Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 13, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
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 | 2,016 | ||
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 | 6,909,865 | ||
Entity Public Float | $ 174,841,698 | ||
Trading Symbol | NRIM |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 34,485 | $ 30,989 |
Interest bearing deposits in other banks | 16,066 | 27,684 |
Investment securities available for sale | 331,219 | 291,113 |
Investment securities held to maturity | 899 | 903 |
Total portfolio investments | 332,118 | 292,016 |
Investment in Federal Home Loan Bank stock | 1,965 | 1,816 |
Loans held for sale | 43,596 | 50,553 |
Loans | 975,015 | 980,787 |
Allowance for loan losses | (19,697) | (18,153) |
Net loans | 955,318 | 962,634 |
Purchased receivables, net | 20,491 | 13,326 |
OREO, net | 6,574 | 3,053 |
Premises and equipment, net | 39,318 | 40,217 |
Mortgage servicing rights | 4,157 | 1,654 |
Goodwill | 15,017 | 22,334 |
Other intangible assets, net | 1,307 | 1,442 |
Other assets | 56,128 | 51,774 |
Total assets | 1,526,540 | 1,499,492 |
LIABILITIES | ||
Demand | 449,206 | 430,191 |
Interest-bearing demand | 201,349 | 209,291 |
Savings | 241,088 | 227,969 |
Money market | 244,295 | 236,675 |
Certificates of deposit less than $250,000 | 86,053 | 95,938 |
Certificates of deposit $250,000 and greater | 45,662 | 40,728 |
Total deposits | 1,267,653 | 1,240,792 |
Securities sold under repurchase agreements | 27,607 | 31,420 |
Borrowings | 4,338 | 2,120 |
Junior subordinated debentures | 18,558 | 18,558 |
Other liabilities | 21,672 | 29,388 |
Total liabilities | 1,339,828 | 1,322,278 |
COMMITMENTS AND CONTINGENT LIABILITIES (NOTE 18) | ||
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, 6,897,890 and 6,877,140 shares issued and outstanding at December 31, 2016 and December 31, 2015, respectively | 6,898 | 6,877 |
Additional paid-in capital | 62,952 | 62,420 |
Retained earnings | 117,141 | 108,150 |
Accumulated other comprehensive loss | (397) | (412) |
Total Northrim BanCorp, Inc. shareholders' equity | 186,594 | 177,035 |
Noncontrolling interest | 118 | 179 |
Total shareholders' equity | 186,712 | 177,214 |
Total liabilities and shareholders' equity | $ 1,526,540 | $ 1,499,492 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
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) | 6,897,890 | 6,877,140 |
Common stock, shares outstanding (in shares) | 6,897,890 | 6,877,140 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest Income | |||
Interest and fees on loans and loans held for sale | $ 54,777 | $ 56,166 | $ 51,015 |
Interest on investment securities available for sale | 3,895 | 3,393 | 3,042 |
Interest on investment securities held to maturity | 41 | 68 | 91 |
Interest on deposits in other banks | 205 | 153 | 198 |
Total Interest Income | 58,918 | 59,780 | 54,346 |
Interest Expense | |||
Interest expense on deposits | 1,870 | 1,939 | 1,419 |
Interest expense on securities sold under agreements to repurchase | 30 | 23 | 16 |
Interest expense on borrowings | 127 | 446 | 167 |
Interest expense on junior subordinated debentures | 534 | 463 | 451 |
Total Interest Expense | 2,561 | 2,871 | 2,053 |
Net Interest Income | 56,357 | 56,909 | 52,293 |
Provision (benefit) for loan losses | 2,298 | 1,754 | (636) |
Net Interest Income After Provision (Benefit) for Loan Losses | 54,059 | 55,155 | 52,929 |
Other Operating Income | |||
Mortgage banking income | 29,507 | 29,613 | 2,386 |
Employee benefit plan income | 3,770 | 3,651 | 3,497 |
Bankcard fees | 2,670 | 2,671 | 2,229 |
Purchased receivable income | 2,347 | 2,287 | 2,074 |
Service charges on deposit accounts | 1,998 | 2,103 | 2,155 |
Gain (loss) on sale of securities | (11) | 271 | 461 |
Gain on purchase of mortgage affiliate | 0 | 0 | 3,001 |
Equity in earnings from RML | 0 | 0 | 894 |
Other income | 2,982 | 4,012 | 3,337 |
Total Other Operating Income | 43,263 | 44,608 | 20,034 |
Other Operating Expense | |||
Salaries and other personnel expense | 46,752 | 43,931 | 27,758 |
Occupancy expense | 6,462 | 6,332 | 4,360 |
Compensation expense - RML acquisition payments | 4,775 | 4,094 | 0 |
Data processing expense | 4,566 | 4,313 | 4,171 |
Professional and outside services | 3,110 | 2,980 | 1,437 |
Marketing expense | 2,449 | 2,728 | 2,059 |
Insurance expense | 1,023 | 1,339 | 1,031 |
Loss (gain) on sale of premises and equipment | 352 | 37 | (1,109) |
Intangible asset amortization expense | 135 | 258 | 289 |
OREO (income) expense, net rental income and gains on sale | 98 | 190 | (416) |
Merger and acquisition expense | 0 | 0 | 1,962 |
Reserve (benefit) for purchased receivables | (10) | (138) | 704 |
Other operating expense | 6,568 | 6,581 | 4,677 |
Total Other Operating Expense | 76,280 | 72,645 | 46,923 |
Income Before Provision for Income Taxes | 21,042 | 27,118 | 26,040 |
Provision for income taxes | 6,052 | 8,784 | 8,173 |
Net Income | 14,990 | 18,334 | 17,867 |
Less: Net income attributable to the noncontrolling interest | 579 | 551 | 459 |
Net Income Attributable to Northrim BanCorp, Inc. | $ 14,411 | $ 17,783 | $ 17,408 |
Earnings Per Share, Basic (in USD per share) | $ 2.09 | $ 2.59 | $ 2.57 |
Earnings Per Share, Diluted (in USD per share) | $ 2.06 | $ 2.56 | $ 2.54 |
Weighted Average Shares Outstanding, Basic (in shares) | 6,883,663 | 6,859,209 | 6,761,328 |
Weighted Average Shares Outstanding, Diluted (in shares) | 6,974,864 | 6,948,474 | 6,852,267 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 14,990 | $ 18,334 | $ 17,867 |
Other comprehensive income (loss), net of tax: | |||
Unrealized holding gains (losses) arising during the period | 42 | (795) | (237) |
Reclassification of net (gains) losses included in net income (net of tax (expense) benefit ($5), $111, and $190 in 2016, 2015 and 2014, respectively) | 6 | (160) | (271) |
Income tax (expense) benefit related to unrealized gains and losses | (33) | 296 | 86 |
Other comprehensive income (loss), net of tax | 15 | (659) | (422) |
Comprehensive income | 15,005 | 17,675 | 17,445 |
Less: comprehensive income attributable to the noncontrolling interest | 579 | 551 | 459 |
Comprehensive income attributable to Northrim BanCorp, Inc. | $ 14,426 | $ 17,124 | $ 16,986 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Reclassification of net gains, tax (expense) benefit | $ (5) | $ 111 | $ 190 |
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 (Loss) | Non-controlling Interest |
Beginning balance (in shares) at Dec. 31, 2013 | 6,538,000 | |||||
Beginning balance, value at Dec. 31, 2013 | $ 144,318 | $ 6,538 | $ 54,089 | $ 82,855 | $ 669 | $ 167 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Purchase of Alaska Pacific (in shares) | 290,000 | |||||
Purchase of Alaska Pacific | 7,446 | $ 290 | 7,156 | |||
Cash dividend declared | (4,770) | (4,770) | ||||
Stock-based compensation expense | 360 | 360 | ||||
Exercise of stock options and vesting of restricted stock units, net (in shares) | 26,000 | |||||
Exercise of stock options and vesting of restricted stock units, net | 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 | ||||
Ending balance (in shares) at Dec. 31, 2014 | 6,854,000 | |||||
Ending balance, value at Dec. 31, 2014 | 164,441 | $ 6,854 | 61,729 | 95,493 | 247 | 118 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cash dividend declared | (5,126) | (5,126) | ||||
Stock-based compensation expense | 608 | 608 | ||||
Exercise of stock options and vesting of restricted stock units, net (in shares) | 23,000 | |||||
Exercise of stock options and vesting of restricted stock units, net | 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 (in shares) at Dec. 31, 2015 | 6,877,140 | 6,877,000 | ||||
Ending balance, value at Dec. 31, 2015 | $ 177,214 | $ 6,877 | 62,420 | 108,150 | (412) | 179 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cash dividend declared | (5,420) | (5,420) | ||||
Stock-based compensation expense | 778 | 778 | ||||
Exercise of stock options and vesting of restricted stock units, net (in shares) | 21,000 | |||||
Exercise of stock options and vesting of restricted stock units, net | (162) | $ 21 | (183) | |||
Excess tax benefits from share-based payment arrangements | (63) | (63) | ||||
Distributions to noncontrolling interest | (640) | (640) | ||||
Other comprehensive income (loss), net of tax | 15 | 15 | ||||
Net income attributable to the noncontrolling interest | 579 | 579 | ||||
Net income attributable to Northrim BanCorp, Inc. | $ 14,411 | 14,411 | ||||
Ending balance (in shares) at Dec. 31, 2016 | 6,897,890 | 6,898,000 | ||||
Ending balance, value at Dec. 31, 2016 | $ 186,712 | $ 6,898 | $ 62,952 | $ 117,141 | $ (397) | $ 118 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities: | |||
Net income | $ 14,990 | $ 18,334 | $ 17,867 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Loss (gain) on sale of securities, net | 11 | (271) | (461) |
Loss (gain) on sale of premises and equipment | 352 | 37 | (1,109) |
Gain on purchase of mortgage affiliate | 0 | 0 | (3,001) |
Depreciation and amortization of premises and equipment | 2,439 | 2,264 | 1,865 |
Amortization of software | 157 | 179 | 180 |
Intangible asset amortization | 135 | 258 | 289 |
Amortization of investment security premium, net of discount accretion | 27 | (202) | (187) |
Deferred tax (benefit) liability | (325) | 148 | (1,311) |
Stock-based compensation | 778 | 608 | 360 |
Excess tax expense (benefit) from share-based payment arrangements | 63 | (56) | (96) |
Deferral of loan fees and costs, net | (178) | 61 | 530 |
Provision (benefit) for loan losses | 2,298 | 1,754 | (636) |
Reserve (benefit) for purchased receivables | (10) | (138) | 704 |
Purchases of loans held for sale | 0 | 0 | (132,013) |
Gain on sale of loans | (25,413) | (26,398) | (2,232) |
Proceeds from the sale of loans held for sale | 768,169 | 773,526 | 205,636 |
Origination of loans held for sale | (735,799) | (753,815) | (62,652) |
Gain on sale of other real estate owned | (295) | (315) | (631) |
Impairment on other real estate owned | 187 | 361 | 56 |
Equity in undistributed earnings from mortgage affiliate | 0 | 0 | (172) |
Net changes in assets and liabilities: | |||
(Increase) in accrued interest receivable | (114) | (247) | (644) |
Decrease in other assets | 7,512 | 5,472 | 6,406 |
Decrease in other liabilities | (14,861) | (11,041) | (8,270) |
Net Cash Provided by Operating Activities | 20,123 | 10,519 | 20,478 |
Investing Activities: | |||
Purchases of investment securities available for sale | (145,707) | (210,308) | (264,943) |
Purchases of FHLB stock | (751) | 0 | 0 |
Proceeds from sales/calls/maturities of securities available for sale | 105,621 | 200,343 | 237,425 |
Proceeds from calls/maturities of securities held to maturity | 0 | 1,285 | 0 |
Purchases of domestic certificates of deposit | 0 | 0 | (3,500) |
Proceeds from maturities of domestic certificates of deposit | 0 | 3,500 | 13,500 |
Proceeds from redemption of FHLB stock | 602 | 1,588 | 165 |
(Increase) decrease in purchased receivables, net | (7,155) | 2,066 | 67 |
Decrease (increase) in loans, net | 1,160 | (57,927) | (27,686) |
Proceeds from sale of other real estate owned | 934 | 2,733 | 2,402 |
Net cash received from Alaska Pacific acquisition | 0 | 0 | 6,367 |
Cash paid for Residential Mortgage acquisition, net of cash received | 0 | 0 | (7,412) |
Investment in other real estate owned | (311) | 0 | 0 |
Elliott Cove divestiture, net of cash received | 0 | 219 | 0 |
Decrease in loan to Elliott Cove, net | 0 | 0 | 239 |
Sales of premises and equipment | 1,401 | 188 | 1,550 |
Purchases of premises and equipment | (3,293) | (7,026) | (6,832) |
Net Cash Used by Investing Activities | (47,499) | (63,339) | (48,658) |
Financing Activities: | |||
Increase in deposits | 26,861 | 61,045 | 24,585 |
Increase (decrease) in securities sold under repurchase agreements | (3,813) | 11,577 | (1,300) |
Proceeds from borrowings | 2,265 | 0 | 0 |
Repayments of borrowings | (47) | (24,184) | (7,032) |
Distributions to noncontrolling interest | (640) | (490) | (508) |
Proceeds from the issuance of common stock | 0 | 50 | 54 |
Excess tax (expense) benefits from share-based payment arrangements | 0 | 56 | 96 |
Cash dividends paid | (5,372) | (5,117) | (4,750) |
Net Cash Provided by Financing Activities | 19,254 | 42,937 | 11,145 |
Net Decrease in Cash and Cash Equivalents | (8,122) | (9,883) | (17,035) |
Cash and Cash Equivalents at Beginning of Year | 58,673 | 68,556 | 85,591 |
Cash and Cash Equivalents at End of Year | 50,551 | 58,673 | 68,556 |
Supplemental Information: | |||
Income taxes paid | 4,414 | 5,674 | 5,927 |
Interest paid | 2,553 | 2,833 | 2,087 |
Noncash commitments to invest in Low Income Housing Tax Credit Partnerships | 6,809 | 55 | 8,518 |
Transfer of loans to other real estate owned | 4,036 | 1,259 | 1,137 |
Cash dividends declared but not paid | 48 | 46 | 49 |
Assets acquired | 0 | 0 | 235,069 |
Liabilities assumed | $ 0 | $ 0 | $ 197,338 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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 other real estate owned (“OREO”), valuation of mortgage servicing rights, 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, 2016, 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, 2016 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: The Company designates loans held for sale as either fair value or the lower of cost or fair value at origination. 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. For the purpose of estimating the Allowance for Loan and Lease Losses, the Company has evaluated the credit quality of purchased non-credit-impaired loans separately from loans that were originated by the Company; however, purchased non-credit-impaired loans that have been identified as impaired subsequent to the merger are included in the Company's normal process for reporting impaired loans and calculation of a specific valuation allowance. Purchases of non-credit-impaired loans that have not been identified as impaired subsequent to the merger are evaluated for significant changes subsequent to the merger to determine if the underlying credit quality of these loans would require a provision and establishment of an allowance specific to these loans. 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 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. After foreclosure, 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 these partnerships in the form of tax credits and deductions that flow through to it as a limited partner. 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. 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 entire financial assets or a participating interest in an entire financial asset 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 $2.4 million , $2.7 million , and $2.1 million for each of the periods ending December 31, 2016 , 2015 , and 2014 , 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. Our policy is to recognize interest and penalties on unrecognized tax benefits in “Provision for income taxes” in the Consolidated Statements of Income. 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 2016 , or 2014 . 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) 2016 2015 2014 Net income attributable to Northrim BanCorp, Inc. $14,411 $17,783 $17,408 Basic weighted average common shares outstanding 6,884 6,859 6,761 Dilutive effect of potential common shares from awards granted under equity incentive program 91 89 91 Total 6,975 6,948 6,852 Earnings per common share Basic $2.09 $2.59 $2.57 Dilutive $2.06 $2.56 $2.54 Comprehensive Income: C |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations 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"). 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. The former owners of RML (the "sellers") receive additional cash proceeds (the “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 estimated value of these payments was initially recorded as a $7.3 million contingent liability as of December 1, 2014 as part of its purchase accounting for future payments. The total contingent liability as of December 31, 2015 was $6.6 million . For the year ended December 31, 2015, the Company recorded adjustments of $4.1 million , respectively, to increase the contingent liability. The increase in the contingent liability resulted from the excess of RML's pretax income for these 12 periods over and above estimates made at the close of the purchase of RML. The Company made its first payment to the sellers in the fourth quarter of 2015 for approximately $4.9 million and made its second payment in the fourth quarter of 2016 for approximately $3.8 million . As described in Note 1, the Company has identified that accounting for these payments as purchase consideration was an error at the time of the purchase, and when this error was corrected in the third quarter of 2016, the contingent liability previously recorded for these payments was eliminated. Following the error correction, payments owed to the sellers of RML are recorded as “compensation expense - RML acquisition payments” in the Consolidated Statements of Income and are accrued in other liabilities in the period in which they are incurred. The Company did not restate prior period financial statements for the correction of this error because management determined that the impact was not material. Per the purchase agreement, the payments are calculated as follows: First tier 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 payment Adjusted pretax earnings greater than $2,000,000 and less than or equal to $3,000,000 The first tier 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 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 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 payment Adjusted pretax earnings greater than $4,000,000 and less than or equal to $6,000,000 The first, second and third tier 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 payment Adjusted pretax earnings greater than $6,000,000 The first, second, third and fourth tier payment, plus the product of amount of adjusted pretax earnings greater than $6,000,000 times 55% The Company estimates the amount of compensation expense for RML acquisition payments based on internal projections of adjusted earnings of RML, and this expense was $4.8 million for the year ended December 31, 2016, including $2.8 million in expense to correct the error described in Note 1. The accrued liability relating to the RML acquisition payments is $186,000 as of December 31, 2016. The RML acquisition payments are paid to the sellers annually in December. |
Cash and Due from Banks
Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , was $0 . The Company is required to maintain a $500,000 balance with a correspondent bank for outsourced servicing of ATMs. |
Interest Bearing Deposits in Ot
Interest Bearing Deposits in Other Banks | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 Interest bearing deposits at Federal Reserve Bank $15,734 $27,275 Interest bearing deposits at FHLB 31 108 Other interest bearing deposits at other institutions 301 301 Total $16,066 $27,684 |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 Securities available for sale U.S. Treasury and government sponsored entities $264,267 $150 $1,056 $263,361 Municipal securities 18,184 26 53 18,157 U.S. Agency mortgage-backed securities 2 — — 2 Corporate bonds 44,437 295 — 44,732 Preferred stock 4,922 49 4 4,967 Total securities available for sale $331,812 $520 $1,113 $331,219 Securities held to maturity Municipal securities $899 $23 $— $922 Total securities held to maturity $899 $23 $— $922 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 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, 2016 and 2015 were as follows: Less Than 12 Months More Than 12 Months Total (In Thousands) Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses 2016: Securities Available for Sale U.S. Treasury and government sponsored entities $180,638 $1,051 $489 $5 $181,127 $1,056 Corporate bonds — — — — — — Municipal securities 11,533 33 1,786 20 13,319 53 Preferred stock — — 1,038 4 1,038 4 Total $192,171 $1,084 $3,313 $29 $195,484 $1,113 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 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, 2016 and 2015 , there were thirty-four and thirty-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 four and six securities with unrealized losses at December 31, 2016 and 2015 , 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, 2016 and 2015 , $50.9 million and $59.7 million in securities were pledged for deposits and borrowings, respectively. The amortized cost and fair values of debt securities at December 31, 2016 , 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 $49,997 $50,041 0.96 % 1-5 years $214,270 $213,320 1.25 % Total $264,267 $263,361 1.20 % U.S. Agency mortgage-backed securities 1-5 years $2 $2 (5.90 )% Total $2 $2 (5.90 )% Corporate bonds Within 1 year $9,793 $9,806 1.60 % 1-5 years 26,208 26,370 1.67 % 5-10 years 8,436 8,556 2.14 % Total $44,437 $44,732 1.74 % Preferred stock Over 10 years $4,922 $4,967 6.41 % Total $4,922 $4,967 6.41 % Municipal securities Within 1 year $4,325 $4,323 1.34 % 1-5 years 13,267 13,278 2.32 % 5-10 years 1,491 1,478 4.78 % Total $19,083 $19,079 2.29 % The proceeds and resulting gains and losses, computed using specific identification, from sales of investment securities for the years ending December 31, 2016 , 2015 , and 2014 , respectively, are as follows: (In Thousands) Proceeds Gross Gains Gross Losses 2016 Available for sale securities $5,785 $12 $23 2015 Available for sale securities $20,522 $271 $— 2014 Available for sale securities $24,102 $465 $4 A summary of interest income for the years ending December 31, 2016 , 2015 , and 2014 on available for sale investment securities is as follows: (In Thousands) 2016 2015 2014 U.S. Treasury and government sponsored entities $2,661 $2,378 $1,769 U.S. Agency mortgage-backed securities 4 25 25 Other 948 670 857 Total taxable interest income $3,613 $3,073 $2,651 Municipal securities $282 $320 $391 Total tax-exempt interest income $282 $320 $391 Total $3,895 $3,393 $3,042 |
Loans and Credit Quality
Loans and Credit Quality | 12 Months Ended |
Dec. 31, 2016 | |
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. The risk classification is a dual rating system that contemplates both probability of default and risk of loss given default. 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, 2016 AQR Pass $257,639 $26,061 $72,159 $135,359 $355,903 $44,733 $22,568 $25,151 $939,573 AQR Special Mention 1,950 — — 57 — — 501 78 2,586 AQR Substandard 18,589 — — 16,762 698 669 520 52 37,290 Subtotal $278,178 $26,061 $72,159 $152,178 $356,601 $45,402 $23,589 $25,281 $979,449 Less: Unearned origination fees, net of origination costs (4,434 ) Total loans $975,015 December 31, 2015 AQR Pass $257,293 $44,488 $74,956 $127,226 $347,157 $45,884 $26,015 $28,882 $951,901 AQR Special Mention 536 — — — — 91 171 10 808 AQR Substandard 14,612 — — 16,515 359 697 487 20 32,690 Subtotal $272,441 $44,488 $74,956 $143,741 $347,516 $46,672 $26,673 $28,912 $985,399 Less: Unearned origination fees, net of origination costs (4,612 ) Total loans $980,787 At December 31, 2016 , approximately 74% of the Company’s loans are secured by real estate and 3% are unsecured. Approximately 23% 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 determined to be of no value. Nonaccrual Loans Nonaccrual loans net of government guarantees totaled $12.5 million and $2.1 million December 31, 2016 and December 31, 2015 , respectively. Interest income which would have been earned on nonaccrual loans for 2016 , 2015 , and 2014 amounted to $676,000 , $276,000 , and $218,000 , respectively. Additionally, the Company recognized interest income of $181,000 , $617,000 , and $350,000 in 2016 , 2015 , and 2014 , 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) 30-59 Days 60-89 Days Greater Than Current Total December 31, 2016 Commercial $8,750 $— $4,208 $542 $13,500 Real estate term owner occupied — — — 29 29 Real estate term non-owner occupied — — — 197 197 Consumer secured by 1st deeds of trust — — 167 — 167 Total nonaccrual loans 8,750 — 4,375 768 13,893 Government guarantees on nonaccrual loans — — (1,413 ) — (1,413 ) Net nonaccrual loans $8,750 $— $2,962 $768 $12,480 December 31, 2015 Commercial $— $82 $290 $2,641 $3,013 Real estate term owner occupied — — — 38 38 Real estate term non-owner occupied — — 108 251 359 Consumer secured by 1st deeds of trust — — — 256 256 Consumer other — — 20 — 20 Total nonaccrual loans — 82 418 3,186 3,686 Government guarantees on nonaccrual loans — — — (1,561 ) (1,561 ) Net nonaccrual loans $— $82 $418 $1,625 $2,125 Past Due Loans There were $456,000 and zero past due loans greater than 90 days and still accruing interest at December 31, 2016 and 2015 , respectively. 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 Total Past Nonaccrual Current Total December 31, 2016 Commercial $— $141 $404 $545 $13,500 $264,133 $278,178 Real estate construction one-to-four family — — — — — 26,061 26,061 Real estate construction other — — — — — 72,159 72,159 Real estate term owner occupied 887 — — 887 29 151,262 152,178 Real estate term non-owner occupied — — — — 197 356,404 356,601 Real estate term other — — — — — 45,402 45,402 Consumer secured by 1st deed of trust 390 518 — 908 167 22,514 23,589 Consumer other 171 80 52 303 — 24,978 25,281 Subtotal $1,448 $739 $456 $2,643 $13,893 $962,913 $979,449 Less: Unearned origination fees, net of origination costs (4,434 ) Total $975,015 December 31, 2015 Commercial $242 $21 $— $263 $3,013 $269,165 $272,441 Real estate construction one-to-four family — — — — — 44,488 44,488 Real estate construction other — — — — — 74,956 74,956 Real estate term owner occupied — — — — 38 143,703 143,741 Real estate term non-owner occupied — — — — 359 347,157 347,516 Real estate term other 289 — — 289 — 46,383 46,672 Consumer secured by 1st deed of trust 568 — — 568 256 25,849 26,673 Consumer other 30 — — 30 20 28,862 28,912 Subtotal $1,129 $21 $— $1,150 $3,686 $980,563 $985,399 Less: Unearned origination fees, net of origination costs (4,612 ) Total $980,787 Impaired Loans At December 31, 2016 and 2015 , the recorded investment in loans that are considered to be impaired was $38.7 million and $34.6 million , respectively. The following table presents information about impaired loans by class for the years ended December 31, 2016 and 2015 : (In Thousands) Recorded Investment Unpaid Principal Balance Related Allowance December 31, 2016 With no related allowance recorded Commercial - AQR special mention $223 $223 $— Commercial - AQR substandard 9,213 9,893 — Real estate construction other - AQR substandard — — — Real estate term owner occupied - AQR pass 252 252 — Real estate term owner occupied - AQR substandard 16,694 16,694 — Real estate term non-owner occupied - AQR pass 391 391 — Real estate term non-owner occupied - AQR substandard 693 693 — Real estate term other - AQR pass 633 633 — Real estate term other - AQR substandard 669 669 — Consumer secured by 1st deeds of trust - AQR special mention 143 143 — Consumer secured by 1st deeds of trust - AQR substandard 472 488 — Consumer other - AQR substandard 52 52 — Subtotal $29,435 $30,131 $— With an allowance recorded Commercial - AQR substandard $9,221 $9,221 $614 Subtotal $9,221 $9,221 $614 Commercial - AQR special mention $223 $223 $— Commercial - AQR substandard 18,434 19,114 614 Real estate construction other - AQR substandard — — — Real estate term owner-occupied - AQR pass 252 252 — Real estate term owner-occupied - AQR substandard 16,694 16,694 — Real estate term non-owner occupied - AQR pass 391 391 — Real estate term non-owner occupied - AQR substandard 693 693 — Real estate term other - AQR pass 633 633 — Real estate term other - AQR substandard 669 669 — Consumer secured by 1st deeds of trust - AQR special mention 143 143 — Consumer secured by 1st deeds of trust - AQR substandard 472 488 — Consumer other - AQR substandard 52 52 — Total $38,656 $39,352 $614 (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 13,333 13,746 — 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 — Real estate term other - AQR substandard 697 697 — 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 14,394 14,807 344 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 — Real estate term other - AQR substandard 697 697 — Consumer secured by 1st deeds of trust - AQR pass 76 76 — Consumer secured by 1st deeds of trust - AQR substandard 472 472 — Total $34,640 $35,053 $344 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, 2016 and 2015 , respectively: Year Ended December 31, 2016 2015 (In Thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded Commercial - AQR special mention $170 $13 $163 $13 Commercial - AQR substandard 15,522 840 9,996 378 Real estate construction one-to-four family - AQR substandard 988 — — — Real estate construction other - AQR pass — — 557 72 Real estate construction other - AQR substandard 1,431 — 1,431 — Real estate term owner occupied - AQR pass 378 34 696 63 Real estate term owner occupied - AQR special mention — — 67 5 Real estate term owner occupied - AQR substandard 16,551 1,202 6,941 355 Real estate term non-owner occupied - AQR pass 442 91 521 75 Real estate term non-owner occupied - AQR special mention — — 1,080 97 Real estate term non-owner occupied - AQR substandard 599 28 1,141 — Real estate term other - AQR pass 627 58 179 13 Real estate term other - AQR special mention 43 4 68 6 Real estate term other - AQR substandard 683 55 816 50 Consumer secured by 1st deeds of trust - AQR pass 38 2 79 4 Consumer secured by 1st deeds of trust - AQR special mention 36 3 — — Consumer secured by 1st deeds of trust - AQR substandard 568 24 514 9 Consumer other - AQR substandard 13 — — — Subtotal $38,089 $2,354 $24,249 $1,140 With an allowance recorded Commercial - AQR substandard $2,451 $— $1,668 $— Real estate construction one-to-four family - AQR substandard 1,986 — — — Real estate term other - AQR substandard — — 70 — Consumer secured by 1st deeds of trust - AQR substandard 73 — — — Consumer other - AQR substandard — — 10 — Subtotal $4,510 $— $1,748 $— Total Commercial - AQR special mention $170 $13 $163 $13 Commercial - AQR substandard 17,973 840 11,664 378 Real estate construction one-to-four family - AQR substandard 2,974 — — — Real estate construction other - AQR pass — — 557 72 Real estate construction other - AQR substandard 1,431 — 1,431 — Real estate term owner-occupied - AQR pass 378 34 696 63 Real estate term owner-occupied - AQR special mention — — 67 5 Real estate term owner-occupied - AQR substandard 16,551 1,202 6,941 355 Real estate term non-owner occupied - AQR pass 442 91 521 75 Real estate term non-owner occupied - AQR special mention — — 1,080 97 Real estate term non-owner occupied - AQR substandard 599 28 1,141 — Real estate term other - AQR pass 627 58 179 13 Real estate term other - AQR special mention 43 4 68 6 Real estate term other - AQR substandard 683 55 886 50 Consumer secured by 1st deeds of trust - AQR pass 38 2 79 4 Consumer secured by 1st deeds of trust - AQR special mention 36 3 — — Consumer secured by 1st deeds of trust - AQR substandard 641 24 514 9 Consumer other - AQR substandard 13 — 10 — Total Impaired Loans $42,599 $2,354 $25,997 $1,140 The average recorded investment was $10.5 million , and interest income recognized on impaired loans was $762,000 for the year ended December 31, 2014. Purchased Credit Impaired Loans 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, 2016 and 2015 were $1.1 million and $1.6 million , respectively. Troubled Debt Restructurings Loans classified as troubled debt restructurings (“TDR”) totaled $16.2 million and $13.7 million at December 31, 2016 and December 31, 2015 , 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 identifies the portion of TDR balances as of December 31, 2016 that were restructured during 2016 : Accrual Status Nonaccrual Status Total Modifications (In Thousands) New Troubled Debt Restructurings Commercial - AQR substandard $4,234 $134 $4,368 Subtotal $4,234 $134 $4,368 Existing Troubled Debt Restructurings 1,897 9,954 11,851 Total $6,131 $10,088 $16,219 The following table provides additional information about loans that were restructured in 2016 : (In Thousands) Number of Contracts Rate Modification Term Modification Payment Modification Combination Modification Total Modifications Pre-Modification Outstanding Recorded Investment: Commercial - AQR substandard 2 $— $135 $4,234 $— $4,369 Total 2 $— $135 $4,234 $— $4,369 Post-Modification Outstanding Recorded Investment: Commercial - AQR substandard 2 $— $134 $4,233 $— $4,367 Total 2 $— $134 $4,233 $— $4,367 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, 2016 . There were no chargeoffs in 2016 on loans that were later classified as a TDR, and there was a $304,000 chargeoff in 2015 on a loan that was later classified as a TDR in 2015. 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 four TDRs with specific impairment at December 31, 2016 and none at December 31, 2015 , respectively. There were no loans that were restructured during 2016 , 2015 , and 2014 , respectively, that also subsequently defaulted within the first twelve months of restructure in those same periods. At December 31, 2016 and 2015 , 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) 2016 2015 Balance, beginning of the year $117 $2,262 Loans made — — Repayments 27 2,145 Balance, end of year $90 $117 The Company’s amount of unfunded loan commitments to these directors or their related interests on December 31, 2016 and 2015 , was $15,000 and $0 , respectively. |
Allowance For Loan Losses
Allowance For Loan Losses | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [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 2016 Balance, beginning of period $5,906 $854 $1,439 $1,657 $5,515 $628 $264 $397 $1,493 $18,153 Charge-Offs (903 ) (535 ) — — — — (36 ) (8 ) — (1,482 ) Recoveries 699 — — — — — — 29 — 728 Provision (benefit) (167 ) 231 26 701 1,338 191 85 (10 ) (97 ) 2,298 Balance, end of period $5,535 $550 $1,465 $2,358 $6,853 $819 $313 $408 $1,396 $19,697 Balance, end of period: Individually evaluated for impairment $614 $— $— $— $— $— $— $— $— $614 Balance, end of period: Collectively evaluated for impairment $4,921 $550 $1,465 $2,358 $6,853 $819 $313 $408 $1,396 $19,083 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 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, 2016 Balance, end of period $278,178 $26,061 $72,159 $152,178 $356,601 $45,402 $23,589 $25,281 $979,449 Balance, end of period: Individually evaluated for impairment $18,657 $— $— $16,946 $1,084 $1,302 $615 $52 $38,656 Balance, end of period: Collectively evaluated for impairment $259,521 $26,061 $72,159 $135,232 $355,517 $44,100 $22,974 $25,229 $940,793 December 31, 2015 Balance, end of period $272,441 $44,488 $74,956 $143,741 $347,516 $46,672 $26,673 $28,912 $985,399 Balance, end of period: Individually evaluated for impairment $14,551 $— $— $17,229 $825 $1,487 $548 $— $34,640 Balance, end of period: Collectively evaluated for impairment $257,890 $44,488 $74,956 $126,512 $346,691 $45,185 $26,125 $28,912 $950,759 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, 2016 Individually evaluated for impairment AQR Substandard $614 $614 $— $— $— $— $— $— $— $— Collectively evaluated for impairment: AQR Pass 17,628 4,867 550 1,465 2,358 6,853 819 310 406 — AQR Special Mention 56 51 — — — — — 3 2 — AQR Substandard 3 3 — — — — — — — — Unallocated 1,396 — — — — — — — — 1,396 $19,697 $5,535 $550 $1,465 $2,358 $6,853 $819 $313 $408 $1,396 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 |
Purchased Receivables
Purchased Receivables | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , the Company has one segment and class of purchased receivables. There are no purchased receivables past due at December 31, 2016 or 2015 , respectively, and there were no restructured purchased receivables in 2016 , 2015 , or 2014 . 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, 2016 , 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) 2016 2015 Purchased receivables $20,662 $13,507 Reserve for purchased receivable losses (171 ) (181 ) Total $20,491 $13,326 The following table sets forth information regarding changes in the purchased receivable reserve for the periods indicated: (In Thousands) 2016 2015 2014 Balance at beginning of year $181 $289 $273 Charge-offs — — (793 ) Recoveries — 30 105 Net recoveries (charge-offs) — 30 (688 ) Reserve for (recovery from) purchased receivables (10 ) (138 ) 704 Balance at end of year $171 $181 $289 The Company recorded no charge-offs in 2016 and 2015. The Company recorded one full charge-off and one partial charge-off totaling $793,000 in 2014. |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2016 | |
Real Estate [Abstract] | |
Other Real Estate Owned | Other Real Estate Owned At December 31, 2016 and 2015 , the Company held $6.6 million and $3.1 million , respectively, as OREO. The following table details net operating expense related to OREO for the years indicated: Years Ended December 31, (In Thousands) 2016 2015 2014 OREO (income) expense, net rental income and gains on sale: OREO operating expense $304 $224 $174 Impairment on OREO 187 361 56 Rental income on OREO (98 ) (80 ) (3 ) Gains on sale of OREO (295 ) (315 ) (643 ) Total $98 $190 ($416 ) |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 2015 Land $2,596 $2,600 Furniture and equipment 3-7 years 14,912 12,641 Tenant improvements 2-15 years 8,325 8,023 Buildings 39 years 37,683 39,233 Total Premises and Equipment 63,516 62,497 Accumulated depreciation and amortization (24,198 ) (22,280 ) Total Premises and Equipment, Net $39,318 $40,217 Depreciation expense and amortization of leasehold improvements was $2.4 million , $2.3 million , and $1.9 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. Related Party Transactions: The Company made no payments to related parties in the year ended December 31, 2016. The Company paid a related party $122,000 in January 2015, and $5.4 million for the year ending December 31, 2014, for general contracting services related to several construction projects for the Bank. The transactions which occurred in 2015 and 2014 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, 2016 | |
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) 2016 2015 Balance, beginning of period $1,654 $1,010 Additions for new MSR capitalized 3,029 802 Changes in fair value: Due to changes in model inputs of assumptions (1) (214 ) 29 Other (2) (312 ) (187 ) Carrying value, December 31 $4,157 $1,654 (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, 2016 and 2015: (In thousands) December 31, 2016 December 31, 2015 Balance of loans serviced for others $272,442 $125,446 MSR as a percentage of serviced loans 1.53 % 1.32 % The Company recognized servicing fees of $675,000 , $261,000 and $203,000 during 2016, 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, 2016 and 2015: 2016 2015 Constant prepayment rate 11.58 % 10.54 % Discount rate 9.25 % 9.10 % At December 31, 2016 and 2015 , the Company serviced $456.4 million and $263.0 million of commercial and mortgage loans, respectively, which had been sold to various investors without recourse. At December 31, 2016 and 2015 , the Company held $2.7 million and $1.4 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, 2016 | |
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) 2016 2015 Intangible assets: Goodwill $15,017 $22,334 Core deposit intangible 357 492 Trade name intangible 950 950 Total $16,324 $23,776 Goodwill and Other Intangible Assets: 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 , $1.3 million , and $1.2 million at December 31, 2016, 2015 and 2014, 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 $283,000 , $190,000 and $85,000 at December 31, 2016 , 2015 , and 2014 , respectively. Lastly, on December 1, 2014 the Company recorded goodwill and a trade name intangible as part of the acquisition of RML. As of December 31, 2016, the Company has $7.5 million of goodwill and $950,000 of trade name intangible recorded related to this transaction. Refer to footnote 1 for discussion of the change in the balance of goodwill in 2016 related to this acquisition. These assets have indefinite useful lives and are not amortized. The Company performed its annual goodwill impairment testing at December 31, 2016 and 2015 in accordance with the policy described in Note 1 to the financial statements. At December 31, 2016, the Company performed its annual impairment test using a qualitative assessment. Significant positive inputs to the qualitative assessment included the Company’s capital position; the Company’s increasing net income as compared to historical trends, the Company's stable budget-to-actual results of operations; results of regulatory examinations; peer comparisons of the Company's net interest margin; and trends in the Company’s cash flows. Significant negative inputs to the qualitative assessment included the recent decline in oil prices and current uncertainty in the Alaska economy. We believe that the positive inputs to the qualitative assessment noted above outweigh the negative inputs, and we therefore concluded that it is more likely than not that the fair value of the Company exceeds its carrying value at December 31, 2016 and that no potential impairment existed at that time. The Company recorded amortization expense of its intangible assets of $135,000 , $258,000 , and $289,000 for the years ended December 31, 2016 , 2015 , and 2014 , respectively. Accumulated amortization for intangible assets was $6.8 million and $6.7 million at December 31, 2016 and 2015 , respectively. The future amortization expense required on these assets is as follows: (In Thousands) 2017 $100 2018 71 2019 59 2020 48 2021 37 Thereafter 43 Total $358 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets (In Thousands) 2016 2015 Other assets: Investment in Low Income Housing Partnerships $24,174 $20,233 Deferred taxes, net 10,264 9,939 Bank owned life insurance 6,181 5,887 Investment in equity method investments 4,560 4,573 Accrued interest receivable 3,734 3,620 Prepaid expenses 1,596 1,230 Taxes receivable 1,755 878 Rate lock derivative 1,137 1,514 Other assets 2,727 3,900 Total $56,128 $51,774 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 $2.9 million , $2.7 million , and $1.3 million in 2016 , 2015 , and 2014 , respectively. The Company expects to fund its remaining $7.4 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 $8,528 ($8,248 ) $280 R4 - Coronado March 2013 17 10,729 (10,089 ) 640 R4 - PJ33 June 2016 17 6,809 (432 ) 6,377 WNC December 2012 16 2,500 (2,380 ) 120 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 $37,566 ($30,149 ) $7,417 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits: At December 31, 2016 , the scheduled maturities of certificates of deposit are as follows: (In Thousands) 2017 $97,675 2018 25,885 2019 6,610 2020 935 2021 424 Thereafter 186 Total $131,715 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 no CDARS certificates of deposits at December 31, 2016 and 2015 , respectively. At December 31, 2016 and 2015 , 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, 2016 and 2015 , the Company did not have any securities pledged to collateralize certificates of deposit from a public entity. At December 31, 2016 and 2015 , the Company held $2.5 million and $3.4 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) 2016 2015 2014 Interest-bearing demand accounts $67 $63 $59 Money market accounts 418 404 388 Savings accounts 489 470 511 Certificates of deposit $100,000 and greater 707 754 292 Certificates of deposit less than $100,000 189 248 169 Total $1,870 $1,939 $1,419 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, the Company's available borrowing line is $183.4 million , representing approximately 12% of total assets. Additional advances of up to 35% of eligible assets, or $534.3 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 outstanding FHLB advances of $4.3 million and $2.1 million as of December 31, 2016 and 2015, respectively, which were originated to match fund low income housing projects that qualify for long term fixed interest rates. The first advance is a $2.2 million FHLB Community Investment Program advance which was originated on March 22, 2013. 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, and a fixed rate of 3.12% . The other advance is a $2.3 million FHLB Community Investment Cash Advance Program advance that was originated in the second quarter of 2016. This advance has a twenty year term with a 30 year amortization period, which mirrors the term of the loan made to the borrower, and a fixed interest rate of 2.61% . Both of these FHLB advances are included in borrowings. The Federal Reserve Bank is holding $83.7 million of loans as collateral to secure available borrowing lines through the discount window of $46.0 million at December 31, 2016 . There were no discount window advances outstanding at December 31, 2016 and 2015 . The Company paid less than $1,000 in 2016 and 2015 in interest on this agreement. The Company is subject to further regulatory standards issued by the State of Alaska which, subject to certain exceptions, limit the amount of the Bank's outstanding debt to 15% of total assets or $227.4 million and $223.8 million at December 31, 2016 and 2015, respectively. Securities sold under agreements to repurchase were $27.6 million and $31.4 million , respectively, for December 31, 2016 and 2015 . The Company was paying an average rate of 0.11% and 0.10% on these agreements at December 31, 2016 and 2015 , respectively. The average balance outstanding of securities sold under agreement to repurchase during 2016 and 2015 was $27.2 million and $23.7 million , respectively, and the maximum outstanding at any month-end was $30.5 million and $37.1 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, 2016 , are as follows: (In Thousands) 2017 $27,681 2018 101 2019 104 2020 108 2021 111 Thereafter 3,840 Total $31,945 The Company recognized interest expense of $157,000 , $469,000 , and $184,000 in 2016 , 2015 , and 2014 , respectively. The average interest rates paid on long-term debt in the same periods was 2.82% , 2.52% , and 3.51% , respectively. |
Junior Subordinated Debentures
Junior Subordinated Debentures | 12 Months Ended |
Dec. 31, 2016 | |
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 4.06% at December 31, 2016 . The interest cost to the Company on these debentures was $319,000 , $289,000 , and $274,000 in 2016 , 2015 , and 2014 , 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 2.33% at December 31, 2016 . The interest cost to the Company on these debentures was $215,000 , $174,000 , and $163,000 in 2016 , 2015 , and 2014 , 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, 2016 | |
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 $841,000 , $759,000 , and $774,000 , in 2016 , 2015 , and 2014 , 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 $190,000 and $172,000 in 2016 and 2015, respectively, 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 $299,000 , $228,000 , and $184,000 , in 2016 , 2015 , and 2014 , respectively. These expenses are included in salaries and other personnel expense in the Consolidated Statements of Income. At December 31, 2016 and 2015 , the balance of the accrued liability for this plan was included in other liabilities and totaled $2.6 million and $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 $673,000 and $692,000 in 2016 and 2015, respectively, and $87,000 in December 2014. RML's recorded obligation under the SERP amounted to $2.9 million at December 31, 2016 and 2015, 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 $199,000 in 2016, an increase of $99,000 in 2015, and an increase in its liability of $140,000 in 2014. These expenses are included in salaries and other personnel expense in the Consolidated Statements of Income. At December 31, 2016 and 2015 , the balance of the accrued liability for this plan was included in other liabilities and totaled $1.6 million and $1.4 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 $1.1 million, $1.2 million, and $1 million for 2016 , 2015 , and 2014 , 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 2017 Annual Shareholders’ Meeting and is incorporated into this report by reference. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases: Rental expense under leases for equipment and premises was $2.8 million, $2.8 million, and $1.3 million in 2016 , 2015 , and 2014 , respectively. The Company's required minimum rental payments on non-cancelable leases as of December 31, 2016 , are as follows: (In Thousands) 2017 $2,658 2018 2,461 2019 2,080 2020 1,822 2021 1,830 Thereafter 11,094 Total $21,945 Rental income under leases was $424,000 , $447,000 and $260,000 in 2016 , 2015 , and 2014 , respectively. The Company's future required minimum rental receipts on non-cancelable leases as of December 31, 2016 , are as follows: (In Thousands) 2017 $411 2018 400 2019 407 2020 414 2021 242 Thereafter — Total $1,874 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 $175,000 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. 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. Certain commitments are collateralized. We apply the same credit standards to these commitments as in all of our lending activities and include these commitments in our lending risk evaluations. 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) 2016 2015 Off-balance sheet commitments: Commitments to extend credit $236,624 $222,387 Commitments to originate loans held for sale $62,421 $71,820 Standby letters of credit $9,931 $6,399 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. Our exposure to credit loss under commitments to extend credit is represented by the amount of these commitments. 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 three 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. Total unfunded commitments were $309 million and $300.6 million at December 31, 2016 and 2015 , respectively. The Company does not expect that all of these commitments are likely to be fully drawn upon at any one time. 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 $122,000 and $114,000 as of December 31, 2016 and 2015 , respectively. Capital Expenditures and Commitments: The Company entered into a contract with a new core banking systems vendor in the third quarter of 2016. Conversion to the new system is expected to occur in the second quarter of 2017. Operating costs after conversion to the new system are expected to remain relatively consistent with current operating costs; however, the Company expects to incur additional expenses between $1.7 million and $2.0 million in 2017 related to this conversion primarily due to a temporary increase in staffing levels in order to facilitate a successful conversion. There were no other material changes outside of the ordinary course of business to any of our material contractual obligations during 2016. At December 31, 2016, the Company has capital commitments of $61,000 related to the planned improvements to the Company’s corporate office building. The Company expects these capital expenditures to be incurred in 2017. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2016 | |
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 $301,000 and $216,000 in available for sale securities to collateralize fair value shortfalls on interest rate swap agreements as of December 31, 2016 and 2015, respectively. The Company had interest rate swaps with an aggregate notional amount of $18.9 million and $21.3 million at December 31, 2016 and December 31, 2015 , respectively. At December 31, 2016 , the notional amount of interest rate swaps is made up of two variable to fixed rate swaps to commercial loan customers totaling $9.5 million , and two fixed to variable rate swaps with a counterparty totaling $9.5 million . Changes in fair value from these four interest rate swaps offset each other in 2016 and 2015 . The Company did not recognize any fee income related to interest rate swaps in 2016 , 2015 , or 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 at specific rates; the value of these commitments are detailed in the table below as "interest rate lock commitments". The Company also hedges the interest rate risk associated with its residential mortgage loan commitments, which are referred to as "retail interest rate contract" in the table below. 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, 2016 and 2015, RML had commitments to originate mortgage loans held for sale totaling $62.4 million and $71.3 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, 2016 and December 31, 2015 : (In thousands) Asset Derivatives December 31, 2016 December 31, 2015 Balance Sheet Location Fair Value Fair Value Commercial interest rate swaps Other assets $71 $125 Interest rate lock commitments Other assets 1,137 1,514 Total $1,208 $1,639 (In thousands) Liability Derivatives December 31, 2016 December 31, 2015 Balance Sheet Location Fair Value Fair Value Commercial interest rate swaps Other liabilities $71 $125 Retail interest rate contracts Other liabilities 78 91 Total $149 $216 The following table presents the gains of derivatives not designated as hedging instruments at December 31, 2016 and 2015: (In thousands) Income Statement Location December 31, 2016 December 31, 2015 Interest rate contracts Mortgage banking income ($530 ) ($422 ) Interest rate lock commitments Mortgage banking income (367 ) 626 Total ($897 ) $204 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, 2016 and 2015: December 31, 2016 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 Commercial interest rate swaps $71 $— $71 $— $— $71 Liability Derivatives Commercial interest rate swaps $71 $— $71 $— $71 $— Retail interest rate contracts 78 — 78 — — 78 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 Commercial interest rate swaps $125 $— $125 $— $— $125 Liability Derivatives Commercial interest rate swaps $125 $— $125 $— $125 $— Retail interest rate contracts 91 — 91 — — 91 |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2016 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Common Stock | Common Stock Quarterly cash dividends were paid aggregating to $5.4 million , $5.1 million , and $4.8 million , or $0.78 per share, $0.74 per share, and $0.70 per share, in 2016 , 2015 , and 2014 , respectively. On February 23, 2017 , the Board of Directors declared a $0.21 per share cash dividend payable on March 17, 2017 , to shareholders of record on March 9, 2017 . 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, 2016 , 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 2016 and 2015 . |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , 2015 , and 2014 : Stock Options: 2016 2015 2014 Grant date fair value $6.31 $7.01 $6.73 Expected life of options 8 years 8 years 8 years Risk-free interest rate 2.15 % 2.17 % 2.21 % Dividend yield rate 2.85 % 2.64 % 2.64 % Price volatility 27.37 % 28.63 % 28.93 % The following table summarizes stock option activity during 2016 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life, in Years Outstanding at January 1, 2016 199,747 $23.02 Granted 23,362 28.10 Forfeited (11,516 ) 25.94 Exercised (37,836 ) 22.38 Outstanding at December 31, 2016 173,757 $23.65 4.94 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, 2016 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, 2016 . This amount changes based on the fair value of the Company’s stock. The total intrinsic value of options outstanding and exercisable as of December 31, 2016 , 2015 , and 2014 was $1.2 million , $794,000 , and $760,000 , respectively. The total intrinsic value of options exercised for the years ended December 31, 2016 , 2015 , and 2014 was $208,000 , $82,000 , and $224,000 , respectively. The Company allows stock options to be exercised through cash or cashless transactions. Cashless stock option exercises require a portion of the options exercised to be net settled in satisfaction of the exercise price and applicable tax withholding requirements. In 2016 , 2015 , and 2014 the Company received cash of zero , $169,000 , and $168,000 , respectively, for cash stock option exercises. In 2016 , 2015 , and 2014 the Company net settled $847,000 , $201,000 , and $729,000 respectively, for cashless stock option exercises. The Company withheld $1.1 million , $358,000 , and $872,000 to pay for stock option exercises or income taxes that resulted from the exercise of stock options in 2016 , 2015 , and 2014 , respectively. For the year ended December 31, 2016 , 2015 and 2014 , the Company recognized $207,000 , $96,000 , and $68,000 , respectively, in stock option compensation expense as a component of salaries and other personnel expense. As of December 31, 2016 there was approximately $287,000 of total unrecognized compensation expense related to non-vested options which is expected to be recognized over the weighted-average vesting period of 2.2 years. Restricted Stock Units: Under the 2014 Plan and previous plans, 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 2016 : Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life, in Years Outstanding at January 1, 2016 62,987 $26.69 Granted 26,058 28.10 Vested (19,432 ) 23.74 Forfeited (4,712 ) 28.09 Outstanding at December 31, 2016 64,901 $28.04 1.94 The total intrinsic value of restricted stock units vested for the years ended December 31, 2016 , 2015 , and 2014 was $501,000 , $510,000 , and $438,000 , respectively. For the year ended December 31, 2016 , 2015 and 2014 , the Company recognized $571,000 , $512,000 , and $292,000 , respectively, in restricted stock unit compensation expense as a component of salaries and other personnel expense. As of December 31, 2016 , 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, 2016 | |
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 Tier 1 capital, total 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, 2016 , 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 phase in 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. 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, 2016 and 2015 , 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, 2016: Common equity tier 1 capital (to risk-weighted assets) $171,190 13.20 % $58,360 ≥ 4.5 % NA NA Total Capital (to risk-weighted assets) $204,927 15.80 % $103,761 ≥ 8 % NA NA Tier I Capital (to risk-weighted assets) $188,658 14.54 % $77,851 ≥ 6 % NA NA Tier I Capital (to average assets) $188,658 12.59 % $59,939 ≥ 4 % NA NA As of December 31, 2015: Common equity tier 1 capital (to risk-weighted assets) $154,464 12.01 % $57,876 ≥ 4.5 % NA NA Total Capital (to risk-weighted assets) $187,761 14.60 % $102,883 ≥ 8 % NA NA Tier I Capital (to risk-weighted assets) $171,653 13.34 % $77,205 ≥ 6 % NA NA Tier I Capital (to average assets) $171,653 11.20 % $61,305 ≥ 4 % NA NA Northrim Bank Actual Adequately-Capitalized Well-Capitalized (In Thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016: Common equity tier 1 capital (to risk-weighted assets) $168,529 13.07 % $58,025 ≥ 4.5 % $83,813 ≥ 6.5 % Total Capital (to risk-weighted assets) $184,695 14.33 % $103,110 ≥ 8 % $128,887 ≥ 10 % Tier I Capital (to risk-weighted assets) $168,529 13.07 % $77,366 ≥ 6 % $103,155 ≥ 8 % Tier I Capital (to average assets) $168,529 11.30 % $59,656 ≥ 4 % $74,570 ≥ 5 % 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 % |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes At December 31, 2016 and 2015 , the Company had $1.8 million and $878,000 in total taxes receivable, respectively, included in other assets. The Company realized $3.5 million , $2.4 million , and $1.3 million in tax credits related to its investments in low income housing tax credit partnerships for 2016 , 2015 , and 2014 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 2016: Federal $2,874 ($281 ) $2,593 State 674 (83 ) 591 Amortization of investment in low income housing tax credit partnerships 2,868 — 2,868 Total $6,416 ($364 ) $6,052 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 The actual expense for 2016 , 2015 , and 2014 , differs from the “expected” tax expense (computed by applying the U.S. Federal Statutory Tax Rate of 35% for the year ended December 31, 2016 , 2015 , and 2014 ) as follows: (In Thousands) 2016 2015 2014 Computed “expected” income tax expense $7,365 $8,552 $8,646 State income taxes, net 384 794 886 Non-deductible merger expenses — — 130 Tax-exempt interest on investment securities (566 ) (507 ) (415 ) Tax-exempt gain on purchase of mortgage affiliate — — (1,050 ) Amortization of investment in low income housing tax credit partnerships 2,868 2,684 1,337 Low income housing credits (3,540 ) (2,446 ) (1,298 ) Other (459 ) (293 ) (63 ) Total $6,052 $8,784 $8,173 The components of the net deferred tax asset are as follows: (In Thousands) 2016 2015 2014 Deferred Tax Asset: Allowance for loan losses $7,717 $7,082 $5,900 Loan fees, net of costs 1,823 1,896 1,871 Depreciation and amortization 31 (64 ) (60 ) Other real estate owned 123 46 50 Deferred compensation 2,112 2,005 1,691 Net operating loss carryforwards — 73 589 Equity compensation 544 578 502 Loan discount 326 476 1,003 Fair market value adjustment on certificates of deposit 247 283 321 Unrealized loss on available-for-sale investment securities 195 235 — Other 1,455 1,380 1,636 Total Deferred Tax Asset $14,573 $13,990 $13,503 Deferred Tax Liability: Unrealized gain on available-for-sale investment securities $— $— ($173 ) Intangible amortization (2,804 ) (2,494 ) (2,206 ) Mortgage servicing rights (415 ) (415 ) — FHLB stock repurchase and dividends (686 ) (686 ) (306 ) Other (404 ) (456 ) (731 ) Total Deferred Tax Liability ($4,309 ) ($4,051 ) ($3,416 ) Net Deferred Tax Asset $10,264 $9,939 $10,087 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 of December 31, 2016 , the Company had no unrecognized tax benefits. There were no amounts related to interest and penalties recognized for the years ended December 31, 2016 , 2015 , and 2014 . The tax years subject to examination by federal and state taxing authorities are the years ending December 31, 2016 , 2015 , 2014 and 2013 . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
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. Accrued liability, RML acquisition payments: The carrying value of the accrued liability for estimated acquisition payments represents management's estimate of amounts owed to the sellers that are earned, but unpaid, as of the balance sheet date. Adjustments to the liability are reported in other operating expense. The fair value for this liability represents management's estimate of the total amount owed to the sellers that is earned as of the balance sheet date plus management's estimate of amounts that will be earned and paid to the sellers under the terms of the acquisition RML agreement for future periods. The estimate is based on management's assessment of expected pre-tax income at RML over the remaining earn out period. Inputs to this assessment include the general economic conditions in our markets that impact mortgage loan originations, current and anticipated trends in local market demand for mortgage, including interest rates, and RML's estimated market share. 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, 2016 , 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, 2016 December 31, 2015 (In Thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Level 1 inputs: Cash, due from banks and deposits in other banks $50,551 $50,551 $58,673 $58,673 Investment securities 43,486 43,486 43,033 43,033 Level 2 inputs: Investment securities 288,632 288,655 248,983 249,039 Investment in Federal Home Loan Bank Stock 1,965 1,965 1,816 1,816 Accrued interest receivable 3,734 3,734 3,620 3,620 Commercial interest rate swaps 71 71 125 125 Level 3 inputs: Loans and loans held for sale 1,018,611 1,026,350 1,031,340 1,033,551 Purchased receivables, net 20,491 20,491 13,326 13,326 Interest rate lock commitments 1,137 1,137 1,514 1,514 Mortgage servicing rights 4,157 4,157 1,654 1,654 Financial liabilities: Level 2 inputs: Deposits $1,267,653 $1,266,995 $1,240,792 $1,240,223 Securities sold under repurchase agreements 27,607 27,607 31,420 31,420 Borrowings 4,338 4,186 2,120 2,101 Accrued interest payable 64 64 56 56 Commercial interest rate swaps 71 71 125 125 Retail interest rate contracts 78 78 91 91 Level 3 inputs: Accrued liability, RML acquisition payments 186 4,500 6,624 6,624 Junior subordinated debentures 18,558 18,398 18,558 17,433 Unrecognized financial instruments: Commitments to extend credit (1) $236,624 $2,366 $222,387 $2,224 Standby letters of credit (1) 9,931 99 6,399 64 (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, 2016 Assets: Available for sale securities U.S. Treasury and government sponsored entities $263,361 $30,063 $233,298 $— Municipal securities 18,157 — 18,157 — U.S. Agency mortgage-backed securities 2 — 2 — Corporate bonds 44,732 8,456 36,276 — Preferred stock 4,967 4,967 — — Total available for sale securities $331,219 $43,486 $287,733 $— Commercial interest rate swaps $71 $— $71 $— Interest rate lock commitments 1,137 — — 1,137 Mortgage servicing rights 4,157 — — 4,157 Total other assets $5,365 $— $71 $5,294 Liabilities: Commercial interest rate swaps $71 $— $71 $— Retail interest rate contracts 78 — 78 — Total other liabilities $149 $— $149 $— 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 $— Commercial interest rate swaps 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: Commercial interest rate swaps $125 $— $125 $— Retail interest rate contracts 91 — 91 — Total other liabilities $216 $— $216 $— 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, 2016 and 2015 : (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, 2016 Interest rate lock commitments $1,514 ($2,063 ) $20,612 ($18,926 ) $1,137 $1,137 Mortgage servicing rights 1,654 (526 ) 3,029 — 4,157 — Total $3,168 ($2,589 ) $23,641 ($18,926 ) $5,294 $1,137 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 For 2016 and 2015 , 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, 2016 Loans measured for impairment $9,222 $— $— $9,222 $270 Other real estate owned 1,700 — — 1,700 187 Total $10,922 $— $— $10,922 $457 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 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, 2016 : Financial Instrument Valuation Technique Unobservable Input Weighted Average or Rate Range Loans measured for impairment In-house valuation of collateral Discount rate 49% - 100% Discounted cash flow Discount rate 7 % Other real estate owned Fair value of collateral Estimated capital costs to complete improvements 11.50% - 25% Interest rate lock commitment External pricing model Pull through rate 92.75 % Mortgage servicing rights Discounted cash flow Constant prepayment rate 11.52% - 21.29% Discount rate 9.21% - 10.75% |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, 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, 2016 (In Thousands) Community Banking Home Mortgage Lending Consolidated Interest income $56,986 $1,932 $58,918 Interest expense 1,739 822 2,561 Net interest income 55,247 1,110 56,357 Provision for loan losses 2,298 — 2,298 Other operating income 13,756 29,507 43,263 Compensation expense - RML acquisition payments 4,775 — 4,775 Other operating expense 48,610 22,895 71,505 Income before provision for income taxes 13,320 7,722 21,042 Provision for income taxes 2,867 3,185 6,052 Net income 10,453 4,537 14,990 Less: net income attributable to the noncontrolling interest 579 — 579 Net income attributable to Northrim BanCorp, Inc. $9,874 $4,537 $14,411 Total assets $1,459,950 $66,590 $1,526,540 Loans held for sale $— $43,596 $43,596 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 for loan losses 1,754 — 1,754 Other operating income 14,995 29,613 44,608 Compensation expense, RML acquisition payments 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 16,754 3,280 20,034 Other operating expense 45,050 1,873 46,923 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, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company Information | Parent Company Information Balance Sheets at December 31, 2016 2015 (In Thousands) Assets Cash and cash equivalents $11,963 $10,258 Investment securities available for sale 4,967 3,524 Investment in Northrim Bank 184,511 178,905 Investment in NISC 1,487 1,474 Investment in NCT1 248 248 Investment in NST2 310 310 Other assets 2,248 1,184 Total Assets $205,734 $195,903 Liabilities Junior subordinated debentures $18,558 $18,558 Other liabilities 582 310 Total Liabilities 19,140 18,868 Shareholders' Equity Common stock 6,898 6,877 Additional paid-in capital 62,952 62,420 Retained earnings 117,141 108,150 Accumulated other comprehensive loss (397 ) (412 ) Total Shareholders' Equity 186,594 177,035 Total Liabilities and Shareholders' Equity $205,734 $195,903 Statements of Income for Years Ended: 2016 2015 2014 (In Thousands) Income Interest income $369 $116 $197 Equity in undistributed earnings from Northrim Bank 15,301 18,865 19,358 Equity in undistributed earnings from NISC 95 140 167 Other income — 175 30 Total Income $15,765 $19,296 $19,752 Expense Interest expense 534 463 451 Administrative and other expenses 2,382 2,191 3,243 Total Expense 2,916 2,654 3,694 Income Before Benefit from Income Taxes 12,849 16,642 16,058 Benefit from income taxes (1,562 ) (1,141 ) (1,350 ) Net Income $14,411 $17,783 $17,408 Statements of Cash Flows for Years Ended: 2016 2015 2014 (In Thousands) Operating Activities: Net income $14,411 $17,783 $17,408 Adjustments to Reconcile Net Income to Net Cash: Equity in undistributed earnings from subsidiaries (15,396 ) (19,005 ) (19,525 ) Stock-based compensation 778 608 360 Changes in other assets and liabilities (1,458 ) (298 ) (241 ) Net Cash Used from Operating Activities (1,665 ) (912 ) (1,998 ) Investing Activities: Purchases of investment securities available for sale (1,373 ) (3,549 ) — 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 10,115 9,842 (3,000 ) Net Cash Provided by Investing Activities 8,742 9,291 3,367 Financing Activities: Dividends paid to shareholders (5,372 ) (5,117 ) (4,750 ) Proceeds from issuance of common stock and excess tax benefits — 106 150 Net Cash Used from Financing Activities (5,372 ) (5,011 ) (4,600 ) Net change in Cash and Cash Equivalents 1,705 3,368 (3,231 ) Cash and Cash Equivalents at beginning of year 10,258 6,890 10,121 Cash and Cash Equivalents at end of year $11,963 $10,258 $6,890 |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) 2016 Quarter Ended Dec. 31 Sept. 30 June 30 March 31 (In Thousands Except Per Share Amounts) Total interest income $14,522 $14,860 $14,718 $14,818 Total interest expense 631 647 639 644 Net interest income 13,891 14,213 14,079 14,174 Provision for loan losses 743 652 200 703 Other operating income 10,359 11,935 11,864 9,105 Compensation expense, RML acquisition payments 708 3,250 687 130 Other operating expense 17,646 17,936 18,682 17,241 Income before provision for income taxes 5,153 4,310 6,374 5,205 Provision for income taxes 1,458 1,027 1,868 1,699 Net Income 3,695 3,283 4,506 3,506 Less: Net income attributable to the noncontrolling interest 105 188 156 130 Net income attributable to Northrim Bancorp, Inc. $3,590 $3,095 $4,350 $3,376 Earnings per share, basic $0.52 $0.45 $0.63 $0.49 Earnings per share, diluted $0.51 $0.44 $0.63 $0.48 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 Compensation expense, RML acquisition payments 1,225 780 587 1,502 Other operating expense 17,004 17,423 17,166 16,959 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 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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 other real estate owned (“OREO”), valuation of mortgage servicing rights, 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, 2016, 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, 2016 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: The Company designates loans held for sale as either fair value or the lower of cost or fair value at origination. 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. For the purpose of estimating the Allowance for Loan and Lease Losses, the Company has evaluated the credit quality of purchased non-credit-impaired loans separately from loans that were originated by the Company; however, purchased non-credit-impaired loans that have been identified as impaired subsequent to the merger are included in the Company's normal process for reporting impaired loans and calculation of a specific valuation allowance. Purchases of non-credit-impaired loans that have not been identified as impaired subsequent to the merger are evaluated for significant changes subsequent to the merger to determine if the underlying credit quality of these loans would require a provision and establishment of an allowance specific to these loans. |
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 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. After foreclosure, 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 these partnerships in the form of tax credits and deductions that flow through to it as a limited partner. 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. |
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 entire financial assets or a participating interest in an entire financial asset 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. Our policy is to recognize interest and penalties on unrecognized tax benefits in “Provision for income taxes” in the Consolidated Statements of Income. |
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. |
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 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 is effective for the Company’s financial statements for annual and interim periods beginning on or after December 15, 2016, and the Company should apply the amendments retrospectively. The Company has determined that interest income is out of the scope of this new guidance, but is reviewing its other revenue sources for impact from this new guidance. While the assessment is not complete, 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. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about lease arrangements. ASU 2016-02 is effective for the Company’s financial statements for annual and interim periods beginning on or after December 15, 2018, and must be applied prospectively. The Company is currently evaluating how the adoption of this standard will impact the Company’s consolidated financial position and results of operations. The Company is reviewing its existing lease portfolio to determine the impact of the new accounting guidance on the financial statements, as well as the impact to regulatory capital and risk-weighted assets. The Company does not expect the new accounting guidance to have a material impact on its consolidated results of operations. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Option in Debt Instruments (“ASU 2016-06”). ASU 2016-06 simplifies the embedded derivative analysis for debt instruments containing contingent call or put options by removing the requirement to assess whether a contingent event is related to interest rates or credit risks. ASU 2016-06 is effective for the Company's financial statements for annual and interim periods beginning on or after December 15, 2016, and interim periods within those fiscal years. 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 March 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting (“ASU 2016-07”). ASU 2016-07 eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. ASU 2016-07 requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. ASU 2016-17 requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. ASU 2016-07 is effective for the Company’s financial statements for annual and interim periods beginning on or after December 15, 2016, 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 March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for the Company’s financial statements for annual and interim periods beginning on or after December 15, 2016, 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 June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (“ASU 2016-13”). ASU 2016-13 requires a financial asset (or a group of financial assets) that is measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset or assets to present the net carrying value at the amount expected to be collected on the financial asset. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination ("PCD assets") that are measured at amortized cost basis is determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Only subsequent changes in the allowance for credit losses are recorded as a credit loss expense for these assets. Interest income for PCD assets should be recognized based on the effective interest rate, excluding the discount embedded in the purchase price that is attributable to the acquirer’s assessment of credit losses at acquisition. ASU 2016-13 requires credit losses relating to available-for-sale debt securities to be recorded through an allowance for credit losses. Available-for-sale accounting recognizes that value may be realized either through collection of contractual cash flows or through sale of the security. Therefore, the amendments limit the amount of the allowance for credit losses to the amount by which fair value is below amortized cost because the classification as available for sale is premised on an investment strategy that recognizes that the investment could be sold at fair value, if cash collection would result in the realization of an amount less than fair value. The allowance for credit losses for purchased available-for-sale securities with a more-than-insignificant amount of credit deterioration since origination is determined in a similar manner to other available-for-sale debt securities; however, the initial allowance for credit losses is added to the purchase price rather than reported as a credit loss expense. Only subsequent changes in the allowance for credit losses are recorded in credit loss expense. Interest income should be recognized based on the effective interest rate, excluding the discount embedded in the purchase price. ASU 2016-13 is effective for the Company’s financial statements for annual and interim periods beginning on or after December 15, 2019, and must be applied prospectively. The Company is currently evaluating the impact that the adoption of this standard will have on the Company’s consolidated financial position and results of operations. The Company has formed an implementation team and is in the process of reviewing different software systems which will assist the Company with the various calculations, modeling, and other changes anticipated in order to comply with the standard. An estimate of the impact of this standard on the Company's consolidated financial position and results of operations has not yet been determined, however, the impact on the Company's management of our loan portfolio is expected to be significant. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 provides guidance on eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for the Company’s financial statements for annual and interim periods beginning on or after December 15, 2017, and must be applied retrospectively for each period presented. 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 October 2016, the FASB issued ASU 2016-17, Interests Held through Related Parties that are under Common Control (“ASU 2016-17”). ASU 2016-17 amends the consolidation guidance on how a reporting entity that is the single decision maker of a VIE should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The primary beneficiary of a VIE is the reporting entity that has a controlling financial interest in a VIE and, therefore, consolidates the VIE. A reporting entity has an indirect interest in a VIE if it has a direct interest in a related party that, in turn, has a direct interest in the VIE. ASU 2016-17 is effective for the Company’s financial statements for annual and interim periods beginning on or after December 15, 2016, and must be applied retrospectively for each period presented. 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 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (“ASU 2017-04”). ASU 2017-04 simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. ASU 2017-04 is effective for the Company’s financial statements for annual and interim periods beginning on or after December 15, 2019, and must be applied on a prospective basis. 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, 2016 | |
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) 2016 2015 2014 Net income attributable to Northrim BanCorp, Inc. $14,411 $17,783 $17,408 Basic weighted average common shares outstanding 6,884 6,859 6,761 Dilutive effect of potential common shares from awards granted under equity incentive program 91 89 91 Total 6,975 6,948 6,852 Earnings per common share Basic $2.09 $2.59 $2.57 Dilutive $2.06 $2.56 $2.54 |
Interest Bearing Deposits in 38
Interest Bearing Deposits in Other Banks (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 Interest bearing deposits at Federal Reserve Bank $15,734 $27,275 Interest bearing deposits at FHLB 31 108 Other interest bearing deposits at other institutions 301 301 Total $16,066 $27,684 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 Securities available for sale U.S. Treasury and government sponsored entities $264,267 $150 $1,056 $263,361 Municipal securities 18,184 26 53 18,157 U.S. Agency mortgage-backed securities 2 — — 2 Corporate bonds 44,437 295 — 44,732 Preferred stock 4,922 49 4 4,967 Total securities available for sale $331,812 $520 $1,113 $331,219 Securities held to maturity Municipal securities $899 $23 $— $922 Total securities held to maturity $899 $23 $— $922 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 |
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, 2016 and 2015 were as follows: Less Than 12 Months More Than 12 Months Total (In Thousands) Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses 2016: Securities Available for Sale U.S. Treasury and government sponsored entities $180,638 $1,051 $489 $5 $181,127 $1,056 Corporate bonds — — — — — — Municipal securities 11,533 33 1,786 20 13,319 53 Preferred stock — — 1,038 4 1,038 4 Total $192,171 $1,084 $3,313 $29 $195,484 $1,113 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 |
Schedule of Amortized Cost and Fair Value by Contractual Maturity | The amortized cost and fair values of debt securities at December 31, 2016 , 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 $49,997 $50,041 0.96 % 1-5 years $214,270 $213,320 1.25 % Total $264,267 $263,361 1.20 % U.S. Agency mortgage-backed securities 1-5 years $2 $2 (5.90 )% Total $2 $2 (5.90 )% Corporate bonds Within 1 year $9,793 $9,806 1.60 % 1-5 years 26,208 26,370 1.67 % 5-10 years 8,436 8,556 2.14 % Total $44,437 $44,732 1.74 % Preferred stock Over 10 years $4,922 $4,967 6.41 % Total $4,922 $4,967 6.41 % Municipal securities Within 1 year $4,325 $4,323 1.34 % 1-5 years 13,267 13,278 2.32 % 5-10 years 1,491 1,478 4.78 % Total $19,083 $19,079 2.29 % |
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, 2016 , 2015 , and 2014 , respectively, are as follows: (In Thousands) Proceeds Gross Gains Gross Losses 2016 Available for sale securities $5,785 $12 $23 2015 Available for sale securities $20,522 $271 $— 2014 Available for sale securities $24,102 $465 $4 |
Summary of Interest Income on Available-For-Sale Investment Securities | A summary of interest income for the years ending December 31, 2016 , 2015 , and 2014 on available for sale investment securities is as follows: (In Thousands) 2016 2015 2014 U.S. Treasury and government sponsored entities $2,661 $2,378 $1,769 U.S. Agency mortgage-backed securities 4 25 25 Other 948 670 857 Total taxable interest income $3,613 $3,073 $2,651 Municipal securities $282 $320 $391 Total tax-exempt interest income $282 $320 $391 Total $3,895 $3,393 $3,042 |
Loans and Credit Quality (Table
Loans and Credit Quality (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 AQR Pass $257,639 $26,061 $72,159 $135,359 $355,903 $44,733 $22,568 $25,151 $939,573 AQR Special Mention 1,950 — — 57 — — 501 78 2,586 AQR Substandard 18,589 — — 16,762 698 669 520 52 37,290 Subtotal $278,178 $26,061 $72,159 $152,178 $356,601 $45,402 $23,589 $25,281 $979,449 Less: Unearned origination fees, net of origination costs (4,434 ) Total loans $975,015 December 31, 2015 AQR Pass $257,293 $44,488 $74,956 $127,226 $347,157 $45,884 $26,015 $28,882 $951,901 AQR Special Mention 536 — — — — 91 171 10 808 AQR Substandard 14,612 — — 16,515 359 697 487 20 32,690 Subtotal $272,441 $44,488 $74,956 $143,741 $347,516 $46,672 $26,673 $28,912 $985,399 Less: Unearned origination fees, net of origination costs (4,612 ) Total loans $980,787 |
Nonaccrual Loans By Segment | Nonaccrual loans at the periods indicated, by segment are presented below: (In Thousands) 30-59 Days 60-89 Days Greater Than Current Total December 31, 2016 Commercial $8,750 $— $4,208 $542 $13,500 Real estate term owner occupied — — — 29 29 Real estate term non-owner occupied — — — 197 197 Consumer secured by 1st deeds of trust — — 167 — 167 Total nonaccrual loans 8,750 — 4,375 768 13,893 Government guarantees on nonaccrual loans — — (1,413 ) — (1,413 ) Net nonaccrual loans $8,750 $— $2,962 $768 $12,480 December 31, 2015 Commercial $— $82 $290 $2,641 $3,013 Real estate term owner occupied — — — 38 38 Real estate term non-owner occupied — — 108 251 359 Consumer secured by 1st deeds of trust — — — 256 256 Consumer other — — 20 — 20 Total nonaccrual loans — 82 418 3,186 3,686 Government guarantees on nonaccrual loans — — — (1,561 ) (1,561 ) Net nonaccrual loans $— $82 $418 $1,625 $2,125 |
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 Total Past Nonaccrual Current Total December 31, 2016 Commercial $— $141 $404 $545 $13,500 $264,133 $278,178 Real estate construction one-to-four family — — — — — 26,061 26,061 Real estate construction other — — — — — 72,159 72,159 Real estate term owner occupied 887 — — 887 29 151,262 152,178 Real estate term non-owner occupied — — — — 197 356,404 356,601 Real estate term other — — — — — 45,402 45,402 Consumer secured by 1st deed of trust 390 518 — 908 167 22,514 23,589 Consumer other 171 80 52 303 — 24,978 25,281 Subtotal $1,448 $739 $456 $2,643 $13,893 $962,913 $979,449 Less: Unearned origination fees, net of origination costs (4,434 ) Total $975,015 December 31, 2015 Commercial $242 $21 $— $263 $3,013 $269,165 $272,441 Real estate construction one-to-four family — — — — — 44,488 44,488 Real estate construction other — — — — — 74,956 74,956 Real estate term owner occupied — — — — 38 143,703 143,741 Real estate term non-owner occupied — — — — 359 347,157 347,516 Real estate term other 289 — — 289 — 46,383 46,672 Consumer secured by 1st deed of trust 568 — — 568 256 25,849 26,673 Consumer other 30 — — 30 20 28,862 28,912 Subtotal $1,129 $21 $— $1,150 $3,686 $980,563 $985,399 Less: Unearned origination fees, net of origination costs (4,612 ) Total $980,787 |
Impaired Loans | The following table presents information about impaired loans by class for the years ended December 31, 2016 and 2015 : (In Thousands) Recorded Investment Unpaid Principal Balance Related Allowance December 31, 2016 With no related allowance recorded Commercial - AQR special mention $223 $223 $— Commercial - AQR substandard 9,213 9,893 — Real estate construction other - AQR substandard — — — Real estate term owner occupied - AQR pass 252 252 — Real estate term owner occupied - AQR substandard 16,694 16,694 — Real estate term non-owner occupied - AQR pass 391 391 — Real estate term non-owner occupied - AQR substandard 693 693 — Real estate term other - AQR pass 633 633 — Real estate term other - AQR substandard 669 669 — Consumer secured by 1st deeds of trust - AQR special mention 143 143 — Consumer secured by 1st deeds of trust - AQR substandard 472 488 — Consumer other - AQR substandard 52 52 — Subtotal $29,435 $30,131 $— With an allowance recorded Commercial - AQR substandard $9,221 $9,221 $614 Subtotal $9,221 $9,221 $614 Commercial - AQR special mention $223 $223 $— Commercial - AQR substandard 18,434 19,114 614 Real estate construction other - AQR substandard — — — Real estate term owner-occupied - AQR pass 252 252 — Real estate term owner-occupied - AQR substandard 16,694 16,694 — Real estate term non-owner occupied - AQR pass 391 391 — Real estate term non-owner occupied - AQR substandard 693 693 — Real estate term other - AQR pass 633 633 — Real estate term other - AQR substandard 669 669 — Consumer secured by 1st deeds of trust - AQR special mention 143 143 — Consumer secured by 1st deeds of trust - AQR substandard 472 488 — Consumer other - AQR substandard 52 52 — Total $38,656 $39,352 $614 (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 13,333 13,746 — 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 — Real estate term other - AQR substandard 697 697 — 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 14,394 14,807 344 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 — Real estate term other - AQR substandard 697 697 — Consumer secured by 1st deeds of trust - AQR pass 76 76 — Consumer secured by 1st deeds of trust - AQR substandard 472 472 — Total $34,640 $35,053 $344 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, 2016 and 2015 , respectively: Year Ended December 31, 2016 2015 (In Thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded Commercial - AQR special mention $170 $13 $163 $13 Commercial - AQR substandard 15,522 840 9,996 378 Real estate construction one-to-four family - AQR substandard 988 — — — Real estate construction other - AQR pass — — 557 72 Real estate construction other - AQR substandard 1,431 — 1,431 — Real estate term owner occupied - AQR pass 378 34 696 63 Real estate term owner occupied - AQR special mention — — 67 5 Real estate term owner occupied - AQR substandard 16,551 1,202 6,941 355 Real estate term non-owner occupied - AQR pass 442 91 521 75 Real estate term non-owner occupied - AQR special mention — — 1,080 97 Real estate term non-owner occupied - AQR substandard 599 28 1,141 — Real estate term other - AQR pass 627 58 179 13 Real estate term other - AQR special mention 43 4 68 6 Real estate term other - AQR substandard 683 55 816 50 Consumer secured by 1st deeds of trust - AQR pass 38 2 79 4 Consumer secured by 1st deeds of trust - AQR special mention 36 3 — — Consumer secured by 1st deeds of trust - AQR substandard 568 24 514 9 Consumer other - AQR substandard 13 — — — Subtotal $38,089 $2,354 $24,249 $1,140 With an allowance recorded Commercial - AQR substandard $2,451 $— $1,668 $— Real estate construction one-to-four family - AQR substandard 1,986 — — — Real estate term other - AQR substandard — — 70 — Consumer secured by 1st deeds of trust - AQR substandard 73 — — — Consumer other - AQR substandard — — 10 — Subtotal $4,510 $— $1,748 $— Total Commercial - AQR special mention $170 $13 $163 $13 Commercial - AQR substandard 17,973 840 11,664 378 Real estate construction one-to-four family - AQR substandard 2,974 — — — Real estate construction other - AQR pass — — 557 72 Real estate construction other - AQR substandard 1,431 — 1,431 — Real estate term owner-occupied - AQR pass 378 34 696 63 Real estate term owner-occupied - AQR special mention — — 67 5 Real estate term owner-occupied - AQR substandard 16,551 1,202 6,941 355 Real estate term non-owner occupied - AQR pass 442 91 521 75 Real estate term non-owner occupied - AQR special mention — — 1,080 97 Real estate term non-owner occupied - AQR substandard 599 28 1,141 — Real estate term other - AQR pass 627 58 179 13 Real estate term other - AQR special mention 43 4 68 6 Real estate term other - AQR substandard 683 55 886 50 Consumer secured by 1st deeds of trust - AQR pass 38 2 79 4 Consumer secured by 1st deeds of trust - AQR special mention 36 3 — — Consumer secured by 1st deeds of trust - AQR substandard 641 24 514 9 Consumer other - AQR substandard 13 — 10 — Total Impaired Loans $42,599 $2,354 $25,997 $1,140 |
Newly Restructured Loans | The following table identifies the portion of TDR balances as of December 31, 2016 that were restructured during 2016 : Accrual Status Nonaccrual Status Total Modifications (In Thousands) New Troubled Debt Restructurings Commercial - AQR substandard $4,234 $134 $4,368 Subtotal $4,234 $134 $4,368 Existing Troubled Debt Restructurings 1,897 9,954 11,851 Total $6,131 $10,088 $16,219 |
Newly Restructured Loans By Concession | The following table provides additional information about loans that were restructured in 2016 : (In Thousands) Number of Contracts Rate Modification Term Modification Payment Modification Combination Modification Total Modifications Pre-Modification Outstanding Recorded Investment: Commercial - AQR substandard 2 $— $135 $4,234 $— $4,369 Total 2 $— $135 $4,234 $— $4,369 Post-Modification Outstanding Recorded Investment: Commercial - AQR substandard 2 $— $134 $4,233 $— $4,367 Total 2 $— $134 $4,233 $— $4,367 |
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) 2016 2015 Balance, beginning of the year $117 $2,262 Loans made — — Repayments 27 2,145 Balance, end of year $90 $117 |
Allowance For Loan Losses (Tabl
Allowance For Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [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 2016 Balance, beginning of period $5,906 $854 $1,439 $1,657 $5,515 $628 $264 $397 $1,493 $18,153 Charge-Offs (903 ) (535 ) — — — — (36 ) (8 ) — (1,482 ) Recoveries 699 — — — — — — 29 — 728 Provision (benefit) (167 ) 231 26 701 1,338 191 85 (10 ) (97 ) 2,298 Balance, end of period $5,535 $550 $1,465 $2,358 $6,853 $819 $313 $408 $1,396 $19,697 Balance, end of period: Individually evaluated for impairment $614 $— $— $— $— $— $— $— $— $614 Balance, end of period: Collectively evaluated for impairment $4,921 $550 $1,465 $2,358 $6,853 $819 $313 $408 $1,396 $19,083 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 The following table sets forth information regarding changes in the purchased receivable reserve for the periods indicated: (In Thousands) 2016 2015 2014 Balance at beginning of year $181 $289 $273 Charge-offs — — (793 ) Recoveries — 30 105 Net recoveries (charge-offs) — 30 (688 ) Reserve for (recovery from) purchased receivables (10 ) (138 ) 704 Balance at end of year $171 $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, 2016 Balance, end of period $278,178 $26,061 $72,159 $152,178 $356,601 $45,402 $23,589 $25,281 $979,449 Balance, end of period: Individually evaluated for impairment $18,657 $— $— $16,946 $1,084 $1,302 $615 $52 $38,656 Balance, end of period: Collectively evaluated for impairment $259,521 $26,061 $72,159 $135,232 $355,517 $44,100 $22,974 $25,229 $940,793 December 31, 2015 Balance, end of period $272,441 $44,488 $74,956 $143,741 $347,516 $46,672 $26,673 $28,912 $985,399 Balance, end of period: Individually evaluated for impairment $14,551 $— $— $17,229 $825 $1,487 $548 $— $34,640 Balance, end of period: Collectively evaluated for impairment $257,890 $44,488 $74,956 $126,512 $346,691 $45,185 $26,125 $28,912 $950,759 |
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, 2016 Individually evaluated for impairment AQR Substandard $614 $614 $— $— $— $— $— $— $— $— Collectively evaluated for impairment: AQR Pass 17,628 4,867 550 1,465 2,358 6,853 819 310 406 — AQR Special Mention 56 51 — — — — — 3 2 — AQR Substandard 3 3 — — — — — — — — Unallocated 1,396 — — — — — — — — 1,396 $19,697 $5,535 $550 $1,465 $2,358 $6,853 $819 $313 $408 $1,396 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 |
Purchased Receivables (Tables)
Purchased Receivables (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 Purchased receivables $20,662 $13,507 Reserve for purchased receivable losses (171 ) (181 ) Total $20,491 $13,326 |
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 2016 Balance, beginning of period $5,906 $854 $1,439 $1,657 $5,515 $628 $264 $397 $1,493 $18,153 Charge-Offs (903 ) (535 ) — — — — (36 ) (8 ) — (1,482 ) Recoveries 699 — — — — — — 29 — 728 Provision (benefit) (167 ) 231 26 701 1,338 191 85 (10 ) (97 ) 2,298 Balance, end of period $5,535 $550 $1,465 $2,358 $6,853 $819 $313 $408 $1,396 $19,697 Balance, end of period: Individually evaluated for impairment $614 $— $— $— $— $— $— $— $— $614 Balance, end of period: Collectively evaluated for impairment $4,921 $550 $1,465 $2,358 $6,853 $819 $313 $408 $1,396 $19,083 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 The following table sets forth information regarding changes in the purchased receivable reserve for the periods indicated: (In Thousands) 2016 2015 2014 Balance at beginning of year $181 $289 $273 Charge-offs — — (793 ) Recoveries — 30 105 Net recoveries (charge-offs) — 30 (688 ) Reserve for (recovery from) purchased receivables (10 ) (138 ) 704 Balance at end of year $171 $181 $289 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2014 OREO (income) expense, net rental income and gains on sale: OREO operating expense $304 $224 $174 Impairment on OREO 187 361 56 Rental income on OREO (98 ) (80 ) (3 ) Gains on sale of OREO (295 ) (315 ) (643 ) Total $98 $190 ($416 ) |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 2015 Land $2,596 $2,600 Furniture and equipment 3-7 years 14,912 12,641 Tenant improvements 2-15 years 8,325 8,023 Buildings 39 years 37,683 39,233 Total Premises and Equipment 63,516 62,497 Accumulated depreciation and amortization (24,198 ) (22,280 ) Total Premises and Equipment, Net $39,318 $40,217 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Transfers and Servicing [Abstract] | |
Servicing Asset at Fair Value | The following table details the activity in the Company's mortgage servicing rights ("MSR") for the year indicated: (In thousands) 2016 2015 Balance, beginning of period $1,654 $1,010 Additions for new MSR capitalized 3,029 802 Changes in fair value: Due to changes in model inputs of assumptions (1) (214 ) 29 Other (2) (312 ) (187 ) Carrying value, December 31 $4,157 $1,654 (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, 2016 and 2015: (In thousands) December 31, 2016 December 31, 2015 Balance of loans serviced for others $272,442 $125,446 MSR as a percentage of serviced loans 1.53 % 1.32 % The following table outlines the key assumptions used in measuring the fair value of mortgage servicing rights as of December 31, 2016 and 2015: 2016 2015 Constant prepayment rate 11.58 % 10.54 % Discount rate 9.25 % 9.10 % |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets And Other Assets | A summary of intangible assets and other assets is as follows: (In Thousands) 2016 2015 Intangible assets: Goodwill $15,017 $22,334 Core deposit intangible 357 492 Trade name intangible 950 950 Total $16,324 $23,776 |
Future Amortization Expense | The future amortization expense required on these assets is as follows: (In Thousands) 2017 $100 2018 71 2019 59 2020 48 2021 37 Thereafter 43 Total $358 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | (In Thousands) 2016 2015 Other assets: Investment in Low Income Housing Partnerships $24,174 $20,233 Deferred taxes, net 10,264 9,939 Bank owned life insurance 6,181 5,887 Investment in equity method investments 4,560 4,573 Accrued interest receivable 3,734 3,620 Prepaid expenses 1,596 1,230 Taxes receivable 1,755 878 Rate lock derivative 1,137 1,514 Other assets 2,727 3,900 Total $56,128 $51,774 |
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 $2.9 million , $2.7 million , and $1.3 million in 2016 , 2015 , and 2014 , respectively. The Company expects to fund its remaining $7.4 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 $8,528 ($8,248 ) $280 R4 - Coronado March 2013 17 10,729 (10,089 ) 640 R4 - PJ33 June 2016 17 6,809 (432 ) 6,377 WNC December 2012 16 2,500 (2,380 ) 120 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 $37,566 ($30,149 ) $7,417 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Schedule of Deposit Maturity | Deposits: At December 31, 2016 , the scheduled maturities of certificates of deposit are as follows: (In Thousands) 2017 $97,675 2018 25,885 2019 6,610 2020 935 2021 424 Thereafter 186 Total $131,715 |
Schedule of Interest Expense on Deposit | Interest expense: Interest expense on deposits is presented below: (In Thousands) 2016 2015 2014 Interest-bearing demand accounts $67 $63 $59 Money market accounts 418 404 388 Savings accounts 489 470 511 Certificates of deposit $100,000 and greater 707 754 292 Certificates of deposit less than $100,000 189 248 169 Total $1,870 $1,939 $1,419 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , are as follows: (In Thousands) 2017 $27,681 2018 101 2019 104 2020 108 2021 111 Thereafter 3,840 Total $31,945 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , are as follows: (In Thousands) 2017 $2,658 2018 2,461 2019 2,080 2020 1,822 2021 1,830 Thereafter 11,094 Total $21,945 |
Schedule of Future Minimum Lease Rentals | The Company's future required minimum rental receipts on non-cancelable leases as of December 31, 2016 , are as follows: (In Thousands) 2017 $411 2018 400 2019 407 2020 414 2021 242 Thereafter — Total $1,874 |
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) 2016 2015 Off-balance sheet commitments: Commitments to extend credit $236,624 $222,387 Commitments to originate loans held for sale $62,421 $71,820 Standby letters of credit $9,931 $6,399 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and December 31, 2015 : (In thousands) Asset Derivatives December 31, 2016 December 31, 2015 Balance Sheet Location Fair Value Fair Value Commercial interest rate swaps Other assets $71 $125 Interest rate lock commitments Other assets 1,137 1,514 Total $1,208 $1,639 (In thousands) Liability Derivatives December 31, 2016 December 31, 2015 Balance Sheet Location Fair Value Fair Value Commercial interest rate swaps Other liabilities $71 $125 Retail interest rate contracts Other liabilities 78 91 Total $149 $216 |
Derivative Instruments, Gain (Loss) | The following table presents the gains of derivatives not designated as hedging instruments at December 31, 2016 and 2015: (In thousands) Income Statement Location December 31, 2016 December 31, 2015 Interest rate contracts Mortgage banking income ($530 ) ($422 ) Interest rate lock commitments Mortgage banking income (367 ) 626 Total ($897 ) $204 |
Offsetting Assets | The following table summarizes the derivatives that have a right of offset as of December 31, 2016 and 2015: December 31, 2016 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 Commercial interest rate swaps $71 $— $71 $— $— $71 Liability Derivatives Commercial interest rate swaps $71 $— $71 $— $71 $— Retail interest rate contracts 78 — 78 — — 78 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 Commercial interest rate swaps $125 $— $125 $— $— $125 Liability Derivatives Commercial interest rate swaps $125 $— $125 $— $125 $— Retail interest rate contracts 91 — 91 — — 91 |
Offsetting Liabilities | The following table summarizes the derivatives that have a right of offset as of December 31, 2016 and 2015: December 31, 2016 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 Commercial interest rate swaps $71 $— $71 $— $— $71 Liability Derivatives Commercial interest rate swaps $71 $— $71 $— $71 $— Retail interest rate contracts 78 — 78 — — 78 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 Commercial interest rate swaps $125 $— $125 $— $— $125 Liability Derivatives Commercial interest rate swaps $125 $— $125 $— $125 $— Retail interest rate contracts 91 — 91 — — 91 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , 2015 , and 2014 : Stock Options: 2016 2015 2014 Grant date fair value $6.31 $7.01 $6.73 Expected life of options 8 years 8 years 8 years Risk-free interest rate 2.15 % 2.17 % 2.21 % Dividend yield rate 2.85 % 2.64 % 2.64 % Price volatility 27.37 % 28.63 % 28.93 % |
Stock Options Activity | The following table summarizes stock option activity during 2016 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life, in Years Outstanding at January 1, 2016 199,747 $23.02 Granted 23,362 28.10 Forfeited (11,516 ) 25.94 Exercised (37,836 ) 22.38 Outstanding at December 31, 2016 173,757 $23.65 4.94 |
Restricted Stock Unit Activity | The following table summarizes restricted stock unit activity during 2016 : Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life, in Years Outstanding at January 1, 2016 62,987 $26.69 Granted 26,058 28.10 Vested (19,432 ) 23.74 Forfeited (4,712 ) 28.09 Outstanding at December 31, 2016 64,901 $28.04 1.94 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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. 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, 2016 and 2015 , 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, 2016: Common equity tier 1 capital (to risk-weighted assets) $171,190 13.20 % $58,360 ≥ 4.5 % NA NA Total Capital (to risk-weighted assets) $204,927 15.80 % $103,761 ≥ 8 % NA NA Tier I Capital (to risk-weighted assets) $188,658 14.54 % $77,851 ≥ 6 % NA NA Tier I Capital (to average assets) $188,658 12.59 % $59,939 ≥ 4 % NA NA As of December 31, 2015: Common equity tier 1 capital (to risk-weighted assets) $154,464 12.01 % $57,876 ≥ 4.5 % NA NA Total Capital (to risk-weighted assets) $187,761 14.60 % $102,883 ≥ 8 % NA NA Tier I Capital (to risk-weighted assets) $171,653 13.34 % $77,205 ≥ 6 % NA NA Tier I Capital (to average assets) $171,653 11.20 % $61,305 ≥ 4 % NA NA Northrim Bank Actual Adequately-Capitalized Well-Capitalized (In Thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016: Common equity tier 1 capital (to risk-weighted assets) $168,529 13.07 % $58,025 ≥ 4.5 % $83,813 ≥ 6.5 % Total Capital (to risk-weighted assets) $184,695 14.33 % $103,110 ≥ 8 % $128,887 ≥ 10 % Tier I Capital (to risk-weighted assets) $168,529 13.07 % $77,366 ≥ 6 % $103,155 ≥ 8 % Tier I Capital (to average assets) $168,529 11.30 % $59,656 ≥ 4 % $74,570 ≥ 5 % 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 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 2016: Federal $2,874 ($281 ) $2,593 State 674 (83 ) 591 Amortization of investment in low income housing tax credit partnerships 2,868 — 2,868 Total $6,416 ($364 ) $6,052 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 |
Reconciliation of Actual to Expected Tax Expense | The actual expense for 2016 , 2015 , and 2014 , differs from the “expected” tax expense (computed by applying the U.S. Federal Statutory Tax Rate of 35% for the year ended December 31, 2016 , 2015 , and 2014 ) as follows: (In Thousands) 2016 2015 2014 Computed “expected” income tax expense $7,365 $8,552 $8,646 State income taxes, net 384 794 886 Non-deductible merger expenses — — 130 Tax-exempt interest on investment securities (566 ) (507 ) (415 ) Tax-exempt gain on purchase of mortgage affiliate — — (1,050 ) Amortization of investment in low income housing tax credit partnerships 2,868 2,684 1,337 Low income housing credits (3,540 ) (2,446 ) (1,298 ) Other (459 ) (293 ) (63 ) Total $6,052 $8,784 $8,173 |
Components of Net Deferred Tax Asset | The components of the net deferred tax asset are as follows: (In Thousands) 2016 2015 2014 Deferred Tax Asset: Allowance for loan losses $7,717 $7,082 $5,900 Loan fees, net of costs 1,823 1,896 1,871 Depreciation and amortization 31 (64 ) (60 ) Other real estate owned 123 46 50 Deferred compensation 2,112 2,005 1,691 Net operating loss carryforwards — 73 589 Equity compensation 544 578 502 Loan discount 326 476 1,003 Fair market value adjustment on certificates of deposit 247 283 321 Unrealized loss on available-for-sale investment securities 195 235 — Other 1,455 1,380 1,636 Total Deferred Tax Asset $14,573 $13,990 $13,503 Deferred Tax Liability: Unrealized gain on available-for-sale investment securities $— $— ($173 ) Intangible amortization (2,804 ) (2,494 ) (2,206 ) Mortgage servicing rights (415 ) (415 ) — FHLB stock repurchase and dividends (686 ) (686 ) (306 ) Other (404 ) (456 ) (731 ) Total Deferred Tax Liability ($4,309 ) ($4,051 ) ($3,416 ) Net Deferred Tax Asset $10,264 $9,939 $10,087 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Estimated Fair Values | Estimated fair values as of the periods indicated are as follows: December 31, 2016 December 31, 2015 (In Thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Level 1 inputs: Cash, due from banks and deposits in other banks $50,551 $50,551 $58,673 $58,673 Investment securities 43,486 43,486 43,033 43,033 Level 2 inputs: Investment securities 288,632 288,655 248,983 249,039 Investment in Federal Home Loan Bank Stock 1,965 1,965 1,816 1,816 Accrued interest receivable 3,734 3,734 3,620 3,620 Commercial interest rate swaps 71 71 125 125 Level 3 inputs: Loans and loans held for sale 1,018,611 1,026,350 1,031,340 1,033,551 Purchased receivables, net 20,491 20,491 13,326 13,326 Interest rate lock commitments 1,137 1,137 1,514 1,514 Mortgage servicing rights 4,157 4,157 1,654 1,654 Financial liabilities: Level 2 inputs: Deposits $1,267,653 $1,266,995 $1,240,792 $1,240,223 Securities sold under repurchase agreements 27,607 27,607 31,420 31,420 Borrowings 4,338 4,186 2,120 2,101 Accrued interest payable 64 64 56 56 Commercial interest rate swaps 71 71 125 125 Retail interest rate contracts 78 78 91 91 Level 3 inputs: Accrued liability, RML acquisition payments 186 4,500 6,624 6,624 Junior subordinated debentures 18,558 18,398 18,558 17,433 Unrecognized financial instruments: Commitments to extend credit (1) $236,624 $2,366 $222,387 $2,224 Standby letters of credit (1) 9,931 99 6,399 64 (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, 2016 Assets: Available for sale securities U.S. Treasury and government sponsored entities $263,361 $30,063 $233,298 $— Municipal securities 18,157 — 18,157 — U.S. Agency mortgage-backed securities 2 — 2 — Corporate bonds 44,732 8,456 36,276 — Preferred stock 4,967 4,967 — — Total available for sale securities $331,219 $43,486 $287,733 $— Commercial interest rate swaps $71 $— $71 $— Interest rate lock commitments 1,137 — — 1,137 Mortgage servicing rights 4,157 — — 4,157 Total other assets $5,365 $— $71 $5,294 Liabilities: Commercial interest rate swaps $71 $— $71 $— Retail interest rate contracts 78 — 78 — Total other liabilities $149 $— $149 $— 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 $— Commercial interest rate swaps 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: Commercial interest rate swaps $125 $— $125 $— Retail interest rate contracts 91 — 91 — Total other liabilities $216 $— $216 $— |
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, 2016 and 2015 : (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, 2016 Interest rate lock commitments $1,514 ($2,063 ) $20,612 ($18,926 ) $1,137 $1,137 Mortgage servicing rights 1,654 (526 ) 3,029 — 4,157 — Total $3,168 ($2,589 ) $23,641 ($18,926 ) $5,294 $1,137 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 |
Fair Value, Assets Measured on Nonrecurring Basis | For 2016 and 2015 , 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, 2016 Loans measured for impairment $9,222 $— $— $9,222 $270 Other real estate owned 1,700 — — 1,700 187 Total $10,922 $— $— $10,922 $457 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 |
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, 2016 : Financial Instrument Valuation Technique Unobservable Input Weighted Average or Rate Range Loans measured for impairment In-house valuation of collateral Discount rate 49% - 100% Discounted cash flow Discount rate 7 % Other real estate owned Fair value of collateral Estimated capital costs to complete improvements 11.50% - 25% Interest rate lock commitment External pricing model Pull through rate 92.75 % Mortgage servicing rights Discounted cash flow Constant prepayment rate 11.52% - 21.29% Discount rate 9.21% - 10.75% |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 (In Thousands) Community Banking Home Mortgage Lending Consolidated Interest income $56,986 $1,932 $58,918 Interest expense 1,739 822 2,561 Net interest income 55,247 1,110 56,357 Provision for loan losses 2,298 — 2,298 Other operating income 13,756 29,507 43,263 Compensation expense - RML acquisition payments 4,775 — 4,775 Other operating expense 48,610 22,895 71,505 Income before provision for income taxes 13,320 7,722 21,042 Provision for income taxes 2,867 3,185 6,052 Net income 10,453 4,537 14,990 Less: net income attributable to the noncontrolling interest 579 — 579 Net income attributable to Northrim BanCorp, Inc. $9,874 $4,537 $14,411 Total assets $1,459,950 $66,590 $1,526,540 Loans held for sale $— $43,596 $43,596 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 for loan losses 1,754 — 1,754 Other operating income 14,995 29,613 44,608 Compensation expense, RML acquisition payments 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 16,754 3,280 20,034 Other operating expense 45,050 1,873 46,923 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, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Balance Sheets | Balance Sheets at December 31, 2016 2015 (In Thousands) Assets Cash and cash equivalents $11,963 $10,258 Investment securities available for sale 4,967 3,524 Investment in Northrim Bank 184,511 178,905 Investment in NISC 1,487 1,474 Investment in NCT1 248 248 Investment in NST2 310 310 Other assets 2,248 1,184 Total Assets $205,734 $195,903 Liabilities Junior subordinated debentures $18,558 $18,558 Other liabilities 582 310 Total Liabilities 19,140 18,868 Shareholders' Equity Common stock 6,898 6,877 Additional paid-in capital 62,952 62,420 Retained earnings 117,141 108,150 Accumulated other comprehensive loss (397 ) (412 ) Total Shareholders' Equity 186,594 177,035 Total Liabilities and Shareholders' Equity $205,734 $195,903 |
Statements of Income | Statements of Income for Years Ended: 2016 2015 2014 (In Thousands) Income Interest income $369 $116 $197 Equity in undistributed earnings from Northrim Bank 15,301 18,865 19,358 Equity in undistributed earnings from NISC 95 140 167 Other income — 175 30 Total Income $15,765 $19,296 $19,752 Expense Interest expense 534 463 451 Administrative and other expenses 2,382 2,191 3,243 Total Expense 2,916 2,654 3,694 Income Before Benefit from Income Taxes 12,849 16,642 16,058 Benefit from income taxes (1,562 ) (1,141 ) (1,350 ) Net Income $14,411 $17,783 $17,408 |
Statements of Cash Flows | Statements of Cash Flows for Years Ended: 2016 2015 2014 (In Thousands) Operating Activities: Net income $14,411 $17,783 $17,408 Adjustments to Reconcile Net Income to Net Cash: Equity in undistributed earnings from subsidiaries (15,396 ) (19,005 ) (19,525 ) Stock-based compensation 778 608 360 Changes in other assets and liabilities (1,458 ) (298 ) (241 ) Net Cash Used from Operating Activities (1,665 ) (912 ) (1,998 ) Investing Activities: Purchases of investment securities available for sale (1,373 ) (3,549 ) — 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 10,115 9,842 (3,000 ) Net Cash Provided by Investing Activities 8,742 9,291 3,367 Financing Activities: Dividends paid to shareholders (5,372 ) (5,117 ) (4,750 ) Proceeds from issuance of common stock and excess tax benefits — 106 150 Net Cash Used from Financing Activities (5,372 ) (5,011 ) (4,600 ) Net change in Cash and Cash Equivalents 1,705 3,368 (3,231 ) Cash and Cash Equivalents at beginning of year 10,258 6,890 10,121 Cash and Cash Equivalents at end of year $11,963 $10,258 $6,890 |
Quarterly Results of Operatio58
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Results of Operations | 2016 Quarter Ended Dec. 31 Sept. 30 June 30 March 31 (In Thousands Except Per Share Amounts) Total interest income $14,522 $14,860 $14,718 $14,818 Total interest expense 631 647 639 644 Net interest income 13,891 14,213 14,079 14,174 Provision for loan losses 743 652 200 703 Other operating income 10,359 11,935 11,864 9,105 Compensation expense, RML acquisition payments 708 3,250 687 130 Other operating expense 17,646 17,936 18,682 17,241 Income before provision for income taxes 5,153 4,310 6,374 5,205 Provision for income taxes 1,458 1,027 1,868 1,699 Net Income 3,695 3,283 4,506 3,506 Less: Net income attributable to the noncontrolling interest 105 188 156 130 Net income attributable to Northrim Bancorp, Inc. $3,590 $3,095 $4,350 $3,376 Earnings per share, basic $0.52 $0.45 $0.63 $0.49 Earnings per share, diluted $0.51 $0.44 $0.63 $0.48 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 Compensation expense, RML acquisition payments 1,225 780 587 1,502 Other operating expense 17,004 17,423 17,166 16,959 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 $0.51 |
Summary of Significant Accoun59
Summary of Significant Accounting Policies - Narrative (Details) | Dec. 01, 2014USD ($)owner | Dec. 31, 2016USD ($)trustborrower | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)trustborrower | Dec. 31, 2016USD ($)segmenttrustborrowershares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Jun. 30, 2016USD ($) |
Accounting Policy [Line Items] | ||||||||||||||
Number of wholly-owned Trusts | trust | 2 | 2 | 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 | |||||||||||||
Advertising, promotion and marketing expenses | $ 2,449,000 | $ 2,728,000 | $ 2,059,000 | |||||||||||
Anti-dilutive shares (in shares) | shares | 0 | 54,903 | 0 | |||||||||||
Commercial and construction loans | $ 376,400,000 | $ 391,900,000 | $ 376,400,000 | $ 376,400,000 | $ 391,900,000 | |||||||||
Large borrowing relationships | borrower | 27 | 27 | 27 | |||||||||||
Unfunded commitments to large borrowers | $ 98,700,000 | $ 98,700,000 | $ 98,700,000 | |||||||||||
Goodwill | 15,017,000 | 22,334,000 | 15,017,000 | 15,017,000 | 22,334,000 | |||||||||
Compensation expense - RML acquisition payments | 708,000 | $ 3,250,000 | $ 687,000 | $ 130,000 | 1,225,000 | $ 780,000 | $ 587,000 | $ 1,502,000 | 4,775,000 | 4,094,000 | $ 0 | |||
Reduction in net income | $ (3,695,000) | $ (3,283,000) | $ (4,506,000) | $ (3,506,000) | $ (4,226,000) | $ (5,532,000) | $ (4,943,000) | $ (3,633,000) | (14,990,000) | (18,334,000) | $ (17,867,000) | |||
RML | ||||||||||||||
Accounting Policy [Line Items] | ||||||||||||||
Number of former equity owners | owner | 4 | |||||||||||||
Voting interests acquired | 76.50% | |||||||||||||
Number of former equity owners with continuing employment contracts | owner | 3 | |||||||||||||
Number of former equity owners that must continue employment under terms of acquisition agreement | owner | 2 | |||||||||||||
Accrued compensation expense related to acquisition payments | 186,000 | |||||||||||||
Compensation expense - RML acquisition payments | 4,800,000 | $ 4,100,000 | ||||||||||||
Accounting for Payments Made to Former Equity Owners | RML | ||||||||||||||
Accounting Policy [Line Items] | ||||||||||||||
Total purchase price | $ 22,200,000 | |||||||||||||
Goodwill | 7,500,000 | |||||||||||||
Accounting for Payments Made to Former Equity Owners | Previously Reported | RML | ||||||||||||||
Accounting Policy [Line Items] | ||||||||||||||
Total purchase price | 29,500,000 | |||||||||||||
Goodwill | $ 14,800,000 | |||||||||||||
Accounting for Payments Made to Former Equity Owners | Restatement Adjustment | RML | ||||||||||||||
Accounting Policy [Line Items] | ||||||||||||||
Compensation expense - RML acquisition payments | 765,000 | 2,800,000 | $ 2,300,000 | |||||||||||
Reduction in net income | $ 438,000 | $ 1,800,000 | $ 1,400,000 | |||||||||||
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 | Leasehold 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 | Leasehold Improvements | ||||||||||||||
Accounting Policy [Line Items] | ||||||||||||||
Premises and equipment, useful life | 15 years |
Summary of Significant Accoun60
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||||||||
Net income attributable to Northrim BanCorp, Inc. | $ 3,590 | $ 3,095 | $ 4,350 | $ 3,376 | $ 4,106 | $ 5,335 | $ 4,781 | $ 3,561 | $ 14,411 | $ 17,783 | $ 17,408 |
Basic weighted average common shares outstanding (in shares) | 6,883,663 | 6,859,209 | 6,761,328 | ||||||||
Dilutive effect of potential common shares from awards granted under equity incentive program (in shares) | 91,000 | 89,000 | 91,000 | ||||||||
Total (in shares) | 6,974,864 | 6,948,474 | 6,852,267 | ||||||||
Earnings per common share | |||||||||||
Earnings Per Share, Basic (in USD per share) | $ 0.52 | $ 0.45 | $ 0.63 | $ 0.49 | $ 0.60 | $ 0.78 | $ 0.70 | $ 0.52 | $ 2.09 | $ 2.59 | $ 2.57 |
Earnings Per Share, Diluted (in USD per share) | $ 0.51 | $ 0.44 | $ 0.63 | $ 0.48 | $ 0.59 | $ 0.77 | $ 0.69 | $ 0.51 | $ 2.06 | $ 2.56 | $ 2.54 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) | Nov. 30, 2014 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2016 | Dec. 01, 2014 |
Business Acquisition [Line Items] | ||||||||||||||||
Gain on purchase of mortgage affiliate | $ 0 | $ 0 | $ 3,001,000 | |||||||||||||
Change in fair value of RML earn-out liability | $ 708,000 | $ 3,250,000 | $ 687,000 | $ 130,000 | $ 1,225,000 | $ 780,000 | $ 587,000 | $ 1,502,000 | 4,775,000 | 4,094,000 | $ 0 | |||||
RML | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Voting interests acquired | 76.50% | |||||||||||||||
Ownership prior to acquisition of company | 23.50% | |||||||||||||||
Fair value of equity interest in acquiree | $ 9,000,000 | |||||||||||||||
Gain on purchase of mortgage affiliate | $ 3,000,000 | |||||||||||||||
Liability for future earn out payments | 6,600,000 | 6,600,000 | $ 7,300,000 | |||||||||||||
Change in fair value of RML earn-out liability | 4,800,000 | $ 4,100,000 | ||||||||||||||
Amount of first payment made to sellers | $ 3,800,000 | $ 4,900,000 | ||||||||||||||
Accrued liability relating to acquisition payments | 186,000 | |||||||||||||||
RML | Accounting for Payments Made to Former Equity Owners | Restatement Adjustment | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Change in fair value of RML earn-out liability | $ 765,000 | $ 2,800,000 | $ 2,300,000 | |||||||||||||
RML | First tier payment | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Percent of revenue used to calculate liability | 40.00% | |||||||||||||||
RML | Second tier payment | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Percent of revenue used to calculate liability | 50.00% | |||||||||||||||
RML | Third tier payment | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Percent of revenue used to calculate liability | 70.00% | |||||||||||||||
RML | Fourth tier payment | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Percent of revenue used to calculate liability | 85.00% | |||||||||||||||
RML | Fifth tier payment | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Percent of revenue used to calculate liability | 55.00% | |||||||||||||||
RML | Minimum | First tier payment | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Revenue range used to calculate liability | $ 1,000,000 | |||||||||||||||
RML | Minimum | Second tier payment | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Revenue range used to calculate liability | 2,000,000 | |||||||||||||||
RML | Minimum | Third tier payment | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Revenue range used to calculate liability | 3,000,000 | |||||||||||||||
RML | Minimum | Fourth tier payment | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Revenue range used to calculate liability | 4,000,000 | |||||||||||||||
RML | Minimum | Fifth tier payment | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Revenue range used to calculate liability | 6,000,000 | |||||||||||||||
RML | Maximum | First tier payment | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Revenue range used to calculate liability | 2,000,000 | |||||||||||||||
RML | Maximum | Second tier payment | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Revenue range used to calculate liability | 3,000,000 | |||||||||||||||
RML | Maximum | Third tier payment | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Revenue range used to calculate liability | 4,000,000 | |||||||||||||||
RML | Maximum | Fourth tier payment | ||||||||||||||||
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) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Cash and Due from Banks [Abstract] | |
Minimum average daily balance | $ 500,000 |
Compensating Balances [Line Items] | |
Required balance | 500,000 |
Federal Reserve Bank | |
Compensating Balances [Line Items] | |
Required balance | $ 0 |
Interest Bearing Deposits in 63
Interest Bearing Deposits in Other Banks (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Interest Bearing Deposits In Other Banks [Abstract] | ||
Maximum maturity period | 1 year | |
Interest bearing deposits at Federal Reserve Bank | $ 15,734 | $ 27,275 |
Interest bearing deposits at FHLB | 31 | 108 |
Other interest bearing deposits at other institutions | 301 | 301 |
Total | $ 16,066 | $ 27,684 |
Investment Securities - Summar
Investment Securities - Summary of Investment Security Carrying and Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 331,812 | $ 291,759 |
Gross Unrealized Gains | 520 | 333 |
Gross Unrealized Losses | 1,113 | 979 |
Fair Value | 331,219 | 291,113 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 899 | 903 |
Gross Unrealized Gains | 23 | 56 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 922 | 959 |
U.S. Treasury and government sponsored entities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 264,267 | 238,116 |
Gross Unrealized Gains | 150 | 150 |
Gross Unrealized Losses | 1,056 | 830 |
Fair Value | 263,361 | 237,436 |
Municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 18,184 | 10,227 |
Gross Unrealized Gains | 26 | 117 |
Gross Unrealized Losses | 53 | 18 |
Fair Value | 18,157 | 10,326 |
U.S. Agency mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2 | 818 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | 0 | 10 |
Fair Value | 2 | 809 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 44,437 | 39,049 |
Gross Unrealized Gains | 295 | 57 |
Gross Unrealized Losses | 0 | 88 |
Fair Value | 44,732 | 39,018 |
Preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,922 | 3,549 |
Gross Unrealized Gains | 49 | 8 |
Gross Unrealized Losses | 4 | 33 |
Fair Value | 4,967 | 3,524 |
Municipal securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 899 | 903 |
Gross Unrealized Gains | 23 | 56 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 922 | $ 959 |
Investment Securities - Narrat
Investment Securities - Narrative (Details) $ in Millions | Dec. 31, 2016USD ($)security | Dec. 31, 2015USD ($)security |
Marketable Securities [Abstract] | ||
Securities with unrealized losses | 34 | 39 |
Positions in unrealized loss for greater than one year | 4 | 6 |
Pledged securities | $ | $ 50.9 | $ 59.7 |
Investment Securities - Schedu
Investment Securities - Schedule of Gross Unrealized Losses on Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 192,171 | $ 173,912 |
More than 12 months, fair value | 3,313 | 136 |
Total, fair value | 195,484 | 174,048 |
Less than 12 months, unrealized losses | 1,084 | 977 |
More than 12 months, unrealized losses | 29 | 2 |
Total, unrealized losses | 1,113 | 979 |
U.S. Treasury and government sponsored entities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 180,638 | 146,433 |
More than 12 months, fair value | 489 | 36 |
Total, fair value | 181,127 | 146,469 |
Less than 12 months, unrealized losses | 1,051 | 829 |
More than 12 months, unrealized losses | 5 | 1 |
Total, unrealized losses | 1,056 | 830 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 0 | 19,874 |
More than 12 months, fair value | 0 | 0 |
Total, fair value | 0 | 19,874 |
Less than 12 months, unrealized losses | 0 | 88 |
More than 12 months, unrealized losses | 0 | 0 |
Total, unrealized losses | 0 | 88 |
Municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 11,533 | 4,454 |
More than 12 months, fair value | 1,786 | 0 |
Total, fair value | 13,319 | 4,454 |
Less than 12 months, unrealized losses | 33 | 18 |
More than 12 months, unrealized losses | 20 | 0 |
Total, unrealized losses | 53 | 18 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 637 | |
More than 12 months, fair value | 100 | |
Total, fair value | 737 | |
Less than 12 months, unrealized losses | 9 | |
More than 12 months, unrealized losses | 1 | |
Total, unrealized losses | 10 | |
Preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 0 | 2,514 |
More than 12 months, fair value | 1,038 | 0 |
Total, fair value | 1,038 | 2,514 |
Less than 12 months, unrealized losses | 0 | 33 |
More than 12 months, unrealized losses | 4 | 0 |
Total, unrealized losses | $ 4 | $ 33 |
Investment Securities - Sche67
Investment Securities - Schedule of Amortized Cost and Fair Value by Contractual Maturity of Available-For-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 331,812 | $ 291,759 |
U.S. Treasury and government sponsored entities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Within 1 year, amortized cost | 49,997 | |
1-5 years, amortized cost | 214,270 | |
Amortized Cost | 264,267 | 238,116 |
Within 1 year, fair value | 50,041 | |
1-5 years, fair value | 213,320 | |
Fair Value | $ 263,361 | |
Within 1 year, weighted average yield | 0.96% | |
1-5 years, weighted average yield | 1.25% | |
Weighted Average Yield | 1.20% | |
U.S. Agency mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
1-5 years, amortized cost | $ 2 | |
Amortized Cost | 2 | 818 |
1-5 years, fair value | 2 | |
Fair Value | $ 2 | |
1-5 years, weighted average yield | (5.90%) | |
Weighted Average Yield | (5.90%) | |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Within 1 year, amortized cost | $ 9,793 | |
1-5 years, amortized cost | 26,208 | |
5-10 years, amortized cost | 8,436 | |
Amortized Cost | 44,437 | 39,049 |
Within 1 year, fair value | 9,806 | |
1-5 years, fair value | 26,370 | |
5-10 years, fair value | 8,556 | |
Fair Value | $ 44,732 | |
Within 1 year, weighted average yield | 1.60% | |
1-5 years, weighted average yield | 1.67% | |
5-10 years, weighted average yield | 2.14% | |
Weighted Average Yield | 1.74% | |
Preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Over 10 years, amortized cost | $ 4,922 | |
Amortized Cost | 4,922 | $ 3,549 |
Over 10 years, fair value | 4,967 | |
Fair Value | $ 4,967 | |
Over 10 years, weighted average yield | 6.41% | |
Weighted Average Yield | 6.41% |
Investment Securities - Sche68
Investment Securities - Schedule of Amortized Cost and Fair Value by Contractual Maturity of Debt Securities (Details) - Municipal securities $ in Thousands | Dec. 31, 2016USD ($) |
Schedule Of Debt Securities [Line Items] | |
Within 1 year, amortized cost | $ 4,325 |
1-5 years, amortized cost | 13,267 |
5-10 years, amortized cost | 1,491 |
Amortized Cost | 19,083 |
Within 1 year, fair value | 4,323 |
1-5 years, fair value | 13,278 |
5-10 years, fair value | 1,478 |
Fair Value | $ 19,079 |
Within 1 year, weighted average yield | 1.34% |
1-5 years, weighted average yield | 2.32% |
5-10 years, weighted average yield | 4.78% |
Weighted Average Yield | 2.29% |
Investment Securities - Sche69
Investment Securities - Schedule Of Available-For-Sale Securities Proceeds, Gains, And Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Marketable Securities [Abstract] | |||
Proceeds | $ 5,785 | $ 20,522 | $ 24,102 |
Gross Gains | 12 | 271 | 465 |
Gross Losses | $ 23 | $ 0 | $ 4 |
Investment Securities - Summ70
Investment Securities - Summary of Interest Income On Available-For-Sale Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Total taxable interest income | $ 3,613 | $ 3,073 | $ 2,651 |
Total tax-exempt interest income | 282 | 320 | 391 |
Total | 3,895 | 3,393 | 3,042 |
U.S. Treasury and government sponsored entities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total taxable interest income | 2,661 | 2,378 | 1,769 |
U.S. Agency Mortgage-backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total taxable interest income | 4 | 25 | 25 |
Other | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total taxable interest income | 948 | 670 | 857 |
Municipal securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total tax-exempt interest income | $ 282 | $ 320 | $ 391 |
Loans and Credit Quality - Nar
Loans and Credit Quality - Narrative (Details) | Apr. 01, 2014USD ($)purchased_loan | Dec. 31, 2016USD ($)financing_commitmentcontract | Dec. 31, 2015USD ($)contract | Dec. 31, 2014USD ($)contract |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans secured by real estate | 74.00% | |||
Loans unsecured | 3.00% | |||
Loans secured for general commercial uses | 23.00% | |||
Net nonaccrual loans | $ 12,480,000 | $ 2,125,000 | ||
Interest income earned on nonaccrual loans | 676,000 | 276,000 | $ 218,000 | |
Interest income earned on nonaccrual loans with no balance | 181,000 | 617,000 | 350,000 | |
Greater than 90 days still accruing | 456,000 | 0 | ||
Recorded investment in loans considered to be impaired | 38,656,000 | 34,640,000 | ||
Impaired loan, average recorded investment | 42,599,000 | 25,997,000 | 10,500,000 | |
Impaired loan, interest income on accrual method | 2,354,000 | 1,140,000 | $ 762,000 | |
Loans classified as troubled debt restructuring | $ 16,219,000 | 13,740,000 | ||
Commitment to Lend | financing_commitment | 0 | |||
Write down on TDR | $ 0 | $ 304,000 | ||
TDR with specific impairment | contract | 4 | 0 | ||
TDR that subsequently defaulted, recorded investment | contract | 0 | 0 | 0 | |
Loans pledged as collateral | $ 0 | $ 0 | ||
Unfunded loan commitments | 15,000 | 0 | ||
Alaska Pacific Bank | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Purchased impaired loans | purchased_loan | 18 | |||
Accretable difference on purchased loans | $ 0 | |||
Fair value of purchased credit impaired loans | $ 3,900,000 | $ 1,100,000 | $ 1,600,000 | |
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 |
Loans and Credit Quality - Loa
Loans and Credit Quality - Loan Portfolio Segmented By Risk Class (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | $ 979,449 | $ 985,399 |
Less: Unearned origination fees, net of origination costs | (4,434) | (4,612) |
Total loans | 975,015 | 980,787 |
Asset Quality Rating - Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 939,573 | 951,901 |
Asset Quality Rating - Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 2,586 | 808 |
Asset Quality Rating - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 37,290 | 32,690 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 278,178 | 272,441 |
Commercial | Asset Quality Rating - Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 257,639 | 257,293 |
Commercial | Asset Quality Rating - Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 1,950 | 536 |
Commercial | Asset Quality Rating - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 18,589 | 14,612 |
Real estate construction one-to-four family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 26,061 | 44,488 |
Real estate construction one-to-four family | Asset Quality Rating - Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 26,061 | 44,488 |
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 | 0 |
Real estate construction other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 72,159 | 74,956 |
Real estate construction other | Asset Quality Rating - Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 72,159 | 74,956 |
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 | 152,178 | 143,741 |
Real estate term owner occupied | Asset Quality Rating - Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 135,359 | 127,226 |
Real estate term owner occupied | Asset Quality Rating - Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 57 | 0 |
Real estate term owner occupied | Asset Quality Rating - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 16,762 | 16,515 |
Real estate term non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 356,601 | 347,516 |
Real estate term non-owner occupied | Asset Quality Rating - Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 355,903 | 347,157 |
Real estate term non-owner occupied | Asset Quality Rating - Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 0 | 0 |
Real estate term non-owner occupied | Asset Quality Rating - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 698 | 359 |
Real estate term other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 45,402 | 46,672 |
Real estate term other | Asset Quality Rating - Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 44,733 | 45,884 |
Real estate term other | Asset Quality Rating - Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 0 | 91 |
Real estate term other | Asset Quality Rating - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 669 | 697 |
Consumer secured by 1st deeds of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 23,589 | 26,673 |
Consumer secured by 1st deeds of trust | Asset Quality Rating - Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 22,568 | 26,015 |
Consumer secured by 1st deeds of trust | Asset Quality Rating - Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 501 | 171 |
Consumer secured by 1st deeds of trust | Asset Quality Rating - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 520 | 487 |
Consumer other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 25,281 | 28,912 |
Consumer other | Asset Quality Rating - Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 25,151 | 28,882 |
Consumer other | Asset Quality Rating - Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | 78 | 10 |
Consumer other | Asset Quality Rating - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Subtotal | $ 52 | $ 20 |
Loans and Credit Quality - Non
Loans and Credit Quality - Nonaccrual Loans By Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | $ 13,893 | $ 3,686 |
Government guarantees on nonaccrual loans | (1,413) | (1,561) |
Net nonaccrual loans | 12,480 | 2,125 |
Commercial | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 13,500 | 3,013 |
Real estate term owner occupied | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 29 | 38 |
Real estate term non-owner occupied | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 197 | 359 |
Consumer secured by 1st deeds of trust | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 167 | 256 |
Consumer other | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 0 | 20 |
30-59 Days Past Due | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 8,750 | 0 |
Government guarantees on nonaccrual loans | 0 | 0 |
Net nonaccrual loans | 8,750 | 0 |
30-59 Days Past Due | Commercial | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 8,750 | 0 |
30-59 Days Past Due | Real estate term owner occupied | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 0 | 0 |
30-59 Days Past Due | Real estate term non-owner occupied | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 0 | 0 |
30-59 Days Past Due | Consumer secured by 1st deeds of trust | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 0 | 0 |
30-59 Days Past Due | Consumer other | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 0 | |
60-89 Days Past Due | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 0 | 82 |
Government guarantees on nonaccrual loans | 0 | 0 |
Net nonaccrual loans | 0 | 82 |
60-89 Days Past Due | Commercial | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 0 | 82 |
60-89 Days Past Due | Real estate term owner occupied | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 0 | 0 |
60-89 Days Past Due | Real estate term non-owner occupied | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 0 | 0 |
60-89 Days Past Due | Consumer secured by 1st deeds of trust | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 0 | 0 |
60-89 Days Past Due | Consumer other | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 0 | |
Greater Than 90 Days Past Due | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 4,375 | 418 |
Government guarantees on nonaccrual loans | (1,413) | 0 |
Net nonaccrual loans | 2,962 | 418 |
Greater Than 90 Days Past Due | Commercial | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 4,208 | 290 |
Greater Than 90 Days Past Due | Real estate term owner occupied | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 0 | 0 |
Greater Than 90 Days Past Due | Real estate term non-owner occupied | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 0 | 108 |
Greater Than 90 Days Past Due | Consumer secured by 1st deeds of trust | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 167 | 0 |
Greater Than 90 Days Past Due | Consumer other | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 20 | |
Current | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 768 | 3,186 |
Government guarantees on nonaccrual loans | 0 | (1,561) |
Net nonaccrual loans | 768 | 1,625 |
Current | Commercial | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 542 | 2,641 |
Current | Real estate term owner occupied | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 29 | 38 |
Current | Real estate term non-owner occupied | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | 197 | 251 |
Current | Consumer secured by 1st deeds of trust | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | $ 0 | 256 |
Current | Consumer other | ||
Nonaccrual Loans By Major Loan Type [Line Items] | ||
Total nonaccrual loans | $ 0 |
Loans and Credit Quality - Pas
Loans and Credit Quality - Past Due Loans And Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | $ 2,643 | $ 1,150 |
Nonaccrual loans | 13,893 | 3,686 |
Current loans | 962,913 | 980,563 |
Total financing receivables | 979,449 | 985,399 |
Less: Unearned origination fees, net of origination costs | (4,434) | (4,612) |
Total loans | 975,015 | 980,787 |
30-59 Days Past Due Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 1,448 | 1,129 |
Nonaccrual loans | 8,750 | 0 |
60-89 Days Past Due Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 739 | 21 |
Nonaccrual loans | 0 | 82 |
Greater Than 90 Days Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 456 | 0 |
Nonaccrual loans | 4,375 | 418 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 545 | 263 |
Nonaccrual loans | 13,500 | 3,013 |
Current loans | 264,133 | 269,165 |
Total financing receivables | 278,178 | 272,441 |
Commercial | 30-59 Days Past Due Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 242 |
Nonaccrual loans | 8,750 | 0 |
Commercial | 60-89 Days Past Due Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 141 | 21 |
Nonaccrual loans | 0 | 82 |
Commercial | Greater Than 90 Days Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 404 | 0 |
Nonaccrual loans | 4,208 | 290 |
Real estate construction one-to-four family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
Nonaccrual loans | 0 | 0 |
Current loans | 26,061 | 44,488 |
Total financing receivables | 26,061 | 44,488 |
Real estate construction one-to-four family | 30-59 Days Past Due Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
Real estate construction one-to-four family | 60-89 Days Past Due Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
Real estate construction one-to-four family | Greater Than 90 Days Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
Real estate construction other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
Nonaccrual loans | 0 | 0 |
Current loans | 72,159 | 74,956 |
Total financing receivables | 72,159 | 74,956 |
Real estate construction other | 30-59 Days Past Due Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
Real estate construction other | 60-89 Days Past Due Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
Real estate construction other | Greater Than 90 Days Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
Real estate term owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 887 | 0 |
Nonaccrual loans | 29 | 38 |
Current loans | 151,262 | 143,703 |
Total financing receivables | 152,178 | 143,741 |
Real estate term owner occupied | 30-59 Days Past Due Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 887 | 0 |
Nonaccrual loans | 0 | 0 |
Real estate term owner occupied | 60-89 Days Past Due Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
Nonaccrual loans | 0 | 0 |
Real estate term owner occupied | Greater Than 90 Days Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
Nonaccrual loans | 0 | 0 |
Real estate term non-owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
Nonaccrual loans | 197 | 359 |
Current loans | 356,404 | 347,157 |
Total financing receivables | 356,601 | 347,516 |
Real estate term non-owner occupied | 30-59 Days Past Due Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
Nonaccrual loans | 0 | 0 |
Real estate term non-owner occupied | 60-89 Days Past Due Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
Nonaccrual loans | 0 | 0 |
Real estate term non-owner occupied | Greater Than 90 Days Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
Nonaccrual loans | 0 | 108 |
Real estate term other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 289 |
Nonaccrual loans | 0 | 0 |
Current loans | 45,402 | 46,383 |
Total financing receivables | 45,402 | 46,672 |
Real estate term other | 30-59 Days Past Due Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 289 |
Real estate term other | 60-89 Days Past Due Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
Real estate term other | Greater Than 90 Days Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
Consumer secured by 1st deeds of trust | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 908 | 568 |
Nonaccrual loans | 167 | 256 |
Current loans | 22,514 | 25,849 |
Total financing receivables | 23,589 | 26,673 |
Consumer secured by 1st deeds of trust | 30-59 Days Past Due Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 390 | 568 |
Nonaccrual loans | 0 | 0 |
Consumer secured by 1st deeds of trust | 60-89 Days Past Due Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 518 | 0 |
Nonaccrual loans | 0 | 0 |
Consumer secured by 1st deeds of trust | Greater Than 90 Days Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
Nonaccrual loans | 167 | 0 |
Consumer other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 303 | 30 |
Nonaccrual loans | 0 | 20 |
Current loans | 24,978 | 28,862 |
Total financing receivables | 25,281 | 28,912 |
Consumer other | 30-59 Days Past Due Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 171 | 30 |
Nonaccrual loans | 0 | |
Consumer other | 60-89 Days Past Due Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 80 | 0 |
Nonaccrual loans | 0 | |
Consumer other | Greater Than 90 Days Still Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | $ 52 | 0 |
Nonaccrual loans | $ 20 |
Loans and Credit Quality - Imp
Loans and Credit Quality - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | $ 29,435 | $ 33,579 | |
Impaired loan, no related allowance, unpaid principal balance | 30,131 | 33,992 | |
Impaired loan, related allowance, recorded investment | 9,221 | 1,061 | |
Impaired loan, related allowance, unpaid principal balance | 9,221 | 1,061 | |
Related allowance | 614 | 344 | |
Recorded investment | 38,656 | 34,640 | |
Unpaid principal balance | 39,352 | 35,053 | |
Impaired loan, no related allowance, average recorded investment | 38,089 | 24,249 | |
Impaired loan, no related allowance, interest income on accrual method | 2,354 | 1,140 | |
Impaired loan, related allowance, average recorded investment | 4,510 | 1,748 | |
Impaired loan, related allowance, interest income on accrual method | 0 | 0 | |
Impaired loan, average recorded investment | 42,599 | 25,997 | $ 10,500 |
Impaired loan, interest income on accrual method | 2,354 | 1,140 | $ 762 |
Commercial | Asset Quality Rating - Special Mention | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 223 | 157 | |
Impaired loan, no related allowance, unpaid principal balance | 223 | 157 | |
Related allowance | 0 | 0 | |
Recorded investment | 223 | 157 | |
Unpaid principal balance | 223 | 157 | |
Impaired loan, no related allowance, average recorded investment | 170 | 163 | |
Impaired loan, no related allowance, interest income on accrual method | 13 | 13 | |
Impaired loan, average recorded investment | 170 | 163 | |
Impaired loan, interest income on accrual method | 13 | 13 | |
Commercial | Asset Quality Rating - Substandard | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 9,213 | 13,333 | |
Impaired loan, no related allowance, unpaid principal balance | 9,893 | 13,746 | |
Impaired loan, related allowance, recorded investment | 9,221 | 1,061 | |
Impaired loan, related allowance, unpaid principal balance | 9,221 | 1,061 | |
Related allowance | 614 | 344 | |
Recorded investment | 18,434 | 14,394 | |
Unpaid principal balance | 19,114 | 14,807 | |
Impaired loan, no related allowance, average recorded investment | 15,522 | 9,996 | |
Impaired loan, no related allowance, interest income on accrual method | 840 | 378 | |
Impaired loan, related allowance, average recorded investment | 2,451 | 1,668 | |
Impaired loan, related allowance, interest income on accrual method | 0 | 0 | |
Impaired loan, average recorded investment | 17,973 | 11,664 | |
Impaired loan, interest income on accrual method | 840 | 378 | |
Real estate construction one-to-four family | Asset Quality Rating - Substandard | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, average recorded investment | 988 | 0 | |
Impaired loan, no related allowance, interest income on accrual method | 0 | 0 | |
Impaired loan, related allowance, average recorded investment | 1,986 | 0 | |
Impaired loan, related allowance, interest income on accrual method | 0 | 0 | |
Impaired loan, average recorded investment | 2,974 | 0 | |
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, average recorded investment | 0 | 557 | |
Impaired loan, no related allowance, interest income on accrual method | 0 | 72 | |
Impaired loan, average recorded investment | 0 | 557 | |
Impaired loan, interest income on accrual method | 0 | 72 | |
Real estate construction other | Asset Quality Rating - Substandard | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 0 | ||
Impaired loan, no related allowance, unpaid principal balance | 0 | ||
Related allowance | 0 | ||
Recorded investment | 0 | ||
Unpaid principal balance | 0 | ||
Impaired loan, no related allowance, average recorded investment | 1,431 | 1,431 | |
Impaired loan, no related allowance, interest income on accrual method | 0 | 0 | |
Impaired loan, average recorded investment | 1,431 | 1,431 | |
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 | 252 | 753 | |
Impaired loan, no related allowance, unpaid principal balance | 252 | 753 | |
Related allowance | 0 | 0 | |
Recorded investment | 252 | 753 | |
Unpaid principal balance | 252 | 753 | |
Impaired loan, no related allowance, average recorded investment | 378 | 696 | |
Impaired loan, no related allowance, interest income on accrual method | 34 | 63 | |
Impaired loan, average recorded investment | 378 | 696 | |
Impaired loan, interest income on accrual method | 34 | 63 | |
Real estate term owner occupied | Asset Quality Rating - Special Mention | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, average recorded investment | 0 | 67 | |
Impaired loan, no related allowance, interest income on accrual method | 0 | 5 | |
Impaired loan, average recorded investment | 0 | 67 | |
Impaired loan, interest income on accrual method | 0 | 5 | |
Real estate term owner occupied | Asset Quality Rating - Substandard | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 16,694 | 16,476 | |
Impaired loan, no related allowance, unpaid principal balance | 16,694 | 16,476 | |
Related allowance | 0 | 0 | |
Recorded investment | 16,694 | 16,476 | |
Unpaid principal balance | 16,694 | 16,476 | |
Impaired loan, no related allowance, average recorded investment | 16,551 | 6,941 | |
Impaired loan, no related allowance, interest income on accrual method | 1,202 | 355 | |
Impaired loan, average recorded investment | 16,551 | 6,941 | |
Impaired loan, interest income on accrual method | 1,202 | 355 | |
Real estate term non-owner occupied | Asset Quality Rating - Pass | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 391 | 473 | |
Impaired loan, no related allowance, unpaid principal balance | 391 | 473 | |
Related allowance | 0 | 0 | |
Recorded investment | 391 | 473 | |
Unpaid principal balance | 391 | 473 | |
Impaired loan, no related allowance, average recorded investment | 442 | 521 | |
Impaired loan, no related allowance, interest income on accrual method | 91 | 75 | |
Impaired loan, average recorded investment | 442 | 521 | |
Impaired loan, interest income on accrual method | 91 | 75 | |
Real estate term non-owner occupied | Asset Quality Rating - Special Mention | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, average recorded investment | 0 | 1,080 | |
Impaired loan, no related allowance, interest income on accrual method | 0 | 97 | |
Impaired loan, average recorded investment | 0 | 1,080 | |
Impaired loan, interest income on accrual method | 0 | 97 | |
Real estate term non-owner occupied | Asset Quality Rating - Substandard | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 693 | 352 | |
Impaired loan, no related allowance, unpaid principal balance | 693 | 352 | |
Related allowance | 0 | 0 | |
Recorded investment | 693 | 352 | |
Unpaid principal balance | 693 | 352 | |
Impaired loan, no related allowance, average recorded investment | 599 | 1,141 | |
Impaired loan, no related allowance, interest income on accrual method | 28 | 0 | |
Impaired loan, average recorded investment | 599 | 1,141 | |
Impaired loan, interest income on accrual method | 28 | 0 | |
Real estate term other | Asset Quality Rating - Pass | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 633 | 699 | |
Impaired loan, no related allowance, unpaid principal balance | 633 | 699 | |
Related allowance | 0 | 0 | |
Recorded investment | 633 | 699 | |
Unpaid principal balance | 633 | 699 | |
Impaired loan, no related allowance, average recorded investment | 627 | 179 | |
Impaired loan, no related allowance, interest income on accrual method | 58 | 13 | |
Impaired loan, average recorded investment | 627 | 179 | |
Impaired loan, interest income on accrual method | 58 | 13 | |
Real estate term other | Asset Quality Rating - Special Mention | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 91 | ||
Impaired loan, no related allowance, unpaid principal balance | 91 | ||
Related allowance | 0 | ||
Recorded investment | 91 | ||
Unpaid principal balance | 91 | ||
Impaired loan, no related allowance, average recorded investment | 43 | 68 | |
Impaired loan, no related allowance, interest income on accrual method | 4 | 6 | |
Impaired loan, average recorded investment | 43 | 68 | |
Impaired loan, interest income on accrual method | 4 | 6 | |
Real estate term other | Asset Quality Rating - Substandard | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 669 | 697 | |
Impaired loan, no related allowance, unpaid principal balance | 669 | 697 | |
Related allowance | 0 | 0 | |
Recorded investment | 669 | 697 | |
Unpaid principal balance | 669 | 697 | |
Impaired loan, no related allowance, average recorded investment | 683 | 816 | |
Impaired loan, no related allowance, interest income on accrual method | 55 | 50 | |
Impaired loan, related allowance, average recorded investment | 0 | 70 | |
Impaired loan, related allowance, interest income on accrual method | 0 | 0 | |
Impaired loan, average recorded investment | 683 | 886 | |
Impaired loan, interest income on accrual method | 55 | 50 | |
Consumer secured by 1st deeds of trust | Asset Quality Rating - Pass | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 76 | ||
Impaired loan, no related allowance, unpaid principal balance | 76 | ||
Related allowance | 0 | ||
Recorded investment | 76 | ||
Unpaid principal balance | 76 | ||
Impaired loan, no related allowance, average recorded investment | 38 | 79 | |
Impaired loan, no related allowance, interest income on accrual method | 2 | 4 | |
Impaired loan, average recorded investment | 38 | 79 | |
Impaired loan, interest income on accrual method | 2 | 4 | |
Consumer secured by 1st deeds of trust | Asset Quality Rating - Special Mention | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 143 | ||
Impaired loan, no related allowance, unpaid principal balance | 143 | ||
Related allowance | 0 | ||
Recorded investment | 143 | ||
Unpaid principal balance | 143 | ||
Impaired loan, no related allowance, average recorded investment | 36 | 0 | |
Impaired loan, no related allowance, interest income on accrual method | 3 | 0 | |
Impaired loan, average recorded investment | 36 | 0 | |
Impaired loan, interest income on accrual method | 3 | 0 | |
Consumer secured by 1st deeds of trust | Asset Quality Rating - Substandard | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 472 | 472 | |
Impaired loan, no related allowance, unpaid principal balance | 488 | 472 | |
Related allowance | 0 | 0 | |
Recorded investment | 472 | 472 | |
Unpaid principal balance | 488 | 472 | |
Impaired loan, no related allowance, average recorded investment | 568 | 514 | |
Impaired loan, no related allowance, interest income on accrual method | 24 | 9 | |
Impaired loan, related allowance, average recorded investment | 73 | 0 | |
Impaired loan, related allowance, interest income on accrual method | 0 | 0 | |
Impaired loan, average recorded investment | 641 | 514 | |
Impaired loan, interest income on accrual method | 24 | 9 | |
Consumer other | Asset Quality Rating - Substandard | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loan, no related allowance, recorded investment | 52 | ||
Impaired loan, no related allowance, unpaid principal balance | 52 | ||
Related allowance | 0 | ||
Recorded investment | 52 | ||
Unpaid principal balance | 52 | ||
Impaired loan, no related allowance, average recorded investment | 13 | 0 | |
Impaired loan, no related allowance, interest income on accrual method | 0 | 0 | |
Impaired loan, related allowance, average recorded investment | 0 | 10 | |
Impaired loan, related allowance, interest income on accrual method | 0 | 0 | |
Impaired loan, average recorded investment | 13 | 10 | |
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, 2016 | Dec. 31, 2015 | |
Financing Receivable, Modifications [Line Items] | ||
New troubled debt restructurings | $ 4,368 | |
Existing troubled debt restructurings | 11,851 | |
Total modifications | 16,219 | $ 13,740 |
Commercial | Asset Quality Rating - Substandard | ||
Financing Receivable, Modifications [Line Items] | ||
New troubled debt restructurings | 4,368 | |
Accrual Status | ||
Financing Receivable, Modifications [Line Items] | ||
New troubled debt restructurings | 4,234 | |
Existing troubled debt restructurings | 1,897 | |
Total modifications | 6,131 | |
Accrual Status | Commercial | Asset Quality Rating - Substandard | ||
Financing Receivable, Modifications [Line Items] | ||
New troubled debt restructurings | 4,234 | |
Nonaccrual Status | ||
Financing Receivable, Modifications [Line Items] | ||
New troubled debt restructurings | 134 | |
Existing troubled debt restructurings | 9,954 | |
Total modifications | 10,088 | |
Nonaccrual Status | Commercial | Asset Quality Rating - Substandard | ||
Financing Receivable, Modifications [Line Items] | ||
New troubled debt restructurings | $ 134 |
Loans and Credit Quality - New
Loans and Credit Quality - Newly Restructured Loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)contract | |
Financing Receivable, Modifications [Line Items] | |
Pre-modification, number of contracts | contract | 2 |
Pre-modification, total modification | $ 4,369 |
Post-modification, number of contracts | contract | 2 |
Post-modification, total modification | $ 4,367 |
Commercial | Asset Quality Rating - Substandard | |
Financing Receivable, Modifications [Line Items] | |
Pre-modification, number of contracts | contract | 2 |
Pre-modification, total modification | $ 4,369 |
Post-modification, number of contracts | contract | 2 |
Post-modification, total modification | $ 4,367 |
Rate Modification | |
Financing Receivable, Modifications [Line Items] | |
Pre-modification, total modification | 0 |
Post-modification, total modification | 0 |
Rate Modification | Commercial | Asset Quality Rating - Substandard | |
Financing Receivable, Modifications [Line Items] | |
Pre-modification, total modification | 0 |
Post-modification, total modification | 0 |
Term Modification | |
Financing Receivable, Modifications [Line Items] | |
Pre-modification, total modification | 135 |
Post-modification, total modification | 134 |
Term Modification | Commercial | Asset Quality Rating - Substandard | |
Financing Receivable, Modifications [Line Items] | |
Pre-modification, total modification | 135 |
Post-modification, total modification | 134 |
Payment Modification | |
Financing Receivable, Modifications [Line Items] | |
Pre-modification, total modification | 4,234 |
Post-modification, total modification | 4,233 |
Payment Modification | Commercial | Asset Quality Rating - Substandard | |
Financing Receivable, Modifications [Line Items] | |
Pre-modification, total modification | 4,234 |
Post-modification, total modification | 4,233 |
Combination Modification | |
Financing Receivable, Modifications [Line Items] | |
Pre-modification, total modification | 0 |
Post-modification, total modification | 0 |
Combination Modification | Commercial | Asset Quality Rating - Substandard | |
Financing Receivable, Modifications [Line Items] | |
Pre-modification, total modification | 0 |
Post-modification, total modification | $ 0 |
Loans and Credit Quality - Ana
Loans and Credit Quality - Analysis Of Loan Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance, beginning of the year | $ 117 | $ 2,262 |
Loans made | 0 | 0 |
Repayments | 27 | 2,145 |
Balance, end of year | $ 90 | $ 117 |
Allowance For Loan Losses - Al
Allowance For Loan Losses - Allowance For Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | $ 18,153 | $ 16,723 | $ 16,282 |
Charge-Offs | (1,482) | (826) | (625) |
Recoveries | 728 | 502 | 1,702 |
Provision (benefit) | 2,298 | 1,754 | (636) |
Balance, end of period | 19,697 | 18,153 | 16,723 |
Individually evaluated for impairment | 614 | 344 | 75 |
Collectively evaluated for impairment | 19,083 | 17,809 | 16,648 |
Commercial | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | 5,906 | 5,643 | 5,779 |
Charge-Offs | (903) | (616) | (319) |
Recoveries | 699 | 379 | 1,041 |
Provision (benefit) | (167) | 500 | (858) |
Balance, end of period | 5,535 | 5,906 | 5,643 |
Individually evaluated for impairment | 614 | 344 | 75 |
Collectively evaluated for impairment | 4,921 | 5,562 | 5,568 |
Real estate construction one-to-four family | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | 854 | 644 | 557 |
Charge-Offs | (535) | 0 | 0 |
Recoveries | 0 | 0 | 625 |
Provision (benefit) | 231 | 210 | (538) |
Balance, end of period | 550 | 854 | 644 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 550 | 854 | 644 |
Real estate construction other | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | 1,439 | 1,653 | 539 |
Charge-Offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision (benefit) | 26 | (214) | 1,114 |
Balance, end of period | 1,465 | 1,439 | 1,653 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 1,465 | 1,439 | 1,653 |
Real estate term owner occupied | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | 1,657 | 1,580 | 1,583 |
Charge-Offs | 0 | 0 | (160) |
Recoveries | 0 | 0 | 0 |
Provision (benefit) | 701 | 77 | 157 |
Balance, end of period | 2,358 | 1,657 | 1,580 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 2,358 | 1,657 | 1,580 |
Real estate term non-owner occupied | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | 5,515 | 4,704 | 4,297 |
Charge-Offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision (benefit) | 1,338 | 811 | 407 |
Balance, end of period | 6,853 | 5,515 | 4,704 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 6,853 | 5,515 | 4,704 |
Real estate term other | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | 628 | 656 | 537 |
Charge-Offs | 0 | (81) | 0 |
Recoveries | 0 | 107 | 0 |
Provision (benefit) | 191 | (54) | 119 |
Balance, end of period | 819 | 628 | 656 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 819 | 628 | 656 |
Consumer secured by 1st deeds of trust | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | 264 | 285 | 322 |
Charge-Offs | (36) | (28) | (59) |
Recoveries | 0 | 3 | 4 |
Provision (benefit) | 85 | 4 | 18 |
Balance, end of period | 313 | 264 | 285 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 313 | 264 | 285 |
Consumer other | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | 397 | 410 | 390 |
Charge-Offs | (8) | (101) | (87) |
Recoveries | 29 | 13 | 32 |
Provision (benefit) | (10) | 75 | 75 |
Balance, end of period | 408 | 397 | 410 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 408 | 397 | 410 |
Unallocated | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | 1,493 | 1,148 | 2,278 |
Charge-Offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision (benefit) | (97) | 345 | (1,130) |
Balance, end of period | 1,396 | 1,493 | 1,148 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | $ 1,396 | $ 1,493 | $ 1,148 |
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, 2016 | Dec. 31, 2015 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total financing receivables | $ 979,449 | $ 985,399 |
Individually evaluated for impairment | 38,656 | 34,640 |
Collectively evaluated for impairment | 940,793 | 950,759 |
Commercial | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total financing receivables | 278,178 | 272,441 |
Individually evaluated for impairment | 18,657 | 14,551 |
Collectively evaluated for impairment | 259,521 | 257,890 |
Real estate construction one-to-four family | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total financing receivables | 26,061 | 44,488 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 26,061 | 44,488 |
Real estate construction other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total financing receivables | 72,159 | 74,956 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 72,159 | 74,956 |
Real estate term owner occupied | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total financing receivables | 152,178 | 143,741 |
Individually evaluated for impairment | 16,946 | 17,229 |
Collectively evaluated for impairment | 135,232 | 126,512 |
Real estate term non-owner occupied | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total financing receivables | 356,601 | 347,516 |
Individually evaluated for impairment | 1,084 | 825 |
Collectively evaluated for impairment | 355,517 | 346,691 |
Real estate term other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total financing receivables | 45,402 | 46,672 |
Individually evaluated for impairment | 1,302 | 1,487 |
Collectively evaluated for impairment | 44,100 | 45,185 |
Consumer secured by 1st deeds of trust | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total financing receivables | 23,589 | 26,673 |
Individually evaluated for impairment | 615 | 548 |
Collectively evaluated for impairment | 22,974 | 26,125 |
Consumer other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total financing receivables | 25,281 | 28,912 |
Individually evaluated for impairment | 52 | 0 |
Collectively evaluated for impairment | $ 25,229 | $ 28,912 |
Allowance For Loan Losses - Ba
Allowance For Loan Losses - Balance Of The Allowance Segregated By Segment And Class (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | $ 614 | $ 344 | $ 75 | |
Collectively evaluated for impairment | 19,083 | 17,809 | 16,648 | |
Total | 19,697 | 18,153 | 16,723 | $ 16,282 |
Asset Quality Rating - Pass | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 17,628 | 16,290 | ||
Asset Quality Rating - Special Mention | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 56 | 18 | ||
Asset Quality Rating - Substandard | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 614 | 344 | ||
Collectively evaluated for impairment | 3 | 8 | ||
Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 1,396 | 1,493 | ||
Commercial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 614 | 344 | 75 | |
Collectively evaluated for impairment | 4,921 | 5,562 | 5,568 | |
Total | 5,535 | 5,906 | 5,643 | 5,779 |
Commercial | Asset Quality Rating - Pass | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 4,867 | 5,543 | ||
Commercial | Asset Quality Rating - Special Mention | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 51 | 11 | ||
Commercial | Asset Quality Rating - Substandard | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 614 | 344 | ||
Collectively evaluated for impairment | 3 | 8 | ||
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 | 550 | 854 | 644 | |
Total | 550 | 854 | 644 | 557 |
Real estate construction one-to-four family | Asset Quality Rating - Pass | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 550 | 854 | ||
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 | 1,465 | 1,439 | 1,653 | |
Total | 1,465 | 1,439 | 1,653 | 539 |
Real estate construction other | Asset Quality Rating - Pass | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 1,465 | 1,439 | ||
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 | 2,358 | 1,657 | 1,580 | |
Total | 2,358 | 1,657 | 1,580 | 1,583 |
Real estate term owner occupied | Asset Quality Rating - Pass | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 2,358 | 1,657 | ||
Real estate term owner occupied | Asset Quality Rating - Special Mention | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 0 | 0 | ||
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 | 6,853 | 5,515 | 4,704 | |
Total | 6,853 | 5,515 | 4,704 | 4,297 |
Real estate term non-owner occupied | Asset Quality Rating - Pass | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 6,853 | 5,515 | ||
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 | 0 | ||
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 | 819 | 628 | 656 | |
Total | 819 | 628 | 656 | 537 |
Real estate term other | Asset Quality Rating - Pass | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 819 | 624 | ||
Real estate term other | Asset Quality Rating - Special Mention | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 0 | 4 | ||
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 deeds of trust | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | 0 | |
Collectively evaluated for impairment | 313 | 264 | 285 | |
Total | 313 | 264 | 285 | 322 |
Consumer secured by 1st deeds of trust | Asset Quality Rating - Pass | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 310 | 261 | ||
Consumer secured by 1st deeds of trust | Asset Quality Rating - Special Mention | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 3 | 3 | ||
Consumer secured by 1st deeds 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 deeds 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 | 408 | 397 | 410 | |
Total | 408 | 397 | 410 | 390 |
Consumer other | Asset Quality Rating - Pass | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 406 | 397 | ||
Consumer other | Asset Quality Rating - Special Mention | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 2 | 0 | ||
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 | 0 | ||
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 | 1,396 | 1,493 | 1,148 | |
Total | 1,396 | 1,493 | $ 1,148 | $ 2,278 |
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 | $ 1,396 | $ 1,493 |
Purchased Receivables - Additio
Purchased Receivables - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)segmentpurchased_receivable | Dec. 31, 2015USD ($)purchased_receivable | Dec. 31, 2014USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maturity of purchased receivables (less than) | 1 year | ||
Number of segments and classes of purchased receivables | segment | 1 | ||
Restructured purchased receivables | $ 16,219,000 | $ 13,740,000 | |
Charge-offs | $ 1,482,000 | $ 826,000 | $ 625,000 |
Number of full charge-off | loan | 1 | ||
Number of partial charge-off | loan | 1 | ||
Purchased Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Purchased receivables past due | purchased_receivable | 0 | 0 | |
Restructured purchased receivables | $ 0 | $ 0 | $ 0 |
Charge-offs | $ 0 | $ 0 | $ 793,000 |
Purchased Receivables - Summar
Purchased Receivables - Summary Of Components Of Net Purchased Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Purchased Receivables [Abstract] | ||||
Purchased receivables | $ 20,662 | $ 13,507 | ||
Reserve for purchased receivable losses | (171) | (181) | $ (289) | $ (273) |
Total | $ 20,491 | $ 13,326 |
Purchased Receivables - Summary
Purchased Receivables - Summary of Allowance for Loan Losses Purchased Receivables (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | $ 181,000 | $ 289,000 | $ 273,000 |
Charge-offs | (1,482,000) | (826,000) | (625,000) |
Balance at end of year | 171,000 | 181,000 | 289,000 |
Purchased Receivable | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Charge-offs | 0 | 0 | (793,000) |
Recoveries | 0 | 30,000 | 105,000 |
Net recoveries (charge-offs) | 0 | 30,000 | (688,000) |
Reserve for (recovery from) purchased receivables | $ (10,000) | $ (138,000) | $ 704,000 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Real Estate Owned Expense [Line Items] | |||
OREO | $ 6,574 | $ 3,053 | |
OREO (income) expense, net rental income and gains on sale | 98 | 190 | $ (416) |
OREO operating expense | |||
Other Real Estate Owned Expense [Line Items] | |||
OREO (income) expense, net rental income and gains on sale | 304 | 224 | 174 |
Impairment on OREO | |||
Other Real Estate Owned Expense [Line Items] | |||
OREO (income) expense, net rental income and gains on sale | 187 | 361 | 56 |
Rental income on OREO | |||
Other Real Estate Owned Expense [Line Items] | |||
OREO (income) expense, net rental income and gains on sale | (98) | (80) | (3) |
Gains on sale of OREO | |||
Other Real Estate Owned Expense [Line Items] | |||
OREO (income) expense, net rental income and gains on sale | $ (295) | $ (315) | $ (643) |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Total premise and equipment | $ 63,516 | $ 62,497 |
Accumulated depreciation and amortization | (24,198) | (22,280) |
Total premise and equipment, net | 39,318 | 40,217 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total premise and equipment | 2,596 | 2,600 |
Furniture And Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total premise and equipment | 14,912 | 12,641 |
Tenant Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total premise and equipment | $ 8,325 | 8,023 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, useful life | 39 years | |
Total premise and equipment | $ 37,683 | $ 39,233 |
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 ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | ||||
Depreciation expense and amortization of leasehold improvements | $ 2,439,000 | $ 2,264,000 | $ 1,865,000 | |
Related party transaction | $ 0 | |||
Director | General Contracting Services | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction | $ 122,000 | $ 5,400,000 |
Mortgage Servicing Rights - Mor
Mortgage Servicing Rights - Mortgage Servicing Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Balance, beginning of period | $ 1,654 | |
Changes in fair value: | ||
Carrying value, December 31 | 4,157 | $ 1,654 |
Balance of loans serviced for others | $ 272,442 | $ 125,446 |
MSR as a percentage of serviced loans | 1.53% | 1.32% |
Mortgage servicing rights | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Balance, beginning of period | $ 1,654 | $ 1,010 |
Addition to servicing asset | 3,029 | 802 |
Changes in fair value: | ||
Due to changes in model inputs of assumptions | (214) | 29 |
Other | (312) | (187) |
Carrying value, December 31 | $ 4,157 | $ 1,654 |
Mortgage Servicing Rights - Nar
Mortgage Servicing Rights - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Servicing Assets at Fair Value [Line Items] | |||
Balance of loans serviced for others | $ 456,400 | $ 263,000 | |
Amounts held in escrow | 2,700 | 1,400 | |
Other Noninterest Income | |||
Servicing Assets at Fair Value [Line Items] | |||
Mortgage servicing fees | $ 675 | $ 261 | $ 203 |
Mortgage Servicing Rights - Val
Mortgage Servicing Rights - Valuation Assumptions (Details) - Mortgage servicing rights | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Servicing Assets at Fair Value [Line Items] | ||
Constant prepayment rate | 11.58% | 10.54% |
Discount rate | 9.25% | 9.10% |
Goodwill and Intangible Asset91
Goodwill and Intangible Assets - Intangible Assets And Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 15,017 | $ 22,334 |
Core deposit intangible | 357 | 492 |
Trade name intangible | 950 | 950 |
Intangible assets total | $ 16,324 | $ 23,776 |
Goodwill and Intangible Asset92
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2007 | Apr. 01, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill recorded | $ 15,017,000 | $ 22,334,000 | |||
Accumulated amortization for intangible assets | 6,800,000 | 6,700,000 | |||
Trade name intangible | 950,000 | 950,000 | |||
Goodwill impairment | 0 | ||||
Intangible asset amortization expense | 135,000 | 258,000 | $ 289,000 | ||
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 | 7,500,000 | ||||
Trade name intangible | 950,000 | ||||
Core Deposits | Alaska First | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life, years | 10 years | ||||
Accumulated amortization for intangible assets | 1,300,000 | 1,300,000 | 1,200,000 | ||
Core Deposits | Alaska Pacific Bank | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life, years | 10 years | ||||
Accumulated amortization for intangible assets | $ 283,000 | $ 190,000 | $ 85,000 |
Goodwill and Intangible Asset93
Goodwill and Intangible Assets - Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,017 | $ 100 |
2,018 | 71 |
2,019 | 59 |
2,020 | 48 |
2,021 | 37 |
Thereafter | 43 |
Total | $ 358 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Commitments to invest, amortization expense | $ 2,900 | $ 2,700 | $ 1,300 |
Remaining commitment to invest in low income housing partnership | $ 7,417 | ||
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Investment in Low Income Housing Partnerships | $ 24,174 | $ 20,233 | |
Deferred taxes, net | 10,264 | 9,939 | $ 10,087 |
Bank owned life insurance | 6,181 | 5,887 | |
Investment in equity method investments | 4,560 | 4,573 | |
Accrued interest receivable | 3,734 | 3,620 | |
Prepaid expenses | 1,596 | 1,230 | |
Taxes receivable | 1,755 | 878 | |
Rate lock derivative | 1,137 | 1,514 | |
Other assets | 2,727 | 3,900 | |
Total | $ 56,128 | $ 51,774 |
Other Assets - Schedule of Inve
Other Assets - Schedule of Investing Commitment (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Other Commitments [Line Items] | |
Original commitment amount | $ 37,566 |
Less: life to date contributions | (30,149) |
Remaining commitment amount | $ 7,417 |
R4 - MVV | |
Other Commitments [Line Items] | |
Years over which tax credits are earned | 17 years |
Original commitment amount | $ 8,528 |
Less: life to date contributions | (8,248) |
Remaining commitment amount | $ 280 |
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 | (10,089) |
Remaining commitment amount | $ 640 |
R4 - PJ33 | |
Other Commitments [Line Items] | |
Years over which tax credits are earned | 17 years |
Original commitment amount | $ 6,809 |
Less: life to date contributions | (432) |
Remaining commitment amount | $ 6,377 |
WNC | |
Other Commitments [Line Items] | |
Years over which tax credits are earned | 16 years |
Original commitment amount | $ 2,500 |
Less: life to date contributions | (2,380) |
Remaining commitment amount | $ 120 |
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 - Scheduled Maturities
Deposits - Scheduled Maturities Of Certificates Of Deposit (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Deposits [Abstract] | |
2,017 | $ 97,675 |
2,018 | 25,885 |
2,019 | 6,610 |
2,020 | 935 |
2,021 | 424 |
Thereafter | 186 |
Total | $ 131,715 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) | Dec. 31, 2016USD ($)bank | Dec. 31, 2015USD ($) |
Deposits [Line Items] | ||
Certificates of deposit | $ 131,715,000 | |
CD collateralized by FHLB letters of credit | 0 | $ 0 |
Securities pledged to collateralize certificates of deposit | 0 | 0 |
Deposits held for related parties | $ 2,500,000 | 3,400,000 |
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 | $ 0 |
Deposits - Interest Expense on
Deposits - Interest Expense on Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deposits [Abstract] | |||
Interest-bearing demand accounts | $ 67 | $ 63 | $ 59 |
Money market accounts | 418 | 404 | 388 |
Savings accounts | 489 | 470 | 511 |
Certificates of deposit $100,000 and greater | 707 | 754 | 292 |
Certificates of deposit less than $100,000 | 189 | 248 | 169 |
Total deposits | $ 1,870 | $ 1,939 | $ 1,419 |
Borrowings - Narrative (Detail
Borrowings - Narrative (Details) - USD ($) | Mar. 22, 2013 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||||||||||||
Ratio of line of credit to eligible assets | 35.00% | 35.00% | ||||||||||
Line of credit | $ 183,400,000 | $ 183,400,000 | ||||||||||
Ratio of line of credit to total assets | 12.00% | 12.00% | ||||||||||
Ratio of eligible assets to borrowing capacity | 35.00% | 35.00% | ||||||||||
Additional borrowing capacity | $ 534,300,000 | $ 534,300,000 | ||||||||||
Long-term FHLB advances | 4,300,000 | $ 2,100,000 | $ 4,300,000 | $ 2,100,000 | ||||||||
Term of FHLB advances | 18 years | 20 years | ||||||||||
Repayment term of FHLB advance | 30 years | 30 years | ||||||||||
Fixed rate of FHLB advance | 3.12% | 2.61% | ||||||||||
Loans pledged as collateral | 0 | 0 | $ 0 | 0 | ||||||||
FHLB discount window advances outstanding | 0 | 0 | 0 | 0 | ||||||||
Interest paid (less than) | $ 2,553,000 | 2,833,000 | $ 2,087,000 | |||||||||
Alaska limit on borrowing, percent of total assets | 15.00% | |||||||||||
Alaska limit on borrowing, total assets | 227,400,000 | 223,800,000 | $ 227,400,000 | 223,800,000 | ||||||||
Securities sold under agreements to repurchase | $ 27,607,000 | $ 31,420,000 | $ 27,607,000 | $ 31,420,000 | ||||||||
Percentage paid on securities sold under agreements to repurchase | 0.11% | 0.10% | 0.11% | 0.10% | ||||||||
Average balance outstanding | $ 27,200,000 | $ 23,700,000 | $ 27,200,000 | $ 23,700,000 | ||||||||
Maximum amount outstanding at any month end | 30,500,000 | 37,100,000 | ||||||||||
Interest expense on deposits, borrowings and junior subordinated debentures | $ 631,000 | $ 647,000 | $ 639,000 | $ 644,000 | $ 663,000 | $ 706,000 | $ 748,000 | $ 754,000 | $ 2,561,000 | $ 2,871,000 | $ 2,053,000 | |
Weighted average interest rate | 2.82% | 2.52% | 2.82% | 2.52% | 3.51% | |||||||
FHLB Community Investment Program Advance | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount | $ 2,200,000 | |||||||||||
FHLB Community Investment Cash Advance Program | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount | $ 2,300,000 | |||||||||||
Note Agreement With Federal Reserve Bank | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loans pledged as collateral | $ 83,700,000 | $ 83,700,000 | ||||||||||
Interest paid (less than) | 1,000 | $ 1,000 | ||||||||||
Discount Window | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loans pledged as collateral | $ 46,000,000 | 46,000,000 | ||||||||||
FHLB and Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest expense on deposits, borrowings and junior subordinated debentures | $ 157,000 | $ 469,000 | $ 184,000 |
Borrowings - Future Principal
Borrowings - Future Principal Payments Required On The Company's Borrowings (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 27,681 |
2,018 | 101 |
2,019 | 104 |
2,020 | 108 |
2,021 | 111 |
Thereafter | 3,840 |
Total | $ 31,945 |
Junior Subordinated Debentures
Junior Subordinated Debentures (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2005 | May 31, 2003 | |
Investment in unconsolidated trust | $ 56,128 | $ 51,774 | $ 56,128 | $ 51,774 | |||||||||
Junior subordinated debentures | 18,558 | 18,558 | 18,558 | 18,558 | |||||||||
Interest expense on deposits, borrowings and junior subordinated debentures | 631 | $ 647 | $ 639 | $ 644 | $ 663 | $ 706 | $ 748 | $ 754 | 2,561 | 2,871 | $ 2,053 | ||
Northrim Capital Trust 1 | |||||||||||||
Investment in unconsolidated trust | $ 8,000 | ||||||||||||
Junior subordinated debentures | $ 8,200 | $ 8,200 | |||||||||||
LIBOR period | 90 days | ||||||||||||
Basis plus LIBOR | 3.15% | ||||||||||||
Liquidation preference per capital security (in USD per share) | $ 1,000 | $ 1,000 | |||||||||||
Interest rate | 4.06% | 4.06% | |||||||||||
Interest expense on deposits, borrowings and junior subordinated debentures | $ 319 | 289 | 274 | ||||||||||
Debt maturity date | May 15, 2033 | ||||||||||||
Date debentures are redeemable | May 15, 2008 | ||||||||||||
Northrim Statutory Trust 2 | |||||||||||||
Investment in unconsolidated trust | $ 10,000 | ||||||||||||
Junior subordinated debentures | $ 10,300 | $ 10,300 | |||||||||||
LIBOR period | 90 days | ||||||||||||
Basis plus LIBOR | 1.37% | ||||||||||||
Liquidation preference per capital security (in USD per share) | $ 1,000 | $ 1,000 | |||||||||||
Interest rate | 2.33% | 2.33% | |||||||||||
Interest expense on deposits, borrowings and junior subordinated debentures | $ 215 | $ 174 | $ 163 | ||||||||||
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, 2016USD ($)h | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
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 | $ 841,000 | $ 759,000 | $ 774,000 |
Accrued liability for plan | 1,600,000 | 1,400,000 | |
Increase in non-qualified deferred compensation plan | 199,000 | 99,000 | 140,000 |
Aggregate payout under profit sharing plan | 1,100,000 | 1,200,000 | 1,000,000 |
Supplemental Employee Retirement Plan | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Contributions to supplemental plan | 299,000 | 228,000 | 184,000 |
Accrued liability for plan | 2,600,000 | 2,500,000 | |
RML | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Amount expensed for 401(k) contributions | $ 190,000 | 172,000 | 12,000 |
Term of service required | 3 months | ||
Age requirement | 20 years 6 months | ||
RML | Supplemental Employee Retirement Plan | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Contributions to supplemental plan | $ 673,000 | 692,000 | $ 87,000 |
Accrued liability for plan | $ 2,900,000 | $ 2,900,000 | |
Vesting period | 10 years |
Commitments and Contingencies
Commitments and Contingencies - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Loss Contingencies [Line Items] | ||||
Rental expense under leases for equipment and premises | $ 2,800,000 | $ 2,800,000 | $ 1,300,000 | |
Rental income under leases | $ 424,000 | 447,000 | $ 260,000 | |
Limit on stop-loss insurance | 1 year | |||
Stop-loss insurance limit per covered individual per year | $ 175,000 | |||
Loans repurchased in 2 year interval | loan | 3 | |||
Total unfunded commitments | $ 309,000,000 | 300,600,000 | ||
Reserve for unfunded loan commitments and letters of credit | 122,000 | $ 114,000 | ||
Expenditure commitments due in 12 months | $ 61,000 | |||
Scenario, Forecast | Minimum | ||||
Loss Contingencies [Line Items] | ||||
Additional expenses expected to be incurred | $ 1,700,000 | |||
Scenario, Forecast | Maximum | ||||
Loss Contingencies [Line Items] | ||||
Additional expenses expected to be incurred | $ 2,000,000 |
Commitments and Contingencie105
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 2,658 |
2,018 | 2,461 |
2,019 | 2,080 |
2,020 | 1,822 |
2,021 | 1,830 |
Thereafter | 11,094 |
Total | $ 21,945 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Rentals (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 411 |
2,018 | 400 |
2,019 | 407 |
2,020 | 414 |
2,021 | 242 |
Thereafter | 0 |
Total | $ 1,874 |
Commitments and Contingencie107
Commitments and Contingencies - Off-Balance Sheet Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments to extend credit | $ 236,624 | $ 222,387 |
Commitments to originate loans held for sale | 62,421 | 71,820 |
Standby letters of credit | $ 9,931 | $ 6,399 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)derivative_swap | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Derivatives, Fair Value [Line Items] | |||
Threshold for collateral requirements | $ 250,000 | ||
Collateral posted | 301,000 | $ 216,000 | |
Notional amount | $ 18,900,000 | 21,300,000 | |
Number of instruments | derivative_swap | 4 | ||
Derivative fee income | $ 0 | 0 | $ 0 |
Commitments to originate loans held for sale | 62,421,000 | 71,820,000 | |
RML | |||
Derivatives, Fair Value [Line Items] | |||
Commitments to originate loans held for sale | 62,400,000 | $ 71,300,000 | |
Variable to Fixed | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | $ 9,500,000 | ||
Number of instruments | derivative_swap | 2 | ||
Fixed to Variable | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | $ 9,500,000 | ||
Number of instruments | derivative_swap | 2 |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 1,208 | $ 1,639 |
Total other liabilities | 149 | 216 |
Commercial interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 71 | 125 |
Total other liabilities | 71 | 125 |
Commercial interest rate swaps | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 71 | 125 |
Commercial interest rate swaps | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total other liabilities | 71 | 125 |
Interest rate lock commitments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 1,137 | 1,514 |
Interest rate lock commitments | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 1,137 | 1,514 |
Retail interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Total other liabilities | 78 | 91 |
Retail interest rate contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total other liabilities | $ 78 | $ 91 |
Derivatives - Schedule of De110
Derivatives - Schedule of Derivative Instrument Gain(Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | ||
Gain (loss) on derivative not designated as hedging | $ (897) | $ 204 |
Interest rate contracts | Other Income | ||
Derivative [Line Items] | ||
Gain (loss) on derivative not designated as hedging | (530) | (422) |
Interest rate lock commitments | Other Income | ||
Derivative [Line Items] | ||
Gain (loss) on derivative not designated as hedging | $ (367) | $ 626 |
Derivatives - Schedule of Offse
Derivatives - Schedule of Offsetting Asset and Liability Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Offsetting Liabilities [Line Items] | ||
Gross amounts of recognized assets and liabilities | $ 149 | $ 216 |
Offsetting Assets [Line Items] | ||
Gross amounts of recognized assets and liabilities | 1,208 | 1,639 |
Net amounts of assets and liabilities presented in the Statement of Financial Position | 1,137 | 1,514 |
Commercial interest rate swaps | ||
Offsetting Liabilities [Line Items] | ||
Gross amounts of recognized assets and liabilities | 71 | 125 |
Gross amounts offset in the Statement of Financial Position | 0 | 0 |
Net amounts of assets and liabilities presented in the Statement of Financial Position | 71 | 125 |
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 | 71 | 125 |
Net Amount | 0 | 0 |
Offsetting Assets [Line Items] | ||
Gross amounts of recognized assets and liabilities | 71 | 125 |
Gross amounts offset in the Statement of Financial Position | 0 | 0 |
Net amounts of assets and liabilities presented in the Statement of Financial Position | 71 | 125 |
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 | 71 | 125 |
Retail interest rate contracts | ||
Offsetting Liabilities [Line Items] | ||
Gross amounts of recognized assets and liabilities | 78 | 91 |
Gross amounts offset in the Statement of Financial Position | 0 | 0 |
Net amounts of assets and liabilities presented in the Statement of Financial Position | 78 | 91 |
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 | $ 78 | $ 91 |
Common Stock (Details)
Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 23, 2017 | Sep. 30, 2002 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Class of Stock [Line Items] | |||||
Dividends paid to shareholders | $ 5,372 | $ 5,117 | $ 4,750 | ||
Cash dividends paid (in USD per share) | $ 0.78 | $ 0.74 | $ 0.70 | ||
Percentage of common stock authorized for repurchase | 5.00% | ||||
Remaining shares available under stock repurchase program (in shares) | 227,242 | ||||
Shares repurchased (in shares) | 0 | 0 | |||
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Cash dividends declared (in USD per share) | $ 0.21 |
Stock Based Compensation - Nar
Stock Based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of stock options outstanding and exercisable | $ 1,200,000 | $ 794,000 | $ 760,000 |
Stock-based compensation expense | $ 778,000 | 608,000 | 360,000 |
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 | $ 208,000 | 82,000 | 224,000 |
Amount withheld for stock option exercises and related income taxes | 1,100,000 | 358,000 | 872,000 |
Stock-based compensation expense | 207,000 | 96,000 | 68,000 |
Unrecognized compensation expense | $ 287,000 | ||
Weighted-average period for recognition of expense | 2 years 2 months 1 day | ||
Cash Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Proceeds from exercise of stock options | $ 0 | 169,000 | 168,000 |
Cashless Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Proceeds from exercise of stock options | $ 847,000 | 201,000 | 729,000 |
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 | $ 501,000 | 510,000 | 438,000 |
Stock-based compensation expense | 571,000 | $ 512,000 | $ 292,000 |
Unrecognized compensation expense | $ 1,200,000 | ||
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 (in 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 (in 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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Grant date fair value (in USD per share) | $ 6.31 | $ 7.01 | $ 6.73 |
Expected life of options | 8 years | 8 years | 8 years |
Risk-free interest rate | 2.15% | 2.17% | 2.21% |
Dividend yield rate | 2.85% | 2.64% | 2.64% |
Price volatility | 27.37% | 28.63% | 28.93% |
Stock Based Compensation - Sto
Stock Based Compensation - Stock Options Activity (Details) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Number of Shares | |
Outstanding at beginning of period (in shares) | shares | 199,747 |
Granted (in shares) | shares | 23,362 |
Forfeited (in shares) | shares | (11,516) |
Exercised (in shares) | shares | (37,836) |
Outstanding at end of period (in shares) | shares | 173,757 |
Weighted Average Exercise Price | |
Outstanding at beginning of period (in USD per share) | $ / shares | $ 23.02 |
Granted (in USD per share) | $ / shares | 28.10 |
Forfeited (in USD per share) | $ / shares | 25.94 |
Exercised (in USD per share) | $ / shares | 22.38 |
Outstanding at end of period (in USD per share) | $ / shares | $ 23.65 |
Weighted average remaining contractual life, Outstanding at end of period | 4 years 343 days |
Stock Based Compensation - Res
Stock Based Compensation - Restricted Stock Unit Activity (Details) - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Number of Shares | |
Outstanding at beginning of period (in shares) | shares | 62,987 |
Granted (in shares) | shares | 26,058 |
Vested (in shares) | shares | (19,432) |
Forfeited (in shares) | shares | (4,712) |
Outstanding at end of period (in shares) | shares | 64,901 |
Weighted Average Grant Date Fair Value | |
Outstanding at beginning of period (in USD per share) | $ / shares | $ 26.69 |
Granted (in USD per share) | $ / shares | 28.10 |
Vested (in USD per share) | $ / shares | 23.74 |
Forfeited (in USD per share) | $ / shares | 28.09 |
Outstanding at end of period (in USD per share) | $ / shares | $ 28.04 |
Weighted average remaining contractual life, Outstanding at end of period | 1 year 11 months 10 days |
Regulatory Matters - Narrative
Regulatory Matters - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2005 | Jun. 30, 2003 | Dec. 31, 2016 | Dec. 31, 2015 | |
Regulatory Capital Requirements [Abstract] | ||||
Common equity Tier 1 capital ratio | 4.50% | |||
Tier 1 leverage ratio | 4.00% | |||
Tier 1 risk-based ratio | 6.00% | |||
Total risk-based ratio | 8.00% | |||
Tier 1 common equity, adequately capitalized ratio, conservation buffer | 2.50% | |||
Trust preferred securities offerings completed | $ 18 | $ 18 | $ 18 | $ 18 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Tier One Common Equity Based Capital [Abstract] | ||
Common equity tier 1 capital (to risk-weighted assets), adequately-capitalized ratio | 4.50% | |
Capital [Abstract] | ||
Total Capital (to risk-weighted assets), adequately-capitalized ratio | 8.00% | |
Tier One Risk Based Capital [Abstract] | ||
Tier 1 capital (to risk-weighted assets), adequately capitalized ratio | 6.00% | |
Tier One Leverage Capital [Abstract] | ||
Tier 1 capital (to average assets), adequately-capitalized ratio | 4.00% | |
Northrim Bancorp, Inc. | ||
Tier One Common Equity Based Capital [Abstract] | ||
Common equity tier 1 capital (to risk-weighted assets), actual amount | $ 171,190 | $ 154,464 |
Common equity tier 1 capital (to risk-weighted assets), actual ratio | 13.20% | 12.01% |
Common equity tier 1 capital (to risk-weighted assets), adequately-capitalized amount | $ 58,360 | $ 57,876 |
Common equity tier 1 capital (to risk-weighted assets), adequately-capitalized ratio | 4.50% | 4.50% |
Capital [Abstract] | ||
Total Capital (to risk-weighted assets), actual amount | $ 204,927 | $ 187,761 |
Total Capital (to risk-weighted assets), actual ratio | 15.80% | 14.60% |
Total Capital (to risk-weighted assets), adequately-capitalized amount | $ 103,761 | $ 102,883 |
Total Capital (to risk-weighted assets), adequately-capitalized ratio | 8.00% | 8.00% |
Tier One Risk Based Capital [Abstract] | ||
Tier 1 Capital (to risk-weighted assets), actual amount | $ 188,658 | $ 171,653 |
Tier 1 Capital (to risk-weighted assets), actual ratio | 14.54% | 13.34% |
Tier 1 Capital (to risk-weighted assets), adequately-capitalized amount | $ 77,851 | $ 77,205 |
Tier 1 capital (to risk-weighted assets), adequately capitalized ratio | 6.00% | 6.00% |
Tier One Leverage Capital [Abstract] | ||
Tier I Capital (to average assets), actual amount | $ 188,658 | $ 171,653 |
Tier I Capital (to average assets), actual ratio | 12.59% | 11.20% |
Tier I Capital (to average assets), adequately-capitalized amount | $ 59,939 | $ 61,305 |
Tier 1 capital (to average assets), adequately-capitalized ratio | 4.00% | 4.00% |
Northrim Bank | ||
Tier One Common Equity Based Capital [Abstract] | ||
Common equity tier 1 capital (to risk-weighted assets), actual amount | $ 168,529 | $ 156,317 |
Common equity tier 1 capital (to risk-weighted assets), actual ratio | 13.07% | 12.21% |
Common equity tier 1 capital (to risk-weighted assets), adequately-capitalized amount | $ 58,025 | $ 57,611 |
Common equity tier 1 capital (to risk-weighted assets), adequately-capitalized ratio | 4.50% | 4.50% |
Common equity tier 1 capital (to risk-weighted assets), well-capitalized amount | $ 83,813 | $ 83,215 |
Common equity tier 1 capital (to risk-weighted assets), well-capitalized ratio | 6.50% | 6.50% |
Capital [Abstract] | ||
Total Capital (to risk-weighted assets), actual amount | $ 184,695 | $ 171,662 |
Total Capital (to risk-weighted assets), actual ratio | 14.33% | 13.41% |
Total Capital (to risk-weighted assets), adequately-capitalized amount | $ 103,110 | $ 102,408 |
Total Capital (to risk-weighted assets), adequately-capitalized ratio | 8.00% | 8.00% |
Total Capital (to risk-weighted assets), well-capitalized amount | $ 128,887 | $ 128,010 |
Total Capital (to risk-weighted assets), well-capitalized ratio | 10.00% | 10.00% |
Tier One Risk Based Capital [Abstract] | ||
Tier 1 Capital (to risk-weighted assets), actual amount | $ 168,529 | $ 155,630 |
Tier 1 Capital (to risk-weighted assets), actual ratio | 13.07% | 12.16% |
Tier 1 Capital (to risk-weighted assets), adequately-capitalized amount | $ 77,366 | $ 76,791 |
Tier 1 capital (to risk-weighted assets), adequately capitalized ratio | 6.00% | 6.00% |
Tier 1 Capital (to risk-weighted assets), well-capitalized amount | $ 103,155 | $ 102,388 |
Tier 1 Capital (to risk-weighted assets), well-capitalized ratio | 8.00% | 8.00% |
Tier One Leverage Capital [Abstract] | ||
Tier I Capital (to average assets), actual amount | $ 168,529 | $ 155,630 |
Tier I Capital (to average assets), actual ratio | 11.30% | 10.18% |
Tier I Capital (to average assets), adequately-capitalized amount | $ 59,656 | $ 61,151 |
Tier 1 capital (to average assets), adequately-capitalized ratio | 4.00% | 4.00% |
Tier I Capital (to average assets), well-capitalized amount | $ 74,570 | $ 76,439 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Taxes receivable | $ 1,755,000 | $ 878,000 | |
Tax credits related to low income housing partnerships | $ 3,540,000 | $ 2,446,000 | $ 1,298,000 |
Alaska film tax credits | $ 59,000 | ||
U.S. tax rate | 35.00% | 35.00% | 35.00% |
Unrecognized tax benefits | $ 0 | ||
Penalties and interest expense | $ 0 | $ 0 | $ 0 |
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current Tax Expense (Benefit) | |||||||||||
Federal | $ 2,874 | $ 4,752 | $ 6,589 | ||||||||
State | 674 | 1,200 | 1,558 | ||||||||
Amortization of investment in low income housing tax credit partnerships | 2,868 | 2,684 | 1,337 | ||||||||
Total | 6,416 | 8,636 | 9,484 | ||||||||
Deferred Expense(Benefit) | |||||||||||
Federal | (281) | 127 | (1,117) | ||||||||
State | (83) | 21 | (194) | ||||||||
Amortization of investment in low income housing tax credit partnerships | 0 | 0 | 0 | ||||||||
Total | (364) | 148 | (1,311) | ||||||||
Total Expense | |||||||||||
Federal | 2,593 | 4,879 | 5,472 | ||||||||
State | 591 | 1,221 | 1,364 | ||||||||
Amortization of investment in low income housing tax credit partnerships | 2,868 | 2,684 | 1,337 | ||||||||
Total | $ 1,458 | $ 1,027 | $ 1,868 | $ 1,699 | $ 1,673 | $ 2,678 | $ 2,686 | $ 1,747 | $ 6,052 | $ 8,784 | $ 8,173 |
Income Taxes - Reconciliation
Income Taxes - Reconciliation Of Actual To Expected Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Computed “expected” income tax expense | $ 7,365 | $ 8,552 | $ 8,646 | ||||||||
State income taxes, net | 384 | 794 | 886 | ||||||||
Non-deductible merger expenses | 0 | 0 | 130 | ||||||||
Tax-exempt interest on investment securities | (566) | (507) | (415) | ||||||||
Tax-exempt gain on purchase of mortgage affiliate | 0 | 0 | (1,050) | ||||||||
Amortization of investment in low income housing tax credit partnerships | 2,868 | 2,684 | 1,337 | ||||||||
Low income housing credits | (3,540) | (2,446) | (1,298) | ||||||||
Other | (459) | (293) | (63) | ||||||||
Total | $ 1,458 | $ 1,027 | $ 1,868 | $ 1,699 | $ 1,673 | $ 2,678 | $ 2,686 | $ 1,747 | $ 6,052 | $ 8,784 | $ 8,173 |
Income Taxes - Components O122
Income Taxes - Components Of The Net Deferred Tax Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Asset: | |||
Allowance for loan losses | $ 7,717 | $ 7,082 | $ 5,900 |
Loan fees, net of costs | 1,823 | 1,896 | 1,871 |
Depreciation and amortization | 31 | (64) | (60) |
Other real estate owned | 123 | 46 | 50 |
Deferred compensation | 2,112 | 2,005 | 1,691 |
Net operating loss carryforwards | 0 | 73 | 589 |
Equity compensation | 544 | 578 | 502 |
Loan discount | 326 | 476 | 1,003 |
Fair market value adjustment on certificates of deposit | 247 | 283 | 321 |
Unrealized loss on available-for-sale investment securities | 195 | 235 | 0 |
Other | 1,455 | 1,380 | 1,636 |
Total Deferred Tax Asset | 14,573 | 13,990 | 13,503 |
Deferred Tax Liability: | |||
Unrealized gain on available-for-sale investment securities | 0 | 0 | (173) |
Intangible amortization | (2,804) | (2,494) | (2,206) |
Mortgage servicing rights | (415) | (415) | 0 |
FHLB stock repurchase and dividends | (686) | (686) | (306) |
Other | (404) | (456) | (731) |
Total Deferred Tax Liability | (4,309) | (4,051) | (3,416) |
Net Deferred Tax Asset | $ 10,264 | $ 9,939 | $ 10,087 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Term of purchased receivables | 1 year |
Fair Value Measurements - Sche
Fair Value Measurements - Schedule Of Estimated Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financial assets: | ||
Derivative asset | $ 1,208 | $ 1,639 |
Purchased receivables, net | 20,491 | 13,326 |
Mortgage servicing rights | 4,157 | 1,654 |
Financial liabilities: | ||
Total other liabilities | 149 | 216 |
Unrecognized financial instruments: | ||
Commitments to extend credit | 236,624 | 222,387 |
Standby letters of credit | 9,931 | 6,399 |
Carrying Amount | ||
Unrecognized financial instruments: | ||
Commitments to extend credit | 236,624 | 222,387 |
Standby letters of credit | 9,931 | 6,399 |
Fair Value | ||
Unrecognized financial instruments: | ||
Commitments to extend credit | 2,366 | 2,224 |
Standby letters of credit | 99 | 64 |
Level 1 inputs: | ||
Financial assets: | ||
Mortgage servicing rights | 0 | 0 |
Financial liabilities: | ||
Total other liabilities | 0 | 0 |
Level 1 inputs: | Carrying Amount | ||
Financial assets: | ||
Cash, due from banks and deposits in other banks | 50,551 | 58,673 |
Investment securities | 43,486 | 43,033 |
Level 1 inputs: | Fair Value | ||
Financial assets: | ||
Cash, due from banks and deposits in other banks | 50,551 | 58,673 |
Investment securities | 43,486 | 43,033 |
Level 2 inputs: | ||
Financial assets: | ||
Mortgage servicing rights | 0 | 0 |
Financial liabilities: | ||
Total other liabilities | 149 | 216 |
Level 2 inputs: | Carrying Amount | ||
Financial assets: | ||
Investment securities | 288,632 | 248,983 |
Investment in Federal Home Loan Bank Stock | 1,965 | 1,816 |
Accrued interest receivable | 3,734 | 3,620 |
Financial liabilities: | ||
Deposits | 1,267,653 | 1,240,792 |
Securities sold under repurchase agreements | 27,607 | 31,420 |
Borrowings | 4,338 | 2,120 |
Accrued interest payable | 64 | 56 |
Level 2 inputs: | Fair Value | ||
Financial assets: | ||
Investment securities | 288,655 | 249,039 |
Investment in Federal Home Loan Bank Stock | 1,965 | 1,816 |
Accrued interest receivable | 3,734 | 3,620 |
Financial liabilities: | ||
Deposits | 1,266,995 | 1,240,223 |
Securities sold under repurchase agreements | 27,607 | 31,420 |
Borrowings | 4,186 | 2,101 |
Accrued interest payable | 64 | 56 |
Level 3 inputs: | ||
Financial assets: | ||
Mortgage servicing rights | 4,157 | 1,654 |
Financial liabilities: | ||
Total other liabilities | 0 | 0 |
Level 3 inputs: | Carrying Amount | ||
Financial assets: | ||
Loans and loans held for sale | 1,018,611 | 1,031,340 |
Purchased receivables, net | 20,491 | 13,326 |
Mortgage servicing rights | 4,157 | 1,654 |
Financial liabilities: | ||
Accrued liability, RML acquisition payments | 186 | 6,624 |
Junior subordinated debentures | 18,558 | 18,558 |
Level 3 inputs: | Fair Value | ||
Financial assets: | ||
Loans and loans held for sale | 1,026,350 | 1,033,551 |
Purchased receivables, net | 20,491 | 13,326 |
Mortgage servicing rights | 4,157 | 1,654 |
Financial liabilities: | ||
Accrued liability, RML acquisition payments | 4,500 | 6,624 |
Junior subordinated debentures | 18,398 | 17,433 |
Commercial interest rate swaps | ||
Financial assets: | ||
Derivative asset | 71 | 125 |
Financial liabilities: | ||
Total other liabilities | 71 | 125 |
Commercial interest rate swaps | Level 1 inputs: | ||
Financial assets: | ||
Derivative asset | 0 | 0 |
Financial liabilities: | ||
Total other liabilities | 0 | 0 |
Commercial interest rate swaps | Level 2 inputs: | ||
Financial assets: | ||
Derivative asset | 71 | 125 |
Financial liabilities: | ||
Total other liabilities | 71 | 125 |
Commercial interest rate swaps | Level 2 inputs: | Carrying Amount | ||
Financial assets: | ||
Derivative asset | 71 | 125 |
Financial liabilities: | ||
Total other liabilities | 71 | 125 |
Commercial interest rate swaps | Level 2 inputs: | Fair Value | ||
Financial assets: | ||
Derivative asset | 71 | 125 |
Financial liabilities: | ||
Total other liabilities | 71 | 125 |
Commercial interest rate swaps | Level 3 inputs: | ||
Financial assets: | ||
Derivative asset | 0 | 0 |
Financial liabilities: | ||
Total other liabilities | 0 | 0 |
Interest rate lock commitments | ||
Financial assets: | ||
Derivative asset | 1,137 | 1,514 |
Interest rate lock commitments | Level 1 inputs: | ||
Financial assets: | ||
Derivative asset | 0 | 0 |
Interest rate lock commitments | Level 2 inputs: | ||
Financial assets: | ||
Derivative asset | 0 | 0 |
Interest rate lock commitments | Level 3 inputs: | ||
Financial assets: | ||
Derivative asset | 1,137 | 1,514 |
Interest rate lock commitments | Level 3 inputs: | Carrying Amount | ||
Financial assets: | ||
Derivative asset | 1,137 | 1,514 |
Interest rate lock commitments | Level 3 inputs: | Fair Value | ||
Financial assets: | ||
Derivative asset | 1,137 | 1,514 |
Retail interest rate contracts | ||
Financial liabilities: | ||
Total other liabilities | 78 | 91 |
Retail interest rate contracts | Level 1 inputs: | ||
Financial liabilities: | ||
Total other liabilities | 0 | 0 |
Retail interest rate contracts | Level 2 inputs: | ||
Financial liabilities: | ||
Total other liabilities | 78 | 91 |
Retail interest rate contracts | Level 2 inputs: | Carrying Amount | ||
Financial liabilities: | ||
Total other liabilities | 78 | 91 |
Retail interest rate contracts | Level 2 inputs: | Fair Value | ||
Financial liabilities: | ||
Total other liabilities | 78 | 91 |
Retail interest rate contracts | Level 3 inputs: | ||
Financial liabilities: | ||
Total other liabilities | $ 0 | $ 0 |
Fair Value Measurements - S125
Fair Value Measurements - Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | $ 331,219 | $ 291,113 |
Derivative asset | 1,208 | 1,639 |
Mortgage servicing rights | 4,157 | 1,654 |
Total other assets | 5,365 | 3,293 |
Total other liabilities | 149 | 216 |
Level 1 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 43,486 | 43,033 |
Mortgage servicing rights | 0 | 0 |
Total other assets | 0 | 0 |
Total other liabilities | 0 | 0 |
Level 2 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 287,733 | 248,080 |
Mortgage servicing rights | 0 | 0 |
Total other assets | 71 | 125 |
Total other liabilities | 149 | 216 |
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 | 4,157 | 1,654 |
Total other assets | 5,294 | 3,168 |
Total other liabilities | 0 | 0 |
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 | 263,361 | 237,436 |
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 | 30,063 | 35,008 |
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 | 233,298 | 202,428 |
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 | 18,157 | 10,326 |
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 | 18,157 | 10,326 |
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 | 2 | 809 |
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 | 2 | 809 |
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 | 44,732 | 39,018 |
Corporate bonds | Level 1 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 8,456 | 4,501 |
Corporate bonds | Level 2 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 36,276 | 34,517 |
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 | 4,967 | 3,524 |
Preferred stock | Level 1 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 4,967 | 3,524 |
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 |
Commercial interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 71 | 125 |
Total other liabilities | 71 | 125 |
Commercial interest rate swaps | Level 1 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Total other liabilities | 0 | 0 |
Commercial interest rate swaps | Level 2 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 71 | 125 |
Total other liabilities | 71 | 125 |
Commercial interest rate swaps | Level 3 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Total other liabilities | 0 | 0 |
Interest rate lock commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 1,137 | 1,514 |
Interest rate lock commitments | Level 1 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 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 |
Interest rate lock commitments | Level 3 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 1,137 | 1,514 |
Retail interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total other liabilities | 78 | 91 |
Retail interest rate contracts | Level 1 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total other liabilities | 0 | 0 |
Retail interest rate contracts | Level 2 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total other liabilities | 78 | 91 |
Retail interest rate contracts | Level 3 inputs: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total other liabilities | $ 0 | $ 0 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Assets with Unobservable Inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 3,168 | $ 1,851 |
Change included in earnings | (2,589) | (2,428) |
Purchases and issuances | 23,641 | 21,688 |
Sales and settlements | (18,926) | (17,943) |
Ending balance | 5,294 | 3,168 |
Net change in unrealized gains (losses) relating to items held at end of period | 1,137 | 1,514 |
Mortgage servicing rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 1,654 | 1,010 |
Change included in earnings | (526) | (158) |
Purchases and issuances | 3,029 | 802 |
Sales and settlements | 0 | 0 |
Ending balance | 4,157 | 1,654 |
Net change in unrealized gains (losses) relating to items held at end of period | 0 | 0 |
Interest rate lock commitments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 1,514 | 841 |
Change included in earnings | (2,063) | (2,270) |
Purchases and issuances | 20,612 | 20,886 |
Sales and settlements | (18,926) | (17,943) |
Ending balance | 1,137 | 1,514 |
Net change in unrealized gains (losses) relating to items held at end of period | $ 1,137 | $ 1,514 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets with Unobservable Inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Nonrecurring assets | $ 10,922 | $ 1,891 |
Nonrecurring assets, (gain) loss | 457 | 630 |
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 | 10,922 | 1,891 |
Loans measured for impairment | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Nonrecurring assets | 9,222 | 1,061 |
Nonrecurring assets, (gain) loss | 270 | 269 |
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 | 9,222 | 1,061 |
Other real estate owned | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Nonrecurring assets | 1,700 | 830 |
Nonrecurring assets, (gain) loss | 187 | 361 |
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 | $ 1,700 | $ 830 |
Fair Value Measurements - S128
Fair Value Measurements - Schedule of Valuation Assumptions (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Loans measured for impairment | Income Approach Valuation Technique | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Discount rate | 7.00% |
Loans measured for impairment | Income Approach Valuation Technique | Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Discount rate | 49.00% |
Loans measured for impairment | Income Approach Valuation Technique | Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Discount rate | 100.00% |
Other real estate owned | Market Approach Valuation Technique | Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Estimated capital costs to complete improvements | 11.50% |
Other real estate owned | Market Approach Valuation Technique | Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Estimated capital costs to complete improvements | 25.00% |
Interest rate lock commitments | Income Approach Valuation Technique | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Pull through rate | 92.75% |
Mortgage servicing rights | Income Approach Valuation Technique | Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Discount rate | 9.21% |
Constant prepayment rate | 11.52% |
Mortgage servicing rights | Income Approach Valuation Technique | Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Discount rate | 10.75% |
Constant prepayment rate | 21.29% |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2016segmentbank | Dec. 01, 2014 | Nov. 30, 2014 | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | segment | 2 | ||
RML | |||
Segment Reporting Information [Line Items] | |||
Ownership prior to acquisition of company | 23.50% | ||
Voting interests acquired | 76.50% | ||
Community Banking | |||
Segment Reporting Information [Line Items] | |||
Number of branches | bank | 14 |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | $ 14,522 | $ 14,860 | $ 14,718 | $ 14,818 | $ 15,063 | $ 15,388 | $ 14,943 | $ 14,386 | $ 58,918 | $ 59,780 | $ 54,346 |
Interest expense | 631 | 647 | 639 | 644 | 663 | 706 | 748 | 754 | 2,561 | 2,871 | 2,053 |
Net Interest Income | 13,891 | 14,213 | 14,079 | 14,174 | 14,400 | 14,682 | 14,195 | 13,632 | 56,357 | 56,909 | 52,293 |
Provision (benefit) for loan losses | 743 | 652 | 200 | 703 | 376 | 676 | 376 | 326 | 2,298 | 1,754 | (636) |
Other operating income | 10,359 | 11,935 | 11,864 | 9,105 | 10,104 | 12,407 | 11,563 | 10,535 | 43,263 | 44,608 | 20,034 |
Compensation expense - RML acquisition payments | 708 | 3,250 | 687 | 130 | 1,225 | 780 | 587 | 1,502 | 4,775 | 4,094 | 0 |
Other operating expense | 17,646 | 17,936 | 18,682 | 17,241 | 17,004 | 17,423 | 17,166 | 16,959 | 71,505 | 68,551 | 46,923 |
Income Before Provision for Income Taxes | 5,153 | 4,310 | 6,374 | 5,205 | 5,899 | 8,210 | 7,629 | 5,380 | 21,042 | 27,118 | 26,040 |
Provision for income taxes | 1,458 | 1,027 | 1,868 | 1,699 | 1,673 | 2,678 | 2,686 | 1,747 | 6,052 | 8,784 | 8,173 |
Net Income | 3,695 | 3,283 | 4,506 | 3,506 | 4,226 | 5,532 | 4,943 | 3,633 | 14,990 | 18,334 | 17,867 |
Less: Net income attributable to the noncontrolling interest | 105 | 188 | 156 | 130 | 120 | 197 | 162 | 72 | 579 | 551 | 459 |
Net Income Attributable to Northrim BanCorp, Inc. | 3,590 | $ 3,095 | $ 4,350 | $ 3,376 | 4,106 | $ 5,335 | $ 4,781 | $ 3,561 | 14,411 | 17,783 | 17,408 |
Total assets | 1,526,540 | 1,499,492 | 1,526,540 | 1,499,492 | 1,449,349 | ||||||
Loans held for sale | 43,596 | 50,553 | 43,596 | 50,553 | 43,866 | ||||||
Community Banking | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | 56,986 | 57,729 | 54,204 | ||||||||
Interest expense | 1,739 | 1,796 | 1,942 | ||||||||
Net Interest Income | 55,247 | 55,933 | 52,262 | ||||||||
Provision (benefit) for loan losses | 2,298 | 1,754 | (636) | ||||||||
Other operating income | 13,756 | 14,995 | 16,754 | ||||||||
Compensation expense - RML acquisition payments | 4,775 | 4,094 | |||||||||
Other operating expense | 48,610 | 47,070 | 45,050 | ||||||||
Income Before Provision for Income Taxes | 13,320 | 18,010 | 24,602 | ||||||||
Provision for income taxes | 2,867 | 5,024 | 7,582 | ||||||||
Net Income | 10,453 | 12,986 | 17,020 | ||||||||
Less: Net income attributable to the noncontrolling interest | 579 | 551 | 459 | ||||||||
Net Income Attributable to Northrim BanCorp, Inc. | 9,874 | 12,435 | 16,561 | ||||||||
Total assets | 1,459,950 | 1,431,759 | 1,459,950 | 1,431,759 | 1,390,852 | ||||||
Loans held for sale | 0 | 0 | 0 | 0 | 0 | ||||||
Home Mortgage Lending | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | 1,932 | 2,051 | 142 | ||||||||
Interest expense | 822 | 1,075 | 111 | ||||||||
Net Interest Income | 1,110 | 976 | 31 | ||||||||
Provision (benefit) for loan losses | 0 | 0 | 0 | ||||||||
Other operating income | 29,507 | 29,613 | 3,280 | ||||||||
Compensation expense - RML acquisition payments | 0 | 0 | |||||||||
Other operating expense | 22,895 | 21,481 | 1,873 | ||||||||
Income Before Provision for Income Taxes | 7,722 | 9,108 | 1,438 | ||||||||
Provision for income taxes | 3,185 | 3,760 | 591 | ||||||||
Net Income | 4,537 | 5,348 | 847 | ||||||||
Less: Net income attributable to the noncontrolling interest | 0 | 0 | 0 | ||||||||
Net Income Attributable to Northrim BanCorp, Inc. | 4,537 | 5,348 | 847 | ||||||||
Total assets | 66,590 | 67,733 | 66,590 | 67,733 | 58,497 | ||||||
Loans held for sale | $ 43,596 | $ 50,553 | $ 43,596 | $ 50,553 | $ 43,866 |
Parent Company Information - B
Parent Company Information - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
ASSETS | ||||
Cash and cash equivalents | $ 50,551 | $ 58,673 | $ 68,556 | $ 85,591 |
Investment securities available for sale | 331,219 | 291,113 | ||
Other assets | 56,128 | 51,774 | ||
Total assets | 1,526,540 | 1,499,492 | 1,449,349 | |
LIABILITIES | ||||
Junior subordinated debentures | 18,558 | 18,558 | ||
Other liabilities | 21,672 | 29,388 | ||
Total liabilities | 1,339,828 | 1,322,278 | ||
SHAREHOLDERS' EQUITY | ||||
Common stock | 6,898 | 6,877 | ||
Additional paid-in capital | 62,952 | 62,420 | ||
Retained earnings | 117,141 | 108,150 | ||
Accumulated other comprehensive loss | (397) | (412) | ||
Total Northrim BanCorp, Inc. shareholders' equity | 186,594 | 177,035 | ||
Total liabilities and shareholders' equity | 1,526,540 | 1,499,492 | ||
Northrim Bancorp, Inc. | ||||
ASSETS | ||||
Cash and cash equivalents | 11,963 | 10,258 | $ 6,890 | $ 10,121 |
Investment securities available for sale | 4,967 | 3,524 | ||
Other assets | 2,248 | 1,184 | ||
Total assets | 205,734 | 195,903 | ||
LIABILITIES | ||||
Junior subordinated debentures | 18,558 | 18,558 | ||
Other liabilities | 582 | 310 | ||
Total liabilities | 19,140 | 18,868 | ||
SHAREHOLDERS' EQUITY | ||||
Common stock | 6,898 | 6,877 | ||
Additional paid-in capital | 62,952 | 62,420 | ||
Retained earnings | 117,141 | 108,150 | ||
Accumulated other comprehensive loss | (397) | (412) | ||
Total Northrim BanCorp, Inc. shareholders' equity | 186,594 | 177,035 | ||
Total liabilities and shareholders' equity | 205,734 | 195,903 | ||
Northrim Bancorp, Inc. | Northrim Bank | ||||
ASSETS | ||||
Investment in subsidiary | 184,511 | 178,905 | ||
Northrim Bancorp, Inc. | Northrim Investment Services Company | ||||
ASSETS | ||||
Investment in subsidiary | 1,487 | 1,474 | ||
Northrim Bancorp, Inc. | Northrim Capital Trust 1 | ||||
ASSETS | ||||
Investment in subsidiary | 248 | 248 | ||
Northrim Bancorp, Inc. | Northrim Statutory Trust 2 | ||||
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income | |||||||||||
Interest income | $ 14,522 | $ 14,860 | $ 14,718 | $ 14,818 | $ 15,063 | $ 15,388 | $ 14,943 | $ 14,386 | $ 58,918 | $ 59,780 | $ 54,346 |
Other income | 10,359 | 11,935 | 11,864 | 9,105 | 10,104 | 12,407 | 11,563 | 10,535 | 43,263 | 44,608 | 20,034 |
Expense | |||||||||||
Interest expense | 631 | 647 | 639 | 644 | 663 | 706 | 748 | 754 | 2,561 | 2,871 | 2,053 |
Income Before Provision for Income Taxes | 5,153 | 4,310 | 6,374 | 5,205 | 5,899 | 8,210 | 7,629 | 5,380 | 21,042 | 27,118 | 26,040 |
Benefit from income taxes | 1,458 | 1,027 | 1,868 | 1,699 | 1,673 | 2,678 | 2,686 | 1,747 | 6,052 | 8,784 | 8,173 |
Net income attributable to Northrim BanCorp, Inc. | $ 3,590 | $ 3,095 | $ 4,350 | $ 3,376 | $ 4,106 | $ 5,335 | $ 4,781 | $ 3,561 | 14,411 | 17,783 | 17,408 |
Northrim Bancorp, Inc. | |||||||||||
Income | |||||||||||
Interest income | 369 | 116 | 197 | ||||||||
Equity in undistributed earnings from subsidiaries | 15,396 | 19,005 | 19,525 | ||||||||
Other income | 0 | 175 | 30 | ||||||||
Total Income | 15,765 | 19,296 | 19,752 | ||||||||
Expense | |||||||||||
Interest expense | 534 | 463 | 451 | ||||||||
Administrative and other expenses | 2,382 | 2,191 | 3,243 | ||||||||
Total Expense | 2,916 | 2,654 | 3,694 | ||||||||
Income Before Provision for Income Taxes | 12,849 | 16,642 | 16,058 | ||||||||
Benefit from income taxes | (1,562) | (1,141) | (1,350) | ||||||||
Net income attributable to Northrim BanCorp, Inc. | 14,411 | 17,783 | 17,408 | ||||||||
Northrim Bancorp, Inc. | Northrim Bank | |||||||||||
Income | |||||||||||
Equity in undistributed earnings from subsidiaries | 15,301 | 18,865 | 19,358 | ||||||||
Northrim Bancorp, Inc. | Northrim Investment Services Company | |||||||||||
Income | |||||||||||
Equity in undistributed earnings from subsidiaries | $ 95 | $ 140 | $ 167 |
Parent Company Information 133
Parent Company Information - Statements Of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities: | |||||||||||
Net income attributable to Northrim BanCorp, Inc. | $ 3,590 | $ 3,095 | $ 4,350 | $ 3,376 | $ 4,106 | $ 5,335 | $ 4,781 | $ 3,561 | $ 14,411 | $ 17,783 | $ 17,408 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||||||
Stock-based compensation | 778 | 608 | 360 | ||||||||
Net Cash Provided by Operating Activities | 20,123 | 10,519 | 20,478 | ||||||||
Investing Activities: | |||||||||||
Purchases of investment securities available for sale | (145,707) | (210,308) | (264,943) | ||||||||
Net cash received from Alaska Pacific acquisition | 0 | 0 | 6,367 | ||||||||
Net Cash Used by Investing Activities | (47,499) | (63,339) | (48,658) | ||||||||
Financing Activities: | |||||||||||
Dividends paid to shareholders | (5,372) | (5,117) | (4,750) | ||||||||
Net Cash Provided by Financing Activities | 19,254 | 42,937 | 11,145 | ||||||||
Net Decrease in Cash and Cash Equivalents | (8,122) | (9,883) | (17,035) | ||||||||
Cash and Cash Equivalents at Beginning of Year | 58,673 | 68,556 | 58,673 | 68,556 | 85,591 | ||||||
Cash and Cash Equivalents at End of Year | 50,551 | 58,673 | 50,551 | 58,673 | 68,556 | ||||||
Northrim Bancorp, Inc. | |||||||||||
Operating Activities: | |||||||||||
Net income attributable to Northrim BanCorp, Inc. | 14,411 | 17,783 | 17,408 | ||||||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||||||
Equity in undistributed earnings from subsidiaries | (15,396) | (19,005) | (19,525) | ||||||||
Stock-based compensation | 778 | 608 | 360 | ||||||||
Changes in other assets and liabilities | (1,458) | (298) | (241) | ||||||||
Net Cash Provided by Operating Activities | (1,665) | (912) | (1,998) | ||||||||
Investing Activities: | |||||||||||
Purchases of investment securities available for sale | (1,373) | (3,549) | 0 | ||||||||
Proceeds from sales/calls/maturities of securities available for sale | 0 | 2,998 | 0 | ||||||||
Net cash received from Alaska Pacific acquisition | 0 | 0 | 6,367 | ||||||||
Investment in Northrim Bank, NISC, NCT1 & NST2 | 10,115 | 9,842 | (3,000) | ||||||||
Net Cash Used by Investing Activities | 8,742 | 9,291 | 3,367 | ||||||||
Financing Activities: | |||||||||||
Dividends paid to shareholders | (5,372) | (5,117) | (4,750) | ||||||||
Proceeds from issuance of common stock and excess tax benefits | 0 | 106 | 150 | ||||||||
Net Cash Provided by Financing Activities | (5,372) | (5,011) | (4,600) | ||||||||
Net Decrease in Cash and Cash Equivalents | 1,705 | 3,368 | (3,231) | ||||||||
Cash and Cash Equivalents at Beginning of Year | $ 10,258 | $ 6,890 | 10,258 | 6,890 | 10,121 | ||||||
Cash and Cash Equivalents at End of Year | $ 11,963 | $ 10,258 | $ 11,963 | $ 10,258 | $ 6,890 |
Quarterly Results of Operati134
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total interest income | $ 14,522 | $ 14,860 | $ 14,718 | $ 14,818 | $ 15,063 | $ 15,388 | $ 14,943 | $ 14,386 | $ 58,918 | $ 59,780 | $ 54,346 |
Total interest expense | 631 | 647 | 639 | 644 | 663 | 706 | 748 | 754 | 2,561 | 2,871 | 2,053 |
Net Interest Income | 13,891 | 14,213 | 14,079 | 14,174 | 14,400 | 14,682 | 14,195 | 13,632 | 56,357 | 56,909 | 52,293 |
Provision for loan losses | 743 | 652 | 200 | 703 | 376 | 676 | 376 | 326 | 2,298 | 1,754 | (636) |
Other operating income | 10,359 | 11,935 | 11,864 | 9,105 | 10,104 | 12,407 | 11,563 | 10,535 | 43,263 | 44,608 | 20,034 |
Compensation expense - RML acquisition payments | 708 | 3,250 | 687 | 130 | 1,225 | 780 | 587 | 1,502 | 4,775 | 4,094 | 0 |
Other operating expense | 17,646 | 17,936 | 18,682 | 17,241 | 17,004 | 17,423 | 17,166 | 16,959 | 71,505 | 68,551 | 46,923 |
Income Before Provision for Income Taxes | 5,153 | 4,310 | 6,374 | 5,205 | 5,899 | 8,210 | 7,629 | 5,380 | 21,042 | 27,118 | 26,040 |
Provision for income taxes | 1,458 | 1,027 | 1,868 | 1,699 | 1,673 | 2,678 | 2,686 | 1,747 | 6,052 | 8,784 | 8,173 |
Net Income | 3,695 | 3,283 | 4,506 | 3,506 | 4,226 | 5,532 | 4,943 | 3,633 | 14,990 | 18,334 | 17,867 |
Less: Net income attributable to the noncontrolling interest | 105 | 188 | 156 | 130 | 120 | 197 | 162 | 72 | 579 | 551 | 459 |
Net Income Attributable to Northrim BanCorp, Inc. | $ 3,590 | $ 3,095 | $ 4,350 | $ 3,376 | $ 4,106 | $ 5,335 | $ 4,781 | $ 3,561 | $ 14,411 | $ 17,783 | $ 17,408 |
Earnings per share, basic (in USD per share) | $ 0.52 | $ 0.45 | $ 0.63 | $ 0.49 | $ 0.60 | $ 0.78 | $ 0.70 | $ 0.52 | $ 2.09 | $ 2.59 | $ 2.57 |
Earnings per share, diluted (in USD per share) | $ 0.51 | $ 0.44 | $ 0.63 | $ 0.48 | $ 0.59 | $ 0.77 | $ 0.69 | $ 0.51 | $ 2.06 | $ 2.56 | $ 2.54 |