Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 09, 2015 | Jun. 30, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | First Financial Northwest, Inc. | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Entity Central Index Key | 1401564 | ||
Current Fiscal Year End Date | -19 | ||
Entity Common Stock, Shares Outstanding | 15,031,981 | ||
Entity Public Float | $121,820,492 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
FIRST_FINANCIAL_NORTHWEST_INC_
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash on hand and in banks | $5,920 | $6,074 |
Interest-earning deposits | 98,129 | 49,501 |
Investments available-for-sale, at fair value | 120,374 | 144,364 |
Loans receivable, net of allowance of $10,491 and $12,994 | 663,938 | 663,153 |
Premises and equipment, net | 16,734 | 17,291 |
Federal Home Loan Bank (FHLB) stock, at cost | 6,745 | 7,017 |
Accrued interest receivable | 3,265 | 3,698 |
Deferred tax assets, net | 8,338 | 14,835 |
Other real estate owned (OREO) | 9,283 | 11,465 |
Prepaid expenses and other assets | 4,271 | 3,581 |
Total assets | 936,997 | 920,979 |
Liabilities and Stockholders' Equity | ||
Interest-bearing deposits | 599,773 | 601,446 |
Noninterest-bearing deposits | 14,354 | 10,619 |
Total Deposits | 614,127 | 612,065 |
Advances from the FHLB | 135,500 | 119,000 |
Advance payments from borrowers for taxes and insurance | 1,707 | 1,846 |
Accrued interest payable | 142 | 88 |
Other liabilities | 4,109 | 3,625 |
Total liabilities | 755,585 | 736,624 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Preferred stock, $0.01 par value; authorized 10,000,000 shares, no shares issued or outstanding | 0 | 0 |
Common stock, $0.01 par value; authorized 90,000,000 shares; issued and outstanding 15,167,381 shares at December 31, 2014, and 16,392,139 shares at December 31, 2013 | 151 | 164 |
Additional paid-in capital | 153,395 | 166,866 |
Retained earnings, substantially restricted | 36,969 | 29,220 |
Accumulated other comprehensive loss, net of tax | -357 | -2,020 |
Unearned Employee Stock Ownership Plan (ESOP) shares | -8,746 | -9,875 |
Total stockholders' equity | 181,412 | 184,355 |
Total liabilities and stockholders' equity | $936,997 | $920,979 |
FIRST_FINANCIAL_NORTHWEST_INC_1
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Assets | ||
Loans receivable allowance for loan losses | $10,491 | $12,994 |
Stockholders' Equity | ||
Preferred stock par value per share | $0.01 | $0.01 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock par value per share | $0.01 | $0.01 |
Common stock shares authorized | 90,000,000 | 90,000,000 |
Common stock shares issued | 15,167,381 | 16,392,139 |
Common stock shares outstanding | 15,167,381 | 16,392,139 |
FIRST_FINANCIAL_NORTHWEST_INC_2
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest income | |||
Loans, including fees | $36,280 | $36,207 | $38,956 |
Investments available-for-sale | 2,287 | 2,250 | 2,143 |
Interest-earning deposits with banks | 115 | 79 | 367 |
Dividends on FHLB stock | 7 | 3 | 0 |
Total interest income | 38,689 | 38,539 | 41,466 |
Interest expense | |||
Deposits | 5,063 | 6,794 | 10,191 |
FHLB advances | 1,178 | 732 | 2,055 |
Total interest expense | 6,241 | 7,526 | 12,246 |
Net interest income | 32,448 | 31,013 | 29,220 |
(Recapture of provision) provision for loan losses | -2,100 | -100 | 3,050 |
Net interest income after (recapture of provision) provision for loan losses | 34,548 | 31,113 | 26,170 |
Noninterest income | |||
Net (loss) gain on sale of investments | -20 | -38 | 301 |
Other | 518 | 929 | 673 |
Total noninterest income | 498 | 891 | 974 |
Noninterest expense | |||
Salaries and employee benefits | 11,987 | 13,966 | 13,916 |
Occupancy and equipment | 1,347 | 1,370 | 1,552 |
Professional fees | 1,540 | 1,619 | 1,850 |
Data processing | 681 | 677 | 701 |
Loss (gain) on sale of OREO property, net | 86 | -1,112 | -607 |
OREO market value adjustments | 393 | 403 | 2,046 |
OREO related expenses, net | 190 | 601 | 1,764 |
Regulatory assessments | 396 | 693 | 1,004 |
Insurance and bond premiums | 401 | 518 | 449 |
Proxy contest and related litigation | 0 | 106 | 1,054 |
Marketing | 97 | 104 | 227 |
Prepayment penalty on FHLB advances | 0 | 679 | 0 |
Other general and administrative | 1,385 | 1,458 | 1,474 |
Total noninterest expense | 18,503 | 21,082 | 25,430 |
Income before provision for federal income taxes | 16,543 | 10,922 | 1,714 |
Federal income tax provision (benefit) | 5,856 | -13,543 | -999 |
Net income | $10,687 | $24,465 | $2,713 |
Basic earnings (loss) per share (usd per share) | $0.72 | $1.47 | $0.15 |
Diluted earnings (loss) per share (usd per share) | $0.71 | $1.46 | $0.15 |
Weighted average number of common shares outstanding (in shares) | 14,747,086 | 16,580,882 | 17,643,978 |
Weighted average number of diluted shares outstanding (in shares) | 14,887,198 | 16,609,867 | 17,662,423 |
FIRST_FINANCIAL_NORTHWEST_INC_3
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $10,687 | $24,465 | $2,713 |
Unrealized holding gains (losses) on available-for-sale securities (net of tax provision (benefit) of $888, ($106), and $0 for 2014, 2013, and 2012, respectively) | 1,650 | -2,793 | 538 |
Reclassification adjustment for net (gains) losses realized in income (net of tax benefit of $7, $13, and $0 for 2014, 2013, and 2012, respectively) | 13 | 25 | -301 |
Other comprehensive income (loss), before tax | |||
Other comprehensive income (loss), net of tax | 1,663 | -2,768 | 237 |
Total comprehensive income | $12,350 | $21,697 | $2,950 |
FIRST_FINANCIAL_NORTHWEST_INC_4
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Consolidated Statement of Comprehensive Income Parenthetical (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Tax provision (benefit) | $888 | ($106) | $0 |
Tax benefit | $7 | $13 | $0 |
FIRST_FINANCIAL_NORTHWEST_INC_5
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income, net of tax | Unearned ESOP Shares | Total Stockholders' Equity |
In Thousands, except Share data, unless otherwise specified | |||||||
Balances at beginning of period - amount at Dec. 31, 2011 | $188 | $188,816 | $3,937 | $511 | ($12,132) | $181,320 | |
Balances at beginning of period - shares at Dec. 31, 2011 | 18,805,168 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Total other comprehensive income, net of tax - amount | 2,950 | 2,713 | 237 | 2,950 | |||
Compensation related to stock options and restricted stock awards | 1,987 | 1,987 | |||||
Allocation of 112,853 ESOP shares | -269 | 1,129 | 860 | ||||
Balances at end of period - amount at Dec. 31, 2012 | 188 | 190,534 | 6,650 | 748 | -11,003 | 187,117 | |
Balances at beginning of period - shares at Dec. 31, 2012 | 18,805,168 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Total other comprehensive income, net of tax - amount | 21,697 | 24,465 | -2,768 | 21,697 | |||
Cash dividends declared and paid - amount | -1,895 | -1,895 | |||||
Exercise of stock options - shares | 314,989 | ||||||
Exercise of stock options - amount | 3 | 3,020 | 3,023 | ||||
Purchase and retirement of common stock - shares | -2,728,018 | ||||||
Purchase and retirement of common stock - amount | -27 | -28,063 | -28,090 | ||||
Compensation related to stock options and restricted stock awards | 1,416 | 1,416 | |||||
Allocation of 112,853 ESOP shares | -41 | 1,128 | 1,087 | ||||
Balances at end of period - amount at Dec. 31, 2013 | 184,355 | 164 | 166,866 | 29,220 | -2,020 | -9,875 | 184,355 |
Balances at end of period - shares at Dec. 31, 2013 | 16,392,139 | 16,392,139 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Total other comprehensive income, net of tax - amount | 12,350 | 10,687 | 1,663 | 12,350 | |||
Cash dividends declared and paid - amount | -2,938 | -2,938 | |||||
Exercise of stock options - shares | 369,275 | ||||||
Exercise of stock options - amount | 3 | 3,608 | 3,611 | ||||
Purchase and retirement of common stock - shares | -1,594,033 | ||||||
Purchase and retirement of common stock - amount | -16 | -17,550 | -17,566 | ||||
Compensation related to stock options and restricted stock awards | 384 | 384 | |||||
Allocation of 112,853 ESOP shares | 87 | 1,129 | 1,216 | ||||
Balances at end of period - amount at Dec. 31, 2014 | $181,412 | $151 | $153,395 | $36,969 | ($357) | ($8,746) | $181,412 |
Balances at end of period - shares at Dec. 31, 2014 | 15,167,381 | 15,167,381 |
FIRST_FINANCIAL_NORTHWEST_INC_6
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMETNS OF STOCKHOLDERS' EQUITY (PARENTHETICALS) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividend declared and paid per share (usd per share) | $0.00 | $0.00 | $0 |
Allocated shares | 112,854 | 112,853 | 112,853 |
FIRST_FINANCIAL_NORTHWEST_INC_7
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | |||
Net income | $10,687 | $24,465 | $2,713 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
(Recapture of provision) provision for loan losses | -2,100 | -100 | 3,050 |
OREO market value adjustments | 393 | 403 | 2,046 |
Loss (gain) on sale of OREO property, net | 86 | -1,112 | -607 |
Depreciation of premises and equipment | 755 | 799 | 976 |
Net amortization of premiums and discounts on investments | 1,389 | 1,863 | 1,678 |
Deferred federal income taxes (benefit) | 5,602 | -13,742 | -1,000 |
Allocation of ESOP shares | 1,216 | 1,087 | 860 |
Stock compensation expense | 384 | 1,416 | 1,987 |
Net realized loss (gain) on sale of investments | 20 | 38 | -301 |
Loss on disposal of building and equipment | 11 | 0 | 12 |
Changes in operating assets and liabilities: | |||
Prepaid expenses and other assets | -690 | 1,418 | 105 |
Net (decrease) increase in advance payments from borrowers for taxes and insurance | -139 | -340 | 93 |
Accrued interest receivable | 433 | -214 | 372 |
Accrued interest payable | 54 | -91 | -5 |
Other liabilities | 484 | -685 | 1,248 |
Net cash provided by operating activities | 18,585 | 15,205 | 13,227 |
Cash flows from investing activities | |||
Proceeds from sales and call of investments | 6,430 | 45,137 | 23,756 |
Principal repayments on investments | 20,818 | 27,009 | 21,383 |
Purchases of investments | -2,109 | -69,010 | -69,539 |
Net (increase) decrease in loans receivable | -508 | -19,070 | 37,646 |
Capital (expenditures) reimbursements related to OREO | -120 | -75 | 16 |
Proceeds from sales of OREO properties | 3,646 | 13,151 | 19,366 |
Net proceeds from sale or disposal of fixed assets | 0 | 9 | 0 |
FHLB stock redemptions | 272 | 264 | 132 |
Purchases of premises and equipment | -209 | -26 | -139 |
Net cash provided in investing activities | 28,220 | -2,611 | 32,621 |
Cash flows from financing activities | |||
Net increase (decrease) in deposits | 2,062 | -53,732 | -122,868 |
Advances from the Federal Home Loan Bank | 16,500 | 119,010 | 110 |
Repayments of advances from the FHLB | 0 | -83,076 | -110 |
Proceeds from stock options exercises | 3,611 | 3,023 | 0 |
Repurchase and retirement of common stock | -17,566 | -28,090 | 0 |
Dividends paid | -2,938 | -1,895 | 0 |
Net cash used by financing activities | 1,669 | -44,760 | -122,868 |
Cash and cash equivalents: | |||
Net increase (decrease) in cash and cash equivalents | 48,474 | -32,166 | -77,020 |
Cash and cash equivalents at beginning of year | 55,575 | 87,741 | 164,761 |
Cash and cash equivalents at end of year | 104,049 | 55,575 | 87,741 |
Cash paid during the period for: | |||
Interest | 6,187 | 7,617 | 12,251 |
Federal income taxes | 309 | 98 | 60 |
Noncash transactions: | |||
Loans transferred to OREO, net of deferred loan fees and allowance for loan and lease losses (ALLL) | 1,823 | 6,485 | 12,124 |
Increase in valuation allowance for investments available-for-sale | $2,558 | ($2,861) | $237 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies |
Description of Business | |
First Financial Northwest, Inc. (“First Financial Northwest”), a Washington corporation, was formed on June 1, 2007 for the purpose of becoming the holding company for First Savings Bank Northwest (“First Savings Bank” or “the Bank”) in connection with the conversion from a mutual holding company structure to a stock holding company structure completed on October 9, 2007. First Financial Northwest's business activities generally are limited to passive investment activities and oversight of its investment in First Savings Bank. Accordingly, the information presented in the consolidated financial statements and related data, relates primarily to First Savings Bank. First Financial Northwest is a savings and loan holding company and is subject to regulation by the Board of Governors of the Federal Reserve Bank of San Francisco (“FRB”) as the successor to the Office of Thrift Supervision (“OTS”). The Company has filed an application with the FRB to convert from a savings and loan holding company to a bank holding company, consistent with First Savings Bank's shift in focus from a traditional savings and loan association towards a full service, community bank. While we anticipate this conversion to be completed in the first calendar quarter of 2015, no assurance can be made regarding the timing. In addition, the completion of the conversion is subject to the receipt of all required regulatory approvals. First Savings Bank is regulated by the Federal Deposit Insurance Corporation (“FDIC”) and the Washington State Department of Financial Institutions (“DFI”). | |
First Savings Bank was organized in 1923 as a Washington state-chartered savings and loan association, converted to a federal mutual savings and loan association in 1935, and converted to a Washington state-chartered mutual savings bank in 1992. In 2002, First Savings Bank reorganized into a two-tier mutual holding company structure, became a stock savings bank and became the wholly-owned subsidiary of First Financial of Renton, Inc. In connection with the mutual to stock conversion in 2007, First Savings Bank changed its name to First Savings Bank Northwest. | |
First Savings Bank is a community-based savings bank primarily serving King and, to a lesser extent, Pierce, Snohomish and Kitsap counties, Washington through one full-service banking office located in Renton, Washington. First Savings Bank's business consists of attracting deposits from the public and utilizing these deposits to originate one-to-four family residential, multifamily, commercial real estate, construction/land development, business and consumer loans. The Bank's current business strategy includes an emphasis on one-to-four family residential, multifamily, commercial, and construction real estate lending. | |
Basis of Presentation and Use of Estimates | |
The accounting and reporting policies of First Financial Northwest and its subsidiaries conform to U.S. generally accepted accounting principles (“GAAP”). In preparing the consolidated financial statements, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided. Actual results could differ from these estimates. Material estimates particularly subject to change include the allowance for loan and lease losses (“ALLL”), other real estate owned (“OREO”), deferred tax assets and the fair values of financial instruments. | |
Consolidation | |
The accompanying consolidated financial statements include the accounts of First Financial Northwest and its wholly-owned subsidiaries First Savings Bank and First Financial Diversified Corporation (collectively, "the Company"). All significant intercompany balances and transactions between First Financial Northwest and its subsidiaries have been eliminated in consolidation. | |
Reclassification | |
Certain amounts in the consolidated financial statements for prior years have been reclassified to conform to the current consolidated financial statement presentation. The results of the reclassifications are not considered material and have no effect on previously reported net income or stockholders' equity. | |
Subsequent Events | |
The Company has evaluated events and transactions subsequent to December 31, 2014 for potential recognition or disclosure and determined there are no such events or transactions requiring recognition or disclosure. | |
Cash and Cash Equivalents | |
For purposes of reporting cash flows, cash and cash equivalents include cash on hand and in banks, interest-bearing deposits and federal funds sold all with maturities of three months or less. | |
The Bank is required to maintain an average reserve balance with the FRB or maintain such reserve balance in the form of cash. The required reserve balance was $171,000 at December 31, 2014, and $68,000 at December 31, 2013. | |
Investments | |
Investments are classified into one of three categories: (1) held-to-maturity, (2) available-for-sale, or (3) trading. We had no held-to-maturity or trading securities at December 31, 2014, or 2013. Investments are categorized as held-to-maturity when we have the positive intent and ability to hold them to maturity. | |
Investments are classified as available-for-sale if the Company intends to hold the securities for an indefinite period of time, but not necessarily to maturity. Investments available-for-sale are reported at fair value. Unrealized gains and losses on investments available-for-sale are excluded from earnings and are reported in other comprehensive income (loss), net of applicable taxes within the Consolidated Statement of Comprehensive Income (Loss). Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Amortization or accretion of purchase premiums and discounts are included in investment income using the level-yield method over the remaining period to contractual maturity. Dividend or interest income is recognized when it is earned. | |
The estimated fair value of investments is based on quoted market prices for investments traded in the public marketplace or dealer quotes. Mortgage-backed investments represent participation interest in pools of first mortgage loans originated and serviced by the issuers of the investments. | |
Management makes an assessment to determine whether there have been any events or economic circumstances to indicate that a security on which there is an unrealized loss is impaired on an other-than-temporary basis. Management considers many factors including the severity and duration of the impairment, recent events specific to the issuer or industry, and for debt securities, external credit ratings and recent downgrades. Securities on which there is an unrealized loss that is deemed to be an other-than-temporary impairment (“OTTI”) are written down to fair value. For equity securities, the write-down is recorded as a realized loss in noninterest income in the Consolidated Income Statements. For debt securities, if management intends to sell the security or it is likely that management will be required to sell the security before recovering its cost basis, the entire impairment loss would be recognized in earnings as an OTTI. If management does not intend to sell the security and it is not likely that management will be required to sell the security but management does not expect to recover the entire amortized cost basis of the security, only the portion of the impairment loss representing credit losses would be recognized in earnings. The credit loss on a security is measured as the difference between the amortized cost basis and the present value of the cash flows expected to be collected. Projected cash flows are discounted by the original or current effective interest rate depending on the nature of the security being measured for potential OTTI. The remaining impairment related to all other factors, the difference between the present value of the cash flows expected to be collected and fair value, is recognized as a charge to other comprehensive income (“OCI”). Impairment losses related to all other factors are presented as separate categories within OCI. | |
Loans Receivable | |
Loans are recorded at their outstanding principal balance adjusted for charge-offs, the ALLL and net deferred fees or costs. Interest on loans is calculated using the simple interest method based on the month end balance of the principal amount outstanding and is credited to income as earned. | |
The accrual of interest on loans is discontinued at the time the loan is 90 days delinquent unless the loan is well secured and in the process of collection. Consumer and other loans are typically managed in the same manner. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is doubtful. | |
All interest accrued but not collected on loans that are placed on nonaccrual is reversed against interest income. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. In order to return a nonaccrual loan to accrual status, each loan is evaluated on a case-by-case basis. We evaluate the borrower's financial condition to ensure that future loan payments are reasonably assured. We also take into consideration the borrower's willingness and ability to make the loan payments and historical repayment performance. We require the borrower to make the loan payments consistently for a period of at least six months as agreed to under the terms of any modified loan agreement before we will consider reclassifying the loan to accrual status. | |
Allowance for Loan and Lease Losses (ALLL) | |
The ALLL is a valuation allowance for probable incurred credit losses. Losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Any subsequent recoveries are credited to the allowance. | |
The ALLL is evaluated on a regular basis by management and is based upon management's periodic review of the collectability of the loans and factors such as the nature and volume of the loan portfolio, historical loss considerations, adverse situations that may affect the borrower's ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. The evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. | |
While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions or changes to the credit quality of the loan portfolio. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company's ALLL. Such agencies may require management to make adjustments to the allowance based on their judgments about information available to them at the time of their examination. | |
Troubled Debt Restructurings ("TDRs") | |
Certain loan modifications or restructurings are accounted for as TDRs. In general, the modification or restructuring of a debt is considered a TDR if, for economic or legal reasons related to the borrower's financial difficulties, a concession is granted to the borrower that the Company would not otherwise consider. Examples of these modifications or restructurings include advancement of maturity date, accepting interest only payments for a period of time, or granting an interest rate concession for a period of time. The impaired portion of the loan with an interest rate concession and/or interest-only payments for a specific period of time are calculated based on the present value of expected future cash flows discounted at the loan’s effective interest rate. The effective interest rate is the rate of return implicit on the original loan. This impaired amount reduces the ALLL and a valuation allowance is established to reduce the loan balance. As loan payments are received in future periods, the ALLL entry is reversed and the valuation allowance is reduced utilizing the level yield method over the modification period. A loan that is determined to be classified as a TDR is generally reported as a TDR until the loan is paid in full or otherwise settled, sold, or charged-off. | |
Impaired Loans | |
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, market conditions, rent rolls and the financial strength of the borrower(s) and guarantor(s), if any. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. | |
Management determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrowers, including the length of the delay, the reasons for the delay, the borrower's prior payment history and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured by the fair value method on a loan-by-loan basis. | |
When a loan is identified as impaired, its impairment is measured using the present value of expected future cash flows, discounted at the loan's effective interest rate, except when the sole (remaining) source of repayment for the loan is the operation or liquidation of the collateral. In these cases, the Company uses an observable market price or current fair value of the collateral, less selling costs when foreclosure is probable, instead of discounted cash flows. If management determines that the value of the impaired loan is less than the recorded investment in the loan, an impairment is recognized through an allowance estimate or a charge-off to the ALLL. | |
Loan Fees | |
Loan origination fees and certain direct origination costs are deferred and amortized as an adjustment to the yield of the loans over their contractual lives, using the effective interest method. In the event loans are sold, the remaining deferred loan origination fees and/or costs are recognized as a component of the gains or losses on the sales of loans. | |
Premises and Equipment | |
Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives used to compute depreciation and amortization is 15 to 40 years for buildings and building improvements, and is three to seven years for furniture, fixtures, and equipment. Management reviews buildings, improvements and equipment for impairment on an annual basis or whenever events or changes in the circumstances indicate that the undiscounted cash flows for the property are less than its carrying value. If identified, an impairment loss is recognized through a charge to earnings based on the fair value of the property. | |
Federal Home Loan Bank Stock | |
As a member of the Federal Home Loan Bank System, the Bank is required to maintain a minimum level of investment in the Federal Home Loan Bank of Seattle (“FHLB”) stock, based on specified percentages of outstanding mortgages and the Bank's outstanding FHLB advances. Ownership of FHLB stock is restricted to the FHLB and member institutions. The Bank's investment in FHLB stock is carried at par value ($100 per share), which reasonably approximates its fair value. | |
Other Real Estate Owned | |
OREO consists principally of properties acquired through foreclosure and is stated at the lower of cost or estimated market value less selling costs. Losses arising from the acquisition of property, in full or partial satisfaction of loans, are charged to the ALLL. | |
Subsequent to the transfer to foreclosed assets held for sale, these assets continue to be recorded at the lower of cost or fair value (less estimated costs to sell), based on periodic evaluations. Subsequent write-downs in value are charged to noninterest expense. Generally, legal and professional fees associated with foreclosures are expensed as incurred. Costs incurred to improve property prior to sale are capitalized; however, in no event are recorded costs allowed to exceed estimated fair value. Subsequent gains, losses, or expenses recognized on the sale of these properties are included in noninterest expense. The amounts that will ultimately be recovered from foreclosed assets may differ substantially from the carrying value of the assets because of future market factors beyond management's control. | |
Loan Commitments and Related Financial Instruments | |
Financial instruments include off-balance sheet credit instruments, such as commitments to make loans, unused lines of credit and commercial letters of credit issued to meet customer financing needs. The face amount of these items represents the exposure to loss before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. | |
Reserve for Unfunded Commitments | |
Management maintains a reserve for unfunded commitments to absorb probable losses associated with our off-balance sheet commitments to lend funds such as approved but not yet funded loans, unused lines of credit, and the undisbursed portion of construction loans. Management determines the adequacy of the reserve based on reviews of individual exposures, current economic conditions, and other relevant factors. The reserve is based on estimates and ultimate losses may vary from the current estimates. The reserve is evaluated on a regular basis and necessary adjustments are reported in earnings during the period in which they become known. The reserve for unfunded commitments is included in the Other liabilities section of the consolidated balance sheets. | |
Stock-Based Compensation | |
Compensation cost is recognized for stock options and restricted stock awards, based on the fair value of these awards at the grant date. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company's common stock at the grant date is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. | |
Federal Income Taxes | |
The Company files a consolidated Federal income tax return. Income taxes are accounted for using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax 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 be applied to taxable income in the periods in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. Valuation allowances are established to reduce the net carrying amount of deferred tax assets if it is determined to be more likely than not that all or some portion of the deferred tax asset will not be realized. | |
Deferred tax assets are recognized subject to management's judgment that realization is more likely than not. A tax position that meets the “more likely than not” recognition threshold is measured to determine the amount of benefit to recognize. The tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. | |
At December 31, 2014 and 2013, the Company had no unrecognized tax benefits. The Company's policy is to recognize interest and penalties on unrecognized tax expenses or benefits in federal income tax expense in the Consolidated Income Statements. There were no interest and penalties for the years ended December 31, 2014 and 2013. The tax years subject to examination by the Internal Revenue Service (“IRS”) are the years ended December 31, 2014, 2013, 2012, and 2011. | |
Employee Stock Ownership Plan | |
The cost of shares issued to the Employee Stock Ownership Plan ("ESOP"), but not yet allocated to participants, is shown as a reduction of stockholders' equity. Compensation expense is based on the market price of shares as they are committed to be released to participant accounts. Dividends on allocated ESOP shares reduce retained earnings; dividends on unearned ESOP shares reduce debt and accrued interest. | |
Earnings Per Share (“EPS”) | |
Basic EPS is computed by dividing net income, reduced by earnings allocated to participating shares of restricted stock, by the weighted-average number of common shares outstanding during the period. As ESOP shares are committed to be released they become outstanding for EPS calculation purposes. ESOP shares not committed to be released are not considered outstanding. The basic EPS calculation excludes the dilutive effect of all common stock equivalents. Diluted earnings per share reflects the weighted-average potential dilution that could occur if all potentially dilutive securities or other commitments to issue common stock were exercised or converted into common stock using the treasury stock method. | |
According to the provisions of ASC 260, Earnings Per Share, nonvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are participating securities and are included in the computation of EPS pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared or accumulated and participation rights in undistributed earnings. Certain of the Company's nonvested restricted stock awards qualify as participating securities. | |
Net income is allocated between the common stock and participating securities pursuant to the two-class method, based on their rights to receive dividends, participate in earnings or absorb losses. Basic earnings per common share is computed by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding during the period, excluding participating nonvested restricted shares. | |
Comprehensive Income | |
Comprehensive income consists of net income and unrealized gains and losses on investments available-for-sale which are also recognized as separate components of equity, net of tax. | |
Advertising Expenses | |
Advertising costs are generally expensed as incurred. | |
Fair Value of Financial Instruments | |
Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. | |
Segment Information | |
The Company's activities are considered to be a single industry segment for financial reporting purposes. The Company is engaged in the business of attracting deposits from the general public and providing lending services. Substantially all income is derived from a diverse base of investments and commercial, construction, mortgage, and consumer lending activities. | |
Recently Issued Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-11, Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU No. 2013-11 requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, except to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. No new recurring disclosures are required. The amendments are effective for annual and interim reporting periods beginning on or after December 15, 2013, and are to be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption of ASU No. 2013-11 did not have a material impact on the Company's consolidated financial statements. | |
In January 2014, the FASB issued ASU No. 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon foreclosure. ASU 2014-04 clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The ASU is effective for annual and interim reporting periods beginning on or after December 15, 2014 and can be applied with a modified retrospective transition method or prospectively. The Company is currently reviewing the requirements of ASU No. 2014-04, but does not expect the ASU to have a material impact on the Company's consolidated financial statements. | |
In August 2014, FASB issued ASU No. 2014-14, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. ASU 2014-14 addresses certain government-sponsored loan guarantee programs, such as those offered by the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA), where qualifying creditors can extend mortgage loans to borrowers with a guarantee that entitles the creditor to recover all or a portion of the unpaid principal balance from the government if the borrower defaults. The objective of this ASU is to reduce variations in practice by addressing the classification of foreclosed mortgage loans that are fully or partially guaranteed under government programs. Currently, some creditors reclassify those loans to real estate as with other foreclosed loans that do not have guarantees; others reclassify the loans to other receivables. The amendments affect creditors that hold government-guaranteed mortgage loans, including those guaranteed by the FHA and the VA. The ASU is effective for annual and interim periods beginning after December 15, 2014. The adoption of this ASU will not have a material impact on the Company's consolidated financial statements. | |
In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20). The ASU eliminates from GAAP the concept of extraordinary items. Under subtopic 225-20, entities were required to separately classify, present, and disclose extraordinary events and transactions that were both unusual in nature and infrequent in occurrence. This amendment will save time and reduce costs for preparers, as well as alleviate uncertainty for auditors and regulators in evaluating potentially extraordinary items. The amendment is effective for fiscal years and interim reporting periods after December 15, 2015. It may be applied prospectively, and retrospectively to all reporting periods presented in the financial statements. The adoption of ASU No. 2015-01 is not expected to have a material impact on the Company's consolidated financial statements. |
Investments
Investments | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||||||
Investments | Investments | |||||||||||||||||||||||
The following tables summarize the amortized cost and fair value of investments available-for-sale at December 31, 2014, and 2013, and the corresponding amounts of gross unrealized gains and losses. | ||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Mortgage-backed investments: | ||||||||||||||||||||||||
Fannie Mae | $ | 40,083 | $ | 863 | $ | (30 | ) | $ | 40,916 | |||||||||||||||
Freddie Mac | 21,442 | 526 | (22 | ) | 21,946 | |||||||||||||||||||
Ginnie Mae | 26,049 | 87 | (122 | ) | 26,014 | |||||||||||||||||||
Municipal bonds | 642 | 2 | — | 644 | ||||||||||||||||||||
U.S. Government agencies | 16,863 | 104 | (151 | ) | 16,816 | |||||||||||||||||||
Corporate bonds | 14,061 | 39 | (62 | ) | 14,038 | |||||||||||||||||||
$ | 119,140 | $ | 1,621 | $ | (387 | ) | $ | 120,374 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Mortgage-backed investments: | ||||||||||||||||||||||||
Fannie Mae | $ | 46,234 | $ | 623 | $ | (625 | ) | $ | 46,232 | |||||||||||||||
Freddie Mac | 25,707 | 343 | (194 | ) | 25,856 | |||||||||||||||||||
Ginnie Mae | 34,403 | 63 | (593 | ) | 33,873 | |||||||||||||||||||
Municipal bonds | 2,043 | 6 | (199 | ) | 1,850 | |||||||||||||||||||
U.S. Government agencies | 23,222 | 123 | (641 | ) | 22,704 | |||||||||||||||||||
Corporate bonds | 14,079 | 36 | (266 | ) | 13,849 | |||||||||||||||||||
$ | 145,688 | $ | 1,194 | $ | (2,518 | ) | $ | 144,364 | ||||||||||||||||
There were no investments classified as held-to-maturity at December 31, 2014, or 2013. | ||||||||||||||||||||||||
The amortized cost and estimated fair value of investments available-for-sale at December 31, 2014, by expected maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Investments not due at a single maturity date, primarily mortgage-backed investments are shown separately. | ||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Due within one year | $ | — | $ | — | ||||||||||||||||||||
Due after one year through five years | 13,615 | 13,533 | ||||||||||||||||||||||
Due after five years through ten years | 15,102 | 15,048 | ||||||||||||||||||||||
Due after ten years | 2,849 | 2,918 | ||||||||||||||||||||||
31,566 | 31,499 | |||||||||||||||||||||||
Mortgage-backed investments | 87,574 | 88,875 | ||||||||||||||||||||||
$ | 119,140 | $ | 120,374 | |||||||||||||||||||||
Under Washington state law, in order to participate in the public funds program the Company is required to pledge 100% of the public deposits held in the form of eligible securities. Investments with a carrying value of $16.3 million and $21.3 million were pledged as collateral for public deposits at December 31, 2014, and 2013, respectively, both of which exceeded the minimum collateral requirements established by the Washington Public Deposit Protection Commission. At December 31, 2014, and 2013, there were no investments pledged as collateral for FHLB advances. | ||||||||||||||||||||||||
Sales of available-for-sale investments were as follows: | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Proceeds | $ | 4,980 | $ | 45,137 | $ | 23,756 | ||||||||||||||||||
Gross gains | — | 11 | 307 | |||||||||||||||||||||
Gross losses | (20 | ) | (49 | ) | (6 | ) | ||||||||||||||||||
The following tables summarize the aggregate fair value and gross unrealized loss by length of time those investments have been continuously in an unrealized loss position at December 31, 2014 and 2013. | ||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||
Loss | Loss | Loss | ||||||||||||||||||||||
Mortgage-backed investments: | (In thousands) | |||||||||||||||||||||||
Fannie Mae | $ | — | $ | — | $ | 1,456 | $ | (30 | ) | $ | 1,456 | $ | (30 | ) | ||||||||||
Freddie Mac | — | — | 1,832 | (22 | ) | 1,832 | (22 | ) | ||||||||||||||||
Ginnie Mae | 1,883 | (6 | ) | 9,952 | (116 | ) | 11,835 | (122 | ) | |||||||||||||||
U.S. Government agencies | 545 | — | 8,096 | (151 | ) | 8,641 | (151 | ) | ||||||||||||||||
Corporate bonds | 1,496 | (4 | ) | 5,942 | (58 | ) | 7,438 | (62 | ) | |||||||||||||||
$ | 3,924 | $ | (10 | ) | $ | 27,278 | $ | (377 | ) | $ | 31,202 | $ | (387 | ) | ||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||
Loss | Loss | Loss | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Mortgage-backed investments: | ||||||||||||||||||||||||
Fannie Mae | $ | 27,429 | $ | (625 | ) | $ | — | $ | — | $ | 27,429 | $ | (625 | ) | ||||||||||
Freddie Mac | 8,704 | (155 | ) | 2,483 | (39 | ) | 11,187 | (194 | ) | |||||||||||||||
Ginnie Mae | 16,617 | (278 | ) | 12,730 | (315 | ) | 29,347 | (593 | ) | |||||||||||||||
Municipal bonds | — | — | 1,201 | (199 | ) | 1,201 | (199 | ) | ||||||||||||||||
U.S. Government agencies | 7,702 | (596 | ) | 4,955 | (45 | ) | 12,657 | (641 | ) | |||||||||||||||
Corporate bonds | 8,796 | (266 | ) | — | — | 8,796 | (266 | ) | ||||||||||||||||
$ | 69,248 | $ | (1,920 | ) | $ | 21,369 | $ | (598 | ) | $ | 90,617 | $ | (2,518 | ) | ||||||||||
At December 31, 2014, the Company had 24 securities with a gross unrealized loss of $387,000 with a fair value of $31.2 million. At December 31, 2013, the Company had 44 securities with a gross unrealized loss of $2.5 million with a fair value of $90.6 million. Management reviewed the financial condition of the entities underlying the securities at both December 31, 2014, and December 31, 2013, and determined that no OTTI was required. | ||||||||||||||||||||||||
On a quarterly basis, management makes an assessment to determine whether there have been any events or economic circumstances to indicate that a security on which there is an unrealized loss is impaired on an other-than-temporary basis. The Company considers many factors including the severity and duration of the impairment, recent events specific to the issuer or industry, and for debt securities, external credit ratings and recent downgrades. Securities on which there is an unrealized loss that is deemed to be an OTTI are written down to fair value. For equity securities, the write-down is recorded as a realized loss in noninterest income on the Company's Consolidated Income Statements. For debt securities, if the Company intends to sell the security or it is likely that the Company will be required to sell the security before recovering its cost basis, the entire impairment loss would be recognized in earnings as an OTTI. If the Company does not intend to sell the security and it is not likely that it will be required to sell the security but does not expect to recover the entire amortized cost basis of the security, only the portion of the impairment loss representing credit losses would be recognized in earnings. The credit loss on a security is measured as the difference between the amortized cost basis and the present value of the cash flows expected to be collected. Projected cash flows are discounted by the original or current effective interest rate depending on the nature of the security being measured for potential OTTI. The remaining impairment related to all other factors, the difference between the present value of the cash flows expected to be collected and fair value, is recognized as a charge to other comprehensive income (“OCI”). Impairment losses related to all other factors are presented as separate categories within OCI. For the years ended December 31, 2014, and 2013, the Company did not have any OTTI losses on investments. |
Loans_Receivable
Loans Receivable | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||
Loans Receivable | Loans Receivable | |||||||||||||||||||||||||||
Loans receivable at December 31, 2014, and 2013 are summarized as follows: | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Permanent owner occupied | $ | 161,013 | $ | 158,797 | ||||||||||||||||||||||||
Permanent non-owner occupied | 112,180 | 121,877 | ||||||||||||||||||||||||||
Construction non-owner occupied | 500 | — | ||||||||||||||||||||||||||
273,693 | 280,674 | |||||||||||||||||||||||||||
Multifamily: | ||||||||||||||||||||||||||||
Permanent | 116,014 | 106,152 | ||||||||||||||||||||||||||
Construction | 4,450 | 12,360 | ||||||||||||||||||||||||||
120,464 | 118,512 | |||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||
Permanent | 239,211 | 227,016 | ||||||||||||||||||||||||||
Construction | 6,100 | 19,905 | ||||||||||||||||||||||||||
Land | 2,956 | 1,831 | ||||||||||||||||||||||||||
248,267 | 248,752 | |||||||||||||||||||||||||||
Construction/land development: (1) | ||||||||||||||||||||||||||||
One-to-four family residential | 19,860 | 3,977 | ||||||||||||||||||||||||||
Multifamily | 17,902 | 12,491 | ||||||||||||||||||||||||||
Commercial | 4,300 | 6,726 | ||||||||||||||||||||||||||
Land development | 8,993 | 7,461 | ||||||||||||||||||||||||||
51,055 | 30,655 | |||||||||||||||||||||||||||
Business | 3,783 | 1,142 | ||||||||||||||||||||||||||
Consumer | 7,130 | 9,201 | ||||||||||||||||||||||||||
Total loans | 704,392 | 688,936 | ||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||
Loans in process ("LIP") | 27,359 | 10,209 | ||||||||||||||||||||||||||
Deferred loan fees, net | 2,604 | 2,580 | ||||||||||||||||||||||||||
ALLL | 10,491 | 12,994 | ||||||||||||||||||||||||||
Loans receivable, net | $ | 663,938 | $ | 663,153 | ||||||||||||||||||||||||
___________ | ||||||||||||||||||||||||||||
(1) | Excludes construction loans that will convert to permanent loans. The Company considers these loans to be "rollovers" in that one loan is originated for both the construction loan and permanent financing. These loans are classified according to the underlying collateral. At December 31, 2014, the Company had $6.1 million, or 2.5% of the total commercial real estate portfolio, $4.5 million, or 3.7% of the total multifamily loans, and $500,000 or 0.2% of the total one-to-four family residential in these "rollover" type of loans. At December 31, 2013, the Company had $19.9 million, or 8.0% of the total commercial real estate portfolio and $12.4 million, or 10.4% of the total multifamily loans in these rollover type of loans. At December 31, 2014 and December 31, 2013, $3.0 million and $1.8 million, respectively, of commercial real estate loans were not included in the construction/land development category because the Company classifies raw land or buildable lots when it does not intend to finance the construction as commercial real estate land loans. | |||||||||||||||||||||||||||
At December 31, 2014, and 2013 there were no loans classified as held for sale. | ||||||||||||||||||||||||||||
Concentrations of Credit | ||||||||||||||||||||||||||||
Most of the Bank's lending activity occurs within the state of Washington. The primary market areas include King and to a lesser extent Pierce, Snohomish and Kitsap counties. The Company's loan portfolio consists of one-to-four family residential loans which comprised 38.9% of the total loan portfolio at December 31, 2014. Commercial real estate and multifamily loans were 35.3% and 17.1%, respectively, of the total loan portfolio at December 31, 2014, with construction/land development loans, consumer, and business loans accounting for the remaining 8.7% of the loan portfolio. Included in the one-to-four family residential, multifamily, commercial real estate, and construction/land development portfolios at December 31, 2014, were $20.8 million, $17.5 million, $34.3 million and $1.6 million of total loans, respectively, to the Company's five largest borrowing relationships. | ||||||||||||||||||||||||||||
The Company originates both adjustable and fixed interest rate loans. The composition of loans receivable at December 31, 2014, and 2013, was as follows: | ||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
Fixed Rate | Adjustable Rate | |||||||||||||||||||||||||||
Term to Maturity | Principal Balance | Term to Rate Adjustment | Principal Balance | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Due within one year | $ | 39,649 | Due within one year | $ | 98,830 | |||||||||||||||||||||||
After one year through three years | 70,416 | After one year through three years | 27,314 | |||||||||||||||||||||||||
After three years through five years | 128,142 | After three years through five years | 32,842 | |||||||||||||||||||||||||
After five years through ten years | 117,199 | After five years through ten years | 59,682 | |||||||||||||||||||||||||
Thereafter | 129,560 | Thereafter | 758 | |||||||||||||||||||||||||
$ | 484,966 | $ | 219,426 | |||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
Fixed Rate | Adjustable Rate | |||||||||||||||||||||||||||
Term to Maturity | Principal Balance | Term to Rate Adjustment | Principal Balance | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Due within one year | $ | 38,226 | Due within one year | $ | 81,459 | |||||||||||||||||||||||
After one year through three years | 50,788 | After one year through three years | 33,802 | |||||||||||||||||||||||||
After three years through five years | 135,933 | After three years through five years | 18,485 | |||||||||||||||||||||||||
After five years through ten years | 150,272 | After five years through ten years | 46,134 | |||||||||||||||||||||||||
Thereafter | 131,532 | Thereafter | 2,305 | |||||||||||||||||||||||||
$ | 506,751 | $ | 182,185 | |||||||||||||||||||||||||
The majority of the adjustable-rate loans are tied to the prime rate as published in The Wall Street Journal. The remaining adjustable-rate loans have interest rate adjustment limitations and are generally indexed to the FHLB Long-Term Bullet advance rates published by the FHLB. Future market factors may affect the correlation of the interest rate adjustment with the rates paid on short‑term deposits that have been primarily utilized to fund these loans. | ||||||||||||||||||||||||||||
ALLL. When the Company classifies problem assets as either substandard or doubtful, pursuant to Federal regulations, it may establish a specific reserve in an amount deemed prudent to address the risk specifically or may allow the loss to be addressed in the general allowance. General allowances represent loss allowances which have been established to recognize the inherent risk associated with lending activities, but which, unlike specific allowances, have not been specifically allocated to the particular problem assets. When an insured institution classifies problem assets as a loss, pursuant to Federal regulations, it is required to charge-off such assets in the period in which they are deemed uncollectible. The determination as to the classification of the Company's assets and the amount of valuation allowances is subject to review by bank regulators, who can require the establishment of additional loss allowances. | ||||||||||||||||||||||||||||
Loan grades are used by the Company to identify and track potential problem loans which do not rise to the levels described for substandard, doubtful, or loss. The grades for watch and special mention are assigned to loans which have been criticized based upon known characteristics such as periodic payment delinquency or stale financial information from the borrower and/or guarantors. Loans identified as criticized (watch and special mention) or classified (substandard, doubtful or loss) are subject to problem loan reporting every three months. | ||||||||||||||||||||||||||||
The following tables summarize changes in the ALLL and loan portfolio by type of loan and reserve method for the periods indicated. | ||||||||||||||||||||||||||||
At or For the Year Ended December 31, 2014 | ||||||||||||||||||||||||||||
One-to-Four | Multifamily | Commercial | Construction/ | Business | Consumer | Total | ||||||||||||||||||||||
Family | Real Estate | Land | ||||||||||||||||||||||||||
Residential | Development | |||||||||||||||||||||||||||
ALLL: | (In thousands) | |||||||||||||||||||||||||||
Beginning balance | $ | 5,141 | $ | 1,377 | $ | 5,881 | $ | 399 | $ | 14 | $ | 182 | $ | 12,994 | ||||||||||||||
Charge-offs | (78 | ) | — | (311 | ) | (223 | ) | — | (30 | ) | (642 | ) | ||||||||||||||||
Recoveries | 50 | — | 174 | — | 10 | 5 | 239 | |||||||||||||||||||||
(Recapture) provision | (1,419 | ) | 269 | (1,147 | ) | 179 | 23 | (5 | ) | (2,100 | ) | |||||||||||||||||
Ending balance | $ | 3,694 | $ | 1,646 | $ | 4,597 | $ | 355 | $ | 47 | $ | 152 | $ | 10,491 | ||||||||||||||
General reserve | $ | 2,894 | $ | 1,619 | $ | 4,268 | $ | 355 | $ | 47 | $ | 93 | $ | 9,276 | ||||||||||||||
Specific reserve | $ | 800 | $ | 27 | $ | 329 | $ | — | $ | — | $ | 59 | $ | 1,215 | ||||||||||||||
Loans: (1) | ||||||||||||||||||||||||||||
Total Loans | $ | 273,565 | $ | 120,271 | $ | 247,968 | $ | 24,316 | $ | 3,783 | $ | 7,130 | $ | 677,033 | ||||||||||||||
General reserve (2) | $ | 229,827 | $ | 118,099 | $ | 238,416 | $ | 24,316 | $ | 3,783 | $ | 6,933 | $ | 621,374 | ||||||||||||||
Specific reserve (3) | $ | 43,738 | $ | 2,172 | $ | 9,552 | $ | — | $ | — | $ | 197 | $ | 55,659 | ||||||||||||||
____________ | ||||||||||||||||||||||||||||
(1) Net of LIP. | ||||||||||||||||||||||||||||
(2) Loans collectively evaluated for impairment. | ||||||||||||||||||||||||||||
(3) Loans individually evaluated for impairment. | ||||||||||||||||||||||||||||
At or For the Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
One-to-Four Family Residential | Multifamily | Commercial | Construction/ | Business | Consumer | Total | ||||||||||||||||||||||
Real Estate | Land | |||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||
ALLL: | (In thousands) | |||||||||||||||||||||||||||
Beginning balance | $ | 5,562 | $ | 1,139 | $ | 5,207 | $ | 437 | $ | 30 | $ | 167 | $ | 12,542 | ||||||||||||||
Charge-offs | (456 | ) | (346 | ) | (98 | ) | (582 | ) | (13 | ) | (101 | ) | (1,596 | ) | ||||||||||||||
Recoveries | 1,303 | 237 | 7 | 455 | — | 146 | 2,148 | |||||||||||||||||||||
(Recapture) provision | (1,268 | ) | 347 | 765 | 89 | (3 | ) | (30 | ) | (100 | ) | |||||||||||||||||
Ending balance | $ | 5,141 | $ | 1,377 | $ | 5,881 | $ | 399 | $ | 14 | $ | 182 | $ | 12,994 | ||||||||||||||
General reserve | $ | 3,601 | $ | 1,292 | $ | 5,326 | $ | 399 | $ | 14 | $ | 182 | $ | 10,814 | ||||||||||||||
Specific reserve | $ | 1,540 | $ | 85 | $ | 555 | $ | — | $ | — | $ | — | $ | 2,180 | ||||||||||||||
Loans: (1) | ||||||||||||||||||||||||||||
Total Loans | $ | 280,674 | $ | 117,181 | $ | 247,402 | $ | 23,127 | $ | 1,142 | $ | 9,201 | $ | 678,727 | ||||||||||||||
General reserve (2) | $ | 232,526 | $ | 114,740 | $ | 234,093 | $ | 22,904 | $ | 1,142 | $ | 9,157 | $ | 614,562 | ||||||||||||||
Specific reserve (3) | $ | 48,148 | $ | 2,441 | $ | 13,309 | $ | 223 | $ | — | $ | 44 | $ | 64,165 | ||||||||||||||
_____________ | ||||||||||||||||||||||||||||
(1) Net of LIP. | ||||||||||||||||||||||||||||
(2) Loans collectively evaluated for impairment. | ||||||||||||||||||||||||||||
(3) Loans individually evaluated for impairment. | ||||||||||||||||||||||||||||
Past Due Loans. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. At December 31, 2014, total past due loans comprised 0.66% of total loans as compared to 0.63% at December 31, 2013. | ||||||||||||||||||||||||||||
The following tables represent a summary at December 31, 2014, and 2013, of the aging of loans by type: | ||||||||||||||||||||||||||||
Loans Past Due as of December 31, 2014 | ||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days and Greater | Total | Current | Total | |||||||||||||||||||||||
Loans (1) (2) | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | $ | 666 | $ | 575 | $ | 666 | $ | 1,907 | $ | 159,106 | $ | 161,013 | ||||||||||||||||
Non-owner occupied | — | — | 164 | 164 | 112,388 | 112,552 | ||||||||||||||||||||||
Multifamily | 1,965 | — | — | 1,965 | 118,306 | 120,271 | ||||||||||||||||||||||
Commercial real estate | — | 325 | 11 | 336 | 247,632 | 247,968 | ||||||||||||||||||||||
Construction/land development | — | — | — | — | 24,316 | 24,316 | ||||||||||||||||||||||
Total real estate | 2,631 | 900 | 841 | 4,372 | 661,748 | 666,120 | ||||||||||||||||||||||
Business | — | — | — | — | 3,783 | 3,783 | ||||||||||||||||||||||
Consumer | — | 75 | — | 75 | 7,055 | 7,130 | ||||||||||||||||||||||
Total | $ | 2,631 | $ | 975 | $ | 841 | $ | 4,447 | $ | 672,586 | $ | 677,033 | ||||||||||||||||
_________________________ | ||||||||||||||||||||||||||||
(1) There were no loans 90 days past due and still accruing interest at December 31, 2014. | ||||||||||||||||||||||||||||
(2) Net of LIP. | ||||||||||||||||||||||||||||
Loans Past Due as of December 31, 2013 | ||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days and Greater | Total | Current | Total | |||||||||||||||||||||||
Loans (1) (2) | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | $ | 923 | $ | 337 | $ | 575 | $ | 1,835 | $ | 156,962 | $ | 158,797 | ||||||||||||||||
Non-owner occupied | — | — | 692 | 692 | 121,185 | 121,877 | ||||||||||||||||||||||
Multifamily | — | — | — | — | 117,181 | 117,181 | ||||||||||||||||||||||
Commercial real estate | 331 | — | 1,089 | 1,420 | 245,982 | 247,402 | ||||||||||||||||||||||
Construction/land development | — | — | 223 | 223 | 22,904 | 23,127 | ||||||||||||||||||||||
Total real estate | 1,254 | 337 | 2,579 | 4,170 | 664,214 | 668,384 | ||||||||||||||||||||||
Business | — | — | — | — | 1,142 | 1,142 | ||||||||||||||||||||||
Consumer | 103 | 34 | — | 137 | 9,064 | 9,201 | ||||||||||||||||||||||
Total | $ | 1,357 | $ | 371 | $ | 2,579 | $ | 4,307 | $ | 674,420 | $ | 678,727 | ||||||||||||||||
________________________ | ||||||||||||||||||||||||||||
(1) There were no loans 90 days past due and still accruing interest at December 31, 2013. | ||||||||||||||||||||||||||||
(2) Net of LIP. | ||||||||||||||||||||||||||||
Nonaccrual Loans. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on nonaccrual when they are 90 days delinquent or when, in management's opinion, the borrower is unable to meet scheduled payment obligations. | ||||||||||||||||||||||||||||
In order to return a nonaccrual loan to accrual status, each loan is evaluated on a case-by-case basis. The Company evaluates the borrower's financial condition to ensure that future loan payments are reasonably assured. The Company also takes into consideration the borrower's willingness and ability to make the loan payments and historical repayment performance. The Company requires the borrower to make loan payments consistently for a period of at least six months as agreed to under the terms of the loan agreement before the Company will consider reclassifying the loan to accrual status. | ||||||||||||||||||||||||||||
The following table is a summary of nonaccrual loans at December 31, 2014, and 2013 by type of loan: | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
One-to-four family residential | $ | 830 | $ | 2,297 | ||||||||||||||||||||||||
Multifamily | — | 233 | ||||||||||||||||||||||||||
Commercial real estate | 434 | 1,198 | ||||||||||||||||||||||||||
Construction/land development | — | 223 | ||||||||||||||||||||||||||
Consumer | 75 | 44 | ||||||||||||||||||||||||||
Total nonaccrual loans | $ | 1,339 | $ | 3,995 | ||||||||||||||||||||||||
Nonperforming loans, net of LIP, were $1.3 million and $4.0 million at December 31, 2014, and 2013, respectively. Foregone interest on nonaccrual loans for the years ended December 31, 2014, 2013, and 2012 were $126,000, $650,000 and $1.4 million, respectively. | ||||||||||||||||||||||||||||
The following tables summarize the loan portfolio at December 31, 2014, and 2013, by type and payment activity: | ||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
One-to-Four | Multifamily | Commercial | Construction / | Business | Consumer | Total (3) | ||||||||||||||||||||||
Family | Real Estate | Land | ||||||||||||||||||||||||||
Residential | Development | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Performing (1) | $ | 272,735 | $ | 120,271 | $ | 247,534 | $ | 24,316 | $ | 3,783 | $ | 7,055 | $ | 675,694 | ||||||||||||||
Nonperforming (2) | 830 | — | 434 | — | — | 75 | 1,339 | |||||||||||||||||||||
Total | $ | 273,565 | $ | 120,271 | $ | 247,968 | $ | 24,316 | $ | 3,783 | $ | 7,130 | $ | 677,033 | ||||||||||||||
____________ | ||||||||||||||||||||||||||||
(1) | There were $160.3 million of owner-occupied one-to-four family residential loans and $112.4 million of non-owner occupied one-to-four family residential loans classified as performing. | |||||||||||||||||||||||||||
(2) | There were $666,000 of owner-occupied one-to-four family residential loans and $164,000 of non-owner occupied one-to-four family residential loans classified as nonperforming. | |||||||||||||||||||||||||||
(3) | Net of LIP. | |||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
One-to-Four | Multifamily | Commercial | Construction/ | Business | Consumer | Total (3) | ||||||||||||||||||||||
Family | Real Estate | Land | ||||||||||||||||||||||||||
Residential | Development | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Performing (1) | $ | 278,377 | $ | 116,948 | $ | 246,204 | $ | 22,904 | $ | 1,142 | $ | 9,157 | $ | 674,732 | ||||||||||||||
Nonperforming (2) | 2,297 | 233 | 1,198 | 223 | — | 44 | 3,995 | |||||||||||||||||||||
Total | $ | 280,674 | $ | 117,181 | $ | 247,402 | $ | 23,127 | $ | 1,142 | $ | 9,201 | $ | 678,727 | ||||||||||||||
_____________ | ||||||||||||||||||||||||||||
(1) There were $157.3 million of owner-occupied one-to-four family residential loans and $121.1 million of non-owner occupied one-to-four family residential loans classified as performing. | ||||||||||||||||||||||||||||
(2) There were $1.5 million of owner-occupied one-to-four family residential loans and $817,000 of non-owner occupied one-to-four family residential loans classified as nonperforming. | ||||||||||||||||||||||||||||
(3) Net of LIP. | ||||||||||||||||||||||||||||
Impaired loans. The loan portfolio is constantly being monitored by management for delinquent loans and changes in the financial condition of each borrower. When an issue is identified with a borrower and it is determined that the loan needs to be classified as nonperforming and/or impaired, an evaluation of the collateral is performed prior to the end of the financial reporting period and, if necessary, an appraisal is ordered in accordance with the Company's appraisal policy guidelines. Based on this evaluation, any additional provision for loan loss or charge-offs that may be needed is recorded prior to the end of the financial reporting period. | ||||||||||||||||||||||||||||
A loan is considered impaired when it is determined that, based on current information and events, it is probable the Company will be unable to collect payments of principal or interest when due under the terms of the loan. When identifying loans as impaired, management takes into consideration factors which include payment history and status, collateral value, financial condition of the borrower and guarantor, if any, and the probability of collecting scheduled payments in the future. Minor payment delays and insignificant payment shortfalls typically do not result in a loan being classified as impaired. The significance of payment delays and shortfalls is considered by management on a case-by-case basis, after taking into consideration the circumstances surrounding the loan and the borrower, including payment history and the amounts of any payment shortfall, length and reason for delay, and the likelihood of a return to stable performance. Impairment is measured on a loan-by-loan basis for all loans in the portfolio. | ||||||||||||||||||||||||||||
There were no commitments to advance funds related to impaired loans at December 31, 2014, and 2013. | ||||||||||||||||||||||||||||
The following tables present a summary of loans individually evaluated for impairment at December 31, 2014, and 2013, by the type of loan: | ||||||||||||||||||||||||||||
At or For the Year Ended December 31, 2014 | ||||||||||||||||||||||||||||
Recorded Investment (1) | Unpaid Principal Balance (2) | Related Allowance | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Loans with no related allowance: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | $ | 3,308 | $ | 3,661 | $ | — | ||||||||||||||||||||||
Non-owner occupied | 29,224 | 29,266 | — | |||||||||||||||||||||||||
Multifamily | — | — | — | |||||||||||||||||||||||||
Commercial real estate | 4,553 | 4,851 | — | |||||||||||||||||||||||||
Construction/land development | — | — | — | |||||||||||||||||||||||||
Consumer | 118 | 153 | — | |||||||||||||||||||||||||
Total | 37,203 | 37,931 | — | |||||||||||||||||||||||||
Loans with an allowance: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | 2,554 | 2,624 | 121 | |||||||||||||||||||||||||
Non-owner occupied | 8,652 | 8,704 | 679 | |||||||||||||||||||||||||
Multifamily | 2,172 | 2,172 | 27 | |||||||||||||||||||||||||
Commercial real estate | 4,999 | 4,999 | 329 | |||||||||||||||||||||||||
Consumer | 79 | 79 | 59 | |||||||||||||||||||||||||
Total | 18,456 | 18,578 | 1,215 | |||||||||||||||||||||||||
Total impaired loans: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | 5,862 | 6,285 | 121 | |||||||||||||||||||||||||
Non-owner occupied | 37,876 | 37,970 | 679 | |||||||||||||||||||||||||
Multifamily | 2,172 | 2,172 | 27 | |||||||||||||||||||||||||
Commercial real estate | 9,552 | 9,850 | 329 | |||||||||||||||||||||||||
Construction/land development | — | — | — | |||||||||||||||||||||||||
Consumer | 197 | 232 | 59 | |||||||||||||||||||||||||
Total | $ | 55,659 | $ | 56,509 | $ | 1,215 | ||||||||||||||||||||||
_________________ | ||||||||||||||||||||||||||||
(1) Represents the loan balance less charge-offs. | ||||||||||||||||||||||||||||
(2) Contractual loan principal balance. | ||||||||||||||||||||||||||||
At or For the Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
Recorded Investment (1) | Unpaid Principal | Related Allowance | ||||||||||||||||||||||||||
Balance (2) | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Loans with no related allowance: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | $ | 3,878 | $ | 4,281 | $ | — | ||||||||||||||||||||||
Non-owner occupied | 28,782 | 28,854 | — | |||||||||||||||||||||||||
Multifamily | 233 | 264 | — | |||||||||||||||||||||||||
Commercial real estate | 6,224 | 6,511 | — | |||||||||||||||||||||||||
Construction/land development | 223 | 4,812 | — | |||||||||||||||||||||||||
Consumer | 44 | 70 | — | |||||||||||||||||||||||||
Total | 39,384 | 44,792 | — | |||||||||||||||||||||||||
Loans with an allowance: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | 3,191 | 3,238 | 263 | |||||||||||||||||||||||||
Non-owner occupied | 12,297 | 12,352 | 1,277 | |||||||||||||||||||||||||
Multifamily | 2,208 | 2,208 | 85 | |||||||||||||||||||||||||
Commercial real estate | 7,085 | 7,085 | 555 | |||||||||||||||||||||||||
Total | 24,781 | 24,883 | 2,180 | |||||||||||||||||||||||||
Total impaired loans: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | 7,069 | 7,519 | 263 | |||||||||||||||||||||||||
Non-owner occupied | 41,079 | 41,206 | 1,277 | |||||||||||||||||||||||||
Multifamily | 2,441 | 2,472 | 85 | |||||||||||||||||||||||||
Commercial real estate | 13,309 | 13,596 | 555 | |||||||||||||||||||||||||
Construction/land development | 223 | 4,812 | — | |||||||||||||||||||||||||
Consumer | 44 | 70 | — | |||||||||||||||||||||||||
Total | $ | 64,165 | $ | 69,675 | $ | 2,180 | ||||||||||||||||||||||
_____________ | ||||||||||||||||||||||||||||
(1) Represents the loan balance less charge-offs. | ||||||||||||||||||||||||||||
(2) Contractual loan principal balance. | ||||||||||||||||||||||||||||
The following table presents a summary of recorded investment in impaired loans, and interest income recognized on impaired loans at December 31, 2014, 2013, and 2012 by the type of loan: | ||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Loans with no related allowance: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | $ | 3,302 | $ | 158 | $ | 4,773 | $ | 146 | $ | 6,997 | $ | 120 | ||||||||||||||||
Non-owner occupied | 29,105 | 1,762 | 29,277 | 1,697 | 36,216 | 2,039 | ||||||||||||||||||||||
Multifamily | 113 | — | 1,143 | — | 4,659 | 254 | ||||||||||||||||||||||
Commercial real estate | 3,971 | 291 | 7,065 | 344 | 10,742 | 562 | ||||||||||||||||||||||
Construction/land development | — | — | 3,417 | — | 7,621 | — | ||||||||||||||||||||||
Consumer | 81 | 4 | 539 | — | 354 | 21 | ||||||||||||||||||||||
Total | 36,572 | 2,215 | 46,214 | 2,187 | 66,589 | 2,996 | ||||||||||||||||||||||
Loans with an allowance: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | 2,975 | 124 | 4,249 | 169 | 4,944 | 284 | ||||||||||||||||||||||
Non-owner occupied | 10,395 | 500 | 14,545 | 623 | 11,579 | 694 | ||||||||||||||||||||||
Multifamily | 2,187 | 147 | 1,414 | 138 | — | — | ||||||||||||||||||||||
Commercial real estate | 6,532 | 267 | 7,817 | 356 | 5,459 | 455 | ||||||||||||||||||||||
Consumer | 20 | 3 | — | — | — | — | ||||||||||||||||||||||
Total | 22,109 | 1,041 | 28,025 | 1,286 | 21,982 | 1,433 | ||||||||||||||||||||||
Total impaired loans: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | 6,277 | 282 | 9,022 | 315 | 11,941 | 404 | ||||||||||||||||||||||
Non-owner occupied | 39,500 | 2,262 | 43,822 | 2,320 | 47,795 | 2,733 | ||||||||||||||||||||||
Multifamily | 2,300 | 147 | 2,557 | 138 | 4,659 | 254 | ||||||||||||||||||||||
Commercial real estate | 10,503 | 558 | 14,882 | 700 | 16,201 | 1,017 | ||||||||||||||||||||||
Construction/land development | — | — | 3,417 | — | 7,621 | — | ||||||||||||||||||||||
Consumer | 101 | 7 | 539 | — | 354 | 21 | ||||||||||||||||||||||
Total | $ | 58,681 | $ | 3,256 | $ | 74,239 | $ | 3,473 | $ | 88,571 | $ | 4,429 | ||||||||||||||||
Troubled Debt Restructurings. Certain loan modifications or restructurings are accounted for as TDRs. In general, the modification or restructuring of a debt is considered a TDR if, for economic or legal reasons related to the borrower's financial difficulties, a concession is granted to the borrower that the Company would not otherwise consider. Once the loan is restructured, a current, well-documented credit evaluation of the borrower's financial condition and prospects for repayment are performed to assess the likelihood that all principal and interest payments required under the terms of the modified agreement will be collected in full. A loan that is determined to be classified as a TDR is generally reported as a TDR until the loan is paid in full or otherwise settled, sold, or charged-off. The following is a summary of information pertaining to nonperforming assets and TDRs: | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Nonperforming assets: | ||||||||||||||||||||||||||||
Nonaccrual loans | $ | 1,339 | $ | 3,027 | ||||||||||||||||||||||||
Nonaccrual TDRs | — | 968 | ||||||||||||||||||||||||||
Total nonperforming loans | 1,339 | 3,995 | ||||||||||||||||||||||||||
OREO | 9,283 | 11,465 | ||||||||||||||||||||||||||
Total nonperforming assets | $ | 10,622 | $ | 15,460 | ||||||||||||||||||||||||
Performing TDRs | $ | 54,241 | $ | 60,170 | ||||||||||||||||||||||||
Nonaccrual TDRs | — | 968 | ||||||||||||||||||||||||||
Total TDRs | $ | 54,241 | $ | 61,138 | ||||||||||||||||||||||||
The accrual status of a loan may change after it has been classified as a TDR. Management considers the following in determining the accrual status of restructured loans: (1) if the loan was on accrual status prior to the restructuring, the borrower has demonstrated performance under the previous terms, and a credit evaluation shows the borrower's capacity to continue to perform under the restructured terms (both principal and interest payments), the loan will remain on accrual at the time of the restructuring; (2) if the loan was on nonaccrual status before the restructuring, and the Company's credit evaluation shows the borrower's capacity to meet the restructured terms, the loan would remain as nonaccrual for a minimum of six months until the borrower has demonstrated a reasonable period of sustained repayment performance (thereby providing reasonable assurance as to the ultimate collection of principal and interest in full under the modified terms). | ||||||||||||||||||||||||||||
The following table presents for the periods indicated TDRs and their recorded investment prior to the modification and after the modification: | ||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Number | Pre-Modification Outstanding | Post-Modification Outstanding | Number | Pre-Modification Outstanding | Post-Modification Outstanding | |||||||||||||||||||||||
of Loans | Recorded | Recorded | of Loans | Recorded | Recorded | |||||||||||||||||||||||
Investment | Investment | Investment | Investment | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
TDRs that occurred during the period: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Interest-only payments with no interest rate concession | 12 | $ | 2,522 | $ | 2,522 | 2 | $ | 682 | $ | 683 | ||||||||||||||||||
Principal and interest with interest rate concession | 6 | 1,174 | 1,174 | 2 | 1,620 | 1,620 | ||||||||||||||||||||||
Principal and interest reamortized with no interest rate | ||||||||||||||||||||||||||||
concession | — | — | — | 1 | 261 | 260 | ||||||||||||||||||||||
Advancement of maturity date | 9 | 1,722 | 1,722 | 3 | 480 | 473 | ||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||
Principal and interest with interest rate concession | — | — | — | — | — | — | ||||||||||||||||||||||
Principal and interest reamortized with no interest rate | — | — | — | 1 | 335 | 331 | ||||||||||||||||||||||
concession | ||||||||||||||||||||||||||||
Advancement of maturity date | — | — | — | 1 | 437 | 432 | ||||||||||||||||||||||
Interest-only payments with interest rate concession | 2 | 3,470 | 3,470 | 2 | 3,484 | 3,482 | ||||||||||||||||||||||
Total | 29 | $ | 8,888 | $ | 8,888 | 12 | $ | 7,299 | $ | 7,281 | ||||||||||||||||||
At December 31, 2014 and 2013, the Company had no commitments to extend additional credit to borrowers whose loan terms have been modified in a TDR. All TDRs are also classified as impaired loans and are included in the loans individually evaluated for impairment in the calculation of the ALLL. | ||||||||||||||||||||||||||||
The TDRs that occurred during the year ended December 31, 2014, and 2013, were primarily a result of granting the borrower interest rate concessions and/or interest-only payments for a period of time ranging from one to three years. The impaired portion of the loan with an interest rate concession and/or interest-only payments for a specific period of time are calculated based on the present value of expected future cash flows discounted at the loan’s effective interest rate. The effective interest rate is the rate of return implicit on the original loan. This impaired amount reduces the ALLL and a valuation allowance is established to reduce the loan balance. As loan payments are received in future periods, the ALLL entry is reversed and the valuation allowance is reduced utilizing the level yield method over the modification period. TDRs resulted in no charge-offs to the ALLL for the year ended December 31, 2014, and $89,000 for the year ended December 31, 2013. | ||||||||||||||||||||||||||||
For the year ended December 31, 2014, there were no payment defaults on loans modified as TDRs within the previous 12 months. The following is a summary of loans that defaulted in 2013 and had been modified as TDRs within the previous 12 months of December 31, 2013: | ||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Types of Modifications | Types of Modifications | |||||||||||||||||||||||||||
Number of | No Interest Rate Concession Modified Principal & Interest Payment | Advancement of Maturity Date | Number of | No Interest Rate Concession Modified Principal & Interest Payment | Advancement of Maturity Date | |||||||||||||||||||||||
Loans | Loans | |||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
TDRs that Subsequently Defaulted: | ||||||||||||||||||||||||||||
One-to-four family residential | — | $ | — | $ | — | — | $ | — | $ | — | ||||||||||||||||||
Commercial | — | — | — | 2 | 331 | 432 | ||||||||||||||||||||||
Total | — | $ | — | $ | — | 2 | $ | 331 | $ | 432 | ||||||||||||||||||
TDRs that default after they have been modified are typically evaluated individually on a collateral basis. Any additional TDR charge-offs due to further impairment reduces the ALLL. | ||||||||||||||||||||||||||||
Credit Quality Indicators. The Company utilizes a nine-point risk rating system and assigns a risk rating for all credit exposures. The risk rating system is designed to define the basic characteristics and identify risk elements of each credit extension. Credits risk rated 1 through 5 are considered to be “pass” credits. Pass credits can be assets where there is virtually no credit risk, such as cash secured loans with funds on deposit with the Bank. Pass credits also include credits that are on the Company's watch list, where the borrower exhibits potential weaknesses, which may, if not checked or corrected, negatively affect the borrower’s financial capacity and threaten their ability to fulfill debt obligations in the future. Credits classified as special mention are risk rated 6 and possess weaknesses that deserve management’s close attention. Special mention assets do not expose the Company to sufficient risk to warrant adverse classification in the substandard, doubtful or loss categories. Substandard credits are risk rated 7. An asset is considered substandard if it is inadequately protected by the current net worth and payment capacity of the borrower or of any collateral pledged. Substandard assets include those characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Assets classified as doubtful are risk rated 8 and have all the weaknesses inherent in those credits classified as substandard with the added characteristic that the weaknesses present make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values. Assets classified as loss are risk rated 9 and are considered uncollectible and cannot be justified as a viable asset for the Company. As of December 31, 2014, and 2013, the Company had no loans rated as doubtful or loss. | ||||||||||||||||||||||||||||
The following tables represent a summary of loans at December 31, 2014, and 2013 by type and risk category: | ||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
One-to-Four | Multifamily | Commercial | Construction/ | Business | Consumer | Total (1) | ||||||||||||||||||||||
Family | Real Estate | Land | ||||||||||||||||||||||||||
Residential | Development | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||
Pass | $ | 263,094 | $ | 116,891 | $ | 235,841 | $ | 24,316 | $ | 3,783 | $ | 6,833 | $ | 650,758 | ||||||||||||||
Special mention | 4,157 | 1,416 | 10,529 | — | — | — | 16,102 | |||||||||||||||||||||
Substandard | 6,314 | 1,964 | 1,598 | — | — | 297 | 10,173 | |||||||||||||||||||||
Total | $ | 273,565 | $ | 120,271 | $ | 247,968 | $ | 24,316 | $ | 3,783 | $ | 7,130 | $ | 677,033 | ||||||||||||||
_____________ | ||||||||||||||||||||||||||||
(1) Net of LIP. | ||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
One-to-Four | Multifamily | Commercial | Construction / | Business | Consumer | Total (1) | ||||||||||||||||||||||
Family | Real Estate | Land | ||||||||||||||||||||||||||
Residential | Development | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||
Pass | $ | 265,511 | $ | 114,525 | $ | 229,149 | $ | 22,904 | $ | 1,142 | $ | 8,934 | $ | 642,165 | ||||||||||||||
Special mention | 5,825 | 1,203 | 15,134 | — | — | 1 | 22,163 | |||||||||||||||||||||
Substandard | 9,338 | 1,453 | 3,119 | 223 | — | 266 | 14,399 | |||||||||||||||||||||
Total | $ | 280,674 | $ | 117,181 | $ | 247,402 | $ | 23,127 | $ | 1,142 | $ | 9,201 | $ | 678,727 | ||||||||||||||
______________ | ||||||||||||||||||||||||||||
(1) Net of LIP. | ||||||||||||||||||||||||||||
Certain of the Bank’s executive officers and directors have loans with the Bank. The aggregate dollar amount of these loans outstanding to related parties is summarized as follows: | ||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Balance at beginning of year | $ | 548 | $ | 498 | $ | 545 | ||||||||||||||||||||||
Additions | — | 353 | — | |||||||||||||||||||||||||
Repayments | (410 | ) | (303 | ) | (47 | ) | ||||||||||||||||||||||
Balance at end of year | $ | 138 | $ | 548 | $ | 498 | ||||||||||||||||||||||
Other_Real_Estate_Owned
Other Real Estate Owned | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Other Real Estate [Abstract] | ||||||||||||
Other Real Estate Owned | Other Real Estate Owned | |||||||||||
The following table is a summary of OREO activity for the periods indicated: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Balance at beginning of year | $ | 11,465 | $ | 17,347 | $ | 26,044 | ||||||
Loans transferred to OREO | 1,823 | 6,485 | 12,124 | |||||||||
Capitalized (reimbursed) improvements | 120 | 75 | (16 | ) | ||||||||
Dispositions of OREO | (3,732 | ) | (12,039 | ) | (18,759 | ) | ||||||
Market value adjustments | (393 | ) | (403 | ) | (2,046 | ) | ||||||
Balance at end of year | $ | 9,283 | $ | 11,465 | $ | 17,347 | ||||||
OREO includes properties acquired by the Company through foreclosure and deed in lieu of foreclosure. OREO at December 31, 2014 consisted of $300,000 in one-to-four family residential homes, $491,000 in construction/land development projects, and $8.5 million in commercial real estate properties. |
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Premises and Equipment | Premises and Equipment | |||||||
Premises and equipment consisted of the following at December 31, 2014, and 2013: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Land | $ | 1,914 | $ | 1,914 | ||||
Buildings and improvements | 17,820 | 17,763 | ||||||
Furniture, fixtures and equipment | 4,368 | 4,336 | ||||||
Construction in process | 7 | 2 | ||||||
24,109 | 24,015 | |||||||
Less accumulated depreciation and amortization | (7,375 | ) | (6,724 | ) | ||||
$ | 16,734 | $ | 17,291 | |||||
Depreciation and amortization expense was $755,000 for the year ended December 31, 2014 and $799,000 and $976,000 for the years ended December 31, 2013 and 2012, respectively. |
Fair_Value
Fair Value | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2012 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | ||||||||||||||||||||
The Company determines the fair values of its financial instruments based on the fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair values. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect its estimate for market assumptions. | ||||||||||||||||||||
Valuation inputs refer to the assumptions market participants would use in pricing a given asset or liability using one of the three valuation techniques. Inputs can be observable or unobservable. Observable inputs are those assumptions that market participants would use in pricing the particular asset or liability. These inputs are based on market data and are obtained from an independent source. Unobservable inputs are assumptions based on the Company's own information or estimate of assumptions used by market participants in pricing the asset or liability. Unobservable inputs are based on the best and most current information available on the measurement date. | ||||||||||||||||||||
All inputs, whether observable or unobservable, are ranked in accordance with a prescribed fair value hierarchy: | ||||||||||||||||||||
• | Level 1 - Quoted prices for identical instruments in active markets. | |||||||||||||||||||
• | Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable. | |||||||||||||||||||
• | Level 3 - Instruments whose significant value drivers are unobservable. | |||||||||||||||||||
The tables below present the balances of assets and liabilities measured at fair value on a recurring basis (there were no transfers between Level 1, Level 2 and Level 3 recurring measurements during the periods presented): | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Available-for-sale investments: | ||||||||||||||||||||
Mortgage-backed investments: | ||||||||||||||||||||
Fannie Mae | $ | 40,916 | $ | — | $ | 40,916 | $ | — | ||||||||||||
Freddie Mac | 21,946 | — | 21,946 | — | ||||||||||||||||
Ginnie Mae | 26,013 | — | 26,013 | — | ||||||||||||||||
Municipal bonds | 644 | — | 644 | — | ||||||||||||||||
U.S. Government agencies | 16,816 | — | 16,816 | — | ||||||||||||||||
Corporate bonds | 14,039 | 14,039 | ||||||||||||||||||
$ | 120,374 | $ | — | $ | 120,374 | $ | — | |||||||||||||
31-Dec-13 | ||||||||||||||||||||
Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Available-for-sale investments: | ||||||||||||||||||||
Mortgage-backed investments: | ||||||||||||||||||||
Fannie Mae | $ | 46,232 | $ | — | $ | 46,232 | $ | — | ||||||||||||
Freddie Mac | 25,856 | — | 25,856 | — | ||||||||||||||||
Ginnie Mae | 33,873 | — | 33,873 | — | ||||||||||||||||
Municipal bonds | 1,850 | — | 1,850 | — | ||||||||||||||||
U.S. Government agencies | 22,704 | — | 22,704 | — | ||||||||||||||||
Corporate bonds | 13,849 | 13,849 | ||||||||||||||||||
$ | 144,364 | $ | — | $ | 144,364 | $ | — | |||||||||||||
The estimated fair value of Level 2 investments is based on quoted prices for similar investments in active markets, identical or similar investments in markets that are not active, and model-derived valuations whose inputs are observable. | ||||||||||||||||||||
The tables below present the balances of assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2014, and 2013. | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Fair Value | Quoted Prices in | Significant | Significant | |||||||||||||||||
Measurements | Active Markets | Other | Unobservable | |||||||||||||||||
for Identical | Observable | Inputs | ||||||||||||||||||
Assets (Level 1) | Inputs (Level 2) | (Level 3) | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Impaired loans (included in loans receivable, net)(1) | $ | 54,444 | $ | — | $ | — | $ | 54,444 | ||||||||||||
OREO | 9,283 | — | — | 9,283 | ||||||||||||||||
Total | $ | 63,727 | $ | — | $ | — | $ | 63,727 | ||||||||||||
_______________ | ||||||||||||||||||||
(1) Total value of impaired loans is net of $1.2 million of specific reserves on performing TDRs. | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Fair Value | Quoted Prices in | Significant | Significant | |||||||||||||||||
Measurements | Active Markets | Other | Unobservable | |||||||||||||||||
for Identical | Observable | Inputs | ||||||||||||||||||
Assets (Level 1) | Inputs (Level 2) | (Level 3) | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Impaired loans (included in loans receivable, net)(1) | $ | 61,985 | $ | — | $ | — | $ | 61,985 | ||||||||||||
OREO (2) | 11,465 | — | — | 11,465 | ||||||||||||||||
Total | $ | 73,450 | $ | — | $ | — | $ | 73,450 | ||||||||||||
________________ | ||||||||||||||||||||
(1) Total value of impaired loans is net of $2.2 million of specific reserves on performing TDRs. | ||||||||||||||||||||
The fair value of impaired loans is calculated using the collateral value method or on a discounted cash flow basis. Inputs used in the collateral value method include appraised values, estimates of certain completion costs and closing and selling costs. Some of these inputs may not be observable in the marketplace. The Company obtains annual updated appraisals for impaired collateral dependent loans that exceed $1.0 million and loans that have been transferred to OREO. In addition, the Company may order appraisals on properties not included within these guidelines when there are extenuating circumstances where the Company is not otherwise able to determine the fair value of the property. Appraised values may be discounted based on management's historical knowledge, changes in market conditions from the time of valuation and/or management's expertise and knowledge of the borrower. | ||||||||||||||||||||
OREO properties are measured at the lower of their carrying amount or fair value, less costs to sell. Fair values are generally based on third party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. | ||||||||||||||||||||
The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis. | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range (Weighted Average) | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Impaired Loans | $ | 54,365 | Market approach | Appraised value discounted by market or | 0.0% - 45.8% (2.2%) | |||||||||||||||
borrower conditions | ||||||||||||||||||||
OREO | $ | 9,283 | Market approach | Appraised value less selling costs | 0.0% - 19.4% (3.3%) | |||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range (Weighted Average) | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Impaired Loans | $ | 61,985 | Market approach | Appraised value discounted by market or | 0.0% - 72.3% (2.7%) | |||||||||||||||
borrower conditions | ||||||||||||||||||||
OREO | $ | 11,465 | Market approach | Appraised value less selling costs | 0.0% - 26.4% (4.9%) | |||||||||||||||
The carrying amounts and estimated fair values of financial instruments at December 31, 2014, and 2013, were as follows: | ||||||||||||||||||||
31-Dec-14 | Fair Value Measurements Using: | |||||||||||||||||||
Carrying Value | Estimated Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||
Cash on hand and in banks | $ | 5,920 | $ | 5,920 | $ | 5,920 | $ | — | $ | — | ||||||||||
Interest-earning deposits | 98,129 | 98,129 | 98,129 | — | — | |||||||||||||||
Investments available-for-sale | 120,374 | 120,374 | — | 120,374 | — | |||||||||||||||
Loans receivable, net | 663,938 | 678,676 | — | — | 678,676 | |||||||||||||||
FHLB stock | 6,745 | 6,745 | — | 6,745 | — | |||||||||||||||
Accrued interest receivable | 3,265 | 3,265 | — | 3,265 | — | |||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Deposits | 201,539 | 201,539 | 201,539 | — | — | |||||||||||||||
Certificates of deposit, retail | 358,159 | 359,049 | — | 359,049 | — | |||||||||||||||
Certificates of deposit, brokered | 54,429 | 55,229 | 55,229 | |||||||||||||||||
Advances from the FHLB | 135,500 | 135,392 | — | 135,392 | — | |||||||||||||||
Accrued interest payable | 142 | 142 | — | 142 | — | |||||||||||||||
31-Dec-13 | Fair Value Measurements Using: | |||||||||||||||||||
Carrying Value | Estimated Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||
Cash on hand and in banks | $ | 6,074 | $ | 6,074 | $ | 6,074 | $ | — | $ | — | ||||||||||
Interest-earning deposits | 49,501 | 49,501 | 49,501 | — | — | |||||||||||||||
Investments available-for-sale | 144,364 | 144,364 | — | 144,364 | — | |||||||||||||||
Loans receivable, net | 663,153 | 680,622 | — | — | 680,622 | |||||||||||||||
FHLB stock | 7,017 | 7,017 | — | 7,017 | — | |||||||||||||||
Accrued interest receivable | 3,698 | 3,698 | — | 3,698 | — | |||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Deposits | 201,658 | 201,658 | 201,658 | — | — | |||||||||||||||
Certificates of deposit | 410,407 | 413,417 | — | 413,417 | — | |||||||||||||||
Advances from the FHLB | 119,000 | 118,610 | — | 118,610 | — | |||||||||||||||
Accrued interest payable | 88 | 88 | — | 88 | — | |||||||||||||||
Fair value estimates, methods, and assumptions are set forth below for the Company's financial instruments: | ||||||||||||||||||||
• | Financial instruments with book value equal to fair value: The fair value of financial instruments that are short-term or reprice frequently and that have little or no risk are considered to have a fair value equal to book value. These instruments include cash on hand and in banks, interest-bearing deposits, FHLB stock, accrued interest receivable, and accrued interest payable. FHLB stock is not publicly-traded, however, it may be redeemed on a dollar-for-dollar basis, for any amount the Bank is not required to hold, subject to the FHLB’s discretion. The fair value is therefore equal to the book value. | |||||||||||||||||||
• | Investments available-for-sale: The fair value of all investments excluding FHLB stock was based upon quoted market prices for similar investments in active markets, identical or similar investments in markets that are not active, and model-derived valuations whose inputs are observable. | |||||||||||||||||||
• | Loans receivable: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair value of fixed-rate loans is estimated using discounted cash flow analysis, utilizing interest rates that would be offered for loans with similar terms to borrowers of similar credit quality. As a result of current market conditions, cash flow estimates have been further discounted to include a credit factor. The fair value of nonperforming loans is estimated using the fair value of the underlying collateral. | |||||||||||||||||||
• | Liabilities: The fair value of deposits with no stated maturity, such as statement savings, NOW, and money market accounts, is equal to the amount payable on demand. The fair value of certificates of deposit is based on the discounted value of contractual cash flows using current interest rates for certificates of deposit with similar remaining maturities. The fair value of FHLB advances is estimated based on discounting the future cash flows using current interest rates for debt with similar remaining maturities. | |||||||||||||||||||
• | Off balance sheet commitments: No fair value adjustment is necessary for commitments made to extend credit, which represents commitments for loan originations or for outstanding commitments to purchase loans. These commitments are at variable rates, are for loans with terms of less than one year and have interest rates which approximate prevailing market rates, or are set at the time of loan closing. | |||||||||||||||||||
Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business. The fair value has not been estimated for assets and liabilities that are not considered financial instruments. |
Accrued_Interest_Receivable
Accrued Interest Receivable | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accrued Interest Receivable [Abstract] | ||||||||
Accrued Interest Receivable | Accrued Interest Receivable | |||||||
Accrued interest receivable consisted of the following at December 31, 2014, and 2013: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Loans receivable | $ | 2,879 | $ | 3,250 | ||||
Investments | 382 | 446 | ||||||
Interest-earning deposits | 4 | 2 | ||||||
$ | 3,265 | $ | 3,698 | |||||
Deposits
Deposits | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Deposits [Abstract] | ||||||||||||
Deposits | Deposits | |||||||||||
Deposit accounts consisted of the following at December 31, 2014, and 2013: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Noninterest-bearing | $ | 14,354 | $ | 10,619 | ||||||||
NOW | 20,752 | 25,471 | ||||||||||
Statement savings | 23,901 | 20,396 | ||||||||||
Money market | 142,532 | 145,172 | ||||||||||
Certificates of deposit, retail | 358,159 | 410,407 | ||||||||||
Certificates of deposit, brokered | 54,429 | — | ||||||||||
$ | 614,127 | $ | 612,065 | |||||||||
At December 31, 2014, scheduled maturities of certificates of deposit were as follows: | ||||||||||||
December 31, | Amount | |||||||||||
(In thousands) | ||||||||||||
2015 | $ | 184,116 | ||||||||||
2016 | 68,174 | |||||||||||
2017 | 57,323 | |||||||||||
2018 | 48,915 | |||||||||||
2019 | 47,324 | |||||||||||
thereafter | 6,736 | |||||||||||
$ | 412,588 | |||||||||||
Deposits included public funds of $15.9 million and $10.8 million at December 31, 2014 and 2013, respectively. | ||||||||||||
Certificates of deposit of $100,000 or more included in deposits at December 31, 2014 and 2013, were $249.9 million and $289.1 million, respectively. Interest expense on these certificates totaled $2.7 million, $4.2 million, and $5.9 million for the years ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||
Included in deposits are accounts of $2.7 million and $1.9 million at December 31, 2014, and 2013, respectively which are controlled by management, members of the Board of Directors, and related entities. | ||||||||||||
Interest expense on deposits for the periods indicated was as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
NOW | $ | 23 | $ | 30 | $ | 21 | ||||||
Statement savings | 30 | 31 | 36 | |||||||||
Money market | 311 | 291 | 466 | |||||||||
Certificates of deposit, retail | 4,388 | 6,442 | 9,668 | |||||||||
Certificates of deposit, brokered | 311 | — | — | |||||||||
$ | 5,063 | $ | 6,794 | $ | 10,191 | |||||||
Other_Borrowings
Other Borrowings | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Borrowings [Abstract] | ||||||||
Other Borrowings | Other Borrowings | |||||||
The FHLB functions as a central reserve bank providing credit for member financial institutions. At December 31, 2014, and 2013, the Bank maintained credit facilities with the FHLB totaling $227.3 million and $220.9 million, respectively. Outstanding advances totaled $135.5 million and $119.0 million at December 31, 2014, and 2013, respectively. The credit facility was collateralized by a market value of $171.7 million of single-family residential mortgages, $105.8 million of commercial real estate loans and $74.2 million of multifamily loans under a blanket lien arrangement at December 31, 2014. At December 31, 2013, the credit facility was collateralized by a market value of $170.6 million of single-family residential mortgages, $89.6 million of commercial real estate loans, and $66.3 million of multifamily loans under a blanket lien arrangement. The Bank also had $50.0 million unused line-of-credit facilities with other financial institutions at December 31, 2014, with interest payable at the then stated rate. | ||||||||
Outstanding advances consisted of the following at December 31, 2014, and 2013: | ||||||||
December 31, 2014 | ||||||||
Maturity Date | Principal Balance | Fixed Interest Rate | ||||||
(Dollars in thousands) | ||||||||
Oct-15 | $ | 10,000 | 0.71 | % | ||||
Mar-16 | 34,000 | 0.81 | ||||||
May-16 | 20,000 | 0.7 | ||||||
Oct-16 | 10,000 | 1.02 | ||||||
Nov-16 | 20,000 | 0.84 | ||||||
Apr-17 | 20,000 | 0.87 | ||||||
Nov-18 | 5,000 | 1.76 | ||||||
Jun-18 | $ | 6,500 | 1.52 | |||||
May-19 | 10,000 | 1.7 | ||||||
135,500 | ||||||||
December 31, 2013 | ||||||||
Maturity Date | Principal Balance | Fixed Interest Rate | ||||||
(Dollars in thousands) | ||||||||
Oct-15 | $ | 10,000 | 0.71 | % | ||||
Mar-16 | 34,000 | 0.81 | ||||||
May-16 | 20,000 | 0.7 | ||||||
Oct-16 | 10,000 | 1.02 | ||||||
Nov-16 | 20,000 | 0.84 | ||||||
Apr-17 | 20,000 | 0.87 | ||||||
Nov-18 | 5,000 | 1.76 | ||||||
$ | 119,000 | |||||||
Benefit_Plans
Benefit Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||
Benefit Plans | Benefit Plans | ||||||||||||||||
Multiemployer Pension Plans | |||||||||||||||||
The Company participates in the Pentegra Defined Benefit Plan for Financial Institutions (“The Pentegra DB Plan”), a tax-qualified defined-benefit pension plan that covers substantially all employees after one year of continuous employment. Pension benefits vest over a period of five years of credited service. The Pentegra DB Plan’s Employer Identification Number is 13-5645888 and the Plan Number is 333. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. There are no collective bargaining agreements in place that require contributions to the Pentegra DB Plan. | |||||||||||||||||
The Pentegra DB Plan is a single plan under Internal Revenue Code Section 413(c) and, as a result, all of the assets stand behind all of the liabilities. Accordingly, under the Pentegra DB Plan, contributions made by a participating employer may be used to provide benefits to participants of other participating employers. | |||||||||||||||||
As of March 31, 2013, the Pentegra DB Plan was frozen, eliminating all future benefit accruals for employees. Each employee's accrued benefit was determined as of March 31, 2013. | |||||||||||||||||
The funding target is the present value of all benefits that have accrued as of the first day of the current plan year (July 1). Because interest rates used to calculate the present value of all benefits (6.49% for 2014 and 6.33% for 2013) is significantly higher than current market rates, the funding target does not represent the Company's actual liability upon withdrawal from participation in the Pentegra DB Plan, which is significantly larger than the funding target. The table below presents the funded status (market value of plan assets divided by funding target) of the plan as of July1: | |||||||||||||||||
2014 (1) | 2013 (1) | ||||||||||||||||
Source | Valuation Report | Valuation Report | |||||||||||||||
First Financial Northwest's Plan | 105.3 | % | 100.8 | % | |||||||||||||
_________________ | |||||||||||||||||
(1) Market value of plan assets reflects any contributions received through June 30, 2014, or 2013, respectively. | |||||||||||||||||
Total contributions made to the Pentegra DB Plan, as reported on Form 5500, equal $136.5 million and $196.5 million for the plan years ending June 30, 2013 and June 30, 2012, respectively. The Company's contributions to the Pentegra DB Plan are not more than 5% of the total contributions to the Pentegra DB Plan. The Company's policy is to fund pension costs as accrued. | |||||||||||||||||
Total contributions during the years ended December 31, 2014, 2013, and 2012 were: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Date Paid | Amount | Date Paid | Amount | Date Paid | Amount | ||||||||||||
9/25/14 | $ | 8,735 | 9/18/13 | $ | 26,328 | 10/29/12 | $ | 184,148 | |||||||||
11/28/14 | 539,932 | 12/5/13 | 43,979 | 12/4/12 | 1,143,404 | ||||||||||||
12/20/13 | 159,080 | ||||||||||||||||
Total | $ | 548,667 | Total | $ | 229,387 | Total | $ | 1,327,552 | |||||||||
The Company also has post-employment agreements with certain key officers to provide supplemental retirement benefits. Additionally, the Company recorded $170,000, $159,000 and $69,000 of deferred compensation expense for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||||||
401(k) Plan | |||||||||||||||||
The Company has a savings plan under Section 401(k) of the Internal Revenue Code, covering substantially all employees after 90 days of continuous employment. Under the plan, employee contributions up to 6% will be matched 50% by the Company. Such matching becomes vested over a period of five years of credited service. Employees may make investments in various stock, money market, or fixed income plans. The Company contributed $161,000, $155,000 and $159,000 to the plan for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||||||
Employee Stock Ownership Plan | |||||||||||||||||
The Company provides an ESOP for the benefit of substantially all employees. The ESOP borrowed $16.9 million from First Financial Northwest and used those funds to acquire 1,692,800 shares of First Financial Northwest's stock at the time of the initial public offering at a price of $10.00 per share. The loan matures on October 8, 2022 and has a fixed interest rate of 4.88%. | |||||||||||||||||
Shares purchased by the ESOP with the loan proceeds are held in a suspense account and are allocated to ESOP participants on a pro rata basis as principal and interest payments are made by the ESOP to First Financial Northwest. The loan is secured by shares purchased with the loan proceeds and will be repaid by the ESOP with funds from the Company's discretionary contributions to the ESOP and earnings on the ESOP assets. Annual principal and interest payments of $1.6 million were made by the ESOP during 2014, 2013, and 2012. | |||||||||||||||||
As shares are committed to be released from collateral, the Company reports compensation expense equal to the daily average market prices of the shares and the shares become outstanding for EPS computations. The compensation expense is accrued throughout the year. | |||||||||||||||||
A summary of key transactions for the ESOP for the periods indicated follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(In thousands) | |||||||||||||||||
ESOP contribution expense | $ | 1,216 | $ | 1,087 | $ | 860 | |||||||||||
Dividends on unallocated ESOP shares used to reduce ESOP contribution | 197 | 132 | — | ||||||||||||||
Shares held by the ESOP at December 31, 2014, and 2013, are as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(Dollars in thousands, except share data) | |||||||||||||||||
Allocated shares | 818,187 | 705,333 | |||||||||||||||
Unallocated shares | 874,613 | 987,467 | |||||||||||||||
Total ESOP shares | 1,692,800 | 1,692,800 | |||||||||||||||
Fair value of unallocated shares | $ | 10,530 | $ | 10,240 | |||||||||||||
Stock-Based Compensation | |||||||||||||||||
In June 2008, First Financial Northwest shareholders approved the First Financial Northwest 2008 Equity Incentive Plan (“Plan”). The Plan provides for the grant of stock options, restricted stock, and stock appreciation rights. | |||||||||||||||||
Total compensation expense for the Plan was $384,000 for the year ended December 31, 2014, $1.4 million for the year ended December 31, 2013, and $2.0 million for the year ended December 31, 2012. The related income tax benefit was $134,000, $496,000 and $696,000 for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||||||
Stock Options | |||||||||||||||||
The Plan authorized the grant of stock options amounting to 2,285,280 shares to Company directors, advisory directors, officers, and employees. Option awards are granted with an exercise price equal to the market price of First Financial Northwest's common stock at the grant date. These option awards have a vesting period of five years, with 20% vesting on the anniversary date of each grant date, and a contractual life of ten years. Any unexercised stock options will expire ten years after the grant date, or sooner in the event of the award recipient’s death, disability or termination of service with the Company. First Financial Northwest has a policy of issuing new shares from authorized but unissued common stock upon the exercise of stock options. At December 31, 2014, remaining options for 671,756 shares of common stock were available for grant under the Plan. | |||||||||||||||||
The fair value of each option award is estimated on the grant date using a Black-Scholes model that uses the assumptions noted in the table below. The dividend yield is based on the current quarterly dividend in effect at the time of the grant. Historical employment data is used to estimate the forfeiture rate. In previous years, First Financial Northwest elected to use a weighted-average of its peers’ historical stock price information in conjunction with its own stock price history due to the limited amount of history available regarding its stock price. Now that sufficient stock price information is available regarding its stock, First Financial Northwest is utilizing the historical volatility of its stock price over a specified period of time for the expected volatility assumption. First Financial Northwest bases the risk-free interest rate on the U.S. Treasury Constant Maturity Indices in effect on the date of the grant. First Financial Northwest elected to use the simplified method permitted by the Securities and Exchange Commission to calculate the expected term by setting the expected life at a midpoint of the vesting term of an option and the contractual term. | |||||||||||||||||
The fair value of options granted was determined using the following weighted-average assumptions as of the grant date for the periods indicated. | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Annual dividend yield | 1.86 | % | 1.35 | % | — | % | |||||||||||
Expected volatility | 37.27 | 34.05 | 29.95 | ||||||||||||||
Risk-free interest rate | 2.44 | 2.18 | 1.1 | ||||||||||||||
Expected term | 10.0 years | 8.1 years | 6.5 years | ||||||||||||||
Weighted-average grant date fair value per option granted | $ | 4.13 | $ | 3.7 | $ | 2.6 | |||||||||||
A summary of the Company’s stock option plan awards activity for the years ended December 31, 2014, 2013, and 2012, follows: | |||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | Weighted- | |||||||||||||
Average | Average | Intrinsic Value | Average | ||||||||||||||
Exercise Price | Remaining | Grant Date | |||||||||||||||
Contractual | Fair Value | ||||||||||||||||
Term in Years | |||||||||||||||||
Outstanding at December 31, 2013 | 1,203,535 | 9.49 | — | 1,103,186 | 2.11 | ||||||||||||
Granted | 95,000 | 10.78 | — | — | 4.13 | ||||||||||||
Exercised | (369,275 | ) | 9.78 | — | 316,763 | 1.92 | |||||||||||
Outstanding at December 31, 2014 | 929,260 | 9.51 | 5.3 | 2,351,328 | 2.4 | ||||||||||||
Expected to vest assuming a 3% forfeiture rate over | |||||||||||||||||
the vesting term | 921,670 | 9.51 | P5Y3M7D | 2,334,915 | 2.39 | ||||||||||||
Exercisable at December 31, 2014 | 676,260 | 9.37 | 4.04 | 1,804,248 | 1.98 | ||||||||||||
As of December 31, 2014, there was $792,617 of total unrecognized compensation cost related to nonvested stock options granted under the Plan. The cost is expected to be recognized over the remaining weighted-average vesting period of 3.9 years. | |||||||||||||||||
Restricted Stock Awards | |||||||||||||||||
The Plan authorized the grant of restricted stock awards amounting to 914,112 shares to directors, advisory directors, officers and employees. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at the grant date. The restricted stock awards’ fair value is equal to the value on the grant date. Shares awarded as restricted stock vest ratably over a five-year period beginning at the grant date with 20% vesting on the anniversary date of each grant date. At December 31, 2014, remaining restricted awards for 74,478 shares were available to be issued. Shares that have been awarded but have not yet vested totaled 75,600 and are held in a reserve account until they are vested. | |||||||||||||||||
A summary of changes in nonvested restricted stock awards for the period ended December 31, 2014, follows: | |||||||||||||||||
Nonvested Shares | Shares | Weighted-Average Grant Date Fair Value | |||||||||||||||
Nonvested at December 31, 2011 | 310,494 | $ | 9.66 | ||||||||||||||
Granted | 82,000 | 8.06 | |||||||||||||||
Vested | (143,647 | ) | 9.93 | ||||||||||||||
Forfeited | (4,000 | ) | 10.35 | ||||||||||||||
Nonvested at December 31, 2012 | 244,847 | 8.95 | |||||||||||||||
Granted | 25,000 | 10.88 | |||||||||||||||
Vested | (156,047 | ) | 9.72 | ||||||||||||||
Forfeited | (10,400 | ) | 9.12 | ||||||||||||||
Nonvested at December 31, 2013 | 103,400 | 8.24 | |||||||||||||||
Vested | (27,800 | ) | 7.64 | ||||||||||||||
Nonvested at December 31, 2014 | 75,600 | 8.47 | |||||||||||||||
Expected to vest assuming a 3% forfeiture rate over the vesting term | 73,332 | ||||||||||||||||
As of December 31, 2014 there was $550,672 of total unrecognized compensation costs related to nonvested shares granted as restricted stock awards. The cost is expected to be recognized over the remaining weighted-average vesting period of 3.0 years. The total fair value of shares vested during the years ended December 31, 2014, and 2013 were $212,000 and $1.5 million, respectively. |
Federal_Income_Taxes
Federal Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Federal Income Taxes | Federal Income Taxes | |||||||||||
The components of income tax expense (benefit) for the periods indicated are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Current | $ | 254 | $ | 199 | $ | 1 | ||||||
Deferred | 5,602 | (13,742 | ) | (1,000 | ) | |||||||
Total income tax expense (benefit) | $ | 5,856 | $ | (13,543 | ) | $ | (999 | ) | ||||
A reconciliation of the tax provision (benefit) based on the statutory corporate rate of 35% during the years ended December 31, 2014, 2013 and 2012 on pretax income is as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Income tax expense at statutory rate | $ | 5,790 | $ | 3,823 | $ | 600 | ||||||
Income tax effect of: | ||||||||||||
Tax exempt interest, net | (8 | ) | (21 | ) | (20 | ) | ||||||
Change in valuation allowance | 19 | (17,329 | ) | (6,347 | ) | |||||||
Expiration of FFNW Foundation donation | — | — | 4,778 | |||||||||
Other, net | 55 | (16 | ) | (10 | ) | |||||||
Total income tax expense (benefit) | $ | 5,856 | $ | (13,543 | ) | $ | (999 | ) | ||||
The net deferred tax asset, included in the accompanying consolidated balance sheets, consisted of the following at the dates indicated: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss carryforward | $ | 3,052 | $ | 7,441 | $ | 11,474 | ||||||
Charitable contributions | 2 | 27 | 25 | |||||||||
ALLL | 3,599 | 4,454 | 3,829 | |||||||||
Reserve for unfunded commitments | 128 | 121 | 87 | |||||||||
Deferred compensation | 688 | 698 | 689 | |||||||||
Net unrealized loss on investments available for sale | — | 463 | — | |||||||||
Alternative minimum tax credit carryforward | 1,939 | 1,685 | 1,485 | |||||||||
Employee benefit plans | 1,535 | 1,701 | 1,910 | |||||||||
Net capital loss on investments | 450 | 431 | 545 | |||||||||
OREO market value adjustments | 414 | 392 | 731 | |||||||||
OREO expenses | — | 122 | 202 | |||||||||
Accrued expenses | 165 | 163 | 142 | |||||||||
Deferred tax assets before valuation allowance | 11,972 | 17,698 | 21,119 | |||||||||
Valuation allowance | (450 | ) | (431 | ) | (16,851 | ) | ||||||
Total deferred tax assets | 11,522 | 17,267 | 4,268 | |||||||||
Deferred tax liabilities: | ||||||||||||
FHLB stock dividends | $ | 1,337 | $ | 1,337 | $ | 1,337 | ||||||
Loan origination fees and costs | 744 | 592 | 621 | |||||||||
Net unrealized gain on investments available for sale | 432 | — | 538 | |||||||||
Other, net | 671 | 503 | 772 | |||||||||
Total deferred tax liabilities | $ | 3,184 | $ | 2,432 | $ | 3,268 | ||||||
Deferred tax assets, net | $ | 8,338 | $ | 14,835 | $ | 1,000 | ||||||
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. 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 tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. These calculations are based on many complex factors including estimates of the timing of reversals of temporary differences, the interpretation of federal income tax laws, and a determination of the differences between the tax and the financial reporting basis of assets and liabilities. Actual results could differ significantly from the estimates and interpretations used in determining the current and deferred income tax assets and liabilities. | ||||||||||||
The Company's federal net operating loss carryforward and capital loss carryforward were $8.7 million and $1.3 million at December 31, 2014 and will begin to expire in 2030, and 2015 respectively. The Company had an alternative minimum tax credit carryforward totaling $1.9 million, with no expiration date. | ||||||||||||
As a result of the bad debt deductions taken in years prior to 1988, retained earnings includes accumulated earnings of approximately $4.5 million, on which federal income taxes have not been provided. If, in the future, this portion of retained earnings is used for any purpose other than to absorb losses on loans or on property acquired through foreclosure, federal income taxes may be imposed at the then-prevailing corporate tax rates. The Bank does not contemplate that such amounts will be used for any purpose that would create a federal income tax liability; therefore no provision has been made. | ||||||||||||
Under GAAP, a valuation allowance is required to be recognized if it is “more likely than not” that a portion of the deferred tax asset will not be realized. In order to support a conclusion that a valuation allowance is not needed, management evaluates both positive and negative evidence under the "more likely than not" standard. The weight given to the potential effect of negative and positive evidence should be commensurate with the extent to which the strength of the evidence can be objectively verified. During the year ended December 31, 2013, management determined that a full valuation allowance was no longer appropriate and reversed essentially all of the valuation allowance. In reaching this determination, management considered the scheduled reversal of deferred tax assets and liabilities, taxes paid in carryback years, available tax planning strategies, and projected taxable income. As of December 31, 2014, the need for a valuation allowance was limited to the amount associated with the capital loss carryforward. The ultimate utilization of deferred tax assets is dependent upon the existence, or generation of taxable income in the periods when those temporary differences and net operating loss and credit carryforwards are deductible. |
Regulatory_Capital_Requirement
Regulatory Capital Requirements | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ||||||||||||||||||||||
Regulatory Capital Requirements | Regulatory Capital Requirements | |||||||||||||||||||||
Under Federal regulations, pre-conversion retained earnings are restricted for the protection of pre-conversion depositors. | ||||||||||||||||||||||
The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and, possibly, additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. | ||||||||||||||||||||||
The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies. | ||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table that follows) of total and Tier 1 capital to risk-weighted assets (as defined in the regulations) and of Tier 1 capital to average assets. | ||||||||||||||||||||||
As of December 31, 2014, according to the most recent notification from the FDIC, the Bank was categorized as well-capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since the notification that management believes have changed the Bank's category. | ||||||||||||||||||||||
The Bank’s actual capital amounts and ratios at December 31, 2014, and 2013, are presented in the following table. | ||||||||||||||||||||||
To be Well Capitalized | ||||||||||||||||||||||
For Capital Adequacy | Under Prompt Corrective | |||||||||||||||||||||
Actual | Purposes | Action Provisions | ||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
December 31, 2014: | ||||||||||||||||||||||
Total risk-based capital | $ | 116,053 | 19.56 | % | $ | 47,469 | 8 | % | $ | 59,336 | 10 | % | ||||||||||
Tier 1 risk-based capital | 108,596 | 18.3 | 23,734 | 4 | 35,602 | 6 | ||||||||||||||||
Tier 1 leverage capital | 108,596 | 11.79 | 36,849 | 4 | 46,061 | 5 | ||||||||||||||||
December 31, 2013: | ||||||||||||||||||||||
Total risk-based capital | $ | 174,732 | 28.44 | % | $ | 49,146 | 8 | % | $ | 61,433 | 10 | % | ||||||||||
Tier 1 risk-based capital | 166,988 | 27.18 | 24,573 | 4 | 36,860 | 6 | ||||||||||||||||
Tier 1 leverage capital | 166,988 | 18.6 | 35,903 | 4 | 44,879 | 5 | ||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
Financial Instruments with Off-Balance-Sheet Risk. In the normal course of business, the Company makes loan commitments, typically unfunded loans and unused lines of credit, to accommodate the financial needs of its customers. These arrangements have credit risk essentially the same as that involved in extending loans to customers and are subject to the Company's normal credit policies, including collateral requirements, where appropriate. Commitments to extend credit are agreements to lend to customers in accordance with predetermined contractual provisions. These commitments are for specific periods or, may contain termination clauses and may require the payment of a fee. The total amounts of unused commitments do not necessarily represent future credit exposure or cash requirements, in that commitments can expire without being drawn upon. Unfunded commitments to extend credit totaled $43.9 million and $35.2 million at December 31, 2014, and 2013, respectively. Commitments to originate loans at December 31, 2014, totaled $2.1 million and were all at adjustable rates. | |
Legal Proceedings. The Company and its subsidiaries are from time to time defendants in and are threatened with various legal proceedings arising from their regular business activities. Management, after consulting with legal counsel, is of the opinion that the ultimate liability, if any, resulting from these pending or threatened actions and proceedings will not have a material effect on the financial statements of the Company. |
Parent_Company_Only_Financial_
Parent Company Only Financial Statements | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Parent Company Only Financial Statements [Abstract] | ||||||||||||
Parent Company Only Financial Statements | Parent Company Only Financial Statements | |||||||||||
Presented below are the condensed balance sheets, income statements and statements of cash flows for First Financial Northwest. | ||||||||||||
FIRST FINANCIAL NORTHWEST, INC. | ||||||||||||
Condensed Balance Sheets | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 97 | $ | 84 | ||||||||
Interest-bearing deposits | 64,374 | 9,127 | ||||||||||
Investment in First Savings Bank | 108,239 | 164,968 | ||||||||||
Investment in First Financial Diversified, Inc. | 6,173 | 8,336 | ||||||||||
Receivable from subsidiaries | 1,589 | 1,536 | ||||||||||
Deferred tax assets, net | 1,124 | — | ||||||||||
Other assets | 51 | 619 | ||||||||||
Total assets | $ | 181,647 | $ | 184,670 | ||||||||
Liabilities and Stockholders' Equity | ||||||||||||
Liabilities: | ||||||||||||
Payable to subsidiaries | $ | 116 | $ | 66 | ||||||||
Other liabilities | 119 | 249 | ||||||||||
Total liabilities | 235 | 315 | ||||||||||
Stockholders' equity | 181,412 | 184,355 | ||||||||||
Total liabilities and stockholders' equity | $ | 181,647 | $ | 184,670 | ||||||||
FIRST FINANCIAL NORTHWEST, INC. | ||||||||||||
Condensed Income Statements | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Operating income: | ||||||||||||
Interest income: | ||||||||||||
Interest-bearing deposits with banks | $ | 26 | $ | 27 | $ | 58 | ||||||
Other income | 8 | 12 | ||||||||||
Total operating income | 34 | 39 | 58 | |||||||||
Operating expenses: | ||||||||||||
Other expenses | 1,475 | 1,756 | 1,793 | |||||||||
Total operating expenses | 1,475 | 1,756 | 1,793 | |||||||||
Loss before provision for federal income taxes and equity in undistributed | ||||||||||||
earnings of subsidiaries | (1,441 | ) | (1,717 | ) | (1,735 | ) | ||||||
Federal income tax benefit | (573 | ) | (619 | ) | — | |||||||
Loss before equity in undistributed loss of subsidiaries | (868 | ) | (1,098 | ) | (1,735 | ) | ||||||
Equity in undistributed earnings of subsidiaries | 11,555 | 25,563 | 4,448 | |||||||||
Net income | $ | 10,687 | $ | 24,465 | $ | 2,713 | ||||||
FIRST FINANCIAL NORTHWEST, INC. | ||||||||||||
Condensed Statements of Cash Flows | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 10,687 | $ | 24,465 | $ | 2,713 | ||||||
Adjustments to reconcile net income to net cash from operating | ||||||||||||
activities: | ||||||||||||
Equity in undistributed earnings of subsidiaries | (11,555 | ) | (25,563 | ) | (4,448 | ) | ||||||
Dividends received from subsidiary | 72,300 | 14,491 | — | |||||||||
ESOP, stock options, and restricted stock compensation | 13 | 48 | — | |||||||||
Change in deferred tax assets, net | (540 | ) | (584 | ) | — | |||||||
Change in receivables from subsidiaries | 8 | (12 | ) | — | ||||||||
Change in payables to subsidiaries | 50 | 66 | — | |||||||||
Change in other assets | (16 | ) | 119 | (113 | ) | |||||||
Changes in other liabilities | (130 | ) | (38 | ) | 260 | |||||||
Net cash provided (used) by operating activities | 70,817 | 12,992 | (1,588 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||
Investments in subsidiaries | — | 71 | — | |||||||||
ESOP loan repayment | 1,054 | 1,011 | 963 | |||||||||
Net cash provided in investing activities | 1,054 | 1,082 | 963 | |||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from exercise of stock options | 3,611 | 3,023 | — | |||||||||
Proceeds for vested awards | 282 | 1,508 | 1,427 | |||||||||
Repurchase and retirement of common stock | (17,566 | ) | (28,090 | ) | — | |||||||
Dividends paid | (2,938 | ) | (1,895 | ) | — | |||||||
Net cash used by financing activities | (16,611 | ) | (25,454 | ) | 1,427 | |||||||
Net increase (decrease) in cash | 55,260 | (11,380 | ) | 802 | ||||||||
Cash and cash equivalents at beginning of year | 9,211 | 20,591 | 19,789 | |||||||||
Cash and cash equivalents at end of year | $ | 64,471 | $ | 9,211 | $ | 20,591 | ||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings Per Share | Earnings Per Share | |||||||||||
The following table presents a reconciliation of the components used to compute basic and diluted earnings per share for the periods indicated. | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Dollars in thousands, except share data) | ||||||||||||
Net income | $ | 10,687 | $ | 24,465 | $ | 2,713 | ||||||
Earnings allocated to participating securities | (52 | ) | (150 | ) | (35 | ) | ||||||
Earnings allocated to common shareholders | $ | 10,635 | $ | 24,315 | $ | 2,678 | ||||||
Basic weighted-average common shares outstanding | 14,747,086 | 16,580,882 | 17,643,978 | |||||||||
Dilutive effect of stock options | 116,624 | 28,985 | 18,445 | |||||||||
Dilutive effect of restricted stock grants | 23,488 | — | — | |||||||||
Diluted weighted-average common shares outstanding | 14,887,198 | 16,609,867 | 17,662,423 | |||||||||
Basic earnings per share | $ | 0.72 | $ | 1.47 | $ | 0.15 | ||||||
Diluted earnings per share | $ | 0.71 | $ | 1.46 | $ | 0.15 | ||||||
Potential dilutive shares are excluded from the computation of earnings per share if their effect is anti-dilutive. Options to purchase an additional 205,000, 1,311,433, and 1,398,524 were not included in the computation of diluted earnings per share at December 31, 2014, 2013, and 2012, respectively, because the incremental shares under the treasury stock method of calculation resulted in them being antidilutive. | ||||||||||||
According to the provisions of ASC 260, Earnings Per Share, nonvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are participating securities and are included in the computation of EPS pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared or accumulated and participation rights in undistributed earnings. Certain of the Company's nonvested restricted stock awards qualify as participating securities. | ||||||||||||
Net income is allocated between the common stock and participating securities pursuant to the two-class method, based on their rights to receive dividends, participate in earnings, or absorb losses. Basic earnings per common share is computed by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding during the period, excluding participating nonvested restricted shares. |
Other_Comprehensive_Income
Other Comprehensive Income | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Other Comprehensive Income (Loss) [Abstract] | ||||||||||||
Other Comprehensive Income (Loss) | Other Comprehensive Income | |||||||||||
The components of accumulated other comprehensive income (loss) included in stockholders’ equity for the periods indicated, are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Net unrealized gains (losses) on investments available-for-sale | $ | 1,234 | $ | (1,324 | ) | $ | 1,537 | |||||
Tax effect | 1,591 | 696 | 789 | |||||||||
Net of tax amount | $ | (357 | ) | $ | (2,020 | ) | $ | 748 | ||||
Summarized_Consolidated_Quarte
Summarized Consolidated Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||
Summarized Consolidated Quarterly Financial Data (Unaudited) | Summarized Consolidated Quarterly Financial Data (Unaudited) | |||||||||||||||
The following table presents summarized consolidated quarterly data for each of the last three years. | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
(Dollars in thousands, except share data) | ||||||||||||||||
2014 | ||||||||||||||||
Total interest income | $ | 9,652 | $ | 9,695 | $ | 9,736 | $ | 9,606 | ||||||||
Total interest expense | 1,598 | 1,517 | 1,517 | 1,609 | ||||||||||||
Net interest income | 8,054 | 8,178 | 8,219 | 7,997 | ||||||||||||
Recapture of provision for loan losses | (500 | ) | (100 | ) | (300 | ) | (1,200 | ) | ||||||||
Net interest income after recapture of provision for loan losses | 8,554 | 8,278 | 8,519 | 9,197 | ||||||||||||
Total noninterest income | 68 | 88 | 186 | 156 | ||||||||||||
Total noninterest expense | 4,524 | 4,702 | 4,508 | 4,769 | ||||||||||||
Income before provision for income taxes | 4,098 | 3,664 | 4,197 | 4,584 | ||||||||||||
Provision for federal income tax expense | 1,453 | 1,297 | 1,462 | 1,644 | ||||||||||||
Net income | $ | 2,645 | $ | 2,367 | $ | 2,735 | $ | 2,940 | ||||||||
Basic earnings per share | $ | 0.17 | $ | 0.16 | $ | 0.19 | $ | 0.2 | ||||||||
Diluted earnings per share (1) | $ | 0.17 | $ | 0.16 | $ | 0.19 | $ | 0.2 | ||||||||
2013 | ||||||||||||||||
Total interest income | $ | 9,538 | $ | 9,684 | $ | 9,549 | $ | 9,768 | ||||||||
Total interest expense | 2,149 | 1,879 | 1,804 | 1,694 | ||||||||||||
Net interest income | 7,389 | 7,805 | 7,745 | 8,074 | ||||||||||||
Provision (recapture of provision) for loan losses | — | 100 | — | (200 | ) | |||||||||||
Net interest income after provision (recapture of provision) for loan losses | 7,389 | 7,705 | 7,745 | 8,274 | ||||||||||||
Total noninterest income | 104 | 155 | 120 | 372 | ||||||||||||
Total noninterest expense | 5,878 | 5,306 | 5,388 | 4,370 | ||||||||||||
Income before provision (benefit) for income taxes | 1,615 | 2,554 | 2,477 | 4,276 | ||||||||||||
Provision (benefit) for federal income tax expense | 59 | (13,809 | ) | (135 | ) | 342 | ||||||||||
Net income | $ | 1,556 | $ | 16,363 | $ | 2,612 | $ | 3,934 | ||||||||
Basic earnings per share (1) | $ | 0.09 | $ | 0.96 | $ | 0.16 | $ | 0.25 | ||||||||
Diluted earnings per share | $ | 0.09 | $ | 0.95 | $ | 0.16 | $ | 0.25 | ||||||||
2012 | ||||||||||||||||
Total interest income | $ | 11,162 | $ | 10,399 | $ | 10,157 | $ | 9,748 | ||||||||
Total interest expense | 3,452 | 3,138 | 2,946 | 2,710 | ||||||||||||
Net interest income | 7,710 | 7,261 | 7,211 | 7,038 | ||||||||||||
Provision for loan losses | 1,700 | 650 | 700 | — | ||||||||||||
Net interest income after provision for loan losses | 6,010 | 6,611 | 6,511 | 7,038 | ||||||||||||
Total noninterest income | 281 | 330 | 107 | 118 | ||||||||||||
Total noninterest expense | 5,621 | 6,569 | 7,457 | 5,645 | ||||||||||||
Income (loss) before provision (benefit) for income taxes | 670 | 372 | (839 | ) | 1,511 | |||||||||||
Provision (benefit) for federal income taxes | 48 | (999 | ) | (48 | ) | — | ||||||||||
Net income (loss) | $ | 622 | $ | 1,371 | $ | (791 | ) | $ | 1,511 | |||||||
Basic earnings (loss) per share (1) | $ | 0.04 | $ | 0.08 | $ | (0.04 | ) | $ | 0.09 | |||||||
Diluted earnings (loss) per share (1) | $ | 0.04 | $ | 0.08 | $ | (0.04 | ) | $ | 0.09 | |||||||
(1) Basic and diluted earnings per share may not equal year-to-date total due to rounding. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | Description of Business |
First Financial Northwest, Inc. (“First Financial Northwest”), a Washington corporation, was formed on June 1, 2007 for the purpose of becoming the holding company for First Savings Bank Northwest (“First Savings Bank” or “the Bank”) in connection with the conversion from a mutual holding company structure to a stock holding company structure completed on October 9, 2007. First Financial Northwest's business activities generally are limited to passive investment activities and oversight of its investment in First Savings Bank. Accordingly, the information presented in the consolidated financial statements and related data, relates primarily to First Savings Bank. First Financial Northwest is a savings and loan holding company and is subject to regulation by the Board of Governors of the Federal Reserve Bank of San Francisco (“FRB”) as the successor to the Office of Thrift Supervision (“OTS”). The Company has filed an application with the FRB to convert from a savings and loan holding company to a bank holding company, consistent with First Savings Bank's shift in focus from a traditional savings and loan association towards a full service, community bank. While we anticipate this conversion to be completed in the first calendar quarter of 2015, no assurance can be made regarding the timing. In addition, the completion of the conversion is subject to the receipt of all required regulatory approvals. First Savings Bank is regulated by the Federal Deposit Insurance Corporation (“FDIC”) and the Washington State Department of Financial Institutions (“DFI”). | |
First Savings Bank was organized in 1923 as a Washington state-chartered savings and loan association, converted to a federal mutual savings and loan association in 1935, and converted to a Washington state-chartered mutual savings bank in 1992. In 2002, First Savings Bank reorganized into a two-tier mutual holding company structure, became a stock savings bank and became the wholly-owned subsidiary of First Financial of Renton, Inc. In connection with the mutual to stock conversion in 2007, First Savings Bank changed its name to First Savings Bank Northwest. | |
First Savings Bank is a community-based savings bank primarily serving King and, to a lesser extent, Pierce, Snohomish and Kitsap counties, Washington through one full-service banking office located in Renton, Washington. First Savings Bank's business consists of attracting deposits from the public and utilizing these deposits to originate one-to-four family residential, multifamily, commercial real estate, construction/land development, business and consumer loans. The Bank's current business strategy includes an emphasis on one-to-four family residential, multifamily, commercial, and construction real estate lending. | |
Basis of Presentation and Use of Estimates | |
The accounting and reporting policies of First Financial Northwest and its subsidiaries conform to U.S. generally accepted accounting principles (“GAAP”). In preparing the consolidated financial statements, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided. Actual results could differ from these estimates. Material estimates particularly subject to change include the allowance for loan and lease losses (“ALLL”), other real estate owned (“OREO”), deferred tax assets and the fair values of financial instruments. | |
Consolidation | |
The accompanying consolidated financial statements include the accounts of First Financial Northwest and its wholly-owned subsidiaries First Savings Bank and First Financial Diversified Corporation (collectively, "the Company"). All significant intercompany balances and transactions between First Financial Northwest and its subsidiaries have been eliminated in consolidation. | |
Reclassification | |
Certain amounts in the consolidated financial statements for prior years have been reclassified to conform to the current consolidated financial statement presentation. The results of the reclassifications are not considered material and have no effect on previously reported net income or stockholders' equity. | |
Subsequent Events | Subsequent Events |
The Company has evaluated events and transactions subsequent to December 31, 2014 for potential recognition or disclosure and determined there are no such events or transactions requiring 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 and in banks, interest-bearing deposits and federal funds sold all with maturities of three months or less. | |
The Bank is required to maintain an average reserve balance with the FRB or maintain such reserve balance in the form of cash. | |
Investments | Investments |
Investments are classified into one of three categories: (1) held-to-maturity, (2) available-for-sale, or (3) trading. We had no held-to-maturity or trading securities at December 31, 2014, or 2013. Investments are categorized as held-to-maturity when we have the positive intent and ability to hold them to maturity. | |
Investments are classified as available-for-sale if the Company intends to hold the securities for an indefinite period of time, but not necessarily to maturity. Investments available-for-sale are reported at fair value. Unrealized gains and losses on investments available-for-sale are excluded from earnings and are reported in other comprehensive income (loss), net of applicable taxes within the Consolidated Statement of Comprehensive Income (Loss). Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Amortization or accretion of purchase premiums and discounts are included in investment income using the level-yield method over the remaining period to contractual maturity. Dividend or interest income is recognized when it is earned. | |
The estimated fair value of investments is based on quoted market prices for investments traded in the public marketplace or dealer quotes. Mortgage-backed investments represent participation interest in pools of first mortgage loans originated and serviced by the issuers of the investments. | |
Management makes an assessment to determine whether there have been any events or economic circumstances to indicate that a security on which there is an unrealized loss is impaired on an other-than-temporary basis. Management considers many factors including the severity and duration of the impairment, recent events specific to the issuer or industry, and for debt securities, external credit ratings and recent downgrades. Securities on which there is an unrealized loss that is deemed to be an other-than-temporary impairment (“OTTI”) are written down to fair value. For equity securities, the write-down is recorded as a realized loss in noninterest income in the Consolidated Income Statements. For debt securities, if management intends to sell the security or it is likely that management will be required to sell the security before recovering its cost basis, the entire impairment loss would be recognized in earnings as an OTTI. If management does not intend to sell the security and it is not likely that management will be required to sell the security but management does not expect to recover the entire amortized cost basis of the security, only the portion of the impairment loss representing credit losses would be recognized in earnings. The credit loss on a security is measured as the difference between the amortized cost basis and the present value of the cash flows expected to be collected. Projected cash flows are discounted by the original or current effective interest rate depending on the nature of the security being measured for potential OTTI. The remaining impairment related to all other factors, the difference between the present value of the cash flows expected to be collected and fair value, is recognized as a charge to other comprehensive income (“OCI”). Impairment losses related to all other factors are presented as separate categories within OCI. | |
Loans Receivable | Loans Receivable |
Loans are recorded at their outstanding principal balance adjusted for charge-offs, the ALLL and net deferred fees or costs. Interest on loans is calculated using the simple interest method based on the month end balance of the principal amount outstanding and is credited to income as earned. | |
The accrual of interest on loans is discontinued at the time the loan is 90 days delinquent unless the loan is well secured and in the process of collection. Consumer and other loans are typically managed in the same manner. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is doubtful. | |
All interest accrued but not collected on loans that are placed on nonaccrual is reversed against interest income. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. In order to return a nonaccrual loan to accrual status, each loan is evaluated on a case-by-case basis. We evaluate the borrower's financial condition to ensure that future loan payments are reasonably assured. We also take into consideration the borrower's willingness and ability to make the loan payments and historical repayment performance. We require the borrower to make the loan payments consistently for a period of at least six months as agreed to under the terms of any modified loan agreement before we will consider reclassifying the loan to accrual status. | |
Allowance for Loan and Lease Losses (ALLL) | Allowance for Loan and Lease Losses (ALLL) |
The ALLL is a valuation allowance for probable incurred credit losses. Losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Any subsequent recoveries are credited to the allowance. | |
The ALLL is evaluated on a regular basis by management and is based upon management's periodic review of the collectability of the loans and factors such as the nature and volume of the loan portfolio, historical loss considerations, adverse situations that may affect the borrower's ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. The evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. | |
While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions or changes to the credit quality of the loan portfolio. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company's ALLL. Such agencies may require management to make adjustments to the allowance based on their judgments about information available to them at the time of their examination. | |
Impaired Loans | Impaired Loans |
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, market conditions, rent rolls and the financial strength of the borrower(s) and guarantor(s), if any. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. | |
Management determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrowers, including the length of the delay, the reasons for the delay, the borrower's prior payment history and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured by the fair value method on a loan-by-loan basis. | |
When a loan is identified as impaired, its impairment is measured using the present value of expected future cash flows, discounted at the loan's effective interest rate, except when the sole (remaining) source of repayment for the loan is the operation or liquidation of the collateral. In these cases, the Company uses an observable market price or current fair value of the collateral, less selling costs when foreclosure is probable, instead of discounted cash flows. If management determines that the value of the impaired loan is less than the recorded investment in the loan, an impairment is recognized through an allowance estimate or a charge-off to the ALLL. | |
Loan Fees | Loan Fees |
Loan origination fees and certain direct origination costs are deferred and amortized as an adjustment to the yield of the loans over their contractual lives, using the effective interest method. In the event loans are sold, the remaining deferred loan origination fees and/or costs are recognized as a component of the gains or losses on the sales of loans. | |
Premises and Equipment | Premises and Equipment |
Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives used to compute depreciation and amortization is 15 to 40 years for buildings and building improvements, and is three to seven years for furniture, fixtures, and equipment. Management reviews buildings, improvements and equipment for impairment on an annual basis or whenever events or changes in the circumstances indicate that the undiscounted cash flows for the property are less than its carrying value. If identified, an impairment loss is recognized through a charge to earnings based on the fair value of the property. | |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock |
As a member of the Federal Home Loan Bank System, the Bank is required to maintain a minimum level of investment in the Federal Home Loan Bank of Seattle (“FHLB”) stock, based on specified percentages of outstanding mortgages and the Bank's outstanding FHLB advances. Ownership of FHLB stock is restricted to the FHLB and member institutions. | |
Other Real Estate Owned | Other Real Estate Owned |
OREO consists principally of properties acquired through foreclosure and is stated at the lower of cost or estimated market value less selling costs. Losses arising from the acquisition of property, in full or partial satisfaction of loans, are charged to the ALLL. | |
Subsequent to the transfer to foreclosed assets held for sale, these assets continue to be recorded at the lower of cost or fair value (less estimated costs to sell), based on periodic evaluations. Subsequent write-downs in value are charged to noninterest expense. Generally, legal and professional fees associated with foreclosures are expensed as incurred. Costs incurred to improve property prior to sale are capitalized; however, in no event are recorded costs allowed to exceed estimated fair value. Subsequent gains, losses, or expenses recognized on the sale of these properties are included in noninterest expense. The amounts that will ultimately be recovered from foreclosed assets may differ substantially from the carrying value of the assets because of future market factors beyond management's control. | |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments |
Financial instruments include off-balance sheet credit instruments, such as commitments to make loans, unused lines of credit and commercial letters of credit issued to meet customer financing needs. The face amount of these items represents the exposure to loss before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. | |
Stock-Based Compensation | Stock-Based Compensation |
Compensation cost is recognized for stock options and restricted stock awards, based on the fair value of these awards at the grant date. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company's common stock at the grant date is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. | |
Federal Income Taxes | Federal Income Taxes |
The Company files a consolidated Federal income tax return. Income taxes are accounted for using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax 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 be applied to taxable income in the periods in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. Valuation allowances are established to reduce the net carrying amount of deferred tax assets if it is determined to be more likely than not that all or some portion of the deferred tax asset will not be realized. | |
Deferred tax assets are recognized subject to management's judgment that realization is more likely than not. A tax position that meets the “more likely than not” recognition threshold is measured to determine the amount of benefit to recognize. The tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. | |
At December 31, 2014 and 2013, the Company had no unrecognized tax benefits. The Company's policy is to recognize interest and penalties on unrecognized tax expenses or benefits in federal income tax expense in the Consolidated Income Statements. There were no interest and penalties for the years ended December 31, 2014 and 2013. The tax years subject to examination by the Internal Revenue Service (“IRS”) are the years ended December 31, 2014, 2013, 2012, and 2011. | |
Employee Stock Ownership Plan | Employee Stock Ownership Plan |
The cost of shares issued to the Employee Stock Ownership Plan ("ESOP"), but not yet allocated to participants, is shown as a reduction of stockholders' equity. Compensation expense is based on the market price of shares as they are committed to be released to participant accounts. Dividends on allocated ESOP shares reduce retained earnings; dividends on unearned ESOP shares reduce debt and accrued interest. | |
Earnings Per Share (EPS) | Earnings Per Share (“EPS”) |
Basic EPS is computed by dividing net income, reduced by earnings allocated to participating shares of restricted stock, by the weighted-average number of common shares outstanding during the period. As ESOP shares are committed to be released they become outstanding for EPS calculation purposes. ESOP shares not committed to be released are not considered outstanding. The basic EPS calculation excludes the dilutive effect of all common stock equivalents. Diluted earnings per share reflects the weighted-average potential dilution that could occur if all potentially dilutive securities or other commitments to issue common stock were exercised or converted into common stock using the treasury stock method. | |
Comprehensive Income | Comprehensive Income |
Comprehensive income consists of net income and unrealized gains and losses on investments available-for-sale which are also recognized as separate components of equity, net of tax. | |
Advertising Expenses | Advertising Expenses |
Advertising costs are generally expensed as incurred. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. | |
Segment Information | Segment Information |
The Company's activities are considered to be a single industry segment for financial reporting purposes. The Company is engaged in the business of attracting deposits from the general public and providing lending services. Substantially all income is derived from a diverse base of investments and commercial, construction, mortgage, and consumer lending activities. | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements |
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-11, Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU No. 2013-11 requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, except to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. No new recurring disclosures are required. The amendments are effective for annual and interim reporting periods beginning on or after December 15, 2013, and are to be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption of ASU No. 2013-11 did not have a material impact on the Company's consolidated financial statements. | |
In January 2014, the FASB issued ASU No. 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon foreclosure. ASU 2014-04 clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The ASU is effective for annual and interim reporting periods beginning on or after December 15, 2014 and can be applied with a modified retrospective transition method or prospectively. The Company is currently reviewing the requirements of ASU No. 2014-04, but does not expect the ASU to have a material impact on the Company's consolidated financial statements. | |
In August 2014, FASB issued ASU No. 2014-14, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. ASU 2014-14 addresses certain government-sponsored loan guarantee programs, such as those offered by the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA), where qualifying creditors can extend mortgage loans to borrowers with a guarantee that entitles the creditor to recover all or a portion of the unpaid principal balance from the government if the borrower defaults. The objective of this ASU is to reduce variations in practice by addressing the classification of foreclosed mortgage loans that are fully or partially guaranteed under government programs. Currently, some creditors reclassify those loans to real estate as with other foreclosed loans that do not have guarantees; others reclassify the loans to other receivables. The amendments affect creditors that hold government-guaranteed mortgage loans, including those guaranteed by the FHA and the VA. The ASU is effective for annual and interim periods beginning after December 15, 2014. The adoption of this ASU will not have a material impact on the Company's consolidated financial statements. | |
In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20). The ASU eliminates from GAAP the concept of extraordinary items. |
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||||||
Available-for-sale Securities | The following tables summarize the amortized cost and fair value of investments available-for-sale at December 31, 2014, and 2013, and the corresponding amounts of gross unrealized gains and losses. | |||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Mortgage-backed investments: | ||||||||||||||||||||||||
Fannie Mae | $ | 40,083 | $ | 863 | $ | (30 | ) | $ | 40,916 | |||||||||||||||
Freddie Mac | 21,442 | 526 | (22 | ) | 21,946 | |||||||||||||||||||
Ginnie Mae | 26,049 | 87 | (122 | ) | 26,014 | |||||||||||||||||||
Municipal bonds | 642 | 2 | — | 644 | ||||||||||||||||||||
U.S. Government agencies | 16,863 | 104 | (151 | ) | 16,816 | |||||||||||||||||||
Corporate bonds | 14,061 | 39 | (62 | ) | 14,038 | |||||||||||||||||||
$ | 119,140 | $ | 1,621 | $ | (387 | ) | $ | 120,374 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Mortgage-backed investments: | ||||||||||||||||||||||||
Fannie Mae | $ | 46,234 | $ | 623 | $ | (625 | ) | $ | 46,232 | |||||||||||||||
Freddie Mac | 25,707 | 343 | (194 | ) | 25,856 | |||||||||||||||||||
Ginnie Mae | 34,403 | 63 | (593 | ) | 33,873 | |||||||||||||||||||
Municipal bonds | 2,043 | 6 | (199 | ) | 1,850 | |||||||||||||||||||
U.S. Government agencies | 23,222 | 123 | (641 | ) | 22,704 | |||||||||||||||||||
Corporate bonds | 14,079 | 36 | (266 | ) | 13,849 | |||||||||||||||||||
$ | 145,688 | $ | 1,194 | $ | (2,518 | ) | $ | 144,364 | ||||||||||||||||
Schedule of Available for sale Securities, Debt Maturities | Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Investments not due at a single maturity date, primarily mortgage-backed investments are shown separately. | |||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Due within one year | $ | — | $ | — | ||||||||||||||||||||
Due after one year through five years | 13,615 | 13,533 | ||||||||||||||||||||||
Due after five years through ten years | 15,102 | 15,048 | ||||||||||||||||||||||
Due after ten years | 2,849 | 2,918 | ||||||||||||||||||||||
31,566 | 31,499 | |||||||||||||||||||||||
Mortgage-backed investments | 87,574 | 88,875 | ||||||||||||||||||||||
$ | 119,140 | $ | 120,374 | |||||||||||||||||||||
Gain (Loss) on Investments | Sales of available-for-sale investments were as follows: | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Proceeds | $ | 4,980 | $ | 45,137 | $ | 23,756 | ||||||||||||||||||
Gross gains | — | 11 | 307 | |||||||||||||||||||||
Gross losses | (20 | ) | (49 | ) | (6 | ) | ||||||||||||||||||
Schedule of Available for sale Securities in Continuous Unrealized Loss positions | The following tables summarize the aggregate fair value and gross unrealized loss by length of time those investments have been continuously in an unrealized loss position at December 31, 2014 and 2013. | |||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||
Loss | Loss | Loss | ||||||||||||||||||||||
Mortgage-backed investments: | (In thousands) | |||||||||||||||||||||||
Fannie Mae | $ | — | $ | — | $ | 1,456 | $ | (30 | ) | $ | 1,456 | $ | (30 | ) | ||||||||||
Freddie Mac | — | — | 1,832 | (22 | ) | 1,832 | (22 | ) | ||||||||||||||||
Ginnie Mae | 1,883 | (6 | ) | 9,952 | (116 | ) | 11,835 | (122 | ) | |||||||||||||||
U.S. Government agencies | 545 | — | 8,096 | (151 | ) | 8,641 | (151 | ) | ||||||||||||||||
Corporate bonds | 1,496 | (4 | ) | 5,942 | (58 | ) | 7,438 | (62 | ) | |||||||||||||||
$ | 3,924 | $ | (10 | ) | $ | 27,278 | $ | (377 | ) | $ | 31,202 | $ | (387 | ) | ||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||
Loss | Loss | Loss | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Mortgage-backed investments: | ||||||||||||||||||||||||
Fannie Mae | $ | 27,429 | $ | (625 | ) | $ | — | $ | — | $ | 27,429 | $ | (625 | ) | ||||||||||
Freddie Mac | 8,704 | (155 | ) | 2,483 | (39 | ) | 11,187 | (194 | ) | |||||||||||||||
Ginnie Mae | 16,617 | (278 | ) | 12,730 | (315 | ) | 29,347 | (593 | ) | |||||||||||||||
Municipal bonds | — | — | 1,201 | (199 | ) | 1,201 | (199 | ) | ||||||||||||||||
U.S. Government agencies | 7,702 | (596 | ) | 4,955 | (45 | ) | 12,657 | (641 | ) | |||||||||||||||
Corporate bonds | 8,796 | (266 | ) | — | — | 8,796 | (266 | ) | ||||||||||||||||
$ | 69,248 | $ | (1,920 | ) | $ | 21,369 | $ | (598 | ) | $ | 90,617 | $ | (2,518 | ) | ||||||||||
Loans_Receivable_Schedule_of_A
Loans Receivable: Schedule of Accounts, Notes, Loans and Financing Receivable (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans receivable at December 31, 2014, and 2013 are summarized as follows: | |||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Permanent owner occupied | $ | 161,013 | $ | 158,797 | ||||||||||||||||||||||||
Permanent non-owner occupied | 112,180 | 121,877 | ||||||||||||||||||||||||||
Construction non-owner occupied | 500 | — | ||||||||||||||||||||||||||
273,693 | 280,674 | |||||||||||||||||||||||||||
Multifamily: | ||||||||||||||||||||||||||||
Permanent | 116,014 | 106,152 | ||||||||||||||||||||||||||
Construction | 4,450 | 12,360 | ||||||||||||||||||||||||||
120,464 | 118,512 | |||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||
Permanent | 239,211 | 227,016 | ||||||||||||||||||||||||||
Construction | 6,100 | 19,905 | ||||||||||||||||||||||||||
Land | 2,956 | 1,831 | ||||||||||||||||||||||||||
248,267 | 248,752 | |||||||||||||||||||||||||||
Construction/land development: (1) | ||||||||||||||||||||||||||||
One-to-four family residential | 19,860 | 3,977 | ||||||||||||||||||||||||||
Multifamily | 17,902 | 12,491 | ||||||||||||||||||||||||||
Commercial | 4,300 | 6,726 | ||||||||||||||||||||||||||
Land development | 8,993 | 7,461 | ||||||||||||||||||||||||||
51,055 | 30,655 | |||||||||||||||||||||||||||
Business | 3,783 | 1,142 | ||||||||||||||||||||||||||
Consumer | 7,130 | 9,201 | ||||||||||||||||||||||||||
Total loans | 704,392 | 688,936 | ||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||
Loans in process ("LIP") | 27,359 | 10,209 | ||||||||||||||||||||||||||
Deferred loan fees, net | 2,604 | 2,580 | ||||||||||||||||||||||||||
ALLL | 10,491 | 12,994 | ||||||||||||||||||||||||||
Loans receivable, net | $ | 663,938 | $ | 663,153 | ||||||||||||||||||||||||
___________ | ||||||||||||||||||||||||||||
(1) | Excludes construction loans that will convert to permanent loans. The Company considers these loans to be "rollovers" in that one loan is originated for both the construction loan and permanent financing. These loans are classified according to the underlying collateral. At December 31, 2014, the Company had $6.1 million, or 2.5% of the total commercial real estate portfolio, $4.5 million, or 3.7% of the total multifamily loans, and $500,000 or 0.2% of the total one-to-four family residential in these "rollover" type of loans. At December 31, 2013, the Company had $19.9 million, or 8.0% of the total commercial real estate portfolio and $12.4 million, or 10.4% of the total multifamily loans in these rollover type of loans. At December 31, 2014 and December 31, 2013, $3.0 million and $1.8 million, respectively, of commercial real estate loans were not included in the construction/land development category because the Company classifies raw land or buildable lots when it does not intend to finance the construction as commercial real estate land loans. | |||||||||||||||||||||||||||
Accrued interest receivable consisted of the following at December 31, 2014, and 2013: | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Loans receivable | $ | 2,879 | $ | 3,250 | ||||||||||||||||||||||||
Investments | 382 | 446 | ||||||||||||||||||||||||||
Interest-earning deposits | 4 | 2 | ||||||||||||||||||||||||||
$ | 3,265 | $ | 3,698 | |||||||||||||||||||||||||
Financing Receivables, Summary of Loans By Maturity and Interest Rate Type | The Company originates both adjustable and fixed interest rate loans. The composition of loans receivable at December 31, 2014, and 2013, was as follows: | |||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
Fixed Rate | Adjustable Rate | |||||||||||||||||||||||||||
Term to Maturity | Principal Balance | Term to Rate Adjustment | Principal Balance | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Due within one year | $ | 39,649 | Due within one year | $ | 98,830 | |||||||||||||||||||||||
After one year through three years | 70,416 | After one year through three years | 27,314 | |||||||||||||||||||||||||
After three years through five years | 128,142 | After three years through five years | 32,842 | |||||||||||||||||||||||||
After five years through ten years | 117,199 | After five years through ten years | 59,682 | |||||||||||||||||||||||||
Thereafter | 129,560 | Thereafter | 758 | |||||||||||||||||||||||||
$ | 484,966 | $ | 219,426 | |||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
Fixed Rate | Adjustable Rate | |||||||||||||||||||||||||||
Term to Maturity | Principal Balance | Term to Rate Adjustment | Principal Balance | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Due within one year | $ | 38,226 | Due within one year | $ | 81,459 | |||||||||||||||||||||||
After one year through three years | 50,788 | After one year through three years | 33,802 | |||||||||||||||||||||||||
After three years through five years | 135,933 | After three years through five years | 18,485 | |||||||||||||||||||||||||
After five years through ten years | 150,272 | After five years through ten years | 46,134 | |||||||||||||||||||||||||
Thereafter | 131,532 | Thereafter | 2,305 | |||||||||||||||||||||||||
$ | 506,751 | $ | 182,185 | |||||||||||||||||||||||||
Schedule of Allowance for Loan and Lease Losses, Roll Forward | The following tables summarize changes in the ALLL and loan portfolio by type of loan and reserve method for the periods indicated. | |||||||||||||||||||||||||||
At or For the Year Ended December 31, 2014 | ||||||||||||||||||||||||||||
One-to-Four | Multifamily | Commercial | Construction/ | Business | Consumer | Total | ||||||||||||||||||||||
Family | Real Estate | Land | ||||||||||||||||||||||||||
Residential | Development | |||||||||||||||||||||||||||
ALLL: | (In thousands) | |||||||||||||||||||||||||||
Beginning balance | $ | 5,141 | $ | 1,377 | $ | 5,881 | $ | 399 | $ | 14 | $ | 182 | $ | 12,994 | ||||||||||||||
Charge-offs | (78 | ) | — | (311 | ) | (223 | ) | — | (30 | ) | (642 | ) | ||||||||||||||||
Recoveries | 50 | — | 174 | — | 10 | 5 | 239 | |||||||||||||||||||||
(Recapture) provision | (1,419 | ) | 269 | (1,147 | ) | 179 | 23 | (5 | ) | (2,100 | ) | |||||||||||||||||
Ending balance | $ | 3,694 | $ | 1,646 | $ | 4,597 | $ | 355 | $ | 47 | $ | 152 | $ | 10,491 | ||||||||||||||
General reserve | $ | 2,894 | $ | 1,619 | $ | 4,268 | $ | 355 | $ | 47 | $ | 93 | $ | 9,276 | ||||||||||||||
Specific reserve | $ | 800 | $ | 27 | $ | 329 | $ | — | $ | — | $ | 59 | $ | 1,215 | ||||||||||||||
Loans: (1) | ||||||||||||||||||||||||||||
Total Loans | $ | 273,565 | $ | 120,271 | $ | 247,968 | $ | 24,316 | $ | 3,783 | $ | 7,130 | $ | 677,033 | ||||||||||||||
General reserve (2) | $ | 229,827 | $ | 118,099 | $ | 238,416 | $ | 24,316 | $ | 3,783 | $ | 6,933 | $ | 621,374 | ||||||||||||||
Specific reserve (3) | $ | 43,738 | $ | 2,172 | $ | 9,552 | $ | — | $ | — | $ | 197 | $ | 55,659 | ||||||||||||||
____________ | ||||||||||||||||||||||||||||
(1) Net of LIP. | ||||||||||||||||||||||||||||
(2) Loans collectively evaluated for impairment. | ||||||||||||||||||||||||||||
(3) Loans individually evaluated for impairment. | ||||||||||||||||||||||||||||
At or For the Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
One-to-Four Family Residential | Multifamily | Commercial | Construction/ | Business | Consumer | Total | ||||||||||||||||||||||
Real Estate | Land | |||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||
ALLL: | (In thousands) | |||||||||||||||||||||||||||
Beginning balance | $ | 5,562 | $ | 1,139 | $ | 5,207 | $ | 437 | $ | 30 | $ | 167 | $ | 12,542 | ||||||||||||||
Charge-offs | (456 | ) | (346 | ) | (98 | ) | (582 | ) | (13 | ) | (101 | ) | (1,596 | ) | ||||||||||||||
Recoveries | 1,303 | 237 | 7 | 455 | — | 146 | 2,148 | |||||||||||||||||||||
(Recapture) provision | (1,268 | ) | 347 | 765 | 89 | (3 | ) | (30 | ) | (100 | ) | |||||||||||||||||
Ending balance | $ | 5,141 | $ | 1,377 | $ | 5,881 | $ | 399 | $ | 14 | $ | 182 | $ | 12,994 | ||||||||||||||
General reserve | $ | 3,601 | $ | 1,292 | $ | 5,326 | $ | 399 | $ | 14 | $ | 182 | $ | 10,814 | ||||||||||||||
Specific reserve | $ | 1,540 | $ | 85 | $ | 555 | $ | — | $ | — | $ | — | $ | 2,180 | ||||||||||||||
Loans: (1) | ||||||||||||||||||||||||||||
Total Loans | $ | 280,674 | $ | 117,181 | $ | 247,402 | $ | 23,127 | $ | 1,142 | $ | 9,201 | $ | 678,727 | ||||||||||||||
General reserve (2) | $ | 232,526 | $ | 114,740 | $ | 234,093 | $ | 22,904 | $ | 1,142 | $ | 9,157 | $ | 614,562 | ||||||||||||||
Specific reserve (3) | $ | 48,148 | $ | 2,441 | $ | 13,309 | $ | 223 | $ | — | $ | 44 | $ | 64,165 | ||||||||||||||
_____________ | ||||||||||||||||||||||||||||
(1) Net of LIP. | ||||||||||||||||||||||||||||
(2) Loans collectively evaluated for impairment. | ||||||||||||||||||||||||||||
(3) Loans individually evaluated for impairment. | ||||||||||||||||||||||||||||
Financing Receivables, Aging of loans | The following tables represent a summary at December 31, 2014, and 2013, of the aging of loans by type: | |||||||||||||||||||||||||||
Loans Past Due as of December 31, 2014 | ||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days and Greater | Total | Current | Total | |||||||||||||||||||||||
Loans (1) (2) | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | $ | 666 | $ | 575 | $ | 666 | $ | 1,907 | $ | 159,106 | $ | 161,013 | ||||||||||||||||
Non-owner occupied | — | — | 164 | 164 | 112,388 | 112,552 | ||||||||||||||||||||||
Multifamily | 1,965 | — | — | 1,965 | 118,306 | 120,271 | ||||||||||||||||||||||
Commercial real estate | — | 325 | 11 | 336 | 247,632 | 247,968 | ||||||||||||||||||||||
Construction/land development | — | — | — | — | 24,316 | 24,316 | ||||||||||||||||||||||
Total real estate | 2,631 | 900 | 841 | 4,372 | 661,748 | 666,120 | ||||||||||||||||||||||
Business | — | — | — | — | 3,783 | 3,783 | ||||||||||||||||||||||
Consumer | — | 75 | — | 75 | 7,055 | 7,130 | ||||||||||||||||||||||
Total | $ | 2,631 | $ | 975 | $ | 841 | $ | 4,447 | $ | 672,586 | $ | 677,033 | ||||||||||||||||
_________________________ | ||||||||||||||||||||||||||||
(1) There were no loans 90 days past due and still accruing interest at December 31, 2014. | ||||||||||||||||||||||||||||
(2) Net of LIP. | ||||||||||||||||||||||||||||
Loans Past Due as of December 31, 2013 | ||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days and Greater | Total | Current | Total | |||||||||||||||||||||||
Loans (1) (2) | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | $ | 923 | $ | 337 | $ | 575 | $ | 1,835 | $ | 156,962 | $ | 158,797 | ||||||||||||||||
Non-owner occupied | — | — | 692 | 692 | 121,185 | 121,877 | ||||||||||||||||||||||
Multifamily | — | — | — | — | 117,181 | 117,181 | ||||||||||||||||||||||
Commercial real estate | 331 | — | 1,089 | 1,420 | 245,982 | 247,402 | ||||||||||||||||||||||
Construction/land development | — | — | 223 | 223 | 22,904 | 23,127 | ||||||||||||||||||||||
Total real estate | 1,254 | 337 | 2,579 | 4,170 | 664,214 | 668,384 | ||||||||||||||||||||||
Business | — | — | — | — | 1,142 | 1,142 | ||||||||||||||||||||||
Consumer | 103 | 34 | — | 137 | 9,064 | 9,201 | ||||||||||||||||||||||
Total | $ | 1,357 | $ | 371 | $ | 2,579 | $ | 4,307 | $ | 674,420 | $ | 678,727 | ||||||||||||||||
________________________ | ||||||||||||||||||||||||||||
(1) There were no loans 90 days past due and still accruing interest at December 31, 2013. | ||||||||||||||||||||||||||||
(2) Net of LIP. | ||||||||||||||||||||||||||||
Schedule of non-accrual loans | The following table is a summary of nonaccrual loans at December 31, 2014, and 2013 by type of loan: | |||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
One-to-four family residential | $ | 830 | $ | 2,297 | ||||||||||||||||||||||||
Multifamily | — | 233 | ||||||||||||||||||||||||||
Commercial real estate | 434 | 1,198 | ||||||||||||||||||||||||||
Construction/land development | — | 223 | ||||||||||||||||||||||||||
Consumer | 75 | 44 | ||||||||||||||||||||||||||
Total nonaccrual loans | $ | 1,339 | $ | 3,995 | ||||||||||||||||||||||||
Financing Receivables, Summary of loans by type and payment activity | The following tables summarize the loan portfolio at December 31, 2014, and 2013, by type and payment activity: | |||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
One-to-Four | Multifamily | Commercial | Construction / | Business | Consumer | Total (3) | ||||||||||||||||||||||
Family | Real Estate | Land | ||||||||||||||||||||||||||
Residential | Development | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Performing (1) | $ | 272,735 | $ | 120,271 | $ | 247,534 | $ | 24,316 | $ | 3,783 | $ | 7,055 | $ | 675,694 | ||||||||||||||
Nonperforming (2) | 830 | — | 434 | — | — | 75 | 1,339 | |||||||||||||||||||||
Total | $ | 273,565 | $ | 120,271 | $ | 247,968 | $ | 24,316 | $ | 3,783 | $ | 7,130 | $ | 677,033 | ||||||||||||||
____________ | ||||||||||||||||||||||||||||
(1) | There were $160.3 million of owner-occupied one-to-four family residential loans and $112.4 million of non-owner occupied one-to-four family residential loans classified as performing. | |||||||||||||||||||||||||||
(2) | There were $666,000 of owner-occupied one-to-four family residential loans and $164,000 of non-owner occupied one-to-four family residential loans classified as nonperforming. | |||||||||||||||||||||||||||
(3) | Net of LIP. | |||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
One-to-Four | Multifamily | Commercial | Construction/ | Business | Consumer | Total (3) | ||||||||||||||||||||||
Family | Real Estate | Land | ||||||||||||||||||||||||||
Residential | Development | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Performing (1) | $ | 278,377 | $ | 116,948 | $ | 246,204 | $ | 22,904 | $ | 1,142 | $ | 9,157 | $ | 674,732 | ||||||||||||||
Nonperforming (2) | 2,297 | 233 | 1,198 | 223 | — | 44 | 3,995 | |||||||||||||||||||||
Total | $ | 280,674 | $ | 117,181 | $ | 247,402 | $ | 23,127 | $ | 1,142 | $ | 9,201 | $ | 678,727 | ||||||||||||||
_____________ | ||||||||||||||||||||||||||||
(1) There were $157.3 million of owner-occupied one-to-four family residential loans and $121.1 million of non-owner occupied one-to-four family residential loans classified as performing. | ||||||||||||||||||||||||||||
(2) There were $1.5 million of owner-occupied one-to-four family residential loans and $817,000 of non-owner occupied one-to-four family residential loans classified as nonperforming. | ||||||||||||||||||||||||||||
(3) Net of LIP. | ||||||||||||||||||||||||||||
Schedule of Impaired Financing Receivables, Average Recorded Investment and Interest Income | The following tables present a summary of loans individually evaluated for impairment at December 31, 2014, and 2013, by the type of loan: | |||||||||||||||||||||||||||
At or For the Year Ended December 31, 2014 | ||||||||||||||||||||||||||||
Recorded Investment (1) | Unpaid Principal Balance (2) | Related Allowance | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Loans with no related allowance: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | $ | 3,308 | $ | 3,661 | $ | — | ||||||||||||||||||||||
Non-owner occupied | 29,224 | 29,266 | — | |||||||||||||||||||||||||
Multifamily | — | — | — | |||||||||||||||||||||||||
Commercial real estate | 4,553 | 4,851 | — | |||||||||||||||||||||||||
Construction/land development | — | — | — | |||||||||||||||||||||||||
Consumer | 118 | 153 | — | |||||||||||||||||||||||||
Total | 37,203 | 37,931 | — | |||||||||||||||||||||||||
Loans with an allowance: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | 2,554 | 2,624 | 121 | |||||||||||||||||||||||||
Non-owner occupied | 8,652 | 8,704 | 679 | |||||||||||||||||||||||||
Multifamily | 2,172 | 2,172 | 27 | |||||||||||||||||||||||||
Commercial real estate | 4,999 | 4,999 | 329 | |||||||||||||||||||||||||
Consumer | 79 | 79 | 59 | |||||||||||||||||||||||||
Total | 18,456 | 18,578 | 1,215 | |||||||||||||||||||||||||
Total impaired loans: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | 5,862 | 6,285 | 121 | |||||||||||||||||||||||||
Non-owner occupied | 37,876 | 37,970 | 679 | |||||||||||||||||||||||||
Multifamily | 2,172 | 2,172 | 27 | |||||||||||||||||||||||||
Commercial real estate | 9,552 | 9,850 | 329 | |||||||||||||||||||||||||
Construction/land development | — | — | — | |||||||||||||||||||||||||
Consumer | 197 | 232 | 59 | |||||||||||||||||||||||||
Total | $ | 55,659 | $ | 56,509 | $ | 1,215 | ||||||||||||||||||||||
_________________ | ||||||||||||||||||||||||||||
(1) Represents the loan balance less charge-offs. | ||||||||||||||||||||||||||||
(2) Contractual loan principal balance. | ||||||||||||||||||||||||||||
At or For the Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
Recorded Investment (1) | Unpaid Principal | Related Allowance | ||||||||||||||||||||||||||
Balance (2) | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Loans with no related allowance: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | $ | 3,878 | $ | 4,281 | $ | — | ||||||||||||||||||||||
Non-owner occupied | 28,782 | 28,854 | — | |||||||||||||||||||||||||
Multifamily | 233 | 264 | — | |||||||||||||||||||||||||
Commercial real estate | 6,224 | 6,511 | — | |||||||||||||||||||||||||
Construction/land development | 223 | 4,812 | — | |||||||||||||||||||||||||
Consumer | 44 | 70 | — | |||||||||||||||||||||||||
Total | 39,384 | 44,792 | — | |||||||||||||||||||||||||
Loans with an allowance: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | 3,191 | 3,238 | 263 | |||||||||||||||||||||||||
Non-owner occupied | 12,297 | 12,352 | 1,277 | |||||||||||||||||||||||||
Multifamily | 2,208 | 2,208 | 85 | |||||||||||||||||||||||||
Commercial real estate | 7,085 | 7,085 | 555 | |||||||||||||||||||||||||
Total | 24,781 | 24,883 | 2,180 | |||||||||||||||||||||||||
Total impaired loans: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | 7,069 | 7,519 | 263 | |||||||||||||||||||||||||
Non-owner occupied | 41,079 | 41,206 | 1,277 | |||||||||||||||||||||||||
Multifamily | 2,441 | 2,472 | 85 | |||||||||||||||||||||||||
Commercial real estate | 13,309 | 13,596 | 555 | |||||||||||||||||||||||||
Construction/land development | 223 | 4,812 | — | |||||||||||||||||||||||||
Consumer | 44 | 70 | — | |||||||||||||||||||||||||
Total | $ | 64,165 | $ | 69,675 | $ | 2,180 | ||||||||||||||||||||||
_____________ | ||||||||||||||||||||||||||||
(1) Represents the loan balance less charge-offs. | ||||||||||||||||||||||||||||
(2) Contractual loan principal balance. | ||||||||||||||||||||||||||||
The following table presents a summary of recorded investment in impaired loans, and interest income recognized on impaired loans at December 31, 2014, 2013, and 2012 by the type of loan: | ||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Loans with no related allowance: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | $ | 3,302 | $ | 158 | $ | 4,773 | $ | 146 | $ | 6,997 | $ | 120 | ||||||||||||||||
Non-owner occupied | 29,105 | 1,762 | 29,277 | 1,697 | 36,216 | 2,039 | ||||||||||||||||||||||
Multifamily | 113 | — | 1,143 | — | 4,659 | 254 | ||||||||||||||||||||||
Commercial real estate | 3,971 | 291 | 7,065 | 344 | 10,742 | 562 | ||||||||||||||||||||||
Construction/land development | — | — | 3,417 | — | 7,621 | — | ||||||||||||||||||||||
Consumer | 81 | 4 | 539 | — | 354 | 21 | ||||||||||||||||||||||
Total | 36,572 | 2,215 | 46,214 | 2,187 | 66,589 | 2,996 | ||||||||||||||||||||||
Loans with an allowance: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | 2,975 | 124 | 4,249 | 169 | 4,944 | 284 | ||||||||||||||||||||||
Non-owner occupied | 10,395 | 500 | 14,545 | 623 | 11,579 | 694 | ||||||||||||||||||||||
Multifamily | 2,187 | 147 | 1,414 | 138 | — | — | ||||||||||||||||||||||
Commercial real estate | 6,532 | 267 | 7,817 | 356 | 5,459 | 455 | ||||||||||||||||||||||
Consumer | 20 | 3 | — | — | — | — | ||||||||||||||||||||||
Total | 22,109 | 1,041 | 28,025 | 1,286 | 21,982 | 1,433 | ||||||||||||||||||||||
Total impaired loans: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Owner occupied | 6,277 | 282 | 9,022 | 315 | 11,941 | 404 | ||||||||||||||||||||||
Non-owner occupied | 39,500 | 2,262 | 43,822 | 2,320 | 47,795 | 2,733 | ||||||||||||||||||||||
Multifamily | 2,300 | 147 | 2,557 | 138 | 4,659 | 254 | ||||||||||||||||||||||
Commercial real estate | 10,503 | 558 | 14,882 | 700 | 16,201 | 1,017 | ||||||||||||||||||||||
Construction/land development | — | — | 3,417 | — | 7,621 | — | ||||||||||||||||||||||
Consumer | 101 | 7 | 539 | — | 354 | 21 | ||||||||||||||||||||||
Total | $ | 58,681 | $ | 3,256 | $ | 74,239 | $ | 3,473 | $ | 88,571 | $ | 4,429 | ||||||||||||||||
Schedule of Non-performing assets and troubled debt restructured loans | The following is a summary of information pertaining to nonperforming assets and TDRs: | |||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Nonperforming assets: | ||||||||||||||||||||||||||||
Nonaccrual loans | $ | 1,339 | $ | 3,027 | ||||||||||||||||||||||||
Nonaccrual TDRs | — | 968 | ||||||||||||||||||||||||||
Total nonperforming loans | 1,339 | 3,995 | ||||||||||||||||||||||||||
OREO | 9,283 | 11,465 | ||||||||||||||||||||||||||
Total nonperforming assets | $ | 10,622 | $ | 15,460 | ||||||||||||||||||||||||
Performing TDRs | $ | 54,241 | $ | 60,170 | ||||||||||||||||||||||||
Nonaccrual TDRs | — | 968 | ||||||||||||||||||||||||||
Total TDRs | $ | 54,241 | $ | 61,138 | ||||||||||||||||||||||||
Troubled Debt Restructurings on Financing Receivables | The following table presents for the periods indicated TDRs and their recorded investment prior to the modification and after the modification: | |||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Number | Pre-Modification Outstanding | Post-Modification Outstanding | Number | Pre-Modification Outstanding | Post-Modification Outstanding | |||||||||||||||||||||||
of Loans | Recorded | Recorded | of Loans | Recorded | Recorded | |||||||||||||||||||||||
Investment | Investment | Investment | Investment | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
TDRs that occurred during the period: | ||||||||||||||||||||||||||||
One-to-four family residential: | ||||||||||||||||||||||||||||
Interest-only payments with no interest rate concession | 12 | $ | 2,522 | $ | 2,522 | 2 | $ | 682 | $ | 683 | ||||||||||||||||||
Principal and interest with interest rate concession | 6 | 1,174 | 1,174 | 2 | 1,620 | 1,620 | ||||||||||||||||||||||
Principal and interest reamortized with no interest rate | ||||||||||||||||||||||||||||
concession | — | — | — | 1 | 261 | 260 | ||||||||||||||||||||||
Advancement of maturity date | 9 | 1,722 | 1,722 | 3 | 480 | 473 | ||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||
Principal and interest with interest rate concession | — | — | — | — | — | — | ||||||||||||||||||||||
Principal and interest reamortized with no interest rate | — | — | — | 1 | 335 | 331 | ||||||||||||||||||||||
concession | ||||||||||||||||||||||||||||
Advancement of maturity date | — | — | — | 1 | 437 | 432 | ||||||||||||||||||||||
Interest-only payments with interest rate concession | 2 | 3,470 | 3,470 | 2 | 3,484 | 3,482 | ||||||||||||||||||||||
Total | 29 | $ | 8,888 | $ | 8,888 | 12 | $ | 7,299 | $ | 7,281 | ||||||||||||||||||
Trouble Debt Restructurings on Financing Receivables, TDRs that subsequently defaulted | The following is a summary of loans that defaulted in 2013 and had been modified as TDRs within the previous 12 months of December 31, 2013: | |||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Types of Modifications | Types of Modifications | |||||||||||||||||||||||||||
Number of | No Interest Rate Concession Modified Principal & Interest Payment | Advancement of Maturity Date | Number of | No Interest Rate Concession Modified Principal & Interest Payment | Advancement of Maturity Date | |||||||||||||||||||||||
Loans | Loans | |||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
TDRs that Subsequently Defaulted: | ||||||||||||||||||||||||||||
One-to-four family residential | — | $ | — | $ | — | — | $ | — | $ | — | ||||||||||||||||||
Commercial | — | — | — | 2 | 331 | 432 | ||||||||||||||||||||||
Total | — | $ | — | $ | — | 2 | $ | 331 | $ | 432 | ||||||||||||||||||
TDRs that default after they have been modified are typically evaluated individually on a collateral basis. Any additional TDR charge-offs due to further impairment reduces the ALLL. | ||||||||||||||||||||||||||||
Financing Receivables, Summary of loans by type and risk category | The following tables represent a summary of loans at December 31, 2014, and 2013 by type and risk category: | |||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
One-to-Four | Multifamily | Commercial | Construction/ | Business | Consumer | Total (1) | ||||||||||||||||||||||
Family | Real Estate | Land | ||||||||||||||||||||||||||
Residential | Development | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||
Pass | $ | 263,094 | $ | 116,891 | $ | 235,841 | $ | 24,316 | $ | 3,783 | $ | 6,833 | $ | 650,758 | ||||||||||||||
Special mention | 4,157 | 1,416 | 10,529 | — | — | — | 16,102 | |||||||||||||||||||||
Substandard | 6,314 | 1,964 | 1,598 | — | — | 297 | 10,173 | |||||||||||||||||||||
Total | $ | 273,565 | $ | 120,271 | $ | 247,968 | $ | 24,316 | $ | 3,783 | $ | 7,130 | $ | 677,033 | ||||||||||||||
_____________ | ||||||||||||||||||||||||||||
(1) Net of LIP. | ||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
One-to-Four | Multifamily | Commercial | Construction / | Business | Consumer | Total (1) | ||||||||||||||||||||||
Family | Real Estate | Land | ||||||||||||||||||||||||||
Residential | Development | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Risk Rating: | ||||||||||||||||||||||||||||
Pass | $ | 265,511 | $ | 114,525 | $ | 229,149 | $ | 22,904 | $ | 1,142 | $ | 8,934 | $ | 642,165 | ||||||||||||||
Special mention | 5,825 | 1,203 | 15,134 | — | — | 1 | 22,163 | |||||||||||||||||||||
Substandard | 9,338 | 1,453 | 3,119 | 223 | — | 266 | 14,399 | |||||||||||||||||||||
Total | $ | 280,674 | $ | 117,181 | $ | 247,402 | $ | 23,127 | $ | 1,142 | $ | 9,201 | $ | 678,727 | ||||||||||||||
______________ | ||||||||||||||||||||||||||||
(1) Net of LIP. | ||||||||||||||||||||||||||||
Schedule of Loans to Related Parties | Certain of the Bank’s executive officers and directors have loans with the Bank. The aggregate dollar amount of these loans outstanding to related parties is summarized as follows: | |||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Balance at beginning of year | $ | 548 | $ | 498 | $ | 545 | ||||||||||||||||||||||
Additions | — | 353 | — | |||||||||||||||||||||||||
Repayments | (410 | ) | (303 | ) | (47 | ) | ||||||||||||||||||||||
Balance at end of year | $ | 138 | $ | 548 | $ | 498 | ||||||||||||||||||||||
Other_Real_Estate_Owned_Tables
Other Real Estate Owned (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Other Real Estate [Abstract] | ||||||||||||
Other Real Estate, Roll Forward | The following table is a summary of OREO activity for the periods indicated: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Balance at beginning of year | $ | 11,465 | $ | 17,347 | $ | 26,044 | ||||||
Loans transferred to OREO | 1,823 | 6,485 | 12,124 | |||||||||
Capitalized (reimbursed) improvements | 120 | 75 | (16 | ) | ||||||||
Dispositions of OREO | (3,732 | ) | (12,039 | ) | (18,759 | ) | ||||||
Market value adjustments | (393 | ) | (403 | ) | (2,046 | ) | ||||||
Balance at end of year | $ | 9,283 | $ | 11,465 | $ | 17,347 | ||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Premises and Equipment | Premises and equipment consisted of the following at December 31, 2014, and 2013: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Land | $ | 1,914 | $ | 1,914 | ||||
Buildings and improvements | 17,820 | 17,763 | ||||||
Furniture, fixtures and equipment | 4,368 | 4,336 | ||||||
Construction in process | 7 | 2 | ||||||
24,109 | 24,015 | |||||||
Less accumulated depreciation and amortization | (7,375 | ) | (6,724 | ) | ||||
$ | 16,734 | $ | 17,291 | |||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2012 | ||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The tables below present the balances of assets and liabilities measured at fair value on a recurring basis (there were no transfers between Level 1, Level 2 and Level 3 recurring measurements during the periods presented): | ||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||
Available-for-sale investments: | |||||||||||||||||||||||||||||||||||||
Mortgage-backed investments: | |||||||||||||||||||||||||||||||||||||
Fannie Mae | $ | 40,916 | $ | — | $ | 40,916 | $ | — | |||||||||||||||||||||||||||||
Freddie Mac | 21,946 | — | 21,946 | — | |||||||||||||||||||||||||||||||||
Ginnie Mae | 26,013 | — | 26,013 | — | |||||||||||||||||||||||||||||||||
Municipal bonds | 644 | — | 644 | — | |||||||||||||||||||||||||||||||||
U.S. Government agencies | 16,816 | — | 16,816 | — | |||||||||||||||||||||||||||||||||
Corporate bonds | 14,039 | 14,039 | |||||||||||||||||||||||||||||||||||
$ | 120,374 | $ | — | $ | 120,374 | $ | — | ||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||
Available-for-sale investments: | |||||||||||||||||||||||||||||||||||||
Mortgage-backed investments: | |||||||||||||||||||||||||||||||||||||
Fannie Mae | $ | 46,232 | $ | — | $ | 46,232 | $ | — | |||||||||||||||||||||||||||||
Freddie Mac | 25,856 | — | 25,856 | — | |||||||||||||||||||||||||||||||||
Ginnie Mae | 33,873 | — | 33,873 | — | |||||||||||||||||||||||||||||||||
Municipal bonds | 1,850 | — | 1,850 | — | |||||||||||||||||||||||||||||||||
U.S. Government agencies | 22,704 | — | 22,704 | — | |||||||||||||||||||||||||||||||||
Corporate bonds | 13,849 | 13,849 | |||||||||||||||||||||||||||||||||||
$ | 144,364 | $ | — | $ | 144,364 | $ | — | ||||||||||||||||||||||||||||||
Schedule of balances of assets and liabilities, measured at fair value on a non-recurring basis | The tables below present the balances of assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2014, and 2013. | ||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Fair Value | Quoted Prices in | Significant | Significant | ||||||||||||||||||||||||||||||||||
Measurements | Active Markets | Other | Unobservable | ||||||||||||||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||||||||||||||
Assets (Level 1) | Inputs (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||
Impaired loans (included in loans receivable, net)(1) | $ | 54,444 | $ | — | $ | — | $ | 54,444 | |||||||||||||||||||||||||||||
OREO | 9,283 | — | — | 9,283 | |||||||||||||||||||||||||||||||||
Total | $ | 63,727 | $ | — | $ | — | $ | 63,727 | |||||||||||||||||||||||||||||
_______________ | |||||||||||||||||||||||||||||||||||||
(1) Total value of impaired loans is net of $1.2 million of specific reserves on performing TDRs. | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Fair Value | Quoted Prices in | Significant | Significant | ||||||||||||||||||||||||||||||||||
Measurements | Active Markets | Other | Unobservable | ||||||||||||||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||||||||||||||
Assets (Level 1) | Inputs (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||
Impaired loans (included in loans receivable, net)(1) | $ | 61,985 | $ | — | $ | — | $ | 61,985 | |||||||||||||||||||||||||||||
OREO (2) | 11,465 | — | — | 11,465 | |||||||||||||||||||||||||||||||||
Total | $ | 73,450 | $ | — | $ | — | $ | 73,450 | |||||||||||||||||||||||||||||
________________ | |||||||||||||||||||||||||||||||||||||
(1) Total value of impaired loans is net of $2.2 million of specific reserves on performing TDRs. | |||||||||||||||||||||||||||||||||||||
Schedule of quantitative information about Level 3 Fair Value Measurements on a nonrecurring basis | The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis. | ||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range (Weighted Average) | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||
Impaired Loans | $ | 54,365 | Market approach | Appraised value discounted by market or | 0.0% - 45.8% (2.2%) | ||||||||||||||||||||||||||||||||
borrower conditions | |||||||||||||||||||||||||||||||||||||
OREO | $ | 9,283 | Market approach | Appraised value less selling costs | 0.0% - 19.4% (3.3%) | ||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range (Weighted Average) | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||
Impaired Loans | $ | 61,985 | Market approach | Appraised value discounted by market or | 0.0% - 72.3% (2.7%) | ||||||||||||||||||||||||||||||||
borrower conditions | |||||||||||||||||||||||||||||||||||||
OREO | $ | 11,465 | Market approach | Appraised value less selling costs | 0.0% - 26.4% (4.9%) | ||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | The carrying amounts and estimated fair values of financial instruments at December 31, 2014, and 2013, were as follows: | ||||||||||||||||||||||||||||||||||||
31-Dec-14 | Fair Value Measurements Using: | ||||||||||||||||||||||||||||||||||||
Carrying Value | Estimated Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||||||||||
Cash on hand and in banks | $ | 5,920 | $ | 5,920 | $ | 5,920 | $ | — | $ | — | |||||||||||||||||||||||||||
Interest-earning deposits | 98,129 | 98,129 | 98,129 | — | — | ||||||||||||||||||||||||||||||||
Investments available-for-sale | 120,374 | 120,374 | — | 120,374 | — | ||||||||||||||||||||||||||||||||
Loans receivable, net | 663,938 | 678,676 | — | — | 678,676 | ||||||||||||||||||||||||||||||||
FHLB stock | 6,745 | 6,745 | — | 6,745 | — | ||||||||||||||||||||||||||||||||
Accrued interest receivable | 3,265 | 3,265 | — | 3,265 | — | ||||||||||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||||||||||
Deposits | 201,539 | 201,539 | 201,539 | — | — | ||||||||||||||||||||||||||||||||
Certificates of deposit, retail | 358,159 | 359,049 | — | 359,049 | — | ||||||||||||||||||||||||||||||||
Certificates of deposit, brokered | 54,429 | 55,229 | 55,229 | ||||||||||||||||||||||||||||||||||
Advances from the FHLB | 135,500 | 135,392 | — | 135,392 | — | ||||||||||||||||||||||||||||||||
Accrued interest payable | 142 | 142 | — | 142 | — | ||||||||||||||||||||||||||||||||
31-Dec-13 | Fair Value Measurements Using: | ||||||||||||||||||||||||||||||||||||
Carrying Value | Estimated Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||||||||||
Cash on hand and in banks | $ | 6,074 | $ | 6,074 | $ | 6,074 | $ | — | $ | — | |||||||||||||||||||||||||||
Interest-earning deposits | 49,501 | 49,501 | 49,501 | — | — | ||||||||||||||||||||||||||||||||
Investments available-for-sale | 144,364 | 144,364 | — | 144,364 | — | ||||||||||||||||||||||||||||||||
Loans receivable, net | 663,153 | 680,622 | — | — | 680,622 | ||||||||||||||||||||||||||||||||
FHLB stock | 7,017 | 7,017 | — | 7,017 | — | ||||||||||||||||||||||||||||||||
Accrued interest receivable | 3,698 | 3,698 | — | 3,698 | — | ||||||||||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||||||||||
Deposits | 201,658 | 201,658 | 201,658 | — | — | ||||||||||||||||||||||||||||||||
Certificates of deposit | 410,407 | 413,417 | — | 413,417 | — | ||||||||||||||||||||||||||||||||
Advances from the FHLB | 119,000 | 118,610 | — | 118,610 | — | ||||||||||||||||||||||||||||||||
Accrued interest payable | 88 | 88 | — | 88 | — | ||||||||||||||||||||||||||||||||
Accrued_Interest_Receivable_Ta
Accrued Interest Receivable (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accrued Interest Receivable [Abstract] | ||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans receivable at December 31, 2014, and 2013 are summarized as follows: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
One-to-four family residential: | ||||||||
Permanent owner occupied | $ | 161,013 | $ | 158,797 | ||||
Permanent non-owner occupied | 112,180 | 121,877 | ||||||
Construction non-owner occupied | 500 | — | ||||||
273,693 | 280,674 | |||||||
Multifamily: | ||||||||
Permanent | 116,014 | 106,152 | ||||||
Construction | 4,450 | 12,360 | ||||||
120,464 | 118,512 | |||||||
Commercial real estate: | ||||||||
Permanent | 239,211 | 227,016 | ||||||
Construction | 6,100 | 19,905 | ||||||
Land | 2,956 | 1,831 | ||||||
248,267 | 248,752 | |||||||
Construction/land development: (1) | ||||||||
One-to-four family residential | 19,860 | 3,977 | ||||||
Multifamily | 17,902 | 12,491 | ||||||
Commercial | 4,300 | 6,726 | ||||||
Land development | 8,993 | 7,461 | ||||||
51,055 | 30,655 | |||||||
Business | 3,783 | 1,142 | ||||||
Consumer | 7,130 | 9,201 | ||||||
Total loans | 704,392 | 688,936 | ||||||
Less: | ||||||||
Loans in process ("LIP") | 27,359 | 10,209 | ||||||
Deferred loan fees, net | 2,604 | 2,580 | ||||||
ALLL | 10,491 | 12,994 | ||||||
Loans receivable, net | $ | 663,938 | $ | 663,153 | ||||
___________ | ||||||||
(1) | Excludes construction loans that will convert to permanent loans. The Company considers these loans to be "rollovers" in that one loan is originated for both the construction loan and permanent financing. These loans are classified according to the underlying collateral. At December 31, 2014, the Company had $6.1 million, or 2.5% of the total commercial real estate portfolio, $4.5 million, or 3.7% of the total multifamily loans, and $500,000 or 0.2% of the total one-to-four family residential in these "rollover" type of loans. At December 31, 2013, the Company had $19.9 million, or 8.0% of the total commercial real estate portfolio and $12.4 million, or 10.4% of the total multifamily loans in these rollover type of loans. At December 31, 2014 and December 31, 2013, $3.0 million and $1.8 million, respectively, of commercial real estate loans were not included in the construction/land development category because the Company classifies raw land or buildable lots when it does not intend to finance the construction as commercial real estate land loans. | |||||||
Accrued interest receivable consisted of the following at December 31, 2014, and 2013: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Loans receivable | $ | 2,879 | $ | 3,250 | ||||
Investments | 382 | 446 | ||||||
Interest-earning deposits | 4 | 2 | ||||||
$ | 3,265 | $ | 3,698 | |||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Deposits [Abstract] | ||||||||||||
Schedule of Deposit Liabilities | Deposit accounts consisted of the following at December 31, 2014, and 2013: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Noninterest-bearing | $ | 14,354 | $ | 10,619 | ||||||||
NOW | 20,752 | 25,471 | ||||||||||
Statement savings | 23,901 | 20,396 | ||||||||||
Money market | 142,532 | 145,172 | ||||||||||
Certificates of deposit, retail | 358,159 | 410,407 | ||||||||||
Certificates of deposit, brokered | 54,429 | — | ||||||||||
$ | 614,127 | $ | 612,065 | |||||||||
Maturities of Certificates of Deposit | At December 31, 2014, scheduled maturities of certificates of deposit were as follows: | |||||||||||
December 31, | Amount | |||||||||||
(In thousands) | ||||||||||||
2015 | $ | 184,116 | ||||||||||
2016 | 68,174 | |||||||||||
2017 | 57,323 | |||||||||||
2018 | 48,915 | |||||||||||
2019 | 47,324 | |||||||||||
thereafter | 6,736 | |||||||||||
$ | 412,588 | |||||||||||
Schedule of Interest Expense on Deposits | Interest expense on deposits for the periods indicated was as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
NOW | $ | 23 | $ | 30 | $ | 21 | ||||||
Statement savings | 30 | 31 | 36 | |||||||||
Money market | 311 | 291 | 466 | |||||||||
Certificates of deposit, retail | 4,388 | 6,442 | 9,668 | |||||||||
Certificates of deposit, brokered | 311 | — | — | |||||||||
$ | 5,063 | $ | 6,794 | $ | 10,191 | |||||||
Other_Borrowings_Tables
Other Borrowings (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Borrowings [Abstract] | ||||||||
Schedule of Federal Home Loan Bank Advances | Outstanding advances consisted of the following at December 31, 2014, and 2013: | |||||||
December 31, 2014 | ||||||||
Maturity Date | Principal Balance | Fixed Interest Rate | ||||||
(Dollars in thousands) | ||||||||
Oct-15 | $ | 10,000 | 0.71 | % | ||||
Mar-16 | 34,000 | 0.81 | ||||||
May-16 | 20,000 | 0.7 | ||||||
Oct-16 | 10,000 | 1.02 | ||||||
Nov-16 | 20,000 | 0.84 | ||||||
Apr-17 | 20,000 | 0.87 | ||||||
Nov-18 | 5,000 | 1.76 | ||||||
Jun-18 | $ | 6,500 | 1.52 | |||||
May-19 | 10,000 | 1.7 | ||||||
135,500 | ||||||||
December 31, 2013 | ||||||||
Maturity Date | Principal Balance | Fixed Interest Rate | ||||||
(Dollars in thousands) | ||||||||
Oct-15 | $ | 10,000 | 0.71 | % | ||||
Mar-16 | 34,000 | 0.81 | ||||||
May-16 | 20,000 | 0.7 | ||||||
Oct-16 | 10,000 | 1.02 | ||||||
Nov-16 | 20,000 | 0.84 | ||||||
Apr-17 | 20,000 | 0.87 | ||||||
Nov-18 | 5,000 | 1.76 | ||||||
$ | 119,000 | |||||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Multiemployer Plans [Line Items] | |||||||||||||||||
Schedule of Employee Stock Ownership Plan (ESOP) Disclosures | A summary of key transactions for the ESOP for the periods indicated follows: | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(In thousands) | |||||||||||||||||
ESOP contribution expense | $ | 1,216 | $ | 1,087 | $ | 860 | |||||||||||
Dividends on unallocated ESOP shares used to reduce ESOP contribution | 197 | 132 | — | ||||||||||||||
Shares held by the ESOP at December 31, 2014, and 2013, are as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(Dollars in thousands, except share data) | |||||||||||||||||
Allocated shares | 818,187 | 705,333 | |||||||||||||||
Unallocated shares | 874,613 | 987,467 | |||||||||||||||
Total ESOP shares | 1,692,800 | 1,692,800 | |||||||||||||||
Fair value of unallocated shares | $ | 10,530 | $ | 10,240 | |||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of options granted was determined using the following weighted-average assumptions as of the grant date for the periods indicated. | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Annual dividend yield | 1.86 | % | 1.35 | % | — | % | |||||||||||
Expected volatility | 37.27 | 34.05 | 29.95 | ||||||||||||||
Risk-free interest rate | 2.44 | 2.18 | 1.1 | ||||||||||||||
Expected term | 10.0 years | 8.1 years | 6.5 years | ||||||||||||||
Weighted-average grant date fair value per option granted | $ | 4.13 | $ | 3.7 | $ | 2.6 | |||||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | A summary of the Company’s stock option plan awards activity for the years ended December 31, 2014, 2013, and 2012, follows: | ||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | Weighted- | |||||||||||||
Average | Average | Intrinsic Value | Average | ||||||||||||||
Exercise Price | Remaining | Grant Date | |||||||||||||||
Contractual | Fair Value | ||||||||||||||||
Term in Years | |||||||||||||||||
Outstanding at December 31, 2013 | 1,203,535 | 9.49 | — | 1,103,186 | 2.11 | ||||||||||||
Granted | 95,000 | 10.78 | — | — | 4.13 | ||||||||||||
Exercised | (369,275 | ) | 9.78 | — | 316,763 | 1.92 | |||||||||||
Outstanding at December 31, 2014 | 929,260 | 9.51 | 5.3 | 2,351,328 | 2.4 | ||||||||||||
Expected to vest assuming a 3% forfeiture rate over | |||||||||||||||||
the vesting term | 921,670 | 9.51 | P5Y3M7D | 2,334,915 | 2.39 | ||||||||||||
Exercisable at December 31, 2014 | 676,260 | 9.37 | 4.04 | 1,804,248 | 1.98 | ||||||||||||
Schedule of Nonvested Restricted Stock Units Activity | A summary of changes in nonvested restricted stock awards for the period ended December 31, 2014, follows: | ||||||||||||||||
Nonvested Shares | Shares | Weighted-Average Grant Date Fair Value | |||||||||||||||
Nonvested at December 31, 2011 | 310,494 | $ | 9.66 | ||||||||||||||
Granted | 82,000 | 8.06 | |||||||||||||||
Vested | (143,647 | ) | 9.93 | ||||||||||||||
Forfeited | (4,000 | ) | 10.35 | ||||||||||||||
Nonvested at December 31, 2012 | 244,847 | 8.95 | |||||||||||||||
Granted | 25,000 | 10.88 | |||||||||||||||
Vested | (156,047 | ) | 9.72 | ||||||||||||||
Forfeited | (10,400 | ) | 9.12 | ||||||||||||||
Nonvested at December 31, 2013 | 103,400 | 8.24 | |||||||||||||||
Vested | (27,800 | ) | 7.64 | ||||||||||||||
Nonvested at December 31, 2014 | 75,600 | 8.47 | |||||||||||||||
Expected to vest assuming a 3% forfeiture rate over the vesting term | 73,332 | ||||||||||||||||
Multiemployer Plans, Pension | |||||||||||||||||
Multiemployer Plans [Line Items] | |||||||||||||||||
Schedule of Funded Status | The table below presents the funded status (market value of plan assets divided by funding target) of the plan as of July1: | ||||||||||||||||
2014 (1) | 2013 (1) | ||||||||||||||||
Source | Valuation Report | Valuation Report | |||||||||||||||
First Financial Northwest's Plan | 105.3 | % | 100.8 | % | |||||||||||||
_________________ | |||||||||||||||||
(1) Market value of plan assets reflects any contributions received through June 30, 2014, or 2013, respectively. | |||||||||||||||||
Schedule of Net Benefit Costs | Total contributions during the years ended December 31, 2014, 2013, and 2012 were: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Date Paid | Amount | Date Paid | Amount | Date Paid | Amount | ||||||||||||
9/25/14 | $ | 8,735 | 9/18/13 | $ | 26,328 | 10/29/12 | $ | 184,148 | |||||||||
11/28/14 | 539,932 | 12/5/13 | 43,979 | 12/4/12 | 1,143,404 | ||||||||||||
12/20/13 | 159,080 | ||||||||||||||||
Total | $ | 548,667 | Total | $ | 229,387 | Total | $ | 1,327,552 | |||||||||
Federal_Income_Taxes_Tables
Federal Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) for the periods indicated are as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Current | $ | 254 | $ | 199 | $ | 1 | ||||||
Deferred | 5,602 | (13,742 | ) | (1,000 | ) | |||||||
Total income tax expense (benefit) | $ | 5,856 | $ | (13,543 | ) | $ | (999 | ) | ||||
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the tax provision (benefit) based on the statutory corporate rate of 35% during the years ended December 31, 2014, 2013 and 2012 on pretax income is as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Income tax expense at statutory rate | $ | 5,790 | $ | 3,823 | $ | 600 | ||||||
Income tax effect of: | ||||||||||||
Tax exempt interest, net | (8 | ) | (21 | ) | (20 | ) | ||||||
Change in valuation allowance | 19 | (17,329 | ) | (6,347 | ) | |||||||
Expiration of FFNW Foundation donation | — | — | 4,778 | |||||||||
Other, net | 55 | (16 | ) | (10 | ) | |||||||
Total income tax expense (benefit) | $ | 5,856 | $ | (13,543 | ) | $ | (999 | ) | ||||
Schedule of Deferred Tax Assets and Liabilities | The net deferred tax asset, included in the accompanying consolidated balance sheets, consisted of the following at the dates indicated: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss carryforward | $ | 3,052 | $ | 7,441 | $ | 11,474 | ||||||
Charitable contributions | 2 | 27 | 25 | |||||||||
ALLL | 3,599 | 4,454 | 3,829 | |||||||||
Reserve for unfunded commitments | 128 | 121 | 87 | |||||||||
Deferred compensation | 688 | 698 | 689 | |||||||||
Net unrealized loss on investments available for sale | — | 463 | — | |||||||||
Alternative minimum tax credit carryforward | 1,939 | 1,685 | 1,485 | |||||||||
Employee benefit plans | 1,535 | 1,701 | 1,910 | |||||||||
Net capital loss on investments | 450 | 431 | 545 | |||||||||
OREO market value adjustments | 414 | 392 | 731 | |||||||||
OREO expenses | — | 122 | 202 | |||||||||
Accrued expenses | 165 | 163 | 142 | |||||||||
Deferred tax assets before valuation allowance | 11,972 | 17,698 | 21,119 | |||||||||
Valuation allowance | (450 | ) | (431 | ) | (16,851 | ) | ||||||
Total deferred tax assets | 11,522 | 17,267 | 4,268 | |||||||||
Deferred tax liabilities: | ||||||||||||
FHLB stock dividends | $ | 1,337 | $ | 1,337 | $ | 1,337 | ||||||
Loan origination fees and costs | 744 | 592 | 621 | |||||||||
Net unrealized gain on investments available for sale | 432 | — | 538 | |||||||||
Other, net | 671 | 503 | 772 | |||||||||
Total deferred tax liabilities | $ | 3,184 | $ | 2,432 | $ | 3,268 | ||||||
Deferred tax assets, net | $ | 8,338 | $ | 14,835 | $ | 1,000 | ||||||
Regulatory_Capital_Requirement1
Regulatory Capital Requirements (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ||||||||||||||||||||||
Schedule of Capital Amounts and Ratios | The Bank’s actual capital amounts and ratios at December 31, 2014, and 2013, are presented in the following table. | |||||||||||||||||||||
To be Well Capitalized | ||||||||||||||||||||||
For Capital Adequacy | Under Prompt Corrective | |||||||||||||||||||||
Actual | Purposes | Action Provisions | ||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
December 31, 2014: | ||||||||||||||||||||||
Total risk-based capital | $ | 116,053 | 19.56 | % | $ | 47,469 | 8 | % | $ | 59,336 | 10 | % | ||||||||||
Tier 1 risk-based capital | 108,596 | 18.3 | 23,734 | 4 | 35,602 | 6 | ||||||||||||||||
Tier 1 leverage capital | 108,596 | 11.79 | 36,849 | 4 | 46,061 | 5 | ||||||||||||||||
December 31, 2013: | ||||||||||||||||||||||
Total risk-based capital | $ | 174,732 | 28.44 | % | $ | 49,146 | 8 | % | $ | 61,433 | 10 | % | ||||||||||
Tier 1 risk-based capital | 166,988 | 27.18 | 24,573 | 4 | 36,860 | 6 | ||||||||||||||||
Tier 1 leverage capital | 166,988 | 18.6 | 35,903 | 4 | 44,879 | 5 | ||||||||||||||||
Parent_Company_Only_Financial_1
Parent Company Only Financial Statements (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Parent Company Only Financial Statements [Abstract] | ||||||||||||
Schedule of Condensed Balance Sheet | FIRST FINANCIAL NORTHWEST, INC. | |||||||||||
Condensed Balance Sheets | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 97 | $ | 84 | ||||||||
Interest-bearing deposits | 64,374 | 9,127 | ||||||||||
Investment in First Savings Bank | 108,239 | 164,968 | ||||||||||
Investment in First Financial Diversified, Inc. | 6,173 | 8,336 | ||||||||||
Receivable from subsidiaries | 1,589 | 1,536 | ||||||||||
Deferred tax assets, net | 1,124 | — | ||||||||||
Other assets | 51 | 619 | ||||||||||
Total assets | $ | 181,647 | $ | 184,670 | ||||||||
Liabilities and Stockholders' Equity | ||||||||||||
Liabilities: | ||||||||||||
Payable to subsidiaries | $ | 116 | $ | 66 | ||||||||
Other liabilities | 119 | 249 | ||||||||||
Total liabilities | 235 | 315 | ||||||||||
Stockholders' equity | 181,412 | 184,355 | ||||||||||
Total liabilities and stockholders' equity | $ | 181,647 | $ | 184,670 | ||||||||
Schedule of Condensed Income Statement | FIRST FINANCIAL NORTHWEST, INC. | |||||||||||
Condensed Income Statements | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Operating income: | ||||||||||||
Interest income: | ||||||||||||
Interest-bearing deposits with banks | $ | 26 | $ | 27 | $ | 58 | ||||||
Other income | 8 | 12 | ||||||||||
Total operating income | 34 | 39 | 58 | |||||||||
Operating expenses: | ||||||||||||
Other expenses | 1,475 | 1,756 | 1,793 | |||||||||
Total operating expenses | 1,475 | 1,756 | 1,793 | |||||||||
Loss before provision for federal income taxes and equity in undistributed | ||||||||||||
earnings of subsidiaries | (1,441 | ) | (1,717 | ) | (1,735 | ) | ||||||
Federal income tax benefit | (573 | ) | (619 | ) | — | |||||||
Loss before equity in undistributed loss of subsidiaries | (868 | ) | (1,098 | ) | (1,735 | ) | ||||||
Equity in undistributed earnings of subsidiaries | 11,555 | 25,563 | 4,448 | |||||||||
Net income | $ | 10,687 | $ | 24,465 | $ | 2,713 | ||||||
Schedule of Condensed Cash Flow Statement | FIRST FINANCIAL NORTHWEST, INC. | |||||||||||
Condensed Statements of Cash Flows | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 10,687 | $ | 24,465 | $ | 2,713 | ||||||
Adjustments to reconcile net income to net cash from operating | ||||||||||||
activities: | ||||||||||||
Equity in undistributed earnings of subsidiaries | (11,555 | ) | (25,563 | ) | (4,448 | ) | ||||||
Dividends received from subsidiary | 72,300 | 14,491 | — | |||||||||
ESOP, stock options, and restricted stock compensation | 13 | 48 | — | |||||||||
Change in deferred tax assets, net | (540 | ) | (584 | ) | — | |||||||
Change in receivables from subsidiaries | 8 | (12 | ) | — | ||||||||
Change in payables to subsidiaries | 50 | 66 | — | |||||||||
Change in other assets | (16 | ) | 119 | (113 | ) | |||||||
Changes in other liabilities | (130 | ) | (38 | ) | 260 | |||||||
Net cash provided (used) by operating activities | 70,817 | 12,992 | (1,588 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||
Investments in subsidiaries | — | 71 | — | |||||||||
ESOP loan repayment | 1,054 | 1,011 | 963 | |||||||||
Net cash provided in investing activities | 1,054 | 1,082 | 963 | |||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from exercise of stock options | 3,611 | 3,023 | — | |||||||||
Proceeds for vested awards | 282 | 1,508 | 1,427 | |||||||||
Repurchase and retirement of common stock | (17,566 | ) | (28,090 | ) | — | |||||||
Dividends paid | (2,938 | ) | (1,895 | ) | — | |||||||
Net cash used by financing activities | (16,611 | ) | (25,454 | ) | 1,427 | |||||||
Net increase (decrease) in cash | 55,260 | (11,380 | ) | 802 | ||||||||
Cash and cash equivalents at beginning of year | 9,211 | 20,591 | 19,789 | |||||||||
Cash and cash equivalents at end of year | $ | 64,471 | $ | 9,211 | $ | 20,591 | ||||||
Earnings_Per_Share_Schedule_of
Earnings Per Share: Schedule of Earnings Per Share Reconciliation (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Schedule of Earnings Per Share Reconciliation | The following table presents a reconciliation of the components used to compute basic and diluted earnings per share for the periods indicated. | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Dollars in thousands, except share data) | ||||||||||||
Net income | $ | 10,687 | $ | 24,465 | $ | 2,713 | ||||||
Earnings allocated to participating securities | (52 | ) | (150 | ) | (35 | ) | ||||||
Earnings allocated to common shareholders | $ | 10,635 | $ | 24,315 | $ | 2,678 | ||||||
Basic weighted-average common shares outstanding | 14,747,086 | 16,580,882 | 17,643,978 | |||||||||
Dilutive effect of stock options | 116,624 | 28,985 | 18,445 | |||||||||
Dilutive effect of restricted stock grants | 23,488 | — | — | |||||||||
Diluted weighted-average common shares outstanding | 14,887,198 | 16,609,867 | 17,662,423 | |||||||||
Basic earnings per share | $ | 0.72 | $ | 1.47 | $ | 0.15 | ||||||
Diluted earnings per share | $ | 0.71 | $ | 1.46 | $ | 0.15 | ||||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Other Comprehensive Income (Loss) [Abstract] | ||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) included in stockholders’ equity for the periods indicated, are as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Net unrealized gains (losses) on investments available-for-sale | $ | 1,234 | $ | (1,324 | ) | $ | 1,537 | |||||
Tax effect | 1,591 | 696 | 789 | |||||||||
Net of tax amount | $ | (357 | ) | $ | (2,020 | ) | $ | 748 | ||||
Summarized_Consolidated_Quarte1
Summarized Consolidated Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||
Schedule of Quarterly Financial Information | The following table presents summarized consolidated quarterly data for each of the last three years. | |||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
(Dollars in thousands, except share data) | ||||||||||||||||
2014 | ||||||||||||||||
Total interest income | $ | 9,652 | $ | 9,695 | $ | 9,736 | $ | 9,606 | ||||||||
Total interest expense | 1,598 | 1,517 | 1,517 | 1,609 | ||||||||||||
Net interest income | 8,054 | 8,178 | 8,219 | 7,997 | ||||||||||||
Recapture of provision for loan losses | (500 | ) | (100 | ) | (300 | ) | (1,200 | ) | ||||||||
Net interest income after recapture of provision for loan losses | 8,554 | 8,278 | 8,519 | 9,197 | ||||||||||||
Total noninterest income | 68 | 88 | 186 | 156 | ||||||||||||
Total noninterest expense | 4,524 | 4,702 | 4,508 | 4,769 | ||||||||||||
Income before provision for income taxes | 4,098 | 3,664 | 4,197 | 4,584 | ||||||||||||
Provision for federal income tax expense | 1,453 | 1,297 | 1,462 | 1,644 | ||||||||||||
Net income | $ | 2,645 | $ | 2,367 | $ | 2,735 | $ | 2,940 | ||||||||
Basic earnings per share | $ | 0.17 | $ | 0.16 | $ | 0.19 | $ | 0.2 | ||||||||
Diluted earnings per share (1) | $ | 0.17 | $ | 0.16 | $ | 0.19 | $ | 0.2 | ||||||||
2013 | ||||||||||||||||
Total interest income | $ | 9,538 | $ | 9,684 | $ | 9,549 | $ | 9,768 | ||||||||
Total interest expense | 2,149 | 1,879 | 1,804 | 1,694 | ||||||||||||
Net interest income | 7,389 | 7,805 | 7,745 | 8,074 | ||||||||||||
Provision (recapture of provision) for loan losses | — | 100 | — | (200 | ) | |||||||||||
Net interest income after provision (recapture of provision) for loan losses | 7,389 | 7,705 | 7,745 | 8,274 | ||||||||||||
Total noninterest income | 104 | 155 | 120 | 372 | ||||||||||||
Total noninterest expense | 5,878 | 5,306 | 5,388 | 4,370 | ||||||||||||
Income before provision (benefit) for income taxes | 1,615 | 2,554 | 2,477 | 4,276 | ||||||||||||
Provision (benefit) for federal income tax expense | 59 | (13,809 | ) | (135 | ) | 342 | ||||||||||
Net income | $ | 1,556 | $ | 16,363 | $ | 2,612 | $ | 3,934 | ||||||||
Basic earnings per share (1) | $ | 0.09 | $ | 0.96 | $ | 0.16 | $ | 0.25 | ||||||||
Diluted earnings per share | $ | 0.09 | $ | 0.95 | $ | 0.16 | $ | 0.25 | ||||||||
2012 | ||||||||||||||||
Total interest income | $ | 11,162 | $ | 10,399 | $ | 10,157 | $ | 9,748 | ||||||||
Total interest expense | 3,452 | 3,138 | 2,946 | 2,710 | ||||||||||||
Net interest income | 7,710 | 7,261 | 7,211 | 7,038 | ||||||||||||
Provision for loan losses | 1,700 | 650 | 700 | — | ||||||||||||
Net interest income after provision for loan losses | 6,010 | 6,611 | 6,511 | 7,038 | ||||||||||||
Total noninterest income | 281 | 330 | 107 | 118 | ||||||||||||
Total noninterest expense | 5,621 | 6,569 | 7,457 | 5,645 | ||||||||||||
Income (loss) before provision (benefit) for income taxes | 670 | 372 | (839 | ) | 1,511 | |||||||||||
Provision (benefit) for federal income taxes | 48 | (999 | ) | (48 | ) | — | ||||||||||
Net income (loss) | $ | 622 | $ | 1,371 | $ | (791 | ) | $ | 1,511 | |||||||
Basic earnings (loss) per share (1) | $ | 0.04 | $ | 0.08 | $ | (0.04 | ) | $ | 0.09 | |||||||
Diluted earnings (loss) per share (1) | $ | 0.04 | $ | 0.08 | $ | (0.04 | ) | $ | 0.09 | |||||||
(1) Basic and diluted earnings per share may not equal year-to-date total due to rounding. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Narrative (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ||
Federal reserve bank minimum reserve required | $171 | $68 |
Number of days delinquent at which accrual of interest on loan is discontinued | 90 days | |
Federal home loan bank stock, par value (usd per share) | $100 | |
Deferred tax asset recognition threshold percentage | 50.00% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Premisis and Equipment (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Building and building improvements | Minimum | |
Property, Plant and Equipment | |
Property, plant and equipment, useful life | 15 years |
Building and building improvements | Maximum | |
Property, Plant and Equipment | |
Property, plant and equipment, useful life | 40 years |
Furniture, fixtures and equipment | Minimum | |
Property, Plant and Equipment | |
Property, plant and equipment, useful life | 3 years |
Furniture, fixtures and equipment | Maximum | |
Property, Plant and Equipment | |
Property, plant and equipment, useful life | 7 years |
Investments_Narrative_Details
Investments: Narrative (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Investments [Abstract] | ||
Investments pledged as collateral for public deposits | $16,300,000 | $21,300,000 |
Unrealized loss | 387,000 | 2,518,000 |
Fair Value | $31,202,000 | $90,617,000 |
Investments_Availableforsale_S
Investments: Available-for-sale Securities (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Amortized Cost | $119,140 | $145,688 |
Gross Unrealized Gains | 1,621 | 1,194 |
Gross Unrealized Losses | -387 | -2,518 |
Fair Value | 120,374 | 144,364 |
Mortgage-backed investments, Fannie Mae | ||
Amortized Cost | 40,083 | 46,234 |
Gross Unrealized Gains | 863 | 623 |
Gross Unrealized Losses | -30 | -625 |
Fair Value | 40,916 | 46,232 |
Mortgage-backed investments, Freddie Mac | ||
Amortized Cost | 21,442 | 25,707 |
Gross Unrealized Gains | 526 | 343 |
Gross Unrealized Losses | -22 | -194 |
Fair Value | 21,946 | 25,856 |
Mortgage-backed investments, Ginnie Mae | ||
Amortized Cost | 26,049 | 34,403 |
Gross Unrealized Gains | 87 | 63 |
Gross Unrealized Losses | -122 | -593 |
Fair Value | 26,014 | 33,873 |
Municipal Bonds | ||
Amortized Cost | 642 | 2,043 |
Gross Unrealized Gains | 2 | 6 |
Gross Unrealized Losses | 0 | -199 |
Fair Value | 644 | 1,850 |
US Government agencies | ||
Amortized Cost | 16,863 | 23,222 |
Gross Unrealized Gains | 104 | 123 |
Gross Unrealized Losses | -151 | -641 |
Fair Value | 16,816 | 22,704 |
Corporate Bonds | ||
Amortized Cost | 14,061 | 14,079 |
Gross Unrealized Gains | 39 | 36 |
Gross Unrealized Losses | -62 | -266 |
Fair Value | $14,038 | $13,849 |
Investments_Schedule_of_Availa
Investments: Schedule of Available for sale Securities, Debt Maturities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments [Abstract] | ||
Due within one year, Amortized Cost | $0 | |
Due after one year through five years, Amortized Cost | 13,615 | |
Due after five years through ten years, Amortized Cost | 15,102 | |
Due after ten years, Amortized Cost | 2,849 | |
Debt maturities, Amortized Cost | 31,566 | |
Mortgage-backed investments, Amortized Cost | 87,574 | |
Amortized Cost | 119,140 | 145,688 |
Due within one year, Fair Value | 0 | |
Due after one year through five years, Fair Value | 13,533 | |
Due after five years through ten years, Fair Value | 15,048 | |
Due after ten years, Fair Value | 2,918 | |
Debt maturities, Fair Value | 31,499 | |
Mortgage-backed investments, Fair Value | 88,875 | |
Fair Value | $120,374 |
Investments_GainLoss_on_Invest
Investments: Gain/Loss on Investments (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments [Abstract] | |||
Proceeds | $4,980 | $45,137 | $23,756 |
Gross gains | 0 | 11 | 307 |
Gross losses | ($20) | ($49) | ($6) |
Investments_Schedule_of_Availa1
Investments: Schedule of Available for sale Securities in Continuous Unrealized Loss positions (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Less than twelve months, Fair Value | $3,924 | $69,248 |
Less than twelve months, Unrealized Loss | -10 | -1,920 |
Twelve months or longer, Fair Value | 27,278 | 21,369 |
Twelve months or longer, Unrealized Loss | -377 | -598 |
Fair Value | 31,202 | 90,617 |
Unrealized Loss | -387 | -2,518 |
Mortgage-backed investments, Fannie Mae | ||
Less than twelve months, Fair Value | 0 | 27,429 |
Less than twelve months, Unrealized Loss | 0 | -625 |
Twelve months or longer, Fair Value | 1,456 | 0 |
Twelve months or longer, Unrealized Loss | -30 | 0 |
Fair Value | 1,456 | 27,429 |
Unrealized Loss | -30 | -625 |
Mortgage-backed investments, Freddie Mac | ||
Less than twelve months, Fair Value | 0 | 8,704 |
Less than twelve months, Unrealized Loss | 0 | -155 |
Twelve months or longer, Fair Value | 1,832 | 2,483 |
Twelve months or longer, Unrealized Loss | -22 | -39 |
Fair Value | 1,832 | 11,187 |
Unrealized Loss | -22 | -194 |
Mortgage backed investments Ginnie Mae | ||
Less than twelve months, Fair Value | 1,883 | 16,617 |
Less than twelve months, Unrealized Loss | -6 | -278 |
Twelve months or longer, Fair Value | 9,952 | 12,730 |
Twelve months or longer, Unrealized Loss | -116 | -315 |
Fair Value | 11,835 | 29,347 |
Unrealized Loss | -122 | -593 |
Municipal Bonds | ||
Less than twelve months, Fair Value | 0 | |
Less than twelve months, Unrealized Loss | 0 | |
Twelve months or longer, Fair Value | 1,201 | |
Twelve months or longer, Unrealized Loss | -199 | |
Fair Value | 1,201 | |
Unrealized Loss | -199 | |
US Government agencies | ||
Less than twelve months, Fair Value | 545 | 7,702 |
Less than twelve months, Unrealized Loss | 0 | -596 |
Twelve months or longer, Fair Value | 8,096 | 4,955 |
Twelve months or longer, Unrealized Loss | -151 | -45 |
Fair Value | 8,641 | 12,657 |
Unrealized Loss | -151 | -641 |
Corporate Bonds | ||
Less than twelve months, Fair Value | 1,496 | 8,796 |
Less than twelve months, Unrealized Loss | -4 | -266 |
Twelve months or longer, Fair Value | 5,942 | 0 |
Twelve months or longer, Unrealized Loss | -58 | 0 |
Fair Value | 7,438 | 8,796 |
Unrealized Loss | ($62) | ($266) |
Loans_Receivable_Schedule_of_A1
Loans Receivable: Schedule of Accounts, Notes, Loans and Financing Receivable (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Loans and Leases Receivable, Impaired, Commitment to Lend | $0 | $0 | |||
Loans receivable | 704,392,000 | 688,936,000 | |||
Loans in process (LIP) | 27,359,000 | 10,209,000 | |||
Deferred loan fees, net | 2,604,000 | 2,580,000 | |||
Loans receivable allowance for loan losses | 10,491,000 | 12,994,000 | |||
Loans receivable, net | 663,938,000 | 663,153,000 | |||
One-to-four family, residential, owner occupied | |||||
Loans receivable | 161,013,000 | 158,797,000 | |||
One-to-four family residential non-owner occupied | |||||
Loans receivable | 112,180,000 | 121,877,000 | |||
One-to-four family construction | |||||
Loans receivable | 500,000 | 0 | |||
One-to-four family | |||||
Loans receivable | 273,693,000 | 280,674,000 | |||
Multifamily Permanent | |||||
Loans receivable | 116,014,000 | [1] | 106,152,000 | [1] | |
Multifamily Construction | |||||
Loans receivable | 4,450,000 | [1] | 12,360,000 | [1] | |
Multifamily | |||||
Loans receivable | 120,464,000 | [1] | 118,512,000 | [1] | |
Loans receivable allowance for loan losses | 1,646,000 | 1,377,000 | 1,139,000 | ||
Commercial Real Estate Permanent | |||||
Loans receivable | 239,211,000 | [1] | 227,016,000 | [1] | |
Commercial Real Estate Construction | |||||
Loans receivable | 6,100,000 | [1] | 19,905,000 | [1] | |
Commercial Real Estate Land | |||||
Loans receivable | 2,956,000 | [1] | 1,831,000 | [1] | |
Commercial Real Estate | |||||
Loans receivable | 248,267,000 | [1] | 248,752,000 | [1] | |
Construction/Land Development One-to-four family residential | |||||
Loans receivable | 19,860,000 | [1] | 3,977,000 | [1] | |
Construction Land Development Multifamily | |||||
Loans receivable | 17,902,000 | [1] | 12,491,000 | [1] | |
Construction Land Development Commercial | |||||
Loans receivable | 4,300,000 | [1] | 6,726,000 | [1] | |
Construction Land Development Land Development | |||||
Loans receivable | 8,993,000 | [1] | 7,461,000 | [1] | |
Construction Land Development | |||||
Loans receivable | 51,055,000 | [1] | 30,655,000 | [1] | |
Loans receivable allowance for loan losses | 355,000 | 399,000 | 437,000 | ||
Business | |||||
Loans receivable | 3,783,000 | 1,142,000 | |||
Loans receivable allowance for loan losses | 47,000 | 14,000 | 30,000 | ||
Consumer | |||||
Loans receivable | 7,130,000 | 9,201,000 | |||
Loans receivable allowance for loan losses | $152,000 | $182,000 | $167,000 | ||
[1] | Excludes construction loans that will convert to permanent loans. The Company considers these loans to be "rollovers" in that one loan is originated for both the construction loan and permanent financing. These loans are classified according to the underlying collateral. At December 31, 2014, the Company had $6.1 million, or 2.5% of the total commercial real estate portfolio, $4.5 million, or 3.7% of the total multifamily loans, and $500,000 or 0.2% of the total one-to-four family residential in these "rollover" type of loans. At December 31, 2013, the Company had $19.9 million, or 8.0% of the total commercial real estate portfolio and $12.4 million, or 10.4% of the total multifamily loans in these rollover type of loans. At DecemberB 31, 2014 and DecemberB 31, 2013, $3.0 million and $1.8 million, respectively, of commercial real estate loans were not included in the construction/land development category because the Company classifies raw land or buildable lots when it does not intend to finance the construction as commercial real estate land loans. |
Loans_Receivable_Narratives_De
Loans Receivable: Narratives (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Loans Receivable, Percentage of Loan Portfolio | 8.70% | |||
Loans and Leases Receivable, Net Amount | $663,938,000 | $663,153,000 | ||
Loans Receivable, non-performing | 1,300,000 | 4,000,000 | ||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 126,000 | 650,000 | 1,400,000 | |
Loans and Leases Receivable, Impaired, Commitment to Lend | 0 | 0 | ||
Troubled debt restructuring, charge to Allowance for Loan and Lease Losses | 0 | 89,000 | ||
One-to-four family residential | ||||
Loans Receivable, Percentage of Loan Portfolio | 38.90% | |||
Loans and Leases Receivable, Net Amount | 20,800,000 | |||
Multifamily | ||||
Loans Receivable, Percentage of Loan Portfolio | 17.10% | |||
Loans and Leases Receivable, Net Amount | 17,500,000 | |||
Commercial Real Estate | ||||
Loans Receivable, Percentage of Loan Portfolio | 35.30% | |||
Loans and Leases Receivable, Net Amount | 34,300,000 | |||
Construction Land Development | ||||
Loans and Leases Receivable, Net Amount | 1,600,000 | |||
Commercial Real Estate Construction | ||||
Loans excluded from category | 6,100,000 | 19,900,000 | ||
Loans and Notes receivable, category as percent of total | 2.50% | 8.00% | ||
One-to-four family residential | ||||
Loans excluded from category | 500,000 | |||
Loans and Notes receivable, category as percent of total | 0.20% | |||
Multifamily Construction | ||||
Loans excluded from category | 4,500,000 | 12,400,000 | ||
Loans and Notes receivable, category as percent of total | 3.70% | 10.40% | ||
Construction Land Development Commercial | ||||
Loans excluded from category | $3,000,000 | $1,800,000 |
Loans_Receivable_Loans_Receiva
Loans Receivable Loans Receivable: Schedule of Loans by Maturity and Interest Rate Type (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fixed Rate | ||
Schedule of Maturity of Loans and Financing Receivables [Abstract] | ||
Due within one year | $39,649 | $38,226 |
After one year through three years | 70,416 | 50,788 |
After three years through five years | 128,142 | 135,933 |
After five years through ten years | 117,199 | 150,272 |
Thereafter | 129,560 | 131,532 |
Loans receivable, outstanding maturities, by rate type | 484,966 | 506,751 |
Adjustable Rate | ||
Schedule of Maturity of Loans and Financing Receivables [Abstract] | ||
Due within one year | 98,830 | 81,459 |
After one year through three years | 27,314 | 33,802 |
After three years through five years | 32,842 | 18,485 |
After five years through ten years | 59,682 | 46,134 |
Thereafter | 758 | 2,305 |
Loans receivable, outstanding maturities, by rate type | $219,426 | $182,185 |
Loans_Receivable_Schedule_of_A2
Loans Receivable: Schedule of Allowance for Loan and Lease Losses, Roll Forward (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | $12,994 | $12,994 | |||||||||||||||||
(Recapture) provision | 1,200 | 300 | 100 | 500 | 200 | 0 | -100 | 0 | 0 | -700 | -650 | -1,700 | 2,100 | 100 | -3,050 | ||||
Loans and Leases Receivable, Allowance, Ending Balance | 10,491 | 12,994 | 10,491 | 12,994 | |||||||||||||||
Loans receivable allowance for loan losses | 10,491 | 12,994 | 10,491 | 12,994 | |||||||||||||||
One-to-four family residential | |||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 5,141 | 5,562 | 5,141 | 5,562 | |||||||||||||||
Charge-offs | -78 | -456 | |||||||||||||||||
Recoveries | 50 | 1,303 | |||||||||||||||||
(Recapture) provision | -1,419 | -1,268 | |||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 3,694 | 5,141 | 3,694 | 5,141 | |||||||||||||||
Loans receivable allowance for loan losses | 3,694 | 5,141 | 3,694 | 5,141 | |||||||||||||||
Total Loans | 273,565 | [1] | 280,674 | [1] | 273,565 | [1] | 280,674 | [1] | |||||||||||
One-to-four family residential | General Reserve | |||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 2,894 | 3,601 | 2,894 | 3,601 | |||||||||||||||
Loans receivable allowance for loan losses | 2,894 | 3,601 | 2,894 | 3,601 | |||||||||||||||
Total Loans | 229,827 | [1],[2] | 232,526 | [1],[2] | 229,827 | [1],[2] | 232,526 | [1],[2] | |||||||||||
One-to-four family residential | Specific Reserve | |||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 800 | 1,540 | 800 | 1,540 | |||||||||||||||
Loans receivable allowance for loan losses | 800 | 1,540 | 800 | 1,540 | |||||||||||||||
Total Loans | 43,738 | [1],[3] | 48,148 | [1],[3] | 43,738 | [1],[3] | 48,148 | [1],[3] | |||||||||||
Multifamily | |||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 1,377 | 1,139 | 1,377 | 1,139 | |||||||||||||||
Charge-offs | 0 | -346 | |||||||||||||||||
Recoveries | 0 | 237 | |||||||||||||||||
(Recapture) provision | 269 | 347 | |||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 1,646 | 1,377 | 1,646 | 1,377 | |||||||||||||||
Loans receivable allowance for loan losses | 1,646 | 1,377 | 1,646 | 1,377 | |||||||||||||||
Total Loans | 120,271 | [1] | 117,181 | [1] | 120,271 | [1] | 117,181 | [1] | |||||||||||
Multifamily | General Reserve | |||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 1,619 | 1,292 | 1,619 | 1,292 | |||||||||||||||
Loans receivable allowance for loan losses | 1,619 | 1,292 | 1,619 | 1,292 | |||||||||||||||
Total Loans | 118,099 | [1],[2] | 114,740 | [1],[2] | 118,099 | [1],[2] | 114,740 | [1],[2] | |||||||||||
Multifamily | Specific Reserve | |||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 27 | 85 | 27 | 85 | |||||||||||||||
Loans receivable allowance for loan losses | 27 | 85 | 27 | 85 | |||||||||||||||
Total Loans | 2,172 | [1],[3] | 2,441 | [1],[3] | 2,172 | [1],[3] | 2,441 | [1],[3] | |||||||||||
Commercial Real Estate | |||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 5,881 | 5,207 | 5,881 | 5,207 | |||||||||||||||
Charge-offs | -311 | -98 | |||||||||||||||||
Recoveries | 174 | 7 | |||||||||||||||||
(Recapture) provision | -1,147 | 765 | |||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 4,597 | 5,881 | 4,597 | 5,881 | |||||||||||||||
Loans receivable allowance for loan losses | 4,597 | 5,881 | 4,597 | 5,881 | |||||||||||||||
Total Loans | 247,968 | [1] | 247,402 | [1] | 247,968 | [1] | 247,402 | [1] | |||||||||||
Commercial Real Estate | General Reserve | |||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 4,268 | 5,326 | 4,268 | 5,326 | |||||||||||||||
Loans receivable allowance for loan losses | 4,268 | 5,326 | 4,268 | 5,326 | |||||||||||||||
Total Loans | 238,416 | [1],[2] | 234,093 | [1],[2] | 238,416 | [1],[2] | 234,093 | [1],[2] | |||||||||||
Commercial Real Estate | Specific Reserve | |||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 329 | 555 | 329 | 555 | |||||||||||||||
Loans receivable allowance for loan losses | 329 | 555 | 329 | 555 | |||||||||||||||
Total Loans | 9,552 | [1],[3] | 13,309 | [1],[3] | 9,552 | [1],[3] | 13,309 | [1],[3] | |||||||||||
Construction Land Development | |||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 399 | 437 | 399 | 437 | |||||||||||||||
Charge-offs | -223 | -582 | |||||||||||||||||
Recoveries | 0 | 455 | |||||||||||||||||
(Recapture) provision | 179 | 89 | |||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 355 | 399 | 355 | 399 | |||||||||||||||
Loans receivable allowance for loan losses | 355 | 399 | 355 | 399 | |||||||||||||||
Total Loans | 24,316 | [1] | 23,127 | [1] | 24,316 | [1] | 23,127 | [1] | |||||||||||
Construction Land Development | General Reserve | |||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 355 | 399 | 355 | 399 | |||||||||||||||
Loans receivable allowance for loan losses | 355 | 399 | 355 | 399 | |||||||||||||||
Total Loans | 24,316 | [1],[2] | 22,904 | [1],[2] | 24,316 | [1],[2] | 22,904 | [1],[2] | |||||||||||
Construction Land Development | Specific Reserve | |||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 0 | 0 | 0 | 0 | |||||||||||||||
Loans receivable allowance for loan losses | 0 | 0 | 0 | 0 | |||||||||||||||
Total Loans | 0 | [1],[3] | 223 | [1],[3] | 0 | [1],[3] | 223 | [1],[3] | |||||||||||
Business | |||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 14 | 30 | 14 | 30 | |||||||||||||||
Charge-offs | 0 | -13 | |||||||||||||||||
Recoveries | 10 | 0 | |||||||||||||||||
(Recapture) provision | 23 | -3 | |||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 47 | 14 | 47 | 14 | |||||||||||||||
Loans receivable allowance for loan losses | 47 | 14 | 47 | 14 | |||||||||||||||
Total Loans | 3,783 | [1] | 1,142 | [1] | 3,783 | [1] | 1,142 | [1] | |||||||||||
Business | General Reserve | |||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 47 | 14 | 47 | 14 | |||||||||||||||
Loans receivable allowance for loan losses | 47 | 14 | 47 | 14 | |||||||||||||||
Total Loans | 3,783 | [1],[2] | 1,142 | [1],[2] | 3,783 | [1],[2] | 1,142 | [1],[2] | |||||||||||
Business | Specific Reserve | |||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 0 | 0 | 0 | 0 | |||||||||||||||
Loans receivable allowance for loan losses | 0 | 0 | 0 | 0 | |||||||||||||||
Total Loans | 0 | [1],[3] | 0 | [1],[3] | 0 | [1],[3] | 0 | [1],[3] | |||||||||||
Consumer | |||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 182 | 167 | 182 | 167 | |||||||||||||||
Charge-offs | -30 | -101 | |||||||||||||||||
Recoveries | 5 | 146 | |||||||||||||||||
(Recapture) provision | -5 | -30 | |||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 152 | 182 | 152 | 182 | |||||||||||||||
Loans receivable allowance for loan losses | 152 | 182 | 152 | 182 | |||||||||||||||
Total Loans | 7,130 | [1] | 9,201 | [1] | 7,130 | [1] | 9,201 | [1] | |||||||||||
Consumer | General Reserve | |||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 93 | 182 | 93 | 182 | |||||||||||||||
Loans receivable allowance for loan losses | 93 | 182 | 93 | 182 | |||||||||||||||
Total Loans | 6,933 | [1],[2] | 9,157 | [1],[2] | 6,933 | [1],[2] | 9,157 | [1],[2] | |||||||||||
Consumer | Specific Reserve | |||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 59 | 0 | 59 | 0 | |||||||||||||||
Loans receivable allowance for loan losses | 59 | 0 | 59 | 0 | |||||||||||||||
Total Loans | 197 | [1],[3] | 44 | [1],[3] | 197 | [1],[3] | 44 | [1],[3] | |||||||||||
Property total | |||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 12,994 | 12,542 | 12,994 | 12,542 | |||||||||||||||
Charge-offs | -642 | -1,596 | |||||||||||||||||
Recoveries | 239 | 2,148 | |||||||||||||||||
(Recapture) provision | -2,100 | -100 | |||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 10,491 | 12,994 | 10,491 | 12,994 | |||||||||||||||
Loans receivable allowance for loan losses | 10,491 | 12,994 | 10,491 | 12,994 | |||||||||||||||
Total Loans | 677,033 | [1] | 678,727 | [1] | 677,033 | [1] | 678,727 | [1] | |||||||||||
Property total | General Reserve | |||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 9,276 | 10,814 | 9,276 | 10,814 | |||||||||||||||
Loans receivable allowance for loan losses | 9,276 | 10,814 | 9,276 | 10,814 | |||||||||||||||
Total Loans | 621,374 | [1],[2] | 614,562 | [1],[2] | 621,374 | [1],[2] | 614,562 | [1],[2] | |||||||||||
Property total | Specific Reserve | |||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 1,215 | 2,180 | 1,215 | 2,180 | |||||||||||||||
Loans receivable allowance for loan losses | 1,215 | 2,180 | 1,215 | 2,180 | |||||||||||||||
Total Loans | $55,659 | [1],[3] | $64,165 | [1],[3] | $55,659 | [1],[3] | $64,165 | [1],[3] | |||||||||||
[1] | Net of LIP. | ||||||||||||||||||
[2] | Loans collectively evaluated for impairment. | ||||||||||||||||||
[3] | Loans individually evaluated for impairment |
Loans_Receivable_Financing_Rec
Loans Receivable: Financing Receivables, Aging of loans (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days | $2,631,000 | $1,357,000 | ||
60-89 Days | 975,000 | 371,000 | ||
90 Days and Greater | 841,000 | 2,579,000 | ||
Total | 4,447,000 | 4,307,000 | ||
Current | 672,586,000 | 674,420,000 | ||
Total Loans | 677,033,000 | [1],[2],[3] | 678,727,000 | [1],[2],[4] |
One-to-four family, residential, owner occupied | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days | 666,000 | 923,000 | ||
60-89 Days | 575,000 | 337,000 | ||
90 Days and Greater | 666,000 | 575,000 | ||
Total | 1,907,000 | 1,835,000 | ||
Current | 159,106,000 | 156,962,000 | ||
Total Loans | 161,013,000 | [1],[3] | 158,797,000 | [2],[4] |
One-to-four family residential non-owner occupied | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days | 0 | 0 | ||
60-89 Days | 0 | 0 | ||
90 Days and Greater | 164,000 | 692,000 | ||
Total | 164,000 | 692,000 | ||
Current | 112,388,000 | 121,185,000 | ||
Total Loans | 112,552,000 | [1],[3] | 121,877,000 | [2],[4] |
Multifamily | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days | 1,965,000 | 0 | ||
60-89 Days | 0 | 0 | ||
90 Days and Greater | 0 | 0 | ||
Total | 1,965,000 | 0 | ||
Current | 118,306,000 | 117,181,000 | ||
Total Loans | 120,271,000 | [1],[3] | 117,181,000 | [2],[4] |
Commercial Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days | 0 | 331,000 | ||
60-89 Days | 325,000 | 0 | ||
90 Days and Greater | 11,000 | 1,089,000 | ||
Total | 336,000 | 1,420,000 | ||
Current | 247,632,000 | 245,982,000 | ||
Total Loans | 247,968,000 | [1],[3] | 247,402,000 | [2],[4] |
Construction Land Development | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days | 0 | 0 | ||
60-89 Days | 0 | 0 | ||
90 Days and Greater | 0 | 223,000 | ||
Total | 0 | 223,000 | ||
Current | 24,316,000 | 22,904,000 | ||
Total Loans | 24,316,000 | [1],[3] | 23,127,000 | [2],[4] |
Real Estate, Total | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days | 2,631,000 | 1,254,000 | ||
60-89 Days | 900,000 | 337,000 | ||
90 Days and Greater | 841,000 | 2,579,000 | ||
Total | 4,372,000 | 4,170,000 | ||
Current | 661,748,000 | 664,214,000 | ||
Total Loans | 666,120,000 | [1],[3] | 668,384,000 | [2],[4] |
Business | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days | 0 | 0 | ||
60-89 Days | 0 | 0 | ||
90 Days and Greater | 0 | 0 | ||
Total | 0 | 0 | ||
Current | 3,783,000 | 1,142,000 | ||
Total Loans | 3,783,000 | [1],[3] | 1,142,000 | [2],[4] |
Consumer | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days | 0 | 103,000 | ||
60-89 Days | 75,000 | 34,000 | ||
90 Days and Greater | 0 | 0 | ||
Total | 75,000 | 137,000 | ||
Current | 7,055,000 | 9,064,000 | ||
Total Loans | $7,130,000 | [1],[3] | $9,201,000 | [2],[4] |
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmVlNGU3NjI1OTQzNzRmMDRiOTQ2NWJjZTliMjJjZThjfFRleHRTZWxlY3Rpb246QUE1NENFRDVFNTNCNTdERDgwNkQ0MTRCRjA1RDhCNkQM} | |||
[2] | Net of LIP. | |||
[3] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmVlNGU3NjI1OTQzNzRmMDRiOTQ2NWJjZTliMjJjZThjfFRleHRTZWxlY3Rpb246NjM4MjlFMkFGNUFGNUNERkI0QzE2RDFGMTMwQzBERTQM} | |||
[4] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmVlNGU3NjI1OTQzNzRmMDRiOTQ2NWJjZTliMjJjZThjfFRleHRTZWxlY3Rpb246QzNFQjA4MkZDMDJCNTYxQjk5NUFGQzMzN0JFNkM3NTMM} |
Loans_Receivable_Schedule_of_n
Loans Receivable: Schedule of non-accrual loans (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total nonaccrual loans | $1,339 | $3,995 |
One-to-four family, residential, owner occupied | ||
Total nonaccrual loans | 830 | 2,297 |
Multifamily | ||
Total nonaccrual loans | 0 | 233 |
Commercial Real Estate Other Receivable | ||
Total nonaccrual loans | 434 | 1,198 |
Construction Land Development | ||
Total nonaccrual loans | 0 | 223 |
Consumer | ||
Total nonaccrual loans | $75 | $44 |
Loans_Receivable_Nonperforming
Loans Receivable: Non-performing Loans, Foregone interest, and loans committed (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | $677,033,000 | [1],[2],[3] | $678,727,000 | [1],[2],[4] |
One-to-four family residential | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 273,565,000 | 280,674,000 | ||
Multifamily | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 120,271,000 | [1],[3] | 117,181,000 | [2],[4] |
Commercial Real Estate | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 247,968,000 | [1],[3] | 247,402,000 | [2],[4] |
Construction Land Development | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 24,316,000 | [1],[3] | 23,127,000 | [2],[4] |
Business | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 3,783,000 | [1],[3] | 1,142,000 | [2],[4] |
Consumer | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 7,130,000 | [1],[3] | 9,201,000 | [2],[4] |
One-to-four family residential non-owner occupied | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 112,552,000 | [1],[3] | 121,877,000 | [2],[4] |
One-to-four family, residential, owner occupied | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 161,013,000 | [1],[3] | 158,797,000 | [2],[4] |
Performing Financing Receivable | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 675,694,000 | [2] | 674,732,000 | [2] |
Performing Financing Receivable | One-to-four family residential | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 272,735,000 | 278,377,000 | ||
Performing Financing Receivable | Multifamily | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 120,271,000 | 116,948,000 | ||
Performing Financing Receivable | Commercial Real Estate | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 247,534,000 | 246,204,000 | ||
Performing Financing Receivable | Construction Land Development | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 24,316,000 | 22,904,000 | ||
Performing Financing Receivable | Business | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 3,783,000 | 1,142,000 | ||
Performing Financing Receivable | Consumer | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 7,055,000 | 9,157,000 | ||
Performing Financing Receivable | One-to-four family residential non-owner occupied | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 112,400,000 | 121,100,000 | ||
Performing Financing Receivable | One-to-four family, residential, owner occupied | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 160,300,000 | 157,300,000 | ||
Nonperforming Financing Receivable | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 1,339,000 | [2] | 3,995,000 | [2] |
Nonperforming Financing Receivable | One-to-four family residential | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 830,000 | 2,297,000 | ||
Nonperforming Financing Receivable | Multifamily | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 0 | 233,000 | ||
Nonperforming Financing Receivable | Commercial Real Estate | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 434,000 | 1,198,000 | ||
Nonperforming Financing Receivable | Construction Land Development | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 0 | 223,000 | ||
Nonperforming Financing Receivable | Business | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 0 | 0 | ||
Nonperforming Financing Receivable | Consumer | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 75,000 | 44,000 | ||
Nonperforming Financing Receivable | One-to-four family residential non-owner occupied | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | 164,000 | 817,000 | ||
Nonperforming Financing Receivable | One-to-four family, residential, owner occupied | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing Receivable, Net | $666,000 | $1,500,000 | ||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmVlNGU3NjI1OTQzNzRmMDRiOTQ2NWJjZTliMjJjZThjfFRleHRTZWxlY3Rpb246QUE1NENFRDVFNTNCNTdERDgwNkQ0MTRCRjA1RDhCNkQM} | |||
[2] | Net of LIP. | |||
[3] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmVlNGU3NjI1OTQzNzRmMDRiOTQ2NWJjZTliMjJjZThjfFRleHRTZWxlY3Rpb246NjM4MjlFMkFGNUFGNUNERkI0QzE2RDFGMTMwQzBERTQM} | |||
[4] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmVlNGU3NjI1OTQzNzRmMDRiOTQ2NWJjZTliMjJjZThjfFRleHRTZWxlY3Rpb246QzNFQjA4MkZDMDJCNTYxQjk5NUFGQzMzN0JFNkM3NTMM} |
Loans_Receivable_Schedule_of_I
Loans Receivable: Schedule of Impaired Financing Receivables (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
One-to-four family, residential, owner occupied | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $3,308 | [1] | $3,878 | [1],[2] |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 3,661 | [3] | 4,281 | [2],[3] |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 2,554 | [1] | 3,191 | [1],[2] |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 2,624 | [3] | 3,238 | [2],[3] |
Impaired Financing Receivable, Related Allowance | 121 | 263 | ||
Impaired Financing Receivable, Recorded Investment | 5,862 | [1] | 7,069 | [1],[2] |
Impaired Financing Receivable, Unpaid Principal Balance | 6,285 | [3] | 7,519 | [2],[3] |
One-to-four family residential non-owner occupied | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 29,224 | [1] | 28,782 | [1],[2] |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 29,266 | [3] | 28,854 | [2],[3] |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 8,652 | [1] | 12,297 | [1],[2] |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 8,704 | [3] | 12,352 | [2],[3] |
Impaired Financing Receivable, Related Allowance | 679 | 1,277 | ||
Impaired Financing Receivable, Recorded Investment | 37,876 | [1] | 41,079 | [1],[2] |
Impaired Financing Receivable, Unpaid Principal Balance | 37,970 | [3] | 41,206 | [2],[3] |
Multifamily | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 0 | [1] | 233 | [1],[2] |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 0 | [3] | 264 | [2],[3] |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 2,172 | [1] | 2,208 | [1],[2] |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 2,172 | [3] | 2,208 | [2],[3] |
Impaired Financing Receivable, Related Allowance | 27 | 85 | ||
Impaired Financing Receivable, Recorded Investment | 2,172 | [1] | 2,441 | [1],[2] |
Impaired Financing Receivable, Unpaid Principal Balance | 2,172 | [3] | 2,472 | [2],[3] |
Commercial Real Estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 4,553 | [1] | 6,224 | [1],[2] |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 4,851 | [3] | 6,511 | [2],[3] |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 4,999 | 7,085 | [1],[2] | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 4,999 | 7,085 | [2],[3] | |
Impaired Financing Receivable, Related Allowance | 329 | 555 | ||
Impaired Financing Receivable, Recorded Investment | 9,552 | [1] | 13,309 | [1],[2] |
Impaired Financing Receivable, Unpaid Principal Balance | 9,850 | [3] | 13,596 | [2],[3] |
Consumer | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 79 | |||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 79 | |||
Impaired Financing Receivable, Related Allowance | 59 | |||
Construction Land Development | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 0 | [1] | 223 | [1],[2] |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 0 | [3] | 4,812 | [2],[3] |
Impaired Financing Receivable, Related Allowance | 0 | 0 | ||
Impaired Financing Receivable, Recorded Investment | 0 | [1] | 223 | [1],[2] |
Impaired Financing Receivable, Unpaid Principal Balance | 0 | [3] | 4,812 | [2],[3] |
Consumer | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 118 | [1] | 44 | [1],[2] |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 153 | [3] | 70 | [2],[3] |
Impaired Financing Receivable, Related Allowance | 0 | |||
Impaired Financing Receivable, Recorded Investment | 197 | [1] | 44 | [1],[2] |
Impaired Financing Receivable, Unpaid Principal Balance | 232 | [3] | 70 | [2],[3] |
Property total | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 37,203 | [1] | 39,384 | [1],[2] |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 37,931 | [3] | 44,792 | [2],[3] |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 18,456 | 24,781 | [1],[2] | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 18,578 | 24,883 | [2],[3] | |
Impaired Financing Receivable, Related Allowance | 1,215 | 2,180 | ||
Impaired Financing Receivable, Recorded Investment | 55,659 | [1] | 64,165 | [1],[2] |
Impaired Financing Receivable, Unpaid Principal Balance | $56,509 | [3] | $69,675 | [2],[3] |
[1] | presents the loan balance less charge-offs.( | |||
[2] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmVlNGU3NjI1OTQzNzRmMDRiOTQ2NWJjZTliMjJjZThjfFRleHRTZWxlY3Rpb246RTk0NkIxMjY2N0UyNUVGNjhGNzJGRUEwRURDQzZGMDcM} | |||
[3] | ntractual loan principal balance.B At or For the Year Ended December 31, 2013B Recorded Investment (1)B Unpaid PrincipalBalance (2)B Related AllowanceB (In thousands)Loans with no related allowance: One-to-four family residential: Owner occupied$3,878B $4,281B $bNon-owner occupied28,782B 28,854B bMultifamily233B 264B bCommercial real estate6,224B 6,511B bConstruction/land development223B 4,812B bConsumer44B 70B bTotal39,384B 44,792B bLoans with an allowance: One-to-four family residential: Owner occupied3,191B 3,238B 263Non-owner occupied12,297B 12,352B 1,277Multifamily2,208B 2,208B 85Commercial real estate7,085B 7,085B 555Total24,781B 24,883B 2,180Total impaired loans: One-to-four family residential: Owner occupied7,069B 7,519B 263Non-owner occupied41,079B 41,206B 1,277Multifamily2,441B 2,472B 85Commercial real estate13,309B 13,596B 555Construction/land development223B 4,812B bConsumer44B 70B bTotal$64,165B $69,675B $2,180 |
Loans_Receivable_Loans_Receiva1
Loans Receivable Loans Receivable: Average Recorded Investment and Interest Income Recognized (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | $36,572 | $46,214 | $66,589 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 2,215 | 2,187 | 2,996 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 22,109 | 28,025 | 21,982 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 1,041 | 1,286 | 1,433 |
Impaired Financing Receivable, Average Recorded Investment | 58,681 | 74,239 | 88,571 |
Impaired Financing Receivable, Interest Income, Accrual Method | 3,256 | 3,473 | 4,429 |
One-to-four family, residential, owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 3,302 | 4,773 | 6,997 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 158 | 146 | 120 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 2,975 | 4,249 | 4,944 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 124 | 169 | 284 |
Impaired Financing Receivable, Average Recorded Investment | 6,277 | 9,022 | 11,941 |
Impaired Financing Receivable, Interest Income, Accrual Method | 282 | 315 | 404 |
One-to-four family residential non-owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 29,105 | 29,277 | 36,216 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 1,762 | 1,697 | 2,039 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 10,395 | 14,545 | 11,579 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 500 | 623 | 694 |
Impaired Financing Receivable, Average Recorded Investment | 39,500 | 43,822 | 47,795 |
Impaired Financing Receivable, Interest Income, Accrual Method | 2,262 | 2,320 | 2,733 |
Multifamily | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 113 | 1,143 | 4,659 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 0 | 0 | 254 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 2,187 | 1,414 | 0 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 147 | 138 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 2,300 | 2,557 | 4,659 |
Impaired Financing Receivable, Interest Income, Accrual Method | 147 | 138 | 254 |
Commercial Real Estate | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 3,971 | 7,065 | 10,742 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 291 | 344 | 562 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 6,532 | 7,817 | 5,459 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 267 | 356 | 455 |
Impaired Financing Receivable, Average Recorded Investment | 10,503 | 14,882 | 16,201 |
Impaired Financing Receivable, Interest Income, Accrual Method | 558 | 700 | 1,017 |
Construction Land Development | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 0 | 3,417 | 7,621 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 0 | 3,417 | 7,621 |
Impaired Financing Receivable, Interest Income, Accrual Method | 0 | 0 | 0 |
Consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 81 | 539 | 354 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 4 | 0 | 21 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 20 | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 3 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 101 | 539 | 354 |
Impaired Financing Receivable, Interest Income, Accrual Method | $7 | $0 | $21 |
Recovered_Sheet1
Loans Receivable: Schedule of Non-performing assets and troubled debt restructured loans (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Receivables [Abstract] | ||||
Nonaccrual loans | $1,339 | $3,027 | ||
Nonaccrual TDRs | 0 | 968 | ||
Total nonperforming loans | 1,339 | 3,995 | ||
OREO | 9,283 | 11,465 | 17,347 | 26,044 |
Total nonperforming assets | 10,622 | 15,460 | ||
Performing TDRs | 54,241 | 60,170 | ||
Nonaccrual TDRs | 0 | 968 | ||
Total TDRs | $54,241 | $61,138 |
Loans_Receivable_Troubled_Debt
Loans Receivable: Troubled Debt Restructurings on Financing Receivables (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
loan | loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 29 | 12 |
Pre-Modification Outstanding Recorded Investment | $8,888 | $7,299 |
Post-Modification Outstanding Recorded Investment | 8,888 | 7,281 |
One-to-four family residential | Interest Only Payments With No Interest Rate Concession | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 12 | 2 |
Pre-Modification Outstanding Recorded Investment | 2,522 | 682 |
Post-Modification Outstanding Recorded Investment | 2,522 | 683 |
One-to-four family residential | Principal and Interest with Interest Rate Concession | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 6 | 2 |
Pre-Modification Outstanding Recorded Investment | 1,174 | 1,620 |
Post-Modification Outstanding Recorded Investment | 1,174 | 1,620 |
One-to-four family residential | Principal and Interest Reamortized With No Interest Rate Concession | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 0 | 1 |
Pre-Modification Outstanding Recorded Investment | 0 | 261 |
Post-Modification Outstanding Recorded Investment | 0 | 260 |
One-to-four family residential | Advancement of Maturity Date | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 9 | 3 |
Pre-Modification Outstanding Recorded Investment | 1,722 | 480 |
Post-Modification Outstanding Recorded Investment | 1,722 | 473 |
Commercial Real Estate | Principal and Interest with Interest Rate Concession | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | 0 | 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 |
Commercial Real Estate | Principal and Interest Reamortized With No Interest Rate Concession | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 0 | 1 |
Pre-Modification Outstanding Recorded Investment | 0 | 335 |
Post-Modification Outstanding Recorded Investment | 0 | 331 |
Commercial Real Estate | Advancement of Maturity Date | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 0 | 1 |
Pre-Modification Outstanding Recorded Investment | 0 | 437 |
Post-Modification Outstanding Recorded Investment | 0 | 432 |
Commercial Real Estate | Interest only payments | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 2 | 2 |
Pre-Modification Outstanding Recorded Investment | 3,470 | 3,484 |
Post-Modification Outstanding Recorded Investment | $3,470 | $3,482 |
Loans_Receivable_Trouble_Debt_
Loans Receivable: Trouble Debt Restructurings on Financing Receivables, TDRs that subsequently defaulted (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
loan | loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 0 | 2,000 |
One-to-four family residential | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 0 | 0 |
Commercial Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 0 | 2,000 |
Principal and Interest Reamortized With No Interest Rate Concession | ||
Financing Receivable, Modifications [Line Items] | ||
Total | 0 | 331,000 |
Principal and Interest Reamortized With No Interest Rate Concession | One-to-four family residential | ||
Financing Receivable, Modifications [Line Items] | ||
Total | 0 | 0 |
Principal and Interest Reamortized With No Interest Rate Concession | Commercial Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Total | 0 | 331,000 |
Interest rate concession | ||
Financing Receivable, Modifications [Line Items] | ||
Total | 0 | 432,000 |
Interest rate concession | One-to-four family residential | ||
Financing Receivable, Modifications [Line Items] | ||
Total | 0 | 0 |
Interest rate concession | Commercial Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Total | 0 | 432,000 |
Loans_Receivable_Financing_Rec1
Loans Receivable: Financing Receivables, Summary of loans by type and risk category (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
Financing Receivable, Net | $677,033,000 | [1],[2],[3] | $678,727,000 | [1],[2],[4] |
Pass | ||||
Financing Receivable, Net | 650,758,000 | [1] | 642,165,000 | [1] |
Special Mention | ||||
Financing Receivable, Net | 16,102,000 | [1] | 22,163,000 | [1] |
Substandard | ||||
Financing Receivable, Net | 10,173,000 | [1] | 14,399,000 | [1] |
One-to-four family residential | ||||
Financing Receivable, Net | 273,565,000 | 280,674,000 | ||
One-to-four family residential | Pass | ||||
Financing Receivable, Net | 263,094,000 | 265,511,000 | ||
One-to-four family residential | Special Mention | ||||
Financing Receivable, Net | 4,157,000 | 5,825,000 | ||
One-to-four family residential | Substandard | ||||
Financing Receivable, Net | 6,314,000 | 9,338,000 | ||
Multifamily | ||||
Financing Receivable, Net | 120,271,000 | [1],[3] | 117,181,000 | [2],[4] |
Multifamily | Pass | ||||
Financing Receivable, Net | 116,891,000 | 114,525,000 | ||
Multifamily | Special Mention | ||||
Financing Receivable, Net | 1,416,000 | 1,203,000 | ||
Multifamily | Substandard | ||||
Financing Receivable, Net | 1,964,000 | 1,453,000 | ||
Commercial Real Estate | ||||
Financing Receivable, Net | 247,968,000 | [1],[3] | 247,402,000 | [2],[4] |
Commercial Real Estate | Pass | ||||
Financing Receivable, Net | 235,841,000 | 229,149,000 | ||
Commercial Real Estate | Special Mention | ||||
Financing Receivable, Net | 10,529,000 | 15,134,000 | ||
Commercial Real Estate | Substandard | ||||
Financing Receivable, Net | 1,598,000 | 3,119,000 | ||
Construction Land Development | ||||
Financing Receivable, Net | 24,316,000 | [1],[3] | 23,127,000 | [2],[4] |
Construction Land Development | Pass | ||||
Financing Receivable, Net | 24,316,000 | 22,904,000 | ||
Construction Land Development | Special Mention | ||||
Financing Receivable, Net | 0 | 0 | ||
Construction Land Development | Substandard | ||||
Financing Receivable, Net | 0 | 223,000 | ||
Business | ||||
Financing Receivable, Net | 3,783,000 | [1],[3] | 1,142,000 | [2],[4] |
Business | Pass | ||||
Financing Receivable, Net | 3,783,000 | 1,142,000 | ||
Consumer | ||||
Financing Receivable, Net | 7,130,000 | [1],[3] | 9,201,000 | [2],[4] |
Consumer | Pass | ||||
Financing Receivable, Net | 6,833,000 | 8,934,000 | ||
Consumer | Special Mention | ||||
Financing Receivable, Net | 0 | 1,000 | ||
Consumer | Substandard | ||||
Financing Receivable, Net | $297,000 | $266,000 | ||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmVlNGU3NjI1OTQzNzRmMDRiOTQ2NWJjZTliMjJjZThjfFRleHRTZWxlY3Rpb246QUE1NENFRDVFNTNCNTdERDgwNkQ0MTRCRjA1RDhCNkQM} | |||
[2] | Net of LIP. | |||
[3] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmVlNGU3NjI1OTQzNzRmMDRiOTQ2NWJjZTliMjJjZThjfFRleHRTZWxlY3Rpb246NjM4MjlFMkFGNUFGNUNERkI0QzE2RDFGMTMwQzBERTQM} | |||
[4] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmVlNGU3NjI1OTQzNzRmMDRiOTQ2NWJjZTliMjJjZThjfFRleHRTZWxlY3Rpb246QzNFQjA4MkZDMDJCNTYxQjk5NUFGQzMzN0JFNkM3NTMM} |
Loans_Receivable_Loans_Receiva2
Loans Receivable Loans Receivable: Rollforward of Loans with Related Parties (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loans with Related Parties Rollforward | |||
Balance at beginning of year | $548 | $498 | $545 |
Additions | 0 | 353 | 0 |
Repayments | -410 | -303 | -47 |
Balance at end of year | $138 | $548 | $498 |
Other_Real_Estate_Owned_Other_
Other Real Estate Owned - Other Real Estate, Roll Forward (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Real Estate [Roll Forward] | |||
Balance at beginning of year | $11,465 | $17,347 | $26,044 |
Loans transferred to OREO | 1,823 | 6,485 | 12,124 |
Capitalized (reimbursed) improvements | 120 | 75 | -16 |
Dispositions of OREO | -3,732 | -12,039 | -18,759 |
Market value adjustments | -393 | -403 | -2,046 |
Balance at end of year | $9,283 | $11,465 | $17,347 |
Other_Real_Estate_Owned_Detail
Other Real Estate Owned (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Other Real Estate | $9,283 | $11,465 | $17,347 | $26,044 |
One-to-four family residential | ||||
Other Real Estate | 300 | |||
Construction Land Development | ||||
Other Real Estate | 491 | |||
Commercial Real Estate | ||||
Other Real Estate | $8,500 |
Premises_and_Equipment_Details
Premises and Equipment (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $24,109 | $24,015 | |
Less accumulated depreciation and amortization | -7,375 | -6,724 | |
Property, plant and equipment, net | 16,734 | 17,291 | |
Depreciation | 755 | 799 | 976 |
Land | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 1,914 | 1,914 | |
Buildings and improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 17,820 | 17,763 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 4,368 | 4,336 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $7 | $2 |
Fair_Value_Details
Fair Value (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |
Minimum threshold for obtaining annual updated appraisals on loans | $1,000,000 |
Loans Receivable | |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |
Fair value, option, methodology and assumptions | The fair value of impaired loans is calculated using the collateral value method or on a discounted cash flow basis. Inputs used in the collateral value method include appraised values, estimates of certain completion costs and closing and selling costs. Some of these inputs may not be observable in the marketplace. |
Fair_Value_Schedule_of_Fair_Va
Fair Value: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | $120,374 | $144,364 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 120,374 | 144,364 |
Mortgage-backed investments, Fannie Mae | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 40,916 | 46,232 |
Mortgage-backed investments, Fannie Mae | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 40,916 | 46,232 |
Mortgage-backed investments, Freddie Mac | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 21,946 | 25,856 |
Mortgage-backed investments, Freddie Mac | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 21,946 | 25,856 |
Mortgage-backed investments, Ginnie Mae | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 26,013 | 33,873 |
Mortgage-backed investments, Ginnie Mae | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 26,013 | 33,873 |
Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 644 | 1,850 |
Municipal Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 644 | 1,850 |
US Government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 16,816 | 22,704 |
US Government agencies | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 16,816 | 22,704 |
Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 14,039 | 13,849 |
Corporate Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | $14,039 | $13,849 |
Fair_Value_Schedule_of_balance
Fair Value: Schedule of balances of assets and liabilities, measured at fair value on a non-recurring basis (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
OREO, Fair Value | $9,283 | $11,465 | $17,347 | $26,044 |
Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans (included in loans receivable, net), Fair Value | 54,444 | 61,985 | ||
OREO, Fair Value | 9,283 | 11,465 | ||
Total, Fair Value | 63,727 | 73,450 | ||
Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans (included in loans receivable, net), Fair Value | 54,444 | 61,985 | ||
OREO, Fair Value | 9,283 | 11,465 | ||
Total, Fair Value | $63,727 | $73,450 |
Fair_Value_Schedule_of_quantit
Fair Value: Schedule of quantitative information about Level 3 Fair Value Measurements on a nonrecurring basis (Details) (Level 3, Market Approach Valuation Technique, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Loans Receivable | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair Value | $54,365 | $61,985 |
Unobservable Input(s) | Appraised value discounted by market or borrower conditions | |
Loans Receivable | Minimum | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair value of financial instruments, range | 0.00% | 0.00% |
Loans Receivable | Maximum | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair value of financial instruments, range | 45.80% | 72.29% |
Loans Receivable | Weighted Average | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair value of financial instruments, range | 2.20% | 2.71% |
Other Real Estate Owned | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair Value | $9,283 | $11,465 |
Unobservable Input(s) | Appraised value less selling costs | |
Other Real Estate Owned | Minimum | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair value of financial instruments, range | 0.00% | 0.00% |
Other Real Estate Owned | Maximum | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair value of financial instruments, range | 19.40% | 26.35% |
Other Real Estate Owned | Weighted Average | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair value of financial instruments, range | 3.30% | 4.90% |
Fair_Value_Fair_Value_by_Balan
Fair Value: Fair Value, by Balance Sheet Grouping (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments available-for-sale | $120,374 | $144,364 |
FHLB stock | 6,745 | 7,017 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash on hand and in banks | 5,920 | 6,074 |
Interest-earning deposits | 98,129 | 49,501 |
Investments available-for-sale | 120,374 | 144,364 |
Loans receivable, net | 663,938 | 663,153 |
FHLB stock | 6,745 | 7,017 |
Accrued interest receivable | 3,265 | 3,698 |
Deposits | 201,539 | 201,658 |
Certificates of deposit, retail | 358,159 | 410,407 |
Certificates of deposit, brokered | 54,429 | |
Advances from the FHLB | 135,500 | 119,000 |
Accrued interest payable | 142 | 88 |
Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash on hand and in banks | 5,920 | 6,074 |
Interest-earning deposits | 98,129 | 49,501 |
Investments available-for-sale | 120,374 | 144,364 |
Loans receivable, net | 678,676 | 680,622 |
FHLB stock | 6,745 | 7,017 |
Accrued interest receivable | 3,265 | 3,698 |
Deposits | 201,539 | 201,658 |
Certificates of deposit, retail | 359,049 | 413,417 |
Certificates of deposit, brokered | 55,229 | |
Advances from the FHLB | 135,392 | 118,610 |
Accrued interest payable | 142 | 88 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash on hand and in banks | 5,920 | 6,074 |
Interest-earning deposits | 98,129 | 49,501 |
Investments available-for-sale | 0 | 0 |
Loans receivable, net | 0 | 0 |
FHLB stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Deposits | 201,539 | 201,658 |
Certificates of deposit, retail | 0 | 0 |
Advances from the FHLB | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash on hand and in banks | 0 | 0 |
Interest-earning deposits | 0 | 0 |
Investments available-for-sale | 120,374 | 144,364 |
Loans receivable, net | 0 | 0 |
FHLB stock | 6,745 | 7,017 |
Accrued interest receivable | 3,265 | 3,698 |
Deposits | 0 | 0 |
Certificates of deposit, retail | 359,049 | 413,417 |
Certificates of deposit, brokered | 55,229 | |
Advances from the FHLB | 135,392 | 118,610 |
Accrued interest payable | 142 | 88 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash on hand and in banks | 0 | 0 |
Interest-earning deposits | 0 | 0 |
Investments available-for-sale | 0 | 0 |
Loans receivable, net | 678,676 | 680,622 |
FHLB stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Deposits | 0 | 0 |
Certificates of deposit, retail | 0 | 0 |
Advances from the FHLB | 0 | 0 |
Accrued interest payable | $0 | $0 |
Accrued_Interest_Receivable_De
Accrued Interest Receivable (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable | ||
Interest Receivable | $3,265 | $3,698 |
Loans receivable | ||
Accounts, Notes, Loans and Financing Receivable | ||
Interest Receivable | 2,879 | 3,250 |
Investments | ||
Accounts, Notes, Loans and Financing Receivable | ||
Interest Receivable | 382 | 446 |
Interest-earning deposits | ||
Accounts, Notes, Loans and Financing Receivable | ||
Interest Receivable | $4 | $2 |
Deposits_Components_of_Deposit
Deposits - Components of Deposits (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deposits [Abstract] | ||
Noninterest-bearing | $14,354 | $10,619 |
NOW | 20,752 | 25,471 |
Statement savings | 23,901 | 20,396 |
Money market | 142,532 | 145,172 |
Certificates of deposit, retail | 358,159 | 410,407 |
Certificates of deposit, brokered | 54,429 | 0 |
Total Deposits | $614,127 | $612,065 |
Deposits_Maturities_of_Certifi
Deposits - Maturities of Certificates of Deposit (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Deposits [Abstract] | |
2015 | $184,116 |
2016 | 68,174 |
2017 | 57,323 |
2018 | 48,915 |
2019 | 47,324 |
Thereafter | 6,736 |
Time Deposits | $412,588 |
Deposits_Narrative_Details
Deposits - Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deposits [Abstract] | |||
Deposits, public funds | $15.90 | $10.80 | |
Certificates of deposit, $100,000 or more | 249.9 | 289.1 | |
Interest expense, certificates of deposit, $100,000 or more | 2.7 | 4.2 | 5.9 |
Deposits controlled by management, members of the Board of Directors and related entities | $2.70 | $1.90 |
Deposits_Interest_Expense_on_D
Deposits - Interest Expense on Deposit Liabilities (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deposits [Abstract] | |||
NOW | $23 | $30 | $21 |
Statement savings | 30 | 31 | 36 |
Money market | 311 | 291 | 466 |
Certificates of deposit, retail | 4,388 | 6,442 | 9,668 |
Certificates of deposit, brokered | 311 | 0 | 0 |
Interest expense, deposits | $5,063 | $6,794 | $10,191 |
Other_Borrowings_Details
Other Borrowings (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Maximum line of credit with FHLB | $227,300,000 | $220,900,000 | |
Outstanding advances from FHLB | 135,500,000 | 119,000,000 | 83,066,000 |
Unused credit facility with another financial institution | 50,000,000 | ||
Single Family Residential Mortgages | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investments pledged as collateral for FHLB advances | 171,700,000 | 170,600,000 | |
Commercial Real Estate | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investments pledged as collateral for FHLB advances | 105,800,000 | 89,600,000 | |
Mulitfamily Loans Under Blanket Lien Arrangement | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Investments pledged as collateral for FHLB advances | 74,200,000 | 66,300,000 | |
Zero Point Seven One Advance Due October Two Thousand Fifteen [Member] [Domain] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Outstanding advances from FHLB | 10,000,000 | 10,000,000 | |
Advances, Fixed Interest Rate | 0.71% | 0.71% | |
Zero Point Eight One Percent Advance Maturing Due March Two Thousand Sixteen [Member] [Domain] [Domain] [Domain] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Outstanding advances from FHLB | 34,000,000 | 34,000,000 | |
Advances, Fixed Interest Rate | 0.81% | 0.81% | |
Zero Point Seventy Percent Advance Maturing Due May Two Thousand Sixteen [Member] [Domain] [Domain] [Domain] [Domain] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Outstanding advances from FHLB | 20,000,000 | 20,000,000 | |
Advances, Fixed Interest Rate | 0.70% | 0.70% | |
One Point Zero Two Percent Advance Maturing Due October Two Thousand Sixteen [Member] [Domain] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Outstanding advances from FHLB | 10,000,000 | 10,000,000 | |
Advances, Fixed Interest Rate | 1.02% | 1.02% | |
Zero Point Eight Four Percent Advance Maturing Due November Two Thousand Sixteen [Member] [Domain] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Outstanding advances from FHLB | 20,000,000 | 20,000,000 | |
Advances, Fixed Interest Rate | 0.84% | 0.84% | |
Zero Point Eight Seven Percent Advance Maturing Due April Two Thousand Seventeen [Member] [Domain] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Outstanding advances from FHLB | 20,000,000 | 20,000,000 | |
Advances, Fixed Interest Rate | 0.87% | 0.87% | |
One Point Seven Six Percent Advance Maturing Due November Two Thousand Eighteen [Member] [Domain] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Outstanding advances from FHLB | 5,000,000 | 5,000,000 | |
Advances, Fixed Interest Rate | 1.76% | 1.76% | |
One Point five Two Percent Advance Due June Two Thousand Eighteen [Domain] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Outstanding advances from FHLB | 6,500,000 | ||
Advances, Fixed Interest Rate | 1.52% | ||
One Point Seven Zero Percent Advance Due May Two Thousand Nineteen [Domain] [Domain] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Outstanding advances from FHLB | 10,000,000 | ||
Advances, Fixed Interest Rate | 1.70% | ||
Two Point One Seven Percent Advance Maturing January Two Thousand and Thirteen [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Outstanding advances from FHLB | 50,000,000 | ||
Advances, Fixed Interest Rate | 2.17% | ||
Three Point Three Eight Percent Advance Maturing December Two Thousand and Thirteen [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Outstanding advances from FHLB | 7,450,000 | ||
Advances, Fixed Interest Rate | 3.38% | ||
Two Point Nine Four Percent Advance Maturing December Two Thousand and Thirteen [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Outstanding advances from FHLB | 20,000,000 | ||
Advances, Fixed Interest Rate | 2.94% | ||
Two Point Six Four Percent Advance Maturing December Two Thousand and Thirteen [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Outstanding advances from FHLB | 700,000 | ||
Advances, Fixed Interest Rate | 2.64% | ||
Two Point Nine Eight Percent Advance Maturing April Two Thousand and Fourteen [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Outstanding advances from FHLB | 1,750,000 | ||
Advances, Fixed Interest Rate | 2.98% | ||
One Point Eight Nine Percent Advance Maturing July Two Thousand and Fifteen [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Outstanding advances from FHLB | $3,166,000 | ||
Advances, Fixed Interest Rate | 1.89% |
Benefit_Plans_Multiemployer_Pe
Benefit Plans Multiemployer Pension Plans (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 28, 2014 | Sep. 25, 2014 | Dec. 20, 2013 | Dec. 05, 2013 | Sep. 18, 2013 | Dec. 04, 2012 | Oct. 29, 2012 | Nov. 22, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | ||
Multiemployer Plans [Line Items] | ||||||||||||||
First Financial Northwest's Plan | 105.30% | [1] | 100.80% | |||||||||||
Deferred compensation expense | $170,000 | $159,000 | $69,000 | |||||||||||
Pentegra DB Plan | ||||||||||||||
Multiemployer Plans [Line Items] | ||||||||||||||
Contributions by employer | 548,667,000 | 229,387,000 | 1,327,552,000 | 539,932,000 | 8,735,000 | 159,080,000 | 43,979,000 | 26,328,000 | 1,143,404,000 | 184,148,000 | ||||
Multiemployer Plans, Pension | Pentegra DB Plan | ||||||||||||||
Multiemployer Plans [Line Items] | ||||||||||||||
Assumptions used calculating net periodic benefit cost | 6.49% | 6.33% | ||||||||||||
Maximum contribution rate | 5.00% | |||||||||||||
Total contributions made to plan | $136,500,000 | $196,500,000 | ||||||||||||
[1] | Market value of plan assets reflects any contributions received through June 30, 2014, or 2013, respectively. |
Benefit_Plans_401K_Plan_Detail
Benefit Plans 401(K) Plan (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Number of days of continuous employment to be eligible | 90 days | ||
Maximum annual contribution by employee | 6.00% | ||
Employer match | 50.00% | ||
Contributions by employer | $161 | $155 | $159 |
Benefit_Plans_Employee_Stock_O
Benefit Plans Employee Stock Ownership Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Compensation and Retirement Disclosure [Abstract] | |||
ESOP contribution expense | $1,216,000 | $1,087,000 | $860,000 |
Dividends on unallocated ESOP shares used to reduce ESOP contribution | 197,000 | 132,000 | 0 |
Allocated shares | 818,187 | 705,333 | |
Unallocated shares | 874,613 | 987,467 | |
Total ESOP shares | 1,692,800 | 1,692,800 | |
Fair value of unallocated shares | 10,530,000 | 10,240,000 | |
Textuals [Abstract] | |||
Amount borrowed by ESOP | 16,900,000 | ||
Shares acquired by ESOP | 1,692,800 | ||
Price per share of shares acquired by ESOP | $10 | ||
Fixed interest rate ESOP debt | 4.88% | ||
Principal and interest payments from ESOP | $1,600,000 | $1,600,000 | $1,600,000 |
Benefit_Plans_StockBased_Compe
Benefit Plans Stock-Based Compensation - Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Total compensation expense | $384,000 | $1,400,000 | $2,000,000 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Description | The Plan authorized the grant of stock options amounting to 2,285,280 shares to Company directors, advisory directors, officers, and employees. Option awards are granted with an exercise price equal to the market price of First Financial Northwest's common stock at the grant date. | ||
Share-based Compensation Arrangement by Share-based Payment | These option awards have a vesting period of five years, with 20% vesting on the anniversary date of each grant date, and a contractual life of ten years. Any unexercised stock options will expire ten years after the grant date, or sooner in the event of the award recipientbs death, disability or termination of service with the Company. | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Description | The Plan authorized the grant of restricted stock awards amounting to 914,112 shares to directors, advisory directors, officers and employees. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at the grant date. The restricted stock awardsb fair value is equal to the value on the grant date. Shares awarded as restricted stock vest ratably over a five-year period beginning at the grant date with 20% vesting on the anniversary date of each grant date. | ||
First Financial Northwest, Inc. 2008 Equity Incentive Plan | |||
Compensation expense, related tax benefit | -134,000 | -496,000 | 696,000 |
First Financial Northwest, Inc. 2008 Equity Incentive Plan | Stock Options | |||
Stock options granted (shares) | 2,285,280 | ||
Award vesting period | 5 years | ||
Percentage vesting per annum | 20.00% | ||
Contractual life | 10 years | ||
Number of shares remaining for grant | 671,756 | ||
Unrecognized compensation cost | 792,617 | ||
Unrecognized compensation cost recognition period | 3 years 10 months 20 days | ||
First Financial Northwest, Inc. 2008 Equity Incentive Plan | Restricted Stock | |||
Stock options granted (shares) | 914,112 | ||
Award vesting period | 5 years | ||
Percentage vesting per annum | 20.00% | ||
Number of shares remaining for grant | 74,478 | ||
Unrecognized compensation cost | 550,672 | ||
Unrecognized compensation cost recognition period | 2 years 11 months 24 days | ||
Stock Repurchased During Period, Shares | 75,600 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | $212,000 | $1,500,000 |
Benefit_Plans_Fair_Value_Assum
Benefit Plans Fair Value Assumptions and Methodology (Details) (First Financial Northwest, Inc. 2008 Equity Incentive Plan, Stock Options, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
First Financial Northwest, Inc. 2008 Equity Incentive Plan | Stock Options | |||
Fair Value, Option, Methodology and Assumptions | Black-Scholes model | ||
Annual dividend yield | 1.86% | 1.35% | 0.00% |
Expected volatility | 37.27% | 34.05% | 29.95% |
Risk-free interest rate | 2.44% | 2.18% | 1.10% |
Expected term | 10 years 0 months | 8 years 1 month | 6 years 6 months |
Weighted-average grant date fair value per option granted | $4.13 | $3.70 | $2.60 |
Benefit_Plans_Disclosure_of_Sh
Benefit Plans Disclosure of Share-based Compensation Arrangements by Share-based Payment Award (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Exercised | -369,275 | -314,989 | |
First Financial Northwest, Inc. 2008 Equity Incentive Plan | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at beginning balance | 1,203,535 | ||
Granted | 95,000 | ||
Exercised | -369,275 | ||
Outstanding at ending balance | 929,260 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding beginning balance, Weighted Average Exercise Price | $9.49 | ||
Granted | $10.78 | ||
Exercised | $9.78 | ||
Outstanding ending balance, Weighted Average Exercise Price | $9.51 | ||
Share-based Compensations Arrangement by Share-based Payment Award, Options Outstanding, Weighted Average Remaining Contractual Term [Roll Forward] | |||
Outstanding ending balance, Weighted Average Remaining Contractual Term | 5 years 3 months 18 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options Outstanding, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Outstanding beginning balance, Weighted Average Grant Date Fair Value | $2.11 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block] | 4.13 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercised in Period, Weighted Average Fair Value | $1.92 | ||
Outstanding ending balance, Weighted Average Grant Date Fair Value | $2.40 | ||
Share Based Compensation, Stock Option Plan, Additional Disclosures [Abstract] | |||
Outstanding beginning balance, Agregate Intrinsic Value | $1,103,186 | ||
Exercised | 316,763 | ||
Outstanding ending balance, Agregate Intrinsic Value | 2,351,328 | ||
Expected to Vest, Shares | 921,670 | ||
Expected to Vest, Weighted Average Exercise Price | $9.51 | ||
Expected to Vest, Weighted Average Remaining Contracutal Term in Years | 5 years 3 months 7 days | ||
Expected to Vest, Aggregate Intrinsic Value | 2,334,915 | ||
Share based compensation award share based payment options expected to vest weighted average grant date fair value | $2,390 | ||
Exercisable ending balance, Shares | 676,260 | ||
Exercisable ending balance, Weighted Average Exercise Price | 9.37 | ||
Exercisable ending balance, Weighted Average Remaining Contracutal Term in Years | 4 years 0 months 14 days | ||
Exercisable ending balance, Aggregate Intrinsic Value | $1,804,248 | ||
Share based compensation award share based payment options exercisable weighted average grant date fair value | $1,980 | ||
First Financial Northwest, Inc. 2008 Equity Incentive Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested beginning balance, Shares | 103,400 | 244,847 | 310,494 |
Granted, Shares | 25,000 | 82,000 | |
Vested, Shares | -27,800 | -156,047 | -143,647 |
Forfeited, Shares | -10,400 | -4,000 | |
Nonvested ending balance, Shares | 75,600 | 103,400 | 244,847 |
Expected to vest assuming a 3% forfeiture rate over the vesting term, Shares | 73,332 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Nonvested beginning balance, Weighted-Average Grant Date Fair Value | $8.24 | $8.95 | $9.66 |
Granted, Weighted-Average Grant Date Fair Value | $10.88 | $8.06 | |
Vested, Weighted-Average Grant Date Fair Value | $7.64 | $9.72 | $9.93 |
Forfeited, Weighted-Average Grant Date Fair Value | $9.12 | $10.35 | |
Nonvested ending balance, Weighted-Average Grant Date Fair Value | $8.47 | $8.24 | $8.95 |
Federal_Income_Taxes_Details
Federal Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Tax Credit Carryforward [Line Items] | |||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Net operating loss carryforward | $8.70 | ||
Net capital loss carryforwards | 1.3 | ||
Unrecognized taxable temporary difference | 4.5 | ||
Alternative Minimum Tax Credit Carryforward | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforward | $1.90 |
Federal_Income_Taxes_Component
Federal Income Taxes: Components of The Income Tax Provision (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Current | $254 | $199 | $1 |
Deferred | 5,602 | -13,742 | -1,000 |
Total income tax expense (benefit) | $5,856 | ($13,543) | ($999) |
Federal_Income_Taxes_Reconcili
Federal Income Taxes: Reconciliation From Tax At the Statutory Rate to the Income Tax Provision (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Income tax expense at statutory rate | $5,790 | $3,823 | $600 |
Tax exempt interest, net | -8 | -21 | -20 |
Change in valuation allowance | 19 | -17,329 | -6,347 |
Expiration of FFNW Foundation donation | 0 | 0 | 4,778 |
Other, net | 55 | -16 | -10 |
Total income tax expense (benefit) | $5,856 | ($13,543) | ($999) |
Federal_Income_Taxes_Deferred_
Federal Income Taxes: Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Deferred tax assets: | |||
Net operating loss carryforward | $3,052 | $7,441 | $11,474 |
Charitable contributions | 2 | 27 | 25 |
ALLL | 3,599 | 4,454 | 3,829 |
Reserve for unfunded commitments | 128 | 121 | 87 |
Deferred compensation | 688 | 698 | 689 |
Net unrealized loss on investments available for sale | 0 | 463 | 0 |
Alternative minimum tax credit carryforward | 1,939 | 1,685 | 1,485 |
Employee benefit plans | 1,535 | 1,701 | 1,910 |
Net capital loss on investments | 450 | 431 | 545 |
OREO market value adjustments | 414 | 392 | 731 |
OREO expenses | 0 | 122 | 202 |
Accrued expenses | 165 | 163 | 142 |
Deferred tax assets before valuation allowance | 11,972 | 17,698 | 21,119 |
Valuation allowance | -450 | -431 | -16,851 |
Total deferred tax assets | 11,522 | 17,267 | 4,268 |
Deferred tax liabilities: | |||
FHLB stock dividends | 1,337 | 1,337 | 1,337 |
Loan origination fees and costs | 744 | 592 | 621 |
Net unrealized gain on investments available for sale | 432 | 0 | 538 |
Other, net | 671 | 503 | 772 |
Total deferred tax liabilities | 3,184 | 2,432 | 3,268 |
Deferred tax assets, net | $8,338 | $14,835 | $1,000 |
Regulatory_Capital_Requirement2
Regulatory Capital Requirements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Regulatory Capital Requirements [Abstract] | ||
Capital | $116,053 | $174,732 |
Capital to Risk Weighted Assets | 19.56% | 28.44% |
Capital Required for Capital Adequacy | 47,469 | 49,146 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Capital Required to be Well Capitalized | 59,336 | 61,433 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Tier One Risk Based Capital | 108,596 | 166,988 |
Tier One Risk Based Capital to Risk Weighted Assets | 18.30% | 27.18% |
Tier One Risk Based Capital Required for Capital Adequacy | 23,734 | 24,573 |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.00% | 4.00% |
Tier One Risk Based Capital Required to be Well Capitalized | 35,602 | 36,860 |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 6.00% | 6.00% |
Tier One Leverage Capital | 108,596 | 166,988 |
Tier One Leverage Capital to Average Assets | 11.79% | 18.60% |
Tier One Leverage Capital Required for Capital Adequacy | 36,849 | 35,903 |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Tier One Leverage Capital Required to be Well Capitalized | $46,061 | $44,879 |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Committment to extend credit | $43.90 | $35.20 |
Commitments to originate loans | $2.10 |
Parent_Company_Only_Financial_2
Parent Company Only Financial Statements Condensed Parent Company Only Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash and cash equivalents | $5,920 | $6,074 | |
Interest-earning deposits | 98,129 | 49,501 | |
Deferred tax assets, net | 8,338 | 14,835 | 1,000 |
Total assets | 936,997 | 920,979 | |
Other liabilities | 4,109 | 3,625 | |
Total liabilities | 755,585 | 736,624 | |
Total stockholders' equity | 181,412 | 184,355 | |
Total liabilities and stockholders' equity | 936,997 | 920,979 | |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash and cash equivalents | 97 | 84 | |
Interest-earning deposits | 64,374 | 9,127 | |
Investment in First Savings Bank | 108,239 | 164,968 | |
Investment in First Financial Diversified, Inc. | 6,173 | 8,336 | |
Receivable from subsidiaries | 1,589 | 1,536 | |
Deferred tax assets, net | 1,124 | 0 | |
Other assets | 51 | 619 | |
Total assets | 181,647 | 184,670 | |
Payable to subsidiaries | 116 | 66 | |
Other liabilities | 119 | 249 | |
Total liabilities | 235 | 315 | |
Total stockholders' equity | 181,412 | 184,355 | |
Total liabilities and stockholders' equity | $181,647 | $184,670 |
Parent_Company_Only_Financial_3
Parent Company Only Financial Statements Condensed Parent Company Only Income Statement (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Interest-bearing deposits with banks | $115 | $79 | $367 | ||||||||||||
Total interest income | 9,606 | 9,736 | 9,695 | 9,652 | 9,768 | 9,549 | 9,684 | 9,538 | 9,748 | 10,157 | 10,399 | 11,162 | 38,689 | 38,539 | 41,466 |
Total interest expense | 1,609 | 1,517 | 1,517 | 1,598 | 1,694 | 1,804 | 1,879 | 2,149 | 2,710 | 2,946 | 3,138 | 3,452 | 6,241 | 7,526 | 12,246 |
Loss before provision for federal income taxes and equity in undistributed earnings of subsidiaries | 4,584 | 4,197 | 3,664 | 4,098 | 4,276 | 2,477 | 2,554 | 1,615 | 1,511 | -839 | 372 | 670 | 16,543 | 10,922 | 1,714 |
Federal income tax provision (benefit) | 1,644 | 1,462 | 1,297 | 1,453 | 342 | -135 | -13,809 | 59 | 0 | -48 | -999 | 48 | 5,856 | -13,543 | -999 |
Net income | 2,940 | 2,735 | 2,367 | 2,645 | 3,934 | 2,612 | 16,363 | 1,556 | 1,511 | -791 | 1,371 | 622 | 10,687 | 24,465 | 2,713 |
Parent Company [Member] | |||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Interest-bearing deposits with banks | 26 | 27 | 58 | ||||||||||||
Other Income | 8 | 12 | |||||||||||||
Total interest income | 34 | 39 | 58 | ||||||||||||
Total interest expense | 1,475 | 1,756 | 1,793 | ||||||||||||
Loss before provision for federal income taxes and equity in undistributed earnings of subsidiaries | -1,441 | -1,717 | -1,735 | ||||||||||||
Federal income tax provision (benefit) | -573 | -619 | 0 | ||||||||||||
Loss before equity in undistributed loss of subsidiaries | -868 | -1,098 | -1,735 | ||||||||||||
Equity in undistributed earnings of subsidiaries | 11,555 | 25,563 | 4,448 | ||||||||||||
Net income | $10,687 | $24,465 | $2,713 |
Parent_Company_Only_Financial_4
Parent Company Only Financial Statements Condensed Parent Company Only Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||
Net income | $10,687 | $24,465 | $2,713 |
ESOP, stock options, and restricted stock compensation | 384 | 1,416 | 1,987 |
Change in deferred tax assets, net | 5,602 | -13,742 | -1,000 |
Change in other assets | -690 | 1,418 | 105 |
Changes in other liabilities | 484 | -685 | 1,248 |
Net cash provided by operating activities | 18,585 | 15,205 | 13,227 |
Net cash provided in investing activities | 28,220 | -2,611 | 32,621 |
Proceeds from stock options exercises | 3,611 | 3,023 | 0 |
Repurchase and retirement of common stock | -17,566 | -28,090 | 0 |
Dividends paid | -2,938 | -1,895 | 0 |
Net cash used by financing activities | 1,669 | -44,760 | -122,868 |
Net increase (decrease) in cash | 48,474 | -32,166 | -77,020 |
Cash and cash equivalents at beginning of year | 55,575 | 87,741 | 164,761 |
Cash and cash equivalents at end of year | 104,049 | 55,575 | 87,741 |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income | 10,687 | 24,465 | 2,713 |
Equity in undistributed earnings of subsidiaries | -11,555 | -25,563 | -4,448 |
Dividends received from subsidiary | 72,300 | 14,491 | 0 |
ESOP, stock options, and restricted stock compensation | 13 | 48 | 0 |
Change in deferred tax assets, net | -540 | -584 | 0 |
Change in receivables from subsidiaries | 8 | -12 | 0 |
Change in payables to subsidiaries | 50 | 66 | 0 |
Change in other assets | -16 | 119 | -113 |
Changes in other liabilities | -130 | -38 | 260 |
Net cash provided by operating activities | 70,817 | 12,992 | -1,588 |
Investments in subsidiaries | 0 | 71 | 0 |
ESOP loan repayment | 1,054 | 1,011 | 963 |
Net cash provided in investing activities | 1,054 | 1,082 | 963 |
Proceeds from stock options exercises | 3,611 | 3,023 | |
Proceeds for vested awards | 282 | 1,508 | 1,427 |
Repurchase and retirement of common stock | -17,566 | -28,090 | 0 |
Dividends paid | -2,938 | -1,895 | 0 |
Net cash used by financing activities | -16,611 | -25,454 | 1,427 |
Net increase (decrease) in cash | 55,260 | -11,380 | 802 |
Cash and cash equivalents at beginning of year | 9,211 | 20,591 | 19,789 |
Cash and cash equivalents at end of year | $64,471 | $9,211 | $20,591 |
Earnings_Per_Share_Schedule_of1
Earnings Per Share: Schedule of Earnings Per Share Reconciliation (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||||||
Net income | $2,940 | $2,735 | $2,367 | $2,645 | $3,934 | $2,612 | $16,363 | $1,556 | $1,511 | ($791) | $1,371 | $622 | $10,687 | $24,465 | $2,713 |
Earnings allocated to participating securities | -52 | -150 | -35 | ||||||||||||
Earnings allocated to common shareholders | $10,635 | $24,315 | $2,678 | ||||||||||||
Basic weighted-average common shares outstanding | 14,747,086 | 16,580,882 | 17,643,978 | ||||||||||||
Dilutive effect of stock options | 116,624 | 28,985 | 18,445 | ||||||||||||
Dilutive effect of restricted stock grants | 23,488 | 0 | 0 | ||||||||||||
Diluted weighted-average common shares outstanding | 14,887,198 | 16,609,867 | 17,662,423 | ||||||||||||
Basic earnings (loss) per share (usd per share) | $0.20 | $0.19 | $0.16 | $0.17 | $0.25 | $0.16 | $0.96 | $0.09 | $0.09 | ($0.04) | $0.08 | $0.04 | $0.72 | $1.47 | $0.15 |
Diluted earnings (loss) per share (usd per share) | $0.20 | $0.19 | $0.16 | $0.17 | $0.25 | $0.16 | $0.95 | $0.09 | $0.09 | ($0.04) | $0.08 | $0.04 | $0.71 | $1.46 | $0.15 |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share | 205,000 | 1,311,433 | 1,398,524 |
Other_Comprehensive_Income_Det
Other Comprehensive Income (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net of tax amount | ($357) | ($2,020) | $748 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net unrealized gains (losses) on investments available-for-sale | 1,234 | -1,324 | 1,537 |
Tax effect | $1,591 | $696 | $789 |
Summarized_Consolidated_Quarte2
Summarized Consolidated Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Data [Abstract] | |||||||||||||||
Total interest income | $9,606 | $9,736 | $9,695 | $9,652 | $9,768 | $9,549 | $9,684 | $9,538 | $9,748 | $10,157 | $10,399 | $11,162 | $38,689 | $38,539 | $41,466 |
Total interest expense | 1,609 | 1,517 | 1,517 | 1,598 | 1,694 | 1,804 | 1,879 | 2,149 | 2,710 | 2,946 | 3,138 | 3,452 | 6,241 | 7,526 | 12,246 |
Net interest income | 7,997 | 8,219 | 8,178 | 8,054 | 8,074 | 7,745 | 7,805 | 7,389 | 7,038 | 7,211 | 7,261 | 7,710 | 32,448 | 31,013 | 29,220 |
Recapture of provision for loan losses | -1,200 | -300 | -100 | -500 | -200 | 0 | 100 | 0 | 0 | 700 | 650 | 1,700 | -2,100 | -100 | 3,050 |
Net interest income after recapture of provision for loan losses | 9,197 | 8,519 | 8,278 | 8,554 | 8,274 | 7,745 | 7,705 | 7,389 | 7,038 | 6,511 | 6,611 | 6,010 | 34,548 | 31,113 | 26,170 |
Total noninterest income | 156 | 186 | 88 | 68 | 372 | 120 | 155 | 104 | 118 | 107 | 330 | 281 | 498 | 891 | 974 |
Total noninterest expense | 4,769 | 4,508 | 4,702 | 4,524 | 4,370 | 5,388 | 5,306 | 5,878 | 5,645 | 7,457 | 6,569 | 5,621 | 18,503 | 21,082 | 25,430 |
Income before provision for income taxes | 4,584 | 4,197 | 3,664 | 4,098 | 4,276 | 2,477 | 2,554 | 1,615 | 1,511 | -839 | 372 | 670 | 16,543 | 10,922 | 1,714 |
Provision for federal income tax expense | 1,644 | 1,462 | 1,297 | 1,453 | 342 | -135 | -13,809 | 59 | 0 | -48 | -999 | 48 | 5,856 | -13,543 | -999 |
Net income | $2,940 | $2,735 | $2,367 | $2,645 | $3,934 | $2,612 | $16,363 | $1,556 | $1,511 | ($791) | $1,371 | $622 | $10,687 | $24,465 | $2,713 |
Basic earnings (loss) per share (usd per share) | $0.20 | $0.19 | $0.16 | $0.17 | $0.25 | $0.16 | $0.96 | $0.09 | $0.09 | ($0.04) | $0.08 | $0.04 | $0.72 | $1.47 | $0.15 |
Diluted earnings (loss) per share (usd per share) | $0.20 | $0.19 | $0.16 | $0.17 | $0.25 | $0.16 | $0.95 | $0.09 | $0.09 | ($0.04) | $0.08 | $0.04 | $0.71 | $1.46 | $0.15 |