Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 11, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Entity Registrant Name | NORTHRIM BANCORP INC | ||
Entity Central Index Key | 1,163,370 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 6,877,140 | ||
Entity Public Float | $ 166,615,094 | ||
Trading Symbol | NRIM |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 30,989 | $ 36,036 |
Interest bearing deposits in other banks | 27,684 | 36,020 |
Investment securities available for sale | 291,113 | 281,730 |
Investment securities held to maturity | 903 | 2,201 |
Total portfolio investments | 292,016 | 283,931 |
Investment in Federal Home Loan Bank stock | 1,816 | 3,404 |
Loans held for sale | 50,553 | 43,866 |
Loans | 980,787 | 924,504 |
Allowance for loan losses | (18,153) | (16,723) |
Net loans | 962,634 | 907,781 |
Purchased receivables, net | 13,326 | 15,254 |
OREO, net | 3,053 | 4,607 |
Premises and equipment, net | 40,217 | 35,643 |
Mortgage servicing rights | 1,654 | 1,010 |
Goodwill | 22,334 | 22,334 |
Other intangible assets, net | 1,442 | 1,701 |
Other assets | 51,774 | 57,762 |
Total assets | 1,499,492 | 1,449,349 |
LIABILITIES | ||
Demand | 430,191 | 403,523 |
Interest-bearing demand | 209,291 | 185,114 |
Savings | 227,969 | 222,324 |
Money market | 236,675 | 226,574 |
Certificates of deposit less than $100,000 | 52,505 | 58,249 |
Certificates of deposit $100,000 and greater | 84,161 | 83,963 |
Total deposits | 1,240,792 | 1,179,747 |
Securities sold under repurchase agreements | 31,420 | 19,843 |
Borrowings | 2,120 | 26,304 |
Junior subordinated debentures | 18,558 | 18,558 |
Other liabilities | 29,388 | 40,456 |
Total liabilities | $ 1,322,278 | $ 1,284,908 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
SHAREHOLDERS' EQUITY | ||
Preferred stock, $1 par value, 2,500,000 shares authorized, none issued or outstanding | $ 0 | $ 0 |
Common stock, $1 par value, 10,000,000 shares authorized, 6,877,140 and 6,854,189 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively | 6,877 | 6,854 |
Additional paid-in capital | 62,420 | 61,729 |
Retained earnings | 108,150 | 95,493 |
Accumulated other comprehensive income (loss) | (412) | 247 |
Total Northrim BanCorp, Inc. shareholders' equity | 177,035 | 164,323 |
Noncontrolling interest | 179 | 118 |
Total shareholders' equity | 177,214 | 164,441 |
Total liabilities and shareholders' equity | $ 1,499,492 | $ 1,449,349 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 2,500,000 | 2,500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 6,877,140 | 6,854,189 |
Common stock, shares outstanding (in shares) | 6,877,140 | 6,854,189 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Income | |||
Interest and fees on loans | $ 56,166 | $ 51,015 | $ 43,137 |
Interest on investment securities available for sale | 3,393 | 3,042 | 2,603 |
Interest on investment securities held to maturity | 68 | 91 | 111 |
Interest on deposits in other banks | 153 | 198 | 223 |
Total Interest Income | 59,780 | 54,346 | 46,074 |
Interest Expense | |||
Interest expense on deposits, borrowings and junior subordinated debentures | 2,871 | 2,053 | 2,040 |
Net Interest Income | 56,909 | 52,293 | 44,034 |
Provision (benefit) for loan losses | 1,754 | (636) | (635) |
Net Interest Income After Provision (Benefit) for Loan Losses | 55,155 | 52,929 | 44,669 |
Other Operating Income | |||
Mortgage banking income | 29,613 | 2,386 | 0 |
Employee benefit plan income | 3,651 | 3,497 | 2,341 |
Bankcard fees | 2,671 | 2,229 | 2,009 |
Purchased receivable income | 2,287 | 2,074 | 2,797 |
Service charges on deposit accounts | 2,103 | 2,155 | 2,116 |
Gain on sale of securities | 271 | 461 | 333 |
Gain on purchase of mortgage affiliate | 0 | 3,001 | 0 |
Gain on sale of premises and equipment | 0 | 1,115 | 0 |
Equity in earnings from RML | 0 | 894 | 1,227 |
Other income | 4,012 | 3,337 | 2,063 |
Total Other Operating Income | 44,608 | 21,149 | 12,886 |
Other Operating Expense | |||
Salaries and other personnel expense | 43,931 | 27,758 | 23,796 |
Occupancy expense | 6,332 | 4,360 | 3,464 |
Change in fair value of RML earn-out liability | 4,094 | 0 | 0 |
Marketing expense | 2,728 | 2,059 | 1,853 |
Equipment expense | 1,687 | 1,465 | 1,239 |
Professional and outside services | 2,980 | 1,437 | 1,268 |
Software expense | 1,262 | 1,275 | 1,066 |
Insurance expense | 1,339 | 1,031 | 821 |
Internet banking expense | 909 | 900 | 778 |
Reserve (benefit) for purchased receivables | (138) | 704 | 100 |
Intangible asset amortization expense | 258 | 289 | 228 |
Merger and acquisition expense | 0 | 1,962 | 536 |
OREO (income) expense, net rental income and gains on sale | 190 | (416) | (60) |
Other operating expense | 7,073 | 5,214 | 3,808 |
Total Other Operating Expense | 72,645 | 48,038 | 38,897 |
Income Before Provision for Income Taxes | 27,118 | 26,040 | 18,658 |
Provision for income taxes | 8,784 | 8,173 | 6,246 |
Net Income | 18,334 | 17,867 | 12,412 |
Less: Net income attributable to the noncontrolling interest | 551 | 459 | 87 |
Net Income Attributable to Northrim BanCorp, Inc. | $ 17,783 | $ 17,408 | $ 12,325 |
Earnings Per Share, Basic (USD per share) | $ 2.59 | $ 2.57 | $ 1.89 |
Earnings Per Share, Diluted (USD per share) | $ 2.56 | $ 2.54 | $ 1.87 |
Weighted Average Shares Outstanding, Basic (shares) | 6,859,209 | 6,761,328 | 6,518,772 |
Weighted Average Shares Outstanding, Diluted (shares) | 6,948,474 | 6,852,267 | 6,609,950 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 18,334 | $ 17,867 | $ 12,412 |
Other comprehensive loss, net of tax: | |||
Unrealized losses arising during the period | (795) | (237) | (1,204) |
Reclassification of net gains included in net income (net of tax expense $111, $190, and $137 in 2015, 2014 and 2013, respectively) | (160) | (271) | (196) |
Income tax benefit related to unrealized losses | 296 | 86 | 701 |
Other comprehensive income (loss), net of tax | (659) | (422) | (699) |
Comprehensive income | 17,675 | 17,445 | 11,713 |
Less: comprehensive income attributable to the noncontrolling interest | 551 | 459 | 87 |
Comprehensive income attributable to Northrim BanCorp, Inc. | $ 17,124 | $ 16,986 | $ 11,626 |
Consolidated Statements Of Com6
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Reclassification of net gains, tax | $ 111 | $ 190 | $ 137 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Non-controlling Interest |
Beginning balance (in shares) at Dec. 31, 2012 | 6,512,000 | |||||
Beginning balance, value at Dec. 31, 2012 | $ 136,353 | $ 6,512 | $ 53,638 | $ 74,742 | $ 1,368 | $ 93 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cash dividend declared | (4,212) | (4,212) | ||||
Stock-based compensation expense | 506 | 506 | ||||
Exercise of stock options (in shares) | 26,000 | |||||
Exercise of stock options | (129) | $ 26 | (155) | |||
Excess tax benefits from share-based payment arrangements | 100 | 100 | ||||
Distributions to noncontrolling interest | (13) | (13) | ||||
Other comprehensive income (loss), net of tax | (699) | (699) | ||||
Net income attributable to the noncontrolling interest | 87 | 87 | ||||
Net income attributable to Northrim Bancorp, Inc. | 12,325 | 12,325 | ||||
Ending balance, value at Dec. 31, 2013 | 144,318 | $ 6,538 | 54,089 | 82,855 | 669 | 167 |
Ending balance (in shares) at Dec. 31, 2013 | 6,538,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cash dividend declared | (4,770) | (4,770) | ||||
Stock-based compensation expense | 360 | 360 | ||||
Exercise of stock options (in shares) | 26,000 | |||||
Exercise of stock options | 54 | $ 26 | 28 | |||
Excess tax benefits from share-based payment arrangements | 96 | 96 | ||||
Distributions to noncontrolling interest | (508) | (508) | ||||
Other comprehensive income (loss), net of tax | (422) | (422) | ||||
Net income attributable to the noncontrolling interest | 459 | 459 | ||||
Net income attributable to Northrim Bancorp, Inc. | 17,408 | 17,408 | ||||
Purchase of Alaska Pacific (in shares) | 290,000 | |||||
Purchase of Alaska Pacific | 7,446 | $ 290 | 7,156 | |||
Ending balance, value at Dec. 31, 2014 | $ 164,441 | $ 6,854 | 61,729 | 95,493 | 247 | 118 |
Ending balance (in shares) at Dec. 31, 2014 | 6,854,189 | 6,854,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cash dividend declared | $ (5,126) | (5,126) | ||||
Stock-based compensation expense | 608 | 608 | ||||
Exercise of stock options (in shares) | 23,000 | |||||
Exercise of stock options | 50 | $ 23 | 27 | |||
Excess tax benefits from share-based payment arrangements | 56 | 56 | ||||
Distributions to noncontrolling interest | (490) | (490) | ||||
Other comprehensive income (loss), net of tax | (659) | (659) | ||||
Net income attributable to the noncontrolling interest | 551 | 551 | ||||
Net income attributable to Northrim Bancorp, Inc. | 17,783 | 17,783 | ||||
Ending balance, value at Dec. 31, 2015 | $ 177,214 | $ 6,877 | $ 62,420 | $ 108,150 | $ (412) | $ 179 |
Ending balance (in shares) at Dec. 31, 2015 | 6,877,140 | 6,877,000 |
Consolidated Statement Of Cash
Consolidated Statement Of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Operating Activities: | |||
Net income | $ 18,334 | $ 17,867 | $ 12,412 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Gain on sale of securities, net | (271) | (461) | (333) |
Gain on sale of premises and equipment | 0 | (1,115) | 0 |
Gain on purchase of mortgage affiliate | 0 | (3,001) | 0 |
Depreciation and amortization of premises and equipment | 2,264 | 1,865 | 1,793 |
Amortization of software | 179 | 180 | 180 |
Intangible asset amortization | 258 | 289 | 228 |
Amortization of investment security premium, net of discount accretion | (202) | (187) | 22 |
Deferred tax (benefit) liability | 148 | (1,311) | 1,215 |
Stock-based compensation | 608 | 360 | 506 |
Excess tax benefits from share-based payment arrangements | (56) | (96) | (100) |
Deferral of loan fees and costs, net | 61 | 530 | 590 |
Provision (benefit) for loan losses | 1,754 | (636) | (635) |
Reserve (benefit) for purchased receivables | (138) | 704 | 100 |
Purchases of loans held for sale | 0 | (132,013) | (156,521) |
Proceeds from the sale of loans held for sale | 747,128 | 203,404 | 156,925 |
Origination of loans held for sale | (753,815) | (62,652) | 0 |
Gain on sale of other real estate owned | (315) | (631) | (288) |
Impairment on other real estate owned | 361 | 56 | 112 |
Equity in undistributed earnings from mortgage affiliate | 0 | (172) | 200 |
Net changes in assets and liabilities: | |||
(Increase) in accrued interest receivable | (247) | (644) | (111) |
Proceeds from refund of prepaid FDIC premiums | 0 | 0 | 3,405 |
Decrease in other assets | 5,509 | 6,412 | 403 |
Decrease in other liabilities | (11,041) | (8,270) | (1,455) |
Net Cash Provided by Operating Activities | 10,519 | 20,478 | 18,648 |
Investing Activities: | |||
Purchases of investment securities available for sale | (210,308) | (264,943) | (140,856) |
Proceeds from sales/calls/maturities of securities available for sale | 200,343 | 237,425 | 95,199 |
Proceeds from calls/maturities of securities held to maturity | 1,285 | 0 | 535 |
Purchases of domestic certificates of deposit | 0 | (3,500) | (13,500) |
Proceeds from maturities of domestic certificates of deposit | 3,500 | 13,500 | 13,500 |
Proceeds from redemption of FHLB stock | 1,588 | 165 | 71 |
Decrease in purchased receivables, net | 2,066 | 67 | 2,897 |
Increase in loans, net | (57,927) | (27,686) | (66,249) |
Proceeds from sale of other real estate owned | 2,733 | 2,402 | 2,623 |
Net cash received from Alaska Pacific acquisition | 0 | 6,367 | 0 |
Cash paid for Residential Mortgage acquisition, net of cash received | 0 | (7,412) | 0 |
Elliott Cove divestiture, net of cash received | 219 | 0 | 0 |
Decrease in loan to Elliott Cove, net | 0 | 239 | 0 |
Purchases of premises and equipment | (6,838) | (5,282) | (2,209) |
Net Cash Used by Investing Activities | (63,339) | (48,658) | (107,989) |
Financing Activities: | |||
Increase in deposits | 61,045 | 24,585 | 33,594 |
Increase (decrease) in securities sold under repurchase agreements | 11,577 | (1,300) | 2,105 |
Increase (decrease) in borrowings | (24,184) | (7,032) | 2,048 |
Distributions to noncontrolling interest | (490) | (508) | (13) |
Proceeds from the issuance of common stock | 50 | 54 | 0 |
Excess tax benefits from share-based payment arrangements | 56 | 96 | 100 |
Cash dividends paid | (5,117) | (4,750) | (4,215) |
Net Cash Provided by Financing Activities | 42,937 | 11,145 | 33,619 |
Net Decrease in Cash and Cash Equivalents | (9,883) | (17,035) | (55,722) |
Cash and Cash Equivalents at Beginning of Year | 68,556 | 85,591 | 141,313 |
Cash and Cash Equivalents at End of Year | 58,673 | 68,556 | 85,591 |
Supplemental Information: | |||
Income taxes paid | 5,674 | 5,927 | 3,552 |
Interest paid | 2,833 | 2,087 | 2,035 |
Transfer of loans to other real estate owned | 1,259 | 1,137 | 365 |
Cash dividends declared but not paid | 46 | 49 | 42 |
Assets acquired | 0 | 235,069 | 0 |
Liabilities assumed | $ 0 | $ 197,338 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations: Northrim BanCorp, Inc. (the “Company”), is a publicly traded bank holding company headquartered in Anchorage, Alaska that is primarily engaged in the delivery of business and personal banking services through its wholly-owned banking subsidiary, Northrim Bank ("the Bank"). The Bank also engages in retail mortgage origination services through its wholly-owned subsidiary, Residential Mortgage Holding Company, LLC (“RML”). Additionally, the Bank operates a factoring division in Bellevue, Washington. Related companies include Northrim Benefits Group, LLC (“NBG”), Pacific Wealth Advisors, LLC (“PWA”), and Homestate Mortgage Company, LLC ("Homestate"). Method of Accounting: The Company prepares its consolidated financial statements in conformity with accounting principles generally accepted in the United States and prevailing practices within the banking industry. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of income, gains, expenses, and losses during the reporting periods. Actual results could differ from those estimates. Significant estimates include the allowance for loan losses (“Allowance”), valuation of goodwill and other intangibles, valuation of mortgage servicing rights, valuation of other real estate owned (“OREO”), valuation of the earn-out liability, and fair value disclosures. Consolidation: The Company consolidates affiliates in which we have a controlling interest. The accompanying consolidated financial statements include the accounts of the Company, the Bank, RML, NBG, and Northrim Investment Services Company (“NISC”). Significant intercompany balances have been eliminated in consolidation. As of December 31, 2015, the Company had two wholly-owned trusts ("Trusts") that were formed to issue trust preferred securities and related common securities of the Trusts. The Company has not consolidated the accounts of the Trusts in its consolidated financial statements in accordance with Financial Accounting Standards Board Accounting Standards Codification (“FASB”) ASC 810, Consolidation (“ASC 810”). As a result, the junior subordinated debentures issued by the Company to the Trusts are reflected on the Company’s consolidated balance sheet as junior subordinated debentures. The Company has determined that PWA and Homestate are not variable interest entities and therefore, the Company does not consolidate the balance sheets and income statements of PWA or Homestate into its financial statements. The Company's investments in PWA and Homestate are accounted for as equity method investments. Results of PWA and Homestate are included in "Other income" in our Consolidated Statements of Income. Investments in associated companies are presented on a one-line basis in the caption “Other assets” in our "Consolidated Balance Sheets". Operating Segments: Public enterprises are required to report certain information about their operating segments in a complete set of financial statements to shareholders. The basis for determining the Company's operating segments is the manner in which management operates the business. Management has identified two primary business segments, Community Banking and Home Mortgage Lending. Reclassifications: Certain reclassifications have been made to prior year amounts to maintain consistency with the current year with no impact on net income or total shareholders’ equity. Subsequent Events: The Company has evaluated events and transactions subsequent to December 31, 2015 for potential recognition or disclosure. Cash and Cash Equivalents: For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest-bearing deposits with other banks, federal funds sold, and securities with maturities of less than 90 days at acquisition. Investment Securities: Securities available for sale are stated at fair value with unrealized holding gains and losses, net of tax, excluded from earnings and reported as a separate component of other comprehensive income, unless an unrealized loss is deemed other than temporary. Gains and losses on available for sale securities sold are determined on a specific identification basis. Held to maturity securities are stated at cost, adjusted for amortization of premium and accretion of discount on a level-yield basis. The Company has the ability and intent to hold these securities to maturity. A decline in the market value of any available for sale or held to maturity security below cost that is deemed other than temporary results in a charge to earnings and the establishment of a new cost basis for the security. Unrealized investment securities losses are evaluated at least quarterly on a specific identification basis to determine whether such declines in value should be considered "other than temporary" and therefore be subject to immediate loss recognition in income. Although these evaluations involve significant judgment, an unrealized loss in the fair value of a debt security is generally deemed to be temporary when the fair value of the security is below the carrying value primarily due to changes in interest rates and there has not been significant deterioration in the financial condition of the issuer. The Company does not intend to sell, nor is it more likely than not that it will be required to sell, securities whose market value is less than carrying value. Because it is more likely than not that the Company will hold these investments until a market price recovery or maturity, these investments are not considered other than temporarily impaired. Other factors that may be considered in determining whether a decline in the value is "other than temporary" include the financial condition, capital strength, and near-term prospects of the issuer; actions of commercial banks or other lenders relative to the continued extension of credit facilities to the issuer of the security; recommendations of investment advisors or market analysts; and ratings by recognized rating agencies. Federal Home Loan Bank Stock: The Company’s investment in Federal Home Loan Bank of Des Moines (“FHLB”) stock is carried at par value because the shares can only be redeemed with the FHLB at par. The Company is required to maintain a minimum level of investment in FHLB stock based on the Company’s total Bank assets and outstanding advances. FHLB stock is carried at cost and is subject to recoverability testing at least annually. Loans held for sale: Loans held for sale are recorded at the lower of cost or fair value. Loans held for sale include residential mortgage loans that have been originated for sale in the secondary market. Related gains or losses on the sale of these loans are recognized in mortgage banking income. Loans: Loans are carried at their principal amount outstanding, net of charge-offs, unamortized fees, and direct loan origination costs. Loan balances are charged-off to the Allowance for Loan Losses when management believes that collection of principal is unlikely. Interest income on loans is accrued and recognized on the principal amount outstanding except for loans in a nonaccrual status. All classes of loans are placed on nonaccrual when management believes doubt exists as to the collectability of the interest or principal. Cash payments received on nonaccrual loans are directly applied to the principal balance. Generally, a loan may be returned to accrual status when the delinquent principal and interest is brought current in accordance with the terms of the loan agreement and certain ongoing performance criteria have been met. Loans are reported as past due when installment payments, interest payments, or maturity payments are past due based on contractual terms. The Company considers a loan to be impaired when it is probable that it will be unable to collect all amounts due according to the contractual terms of the loan agreement. Once a loan is determined to be impaired, the impairment is measured based on the present value of the expected future cash flows discounted at the loan’s effective interest rate, unless the loan is collateral dependent, in which case the impairment is measured by using the fair value of the loan’s collateral. Nonperforming loans greater than $50,000 are individually evaluated for impairment based upon the borrower’s overall financial condition, resources, and payment record, and the prospects for support from any financially responsible guarantors. The Company uses either in-house evaluations or external appraisals to estimate the fair value of collateral-dependent impaired loans as of each reporting date. The Company’s determination of which method to use is based upon several factors. The Company takes into account compliance with legal and regulatory guidelines, the amount of the loan, the estimated value of the collateral, the location and type of collateral to be valued, and how critical the timing of completion of the analysis is to the assessment of value. Those factors are balanced with the level of internal expertise, internal experience, and market information available, versus external expertise available such as qualified appraisers, brokers, auctioneers, and equipment specialists. The Company uses external appraisals to estimate fair value for projects that are not fully constructed as of the date of valuation. These projects are generally valued as if complete, with an appropriate allowance for cost of completion, including contingencies developed from external sources such as vendors, engineers, and contractors. The Company classifies fair value measurements using observable inputs, such as external appraisals, as level 2 valuations in the fair value hierarchy, and fair value measurements with unobservable inputs, such as in-house evaluations, as level 3 valuations in the fair value hierarchy. When the fair value measurement of the impaired loan is less than the recorded amount of the loan, an impairment is recognized by recording a charge-off to the Allowance or by designating a specific reserve in accordance with GAAP. The Company’s policy is to record cash payments received on impaired loans that are not also nonaccrual loans in the same manner that cash payments are applied to performing loans. A loan is classified as a troubled debt restructuring ("TDR") when a borrower is experiencing financial difficulties that lead to a restructuring of the loan, and the Company grants concessions to the borrower in the restructuring that it would not otherwise consider. These concessions may include interest rate reductions, principal forgiveness, extension of maturity date and other actions intended to minimize potential losses. Generally, a nonaccrual loan that is restructured remains on nonaccrual status for a period of at least six months to demonstrate that the borrower can meet the restructured terms. If the borrower's performance under the new terms is not reasonably assured, the loan remains classified as a nonaccrual loan. Interest on TDRs will be accrued at the restructured rates when it is anticipated that no loss of original principal will occur, and the interest can be collected, which is generally after a period of six months Loan origination fees received in excess of direct origination costs are deferred and accreted to interest income using a method approximating the level-yield method over the life of the loan. Acquired Loans: Loans are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan losses is not recorded at the acquisition date. Purchased loans are evaluated upon acquisition and classified as either purchased credit impaired or purchased non-credit-impaired. Purchased credit impaired loans reflect credit deterioration since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. Purchased credit impaired loans were individually evaluated for credit impairment at acquisition using expected future cash flows or the estimated value of underlying collateral. A purchased credit impaired loan will be removed from impaired loans only if the loan is sold, foreclosed, or assets are received in full satisfaction of the loan, and it will be removed from impaired loans at its carrying value. If an individual loan is removed, the difference between its relative carrying amount and its cash, fair value of the collateral, or other assets received will be recognized in other income immediately as a gain and would not affect the effective yield used to recognize the accretable yield on purchased credit impaired loans. The excess of the undiscounted contractual balances due over the cash flows expected to be collected is considered to be the nonaccretable difference. The nonaccretable difference represents our estimate of the credit losses expected to occur and was considered in determining the fair value of the purchased credit impaired loans as of the acquisition date. Subsequent to the acquisition date, any increases in expected cash flows over those expected at purchase date in excess of fair value are adjusted through an increase to the accretable yield on a prospective basis. The purchased credit impaired loans are and will continue to be subject to the Company’s internal and external credit review and monitoring. If credit deterioration is experienced subsequent to the initial acquisition fair value amount, such deterioration will be measured, and a charge off will be recorded. For purchased non-credit-impaired loans, the difference between the fair value and unpaid principal balance of the loan at the acquisition date is amortized or accreted to interest income over the estimated life of the loans. The Company has evaluated the credit quality of purchased non-credit-impaired loans and has determined that excluding these loans from the allowance for loan losses calculation is appropriate based on their stable credit quality since acquisition. Allowance for Loan Losses: The Allowance for Loan Losses (“the Allowance”) is management’s best estimate of probable losses inherent in its loan portfolio. Accordingly, the methodology is based on historical loss experience by loan segment and class with adjustments for current events and conditions. The Company’s process for determining the appropriate level of the Allowance for probable loan losses is designed to account for credit deterioration as it occurs. The provision for loan losses reflects loan quality trends, including levels of and trends related to past due and nonaccrual loans, net charge-offs or recoveries, and other factors. The Company has identified the following segments: commercial, real estate construction one-to-four family, real estate construction other, real estate term owner occupied, real estate term non-owner occupied, real estate term other, consumer loans secured by 1 st deeds of trust, and other consumer loans. Then the Company further disaggregates each segment into the following classes, which are also known as asset quality ratings: pass (grades 1-6), special mention (grade 7), substandard (grade 8), doubtful (grade 9), and loss (grade 10). The level of the Allowance reflects management’s continuing evaluation of industry concentrations, specific credit risks, loan loss experience, current loan portfolio quality, present economic, political and regulatory conditions and unidentified losses inherent in the current loan portfolio. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgment, should be charged off. While management utilizes its best judgment and information available, the ultimate adequacy of the Allowance is dependent upon a variety of factors beyond the Company’s control including, among other things, the performance of the Company’s loan portfolio, the economy, changes in interest rates, and the view of the regulatory authorities toward loan classification. The Company’s Allowance consists of three elements: (1) specific valuation allowances based on probable losses on specific loans, (2) general valuation allowances based on historical loan loss experience for similar loans with similar characteristics and trends, adjusted as necessary to reflect the impact of current conditions, and (3) unallocated general valuation allowances based on general economic conditions and other qualitative risk factors both internal and external to the Company. The specific valuation allowance is an allocated allowance for impaired loans. This analysis is based upon a specific analysis for each impaired loan that is collateral dependent, including appraisals and in-house evaluations on loans secured by real property, management’s assessment of the current market, recent payment history, and an evaluation of other sources of repayment. The Company obtains appraisals on real and personal property that secure its loans during the loan origination process in accordance with regulatory guidance and its loan policy. The Company then estimates a general allocated allowance for all other loans that were not impaired as of the balance sheet date using a formula-based approach that includes average historical loss factors that are adjusted for quantitative and qualitative factors. Qualitative factors are based on management’s assessment of current trends that may cause losses inherent in the current loan portfolio to differ significantly from historical losses. The Company uses a formula-based approach that includes average historical loss factors that are adjusted for qualitative factors to establish this portion of the Allowance. The Company first disaggregates the overall loan portfolio into the following segments: commercial, real estate construction one-to-four family, real estate construction other, real estate term owner occupied, real estate term non-owner occupied, real estate term other, consumer secured by 1 st deeds of trust, and other consumer loans. Then the Company further disaggregates each segment into the following classes: pass, special mention, substandard, doubtful and loss. After the portfolio has been disaggregated into these segments and classes, the Company calculates a general reserve for each segment and class based on the average five year loss history for each segment and class. This general reserve is then adjusted for qualitative factors, by segment and class. Qualitative factors are based on management’s assessment of current trends that may cause losses inherent in the current loan portfolio to differ significantly from historical losses. Some factors that management considers in determining the qualitative adjustment to the general reserve include our concentration of large borrowers; national and local economic trends; general business conditions; economic, political, and industry specific factors that affect resource development in Alaska; underwriting policies and standards; trends in local real estate markets; effects of various political activities; peer group data; and internal factors such as underwriting policies and expertise of the Company’s employees. The unallocated general valuation portion of the Allowance is based on several factors, including the level of the Allowance as compared to total loans and nonperforming loans in light of current economic conditions. This portion of the Allowance provides for coverage of credit losses inherent in the loan portfolio but not captured in the credit loss factors that are utilized in the risk rating-based component, or in the specific impairment component of the Allowance, and it acknowledges the inherent imprecision of all loss prediction models. This portion of the Allowance is deemed “unallocated” because it is not allocated to any segment or class of the loan portfolio. This portion of the Allowance provides for coverage of credit losses inherent in the loan portfolio but not captured in the credit loss factors that are utilized in the risk rating-based component or in the specific impairment component of the Allowance and acknowledges the inherent imprecision of all loss prediction models. This portion of the Allowance is based upon management’s evaluation of various factors that are not directly measured in the determination of the allocated portions of the Allowance. Such factors include uncertainties in identifying triggering events that directly correlate to subsequent loss rates, uncertainties in economic conditions, risk factors that have not yet manifested themselves in loss allocation factors, and historical loss experience data that may not precisely correspond to the current portfolio. In addition, the unallocated reserve may fluctuate based upon the direction of various risk indicators. Examples of such factors include the risk as to current and prospective economic conditions, the level and trend of charge offs or recoveries, and the risk of heightened imprecision or inconsistency of appraisals used in estimating real estate values. Although this allocation process may not accurately predict credit losses by loan type or in aggregate, the total allowance for credit losses is available to absorb losses that may arise from any loan type or category. Based on our methodology and its components, management believes the resulting Allowance is adequate and appropriate for the risk identified in the Company's loan portfolio. While management believes that it uses the best information available to determine the Allowance, unforeseen market conditions and other events could result in adjustment to the Allowance, and net income could be significantly affected if circumstances differed substantially from the assumptions used in making the final determination. Our banking regulators, as an integral part of their examination process, periodically review the Company's Allowance. Our regulators may require the Company to recognize additions to the Allowance based on their judgments related to information available to them at the time of their examinations. Reserve for Unfunded Loan Commitments and Letters of Credit: The Company maintains a separate reserve for losses related to unfunded loan commitments and letters of credit. The determination of the adequacy of the reserve is based on periodic evaluations of the unfunded credit facilities including assessment of historical losses and current economic conditions. The allowance for unfunded loan commitments and letters of credit is included in other liabilities on the consolidated balance sheets, with changes to the balance charged against noninterest expense. Purchased Receivables: The Bank purchases accounts receivable from its customers. The purchased receivables are carried at cost. Fees charged to the customer are earned while the balances of the purchases are outstanding, which is typically less than one year. The Company maintains a separate reserve for losses related to purchased receivable assets. The determination of the adequacy of the reserve is based on periodic evaluations of purchased receivable assets including an assessment of historical losses and current economic conditions. The reserve for purchased receivable assets is included in the balance of these accounts on a net basis on the consolidated balance sheets, with changes to the balance charged against noninterest expense. Other Real Estate Owned: Other real estate owned represents properties acquired through foreclosure or its equivalent. Prior to foreclosure, the carrying value is adjusted to the fair value, less cost to sell, of the real estate to be acquired by an adjustment to the Allowance. Management’s evaluation of fair value is based on appraisals or discounted cash flows of anticipated sales. The amount by which the fair value less cost to sell is greater than the carrying amount of the loan plus amounts previously charged off is recognized in earnings. Any subsequent reduction in the carrying value is charged against earnings. Operating expenses associated with other real estate owned are charged to earnings in the period they are incurred. Premises and Equipment: Premises and equipment, including leasehold improvements, are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization expense for financial reporting purposes is computed using the straight-line method based upon the shorter of the lease term or the estimated useful lives of the assets that vary according to the asset type and include; furniture and equipment ranging between 3 and 7 years , leasehold improvements ranging between 2 and 15 years , and buildings over 39 years . Maintenance and repairs are charged to current operations, while renewals and betterments are capitalized. Long-lived assets such as premises and equipment are reviewed for impairment at least annually or whenever events or changes in business circumstances indicate that the remaining useful life may warrant revision, or that the carrying amount of the long-lived asset may not be fully recoverable. If impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. Goodwill and Other Intangible Assets: Intangible assets are comprised of goodwill and other intangibles acquired in business combinations. Goodwill and intangible assets with indefinite useful lives are not amortized. Intangible assets with definite useful lives are amortized to their estimated residual values over their respective useful lives, and are also reviewed for impairment. Amortization of intangible assets is included in other operating expense in the Consolidated Statements of Income. The Company performs a goodwill impairment analysis at the segment level on an annual basis. Additionally, the Company performs a goodwill impairment evaluation on an interim basis when events or circumstances indicate impairment potentially exists. Low Income Housing Tax Credit Partnerships: The Company earns a return on its investments in the form of tax credits and deductions that flow through to it as a limited partner in these partnerships. The Company amortizes these investments in tax expense over the period during which tax credits are used. Mortgage Servicing Rights: Mortgage servicing rights ("MSRs") are the rights to service mortgage loans for others. The Company measures MSRs at fair value and reports changes in fair value through earnings. Changes in the fair value of MSRs occur primarily due to the collection/realization of expected cash flows, as well as changes in valuation inputs and assumptions. Under the fair value method, MSRs are carried on the balance sheet at fair value and the changes in fair value are reported in earnings in other operating income in the period in which the change occurs. Fair value measurements are determined using a discounted cash flow model. In order to determine the fair value of MSRs, the present value of net expected future cash flows is estimated. Assumptions used include market discount rates, anticipated prepayment speeds, escrow calculations, delinquency rates, and ancillary fee income net of servicing costs. The model assumptions are also compared to publicly filed information from several large MSR holders, as available. Earn-out liability: The Company recorded an earn-out liability as part of the cost of the acquisition of 76.5% of the equity interest in RML on December 1, 2014. The earn-out liability is an estimate that is contingent upon the adjusted earnings of RML. The Company measures the earn-out liability at fair value and reports changes in fair value through earnings. Other Assets: Other assets include purchased software and prepaid expenses. Purchased software is carried at amortized cost and is amortized using the straight-line method over its estimated useful life or the term of the agreement. Also included in other assets is the net deferred tax asset, bank owned life insurance, accrued interest receivable, taxes receivable, rate lock derivatives, and the Company’s equity method investments. Derivatives: The Company considers all free-standing derivatives as economic hedges and recognizes these derivatives as either assets or liabilities in the balance sheet and requires measurement of those instruments at fair value through adjustments to current earnings. None of the Company's derivatives are designated as hedging instruments. By using derivatives, the Company is exposed to counterparty credit risk, which is the risk that counterparties to the derivative contracts do not perform as expected. If a counterparty fails to perform, our counterparty credit risk is equal to the amount reported as a derivative asset on our balance sheet, net of cash collateral received. We minimize counterparty credit risk through credit approvals, limits, monitoring procedures, and obtaining collateral, where appropriate. For derivative instruments executed with the same counterparty under a master netting arrangement, we do not offset fair value amounts of interest rate swaps in liability position with the ones in asset position. For further detail, see Note 19. Transfers or sales of financial assets: For transfers of financial assets recorded as sales, we recognize and initially measure at fair value all assets obtained and liabilities incurred. We record a gain or loss in noninterest income for the difference between the carrying amount and the fair value of the assets sold. Fair values are based on quoted market prices, quoted market prices for similar assets, or if market prices are not available, then the fair value is estimated using discounted cash flow analysis with assumptions for credit losses, prepayments and discount rates that are corroborated by and verified against market observable data, where possible. Advertising: Advertising, promotion and marketing costs are expensed as incurred. The Company reported total expenses in these areas of $2.7 million , $2.1 million , and $1.9 million for each of the periods ending December 31, 2015, 2014, and 2013, respectively. Stock Incentive Plans: The Company accounts for its stock incentive plans using a fair-value-based method of accounting for stock-based employee compensation plans. The Company has elected the modified prospective method for recognition of compensation cost associated with stock-based employee compensation awards. The Company amortizes stock-based compensation expense over the vesting period of each award. Income Taxes: The Company uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized for the future consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Earnings Per Share: Earnings per share is calculated using the weighted average number of shares and dilutive common stock equivalents outstanding during the period. Stock options and restricted stock units, as described in Note 21 , are considered to be common stock equivalents. Potentially dilutive shares are excluded from the computation of earnings per share if their effect is anti-dilutive. There were no anti-dilutive shares outstanding related to options to acquire common stock in 2014 , or 2013 . Anti-dilutive shares outstanding related to options to acquire common stock for the year ended December 31, 2015 totaled 54,903 . Information used to calculate earnings per share was as follows: (In Thousands) 2015 2014 2013 Net income attributable to Northrim BanCorp, Inc. $17,783 $17,408 $12,325 Basic weighted average common shares outstanding 6,859 6,761 6,519 Dilutive effect of potential common shares from awards granted under equity incentive program 89 91 91 Total 6,948 6,852 6,610 Ea |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Alaska Pacific On April 1, 2014, the Company completed the acquisition of 100% of the outstanding shares of Alaska Pacific for a total purchase price of $13.9 million , which was comprised of the issuance of 290,212 shares of the Company’s common stock (at a volume weighted average closing price of $25.66 per share) and $6.4 million in cash. The assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting and were recorded at their estimated fair values as of the April 1, 2014 acquisition date. Estimated fair values recorded in the transaction are subject to change for up to one year after the closing date of the acquisition. The primary reason for the acquisition was to expand the Company's geographic footprint in Alaska. The application of the acquisition method of accounting resulted in the recognition of a bargain purchase gain of $170,000 and a core deposit intangible of $623,000 , or 0.5% of core deposits. The bargain purchase gain represents the excess of the estimated fair value of the net assets acquired in excess of the purchase price and is included in Other Income in the Consolidated Statements of Net Income in this Form 10-K. This acquisition resulted in a bargain purchase gain primarily due to the inclusion of certain adjustments to the purchase price for potential risks identified by the Company during the due diligence and price negotiation stages of the acquisition that were concluded in October of 2013. The Company has concluded that the potential risks identified at that time do not represent a liability to the Company and, accordingly, they have not been allocated any value in the application of the acquisition method of accounting. The bargain purchase gain increased from April 1, 2014 to December 31, 2014, due to an adjustment to the fair value of accrued liabilities acquired. A summary of the net assets acquired and the estimated fair value adjustments of Alaska Pacific are presented below: Alaska Pacific (In Thousands) April 1, 2014 Cost basis net assets $14,733 Cash payment made (6,423 ) Common stock issued (7,446 ) Fair value adjustments: Net loans (1,137 ) Premises and equipment 547 Other intangible assets 623 Mortgage servicing rights (119 ) Deposits (844 ) Other 236 Bargain purchase gain $170 A summary of assets acquired and liabilities assumed at their estimated fair values are presented below: Alaska Pacific (In Thousands) April 1, 2014 Assets Acquired: Cash and equivalents $12,956 Investment securities 7,240 Net loans 138,432 Premises and equipment 3,436 Other intangibles 623 Mortgage servicing rights 1,170 Other real estate owned 1,709 Other assets 1,645 Total assets acquired $167,211 Liabilities Assumed: Deposits $151,438 Other liabilities 1,734 Total liabilities assumed $153,172 Alaska Pacific purchased loans not subject to the requirements of FASB ASC 310-30 Loans and Debt Securities Acquired with Deteriorated Credit Quality ("ASC 310-30") are presented below at acquisition: (In Thousands) April 1, 2014 Contractually required principal payments $133,921 Purchase adjustment for credit, interest rate, and liquidity 612 Fair value of purchased non-credit impaired loans $134,533 Alaska Pacific purchased loans subject to the requirements of FASB ASC 310-30 Loans and Debt Securities Acquired with Deteriorated Credit Quality. The Company identified eighteen purchased credit impaired loans as of April 1, 2014. This group of loans consists primarily of commercial and commercial real estate loans, and unlike a pool of consumer mortgages, it is not practicable for the Company to analyze the accretable yield of these loans. As such, the Company has elected the cost recovery method of income recognition for these loans, and thus no accretable difference has been identified for these loans. Purchased credit impaired loans at acquisition are presented below: (In Thousands) April 1, 2014 Contractually required principal payments $7,553 Nonaccretable difference (3,654 ) Fair value of purchased credit impaired loans $3,899 The acquisition of Alaska Pacific is not considered significant to the Company’s financial statements. The operations of Alaska Pacific are included in our operating results from April 1, 2014, and added revenue of $8.7 million , non-interest expense of $5.2 million , and net income of $3.5 million , before taxes, for the year ended December 31, 2015. Alaska Pacific’s results of operations prior to the acquisition are not included in our operating results. Additionally, merger-related costs of $1.5 million for the year ended December 31, 2014 were incurred and expensed in connection with the acquisition of Alaska Pacific and recognized within the merger and acquisition expense on the Consolidated Statements of Income . The following table presents unaudited pro forma results of operations for the years ended December 31, 2014 as if the acquisition of Alaska Pacific had occurred on January 1, 2014. The proforma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2014. (In Thousands, except earnings per share data) December 31, 2014 Pro Forma Pro Forma Company Alaska Pacific 1 Adjustments Combined Net interest and other income $73,442 $2,095 ($38 ) 2 $75,499 Net income attributable to Northrim BanCorp, Inc. 17,408 (1,282 ) 82 3 16,208 Earnings Per Share, Basic $2.57 $2.37 Earnings Per Share, Diluted $2.54 $2.34 Weighted Average Shares Outstanding, Basic 6,761,328 6,833,881 Weighted Average Shares Outstanding, Diluted 6,852,267 6,924,820 1 Alaska Pacific represents results from January 1 to March 31 for 2014. 2 Amount of amortization/ accretion of the fair value adjustments on loans and certificates of deposit. 3 Amount of amortization/accretion of the fair value adjustments on loans and certificates of deposit, bargain purchase gain, amortization of cored deposit intangible, and the change in the provision for income taxes. Residential Mortgage On December 1, 2014, the Company completed the acquisition of 76.5% of the equity interest in Residential Mortgage Holding Company, LLC ("RML"), the parent company of Residential Mortgage, LLC ("Residential Mortgage"), in a cash transaction valued at $29.5 million . The primary reason for the acquisition was to expand the Company's presence in the mortgage lending business in Alaska. The fair value of the Company's 23.5% equity interest in RML immediately prior to the acquisition was $9.0 million . The Company recorded a $3.0 million gain in the fourth quarter of 2014 as a result of remeasuring the Company's equity interest in RML immediately prior to the acquisition, which is included in the Company's Consolidated Statement of Income in the line item entitled "Gain on purchase of mortgage affiliate". The Company utilized a market value approach to value its 23.5% equity interest in RML which included analysis of current trading values and historical acquisition multiples of comparable mortgage companies. The consideration transferred or transferable to the former owners of RML and the assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting and were recorded at their estimated fair values as of the December 1, 2014 acquisition date. Estimated fair values recorded in the transaction are subject to change for up to one year after the closing date of the acquisition. The application of the acquisition method of accounting resulted in the recognition of goodwill in the amount of $14.8 million and a trade name intangible of $950,000 . The former owners of RML (the "sellers") receive additional cash proceeds (the “earn-out payments”) based on the adjusted earnings of RML in all or a portion of the calendar years 2014, 2015, 2016, 2017, 2018 and 2019. The Company recorded a $7.3 million liability as of December 1, 2014 as part of its purchase accounting for future earn-out payments. Per the purchase agreement, the earn-out payments are calculated as follows: First tier earn-out payment Adjusted pretax earnings greater than $1,000,000 and less than or equal to $2,000,000 Payment will be calculated as product of amount of adjusted pretax earnings times 40% Second tier earn-out payment Adjusted pretax earnings greater than $2,000,000 and less than or equal to $3,000,000 The first tier earn-out payment, plus the product of amount of adjusted pretax earnings greater than $2,000,000 and less than $3,000,000 times 50% Third tier earn-out payment Adjusted pretax earnings greater than $3,000,000 and less than or equal to $4,000,000 The first tier plus the second tier earn-out payment, plus the product of amount of adjusted pretax earnings greater than $3,000,000 and less than $4,000,000 times 70% Fourth tier earn- out payment Adjusted pretax earnings greater than $4,000,000 and less than or equal to $6,000,000 The first, second and third tier earn-out payment, plus the product of amount of adjusted pretax earnings greater than $4,000,000 and less than $6,000,000 times 85% Fifth tier earn-out payment Adjusted pretax earnings greater than $6,000,000 The first, second, third and fourth tier earn-out payment, plus the product of amount of adjusted pretax earnings greater than $6,000,000 times 55% The purchase agreement provides for these earn-out payments as a portion of the purchase price to be paid to the sellers in future periods, contingent on future events. Therefore we included an estimate of the acquisition-date fair value of the contingent consideration of $7.3 million as part of the cost of the combination. The accounting treatment of the contingent consideration to be paid to those of the sellers who continue employment with the Company was evaluated to determine whether the amounts represent purchase consideration or a separate transaction, such as post-transaction employee compensation. Factors evaluated require significant judgment and include, among other factors; consideration of the terms of continuing employment, levels of post-transaction compensation, ownership interest of the sellers/employees, linkage of the contingent consideration to the transaction date combination valuation, and any other agreements or matters related to the transaction. Based on an evaluation of the factors surrounding the transaction and the terms of the purchase agreement, the amount due under the earn-out provision was accounted for as acquisition consideration. We concluded that the contingent consideration to be paid to the sellers/employees was a significant component of the transaction date valuation of the acquired business. The calculation of the contingent payment was based upon factors established at the date of the transaction to be paid upon meeting the established earnings criteria of RML. The post transaction employment arrangements of the continuing employees are at market rates, and the formula for determining the contingent consideration is consistent with the business valuation methodologies, based upon a multiplier of earnings recognized from RML for five twelve month periods following the acquisition. For the year ended December 31, 2015, the Company recorded an adjustment to increase the contingent liability by $4.1 million . The increase in the contingent liability resulted from the excess of RML's pretax income from December 1, 2014 through the end of December 31, 2015 over and above estimates made at the close of the purchase of RML. The adjustment to the contingent liability for estimated future earn-out payments is recorded in the line item titled "Change in fair value, RML earn-out liability" in other operating expense on the Consolidated Statements of Income . The Company made its first earn-out payment to the sellers in the fourth quarter of 2015 for approximately $4.9 million . The total contingent liability as of December 31, 2015 is $6.6 million . A summary of the net assets acquired and the estimated fair value adjustments of RML are presented below: RML (In Thousands) December 1, 2014 Cost basis net assets $11,915 Cash payment made (18,240 ) Cash surrender value of life insurance paid (3,896 ) Liability for future earn out payments (7,318 ) Fair value adjustments: Net loans (360 ) Trade name intangible 950 Rate lock derivative asset 960 Investment in Homestate 1,490 Other (311 ) Goodwill ($14,810 ) A summary of assets acquired and liabilities assumed at their estimated fair values are presented below: RML (In Thousands) December 1, 2014 Assets Acquired: Cash and equivalents $10,828 Net loans 41,304 Premises and equipment 255 Trade name intangible 950 Rate lock derivative asset 960 Investment in Homestate 3,000 Other real estate owned 270 Other assets 10,291 Total assets acquired $67,858 Liabilities Assumed: Borrowings $37,541 Other liabilities 6,625 Total liabilities assumed $44,166 The acquisition of RML is not considered significant to the Company’s financial statements under Regulation S-X; however, the Company has determined that the acquisition resulted in a new reporting segment, Home Mortgage Lending. The operations of RML are included in our operating results from December 1, 2014, and added revenue of $30.2 million , non-interest expense of $21.5 million , and net income of $8.7 million, before taxes, for the year ended December 31, 2015. RML’s results of operations prior to the December 1, 2014 acquisition are included in our operating results under the equity method. Additionally, merger-related costs of $507,000 for the year ended December 31, 2014 were incurred and expensed in connection with the acquisition of RML and recognized within the merger and acquisition expense on the Consolidated Statements of Income . The following table presents unaudited pro forma results of operations for the year ended December 31, 2014 as if the acquisition of RML had occurred on January 1, 2014. The proforma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2014. (In Thousands, except earnings per share data) December 31, 2014 Pro Forma Pro Forma Company RML 1 Adjustments Combined Net interest and other income $73,442 $22,227 2 ($1,176 ) 3 $94,493 Net income attributable to Northrim BanCorp, Inc. 17,408 4,000 2,250 4 23,658 Earnings Per Share, Basic $2.57 $3.50 Earnings Per Share, Diluted $2.54 $3.45 Weighted Average Shares Outstanding, Basic 6,761,328 6,761,328 Weighted Average Shares Outstanding, Diluted 6,852,267 6,852,267 1 RML represents results from January 1 to November 30 for 2014. 2 2014 amount is comprised of net interest income and loan origination fees of $6.0 million and $16.2 million of other income. 3 Amount of accretion of the fair value adjustments on loans and income recognized under the equity method prior to the December 2014 acquisition. 4 Amount of accretion of the fair value adjustments on loans, income recognized under the equity method, gain on acquisition, earn out accretion, and the change in the provision for income taxes. Prior to December 1, 2014, the Company accounted for RML under the equity method of accounting. As of December 1, 2014, the Company owns 100% interest in RML and consolidates RML's activity into the Company's Consolidated Financial Statements. The following table presents unaudited combined pro forma results of operations for the year ended December 31, 2014 as if the acquisition of Alaska Pacific and RML had occurred on January 1, 2014. The proforma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisitions actually occurred on January 1, 2014. (In Thousands, except earnings per share data) December 31, 2014 Alaska Pro Forma Pro Forma Company Pacific 1 RML 2 Adjustments Combined Net interest and other income $73,442 $2,095 $22,227 3 ($1,214 ) 4 $96,550 Net income attributable to Northrim BanCorp, Inc. 17,408 (1,282 ) 4,000 2,332 5 22,458 Earnings Per Share, Basic $2.57 $3.29 Earnings Per Share, Diluted $2.54 $3.24 Weighted Average Shares Outstanding, Basic 6,761,328 6,833,881 Weighted Average Shares Outstanding, Diluted 6,852,267 6,924,820 1 Alaska Pacific represents results from January 1 to March 31. 2 RML represents results from January 1 to November 30. 3 2014 amount is comprised of net interest income and loan origination fees of $6.0 million and $16.2 million of other income. 4 Amount of amortization/ accretion of the fair value adjustments on loans and certificates of deposit for Alaska Pacific and amount of accretion of the fair value adjustments on loans and income recognized under the equity method prior to the December 2014 acquisition for RML. |
Cash and Due from Banks
Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Due from Banks [Abstract] | |
Cash and Due from Banks | Cash and Due from Banks The Company is required to maintain a $500,000 minimum average daily balance with the Federal Reserve Bank of San Francisco ("Federal Reserve Bank") for purposes of settling financial transactions and charges for Federal Reserve Bank services. The Company is also required to maintain cash balances or deposits with the Federal Reserve Bank sufficient to meet its statutory reserve requirements. The average reserve requirement for the maintenance period, which included December 31, 2015 , was $0 . The Company is required to maintain a $500,000 balance with a correspondent bank for outsourced servicing of ATMs. As discussed in Note 1 of the Notes to Consolidated Financial Statements, cash and cash equivalents include cash on hand, amounts due from banks, interest-bearing deposits with other banks, federal funds sold, and securities with maturities of less than 90 days at acquisition. Accordingly, domestic certificates of deposit with maturities of greater than 90 days totaling zero and $3.5 million at December 31, 2015 and 2014 , respectively, have been excluded from cash and cash equivalents in the Statement of Cash Flows. |
Interest Bearing Deposits in Ot
Interest Bearing Deposits in Other Banks | 12 Months Ended |
Dec. 31, 2015 | |
Interest Bearing Deposits In Other Banks [Abstract] | |
Interest Bearing Deposits in Other Banks | Interest Bearing Deposits in Other Banks All interest bearing deposits in other banks have a maturity of one year or less. Balances at December 31 for the respective years are as follows: (In Thousands) 2015 2014 Interest bearing deposits at Federal Reserve Bank $27,275 $31,806 Interest bearing deposits at FHLB 108 420 Domestic certificates of deposit at other institutions — 3,500 Other interest bearing deposits at other institutions 301 294 Total $27,684 $36,020 |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2015 | |
Marketable Securities [Abstract] | |
Investment Securities | Investment Securities The carrying values and approximate fair values of investment securities at the periods indicated are presented below: (In Thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2015 Securities available for sale U.S. Treasury and government sponsored entities $238,116 $150 $830 $237,436 Municipal securities 10,227 117 18 10,326 U.S. Agency mortgage-backed securities 818 1 10 809 Corporate bonds 39,049 57 88 39,018 Preferred stock 3,549 8 33 3,524 Total securities available for sale $291,759 $333 $979 $291,113 Securities held to maturity Municipal securities $903 $56 $— $959 Total securities held to maturity $903 $56 $— $959 December 31, 2014 Securities available for sale U.S. Treasury and government sponsored entities $226,624 $105 $539 $226,190 Municipal securities 11,843 285 4 12,124 U.S. Agency mortgage-backed securities 1,024 6 1 1,029 Corporate bonds 38,820 415 — 39,235 Preferred stock 2,999 153 — 3,152 Total securities available for sale $281,310 $964 $544 $281,730 Securities held to maturity Municipal securities $2,201 $107 $— $2,308 Total securities held to maturity $2,201 $107 $— $2,308 Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2015 and 2014 were as follows: Less Than 12 Months More Than 12 Months Total (In Thousands) Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses 2015: Securities Available for Sale U.S. Treasury and government sponsored entities $146,433 $829 $36 $1 $146,469 $830 Corporate Bonds 19,874 88 19,874 88 Municipal Securities 4,454 18 — — 4,454 18 Mortgage-backed Securities 637 9 100 1 737 10 Preferred Stock 2,514 33 — — 2,514 33 Total $173,912 $977 $136 $2 $174,048 $979 2014: Securities Available for Sale U.S. Treasury and government sponsored entities $165,004 $539 $— $— $165,004 $539 Municipal Securities 567 4 — — 567 4 Mortgage-backed Securities 117 1 — — 117 1 Total $165,688 $544 $— $— $165,688 $544 The unrealized losses on investments in government sponsored entities, corporate bonds, and municipal securities in both periods were caused by changes in interest rates. At December 31, 2015 and 2014 , there were thirty-nine and twenty-nine available-for-sale securities in an unrealized loss position, respectively, that have been in a loss position for less than twelve months. There were six and zero securities with unrealized losses at December 31, 2015 and 2014 , respectively, that have been at a loss position for more than twelve months. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Because it is more likely than not that the Company will hold these investments until a market price recovery or maturity, these investments are not considered other-than-temporarily impaired. At December 31, 2015 and 2014 , $59.7 million and $54.1 million in securities were pledged for deposits and borrowings, respectively. The amortized cost and fair values of debt securities at December 31, 2015 , are distributed by contractual maturity as shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Although preferred stock has no stated maturity, it is aggregated in the calculation of weighted average yields presented below in the category of investments that mature in ten years or more. (In Thousands) Amortized Cost Fair Value Weighted Average Yield U.S. Treasury and government sponsored entities Within 1 year $14,995 $15,006 0.86 % 1-5 years $223,121 $222,430 1.12 % Total $238,116 $237,436 1.10 % U.S. Agency mortgage-backed securities 1-5 years $31 $30 1.99 % 5-10 years 471 465 2.94 % Over 10 years 316 314 2.82 % Total $818 $809 2.86 % Corporate bonds Within 1 year $5,339 $5,346 1.30 % 1-5 years 33,710 33,672 1.10 % Total $39,049 $39,018 1.13 % Preferred stock Over 10 years $3,549 $3,524 6.72 % Total $3,549 $3,524 6.72 % Municipal securities Within 1 year $1,140 $1,144 1.91 % 1-5 years 7,730 7,885 2.89 % 5-10 years 2,260 2,256 4.19 % Total $11,130 $11,285 3.05 % The proceeds and resulting gains and losses, computed using specific identification, from sales of investment securities for the years ending December 31, 2015 , 2014 , and 2013 , respectively, are as follows: (In Thousands) Proceeds Gross Gains Gross Losses 2015 Available for sale securities $20,522 $271 $— 2014 Available for sale securities $24,102 $465 $4 2013 Available for sale securities $23,514 $333 $— A summary of interest income for the years ending December 31, 2015 , 2014 , and 2013 on available for sale investment securities is as follows: (In Thousands) 2015 2014 2013 U.S. Treasury and government sponsored entities $2,378 $1,769 $898 U.S. Agency mortgage-backed securities 25 25 1 Other 670 857 1,136 Total taxable interest income $3,073 $2,651 $2,035 Municipal securities $320 $391 $568 Total tax-exempt interest income $320 $391 $568 Total $3,393 $3,042 $2,603 |
Loans and Credit Quality
Loans and Credit Quality | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Loans and Credit Quality | Loans and Credit Quality As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends in past due and nonaccrual loans, gross and net charge offs, and movement in loan balances within the risk classifications. The Company utilizes a loan risk grading system called the Asset Quality Rating (“AQR”) system to assign a risk classification to each of its loans. Loans are graded on a scale of 1 to 10 and, loans graded 1 – 6 are considered “pass” grade loans. A description of the general characteristics of the AQR risk classifications are as follows: Pass grade loans – 1 through 6: The borrower demonstrates sufficient cash flow to fund debt service, including acceptable profit margins, cash flows, liquidity and other balance sheet ratios. Historic and projected performance indicates that the borrower is able to meet obligations under most economic circumstances. The company has competent management with an acceptable track record. The category does not include loans with undue or unwarranted credit risks that constitute identifiable weaknesses. Special Mention – 7: A "special mention" credit has weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of either the repayment prospects for the asset or the Bank's credit position at some future date. Special mention assets are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. Loans are currently protected, but are weak due to negative trends in the balance sheet and income statement. Current cash flow may be insufficient to meet debt service, with prospects that the condition may not be temporary. Profitability and key balance sheet ratios are below peers. There is a lack of effective control over collateral or there are documentation deficiencies as well as a potential risk of payment default. Collateral coverage is minimal in gross dollars or due to quality issues. Financial information may be inadequate to show the recent condition of borrower. The loan would not be approved as a new credit, and new loans would not be granted. Management may not be adequately qualified or may have very limited prior experience with similar activities or markets. The ability of management to cope with current conditions is questionable. Internal conflict and turnover in key positions may be present. Succession is unclear. The borrower's asset quality is below average. The capital base may be insufficient to cover capital losses. Leverage is above average or increasing. The industry outlook is generally negative but there are reasonable expectations of a turnaround within 12-18 months. The firm may be new, resulting in competitive deficiencies in comparison to the older, more established firms in the industry. Over-capacity may be evident in the industry. Collateral and guarantor strength are comparable to Management Attention-6, but agings and certifications of accounts receivable and inventory are required and are not being provided on a regular basis. Substandard – 8: A "substandard" credit is inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Loans have well-defined weaknesses where a payment default and/or a loss are possible, but not yet probable. Cash flow is insufficient to service debt, with prospects that the condition is permanent. Assets classified as substandard are inadequately protected by the current net worth and paying capacity of the borrower, and there is a likelihood that collateral will have to be liquidated and/or the guarantor called upon to repay the debt. Generally, the loan is considered collectible as to both principal and interest, primarily because of collateral coverage. Loan(s) may have been restructured at less than market terms or have been partially charged off. If deficiencies are not corrected quickly, there is a probability of loss and the borrower’s ability to operate as a going concern may be deemed questionable/is questionable. Management has no prior experience with similar activities, demonstrating inability to realistically address problems and meet commitments. The borrower’s asset quality is poor. The capital base is weak and insufficient to absorb continuing losses, and leverage is significantly above peers. Liquidity is poor with significant reliance on short-term borrowing to support trade debt. Key balance sheet ratios are substantially inferior to industry norms. The industry is currently trending downward or demonstrating recovery from an adverse cycle. The outlook is generally negative at this time. Timing of recovery is unclear, but expectations are that market conditions will improve within 18 - 24 months. The borrower has substantial competitive deficiencies when compared to other firms, such as excess capacity and over-supply, resulting in frequent and significant concessions and discounting. Business failures are prevalent. Collateral coverage is marginal or non-existent. Collateral may be located outside the borrower’s market area. There are no agings or certifications of accounts receivable and inventory being received from the borrower, and collateral has doubtful marketability/convertibility. If guaranteed, the guarantor has limited outside worth and is highly leveraged with a poor credit report, which may reflect liens, collection problems, or lawsuits. Doubtful – 9: An asset classified "doubtful" has all the weaknesses inherent in one that is classified "substandard-8" with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. The loan has substandard characteristics, and available information suggests that it is unlikely that the loan will be repaid in its entirety. Cash flow is insufficient to service debt. The company has had a series of substantial losses. If the current material adverse trends continue, it is unlikely the borrower will have the ability to meet the terms of the loan agreement. It may be difficult to predict the exact amount of loss, but the probability of some loss is greater than 50% . Loans are to be placed on non-accrual status when any portion is classified as doubtful. Non-accrual loans would not be classified "doubtful" as long as the collateral appears adequate to retire the outstanding balance. Management is clearly unable to address problems and meet commitments, and there is little expectation either of improvement or for sustaining the relationship with current management. The company is highly illiquid with excessive leverage. Key balance sheet ratios are at unacceptable levels, and downturn is severe. Timing of recovery is undeterminable. The company is unable to compete; collateral and guarantees provide limited support. Loss – 10: An asset classified "loss" is considered uncollectable and of such little value that its continuance on the books is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset, even though partial recovery may be affected in the future. The loan has doubtful characteristics, but the loan will definitely not be repaid in full. Debt service coverage clearly reflects the company's inability to service debt. The borrower cannot generate sufficient cash flow to cover fixed charges. All near-term and long-term trends concerning cash flow and earnings are negative. The damage to the financial condition of the company cannot be reversed at this point in time. Collateral and guarantees provide no support. The composition of the loan portfolio as of the periods indicated is as follows: (In Thousands) Commercial Real estate construction one-to-four family Real estate construction other Real estate term owner occupied Real estate term non-owner occupied Real estate term other Consumer secured by 1st deeds of trust Consumer other Total December 31, 2015 AQR Pass $313,689 $44,488 $74,931 $112,248 $313,710 $37,938 $26,015 $28,882 $951,901 AQR Special Mention 536 — — — — 91 171 10 808 AQR Substandard 15,309 — — 16,515 359 — 487 20 32,690 Subtotal $329,534 $44,488 $74,931 $128,763 $314,069 $38,029 $26,673 $28,912 $985,399 Less: Unearned origination fees, net of origination costs (4,612 ) Total loans $980,787 December 31, 2014 AQR Pass $291,020 $34,651 $91,195 $103,049 $282,774 $36,705 $31,118 $31,399 $901,911 AQR Special Mention 11,618 — — 5,817 2,095 39 396 47 20,012 AQR Substandard 3,905 191 — 606 1,747 150 486 47 7,132 Subtotal $306,543 $34,842 $91,195 $109,472 $286,616 $36,894 $32,000 $31,493 $929,055 Less: Unearned origination fees, net of origination costs (4,551 ) Total loans $924,504 At December 31, 2015 , approximately 76% of the Company’s loans are secured by real estate and 3% are unsecured. Approximately 21% are for general commercial uses, including professional, retail, and small businesses. Repayment is expected from the borrowers’ cash flow or, secondarily, the collateral. The Company’s exposure to credit loss, if any, is the outstanding amount of the loan if the collateral is proved to be of no value. Nonaccrual Loans Nonaccrual loans net of government guarantees totaled $2.1 million and $3.5 million December 31, 2015 and December 31, 2014 , respectively. Interest income which would have been earned on nonaccrual loans for 2015 , 2014 , and 2013 amounted to $276,000 , $218,000 , and $188,000 , respectively. Additionally, the Company recognized interest income of $484,000 , $350,000 , and $250,000 in 2015 , 2014 , and 2013 , respectively, related to interest collected on nonaccrual loans whose principal has been paid down to zero. Nonaccrual loans at the periods indicated, by segment are presented below: (In Thousands) December 31, 2015 December 31, 2014 Commercial $3,013 $2,031 Real estate construction one-to-four family — 191 Real estate term owner occupied 38 135 Real estate term non-owner occupied 359 1,746 Real estate term other — 39 Consumer secured by 1st deeds of trust 256 485 Consumer other 20 47 Total nonaccrual loans 3,686 4,674 Government guarantees on nonperforming loans (1,561 ) (1,178 ) Net nonaccrual loans $2,125 $3,496 Past Due Loans There were no past due loans greater than 90 days and still accruing interest at either December 31, 2015 or 2014 . Past due loans and nonaccrual loans at the periods indicated are presented below by loan class: (In Thousands) 30-59 Days Past Due Still Accruing 60-89 Days Past Due Still Accruing Greater Than 90 Days Still Accruing Nonaccrual Total Past Due Current Total December 31, 2015 AQR Pass $601 $— $— $— $601 $951,300 $951,901 AQR Special Mention 312 — — — 312 496 808 AQR Substandard 216 21 — 3,686 3,923 28,767 32,690 Subtotal $1,129 $21 $— $3,686 $4,836 $980,563 $985,399 Less: Unearned origination fees, net of origination costs (4,612 ) Total $980,787 December 31, 2014 AQR Pass $696 $545 $— $— $1,241 $900,670 $901,911 AQR Special Mention — — — — — 20,012 20,012 AQR Substandard 40 — — 4,674 4,714 2,418 7,132 Subtotal $736 $545 $— $4,674 $5,955 $923,100 $929,055 Less: Unearned origination fees, net of origination costs (4,551 ) Total $924,504 Impaired Loans At December 31, 2015 and 2014 , the recorded investment in loans that are considered to be impaired was $34.6 million and $11.3 million , respectively. The following table presents information about impaired loans by class for the years ended December 31, 2015 and 2014 : (In Thousands) Recorded Investment Unpaid Principal Balance Related Allowance December 31, 2015 With no related allowance recorded Commercial - AQR special mention $157 $157 $— Commercial - AQR substandard 14,030 14,443 — Real estate term owner occupied - AQR pass 753 753 — Real estate term owner occupied - AQR substandard 16,476 16,476 — Real estate term non-owner occupied - AQR pass 473 473 — Real estate term non-owner occupied - AQR substandard 352 352 — Real estate term other - AQR pass 699 699 — Real estate term other - AQR special mention 91 91 — Consumer secured by 1st deeds of trust - AQR pass 76 76 — Consumer secured by 1st deeds of trust - AQR substandard 472 472 — Subtotal $33,579 $33,992 $— With an allowance recorded Commercial - AQR substandard $1,061 $1,061 $344 Subtotal $1,061 $1,061 $344 Commercial - AQR special mention $157 $157 $— Commercial - AQR substandard 15,091 15,504 344 Real estate term owner-occupied - AQR pass 753 753 — Real estate term owner-occupied - AQR substandard 16,476 16,476 — Real estate term non-owner occupied - AQR pass 473 473 — Real estate term non-owner occupied - AQR substandard 352 352 — Real estate term other - AQR pass 699 699 — Real estate term other - AQR special mention 91 91 — Consumer secured by 1st deeds of trust - AQR pass 76 76 — Consumer secured by 1st deeds of trust - AQR special mention 472 472 — Total $34,640 $35,053 $344 (In Thousands) Recorded Investment Unpaid Principal Balance Related Allowance December 31, 2014 With no related allowance recorded Commercial - AQR special mention $170 $170 $— Commercial - AQR substandard 3,000 3,045 — Real estate construction one-to-four family - AQR special mention 191 191 — Real estate construction other - AQR pass 772 772 — Real estate term owner occupied - AQR pass 501 501 — Real estate term owner occupied - AQR special mention 273 273 — Real estate term owner occupied - AQR substandard 558 558 — Real estate term non-owner occupied - AQR pass 549 549 — Real estate term non-owner occupied - AQR special mention 2,088 2,088 — Real estate term non-owner occupied - AQR substandard 1,709 1,709 — Real estate term other - AQR substandard 150 150 — Consumer secured by 1st deeds of trust - AQR pass 82 82 — Consumer secured by 1st deeds of trust - AQR special mention 448 461 — Subtotal $10,491 $10,549 $— With an allowance recorded Commercial - AQR substandard $806 $806 $75 Subtotal $806 $806 $75 Commercial - AQR special mention $170 $170 $— Commercial - AQR substandard 3,806 3,851 75 Real estate construction one-to-four family - AQR special mention 191 191 — Real estate construction other - AQR pass 772 772 — Real estate term owner-occupied - AQR pass 501 501 — Real estate term owner occupied - AQR special mention 273 273 — Real estate term owner-occupied - AQR substandard 558 558 — Real estate term non-owner occupied - AQR pass 549 549 — Real estate term non-owner occupied - AQR special mention 2,088 2,088 — Real estate term non-owner occupied - AQR substandard 1,709 1,709 — Real estate term other - AQR substandard 150 150 — Consumer secured by 1st deeds of trust - AQR pass 82 82 — Consumer secured by 1st deeds of trust - AQR special mention 448 461 — Total $11,297 $11,355 $75 The unpaid principal balance included in the table above represents the recorded investment at the dates indicated, plus amounts charged off for book purposes. The following table summarizes our average recorded investment and interest income recognized on impaired loans for years ended December 31, 2015 and 2014 , respectively: Year Ended December 31, 2015 2014 (In Thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded Commercial - AQR pass $— $— $97 $2 Commercial - AQR special mention 163 13 254 23 Commercial - AQR substandard 10,738 421 1,912 94 Real estate construction one-to-four family - AQR special mention — — 175 11 Real estate construction one-to-four family - AQR substandard — — 117 — Real estate construction other - AQR pass 557 72 196 30 Real estate construction other - AQR special mention — — 605 101 Real estate construction other - AQR substandard 1,431 — — — Real estate term owner occupied - AQR pass 696 63 507 50 Real estate term owner occupied - AQR special mention 67 5 299 20 Real estate term owner occupied - AQR substandard 6,941 355 1,018 60 Real estate term non-owner occupied - AQR pass 521 75 595 94 Real estate term non-owner occupied - AQR special mention 1,080 97 2,360 253 Real estate term non-owner occupied - AQR substandard 1,141 — 1,229 — Real estate term other - AQR pass 179 13 — — Real estate term other - AQR special mention 68 6 — — Real estate term other - AQR substandard 74 7 152 14 Consumer secured by 1st deeds of trust - AQR pass 79 4 85 4 Consumer secured by 1st deeds of trust - AQR substandard 514 9 326 — Consumer other - AQR substandard — — 29 — Subtotal $24,249 $1,140 $9,956 $756 With an allowance recorded Commercial - AQR special mention $— $— $46 $6 Commercial - AQR substandard 1,668 — 356 — Real estate term other - AQR substandard 70 — — — Consumer secured by 1st deeds of trust - AQR substandard — — 175 — Consumer other - AQR substandard 10 — — — Subtotal $1,748 $— $577 $6 Total Commercial - AQR pass $— $— $97 $2 Commercial - AQR special mention 163 13 300 29 Commercial - AQR substandard 12,406 421 2,268 94 Real estate construction one-to-four family - AQR special mention — — 175 11 Real estate construction one-to-four family - AQR substandard — — 117 — Real estate construction other - AQR pass 557 72 196 30 Real estate construction other - AQR special mention — — 605 101 Real estate construction other - AQR substandard 1,431 — — — Real estate term owner-occupied - AQR pass 696 63 507 50 Real estate term owner-occupied - AQR special mention 67 5 299 20 Real estate term owner-occupied - AQR substandard 6,941 355 1,018 60 Real estate term non-owner occupied - AQR pass 521 75 595 94 Real estate term non-owner occupied - AQR special mention 1,080 97 2,360 253 Real estate term non-owner occupied - AQR substandard 1,141 — 1,229 — Real estate term other - AQR pass 179 13 — — Real estate term other - AQR special mention 68 6 — — Real estate term other - AQR substandard 144 7 152 14 Consumer secured by 1st deeds of trust - AQR pass 79 4 85 4 Consumer secured by 1st deeds of trust - AQR substandard 514 9 501 — Consumer other - AQR substandard 10 — 29 — Total Impaired Loans $25,997 $1,140 $10,533 $762 The average recorded investment was $10.9 million , and interest income recognized on impaired loans was $461,000 for the year ended December 31, 2013. Purchased Credit Impaired Loans As described in Note 2 above, the Company acquired eighteen purchased credit impaired loans from Alaska Pacific on April 1, 2014 subject to the requirements of FASB ASC 310-30 Loans and Debt Securities Acquired with Deteriorated Credit Quality . This group of loans consists primarily of commercial and commercial real estate loans, and unlike a pool of consumer mortgages, it is not practicable for the Company to analyze the accretable yield of these loans. As such, the Company has elected the cost recovery method of income recognition for these loans, and thus no accretable difference has been identified for these loans. At the acquisition date, April 1, 2014, the fair value of this group of loans was $3.9 million . The carrying value of these loans as of December 31, 2015 and 2014 were $1.6 million and $3.0 million , respectively. Troubled Debt Restructurings Loans classified as troubled debt restructurings (“TDR”) totaled $13.7 million and $7.7 million at December 31, 2015 and December 31, 2014 , respectively. A troubled debt restructuring is a loan to a borrower that is experiencing financial difficulty that has been modified from its original terms and conditions in such a way that the Company is granting the borrower a concession of some kind. The Company has granted a variety of concessions to borrowers in the form of loan modifications. The modifications granted can generally be described in the following categories: Rate Modification : A modification in which the interest rate is changed. Term Modification : A modification in which the maturity date, timing of payments or frequency of payments is changed. Payment Modification : A modification in which the dollar amount of the payment is changed, or in which a loan is converted to interest only payments for a period of time is included in this category. Combination Modification : Any other type of modification, including the use of multiple categories above. AQR pass graded loans included above in the impaired loan data are loans classified as TDRs. By definition, TDRs are considered impaired loans. All of the Company’s TDRs are included in impaired loans. The following table presents December 31, 2015 balances of loans that were restructured during 2015 : Accrual Status Nonaccrual Status Total Modifications (In Thousands) New Troubled Debt Restructurings Commercial - AQR substandard $8,891 $1,287 $10,178 Subtotal $8,891 $1,287 $10,178 Existing Troubled Debt Restructurings 2,914 648 3,562 Total $11,805 $1,935 $13,740 (In Thousands) Number of Contracts Rate Modification Term Modification Payment Modification Combination Modification Total Modifications Pre-Modification Outstanding Recorded Investment: Commercial - AQR substandard 6 $— $8,891 $— $1,173 $10,064 Total 6 $— $8,891 $— $1,173 $10,064 Post-Modification Outstanding Recorded Investment: Commercial - AQR substandard 6 $— $8,891 $— $1,287 $10,178 Total 6 $— $8,891 $— $1,287 $10,178 The Company had no commitments to extend additional credit to borrowers owing receivables whose terms have been modified in troubled debt restructurings at December 31, 2015 . There was a $304,000 charge-off on a loan that was later classified as a TDR in 2015 and were no charge offs on loans that were later classified as TDRs in 2014 . All TDRs are also classified as impaired loans and are included in the loans individually evaluated for impairment in the calculation of the Allowance. There were no TDRs with specific impairment at December 31, 2015 or 2014 . There were no loans that were restructured during 2015 , 2014 , and 2013 , respectively, that also subsequently defaulted within the first twelve months of restructure in those same periods. At December 31, 2015 and 2014 , there were no loans pledged as collateral to secure public deposits. Certain directors, and companies of which directors are principal owners, have loans and other transactions such as architectural fees with the Company. Such transactions are made on substantially the same terms, including interest rates and collateral required, as those prevailing for similar transactions of unrelated parties. An analysis of the loan transactions for the years indicated follows: (In Thousands) 2015 2014 Balance, beginning of the year $2,262 $2,336 Loans made — — Repayments 2,145 74 Balance, end of year $117 $2,262 The Company’s amount of unfunded loan commitments to these directors or their related interests on December 31, 2015 and 2014 , was $0 , respectively. |
Allowance For Loan Losses
Allowance For Loan Losses | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Leases Receivable, Allowance [Abstract] | |
Allowance for Loan Losses | Allowance for Loan Losses The following table details activity in the Allowance for the periods indicated: (In Thousands) Commercial Real estate construction one-to-four family Real estate construction other Real estate term owner occupied Real estate term non-owner occupied Real estate term other Consumer secured by 1st deed of trust Consumer other Unallocated Total 2015 Balance, beginning of period $5,643 $644 $1,653 $1,580 $4,704 $656 $285 $410 $1,148 $16,723 Charge-Offs (616 ) — — — — (81 ) (28 ) (101 ) — (826 ) Recoveries 379 — — — — 107 3 13 — 502 Provision (benefit) 500 210 (214 ) 77 811 (54 ) 4 75 345 1,754 Balance, end of period $5,906 $854 $1,439 $1,657 $5,515 $628 $264 $397 $1,493 $18,153 Balance, end of period: Individually evaluated for impairment $344 $— $— $— $— $— $— $— $— $344 Balance, end of period: Collectively evaluated for impairment $5,562 $854 $1,439 $1,657 $5,515 $628 $264 $397 $1,493 $17,809 2014 Balance, beginning of period $5,779 $557 $539 $1,583 $4,297 $537 $322 $390 $2,278 $16,282 Charge-Offs (319 ) — — (160 ) — — (59 ) (87 ) — (625 ) Recoveries 1,041 625 — — — — 4 32 — 1,702 Provision (benefit) (858 ) (538 ) 1,114 157 407 119 18 75 (1,130 ) (636 ) Balance, end of period $5,643 $644 $1,653 $1,580 $4,704 $656 $285 $410 $1,148 $16,723 Balance, end of period: Individually evaluated for impairment $75 $— $— $— $— $— $— $— $— $75 Balance, end of period: Collectively evaluated for impairment $5,568 $644 $1,653 $1,580 $4,704 $656 $285 $410 $1,148 $16,648 2013 Balance, beginning of period $6,308 $1,029 $326 $1,441 $4,065 $539 $344 $388 $1,968 $16,408 Charge-Offs (1,018 ) — — — — — (14 ) (164 ) — (1,196 ) Recoveries 1,049 77 79 — 488 — — 12 — 1,705 Provision (benefit) (560 ) (549 ) 134 142 (256 ) (2 ) (8 ) 154 310 (635 ) Balance, end of period $5,779 $557 $539 $1,583 $4,297 $537 $322 $390 $2,278 $16,282 Balance, end of period: Individually evaluated for impairment $— $— $— $— $— $— $11 $— $— $11 Balance, end of period: Collectively evaluated for impairment $5,779 $557 $539 $1,583 $4,297 $537 $311 $390 $2,278 $16,271 The following is a detail of the recorded investment in the loan portfolio, segregated by amounts evaluated individually or collectively in the Allowance at the periods indicated: (In Thousands) Commercial Real estate construction one-to-four family Real estate construction other Real estate term owner occupied Real estate term non-owner occupied Real estate term other Consumer secured by 1st deed of trust Consumer other Total December 31, 2015 Balance, end of period $329,534 $44,488 $74,931 $128,763 $314,069 $38,029 $26,673 $28,912 $985,399 Balance, end of period: Individually evaluated for impairment $15,248 $— $— $17,229 $825 $790 $548 $— $34,640 Balance, end of period: Collectively evaluated for impairment $314,286 $44,488 $74,931 $111,534 $313,244 $37,239 $26,125 $28,912 $950,759 December 31, 2014 Balance, end of period $306,543 $34,842 $91,195 $109,472 $286,616 $36,894 $32,000 $31,493 $929,055 Balance, end of period: Individually evaluated for impairment $3,976 $191 $772 $1,332 $4,346 $150 $530 $— $11,297 Balance, end of period: Collectively evaluated for impairment $302,567 $34,651 $90,423 $108,140 $282,270 $36,744 $31,470 $31,493 $917,758 The following represents the balance of the Allowance for the periods indicated segregated by segment and class: (In Thousands) Total Commercial Real estate construction 1-4 family Real estate construction other Real estate term owner occupied Real estate term non-owner occupied Real estate term other Consumer secured by 1st deeds of trust Consumer other Unallocated December 31, 2015 Individually evaluated for impairment AQR Substandard $344 $344 $— $— $— $— $— $— $— $— Collectively evaluated for impairment: AQR Pass 16,290 5,543 854 1,439 1,657 5,515 624 261 397 — AQR Special Mention 18 11 — — — — 4 3 — — AQR Substandard 8 8 — — — — — — — — Unallocated 1,493 — — — — — — — — 1,493 $18,153 $5,906 $854 $1,439 $1,657 $5,515 $628 $264 $397 $1,493 December 31, 2014 Individually evaluated for impairment: AQR Substandard $75 $75 $— $— $— $— $— $— $— $— Collectively evaluated for impairment: AQR Pass 14,643 4,938 644 1,653 1,382 4,703 651 278 394 — AQR Special Mention 832 621 — — 198 — 5 7 1 — AQR Substandard 25 9 — — — 1 — — 15 — Unallocated 1,148 — — — — — — — — 1,148 $16,723 $5,643 $644 $1,653 $1,580 $4,704 $656 $285 $410 $1,148 |
Purchased Receivables
Purchased Receivables | 12 Months Ended |
Dec. 31, 2015 | |
Purchased Receivables [Abstract] | |
Purchased Receivables | Purchased Receivables We purchase accounts receivable from our business customers and provide them with short-term working capital. We provide this service to our customers in Alaska and in Washington and the greater west coast through NFS. Our purchased receivable activity is guided by policies that outline risk management, documentation, and approval limits. The policies are reviewed and approved annually by the Board of Directors. Purchased receivables are carried at their principal amount outstanding, net of a reserve for anticipated losses that have not yet been identified, and have a maturity of less than one year. Purchased receivable balances are charged against this reserve when management believes that collection of principal is unlikely. Management evaluates the adequacy of the reserve for purchased receivable losses based on historical loss experience by segment and class of receivable and its assessment of current economic conditions. As of December 31, 2015 , the Company has one segment and class of purchased receivables. There are no purchased receivables past due at December 31, 2015 or 2014 , respectively, and there were no restructured purchased receivables in 2015 , 2014 , or 2013 . Income on purchased receivables is accrued and recognized on the balance outstanding using an effective interest method except when management believes doubt exists as to the collectability of the income or principal. As of December 31, 2015 , the Company is accruing income on all purchased receivable balances outstanding. The following table summarizes the components of net purchased receivables at December 31, for the years indicated: (In Thousands) 2015 2014 Purchased receivables $13,507 $15,543 Reserve for purchased receivable losses (181 ) (289 ) Total $13,326 $15,254 The following table sets forth information regarding changes in the purchased receivable reserve for the periods indicated: (In Thousands) 2015 2014 Balance at beginning of year $289 $273 Charge-offs — (793 ) Recoveries 30 105 Net recoveries (charge-offs) 30 (688 ) Change in reserve for purchased receivables (138 ) 704 Balance at end of year $181 $289 The Company recorded one full charge-off and one partial charge-off totaling $793,000 in 2014. The Company recorded no charge-offs in 2015. |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate [Abstract] | |
Other Real Estate Owned | Other Real Estate Owned At December 31, 2015 and 2014 , the Company held $3.1 million and $4.6 million , respectively, as OREO. The following table details net operating expense related to OREO for the years indicated: Years Ended December 31, (In Thousands) 2015 2014 2013 OREO (income) expense, net rental income and gains on sale: OREO operating expense $224 $174 $142 Impairment on OREO 361 56 112 Rental income on OREO (80 ) (3 ) (26 ) Gains on sale of OREO (315 ) (643 ) (288 ) Total $190 ($416 ) ($60 ) |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment The following summarizes the components of premises and equipment at December 31 for the years indicated: (In Thousands) Useful Life 2015 2014 Land $2,600 $2,600 Furniture and equipment 3-7 years 12,641 11,363 Tenant improvements 2-15 years 8,023 8,019 Buildings 39 years 39,233 33,830 Total Premises and Equipment 62,497 55,812 Accumulated depreciation and amortization (22,280 ) (20,169 ) Total Premises and Equipment, Net $40,217 $35,643 Depreciation expense and amortization of leasehold improvements was $2.3 million , $1.9 million , and $1.8 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Related Party Transactions: The Company paid a related party $122,000 in January 2015, and $5.4 million , and $1.2 million for the years ending December 31, 2014, and 2013, respectively, for general contracting services related to several construction projects for the Bank. The transactions which occurred in 2015, 2014, and 2013 between the Bank and the related party, were reviewed and discussed by the Governance and Nominating Committee of the Company’s Board, and were approved by the Company’s Board. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2015 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights | Mortgage Servicing Rights The following table details the activity in the Company's mortgage servicing rights ("MSR") for the year indicated: (In thousands) 2015 2014 Balance, beginning of period $1,010 $— Acquired from Alaska Pacific Bank — 1,170 Additions for new MSR capitalized 802 — Changes in fair value: Due to changes in model inputs of assumptions (1) 29 — Other (2) (187 ) (160 ) Carrying value, December 31 $1,654 $1,010 (1) Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates. (2) Represents changes due to collection/realization of expected cash flows over time. The following table details information related to our serviced mortgage loan portfolio as of December 31, 2015 and 2014: (In thousands) December 31, 2015 December 31, 2014 Balance of loans serviced for others $125,446 $96,390 MSR as a percentage of serviced loans 1.32 % 1.05 % The Company recognized servicing fees of $261,000 and $203,000 during 2015 and 2014, respectively, as a component of other noninterest income in the Company's Consolidated Statements of Income. The following table outlines the key assumptions used in measuring the fair value of mortgage servicing rights as of December 31, 2015 and 2014: 2015 2014 Constant prepayment rate 10.54 % 11.59 % Discount rate 9.10 % 9.29 % At December 31, 2015 and 2014 , the Company serviced $263.0 million and $228.6 million of commercial and mortgage loans, respectively, which had been sold to various investors without recourse. At December 31, 2015 and 2014 , the Company held $1.4 million and $1.3 million, respectively, in trust for these loans for the payment of such items as taxes, insurance, and maintenance costs. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets A summary of intangible assets and other assets is as follows: (In Thousands) 2015 2014 Intangible assets: Goodwill $22,334 $22,334 Core deposit intangible 492 663 Trade name intangible 950 950 NBG customer relationships — 88 Total $23,776 $24,035 Goodwill and Other Intangible Assets: The Company recorded $1.1 million in intangible assets related to customer relationships purchased in the acquisition of an additional 40.1% of NBG in December 2005. The Company amortized this intangible over its estimated life of ten years. Accumulated amortization related to the NBG intangible asset was $1.1 million , $1.1 million , and $943,000 at December 31, 2015, 2014 and 2013, respectively. In 2007, the Company recorded $1.8 million of goodwill and $1.3 million of core deposit intangible ("CDI") as part of the acquisition of Alaska First Bank & Trust, N.A. (“Alaska First”) stock. The Company is amortizing the CDI related to the Alaska First acquisition over its estimated useful life of ten years using an accelerated method. Accumulated amortization related to the Alaska First CDI was $1.3 million , $1.1 million , and $983,000 at December 31, 2015, 2014 and 2013, respectively. On April 1, 2014, the Company recorded $623,000 of CDI as part of the acquisition of Alaska Pacific. The Company is amortizing the CDI related to the Alaska Pacific acquisition over its estimated useful life of ten years using an accelerated method. Accumulated amortization related to the Alaska Pacific CDI was $190,000 and $85,000 at December 31, 2015 and 2014, respectively. Lastly, on December 1, 2014 the Company recorded $14.8 million of goodwill and $950,000 of trade name intangible as part of the acquisition of RML. These assets have indefinite useful lives and are not amortized. The Company performed its annual goodwill impairment testing at December 31, 2015 and 2014 in accordance with the policy described in Note 1 to the financial statements. There was no indication of impairment in the first step of the impairment test at December 31, 2015 , and accordingly the Company did not perform the second step. At December 31, 2014, the Company performed its annual impairment test using the qualitative assessment. Significant positive inputs to the qualitative assessment included the Company’s capital position; the Company’s increasing historical trends and budget-to-actual results of operations; the Company’s decreasing trends in, and current level of nonperforming assets; results of regulatory examinations; peer comparisons of net interest margin; and trends in the Company’s cash flows. Significant negative inputs to the qualitative assessment included the Company's trend of decreasing net interest margin, decreased income from our mortgage affiliate, economic uncertainty related to the recent decline in oil prices, and, while there has been a recovery in recent years, the general decline in stock prices for financial institutions as compared to pre-2008 stock prices. We believe that the positive inputs to the qualitative assessment noted above outweighed the negative inputs, and we therefore concluded that it is more likely than not that the fair value of the Company exceeds the carrying value at December 31, 2014 and that no potential impairment existed at that time. The Company recorded amortization expense of its intangible assets of $258,000 , $289,000 , and $228,000 for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Accumulated amortization for intangible assets was $6.7 million and $6.5 million at December 31, 2015 and 2014 , respectively. The future amortization expense required on these assets is as follows: (In Thousands) 2016 $135 2017 100 2018 71 2019 59 2020 48 Thereafter 79 Total $492 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets (In Thousands) 2015 2014 Other assets: Investment in Low Income Housing Partnerships $20,233 $22,862 Deferred taxes, net 9,939 10,087 Bank owned life insurance 5,887 7,375 Investment in equity method investments 4,573 4,767 Accrued interest receivable 3,620 3,373 Prepaid expenses 1,230 2,217 Taxes receivable 878 1,220 Rate lock derivative 1,514 841 Other assets 3,900 5,020 Total $51,774 $57,762 Equity Method Investments: The Company applies the equity method of accounting for the following related entities: • The Company owns a 24% interest in PWA, an investment advisory, trust, and wealth management business located in Seattle, Washington. • The Company owns a 30% interest in Homestate Mortgage Company, LLC, a mortgage origination business located in Anchorage, Alaska. Low Income Housing Partnerships: The table following shows the Company's commitments to invest in various low income housing tax credit partnerships. The Company earns a return on its investments in the form of tax credits and deductions that flow through to it as a limited partner in these partnerships. The Company recognized amortization expense of $2.7 million , $1.3 million , and $969,000 in 2015 , 2014 , and 2013 , respectively. The Company expects to fund its remaining $9.1 million in commitments on these investments through 2030. (In Thousands) Date of original commitment Years over which tax credits are earned Original commitment amount Less: life to date contributions Remaining commitment amount R4 - MVV May 2014 17 $8,518 ($824 ) $7,694 R4 - Coronado March 2013 17 10,729 (9,722 ) 1,007 WNC December 2012 16 2,500 (2,074 ) 426 USA 57 December 2006 15 3,000 (3,000 ) — Centerline XXXIII September 2006 18 3,000 (3,000 ) — Centerline XXII January 2003 18 3,000 (3,000 ) — Total $30,747 ($21,620 ) $9,127 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits: At December 31, 2015 , the scheduled maturities of certificates of deposit are as follows: (In Thousands) 2016 $87,312 2017 39,535 2018 7,664 2019 987 2020 900 Thereafter 268 Total $136,666 The Company is a member of the Certificate of Deposit Account Registry System (“CDARS”) which is a network of over 3,000 banks throughout the United States. The CDARS system was founded in 2003 and allows participating banks to exchange FDIC insurance coverage so that 100% of the balance of their customers’ certificates of deposit are fully subject to FDIC insurance. The system also allows for investment of banks’ own investment dollars in the form of domestic certificates of deposit. The Company had zero and $1 million in CDARS certificates of deposits at December 31, 2015 and 2014 , respectively. At December 31, 2015 and 2014 , the Company did not hold any certificates of deposit from a public entity collateralized by letters of credit issued by the FHLB. At December 31, 2015 and 2014 , the Company did not have any securities pledged to collateralize certificates of deposit from a public entity. At December 31, 2015 and 2014 , the Company held $3.4 million and $5.4 million , respectively, in deposits for related parties, including directors, executive officers, and their affiliates. Interest expense: Interest expense on deposits is presented below: (In Thousands) 2015 2014 2013 Interest-bearing demand accounts $63 $59 $54 Money market accounts 404 388 338 Savings accounts 470 511 485 Certificates of deposit $100,000 and greater 754 292 236 Certificates of deposit less than $100,000 248 169 128 Total $1,939 $1,419 $1,241 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The Company has a maximum line of credit with the FHLB approximating 35% of eligible assets. FHLB advances are subject to collateral criteria that require the Company to pledge assets under a blanket pledge arrangement as collateral for its borrowings from the FHLB. Based on assets currently pledged and advances currently outstanding at December 31, 2015, the Company's available borrowing line is $189.5 million , representing approximately 13% of total assets. Additional advances of up to 35% of eligible assets, or $524.8 million , are dependent on the availability of acceptable collateral such as marketable securities or real estate loans, although all FHLB advances are secured by a blanket pledge of the Company’s assets. The Company has an outstanding FHLB CIP advance of $2.1 million and $2.2 million as of December 31, 2015 and 2014, respectively, that was originated on March 22, 2013 and is included in long term borrowings. This advance was originated to match fund a loan to one borrower for the construction of a low income housing project that qualifies for a long term fixed interest rate; it has an eighteen year term with a 30 year amortization period, which mirrors the term of the term real estate loan made to the borrower. The Federal Reserve Bank is holding $81.0 million of loans as collateral to secure available borrowing lines through the discount window of $40.2 million at December 31, 2015 . There were no discount window advances outstanding at December 31, 2015 and 2014 . The Company paid less than $1,000 in 2015 and 2014 in interest on this agreement. RML has a warehouse line of credit with a correspondent bank which is secured by eligible loans held for sale. The line of credit contains restrictive covenants on net worth requirements, debt-to-net worth ratios, distributions to members, transactions with affiliates, liquidity requirements, capital expenditures, and interest coverage. The outstanding balance of this line was zero and $24.1 million at December 31, 2015 and December 31, 2014, respectively. The loan matures on August 10, 2016 and has a floating interest rate of 2.625% over LIBOR with a floor of 2.875% . The loan had an interest rate of 3.063% and 2.875% at December 31, 2015 and 2014, respectively. The Company is subject to further regulatory standards issued by the State of Alaska which limit the amount of outstanding debt to 15% of total assets or $224.9 million and $217.4 million at December 31, 2015 and 2014, respectively. Securities sold under agreements to repurchase were $31.4 million and $19.8 million , respectively, for December 31, 2015 and 2014 . The Company was paying an average rate of 0.10% and 0.08% on these agreements at December 31, 2015 and 2014 , respectively. The average balance outstanding of securities sold under agreement to repurchase during 2015 and 2014 was $23.7 million and $20.1 million , respectively, and the maximum outstanding at any month-end was $37.1 million and $22.4 million , respectively, during the same time periods. The securities sold under agreement to repurchase are held by the Federal Home Loan Bank under the Company’s control. The future principal payments that are required on the Company’s borrowings as of December 31, 2015 , are as follows: (In Thousands) 2016 $31,466 2017 48 2018 50 2019 52 2020 54 Thereafter 1,870 Total $33,540 The Company recognized interest expense of $469,000 , $184,000 , and $340,000 in 2015 , 2014 , and 2013 , respectively. The average interest rates paid on long-term debt in the same periods was 2.52% , 3.51% , and 5.13% , respectively. |
Junior Subordinated Debentures
Junior Subordinated Debentures | 12 Months Ended |
Dec. 31, 2015 | |
Junior Subordinated Notes [Abstract] | |
Junior Subordinated Debentures | Junior Subordinated Debentures In May of 2003, the Company formed a wholly-owned Delaware statutory business trust subsidiary, Northrim Capital Trust 1 (the “Trust”), which issued $8 million of guaranteed undivided beneficial interests in the Company’s Junior Subordinated Deferrable Interest Debentures (“Trust Preferred Securities”). These debentures qualify as Tier 1 capital under Federal Reserve Board guidelines. All of the common securities of the Trust are owned by the Company. The proceeds from the issuance of the common securities and the Trust Preferred Securities were used by the Trust to purchase $8.2 million of junior subordinated debentures of the Company. The Trust is not consolidated in the Company’s financial statements in accordance with GAAP; therefore, the Company has recorded its investment in the Trust as another asset and the subordinated debentures as a liability. The debentures, which represent the sole asset of the Trust, accrue and pay distributions quarterly at a variable rate of 90 -day LIBOR plus 3.15% per annum, adjusted quarterly, of the stated liquidation value of $1,000 per capital security. The interest rate on these debentures was 3.51% at December 31, 2015 . The interest cost to the Company on these debentures was $289,000 , $274,000 , and $278,000 in 2015 , 2014 , and 2013 , respectively. The Company has entered into contractual arrangements which, taken collectively, fully and unconditionally guarantee payment of: (i) accrued and unpaid distributions required to be paid on the Trust Preferred Securities; (ii) the redemption price with respect to any Trust Preferred Securities called for redemption by the Trust; and (iii) payments due upon a voluntary or involuntary dissolution, winding up or liquidation of the Trust. The Trust Preferred Securities are mandatorily redeemable upon maturity of the debentures on May 15, 2033 , or upon earlier redemption as provided in the indenture. The Company has the right to redeem the debentures purchased by the Trust in whole or in part, on or after May 15, 2008 . As specified in the indenture, if the debentures are redeemed prior to maturity, the redemption price will be the principal amount and any accrued but unpaid interest. In December of 2005, the Company formed a wholly-owned Connecticut statutory business trust subsidiary, Northrim Statutory Trust 2 (the “Trust 2”), which issued $10 million of guaranteed undivided beneficial interests in the Company’s Junior Subordinated Deferrable Interest Debentures (“Trust Preferred Securities 2”). These debentures qualify as Tier 1 capital under Federal Reserve Board guidelines. All of the common securities of Trust 2 are owned by the Company. The proceeds from the issuance of the common securities and the Trust Preferred Securities 2 were used by Trust 2 to purchase $10.3 million of junior subordinated debentures of the Company. Trust 2 is not consolidated in the Company’s financial statements in accordance with GAAP; therefore, the Company has recorded its investment in Trust 2 as an other asset and the subordinated debentures as a liability. The debentures, which represent the sole asset of Trust 2, accrue and pay distributions quarterly at a variable rate of 90 -day LIBOR plus 1.37% per annum, adjusted quarterly, of the stated liquidation value of $1,000 per capital security. The interest rate on these debentures was 1.88% at December 31, 2015 . The interest cost to the Company on these debentures was $174,000 , $163,000 , and $167,000 in 2015 , 2014 , and 2013 , respectively. The Company has entered into contractual arrangements which, taken collectively, fully and unconditionally guarantee payment of: (i) accrued and unpaid distributions required to be paid on the Trust Preferred Securities 2; (ii) the redemption price with respect to any Trust Preferred Securities 2 called for redemption by Trust 2; and (iii) payments due upon a voluntary or involuntary dissolution, winding up or liquidation of Trust 2. The Trust Preferred Securities 2 are mandatorily redeemable upon maturity of the debentures on March 15, 2036 , or upon earlier redemption as provided in the indenture. The Company has the right to redeem the debentures purchased by Trust 2 in whole or in part, on or after March 15, 2011 . As specified in the indenture, if the debentures are redeemed prior to maturity, the redemption price will be the principal amount and any accrued but unpaid interest. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Employees of Northrim Bank are eligible to participate in the Bank's 401(k) plan. Bank employees may elect to have a portion of their salary contributed to the 401(k) plan in accordance with Section 401(k) of the Internal Revenue Code of 1986. Bank employees may participate in the plan if they work more than 1,000 hours per year. Under the plan, each eligible participant may contribute a percentage of their eligible salary to a maximum established by the IRS, and Northrim Bank provides for a mandatory $0.25 match for each $1.00 contributed by an employee up to 6% of the employee’s salary. Northrim Bank may increase the matching contribution at the discretion of the Board of Directors. The plan also allows Northrim Bank to make a discretionary contribution on behalf of eligible employees based on their length of service to Northrim Bank. To be eligible for 401(k) contributions, participants must be employed at the end of the plan year, except in the case of death, disability or retirement. Northrim Bank expensed $759,000 , $774,000 , and $673,000 , in 2015 , 2014 , and 2013 , respectively, for 401(k) contributions and included these expenses in salaries and other personal expense in the Consolidated Statements of Income. Employees of RML may participate in RML's 401(k) plan. Participation in the plan is available to RML employees who have completed three months of service with the Company and have attained the age of twenty and one-half years. RML expensed $172,000 in 2015 and $12,000 in December 2014 for 401(k) contributions and included this expense in salaries and other personal expenses in the Consolidated Statements of Income. On July 1, 1994, Northrim Bank implemented a Supplemental Executive Retirement Plan for executive officers of Northrim Bank whose retirement benefits under the 401(k) plan have been limited under provisions of the Internal Revenue Code. Contributions to this plan totaled $228,000 , $184,000 , and $220,000 , in 2015 , 2014 , and 2013 , respectively. These expenses are included in salaries and other personnel expense in the Consolidated Statements of Income. At December 31, 2015 and 2014 , the balance of the accrued liability for this plan was included in other liabilities and totaled $2.5 million , respectively. RML has established a Supplemental Executive Retirement Plan ("SERP"), under which RML has agreed to make payment to certain key executives, based on contributions made by RML to the plan and a variable rate of return. The SERP's assets primarily consist of the cash surrender value of life insurance policies. Contributions and earnings made to the participant accounts to the SERP are vested over ten years. The Company recorded expense of $692,000 in 2015 and $87,000 in December 2014. RML's recorded obligation under the SERP amounted to $2.9 million and $4.4 million at December 31, 2015 and 2014, respectively, and was included in other liabilities. In February of 2002, Northrim Bank implemented a non-qualified deferred compensation plan in which certain of the executive officers participate. Northrim Bank's net liability under this plan is dependent upon market gains and losses on assets held in the plan. Northrim Bank recognized an increase in its liability of $99,000 in 2015, an increase of $140,000 in 2014, and a decrease in its liability of $99,000 in 2013. These expenses are included in salaries and other personnel expense in the Consolidated Statements of Income. At December 31, 2015 and 2014 , the balance of the accrued liability for this plan was included in other liabilities and totaled $1.4 million and $1.3 million , respectively. In November of 2011, Northrim Bank implemented a Profit Sharing Plan. Executive officers, in addition to all employees of Northrim Bank who commenced employment prior to the January 1 that precedes or coincides with a performance period, are eligible to participate in payments made from a profit sharing pool calculated in accordance with the provisions of the Profit Sharing Plan. The aggregate amount to be paid to employees under the Profit Sharing Plan is determined using performance goals that are established by the Compensation Committee of the Board. If the performance goals are met for the year, the profit sharing pool for the period is calculated based on a formula that is also approved by the Compensation Committee each year. The Compensation Committee approved management’s recommendation based upon the calculated payout under the Profit Sharing Plan’s methodology resulting in aggregate payouts of $1.2 million, $1 million, and $858,000 for 2015 , 2014 , and 2013 , respectively. Information concerning the calculation of employee payments under the Profit Sharing Plan is set forth under the heading “Performance Based Annual Payment” in the Company’s definitive proxy statement for the 2016 Annual Shareholders’ Meeting and is incorporated into this report by reference. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases: Rental expense under leases for equipment and premises was $2.8 million, $1.3 million, and $667,000 in 2015 , 2014 , and 2013 , respectively. The Company's required minimum rental payments on non-cancelable leases as of December 31, 2015 , are as follows: (In Thousands) 2016 $2,575 2017 2,181 2018 2,030 2019 2,008 2020 1,589 Thereafter 12,222 Total $22,605 Rental income under leases was $447,000 , $260,000 and $108,000 in 2015 , 2014 , and 2013 , respectively. The Company's future required minimum rental receipts on non-cancelable leases as of December 31, 2015 , are as follows: (In Thousands) 2016 $405 2017 408 2018 392 2019 399 2020 406 Thereafter 239 Total $2,249 Employee benefit plans: The Company is self-insured for medical, dental, and vision plan benefits provided to employees. The Company has obtained stop-loss insurance to limit total medical claims in any one year to $140,000 per covered individual. The Company has established a liability for outstanding incurred but unreported claims. While management uses what it believes are pertinent factors in estimating the liability, it is subject to change due to claim experience, type of claims, and rising medical costs. Earn-out on RML purchase: The Company purchased RML on December 1, 2014. Part of the purchase agreement contained an earn-out provision that requires the Company to make annual cash payments to the previous owners of RML over a five year period, provided that the annual adjusted earnings of RML achieves thresholds specified in the purchase agreement during that period. The Company recorded a $7.3 million contingent liability for this earn-out provision in conjunction with the purchase of RML. The Company recorded an additional liability in 2015 of $4.1 million and made payments to the previous owners of RML totaling approximately $4.9 million . The balance was $ 6.6 million and $ 7.3 million at December 31, 2015 and 2014, respectively. See Note 2 for a detailed discussion of the earn-out provision. Legal proceeding: The Company from time to time may be involved with disputes, claims, and litigation related to the conduct of its banking business. In the opinion of management, the resolution of these matters will not have a material effect on the Company’s financial position, results of operations, or cash flows. Financial Instruments with Off-Balance-Sheet Risk: In the ordinary course of business, the Company enters into various types of transactions that involve financial instruments with off-balance sheet risk. These instruments include commitments to extend credit and standby letters of credit and are not reflected in the accompanying balance sheets. These transactions may involve to varying degrees credit and interest rate risk in excess of the amount, if any, recognized in the balance sheets. Management does not anticipate any loss as a result of these commitments. The Company’s off-balance sheet credit risk exposure is the contractual amount of commitments to extend credit and standby letters of credit. The Company applies the same credit standards to these contracts as it uses in its lending process. (In Thousands) 2015 2014 Off-balance sheet commitments: Commitments to extend credit $222,387 $219,349 Commitments to originate loans held for sale $71,280 $39,567 Standby letters of credit $6,399 $6,004 Commitments to extend credit are agreements to lend to customers. These commitments have specified interest rates and generally have fixed expiration dates but may be terminated by the Company if certain conditions of the contract are violated. Although currently subject to draw down, many of the commitments do not necessarily represent future cash requirements. Collateral held relating to these commitments varies, but generally includes real estate, inventory, accounts receivable, and equipment. Mortgage loans sold to investors may be sold with servicing rights released, for which the Company makes only standard legal representations and warranties as to meeting certain underwriting and collateral documentation standards. In the past two years, the Company has had to repurchase four loans due to deficiencies in underwriting or loan documentation and has not realized significant losses related to these repurchases. Management believes that any liabilities that may result from such recourse provisions are not significant. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Credit risk arises in these transactions from the possibility that a customer may not be able to repay the Company upon default of performance. Collateral held for standby letters of credit is based on an individual evaluation of each customer’s creditworthiness. The Company has a reserve for losses related to these commitments and letters of credit that is recorded in other liabilities on the consolidated balance sheets. The reserve was $114,000 and $112,000 as of December 31, 2015 and 2014 , respectively. Capital Expenditures and Commitments: At December 31, 2015, the Company has capital commitments of $606,000 related to the planned improvements to the Company’s corporate office building and remaining commitments related to a new branch that opened in 2015. The Company expects these capital expenditures to be incurred in 2016. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company enters into interest rate swaps with commercial banking customers which are offset with a corresponding swap agreement with a third party financial institution (“counterparty”). The Company has agreements with its counterparties that contain provisions that provide that if the Company fails to maintain its status as a well-capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. These agreements also require that the Company and the counterparty collateralize any fair value shortfalls that exceed $250,000 with eligible collateral, which includes cash and securities backed with the full faith and credit of the federal government. Similarly, the Company could be required to settle its obligations under the agreement if specific regulatory events occur, such as if the Company were issued a prompt corrective action directive or a cease and desist order, or if certain regulatory ratios fall below specified levels. The Company pledged $216,000 and zero in available for sale securities to collateralize fair value shortfalls on interest rate swap agreements as of December 31, 2015 and 2014, respectively. The Company had interest rate swaps with an aggregate notional amount of $21.3 million and $23.6 million at December 31, 2015 and December 31, 2014 , respectively. At December 31, 2015 , the notional amount of interest rate swaps is made up of two swaps totaling $10.7 million variable to fixed rate swaps to commercial loan customers and two swaps totaling $10.7 million fixed to variable rate swaps with a counterparty. Changes in fair value from these four interest rate swaps offset each other in the 2015 and 2014 . Additionally, the Company recognized $180,000 in fee income related to interest rate swaps in 2013 and did not recognize any fee income related to interest rate swaps in 2015 and 2014 . Interest rate swap income is recorded in other income on the Consolidated Statements of Income. The Company also uses derivatives to hedge the risk of changes in the fair values of interest rate lock commitments. The Company enters into commitments to originate residential mortgage loans, and it enters into forward delivery contracts to sell mortgage-backed securities to broker/dealers at specific prices and dates in order to hedge the interest rate risk in its residential mortgage loan commitments. Market risk with respect to commitments to originate loans arises from changes in the value of contractual positions due to changes in interest rates. At December 31, 2015 and 2014, RML had commitments to originate mortgage loans held for sale totaling $71.3 million and $39.6 million , respectively. Changes in the value of RML's interest rate derivatives are recorded in the mortgage banking income on the Consolidated Statements of Income. None of the Company’s derivatives are designated as hedging instruments. Rather, they are accounted for as free-standing derivatives, or economic hedges, with changes in the fair value of the derivatives reported in income. The Company primarily utilizes forward interest rate contracts in its derivative risk management strategy. The following table presents the fair value of derivatives not designated as hedging instruments at December 31, 2015 and December 31, 2014 : (In thousands) Asset Derivatives December 31, 2015 December 31, 2014 Balance Sheet Location Fair Value Fair Value Interest rate contracts Other assets $125 $78 Interest rate lock commitments Other assets 1,514 841 Total $1,639 $919 (In thousands) Liability Derivatives December 31, 2015 December 31, 2014 Balance Sheet Location Fair Value Fair Value Interest rate contracts Other liabilities $216 $158 Total $216 $158 The following table presents the gains of derivatives not designated as hedging instruments at December 31, 2015 and 2014: (In thousands) Income Statement Location December 31, 2015 December 31, 2014 Interest rate contracts Mortgage banking income ($422 ) ($306 ) Interest rate lock commitments Mortgage banking income 626 173 Total $204 ($133 ) Our derivative transactions with counterparties under International Swaps and Derivative Association master agreements that include “right of set-off” provisions. “Right of set-off” provisions are legally enforceable rights to offset recognized amounts and there may be an intention to settle such amounts on a net basis. We do not offset such financial instruments for financial reporting purposes. The following table summarizes the derivatives that have a right of offset as of December 31, 2015 and 2014: December 31, 2015 Gross amounts not offset in the Statement of Financial Position (In Thousands) Gross amounts of recognized assets and liabilities Gross amounts offset in the Statement of Financial Position Net amounts of assets and liabilities presented in the Statement of Financial Position Financial Instruments Collateral Posted Net Amount Asset Derivatives Interest rate contracts $125 $— $125 $— $— $125 Liability Derivatives Interest rate contracts $216 $— $216 $— $216 $— December 31, 2014 Gross amounts not offset in the Statement of Financial Position (In Thousands) Gross amounts of recognized assets and liabilities Gross amounts offset in the Statement of Financial Position Net amounts of assets and liabilities presented in the Statement of Financial Position Financial Instruments Collateral Posted Net Amount Asset Derivatives Interest rate contracts $78 $— $78 $— $— $78 Liability Derivatives Interest rate contracts $158 $— $158 $— $— $158 |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2015 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Common Stock | Common Stock Quarterly cash dividends were paid aggregating to $5.1 million , $4.8 million , and $4.2 million , or $0.74 per share, $0.70 per share, and $0.64 per share, in 2015 , 2014 , and 2013 , respectively. On February 25, 2016 , the Board of Directors declared a $0.19 per share cash dividend payable on March 18, 2016 , to shareholders of record on March 10, 2016 . Federal and State regulations place certain limitations on the payment of dividends by the Company. In September 2002, the Company’s Board of Directors approved a plan whereby it would periodically repurchase for cash up to approximately 5% of its shares of common stock in the open market. At December, 31, 2015 , there are 227,242 shares available under the stock repurchase program. The Company intends to continue to repurchase its stock from time to time depending upon market conditions. The Company can make no assurances that it will continue this program or that it will repurchase all of the authorized shares. No repurchases occurred during 2015 and 2014 . |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock-Based Compensation The Company adopted the 2014 Stock Option Plan (“2014 Plan”) following shareholder approval of the 2014 Plan at the 2014 Annual Meeting. Subsequent to the adoption of the 2014 Plan, no additional grants may be issued under the prior plans. The 2014 Plan provides for grants of up to 350,000 shares, which includes any shares subject to stock awards under the previous stock option plans. Stock Options: Under the 2014 Plan and previous plans, certain key employees have been granted the option to purchase set amounts of common stock at the market price on the day the option was granted. Optionees, at their own discretion, may cover the cost of exercise through the exchange at the then fair value of already owned shares of the Company’s stock. Options are granted for a 10 -year period and vest on a pro-rata basis over the initial three years from grant. The Company measures the fair value of each stock option at the date of grant using the Black-Scholes option pricing model using assumptions noted in the following table. Expected volatility is based on the historical volatility of the price of the Company’s common stock. The Company uses historical data to estimate option exercise and stock option forfeiture rates within the valuation model. The expected term of options granted is determined based on historical experience with similar options and represents the period of time that options granted are expected to be outstanding. The expected dividend yield is based on dividend trends and the market value of the Company’s common stock at the time of grant. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The following assumptions were used to determine the fair value of stock options as of the grant date to determine compensation expense for the years ended December 31, 2015 , 2014 , and 2013 : Stock Options: 2015 2014 2013 Grant date fair value $7.01 $6.73 $5.59 Expected life of options 8 years 8 years 8 years Risk-free interest rate 2.17 % 2.21 % 2.30 % Dividend yield rate 2.64 % 2.64 % 2.90 % Price volatility 28.63 % 28.93 % 28.89 % The following table summarizes stock option activity during 2015 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life, in Years Outstanding at January 1, 2015 179,990 $21.83 Granted 36,582 28.76 Forfeited (602 ) 22.30 Exercised (16,223 ) 22.80 Outstanding at December 31, 2015 199,747 $23.02 3.91 The aggregate intrinsic value of the stock options is the total pretax intrinsic value (i.e., the difference between the Company’s closing stock price on December 31, 2015 and the exercise price, times the number of shares) that would have been received by the option holders had all the option holders exercised their options on December 31, 2015 . This amount changes based on the fair value of the Company’s stock. The total intrinsic value of options outstanding and exercisable for the years ended December 31, 2015 , 2014 , and 2013 was $794,000 , $760,000 , and $883,000 , respectively. The total intrinsic value of options exercised for the years ended December 31, 2015 , 2014 , and 2013 was $82,000 , $224,000 , and $92,000 , respectively. Proceeds from the exercise of stock options and vesting of restricted stock in 2015 , 2014 , and 2013 were $370,000 , $897,000 , and $165,000 respectively. The Company withheld $358,000 , $872,000 , and $170,000 to pay for stock option exercises or income taxes that resulted from the exercise of stock options in 2015 , 2014 , and 2013 , respectively. For the year ended December 31, 2015 , 2014 and 2013 , the Company recognized $96,000 , $68,000 , and $87,000 , respectively, in stock option compensation expense as a component of salaries and other personnel expense. As of December 31, 2015 there was approximately $346,000 of total unrecognized compensation expense related to non-vested options which is expected to be recognized over the weighted-average vesting period of 2.5 years. Restricted Stock Units: The Company grants restricted stock units to certain key employees periodically. Recipients of restricted stock units do not pay any cash consideration to the Company for the shares and receive all dividends with respect to such shares when the shares vest. Restricted stock units cliff vest at the end of a three -year time period. The following table summarizes restricted stock unit activity during 2015 : Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life, in Years Outstanding at January 1, 2015 59,486 $24.03 Granted 21,437 28.76 Vested (17,936 ) 20.35 Forfeited — — Outstanding at December 31, 2015 62,987 $26.69 1.90 The total intrinsic value of restricted stock units vested for the years ended December 31, 2015 , 2014 , and 2013 was $510,000 , $438,000 , and $657,000 , respectively. For the year ended December 31, 2015 , 2014 and 2013 , the Company recognized $512,000 , $292,000 , and $419,000 , respectively, in restricted stock unit compensation expense as a component of salaries and other personnel expense. As of December 31, 2015 , there was approximately $1.2 million of total unrecognized compensation expense related to non-vested options which is expected to be recognized over the weighted-average vesting period of 2.2 years. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Matters | Regulatory Matters The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory practices. The Company’s and the Bank’s capital amounts and classification are also subject to qualitative judgment by the regulators about components, risk weightings, and other factors. Federal banking agencies have established minimum amounts and ratios of common equity Tier 1 capital, total, and Tier I capital to risk-weighted assets, and of Tier I capital to average assets. The regulations set forth the definitions of capital, risk-weighted and average assets. Management believes, as of December 31, 2015 , that the Company and the Bank met all capital adequacy requirements. In July 2013, federal banking regulators (including the FDIC and the FRB) adopted new capital rules (the “Rules”). The Rules apply to both depository institutions (such as the Bank) and their holding companies (such as the Company). The Rules reflect, in part, certain standards initially adopted by the Basel Committee on Banking Supervision in December 2010 (which standards are commonly referred to as “Basel III”) as well as requirements contemplated by the Dodd-Frank Act. Under the Rules, beginning in 2015, both the Company and the Bank are required to meet more stringent minimum capital requirements. The Rules implemented a new capital ratio of common equity Tier 1 capital to risk-based assets. Common equity Tier 1 capital generally consists of retained earnings and common stock instruments (subject to certain adjustments), as well as accumulated other comprehensive income (“AOCI”) except to the extent that the Company and the Bank exercise a one-time irrevocable option to exclude certain components of AOCI. The Company and the Bank are each required to have a common equity Tier 1 capital ratio of 4.5% as well as a Tier 1 leverage ratio of 4.0% , a Tier 1 risk-based ratio of 6.0% and a total risk-based ratio of 8.0% . In addition to the preceding requirements, both the Company and the Bank are required to establish a “conservation buffer,” consisting of common equity Tier 1 capital, which is at least 2.5% above each of the preceding common equity Tier 1 capital ratio, the Tier 1 risk-based ratio and the total risk-based ratio. An institution that does not meet the conservation buffer is subject to restrictions on certain activities including payment of dividends, stock repurchases and discretionary bonuses to executive officers. The tables below illustrate the capital requirements for the Company and the Bank and the actual capital ratios for each entity that exceed these requirements. Management intends to maintain capital ratios in 2016 in excess of the FDIC’s “well-capitalized” classification. The dividends that the Bank pays to the Company are limited to the extent necessary for the Bank to meet the regulatory requirements of a “well-capitalized” bank. The capital ratios for the Company exceed those for the Bank primarily because the $18 million trust preferred securities offerings that the Company completed in the second quarter of 2003 and in the fourth quarter of 2005 are included in the Company’s capital for regulatory purposes although they are accounted for as a liability in its financial statements. The trust preferred securities are not accounted for on the Bank’s financial statements nor are they included in its capital. As a result, the Company has $18 million more in regulatory capital than the Bank at December 31, 2015 and 2014 , which explains most of the difference in the capital ratios for the two entities. Northrim BanCorp, Inc. Actual Adequately-Capitalized Well-Capitalized (In Thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2015: Common equity tier 1 capital (to risk-weighted assets) $154,464 12.01 % $57,876 ≥ 4.5 % $83,598 ≥ 6.5 % Total Capital (to risk-weighted assets) $187,761 14.60 % $102,883 ≥ 8 % $128,603 ≥ 10 % Tier I Capital (to risk-weighted assets) $171,653 13.34 % $77,205 ≥ 6 % $102,940 ≥ 8 % Tier I Capital (to average assets) $171,653 11.20 % $61,305 ≥ 4 % $76,631 ≥ 5 % As of December 31, 2014: Total Capital (to risk-weighted assets) $175,256 14.31 % $97,977 ≥ 8 % $122,471 ≥ 10 % Tier I Capital (to risk-weighted assets) $159,925 13.06 % $48,982 ≥ 4 % $73,472 ≥ 6 % Tier I Capital (to average assets) $159,925 11.21 % $57,065 ≥ 4 % $71,331 ≥ 5 % Northrim Bank Actual Adequately-Capitalized Well-Capitalized (In Thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2015: Common equity tier 1 capital (to risk-weighted assets) $156,317 12.21 % $57,611 ≥ 4.5 % $83,215 ≥ 6.5 % Total Capital (to risk-weighted assets) $171,662 13.41 % $102,408 ≥ 8 % $128,010 ≥ 10 % Tier I Capital (to risk-weighted assets) $155,630 12.16 % $76,791 ≥ 6 % $102,388 ≥ 8 % Tier I Capital (to average assets) $155,630 10.18 % $61,151 ≥ 4 % $76,439 ≥ 5 % As of December 31, 2014: Total Capital (to risk-weighted assets) $162,125 13.30 % $97,519 ≥ 8 % $121,898 ≥ 10 % Tier I Capital (to risk-weighted assets) $146,869 12.05 % $48,753 ≥ 4 % $73,130 ≥ 6 % Tier I Capital (to average assets) $146,869 10.35 % $56,761 ≥ 4 % $70,951 ≥ 5 % |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes At December 31, 2015 and 2014 , the Company had $878,000 and $1.2 million in total taxes receivable, respectively, included in other assets. The Company realized $2.4 million, $1.3 million, and $955,000 in tax credits related to its investments in low income housing tax credit partnerships for 2015 , 2014 , and 2013 respectively. Additionally, in 2014, the Company purchased and utilized $59,000 in Alaska film tax credits from the State of Alaska. Components of the provision for income taxes are as follows: (In Thousands) Current Tax Expense (Benefit) Deferred Expense(Benefit) Total Expense 2015: Federal $4,752 $127 $4,879 State 1,200 21 1,221 Amortization of investment in low income housing tax credit partnerships 2,684 — 2,684 Total $8,636 $148 $8,784 2014: Federal $6,589 ($1,117 ) $5,472 State 1,558 (194 ) 1,364 Amortization of investment in low income housing tax credit partnerships 1,337 — 1,337 Total $9,484 ($1,311 ) $8,173 2013: Federal $3,227 $1,034 $4,261 State 835 181 1,016 Amortization of investment in low income housing tax credit partnerships 969 — 969 Total $5,031 $1,215 $6,246 The actual expense for 2015 , 2014 , and 2013 , differs from the “expected” tax expense (computed by applying the U.S. Federal Statutory Tax Rate of 35% for the year ended December 31, 2015 , 2014 , and 2013 ) as follows: (In Thousands) 2015 2014 2013 Computed “expected” income tax expense $8,552 $8,646 $6,192 State income taxes, net 794 886 660 Non-deductible merger expenses — 130 — Tax-exempt interest on investment securities (507 ) (415 ) (461 ) Tax-exempt gain on purchase of mortgage affiliate — (1,050 ) — Amortization of investment in low income housing tax credit partnerships 2,684 1,337 969 Low income housing credits (2,446 ) (1,298 ) (955 ) Other (293 ) (63 ) (159 ) Total $8,784 $8,173 $6,246 The components of the net deferred tax asset are as follows: (In Thousands) 2015 2014 2013 Deferred Tax Asset: Allowance for loan losses $7,082 $5,900 $6,543 Loan fees, net of costs 1,896 1,871 1,653 Depreciation and amortization (64 ) (60 ) 446 Other real estate owned 46 50 174 Deferred compensation 2,005 1,691 1,665 Net operating loss carryforwards 73 589 — Equity compensation 578 502 507 Loan discount 476 1,003 — Fair market value adjustment on certificates of deposit 283 321 — Other 1,380 1,636 1,122 Total Deferred Tax Asset $13,755 $13,503 $12,110 Deferred Tax Liability: Unrealized gain on available-for-sale investment securities $235 ($173 ) ($451 ) Intangible amortization (2,494 ) (2,206 ) (1,949 ) Mortgage servicing rights (415 ) — — FHLB stock repurchase and dividends (686 ) (306 ) (348 ) Other (456 ) (731 ) (586 ) Total Deferred Tax Liability ($3,816 ) ($3,416 ) ($3,334 ) Net Deferred Tax Asset $9,939 $10,087 $8,776 A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized. The primary source of recovery of the deferred tax asset will be future taxable income. Management believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax asset. The deferred tax asset is included in other assets. The Company acquired Alaska Pacific on April 1, 2014. Alaska Pacific was founded in 1935, and was originally operated as a mutual savings and loan association until 1999 when a mutual to stock conversion was completed. As a taxpayer with a thrift charter, Alaska Pacific was able to use the percentage of taxable income method of accounting for tax basis bad debts prior to August of 1996. In August 1996, the Small Business Job Protection Act of 1996 (“the Act”) was signed into law. Under the Act, the percentage of taxable income method of accounting for tax basis bad debts is no longer available effective for the years ending after December 31, 1995. As a result, Alaska Pacific was required to use the experience method of accounting for tax basis bad debts for 1998 and later years. In addition, the Act requires the recapture of post-1987 (the base year) additions to the tax bad debt reserves made pursuant to the percentage of taxable income method. The Company merger with Alaska Pacific on April 1, 2014 qualified as a tax-free reorganization under Internal Revenue Cost ("Code") Section 368(a)(1)(A). As such, the tax basis of all assets and liabilities that the Company acquired in the merger retain their original tax basis. The Company was not subject to this recapture in 2015 or 2014, as the tax bad debt reserves acquired from Alaska Pacific do not exceed the base year reserve. As a result of the bad debt deductions, shareholders’ equity as of December 31, 2015, includes accumulated earnings of approximately $1.8 million for which federal income tax had not been provided. If, in the future, this portion of retained earnings is used for any purpose other than to absorb losses on loans or on property acquired through foreclosure, federal income tax may be imposed at the then-applicable rates. As a result of the acquisition of Alaska Pacific, the Company has federal and state net operating loss carryforwards of approximately $178,000 and $1.4 million at December 31, 2015 and 2014, respectively, which will begin to expire in 2034. The annual use of these net operating loss carryforwards is limited under the provisions of Section 382. As of December 31, 2015 , the Company had no unrecognized tax benefits. Our policy is to recognize interest and penalties on unrecognized tax benefits in “Provision for income taxes” in the Consolidated Statements of Income. There were no amounts related to interest and penalties recognized for the years ended December 31, 2015 , 2014 , and 2013 . The tax years subject to examination by federal and state taxing authorities are the years ending December 31, 2015 , 2014 , 2013 and 2012 . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: • Level 1 : Valuation is based upon quoted prices for identical instruments traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. • Level 2 : Valuation is based upon quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 : Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s estimation of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. The following methods and assumptions were used to estimate fair value disclosures. All financial instruments are held for other than trading purposes. Cash and cash equivalents : Due to the short term nature of these instruments, the carrying amounts reported in the balance sheet represent their fair values. Investment securities : Fair values for investment securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. Investments in Federal Home Loan Bank stock are recorded at cost, which also represents fair value. Loans held for sale : Due to the short term nature of these instruments, the carrying amounts reported in the balance sheet represent their fair values. Loans : Fair values were generally determined by discounting both principal and interest cash flows on pools of loans expected to be collected using a discount rate for similar instruments with adjustments that the Company believes a market participant would consider in determining fair value. The Company estimates the cash flows expected to be collected using internal credit risk, interest rate and prepayment risk models that incorporate the Corporation’s best estimate of current key assumptions, such as default rates, loss severity and prepayment speeds for the life of the loan. The carrying value of loans is presented net of the Allowance (see Note 7 ). Impaired loans are carried at fair value. Specific valuation allowances are included in the Allowance. Purchased receivables : Fair values for purchased receivables are based on their carrying amounts due to their short duration and repricing frequency. Generally, purchased receivables have a duration of less than one year. Mortgage servicing rights: MSR are measured at fair value on a recurring basis. These assets are classified as Level 3 as quoted prices are not available. In order to determine the fair value of MSRs, the present value of net expected future cash flows is estimated. Assumptions used include market discount rates, anticipated prepayment speeds, escrow calculations, delinquency rates, and ancillary fee income net of servicing costs. The model assumptions are also compared to publicly filed information from several large MSR holders, as available. Accrued interest receivable : Due to the short term nature of these instruments, the carrying amounts reported in the balance sheet represent their fair values. Deposits : The fair value for deposits with stated maturities was determined by discounting contractual cash flows using current market rates for instruments with similar maturities. For deposits with no stated maturities; the carrying value was considered to approximate fair value and does not take into account the significant value of the cost advantage and stability of the Company's long-term relationships with depositors. Accrued interest payable : Due to the short term nature of these instruments, the carrying amounts reported in the balance sheet represent their fair values. Securities sold under repurchase agreements : Fair values for securities sold under repurchase agreements are based on their carrying amounts due to their short duration and repricing frequency. Borrowings : Due to the short term nature of these instruments, the carrying amount of short-term borrowings reported in the balance sheet approximate the fair value. Fair values for long-term borrowings are estimated using a discounted cash flow calculation that applies currently offered interest rates to a schedule of aggregate expected monthly payments. Junior subordinated debentures : Fair value adjustments for junior subordinated debentures are based on discounted cash flows to maturity using current interest rates for similar financial instruments. Management utilized a market approach to determine the appropriate discount rate for junior subordinated debentures. Derivative Instruments: The fair value of the interest rate lock commitments are estimated using quoted or published market prices for similar instruments, adjusted for factors such as pull-through rate assumptions based on historical information, where appropriate. The pull-through rate assumptions are considered Level 3 valuation inputs and are significant to the interest rate lock commitment valuation; as such, the interest rate lock commitment derivatives are classified as Level 3. Interest rate contracts are valued in a model, which uses as its basis a discounted cash flow technique incorporating credit valuation adjustments to reflect nonperformance risk in the measurement of fair value. Although the Bank has determined that the majority of inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of December 31, 2015 , the Bank has assessed the significance of the impact of these adjustments on the overall valuation of its interest rate positions and has determined that they are not significant to the overall valuation of its interest rate derivatives. As a result, the Bank has classified its interest rate derivative valuations in Level 2 of the fair value hierarchy. Assets subject to nonrecurring adjustment to fair value : The Company is also required to measure certain assets such as equity method investments, goodwill, intangible assets, impaired loans, and other real estate owned (“OREO”) at fair value on a nonrecurring basis in accordance with GAAP. Any nonrecurring adjustments to fair value usually result from the write down of individual assets. The Company uses either in-house evaluations or external appraisals to estimate the fair value of OREO and impaired loans as of each reporting date. In-house appraisals are considered Level 3 inputs and external appraisals are considered Level 2 inputs. The Company’s determination of which method to use is based upon several factors. The Company takes into account compliance with legal and regulatory guidelines, the amount of the loan, the size of the assets, the location and type of property to be valued and how critical the timing of completion of the analysis is to the assessment of value. Those factors are balanced with the level of internal expertise, internal experience and market information available, versus external expertise available such as qualified appraisers, brokers, auctioneers and equipment specialists. The Company uses external sources to estimate fair value for projects that are not fully constructed as of the date of valuation. These projects are generally valued as if complete, with an appropriate allowance for cost of completion, including contingencies developed from external sources such as vendors, engineers and contractors. The Company believes that recording other real estate owned that is not fully constructed based on as if complete values is more appropriate than recording other real estate owned that is not fully constructed using as is values. We concluded that as-is-complete values are appropriate for these types of projects based on the accounting guidance for capitalization of project costs and subsequent measurement of the value of real estate. GAAP specifically states that estimates and cost allocations must be reviewed at the end of each reporting period and reallocated based on revised estimates. The Company adjusts the carrying value of other real estate owned in accordance with this guidance for increases in estimated cost to complete that exceed the fair value of the real estate at the end of each reporting period. Commitments to extend credit and standby letters of credit : The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligation with the counterparties at the reporting date. Limitations : Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Estimated fair values as of the periods indicated are as follows: December 31, 2015 December 31, 2014 (In Thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Level 1 inputs: Cash, due from banks and deposits in other banks $58,673 $58,673 $72,056 $72,056 Investment securities 43,033 43,033 45,570 45,570 Level 2 inputs: Investment securities 248,983 249,039 238,361 241,872 Investment in Federal Home Loan Bank Stock 1,816 1,816 3,404 3,404 Accrued interest receivable 3,620 3,620 3,373 3,373 Interest rate contracts 125 125 78 78 Level 3 inputs: Loans and loans held for sale 1,031,340 1,033,551 968,370 974,366 Purchased receivables, net 13,326 13,326 15,254 15,254 Interest rate lock commitments 1,514 1,514 841 841 Mortgage servicing rights 1,654 1,654 1,010 1,010 Financial liabilities: Level 2 inputs: Deposits $1,240,792 $1,240,223 $1,179,747 $1,180,136 Securities sold under repurchase agreements 31,420 31,420 19,843 19,843 Borrowings 2,120 2,101 26,304 26,485 Accrued interest payable 56 56 18 18 Interest rate contracts 216 216 158 158 Level 3 inputs: Junior subordinated debentures 18,558 17,433 18,558 17,239 Unrecognized financial instruments: Commitments to extend credit (1) $222,387 $2,224 $219,349 $2,193 Standby letters of credit (1) 6,399 64 6,004 60 (1) Carrying amounts reflect the notional amount of credit exposure under these financial instruments. The following table sets forth the balances as of the periods indicated of assets measured at fair value on a recurring basis: (In Thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2015 Assets: Available for sale securities U.S. Treasury and government sponsored entities $237,436 $35,008 $202,428 $— Municipal securities 10,326 — 10,326 — U.S. Agency mortgage-backed securities 809 — 809 — Corporate bonds 39,018 4,501 34,517 — Preferred stock 3,524 3,524 — — Total available for sale securities $291,113 $43,033 $248,080 $— Interest rate contracts $125 $— $125 $— Interest rate lock commitments 1,514 — — 1,514 Mortgage servicing rights 1,654 — — 1,654 Total other assets $3,293 $— $125 $3,168 Liabilities: Interest rate contracts $216 $— $216 $— December 31, 2014 Assets: Available for sale securities U.S. Treasury and government sponsored entities $226,190 $15,545 $210,645 $— Municipal securities 12,124 — 12,124 — U.S. Agency mortgage-backed securities 1,029 — 1,029 — Corporate bonds 39,235 26,873 12,362 — Preferred stock 3,152 3,152 — — Total available for sale securities $281,730 $45,570 $236,160 $— Interest rate contracts 78 — 78 — Interest rate lock commitments 841 — — 841 Mortgage servicing rights 1,010 — — 1,010 Total other assets $1,929 $— $78 $1,851 Liabilities: Interest rate contracts $158 $— $158 $— The following table provides a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the years ended December 31, 2015 and 2014: (In Thousands) Beginning balance Change included in earnings Purchases and issuances Sales and settlements Ending balance Net change in unrealized gains (losses) relating to items held at end of period December 31, 2015 Interest rate lock commitments $841 ($2,270 ) $20,886 ($17,943 ) $1,514 $1,514 Mortgage servicing rights 1,010 (158 ) 802 — 1,654 — Total $1,851 ($2,428 ) $21,688 ($17,943 ) $3,168 $1,514 December 31, 2014 Interest rate lock commitments $— ($119 ) $2,399 ($1,439 ) $841 $841 Mortgage servicing rights — (160 ) 1,170 — 1,010 — Total $— ($279 ) $3,569 ($1,439 ) $1,851 $841 For 2015 and 2014 , no impairment or valuation adjustment was recognized for assets recognized at fair value on a nonrecurring basis, except for certain assets as shown in the following table. For loans measured for impairment, the Company classifies fair value measurements using observable inputs, such as external appraisals, as Level 2 valuations in the fair value hierarchy, and unobservable inputs, such as in-house evaluations, as Level 3 valuations in the fair value hierarchy. (In Thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (gains) losses December 31, 2015 Loans measured for impairment $1,061 $— $— $1,061 $269 Other real estate owned 830 — — 830 361 Total $1,891 $— $— $1,891 $630 December 31, 2014 Loans measured for impairment $806 $— $— $806 $75 Other real estate owned 423 — — 423 56 Total $1,229 $— $— $1,229 $131 Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a nonrecurring basis at December 31, 2015 : Financial Instrument Valuation Technique Unobservable Input Weighted Average Rate Range Loans measured for impairment In-house valuation of real estate; discounted cash flow Discount rate 25% - 50% Other real estate owned Fair value of collateral Estimated capital costs to complete improvements 7% - 25% Interest rate lock commitment External pricing model Pull through rate 93.16 % Mortgage servicing rights Discounted cash flow Constant prepayment rate 9.90% - 19.12% Discount rate 9.08% - 9.23% |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's operations are managed along two operating segments: Community Banking and Home Mortgage Lending. The Community Banking segment's principal business focus is the offering of loan and deposit products to business and consumer customers in its primary market areas. As of December 31, 2015, the Community Banking segment operated 14 branches throughout Alaska. The Home Mortgage Lending segment's principal business focus is the origination and sale of mortgage loans for 1-4 family residential properties. Prior to December 1, 2014, Home Mortgage Lending income was limited to 23.5% equity interest in earnings from RML. Net income by operating segment is presented in the tables below. Activity reported in the Home Mortgage Lending Segment in 2014 represents eleven months of net income from RML accounted for using the equity method of accounting and one month accounted for on a consolidated basis following the Company's acquisition of the remaining 76.5% equity interest in RML on December 1, 2014, making RML a wholly-owned consolidated subsidiary of the Company. Summarized financial information for the Company's reportable segments and the reconciliation to the consolidated financial results is shown in the following tables: December 31, 2015 (In Thousands) Community Banking Home Mortgage Lending Consolidated Interest income $57,729 $2,051 $59,780 Interest expense 1,796 1,075 2,871 Net interest income 55,933 976 56,909 Provision (benefit) for loan losses 1,754 — 1,754 Other operating income 14,995 29,613 44,608 Change in FV earn-out liability 4,094 — 4,094 Other operating expense 47,070 21,481 68,551 Income before provision for income taxes 18,010 9,108 27,118 Provision for income taxes 5,024 3,760 8,784 Net income 12,986 5,348 18,334 Less: net income attributable to the noncontrolling interest 551 — 551 Net income attributable to Northrim BanCorp, Inc. $12,435 $5,348 $17,783 Total assets $1,431,759 $67,733 $1,499,492 Loans held for sale $— $50,553 $50,553 December 31, 2014 (In Thousands) Community Banking Home Mortgage Lending Consolidated Interest income $54,204 $142 $54,346 Interest expense 1,942 111 2,053 Net interest income 52,262 31 52,293 Provision (benefit) for loan losses (636 ) — (636 ) Other operating income 17,869 3,280 21,149 Other operating expense 46,165 1,873 48,038 Income before provision for income taxes 24,602 1,438 26,040 Provision for income taxes 7,582 591 8,173 Net income 17,020 847 17,867 Less: net income attributable to the noncontrolling interest 459 — 459 Net income attributable to Northrim BanCorp, Inc. $16,561 $847 $17,408 Total assets $1,390,852 $58,497 $1,449,349 Loans held for sale $— $43,866 $43,866 |
Parent Company Information
Parent Company Information | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company Information | Parent Company Information Balance Sheets at December 31, 2015 2014 (In Thousands) Assets Cash and cash equivalents $10,258 $6,890 Investment securities available for sale 3,524 3,152 Investment in Northrim Bank 178,905 169,590 Investment in NISC 1,474 1,633 Investment in NCT1 248 248 Investment in NST2 310 310 Due from NISC — 101 Other assets 1,184 1,268 Total Assets $195,903 $183,192 Liabilities Junior subordinated debentures $18,558 $18,558 Other liabilities 310 311 Total Liabilities 18,868 18,869 Shareholders' Equity Common stock 6,877 6,854 Additional paid-in capital 62,420 61,729 Retained earnings 108,150 95,493 Accumulated other comprehensive income (loss) (412 ) 247 Total Shareholders' Equity 177,035 164,323 Total Liabilities and Shareholders' Equity $195,903 $183,192 Statements of Income for Years Ended: 2015 2014 2013 (In Thousands) Income Interest income $116 $197 $208 Net income from Northrim Bank 18,865 19,358 13,645 Net income from NISC 140 167 37 Other income 175 30 170 Total Income $19,296 $19,752 $14,060 Expense Interest expense 463 451 459 Administrative and other expenses 2,191 3,243 2,387 Total Expense 2,654 3,694 2,846 Income Before Benefit from Income Taxes 16,642 16,058 11,214 Benefit from income taxes (1,141 ) (1,350 ) (1,111 ) Net Income $17,783 $17,408 $12,325 Statements of Cash Flows for Years Ended: 2015 2014 2013 (In Thousands) Operating Activities: Net income $17,783 $17,408 $12,325 Adjustments to Reconcile Net Income to Net Cash: Equity in undistributed earnings from subsidiaries (19,005 ) (19,525 ) (13,683 ) Stock-based compensation 608 360 506 Changes in other assets and liabilities (298 ) (241 ) (60 ) Net Cash Used from Operating Activities (912 ) (1,998 ) (912 ) Investing Activities: Purchases of investment securities available for sale (3,549 ) — 525 Proceeds from sales/calls/maturities of securities available for sale 2,998 — — Net cash received from Alaska Pacific acquisition — 6,367 — Investment in Northrim Bank, NISC, NCT1 & NST2 9,842 (3,000 ) 5,874 Net Cash Provided by Investing Activities 9,291 3,367 6,399 Financing Activities: Dividends paid to shareholders (5,117 ) (4,750 ) (4,215 ) Proceeds from issuance of common stock and excess tax benefits 106 150 100 Net Cash Used from Financing Activities (5,011 ) (4,600 ) (4,115 ) Net change in Cash and Cash Equivalents 3,368 (3,231 ) 1,372 Cash and Cash Equivalents at beginning of year 6,890 10,121 8,749 Cash and Cash Equivalents at end of year $10,258 $6,890 $10,121 |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) 2015 Quarter Ended Dec. 31 Sept. 30 June 30 March 31 (In Thousands Except Per Share Amounts) Total interest income $15,063 $15,388 $14,943 $14,386 Total interest expense 663 706 748 754 Net interest income 14,400 14,682 14,195 13,632 Provision for loan losses 376 676 376 326 Other operating income 10,104 12,407 11,563 10,535 Other operating expense 18,229 18,203 17,753 18,461 Income before provision for income taxes 5,899 8,210 7,629 5,380 Provision for income taxes 1,673 2,678 2,686 1,747 Net Income 4,226 5,532 4,943 3,633 Less: Net income attributable to the noncontrolling interest 120 197 162 72 Net income attributable to Northrim Bancorp, Inc. $4,106 $5,335 $4,781 $3,561 Earnings per share, basic $0.60 $0.78 $0.70 $0.52 Earnings per share, diluted $0.59 $0.77 $0.69 $0.51 2014 Quarter Ended Dec. 31 Sept. 30 June 30 March 31 (In Thousands Except Per Share Amounts) Total interest income $14,566 $14,212 $13,895 $11,673 Total interest expense 642 487 484 440 Net interest income 13,924 13,725 13,411 11,233 Provision (benefit) for loan losses 500 — (1,136 ) — Other operating income 9,376 4,934 4,106 2,734 Other operating expense 13,671 12,779 11,620 9,967 Income before provision for income taxes 9,129 5,880 7,033 4,000 Provision for income taxes 2,325 1,982 2,569 1,297 Net Income 6,804 3,898 4,464 2,703 Less: Net income attributable to the noncontrolling interest 130 191 95 45 Net income attributable to Northrim Bancorp, Inc. $6,674 $3,707 $4,369 $2,658 Earnings per share, basic $0.98 $0.54 $0.64 $0.41 Earnings per share, diluted $0.97 $0.53 $0.63 $0.40 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Method of Accounting | Method of Accounting: The Company prepares its consolidated financial statements in conformity with accounting principles generally accepted in the United States and prevailing practices within the banking industry. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of income, gains, expenses, and losses during the reporting periods. Actual results could differ from those estimates. Significant estimates include the allowance for loan losses (“Allowance”), valuation of goodwill and other intangibles, valuation of mortgage servicing rights, valuation of other real estate owned (“OREO”), valuation of the earn-out liability, and fair value disclosures. |
Consolidation | Consolidation: The Company consolidates affiliates in which we have a controlling interest. The accompanying consolidated financial statements include the accounts of the Company, the Bank, RML, NBG, and Northrim Investment Services Company (“NISC”). Significant intercompany balances have been eliminated in consolidation. As of December 31, 2015, the Company had two wholly-owned trusts ("Trusts") that were formed to issue trust preferred securities and related common securities of the Trusts. The Company has not consolidated the accounts of the Trusts in its consolidated financial statements in accordance with Financial Accounting Standards Board Accounting Standards Codification (“FASB”) ASC 810, Consolidation (“ASC 810”). As a result, the junior subordinated debentures issued by the Company to the Trusts are reflected on the Company’s consolidated balance sheet as junior subordinated debentures. |
Variable interest entities | The Company has determined that PWA and Homestate are not variable interest entities and therefore, the Company does not consolidate the balance sheets and income statements of PWA or Homestate into its financial statements. The Company's investments in PWA and Homestate are accounted for as equity method investments. Results of PWA and Homestate are included in "Other income" in our Consolidated Statements of Income. Investments in associated companies are presented on a one-line basis in the caption “Other assets” in our "Consolidated Balance Sheets". |
Operating Segments | Operating Segments: Public enterprises are required to report certain information about their operating segments in a complete set of financial statements to shareholders. The basis for determining the Company's operating segments is the manner in which management operates the business. Management has identified two primary business segments, Community Banking and Home Mortgage Lending. |
Reclassifications | Reclassifications: Certain reclassifications have been made to prior year amounts to maintain consistency with the current year with no impact on net income or total shareholders’ equity |
Subsequent Events | Subsequent Events: The Company has evaluated events and transactions subsequent to December 31, 2015 for potential recognition or disclosure. |
Cash and Cash Equivalents | Cash and Cash Equivalents: For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest-bearing deposits with other banks, federal funds sold, and securities with maturities of less than 90 days at acquisition. |
Investment Securities | Investment Securities: Securities available for sale are stated at fair value with unrealized holding gains and losses, net of tax, excluded from earnings and reported as a separate component of other comprehensive income, unless an unrealized loss is deemed other than temporary. Gains and losses on available for sale securities sold are determined on a specific identification basis. Held to maturity securities are stated at cost, adjusted for amortization of premium and accretion of discount on a level-yield basis. The Company has the ability and intent to hold these securities to maturity. A decline in the market value of any available for sale or held to maturity security below cost that is deemed other than temporary results in a charge to earnings and the establishment of a new cost basis for the security. Unrealized investment securities losses are evaluated at least quarterly on a specific identification basis to determine whether such declines in value should be considered "other than temporary" and therefore be subject to immediate loss recognition in income. Although these evaluations involve significant judgment, an unrealized loss in the fair value of a debt security is generally deemed to be temporary when the fair value of the security is below the carrying value primarily due to changes in interest rates and there has not been significant deterioration in the financial condition of the issuer. The Company does not intend to sell, nor is it more likely than not that it will be required to sell, securities whose market value is less than carrying value. Because it is more likely than not that the Company will hold these investments until a market price recovery or maturity, these investments are not considered other than temporarily impaired. Other factors that may be considered in determining whether a decline in the value is "other than temporary" include the financial condition, capital strength, and near-term prospects of the issuer; actions of commercial banks or other lenders relative to the continued extension of credit facilities to the issuer of the security; recommendations of investment advisors or market analysts; and ratings by recognized rating agencies. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock: The Company’s investment in Federal Home Loan Bank of Des Moines (“FHLB”) stock is carried at par value because the shares can only be redeemed with the FHLB at par. The Company is required to maintain a minimum level of investment in FHLB stock based on the Company’s total Bank assets and outstanding advances. FHLB stock is carried at cost and is subject to recoverability testing at least annually. |
Loans held for sale | Loans held for sale: Loans held for sale are recorded at the lower of cost or fair value. Loans held for sale include residential mortgage loans that have been originated for sale in the secondary market. Related gains or losses on the sale of these loans are recognized in mortgage banking income. |
Loans | Loans: Loans are carried at their principal amount outstanding, net of charge-offs, unamortized fees, and direct loan origination costs. Loan balances are charged-off to the Allowance for Loan Losses when management believes that collection of principal is unlikely. Interest income on loans is accrued and recognized on the principal amount outstanding except for loans in a nonaccrual status. All classes of loans are placed on nonaccrual when management believes doubt exists as to the collectability of the interest or principal. Cash payments received on nonaccrual loans are directly applied to the principal balance. Generally, a loan may be returned to accrual status when the delinquent principal and interest is brought current in accordance with the terms of the loan agreement and certain ongoing performance criteria have been met. Loans are reported as past due when installment payments, interest payments, or maturity payments are past due based on contractual terms. The Company considers a loan to be impaired when it is probable that it will be unable to collect all amounts due according to the contractual terms of the loan agreement. Once a loan is determined to be impaired, the impairment is measured based on the present value of the expected future cash flows discounted at the loan’s effective interest rate, unless the loan is collateral dependent, in which case the impairment is measured by using the fair value of the loan’s collateral. Nonperforming loans greater than $50,000 are individually evaluated for impairment based upon the borrower’s overall financial condition, resources, and payment record, and the prospects for support from any financially responsible guarantors. The Company uses either in-house evaluations or external appraisals to estimate the fair value of collateral-dependent impaired loans as of each reporting date. The Company’s determination of which method to use is based upon several factors. The Company takes into account compliance with legal and regulatory guidelines, the amount of the loan, the estimated value of the collateral, the location and type of collateral to be valued, and how critical the timing of completion of the analysis is to the assessment of value. Those factors are balanced with the level of internal expertise, internal experience, and market information available, versus external expertise available such as qualified appraisers, brokers, auctioneers, and equipment specialists. The Company uses external appraisals to estimate fair value for projects that are not fully constructed as of the date of valuation. These projects are generally valued as if complete, with an appropriate allowance for cost of completion, including contingencies developed from external sources such as vendors, engineers, and contractors. The Company classifies fair value measurements using observable inputs, such as external appraisals, as level 2 valuations in the fair value hierarchy, and fair value measurements with unobservable inputs, such as in-house evaluations, as level 3 valuations in the fair value hierarchy. When the fair value measurement of the impaired loan is less than the recorded amount of the loan, an impairment is recognized by recording a charge-off to the Allowance or by designating a specific reserve in accordance with GAAP. The Company’s policy is to record cash payments received on impaired loans that are not also nonaccrual loans in the same manner that cash payments are applied to performing loans. A loan is classified as a troubled debt restructuring ("TDR") when a borrower is experiencing financial difficulties that lead to a restructuring of the loan, and the Company grants concessions to the borrower in the restructuring that it would not otherwise consider. These concessions may include interest rate reductions, principal forgiveness, extension of maturity date and other actions intended to minimize potential losses. Generally, a nonaccrual loan that is restructured remains on nonaccrual status for a period of at least six months to demonstrate that the borrower can meet the restructured terms. If the borrower's performance under the new terms is not reasonably assured, the loan remains classified as a nonaccrual loan. Interest on TDRs will be accrued at the restructured rates when it is anticipated that no loss of original principal will occur, and the interest can be collected, which is generally after a period of six months Loan origination fees received in excess of direct origination costs are deferred and accreted to interest income using a method approximating the level-yield method over the life of the loan. |
Acquired Loans | Acquired Loans: Loans are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan losses is not recorded at the acquisition date. Purchased loans are evaluated upon acquisition and classified as either purchased credit impaired or purchased non-credit-impaired. Purchased credit impaired loans reflect credit deterioration since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. Purchased credit impaired loans were individually evaluated for credit impairment at acquisition using expected future cash flows or the estimated value of underlying collateral. A purchased credit impaired loan will be removed from impaired loans only if the loan is sold, foreclosed, or assets are received in full satisfaction of the loan, and it will be removed from impaired loans at its carrying value. If an individual loan is removed, the difference between its relative carrying amount and its cash, fair value of the collateral, or other assets received will be recognized in other income immediately as a gain and would not affect the effective yield used to recognize the accretable yield on purchased credit impaired loans. The excess of the undiscounted contractual balances due over the cash flows expected to be collected is considered to be the nonaccretable difference. The nonaccretable difference represents our estimate of the credit losses expected to occur and was considered in determining the fair value of the purchased credit impaired loans as of the acquisition date. Subsequent to the acquisition date, any increases in expected cash flows over those expected at purchase date in excess of fair value are adjusted through an increase to the accretable yield on a prospective basis. The purchased credit impaired loans are and will continue to be subject to the Company’s internal and external credit review and monitoring. If credit deterioration is experienced subsequent to the initial acquisition fair value amount, such deterioration will be measured, and a charge off will be recorded. For purchased non-credit-impaired loans, the difference between the fair value and unpaid principal balance of the loan at the acquisition date is amortized or accreted to interest income over the estimated life of the loans. The Company has evaluated the credit quality of purchased non-credit-impaired loans and has determined that excluding these loans from the allowance for loan losses calculation is appropriate based on their stable credit quality since acquisition. |
Allowance for Loan Losses | Allowance for Loan Losses: The Allowance for Loan Losses (“the Allowance”) is management’s best estimate of probable losses inherent in its loan portfolio. Accordingly, the methodology is based on historical loss experience by loan segment and class with adjustments for current events and conditions. The Company’s process for determining the appropriate level of the Allowance for probable loan losses is designed to account for credit deterioration as it occurs. The provision for loan losses reflects loan quality trends, including levels of and trends related to past due and nonaccrual loans, net charge-offs or recoveries, and other factors. The Company has identified the following segments: commercial, real estate construction one-to-four family, real estate construction other, real estate term owner occupied, real estate term non-owner occupied, real estate term other, consumer loans secured by 1 st deeds of trust, and other consumer loans. Then the Company further disaggregates each segment into the following classes, which are also known as asset quality ratings: pass (grades 1-6), special mention (grade 7), substandard (grade 8), doubtful (grade 9), and loss (grade 10). The level of the Allowance reflects management’s continuing evaluation of industry concentrations, specific credit risks, loan loss experience, current loan portfolio quality, present economic, political and regulatory conditions and unidentified losses inherent in the current loan portfolio. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgment, should be charged off. While management utilizes its best judgment and information available, the ultimate adequacy of the Allowance is dependent upon a variety of factors beyond the Company’s control including, among other things, the performance of the Company’s loan portfolio, the economy, changes in interest rates, and the view of the regulatory authorities toward loan classification. The Company’s Allowance consists of three elements: (1) specific valuation allowances based on probable losses on specific loans, (2) general valuation allowances based on historical loan loss experience for similar loans with similar characteristics and trends, adjusted as necessary to reflect the impact of current conditions, and (3) unallocated general valuation allowances based on general economic conditions and other qualitative risk factors both internal and external to the Company. The specific valuation allowance is an allocated allowance for impaired loans. This analysis is based upon a specific analysis for each impaired loan that is collateral dependent, including appraisals and in-house evaluations on loans secured by real property, management’s assessment of the current market, recent payment history, and an evaluation of other sources of repayment. The Company obtains appraisals on real and personal property that secure its loans during the loan origination process in accordance with regulatory guidance and its loan policy. The Company then estimates a general allocated allowance for all other loans that were not impaired as of the balance sheet date using a formula-based approach that includes average historical loss factors that are adjusted for quantitative and qualitative factors. Qualitative factors are based on management’s assessment of current trends that may cause losses inherent in the current loan portfolio to differ significantly from historical losses. The Company uses a formula-based approach that includes average historical loss factors that are adjusted for qualitative factors to establish this portion of the Allowance. The Company first disaggregates the overall loan portfolio into the following segments: commercial, real estate construction one-to-four family, real estate construction other, real estate term owner occupied, real estate term non-owner occupied, real estate term other, consumer secured by 1 st deeds of trust, and other consumer loans. Then the Company further disaggregates each segment into the following classes: pass, special mention, substandard, doubtful and loss. After the portfolio has been disaggregated into these segments and classes, the Company calculates a general reserve for each segment and class based on the average five year loss history for each segment and class. This general reserve is then adjusted for qualitative factors, by segment and class. Qualitative factors are based on management’s assessment of current trends that may cause losses inherent in the current loan portfolio to differ significantly from historical losses. Some factors that management considers in determining the qualitative adjustment to the general reserve include our concentration of large borrowers; national and local economic trends; general business conditions; economic, political, and industry specific factors that affect resource development in Alaska; underwriting policies and standards; trends in local real estate markets; effects of various political activities; peer group data; and internal factors such as underwriting policies and expertise of the Company’s employees. The unallocated general valuation portion of the Allowance is based on several factors, including the level of the Allowance as compared to total loans and nonperforming loans in light of current economic conditions. This portion of the Allowance provides for coverage of credit losses inherent in the loan portfolio but not captured in the credit loss factors that are utilized in the risk rating-based component, or in the specific impairment component of the Allowance, and it acknowledges the inherent imprecision of all loss prediction models. This portion of the Allowance is deemed “unallocated” because it is not allocated to any segment or class of the loan portfolio. This portion of the Allowance provides for coverage of credit losses inherent in the loan portfolio but not captured in the credit loss factors that are utilized in the risk rating-based component or in the specific impairment component of the Allowance and acknowledges the inherent imprecision of all loss prediction models. This portion of the Allowance is based upon management’s evaluation of various factors that are not directly measured in the determination of the allocated portions of the Allowance. Such factors include uncertainties in identifying triggering events that directly correlate to subsequent loss rates, uncertainties in economic conditions, risk factors that have not yet manifested themselves in loss allocation factors, and historical loss experience data that may not precisely correspond to the current portfolio. In addition, the unallocated reserve may fluctuate based upon the direction of various risk indicators. Examples of such factors include the risk as to current and prospective economic conditions, the level and trend of charge offs or recoveries, and the risk of heightened imprecision or inconsistency of appraisals used in estimating real estate values. Although this allocation process may not accurately predict credit losses by loan type or in aggregate, the total allowance for credit losses is available to absorb losses that may arise from any loan type or category. Based on our methodology and its components, management believes the resulting Allowance is adequate and appropriate for the risk identified in the Company's loan portfolio. While management believes that it uses the best information available to determine the Allowance, unforeseen market conditions and other events could result in adjustment to the Allowance, and net income could be significantly affected if circumstances differed substantially from the assumptions used in making the final determination. Our banking regulators, as an integral part of their examination process, periodically review the Company's Allowance. Our regulators may require the Company to recognize additions to the Allowance based on their judgments related to information available to them at the time of their examinations. |
Reserve for Unfunded Loan Commitments and Letters of Credit | Reserve for Unfunded Loan Commitments and Letters of Credit: The Company maintains a separate reserve for losses related to unfunded loan commitments and letters of credit. The determination of the adequacy of the reserve is based on periodic evaluations of the unfunded credit facilities including assessment of historical losses and current economic conditions. The allowance for unfunded loan commitments and letters of credit is included in other liabilities on the consolidated balance sheets, with changes to the balance charged against noninterest expense. |
Purchased Receivables | Purchased Receivables: The Bank purchases accounts receivable from its customers. The purchased receivables are carried at cost. Fees charged to the customer are earned while the balances of the purchases are outstanding, which is typically less than one year. The Company maintains a separate reserve for losses related to purchased receivable assets. The determination of the adequacy of the reserve is based on periodic evaluations of purchased receivable assets including an assessment of historical losses and current economic conditions. The reserve for purchased receivable assets is included in the balance of these accounts on a net basis on the consolidated balance sheets, with changes to the balance charged against noninterest expense. |
Other Real Estate Owned | Other Real Estate Owned: Other real estate owned represents properties acquired through foreclosure or its equivalent. Prior to foreclosure, the carrying value is adjusted to the fair value, less cost to sell, of the real estate to be acquired by an adjustment to the Allowance. Management’s evaluation of fair value is based on appraisals or discounted cash flows of anticipated sales. The amount by which the fair value less cost to sell is greater than the carrying amount of the loan plus amounts previously charged off is recognized in earnings. Any subsequent reduction in the carrying value is charged against earnings. Operating expenses associated with other real estate owned are charged to earnings in the period they are incurred. |
Premises and Equipment | Premises and Equipment: Premises and equipment, including leasehold improvements, are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization expense for financial reporting purposes is computed using the straight-line method based upon the shorter of the lease term or the estimated useful lives of the assets that vary according to the asset type and include; furniture and equipment ranging between 3 and 7 years , leasehold improvements ranging between 2 and 15 years , and buildings over 39 years . Maintenance and repairs are charged to current operations, while renewals and betterments are capitalized. Long-lived assets such as premises and equipment are reviewed for impairment at least annually or whenever events or changes in business circumstances indicate that the remaining useful life may warrant revision, or that the carrying amount of the long-lived asset may not be fully recoverable. If impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: Intangible assets are comprised of goodwill and other intangibles acquired in business combinations. Goodwill and intangible assets with indefinite useful lives are not amortized. Intangible assets with definite useful lives are amortized to their estimated residual values over their respective useful lives, and are also reviewed for impairment. Amortization of intangible assets is included in other operating expense in the Consolidated Statements of Income. The Company performs a goodwill impairment analysis at the segment level on an annual basis. Additionally, the Company performs a goodwill impairment evaluation on an interim basis when events or circumstances indicate impairment potentially exists. |
Low Income Housing Tax Credit Partnerships | Low Income Housing Tax Credit Partnerships: The Company earns a return on its investments in the form of tax credits and deductions that flow through to it as a limited partner in these partnerships. The Company amortizes these investments in tax expense over the period during which tax credits are used. |
Mortgage Servicing Rights Policy | Mortgage Servicing Rights: Mortgage servicing rights ("MSRs") are the rights to service mortgage loans for others. The Company measures MSRs at fair value and reports changes in fair value through earnings. Changes in the fair value of MSRs occur primarily due to the collection/realization of expected cash flows, as well as changes in valuation inputs and assumptions. Under the fair value method, MSRs are carried on the balance sheet at fair value and the changes in fair value are reported in earnings in other operating income in the period in which the change occurs. Fair value measurements are determined using a discounted cash flow model. In order to determine the fair value of MSRs, the present value of net expected future cash flows is estimated. Assumptions used include market discount rates, anticipated prepayment speeds, escrow calculations, delinquency rates, and ancillary fee income net of servicing costs. The model assumptions are also compared to publicly filed information from several large MSR holders, as available. |
Earn-out liability | Earn-out liability: The Company recorded an earn-out liability as part of the cost of the acquisition of 76.5% of the equity interest in RML on December 1, 2014. The earn-out liability is an estimate that is contingent upon the adjusted earnings of RML. The Company measures the earn-out liability at fair value and reports changes in fair value through earnings. |
Other Assets | Other Assets: Other assets include purchased software and prepaid expenses. Purchased software is carried at amortized cost and is amortized using the straight-line method over its estimated useful life or the term of the agreement. Also included in other assets is the net deferred tax asset, bank owned life insurance, accrued interest receivable, taxes receivable, rate lock derivatives, and the Company’s equity method investments. |
Derivatives | Derivatives: The Company considers all free-standing derivatives as economic hedges and recognizes these derivatives as either assets or liabilities in the balance sheet and requires measurement of those instruments at fair value through adjustments to current earnings. None of the Company's derivatives are designated as hedging instruments. By using derivatives, the Company is exposed to counterparty credit risk, which is the risk that counterparties to the derivative contracts do not perform as expected. If a counterparty fails to perform, our counterparty credit risk is equal to the amount reported as a derivative asset on our balance sheet, net of cash collateral received. We minimize counterparty credit risk through credit approvals, limits, monitoring procedures, and obtaining collateral, where appropriate. For derivative instruments executed with the same counterparty under a master netting arrangement, we do not offset fair value amounts of interest rate swaps in liability position with the ones in asset position. For further detail, see Note 19. |
Transfers or sales of financial assets | Transfers or sales of financial assets: For transfers of financial assets recorded as sales, we recognize and initially measure at fair value all assets obtained and liabilities incurred. We record a gain or loss in noninterest income for the difference between the carrying amount and the fair value of the assets sold. Fair values are based on quoted market prices, quoted market prices for similar assets, or if market prices are not available, then the fair value is estimated using discounted cash flow analysis with assumptions for credit losses, prepayments and discount rates that are corroborated by and verified against market observable data, where possible. |
Advertising | Advertising: Advertising, promotion and marketing costs are expensed as incurred. |
Stock Incentive Plans | Stock Incentive Plans: The Company accounts for its stock incentive plans using a fair-value-based method of accounting for stock-based employee compensation plans. The Company has elected the modified prospective method for recognition of compensation cost associated with stock-based employee compensation awards. The Company amortizes stock-based compensation expense over the vesting period of each award. |
Income Taxes | Income Taxes: The Company uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized for the future consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. |
Earnings Per Share | Earnings Per Share: Earnings per share is calculated using the weighted average number of shares and dilutive common stock equivalents outstanding during the period. Stock options and restricted stock units, as described in Note 21 , are considered to be common stock equivalents. Potentially dilutive shares are excluded from the computation of earnings per share if their effect is anti-dilutive. |
Comprehensive Income | Comprehensive Income: Comprehensive income consists of net income and net unrealized gains (losses) on securities available for sale after the tax effect and is presented in the consolidated statements of shareholders’ equity and comprehensive income. |
Concentrations | Concentrations: Substantially all of the Company’s business is derived from the Anchorage, Matanuska-Susitna Valley, Fairbanks, and Southeast areas of Alaska. As such, the Company’s growth and operations depend upon the economic conditions of Alaska and these specific markets. These areas rely primarily upon the natural resources industries, particularly oil production, as well as tourism, government and U.S. military spending for their economic success. A significant majority of the unrestricted revenues of the Alaska state government are currently funded through various taxes and royalties on the oil industry. The Company’s business is and will remain sensitive to economic factors that relate to these industries and local and regional business conditions. As a result, local or regional economic downturns, or downturns that disproportionately affect one or more of the key industries in regions served by the Company, may have a more pronounced effect upon its business than they might on an institution that is less geographically concentrated. The extent of the future impact of these events on economic and business conditions cannot be predicted; however, prolonged or acute fluctuations could have a material and adverse impact upon the Company’s results of operation and financial condition. |
Fair Value | Fair Value Measurements: The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: • Level 1 : Valuation is based upon quoted prices for identical instruments traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. • Level 2 : Valuation is based upon quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 : Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s estimation of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-01, Accounting for Investments in Qualified Affordable Housing Projects ("ASU 2014-01"). ASU 2014-01 permits an entity to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). ASU 2014-01 was effective for annual and interim reporting periods beginning on or after December 15, 2014 and should be applied prospectively. The Company adopted ASU 2014-01 in its consolidated financial statements as of January 1, 2015. As a result, amortization expense related to the Company's investments in low income housing tax credit partnerships has been included in the line item entitled "Provision for income taxes" in the Consolidated Statements of Income for all periods presented. The new accounting methodology has been retrospectively applied to the prior periods presented, resulting in changes the line items entitled "Other operating income" and "Provision for income taxes". In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis (“ASU 2015-02”). ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. The amendments in this update affect the following areas: 1) the effect of related parties on the primary beneficiary determination, 2) evaluating fees paid to a decision maker or a service provider as a variable interest, 3) the effect of fee arrangements on the primary beneficiary determination, and 4) certain investment funds. ASU 2015-02 is effective for the Company’s financial statements for annual and interim periods beginning on or after December 15, 2015, and must be applied prospectively. The Company does not believe that the adoption of this standard will have a material impact on the Company’s consolidated financial position or results of operations. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). The amendments to the Codification in ASU 2015-03 simplify the presentation of debt issuance costs. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for the Company’s financial statements for annual and interim periods beginning on or after December 15, 2015, and must be applied prospectively. The Company does not believe that the adoption of this standard will have a material impact on the Company’s consolidated financial position or results of operations. In September 2015, the FASB issued ASU 2015-16, Business Combinations (“ASU 2015-16”). ASU 2015-16 requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 requires that the acquirer record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. ASU 2015-16 also requires an entity to present separately on the face of the income statement, or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective for fiscal years beginning on or after December 15, 2015, and must be applied prospectively. The Company does not believe that the adoption of this standard will have a material impact on the Company’s consolidated financial position or results of operations. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The amendments to the Codification in ASU 2016-01 make targeted improvements to GAAP. ASU 2016-01 requires that equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer; simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value; eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU 2016-01 is effective for the Company’s financial statements for annual and interim periods beginning on or after December 15, 2017, and the Company should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption and the amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption of the Update. The Company does not believe that the adoption of this standard will have a material impact on the Company’s consolidated financial position or results of operations. |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Calculation of Earnings Per Share | Information used to calculate earnings per share was as follows: (In Thousands) 2015 2014 2013 Net income attributable to Northrim BanCorp, Inc. $17,783 $17,408 $12,325 Basic weighted average common shares outstanding 6,859 6,761 6,519 Dilutive effect of potential common shares from awards granted under equity incentive program 89 91 91 Total 6,948 6,852 6,610 Earnings per common share Basic $2.59 $2.57 $1.89 Dilutive $2.56 $2.54 $1.87 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of business acquisitions by acquisition | A summary of the net assets acquired and the estimated fair value adjustments of RML are presented below: RML (In Thousands) December 1, 2014 Cost basis net assets $11,915 Cash payment made (18,240 ) Cash surrender value of life insurance paid (3,896 ) Liability for future earn out payments (7,318 ) Fair value adjustments: Net loans (360 ) Trade name intangible 950 Rate lock derivative asset 960 Investment in Homestate 1,490 Other (311 ) Goodwill ($14,810 ) A summary of the net assets acquired and the estimated fair value adjustments of Alaska Pacific are presented below: Alaska Pacific (In Thousands) April 1, 2014 Cost basis net assets $14,733 Cash payment made (6,423 ) Common stock issued (7,446 ) Fair value adjustments: Net loans (1,137 ) Premises and equipment 547 Other intangible assets 623 Mortgage servicing rights (119 ) Deposits (844 ) Other 236 Bargain purchase gain $170 |
Assets acquired and liabilities assumed | A summary of assets acquired and liabilities assumed at their estimated fair values are presented below: RML (In Thousands) December 1, 2014 Assets Acquired: Cash and equivalents $10,828 Net loans 41,304 Premises and equipment 255 Trade name intangible 950 Rate lock derivative asset 960 Investment in Homestate 3,000 Other real estate owned 270 Other assets 10,291 Total assets acquired $67,858 Liabilities Assumed: Borrowings $37,541 Other liabilities 6,625 Total liabilities assumed $44,166 A summary of assets acquired and liabilities assumed at their estimated fair values are presented below: Alaska Pacific (In Thousands) April 1, 2014 Assets Acquired: Cash and equivalents $12,956 Investment securities 7,240 Net loans 138,432 Premises and equipment 3,436 Other intangibles 623 Mortgage servicing rights 1,170 Other real estate owned 1,709 Other assets 1,645 Total assets acquired $167,211 Liabilities Assumed: Deposits $151,438 Other liabilities 1,734 Total liabilities assumed $153,172 |
Schedule of loans acquired | Alaska Pacific purchased loans not subject to the requirements of FASB ASC 310-30 Loans and Debt Securities Acquired with Deteriorated Credit Quality ("ASC 310-30") are presented below at acquisition: (In Thousands) April 1, 2014 Contractually required principal payments $133,921 Purchase adjustment for credit, interest rate, and liquidity 612 Fair value of purchased non-credit impaired loans $134,533 |
Loans acquired with deteriorating quality | Purchased credit impaired loans at acquisition are presented below: (In Thousands) April 1, 2014 Contractually required principal payments $7,553 Nonaccretable difference (3,654 ) Fair value of purchased credit impaired loans $3,899 |
Pro forma information | The following table presents unaudited combined pro forma results of operations for the year ended December 31, 2014 as if the acquisition of Alaska Pacific and RML had occurred on January 1, 2014. The proforma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisitions actually occurred on January 1, 2014. (In Thousands, except earnings per share data) December 31, 2014 Alaska Pro Forma Pro Forma Company Pacific 1 RML 2 Adjustments Combined Net interest and other income $73,442 $2,095 $22,227 3 ($1,214 ) 4 $96,550 Net income attributable to Northrim BanCorp, Inc. 17,408 (1,282 ) 4,000 2,332 5 22,458 Earnings Per Share, Basic $2.57 $3.29 Earnings Per Share, Diluted $2.54 $3.24 Weighted Average Shares Outstanding, Basic 6,761,328 6,833,881 Weighted Average Shares Outstanding, Diluted 6,852,267 6,924,820 1 Alaska Pacific represents results from January 1 to March 31. 2 RML represents results from January 1 to November 30. 3 2014 amount is comprised of net interest income and loan origination fees of $6.0 million and $16.2 million of other income. 4 Amount of amortization/ accretion of the fair value adjustments on loans and certificates of deposit for Alaska Pacific and amount of accretion of the fair value adjustments on loans and income recognized under the equity method prior to the December 2014 acquisition for RML. The following table presents unaudited pro forma results of operations for the year ended December 31, 2014 as if the acquisition of RML had occurred on January 1, 2014. The proforma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2014. (In Thousands, except earnings per share data) December 31, 2014 Pro Forma Pro Forma Company RML 1 Adjustments Combined Net interest and other income $73,442 $22,227 2 ($1,176 ) 3 $94,493 Net income attributable to Northrim BanCorp, Inc. 17,408 4,000 2,250 4 23,658 Earnings Per Share, Basic $2.57 $3.50 Earnings Per Share, Diluted $2.54 $3.45 Weighted Average Shares Outstanding, Basic 6,761,328 6,761,328 Weighted Average Shares Outstanding, Diluted 6,852,267 6,852,267 1 RML represents results from January 1 to November 30 for 2014. 2 2014 amount is comprised of net interest income and loan origination fees of $6.0 million and $16.2 million of other income. 3 Amount of accretion of the fair value adjustments on loans and income recognized under the equity method prior to the December 2014 acquisition. 4 Amount of accretion of the fair value adjustments on loans, income recognized under the equity method, gain on acquisition, earn out accretion, and the change in the provision for income taxes. The following table presents unaudited pro forma results of operations for the years ended December 31, 2014 as if the acquisition of Alaska Pacific had occurred on January 1, 2014. The proforma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2014. (In Thousands, except earnings per share data) December 31, 2014 Pro Forma Pro Forma Company Alaska Pacific 1 Adjustments Combined Net interest and other income $73,442 $2,095 ($38 ) 2 $75,499 Net income attributable to Northrim BanCorp, Inc. 17,408 (1,282 ) 82 3 16,208 Earnings Per Share, Basic $2.57 $2.37 Earnings Per Share, Diluted $2.54 $2.34 Weighted Average Shares Outstanding, Basic 6,761,328 6,833,881 Weighted Average Shares Outstanding, Diluted 6,852,267 6,924,820 1 Alaska Pacific represents results from January 1 to March 31 for 2014. 2 Amount of amortization/ accretion of the fair value adjustments on loans and certificates of deposit. 3 Amount of amortization/accretion of the fair value adjustments on loans and certificates of deposit, bargain purchase gain, amortization of cored deposit intangible, and the change in the provision for income taxes. |
Interest Bearing Deposits in 39
Interest Bearing Deposits in Other Banks (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Interest Bearing Deposits In Other Banks [Abstract] | |
Interest Bearing Deposits in Other Banks | Balances at December 31 for the respective years are as follows: (In Thousands) 2015 2014 Interest bearing deposits at Federal Reserve Bank $27,275 $31,806 Interest bearing deposits at FHLB 108 420 Domestic certificates of deposit at other institutions — 3,500 Other interest bearing deposits at other institutions 301 294 Total $27,684 $36,020 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Marketable Securities [Abstract] | |
Summary of Investment Security Carrying and Fair Value | The carrying values and approximate fair values of investment securities at the periods indicated are presented below: (In Thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2015 Securities available for sale U.S. Treasury and government sponsored entities $238,116 $150 $830 $237,436 Municipal securities 10,227 117 18 10,326 U.S. Agency mortgage-backed securities 818 1 10 809 Corporate bonds 39,049 57 88 39,018 Preferred stock 3,549 8 33 3,524 Total securities available for sale $291,759 $333 $979 $291,113 Securities held to maturity Municipal securities $903 $56 $— $959 Total securities held to maturity $903 $56 $— $959 December 31, 2014 Securities available for sale U.S. Treasury and government sponsored entities $226,624 $105 $539 $226,190 Municipal securities 11,843 285 4 12,124 U.S. Agency mortgage-backed securities 1,024 6 1 1,029 Corporate bonds 38,820 415 — 39,235 Preferred stock 2,999 153 — 3,152 Total securities available for sale $281,310 $964 $544 $281,730 Securities held to maturity Municipal securities $2,201 $107 $— $2,308 Total securities held to maturity $2,201 $107 $— $2,308 |
Schedule of Gross Unrealized Losses on Investment Securities | Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2015 and 2014 were as follows: Less Than 12 Months More Than 12 Months Total (In Thousands) Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses 2015: Securities Available for Sale U.S. Treasury and government sponsored entities $146,433 $829 $36 $1 $146,469 $830 Corporate Bonds 19,874 88 19,874 88 Municipal Securities 4,454 18 — — 4,454 18 Mortgage-backed Securities 637 9 100 1 737 10 Preferred Stock 2,514 33 — — 2,514 33 Total $173,912 $977 $136 $2 $174,048 $979 2014: Securities Available for Sale U.S. Treasury and government sponsored entities $165,004 $539 $— $— $165,004 $539 Municipal Securities 567 4 — — 567 4 Mortgage-backed Securities 117 1 — — 117 1 Total $165,688 $544 $— $— $165,688 $544 |
Schedule of Amortized Cost and Fair Value by Contractual Maturity | The amortized cost and fair values of debt securities at December 31, 2015 , are distributed by contractual maturity as shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Although preferred stock has no stated maturity, it is aggregated in the calculation of weighted average yields presented below in the category of investments that mature in ten years or more. (In Thousands) Amortized Cost Fair Value Weighted Average Yield U.S. Treasury and government sponsored entities Within 1 year $14,995 $15,006 0.86 % 1-5 years $223,121 $222,430 1.12 % Total $238,116 $237,436 1.10 % U.S. Agency mortgage-backed securities 1-5 years $31 $30 1.99 % 5-10 years 471 465 2.94 % Over 10 years 316 314 2.82 % Total $818 $809 2.86 % Corporate bonds Within 1 year $5,339 $5,346 1.30 % 1-5 years 33,710 33,672 1.10 % Total $39,049 $39,018 1.13 % Preferred stock Over 10 years $3,549 $3,524 6.72 % Total $3,549 $3,524 6.72 % Municipal securities Within 1 year $1,140 $1,144 1.91 % 1-5 years 7,730 7,885 2.89 % 5-10 years 2,260 2,256 4.19 % Total $11,130 $11,285 3.05 % |
Schedule of Available-For-Sale Securities Proceeds, Gains, and Losses | The proceeds and resulting gains and losses, computed using specific identification, from sales of investment securities for the years ending December 31, 2015 , 2014 , and 2013 , respectively, are as follows: (In Thousands) Proceeds Gross Gains Gross Losses 2015 Available for sale securities $20,522 $271 $— 2014 Available for sale securities $24,102 $465 $4 2013 Available for sale securities $23,514 $333 $— |
Summary of Interest Income on Available-For-Sale Investment Securities | A summary of interest income for the years ending December 31, 2015 , 2014 , and 2013 on available for sale investment securities is as follows: (In Thousands) 2015 2014 2013 U.S. Treasury and government sponsored entities $2,378 $1,769 $898 U.S. Agency mortgage-backed securities 25 25 1 Other 670 857 1,136 Total taxable interest income $3,073 $2,651 $2,035 Municipal securities $320 $391 $568 Total tax-exempt interest income $320 $391 $568 Total $3,393 $3,042 $2,603 |
Loans and Credit Quality (Table
Loans and Credit Quality (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Loan Portfolio Segmented By Risk Class | The composition of the loan portfolio as of the periods indicated is as follows: (In Thousands) Commercial Real estate construction one-to-four family Real estate construction other Real estate term owner occupied Real estate term non-owner occupied Real estate term other Consumer secured by 1st deeds of trust Consumer other Total December 31, 2015 AQR Pass $313,689 $44,488 $74,931 $112,248 $313,710 $37,938 $26,015 $28,882 $951,901 AQR Special Mention 536 — — — — 91 171 10 808 AQR Substandard 15,309 — — 16,515 359 — 487 20 32,690 Subtotal $329,534 $44,488 $74,931 $128,763 $314,069 $38,029 $26,673 $28,912 $985,399 Less: Unearned origination fees, net of origination costs (4,612 ) Total loans $980,787 December 31, 2014 AQR Pass $291,020 $34,651 $91,195 $103,049 $282,774 $36,705 $31,118 $31,399 $901,911 AQR Special Mention 11,618 — — 5,817 2,095 39 396 47 20,012 AQR Substandard 3,905 191 — 606 1,747 150 486 47 7,132 Subtotal $306,543 $34,842 $91,195 $109,472 $286,616 $36,894 $32,000 $31,493 $929,055 Less: Unearned origination fees, net of origination costs (4,551 ) Total loans $924,504 |
Nonaccrual Loans By Segment | Nonaccrual loans at the periods indicated, by segment are presented below: (In Thousands) December 31, 2015 December 31, 2014 Commercial $3,013 $2,031 Real estate construction one-to-four family — 191 Real estate term owner occupied 38 135 Real estate term non-owner occupied 359 1,746 Real estate term other — 39 Consumer secured by 1st deeds of trust 256 485 Consumer other 20 47 Total nonaccrual loans 3,686 4,674 Government guarantees on nonperforming loans (1,561 ) (1,178 ) Net nonaccrual loans $2,125 $3,496 |
Past Due Loans And Nonaccrual Loans | Past due loans and nonaccrual loans at the periods indicated are presented below by loan class: (In Thousands) 30-59 Days Past Due Still Accruing 60-89 Days Past Due Still Accruing Greater Than 90 Days Still Accruing Nonaccrual Total Past Due Current Total December 31, 2015 AQR Pass $601 $— $— $— $601 $951,300 $951,901 AQR Special Mention 312 — — — 312 496 808 AQR Substandard 216 21 — 3,686 3,923 28,767 32,690 Subtotal $1,129 $21 $— $3,686 $4,836 $980,563 $985,399 Less: Unearned origination fees, net of origination costs (4,612 ) Total $980,787 December 31, 2014 AQR Pass $696 $545 $— $— $1,241 $900,670 $901,911 AQR Special Mention — — — — — 20,012 20,012 AQR Substandard 40 — — 4,674 4,714 2,418 7,132 Subtotal $736 $545 $— $4,674 $5,955 $923,100 $929,055 Less: Unearned origination fees, net of origination costs (4,551 ) Total $924,504 |
Impaired Loans | The following table presents information about impaired loans by class for the years ended December 31, 2015 and 2014 : (In Thousands) Recorded Investment Unpaid Principal Balance Related Allowance December 31, 2015 With no related allowance recorded Commercial - AQR special mention $157 $157 $— Commercial - AQR substandard 14,030 14,443 — Real estate term owner occupied - AQR pass 753 753 — Real estate term owner occupied - AQR substandard 16,476 16,476 — Real estate term non-owner occupied - AQR pass 473 473 — Real estate term non-owner occupied - AQR substandard 352 352 — Real estate term other - AQR pass 699 699 — Real estate term other - AQR special mention 91 91 — Consumer secured by 1st deeds of trust - AQR pass 76 76 — Consumer secured by 1st deeds of trust - AQR substandard 472 472 — Subtotal $33,579 $33,992 $— With an allowance recorded Commercial - AQR substandard $1,061 $1,061 $344 Subtotal $1,061 $1,061 $344 Commercial - AQR special mention $157 $157 $— Commercial - AQR substandard 15,091 15,504 344 Real estate term owner-occupied - AQR pass 753 753 — Real estate term owner-occupied - AQR substandard 16,476 16,476 — Real estate term non-owner occupied - AQR pass 473 473 — Real estate term non-owner occupied - AQR substandard 352 352 — Real estate term other - AQR pass 699 699 — Real estate term other - AQR special mention 91 91 — Consumer secured by 1st deeds of trust - AQR pass 76 76 — Consumer secured by 1st deeds of trust - AQR special mention 472 472 — Total $34,640 $35,053 $344 (In Thousands) Recorded Investment Unpaid Principal Balance Related Allowance December 31, 2014 With no related allowance recorded Commercial - AQR special mention $170 $170 $— Commercial - AQR substandard 3,000 3,045 — Real estate construction one-to-four family - AQR special mention 191 191 — Real estate construction other - AQR pass 772 772 — Real estate term owner occupied - AQR pass 501 501 — Real estate term owner occupied - AQR special mention 273 273 — Real estate term owner occupied - AQR substandard 558 558 — Real estate term non-owner occupied - AQR pass 549 549 — Real estate term non-owner occupied - AQR special mention 2,088 2,088 — Real estate term non-owner occupied - AQR substandard 1,709 1,709 — Real estate term other - AQR substandard 150 150 — Consumer secured by 1st deeds of trust - AQR pass 82 82 — Consumer secured by 1st deeds of trust - AQR special mention 448 461 — Subtotal $10,491 $10,549 $— With an allowance recorded Commercial - AQR substandard $806 $806 $75 Subtotal $806 $806 $75 Commercial - AQR special mention $170 $170 $— Commercial - AQR substandard 3,806 3,851 75 Real estate construction one-to-four family - AQR special mention 191 191 — Real estate construction other - AQR pass 772 772 — Real estate term owner-occupied - AQR pass 501 501 — Real estate term owner occupied - AQR special mention 273 273 — Real estate term owner-occupied - AQR substandard 558 558 — Real estate term non-owner occupied - AQR pass 549 549 — Real estate term non-owner occupied - AQR special mention 2,088 2,088 — Real estate term non-owner occupied - AQR substandard 1,709 1,709 — Real estate term other - AQR substandard 150 150 — Consumer secured by 1st deeds of trust - AQR pass 82 82 — Consumer secured by 1st deeds of trust - AQR special mention 448 461 — Total $11,297 $11,355 $75 The unpaid principal balance included in the table above represents the recorded investment at the dates indicated, plus amounts charged off for book purposes. The following table summarizes our average recorded investment and interest income recognized on impaired loans for years ended December 31, 2015 and 2014 , respectively: Year Ended December 31, 2015 2014 (In Thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded Commercial - AQR pass $— $— $97 $2 Commercial - AQR special mention 163 13 254 23 Commercial - AQR substandard 10,738 421 1,912 94 Real estate construction one-to-four family - AQR special mention — — 175 11 Real estate construction one-to-four family - AQR substandard — — 117 — Real estate construction other - AQR pass 557 72 196 30 Real estate construction other - AQR special mention — — 605 101 Real estate construction other - AQR substandard 1,431 — — — Real estate term owner occupied - AQR pass 696 63 507 50 Real estate term owner occupied - AQR special mention 67 5 299 20 Real estate term owner occupied - AQR substandard 6,941 355 1,018 60 Real estate term non-owner occupied - AQR pass 521 75 595 94 Real estate term non-owner occupied - AQR special mention 1,080 97 2,360 253 Real estate term non-owner occupied - AQR substandard 1,141 — 1,229 — Real estate term other - AQR pass 179 13 — — Real estate term other - AQR special mention 68 6 — — Real estate term other - AQR substandard 74 7 152 14 Consumer secured by 1st deeds of trust - AQR pass 79 4 85 4 Consumer secured by 1st deeds of trust - AQR substandard 514 9 326 — Consumer other - AQR substandard — — 29 — Subtotal $24,249 $1,140 $9,956 $756 With an allowance recorded Commercial - AQR special mention $— $— $46 $6 Commercial - AQR substandard 1,668 — 356 — Real estate term other - AQR substandard 70 — — — Consumer secured by 1st deeds of trust - AQR substandard — — 175 — Consumer other - AQR substandard 10 — — — Subtotal $1,748 $— $577 $6 Total Commercial - AQR pass $— $— $97 $2 Commercial - AQR special mention 163 13 300 29 Commercial - AQR substandard 12,406 421 2,268 94 Real estate construction one-to-four family - AQR special mention — — 175 11 Real estate construction one-to-four family - AQR substandard — — 117 — Real estate construction other - AQR pass 557 72 196 30 Real estate construction other - AQR special mention — — 605 101 Real estate construction other - AQR substandard 1,431 — — — Real estate term owner-occupied - AQR pass 696 63 507 50 Real estate term owner-occupied - AQR special mention 67 5 299 20 Real estate term owner-occupied - AQR substandard 6,941 355 1,018 60 Real estate term non-owner occupied - AQR pass 521 75 595 94 Real estate term non-owner occupied - AQR special mention 1,080 97 2,360 253 Real estate term non-owner occupied - AQR substandard 1,141 — 1,229 — Real estate term other - AQR pass 179 13 — — Real estate term other - AQR special mention 68 6 — — Real estate term other - AQR substandard 144 7 152 14 Consumer secured by 1st deeds of trust - AQR pass 79 4 85 4 Consumer secured by 1st deeds of trust - AQR substandard 514 9 501 — Consumer other - AQR substandard 10 — 29 — Total Impaired Loans $25,997 $1,140 $10,533 $762 |
Newly Restructured Loans | The following table presents December 31, 2015 balances of loans that were restructured during 2015 : Accrual Status Nonaccrual Status Total Modifications (In Thousands) New Troubled Debt Restructurings Commercial - AQR substandard $8,891 $1,287 $10,178 Subtotal $8,891 $1,287 $10,178 Existing Troubled Debt Restructurings 2,914 648 3,562 Total $11,805 $1,935 $13,740 |
Newly Restructured Loans By Concession | (In Thousands) Number of Contracts Rate Modification Term Modification Payment Modification Combination Modification Total Modifications Pre-Modification Outstanding Recorded Investment: Commercial - AQR substandard 6 $— $8,891 $— $1,173 $10,064 Total 6 $— $8,891 $— $1,173 $10,064 Post-Modification Outstanding Recorded Investment: Commercial - AQR substandard 6 $— $8,891 $— $1,287 $10,178 Total 6 $— $8,891 $— $1,287 $10,178 |
Analysis Of Loan Transactions | Certain directors, and companies of which directors are principal owners, have loans and other transactions such as architectural fees with the Company. Such transactions are made on substantially the same terms, including interest rates and collateral required, as those prevailing for similar transactions of unrelated parties. An analysis of the loan transactions for the years indicated follows: (In Thousands) 2015 2014 Balance, beginning of the year $2,262 $2,336 Loans made — — Repayments 2,145 74 Balance, end of year $117 $2,262 |
Allowance For Loan Losses (Tabl
Allowance For Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Leases Receivable, Allowance [Abstract] | |
Allowance For Loan Losses | The following table details activity in the Allowance for the periods indicated: (In Thousands) Commercial Real estate construction one-to-four family Real estate construction other Real estate term owner occupied Real estate term non-owner occupied Real estate term other Consumer secured by 1st deed of trust Consumer other Unallocated Total 2015 Balance, beginning of period $5,643 $644 $1,653 $1,580 $4,704 $656 $285 $410 $1,148 $16,723 Charge-Offs (616 ) — — — — (81 ) (28 ) (101 ) — (826 ) Recoveries 379 — — — — 107 3 13 — 502 Provision (benefit) 500 210 (214 ) 77 811 (54 ) 4 75 345 1,754 Balance, end of period $5,906 $854 $1,439 $1,657 $5,515 $628 $264 $397 $1,493 $18,153 Balance, end of period: Individually evaluated for impairment $344 $— $— $— $— $— $— $— $— $344 Balance, end of period: Collectively evaluated for impairment $5,562 $854 $1,439 $1,657 $5,515 $628 $264 $397 $1,493 $17,809 2014 Balance, beginning of period $5,779 $557 $539 $1,583 $4,297 $537 $322 $390 $2,278 $16,282 Charge-Offs (319 ) — — (160 ) — — (59 ) (87 ) — (625 ) Recoveries 1,041 625 — — — — 4 32 — 1,702 Provision (benefit) (858 ) (538 ) 1,114 157 407 119 18 75 (1,130 ) (636 ) Balance, end of period $5,643 $644 $1,653 $1,580 $4,704 $656 $285 $410 $1,148 $16,723 Balance, end of period: Individually evaluated for impairment $75 $— $— $— $— $— $— $— $— $75 Balance, end of period: Collectively evaluated for impairment $5,568 $644 $1,653 $1,580 $4,704 $656 $285 $410 $1,148 $16,648 2013 Balance, beginning of period $6,308 $1,029 $326 $1,441 $4,065 $539 $344 $388 $1,968 $16,408 Charge-Offs (1,018 ) — — — — — (14 ) (164 ) — (1,196 ) Recoveries 1,049 77 79 — 488 — — 12 — 1,705 Provision (benefit) (560 ) (549 ) 134 142 (256 ) (2 ) (8 ) 154 310 (635 ) Balance, end of period $5,779 $557 $539 $1,583 $4,297 $537 $322 $390 $2,278 $16,282 Balance, end of period: Individually evaluated for impairment $— $— $— $— $— $— $11 $— $— $11 Balance, end of period: Collectively evaluated for impairment $5,779 $557 $539 $1,583 $4,297 $537 $311 $390 $2,278 $16,271 The following table sets forth information regarding changes in the purchased receivable reserve for the periods indicated: (In Thousands) 2015 2014 Balance at beginning of year $289 $273 Charge-offs — (793 ) Recoveries 30 105 Net recoveries (charge-offs) 30 (688 ) Change in reserve for purchased receivables (138 ) 704 Balance at end of year $181 $289 |
Recorded Investment Segregated By Amounts Individually Or Collectively In Allowance For Loan Losses | The following is a detail of the recorded investment in the loan portfolio, segregated by amounts evaluated individually or collectively in the Allowance at the periods indicated: (In Thousands) Commercial Real estate construction one-to-four family Real estate construction other Real estate term owner occupied Real estate term non-owner occupied Real estate term other Consumer secured by 1st deed of trust Consumer other Total December 31, 2015 Balance, end of period $329,534 $44,488 $74,931 $128,763 $314,069 $38,029 $26,673 $28,912 $985,399 Balance, end of period: Individually evaluated for impairment $15,248 $— $— $17,229 $825 $790 $548 $— $34,640 Balance, end of period: Collectively evaluated for impairment $314,286 $44,488 $74,931 $111,534 $313,244 $37,239 $26,125 $28,912 $950,759 December 31, 2014 Balance, end of period $306,543 $34,842 $91,195 $109,472 $286,616 $36,894 $32,000 $31,493 $929,055 Balance, end of period: Individually evaluated for impairment $3,976 $191 $772 $1,332 $4,346 $150 $530 $— $11,297 Balance, end of period: Collectively evaluated for impairment $302,567 $34,651 $90,423 $108,140 $282,270 $36,744 $31,470 $31,493 $917,758 |
Balance Of The Allowance Segregated By Segment And Class | The following represents the balance of the Allowance for the periods indicated segregated by segment and class: (In Thousands) Total Commercial Real estate construction 1-4 family Real estate construction other Real estate term owner occupied Real estate term non-owner occupied Real estate term other Consumer secured by 1st deeds of trust Consumer other Unallocated December 31, 2015 Individually evaluated for impairment AQR Substandard $344 $344 $— $— $— $— $— $— $— $— Collectively evaluated for impairment: AQR Pass 16,290 5,543 854 1,439 1,657 5,515 624 261 397 — AQR Special Mention 18 11 — — — — 4 3 — — AQR Substandard 8 8 — — — — — — — — Unallocated 1,493 — — — — — — — — 1,493 $18,153 $5,906 $854 $1,439 $1,657 $5,515 $628 $264 $397 $1,493 December 31, 2014 Individually evaluated for impairment: AQR Substandard $75 $75 $— $— $— $— $— $— $— $— Collectively evaluated for impairment: AQR Pass 14,643 4,938 644 1,653 1,382 4,703 651 278 394 — AQR Special Mention 832 621 — — 198 — 5 7 1 — AQR Substandard 25 9 — — — 1 — — 15 — Unallocated 1,148 — — — — — — — — 1,148 $16,723 $5,643 $644 $1,653 $1,580 $4,704 $656 $285 $410 $1,148 |
Purchased Receivables (Tables)
Purchased Receivables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Purchased Receivables [Abstract] | |
Summary Of Components Of Net Purchased Receivables | The following table summarizes the components of net purchased receivables at December 31, for the years indicated: (In Thousands) 2015 2014 Purchased receivables $13,507 $15,543 Reserve for purchased receivable losses (181 ) (289 ) Total $13,326 $15,254 |
Allowance For Loan Losses Purchased Receivables | The following table details activity in the Allowance for the periods indicated: (In Thousands) Commercial Real estate construction one-to-four family Real estate construction other Real estate term owner occupied Real estate term non-owner occupied Real estate term other Consumer secured by 1st deed of trust Consumer other Unallocated Total 2015 Balance, beginning of period $5,643 $644 $1,653 $1,580 $4,704 $656 $285 $410 $1,148 $16,723 Charge-Offs (616 ) — — — — (81 ) (28 ) (101 ) — (826 ) Recoveries 379 — — — — 107 3 13 — 502 Provision (benefit) 500 210 (214 ) 77 811 (54 ) 4 75 345 1,754 Balance, end of period $5,906 $854 $1,439 $1,657 $5,515 $628 $264 $397 $1,493 $18,153 Balance, end of period: Individually evaluated for impairment $344 $— $— $— $— $— $— $— $— $344 Balance, end of period: Collectively evaluated for impairment $5,562 $854 $1,439 $1,657 $5,515 $628 $264 $397 $1,493 $17,809 2014 Balance, beginning of period $5,779 $557 $539 $1,583 $4,297 $537 $322 $390 $2,278 $16,282 Charge-Offs (319 ) — — (160 ) — — (59 ) (87 ) — (625 ) Recoveries 1,041 625 — — — — 4 32 — 1,702 Provision (benefit) (858 ) (538 ) 1,114 157 407 119 18 75 (1,130 ) (636 ) Balance, end of period $5,643 $644 $1,653 $1,580 $4,704 $656 $285 $410 $1,148 $16,723 Balance, end of period: Individually evaluated for impairment $75 $— $— $— $— $— $— $— $— $75 Balance, end of period: Collectively evaluated for impairment $5,568 $644 $1,653 $1,580 $4,704 $656 $285 $410 $1,148 $16,648 2013 Balance, beginning of period $6,308 $1,029 $326 $1,441 $4,065 $539 $344 $388 $1,968 $16,408 Charge-Offs (1,018 ) — — — — — (14 ) (164 ) — (1,196 ) Recoveries 1,049 77 79 — 488 — — 12 — 1,705 Provision (benefit) (560 ) (549 ) 134 142 (256 ) (2 ) (8 ) 154 310 (635 ) Balance, end of period $5,779 $557 $539 $1,583 $4,297 $537 $322 $390 $2,278 $16,282 Balance, end of period: Individually evaluated for impairment $— $— $— $— $— $— $11 $— $— $11 Balance, end of period: Collectively evaluated for impairment $5,779 $557 $539 $1,583 $4,297 $537 $311 $390 $2,278 $16,271 The following table sets forth information regarding changes in the purchased receivable reserve for the periods indicated: (In Thousands) 2015 2014 Balance at beginning of year $289 $273 Charge-offs — (793 ) Recoveries 30 105 Net recoveries (charge-offs) 30 (688 ) Change in reserve for purchased receivables (138 ) 704 Balance at end of year $181 $289 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate [Abstract] | |
Net Operating Expense Related To Other Real Estate Owned | The following table details net operating expense related to OREO for the years indicated: Years Ended December 31, (In Thousands) 2015 2014 2013 OREO (income) expense, net rental income and gains on sale: OREO operating expense $224 $174 $142 Impairment on OREO 361 56 112 Rental income on OREO (80 ) (3 ) (26 ) Gains on sale of OREO (315 ) (643 ) (288 ) Total $190 ($416 ) ($60 ) |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | The following summarizes the components of premises and equipment at December 31 for the years indicated: (In Thousands) Useful Life 2015 2014 Land $2,600 $2,600 Furniture and equipment 3-7 years 12,641 11,363 Tenant improvements 2-15 years 8,023 8,019 Buildings 39 years 39,233 33,830 Total Premises and Equipment 62,497 55,812 Accumulated depreciation and amortization (22,280 ) (20,169 ) Total Premises and Equipment, Net $40,217 $35,643 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Transfers and Servicing [Abstract] | |
Servicing Asset at Fair Value | The following table outlines the key assumptions used in measuring the fair value of mortgage servicing rights as of December 31, 2015 and 2014: 2015 2014 Constant prepayment rate 10.54 % 11.59 % Discount rate 9.10 % 9.29 % The following table details the activity in the Company's mortgage servicing rights ("MSR") for the year indicated: (In thousands) 2015 2014 Balance, beginning of period $1,010 $— Acquired from Alaska Pacific Bank — 1,170 Additions for new MSR capitalized 802 — Changes in fair value: Due to changes in model inputs of assumptions (1) 29 — Other (2) (187 ) (160 ) Carrying value, December 31 $1,654 $1,010 (1) Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates. (2) Represents changes due to collection/realization of expected cash flows over time. The following table details information related to our serviced mortgage loan portfolio as of December 31, 2015 and 2014: (In thousands) December 31, 2015 December 31, 2014 Balance of loans serviced for others $125,446 $96,390 MSR as a percentage of serviced loans 1.32 % 1.05 % |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets And Other Assets | A summary of intangible assets and other assets is as follows: (In Thousands) 2015 2014 Intangible assets: Goodwill $22,334 $22,334 Core deposit intangible 492 663 Trade name intangible 950 950 NBG customer relationships — 88 Total $23,776 $24,035 |
Future Amortization Expense | The future amortization expense required on these assets is as follows: (In Thousands) 2016 $135 2017 100 2018 71 2019 59 2020 48 Thereafter 79 Total $492 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | (In Thousands) 2015 2014 Other assets: Investment in Low Income Housing Partnerships $20,233 $22,862 Deferred taxes, net 9,939 10,087 Bank owned life insurance 5,887 7,375 Investment in equity method investments 4,573 4,767 Accrued interest receivable 3,620 3,373 Prepaid expenses 1,230 2,217 Taxes receivable 878 1,220 Rate lock derivative 1,514 841 Other assets 3,900 5,020 Total $51,774 $57,762 |
Other Commitments | The table following shows the Company's commitments to invest in various low income housing tax credit partnerships. The Company earns a return on its investments in the form of tax credits and deductions that flow through to it as a limited partner in these partnerships. The Company recognized amortization expense of $2.7 million , $1.3 million , and $969,000 in 2015 , 2014 , and 2013 , respectively. The Company expects to fund its remaining $9.1 million in commitments on these investments through 2030. (In Thousands) Date of original commitment Years over which tax credits are earned Original commitment amount Less: life to date contributions Remaining commitment amount R4 - MVV May 2014 17 $8,518 ($824 ) $7,694 R4 - Coronado March 2013 17 10,729 (9,722 ) 1,007 WNC December 2012 16 2,500 (2,074 ) 426 USA 57 December 2006 15 3,000 (3,000 ) — Centerline XXXIII September 2006 18 3,000 (3,000 ) — Centerline XXII January 2003 18 3,000 (3,000 ) — Total $30,747 ($21,620 ) $9,127 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Schedule of Interest Expense on Deposit | Interest expense: Interest expense on deposits is presented below: (In Thousands) 2015 2014 2013 Interest-bearing demand accounts $63 $59 $54 Money market accounts 404 388 338 Savings accounts 470 511 485 Certificates of deposit $100,000 and greater 754 292 236 Certificates of deposit less than $100,000 248 169 128 Total $1,939 $1,419 $1,241 |
Schedule of Deposit Maturity | Deposits: At December 31, 2015 , the scheduled maturities of certificates of deposit are as follows: (In Thousands) 2016 $87,312 2017 39,535 2018 7,664 2019 987 2020 900 Thereafter 268 Total $136,666 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Future Principal Payments Required On The Company's Borrowings | The future principal payments that are required on the Company’s borrowings as of December 31, 2015 , are as follows: (In Thousands) 2016 $31,466 2017 48 2018 50 2019 52 2020 54 Thereafter 1,870 Total $33,540 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments | The Company's required minimum rental payments on non-cancelable leases as of December 31, 2015 , are as follows: (In Thousands) 2016 $2,575 2017 2,181 2018 2,030 2019 2,008 2020 1,589 Thereafter 12,222 Total $22,605 |
Schedule of future minimum lease rentals | The Company's future required minimum rental receipts on non-cancelable leases as of December 31, 2015 , are as follows: (In Thousands) 2016 $405 2017 408 2018 392 2019 399 2020 406 Thereafter 239 Total $2,249 |
Standby Letters Of Credit And Other Letters Of Credit | The Company applies the same credit standards to these contracts as it uses in its lending process. (In Thousands) 2015 2014 Off-balance sheet commitments: Commitments to extend credit $222,387 $219,349 Commitments to originate loans held for sale $71,280 $39,567 Standby letters of credit $6,399 $6,004 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table presents the fair value of derivatives not designated as hedging instruments at December 31, 2015 and December 31, 2014 : (In thousands) Asset Derivatives December 31, 2015 December 31, 2014 Balance Sheet Location Fair Value Fair Value Interest rate contracts Other assets $125 $78 Interest rate lock commitments Other assets 1,514 841 Total $1,639 $919 (In thousands) Liability Derivatives December 31, 2015 December 31, 2014 Balance Sheet Location Fair Value Fair Value Interest rate contracts Other liabilities $216 $158 Total $216 $158 |
Derivative Instruments, Gain (Loss) | The following table presents the gains of derivatives not designated as hedging instruments at December 31, 2015 and 2014: (In thousands) Income Statement Location December 31, 2015 December 31, 2014 Interest rate contracts Mortgage banking income ($422 ) ($306 ) Interest rate lock commitments Mortgage banking income 626 173 Total $204 ($133 ) |
Offsetting Assets | The following table summarizes the derivatives that have a right of offset as of December 31, 2015 and 2014: December 31, 2015 Gross amounts not offset in the Statement of Financial Position (In Thousands) Gross amounts of recognized assets and liabilities Gross amounts offset in the Statement of Financial Position Net amounts of assets and liabilities presented in the Statement of Financial Position Financial Instruments Collateral Posted Net Amount Asset Derivatives Interest rate contracts $125 $— $125 $— $— $125 Liability Derivatives Interest rate contracts $216 $— $216 $— $216 $— December 31, 2014 Gross amounts not offset in the Statement of Financial Position (In Thousands) Gross amounts of recognized assets and liabilities Gross amounts offset in the Statement of Financial Position Net amounts of assets and liabilities presented in the Statement of Financial Position Financial Instruments Collateral Posted Net Amount Asset Derivatives Interest rate contracts $78 $— $78 $— $— $78 Liability Derivatives Interest rate contracts $158 $— $158 $— $— $158 |
Offsetting Liabilities | The following table summarizes the derivatives that have a right of offset as of December 31, 2015 and 2014: December 31, 2015 Gross amounts not offset in the Statement of Financial Position (In Thousands) Gross amounts of recognized assets and liabilities Gross amounts offset in the Statement of Financial Position Net amounts of assets and liabilities presented in the Statement of Financial Position Financial Instruments Collateral Posted Net Amount Asset Derivatives Interest rate contracts $125 $— $125 $— $— $125 Liability Derivatives Interest rate contracts $216 $— $216 $— $216 $— December 31, 2014 Gross amounts not offset in the Statement of Financial Position (In Thousands) Gross amounts of recognized assets and liabilities Gross amounts offset in the Statement of Financial Position Net amounts of assets and liabilities presented in the Statement of Financial Position Financial Instruments Collateral Posted Net Amount Asset Derivatives Interest rate contracts $78 $— $78 $— $— $78 Liability Derivatives Interest rate contracts $158 $— $158 $— $— $158 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Assumptions Used To Determine Fair Value of Stock Options | The following assumptions were used to determine the fair value of stock options as of the grant date to determine compensation expense for the years ended December 31, 2015 , 2014 , and 2013 : Stock Options: 2015 2014 2013 Grant date fair value $7.01 $6.73 $5.59 Expected life of options 8 years 8 years 8 years Risk-free interest rate 2.17 % 2.21 % 2.30 % Dividend yield rate 2.64 % 2.64 % 2.90 % Price volatility 28.63 % 28.93 % 28.89 % |
Stock Options Activity | The following table summarizes stock option activity during 2015 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life, in Years Outstanding at January 1, 2015 179,990 $21.83 Granted 36,582 28.76 Forfeited (602 ) 22.30 Exercised (16,223 ) 22.80 Outstanding at December 31, 2015 199,747 $23.02 3.91 |
Restricted Stock Unit Activity | The following table summarizes restricted stock unit activity during 2015 : Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life, in Years Outstanding at January 1, 2015 59,486 $24.03 Granted 21,437 28.76 Vested (17,936 ) 20.35 Forfeited — — Outstanding at December 31, 2015 62,987 $26.69 1.90 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Capital Requirements And Actual Capital Ratios | The tables below illustrate the capital requirements for the Company and the Bank and the actual capital ratios for each entity that exceed these requirements. Management intends to maintain capital ratios in 2016 in excess of the FDIC’s “well-capitalized” classification. The dividends that the Bank pays to the Company are limited to the extent necessary for the Bank to meet the regulatory requirements of a “well-capitalized” bank. The capital ratios for the Company exceed those for the Bank primarily because the $18 million trust preferred securities offerings that the Company completed in the second quarter of 2003 and in the fourth quarter of 2005 are included in the Company’s capital for regulatory purposes although they are accounted for as a liability in its financial statements. The trust preferred securities are not accounted for on the Bank’s financial statements nor are they included in its capital. As a result, the Company has $18 million more in regulatory capital than the Bank at December 31, 2015 and 2014 , which explains most of the difference in the capital ratios for the two entities. Northrim BanCorp, Inc. Actual Adequately-Capitalized Well-Capitalized (In Thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2015: Common equity tier 1 capital (to risk-weighted assets) $154,464 12.01 % $57,876 ≥ 4.5 % $83,598 ≥ 6.5 % Total Capital (to risk-weighted assets) $187,761 14.60 % $102,883 ≥ 8 % $128,603 ≥ 10 % Tier I Capital (to risk-weighted assets) $171,653 13.34 % $77,205 ≥ 6 % $102,940 ≥ 8 % Tier I Capital (to average assets) $171,653 11.20 % $61,305 ≥ 4 % $76,631 ≥ 5 % As of December 31, 2014: Total Capital (to risk-weighted assets) $175,256 14.31 % $97,977 ≥ 8 % $122,471 ≥ 10 % Tier I Capital (to risk-weighted assets) $159,925 13.06 % $48,982 ≥ 4 % $73,472 ≥ 6 % Tier I Capital (to average assets) $159,925 11.21 % $57,065 ≥ 4 % $71,331 ≥ 5 % Northrim Bank Actual Adequately-Capitalized Well-Capitalized (In Thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2015: Common equity tier 1 capital (to risk-weighted assets) $156,317 12.21 % $57,611 ≥ 4.5 % $83,215 ≥ 6.5 % Total Capital (to risk-weighted assets) $171,662 13.41 % $102,408 ≥ 8 % $128,010 ≥ 10 % Tier I Capital (to risk-weighted assets) $155,630 12.16 % $76,791 ≥ 6 % $102,388 ≥ 8 % Tier I Capital (to average assets) $155,630 10.18 % $61,151 ≥ 4 % $76,439 ≥ 5 % As of December 31, 2014: Total Capital (to risk-weighted assets) $162,125 13.30 % $97,519 ≥ 8 % $121,898 ≥ 10 % Tier I Capital (to risk-weighted assets) $146,869 12.05 % $48,753 ≥ 4 % $73,130 ≥ 6 % Tier I Capital (to average assets) $146,869 10.35 % $56,761 ≥ 4 % $70,951 ≥ 5 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components Of The Provision For Income Taxes | Components of the provision for income taxes are as follows: (In Thousands) Current Tax Expense (Benefit) Deferred Expense(Benefit) Total Expense 2015: Federal $4,752 $127 $4,879 State 1,200 21 1,221 Amortization of investment in low income housing tax credit partnerships 2,684 — 2,684 Total $8,636 $148 $8,784 2014: Federal $6,589 ($1,117 ) $5,472 State 1,558 (194 ) 1,364 Amortization of investment in low income housing tax credit partnerships 1,337 — 1,337 Total $9,484 ($1,311 ) $8,173 2013: Federal $3,227 $1,034 $4,261 State 835 181 1,016 Amortization of investment in low income housing tax credit partnerships 969 — 969 Total $5,031 $1,215 $6,246 |
Reconciliation Of Actual To Expected Tax Expense | The actual expense for 2015 , 2014 , and 2013 , differs from the “expected” tax expense (computed by applying the U.S. Federal Statutory Tax Rate of 35% for the year ended December 31, 2015 , 2014 , and 2013 ) as follows: (In Thousands) 2015 2014 2013 Computed “expected” income tax expense $8,552 $8,646 $6,192 State income taxes, net 794 886 660 Non-deductible merger expenses — 130 — Tax-exempt interest on investment securities (507 ) (415 ) (461 ) Tax-exempt gain on purchase of mortgage affiliate — (1,050 ) — Amortization of investment in low income housing tax credit partnerships 2,684 1,337 969 Low income housing credits (2,446 ) (1,298 ) (955 ) Other (293 ) (63 ) (159 ) Total $8,784 $8,173 $6,246 |
Components Of Net Deferred Tax Asset | The components of the net deferred tax asset are as follows: (In Thousands) 2015 2014 2013 Deferred Tax Asset: Allowance for loan losses $7,082 $5,900 $6,543 Loan fees, net of costs 1,896 1,871 1,653 Depreciation and amortization (64 ) (60 ) 446 Other real estate owned 46 50 174 Deferred compensation 2,005 1,691 1,665 Net operating loss carryforwards 73 589 — Equity compensation 578 502 507 Loan discount 476 1,003 — Fair market value adjustment on certificates of deposit 283 321 — Other 1,380 1,636 1,122 Total Deferred Tax Asset $13,755 $13,503 $12,110 Deferred Tax Liability: Unrealized gain on available-for-sale investment securities $235 ($173 ) ($451 ) Intangible amortization (2,494 ) (2,206 ) (1,949 ) Mortgage servicing rights (415 ) — — FHLB stock repurchase and dividends (686 ) (306 ) (348 ) Other (456 ) (731 ) (586 ) Total Deferred Tax Liability ($3,816 ) ($3,416 ) ($3,334 ) Net Deferred Tax Asset $9,939 $10,087 $8,776 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Estimated Fair Values | Estimated fair values as of the periods indicated are as follows: December 31, 2015 December 31, 2014 (In Thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Level 1 inputs: Cash, due from banks and deposits in other banks $58,673 $58,673 $72,056 $72,056 Investment securities 43,033 43,033 45,570 45,570 Level 2 inputs: Investment securities 248,983 249,039 238,361 241,872 Investment in Federal Home Loan Bank Stock 1,816 1,816 3,404 3,404 Accrued interest receivable 3,620 3,620 3,373 3,373 Interest rate contracts 125 125 78 78 Level 3 inputs: Loans and loans held for sale 1,031,340 1,033,551 968,370 974,366 Purchased receivables, net 13,326 13,326 15,254 15,254 Interest rate lock commitments 1,514 1,514 841 841 Mortgage servicing rights 1,654 1,654 1,010 1,010 Financial liabilities: Level 2 inputs: Deposits $1,240,792 $1,240,223 $1,179,747 $1,180,136 Securities sold under repurchase agreements 31,420 31,420 19,843 19,843 Borrowings 2,120 2,101 26,304 26,485 Accrued interest payable 56 56 18 18 Interest rate contracts 216 216 158 158 Level 3 inputs: Junior subordinated debentures 18,558 17,433 18,558 17,239 Unrecognized financial instruments: Commitments to extend credit (1) $222,387 $2,224 $219,349 $2,193 Standby letters of credit (1) 6,399 64 6,004 60 (1) Carrying amounts reflect the notional amount of credit exposure under these financial instruments. |
Schedule of Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following table sets forth the balances as of the periods indicated of assets measured at fair value on a recurring basis: (In Thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2015 Assets: Available for sale securities U.S. Treasury and government sponsored entities $237,436 $35,008 $202,428 $— Municipal securities 10,326 — 10,326 — U.S. Agency mortgage-backed securities 809 — 809 — Corporate bonds 39,018 4,501 34,517 — Preferred stock 3,524 3,524 — — Total available for sale securities $291,113 $43,033 $248,080 $— Interest rate contracts $125 $— $125 $— Interest rate lock commitments 1,514 — — 1,514 Mortgage servicing rights 1,654 — — 1,654 Total other assets $3,293 $— $125 $3,168 Liabilities: Interest rate contracts $216 $— $216 $— December 31, 2014 Assets: Available for sale securities U.S. Treasury and government sponsored entities $226,190 $15,545 $210,645 $— Municipal securities 12,124 — 12,124 — U.S. Agency mortgage-backed securities 1,029 — 1,029 — Corporate bonds 39,235 26,873 12,362 — Preferred stock 3,152 3,152 — — Total available for sale securities $281,730 $45,570 $236,160 $— Interest rate contracts 78 — 78 — Interest rate lock commitments 841 — — 841 Mortgage servicing rights 1,010 — — 1,010 Total other assets $1,929 $— $78 $1,851 Liabilities: Interest rate contracts $158 $— $158 $— |
Fair Value, Assets Measured on Recurring Basis | The following table provides a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the years ended December 31, 2015 and 2014: (In Thousands) Beginning balance Change included in earnings Purchases and issuances Sales and settlements Ending balance Net change in unrealized gains (losses) relating to items held at end of period December 31, 2015 Interest rate lock commitments $841 ($2,270 ) $20,886 ($17,943 ) $1,514 $1,514 Mortgage servicing rights 1,010 (158 ) 802 — 1,654 — Total $1,851 ($2,428 ) $21,688 ($17,943 ) $3,168 $1,514 December 31, 2014 Interest rate lock commitments $— ($119 ) $2,399 ($1,439 ) $841 $841 Mortgage servicing rights — (160 ) 1,170 — 1,010 — Total $— ($279 ) $3,569 ($1,439 ) $1,851 $841 |
Fair Value, Assets Measured on Nonrecurring Basis | (In Thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (gains) losses December 31, 2015 Loans measured for impairment $1,061 $— $— $1,061 $269 Other real estate owned 830 — — 830 361 Total $1,891 $— $— $1,891 $630 December 31, 2014 Loans measured for impairment $806 $— $— $806 $75 Other real estate owned 423 — — 423 56 Total $1,229 $— $— $1,229 $131 |
Schedule of Valuation Assumptions | The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a nonrecurring basis at December 31, 2015 : Financial Instrument Valuation Technique Unobservable Input Weighted Average Rate Range Loans measured for impairment In-house valuation of real estate; discounted cash flow Discount rate 25% - 50% Other real estate owned Fair value of collateral Estimated capital costs to complete improvements 7% - 25% Interest rate lock commitment External pricing model Pull through rate 93.16 % Mortgage servicing rights Discounted cash flow Constant prepayment rate 9.90% - 19.12% Discount rate 9.08% - 9.23% |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Summarized financial information for the Company's reportable segments and the reconciliation to the consolidated financial results is shown in the following tables: December 31, 2015 (In Thousands) Community Banking Home Mortgage Lending Consolidated Interest income $57,729 $2,051 $59,780 Interest expense 1,796 1,075 2,871 Net interest income 55,933 976 56,909 Provision (benefit) for loan losses 1,754 — 1,754 Other operating income 14,995 29,613 44,608 Change in FV earn-out liability 4,094 — 4,094 Other operating expense 47,070 21,481 68,551 Income before provision for income taxes 18,010 9,108 27,118 Provision for income taxes 5,024 3,760 8,784 Net income 12,986 5,348 18,334 Less: net income attributable to the noncontrolling interest 551 — 551 Net income attributable to Northrim BanCorp, Inc. $12,435 $5,348 $17,783 Total assets $1,431,759 $67,733 $1,499,492 Loans held for sale $— $50,553 $50,553 December 31, 2014 (In Thousands) Community Banking Home Mortgage Lending Consolidated Interest income $54,204 $142 $54,346 Interest expense 1,942 111 2,053 Net interest income 52,262 31 52,293 Provision (benefit) for loan losses (636 ) — (636 ) Other operating income 17,869 3,280 21,149 Other operating expense 46,165 1,873 48,038 Income before provision for income taxes 24,602 1,438 26,040 Provision for income taxes 7,582 591 8,173 Net income 17,020 847 17,867 Less: net income attributable to the noncontrolling interest 459 — 459 Net income attributable to Northrim BanCorp, Inc. $16,561 $847 $17,408 Total assets $1,390,852 $58,497 $1,449,349 Loans held for sale $— $43,866 $43,866 |
Parent Company Information (Tab
Parent Company Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Balance Sheets | Balance Sheets at December 31, 2015 2014 (In Thousands) Assets Cash and cash equivalents $10,258 $6,890 Investment securities available for sale 3,524 3,152 Investment in Northrim Bank 178,905 169,590 Investment in NISC 1,474 1,633 Investment in NCT1 248 248 Investment in NST2 310 310 Due from NISC — 101 Other assets 1,184 1,268 Total Assets $195,903 $183,192 Liabilities Junior subordinated debentures $18,558 $18,558 Other liabilities 310 311 Total Liabilities 18,868 18,869 Shareholders' Equity Common stock 6,877 6,854 Additional paid-in capital 62,420 61,729 Retained earnings 108,150 95,493 Accumulated other comprehensive income (loss) (412 ) 247 Total Shareholders' Equity 177,035 164,323 Total Liabilities and Shareholders' Equity $195,903 $183,192 |
Statements Of Income | Statements of Income for Years Ended: 2015 2014 2013 (In Thousands) Income Interest income $116 $197 $208 Net income from Northrim Bank 18,865 19,358 13,645 Net income from NISC 140 167 37 Other income 175 30 170 Total Income $19,296 $19,752 $14,060 Expense Interest expense 463 451 459 Administrative and other expenses 2,191 3,243 2,387 Total Expense 2,654 3,694 2,846 Income Before Benefit from Income Taxes 16,642 16,058 11,214 Benefit from income taxes (1,141 ) (1,350 ) (1,111 ) Net Income $17,783 $17,408 $12,325 |
Statements Of Cash Flows | Statements of Cash Flows for Years Ended: 2015 2014 2013 (In Thousands) Operating Activities: Net income $17,783 $17,408 $12,325 Adjustments to Reconcile Net Income to Net Cash: Equity in undistributed earnings from subsidiaries (19,005 ) (19,525 ) (13,683 ) Stock-based compensation 608 360 506 Changes in other assets and liabilities (298 ) (241 ) (60 ) Net Cash Used from Operating Activities (912 ) (1,998 ) (912 ) Investing Activities: Purchases of investment securities available for sale (3,549 ) — 525 Proceeds from sales/calls/maturities of securities available for sale 2,998 — — Net cash received from Alaska Pacific acquisition — 6,367 — Investment in Northrim Bank, NISC, NCT1 & NST2 9,842 (3,000 ) 5,874 Net Cash Provided by Investing Activities 9,291 3,367 6,399 Financing Activities: Dividends paid to shareholders (5,117 ) (4,750 ) (4,215 ) Proceeds from issuance of common stock and excess tax benefits 106 150 100 Net Cash Used from Financing Activities (5,011 ) (4,600 ) (4,115 ) Net change in Cash and Cash Equivalents 3,368 (3,231 ) 1,372 Cash and Cash Equivalents at beginning of year 6,890 10,121 8,749 Cash and Cash Equivalents at end of year $10,258 $6,890 $10,121 |
Quarterly Results of Operatio59
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Quarterly Results of Operations | 2015 Quarter Ended Dec. 31 Sept. 30 June 30 March 31 (In Thousands Except Per Share Amounts) Total interest income $15,063 $15,388 $14,943 $14,386 Total interest expense 663 706 748 754 Net interest income 14,400 14,682 14,195 13,632 Provision for loan losses 376 676 376 326 Other operating income 10,104 12,407 11,563 10,535 Other operating expense 18,229 18,203 17,753 18,461 Income before provision for income taxes 5,899 8,210 7,629 5,380 Provision for income taxes 1,673 2,678 2,686 1,747 Net Income 4,226 5,532 4,943 3,633 Less: Net income attributable to the noncontrolling interest 120 197 162 72 Net income attributable to Northrim Bancorp, Inc. $4,106 $5,335 $4,781 $3,561 Earnings per share, basic $0.60 $0.78 $0.70 $0.52 Earnings per share, diluted $0.59 $0.77 $0.69 $0.51 2014 Quarter Ended Dec. 31 Sept. 30 June 30 March 31 (In Thousands Except Per Share Amounts) Total interest income $14,566 $14,212 $13,895 $11,673 Total interest expense 642 487 484 440 Net interest income 13,924 13,725 13,411 11,233 Provision (benefit) for loan losses 500 — (1,136 ) — Other operating income 9,376 4,934 4,106 2,734 Other operating expense 13,671 12,779 11,620 9,967 Income before provision for income taxes 9,129 5,880 7,033 4,000 Provision for income taxes 2,325 1,982 2,569 1,297 Net Income 6,804 3,898 4,464 2,703 Less: Net income attributable to the noncontrolling interest 130 191 95 45 Net income attributable to Northrim Bancorp, Inc. $6,674 $3,707 $4,369 $2,658 Earnings per share, basic $0.98 $0.54 $0.64 $0.41 Earnings per share, diluted $0.97 $0.53 $0.63 $0.40 |
Summary of Significant Accoun60
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2015USD ($)Segmenttrustborrowershares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | Dec. 01, 2014 | |
Accounting Policy [Line Items] | ||||
Number of Trust | trust | 2 | |||
Number of operating segments | Segment | 2 | |||
Maturity period of securities at acquisition | 90 days | |||
Threshold for nonperforming loans individually evaluated for impairment | $ 50,000 | |||
Loan loss history used | 5 years | |||
Average holding of purchased receivables | 1 year | |||
Marketing expense | $ 2,728,000 | $ 2,059,000 | $ 1,853,000 | |
Anti-dilutive shares | shares | 54,903 | 0 | 0 | |
Commercial and construction loans | $ 449,000,000 | $ 432,600,000 | ||
Large borrowing relationships | borrower | 27 | |||
Unfunded commitments to large borrowers | $ 128,500,000 | |||
Lender Concentration Risk | ||||
Accounting Policy [Line Items] | ||||
Concentration risk, percent | 41.00% | |||
Buildings | ||||
Accounting Policy [Line Items] | ||||
Premises and equipment, useful life | 39 years | |||
Minimum | Furniture And Equipment | ||||
Accounting Policy [Line Items] | ||||
Premises and equipment, useful life | 3 years | |||
Minimum | Tenant Improvements | ||||
Accounting Policy [Line Items] | ||||
Premises and equipment, useful life | 2 years | |||
Maximum | Furniture And Equipment | ||||
Accounting Policy [Line Items] | ||||
Premises and equipment, useful life | 7 years | |||
Maximum | Tenant Improvements | ||||
Accounting Policy [Line Items] | ||||
Premises and equipment, useful life | 15 years | |||
RML | ||||
Accounting Policy [Line Items] | ||||
Voting interests acquired | 76.50% |
Summary of Significant Accoun61
Summary of Significant Accounting Policies - Calculation Of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||||||||
Net income attributable to Northrim BanCorp, Inc. | $ 4,106 | $ 5,335 | $ 4,781 | $ 3,561 | $ 6,674 | $ 3,707 | $ 4,369 | $ 2,658 | $ 17,783 | $ 17,408 | $ 12,325 |
Basic weighted average common shares outstanding (shares) | 6,859,209 | 6,761,328 | 6,518,772 | ||||||||
Dilutive effect of potential common shares from awards granted under equity incentive program (shares) | 89,000 | 91,000 | 91,000 | ||||||||
Total (shares) | 6,948,474 | 6,852,267 | 6,609,950 | ||||||||
Earnings Per Share, Basic (USD per share) | $ 0.60 | $ 0.78 | $ 0.70 | $ 0.52 | $ 0.98 | $ 0.54 | $ 0.64 | $ 0.41 | $ 2.59 | $ 2.57 | $ 1.89 |
Earnings Per Share, Diluted (USD per share) | $ 0.59 | $ 0.77 | $ 0.69 | $ 0.51 | $ 0.97 | $ 0.53 | $ 0.63 | $ 0.40 | $ 2.56 | $ 2.54 | $ 1.87 |
Business Combinations - Summary
Business Combinations - Summary of Fair Value Adjustments (Details) - USD ($) $ in Thousands | Dec. 01, 2014 | Apr. 01, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | |||||
Bargain purchase gain | $ 0 | $ 3,001 | $ 0 | ||
Goodwill | (22,334) | (22,334) | |||
Alaska Pacific Bank | |||||
Business Acquisition [Line Items] | |||||
Cost basis net assets | $ 14,733 | ||||
Cash payment made | (6,423) | ||||
Common stock issued | (7,446) | ||||
Net loans | (1,137) | ||||
Premises and equipment | 547 | ||||
Other intangible assets | 623 | ||||
Mortgage servicing rights | (119) | ||||
Deposits | (844) | ||||
Other | 236 | ||||
Bargain purchase gain | $ 170 | ||||
RML | |||||
Business Acquisition [Line Items] | |||||
Cost basis net assets | $ 11,915 | ||||
Cash payment made | (18,240) | ||||
Cash surrender value of life insurance paid | (3,896) | ||||
Liability for future earn out payments | (7,318) | $ (6,600) | $ (7,300) | ||
Net loans | (360) | ||||
Other intangible assets | 950 | ||||
Rate lock derivative asset | 960 | ||||
Investment in Homestate | 1,490 | ||||
Other | (311) | ||||
Goodwill | $ (14,810) |
Business Combinations - Schedul
Business Combinations - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 01, 2014 | Apr. 01, 2014 |
Alaska Pacific Bank | ||
Business Acquisition [Line Items] | ||
Cash and equivalents | $ 12,956 | |
Investment securities | 7,240 | |
Net loans | 138,432 | |
Premises and equipment | 3,436 | |
Other intangibles | 623 | |
Mortgage servicing rights | 1,170 | |
Other real estate owned | 1,709 | |
Other assets | 1,645 | |
Total assets acquired | 167,211 | |
Deposits | 151,438 | |
Other liabilities | 1,734 | |
Total liabilities assumed | $ 153,172 | |
RML | ||
Business Acquisition [Line Items] | ||
Cash and equivalents | $ 10,828 | |
Net loans | 41,304 | |
Premises and equipment | 255 | |
Other intangibles | 950 | |
Rate lock derivative asset | 960 | |
Investment in Homestate | 3,000 | |
Other real estate owned | 270 | |
Other assets | 10,291 | |
Total assets acquired | 67,858 | |
Borrowings | 37,541 | |
Other liabilities | 6,625 | |
Total liabilities assumed | $ 44,166 |
Business Combinations - Sched64
Business Combinations - Schedule of Loans Acquired (Details) - Alaska Pacific Bank $ in Thousands | Apr. 01, 2014USD ($) |
Business Acquisition [Line Items] | |
Contractually required principal payments | $ 133,921 |
Purchase adjustment for credit, interest rate, and liquidity | 612 |
Fair value of purchased non-credit impaired loans | $ 134,533 |
Business Combinations - Sched65
Business Combinations - Schedule of Loans Acquired with Deteriorating Credit Quality (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 01, 2014 |
Business Acquisition [Line Items] | |||
Fair value of purchased credit impaired loans | $ 1,600 | $ 3,000 | $ 3,900 |
Alaska Pacific Bank | |||
Business Acquisition [Line Items] | |||
Contractually required principal payments | 7,553 | ||
Nonaccretable difference | (3,654) | ||
Fair value of purchased credit impaired loans | $ 3,899 |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||||
Pro forma revenue | $ 73,442 | |||||||||||
Net income attributable to Northrim Bancorp, Inc. | $ 4,106 | $ 5,335 | $ 4,781 | $ 3,561 | $ 6,674 | $ 3,707 | $ 4,369 | $ 2,658 | $ 17,783 | $ 17,408 | $ 12,325 | |
Earnings Per Share, Basic (USD per share) | $ 0.60 | $ 0.78 | $ 0.70 | $ 0.52 | $ 0.98 | $ 0.54 | $ 0.64 | $ 0.41 | $ 2.59 | $ 2.57 | $ 1.89 | |
Earnings Per Share, Diluted (USD per share) | $ 0.59 | $ 0.77 | $ 0.69 | $ 0.51 | $ 0.97 | $ 0.53 | $ 0.63 | $ 0.40 | $ 2.56 | $ 2.54 | $ 1.87 | |
Weighted Average Shares Outstanding, Basic (shares) | 6,859,209 | 6,761,328 | 6,518,772 | |||||||||
Weighted Average Shares Outstanding, Diluted (shares) | 6,948,474 | 6,852,267 | 6,609,950 | |||||||||
Net interest income | $ 14,400 | $ 14,682 | $ 14,195 | $ 13,632 | $ 13,924 | $ 13,725 | $ 13,411 | $ 11,233 | $ 56,909 | $ 52,293 | $ 44,034 | |
Alaska Pacific Bank | ||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||||
Weighted Average Shares Outstanding, Basic (shares) | 6,833,881 | |||||||||||
Weighted Average Shares Outstanding, Diluted (shares) | 6,924,820 | |||||||||||
Pro forma, interest income | $ 8,700 | $ 2,095 | ||||||||||
Pro forma, net income (loss) since acquisition | (1,282) | |||||||||||
Pro forma, revenue since acquisition | (38) | |||||||||||
Pro forma, adjustment to net income (loss) since acquisition | 82 | |||||||||||
Pro forma revenue | 75,499 | |||||||||||
Pro forma net income (loss) | $ 16,208 | |||||||||||
Pro forma earnings per share, basic (USD per share) | $ 2.37 | |||||||||||
Pro forma earnings per share, diluted (USD per share) | $ 2.34 | |||||||||||
RML | ||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||||
Weighted Average Shares Outstanding, Basic (shares) | 6,761,328 | |||||||||||
Weighted Average Shares Outstanding, Diluted (shares) | 6,852,267 | |||||||||||
Pro forma, interest income | $ 30,200 | $ 22,227 | ||||||||||
Pro forma, net income (loss) since acquisition | 4,000 | |||||||||||
Pro forma, revenue since acquisition | (1,176) | |||||||||||
Pro forma, adjustment to net income (loss) since acquisition | 2,250 | |||||||||||
Pro forma revenue | 94,493 | |||||||||||
Pro forma net income (loss) | $ 23,658 | |||||||||||
Pro forma earnings per share, basic (USD per share) | $ 3.50 | |||||||||||
Pro forma earnings per share, diluted (USD per share) | $ 3.45 | |||||||||||
Net interest income | $ 6,000 | |||||||||||
Other operating income (expense), net | $ 16,200 | |||||||||||
Alaska Pacific Bank and RML | ||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||||
Weighted Average Shares Outstanding, Basic (shares) | 6,833,881 | |||||||||||
Weighted Average Shares Outstanding, Diluted (shares) | 6,924,820 | |||||||||||
Pro forma, revenue since acquisition | $ (1,214) | |||||||||||
Pro forma, adjustment to net income (loss) since acquisition | 2,332 | |||||||||||
Pro forma revenue | 96,550 | |||||||||||
Pro forma net income (loss) | $ 22,458 | |||||||||||
Pro forma earnings per share, basic (USD per share) | $ 3.29 | |||||||||||
Pro forma earnings per share, diluted (USD per share) | $ 3.24 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) | Dec. 01, 2014USD ($) | Nov. 30, 2014USD ($) | Apr. 01, 2014USD ($)purchased_loan$ / sharesshares | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Business Acquisition [Line Items] | ||||||||
Bargain purchase gain | $ 0 | $ 3,001,000 | $ 0 | |||||
Merger and acquisition expense | 0 | 1,962,000 | 536,000 | |||||
Gain on purchase of mortgage affiliate | 0 | 3,001,000 | 0 | |||||
Goodwill | $ 22,334,000 | $ 22,334,000 | 22,334,000 | 22,334,000 | ||||
Change in fair value of RML earn-out liability | 4,094,000 | 0 | $ 0 | |||||
Alaska Pacific Bank | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Core deposits as a percent of total | 0.50% | |||||||
Business Acquisition [Line Items] | ||||||||
Voting interests acquired | 100.00% | |||||||
Acquisition cost | $ 13,900,000 | |||||||
Number of shares issued (in shares) | shares | 290,212 | |||||||
Cash payment made | $ 6,423,000 | |||||||
Bargain purchase gain | $ 170,000 | |||||||
Purchased impaired loans | purchased_loan | 18 | |||||||
Accretable difference on purchased loans | $ 0 | |||||||
Pro forma, interest income | 8,700,000 | 2,095,000 | ||||||
Noninterest expense | 5,200,000 | |||||||
Net income (loss) attributable to parent since acquisition | 3,500,000 | |||||||
Alaska Pacific Bank | Professional and Outside Services | ||||||||
Business Acquisition [Line Items] | ||||||||
Merger and acquisition expense | 1,500,000 | |||||||
Alaska Pacific Bank | Weighted Average | ||||||||
Business Acquisition [Line Items] | ||||||||
Shares issued (USD per share) | $ / shares | $ 25.66 | |||||||
Alaska Pacific Bank | Core Deposits | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible assets acquired | $ 623,000 | |||||||
RML | ||||||||
Business Acquisition [Line Items] | ||||||||
Voting interests acquired | 76.50% | |||||||
Acquisition cost | $ 29,500,000 | |||||||
Cash payment made | 18,240,000 | |||||||
Pro forma, interest income | 30,200,000 | 22,227,000 | ||||||
Noninterest expense | 21,500,000 | |||||||
Net income (loss) attributable to parent since acquisition | 8,700,000 | |||||||
Merger and acquisition expense | 507,000 | |||||||
Fair value of equity interest in acquiree | $ 9,000,000 | |||||||
Gain on purchase of mortgage affiliate | 3,000,000 | |||||||
Ownership prior to acquisition of company | 23.50% | |||||||
Goodwill | 14,810,000 | |||||||
Liability for future earn out payments | $ 7,318,000 | $ 7,300,000 | $ 6,600,000 | 6,600,000 | $ 7,300,000 | |||
Contingent consideration term | 5 years | |||||||
Change in fair value of RML earn-out liability | 4,100,000 | |||||||
Loss Contingency Accrual, Payments | $ 4,900,000 | |||||||
Equity interest percentage | 100.00% | |||||||
RML | Tier One Earn Out | ||||||||
Business Acquisition [Line Items] | ||||||||
Percent of revenue used to calculate liability | 40.00% | |||||||
RML | Tier Two Earn Out | ||||||||
Business Acquisition [Line Items] | ||||||||
Percent of revenue used to calculate liability | 50.00% | |||||||
RML | Tier Three Earn Out | ||||||||
Business Acquisition [Line Items] | ||||||||
Percent of revenue used to calculate liability | 70.00% | |||||||
RML | Tier Four Earn Out | ||||||||
Business Acquisition [Line Items] | ||||||||
Percent of revenue used to calculate liability | 85.00% | |||||||
RML | Tier Five Earn Out | ||||||||
Business Acquisition [Line Items] | ||||||||
Percent of revenue used to calculate liability | 55.00% | |||||||
RML | Trade Names | ||||||||
Business Acquisition [Line Items] | ||||||||
Indefinite-lived intangible assets acquired | $ 950,000 | |||||||
RML | Minimum | Tier One Earn Out | ||||||||
Business Acquisition [Line Items] | ||||||||
Revenue range used to calculate liability | $ 1,000,000 | |||||||
RML | Minimum | Tier Two Earn Out | ||||||||
Business Acquisition [Line Items] | ||||||||
Revenue range used to calculate liability | 2,000,000 | |||||||
RML | Minimum | Tier Three Earn Out | ||||||||
Business Acquisition [Line Items] | ||||||||
Revenue range used to calculate liability | 3,000,000 | |||||||
RML | Minimum | Tier Four Earn Out | ||||||||
Business Acquisition [Line Items] | ||||||||
Revenue range used to calculate liability | 4,000,000 | |||||||
RML | Minimum | Tier Five Earn Out | ||||||||
Business Acquisition [Line Items] | ||||||||
Revenue range used to calculate liability | 6,000,000 | |||||||
RML | Maximum | Tier One Earn Out | ||||||||
Business Acquisition [Line Items] | ||||||||
Revenue range used to calculate liability | 2,000,000 | |||||||
RML | Maximum | Tier Two Earn Out | ||||||||
Business Acquisition [Line Items] | ||||||||
Revenue range used to calculate liability | 3,000,000 | |||||||
RML | Maximum | Tier Three Earn Out | ||||||||
Business Acquisition [Line Items] | ||||||||
Revenue range used to calculate liability | 4,000,000 | |||||||
RML | Maximum | Tier Four Earn Out | ||||||||
Business Acquisition [Line Items] | ||||||||
Revenue range used to calculate liability | $ 6,000,000 |
Cash and Due from Banks - Narra
Cash and Due from Banks - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash and Due from Banks [Abstract] | ||
Minimum average daily balance | $ 500,000 | |
Compensating Balances [Line Items] | ||
Required balance | $ 500,000 | |
Maturity period of securities at acquisition | 90 days | |
Domestic certificates of deposit | $ 0 | $ 3,500,000 |
Federal Reserve Bank | ||
Compensating Balances [Line Items] | ||
Required balance | $ 0 |
Interest Bearing Deposits in 69
Interest Bearing Deposits in Other Banks (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest Bearing Deposits In Other Banks [Abstract] | ||
Maximum maturity period | 1 year | |
Interest bearing deposits at Federal Reserve Bank | $ 27,275 | $ 31,806 |
Interest bearing deposits at FHLB | 108 | 420 |
Domestic certificates of deposit at other institutions | 0 | 3,500 |
Other interest bearing deposits at other institutions | 301 | 294 |
Total | $ 27,684 | $ 36,020 |
Investment Securities - Narrat
Investment Securities - Narrative (Details) $ in Millions | Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($)security |
Marketable Securities [Abstract] | ||
Securities with unrealized losses | 39 | 29 |
Positions in unrealized loss for greater than one year | 6 | 0 |
Pledged securities | $ | $ 59.7 | $ 54.1 |
Investment Securities - Summar
Investment Securities - Summary Of Available-For-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 291,759 | $ 281,310 |
Gross Unrealized Gains | 333 | 964 |
Gross Unrealized Losses | 979 | 544 |
Investment securities available for sale | 291,113 | 281,730 |
U.S. Treasury and government sponsored entities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 238,116 | 226,624 |
Gross Unrealized Gains | 150 | 105 |
Gross Unrealized Losses | 830 | 539 |
Investment securities available for sale | 237,436 | 226,190 |
Municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 10,227 | 11,843 |
Gross Unrealized Gains | 117 | 285 |
Gross Unrealized Losses | 18 | 4 |
Investment securities available for sale | 10,326 | 12,124 |
U.S. Agency mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 818 | 1,024 |
Gross Unrealized Gains | 1 | 6 |
Gross Unrealized Losses | 10 | 1 |
Investment securities available for sale | 809 | 1,029 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 39,049 | 38,820 |
Gross Unrealized Gains | 57 | 415 |
Gross Unrealized Losses | 88 | 0 |
Investment securities available for sale | 39,018 | 39,235 |
Preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,549 | 2,999 |
Gross Unrealized Gains | 8 | 153 |
Gross Unrealized Losses | 33 | 0 |
Investment securities available for sale | $ 3,524 | $ 3,152 |
Investment Securities - Summ72
Investment Securities - Summary Of Held-To-Maturity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 903 | $ 2,201 |
Gross Unrealized Gains | 56 | 107 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 959 | 2,308 |
Municipal securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 903 | 2,201 |
Gross Unrealized Gains | 56 | 107 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 959 | $ 2,308 |
Investment Securities - Schedu
Investment Securities - Schedule Of Gross Unrealized Losses On Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 173,912 | $ 165,688 |
More than 12 months, fair value | 136 | 0 |
Total, fair value | 174,048 | 165,688 |
Less than 12 months, unrealized losses | 977 | 544 |
More than 12 months, unrealized losses | 2 | 0 |
Total, unrealized losses | 979 | 544 |
U.S. Treasury and government sponsored entities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 146,433 | 165,004 |
More than 12 months, fair value | 36 | 0 |
Total, fair value | 146,469 | 165,004 |
Less than 12 months, unrealized losses | 829 | 539 |
More than 12 months, unrealized losses | 1 | 0 |
Total, unrealized losses | 830 | 539 |
Municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 4,454 | 567 |
More than 12 months, fair value | 0 | 0 |
Total, fair value | 4,454 | 567 |
Less than 12 months, unrealized losses | 18 | 4 |
More than 12 months, unrealized losses | 0 | 0 |
Total, unrealized losses | 18 | 4 |
U.S. Agency mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 637 | 117 |
More than 12 months, fair value | 100 | 0 |
Total, fair value | 737 | 117 |
Less than 12 months, unrealized losses | 9 | 1 |
More than 12 months, unrealized losses | 1 | 0 |
Total, unrealized losses | 10 | $ 1 |
Preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 2,514 | |
More than 12 months, fair value | 0 | |
Total, fair value | 2,514 | |
Less than 12 months, unrealized losses | 33 | |
More than 12 months, unrealized losses | 0 | |
Total, unrealized losses | 33 | |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 19,874 | |
More than 12 months, fair value | ||
Total, fair value | $ 19,874 | |
Less than 12 months, unrealized losses | $ 88 | |
More than 12 months, unrealized losses | ||
Total, unrealized losses | $ 88 |
Investment Securities - Sche74
Investment Securities - Schedule Of Amortized Cost And Fair Value By Contractual Maturity Of Available-For-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 291,759 | $ 281,310 |
U.S. Treasury and government sponsored entities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Within 1 year, amortized cost | 14,995 | |
1-5 years, amortized cost | 223,121 | |
Amortized Cost | 238,116 | 226,624 |
Within 1 year, fair value | 15,006 | |
1-5 years, fair value | 222,430 | |
Total securities available for sale, fair value | $ 237,436 | |
Within 1 year, weighted average yield | 0.86% | |
1-5 years, weighted average yield | 1.12% | |
Weighted average yield, total | 1.10% | |
U.S. Agency mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
1-5 years, amortized cost | $ 31 | |
5-10 years, amortized cost | 471 | |
Over 10 years, amortized cost | 316 | |
Amortized Cost | 818 | 1,024 |
1-5 years, fair value | 30 | |
5-10 years, fair value | 465 | |
Over 10 years, fair value | 314 | |
Total securities available for sale, fair value | $ 809 | |
1-5 years, weighted average yield | 1.99% | |
5-10 years, weighted average yield | 2.94% | |
Over 10 years, weighted average yield | 2.82% | |
Weighted average yield, total | 2.86% | |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Within 1 year, amortized cost | $ 5,339 | |
1-5 years, amortized cost | 33,710 | |
Amortized Cost | 39,049 | 38,820 |
Within 1 year, fair value | 5,346 | |
1-5 years, fair value | 33,672 | |
Total securities available for sale, fair value | $ 39,018 | |
Within 1 year, weighted average yield | 1.30% | |
1-5 years, weighted average yield | 1.10% | |
Weighted average yield, total | 1.13% | |
Preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Over 10 years, amortized cost | $ 3,549 | |
Amortized Cost | 3,549 | $ 2,999 |
Over 10 years, fair value | 3,524 | |
Total securities available for sale, fair value | $ 3,524 | |
Over 10 years, weighted average yield | 6.72% | |
Weighted average yield, total | 6.72% |
Investment Securities - Sche75
Investment Securities - Schedule Of Amortized Cost And Fair Value By Contractual Maturity Of Debt Securities (Details) - Municipal securities $ in Thousands | Dec. 31, 2015USD ($) |
Schedule Of Debt Securities [Line Items] | |
Within 1 year, amortized cost | $ 1,140 |
1-5 years, amortized cost | 7,730 |
5-10 years, amortized cost | 2,260 |
Total debt securities, amortized cost | 11,130 |
Within 1 year, fair value | 1,144 |
1-5 years, fair value | 7,885 |
5-10 years, fair value | 2,256 |
Total debt securities, fair value | $ 11,285 |
Within 1 year, weighted average yield | 1.91% |
1-5 years, weighted average yield | 2.89% |
5-10 years, weighted average yield | 4.19% |
Weighted average yield, total | 3.05% |
Investment Securities - Sche76
Investment Securities - Schedule Of Available-For-Sale Securities Proceeds, Gains, And Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Marketable Securities [Abstract] | |||
Proceeds | $ 20,522 | $ 24,102 | $ 23,514 |
Gross Gains | 271 | 465 | 333 |
Gross Losses | $ 0 | $ 4 | $ 0 |
Investment Securities - Summ77
Investment Securities - Summary Of Interest Income On Available-For-Sale Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Total taxable interest income | $ 3,073 | $ 2,651 | $ 2,035 |
Total tax-exempt interest income | 320 | 391 | 568 |
Total interest income | 3,393 | 3,042 | 2,603 |
U.S. Treasury and government sponsored entities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total taxable interest income | 2,378 | 1,769 | 898 |
U.S. Agency Mortgage-backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total taxable interest income | 25 | 25 | 1 |
Other | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total taxable interest income | 670 | 857 | 1,136 |
Municipal securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total tax-exempt interest income | $ 320 | $ 391 | $ 568 |
Loans and Credit Quality - Nar
Loans and Credit Quality - Narrative (Details) | Apr. 01, 2014USD ($)purchased_loan | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans secured by real estate | 76.00% | |||
Loans unsecured | 3.00% | |||
Loans secured for general commercial uses | 21.00% | |||
Net nonaccrual loans | $ 2,125,000 | $ 3,496,000 | ||
Interest income earned on nonaccrual loans | 276,000 | 218,000 | $ 188,000 | |
Interest income earned on nonaccrual loans with no balance | 484,000 | 350,000 | 250,000 | |
Greater than 90 days still accruing | 0 | 0 | ||
Recorded investment in loans considered to be impaired | 34,640,000 | 11,297,000 | ||
Impaired loan, average recorded investment | 25,997,000 | 10,533,000 | 10,900,000 | |
Impaired loan, interest income on accrual method | 1,140,000 | 762,000 | 461,000 | |
Fair value of purchased credit impaired loans | $ 3,900,000 | 1,600,000 | 3,000,000 | |
Loans classified as troubled debt restructuring | 13,740,000 | 7,700,000 | ||
Commitment to Lend | 0 | |||
Write down on TDR | 304,000 | 0 | ||
TDR with specific impairment | 0 | 0 | ||
TDR that subsequently defaulted, recorded investment | 0 | 0 | $ 0 | |
Loans pledged as collateral | 0 | 0 | ||
Unfunded loan commitments | $ 0 | $ 0 | ||
Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Recovery time for market | 18 years | |||
Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Recovery time for market | 24 years | |||
Alaska Pacific Bank | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Fair value of purchased credit impaired loans | $ 3,899,000 | |||
Purchased impaired loans | purchased_loan | 18 | |||
Accretable difference on purchased loans | $ 0 |
Loans and Credit Quality - Loa
Loans and Credit Quality - Loan Portfolio Segmented By Risk Class (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | $ 985,399 | $ 929,055 |
Less: unearned origination fee, net of origination costs | (4,612) | (4,551) |
Total loans | 980,787 | 924,504 |
Asset Quality Rating - Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 951,901 | 901,911 |
Asset Quality Rating - Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 808 | 20,012 |
Asset Quality Rating - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 32,690 | 7,132 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 329,534 | 306,543 |
Commercial | Asset Quality Rating - Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 313,689 | 291,020 |
Commercial | Asset Quality Rating - Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 536 | 11,618 |
Commercial | Asset Quality Rating - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 15,309 | 3,905 |
Real Estate Construction One-To- Four Family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 44,488 | 34,842 |
Real Estate Construction One-To- Four Family | Asset Quality Rating - Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 44,488 | 34,651 |
Real Estate Construction One-To- Four Family | Asset Quality Rating - Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 0 | 0 |
Real Estate Construction One-To- Four Family | Asset Quality Rating - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 0 | 191 |
Real Estate Construction Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 74,931 | 91,195 |
Real Estate Construction Other | Asset Quality Rating - Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 74,931 | 91,195 |
Real Estate Construction Other | Asset Quality Rating - Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 0 | 0 |
Real Estate Construction Other | Asset Quality Rating - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 0 | 0 |
Real Estate Term Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 128,763 | 109,472 |
Real Estate Term Owner Occupied | Asset Quality Rating - Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 112,248 | 103,049 |
Real Estate Term Owner Occupied | Asset Quality Rating - Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 0 | 5,817 |
Real Estate Term Owner Occupied | Asset Quality Rating - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 16,515 | 606 |
Real Estate Term Non-Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 314,069 | 286,616 |
Real Estate Term Non-Owner Occupied | Asset Quality Rating - Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 313,710 | 282,774 |
Real Estate Term Non-Owner Occupied | Asset Quality Rating - Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 0 | 2,095 |
Real Estate Term Non-Owner Occupied | Asset Quality Rating - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 359 | 1,747 |
Real Estate Term Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 38,029 | 36,894 |
Real Estate Term Other | Asset Quality Rating - Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 37,938 | 36,705 |
Real Estate Term Other | Asset Quality Rating - Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 91 | 39 |
Real Estate Term Other | Asset Quality Rating - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 0 | 150 |
Consumer Secured By 1st Deed Of Trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 26,673 | 32,000 |
Consumer Secured By 1st Deed Of Trust | Asset Quality Rating - Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 26,015 | 31,118 |
Consumer Secured By 1st Deed Of Trust | Asset Quality Rating - Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 171 | 396 |
Consumer Secured By 1st Deed Of Trust | Asset Quality Rating - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 487 | 486 |
Consumer Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 28,912 | 31,493 |
Consumer Other | Asset Quality Rating - Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 28,882 | 31,399 |
Consumer Other | Asset Quality Rating - Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 10 | 47 |
Consumer Other | Asset Quality Rating - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | $ 20 | $ 47 |
Loans and Credit Quality - Non
Loans and Credit Quality - Nonaccrual Loans By Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | $ 3,686 | $ 4,674 |
Government guarantees on nonperforming loans | (1,561) | (1,178) |
Net nonaccrual loans | 2,125 | 3,496 |
Commercial | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 3,013 | 2,031 |
Real Estate Construction One-To- Four Family | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 0 | 191 |
Real Estate Term Owner Occupied | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 38 | 135 |
Real Estate Term Non-Owner Occupied | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 359 | 1,746 |
Real Estate Term Other | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 0 | 39 |
Consumer Secured By 1st Deed Of Trust | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 256 | 485 |
Consumer Other | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | $ 20 | $ 47 |
Loans and Credit Quality - Pas
Loans and Credit Quality - Past Due Loans And Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | $ 4,836 | $ 5,955 |
Greater than 90 days still accruing | 0 | 0 |
Nonaccrual loans | 3,686 | 4,674 |
Total current, subtotal | 980,563 | 923,100 |
Total financing receivables | 985,399 | 929,055 |
Less: unearned origination fee, net of origination costs | (4,612) | (4,551) |
Total loans | 980,787 | 924,504 |
Asset Quality Rating - Pass | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 601 | 1,241 |
Greater than 90 days still accruing | 0 | 0 |
Nonaccrual loans | 0 | 0 |
Total current, subtotal | 951,300 | 900,670 |
Total financing receivables | 951,901 | 901,911 |
Asset Quality Rating - Special Mention | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 312 | 0 |
Greater than 90 days still accruing | 0 | 0 |
Nonaccrual loans | 0 | 0 |
Total current, subtotal | 496 | 20,012 |
Total financing receivables | 808 | 20,012 |
Asset Quality Rating - Substandard | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 3,923 | 4,714 |
Greater than 90 days still accruing | 0 | 0 |
Nonaccrual loans | 3,686 | 4,674 |
Total current, subtotal | 28,767 | 2,418 |
Total financing receivables | 32,690 | 7,132 |
30-59 Days Past Due Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 1,129 | 736 |
30-59 Days Past Due Still Accruing | Asset Quality Rating - Pass | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 601 | 696 |
30-59 Days Past Due Still Accruing | Asset Quality Rating - Special Mention | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 312 | 0 |
30-59 Days Past Due Still Accruing | Asset Quality Rating - Substandard | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 216 | 40 |
60-89 Days Past Due Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 21 | 545 |
60-89 Days Past Due Still Accruing | Asset Quality Rating - Pass | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 545 |
60-89 Days Past Due Still Accruing | Asset Quality Rating - Special Mention | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
60-89 Days Past Due Still Accruing | Asset Quality Rating - Substandard | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | $ 21 | $ 0 |
Loans and Credit Quality - Imp
Loans and Credit Quality - Impaired Loans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | $ 33,579,000 | $ 10,491,000 | |
Impaired loan, no related allowance, unpaid principal balance | 33,992,000 | 10,549,000 | |
Impaired loan, related allowance, recorded investment | 1,061,000 | 806,000 | |
Impaired loan, related allowance, unpaid principal balance | 1,061,000 | 806,000 | |
Related allowance | 344,000 | 75,000 | |
Recorded investment | 34,640,000 | 11,297,000 | |
Unpaid principal balance | 35,053,000 | 11,355,000 | |
Impaired loan, no related allowance, average recorded investment | 24,249,000 | 9,956,000 | |
Impaired loan, no related allowance, interest income on accrual method | 1,140,000 | 756,000 | |
Impaired loan, related allowance, average recorded investment | 1,748,000 | 577,000 | |
Impaired loan, related allowance, interest income on accrual method | 0 | 6,000 | |
Impaired loan, average recorded investment | 25,997,000 | 10,533,000 | $ 10,900,000 |
Impaired loan, interest income on accrual method | 1,140,000 | 762,000 | $ 461,000 |
Commercial | Asset Quality Rating - Pass | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, average recorded investment | 0 | 97,000 | |
Impaired loan, no related allowance, interest income on accrual method | 0 | 2,000 | |
Impaired loan, average recorded investment | 0 | 97,000 | |
Impaired loan, interest income on accrual method | 0 | 2,000 | |
Commercial | Asset Quality Rating - Special Mention | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 157,000 | 170,000 | |
Impaired loan, no related allowance, unpaid principal balance | 157,000 | 170,000 | |
Related allowance | 0 | 0 | |
Recorded investment | 157,000 | 170,000 | |
Unpaid principal balance | 157,000 | 170,000 | |
Impaired loan, no related allowance, average recorded investment | 163,000 | 254,000 | |
Impaired loan, no related allowance, interest income on accrual method | 13,000 | 23,000 | |
Impaired loan, related allowance, average recorded investment | 0 | 46,000 | |
Impaired loan, related allowance, interest income on accrual method | 0 | 6,000 | |
Impaired loan, average recorded investment | 163,000 | 300,000 | |
Impaired loan, interest income on accrual method | 13,000 | 29,000 | |
Commercial | Asset Quality Rating - Substandard | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 14,030,000 | 3,000,000 | |
Impaired loan, no related allowance, unpaid principal balance | 14,443,000 | 3,045,000 | |
Impaired loan, related allowance, recorded investment | 1,061,000 | 806,000 | |
Impaired loan, related allowance, unpaid principal balance | 1,061,000 | 806,000 | |
Related allowance | 344,000 | 75,000 | |
Recorded investment | 15,091,000 | 3,806,000 | |
Unpaid principal balance | 15,504,000 | 3,851,000 | |
Impaired loan, no related allowance, average recorded investment | 10,738,000 | 1,912,000 | |
Impaired loan, no related allowance, interest income on accrual method | 421,000 | 94,000 | |
Impaired loan, related allowance, average recorded investment | 1,668,000 | 356,000 | |
Impaired loan, related allowance, interest income on accrual method | 0 | 0 | |
Impaired loan, average recorded investment | 12,406,000 | 2,268,000 | |
Impaired loan, interest income on accrual method | 421,000 | 94,000 | |
Real Estate Construction One-To- Four Family | Asset Quality Rating - Special Mention | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 191,000 | ||
Impaired loan, no related allowance, unpaid principal balance | 191,000 | ||
Related allowance | 0 | ||
Recorded investment | 191,000 | ||
Unpaid principal balance | 191,000 | ||
Impaired loan, no related allowance, average recorded investment | 0 | 175,000 | |
Impaired loan, no related allowance, interest income on accrual method | 0 | 11,000 | |
Impaired loan, average recorded investment | 0 | 175,000 | |
Impaired loan, interest income on accrual method | 0 | 11,000 | |
Real Estate Construction One-To- Four Family | Asset Quality Rating - Substandard | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, average recorded investment | 0 | 117,000 | |
Impaired loan, no related allowance, interest income on accrual method | 0 | 0 | |
Impaired loan, average recorded investment | 0 | 117,000 | |
Impaired loan, interest income on accrual method | 0 | 0 | |
Real Estate Construction Other | Asset Quality Rating - Pass | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 772,000 | ||
Impaired loan, no related allowance, unpaid principal balance | 772,000 | ||
Related allowance | 0 | ||
Recorded investment | 772,000 | ||
Unpaid principal balance | 772,000 | ||
Impaired loan, no related allowance, average recorded investment | 557,000 | 196,000 | |
Impaired loan, no related allowance, interest income on accrual method | 72,000 | 30,000 | |
Impaired loan, average recorded investment | 557,000 | 196,000 | |
Impaired loan, interest income on accrual method | 72,000 | 30,000 | |
Real Estate Construction Other | Asset Quality Rating - Special Mention | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, average recorded investment | 0 | 605,000 | |
Impaired loan, no related allowance, interest income on accrual method | 0 | 101,000 | |
Impaired loan, average recorded investment | 0 | 605,000 | |
Impaired loan, interest income on accrual method | 0 | 101,000 | |
Real Estate Construction Other | Asset Quality Rating - Substandard | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, average recorded investment | 1,431,000 | 0 | |
Impaired loan, no related allowance, interest income on accrual method | 0 | 0 | |
Impaired loan, average recorded investment | 1,431,000 | 0 | |
Impaired loan, interest income on accrual method | 0 | 0 | |
Real Estate Term Owner Occupied | Asset Quality Rating - Pass | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 753,000 | 501,000 | |
Impaired loan, no related allowance, unpaid principal balance | 753,000 | 501,000 | |
Related allowance | 0 | 0 | |
Recorded investment | 753,000 | 501,000 | |
Unpaid principal balance | 753,000 | 501,000 | |
Impaired loan, no related allowance, average recorded investment | 696,000 | 507,000 | |
Impaired loan, no related allowance, interest income on accrual method | 63,000 | 50,000 | |
Impaired loan, average recorded investment | 696,000 | 507,000 | |
Impaired loan, interest income on accrual method | 63,000 | 50,000 | |
Real Estate Term Owner Occupied | Asset Quality Rating - Special Mention | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 273,000 | ||
Impaired loan, no related allowance, unpaid principal balance | 273,000 | ||
Related allowance | 0 | ||
Recorded investment | 273,000 | ||
Unpaid principal balance | 273,000 | ||
Impaired loan, no related allowance, average recorded investment | 67,000 | 299,000 | |
Impaired loan, no related allowance, interest income on accrual method | 5,000 | 20,000 | |
Impaired loan, average recorded investment | 67,000 | 299,000 | |
Impaired loan, interest income on accrual method | 5,000 | 20,000 | |
Real Estate Term Owner Occupied | Asset Quality Rating - Substandard | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 16,476,000 | 558,000 | |
Impaired loan, no related allowance, unpaid principal balance | 16,476,000 | 558,000 | |
Related allowance | 0 | 0 | |
Recorded investment | 16,476,000 | 558,000 | |
Unpaid principal balance | 16,476,000 | 558,000 | |
Impaired loan, no related allowance, average recorded investment | 6,941,000 | 1,018,000 | |
Impaired loan, no related allowance, interest income on accrual method | 355,000 | 60,000 | |
Impaired loan, average recorded investment | 6,941,000 | 1,018,000 | |
Impaired loan, interest income on accrual method | 355,000 | 60,000 | |
Real Estate Term Non-Owner Occupied | Asset Quality Rating - Pass | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 473,000 | 549,000 | |
Impaired loan, no related allowance, unpaid principal balance | 473,000 | 549,000 | |
Related allowance | 0 | 0 | |
Recorded investment | 473,000 | 549,000 | |
Unpaid principal balance | 473,000 | 549,000 | |
Impaired loan, no related allowance, average recorded investment | 521,000 | 595,000 | |
Impaired loan, no related allowance, interest income on accrual method | 75,000 | 94,000 | |
Impaired loan, average recorded investment | 521,000 | 595,000 | |
Impaired loan, interest income on accrual method | 75,000 | 94,000 | |
Real Estate Term Non-Owner Occupied | Asset Quality Rating - Special Mention | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 2,088,000 | ||
Impaired loan, no related allowance, unpaid principal balance | 2,088,000 | ||
Related allowance | 0 | ||
Recorded investment | 2,088,000 | ||
Unpaid principal balance | 2,088,000 | ||
Impaired loan, no related allowance, average recorded investment | 1,080,000 | 2,360,000 | |
Impaired loan, no related allowance, interest income on accrual method | 97,000 | 253,000 | |
Impaired loan, average recorded investment | 1,080,000 | 2,360,000 | |
Impaired loan, interest income on accrual method | 97,000 | 253,000 | |
Real Estate Term Non-Owner Occupied | Asset Quality Rating - Substandard | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 352,000 | 1,709,000 | |
Impaired loan, no related allowance, unpaid principal balance | 352,000 | 1,709,000 | |
Related allowance | 0 | 0 | |
Recorded investment | 352,000 | 1,709,000 | |
Unpaid principal balance | 352,000 | 1,709,000 | |
Impaired loan, no related allowance, average recorded investment | 1,141,000 | 1,229,000 | |
Impaired loan, no related allowance, interest income on accrual method | 0 | 0 | |
Impaired loan, average recorded investment | 1,141,000 | 1,229,000 | |
Impaired loan, interest income on accrual method | 0 | 0 | |
Real Estate Term Other | Asset Quality Rating - Pass | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 699,000 | ||
Impaired loan, no related allowance, unpaid principal balance | 699,000 | ||
Related allowance | 0 | ||
Recorded investment | 699,000 | ||
Unpaid principal balance | 699,000 | ||
Impaired loan, no related allowance, average recorded investment | 179,000 | 0 | |
Impaired loan, no related allowance, interest income on accrual method | 13,000 | 0 | |
Impaired loan, average recorded investment | 179,000 | 0 | |
Impaired loan, interest income on accrual method | 13,000 | 0 | |
Real Estate Term Other | Asset Quality Rating - Special Mention | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 91,000 | ||
Impaired loan, no related allowance, unpaid principal balance | 91,000 | ||
Related allowance | 0 | ||
Recorded investment | 91,000 | ||
Unpaid principal balance | 91,000 | ||
Impaired loan, no related allowance, average recorded investment | 68,000 | 0 | |
Impaired loan, no related allowance, interest income on accrual method | 6,000 | 0 | |
Impaired loan, average recorded investment | 68,000 | 0 | |
Impaired loan, interest income on accrual method | 6,000 | 0 | |
Real Estate Term Other | Asset Quality Rating - Substandard | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 150,000 | ||
Impaired loan, no related allowance, unpaid principal balance | 150,000 | ||
Related allowance | 0 | ||
Recorded investment | 150,000 | ||
Unpaid principal balance | 150,000 | ||
Impaired loan, no related allowance, average recorded investment | 74,000 | 152,000 | |
Impaired loan, no related allowance, interest income on accrual method | 7,000 | 14,000 | |
Impaired loan, related allowance, average recorded investment | 70,000 | 0 | |
Impaired loan, related allowance, interest income on accrual method | 0 | 0 | |
Impaired loan, average recorded investment | 144,000 | 152,000 | |
Impaired loan, interest income on accrual method | 7,000 | 14,000 | |
Consumer Secured By 1st Deed Of Trust | Asset Quality Rating - Pass | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 76,000 | 82,000 | |
Impaired loan, no related allowance, unpaid principal balance | 76,000 | 82,000 | |
Related allowance | 0 | 0 | |
Recorded investment | 76,000 | 82,000 | |
Unpaid principal balance | 76,000 | 82,000 | |
Impaired loan, no related allowance, average recorded investment | 79,000 | 85,000 | |
Impaired loan, no related allowance, interest income on accrual method | 4,000 | 4,000 | |
Impaired loan, average recorded investment | 79,000 | 85,000 | |
Impaired loan, interest income on accrual method | 4,000 | 4,000 | |
Consumer Secured By 1st Deed Of Trust | Asset Quality Rating - Special Mention | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 448,000 | ||
Impaired loan, no related allowance, unpaid principal balance | 461,000 | ||
Related allowance | 0 | 0 | |
Recorded investment | 472,000 | 448,000 | |
Unpaid principal balance | 472,000 | 461,000 | |
Consumer Secured By 1st Deed Of Trust | Asset Quality Rating - Substandard | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 472,000 | ||
Impaired loan, no related allowance, unpaid principal balance | 472,000 | ||
Impaired loan, no related allowance, average recorded investment | 514,000 | 326,000 | |
Impaired loan, no related allowance, interest income on accrual method | 9,000 | 0 | |
Impaired loan, related allowance, average recorded investment | 0 | 175,000 | |
Impaired loan, related allowance, interest income on accrual method | 0 | 0 | |
Impaired loan, average recorded investment | 514,000 | 501,000 | |
Impaired loan, interest income on accrual method | 9,000 | 0 | |
Consumer Other | Asset Quality Rating - Substandard | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, average recorded investment | 0 | 29,000 | |
Impaired loan, no related allowance, interest income on accrual method | 0 | 0 | |
Impaired loan, related allowance, average recorded investment | 10,000 | 0 | |
Impaired loan, related allowance, interest income on accrual method | 0 | 0 | |
Impaired loan, average recorded investment | 10,000 | 29,000 | |
Impaired loan, interest income on accrual method | $ 0 | $ 0 |
Loans and Credit Quality - Tro
Loans and Credit Quality - Troubled Debt Restructured Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructuring recorded investment | $ 10,178 | |
Existing troubled debt restructurings | 3,562 | |
Total modifications | 13,740 | $ 7,700 |
Commercial | Asset Quality Rating - Substandard | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructuring recorded investment | 10,178 | |
Accrual Status | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructuring recorded investment | 8,891 | |
Existing troubled debt restructurings | 2,914 | |
Total modifications | 11,805 | |
Accrual Status | Commercial | Asset Quality Rating - Substandard | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructuring recorded investment | 8,891 | |
Nonaccrual Status | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructuring recorded investment | 1,287 | |
Existing troubled debt restructurings | 648 | |
Total modifications | 1,935 | |
Nonaccrual Status | Commercial | Asset Quality Rating - Substandard | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructuring recorded investment | $ 1,287 |
Loans and Credit Quality - New
Loans and Credit Quality - Newly Restructured Loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)Contract | |
Financing Receivable, Modifications [Line Items] | |
Pre-modification, number of contracts | Contract | 6 |
Pre-modification, total modification | $ 10,064 |
Post-modification, number of contracts | Contract | 6 |
Post-modification, total modification | $ 10,178 |
Commercial | Asset Quality Rating - Substandard | |
Financing Receivable, Modifications [Line Items] | |
Pre-modification, number of contracts | Contract | 6 |
Pre-modification, total modification | $ 10,064 |
Post-modification, number of contracts | Contract | 6 |
Post-modification, total modification | $ 10,178 |
Contractual Interest Rate Reduction [Member] | |
Financing Receivable, Modifications [Line Items] | |
Pre-modification, total modification | 0 |
Post-modification, total modification | 0 |
Contractual Interest Rate Reduction [Member] | Commercial | Asset Quality Rating - Substandard | |
Financing Receivable, Modifications [Line Items] | |
Pre-modification, total modification | 0 |
Post-modification, total modification | 0 |
Extended Maturity [Member] | |
Financing Receivable, Modifications [Line Items] | |
Pre-modification, total modification | 8,891 |
Post-modification, total modification | 8,891 |
Extended Maturity [Member] | Commercial | Asset Quality Rating - Substandard | |
Financing Receivable, Modifications [Line Items] | |
Pre-modification, total modification | 8,891 |
Post-modification, total modification | 8,891 |
Payment Deferral [Member] | |
Financing Receivable, Modifications [Line Items] | |
Pre-modification, total modification | 0 |
Post-modification, total modification | 0 |
Payment Deferral [Member] | Commercial | Asset Quality Rating - Substandard | |
Financing Receivable, Modifications [Line Items] | |
Pre-modification, total modification | 0 |
Post-modification, total modification | 0 |
Combination Modification [Member] | |
Financing Receivable, Modifications [Line Items] | |
Pre-modification, total modification | 1,173 |
Post-modification, total modification | 1,287 |
Combination Modification [Member] | Commercial | Asset Quality Rating - Substandard | |
Financing Receivable, Modifications [Line Items] | |
Pre-modification, total modification | 1,173 |
Post-modification, total modification | $ 1,287 |
Loans and Credit Quality - Ana
Loans and Credit Quality - Analysis Of Loan Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance, beginning of the year | $ 2,262 | $ 2,336 |
Loans made | 0 | 0 |
Repayments | 2,145 | 74 |
Balance, end of year | $ 117 | $ 2,262 |
Allowance For Loan Losses - Al
Allowance For Loan Losses - Allowance For Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | $ 16,723 | $ 16,282 | $ 16,408 |
Charge-Offs | (826) | (625) | (1,196) |
Recoveries | 502 | 1,702 | 1,705 |
Provision (benefit) | 1,754 | (636) | (635) |
Balance, end of period | 18,153 | 16,723 | 16,282 |
Individually evaluated for impairment | 344 | 75 | 11 |
Collectively evaluated for impairment | 17,809 | 16,648 | 16,271 |
Commercial | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | 5,643 | 5,779 | 6,308 |
Charge-Offs | (616) | (319) | (1,018) |
Recoveries | 379 | 1,041 | 1,049 |
Provision (benefit) | 500 | (858) | (560) |
Balance, end of period | 5,906 | 5,643 | 5,779 |
Individually evaluated for impairment | 344 | 75 | 0 |
Collectively evaluated for impairment | 5,562 | 5,568 | 5,779 |
Real Estate Construction One-To- Four Family | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | 644 | 557 | 1,029 |
Charge-Offs | 0 | 0 | 0 |
Recoveries | 0 | 625 | 77 |
Provision (benefit) | 210 | (538) | (549) |
Balance, end of period | 854 | 644 | 557 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 854 | 644 | 557 |
Real Estate Construction Other | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | 1,653 | 539 | 326 |
Charge-Offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 79 |
Provision (benefit) | (214) | 1,114 | 134 |
Balance, end of period | 1,439 | 1,653 | 539 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 1,439 | 1,653 | 539 |
Real Estate Term Owner Occupied | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | 1,580 | 1,583 | 1,441 |
Charge-Offs | 0 | (160) | 0 |
Recoveries | 0 | 0 | 0 |
Provision (benefit) | 77 | 157 | 142 |
Balance, end of period | 1,657 | 1,580 | 1,583 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 1,657 | 1,580 | 1,583 |
Real Estate Term Non-Owner Occupied | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | 4,704 | 4,297 | 4,065 |
Charge-Offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 488 |
Provision (benefit) | 811 | 407 | (256) |
Balance, end of period | 5,515 | 4,704 | 4,297 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 5,515 | 4,704 | 4,297 |
Real Estate Term Other | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | 656 | 537 | 539 |
Charge-Offs | (81) | 0 | 0 |
Recoveries | 107 | 0 | 0 |
Provision (benefit) | (54) | 119 | (2) |
Balance, end of period | 628 | 656 | 537 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 628 | 656 | 537 |
Consumer Secured By 1st Deed Of Trust | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | 285 | 322 | 344 |
Charge-Offs | (28) | (59) | (14) |
Recoveries | 3 | 4 | 0 |
Provision (benefit) | 4 | 18 | (8) |
Balance, end of period | 264 | 285 | 322 |
Individually evaluated for impairment | 0 | 0 | 11 |
Collectively evaluated for impairment | 264 | 285 | 311 |
Consumer Other | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | 410 | 390 | 388 |
Charge-Offs | (101) | (87) | (164) |
Recoveries | 13 | 32 | 12 |
Provision (benefit) | 75 | 75 | 154 |
Balance, end of period | 397 | 410 | 390 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 397 | 410 | 390 |
Unallocated | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | 1,148 | 2,278 | 1,968 |
Charge-Offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision (benefit) | 345 | (1,130) | 310 |
Balance, end of period | 1,493 | 1,148 | 2,278 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | $ 1,493 | $ 1,148 | $ 2,278 |
Allowance For Loan Losses - Re
Allowance For Loan Losses - Recorded Investment Segregated By Amounts Individually Or Collectively In Allowance For Loan Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total financing receivables | $ 985,399 | $ 929,055 |
Individually evaluated for impairment | 34,640 | 11,297 |
Collectively evaluated for impairment | 950,759 | 917,758 |
Commercial | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total financing receivables | 329,534 | 306,543 |
Individually evaluated for impairment | 15,248 | 3,976 |
Collectively evaluated for impairment | 314,286 | 302,567 |
Real Estate Construction One-To- Four Family | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total financing receivables | 44,488 | 34,842 |
Individually evaluated for impairment | 0 | 191 |
Collectively evaluated for impairment | 44,488 | 34,651 |
Real Estate Construction Other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total financing receivables | 74,931 | 91,195 |
Individually evaluated for impairment | 0 | 772 |
Collectively evaluated for impairment | 74,931 | 90,423 |
Real Estate Term Owner Occupied | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total financing receivables | 128,763 | 109,472 |
Individually evaluated for impairment | 17,229 | 1,332 |
Collectively evaluated for impairment | 111,534 | 108,140 |
Real Estate Term Non-Owner Occupied | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total financing receivables | 314,069 | 286,616 |
Individually evaluated for impairment | 825 | 4,346 |
Collectively evaluated for impairment | 313,244 | 282,270 |
Real Estate Term Other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total financing receivables | 38,029 | 36,894 |
Individually evaluated for impairment | 790 | 150 |
Collectively evaluated for impairment | 37,239 | 36,744 |
Consumer Secured By 1st Deed Of Trust | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total financing receivables | 26,673 | 32,000 |
Individually evaluated for impairment | 548 | 530 |
Collectively evaluated for impairment | 26,125 | 31,470 |
Consumer Other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total financing receivables | 28,912 | 31,493 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | $ 28,912 | $ 31,493 |
Allowance For Loan Losses - Ba
Allowance For Loan Losses - Balance Of The Allowance Segregated By Segment And Class (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | $ 344 | $ 75 | $ 11 | |
Collectively evaluated for impairment | 17,809 | 16,648 | 16,271 | |
Total | 18,153 | 16,723 | 16,282 | $ 16,408 |
Asset Quality Rating - Pass | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 16,290 | 14,643 | ||
Asset Quality Rating - Special Mention | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 18 | 832 | ||
Asset Quality Rating - Substandard | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 344 | 75 | ||
Collectively evaluated for impairment | 8 | 25 | ||
Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 1,493 | 1,148 | ||
Commercial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 344 | 75 | 0 | |
Collectively evaluated for impairment | 5,562 | 5,568 | 5,779 | |
Total | 5,906 | 5,643 | 5,779 | 6,308 |
Commercial | Asset Quality Rating - Pass | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 5,543 | 4,938 | ||
Commercial | Asset Quality Rating - Special Mention | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 11 | 621 | ||
Commercial | Asset Quality Rating - Substandard | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 344 | 75 | ||
Collectively evaluated for impairment | 8 | 9 | ||
Commercial | Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 0 | 0 | ||
Real Estate Construction One-To- Four Family | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | 0 | |
Collectively evaluated for impairment | 854 | 644 | 557 | |
Total | 854 | 644 | 557 | 1,029 |
Real Estate Construction One-To- Four Family | Asset Quality Rating - Pass | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 854 | 644 | ||
Real Estate Construction One-To- Four Family | Asset Quality Rating - Special Mention | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 0 | 0 | ||
Real Estate Construction One-To- Four Family | Asset Quality Rating - Substandard | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 0 | ||
Real Estate Construction One-To- Four Family | Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 0 | 0 | ||
Real Estate Construction Other | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | 0 | |
Collectively evaluated for impairment | 1,439 | 1,653 | 539 | |
Total | 1,439 | 1,653 | 539 | 326 |
Real Estate Construction Other | Asset Quality Rating - Pass | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 1,439 | 1,653 | ||
Real Estate Construction Other | Asset Quality Rating - Special Mention | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 0 | 0 | ||
Real Estate Construction Other | Asset Quality Rating - Substandard | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 0 | ||
Real Estate Construction Other | Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 0 | 0 | ||
Real Estate Term Owner Occupied | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | 0 | |
Collectively evaluated for impairment | 1,657 | 1,580 | 1,583 | |
Total | 1,657 | 1,580 | 1,583 | 1,441 |
Real Estate Term Owner Occupied | Asset Quality Rating - Pass | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 1,657 | 1,382 | ||
Real Estate Term Owner Occupied | Asset Quality Rating - Special Mention | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 0 | 198 | ||
Real Estate Term Owner Occupied | Asset Quality Rating - Substandard | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 0 | ||
Real Estate Term Owner Occupied | Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 0 | 0 | ||
Real Estate Term Non-Owner Occupied | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | 0 | |
Collectively evaluated for impairment | 5,515 | 4,704 | 4,297 | |
Total | 5,515 | 4,704 | 4,297 | 4,065 |
Real Estate Term Non-Owner Occupied | Asset Quality Rating - Pass | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 5,515 | 4,703 | ||
Real Estate Term Non-Owner Occupied | Asset Quality Rating - Special Mention | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 0 | 0 | ||
Real Estate Term Non-Owner Occupied | Asset Quality Rating - Substandard | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 1 | ||
Real Estate Term Non-Owner Occupied | Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 0 | 0 | ||
Real Estate Term Other | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | 0 | |
Collectively evaluated for impairment | 628 | 656 | 537 | |
Total | 628 | 656 | 537 | 539 |
Real Estate Term Other | Asset Quality Rating - Pass | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 624 | 651 | ||
Real Estate Term Other | Asset Quality Rating - Special Mention | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 4 | 5 | ||
Real Estate Term Other | Asset Quality Rating - Substandard | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 0 | ||
Real Estate Term Other | Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 0 | 0 | ||
Consumer Secured By 1st Deed Of Trust | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | 11 | |
Collectively evaluated for impairment | 264 | 285 | 311 | |
Total | 264 | 285 | 322 | 344 |
Consumer Secured By 1st Deed Of Trust | Asset Quality Rating - Pass | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 261 | 278 | ||
Consumer Secured By 1st Deed Of Trust | Asset Quality Rating - Special Mention | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 3 | 7 | ||
Consumer Secured By 1st Deed Of Trust | Asset Quality Rating - Substandard | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 0 | ||
Consumer Secured By 1st Deed Of Trust | Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 0 | 0 | ||
Consumer Other | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | 0 | |
Collectively evaluated for impairment | 397 | 410 | 390 | |
Total | 397 | 410 | 390 | 388 |
Consumer Other | Asset Quality Rating - Pass | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 397 | 394 | ||
Consumer Other | Asset Quality Rating - Special Mention | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 0 | 1 | ||
Consumer Other | Asset Quality Rating - Substandard | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 15 | ||
Consumer Other | Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 0 | 0 | ||
Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | 0 | |
Collectively evaluated for impairment | 1,493 | 1,148 | 2,278 | |
Total | 1,493 | 1,148 | $ 2,278 | $ 1,968 |
Unallocated | Asset Quality Rating - Pass | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 0 | 0 | ||
Unallocated | Asset Quality Rating - Special Mention | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 0 | 0 | ||
Unallocated | Asset Quality Rating - Substandard | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 0 | ||
Unallocated | Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | $ 1,493 | $ 1,148 |
Purchased Receivables - Summar
Purchased Receivables - Summary Of Components Of Net Purchased Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Purchased Receivables [Abstract] | |||
Purchased receivables | $ 13,507 | $ 15,543 | |
Reserve for purchased receivable losses | (181) | (289) | $ (273) |
Total | $ 13,326 | $ 15,254 |
Purchased Receivables - Summary
Purchased Receivables - Summary of Allowance for Loan Losses Purchased Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | $ 289 | $ 273 | |
Charge-offs | (826) | (625) | $ (1,196) |
Balance at end of year | 181 | 289 | $ 273 |
Purchased Receivable | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Charge-offs | 0 | (793) | |
Recoveries | 30 | 105 | |
Net recoveries (charge-offs) | 30 | (688) | |
Change in reserve for purchased receivables | $ (138) | $ 704 |
Purchased Receivables - Additio
Purchased Receivables - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)Segment | Dec. 31, 2014USD ($)loan | Dec. 31, 2013USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average holding of purchased receivables | 1 year | ||
Charge-offs | $ 826,000 | $ 625,000 | $ 1,196,000 |
Number of segments and classes of purchased receivables | Segment | 1 | ||
Purchased receivables past due | $ 4,836,000 | 5,955,000 | |
Total modifications | 13,740,000 | $ 7,700,000 | |
Number of full charge-off | loan | 1 | ||
Number of partial charge-off | loan | 1 | ||
Purchased Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Charge-offs | 0 | $ 793,000 | |
Purchased receivables past due | 0 | 0 | |
Total modifications | $ 0 | $ 0 | $ 0 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Real Estate Owned Expense [Line Items] | |||
OREO | $ 3,053 | $ 4,607 | |
OREO (income) expense, net rental income and gains on sale | 190 | (416) | $ (60) |
OREO operating expense | |||
Other Real Estate Owned Expense [Line Items] | |||
OREO (income) expense, net rental income and gains on sale | 224 | 174 | 142 |
Impairment on OREO | |||
Other Real Estate Owned Expense [Line Items] | |||
OREO (income) expense, net rental income and gains on sale | 361 | 56 | 112 |
Rental income on OREO | |||
Other Real Estate Owned Expense [Line Items] | |||
OREO (income) expense, net rental income and gains on sale | (80) | (3) | (26) |
Gains on sale of OREO | |||
Other Real Estate Owned Expense [Line Items] | |||
OREO (income) expense, net rental income and gains on sale | $ (315) | $ (643) | $ (288) |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Total premise and equipment | $ 62,497 | $ 55,812 | |
Accumulated depreciation and amortization | (22,280) | (20,169) | |
Total premise and equipment, net | 40,217 | 35,643 | |
Depreciation expense and amortization of leasehold improvements | 2,264 | 1,865 | $ 1,793 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total premise and equipment | 2,600 | 2,600 | |
Furniture And Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total premise and equipment | 12,641 | 11,363 | |
Tenant Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total premise and equipment | $ 8,023 | 8,019 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, useful life | 39 years | ||
Total premise and equipment | $ 39,233 | $ 33,830 | |
Minimum | Furniture And Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, useful life | 3 years | ||
Minimum | Tenant Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, useful life | 2 years | ||
Maximum | Furniture And Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, useful life | 7 years | ||
Maximum | Tenant Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, useful life | 15 years |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Director | General Contracting Services | |||
Related Party Transaction [Line Items] | |||
Related party transaction | $ 122 | $ 5,400 | $ 1,200 |
Mortgage Servicing Rights - Nar
Mortgage Servicing Rights - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Servicing Assets at Fair Value [Line Items] | ||
Balance of loans serviced for others | $ 263,000 | $ 228,600 |
Amounts held in escrow | 1,400 | 1,300 |
Other Noninterest Income | ||
Servicing Assets at Fair Value [Line Items] | ||
Mortgage servicing fees | $ 261 | $ 203 |
Mortgage Servicing Rights - Mor
Mortgage Servicing Rights - Mortgage Servicing Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Balance, beginning of period | $ 1,010 | |
Changes in fair value: | ||
Carrying value, December 31 | 1,654 | $ 1,010 |
Balance of loans serviced for others | $ 125,446 | $ 96,390 |
MSR as a percentage of serviced loans | 1.32% | 1.05% |
Mortgage servicing rights | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Balance, beginning of period | $ 1,010 | $ 0 |
Addition to servicing asset | 802 | 0 |
Changes in fair value: | ||
Due to changes in model inputs of assumptions | 29 | 0 |
Other | (187) | (160) |
Carrying value, December 31 | 1,654 | 1,010 |
Alaska Pacific Bank | Mortgage servicing rights | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Addition to servicing asset | $ 0 | $ 1,170 |
Mortgage Servicing Rights - Val
Mortgage Servicing Rights - Valuation Assumptions (Details) - Mortgage servicing rights | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Servicing Assets at Fair Value [Line Items] | ||
Constant prepayment rate | 10.54% | 11.59% |
Discount rate | 9.10% | 9.29% |
Goodwill and Intangible Asset98
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Oct. 31, 2007 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 01, 2014 | Apr. 01, 2014 | Dec. 31, 2005 | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Accumulated amortization for intangible assets | $ 6,700,000 | $ 6,500,000 | |||||
Goodwill recorded | 22,334,000 | 22,334,000 | |||||
Trade name intangible | 950,000 | 950,000 | |||||
Goodwill impairment | 0 | 0 | |||||
Intangible asset amortization expense | $ 258,000 | 289,000 | $ 228,000 | ||||
Northrim Benefits Group | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Equity interest percentage | 40.10% | ||||||
Alaska First | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill recorded | $ 1,800,000 | ||||||
CDI recorded | $ 1,300,000 | ||||||
Alaska Pacific Bank | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
CDI recorded | $ 623,000 | ||||||
RML | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill recorded | $ 14,800,000 | ||||||
Trade name intangible | $ 950,000 | ||||||
Customer Relationships | Northrim Benefits Group | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Finite-lived intangible assets | $ 1,100,000 | ||||||
Estimated useful life, years | 10 years | ||||||
Accumulated amortization for intangible assets | $ 1,100,000 | 1,100,000 | 943,000 | ||||
Core Deposits | Alaska First | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Estimated useful life, years | 10 years | ||||||
Accumulated amortization for intangible assets | 1,300,000 | 1,100,000 | $ 983,000 | ||||
Core Deposits | Alaska Pacific Bank | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Estimated useful life, years | 10 years | ||||||
Accumulated amortization for intangible assets | $ 190,000 | $ 85,000 |
Goodwill and Intangible Asset99
Goodwill and Intangible Assets - Intangible Assets And Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 22,334 | $ 22,334 |
Core deposit intangible | 492 | 663 |
Trade name intangible | 950 | 950 |
NBG customer relationships | 0 | 88 |
Intangible assets total | $ 23,776 | $ 24,035 |
Goodwill and Intangible Asse100
Goodwill and Intangible Assets - Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,016 | $ 135 |
2,017 | 100 |
2,018 | 71 |
2,019 | 59 |
2,020 | 48 |
Thereafter | 79 |
Total | $ 492 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | |||
Commitments to invest, amortization expense | $ 2,700 | $ 1,300 | $ 969 |
Remaining commitment to invest in low income housing partnership | $ 9,127 | ||
Pacific Wealth Advisors Llc | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity interest percentage | 24.00% | ||
HomeState Mortgage LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity interest percentage | 30.00% |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Investment in Low Income Housing Partnerships | $ 20,233 | $ 22,862 | |
Deferred taxes, net | 9,939 | 10,087 | $ 8,776 |
Bank owned life insurance | 5,887 | 7,375 | |
Investment in equity method investments | 4,573 | 4,767 | |
Accrued interest receivable | 3,620 | 3,373 | |
Prepaid expenses | 1,230 | 2,217 | |
Taxes receivable | 878 | 1,220 | |
Net amounts of assets and liabilities presented in the Statement of Financial Position | 1,514 | 841 | |
Other assets | 3,900 | 5,020 | |
Total | $ 51,774 | $ 57,762 |
Other Assets - Schedule of Inve
Other Assets - Schedule of Investing Commitment (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Other Commitments [Line Items] | |
Original commitment amount | $ 30,747 |
Less: life to date contributions | (21,620) |
Remaining commitment amount | $ 9,127 |
R4 - MVV | |
Other Commitments [Line Items] | |
Years over which tax credits are earned | 17 years |
Original commitment amount | $ 8,518 |
Less: life to date contributions | (824) |
Remaining commitment amount | $ 7,694 |
R4 - Coronado | |
Other Commitments [Line Items] | |
Years over which tax credits are earned | 17 years |
Original commitment amount | $ 10,729 |
Less: life to date contributions | (9,722) |
Remaining commitment amount | $ 1,007 |
WNC | |
Other Commitments [Line Items] | |
Years over which tax credits are earned | 16 years |
Original commitment amount | $ 2,500 |
Less: life to date contributions | (2,074) |
Remaining commitment amount | $ 426 |
USA 57 | |
Other Commitments [Line Items] | |
Years over which tax credits are earned | 15 years |
Original commitment amount | $ 3,000 |
Less: life to date contributions | (3,000) |
Remaining commitment amount | $ 0 |
Centerline XXXIII | |
Other Commitments [Line Items] | |
Years over which tax credits are earned | 18 years |
Original commitment amount | $ 3,000 |
Less: life to date contributions | (3,000) |
Remaining commitment amount | $ 0 |
Centerline XXII | |
Other Commitments [Line Items] | |
Years over which tax credits are earned | 18 years |
Original commitment amount | $ 3,000 |
Less: life to date contributions | (3,000) |
Remaining commitment amount | $ 0 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) | Dec. 31, 2015USD ($)bank | Dec. 31, 2014USD ($) |
Deposits [Line Items] | ||
Certificates of deposit | $ 136,666,000 | |
CD collateralized by FHLB letters of credit | 0 | $ 0 |
Securities pledged to collateralize certificates of deposit | 0 | 0 |
Deposits held for related parties | $ 3,400,000 | 5,400,000 |
CDARS | ||
Deposits [Line Items] | ||
Number of banks in, more than | bank | 3,000 | |
Percentage of coverage of certificates of deposit in CDARS | 100.00% | |
Certificates of deposit | $ 0 | $ 1,000,000 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities Of Certificates Of Deposit (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Deposits [Abstract] | |
2,016 | $ 87,312 |
2,017 | 39,535 |
2,018 | 7,664 |
2,019 | 987 |
2,020 | 900 |
Thereafter | 268 |
Total | $ 136,666 |
Deposits - Interest Expense on
Deposits - Interest Expense on Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deposits [Abstract] | |||
Notice of withdrawal | $ 63 | $ 59 | $ 54 |
Money market deposits | 404 | 388 | 338 |
Savings deposits | 470 | 511 | 485 |
Time deposits, $100,000 or more | 754 | 292 | 236 |
Time deposits, less than $100,000 | 248 | 169 | 128 |
Total deposits | $ 1,939 | $ 1,419 | $ 1,241 |
Borrowings - Narrative (Detail
Borrowings - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)borrower | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Debt Instrument [Line Items] | |||||||||||
Long-term FHLB advances | $ 2,100,000 | $ 2,200,000 | $ 2,100,000 | $ 2,200,000 | |||||||
Number of borrows matched to FHLB advance | borrower | 1 | ||||||||||
Term of FHLB advances | 18 years | ||||||||||
Repayment term of FHLB advance | 30 years | ||||||||||
Loans pledged as collateral | 0 | 0 | $ 0 | 0 | |||||||
FHLB discount window | 0 | 0 | 0 | 0 | |||||||
Interest paid, less than $1,000 | $ 2,833,000 | 2,087,000 | $ 2,035,000 | ||||||||
Alaska limit on borrowing, percent of total assets | 15.00% | ||||||||||
Alaska limit on borrowing, total assets | 224,900,000 | 217,400,000 | $ 224,900,000 | 217,400,000 | |||||||
Securities sold under agreements to repurchase | $ 31,420,000 | $ 19,843,000 | $ 31,420,000 | $ 19,843,000 | |||||||
Percentage paid on securities sold under agreements to repurchase | 0.10% | 0.08% | 0.10% | 0.08% | |||||||
Average balance outstanding | $ 23,700,000 | $ 20,100,000 | $ 23,700,000 | $ 20,100,000 | |||||||
Maximum amount outstanding at any month end | 37,100,000 | 22,400,000 | |||||||||
Interest expense on deposits, borrowings and junior subordinated debentures | $ 663,000 | $ 706,000 | $ 748,000 | $ 754,000 | $ 642,000 | $ 487,000 | $ 484,000 | $ 440,000 | $ 2,871,000 | $ 2,053,000 | $ 2,040,000 |
Weighted average interest rate | 2.52% | 3.51% | 2.52% | 3.51% | 5.13% | ||||||
Note Agreement With Federal Reserve Bank | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Loans pledged as collateral | $ 81,000,000 | $ 81,000,000 | |||||||||
Interest paid, less than $1,000 | 1,000 | $ 1,000 | |||||||||
Discount Window | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Loans pledged as collateral | 40,200,000 | 40,200,000 | |||||||||
FHLB and Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest expense on deposits, borrowings and junior subordinated debentures | 469,000 | 184,000 | $ 340,000 | ||||||||
Line of Credit | RML | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Current draw on line of credit | $ 0 | $ 24,100,000 | $ 0 | $ 24,100,000 | |||||||
Minimum interest rate | 2.875% | ||||||||||
Interest rate on line of credit at period end | 3.063% | 2.875% | 3.063% | 2.875% | |||||||
London Interbank Offered Rate (LIBOR) | Line of Credit | RML | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis plus LIBOR | 2.625% | ||||||||||
FHLB Of Seattle | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Ratio of line of credit to eligible assets | 35.00% | 35.00% | |||||||||
Line of credit | $ 189,500,000 | $ 189,500,000 | |||||||||
Ratio of line of credit to total assets | 13.00% | 13.00% | |||||||||
Ration of eligible assets to borrowing capacity | 35.00% | 35.00% | |||||||||
Additional borrowing capacity | $ 524,800,000 | $ 524,800,000 |
Borrowings - Future Principal
Borrowings - Future Principal Payments Required On The Company's Borrowings (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 31,466 |
2,017 | 48 |
2,018 | 50 |
2,019 | 52 |
2,020 | 54 |
Thereafter | 1,870 |
Total | $ 33,540 |
Junior Subordinated Debentures
Junior Subordinated Debentures (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2005 | May. 31, 2003 | |
Investment in unconsolidated trust | $ 51,774,000 | $ 57,762,000 | $ 51,774,000 | $ 57,762,000 | |||||||||
Junior subordinated debentures | 18,558,000 | 18,558,000 | 18,558,000 | 18,558,000 | |||||||||
Interest expense on deposits, borrowings and junior subordinated debentures | 663,000 | $ 706,000 | $ 748,000 | $ 754,000 | $ 642,000 | $ 487,000 | $ 484,000 | $ 440,000 | 2,871,000 | 2,053,000 | $ 2,040,000 | ||
Northrim Capital Trust 1 | |||||||||||||
Investment in unconsolidated trust | $ 8,000,000 | ||||||||||||
Junior subordinated debentures | $ 8,200,000 | $ 8,200,000 | |||||||||||
LIBOR period | 90 days | ||||||||||||
Basis plus LIBOR | 3.15% | ||||||||||||
Liquidation preference per capital security | $ 1,000 | $ 1,000 | |||||||||||
Interest rate | 3.51% | 3.51% | |||||||||||
Interest expense on deposits, borrowings and junior subordinated debentures | $ 289,000 | 274,000 | 278,000 | ||||||||||
Debt maturity date | May 15, 2033 | ||||||||||||
Date debentures are redeemable | May 15, 2008 | ||||||||||||
Northrim Capital Trust 2 | |||||||||||||
Investment in unconsolidated trust | $ 10,000,000 | ||||||||||||
Junior subordinated debentures | $ 10,300,000 | $ 10,300,000 | |||||||||||
LIBOR period | 90 days | ||||||||||||
Basis plus LIBOR | 1.37% | ||||||||||||
Liquidation preference per capital security | $ 1,000 | $ 1,000 | |||||||||||
Interest rate | 1.88% | 1.88% | |||||||||||
Interest expense on deposits, borrowings and junior subordinated debentures | $ 174,000 | $ 163,000 | $ 167,000 | ||||||||||
Debt maturity date | Mar. 15, 2036 | ||||||||||||
Date debentures are redeemable | Mar. 15, 2011 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)h | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Mandatory work hours per year | h | 1,000 | ||
Mandatory 401(k) match | $ 0.25 | ||
Maximum annual employer 401(k) contribution | 6.00% | ||
Amount expensed for 401(k) contributions | $ 759,000 | $ 774,000 | $ 673,000 |
Accrued liability for plan | 1,400,000 | 1,300,000 | |
Increase (decrease) in non-qualified deferred compensation plan | 99,000 | 140,000 | (99,000) |
Aggregate payout under profit sharing plan | 1,200,000 | 1,000,000 | 858,000 |
RML | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Amount expensed for 401(k) contributions | $ 172,000 | 12,000 | |
Term of service required | 3 months | ||
Age requirement | 21 years 6 months | ||
Supplemental Employee Retirement Plan | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Contributions to supplemental plan | $ 228,000 | 184,000 | $ 220,000 |
Accrued liability for plan | 2,500,000 | 2,500,000 | |
Supplemental Employee Retirement Plan | RML | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Contributions to supplemental plan | 692,000 | 87,000 | |
Accrued liability for plan | $ 2,900,000 | $ 4,400,000 | |
Vesting period | 10 years |
Commitments and Contingencies
Commitments and Contingencies - Narrative (Details) | Dec. 01, 2014USD ($) | Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rental expense under leases for equipment and premises | $ 2,800,000 | $ 1,300,000 | $ 667,000 | |
Rental income under leases | $ 447,000 | 260,000 | 108,000 | |
Limit on stop-loss insurance | 1 year | |||
Stop-loss insurance limit per covered individual per year | $ 140,000 | |||
Loss Contingencies [Line Items] | ||||
Change in fair value of RML earn-out liability | $ 4,094,000 | 0 | $ 0 | |
Loans repurchased in 2 year interval | loan | 4 | |||
Reserve for unfunded loan commitments and letters of credit | $ 114,000 | 112,000 | ||
Expenditure commitments due in 12 months | 606,000 | |||
RML | ||||
Loss Contingencies [Line Items] | ||||
Contingent consideration term | 5 years | |||
Liability for future earn out payments | $ 7,318,000 | 6,600,000 | $ 7,300,000 | |
Change in fair value of RML earn-out liability | 4,100,000 | |||
Loss Contingency Accrual, Payments | $ 4,900,000 |
Commitments and Contingencie112
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 2,575 |
2,017 | 2,181 |
2,018 | 2,030 |
2,019 | 2,008 |
2,020 | 1,589 |
Thereafter | 12,222 |
Total | $ 22,605 |
Commitments and Contingencies -
Commitments and Contingencies - Off-Balance Sheet Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments to extend credit | $ 222,387 | $ 219,349 |
Unfunded lending commitment | 71,280 | 39,567 |
Standby letters of credit | $ 6,399 | $ 6,004 |
Commitments and Contingencie114
Commitments and Contingencies - Schedule of Future Minimum Lease Rentals (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 405 |
2,017 | 408 |
2,018 | 392 |
2,019 | 399 |
2,020 | 406 |
Thereafter | 239 |
Total | $ 2,249 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)derivative_swap | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Derivatives, Fair Value [Line Items] | |||
Threshold for collateral requirements | $ 250,000 | ||
Collateral posted | 216,000 | $ 0 | |
Notional amount | $ 21,300,000 | 23,600,000 | |
Number of instruments | derivative_swap | 4 | ||
Banking fees and commissions | $ 0 | 0 | $ 180,000 |
Unfunded lending commitment | 71,280,000 | 39,567,000 | |
Variable to Fixed | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | $ 10,700,000 | ||
Number of instruments | derivative_swap | 2 | ||
Fixed to Variable | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | $ 10,700,000 | ||
Number of instruments | derivative_swap | 2 | ||
RML | |||
Derivatives, Fair Value [Line Items] | |||
Unfunded lending commitment | $ 71,300,000 | $ 39,600,000 |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Gross amounts of recognized assets and liabilities | $ 1,639 | $ 919 |
Gross amounts of recognized assets and liabilities | 216 | 158 |
Interest rate contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross amounts of recognized assets and liabilities | 125 | 78 |
Interest rate contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross amounts of recognized assets and liabilities | 216 | 158 |
Interest rate lock commitments | ||
Derivatives, Fair Value [Line Items] | ||
Gross amounts of recognized assets and liabilities | 1,514 | 841 |
Gross amounts of recognized assets and liabilities | 216 | |
Interest rate lock commitments | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross amounts of recognized assets and liabilities | $ 1,514 | $ 841 |
Derivatives - Schedule of De117
Derivatives - Schedule of Derivative Instrument Gain(Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||
Gain on derivative not designated as hedging | $ 204 | $ (133) |
Other Income | Interest rate contracts | ||
Derivative [Line Items] | ||
Gain on derivative not designated as hedging | (422) | (306) |
Other Income | Interest rate lock commitments | ||
Derivative [Line Items] | ||
Gain on derivative not designated as hedging | $ 626 | $ 173 |
Derivatives - Schedule of Offse
Derivatives - Schedule of Offsetting Asset and Liability Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Offsetting Liabilities [Line Items] | ||
Gross amounts of recognized assets and liabilities | $ 216 | $ 158 |
Offsetting Assets [Line Items] | ||
Gross amounts of recognized assets and liabilities | 1,639 | 919 |
Net amounts of assets and liabilities presented in the Statement of Financial Position | 1,514 | 841 |
Interest rate contracts | ||
Offsetting Liabilities [Line Items] | ||
Gross amounts of recognized assets and liabilities | 216 | 158 |
Gross amounts offset in the Statement of Financial Position | 0 | 0 |
Net amounts of assets and liabilities presented in the Statement of Financial Position | 216 | 158 |
Gross amounts not offset in the Statement of Financial Position Financial Instruments | 0 | 0 |
Gross amounts not offset in the Statement of Financial Position Collateral Posted | 216 | 0 |
Net Amount | 0 | 158 |
Offsetting Assets [Line Items] | ||
Gross amounts of recognized assets and liabilities | 125 | 78 |
Gross amounts offset in the Statement of Financial Position | 0 | 0 |
Net amounts of assets and liabilities presented in the Statement of Financial Position | 125 | 78 |
Gross amounts not offset in the Statement of Financial Position Financial Instruments | 0 | 0 |
Gross amounts not offset in the Statement of Financial Position Collateral Posted | 0 | 0 |
Net Amount | $ 125 | $ 78 |
Common Stock (Details)
Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 25, 2016 | Sep. 30, 2002 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Class of Stock [Line Items] | |||||
Dividends paid to shareholders | $ (5,117) | $ (4,750) | $ (4,215) | ||
Cash dividends paid (USD per share) | $ 0.74 | $ 0.70 | $ 0.64 | ||
Percentage of common stock authorized for repurchase | 5.00% | ||||
Remaining shares available under stock repurchase program (shares) | 227,242 | ||||
Shares repurchased (shares) | 0 | 0 | |||
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Cash dividends declared (USD per share) | $ 0.19 |
Stock Based Compensation - Nar
Stock Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of stock options outstanding or exercisable | $ 794 | $ 760 | $ 883 |
Stock-based compensation expense | 608 | 360 | 506 |
Stock Options And Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Proceeds from exercise of stock options | 370 | 897 | 165 |
Shares withheld for stock option exercises and related income taxes | 358 | 872 | 170 |
Stock-based compensation expense | 96 | 68 | 87 |
Unrecognized compensation expense | $ 346 | ||
Weighted-average period for recognition of expense | 2 years 6 months 3 days | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation options contractual term | 10 years | ||
Stock incentive plan vesting period, years | 3 years | ||
Total intrinsic value of stock options exercised | $ 82 | 224 | 92 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock incentive plan vesting period, years | 3 years | ||
Total intrinsic value of stock options exercised | $ 510 | 438 | 657 |
Stock-based compensation expense | 512 | $ 292 | $ 419 |
Unrecognized compensation expense | $ 1,200 | ||
Weighted-average period for recognition of expense | 2 years 2 months 1 day | ||
Prior Stock Option Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of authorized stock for stock incentive plan (shares) | 0 | ||
2014 Stock Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of authorized stock for stock incentive plan (shares) | 350,000 |
Stock Based Compensation - Ass
Stock Based Compensation - Assumptions Used To Determine Fair Value of Stock Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Grant date fair value (USD per share) | $ 7.01 | $ 6.73 | $ 5.59 |
Expected life of options | 8 years | 8 years | 8 years |
Risk-free interest rate | 2.17% | 2.21% | 2.30% |
Dividend yield rate | 2.64% | 2.64% | 2.90% |
Price volatility | 28.63% | 28.93% | 28.89% |
Stock Based Compensation - Sto
Stock Based Compensation - Stock Options Activity (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding at beginning of period (shares) | shares | 179,990 |
Granted (shares) | shares | 36,582 |
Forfeited (shares) | shares | (602) |
Exercised (shares) | shares | (16,223) |
Outstanding at end of period (shares) | shares | 199,747 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Outstanding at beginning of period (USD per share) | $ / shares | $ 21.83 |
Granted (USD per share) | $ / shares | 28.76 |
Forfeited (USD per share) | $ / shares | 22.30 |
Exercised (USD per share) | $ / shares | 22.80 |
Outstanding at end of period (USD per share) | $ / shares | $ 23.02 |
Weighted average remaining contractual life, outstanding at end of period | 3 years 332 days |
Stock Based Compensation - Res
Stock Based Compensation - Restricted Stock Unit Activity (Details) - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding at beginning of period (shares) | shares | 59,486 |
Granted (shares) | shares | 21,437 |
Vested (shares) | shares | (17,936) |
Forfeited (shares) | shares | 0 |
Outstanding at end of period (shares) | shares | 62,987 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding at beginning of period (USD per share) | $ / shares | $ 24.03 |
Granted (USD per share) | $ / shares | 28.76 |
Vested (USD per share) | $ / shares | 20.35 |
Forfeited (USD per share) | $ / shares | 0 |
Outstanding at end of period (USD per share) | $ / shares | $ 26.69 |
Weighted average remaining contractual life, Outstanding at end of period | 1 year 10 months 23 days |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2003 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Tier 1 common equity capital required for capital adequacy to risk based assets | 4.50% | ||
Tier I capital (to average assets), adequately-capitalized ratio | 4.00% | ||
Total capital (to risk-weighted assets), adequately-capitalized ratio | 8.00% | ||
Tier 1 capital (to risk-weighted assets), adequately capitalized ratio | 6.00% | ||
Tier 1 common equity (to risk-weighted assets), adequately capitalized ratio, conservation buffer | 2.50% | ||
Trust preferred securities offerings completed | $ 18,000 | $ 18,000 | $ 18,000 |
Northrim Bancorp, Inc. | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Tier 1 common equity capital required for capital adequacy to risk based assets | 4.50% | ||
Tier I capital (to average assets), adequately-capitalized ratio | 4.00% | 4.00% | |
Total capital (to risk-weighted assets), adequately-capitalized ratio | 8.00% | 8.00% | |
Tier 1 capital (to risk-weighted assets), adequately capitalized ratio | 6.00% | 4.00% | |
Tier 1 common equity (to risk-weighted assets), actual amount | $ 154,464 | ||
Tier 1 common equity (to risk-weighted assets), actual ratio | 12.01% | ||
Tier 1 common equity (to risk-weighted assets), adequately-capitalized amount | $ 57,876 | ||
Tier 1 common equity (to risk-weighted assets), well-capitalized amount | $ 83,598 | ||
Tier 1 common equity (to risk-weighted assets), well-capitalized ratio | 6.50% | ||
Total capital (to risk-weighted assets), actual amount | $ 187,761 | $ 175,256 | |
Total capital (to risk-weighted assets), actual ratio | 14.60% | 14.31% | |
Total capital (to risk-weighted assets), adequately-capitalized amount | $ 102,883 | $ 97,977 | |
Total capital (to risk-weighted assets), well-capitalized amount | $ 128,603 | $ 122,471 | |
Total capital (to risk-weighted assets), well-capitalized ratio | 10.00% | 10.00% | |
Tier 1 capital (to risk-weighted assets), actual amount | $ 171,653 | $ 159,925 | |
Tier 1 capital (to risk-weighted assets), actual ratio | 13.34% | 13.06% | |
Tier 1 capital (to risk-weighted assets), adequately-capitalized amount | $ 77,205 | $ 48,982 | |
Tier 1 capital (to risk-weighted assets), well-capitalized amount | $ 102,940 | $ 73,472 | |
Tier 1 capital (to risk-weighted assets), well-capitalized ratio | 8.00% | 6.00% | |
Tier I capital (to average assets), actual amount | $ 171,653 | $ 159,925 | |
Tier I capital (to average assets), actual ratio | 11.20% | 11.21% | |
Tier I capital (to average assets), adequately-capitalized amount | $ 61,305 | $ 57,065 | |
Tier I capital (to average assets), well-capitalized amount | $ 76,631 | $ 71,331 | |
Tier I capital (to average assets), well-capitalized ratio | 5.00% | 5.00% | |
Northrim Bank | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Tier 1 common equity capital required for capital adequacy to risk based assets | 4.50% | ||
Tier I capital (to average assets), adequately-capitalized ratio | 4.00% | 4.00% | |
Total capital (to risk-weighted assets), adequately-capitalized ratio | 8.00% | 8.00% | |
Tier 1 capital (to risk-weighted assets), adequately capitalized ratio | 6.00% | 4.00% | |
Tier 1 common equity (to risk-weighted assets), actual amount | $ 156,317 | ||
Tier 1 common equity (to risk-weighted assets), actual ratio | 12.21% | ||
Tier 1 common equity (to risk-weighted assets), adequately-capitalized amount | $ 57,611 | ||
Tier 1 common equity (to risk-weighted assets), well-capitalized amount | $ 83,215 | ||
Tier 1 common equity (to risk-weighted assets), well-capitalized ratio | 6.50% | ||
Total capital (to risk-weighted assets), actual amount | $ 171,662 | $ 162,125 | |
Total capital (to risk-weighted assets), actual ratio | 13.41% | 13.30% | |
Total capital (to risk-weighted assets), adequately-capitalized amount | $ 102,408 | $ 97,519 | |
Total capital (to risk-weighted assets), well-capitalized amount | $ 128,010 | $ 121,898 | |
Total capital (to risk-weighted assets), well-capitalized ratio | 10.00% | 10.00% | |
Tier 1 capital (to risk-weighted assets), actual amount | $ 155,630 | $ 146,869 | |
Tier 1 capital (to risk-weighted assets), actual ratio | 12.16% | 12.05% | |
Tier 1 capital (to risk-weighted assets), adequately-capitalized amount | $ 76,791 | $ 48,753 | |
Tier 1 capital (to risk-weighted assets), well-capitalized amount | $ 102,388 | $ 73,130 | |
Tier 1 capital (to risk-weighted assets), well-capitalized ratio | 8.00% | 6.00% | |
Tier I capital (to average assets), actual amount | $ 155,630 | $ 146,869 | |
Tier I capital (to average assets), actual ratio | 10.18% | 10.35% | |
Tier I capital (to average assets), adequately-capitalized amount | $ 61,151 | $ 56,761 | |
Tier I capital (to average assets), well-capitalized amount | $ 76,439 | $ 70,951 | |
Tier I capital (to average assets), well-capitalized ratio | 5.00% | 5.00% |
Income Taxes - Narrative (Deta
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Taxes receivable | $ 878,000 | $ 1,220,000 | |
Operating Loss Carryforwards [Line Items] | |||
Other assets | 51,774,000 | 57,762,000 | |
Tax credits related to low income housing partnerships | $ 2,446,000 | 1,298,000 | $ 955,000 |
Alaska film tax credits | $ 59,000 | ||
U.S. tax rate | 35.00% | 35.00% | 35.00% |
Retained earnings restricted to loss absorption | $ 1,800,000 | ||
Unrecognized tax benefits | 0 | ||
Penalties and interest expense | 0 | $ 0 | $ 0 |
Federal and State Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 178,000 | $ 1,400,000 |
Income Taxes - Components Of T
Income Taxes - Components Of The Provision For Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current Tax Expense (Benefit) | |||||||||||
Federal | $ 4,752 | $ 6,589 | $ 3,227 | ||||||||
State | 1,200 | 1,558 | 835 | ||||||||
Amortization of investment in low income housing tax credit partnerships | 2,684 | 1,337 | 969 | ||||||||
Total | 8,636 | 9,484 | 5,031 | ||||||||
Deferred Expense(Benefit) | |||||||||||
Federal | 127 | (1,117) | 1,034 | ||||||||
State | 21 | (194) | 181 | ||||||||
Amortization of investment in low income housing tax credit partnerships | 0 | 0 | 0 | ||||||||
Total | 148 | (1,311) | 1,215 | ||||||||
Total Expense | |||||||||||
Federal | 4,879 | 5,472 | 4,261 | ||||||||
State | 1,221 | 1,364 | 1,016 | ||||||||
Amortization of investment in low income housing tax credit partnerships | 2,684 | 1,337 | 969 | ||||||||
Total | $ 1,673 | $ 2,678 | $ 2,686 | $ 1,747 | $ 2,325 | $ 1,982 | $ 2,569 | $ 1,297 | $ 8,784 | $ 8,173 | $ 6,246 |
Income Taxes - Reconciliation
Income Taxes - Reconciliation Of Actual To Expected Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Computed “expected” income tax expense | $ 8,552 | $ 8,646 | $ 6,192 | ||||||||
State income taxes, net | 794 | 886 | 660 | ||||||||
Non-deductible merger expenses | 0 | 130 | 0 | ||||||||
Tax-exempt interest on investment securities | (507) | (415) | (461) | ||||||||
Tax-exempt gain on purchase of mortgage affiliate | 0 | (1,050) | 0 | ||||||||
Amortization of investment in low income housing tax credit partnerships | 2,684 | 1,337 | 969 | ||||||||
Low income housing credits | (2,446) | (1,298) | (955) | ||||||||
Other | (293) | (63) | (159) | ||||||||
Total | $ 1,673 | $ 2,678 | $ 2,686 | $ 1,747 | $ 2,325 | $ 1,982 | $ 2,569 | $ 1,297 | $ 8,784 | $ 8,173 | $ 6,246 |
Income Taxes - Components O128
Income Taxes - Components Of The Net Deferred Tax Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred Tax Asset: | |||
Allowance for loan losses | $ 7,082 | $ 5,900 | $ 6,543 |
Loan fees, net of costs | 1,896 | 1,871 | 1,653 |
Depreciation and amortization | (64) | (60) | 446 |
Other real estate owned | 46 | 50 | 174 |
Deferred compensation | 2,005 | 1,691 | 1,665 |
Net operating loss carryforwards | 73 | 589 | 0 |
Equity compensation | 578 | 502 | 507 |
Loan discount | 476 | 1,003 | 0 |
Fair market value adjustment on certificates of deposit | 283 | 321 | 0 |
Other | 1,380 | 1,636 | 1,122 |
Total Deferred Tax Asset | 13,755 | 13,503 | 12,110 |
Deferred Tax Liability: | |||
Unrealized gain on available-for-sale investment securities | 235 | (173) | (451) |
Intangible amortization | (2,494) | (2,206) | (1,949) |
Mortgage servicing rights | (415) | 0 | 0 |
FHLB stock repurchase and dividends | (686) | (306) | (348) |
Other | (456) | (731) | (586) |
Total Deferred Tax Liability | (3,816) | (3,416) | (3,334) |
Net Deferred Tax Asset | $ 9,939 | $ 10,087 | $ 8,776 |
Fair Value Measurements - Sche
Fair Value Measurements - Schedule Of Estimated Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | $ 1,639 | $ 919 |
Purchased receivables, net | 13,326 | 15,254 |
Mortgage servicing rights | 1,654 | 1,010 |
Derivative liability | 216 | 158 |
Commitments to extend credit | 222,387 | 219,349 |
Standby letters of credit | 6,399 | 6,004 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commitments to extend credit | 222,387 | 219,349 |
Standby letters of credit | 6,399 | 6,004 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commitments to extend credit | 2,224 | 2,193 |
Standby letters of credit | 64 | 60 |
Level 1 inputs: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage servicing rights | 0 | 0 |
Level 1 inputs: | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash, due from banks and deposits in other banks | 58,673 | 72,056 |
Investment securities | 43,033 | 45,570 |
Level 1 inputs: | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash, due from banks and deposits in other banks | 58,673 | 72,056 |
Investment securities | 43,033 | 45,570 |
Level 2 inputs: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage servicing rights | 0 | 0 |
Level 2 inputs: | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | 248,983 | 238,361 |
Investment in Federal Home Loan Bank Stock | 1,816 | 3,404 |
Accrued interest receivable | 3,620 | 3,373 |
Deposits | 1,240,792 | 1,179,747 |
Securities sold under repurchase agreements | 31,420 | 19,843 |
Borrowings | 2,120 | 26,304 |
Accrued interest payable | 56 | 18 |
Level 2 inputs: | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | 249,039 | 241,872 |
Investment in Federal Home Loan Bank Stock | 1,816 | 3,404 |
Accrued interest receivable | 3,620 | 3,373 |
Deposits | 1,240,223 | 1,180,136 |
Securities sold under repurchase agreements | 31,420 | 19,843 |
Borrowings | 2,101 | 26,485 |
Accrued interest payable | 56 | 18 |
Level 3 inputs: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage servicing rights | 1,654 | 1,010 |
Level 3 inputs: | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans and loans held for sale | 1,031,340 | 968,370 |
Purchased receivables, net | 13,326 | 15,254 |
Mortgage servicing rights | 1,654 | 1,010 |
Junior subordinated debentures | 18,558 | 18,558 |
Level 3 inputs: | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans and loans held for sale | 1,033,551 | 974,366 |
Purchased receivables, net | 13,326 | 15,254 |
Mortgage servicing rights | 1,654 | 1,010 |
Junior subordinated debentures | 17,433 | 17,239 |
Interest rate contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 125 | 78 |
Derivative liability | 216 | 158 |
Interest rate contracts | Level 1 inputs: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | |
Interest rate contracts | Level 2 inputs: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 125 | 78 |
Derivative liability | 158 | |
Interest rate contracts | Level 2 inputs: | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 125 | 78 |
Derivative liability | 216 | 158 |
Interest rate contracts | Level 2 inputs: | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 125 | 78 |
Derivative liability | 216 | 158 |
Interest rate contracts | Level 3 inputs: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | |
Interest rate lock commitments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 1,514 | 841 |
Derivative liability | 216 | |
Interest rate lock commitments | Level 1 inputs: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | |
Interest rate lock commitments | Level 2 inputs: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 216 | |
Interest rate lock commitments | Level 3 inputs: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 1,514 | 841 |
Derivative liability | 0 | |
Interest rate lock commitments | Level 3 inputs: | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 1,514 | 841 |
Interest rate lock commitments | Level 3 inputs: | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | $ 1,514 | $ 841 |
Fair Value Measurements - S130
Fair Value Measurements - Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | $ 291,113 | $ 281,730 |
Derivative asset | 1,639 | 919 |
Mortgage servicing rights | 1,654 | 1,010 |
Total other assets | 3,293 | 1,929 |
Derivative liability | 216 | 158 |
Level 1 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 43,033 | 45,570 |
Mortgage servicing rights | 0 | 0 |
Total other assets | 0 | 0 |
Level 2 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 248,080 | 236,160 |
Mortgage servicing rights | 0 | 0 |
Total other assets | 125 | 78 |
Level 3 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Mortgage servicing rights | 1,654 | 1,010 |
Total other assets | 3,168 | 1,851 |
U.S. Treasury and government sponsored entities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 237,436 | 226,190 |
U.S. Treasury and government sponsored entities | Level 1 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 35,008 | 15,545 |
U.S. Treasury and government sponsored entities | Level 2 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 202,428 | 210,645 |
U.S. Treasury and government sponsored entities | Level 3 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 10,326 | 12,124 |
Municipal securities | Level 1 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Municipal securities | Level 2 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 10,326 | 12,124 |
Municipal securities | Level 3 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 0 | 0 |
U.S. Agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 809 | 1,029 |
U.S. Agency mortgage-backed securities | Level 1 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 0 | 0 |
U.S. Agency mortgage-backed securities | Level 2 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 809 | 1,029 |
U.S. Agency mortgage-backed securities | Level 3 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 39,018 | 39,235 |
Corporate bonds | Level 1 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 4,501 | 26,873 |
Corporate bonds | Level 2 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 34,517 | 12,362 |
Corporate bonds | Level 3 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Preferred stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 3,524 | 3,152 |
Preferred stock | Level 1 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 3,524 | 3,152 |
Preferred stock | Level 2 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Preferred stock | Level 3 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 125 | 78 |
Derivative liability | 216 | 158 |
Interest rate contracts | Level 1 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | |
Interest rate contracts | Level 2 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 125 | 78 |
Derivative liability | 158 | |
Interest rate contracts | Level 3 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | |
Interest rate lock commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 1,514 | 841 |
Derivative liability | 216 | |
Interest rate lock commitments | Level 1 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | |
Interest rate lock commitments | Level 2 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 216 | |
Interest rate lock commitments | Level 3 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 1,514 | $ 841 |
Derivative liability | $ 0 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Assets with Unobservable Inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 1,851 | $ 0 |
Change included in earnings | (2,428) | (279) |
Purchases and issuances | 21,688 | 3,569 |
Sales and settlements | (17,943) | (1,439) |
Ending balance | 3,168 | 1,851 |
Net change in unrealized gains (losses) relating to items held at end of period | 1,514 | 841 |
Interest rate lock commitments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 841 | 0 |
Change included in earnings | (2,270) | (119) |
Purchases and issuances | 20,886 | 2,399 |
Sales and settlements | (17,943) | (1,439) |
Ending balance | 1,514 | 841 |
Net change in unrealized gains (losses) relating to items held at end of period | 1,514 | 841 |
Mortgage servicing rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 1,010 | 0 |
Change included in earnings | (158) | (160) |
Purchases and issuances | 802 | 1,170 |
Sales and settlements | 0 | 0 |
Ending balance | 1,654 | 1,010 |
Net change in unrealized gains (losses) relating to items held at end of period | $ 0 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets with Unobservable Inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Nonrecurring assets | $ 1,891 | $ 1,229 |
Assets Fair Value Disclosure Nonrecurring (Gain) Loss | 630 | 131 |
Level 1 inputs: | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Nonrecurring assets | 0 | 0 |
Level 2 inputs: | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Nonrecurring assets | 0 | 0 |
Level 3 inputs: | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Nonrecurring assets | 1,891 | 1,229 |
Loans measured for impairment | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Nonrecurring assets | 1,061 | 806 |
Assets Fair Value Disclosure Nonrecurring (Gain) Loss | 269 | 75 |
Loans measured for impairment | Level 1 inputs: | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Nonrecurring assets | 0 | 0 |
Loans measured for impairment | Level 2 inputs: | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Nonrecurring assets | 0 | 0 |
Loans measured for impairment | Level 3 inputs: | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Nonrecurring assets | 1,061 | 806 |
Other real estate owned | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Nonrecurring assets | 830 | 423 |
Assets Fair Value Disclosure Nonrecurring (Gain) Loss | 361 | 56 |
Other real estate owned | Level 1 inputs: | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Nonrecurring assets | 0 | 0 |
Other real estate owned | Level 2 inputs: | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Nonrecurring assets | 0 | 0 |
Other real estate owned | Level 3 inputs: | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Nonrecurring assets | $ 830 | $ 423 |
Fair Value Measurements - S133
Fair Value Measurements - Schedule Of Valuation Assumptions (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Loans measured for impairment | Income Approach Valuation Technique | Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Discount rate | 25.00% |
Loans measured for impairment | Income Approach Valuation Technique | Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Discount rate | 50.00% |
Other real estate owned | Market Approach Valuation Technique | Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Discount for lack of marketability | 7.00% |
Other real estate owned | Market Approach Valuation Technique | Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Discount for lack of marketability | 25.00% |
Mortgage servicing rights | Income Approach Valuation Technique | Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Discount rate | 9.08% |
Prepayment rate | 9.90% |
Mortgage servicing rights | Income Approach Valuation Technique | Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Discount rate | 9.23% |
Prepayment rate | 19.12% |
Interest rate lock commitments | Income Approach Valuation Technique | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Pull through rate | 93.16% |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Term of purchased receivables | 1 year |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | $ 15,063 | $ 15,388 | $ 14,943 | $ 14,386 | $ 14,566 | $ 14,212 | $ 13,895 | $ 11,673 | $ 59,780 | $ 54,346 | $ 46,074 |
Interest expense on deposits, borrowings and junior subordinated debentures | 663 | 706 | 748 | 754 | 642 | 487 | 484 | 440 | 2,871 | 2,053 | 2,040 |
Net Interest Income | 14,400 | 14,682 | 14,195 | 13,632 | 13,924 | 13,725 | 13,411 | 11,233 | 56,909 | 52,293 | 44,034 |
Provision for loan losses | 376 | 676 | 376 | 326 | 500 | 0 | (1,136) | 0 | 1,754 | (636) | (635) |
Other operating income | 10,104 | 12,407 | 11,563 | 10,535 | 9,376 | 4,934 | 4,106 | 2,734 | 44,608 | 21,149 | 12,886 |
Change in fair value of RML earn-out liability | 4,094 | 0 | 0 | ||||||||
Other operating expense | 68,551 | 48,038 | |||||||||
Income Before Provision for Income Taxes | 5,899 | 8,210 | 7,629 | 5,380 | 9,129 | 5,880 | 7,033 | 4,000 | 27,118 | 26,040 | 18,658 |
Provision for income taxes | 1,673 | 2,678 | 2,686 | 1,747 | 2,325 | 1,982 | 2,569 | 1,297 | 8,784 | 8,173 | 6,246 |
Net Income | 4,226 | 5,532 | 4,943 | 3,633 | 6,804 | 3,898 | 4,464 | 2,703 | 18,334 | 17,867 | 12,412 |
Less: Net income attributable to the noncontrolling interest | 120 | 197 | 162 | 72 | 130 | 191 | 95 | 45 | 551 | 459 | 87 |
Net Income Attributable to Northrim BanCorp, Inc. | 4,106 | $ 5,335 | $ 4,781 | $ 3,561 | 6,674 | $ 3,707 | $ 4,369 | $ 2,658 | 17,783 | 17,408 | $ 12,325 |
Total assets | 1,499,492 | 1,449,349 | 1,499,492 | 1,449,349 | |||||||
Loans held for sale | 50,553 | 43,866 | 50,553 | 43,866 | |||||||
Community Banking | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | 57,729 | 54,204 | |||||||||
Interest expense on deposits, borrowings and junior subordinated debentures | 1,796 | 1,942 | |||||||||
Net Interest Income | 55,933 | 52,262 | |||||||||
Provision for loan losses | 1,754 | (636) | |||||||||
Other operating income | 14,995 | 17,869 | |||||||||
Change in fair value of RML earn-out liability | 4,094 | ||||||||||
Other operating expense | 47,070 | 46,165 | |||||||||
Income Before Provision for Income Taxes | 18,010 | 24,602 | |||||||||
Provision for income taxes | 5,024 | 7,582 | |||||||||
Net Income | 12,986 | 17,020 | |||||||||
Less: Net income attributable to the noncontrolling interest | 551 | 459 | |||||||||
Net Income Attributable to Northrim BanCorp, Inc. | 12,435 | 16,561 | |||||||||
Total assets | 1,431,759 | 1,390,852 | 1,431,759 | 1,390,852 | |||||||
Loans held for sale | 0 | 0 | 0 | 0 | |||||||
Home Mortgage Lending | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | 2,051 | 142 | |||||||||
Interest expense on deposits, borrowings and junior subordinated debentures | 1,075 | 111 | |||||||||
Net Interest Income | 976 | 31 | |||||||||
Provision for loan losses | 0 | 0 | |||||||||
Other operating income | 29,613 | 3,280 | |||||||||
Change in fair value of RML earn-out liability | 0 | ||||||||||
Other operating expense | 21,481 | 1,873 | |||||||||
Income Before Provision for Income Taxes | 9,108 | 1,438 | |||||||||
Provision for income taxes | 3,760 | 591 | |||||||||
Net Income | 5,348 | 847 | |||||||||
Less: Net income attributable to the noncontrolling interest | 0 | 0 | |||||||||
Net Income Attributable to Northrim BanCorp, Inc. | 5,348 | 847 | |||||||||
Total assets | 67,733 | 58,497 | 67,733 | 58,497 | |||||||
Loans held for sale | $ 50,553 | $ 43,866 | $ 50,553 | $ 43,866 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2015Segmentbank | Dec. 01, 2014 | Nov. 30, 2014 | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | Segment | 2 | ||
Community Banking | |||
Segment Reporting Information [Line Items] | |||
Number of branches | bank | 14 | ||
RML | |||
Segment Reporting Information [Line Items] | |||
Ownership prior to acquisition of company | 23.50% | ||
Voting interests acquired | 76.50% |
Parent Company Information - B
Parent Company Information - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ||||
Cash and cash equivalents | $ 58,673 | $ 68,556 | $ 85,591 | $ 141,313 |
Investment securities available for sale | 291,113 | 281,730 | ||
Other assets | 51,774 | 57,762 | ||
Total assets | 1,499,492 | 1,449,349 | ||
LIABILITIES | ||||
Junior subordinated debentures | 18,558 | 18,558 | ||
Other liabilities | 29,388 | 40,456 | ||
Total liabilities | 1,322,278 | 1,284,908 | ||
SHAREHOLDERS' EQUITY | ||||
Common stock | 6,877 | 6,854 | ||
Additional paid-in capital | 62,420 | 61,729 | ||
Retained earnings | 108,150 | 95,493 | ||
Accumulated other comprehensive income (loss) | (412) | 247 | ||
Total Northrim BanCorp, Inc. shareholders' equity | 177,035 | 164,323 | ||
Total liabilities and shareholders' equity | 1,499,492 | 1,449,349 | ||
Northrim Bancorp, Inc. | ||||
ASSETS | ||||
Cash and cash equivalents | 10,258 | 6,890 | $ 10,121 | $ 8,749 |
Investment securities available for sale | 3,524 | 3,152 | ||
Due from NISC | 0 | 101 | ||
Other assets | 1,184 | 1,268 | ||
Total assets | 195,903 | 183,192 | ||
LIABILITIES | ||||
Junior subordinated debentures | 18,558 | 18,558 | ||
Other liabilities | 310 | 311 | ||
Total liabilities | 18,868 | 18,869 | ||
SHAREHOLDERS' EQUITY | ||||
Common stock | 6,877 | 6,854 | ||
Additional paid-in capital | 62,420 | 61,729 | ||
Retained earnings | 108,150 | 95,493 | ||
Accumulated other comprehensive income (loss) | (412) | 247 | ||
Total Northrim BanCorp, Inc. shareholders' equity | 177,035 | 164,323 | ||
Total liabilities and shareholders' equity | 195,903 | 183,192 | ||
Northrim Bank | Northrim Bancorp, Inc. | ||||
ASSETS | ||||
Investment in subsidiary | 178,905 | 169,590 | ||
Northrim Investment Services Company | Northrim Bancorp, Inc. | ||||
ASSETS | ||||
Investment in subsidiary | 1,474 | 1,633 | ||
Northrim Capital Trust 1 | Northrim Bancorp, Inc. | ||||
ASSETS | ||||
Investment in subsidiary | 248 | 248 | ||
Northrim Statutory Trust 2 | Northrim Bancorp, Inc. | ||||
ASSETS | ||||
Investment in subsidiary | $ 310 | $ 310 |
Parent Company Information - S
Parent Company Information - Statements Of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Interest income | $ 15,063 | $ 15,388 | $ 14,943 | $ 14,386 | $ 14,566 | $ 14,212 | $ 13,895 | $ 11,673 | $ 59,780 | $ 54,346 | $ 46,074 |
Other income | 10,104 | 12,407 | 11,563 | 10,535 | 9,376 | 4,934 | 4,106 | 2,734 | 44,608 | 21,149 | 12,886 |
Interest expense | 663 | 706 | 748 | 754 | 642 | 487 | 484 | 440 | 2,871 | 2,053 | 2,040 |
Income Before Provision for Income Taxes | 5,899 | 8,210 | 7,629 | 5,380 | 9,129 | 5,880 | 7,033 | 4,000 | 27,118 | 26,040 | 18,658 |
Provision for income taxes | 1,673 | 2,678 | 2,686 | 1,747 | 2,325 | 1,982 | 2,569 | 1,297 | 8,784 | 8,173 | 6,246 |
Net Income Attributable to Northrim BanCorp, Inc. | $ 4,106 | $ 5,335 | $ 4,781 | $ 3,561 | $ 6,674 | $ 3,707 | $ 4,369 | $ 2,658 | 17,783 | 17,408 | 12,325 |
Northrim Bancorp, Inc. | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Interest income | 116 | 197 | 208 | ||||||||
Other income | 175 | 30 | 170 | ||||||||
Total Income | 19,296 | 19,752 | 14,060 | ||||||||
Interest expense | 463 | 451 | 459 | ||||||||
Administrative and other expenses | 2,191 | 3,243 | 2,387 | ||||||||
Total Expense | 2,654 | 3,694 | 2,846 | ||||||||
Income Before Provision for Income Taxes | 16,642 | 16,058 | 11,214 | ||||||||
Provision for income taxes | (1,141) | (1,350) | (1,111) | ||||||||
Net Income Attributable to Northrim BanCorp, Inc. | 17,783 | 17,408 | 12,325 | ||||||||
Northrim Bank | Northrim Bancorp, Inc. | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net income from subsidiary | 18,865 | 19,358 | 13,645 | ||||||||
Northrim Investment Services Company | Northrim Bancorp, Inc. | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net income from subsidiary | $ 140 | $ 167 | $ 37 |
Parent Company Information 139
Parent Company Information - Statements Of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities: | |||||||||||
Net income attributable to Northrim BanCorp, Inc. | $ 4,106 | $ 5,335 | $ 4,781 | $ 3,561 | $ 6,674 | $ 3,707 | $ 4,369 | $ 2,658 | $ 17,783 | $ 17,408 | $ 12,325 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||||||
Stock-based compensation | 608 | 360 | 506 | ||||||||
Net Cash Provided by Operating Activities | 10,519 | 20,478 | 18,648 | ||||||||
Investing Activities: | |||||||||||
Purchases of investment securities available for sale | (210,308) | (264,943) | (140,856) | ||||||||
Net cash received from Alaska Pacific acquisition | 0 | 6,367 | 0 | ||||||||
Net Cash Used by Investing Activities | (63,339) | (48,658) | (107,989) | ||||||||
Financing Activities: | |||||||||||
Dividends paid to shareholders | (5,117) | (4,750) | (4,215) | ||||||||
Net Cash Provided by Financing Activities | 42,937 | 11,145 | 33,619 | ||||||||
Net Decrease in Cash and Cash Equivalents | (9,883) | (17,035) | (55,722) | ||||||||
Cash and Cash Equivalents at Beginning of Year | 68,556 | 85,591 | 68,556 | 85,591 | 141,313 | ||||||
Cash and Cash Equivalents at End of Year | 58,673 | 68,556 | 58,673 | 68,556 | 85,591 | ||||||
Northrim Bancorp, Inc. | |||||||||||
Operating Activities: | |||||||||||
Net income attributable to Northrim BanCorp, Inc. | 17,783 | 17,408 | 12,325 | ||||||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||||||
Equity in undistributed earnings from subsidiaries | (19,005) | (19,525) | (13,683) | ||||||||
Stock-based compensation | 608 | 360 | 506 | ||||||||
Changes in other assets and liabilities | (298) | (241) | (60) | ||||||||
Net Cash Provided by Operating Activities | (912) | (1,998) | (912) | ||||||||
Investing Activities: | |||||||||||
Purchases of investment securities available for sale | (3,549) | 0 | 525 | ||||||||
Proceeds from sales/calls/maturities of securities available for sale | 2,998 | 0 | 0 | ||||||||
Net cash received from Alaska Pacific acquisition | 0 | 6,367 | 0 | ||||||||
Investment in Northrim Bank, NISC, NCT1 & NST2 | 9,842 | (3,000) | 5,874 | ||||||||
Net Cash Used by Investing Activities | 9,291 | 3,367 | 6,399 | ||||||||
Financing Activities: | |||||||||||
Dividends paid to shareholders | (5,117) | (4,750) | (4,215) | ||||||||
Proceeds from issuance of common stock and excess tax benefits | 106 | 150 | 100 | ||||||||
Net Cash Provided by Financing Activities | (5,011) | (4,600) | (4,115) | ||||||||
Net Decrease in Cash and Cash Equivalents | 3,368 | (3,231) | 1,372 | ||||||||
Cash and Cash Equivalents at Beginning of Year | $ 6,890 | $ 10,121 | 6,890 | 10,121 | 8,749 | ||||||
Cash and Cash Equivalents at End of Year | $ 10,258 | $ 6,890 | $ 10,258 | $ 6,890 | $ 10,121 |
Quarterly Results of Operati140
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total interest income | $ 15,063 | $ 15,388 | $ 14,943 | $ 14,386 | $ 14,566 | $ 14,212 | $ 13,895 | $ 11,673 | $ 59,780 | $ 54,346 | $ 46,074 |
Total interest expense | 663 | 706 | 748 | 754 | 642 | 487 | 484 | 440 | 2,871 | 2,053 | 2,040 |
Net Interest Income | 14,400 | 14,682 | 14,195 | 13,632 | 13,924 | 13,725 | 13,411 | 11,233 | 56,909 | 52,293 | 44,034 |
Provision for loan losses | 376 | 676 | 376 | 326 | 500 | 0 | (1,136) | 0 | 1,754 | (636) | (635) |
Other operating income | 10,104 | 12,407 | 11,563 | 10,535 | 9,376 | 4,934 | 4,106 | 2,734 | 44,608 | 21,149 | 12,886 |
Other operating expense | 18,229 | 18,203 | 17,753 | 18,461 | 13,671 | 12,779 | 11,620 | 9,967 | 72,645 | 48,038 | 38,897 |
Income Before Provision for Income Taxes | 5,899 | 8,210 | 7,629 | 5,380 | 9,129 | 5,880 | 7,033 | 4,000 | 27,118 | 26,040 | 18,658 |
Provision for income taxes | 1,673 | 2,678 | 2,686 | 1,747 | 2,325 | 1,982 | 2,569 | 1,297 | 8,784 | 8,173 | 6,246 |
Net Income | 4,226 | 5,532 | 4,943 | 3,633 | 6,804 | 3,898 | 4,464 | 2,703 | 18,334 | 17,867 | 12,412 |
Less: Net income attributable to the noncontrolling interest | 120 | 197 | 162 | 72 | 130 | 191 | 95 | 45 | 551 | 459 | 87 |
Net Income Attributable to Northrim BanCorp, Inc. | $ 4,106 | $ 5,335 | $ 4,781 | $ 3,561 | $ 6,674 | $ 3,707 | $ 4,369 | $ 2,658 | $ 17,783 | $ 17,408 | $ 12,325 |
Earnings Per Share, Basic (USD per share) | $ 0.60 | $ 0.78 | $ 0.70 | $ 0.52 | $ 0.98 | $ 0.54 | $ 0.64 | $ 0.41 | $ 2.59 | $ 2.57 | $ 1.89 |
Earnings Per Share, Diluted (USD per share) | $ 0.59 | $ 0.77 | $ 0.69 | $ 0.51 | $ 0.97 | $ 0.53 | $ 0.63 | $ 0.40 | $ 2.56 | $ 2.54 | $ 1.87 |