.  Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers.  An entity may adopt the new guidance by either restating prior periods and recording a cumulative effect adjustment at the beginning of the earliest comparative period presented or by recording a cumulative effect adjustment at the beginning of the period of adoption.  The Company used the approach of recording a cumulative effect adjustment at the beginning of the period of adoption, however, no cumulative effect adjustment was required to be recorded.  The new guidance includes a number of optional transition-related practical expedients.  The practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset.  An entity that elects to apply these practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP.  The Company elected to apply the practical expedients.  In 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, ASU 2018-11, Leases (Topic 842): Targeted Improvements and ASU 2018-20, Leases (Topic 842): Narrow – Scope Improvements for Lessors.  These ASUs amend and clarify guidance in ASU 2016-02 and were being considered by the Company in determining the proper adoption of ASU 2016-02.  The adoption of this guidance on January 1, 2019, resulted in an approximate $5.2 million increase in right of use asset, $0.3 million increase in other assets and an approximate $5.5 million increase in lease liability.

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB Issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13).   ASU 2016-13 adds a new Topic 326 to the Accounting Standards Codification (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 has aggregated and verified the necessary data and addressed any data-archiving improvements necessary for the implementation of this ASU. Management has evaluated various models and parallel calculations are being performed to refine the calculation. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses.  The amendment clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20 and should be accounted for in accordance with Topic 842, Leases.

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.  The adoption of this guidance did not 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.  Early adoption is permitted for all entities.  The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

Targeted Improvements to Accounting for Hedging Activities

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.  These amendments revise and expand hedge accounting for both financial (e.g., interest rate) and commodity risks.  Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes.  It also makes certain targeted improvements to simplify the application of hedge accounting guidance.  This ASU is effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years.  Early adoption, including adoption in an interim period, is permitted. If an entity early adopts in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period (i.e., the initial application date).  The adoption of this guidance did not have an impact on the Company’s consolidated financial statements.

Improvements to Nonemployee Share-Based Payment Accounting

In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (ASU 2018-07).  The FASB issued ASU 2018-07 intending to reduce cost and complexity and to improve financial reporting for nonemployee share-based payments.  ASU 2018-07 expands the scope of Topic 718, Compensation—Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. ASU 2018-07 supersedes Subtopic 505-50, Equity—Equity-Based Payments to Non-Employees.  The amendments in ASU 2018-07 are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year.  Early adoption is permitted.  The adoption of this guidance did not have an impact on the Company’s consolidated financial statements.

Changes to the Disclosure Requirements for Fair Value Measurement

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.  This ASU modifies the disclosure objective paragraphs of ASU 820 to eliminate (1) “at a minimum” from the phrase “an entity shall disclose at a minimum” and (2) other similar “open ended” disclosure requirements to promote the appropriate exercise of discretion of entities.  The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.  Early adoption is permitted, including adoption in an interim period.  The Company is currently assessing the impact of ASU 2018-13 on the Company’s consolidated financial statements

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STOCK COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Option Activity in 2015 Plan, 2007 Plan and 1999 Plan

A summary of option activity for the six months ended June 30, 2019 in the 2015 Plan, the 2007 Plan and the 1999 Plan is as follows:

	For the six months ended
	June 30, 2019
				Weighted		Aggregate
				average		intrinsic value
	Shares			exercise price		(in thousands)
Outstanding at beginning of year		223,432		$	3.93
Granted		—			—
Exercised		(59,600	)		2.03
Forfeited and expired		—			—
Outstanding at end of period		163,832			4.63	$	815
Shares subject to options exercisable at end of period		163,832			4.63	$	815

Information Related to Stock Options

Information related to stock options for the six months ended June 30, 2019 and 2018 follows:

	June 30, 2019		June 30, 2018
Intrinsic value of options exercised	$	438,540	$	450,486
Cash received from option exercises		122,000		232,000
Tax benefit realized from option exercises		15,565		67,298
Weighted average fair value of options granted, per share	$	—	$	1.54

Information Related to Stock Options Granted

Information related to stock options granted during the six months ended June 30, 2018 were as follows:

	Six Months Ended
	June 30, 2018
Risk-free interest rate		2.69	%
Expected term (years)		5
Expected stock volatility		19.86	%
Dividend yield		2.48	%

Summary of Changes in Company's Nonvested Restricted Shares

A summary of changes in the Company’s nonvested restricted shares for the six months ended June 30, 2019 is as follows:

	For the six months ended
	June 30, 2019
				Weighted
				average
				grant date
	Shares			fair value
Nonvested at beginning of year		210,713		$	8.15
Granted		30,458		$	9.42
Vested		(116,959	)	$	6.92
Forfeited		(834	)	$	9.10
Nonvested shares at end of period		123,378		$	9.63

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SECURITIES (Tables)

6 Months Ended

Jun. 30, 2019

Components of Available for Sale Portfolio

Components of the available for sale portfolio are as follows:

	June 30, 2019
			Gross		Gross
	Amortized		unrealized		unrealized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Available for Sale
U.S. Treasury and agency securities	$	64,337	$	1,453				$	65,790
States and municipalities		35,085		940					36,025
Corporate debt securities		13,204		159		(3	)		13,360
Collateralized mortgage obligations (CMO)		54,773		1,356		(22	)		56,107
Mortgage-backed securities (MBS)		149,168		265		(1,706	)		147,727
Total	$	316,567	$	4,173	$	(1,731	)	$	319,009

	December 31, 2018
			Gross		Gross
	Amortized		unrealized		unrealized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Available for Sale
U.S. Treasury and agency securities	$	97,785	$	—	$	(2,204	)	$	95,581
States and municipalities		48,167		107		(528	)		47,746
Corporate debt securities		2,000		4		—			2,004
Collateralized mortgage obligations (CMO)		21,979		143		(14	)		22,108
Mortgage-backed securities (MBS)		76,495		23		(2,314	)		74,204
Total	$	246,426	$	277	$	(5,060	)	$	241,643

Components of Held to Maturity Securities Portfolio

Components of the held to maturity securities portfolio at December 31, 2018 are as follows:

	December 31, 2018
			Gross		Gross
	Amortized		unrecognized		unrecognized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Held to maturity
Mortgage-backed securities (MBS)	$	64,442	$	—	$	(2,327	)	$	62,115
States and municipalities		13,049		20		(109	)		12,960
Total	$	77,491	$	20	$	(2,436	)	$	75,075

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:

	June 30, 2019
	Amortized cost		Fair value
	(Dollars in thousands)
Due in one year or less	$	2,000	$	2,021
Due after one year through five years		19,010		19,349
Due after five years through ten years		60,026		61,309
Due after ten years		31,590		32,496
MBS and CMO		203,941		203,834
Total	$	316,567	$	319,009

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 June 30, 2019 are as follows:

	June 30, 2019
	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 agency securities	$	—	$	—		$	—	$	—		$	—	$	—
States and municipalities		—		—			—		—			—		—
Corporate debt securities		503		(3	)		—		—			503		(3	)
Collateralized mortgage obligations (CMO)		7,803		(22	)		—		—			7,803		(22	)
Mortgage-backed securities (MBS)		—		—			108,254		(1,706	)		108,254		(1,706	)
Total temporarily impaired securities	$	8,306	$	(25	)	$	108,254	$	(1,706	)	$	116,560	$	(1,731	)

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, 2018 are as follows:

	December 31, 2018
	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 agency securities	$	—	$	—		$	95,581	$	(2,204	)	$	95,581	$	(2,204	)
States and municipalities		9,475		(39	)		24,850		(489	)		34,325		(528	)
Collateralized mortgage obligations (CMO)		5,475		(14	)		—		—			5,475		(14	)
Mortgage-backed securities (MBS)		—		—			73,542		(2,314	)		73,542		(2,314	)
Total temporarily impaired securities	$	14,950	$	(53	)	$	193,973	$	(5,007	)	$	208,923	$	(5,060	)

Held To Maturity Securities [Member]

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: 

	December 31, 2018
	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 securities (MBS)	$	—	$	—		$	62,115	$	(3,203	)	$	62,115	$	(3,203	)
States and municipalities		4,253		(48	)		3,525		(69	)		7,778		(117	)
Total temporarily impaired securities	$	4,253	$	(48	)	$	65,640	$	(3,272	)	$	69,893	$	(3,320	)

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LOANS (Tables)

6 Months Ended

Jun. 30, 2019

Receivables [Abstract]

Schedule of Portfolio of Loans

Portfolio loans consist of the following:

	June 30,			December 31,
	2019			2018
	(Dollars in thousands)
Commercial loans
Multifamily	$	154,630		$	134,143
Nonresidential		414,780			409,979
Land		16,955			16,830
Construction		138,043			141,686
Secured		243,044			233,306
Unsecured		6,854			6,987
Total commercial loans		974,306			942,931
Residential mortgage loans
One-to four-family		942,698			927,255
Construction		46,196			43,435
Total residential mortgage loans		988,894			970,690
Consumer loans
Home equity		184,676			185,661
Auto		82,715			78,686
Marine		1,097			1,206
Recreational vehicle		3,433			4,347
Other		7,610			7,141
Total consumer loans		279,531			277,041
Total loans		2,242,731			2,190,662
Less:
Allowance for loan losses		20,482			20,443
Deferred loan costs, net		(7,077	)		(6,623	)
Total		13,405			13,820
Loans, net	$	2,229,326		$	2,176,842

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 June 30, 2019 and December 31, 2018 and activity for the three and six months ended June 30, 2019 and 2018.

Allowance For Loan Losses

	Commercial Loans			Residential Loans			Consumer Loans			Total
	(Dollars in thousands)
For the three months ended June 30, 2019
Beginning balance	$	12,114		$	5,823		$	2,509		$	20,446
Provision (recovery)		263			(312	)		(2	)		(51	)
Charge-offs		—			(79	)		(115	)		(194	)
Recoveries		170			26			85			281
Ending balance	$	12,547		$	5,458		$	2,477		$	20,482
For the six months ended June 30, 2019
Beginning balance	$	11,875		$	5,923		$	2,645		$	20,443
Provision		444			(490	)		56			10
Charge-offs		(88	)		(99	)		(440	)		(627	)
Recoveries		316			124			216			656
Ending balance	$	12,547		$	5,458		$	2,477		$	20,482
As of June 30, 2019
Period-end amount allocated to:
Loans individually evaluated for impairment	$	857		$	669		$	290			1,816
Loans collectively evaluated for impairment		11,690			4,789			2,187			18,666
Ending balance	$	12,547		$	5,458		$	2,477		$	20,482
Period-end balances:
Loans individually evaluated for impairment		7,680			12,402			5,057			25,139
Loans collectively evaluated for impairment		966,626			976,492			274,474			2,217,592
Ending balance	$	974,306		$	988,894		$	279,531		$	2,242,731

Allowance For Loan Losses

	Commercial Loans			Residential Loans			Consumer Loans			Total
For the three months ended June 30, 2018
Beginning balance	$	13,095		$	5,701		$	2,814		$	21,610
Provision (recovery)		(263	)		180			(55	)		(138	)
Charge-offs		(75	)		(96	)		(83	)		(254	)
Recoveries		51			82			54			187
Ending balance	$	12,808		$	5,867		$	2,730		$	21,405
For the six months ended June 30, 2018
Beginning balance	$	12,542		$	5,860		$	2,800		$	21,202
Provision		133			87			49			269
Charge-offs		(75	)		(181	)		(269	)		(525	)
Recoveries		208			101			150			459
Ending balance	$	12,808		$	5,867		$	2,730		$	21,405
As of December 31, 2018
Period-end amount allocated to:
Loans individually evaluated for impairment	$	103		$	798		$	300			1,201
Loans collectively evaluated for impairment		11,772			5,125			2,345			19,242
Ending balance	$	11,875		$	5,923		$	2,645		$	20,443
Period-end balances:
Loans individually evaluated for impairment		2,017			13,086			5,491			20,594
Loans collectively evaluated for impairment		940,914			957,604			271,550			2,170,068
Ending balance	$	942,931		$	970,690		$	277,041		$	2,190,662

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 six months ended June 30, 2019:

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	$	155	$	—	$	—	$	57	$	1	$	1
Nonresidential		2,942		2,801		—		1,019		17		17
Land		—		—		—		—		—		—
Construction		2,446		—		—		—		—		—
Secured		235		—		—		—		—		—
Unsecured		474		—		—		—		—		—
Total commercial loans		6,252		2,801		—		1,076		18		18
Residential mortgage loans
One-to four-family		5,579		4,792		—		4,672		64		55
Construction		—		—		—		—		—		—
Total residential mortgage loans		5,579		4,792		—		4,672		64		55
Consumer loans
Home equity		1,041		926		—		912		7		6
Auto		33		25		—		19		—		—
Marine		354		105		—		118		—		—
Recreational vehicle		386		49		—		95		4		4
Other		—		—		—		—		—		—
Total consumer loans		1,814		1,105		—		1,144		11		10
Total	$	13,645	$	8,698	$	—	$	6,892	$	93	$	83
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—	$	—	$	—	$	—
Nonresidential		—		—		—		1,301		45		37
Land		—		—		—		—		—		—
Construction		—		—		—		—		—		—
Secured		5,654		4,879		857		1,947		137		137
Unsecured		—		—		—		—		—		—
Total commercial loans		5,654		4,879		857		3,248		182		174
Residential mortgage loans
One-to four-family		7,741		7,610		669		8,077		239		202
Construction		—		—		—		—		—		—
Total residential mortgage loans		7,741		7,610		669		8,077		239		202
Consumer loans
Home equity		3,620		3,535		274		3,680		110		97
Auto		—		—		—		—		—		—
Marine		86		86		1		89		2		2
Recreational vehicle		343		331		15		314		11		10
Other		—		—		—		—		—		—
Total consumer loans		4,049		3,952		290		4,083		123		109
Total		17,444		16,441		1,816		15,408		544		485
Total impaired loans	$	31,089	$	25,139	$	1,816	$	22,300	$	637	$	568

The following table presents loans individually evaluated for impairment by class of loans as of and for six months ended June 30, 2018:

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	$	28	$	—	$	—	$	—	$	—	$	—
Nonresidential		630		137		—		100		4		4
Land		706		—		—		6		—		—
Construction		2,457		—		—		—		—		—
Secured		1,115		907		—		901		—		—
Unsecured		184		—		—		—		—		—
Total commercial loans		5,120		1,044		—		1,007		4		4
Residential mortgage loans
One-to four-family		6,918		5,994		—		5,602		74		58
Construction		—		—		—		—		—		—
Total residential mortgage loans		6,918		5,994		—		5,602		74		58
Consumer loans
Home equity		1,496		1,224		—		1,087		11		10
Auto		29		22		—		33		—		—
Marine		553		181		—		181		—		—
Recreational vehicle		520		100		—		122		4		4
Other		1		—		—		6		—		—
Total consumer loans		2,599		1,527		—		1,429		15		14
Total	$	14,637	$	8,565	$	—	$	8,038	$	93	$	76
With a specific allowance recorded
Commercial loans
Multifamily	$	422	$	275	$	28	$	275	$	—	$	—
Nonresidential		1,235		1,232		13		1,356		52		44
Land		—		—		—		—		—		—
Construction		—		—		—		—		—		—
Secured		819		568		473		579		—		—
Unsecured		—		—		—		—		—		—
Total commercial loans		2,476		2,075		514		2,210		52		44
Residential mortgage loans
One-to four-family		8,574		8,461		834		9,793		233		195
Construction		—		—		—		—		—		—
Total residential mortgage loans		8,574		8,461		834		9,793		233		195
Consumer loans
Home equity		4,282		4,201		295		4,505		123		110
Auto		—		—		—		—		—		—
Marine		95		95		1		97		2		2
Recreational vehicle		393		381		17		393		11		10
Other		—		—		—		—		—		—
Total consumer loans		4,770		4,677		313		4,995		136		122
Total		15,820		15,213		1,661		16,998		421		361
Total impaired loans	$	30,457	$	23,778	$	1,661	$	25,036	$	514	$	437

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2018:

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With no specific allowance recorded
Commercial loans
Multifamily	$	443	$	170	$	—
Nonresidential		588		130		—
Land		—		—		—
Construction		2,447		—		—
Secured		806		—		—
Unsecured		474		—		—
Total commercial loans		4,758		300		—
Residential mortgage loans
One-to four-family		5,840		4,908		—
Construction		—		—		—
Total residential mortgage loans		5,840		4,908		—
Consumer loans
Home equity		1,084		957		—
Auto		25		17		—
Marine		502		145		—
Recreational vehicle		592		172		—
Other		—		—		—
Total consumer loans		2,203		1,291		—
Total	$	12,801	$	6,499	$	—
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		1,186		1,186		12
Land		—		—		—
Construction		—		—		—
Secured		989		531		91
Unsecured		—		—		—
Total commercial loans		2,175		1,717		103
Residential mortgage loans
One-to four-family		8,298		8,178		798
Construction		—		—		—
Total residential mortgage loans		8,298		8,178		798
Consumer loans
Home equity		3,925		3,842		283
Auto		—		—		—
Marine		91		91		1
Recreational vehicle		279		267		16
Other		—		—		—
Total consumer loans		4,295		4,200		300
Total		14,768		14,095		1,201
Total impaired loans	$	27,569	$	20,594	$	1,201

The following table presents loans individually evaluated for impairment by class of loans for the three months ended June 30, 2019:

	Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	—			$	—
Nonresidential		1,464		16		16
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		1,464		16		16
Residential mortgage loans
One-to four-family		4,554		35		35
Construction		—		—		—
Total residential mortgage loans		4,554		35		35
Consumer loans
Home equity		889		6		6
Auto		20		—		—
Marine		105		—		—
Recreational vehicle		56		2		2
Other		—		—		—
Total consumer loans		1,070		8		8
Total	$	7,088	$	59	$	59
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		1,359		—		—
Land		—		—		—
Construction		—		—		—
Secured		2,656		134		134
Unsecured		—		—		—
Total commercial loans		4,015		134		134
Residential mortgage loans
One-to four-family		8,027		92		91
Construction		—		—		—
Total residential mortgage loans		8,027		92		91
Consumer loans
Home equity		3,600		49		48
Auto		—		—		—
Marine		88		1		1
Recreational vehicle		338		5		5
Other		—		—		—
Total consumer loans		4,026		55		54
Total		16,068		281		279
Total impaired loans	$	23,156	$	340	$	338

The following table presents loans individually evaluated for impairment by class of loans for the three months ended June 30, 2018:

	Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		78		1		1
Land		5		—		—
Construction		—		—		—
Secured		905		—		—
Unsecured		—		—		—
Total commercial loans		988		1		1
Residential mortgage loans
One-to four-family		5,683		30		30
Construction		—		—		—
Total residential mortgage loans		5,683		30		30
Consumer loans
Home equity		1,101		6		6
Auto		42		—		—
Marine		181		—		—
Recreational vehicle		108		2		2
Other		8		—		—
Total consumer loans		1,440		8		8
Total	$	8,111	$	39	$	39
With a specific allowance recorded
Commercial loans
Multifamily	$	275	$	—	$	—
Nonresidential		1,323		22		22
Land		—		—		—
Construction		—		—		—
Secured		563		—		—
Unsecured		—		—		—
Total commercial loans		2,161		22		22
Residential mortgage loans
One-to four-family		9,340		98		96
Construction		—		—		—
Total residential mortgage loans		9,340		98		96
Consumer loans
Home equity		4,338		57		56
Auto		—		—		—
Marine		96		1		1
Recreational vehicle		387		5		5
Other		—		—		—
Total consumer loans		4,821		63		62
Total		16,322		183		180
Total impaired loans	$	24,433	$	222	$	219

Loans in Process of Foreclosure

The table below presents loans that are in the process of foreclosure at June 30, 2019 and December 31, 2018, but legal title, deed in lieu of foreclosure or similar legal agreement to the property has not yet been obtained:

	June 30, 2019				December 31, 2018
	Unpaid Principal Balance		Recorded Investment		Unpaid Principal Balance		Recorded Investment
	(Dollars in thousands)				(Dollars in thousands)
Mortgage loans in process of foreclosure	$	3,847	$	3,686	$	3,687	$	3,636
Consumer loans in process of foreclosure		358		350		700		685

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 June 30, 2019:

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

As of June 30, 2019

	Nonaccrual		Loans past due over 90 days and still accruing
	(Dollars in thousands)
Commercial loans
Multifamily	$	—	$	—
Nonresidential		2,688		—
Land		—		—
Construction		—		—
Secured		4,678		—
Unsecured		—		—
Total commercial loans		7,366		—
Residential mortgage loans
One-to four-family		4,365		—
Construction		—		—
Total residential mortgage loans		4,365		—
Consumer Loans
Home equity		936		—
Auto		57		—
Marine		105		—
Recreational vehicle		34		—
Other		9		—
Total consumer loans		1,141		—
Total nonaccrual loans and loans past due over 90 days and still accruing	$	12,872	$	—

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, 2018:

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

As of December 31, 2018

	Nonaccrual		Loans past due over 90 days and still accruing
	(Dollars in thousands)
Commercial loans
Multifamily	$	171	$	—
Nonresidential		13		—
Land		—		—
Construction		—		—
Secured		531		—
Unsecured		—		—
Total commercial loans		715		—
Residential mortgage loans
One-to four-family		4,170		—
Construction		—		—
Total residential mortgage loans		4,170		—
Consumer Loans
Home equity		1,223		—
Auto		131		—
Marine		145		—
Recreational vehicle		145		—
Other		10		—
Total consumer loans		1,654		—
Total nonaccrual loans and loans past due over 90 days and still accruing	$	6,539	$	—

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 June 30, 2019:

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	$	—	$	—	$	—	$	—	$	154,630	$	154,630
Nonresidential		104		1,681		—		1,785		412,995		414,780
Land		—		—		—		—		16,955		16,955
Construction		—		—		—		—		138,043		138,043
Secured		24		44		427		495		242,549		243,044
Unsecured		—		—		—		—		6,854		6,854
Total commercial loans		128		1,725		427		2,280		972,026		974,306
Residential mortgage loans
One-to four-family		3,059		765		3,867		7,691		935,007		942,698
Construction		—		—		—		—		46,196		46,196
Total residential mortgage loans		3,059		765		3,867		7,691		981,203		988,894
Consumer Loans:
Home equity		1,166		319		893		2,378		182,298		184,676
Automobile		254		49		57		360		82,355		82,715
Marine		—		—		105		105		992		1,097
Recreational vehicle		59		73		34		166		3,267		3,433
Other		31		11		9		51		7,559		7,610
Total consumer loans		1,510		452		1,098		3,060		276,471		279,531
Total loans	$	4,697	$	2,942	$	5,392	$	13,031	$	2,229,700	$	2,242,731

The following table presents an age analysis of past-due loans, segregated by class of loans as of December 31, 2018:

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	$	—	$	—	$	171	$	171	$	133,972	$	134,143
Nonresidential		—		—		—		—		409,979		409,979
Land		—		—		—		—		16,830		16,830
Construction		—		—		—		—		141,686		141,686
Secured		195		—		531		726		232,580		233,306
Unsecured		—		—		—		—		6,987		6,987
Total commercial loans		195		—		702		897		942,034		942,931
Residential mortgage loans
One-to four-family		2,139		882		3,470		6,491		920,764		927,255
Construction		—		—		—		—		43,435		43,435
Total residential    mortgage loans		2,139		882		3,470		6,491		964,199		970,690
Consumer Loans:
Home equity		658		295		1,147		2,100		183,561		185,661
Automobile		283		112		131		526		78,160		78,686
Marine		—		—		145		145		1,061		1,206
Recreational vehicle		548		—		145		693		3,654		4,347
Other		33		—		10		43		7,098		7,141
Total consumer loans		1,522		407		1,578		3,507		273,534		277,041
Total loans	$	3,856	$	1,289	$	5,750	$	10,895	$	2,179,767	$	2,190,662

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 June 30, 2019:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(In thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		—		—		—
Land		—		—		—
Construction		—		—		—
Secured		1		824		824
Unsecured		—		—		—
Total commercial loans		1		824		824
Residential mortgage loans
One-to four-family		—		—		—
Construction		—		—		—
Total residential mortgage loans		—		—		—
Consumer loans
Home equity		1		40		44
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		1		40		44
Total restructured loans		2	$	864	$	868

The following table presents loans by class modified as troubled debt restructurings that occurred during the six months ended June 30, 2019:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(In thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		—		—		—
Land		—		—		—
Construction		—		—		—
Secured		1		824		824
Unsecured		—		—		—
Total commercial loans		1		824		824
Residential mortgage loans
One-to four-family		1		335		355
Construction		—		—		—
Total residential mortgage loans		1		335		355
Consumer loans
Home equity		1		40		44
Auto		—		—		—
Marine		—		—		—
Recreational vehicle
Other		—		—		—
Total consumer loans		1		40		44
Total restructured loans		3	$	1,199	$	1,223

The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ended June 30, 2018:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		—		—		—
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		—		—		—
Residential mortgage loans
One-to four-family		3		521		547
Construction		—		—		—
Total residential mortgage loans		3		521		547
Consumer loans
Home equity		2		113		113
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		2		113		113
Total restructured loans		5	$	634	$	660

The following table presents loans by class modified as troubled debt restructurings that occurred during the six months ended June 30, 2018:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		1		124		124
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		1		124		124
Residential mortgage loans
One-to four-family		3		521		547
Construction		—		—		—
Total residential mortgage loans		3		521		547
Consumer loans
Home equity		2		113		113
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		2		113		113
Total restructured loans		6	$	758	$	784

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 June 30, 2018:

	Number of loans		Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—
Nonresidential		1		121
Land		—		—
Construction		—		—
Secured		—		—
Unsecured		—		—
Total commercial loans		1		121
Residential mortgage loans
One-to four-family		2		357
Construction		—		—
Total residential mortgage loans		2		357
Consumer loans
Home equity		—		—
Auto		—		—
Marine		—		—
Recreational vehicle		—		—
Other		—		—
Total consumer loans		—		—
Total restructured loans		3	$	478

Risk Category of Loans by Class of Loans

As of June 30, 2019 and December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

June 30, 2019

(Dollars in thousands)

	Unclassified				Classified
	Unclassified		Special Mention		Substandard		Doubtful		Loss		Total Classified		Total Loans
Commercial Loans
Multifamily	$	142,730	$	10,824	$	1,076	$	—	$	—	$	1,076	$	154,630
Nonresidential		389,262		15,346		10,172		—		—		10,172		414,780
Land		16,955		—		—		—		—		—		16,955
Construction		135,658		2,385		—		—		—		—		138,043
Secured		220,556		3,065		19,423		—		—		19,423		243,044
Unsecured		6,771		—		83		—		—		83		6,854
Total commercial loans		911,932		31,620		30,754		—		—		30,754		974,306
Residential mortgage loans
One-to four-family		937,532		96		5,070		—		—		5,070		942,698
Construction		46,196		—		—		—		—		—		46,196
Total residential mortgage loans		983,728		96		5,070		—		—		5,070		988,894
Consumer Loans
Home equity		183,700		—		976		—		—		976		184,676
Auto		82,658		—		57		—		—		57		82,715
Marine		992		—		105		—		—		105		1,097
Recreational vehicle		3,399		—		34		—		—		34		3,433
Other		7,597		—		13		—		—		13		7,610
Total consumer loans		278,346		—		1,185		—		—		1,185		279,531
Total loans	$	2,174,006	$	31,716	$	37,009	$	—	$	—	$	37,009	$	2,242,731

December 31, 2018

(Dollars in thousands)

	Unclassified				Classified
	Unclassified		Special Mention		Substandard		Doubtful		Loss		Total Classified		Total Loans
Commercial Loans
Multifamily	$	133,972	$	—	$	171	$	—	$	—	$	171	$	134,143
Nonresidential		378,160		18,420		13,399		—		—		13,399		409,979
Land		16,830		—		—		—		—		—		16,830
Construction		139,540		2,146		—		—		—		—		141,686
Secured		214,924		2,184		16,198		—		—		16,198		233,306
Unsecured		6,894		—		93		—		—		93		6,987
Total commercial loans		890,320		22,750		29,861		—		—		29,861		942,931
Residential mortgage loans
One-to four-family		921,694		591		4,970		—		—		4,970		927,255
Construction		43,435		—		—		—		—		—		43,435
Total residential mortgage loans		965,129		591		4,970		—		—		4,970		970,690
Consumer Loans
Home equity		184,438		—		1,223		—		—		1,223		185,661
Auto		78,551		—		135		—		—		135		78,686
Marine		1,061		—		145		—		—		145		1,206
Recreational vehicle		4,221		—		126		—		—		126		4,347
Other		7,131		—		10		—		—		10		7,141
Total consumer loans		275,402		—		1,639		—		—		1,639		277,041
Total loans	$	2,130,851	$	23,341	$	36,470	$	—	$	—	$	36,470	$	2,190,662

Accretable Yield or Income Expected to be Collected

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

	Three Months Ended		Three Months Ended		For the six months ended		For the six months ended
	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
	(Dollars in thousands)				(Dollars in thousands)
Beginning of period	$	—	$	110	$	—	$	110
Accretion of income		—		6		—		6
Balance at end of period	$	—	$	104	$	—	$	104

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:

	June 30, 2019		June 30, 2018
	(Dollars in thousands)
Loans at beginning of period	$	—	$	1,194
Loans purchased during the period		—		—
Loans at end of period		—		1,091

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MORTGAGE BANKING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2019

Mortgage Banking [Abstract]

Principal Balances of Mortgage Servicing Rights

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

	June 30, 2019		December 31, 2018
	(Dollars in thousands)
Mortgage loan portfolios serviced for:
FHLMC	$	1,018,365	$	1,016,097
FNMA		395,438		347,294
Private investor		11,641		15,049

Capitalized Mortgage Servicing Rights

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

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2019			2018			2019			2018
	(Dollars in thousands)
Balance, beginning of period	$	8,041		$	6,843		$	7,704		$	6,681
Originations		703			641			1,486			1,303
Amortized to expense		(553	)		(542	)		(999	)		(1,042	)
Balance, end of period		8,191			6,942			8,191			6,942
Less valuation allowance		(1,565	)		(20	)		(1,565	)		(20	)
Net balance	$	6,626		$	6,922		$	6,626		$	6,922

Valuation Allowance for Mortgage Servicing Rights

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

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2019			2018			2019			2018
	(Dollars in thousands)
Balance, beginning of period	$	(569	)	$	—		$	(70	)	$	(9	)
Impairment charges		(996	)		(20	)		(1,495	)		(20	)
Recoveries		—			—			—			9
Balance, end of period	$	(1,565	)	$	(20	)	$	(1,565	)	$	(20	)

Key Economic Assumptions in Measuring Value of Mortgage Servicing Rights

Key economic assumptions in measuring the value of mortgage servicing rights at June 30, 2019, and December 31, 2018, were as follows:

	June 30, 2019	December 31, 2018
Weighted average prepayment rate	266 PSA	145 PSA
Weighted average life (in years)	5.27	7.26
Weighted average discount rate	11.00%	11.00%

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OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS (Tables)

6 Months Ended

Jun. 30, 2019

Real Estate [Abstract]

Real Estate Owned and Other Repossessed Assets

Real estate owned and other repossessed assets at June 30, 2019 and December 31, 2018 were as follows:

	June 30, 2019			December 31, 2018
	(Dollars in thousands)
Real estate owned and other repossessed assets	$	1,113		$	1,396
Valuation allowance		(158	)		(308	)
End of period	$	955		$	1,088

Valuation Allowance Related to Real Estate Owned

Activity in the valuation allowance was as follows:

	Three Months Ended						For the six months ended
	June 30, 2019			June 30, 2018			June 30, 2019			June 30, 2018
	(Dollars in thousands)
Beginning of period	$	318		$	287		$	308		$	403
Additions charged to expense		17			10			36			33
Sales of real estate owned with a valuation allowance		(177	)		(49	)		(186	)		(188	)
End of period	$	158		$	248		$	158		$	248

Expenses Related to Foreclosed and Repossessed Assets

Expenses related to foreclosed and repossessed assets include:

	Three Months Ended				For the six months ended
	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
	(Dollars in thousands)
Net loss on sales	$	16	$	103	$	28	$	158
Provision for unrealized losses		17		10		36		33
Operating expenses, net of rental income		17		34		56		70
Total expenses	$	50	$	147	$	120	$	261

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FAIR VALUE MEASUREMENT (Tables)

6 Months Ended

Jun. 30, 2019

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 June 30, 2019 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	June 30,		Assets		Inputs		Inputs
	2019		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Trading securities	$	705	$	234	$	471	$	—
Available for sale securities
U.S. Treasury and agency securities		65,790		—		65,790		—
States and municipalities		36,025		—		36,025		—
Corporate debt securities		13,360		—		13,360		—
Collateralized mortgage obligations		56,107		—		56,107		—
Mortgage-backed securities		147,727		—		147,727		—
Loans held for sale, at fair value		97,477		—		27,912		69,565
Purchased certificate of deposit option		279		—		279		—
Interest rate swaps		121		—		121		—
Liabilities
Written certificate of deposit option		279		—		279		—
Interest rate swaps		133		—		133		—

			Fair Value Measurements at December 31, 2018 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
	2018		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Trading securities	$	364	$	364		—		—
Available for sale securities
U.S. Treasury and agency securities		95,581		—		95,581		—
States and municipalities		47,746		—		47,746		—
Corporate debt securities		2,004		—		2,004		—
Collateralized mortgage obligations		22,108		—		22,108		—
Mortgage-backed securities		74,204		—		74,204		—
Loans held for sale, at fair value		91,472		—		11,221		80,251
Purchased certificate of deposit option		261		—		261		—
Interest rate swaps		56		—		56		—
Liabilities
Written certificate of deposit option		261		—		261		—
Interest rate swaps		62		—		62		—

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 months ended June 30, 2019 and 2018.  

	Loans Held for Sale, At Fair Value
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2019			2018			2019			2018
	(Dollars in thousands)
Balance of recurring Level 3 assets at beginning of period	$	65,796		$	64,552		$	80,251		$	65,016
Total gains (losses) for the period
Included in change in fair value of loans held for sale		1,581			19			2,650			(2,139	)
Included in other comprehensive income		—			—			—			—
Originations/Draws on construction perm loans		30,633			35,517			53,730			62,327
Amortization		—			—			—			—
Sales		(28,445	)		(23,398	)		(67,066	)		(48,514	)
Balance of recurring Level 3 assets at end of period	$	69,565		$	76,690		$	69,565		$	76,690

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 June 30, 2019 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	June 30,		Assets		Inputs		Inputs
	2019		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Impaired loans:
Commercial loans
Secured Commercial		3,807		—		—		3,807
Residential loans
One-to four-family residential		241		—		—		241
Consumer loans
Marine		105		—		—		105
Recreational vehicle		4		—		—		4
Mortgage servicing rights		2,610		—		2,610		—
Other real estate owned, net
Commercial loans
Construction loans		63		—		—		63
Residential loans
One-to four-family residential		66		—		—		66

			Fair Value Measurements at December 31, 2018 Using:
			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
	2018		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets:
Impaired loans:
Commercial loans
Secured	$	419	$	—	$	—	$	419
Residential loans
One-to four-family residential		540		—		—		540
Consumer loans
Auto		8		—		—		8
Mortgage servicing rights		2,990		—		2,990		—
Other real estate owned, net
Commercial loans
Auto		181		—		—		181
Residential loans
One-to four-family residential		121		—		—		121

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 June 30, 2019 and December 31, 2018.  

	June 30, 2019		December 31, 2018
	(Dollars in thousands)
Aggregate fair value	$	97,477	$	91,472
Contractual balance		90,495		87,731
Gain		6,982		3,741

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 six months ended June 30, 2019 and 2018 for loans held for sale, at fair value were:

	For the Three Months Ended				For the six months ended
	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
	(Dollars in thousands)
Interest  income	$	—	$	—	$	—	$	—
Interest expense		—		—		—		—
Change in fair value		2,162		285		3,241		(2,197	)
Total change in fair value	$	2,162	$	285	$	3,241	$	(2,197	)

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 June 30, 2019 and December 31, 2018, were as follows:

				Fair Value Measurements at June 30, 2019 Using:
	June 30,
	2019
	Carrying Value			(Level 1)			(Level 2)			(Level 3)
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	54,562		$	54,562		$	—		$	—
Trading securities		705			234			471			—
Available for sale securities		319,009			—			319,009			—
Held to maturity securities		—			—			—			—
Loans held for sale, at fair value		97,477			—			27,912			69,565
Loans, net		2,229,326			—			—			2,225,425
Purchased certificate of deposit option		279			—			279			—
Interest rate swaps		121			—			121			—
Liabilities:
Deposits:
Checking, savings and money market accounts		(1,427,080	)		(1,427,080	)		—			—
Certificates of deposit		(832,099	)		—			(832,695	)		—
FHLB advances		(233,000	)		—			(233,000	)		—
Repurchase agreements and other		(146	)		—			(143	)		—
Written certificate of deposit option		(279	)		—			(279	)		—
Interest rate swaps		(133	)		—			(133	)		—

				Fair Value Measurements at December 31, 2018 Using:
	December 31,
	2018
	Carrying Value			(Level 1)			(Level 2)			(Level 3)
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	60,985		$	60,985		$	—		$	—
Trading securities		364			364			—			—
Available for sale securities		241,643			—			241,643			—
Held to maturity securities		77,491			—			71,206			3,869
Loans held for sale, at fair value		91,472			—			11,221			80,251
Loans, net		2,176,842			—			—			2,138,319
Purchased certificate of deposit option		261			—			261			—
Interest rate swaps		56						56			—
Liabilities:
Deposits:
Checking, savings and money market accounts		(1,305,439	)		(1,305,439	)		—			—
Certificates of deposit		(907,781	)		—			(904,198	)		—
FHLB advances		(243,000	)		—			(243,000	)		—
Repurchase agreements and other		(224	)		—			(213	)		—
Written certificate of deposit option		(261	)		—			(261	)		—
Interest rate swaps		(62	)		—			(62	)		—

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 June 30, 2019:

			Valuation	Unobservable
	Fair Value		Technique(s)	Input(s)	Range
Construction loans held for sale	$	69,565	Comparable sales	Time discount	0.00-0.39%

The following table presents quantitative information about recurring Level 3 fair value measurements at December 31, 2018:

			Valuation	Unobservable
	Fair Value		Technique(s)	Input(s)	Range
Construction loans held for sale	$	80,251	Comparable sales	Time discount	0.00-1.05%

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 June 30, 2019:

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial loans
Secured Commercial		3,807	Sales comparison approach	Adjustment for differences between comparable sales	0.00-35.00%  (15.00%)
Residential loans
One-to four-family residential		241	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-10.77%  (4.27%)
Consumer loans
Marine		105	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-17.85%  (8.93%)
Recreational vehicle		4	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-17.85%  (8.93%)
Other real estate owned, net
Commercial loans
Construction loans		63	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-50.00%  (45.85%)
Residential loans
One-to four-family residential		66	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-14.22%  (14.22%)

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, 2018:

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial loans
Secured		419	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-64.00%  (16.00%)
Residential loans
One-to four-family residential		540	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-10.77%  (4.27%)
Other real estate owned:
Commercial loans
Construction loans		181	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-52.90%  (52.41%)
Residential loans
One-to four-family residential		121	Sales comparison approach	Adjustment for differences between comparable sales	0.00%-13.43%  (13.43%)

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STATEMENT OF CASH FLOWS SUPPLEMENTAL DISCLOSURE (Tables)

6 Months Ended

Jun. 30, 2019

Supplemental Cash Flow Elements [Abstract]

Supplemental Disclosures of Cash Flow Information

Supplemental disclosures of cash flow information are summarized below.

	For the Six Months Ended June 30,
	2019		2018
	(Dollars in thousands)
Supplemental disclosures of cash flow information
Cash paid  during the period for:
Interest on deposits and borrowings	$	14,872	$	10,016
Income taxes		7,125		500
Supplemental schedule of noncash activities:
Transfers from loans to real estate owned and other repossessed assets		653		489
Transfer from held to maturity securities to available for sale securities		74,560		—
Accretion of securities held to maturity		42		77
Right of use asset recorded		5,469		—

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EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Computation of Earnings Per Share

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2019			2018			2019			2018
	(Dollars in thousands, except per share data)
Net income per consolidated statements of income	$	10,486		$	9,541		$	19,142		$	18,097
Net income allocated to participating securities		(27	)		(41	)		(66	)		(91	)
Net income allocated to common stock	$	10,459		$	9,500		$	19,076		$	18,006
Basic earnings per common share computation:
Distributed earnings allocated to common stock	$	3,407		$	2,982		$	6,827		$	5,954
Undistributed earnings allocated to common stock		7,052			6,518			12,249			12,052
Net income allocated to common stock	$	10,459		$	9,500		$	19,076		$	18,006
Weighted average common shares outstanding, including shares    considered participating securities		48,589			49,906			48,805			49,877
Less: Average participating securities		(126	)		(212	)		(167	)		(250	)
Weighted average shares		48,463			49,694			48,638			49,627
Basic earnings per common share	$	0.22		$	0.19		$	0.39		$	0.36
Diluted earnings per common share computation:
Net income allocated to common stock	$	10,459		$	9,500		$	19,076		$	18,006
Weighted average common shares outstanding for basic earnings    per common share		48,463			49,694			48,638			49,627
Add: Dilutive effects of assumed exercises of stock options and    LTIP awards		181			250			201			262
Weighted average shares and dilutive potential common shares		48,644			49,944			48,839			49,889
Diluted earnings per common share	$	0.22		$	0.19		$	0.39		$	0.36

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OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

6 Months Ended

Jun. 30, 2019

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
June 30, 2019	(Dollars in thousands)
Balances at beginning of period, net of tax	$	(785	)	$	(17,110	)	$	(521	)	$	(18,416	)
Other comprehensive income before    reclassifications		3,344			—			—			3,344
Accretion of unrealized losses of securities    transferred from available for sale to    held to maturity recognized in other    comprehensive income		—			—			9			9
Transfer of held to maturity securities to available    for sale		(512	)		—			512			—
Reclassification adjustment for gains realized    in income		(117	)		—			—			(117	)
Net current period other comprehensive income		2,715			—			521			3,236
Balances at end of period, net of tax	$	1,930		$	(17,110	)	$	—		$	(15,180	)

	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			Total
June 30, 2018	(Dollars in thousands)
Balances at beginning of period, net of tax	$	(4,924	)	$	(17,110	)	$	(641	)	$	(22,675	)
Other comprehensive income before    reclassifications		(1,359	)		—			—			(1,359	)
Accretion of unrealized losses of securities    transferred from available for sale to    held to maturity recognized in other    comprehensive income		—			—			31			31
Reclassification adjustment for gains realized    in income		(74	)		—			—			(74	)
Net current period other comprehensive income		(1,433	)		—			31			(1,402	)
Balances at end of period, net of tax	$	(6,357	)	$	(17,110	)	$	(610	)	$	(24,077	)

Other comprehensive income (loss) components and related tax effects for the six-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
June 30, 2019	(Dollars in thousands)
Balances at beginning of period, net of tax	$	(3,781	)	$	(17,110	)	$	(545	)	$	(21,436	)
Other comprehensive income before    reclassifications		6,454			—			—			6,454
Accretion of unrealized losses of securities    transferred from available for sale to held    to maturity recognized in other    comprehensive income		—			—			33			33
Transfer of held to maturity securities to available    for sale		(512	)		—			512			—
Reclassification adjustment for gains realized    in income		(231	)		—			—			(231	)
Net current period other comprehensive income		5,711			—			545			6,256
Balances at end of period, net of tax	$	1,930		$	(17,110	)	$	—		$	(15,180	)

	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			Total
June 30, 2018	(Dollars in thousands)
Balances at beginning of period, net of tax	$	(904	)	$	(17,110	)	$	(671	)	$	(18,685	)
Other comprehensive income before    reclassifications		(5,269	)		—						(5,269	)
Accretion of unrealized losses of securities    transferred from available for sale to held    to maturity recognized in other comprehensive    income		—			—			61			61
Reclassification adjustment for gains realized    in income		(184	)		—			—			(184	)
Net current period other comprehensive income		(5,453	)		—			61			(5,392	)
Balances at end of period, net of tax	$	(6,357	)	$	(17,110	)	$	(610	)	$	(24,077	)

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 June 30, 2019:

	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	$	(148	)	Net gains on securitiesavailable for sale
		31		Tax expense
Total reclassification during the period	$	(117	)	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 June 30, 2018:

	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	$	(94	)	Net gainson securitiesavailable for sale
		20		Tax expense
Total reclassification during the period	$	(74	)	Net of tax, increase to net income

The following are significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the six months ended June 30, 2019:

	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	$	(292	)	Net gainson securitiesavailable for sale
		61		Tax expense
		(231	)	Net of tax

The following are significant amounts reclassified out of each component of accumulated comprehensive income (loss) for the six months ended June 30, 2018:

	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	$	(233	)	Net gains on securitiesavailable for sale
		49		Tax expense
Total reclassification during the period	$	(184	)	Net of tax, increase to net income

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REGULATORY CAPITAL REQUIREMENTS (Tables) - Home Savings [Member]

6 Months Ended

Jun. 30, 2019

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.

	June 30, 2019
											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)	$	310,134		14.17	%	$	175,147		8.00	%	$	218,934		10.00	%
Tier 1 capital (to risk-weighted assets)		289,697		13.23	%		131,360		6.00	%		175,147		8.00	%
Common equity Tier 1 capital (to risk-weighted    assets)		289,697		13.23	%		98,520		4.50	%		142,307		6.50	%
Tier 1 capital (to average assets)**		289,697		10.32	%		112,334		4.00	%		140,418		5.00	%

	December 31, 2018
											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)	$	301,864		14.30	%	$	168,841		8.00	%	$	211,051		10.00	%
Tier 1 capital (to risk-weighted assets)		281,475		13.34	%		126,631		6.00	%		168,841		8.00	%
Common equity Tier 1 capital (to risk-weighted    assets)		281,475		13.34	%		94,973		4.50	%		137,183		6.50	%
Tier 1 capital (to average assets)**		281,475		10.11	%		111,318		4.00	%		139,147		5.00	%

** Tier 1 Leverage Capital Ratio

Components of Regulatory Capital

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

	June 30, 2019			December 31, 2018
Total shareholders' equity	$	295,306		$	281,006
Add (deduct)
Accumulated other comprehensive income		15,195			21,450
Intangible assets		(20,804	)		(20,981	)
Tier 1 Capital		289,697			281,475
Allowance for loan losses and allowance for unfunded lending commitments    limited to 1.25% of total risk-weighted assets		20,437			20,389
Total risk-based capital	$	310,134		$	301,864

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INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Significant Components of Deferred Tax Assets and Liabilities

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

	June 30,		December 31,
	2019		2018
	(Dollars in thousands)
Deferred tax assets:
Loan loss reserves	$	4,331	$	4,293
Depreciation		314		363
Other real estate owned valuation		33		65
Unrealized loss on securities available for sale		—		1,005
Unrealized loss on securities held to maturity		—		184
Interest on nonaccrual loans		338		425
Net operating loss carryforward		—		409
Accrued bonuses		719		840
Other		4		125
Deferred tax assets		5,739		7,709
Deferred tax liabilities:
Deferred loan fees		1,645		1,512
Federal Home Loan Bank stock dividends		613		2,749
Mortgage servicing rights		1,391		1,603
Purchase accounting adjustment		199		62
Prepaid expenses		227		228
Unrealized gain on securities available for sale		513		—
Deferred tax liabilities		4,588		6,154
Net deferred tax asset	$	1,151	$	1,555

Summary of Difference in Effective Tax Rates and Statutory Federal Income Tax Rate of 21%

Effective tax rates differ from the statutory federal income tax rate of 21% for 2019 and 2018 due to the following:

	For the Three Months Ended June 30,
	2019						2018
	Dollars			Rate			Dollars			Rate
	(Dollars in thousands)
Tax at statutory rate:	$	2,686			21.00	%	$	2,469			21.00	%
Increase (decrease) due to:
Tax exempt income		(33	)		(0.26	)%		(147	)		(1.26	)%
Increase (decrease) due to:
Life insurance		(83	)		(0.65	)%		(91	)		(0.77	)%
Stock compensation		(22	)		(0.17	)%		(4	)		(0.03	)%
Reversal of disproportionate tax effect		(145	)		(1.13	)%		—			—	%
Other		(100	)		(0.78	)%		(13	)		(0.11	)%
Income tax provision	$	2,303			18.01	%	$	2,214			18.83	%

	For the Six Months Ended June 30,
	2019						2018
	Dollars			Rate			Dollars			Rate
	(Dollars in thousands)
Tax at statutory rate:	$	4,896			21.00	%	$	4,641			21.00	%
Increase (decrease) due to:
Tax exempt income		(93	)		(0.40	)%		(181	)		(0.82	)%
Increase (decrease) due to:
Life insurance		(164	)		(0.70	)%		(182	)		(0.82	)%
Stock compensation		(80	)		(0.34	)%		(132	)		(0.60	)%
Reversal of disproportionate tax effect		(145	)		(0.62	)%		—			—	%
Other		(243	)		(1.05	)%		(143	)		(0.65	)%
Income tax provision	$	4,171			17.89	%	$	4,003			18.11	%

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GOODWILL AND INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Change in Goodwill

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

	June 30, 2019		December 31, 2018
	(In thousands)
Beginning of the year	$	20,221	$	20,221
Impairment	—		—
End of the year	$	20,221	$	20,221

Schedule of Acquired Intangible Assets

Acquired Intangible Assets:

	June 30, 2019				December 31, 2018
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
	(In thousands)
Amortized intangible assets:
Core deposit intangibles	$	11,184	$	9,745	$	11,184	$	9,581
Customer list intangible		2,547		424		2,547		333
Total	$	13,731	$	10,169	$	13,731	$	9,914

Estimated Amortization Expense

Estimated amortization expense for the remainder of 2019 and the next five years is as follows:

Remainder of 2019	$	255,000
2020		510,000
2021		510,000
2022		510,000
2023		510,000
2024		510,000

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DERIVATIVES (Tables)

6 Months Ended

Jun. 30, 2019

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Summary Information About Purchased and Written Options

Summary information about purchased and written options is as follows:

	June 30, 2019		December 31, 2018
	(Dollars in thousands)
Notional amount of purchased/written option	$	12,882	$	13,024
Weighted average maturity	1.0 years		1.6 years
Fair value of purchased/written option	$	279	$	261

Freestanding Derivative Assets and Liabilities Not Designated as Hedges

The following table reflects the fair value and location in the consolidated statement of financial condition of interest rate caps, along with purchased and written certificates of deposit options:

Included in other assets:

	June 30, 2019		December 31, 2018
	(Dollars in thousands)
Freestanding derivative assets not designated as hedges:
Purchased certificate of deposit option	$	279	$	261

Included in other liabilities:

	June 30, 2019		December 31, 2018
	(Dollars in thousands)
Freestanding derivative liabilities not designated as hedges:
Written certificate of deposit option	$	279	$	261

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LEASES (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Summary of Future Minimum Lease Payments under Non-Cancellable Leases

Future minimum lease payments under non-cancellable leases with initial or remaining lease terms in excess of one year at June 30, 2019 are as follows:

Year	(Dollars in thousands)
Remainder of 2019	$	667
2020		1,231
2021		994
2022		779
2023		424
2024 and thereafter		1,626
Total lease payments		5,721
Less:  Interest		(519	)
Present value of lease liabilities	$	5,202

Rent expense was $259,000 and $542,000 for the three and six months ended June 30, 2018.  Rent commitments under noncancelable operating leases for offices were as follows as of December 31, 2018, before considering renewal options that generally are present:

Year	(Dollars in thousands)
2019	$	1,085
2020		949
2021		892
2022		651
2023		346
Thereafter		867
Total	$	4,790

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Basis of Presentation - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2019 RetailBankingOffice
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Number of retail banking offices	33
HSB Insurance, Inc. [Member]
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Operations commenced date	Jun. 01, 2017
Ohio [Member]
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Number of retail banking offices	32
Pennsylvania [Member]
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Number of retail banking offices	1

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Recent Accounting Developments - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Increase in right of use asset due to adopting new standard	$ 4,800
Other assets	32,924		$ 23,060
Increase in lease liability due to adopting new standard	$ 5,202
ASU 2016-02 [Member]
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Increase in right of use asset due to adopting new standard		$ 5,200
Other assets		300
Increase in lease liability due to adopting new standard		$ 5,500

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Stock Compensation - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Apr. 30, 2015	Apr. 26, 2007
Stock Option [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Outstanding nonvested stock options	0		0
Weighted average remaining life for outstanding stock			4 years 14 days
Exercise price range, lower range limit			$ 1.20
Exercise price range, upper range limit			$ 9.66
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 156,000	$ 229,000	$ 299,000	$ 471,000
Expected additional expense for 2019	$ 261,000		$ 261,000
Nonvested shares	123,378		123,378		210,713
Expected to vest shares during remainder of 2019			21,953
Expected to vest shares during 2020			35,233
Expected to vest shares during 2021			58,834
Expected to vest shares during 2022			7,358
Expected additional expense for 2020	$ 321,000		$ 321,000
Expected additional expense for 2021	153,000		153,000
Expected additional expense for 2022	$ 43,000		$ 43,000
Total average per share fair value of shares vested	$ 9.36		$ 9.62
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
2015 Long Term Incentive Compensation Plan [Member] | Stock Option [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Granted	0	0	0	50,000
Option expiry term (Years)			10 years
Stock-based compensation expense		$ 19,000	$ 6,000	$ 32,000
Expected additional expense for 2019	$ 0		$ 0
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	$ 44,000	95,000	$ 70,000	190,000
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	217,000	426,000	$ 917,000	871,000
Long Term Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 184,000	$ 212,000	$ 366,000	$ 381,000

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Stock Compensation - Summary of Option Activity in 2015 Plan, 2007 Plan and 1999 Plan (Detail) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Shares, Outstanding at beginning of year	223,432
Shares, Exercised	(59,600)
Shares, Outstanding at end of period	163,832
Shares, Shares subject to options exercisable at end of period	163,832
Weighted average exercise price, Outstanding at beginning of year	$ 3.93
Weighted average exercise price, Exercised	2.03
Weighted average exercise price, Outstanding at end of period	4.63
Weighted average exercise price, Shares subject to options exercisable at end of period	$ 4.63
Aggregate intrinsic value, Outstanding at end of period	$ 815
Aggregate intrinsic value, Shares subject to options exercisable at end of period	$ 815

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Stock Compensation - Information Related to Stock Options (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Intrinsic value of options exercised	$ 438,540	$ 450,486
Cash received from option exercises	122,000	232,000
Tax benefit realized from option exercises	$ 15,565	$ 67,298
Weighted average fair value of options granted, per share		$ 1.54

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Stock Compensation - Information Related to Stock Options Granted (Detail) - Stock Option [Member]	6 Months Ended
	Jun. 30, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rate	2.69%
Expected term (years)	5 years
Expected stock volatility	19.86%
Dividend yield	2.48%

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Stock Compensation - Summary of Changes in Company's Nonvested Restricted Shares (Detail) - Restricted Stock [Member]	6 Months Ended
	Jun. 30, 2019 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Nonvested shares, Beginning balance | shares	210,713
Shares, Granted | shares	30,458
Shares, Vested | shares	(116,959)
Shares, Forfeited | shares	(834)
Shares, Nonvested shares, Ending balance | shares	123,378
Weighted average grant date fair value, Nonvested shares, Beginning balance | $ / shares	$ 8.15
Weighted average grant date fair value, Granted | $ / shares	9.42
Weighted average grant date fair value, Vested | $ / shares	6.92
Weighted average grant date fair value, Forfeited | $ / shares	9.10
Weighted average grant date fair value, Nonvested shares, Ending balance | $ / shares	$ 9.63

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Revenue Recognition - Additional Information (Detail) - ASC 606 [Member]	6 Months Ended
	Jun. 30, 2019
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Percentage of insurance agency income derived from direct-bill customers	75.00%
Percentage of insurance agency income derived from agency-billed customer	25.00%
Percentage of trust fee income recognized	85.00%

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Securities - Components of Available for Sale Portfolio (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Schedule of Available-for-sale Securities [Line Items]
Total amortized cost	$ 316,567	$ 246,426
Available-for-sale securities, Gross unrealized gains	4,173	277
Available-for-sale securities, Gross unrealized losses	(1,731)	(5,060)
Available-for-sale securities, Total fair value	319,009	241,643
U.S. Treasury and Agency Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Total amortized cost	64,337	97,785
Available-for-sale securities, Gross unrealized gains	1,453
Available-for-sale securities, Gross unrealized losses		(2,204)
Available-for-sale securities, Total fair value	65,790	95,581
States and Municipalities [Member]
Schedule of Available-for-sale Securities [Line Items]
Total amortized cost	35,085	48,167
Available-for-sale securities, Gross unrealized gains	940	107
Available-for-sale securities, Gross unrealized losses		(528)
Available-for-sale securities, Total fair value	36,025	47,746
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Total amortized cost	13,204	2,000
Available-for-sale securities, Gross unrealized gains	159	4
Available-for-sale securities, Gross unrealized losses	(3)
Available-for-sale securities, Total fair value	13,360	2,004
Collateralized Mortgage Obligations (CMO) [Member]
Schedule of Available-for-sale Securities [Line Items]
Total amortized cost	54,773	21,979
Available-for-sale securities, Gross unrealized gains	1,356	143
Available-for-sale securities, Gross unrealized losses	(22)	(14)
Available-for-sale securities, Total fair value	56,107	22,108
Mortgage-Backed Securities (MBS) [Member]
Schedule of Available-for-sale Securities [Line Items]
Total amortized cost	149,168	76,495
Available-for-sale securities, Gross unrealized gains	265	23
Available-for-sale securities, Gross unrealized losses	(1,706)	(2,314)
Available-for-sale securities, Total fair value	$ 147,727	$ 74,204

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Securities - Additional Information (Detail) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2015	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Investments Debt And Equity Securities [Abstract]
Held to maturity securities transferred to available for sale, amortized cost	$ 74,600,000
Held to maturity securities transferred to available for sale, fair value	72,500,000
Securities pledged for public funds	160,100,000			$ 160,100,000		$ 108,700,000
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	42,600,000	$ 5,700,000		58,300,000	$ 10,400,000
Gross gains realized on sales of securities available for sale	180,000	94,000		324,000	233,000
Gross losses realized on sales of securities available for sale	$ 32,000	$ 0		$ 32,000	$ 0

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Securities - Components of Held to Maturity Securities Portfolio (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Schedule Of Held To Maturity Securities [Line Items]
Held to maturity securities, Total amortized cost		$ 77,491
Held to maturity securities, Gross unrecognized gains		20
Held to maturity securities, Gross unrecognized losses		(2,436)
Held to maturity securities, Fair value	$ 0	75,075
Mortgage-Backed Securities (MBS) [Member]
Schedule Of Held To Maturity Securities [Line Items]
Held to maturity securities, Total amortized cost		64,442
Held to maturity securities, Gross unrecognized losses		(2,327)
Held to maturity securities, Fair value		62,115
States and Municipalities [Member]
Schedule Of Held To Maturity Securities [Line Items]
Held to maturity securities, Total amortized cost		13,049
Held to maturity securities, Gross unrecognized gains		20
Held to maturity securities, Gross unrecognized losses		(109)
Held to maturity securities, Fair value		$ 12,960

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Securities - Debt Securities Available for Sale by Contractual Maturity (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Available For Sale Securities Debt Maturities [Abstract]
Due in one year or less, amortized cost	$ 2,000
Due after one year through five years, amortized cost	19,010
Due after five years through ten years, amortized cost	60,026
Due after ten years, amortized cost	31,590
MBS and CMO, amortized cost	203,941
Total amortized cost	316,567	$ 246,426
Due in one year or less, fair value	2,021
Due after one year through five years, fair value	19,349
Due after five years through ten years, fair value	61,309
Due after ten years, fair value	32,496
MBS and CMO, fair value	203,834
Total fair value	$ 319,009	$ 241,643

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Securities - Securities Available for Sale in Unrealized Loss Position (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Schedule of Available-for-sale Securities [Line Items]
Fair value, Less than 12 months	$ 8,306	$ 14,950
Unrealized loss, Less than 12 months	(25)	(53)
Fair value, 12 months or more	108,254	193,973
Unrealized loss, 12 months or more	(1,706)	(5,007)
Total Fair value	116,560	208,923
Total, unrealized loss	(1,731)	(5,060)
U.S. Treasury and Agency Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, 12 months or more		95,581
Unrealized loss, 12 months or more		(2,204)
Total Fair value		95,581
Total, unrealized loss		(2,204)
States and Municipalities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, Less than 12 months		9,475
Unrealized loss, Less than 12 months		(39)
Fair value, 12 months or more		24,850
Unrealized loss, 12 months or more		(489)
Total Fair value		34,325
Total, unrealized loss		(528)
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, Less than 12 months	503
Unrealized loss, Less than 12 months	(3)
Total Fair value	503
Total, unrealized loss	(3)
Mortgage-Backed Securities (MBS) [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, 12 months or more	108,254	73,542
Unrealized loss, 12 months or more	(1,706)	(2,314)
Total Fair value	108,254	73,542
Total, unrealized loss	(1,706)	(2,314)
Collateralized Mortgage Obligations (CMO) [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, Less than 12 months	7,803	5,475
Unrealized loss, Less than 12 months	(22)	(14)
Total Fair value	7,803	5,475
Total, unrealized loss	$ (22)	$ (14)

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Securities - Securities Held to Maturity in Unrecognized Loss Position (Detail) $ in Thousands	Dec. 31, 2018 USD ($)
Schedule Of Held To Maturity Securities [Line Items]
Fair value, Less than 12 months	$ 4,253
Unrealized loss, Less than 12 months	(48)
Fair value, 12 months or more	65,640
Unrealized loss, 12 months or more	(3,272)
Total fair value	69,893
Total unrealized loss	(3,320)
Mortgage-Backed Securities (MBS) [Member]
Schedule Of Held To Maturity Securities [Line Items]
Fair value, 12 months or more	62,115
Unrealized loss, 12 months or more	(3,203)
Total fair value	62,115
Total unrealized loss	(3,203)
States and Municipalities [Member]
Schedule Of Held To Maturity Securities [Line Items]
Fair value, Less than 12 months	4,253
Unrealized loss, Less than 12 months	(48)
Fair value, 12 months or more	3,525
Unrealized loss, 12 months or more	(69)
Total fair value	7,778
Total unrealized loss	$ (117)

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Loans - Schedule of Portfolio of Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	$ 2,242,731		$ 2,190,662
Allowance for loan losses	20,482	$ 20,446	20,443	$ 21,405	$ 21,610	$ 21,202
Deferred loan costs, net	(7,077)		(6,623)
Total	13,405		13,820
Loans, net	2,229,326		2,176,842
Commercial Loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	974,306		942,931
Allowance for loan losses	12,547	12,114	11,875	12,808	13,095	12,542
Commercial Loans [Member] | Multifamily [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	154,630		134,143
Commercial Loans [Member] | Nonresidential [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	414,780		409,979
Commercial Loans [Member] | Land [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	16,955		16,830
Commercial Loans [Member] | Construction [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	138,043		141,686
Commercial Loans [Member] | Secured [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	243,044		233,306
Commercial Loans [Member] | Unsecured [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	6,854		6,987
Residential Mortgage Loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	988,894		970,690
Allowance for loan losses	5,458	5,823	5,923	5,867	5,701	5,860
Residential Mortgage Loans [Member] | Construction [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	46,196		43,435
Residential Mortgage Loans [Member] | One-to Four-Family [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	942,698		927,255
Consumer Loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	279,531		277,041
Allowance for loan losses	2,477	$ 2,509	2,645	$ 2,730	$ 2,814	$ 2,800
Consumer Loans [Member] | Home Equity [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	184,676		185,661
Consumer Loans [Member] | Auto [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	82,715		78,686
Consumer Loans [Member] | Marine [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	1,097		1,206
Consumer Loans [Member] | Recreational Vehicle [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	3,433		4,347
Consumer Loans [Member] | Other [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Total loans	$ 7,610		$ 7,141

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Loans - Investment in Loans by Portfolio Segment and Based on Impairment (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance, Beginning balance	$ 20,446	$ 21,610	$ 20,443	$ 21,202
Provision (recovery) for loan losses	(51)	(138)	10	269
Charge-offs	(194)	(254)	(627)	(525)
Recoveries	281	187	656	459
Allowance, Ending balance	20,482	21,405	20,482	21,405
Allowance, Loans individually evaluated for impairment	1,816	1,661	1,816	1,661	$ 1,201
Allowance, Loans collectively evaluated for impairment	18,666		18,666		19,242
Period-end balances, Loans individually evaluated for impairment	25,139		25,139		20,594
Period-end balances, Loans collectively evaluated for impairment	2,217,592		2,217,592		2,170,068
Total loans	2,242,731		2,242,731		2,190,662
Commercial Loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance, Beginning balance	12,114	13,095	11,875	12,542
Provision (recovery) for loan losses	263	(263)	444	133
Charge-offs		(75)	(88)	(75)
Recoveries	170	51	316	208
Allowance, Ending balance	12,547	12,808	12,547	12,808
Allowance, Loans individually evaluated for impairment	857	514	857	514	103
Allowance, Loans collectively evaluated for impairment	11,690		11,690		11,772
Period-end balances, Loans individually evaluated for impairment	7,680		7,680		2,017
Period-end balances, Loans collectively evaluated for impairment	966,626		966,626		940,914
Total loans	974,306		974,306		942,931
Residential Mortgage Loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance, Beginning balance	5,823	5,701	5,923	5,860
Provision (recovery) for loan losses	(312)	180	(490)	87
Charge-offs	(79)	(96)	(99)	(181)
Recoveries	26	82	124	101
Allowance, Ending balance	5,458	5,867	5,458	5,867
Allowance, Loans individually evaluated for impairment	669	834	669	834	798
Allowance, Loans collectively evaluated for impairment	4,789		4,789		5,125
Period-end balances, Loans individually evaluated for impairment	12,402		12,402		13,086
Period-end balances, Loans collectively evaluated for impairment	976,492		976,492		957,604
Total loans	988,894		988,894		970,690
Consumer Loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance, Beginning balance	2,509	2,814	2,645	2,800
Provision (recovery) for loan losses	(2)	(55)	56	49
Charge-offs	(115)	(83)	(440)	(269)
Recoveries	85	54	216	150
Allowance, Ending balance	2,477	2,730	2,477	2,730
Allowance, Loans individually evaluated for impairment	290	$ 313	290	$ 313	300
Allowance, Loans collectively evaluated for impairment	2,187		2,187		2,345
Period-end balances, Loans individually evaluated for impairment	5,057		5,057		5,491
Period-end balances, Loans collectively evaluated for impairment	274,474		274,474		271,550
Total loans	$ 279,531		$ 279,531		$ 277,041

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Loans - Presentation of Loans Individually Evaluated for Impairment by Class (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	$ 13,645	$ 14,637	$ 13,645	$ 14,637	$ 12,801
With no specific allowance recorded, Recorded Investment	8,698	8,565	8,698	8,565	6,499
With no specific allowance recorded, Average Recorded Investment	7,088	8,111	6,892	8,038
With no specific allowance recorded, Interest Income Recognized	59	39	93	93
With no specific allowance recorded, Cash Basis Income Recognized	59	39	83	76
With a specific allowance recorded, Unpaid Principal Balance	17,444	15,820	17,444	15,820	14,768
With a specific allowance recorded, Recorded Investment	16,441	15,213	16,441	15,213	14,095
With a specific allowance recorded, Allowance for Loan Losses Allocated	1,816	1,661	1,816	1,661	1,201
With a specific allowance recorded, Average Recorded Investment	16,068	16,322	15,408	16,998
With a specific allowance recorded, Interest Income Recognized	281	183	544	421
With a specific allowance recorded, Cash Basis Income Recognized	279	180	485	361
Total Unpaid Principal Balance	31,089	30,457	31,089	30,457	27,569
Total Recorded Investment	25,139	23,778	25,139	23,778	20,594
Total Average Recorded Investment	23,156	24,433	22,300	25,036
Total Interest Income Recognized	340	222	637	514
Total Cash Basis Income Recognized	338	219	568	437
Commercial Loans [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	6,252	5,120	6,252	5,120	4,758
With no specific allowance recorded, Recorded Investment	2,801	1,044	2,801	1,044	300
With no specific allowance recorded, Average Recorded Investment	1,464	988	1,076	1,007
With no specific allowance recorded, Interest Income Recognized	16	1	18	4
With no specific allowance recorded, Cash Basis Income Recognized	16	1	18	4
With a specific allowance recorded, Unpaid Principal Balance	5,654	2,476	5,654	2,476	2,175
With a specific allowance recorded, Recorded Investment	4,879	2,075	4,879	2,075	1,717
With a specific allowance recorded, Allowance for Loan Losses Allocated	857	514	857	514	103
With a specific allowance recorded, Average Recorded Investment	4,015	2,161	3,248	2,210
With a specific allowance recorded, Interest Income Recognized	134	22	182	52
With a specific allowance recorded, Cash Basis Income Recognized	134	22	174	44
Commercial Loans [Member] | Multifamily [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	155	28	155	28	443
With no specific allowance recorded, Recorded Investment					170
With no specific allowance recorded, Average Recorded Investment			57
With no specific allowance recorded, Interest Income Recognized			1
With no specific allowance recorded, Cash Basis Income Recognized			1
With a specific allowance recorded, Unpaid Principal Balance		422		422
With a specific allowance recorded, Recorded Investment		275		275
With a specific allowance recorded, Allowance for Loan Losses Allocated		28		28
With a specific allowance recorded, Average Recorded Investment		275		275
Commercial Loans [Member] | Nonresidential [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	2,942	630	2,942	630	588
With no specific allowance recorded, Recorded Investment	2,801	137	2,801	137	130
With no specific allowance recorded, Average Recorded Investment	1,464	78	1,019	100
With no specific allowance recorded, Interest Income Recognized	16	1	17	4
With no specific allowance recorded, Cash Basis Income Recognized	16	1	17	4
With a specific allowance recorded, Unpaid Principal Balance		1,235		1,235	1,186
With a specific allowance recorded, Recorded Investment		1,232		1,232	1,186
With a specific allowance recorded, Allowance for Loan Losses Allocated		13		13	12
With a specific allowance recorded, Average Recorded Investment	1,359	1,323	1,301	1,356
With a specific allowance recorded, Interest Income Recognized		22	45	52
With a specific allowance recorded, Cash Basis Income Recognized		22	37	44
Commercial Loans [Member] | Land [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance		706		706
With no specific allowance recorded, Average Recorded Investment		5		6
Commercial Loans [Member] | Construction [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	2,446	2,457	2,446	2,457	2,447
Commercial Loans [Member] | Secured [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	235	1,115	235	1,115	806
With no specific allowance recorded, Recorded Investment		907		907
With no specific allowance recorded, Average Recorded Investment		905		901
With a specific allowance recorded, Unpaid Principal Balance	5,654	819	5,654	819	989
With a specific allowance recorded, Recorded Investment	4,879	568	4,879	568	531
With a specific allowance recorded, Allowance for Loan Losses Allocated	857	473	857	473	91
With a specific allowance recorded, Average Recorded Investment	2,656	563	1,947	579
With a specific allowance recorded, Interest Income Recognized	134		137
With a specific allowance recorded, Cash Basis Income Recognized	134		137
Commercial Loans [Member] | Unsecured [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	474	184	474	184	474
Residential Mortgage Loans [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	5,579	6,918	5,579	6,918	5,840
With no specific allowance recorded, Recorded Investment	4,792	5,994	4,792	5,994	4,908
With no specific allowance recorded, Average Recorded Investment	4,554	5,683	4,672	5,602
With no specific allowance recorded, Interest Income Recognized	35	30	64	74
With no specific allowance recorded, Cash Basis Income Recognized	35	30	55	58
With a specific allowance recorded, Unpaid Principal Balance	7,741	8,574	7,741	8,574	8,298
With a specific allowance recorded, Recorded Investment	7,610	8,461	7,610	8,461	8,178
With a specific allowance recorded, Allowance for Loan Losses Allocated	669	834	669	834	798
With a specific allowance recorded, Average Recorded Investment	8,027	9,340	8,077	9,793
With a specific allowance recorded, Interest Income Recognized	92	98	239	233
With a specific allowance recorded, Cash Basis Income Recognized	91	96	202	195
Residential Mortgage Loans [Member] | One-to Four-Family [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	5,579	6,918	5,579	6,918	5,840
With no specific allowance recorded, Recorded Investment	4,792	5,994	4,792	5,994	4,908
With no specific allowance recorded, Average Recorded Investment	4,554	5,683	4,672	5,602
With no specific allowance recorded, Interest Income Recognized	35	30	64	74
With no specific allowance recorded, Cash Basis Income Recognized	35	30	55	58
With a specific allowance recorded, Unpaid Principal Balance	7,741	8,574	7,741	8,574	8,298
With a specific allowance recorded, Recorded Investment	7,610	8,461	7,610	8,461	8,178
With a specific allowance recorded, Allowance for Loan Losses Allocated	669	834	669	834	798
With a specific allowance recorded, Average Recorded Investment	8,027	9,340	8,077	9,793
With a specific allowance recorded, Interest Income Recognized	92	98	239	233
With a specific allowance recorded, Cash Basis Income Recognized	91	96	202	195
Consumer Loans [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	1,814	2,599	1,814	2,599	2,203
With no specific allowance recorded, Recorded Investment	1,105	1,527	1,105	1,527	1,291
With no specific allowance recorded, Average Recorded Investment	1,070	1,440	1,144	1,429
With no specific allowance recorded, Interest Income Recognized	8	8	11	15
With no specific allowance recorded, Cash Basis Income Recognized	8	8	10	14
With a specific allowance recorded, Unpaid Principal Balance	4,049	4,770	4,049	4,770	4,295
With a specific allowance recorded, Recorded Investment	3,952	4,677	3,952	4,677	4,200
With a specific allowance recorded, Allowance for Loan Losses Allocated	290	313	290	313	300
With a specific allowance recorded, Average Recorded Investment	4,026	4,821	4,083	4,995
With a specific allowance recorded, Interest Income Recognized	55	63	123	136
With a specific allowance recorded, Cash Basis Income Recognized	54	62	109	122
Consumer Loans [Member] | Home Equity [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	1,041	1,496	1,041	1,496	1,084
With no specific allowance recorded, Recorded Investment	926	1,224	926	1,224	957
With no specific allowance recorded, Average Recorded Investment	889	1,101	912	1,087
With no specific allowance recorded, Interest Income Recognized	6	6	7	11
With no specific allowance recorded, Cash Basis Income Recognized	6	6	6	10
With a specific allowance recorded, Unpaid Principal Balance	3,620	4,282	3,620	4,282	3,925
With a specific allowance recorded, Recorded Investment	3,535	4,201	3,535	4,201	3,842
With a specific allowance recorded, Allowance for Loan Losses Allocated	274	295	274	295	283
With a specific allowance recorded, Average Recorded Investment	3,600	4,338	3,680	4,505
With a specific allowance recorded, Interest Income Recognized	49	57	110	123
With a specific allowance recorded, Cash Basis Income Recognized	48	56	97	110
Consumer Loans [Member] | Auto [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	33	29	33	29	25
With no specific allowance recorded, Recorded Investment	25	22	25	22	17
With no specific allowance recorded, Average Recorded Investment	20	42	19	33
Consumer Loans [Member] | Marine [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	354	553	354	553	502
With no specific allowance recorded, Recorded Investment	105	181	105	181	145
With no specific allowance recorded, Average Recorded Investment	105	181	118	181
With a specific allowance recorded, Unpaid Principal Balance	86	95	86	95	91
With a specific allowance recorded, Recorded Investment	86	95	86	95	91
With a specific allowance recorded, Allowance for Loan Losses Allocated	1	1	1	1	1
With a specific allowance recorded, Average Recorded Investment	88	96	89	97
With a specific allowance recorded, Interest Income Recognized	1	1	2	2
With a specific allowance recorded, Cash Basis Income Recognized	1	1	2	2
Consumer Loans [Member] | Recreational Vehicle [Member]
Financing Receivable Impaired [Line Items]
With no specific allowance recorded, Unpaid Principal Balance	386	520	386	520	592
With no specific allowance recorded, Recorded Investment	49	100	49	100	172
With no specific allowance recorded, Average Recorded Investment	56	108	95	122
With no specific allowance recorded, Interest Income Recognized	2	2	4	4
With no specific allowance recorded, Cash Basis Income Recognized	2	2	4	4
With a specific allowance recorded, Unpaid Principal Balance	343	393	343	393	279
With a specific allowance recorded, Recorded Investment	331	381	331	381	267
With a specific allowance recorded, Allowance for Loan Losses Allocated	15	17	15	17	$ 16
With a specific allowance recorded, Average Recorded Investment	338	387	314	393
With a specific allowance recorded, Interest Income Recognized	5	5	11	11
With a specific allowance recorded, Cash Basis Income Recognized	$ 5	5	$ 10	10
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, Average Recorded Investment		$ 8		$ 6

XML

Loans - Loans in Process of Foreclosure (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018
Financing Receivable Impaired [Line Items]
Unpaid Principal Balance	$ 31,089	$ 27,569	$ 30,457
Total Recorded Investment	25,139	20,594
Residential Mortgage Loans [Member] | Loans In Process Of Foreclosure [Member]
Financing Receivable Impaired [Line Items]
Unpaid Principal Balance	3,847	3,687
Total Recorded Investment	3,686	3,636
Consumer Loans [Member] | Loans In Process Of Foreclosure [Member]
Financing Receivable Impaired [Line Items]
Unpaid Principal Balance	358	700
Total Recorded Investment	$ 350	$ 685

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	Jun. 30, 2019	Dec. 31, 2018
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	$ 12,872	$ 6,539
Commercial Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	7,366	715
Commercial Loans [Member] | Multifamily [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual		171
Commercial Loans [Member] | Nonresidential [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	2,688	13
Commercial Loans [Member] | Secured [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	4,678	531
Residential Mortgage Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	4,365	4,170
Residential Mortgage Loans [Member] | One-to Four-Family [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	4,365	4,170
Consumer Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	1,141	1,654
Consumer Loans [Member] | Home Equity [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	936	1,223
Consumer Loans [Member] | Auto [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	57	131
Consumer Loans [Member] | Marine [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	105	145
Consumer Loans [Member] | Recreational Vehicle [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	34	145
Consumer Loans [Member] | Other [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Financing receivable, recorded investment, Nonaccrual	$ 9	$ 10

XML

Loans - Presentation of Age Analysis of Past-Due Loans, Segregated by Class of Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	$ 13,031	$ 10,895
Current Loans	2,229,700	2,179,767
Total loans	2,242,731	2,190,662
30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	4,697	3,856
60-89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	2,942	1,289
Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	5,392	5,750
Commercial Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	2,280	897
Current Loans	972,026	942,034
Total loans	974,306	942,931
Commercial Loans [Member] | 30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	128	195
Commercial Loans [Member] | 60-89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,725
Commercial Loans [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	427	702
Commercial Loans [Member] | Multifamily [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due		171
Current Loans	154,630	133,972
Total loans	154,630	134,143
Commercial Loans [Member] | Multifamily [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due		171
Commercial Loans [Member] | Nonresidential [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,785
Current Loans	412,995	409,979
Total loans	414,780	409,979
Commercial Loans [Member] | Nonresidential [Member] | 30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	104
Commercial Loans [Member] | Nonresidential [Member] | 60-89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,681
Commercial Loans [Member] | Land [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Current Loans	16,955	16,830
Total loans	16,955	16,830
Commercial Loans [Member] | Construction [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Current Loans	138,043	141,686
Total loans	138,043	141,686
Commercial Loans [Member] | Secured [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	495	726
Current Loans	242,549	232,580
Total loans	243,044	233,306
Commercial Loans [Member] | Secured [Member] | 30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	24	195
Commercial Loans [Member] | Secured [Member] | 60-89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	44
Commercial Loans [Member] | Secured [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	427	531
Commercial Loans [Member] | Unsecured [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Current Loans	6,854	6,987
Total loans	6,854	6,987
Residential Mortgage Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	7,691	6,491
Current Loans	981,203	964,199
Total loans	988,894	970,690
Residential Mortgage Loans [Member] | 30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	3,059	2,139
Residential Mortgage Loans [Member] | 60-89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	765	882
Residential Mortgage Loans [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	3,867	3,470
Residential Mortgage Loans [Member] | Construction [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Current Loans	46,196	43,435
Total loans	46,196	43,435
Residential Mortgage Loans [Member] | One-to Four-Family [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	7,691	6,491
Current Loans	935,007	920,764
Total loans	942,698	927,255
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	3,059	2,139
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	765	882
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	3,867	3,470
Consumer Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	3,060	3,507
Current Loans	276,471	273,534
Total loans	279,531	277,041
Consumer Loans [Member] | 30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,510	1,522
Consumer Loans [Member] | 60-89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	452	407
Consumer Loans [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,098	1,578
Consumer Loans [Member] | Home Equity [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	2,378	2,100
Current Loans	182,298	183,561
Total loans	184,676	185,661
Consumer Loans [Member] | Home Equity [Member] | 30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,166	658
Consumer Loans [Member] | Home Equity [Member] | 60-89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	319	295
Consumer Loans [Member] | Home Equity [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	893	1,147
Consumer Loans [Member] | Automobile [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	360	526
Current Loans	82,355	78,160
Total loans	82,715	78,686
Consumer Loans [Member] | Automobile [Member] | 30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	254	283
Consumer Loans [Member] | Automobile [Member] | 60-89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	49	112
Consumer Loans [Member] | Automobile [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	57	131
Consumer Loans [Member] | Marine [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	105	145
Current Loans	992	1,061
Total loans	1,097	1,206
Consumer Loans [Member] | Marine [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	105	145
Consumer Loans [Member] | Recreational Vehicle [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	166	693
Current Loans	3,267	3,654
Total loans	3,433	4,347
Consumer Loans [Member] | Recreational Vehicle [Member] | 30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	59	548
Consumer Loans [Member] | Recreational Vehicle [Member] | 60-89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	73
Consumer Loans [Member] | Recreational Vehicle [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	34	145
Consumer Loans [Member] | Other [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	51	43
Current Loans	7,559	7,098
Total loans	7,610	7,141
Consumer Loans [Member] | Other [Member] | 30-59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	31	33
Consumer Loans [Member] | Other [Member] | 60-89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	11
Consumer Loans [Member] | Other [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	$ 9	$ 10

XML

Loans - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Accounts Notes And Loans Receivable [Line Items]
Allowance for loan losses	$ 20,482,000	$ 21,405,000	$ 20,482,000	$ 21,405,000	$ 20,446,000	$ 20,443,000	$ 21,610,000	$ 21,202,000
Amounts charged off	194,000	254,000	$ 627,000	525,000
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 impairment loans, outstanding	2,242,731,000		$ 2,242,731,000			2,190,662,000
Purchased Credit Impaired Loans [Member]
Accounts Notes And Loans Receivable [Line Items]
Increment in allowance for loan losses	0	0
Purchased credit impairment loans, outstanding	0		0			0
Troubled Debt Restructuring [Member]
Accounts Notes And Loans Receivable [Line Items]
Recorded investment in trouble debt restructuring	15,300,000		15,300,000			16,600,000
Allowance for loan losses	989,000		989,000			1,100,000
Commitment to lend additional amounts	45,000		45,000			$ 41,000
Increment in allowance for loan losses	1,000	3,000	1,000	3,000
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
Amounts charged off		$ 0		$ 0

XML

Loans - Loans by Class Modified as Troubled Debt Restructurings (Detail) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019 USD ($) Loan	Jun. 30, 2018 USD ($) Loan	Jun. 30, 2019 USD ($) Loan	Jun. 30, 2018 USD ($) Loan
Financing Receivable Modifications [Line Items]
Number of Loans | Loan	2	5	3	6
Pre-Modification Outstanding Recorded Investment	$ 864	$ 634	$ 1,199	$ 758
Post-Modification Recorded Investment	$ 868	$ 660	$ 1,223	$ 784
Commercial Loans [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Loan	1		1	1
Pre-Modification Outstanding Recorded Investment	$ 824		$ 824	$ 124
Post-Modification Recorded Investment	$ 824		$ 824	$ 124
Commercial Loans [Member] | Nonresidential [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Loan				1
Pre-Modification Outstanding Recorded Investment				$ 124
Post-Modification Recorded Investment				$ 124
Commercial Loans [Member] | Secured [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Loan	1		1
Pre-Modification Outstanding Recorded Investment	$ 824		$ 824
Post-Modification Recorded Investment	$ 824		$ 824
Residential Mortgage Loans [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Loan		3	1	3
Pre-Modification Outstanding Recorded Investment		$ 521	$ 335	$ 521
Post-Modification Recorded Investment		$ 547	$ 355	$ 547
Residential Mortgage Loans [Member] | One-to Four-Family [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Loan		3	1	3
Pre-Modification Outstanding Recorded Investment		$ 521	$ 335	$ 521
Post-Modification Recorded Investment		$ 547	$ 355	$ 547
Consumer Loans [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Loan	1	2	1	2
Pre-Modification Outstanding Recorded Investment	$ 40	$ 113	$ 40	$ 113
Post-Modification Recorded Investment	$ 44	$ 113	$ 44	$ 113
Consumer Loans [Member] | Home Equity [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Loan	1	2	1	2
Pre-Modification Outstanding Recorded Investment	$ 40	$ 113	$ 40	$ 113
Post-Modification Recorded Investment	$ 44	$ 113	$ 44	$ 113

XML

Loans - Loans by Class Modified as Troubled Debt Restructurings with Payment Default (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($) Loan
Financing Receivable Modifications [Line Items]
Number of loans | Loan	3
Recorded Investment | $	$ 478
Commercial Loans [Member]
Financing Receivable Modifications [Line Items]
Number of loans | Loan	1
Recorded Investment | $	$ 121
Commercial Loans [Member] | Nonresidential [Member]
Financing Receivable Modifications [Line Items]
Number of loans | Loan	1
Recorded Investment | $	$ 121
Residential Mortgage Loans [Member]
Financing Receivable Modifications [Line Items]
Number of loans | Loan	2
Recorded Investment | $	$ 357
Residential Mortgage Loans [Member] | One-to Four-Family [Member]
Financing Receivable Modifications [Line Items]
Number of loans | Loan	2
Recorded Investment | $	$ 357

XML

Loans - Risk Category of Loans by Class of Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Financing Receivable Recorded Investment [Line Items]
Total loans	$ 2,242,731	$ 2,190,662
Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	2,174,006	2,130,851
Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	31,716	23,341
Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	37,009	36,470
Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	37,009	36,470
Commercial Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	974,306	942,931
Commercial Loans [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	911,932	890,320
Commercial Loans [Member] | Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	31,620	22,750
Commercial Loans [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	30,754	29,861
Commercial Loans [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	30,754	29,861
Commercial Loans [Member] | Multifamily [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	154,630	134,143
Commercial Loans [Member] | Multifamily [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	142,730	133,972
Commercial Loans [Member] | Multifamily [Member] | Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	10,824
Commercial Loans [Member] | Multifamily [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	1,076	171
Commercial Loans [Member] | Multifamily [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	1,076	171
Commercial Loans [Member] | Nonresidential [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	414,780	409,979
Commercial Loans [Member] | Nonresidential [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	389,262	378,160
Commercial Loans [Member] | Nonresidential [Member] | Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	15,346	18,420
Commercial Loans [Member] | Nonresidential [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	10,172	13,399
Commercial Loans [Member] | Nonresidential [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	10,172	13,399
Commercial Loans [Member] | Land [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	16,955	16,830
Commercial Loans [Member] | Land [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	16,955	16,830
Commercial Loans [Member] | Construction [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	138,043	141,686
Commercial Loans [Member] | Construction [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	135,658	139,540
Commercial Loans [Member] | Construction [Member] | Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	2,385	2,146
Commercial Loans [Member] | Secured [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	243,044	233,306
Commercial Loans [Member] | Secured [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	220,556	214,924
Commercial Loans [Member] | Secured [Member] | Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	3,065	2,184
Commercial Loans [Member] | Secured [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	19,423	16,198
Commercial Loans [Member] | Secured [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	19,423	16,198
Commercial Loans [Member] | Unsecured [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	6,854	6,987
Commercial Loans [Member] | Unsecured [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	6,771	6,894
Commercial Loans [Member] | Unsecured [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	83	93
Commercial Loans [Member] | Unsecured [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	83	93
Residential Mortgage Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	988,894	970,690
Residential Mortgage Loans [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	983,728	965,129
Residential Mortgage Loans [Member] | Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	96	591
Residential Mortgage Loans [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	5,070	4,970
Residential Mortgage Loans [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	5,070	4,970
Residential Mortgage Loans [Member] | Construction [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	46,196	43,435
Residential Mortgage Loans [Member] | Construction [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	46,196	43,435
Residential Mortgage Loans [Member] | One-to Four-Family [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	942,698	927,255
Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	937,532	921,694
Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	96	591
Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	5,070	4,970
Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	5,070	4,970
Consumer Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	279,531	277,041
Consumer Loans [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	278,346	275,402
Consumer Loans [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	1,185	1,639
Consumer Loans [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	1,185	1,639
Consumer Loans [Member] | Home Equity [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	184,676	185,661
Consumer Loans [Member] | Home Equity [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	183,700	184,438
Consumer Loans [Member] | Home Equity [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	976	1,223
Consumer Loans [Member] | Home Equity [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	976	1,223
Consumer Loans [Member] | Auto [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	82,715	78,686
Consumer Loans [Member] | Auto [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	82,658	78,551
Consumer Loans [Member] | Auto [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	57	135
Consumer Loans [Member] | Auto [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	57	135
Consumer Loans [Member] | Marine [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	1,097	1,206
Consumer Loans [Member] | Marine [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	992	1,061
Consumer Loans [Member] | Marine [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	105	145
Consumer Loans [Member] | Marine [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	105	145
Consumer Loans [Member] | Recreational Vehicle [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	3,433	4,347
Consumer Loans [Member] | Recreational Vehicle [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	3,399	4,221
Consumer Loans [Member] | Recreational Vehicle [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	34	126
Consumer Loans [Member] | Recreational Vehicle [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	34	126
Consumer Loans [Member] | Other [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	7,610	7,141
Consumer Loans [Member] | Other [Member] | Unclassified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	7,597	7,131
Consumer Loans [Member] | Other [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	13	10
Consumer Loans [Member] | Other [Member] | Classified [Member]
Financing Receivable Recorded Investment [Line Items]
Total loans	$ 13	$ 10

XML

Loans - Accretable Yield or Income Expected to be Collected (Detail) - Purchased Credit Impaired Loans [Member] - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Financing Receivable Impaired [Line Items]
Beginning of period	$ 110	$ 110
Accretion of income	6	6
Balance at end of period	$ 104	$ 104

XML

Loans - Carrying Amount of Purchased Credit Impaired Loans (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Financing Receivable Impaired [Line Items]
Beginning Balance	$ 2,197,285
Loans purchased during the period	26,509	$ 18,246
Ending Balance	$ 2,249,808
Purchased Credit Impaired Loans [Member]
Financing Receivable Impaired [Line Items]
Beginning Balance		1,194
Ending Balance		$ 1,091

XML

Mortgage Banking Activities - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Mortgage Loan Activity [Line Items]
Mortgage loans serviced for others	$ 1,400.0	$ 1,400.0
Fair value of mortgage servicing rights	10.5	12.2
FHLMC, FNMA and Private Investor [Member]
Mortgage Loan Activity [Line Items]
Customer escrow balances	$ 15.1	$ 16.3

XML

Mortgage Banking Activities - Principal Balances of Mortgage Servicing Rights (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Mortgage loan portfolios serviced for:
Mortgage loans serviced for others	$ 1,400,000	$ 1,400,000
FHLMC [Member]
Mortgage loan portfolios serviced for:
Mortgage loans serviced for others	1,018,365	1,016,097
FNMA [Member]
Mortgage loan portfolios serviced for:
Mortgage loans serviced for others	395,438	347,294
Private Investor [Member]
Mortgage loan portfolios serviced for:
Mortgage loans serviced for others	$ 11,641	$ 15,049

XML

Mortgage Banking Activities - Capitalized Mortgage Servicing Rights (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Mortgage Banking [Abstract]
Balance, beginning of period	$ 8,041,000	$ 6,843,000	$ 7,704,000	$ 6,681,000
Originations	703,000	641,000	1,486,000	1,303,000
Amortized to expense	(553,000)	(542,000)	(999,000)	(1,042,000)
Balance, end of period	8,191,000	6,942,000	8,191,000	6,942,000
Less valuation allowance	(1,565,000)	(20,000)	(1,565,000)	(20,000)	$ (569,000)	$ (70,000)	$ (9,000)
Net balance	$ 6,626,000	$ 6,922,000	$ 6,626,000	$ 6,922,000

XML

Mortgage Banking Activities - Valuation Allowance for Mortgage Servicing Rights (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Mortgage Banking [Abstract]
Balance, beginning of period	$ (569,000)		$ (70,000)	$ (9,000)
Impairment charges	(996,000)	$ (20,000)	(1,495,000)	(20,000)
Recoveries				9,000
Balance, end of period	$ (1,565,000)	$ (20,000)	$ (1,565,000)	$ (20,000)

XML

Mortgage Banking Activities - Key Economic Assumptions in Measuring Value of Mortgage Servicing Rights (Detail)	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Mortgage Banking [Abstract]
Weighted average prepayment rate	266.00%	145.00%
Weighted average life (in years)	5 years 3 months 7 days	7 years 3 months 3 days
Weighted average discount rate	11.00%	11.00%

XML

Other Real Estate Owned and Other Repossessed Assets - Real Estate Owned and Other Repossessed Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Other Real Estate And Foreclosed Assets [Abstract]
Real estate owned and other repossessed assets	$ 1,113		$ 1,396
Valuation allowance	(158)	$ (318)	(308)	$ (248)	$ (287)	$ (403)
End of period	$ 955		$ 1,088

XML

Other Real Estate Owned and Other Repossessed Assets - Valuation Allowance Related to Real Estate Owned (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Other Real Estate And Foreclosed Assets [Abstract]
Beginning of period	$ 318,000	$ 287,000	$ 308,000	$ 403,000
Additions charged to expense	17,000	10,000	36,000	33,000
Sales of real estate owned with a valuation allowance	(177,000)	(49,000)	(186,000)	(188,000)
End of period	$ 158,000	$ 248,000	$ 158,000	$ 248,000

XML

Other Real Estate Owned and Other Repossessed Assets - Expenses Related to Foreclosed and Repossessed Assets (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Other Real Estate And Foreclosed Assets [Abstract]
Net loss on sales	$ 16,000	$ 103,000	$ 28,000	$ 158,000
Provision for unrealized losses	17,000	10,000	36,000	33,000
Operating expenses, net of rental income	17,000	34,000	56,000	70,000
Total expenses	$ 50,000	$ 147,000	$ 120,000	$ 261,000

XML

Fair Value Measurement - Additional Information (Detail) - USD ($)	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Increase in fair value				$ 250,000
Transfers between level 1 and level 2	$ 0	$ 0				$ 0
Fair value of the collateral dependent loans, net carrying amount	4,200,000		$ 432,000	4,200,000	$ 432,000	967,000
Specific allowance for collateral dependent loans	828,000		490,000	$ 828,000	490,000	69,000
Discount applied to appraisals for estimated selling costs percentage				10.00%
Net impairment reflected in mortgage servicing rights valuation and other income	996,000		20,000	$ 1,495,000	11,000
Mortgage servicing rights valuation allowance	1,565,000	$ 569,000	20,000	1,565,000	20,000	70,000	$ 9,000
Other real estate owned carried at fair value	129,000		286,000	129,000	286,000	302,000
Valuation allowance related to other real estate owned	158,000		248,000	158,000	248,000	308,000
Additions charged to expense	17,000		10,000	36,000	33,000
Collateral Dependent Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Increase (decrease) in provision for loan losses	86,000		252,000	122,000	479,000
Mortgage Servicing Rights [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Mortgage servicing rights	2,600,000		$ 240,000	2,600,000	$ 240,000
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	Jun. 30, 2019	Dec. 31, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Trading securities, Fair Value	$ 705	$ 364
Available for sale securities, Fair value	319,009	241,643
Loans held for sale, at fair value	97,477	91,472
Fair Value, Measurements, Recurring [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Trading securities, Fair Value	705	364
Loans held for sale, at fair value	97,477	91,472
Purchased certificate of deposit option	279	261
Interest rate swaps	121	56
Written certificate of deposit option	279	261
Interest rate swaps	133	62
Fair Value, Measurements, Recurring [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]
Trading securities, Fair Value	234	364
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]
Trading securities, Fair Value	471
Loans held for sale, at fair value	27,912	11,221
Purchased certificate of deposit option	279	261
Interest rate swaps	121	56
Written certificate of deposit option	279	261
Interest rate swaps	133	62
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	69,565	80,251
Fair Value, Measurements, Recurring [Member] | U.S. Treasury and Agency Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available for sale securities, Fair value	65,790	95,581
Fair Value, Measurements, Recurring [Member] | U.S. Treasury and Agency Securities [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	65,790	95,581
Fair Value, Measurements, Recurring [Member] | States and Municipalities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available for sale securities, Fair value	36,025	47,746
Fair Value, Measurements, Recurring [Member] | States and Municipalities [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	36,025	47,746
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available for sale securities, Fair value	13,360	2,004
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [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	13,360	2,004
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available for sale securities, Fair value	56,107	22,108
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [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	56,107	22,108
Fair Value, Measurements, Recurring [Member] | Mortgage-Backed Securities (MBS) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available for sale securities, Fair value	147,727	74,204
Fair Value, Measurements, Recurring [Member] | Mortgage-Backed Securities (MBS) [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	$ 147,727	$ 74,204

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		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Included in change in fair value of loans held for sale			$ 3,241	$ (2,197)
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	$ 65,796	$ 64,552	80,251	65,016
Included in change in fair value of loans held for sale	1,581	19	2,650	(2,139)
Originations/Draws on construction perm loans	30,633	35,517	53,730	62,327
Sales	(28,445)	(23,398)	(67,066)	(48,514)
Balance of recurring Level 3 assets at end of period	$ 69,565	$ 76,690	$ 69,565	$ 76,690

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	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Construction loans held for sale, at fair value	$ 97,477	$ 91,472
Construction [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Construction loans held for sale, at fair value	97,477	91,472
Fair Value, Measurements, Recurring [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Construction loans held for sale, at fair value	97,477	91,472
Fair Value, Measurements, Recurring [Member] | Comparable Sales [Member] | Construction [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Construction loans held for sale, at fair value	$ 69,565	$ 80,251
Fair Value, Measurements, Recurring [Member] | Comparable Sales [Member] | Construction [Member] | Minimum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair Value Inputs, Time discount	0.00%	0.00%
Fair Value, Measurements, Recurring [Member] | Comparable Sales [Member] | Construction [Member] | Maximum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair Value Inputs, Time discount	0.39%	1.05%

XML

Fair Value Measurement - Assets and Liabilities Measured at Fair Value on Non-recurring Basis (Detail) - USD ($)	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018
Mortgage Servicing Rights [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Mortgage servicing rights	$ 2,600,000		$ 240,000
Fair Value, Measurements, Nonrecurring [Member] | Secured Commercial [Member] | Commercial Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans	3,807,000
Fair Value, Measurements, Nonrecurring [Member] | Secured Commercial [Member] | Significant Unobservable Inputs (Level 3) [Member] | Commercial Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans	3,807,000
Fair Value, Measurements, Nonrecurring [Member] | One-to Four-Family [Member] | Residential Mortgage Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans	241,000	$ 540,000
Other real estate owned, net	66,000	121,000
Fair Value, Measurements, Nonrecurring [Member] | One-to Four-Family [Member] | Significant Unobservable Inputs (Level 3) [Member] | Residential Mortgage Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans	241,000	540,000
Other real estate owned, net	66,000	121,000
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	105,000
Fair Value, Measurements, Nonrecurring [Member] | Marine [Member] | Significant Unobservable Inputs (Level 3) [Member] | Consumer Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans	105,000
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	4,000
Fair Value, Measurements, Nonrecurring [Member] | Recreational Vehicle [Member] | Significant Unobservable Inputs (Level 3) [Member] | Consumer Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans	4,000
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	2,610,000	2,990,000
Fair Value, Measurements, Nonrecurring [Member] | Mortgage Servicing Rights [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Mortgage servicing rights	2,610,000	2,990,000
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	63,000
Fair Value, Measurements, Nonrecurring [Member] | Construction [Member] | Significant Unobservable Inputs (Level 3) [Member] | Commercial Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Other real estate owned, net	$ 63,000
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		419,000
Fair Value, Measurements, Nonrecurring [Member] | Secured [Member] | Significant Unobservable Inputs (Level 3) [Member] | Commercial Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans		419,000
Fair Value, Measurements, Nonrecurring [Member] | Auto [Member] | Commercial Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Other real estate owned, net		181,000
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		8,000
Fair Value, Measurements, Nonrecurring [Member] | Auto [Member] | Significant Unobservable Inputs (Level 3) [Member] | Commercial Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Other real estate owned, net		181,000
Fair Value, Measurements, Nonrecurring [Member] | Auto [Member] | Significant Unobservable Inputs (Level 3) [Member] | Consumer Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans		$ 8,000

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] $ in Thousands	Jun. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
Impaired Loans [Member] | Secured Commercial [Member] | Commercial Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair Value	$ 3,807
Impaired Loans [Member] | Secured Commercial [Member] | Commercial Loans [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Valuation Technique(s)	ucfc:ValuationTechniqueSalesComparisonApproachMember
Impaired Loans [Member] | Secured Commercial [Member] | Commercial Loans [Member] | Minimum [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Adjustment for differences between comparable sales	0.0000
Impaired Loans [Member] | Secured Commercial [Member] | Commercial Loans [Member] | Maximum [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Adjustment for differences between comparable sales	0.3500
Impaired Loans [Member] | Secured Commercial [Member] | Commercial Loans [Member] | Weighted Average [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Adjustment for differences between comparable sales	0.1500
Impaired Loans [Member] | Marine [Member] | Consumer Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair Value	$ 105
Impaired Loans [Member] | Marine [Member] | Consumer Loans [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Valuation Technique(s)	ucfc:ValuationTechniqueSalesComparisonApproachMember
Impaired Loans [Member] | Marine [Member] | Consumer Loans [Member] | Minimum [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Adjustment for differences between comparable sales	0.0000
Impaired Loans [Member] | Marine [Member] | Consumer Loans [Member] | Maximum [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Adjustment for differences between comparable sales	0.1785
Impaired Loans [Member] | Marine [Member] | Consumer Loans [Member] | Weighted Average [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Adjustment for differences between comparable sales	0.0893
Impaired Loans [Member] | Recreational Vehicle [Member] | Consumer Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair Value	$ 4
Impaired Loans [Member] | Recreational Vehicle [Member] | Consumer Loans [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Valuation Technique(s)	ucfc:ValuationTechniqueSalesComparisonApproachMember
Impaired Loans [Member] | Recreational Vehicle [Member] | Consumer Loans [Member] | Minimum [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Adjustment for differences between comparable sales	0.0000
Impaired Loans [Member] | Recreational Vehicle [Member] | Consumer Loans [Member] | Maximum [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Adjustment for differences between comparable sales	0.1785
Impaired Loans [Member] | Recreational Vehicle [Member] | Consumer Loans [Member] | Weighted Average [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Adjustment for differences between comparable sales	0.0893
Impaired Loans [Member] | Nonresidential [Member] | Commercial Loans [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Valuation Technique(s)	ucfc:ValuationTechniqueSalesComparisonApproachMember
Impaired Loans [Member] | Auto [Member] | Consumer Loans [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Valuation Technique(s)	ucfc:ValuationTechniqueSalesComparisonApproachMember
Impaired Loans [Member] | Secured [Member] | Commercial Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair Value		$ 419
Impaired Loans [Member] | Secured [Member] | Commercial Loans [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Valuation Technique(s)		ucfc:ValuationTechniqueSalesComparisonApproachMember
Impaired Loans [Member] | Secured [Member] | Commercial Loans [Member] | Minimum [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Adjustment for differences between comparable sales		0.0000
Impaired Loans [Member] | Secured [Member] | Commercial Loans [Member] | Maximum [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Adjustment for differences between comparable sales		0.6400
Impaired Loans [Member] | Secured [Member] | Commercial Loans [Member] | Weighted Average [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Adjustment for differences between comparable sales		0.1600
Impaired Loans [Member] | Residential Mortgage Loans [Member] | One-to Four-Family [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair Value	$ 241	$ 540
Impaired Loans [Member] | Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Valuation Technique(s)	ucfc:ValuationTechniqueSalesComparisonApproachMember	ucfc:ValuationTechniqueSalesComparisonApproachMember
Impaired Loans [Member] | Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Minimum [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Adjustment for differences between comparable sales	0.0000	0.0000
Impaired Loans [Member] | Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Maximum [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Adjustment for differences between comparable sales	0.1077	0.1077
Impaired Loans [Member] | Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Weighted Average [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Adjustment for differences between comparable sales	0.0427	0.0427
Other Real Estate Owned [Member] | Construction [Member] | Commercial Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair Value	$ 63	$ 181
Other Real Estate Owned [Member] | Construction [Member] | Commercial Loans [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Valuation Technique(s)	ucfc:ValuationTechniqueSalesComparisonApproachMember	ucfc:ValuationTechniqueSalesComparisonApproachMember
Other Real Estate Owned [Member] | Construction [Member] | Commercial Loans [Member] | Minimum [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Adjustment for differences between comparable sales	0.0000	0.0000
Other Real Estate Owned [Member] | Construction [Member] | Commercial Loans [Member] | Maximum [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Adjustment for differences between comparable sales	0.5000	0.5290
Other Real Estate Owned [Member] | Construction [Member] | Commercial Loans [Member] | Weighted Average [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Adjustment for differences between comparable sales	0.4585	0.5241
Other Real Estate Owned [Member] | Residential Mortgage Loans [Member] | One-to Four-Family [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Fair Value	$ 66	$ 121
Other Real Estate Owned [Member] | Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Valuation Technique(s)	ucfc:ValuationTechniqueSalesComparisonApproachMember	ucfc:ValuationTechniqueSalesComparisonApproachMember
Other Real Estate Owned [Member] | Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Minimum [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Adjustment for differences between comparable sales	0.0000	0.0000
Other Real Estate Owned [Member] | Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Maximum [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Adjustment for differences between comparable sales	0.1422	0.1343
Other Real Estate Owned [Member] | Residential Mortgage Loans [Member] | One-to Four-Family [Member] | Weighted Average [Member] | Sales Comparison Approach [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Adjustment for differences between comparable sales	0.1422	0.1343

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Fair Value Measurement - Fair Value Option for Newly Originated Residential Mortgage and Permanent Construction Loans Held for Sale (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Aggregate fair value	$ 97,477	$ 91,472
Construction [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Aggregate fair value	97,477	91,472
Contractual balance	90,495	87,731
Gain	$ 6,982	$ 3,741

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Fair Value Measurement - Amount of Gains and Losses from Changes in Fair Value Included in Earnings (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Change in fair value			$ 3,241	$ (2,197)
Construction [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Change in fair value	$ 2,162	$ 285	3,241	(2,197)
Total change in fair value	$ 2,162	$ 285	$ 3,241	$ (2,197)

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Fair Value Measurement - Carrying Value and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and cash equivalents, Carrying Value	$ 54,562	$ 60,985	$ 66,977	$ 46,880
Trading securities, Fair Value	705	364
Available for sale securities, Fair value	319,009	241,643
Held to maturity securities, Carrying Value		77,491
Loans held for sale, at fair value	97,477	91,472
Loans, net, Carrying Value	2,229,326	2,176,842
FHLB stock, Carrying Value	14,059	19,144
Accrued interest receivable, Carrying Value	9,184	9,080
Advance payments by borrowers for taxes and insurance, Carrying Value	(25,335)	(27,192)
Accrued interest payable, Carrying Value	(1,378)	(1,279)
Held to maturity securities, Fair value	0	75,075
Reported Value Measurement [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and cash equivalents, Carrying Value	54,562	60,985
Trading securities, Fair Value	705	364
Available for sale securities, Fair value	319,009	241,643
Held to maturity securities, Carrying Value		77,491
Loans held for sale, at fair value	97,477	91,472
Loans, net, Carrying Value	2,229,326	2,176,842
Purchased certificate of deposit option, Carrying Value	279	261
Interest rate swaps, Carrying Value	121	56
Checking, savings and money market accounts, Carrying Value	(1,427,080)	(1,305,439)
Certificates of deposit, Carrying Value	(832,099)	(907,781)
FHLB advances, Carrying Value	(233,000)	(243,000)
Repurchase agreements and other, Carrying Value	(146)	(224)
Written certificate of deposit option, Carrying Value	(279)	(261)
Interest rate swaps, Carrying Value	(133)	(62)
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]
Trading securities, Fair Value	234	364
Cash and cash equivalents, Fair Value	54,562	60,985
Checking, savings and money market accounts, Fair Value	(1,427,080)	(1,305,439)
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]
Trading securities, Fair Value	471
Available for sale securities, Fair value	319,009	241,643
Loans held for sale, at fair value	27,912	11,221
Held to maturity securities, Fair value		71,206
Purchased certificate of deposit option, Fair Value	279	261
Interest rate swaps	121	56
Certificates of deposit, Fair Value	(832,695)	(904,198)
FHLB advances, Fair Value	(233,000)	(243,000)
Repurchase agreements and other, Fair Value	(143)	(213)
Written certificate of deposit option, Fair Value	(279)	(261)
Interest rate swaps, Fair Value	(133)	(62)
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	69,565	80,251
Held to maturity securities, Fair value		3,869
Loans, net, Fair Value	$ 2,225,425	$ 2,138,319

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Statement of Cash Flows Supplemental Disclosure - Supplemental Disclosures of Cash Flow Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Supplemental Cash Flow Information [Abstract]
Interest on deposits and borrowings	$ 14,872	$ 10,016
Income taxes	7,125	500
Supplemental schedule of noncash activities:
Transfers from loans to real estate owned and other repossessed assets	653	489
Transfer from held to maturity securities to available for sale securities	74,560
Accretion of securities held to maturity	42	$ 77
Right of use asset recorded	$ 5,469

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Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Stock Option [Member]
Earnings Per Common Share [Line Items]
Number of anti-dilutive shares related to stock options	50,000	50,000	50,000	50,000

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Earnings Per Share - Computation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings Per Share [Abstract]
Net income per consolidated statements of income	$ 10,486	$ 8,656	$ 9,541	$ 8,556	$ 19,142	$ 18,097
Net income allocated to participating securities	(27)		(41)		(66)	(91)
Net income allocated to common stock	10,459		9,500		19,076	18,006
Distributed earnings allocated to common stock	3,407		2,982		6,827	5,954
Undistributed earnings allocated to common stock	7,052		6,518		12,249	12,052
Net income allocated to common stock	$ 10,459		$ 9,500		$ 19,076	$ 18,006
Weighted average common shares outstanding, including shares considered participating securities	48,589		49,906		48,805	49,877
Less: Average participating securities	(126)		(212)		(167)	(250)
Weighted average shares	48,463		49,694		48,638	49,627
Basic earnings per common share	$ 0.22		$ 0.19		$ 0.39	$ 0.36
Weighted average common shares outstanding for basic earnings per common share	48,463		49,694		48,638	49,627
Add: Dilutive effects of assumed exercises of stock options and LTIP awards	181		250		201	262
Weighted average shares and dilutive potential common shares	48,644		49,944		48,839	49,889
Diluted earnings per common share	$ 0.22		$ 0.19		$ 0.39	$ 0.36

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Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Equity [Abstract]
Reclassification of net gains or (losses) included in other comprehensive income	$ 148	$ 94	$ 292	$ 233

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Other Comprehensive Income (Loss) - Other Comprehensive Income (Loss) Components and Related Tax Effects (Detail) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	$ 314,709	$ 309,334	$ 296,195	$ 294,265	$ 309,334	$ 294,265
Other comprehensive income before reclassifications	3,344		(1,359)		6,454	(5,269)
Accretion of unrealized losses of securities transferred from available for sale to held to maturity recognized in other comprehensive income	9		31		33	61
Reclassification adjustment for gains realized in income	(117)		(74)		(231)	(184)
Total other comprehensive income (loss)	3,236	3,020	(1,402)	(3,990)	6,256	(5,392)
Balance	317,554	314,709	301,484	296,195	317,554	301,484
Unrealized Gains (Losses) on Securities Available for Sale [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(785)	(3,781)	(4,924)	(904)	(3,781)	(904)
Other comprehensive income before reclassifications	3,344		(1,359)		6,454	(5,269)
Transfer of held to maturity securities to available for sale	(512)				(512)
Reclassification adjustment for gains realized in income	(117)		(74)		(231)	(184)
Total other comprehensive income (loss)	2,715		(1,433)		5,711	(5,453)
Balance	1,930	(785)	(6,357)	(4,924)	1,930	(6,357)
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)	(17,110)	(17,110)
Balance	(17,110)	(17,110)	(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	(521)	(545)	(641)	(671)	(545)	(671)
Accretion of unrealized losses of securities transferred from available for sale to held to maturity recognized in other comprehensive income	9		31		33	61
Transfer of held to maturity securities to available for sale	512				512
Total other comprehensive income (loss)	521		31		545	61
Balance		(521)	(610)	(641)		(610)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(18,416)	(21,436)	(22,675)	(18,685)	(21,436)	(18,685)
Total other comprehensive income (loss)	3,236	3,020	(1,402)	(3,990)
Balance	$ (15,180)	$ (18,416)	$ (24,077)	$ (22,675)	$ (15,180)	$ (24,077)

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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				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items]
Net gains on securities available for sale	$ 148		$ 94		$ 292	$ 233
Tax expense	(2,303)		(2,214)		(4,171)	(4,003)
Net income	10,486	$ 8,656	9,541	$ 8,556	19,142	18,097
Amount Reclassified From Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items]
Net income	(117)		(74)		(231)	(184)
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	(148)		(94)		(292)	(233)
Tax expense	$ 31		$ 20		$ 61	$ 49

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Regulatory Capital Requirements - Additional Information (Detail)	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Banking And Thrift [Abstract]
Capital adequacy requirements	The Basel III Capital Rules establish a common equity Tier 1 minimum capital requirement (4.5% of risk-weighted assets)and a minimum Tier 1 capital to risk-based assets requirement (6% of risk-weighted assets), and assign 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, 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	2.50%	1.875%

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Regulatory Capital Requirements - Actual and Statutory Required Capital Amounts and Ratios (Detail) - Home Savings [Member] - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Total capital (to risk-weighted assets), Actual Amount	$ 310,134	$ 301,864
Tier 1 capital (to risk-weighted assets), Actual Amount	289,697	281,475
Common equity Tier 1 capital (to risk-weighted assets), Actual Amount	289,697	281,475
Tier 1 capital (to average assets), Actual Amount	$ 289,697	$ 281,475
Total capital (to risk-weighted assets), Actual Ratio	14.17%	14.30%
Tier 1 capital (to risk-weighted assets), Actual Ratio	13.23%	13.34%
Common equity Tier 1 capital (to risk-weighted assets), Actual Ratio	13.23%	13.34%
Tier 1 capital (to average assets), Actual Ratio	10.32%	10.11%
Total capital (to risk-weighted assets), Minimum Capital Requirements Per Regulation Amount	$ 175,147	$ 168,841
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirements Per Regulation Amount	131,360	126,631
Common equity Tier 1 capital (to risk-weighted assets), Minimum Capital Requirements Per Regulation Amount	98,520	94,973
Tier 1 capital (to average assets), Minimum Capital Requirements Per Regulation Amount	$ 112,334	$ 111,318
Total capital (to risk-weighted assets), Minimum Capital Requirements Per Regulation Ratio	8.00%	8.00%
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirements Per Regulation Ratio	6.00%	6.00%
Common equity Tier 1 capital (to risk-weighted assets), Minimum Capital Requirements Per Regulation Ratio	4.50%	4.50%
Tier 1 capital (to average assets), Minimum Capital Requirements Per Regulation Ratio	4.00%	4.00%
Total capital (to risk-weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 218,934	$ 211,051
Tier 1 capital (to risk-weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	175,147	168,841
Common equity Tier 1 capital (to risk-weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	142,307	137,183
Tier 1 capital (to average assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 140,418	$ 139,147
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	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Total shareholders' equity	$ 317,554	$ 314,709	$ 309,334	$ 301,484	$ 296,195	$ 294,265
Accumulated other comprehensive income	(15,180)		(21,436)
Home Savings [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Total shareholders' equity	295,306		281,006
Accumulated other comprehensive income	15,195		21,450
Intangible assets	(20,804)		(20,981)
Tier 1 Capital	289,697		281,475
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets	20,437		20,389
Total risk-based capital	$ 310,134		$ 301,864

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Regulatory Capital Requirements - Components of Regulatory Capital (Parenthetical) (Detail)	Jun. 30, 2019	Dec. 31, 2018
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	Jun. 30, 2019	Dec. 31, 2018
Deferred tax assets:
Loan loss reserves	$ 4,331	$ 4,293
Depreciation	314	363
Other real estate owned valuation	33	65
Unrealized loss on securities available for sale		1,005
Unrealized loss on securities held to maturity		184
Interest on nonaccrual loans	338	425
Net operating loss carryforward		409
Accrued bonuses	719	840
Other	4	125
Deferred tax assets	5,739	7,709
Deferred tax liabilities:
Deferred loan fees	1,645	1,512
Federal Home Loan Bank stock dividends	613	2,749
Mortgage servicing rights	1,391	1,603
Purchase accounting adjustment	199	62
Prepaid expenses	227	228
Unrealized gain on securities available for sale	513
Deferred tax liabilities	4,588	6,154
Net deferred tax asset	$ 1,151	$ 1,555

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Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Net deferred tax asset	$ 1,151		$ 1,151		$ 1,555
Federal income tax rate	21.00%	21.00%	21.00%	21.00%

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Income Taxes - Summary of Difference in Effective Tax Rates and Statutory Federal Income Tax Rate of 21% (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Tax at statutory rate, amount	$ 2,686	$ 2,469	$ 4,896	$ 4,641
Tax exempt income, amount	(33)	(147)	(93)	(181)
Life insurance, amount	(83)	(91)	(164)	(182)
Stock compensation, amount	(22)	(4)	(80)	(132)
Reversal of disproportionate tax effect, amount	(145)		(145)
Other, amount	(100)	(13)	(243)	(143)
Income tax provision, total amount	$ 2,303	$ 2,214	$ 4,171	$ 4,003
Tax at statutory rate, rate	21.00%	21.00%	21.00%	21.00%
Tax exempt income, rate	(0.26%)	(1.26%)	(0.40%)	(0.82%)
Life insurance, rate	(0.65%)	(0.77%)	(0.70%)	(0.82%)
Stock compensation, rate	(0.17%)	(0.03%)	(0.34%)	(0.60%)
Reversal of disproportionate tax effect, rate	(1.13%)		(0.62%)
Other, rate	(0.78%)	(0.11%)	(1.05%)	(0.65%)
Income tax provision, total rate	18.01%	18.83%	17.89%	18.11%

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Goodwill and Intangible Assets - Change in Goodwill (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Beginning of the year	$ 20,221	$ 20,221
End of the year	$ 20,221	$ 20,221

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Goodwill and Intangible Assets - Additional Information (Detail)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) ReportingUnit	Jun. 30, 2018 USD ($)	Dec. 31, 2018 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	127,000	$ 132,000	255,000	$ 245,000
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	Jun. 30, 2019	Dec. 31, 2018
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 13,731	$ 13,731
Accumulated Amortization	10,169	9,914
Core deposit intangibles [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	11,184	11,184
Accumulated Amortization	9,745	9,581
Customer list intangible [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,547	2,547
Accumulated Amortization	$ 424	$ 333

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Goodwill and Intangible Assets - Estimated Amortization Expense (Detail)	Jun. 30, 2019 USD ($)
Intangible Assets Accumulated Amortization [Abstract]
Remainder of 2019	$ 255,000
2020	510,000
2021	510,000
2022	510,000
2023	510,000
2024	$ 510,000

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Qualified Affordable Housing Project Investments - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Schedule Of Equity Method Investments [Line Items]
Investment in qualified affordable housing projects	$ 11,000,000		$ 11,000,000		$ 8,400,000
Unfunded commitments of investments in qualified affordable housing projects	8,500,000		8,500,000		$ 6,500,000
Recognized amortization expense included in income tax expense	172,000	$ 122,000	345,000	$ 243,000
Recognized tax credits and other benefits from investment in affordable housing tax credits	197,000	138,000	394,000	277,000
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

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Derivatives - Summary Information About Purchased and Written Options (Detail) - Written And Purchased Certificate Of Deposit Option [Member] - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Non Hedging Interest Rate Derivatives [Line Items]
Notional amount of purchased/written option	$ 12,882	$ 13,024
Weighted average maturity	1 year	1 year 7 months 6 days
Fair value of purchased/written option	$ 279	$ 261

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Derivatives - Additional Information (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Commercial Loans [Member] | Interest Rate Swap
Derivative [Line Items]
Derivative notional amount	$ 2,500,000	$ 2,500,000
Interest rate derivative assets, at fair value	121,000	56,000
Interest rate derivative liabilities, at fair value	133,000	62,000
Difference in fair value	12,000	6,000
Written And Purchased Certificate Of Deposit Option [Member]
Derivative [Line Items]
Options increased (decreased)	18,000	(548,000)
Interest rate derivative assets, at fair value	$ 279,000	$ 261,000

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Derivatives - Freestanding Derivative Assets and Liabilities Not Designated as Hedges (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Derivatives Fair Value [Line Items]
Other assets	$ 32,924	$ 23,060
Not Designated as Hedging Instrument [Member] | Purchased Certificate of Deposit Option [Member]
Derivatives Fair Value [Line Items]
Other assets	279	261
Not Designated as Hedging Instrument [Member] | Written Certificate of Deposit Option [Member]
Derivatives Fair Value [Line Items]
Other liabilities	$ 279	$ 261

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Leases - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Lessee Lease Description [Line Items]
Operating lease, option to extend			Operating leases relate primarily to bank branches, office space and license agreements with remaining lease terms of generally 1 to 23 years, which includes options for multiple extensions, with a weighted-average lease term of 7 years.
Operating lease, existence of option to extend			true
Operating lease, weighted average lease term	7 years		7 years
Operating lease, ROU assets	$ 4,800,000		$ 4,800,000
Operating lease, liabilities	5,202,000		5,202,000
Operating lease, expense	$ 343,000		$ 661,000
Operating lease, weighted average discount rate	2.68%		2.68%
Additional operating lease, ROU assets	$ 242,000
Additional operating lease, liabilities	242,000
Right of use asset amortization	298,000		$ 626,000
Short-term lease expense	$ 31,000		$ 62,000
Rent expense		$ 259,000,000		$ 542,000,000
Minimum [Member]
Lessee Lease Description [Line Items]
Remaining lease terms			1 year
Maximum [Member]
Lessee Lease Description [Line Items]
Remaining lease terms			23 years

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Leases - Summary of Future Minimum Lease Payments under Non-Cancellable Leases (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Leases [Abstract]
Remainder of 2019	$ 667
2020	1,231
2021	994
2022	779
2023	424
2024 and thereafter	1,626
Total lease payments	5,721
Less: Interest	(519)
Present value of lease liabilities	$ 5,202
2019		$ 1,085
2020		949
2021		892
2022		651
2023		346
Thereafter		867
Total		$ 4,790