Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 07, 2018 | Jun. 30, 2017 | |
Document and Entity Information | |||
Entity Registrant Name | First Financial Northwest, Inc. | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,401,564 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 10,748,437 | ||
Entity Public Float | $ 150,830,985 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
FIRST FINANCIAL NORTHWEST, INC.
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash on hand and in banks | $ 9,189 | $ 5,779 |
Interest-earning deposits with banks | 6,942 | 25,573 |
Investments available-for-sale, at fair value | 132,242 | 129,260 |
Loans receivable, net of allowance of $12,882 and $10,951 | 988,662 | 815,043 |
Federal Home Loan Bank (“FHLB”) stock, at cost | 9,882 | 8,031 |
Accrued interest receivable | 4,084 | 3,147 |
Deferred tax assets, net | 1,211 | 3,142 |
Other real estate owned (“OREO”) | 483 | 2,331 |
Premises and equipment, net | 20,614 | 18,461 |
Bank owned life insurance (“BOLI”), net | 29,027 | 24,153 |
Prepaid expenses and other assets | 5,738 | 2,664 |
Goodwill | 889 | 0 |
Core deposit intangible | 1,266 | 0 |
Total assets | 1,210,229 | 1,037,584 |
Liabilities and Stockholders’ Equity | ||
Interest-bearing deposits | 45,434 | 33,422 |
Interest-bearing Deposit Liabilities | 794,068 | 684,054 |
Total deposits | 839,502 | 717,476 |
Advances from the FHLB | 216,000 | 171,500 |
Advance payments from borrowers for taxes and insurance | 2,515 | 2,259 |
Accrued interest payable | 326 | 231 |
Other liabilities | 9,252 | 7,993 |
Total liabilities | 1,067,595 | 899,459 |
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 | 107 | 109 |
Additional paid-in capital | 94,173 | 96,852 |
Retained earnings, substantially restricted | 54,642 | 48,981 |
Accumulated other comprehensive loss, net of tax benefit | (928) | (1,328) |
Unearned Employee Stock Ownership Plan (“ESOP”) shares | (5,360) | (6,489) |
Total stockholders’ equity | 142,634 | 138,125 |
Total liabilities and stockholders’ equity | $ 1,210,229 | $ 1,037,584 |
FIRST FINANCIAL NORTHWEST, INC3
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Loans receivable allowance for loan losses | $ 12,882 | $ 10,951 |
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 | 10,748,437 | 10,938,251 |
Common stock shares outstanding | 10,748,437 | 10,938,251 |
FIRST FINANCIAL NORTHWEST, INC4
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income | |||
Loans, including fees | $ 43,607 | $ 38,218 | $ 34,612 |
Investments available-for-sale | 3,504 | 3,054 | 2,242 |
Interest-earning deposits with banks | 237 | 235 | 274 |
Dividends on FHLB stock | 296 | 202 | 69 |
Total interest income | 47,644 | 41,709 | 37,197 |
Interest expense | |||
Deposits | 7,517 | 6,101 | 5,478 |
FHLB advances | 2,505 | 1,406 | 1,273 |
Total interest expense | 10,022 | 7,507 | 6,751 |
Net interest income | 37,622 | 34,202 | 30,446 |
Provision (recapture of provision) for loan losses | (400) | 1,300 | (2,200) |
Net interest income after (recapture of provision) provision for loan losses | 38,022 | 32,902 | 32,646 |
Noninterest income | |||
Net (loss) gain on sale of investments | (567) | 50 | 92 |
Bank Owned Life Insurance Income | 623 | 844 | 533 |
Brokerage Commissions Revenue | 919 | 813 | 183 |
Fees and Commissions | 446 | 261 | 208 |
Bank Servicing Fees | 776 | 671 | 151 |
Other | 11 | 12 | 112 |
Total noninterest income | 2,208 | 2,651 | 1,279 |
Noninterest expense | |||
Salaries and employee benefits | 17,773 | 15,377 | 13,940 |
Occupancy and equipment | 2,506 | 1,984 | 1,440 |
Professional fees | 1,809 | 1,979 | 1,631 |
Data processing | 1,457 | 911 | 759 |
Loss (gain) on sale of OREO property, net | (110) | 87 | (526) |
OREO market value adjustments | 50 | 257 | 41 |
Foreclosed Real Estate Recovery (Expense), Net | (67) | 294 | (484) |
Regulatory assessments | 491 | 420 | 470 |
Insurance and bond premiums | 399 | 349 | 359 |
Marketing | 270 | 194 | 211 |
Other general and administrative | 2,171 | 1,441 | 1,552 |
Total noninterest expense | 26,809 | 22,949 | 19,878 |
Income before provision for federal income taxes | 13,421 | 12,604 | 14,047 |
Federal income tax provision | 4,942 | 3,712 | 4,887 |
Net income | $ 8,479 | $ 8,892 | $ 9,160 |
Basic earnings (loss) per share (usd per share) | $ 0.82 | $ 0.75 | $ 0.67 |
Diluted earnings (loss) per share (usd per share) | $ 0.81 | $ 0.74 | $ 0.67 |
Weighted average number of common shares outstanding (in shares) | 10,289,049 | 11,868,278 | 13,528,393 |
Weighted average number of diluted shares outstanding (in shares) | 10,437,449 | 12,028,428 | 13,685,982 |
FIRST FINANCIAL NORTHWEST, INC5
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income | $ 8,479 | $ 8,892 | $ 9,160 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | (207) | (1,669) | (1,016) |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | (72) | (584) | (356) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | (567) | 50 | 92 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | (198) | 18 | 32 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 192 | 1,333 | 0 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | (67) | (467) | 0 |
Other comprehensive income (loss), net of tax | 359 | (251) | (720) |
Total comprehensive income | $ 8,838 | $ 8,641 | $ 8,440 |
FIRST FINANCIAL NORTHWEST, INC6
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), net of tax | Unearned ESOP Shares |
Balances at beginning of period - shares at Dec. 31, 2014 | 15,167,381 | |||||
Balances at beginning of period - amount at Dec. 31, 2014 | $ 181,412 | $ 151 | $ 153,395 | $ 36,969 | $ (357) | $ (8,746) |
Increase (Decrease) in Stockholders' Equity | ||||||
Total other comprehensive income, net of tax - amount | 8,440 | 9,160 | (720) | |||
Cash dividends declared and paid | (3,237) | (3,237) | ||||
Net income | $ 9,160 | |||||
Exercise of stock options - shares | 125,000 | |||||
Exercise of stock options - amount | $ 935 | 1 | 934 | |||
Repurchase and retirement of common stock (shares) | (1,523,567) | |||||
Repurchase and retirement of common stock | $ (18,717) | $ (14) | (18,703) | |||
Stock compensation expense | 440 | 440 | ||||
Allocation of ESOP shares | 1,400 | 272 | 1,128 | |||
Issuance of common stock - restricted stock awards, net | 0 | |||||
Stock compensation expense | 440 | |||||
Balances at end of period - shares at Dec. 31, 2015 | 13,768,814 | |||||
Balances at end of period - amount at Dec. 31, 2015 | 170,673 | $ 138 | 136,338 | 42,892 | (1,077) | (7,618) |
Increase (Decrease) in Stockholders' Equity | ||||||
Total other comprehensive income, net of tax - amount | 8,641 | |||||
Cash dividends declared and paid | (2,803) | (2,803) | 0 | |||
Net income | 8,892 | 8,892 | ||||
Other comprehensive income | $ (251) | (251) | ||||
Exercise of stock options - shares | 101,303 | |||||
Exercise of stock options - amount | $ 298 | 1 | 297 | |||
Repurchase and retirement of common stock (shares) | (2,864,389) | |||||
Repurchase and retirement of common stock | $ (40,812) | (29) | (40,783) | |||
Allocation of ESOP shares | $ 1,605 | 476 | 1,129 | |||
Issuance of common stock - restricted stock awards, net | 7,001 | |||||
Issuance of common stock - restricted stock awards, net | $ (98) | 98 | ||||
Stock compensation expense | $ 621 | 621 | ||||
Canceled common stock - restricted stock awards | (74,478) | |||||
Canceled common stock - restricted stock awards | $ 0 | $ (1) | (1) | |||
Balances at end of period - shares at Dec. 31, 2016 | 10,938,251 | 10,938,251 | ||||
Balances at end of period - amount at Dec. 31, 2016 | $ 138,125 | $ 109 | 96,852 | 48,981 | (1,328) | (6,489) |
Increase (Decrease) in Stockholders' Equity | ||||||
Total other comprehensive income, net of tax - amount | 8,838 | |||||
Cash dividends declared and paid | (2,777) | |||||
Net income | 8,479 | 8,479 | ||||
Other comprehensive income | $ 359 | 359 | ||||
Exercise of stock options - shares | 134,880 | |||||
Exercise of stock options - amount | $ 1,309 | 2 | 1,307 | |||
Repurchase and retirement of common stock (shares) | (326,800) | |||||
Repurchase and retirement of common stock | $ (5,238) | $ (4) | (5,234) | |||
Allocation of ESOP shares | $ 1,941 | 812 | 1,129 | |||
Issuance of common stock - restricted stock awards, net | 10,434 | |||||
Issuance of common stock - restricted stock awards, net | $ (138) | 138 | ||||
Stock compensation expense | $ 574 | 574 | ||||
Canceled common stock - restricted stock awards | (8,328) | |||||
Canceled common stock - restricted stock awards | $ 0 | |||||
Cash dividends declared and paid | 2,777 | |||||
Reclassification of stranded OCI for tax rate change | $ 0 | (41) | 41 | |||
Balances at end of period - shares at Dec. 31, 2017 | 10,748,437 | 10,748,437 | ||||
Balances at end of period - amount at Dec. 31, 2017 | $ 142,634 | $ 107 | $ 94,173 | $ 54,642 | $ (928) | $ (5,360) |
FIRST FINANCIAL NORTHWEST, INC7
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMETNS OF STOCKHOLDERS' EQUITY (PARENTHETICALS) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividend declared and paid per share (usd per share) | $ 0.0027 | $ 0.0024 | $ 0.0024 |
Allocated shares | 112,854 | 112,853 | 112,853 |
FIRST FINANCIAL NORTHWEST, INC8
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net income | $ 8,479,000 | $ 8,892,000 | $ 9,160,000 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Provision (recapture of provision) for loan losses | (400,000) | 1,300,000 | (2,200,000) |
OREO market value adjustments | 50,000 | 257,000 | 41,000 |
(Gain) loss on sale of OREO property, net | (110,000) | 87,000 | (526,000) |
Net amortization of premiums and discounts on investments | 721,000 | 908,000 | 1,104,000 |
Loss (gain) on sale of investments available-for-sale | 567,000 | (50,000) | (92,000) |
Depreciation of premises and equipment | 1,262,000 | 1,076,000 | 809,000 |
Loss on sale of premises and equipment | 65,000 | 3,000 | 0 |
Deferred federal income taxes | 1,738,000 | 1,548,000 | 4,170,000 |
Allocation of ESOP shares | 1,941,000 | 1,605,000 | 1,400,000 |
Stock compensation expense | 574,000 | 621,000 | 440,000 |
Increase in cash surrender value of BOLI | (623,000) | (844,000) | (533,000) |
Changes in operating assets and liabilities: | |||
Prepaid expenses and other assets | (2,829,000) | (105,000) | 270,000 |
Advance payments from borrowers for taxes and insurance | 256,000 | 465,000 | 87,000 |
Accrued interest receivable | (937,000) | (179,000) | 297,000 |
Accrued interest payable | 95,000 | 96,000 | (7,000) |
Other liabilities | 1,259,000 | 1,589,000 | 2,295,000 |
Net cash provided by operating activities | 12,108,000 | 17,269,000 | 16,715,000 |
Cash flows from investing activities | |||
Proceeds from sales and call of investments | 44,164,000 | 26,437,000 | 27,327,000 |
Principal repayments on investments | 10,722,000 | 15,852,000 | 18,651,000 |
Purchases of investments | (58,796,000) | (44,561,000) | (57,290,000) |
Net increase in loans receivable | (173,219,000) | (131,271,000) | (19,075,000) |
Proceeds from sales of OREO properties | 1,908,000 | 988,000 | 6,246,000 |
Net proceeds from sale or disposal of fixed assets | 7,000 | 0 | 0 |
Purchases of premises and equipment | (2,824,000) | (1,833,000) | (1,781,000) |
(Purchase) redemption of FHLB stock | (1,851,000) | (1,894,000) | 608,000 |
Purchase of BOLI | (4,251,000) | 0 | (20,000,000) |
Net cash received from branch acquisition | 71,658,000 | 0 | 0 |
Net cash provided in investing activities | (112,482,000) | (136,282,000) | (45,314,000) |
Cash flows from financing activities | |||
Net increase in deposits | 47,497,000 | 42,069,000 | 61,280,000 |
Advances from the FHLB | 108,500,000 | 525,000,000 | 0 |
Repayments of advances from the FHLB | (64,000,000) | (479,000,000) | (10,000,000) |
Proceeds from stock options exercises | 1,309,000 | 298,000 | 935,000 |
Issuance of common stock - restricted stock awards, net | (138,000) | (98,000) | 0 |
Repurchase and retirement of common stock | (5,238,000) | (40,812,000) | (18,717,000) |
Dividends paid | (2,777,000) | (2,803,000) | (3,237,000) |
Net cash provided by financing activities | 85,153,000 | 44,654,000 | 30,261,000 |
Cash and cash equivalents: | |||
Net (decrease) increase in cash and cash equivalents | (15,221,000) | (74,359,000) | 1,662,000 |
Cash and cash equivalents at beginning of year | 31,352,000 | 105,711,000 | 104,049,000 |
Cash and cash equivalents at end of year | 16,131,000 | 31,352,000 | 105,711,000 |
Cash paid during the period for: | |||
Interest | 9,927,000 | 7,411,000 | 6,757,000 |
Federal income taxes | 3,350,000 | 2,730,000 | 228,000 |
Assets acquired in acquisition of branches (Note 2) | 72,329,000 | 0 | 0 |
Liabilities assumed in acquisition of branches (Note 2) | 74,657,000 | 0 | 0 |
Noncash transactions: | |||
Loans transferred to OREO, net of deferred loan fees and allowance for loan and lease losses (“ALLL”) | 0 | 0 | 141,000 |
Change in unrealized loss on investments available-for-sale | 360,000 | (1,719,000) | (1,108,000) |
Change in unrealized gain on cash flow hedge | $ 192,000 | $ 1,333,000 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Loans and Leases Receivable, Troubled Debt Restructuring Policy [Policy Text Block] | Troubled Debt Restructurings Certain loan modifications or restructurings are accounted for as troubled debt restructurings (“TDR”). 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. |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations and Principles of Consolidation 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 Financial Northwest Bank (“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 Financial Northwest Bank. Accordingly, the information presented in the consolidated financial statements and related data, relates primarily to First Financial Northwest Bank. First Financial Northwest converted from a savings and loan holding company to a bank holding company in 2015 and is subject to regulation by the Board of Governors of the Federal Reserve Bank of San Francisco (“FRB”). First Financial Northwest Bank is regulated by the Federal Deposit Insurance Corporation (“FDIC”) and the Washington State Department of Financial Institutions (“DFI”). First Financial Northwest 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 Financial Northwest 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, the Bank changed its name to First Savings Bank Northwest. In August 2015, the Bank changed its name to First Financial Northwest Bank to support the expansion of focus to being more than a traditional “savings” bank and in February 4, 2016 changed its charter from a Washington chartered stock savings bank to a Washington chartered commercial bank. First Financial Northwest Bank is a community-based commercial bank primarily serving King and Snohomish Counties, and to a lesser extent, Pierce and Kitsap Counties, Washington. In King County, the headquarters and full-service banking office as well as one branch office are located in Renton. Additional King County branch offices are located in Bellevue, and Woodinville, with a third scheduled to open in Bothell in the first quarter of 2018. In Snohomish County, five additional branch offices serve Mill Creek, Edmonds, Clearview, Smokey Point, and Lake Stevens. First Financial Northwest 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, business and consumer loans. First Financial Diversified Corporation (“FFD”), a wholly-owned subsidiary of First Financial Northwest, continues to hold a portfolio of one-to-four family, land and consumer loans that are serviced by the Bank. At December 31, 2017, FFD had net loans receivable of $2.0 million that were all performing. The accompanying consolidated financial statements include the accounts of First Financial Northwest and its wholly‑owned subsidiaries First Financial Northwest 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. 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. Subsequent Events The Company has evaluated events and transactions subsequent to December 31, 2017 for potential recognition or disclosure. See Note 19 - Subsequent Events for more information. 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. At December 31, 2017, cash balances were sufficient where no additional reserve was required. At December 31, 2016, the required reserve was $ 228,000 . 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, 2017, or 2016. 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 holding gains and losses on investments available-for-sale are excluded from earnings and are reported in other comprehensive income (loss), net of applicable taxes. 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 active markets 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 accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. 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. 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 certain completion costs and closing costs when foreclosure is probable, instead of discounted cash flows. 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. 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. Troubled Debt Restructurings Certain loan modifications or restructurings are accounted for as troubled debt restructurings (“TDR”). 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. Allowance for Loan and Lease Losses The allowance for loan and lease losses (“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. 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. Leasehold improvements are amortized over the life of the lease. 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 Des Moines (“FHLB”) stock, based on specified percentages of total assets 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. Transfer of Financial Assets Transfers of an entire financial asset, a group of entire financial assets, or participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Bank, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. 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 of foreclosed assets held for sale, the 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. Bank-Owned Life Insurance The Company has purchased life insurance on certain key executives and officers. Bank-owned life insurance (“BOLI”) is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Increases to the cash surrender value are recorded as noninterest income and partially offset expenses for employee benefits. Certain BOLI contracts contain endorsement split-dollar life agreements. In these circumstances, the Bank accrues a reserve liability and related compensation expense for the expected future benefit payout. Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as 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 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 and records its provision for income taxes under the asset and liability method. Deferred taxes result from temporary differences in the recognition of certain income and expense amounts between the Company’s financial statements and its tax return. The principal items giving rise to these differences include net operating losses, valuation adjustments on foreclosed properties, and allowance for credit losses. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. 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 potential deferred tax asset will not be realized. The Company’s policy is to recognize interest and penalties associated with income tax matters in income tax expense. 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 Nonvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are participating securities and are included in the computation of earnings per share (“EPS”) pursuant to the two-class method. The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared or accumulated and participation rights in undistributed earnings. Certain shares 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. As ESOP shares are committed to be released, they are included in the outstanding shares used in the basic EPS calculation. Diluted earnings per share is computed in a similar manner, except that first the denominator is increased to include the number of additional shares that would have been outstanding if potentially dilutive shares, excluding the participating securities, were issued using the treasury stock method. For all periods presented, stock options and certain restricted stock awards are potentially dilutive non-participating instruments issued by the Company. Undistributed losses are not allocated to the nonvested share-based payment awards (the participating securities) under the two-class method as the holders are not contractually obligated to share in the losses of the Company. Comprehensive Income Comprehensive income consists of net income and unrealized gains and losses on investments available-for-sale and derivatives 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. 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. Derivatives The Company designates certain interest rate swap agreements as a cash flow hedge, and as such, reports the fair value as an asset or liability. The hedge is utilized to mitigate the risk of variability in future interest payments. The fair value of the cash flow hedge is based on dealer quotes, pricing models, discounted cash flow methodologies or similar techniques for which the determination of fair value may require significant management judgment or estimation. The derivative is marked to its fair value, with the effective portion of changes recorded as other comprehensive income or loss. Any portion of the change in fair value that is considered to be ineffective is recognized immediately in earnings. The gain or loss on the derivative is removed from equity and recognized in earnings in the same period the corresponding loss or gain on the hedged cash flow is recognized in earnings. Goodwill Goodwill is recorded from a business combination as the difference in purchase price and fair value of the assets acquired and liabilities assumed. Goodwill has an indefinite useful life, and as such, is not amortized. The Company performs a goodwill impairment analysis on an annual basis as of December 31. Additionally, the Company performs an impairment analysis as needed when circumstances indicate impairment potentially exists. Any impairment will be recorded as a noninterest expense and corresponding reduction in intangible asset on the consolidated financial statements. Core Deposit Intangible A core deposit intangible (“CDI”) asset is recognized from the assumption of core deposit liabilities in connection with the acquisition of four branches from Opus Bank, a California state-chartered commercial bank (the “Branch Acquisition”). The asset was valued by a third party and is amortized into noninterest expense over ten years. The CDI is evaluated for impairment annually with any additional decline recorded as a noninterest expense on the Consolidated Income Statement. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) . In August 2015, FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606) which postponed the effective date of 2014-09. Subsequently, in March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations. This amendment clarifies that an entity should determine if it is the principal or the agent for each specified good or service promised in a contract with a customer. In April 2016, the FASB issued ASU No. 2016-10 , Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The core principle of Topic 606 is that an entity must recognize revenue when it has satisfied a performance obligation of transferring promised goods or services to a customer. The standard is effective for public entities for interim and annual periods beginning after December 15, 2017; early adoption is not permitted. The standard allows for full retrospective adoption for all periods presented or modified retrospective adoption to only the most current period presented in the financial statements. The cumulative effect of initially applying the standard is recognized at the date of the initial application. Our primary source of revenue is interest income, which is recognized as it is earned and is deemed to be in compliance with this ASU. With respect to noninterest income, the Company is in process of identifying and evaluating the revenue streams and underlying revenue contracts within the scope of the guidance. The Company is developing processes and procedures to ensure it is fully compliant with this ASU. To date, the Company has not yet identified any significant changes in the timing of revenue recognition when considering the amended accounting guidance; however, the Company’s implementation efforts are ongoing and such assessments may change prior to implementing this ASU in 2018. Accordingly, the Company does not expect implementation of this standard to have a material impact on our consolidated financial statements. In January 2016, FASB issued ASU No. 2016-01, Financial Instruments - Overall, Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income. The amendments in this ASU also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in instrument-specific credit risk. In addition, the ASU eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. The ASU also clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted for fiscal years or interim periods that have not yet been issued if adopted at the beginning of the fiscal year. The Company is reviewing our available-for-sale investment portfolio in accordance with the provision of this standard. The adoption of ASU 2016-01 is not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) . ASU No. 2016-02 requires lessees to recognize on the balance sheet the assets and liabilities arising from operating leases. A lessee should recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. A lessee should include payments to be made in an optional period only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. For a finance lease, interest payments should be recognized separately from amortization of the right-of-use asset in the statement of comprehensive income. For operating leases, the lease cost should be allocated over the lease term on a generally straight-line basis. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in the ASU is permitted. The effect of the adoption will depend on leases at the time of adoption. Once adopted, we expect to report higher assets and liabilities as a result of including right-of-use assets and lease liabilities related to certain banking offices under noncancelable operating lease agreements, however, based on current leases, the adoption is expected to increase our consolidated balance sheets by less than 5% and not to have a material impact on our regulatory capital ratios. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (To |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On August 25, 2017, First Financial Northwest Bank completed the Branch Acquisition, which included four retail branches located in Woodinville, Clearview, Lake Stevens, and Smokey Point, Washington. The Bank acquired $74.7 million of retail deposits, prior to the fair value adjustment, one owned bank branch, three leased branches, and certain fixed assets at these branches. The purchase price of the Branch Acquisition paid by the Bank included a deposit premium of 3.125% of the average daily balance of acquired deposits for 20 days prior to the closing date, or $2.5 million ; 80% of the fair market value of the owned branch building and land, or $488,000 ; the net book value of fixed assets, or $56,000 ; and $14,000 for other pro rations and adjustments as of the closing date. In connection with the transaction, Opus Bank paid the Bank $71.6 million in cash for the difference between these amounts and the total deposits assumed. The Branch Acquisition was accounted for under the acquisition method of accounting, and accordingly, the assets received and liabilities assumed were recorded at their fair market value as of August 25, 2017. Determining the fair value of assets and liabilities is a complicated process involving significant judgment regarding methods and assumptions used to calculate estimated fair values. Fair values are preliminary and subject to adjustment for up to one year after the closing date of the acquisition as additional information regarding the fair values as of the acquisition date become available. The excess cost over fair value of net assets acquired is recorded as goodwill. The application of the acquisition method of accounting resulted in recognition of a CDI of $1.3 million and goodwill of $889,000 . The acquired CDI has been determined to have a useful life of approximately ten years and will be amortized on an accelerated basis. Goodwill is not amortized but will be evaluated for impairment on an annual basis, or more often if circumstances dictate, to determine if the carrying value remains appropriate. For the year ended December 31, 2017, the Company included on the Consolidated Income Statement $41,000 in revenue from the acquired branches, consisting of loan interest income and deposit related fees. The following table presents the estimated fair values of the assets received and liabilities assumed as of the acquisition date: At August 25, 2017 Acquired Book Value Fair Value Adjustments Amount Recorded (In thousands) Assets Cash and cash equivalents $ 71,649 $ — $ 71,649 Premises and equipment, net 553 119 672 Goodwill — 889 889 Core deposit intangible — 1,319 1,319 Total assets acquired $ 72,202 $ 2,327 $ 74,529 Liabilities Deposits Noninterest-bearing deposits $ 11,995 $ — $ 11,995 Interest-bearing deposits 62,662 (128 ) 62,534 Total deposits 74,657 (128 ) 74,529 Total liabilities assumed $ 74,657 $ (128 ) $ 74,529 Fair value estimates for the acquisition are set forth as follows: (1) Premises and equipment: The fair value adjustment to fixed assets was the result of the markup of the building and land to the appraised value and the immediate disposal of certain fixed assets that were included with the purchase price. (2) Goodwill: The difference of the fair value of liabilities assumed and the fair value of assets acquired was recognized as goodwill and was calculated as of August 25, 2017 as follows: At August 25, 2017 (In thousands) Purchase price $ 3,008 Recognized amounts of identifiable assets acquired and (liabilities assumed), at fair value Cash and cash equivalents 74,657 Premises and equipment, net 672 Core deposit intangible 1,319 Deposits (74,529 ) Total fair value of identifiable net assets 2,119 Goodwill 889 (3) Core deposit intangible: The CDI represents the fair value of the acquired core deposits. The CDI will be amortized over ten years into noninterest expense, with amortization expense of $53,000 recognized for the year ended December 31, 2017. Amortization expense of the CDI is expected as follows: At August 25, 2017 (In thousands) 2017 $ 53 2018 150 2019 148 2020 144 2021 140 Thereafter 684 Total $ 1,319 (4) Certificates of deposit: The fair value of acquired certificates of deposit was determined by a third-party valuation and will be amortized into interest expense over 2.0 to 5.0 years, with amortization of $21,000 recognized for the year ended December 31, 2017. Amortization of the fair value adjustment is expected as follows: At August 25, 2017 (In thousands) 2017 $ 21 2018 49 2019 30 2020 16 2021 9 2022 3 Total $ 128 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments [Abstract] | |
Investments | Investments The following tables summarize the amortized cost and fair value of investments available-for-sale at December 31, 2017 , and 2016 , and the corresponding amounts of gross unrealized gains and losses. December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Mortgage-backed investments: Fannie Mae $ 26,961 $ 69 $ (466 ) $ 26,564 Freddie Mac 5,510 18 (56 ) 5,472 Ginnie Mae 22,288 14 (726 ) 21,576 Municipal bonds 13,126 290 (21 ) 13,395 U.S. Government agencies 43,088 81 (536 ) 42,633 Corporate bonds 22,502 527 (427 ) 22,602 $ 133,475 $ 999 $ (2,232 ) $ 132,242 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Mortgage-backed investments: Fannie Mae $ 42,060 $ 126 $ (854 ) $ 41,332 Freddie Mac 18,013 95 (99 ) 18,009 Ginnie Mae 19,133 41 (540 ) 18,634 Municipal bonds 13,203 11 (107 ) 13,107 U.S. Government agencies 15,937 75 (155 ) 15,857 Corporate bonds 22,506 241 (426 ) 22,321 $ 130,852 $ 589 $ (2,181 ) $ 129,260 There were no investments classified as held-to-maturity at December 31, 2017 , or 2016 . The amortized cost and estimated fair value of investments available-for-sale at December 31, 2017 , 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, 2017 Amortized Cost Fair Value (In thousands) Due within one year $ 5,035 $ 5,040 Due after one year through five years 1,658 1,663 Due after five years through ten years 20,645 20,756 Due after ten years 51,378 51,171 78,716 78,630 Mortgage-backed investments 54,759 53,612 $ 133,475 $ 132,242 Under Washington State law, in order to participate in the public funds program the Company is required to pledge eligible securities as collateral in an amount equal to 50% of the public deposits held. Investments with a carrying value of $14.2 million and $22.6 million were pledged as collateral for public deposits at December 31, 2017 , and 2016 , respectively, both of which exceeded the minimum collateral requirements established by the Washington Public Deposit Protection Commission. At December 31, 2017 , and 2016 , there were no investments pledged as collateral for FHLB advances. Sales and other redemptions of available-for-sale investments were as follows: Year Ended December 31, 2017 2016 2015 (In thousands) Proceeds $ 44,164 $ 26,437 $ 27,327 Gross gains 119 245 449 Gross losses (686 ) (195 ) (357 ) 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, 2017 and 2016 . December 31, 2017 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (In thousands) Mortgage-backed investments: Fannie Mae $ 15,202 $ (91 ) $ 6,759 $ (375 ) $ 21,961 $ (466 ) Freddie Mac 3,189 (56 ) — — 3,189 (56 ) Ginnie Mae 6,454 (61 ) 14,234 (665 ) 20,688 (726 ) Municipal bonds 1,403 (21 ) — — 1,403 (21 ) U.S. Government agencies 33,268 (435 ) 1,800 (101 ) 35,068 (536 ) Corporate bonds 1,499 (1 ) 7,074 (426 ) 8,573 (427 ) $ 61,015 $ (665 ) $ 29,867 $ (1,567 ) $ 90,882 $ (2,232 ) December 31, 2016 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (In thousands) Mortgage-backed investments: Fannie Mae $ 34,763 $ (854 ) $ — $ — $ 34,763 $ (854 ) Freddie Mac 8,343 (99 ) — — 8,343 (99 ) Ginnie Mae 16,734 (540 ) — — 16,734 (540 ) Municipal bonds 8,815 (107 ) — — 8,815 (107 ) U.S. Government agencies 9,000 (153 ) 1,426 (2 ) 10,426 (155 ) Corporate bonds 3,880 (119 ) 4,693 (307 ) 8,573 (426 ) $ 81,535 $ (1,872 ) $ 6,119 $ (309 ) $ 87,654 $ (2,181 ) At December 31, 2017 , and 2016 , the Company had 36 and 53 securities, respectively, with a gross unrealized loss position. Management reviewed the financial condition of the entities underlying the securities at both December 31, 2017 , and December 31, 2016 , and determined that no OTTI was required. Management believes that, while actual fluctuation in unrealized losses will occur over the life of an investment security, the temporary impairment on the investment securities that were in an unrealized loss position at December 31, 2017 and 2016 , will be incrementally relieved as the individual investment securities approach their respective contractual maturity dates. The unrealized losses relate principally to the general change in interest rate and illiquidity, and not credit quality. As management does not intend to sell the security, and it is likely that it will not be required to sell the security before its anticipated recovery, no declines are deemed to be other-than-temporary. |
Loans Receivable
Loans Receivable | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Loans Receivable | Loans Receivable Loans receivable at December 31, 2017 , and 2016 are summarized as follows: December 31, 2017 2016 (In thousands) One-to-four family residential: Permanent owner occupied $ 148,304 $ 137,834 Permanent non-owner occupied 130,351 111,601 278,655 249,435 Multifamily: Permanent 184,902 123,250 184,902 123,250 Commercial real estate: Permanent 361,842 303,694 361,842 303,694 Construction/land: (1) One-to-four family residential 87,404 67,842 Multifamily 108,439 111,051 Commercial 5,325 — Land 36,405 30,055 237,573 208,948 Business 23,087 7,938 Consumer 9,133 6,922 Total loans 1,095,192 900,187 Less: Loans in process (“LIP”) 92,498 72,026 Deferred loan fees, net 1,150 2,167 Allowance for loan and lease losses ("ALLL") 12,882 10,951 Loans receivable, net $ 988,662 $ 815,043 ___________ (1) Included in the construction/land category are “rollover” loans, which are loans that will convert upon completion of the construction period to permanent loans. At that time, the loans will be classified according to the underlying collateral. In addition, raw land or buildable lots, where the Company does not intend to finance the construction are included in the construction/land category. At December 31, 2017, we classified $71.4 million of multifamily loans, $35.9 million of commercial land loans, $2.6 million of one-to-four family residential and $5.3 million of commercial real estate loans as construction/land loans to facilitate the review of the composition of our loan portfolio. At December 31, 2016, $62.9 million of multifamily loans, $26.9 million of commercial land loans and $2.6 million one-to-four family residential loans were reclassified to the construction/land category. At December 31, 2017 , and 2016 , 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. At December 31, 2017 , the Company’s loan portfolio consists of one-to-four family residential loans which comprised 25.5% , commercial real estate and multifamily loans were 33.0% and 16.9% , respectively, and construction/land loans were 21.7% of the total loan portfolio. Consumer and business loans accounted for the remaining 2.9% of the loan portfolio. Included in the one-to-four family residential, multifamily, commercial real estate, construction/land, and business loan portfolios at December 31, 2017 were $1.0 million , $10.7 million , $39.2 million , $27.4 million and $10.3 million , 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, 2017 , and 2016 , was as follows: December 31, 2017 Fixed Rate Adjustable Rate Term to Maturity Principal Balance Term to Rate Adjustment Principal Balance (In thousands) Due within one year $ 37,472 Due within one year $ 292,398 After one year through three years 102,630 After one year through three years 51,520 After three years through five years 80,811 After three years through five years 127,973 After five years through ten years 132,086 After five years through ten years 95,091 Thereafter 175,211 Thereafter — $ 528,210 $ 566,982 December 31, 2016 Fixed Rate Adjustable Rate Term to Maturity Principal Balance Term to Rate Adjustment Principal Balance (In thousands) Due within one year $ 23,513 Due within one year $ 214,794 After one year through three years 106,138 After one year through three years 32,448 After three years through five years 71,251 After three years through five years 118,350 After five years through ten years 145,063 After five years through ten years 29,922 Thereafter 158,708 Thereafter — $ 504,673 $ 395,514 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, 2017 One-to-Four Family Residential Multifamily Commercial Real Estate Construction/ Land Business Consumer Total ALLL: (In thousands) Beginning balance $ 2,551 $ 1,199 $ 3,893 $ 2,792 $ 237 $ 279 $ 10,951 Charge-offs — — — — — — — Recoveries 2,195 — 78 — — 58 2,331 (Recapture) provision (1,909 ) 621 447 24 457 (40 ) (400 ) Ending balance $ 2,837 $ 1,820 $ 4,418 $ 2,816 $ 694 $ 297 $ 12,882 General reserve $ 2,721 $ 1,820 $ 4,399 $ 2,816 $ 694 $ 297 $ 12,747 Specific reserve 116 — 19 — — — 135 Loans: (1) Total Loans $ 278,655 $ 184,902 $ 361,299 $ 145,618 $ 23,087 $ 9,133 $ 1,002,694 General reserve (2) 265,093 183,768 358,105 145,618 23,087 9,039 984,710 Specific reserve (3) 13,562 1,134 3,194 — — 94 17,984 ____________ (1) Net of LIP. (2) Loans collectively evaluated for impairment. (3) Loans individually evaluated for impairment. At or For the Year Ended December 31, 2016 One-to-Four Family Residential Multifamily Commercial Real Estate Construction/ Land Business Consumer Total ALLL: (In thousands) Beginning balance $ 3,028 $ 1,193 $ 3,395 $ 1,193 $ 229 $ 425 $ 9,463 Charge-offs — — — — — (83 ) (83 ) Recoveries 165 1 104 — — 1 271 (Recapture) provision (642 ) 5 394 1,599 8 (64 ) 1,300 Ending balance $ 2,551 $ 1,199 $ 3,893 $ 2,792 $ 237 $ 279 $ 10,951 General reserve $ 2,349 $ 1,199 $ 3,867 $ 2,711 $ 237 $ 279 $ 10,642 Specific reserve 202 — 26 81 — — 309 Loans: (1) Total Loans $ 249,435 $ 123,250 $ 303,694 $ 136,922 $ 7,938 $ 6,922 $ 828,161 General reserve (2) 224,363 121,686 299,987 136,427 7,938 6,819 797,220 Specific reserve (3) 25,072 1,564 3,707 495 — 103 30,941 _____________ (1) Net of LIP. (2) Loans collectively evaluated for impairment. (3) Loans individually evaluated for impairment. At or For the Year Ended December 31, 2015 One-to-Four Family Residential Multifamily Commercial Real Estate Construction/ Land Business Consumer Total ALLL: (In thousands) Beginning balance $ 3,691 $ 1,606 $ 4,476 $ 519 $ 47 $ 152 $ 10,491 Charge-offs (27 ) (281 ) — — — (54 ) (362 ) Recoveries 936 78 181 — 3 336 1,534 (Recapture) provision (1,572 ) (210 ) (1,262 ) 674 179 (9 ) (2,200 ) Ending balance $ 3,028 $ 1,193 $ 3,395 $ 1,193 $ 229 $ 425 $ 9,463 General reserve $ 2,516 $ 1,190 $ 3,270 $ 1,140 $ 229 $ 386 $ 8,731 Specific reserve 512 3 125 53 — 39 732 Loans: (1) Total Loans $ 253,772 $ 122,747 $ 244,211 $ 62,103 $ 7,604 $ 6,979 $ 697,416 General reserve (2) 217,677 121,152 239,765 61,158 7,604 6,771 654,127 Specific reserve (3) 36,095 1,595 4,896 495 — 208 43,289 ______________ (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, 2017 , total past due loans comprised 0.01% of total loans, net of LIP, as compared to 0.06% at December 31, 2016 . The following tables represent a summary at December 31, 2017 , and 2016 , of the aging of loans by type: Loans Past Due as of December 31, 2017 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 $ 101 $ — $ — $ 101 $ 148,203 $ 148,304 Non-owner occupied — — — — 130,351 130,351 Multifamily — — — — 184,902 184,902 Commercial real estate — — — — 361,299 361,299 Construction/land — — — — 145,618 145,618 Total real estate 101 — — 101 970,373 970,474 Business — — — — 23,087 23,087 Consumer — — — — 9,133 9,133 Total $ 101 $ — $ — $ 101 $ 1,002,593 $ 1,002,694 _________________________ (1) There were no loans 90 days past due and still accruing interest at December 31, 2017. (2) Net of LIP. Loans Past Due as of December 31, 2016 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 $ 304 $ — $ 169 $ 473 $ 137,361 $ 137,834 Non-owner occupied — — — — 111,601 111,601 Multifamily — — — — 123,250 123,250 Commercial real estate — — — — 303,694 303,694 Construction/land — — — — 136,922 136,922 Total real estate 304 — 169 473 812,828 813,301 Business — — — — 7,938 7,938 Consumer — — — — 6,922 6,922 Total $ 304 $ — $ 169 $ 473 $ 827,688 $ 828,161 ________________________ (1) There were no loans 90 days past due and still accruing interest at December 31, 2016. (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, 2017 , and 2016 , by type of loan: December 31, 2017 2016 (In thousands) One-to-four family residential $ 128 $ 798 Consumer 51 60 Total nonaccrual loans $ 179 $ 858 Nonperforming loans, net of LIP, were $179,000 and $858,000 at December 31, 2017 , and 2016 , respectively. Foregone interest on nonaccrual loans for the years ended December 31, 2017 , 2016 , and 2015 were $26,000 , $51,000 and $103,000 , respectively. The following tables summarize the loan portfolio at December 31, 2017 , and 2016 , by type and payment activity: December 31, 2017 One-to-Four Family Residential Multifamily Commercial Real Estate Construction / Land Business Consumer Total (3) (In thousands) Performing (1) $ 278,527 $ 184,902 $ 361,299 $ 145,618 $ 23,087 $ 9,082 $ 1,002,515 Nonperforming (2) 128 — — — — 51 179 Total $ 278,655 $ 184,902 $ 361,299 $ 145,618 $ 23,087 $ 9,133 $ 1,002,694 ____________ (1) There were $ 148.2 million of owner-occupied one-to-four family residential loans and $ 130.3 million of non-owner occupied one-to-four family residential loans classified as performing. (2) There were $ 128,000 of owner-occupied one-to-four family residential loans and no non-owner occupied one-to-four family residential loans classified as nonperforming. (3) Net of LIP. December 31, 2016 One-to-Four Family Residential Multifamily Commercial Real Estate Construction/ Land Business Consumer Total (3) (In thousands) Performing (1) $ 248,637 $ 123,250 $ 303,694 $ 136,922 $ 7,938 $ 6,862 $ 827,303 Nonperforming (2) 798 — — — — 60 858 Total $ 249,435 $ 123,250 $ 303,694 $ 136,922 $ 7,938 $ 6,922 $ 828,161 _____________ (1) There were $ 137.0 million of owner-occupied one-to-four family residential loans and $ 111.6 million of non-owner occupied one-to-four family residential loans classified as performing. (2) There were $ 798,000 of owner-occupied one-to-four family residential loans and no 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. There were no commitments to advance funds related to impaired loans at December 31, 2017 , and 2016 . The following tables present a summary of loans individually evaluated for impairment at December 31, 2017 , and 2016 , by the type of loan: At December 31, 2017 Recorded Investment (1) Unpaid Principal Balance (2) Related Allowance (In thousands) Loans with no related allowance: One-to-four family residential: Owner occupied $ 1,321 $ 1,516 $ — Non-owner occupied 8,409 8,409 — Multifamily 1,134 1,134 — Commercial real estate 1,065 1,065 — Consumer 94 144 — Total 12,023 12,268 — Loans with an allowance: One-to-four family residential: Owner occupied 522 568 5 Non-owner occupied 3,310 3,332 111 Commercial real estate 2,129 2,129 19 Total 5,961 6,029 135 Total impaired loans: One-to-four family residential: Owner occupied 1,843 2,084 5 Non-owner occupied 11,719 11,741 111 Multifamily 1,134 1,134 — Commercial real estate 3,194 3,194 19 Consumer 94 144 — Total $ 17,984 $ 18,297 $ 135 _________________ (1) Represents the loan balance less charge-offs. (2) Contractual loan principal balance. At December 31, 2016 Recorded Investment (1) Unpaid Principal Balance (2) Related Allowance (In thousands) Loans with no related allowance: One-to-four family residential: Owner occupied $ 2,216 $ 2,475 $ — Non-owner occupied 16,634 16,652 — Multifamily 1,564 1,564 — Commercial real estate 2,952 3,029 — Consumer 103 223 — Total 23,469 23,943 — Loans with an allowance: One-to-four family residential: Owner occupied 1,896 1,965 51 Non-owner occupied 4,326 4,347 151 Commercial real estate 755 755 26 Construction/land 495 495 81 Total 7,472 7,562 309 Total impaired loans: One-to-four family residential: Owner occupied 4,112 4,440 51 Non-owner occupied 20,960 20,999 151 Multifamily 1,564 1,564 — Commercial real estate 3,707 3,784 26 Construction/land 495 495 81 Consumer 103 223 — Total $ 30,941 $ 31,505 $ 309 _____________ (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 for the years ended December 31, 2017 , 2016 and 2015 , by the type of loan: Year Ended December 31, 2017 2016 2015 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 $ 1,773 $ 93 $ 2,566 $ 156 $ 3,180 $ 110 Non-owner occupied 12,438 553 20,653 1,061 25,350 1,409 Multifamily 1,227 74 1,344 106 1,575 30 Commercial real estate 2,467 80 2,295 253 4,180 187 Consumer 98 8 117 12 125 2 Total 18,003 808 26,975 1,588 34,410 1,738 Loans with an allowance: One-to-four family residential: Owner occupied 1,301 32 2,026 104 2,131 89 Non-owner occupied 3,680 170 5,520 236 7,801 415 Multifamily — — 236 — 1,430 77 Commercial real estate 1,025 139 2,192 42 2,817 129 Construction/land 99 — 396 17 495 18 Consumer — — 30 — 77 3 Total 6,105 341 10,400 399 14,751 731 Total impaired loans: One-to-four family residential: Owner occupied 3,074 125 4,592 260 5,311 199 Non-owner occupied 16,118 723 26,173 1,297 33,151 1,824 Multifamily 1,227 74 1,580 106 3,005 107 Commercial real estate 3,492 219 4,487 295 6,997 316 Construction/land 99 — 396 17 495 18 Consumer 98 8 147 12 202 5 Total $ 24,108 $ 1,149 $ 37,375 $ 1,987 $ 49,161 $ 2,469 Troubled Debt Restructurings . The following is a summary of information pertaining to TDRs: December 31, 2017 2016 (In thousands) Performing TDRs $ 17,805 $ 30,083 Nonaccrual TDRs — 174 Total TDRs $ 17,805 $ 30,257 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, 2017 2016 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) TDRs that occurred during the period: One-to-four family residential: Principal and interest with interest rate concession 8 $ 2,492 $ 2,492 19 $ 4,265 $ 4,265 Advancement of maturity date — — — 5 1,121 1,121 Commercial real estate: Advancement of maturity date 1 891 891 1 511 511 Interest-only payments with interest rate concession — — — 1 495 495 Total 9 $ 3,383 $ 3,383 26 $ 6,392 $ 6,392 At December 31, 2017 and 2016 , 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. TDRs resulted in no charge-offs to the ALLL for the years ended December 31, 2017 and 2016 . For the years ended December 31, 2017 and 2016 , there were no payment defaults on loans modified as TDRs within the previous 12 months. 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, 2017 , and 2016 , the Company had no loans rated as doubtful or loss. The following tables represent a summary of loans at December 31, 2017 , and 2016 by type and risk category: December 31, 2017 One-to-Four Family Residential Multifamily Commercial Real Estate Construction/ Land Business Consumer Total (1) (In thousands) Risk Rating: Pass $ 275,653 $ 184,902 $ 358,285 $ 145,618 $ 23,087 $ 8,893 $ 996,438 Special mention 2,329 — 2,459 — — 188 4,976 Substandard 673 — 555 — — 52 1,280 Total $ 278,655 $ 184,902 $ 361,299 $ 145,618 $ 23,087 $ 9,133 $ 1,002,694 _____________ (1) Net of LIP. December 31, 2016 One-to-Four Family Residential Multifamily Commercial Real Estate Construction / Land Business Consumer Total (1) (In thousands) Risk Rating: Pass $ 245,237 $ 123,250 $ 300,655 $ 136,427 $ 7,938 $ 6,674 $ 820,181 Special mention 2,847 — 3,039 — — 188 6,074 Substandard 1,351 — — 495 — 60 1,906 Total $ 249,435 $ 123,250 $ 303,694 $ 136,922 $ 7,938 $ 6,922 $ 828,161 ______________ (1) Net of LIP. Certain 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, 2017 2016 2015 (In thousands) Balance at beginning of year $ 60 $ 118 $ 138 Additions — — — Change in director or executive status during year — (40 ) — Repayments (51 ) (18 ) (20 ) Balance at end of year $ 9 $ 60 $ 118 |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 (In thousands) Balance at beginning of year $ 2,331 $ 3,663 $ 9,283 Loans transferred to OREO — — 141 Gross proceeds from sale of OREO (1,908 ) (988 ) (6,246 ) Gain (loss) on sale of OREO 110 (87 ) 526 Market value adjustments (50 ) (257 ) (41 ) Balance at end of year $ 483 $ 2,331 $ 3,663 OREO at December 31, 2017 , consisted of $483,000 in commercial real estate properties. At December 31, 2017, there were no mortgage loans secured by residential real estate in the process of foreclosure. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment Premises and equipment consisted of the following at December 31, 2017 , and 2016 : December 31, 2017 2016 (In thousands) Land $ 2,226 $ 1,914 Buildings and improvements 19,436 17,820 Leasehold improvements 1,917 1,352 Furniture, fixtures and equipment 4,743 3,832 Computer hardware and software 2,323 1,924 Construction in process 67 704 30,712 27,546 Less accumulated depreciation and amortization (10,098 ) (9,085 ) Total premises and equipment, net $ 20,614 $ 18,461 Depreciation and amortization expense was $1.3 million for the year ended December 31, 2017 and $1.1 million and $809,000 for the years ended December 31, 2016 and 2015 , respectively. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2013 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value of Financial Instruments 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): December 31, 2017 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 $ 26,564 $ — $ 26,564 $ — Freddie Mac 5,472 — 5,472 — Ginnie Mae 21,576 — 21,576 — Municipal bonds 13,395 — 13,395 — U.S. Government agencies 42,633 — 42,633 — Corporate bonds 22,602 — 22,602 — Total available-for-sale investments 132,242 — 132,242 — Derivative fair value asset 1,526 — 1,526 — $ 133,768 $ — $ 133,768 $ — December 31, 2016 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 $ 41,332 $ — $ 41,332 $ — Freddie Mac 18,009 — 18,009 — Ginnie Mae 18,634 — 18,634 — Municipal bonds 13,107 — 13,107 — U.S. Government agencies 15,857 — 15,857 — Corporate bonds 22,321 — 22,321 — Total available-for-sale investments $ 129,260 $ — $ 129,260 $ — Derivative fair value asset 1,333 — 1,333 — 130,593 — 130,593 — 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, 2017 , and 2016 . December 31, 2017 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) Impaired loans (included in loans receivable, net) (1) $ 17,849 $ — $ — $ 17,849 OREO 483 — — 483 Total $ 18,332 $ — $ — $ 18,332 _______________ (1) Total value of impaired loans is net of $ 135,000 of specific reserves on performing TDRs. December 31, 2016 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) Impaired loans (included in loans receivable, net) (1) $ 30,632 $ — $ — $ 30,632 OREO 2,331 — — 2,331 Total $ 32,963 $ — $ — $ 32,963 ________________ (1) Total value of impaired loans is net of $ 309,000 of specific reserves on performing TDRs. 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 tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at December 31, 2017 and 2016. December 31, 2017 Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average Change in Fair Value) (Dollars in thousands) Impaired Loans $ 17,849 Market approach Appraised value discounted by market or borrower conditions 0.0% (0.00%) OREO $ 483 Market approach Appraised value less selling costs 0.0% (0.00%) December 31, 2016 Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average Change in Fair Value) (Dollars in thousands) Impaired Loans $ 30,632 Market approach Appraised value discounted by market or borrower conditions 0.0% (0.00%) OREO $ 2,331 Market approach Appraised value less selling costs 0.0% (0.00%) The carrying amounts and estimated fair values of financial instruments at December 31, 2017 , and 2016 , were as follows: December 31, 2017 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 $ 9,189 $ 9,189 $ 9,189 $ — $ — Interest-earning deposits 6,942 6,942 6,942 — — Investments available-for-sale 132,242 132,242 — 132,242 — Loans receivable, net 988,662 980,578 — — 980,578 FHLB stock 9,882 9,882 — 9,882 — Accrued interest receivable 4,084 4,084 — 4,084 — Derivative fair value asset 1,526 1,526 — 1,526 — Financial Liabilities: Deposits 430,750 430,750 430,750 — — Certificates of deposit, retail 333,264 331,199 — 331,199 — Certificates of deposit, brokered 75,488 74,947 — 74,947 — Advances from the FHLB 216,000 214,477 — 214,477 — Accrued interest payable 326 326 — 326 — December 31, 2016 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 $ 5,779 $ 5,779 $ 5,779 $ — $ — Interest-earning deposits 25,573 25,573 25,573 — — Investments available-for-sale 129,260 129,260 — 129,260 — Loans receivable, net 815,043 818,054 — — 818,054 FHLB stock 8,031 8,031 — 8,031 — Accrued interest receivable 3,147 3,147 — 3,147 — Derivative fair value asset 1,333 1,333 — 1,333 — Financial Liabilities: Deposits 285,335 285,335 285,335 — — Certificates of deposit, retail 356,653 356,723 — 356,723 — Certificates of deposit, brokered 75,488 75,431 — 75,431 — Advances from the FHLB 171,500 170,221 — 170,221 — Accrued interest payable 231 231 — 231 — 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, accrued interest receivable, and accrued interest payable. • FHLB stock: 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. • Derivatives: The fair value of derivatives is based on dealer quotes, pricing models, discounted cash flow methodologies or similar techniques for which the determination of fair value may require significant management judgment or estimation. • Liabilities: The fair value of deposits with no stated maturity, such as statement savings, interest bearing deposits, 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, last for a period 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, 2017 | |
Accrued Interest Receivable [Abstract] | |
Accrued Interest Receivable | Note 8 - Accrued Interest Receivable Accrued interest receivable consisted of the following at December 31, 2017 and 2016 : December 31, 2017 2016 (In thousands) Loans receivable $ 3,492 $ 2,665 Investments 590 478 Interest-earning deposits 2 4 $ 4,084 $ 3,147 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Deposits | Deposits Deposit accounts consisted of the following at December 31, 2017 and 2016 : December 31, 2017 2016 (In thousands) Noninterest-bearing $ 45,434 $ 33,422 Interest-bearing demand 38,224 18,532 Statement savings 28,456 28,383 Money market 318,636 204,998 Certificates of deposit, retail (1) 333,264 356,653 Certificates of deposit, brokered 75,488 75,488 $ 839,502 $ 717,476 _______________ (1) Shown net of $107,000 fair value adjustment. At December 31, 2017 , scheduled maturities of certificates of deposit were as follows: December 31, Amount (In thousands) 2018 $ 165,883 2019 162,298 2020 43,568 2021 31,037 2022 5,966 thereafter — $ 408,752 Deposits included public funds of $21.5 million and $23.7 million at December 31, 2017 and 2016 , respectively. Certificates of deposit equal to or exceeding the FDIC insured amount of $250,000 included in deposits at December 31, 2017 and 2016 , were $84.3 million and $91.2 million , respectively. Interest expense on certificates equal to or exceeding $250,000 totaled $1.1 million , $975,000 , and $769,000 for the years ended December 31, 2017 , 2016 , and 2015 , respectively. Included in deposits are accounts of $7.6 million and $9.4 million at December 31, 2017 , and 2016 , respectively which are controlled by related parties. Interest expense on deposits for the periods indicated was as follows: Year Ended December 31, 2017 2016 2015 (In thousands) Interest-bearing demand $ 73 $ 30 $ 18 Statement savings 42 47 40 Money market 1,779 870 603 Certificates of deposit, retail 4,362 3,934 3,574 Certificates of deposit, brokered 1,261 1,220 1,243 $ 7,517 $ 6,101 $ 5,478 |
Other Borrowings
Other Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Other Borrowings [Abstract] | |
Other Borrowings | Other Borrowings At December 31, 2017 , and 2016 , the Bank maintained credit facilities with the FHLB totaling $406.5 million and $375.1 million , respectively. The credit facility was collateralized by $190.7 million of single-family residential mortgages, $161.8 million of commercial real estate loans and $70.1 million of multifamily loans under a blanket lien arrangement at December 31, 2017 . At December 31, 2016 , the credit facility was collateralized by $188.8 million of single-family residential mortgages, $200.9 million of commercial real estate loans, and $82.4 million of multifamily loans under a blanket lien arrangement. The Bank also had $35.0 million unused line-of-credit facilities with other financial institutions at December 31, 2017 , with interest payable at the then stated rate. Outstanding advances at the FHLB for the years ended December 31 2017 , and 2016 consisted of the following: Year ended December 31, 2017 2016 (Dollars in thousands) Maximum borrowing outstanding at any month end $ 231,500 251,500 Average borrowing outstanding during year 192,227 163,893 Balance outstanding at end of year 216,000 171,500 Average rate paid during the year 1.30 % 0.87 % Weighted-average rate paid at end of year 1.60 0.87 Scheduled maturities of Federal Home Loan Bank outstanding advances at December 31, 2017, were as follows: Year Ended December 31, Balance Due Weighted Average Interest Rate at December 31, 2017 (Dollars in thousands) FHLB overnight Fed Funds $ 24,500 1.63 % 2018 61,500 1.41 2019 10,000 1.70 2020 120,000 1.68 $ 216,000 |
Derivatives Derivatives
Derivatives Derivatives | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Fair Value [Text Block] | Derivatives The Company uses a derivative financial instrument, which qualifies as a cash flow hedge, to manage the risk of changes in future cash flows due to interest rate fluctuations. The hedged instrument is a $50.0 million three-month FHLB advance that will be renewed every three months at the fixed interest rate at that time. The agreement has a five year term and stipulates that the counterparty will pay the Company interest at three-month LIBOR and the Company will pay fixed interest of 1.34% on the $50.0 million notional amount. The Company pays or receives the net interest amount quarterly and includes this amount as part of FHLB advances interest expense on the Consolidated Income Statement. The cash flow hedges were determined to be fully effective during all periods presented. As such, no ineffectiveness has been included in net income. The following table presents the fair value of derivative instruments as of December 31, 2017 and 2016 : Balance Sheet Location 2017 Fair Value 2016 Fair Value (In thousands) Interest rate swaps on FHLB debt designated as cash flow hedge Other assets $ 1,526 $ 1,333 Total derivatives $ 1,526 $ 1,333 The following table presents the net gains of derivative instruments recorded in accumulated other comprehensive income: Balance Sheet Location 2017 Amount of Gain Recognized In OCI 2016 Amount of Gain Recognized In OCI (In thousands) Interest rate swaps on FHLB debt designated as cash flow hedge Other assets $ 125 $ 866 |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | Benefit Plans Multi-employer 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 ( 5.89% for 2017 and 6.09% for 2016 ) 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 July 1: 2017 2016 Source Valuation Report Valuation Report First Financial Northwest’s Plan (1) 104.8 % 103.7 % _________________ (1) Market value of plan assets reflects any contributions received through June 30, 2017, or 2016, respectively. Total contributions made to the Pentegra DB Plan, as reported on Form 5500, equal $153.2 million and $163.1 million for the plan years ended June 30, 2016 and June 30, 2015 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, 2017 , 2016 , and 2015 were: 2017 2016 2015 Date Paid Amount Date Paid Amount Date Paid Amount (in thousands) 10/12/2017 $ 38 10/7/2016 $ 40 11/25/2015 $ 540 11/30/2017 502 11/23/2016 500 Total $ 540 Total $ 540 Total $ 540 Supplemental Executive Retirement Plan The Company has entered into post-employment agreements with certain key officers to provide supplemental retirement benefits. The Company recorded $69,000 , $36,000 and $101,000 of deferred compensation expense for the years ended December 31, 2017 , 2016 , and 2015 , 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 $261,000 , $201,000 and $192,000 to the plan for the years ended December 31, 2017 , 2016 , and 2015 , 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 2017, 2016, and 2015. 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, 2017 2016 2015 (In thousands) ESOP contribution expense $ 1,941 $ 1,605 $ 1,400 Dividends on unallocated ESOP shares used to reduce ESOP contribution 175 183 210 Shares held by the ESOP at December 31, 2017 and 2016 , are as follows: December 31, 2017 2016 (Dollars in thousands, except share data) Allocated shares 1,156,747 1,043,893 Unallocated shares 536,053 648,907 Total ESOP shares 1,692,800 1,692,800 Fair value of unallocated shares $ 8,314 $ 12,809 Stock-Based Compensation In June 2016, First Financial Northwest’s shareholders approved the First Financial Northwest, Inc. 2016 Equity Incentive Plan (“2016 Plan”). This plan provides for the granting of incentive stock options (“ISO”), non-qualified stock options (“NQSO”), restricted stock and restricted stock units. The 2016 Plan expires in June 2026. The 2016 Plan established 1,400,000 shares available to grant with a maximum of 400,000 of these shares available to grant as restricted stock awards. Each share issued as a restricted stock award counts as two shares towards the total shares available to be awarded. As a result of the approval of the 2016 Plan, the First Financial Northwest, Inc. 2008 Equity Incentive Plan (“2008 Plan”) was frozen and no additional awards will be made. Restricted stock awards and stock options that were granted under the 2008 Plan will continue to vest and be available for exercise, subject to the 2008 Plan provisions. At December 31, 2017, there were 1,351,028 total shares available for grant under the 2016 Plan, including 375,514 shares available to be granted as restricted stock. Under the 2016 Plan, the vesting date for each option award or restricted stock award is determined by an award committee and specified in the award agreement. In the case of restricted stock awards granted in lieu of cash payments of directors’ fees, the grant date is used as the vesting date. Total compensation expense for the both the 2008 Plan and 2016 Plan for the years ended December 31, 2017, 2016, and 2015 was $574,000 , $622,000 , and $440,000 , respectively. The related income tax benefit was $201,000 , $218,000 and $154,000 for the years ended December 31, 2017 , 2016 , and 2015 , respectively. Stock Options Under the 2008 Plan, stock option awards were 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. Under the 2016 Plan, the exercise price and vesting period for stock options are determined by the award committee and specified in the award agreement, however, the exercise price shall not be less than the fair market value of a share as of the grant date. Any unexercised stock option will expire 10 years after the award date or sooner in the event of the award recipient’s death, disability, retirement, or termination of service. A cashless exercise of vested stock options may occur by the option holder surrendering the number of options valued at the current stock price at the time of exercise to cover the total cost to exercise. The surrendered options are canceled and are unavailable for reissue. 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. The historical volatility of the Company’s stock price over a specified period of time is used 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 U.S. Securities and Exchange Commission to calculate the expected term. This method uses the vesting term of an option along with the contractual term, setting the expected life at the midpoint. The fair value of options granted was determined using the following weighted-average assumptions as of the grant date for the periods indicated. There were no stock options granted in 2017 or 2016. Year Ended December 31, 2017 2016 2015 Annual dividend yield N/A N/A 1.77 % Expected volatility N/A N/A 35.30 Risk-free interest rate N/A N/A 2.23 Expected term N/A N/A 10.0 years Weighted-average grant date fair value per option granted N/A N/A $ 4.74 A summary of the Company’s stock option plan awards activity for the year ended December 31, 2017 follows: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term in Years Aggregate Intrinsic Value Outstanding at December 31, 2016 603,820 $ 10.19 Granted — — Exercised (134,880 ) 9.70 Forfeited or expired (16,000 ) 13.80 Outstanding at December 31, 2017 452,940 10.21 4.48 $ 2,402,096 Expected to vest assuming a 3% forfeiture rate over the vesting term 450,420 10.20 4.47 2,391,816 Exercisable at December 31, 2017 368,940 9.93 3.97 2,059,436 As of December 31, 2017 , there was $279,000 of total unrecognized compensation cost related to nonvested stock options. The cost is expected to be recognized over the remaining weighted-average vesting period of 1.9 years. Restricted Stock Awards A summary of changes in nonvested restricted stock awards for the year ended December 31, 2017 , follows: Nonvested Shares Shares Weighted Average Grant Date Fair Value Nonvested at December 31, 2016 26,400 $ 9.13 Granted 10,434 Vested (31,834 ) 8.72 Nonvested at December 31, 2017 5,000 10.88 Expected to vest assuming a 3% forfeiture rate over the vesting term 4,850 As of December 31, 2017 there was $28,000 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 0.5 years. The total fair value of shares vested during the years ended December 31, 2017 , and 2016 were $187,000 and $367,000 , respectively. |
Federal Income Taxes
Federal Income Taxes | 12 Months Ended |
Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |
Federal Income Taxes | Federal Income Taxes The components of income tax expense for the years indicated are as follows: Year Ended December 31, 2017 2016 2015 (In thousands) Current $ 3,204 $ 2,164 $ 717 Deferred 1,738 1,548 4,170 Total income tax expense $ 4,942 $ 3,712 $ 4,887 On December 22, 2017, the U.S. Government enacted the Tax Act. The Tax Act amends the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. For businesses, the Tax Act reduces the corporate federal income tax rate from a maximum of 35% to a flat 21% rate. The corporate income tax rate reduction was effective January 1, 2018. The Tax Act required a revaluation of the Company’s deferred tax assets and liabilities to account for the future impact of lower corporate tax rates and other provisions of the legislation. As a result of the Company’s revaluation, the DTA was reduced through a one-time increase to the provision for income tax of $807,000 . A reconciliation of the tax provision based on the statutory corporate rate of 35% during the years ended December 31, 2017 , 2016 and 2015 on pretax income is as follows: Year Ended December 31, 2017 2016 2015 (In thousands) Income tax expense at statutory rate $ 4,697 $ 4,412 $ 4,917 Income tax effect of: Tax exempt interest, net (107 ) (103 ) (38 ) Change in valuation allowance — — (112 ) Benefit of lower federal tax bracket (98 ) — (39 ) DTA revaluation 807 — — Other, net (357 ) (597 ) 159 Total income tax expense $ 4,942 $ 3,712 $ 4,887 The DTA, included in the accompanying consolidated balance sheets, consisted of the following at the dates indicated: December 31, 2017 2016 2015 (In thousands) Deferred tax assets: Charitable contributions $ — $ — $ 7 ALLL 2,700 3,803 3,257 Reserve for unfunded commitments 98 131 187 Deferred compensation 329 592 646 Net unrealized loss on investments available-for-sale 259 557 — Alternative minimum tax credit carryforward — 45 1,375 Employee benefit plans 533 951 1,051 OREO market value adjustments 4 231 213 Accrued expenses 112 453 510 Core deposit intangible 5 — — Expenses to facilitate branch acquisition 62 — — Total deferred tax assets $ 4,102 $ 6,763 $ 7,246 Deferred tax liabilities: FHLB stock dividends 271 552 1,255 Loan origination fees and costs 1,321 1,477 870 Net unrealized gain on investments available for sale — — 44 Gain on fair value of cash flow hedge 320 467 — Fixed assets 891 869 299 Goodwill 4 — — Other, net 84 256 222 Total deferred tax liabilities $ 2,891 $ 3,621 $ 2,690 Deferred tax assets, net $ 1,211 $ 3,142 $ 4,556 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. At December 31, 2017 and 2016 , the Company had no net operating loss carryforward. During 2017, the remaining alternative tax credit carryforward of $45,000 was exhausted. 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. As of December 31, 2017, it was determined the full deferred tax asset would be realized in future periods and a valuation allowance would not be necessary. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2017 | |
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 Company is a bank holding company under the supervision of the Federal Reserve Bank of San Francisco. Bank holding companies are subject to capital adequacy requirements of the Federal Reserve Board under the Bank Holding Company Act of 1956, as amended, and the regulations of the Federal Reserve Board. The Bank is a federally insured institution and thereby is subject to the capital requirements established by the FDIC. The Federal Reserve Board capital requirements generally parallel the FDIC requirements. 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 Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, First Financial Northwest and 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, 2017, 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. First Financial Northwest’s and the Bank’s actual capital amounts and ratios at December 31, 2017 , and 2016 , 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, 2017: Total risk-based capital Bank only $ 134,292 13.77 % $ 78,006 8.00 % $ 97,507 10.00 % Parent company 153,885 15.75 78,147 8.00 97,683 10.00 Tier 1 risk-based capital Bank only 122,090 12.52 58,504 6.00 78,006 8.00 Parent company 141,660 14.50 58,610 6.00 78,147 8.00 Common equity tier 1 capital (“CET1”) Bank only 122,090 12.52 43,878 4.50 63,379 6.50 Parent company 141,660 14.50 43,957 4.50 63,494 6.50 Tier 1 leverage capital Bank only 122,090 10.20 47,874 4.00 59,843 5.00 Parent company 141,660 11.82 47,955 4.00 59,944 5.00 December 31, 2016: Total risk-based capital Bank only $ 130,078 15.61 % $ 66,662 8.00 % $ 83,328 10.00 % Parent company 149,890 17.93 66,874 8.00 83,592 10.00 Tier 1 risk-based capital Bank only 119,652 14.36 49,997 6.00 66,662 8.00 Parent company 139,430 16.68 50,155 6.00 66,874 8.00 Common equity tier 1 capital Bank only 119,652 14.36 37,498 4.50 54,163 6.50 Parent company 139,430 16.68 37,616 4.50 54,335 6.50 Tier 1 leverage capital Bank only 119,652 11.17 42,846 4.00 53,558 5.00 Parent company 139,430 13.02 42,837 4.00 53,546 5.00 In addition to the minimum CET1, Tier 1, total capital and leverage ratios, First Financial Northwest and the Bank now have to maintain a capital conservation buffer consisting of additional CET1 capital above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses based on percentages of eligible retained income that could be utilized for such actions. The capital conservation buffer requirement began to be phased in on January 1, 2016 when more than 0.625% of risk-weighted assets was required, and increases by 0.625% on each subsequent January 1, until fully implemented to an amount equal to 2.5% of risk-weighted assets in January 2019. As of December 31, 2017, the conservation buffer requirement was 1.25% and First Financial Northwest’s and the Bank’s actual conservation buffer was 7.75% and 5.77%, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
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 $126.4 million and $96.6 million at December 31, 2017 , and 2016 , respectively. Lease Commitments. First Financial Northwest Bank has entered into lease commitments for its branches located in Mill Creek, Edmonds, Renton, Bellevue, Woodinville, Smokey Point, Lake Stevens, and Bothell, all in Washington. The following table sets forth, at December 31, 2017 , the Bank’s commitment for future lease payments under our operating leases: Years Ending December 31, Future Minimum Lease Payments (In thousands) 2018 $ 455 2019 483 2020 460 2021 283 2022 248 Thereafter 245 Total $ 2,174 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 consolidated financial statements of the Company. Employment Contracts and Severance Agreements. The Company has change in control severance agreements with key officers that offer specified terms of salary coverage. In addition, the Company has employment contracts with certain executives that include specified terms of salary coverage as a result of involuntary termination due to change in control or other circumstances. |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 (In thousands) Assets Cash and cash equivalents $ 151 $ 106 Interest-bearing deposits 14,309 13,299 Investment in subsidiaries 125,530 123,267 Receivable from subsidiaries 2,933 1,558 Other assets 47 102 Total assets $ 142,970 $ 138,332 Liabilities and Stockholders’ Equity Liabilities: Payable to subsidiaries $ 97 $ 58 Deferred tax liability, net 9 17 Other liabilities 230 132 Total liabilities 336 207 Stockholders’ equity 142,634 138,125 Total liabilities and stockholders’ equity $ 142,970 $ 138,332 FIRST FINANCIAL NORTHWEST, INC. Condensed Income Statements Year Ended December 31, 2017 2016 2015 (In thousands) Operating income: Interest income: Interest-bearing deposits with banks $ 47 $ 92 $ 143 Other income — — 2 Total operating income 47 92 145 Operating expenses: Other expenses 1,534 1,913 1,440 Total operating expenses 1,534 1,913 1,440 Loss before provision for federal income taxes and equity in undistributed earnings of subsidiaries (1,487 ) (1,821 ) (1,295 ) Federal income tax benefit (565 ) (701 ) (601 ) Loss before equity in undistributed loss of subsidiaries (922 ) (1,120 ) (694 ) Equity in undistributed earnings of subsidiaries 9,401 10,012 9,854 Net income $ 8,479 $ 8,892 $ 9,160 FIRST FINANCIAL NORTHWEST, INC. Condensed Statements of Cash Flows Year Ended December 31, 2017 2016 2015 (In thousands) Cash flows from operating activities: Net income $ 8,479 $ 8,892 $ 9,160 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed earnings of subsidiaries (9,401 ) (10,012 ) (9,854 ) Dividends received from subsidiary 8,528 4,417 6,785 ESOP, stock options, and restricted stock compensation 27 27 — Change in deferred tax assets, net (8 ) 40 1,101 Change in receivables from subsidiaries (1,518 ) 1,578 (1,608 ) Change in payables to subsidiaries 39 (26 ) (32 ) Change in other assets 55 4 (55 ) Changes in other liabilities 98 21 (8 ) Net cash provided by operating activities 6,299 4,941 5,489 Cash flows from investing activities: Investments in subsidiaries — — — ESOP loan repayment 1,229 1,171 1,115 Net cash provided in investing activities 1,229 1,171 1,115 Cash flows from financing activities: Proceeds from exercise of stock options 1,309 298 935 Proceeds for vested awards 371 370 282 Net share settlement of stock awards (138 ) (98 ) — Repurchase and retirement of common stock (5,238 ) (40,812 ) (18,717 ) Dividends paid (2,777 ) (2,803 ) (3,237 ) Net cash used by financing activities (6,473 ) (43,045 ) (20,737 ) Net increase (decrease) in cash 1,055 (36,933 ) (14,133 ) Cash and cash equivalents at beginning of year 13,405 50,338 64,471 Cash and cash equivalents at end of year $ 14,460 $ 13,405 $ 50,338 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
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 EPS for the periods indicated. Year Ended December 31, 2017 2016 2015 (Dollars in thousands, except share data) Net income $ 8,479 $ 8,892 $ 9,160 Earnings allocated to participating securities (4 ) (21 ) (31 ) Earnings allocated to common shareholders $ 8,475 $ 8,871 $ 9,129 Basic weighted-average common shares outstanding 10,289,049 11,868,278 13,528,393 Dilutive effect of stock options 137,950 143,605 136,670 Dilutive effect of restricted stock grants 10,450 16,545 20,919 Diluted weighted-average common shares outstanding 10,437,449 12,028,428 13,685,982 Basic earnings per share $ 0.82 $ 0.75 $ 0.67 Diluted earnings per share $ 0.81 $ 0.74 $ 0.67 Potential dilutive shares are excluded from the computation of EPS if their effect is anti-dilutive. For the year ended December 31, 2017, there were no anti-dilutive shares outstanding related to options to acquire common stock. For the years ended December 31, 2016 and 2015, anti-dilutive shares outstanding related to options to acquire common stock totaled 60,000 , and 225,000 , respectively, because the incremental shares under the treasury stock method of calculation resulted in them being antidilutive. |
Summarized Consolidated Quarter
Summarized Consolidated Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
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 Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in thousands, except share data) 2017 Total interest income $ 10,998 $ 11,343 $ 12,003 $ 13,300 Total interest expense 2,136 2,346 2,628 2,912 Net interest income 8,862 8,997 9,375 10,388 Provision (recapture of provision) for loan losses 200 100 500 (1,200 ) Net interest income after provision (recapture of provision) for loan losses 8,662 8,897 8,875 11,588 Total noninterest income 535 731 731 211 Total noninterest expense 6,068 6,836 6,836 7,069 Income before provision for income taxes 3,129 2,792 2,770 4,730 Provision for federal income tax expense 785 924 909 2,324 Net income $ 2,344 $ 1,868 $ 1,861 $ 2,406 Basic earnings per share (1) $ 0.23 $ 0.18 $ 0.18 $ 0.24 Diluted earnings per share $ 0.22 $ 0.18 $ 0.18 $ 0.23 2016 Total interest income $ 9,562 $ 9,896 $ 10,842 $ 11,409 Total interest expense 1,781 1,713 1,908 2,105 Net interest income 7,781 8,183 8,934 9,304 (Recapture of provision) provision for loan losses (100 ) 600 900 (100 ) Net interest income after (recapture of provision) provision for loan losses 7,881 7,583 8,034 9,404 Total noninterest income 480 708 673 790 Total noninterest expense 5,773 6,072 5,254 5,850 Income before provision for income taxes 2,588 2,219 3,453 4,344 Provision for federal income tax expense 763 779 847 1,323 Net income $ 1,825 $ 1,440 $ 2,606 $ 3,021 Basic earnings per share (1) $ 0.14 $ 0.12 $ 0.22 $ 0.29 Diluted earnings per share (1) $ 0.14 $ 0.11 $ 0.22 $ 0.29 2015 Total interest income $ 9,154 $ 9,221 $ 9,358 $ 9,464 Total interest expense 1,632 1,653 1,694 1,772 Net interest income 7,522 7,568 7,664 7,692 Recapture of provision for loan losses (100 ) (500 ) (700 ) (900 ) Net interest income after recapture of provision for loan losses 7,622 8,068 8,364 8,592 Total noninterest income 91 357 447 384 Total noninterest expense 4,290 4,874 5,381 5,333 Income before provision (benefit) for income taxes 3,423 3,551 3,430 3,643 Provision for federal income tax expense 1,194 1,183 984 1,526 Net income $ 2,229 $ 2,368 $ 2,446 $ 2,117 Basic earnings per share $ 0.16 $ 0.17 $ 0.18 $ 0.16 Diluted earnings per share $ 0.16 $ 0.17 $ 0.18 $ 0.16 (1) Basic and diluted quarterly earnings per share may not equal total for year due to rounding. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 24, 2018, we received a $20.0 million payment on our largest loan. This construction/land loan had a balance of $22.0 million at December 31, 2017. On February 21, 2018, we received a $4.0 million payment from a borrower for the remaining balances of previously charged off loans, resulting in a $3.1 million recovery and the recognition of $914,000 of interest income. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Policy [Policy Text Block] | Transfer of Financial Assets Transfers of an entire financial asset, a group of entire financial assets, or participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Bank, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Basis of Presentation and Use of Estimates | Nature of Operations and Principles of Consolidation 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 Financial Northwest Bank (“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 Financial Northwest Bank. Accordingly, the information presented in the consolidated financial statements and related data, relates primarily to First Financial Northwest Bank. First Financial Northwest converted from a savings and loan holding company to a bank holding company in 2015 and is subject to regulation by the Board of Governors of the Federal Reserve Bank of San Francisco (“FRB”). First Financial Northwest Bank is regulated by the Federal Deposit Insurance Corporation (“FDIC”) and the Washington State Department of Financial Institutions (“DFI”). First Financial Northwest 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 Financial Northwest 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, the Bank changed its name to First Savings Bank Northwest. In August 2015, the Bank changed its name to First Financial Northwest Bank to support the expansion of focus to being more than a traditional “savings” bank and in February 4, 2016 changed its charter from a Washington chartered stock savings bank to a Washington chartered commercial bank. First Financial Northwest Bank is a community-based commercial bank primarily serving King and Snohomish Counties, and to a lesser extent, Pierce and Kitsap Counties, Washington. In King County, the headquarters and full-service banking office as well as one branch office are located in Renton. Additional King County branch offices are located in Bellevue, and Woodinville, with a third scheduled to open in Bothell in the first quarter of 2018. In Snohomish County, five additional branch offices serve Mill Creek, Edmonds, Clearview, Smokey Point, and Lake Stevens. First Financial Northwest 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, business and consumer loans. First Financial Diversified Corporation (“FFD”), a wholly-owned subsidiary of First Financial Northwest, continues to hold a portfolio of one-to-four family, land and consumer loans that are serviced by the Bank. At December 31, 2017, FFD had net loans receivable of $2.0 million that were all performing. The accompanying consolidated financial statements include the accounts of First Financial Northwest and its wholly‑owned subsidiaries First Financial Northwest 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. 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. |
Subsequent Events | Subsequent Events The Company has evaluated events and transactions subsequent to December 31, 2017 for potential recognition or disclosure. See Note 19 - Subsequent Events for more information. |
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. At December 31, 2017, cash balances were sufficient where no additional reserve was required. At December 31, 2016, the required reserve was $ 228,000 . |
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, 2017, or 2016. 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 holding gains and losses on investments available-for-sale are excluded from earnings and are reported in other comprehensive income (loss), net of applicable taxes. 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 active markets 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 accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. 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 The allowance for loan and lease losses (“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 certain completion costs and closing costs when foreclosure is probable, instead of discounted cash flows. 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. 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. |
Loans and Leases Receivable, Troubled Debt Restructuring Policy [Policy Text Block] | Troubled Debt Restructurings Certain loan modifications or restructurings are accounted for as troubled debt restructurings (“TDR”). 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. |
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. Leasehold improvements are amortized over the life of the lease. 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 Des Moines (“FHLB”) stock, based on specified percentages of total assets 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 | 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 of foreclosed assets held for sale, the 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. |
Life Insurance, Corporate or Bank Owned [Text Block] | Bank-Owned Life Insurance The Company has purchased life insurance on certain key executives and officers. Bank-owned life insurance (“BOLI”) is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Increases to the cash surrender value are recorded as noninterest income and partially offset expenses for employee benefits. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as 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. |
Commitments and Contingencies, Policy [Policy Text Block] | 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 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 | 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 and records its provision for income taxes under the asset and liability method. Deferred taxes result from temporary differences in the recognition of certain income and expense amounts between the Company’s financial statements and its tax return. The principal items giving rise to these differences include net operating losses, valuation adjustments on foreclosed properties, and allowance for credit losses. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. 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 potential deferred tax asset will not be realized. The Company’s policy is to recognize interest and penalties associated with income tax matters in income tax expense. |
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 Nonvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are participating securities and are included in the computation of earnings per share (“EPS”) pursuant to the two-class method. The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared or accumulated and participation rights in undistributed earnings. Certain shares 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. As ESOP shares are committed to be released, they are included in the outstanding shares used in the basic EPS calculation. Diluted earnings per share is computed in a similar manner, except that first the denominator is increased to include the number of additional shares that would have been outstanding if potentially dilutive shares, excluding the participating securities, were issued using the treasury stock method. For all periods presented, stock options and certain restricted stock awards are potentially dilutive non-participating instruments issued by the Company. Undistributed losses are not allocated to the nonvested share-based payment awards (the participating securities) under the two-class method as the holders are not contractually obligated to share in the losses of the Company. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and unrealized gains and losses on investments available-for-sale and derivatives 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. |
Reclassification, Policy [Policy Text Block] | 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. |
Derivatives, Policy [Policy Text Block] | Derivatives The Company designates certain interest rate swap agreements as a cash flow hedge, and as such, reports the fair value as an asset or liability. The hedge is utilized to mitigate the risk of variability in future interest payments. The fair value of the cash flow hedge is based on dealer quotes, pricing models, discounted cash flow methodologies or similar techniques for which the determination of fair value may require significant management judgment or estimation. The derivative is marked to its fair value, with the effective portion of changes recorded as other comprehensive income or loss. Any portion of the change in fair value that is considered to be ineffective is recognized immediately in earnings. The gain or loss on the derivative is removed from equity and recognized in earnings in the same period the corresponding loss or gain on the hedged cash flow is recognized in earnings. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) . In August 2015, FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606) which postponed the effective date of 2014-09. Subsequently, in March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations. This amendment clarifies that an entity should determine if it is the principal or the agent for each specified good or service promised in a contract with a customer. In April 2016, the FASB issued ASU No. 2016-10 , Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The core principle of Topic 606 is that an entity must recognize revenue when it has satisfied a performance obligation of transferring promised goods or services to a customer. The standard is effective for public entities for interim and annual periods beginning after December 15, 2017; early adoption is not permitted. The standard allows for full retrospective adoption for all periods presented or modified retrospective adoption to only the most current period presented in the financial statements. The cumulative effect of initially applying the standard is recognized at the date of the initial application. Our primary source of revenue is interest income, which is recognized as it is earned and is deemed to be in compliance with this ASU. With respect to noninterest income, the Company is in process of identifying and evaluating the revenue streams and underlying revenue contracts within the scope of the guidance. The Company is developing processes and procedures to ensure it is fully compliant with this ASU. To date, the Company has not yet identified any significant changes in the timing of revenue recognition when considering the amended accounting guidance; however, the Company’s implementation efforts are ongoing and such assessments may change prior to implementing this ASU in 2018. Accordingly, the Company does not expect implementation of this standard to have a material impact on our consolidated financial statements. In January 2016, FASB issued ASU No. 2016-01, Financial Instruments - Overall, Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income. The amendments in this ASU also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in instrument-specific credit risk. In addition, the ASU eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. The ASU also clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted for fiscal years or interim periods that have not yet been issued if adopted at the beginning of the fiscal year. The Company is reviewing our available-for-sale investment portfolio in accordance with the provision of this standard. The adoption of ASU 2016-01 is not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) . ASU No. 2016-02 requires lessees to recognize on the balance sheet the assets and liabilities arising from operating leases. A lessee should recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. A lessee should include payments to be made in an optional period only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. For a finance lease, interest payments should be recognized separately from amortization of the right-of-use asset in the statement of comprehensive income. For operating leases, the lease cost should be allocated over the lease term on a generally straight-line basis. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in the ASU is permitted. The effect of the adoption will depend on leases at the time of adoption. Once adopted, we expect to report higher assets and liabilities as a result of including right-of-use assets and lease liabilities related to certain banking offices under noncancelable operating lease agreements, however, based on current leases, the adoption is expected to increase our consolidated balance sheets by less than 5% and not to have a material impact on our regulatory capital ratios. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326). This ASU replaces the existing incurred loss impairment methodology that recognizes credit losses when a probable loss has been incurred with new methodology where loss estimates are based upon lifetime expected credit losses. The amendments in this ASU require a financial asset that is measured at amortized cost to be presented at the net amount expected to be collected. The income statement would then reflect the measurement of credit losses for newly recognized financial assets as well as changes to the expected credit losses that have taken place during the reporting period. The measurement of expected credit losses will be based on historical information, current conditions, and reasonable and supportable forecasts that impact the collectability of the reported amount. Available-for-sale securities will bifurcate the fair value mark and establish an allowance for credit losses through the income statement for the credit portion of that mark. The interest portion will continue to be recognized through accumulated other comprehensive income or loss. The change in allowance recognized as a result of adoption will occur through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the ASU is adopted. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2018. The Company is evaluating our current expected loss methodology of our loan and investment portfolios to identify the necessary modifications in accordance with this standard and expects a change in the processes and procedures to calculate the ALLL, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. A valuation adjustment to our ALLL or investment portfolio that is identified in this process will be reflected as a one-time adjustment in equity rather than earnings. We are in the process of compiling historical data that will be used to calculate expected credit losses on our loan portfolio to ensure we are fully compliant with the ASU at the adoption date and are evaluating the potential impact adoption of this ASU will have on our consolidated financial statements. Once adopted, we expect our allowance for loan losses to increase, however, until our evaluation is complete the magnitude of the increase will be unknown. In August 2016, FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . This ASU was to address the appropriate classification of eight specific cash flow issues on the cash flow statement. Debt prepayment costs should be classified as an outflow for financing activities. Settlement of zero-coupon debt instruments divides the interest portion as an outflow for operating activities and the principal portion as an outflow for financing activities. Contingent consideration payments made after a business combination should be classified as outflows for financing and operating activities. Proceeds from the settlement of bank-owned life insurance policies should be classified as inflows from investing activities. Other specific areas are identified in the ASU as to the appropriate classification of the cash inflows or outflows. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company does not currently have items on its cash flow statement that would be impacted by adoption of this ASU. Adoption of ASU 2016-15 is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, FASB issued ASU 2017-01, Business Combinations (Topic 805) . This ASU clarifies the definition of a business to assist in determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this ASU provide a screen to determine when a set of assets and activities is not a business, thereby reducing the number of transactions requiring further evaluation. If the screen is not met, the amendments in this ASU further provide a framework to evaluate if the criteria is present to qualify for a business. This ASU is effective for annual periods beginning after December 15, 2017 and should be applied prospectively on or after the effective date. Adoption of ASU 2017-01 is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350). This ASU simplifies the impairment calculation for subsequent measurement of goodwill by eliminating the step of comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the amendments in this ASU, an entity will evaluate the carrying amount of a reporting unit to its fair value, as if the reporting unit had been acquired in a business combination. An impairment charge should be recognized for the amount that the carrying amount exceeds the fair value, not to exceed the amount of goodwill. The income tax effect should be considered for any tax deductible goodwill when measuring the impairment loss. The amendments in this ASU are effective for goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for reporting periods after January 1, 2017. The Company recognized goodwill from its recent Branch Acquisition and intends on adopting this ASU in 2018. Adoption of ASU 2017-04 is not expected to have a material impact on the Company’s consolidated financial statements. In March 2017, FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities . The ASU shortens the amortization period for certain callable debt securities held at a premium. The ASU will take effect for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The adoption of ASU No. 2017-08 is not expected to have a material impact on the Company's consolidated financial statements. In May 2017, FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting . The ASU was issued to provide clarity as to when to apply modification accounting when there is a change in the terms or conditions of a share-based payment award. According to this ASU, an entity should account for the effects of a modification unless the fair value, vesting conditions, and balance sheet classification of the award is the same after the modification as compared to the original award prior to the modification. This ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company has not had any modifications on share-based payment awards. The adoption of ASU No. 2017-09 is not expected to have a material impact on the Company’s consolidated financial statements. In August 2017, FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815). This ASU was issued to provide investors better insight to an entity’s risk management hedging strategies by permitting companies to recognize the economic results of its hedging strategies in its financial statements. The amendments in this ASU permit hedge accounting for hedging relationships involving nonfinancial risk and interest rate risk by removing certain limitations in cash flow and fair value hedging relationships. In addition, the ASU requires an entity to present the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported. This ASU is effective for fiscal years beginning after December 15, 2018, and early adoption is permitted. Adoption of ASU 2017-12 is not expected to have a material impact on the Company’s consolidated financial statements. In February 2018, FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220). This ASU was issued to allow a reclassification from accumulated other comprehensive income to retained earnings from stranded tax effects resulting from the revaluation of the net deferred tax asset (“DTA”) to the new corporate tax rate of 21% as a result of the Tax Act. The ASU is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company has adopted this ASU as of December 31, 2017, which resulted in reclassifying a net unrealized gain from the change in tax rate with an increase to accumulated other comprehensive income and a decrease to retained earnings by $41,000, respectively. |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | At August 25, 2017 (In thousands) Purchase price $ 3,008 Recognized amounts of identifiable assets acquired and (liabilities assumed), at fair value Cash and cash equivalents 74,657 Premises and equipment, net 672 Core deposit intangible 1,319 Deposits (74,529 ) Total fair value of identifiable net assets 2,119 Goodwill 889 The following table presents the estimated fair values of the assets received and liabilities assumed as of the acquisition date: At August 25, 2017 Acquired Book Value Fair Value Adjustments Amount Recorded (In thousands) Assets Cash and cash equivalents $ 71,649 $ — $ 71,649 Premises and equipment, net 553 119 672 Goodwill — 889 889 Core deposit intangible — 1,319 1,319 Total assets acquired $ 72,202 $ 2,327 $ 74,529 Liabilities Deposits Noninterest-bearing deposits $ 11,995 $ — $ 11,995 Interest-bearing deposits 62,662 (128 ) 62,534 Total deposits 74,657 (128 ) 74,529 Total liabilities assumed $ 74,657 $ (128 ) $ 74,529 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Amortization expense of the CDI is expected as follows: At August 25, 2017 (In thousands) 2017 $ 53 2018 150 2019 148 2020 144 2021 140 Thereafter 684 Total $ 1,319 Amortization of the fair value adjustment is expected as follows: At August 25, 2017 (In thousands) 2017 $ 21 2018 49 2019 30 2020 16 2021 9 2022 3 Total $ 128 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments [Abstract] | |
Available-for-sale Securities | The following tables summarize the amortized cost and fair value of investments available-for-sale at December 31, 2017 , and 2016 , and the corresponding amounts of gross unrealized gains and losses. December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Mortgage-backed investments: Fannie Mae $ 26,961 $ 69 $ (466 ) $ 26,564 Freddie Mac 5,510 18 (56 ) 5,472 Ginnie Mae 22,288 14 (726 ) 21,576 Municipal bonds 13,126 290 (21 ) 13,395 U.S. Government agencies 43,088 81 (536 ) 42,633 Corporate bonds 22,502 527 (427 ) 22,602 $ 133,475 $ 999 $ (2,232 ) $ 132,242 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Mortgage-backed investments: Fannie Mae $ 42,060 $ 126 $ (854 ) $ 41,332 Freddie Mac 18,013 95 (99 ) 18,009 Ginnie Mae 19,133 41 (540 ) 18,634 Municipal bonds 13,203 11 (107 ) 13,107 U.S. Government agencies 15,937 75 (155 ) 15,857 Corporate bonds 22,506 241 (426 ) 22,321 $ 130,852 $ 589 $ (2,181 ) $ 129,260 |
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, 2017 Amortized Cost Fair Value (In thousands) Due within one year $ 5,035 $ 5,040 Due after one year through five years 1,658 1,663 Due after five years through ten years 20,645 20,756 Due after ten years 51,378 51,171 78,716 78,630 Mortgage-backed investments 54,759 53,612 $ 133,475 $ 132,242 |
Gain (Loss) on Investments | Sales and other redemptions of available-for-sale investments were as follows: Year Ended December 31, 2017 2016 2015 (In thousands) Proceeds $ 44,164 $ 26,437 $ 27,327 Gross gains 119 245 449 Gross losses (686 ) (195 ) (357 ) |
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, 2017 and 2016 . December 31, 2017 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (In thousands) Mortgage-backed investments: Fannie Mae $ 15,202 $ (91 ) $ 6,759 $ (375 ) $ 21,961 $ (466 ) Freddie Mac 3,189 (56 ) — — 3,189 (56 ) Ginnie Mae 6,454 (61 ) 14,234 (665 ) 20,688 (726 ) Municipal bonds 1,403 (21 ) — — 1,403 (21 ) U.S. Government agencies 33,268 (435 ) 1,800 (101 ) 35,068 (536 ) Corporate bonds 1,499 (1 ) 7,074 (426 ) 8,573 (427 ) $ 61,015 $ (665 ) $ 29,867 $ (1,567 ) $ 90,882 $ (2,232 ) December 31, 2016 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (In thousands) Mortgage-backed investments: Fannie Mae $ 34,763 $ (854 ) $ — $ — $ 34,763 $ (854 ) Freddie Mac 8,343 (99 ) — — 8,343 (99 ) Ginnie Mae 16,734 (540 ) — — 16,734 (540 ) Municipal bonds 8,815 (107 ) — — 8,815 (107 ) U.S. Government agencies 9,000 (153 ) 1,426 (2 ) 10,426 (155 ) Corporate bonds 3,880 (119 ) 4,693 (307 ) 8,573 (426 ) $ 81,535 $ (1,872 ) $ 6,119 $ (309 ) $ 87,654 $ (2,181 ) |
Loans Receivable (Tables)
Loans Receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans receivable at December 31, 2017 , and 2016 are summarized as follows: December 31, 2017 2016 (In thousands) One-to-four family residential: Permanent owner occupied $ 148,304 $ 137,834 Permanent non-owner occupied 130,351 111,601 278,655 249,435 Multifamily: Permanent 184,902 123,250 184,902 123,250 Commercial real estate: Permanent 361,842 303,694 361,842 303,694 Construction/land: (1) One-to-four family residential 87,404 67,842 Multifamily 108,439 111,051 Commercial 5,325 — Land 36,405 30,055 237,573 208,948 Business 23,087 7,938 Consumer 9,133 6,922 Total loans 1,095,192 900,187 Less: Loans in process (“LIP”) 92,498 72,026 Deferred loan fees, net 1,150 2,167 Allowance for loan and lease losses ("ALLL") 12,882 10,951 Loans receivable, net $ 988,662 $ 815,043 ___________ (1) Included in the construction/land category are “rollover” loans, which are loans that will convert upon completion of the construction period to permanent loans. At that time, the loans will be classified according to the underlying collateral. In addition, raw land or buildable lots, where the Company does not intend to finance the construction are included in the construction/land category. At December 31, 2017, we classified $71.4 million of multifamily loans, $35.9 million of commercial land loans, $2.6 million of one-to-four family residential and $5.3 million of commercial real estate loans as construction/land loans to facilitate the review of the composition of our loan portfolio. At December 31, 2016, $62.9 million of multifamily loans, $26.9 million of commercial land loans and $2.6 million one-to-four family residential loans were reclassified to the construction/land category. Accrued interest receivable consisted of the following at December 31, 2017 and 2016 : December 31, 2017 2016 (In thousands) Loans receivable $ 3,492 $ 2,665 Investments 590 478 Interest-earning deposits 2 4 $ 4,084 $ 3,147 |
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, 2017 , and 2016 , was as follows: December 31, 2017 Fixed Rate Adjustable Rate Term to Maturity Principal Balance Term to Rate Adjustment Principal Balance (In thousands) Due within one year $ 37,472 Due within one year $ 292,398 After one year through three years 102,630 After one year through three years 51,520 After three years through five years 80,811 After three years through five years 127,973 After five years through ten years 132,086 After five years through ten years 95,091 Thereafter 175,211 Thereafter — $ 528,210 $ 566,982 December 31, 2016 Fixed Rate Adjustable Rate Term to Maturity Principal Balance Term to Rate Adjustment Principal Balance (In thousands) Due within one year $ 23,513 Due within one year $ 214,794 After one year through three years 106,138 After one year through three years 32,448 After three years through five years 71,251 After three years through five years 118,350 After five years through ten years 145,063 After five years through ten years 29,922 Thereafter 158,708 Thereafter — $ 504,673 $ 395,514 |
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, 2017 One-to-Four Family Residential Multifamily Commercial Real Estate Construction/ Land Business Consumer Total ALLL: (In thousands) Beginning balance $ 2,551 $ 1,199 $ 3,893 $ 2,792 $ 237 $ 279 $ 10,951 Charge-offs — — — — — — — Recoveries 2,195 — 78 — — 58 2,331 (Recapture) provision (1,909 ) 621 447 24 457 (40 ) (400 ) Ending balance $ 2,837 $ 1,820 $ 4,418 $ 2,816 $ 694 $ 297 $ 12,882 General reserve $ 2,721 $ 1,820 $ 4,399 $ 2,816 $ 694 $ 297 $ 12,747 Specific reserve 116 — 19 — — — 135 Loans: (1) Total Loans $ 278,655 $ 184,902 $ 361,299 $ 145,618 $ 23,087 $ 9,133 $ 1,002,694 General reserve (2) 265,093 183,768 358,105 145,618 23,087 9,039 984,710 Specific reserve (3) 13,562 1,134 3,194 — — 94 17,984 ____________ (1) Net of LIP. (2) Loans collectively evaluated for impairment. (3) Loans individually evaluated for impairment. At or For the Year Ended December 31, 2016 One-to-Four Family Residential Multifamily Commercial Real Estate Construction/ Land Business Consumer Total ALLL: (In thousands) Beginning balance $ 3,028 $ 1,193 $ 3,395 $ 1,193 $ 229 $ 425 $ 9,463 Charge-offs — — — — — (83 ) (83 ) Recoveries 165 1 104 — — 1 271 (Recapture) provision (642 ) 5 394 1,599 8 (64 ) 1,300 Ending balance $ 2,551 $ 1,199 $ 3,893 $ 2,792 $ 237 $ 279 $ 10,951 General reserve $ 2,349 $ 1,199 $ 3,867 $ 2,711 $ 237 $ 279 $ 10,642 Specific reserve 202 — 26 81 — — 309 Loans: (1) Total Loans $ 249,435 $ 123,250 $ 303,694 $ 136,922 $ 7,938 $ 6,922 $ 828,161 General reserve (2) 224,363 121,686 299,987 136,427 7,938 6,819 797,220 Specific reserve (3) 25,072 1,564 3,707 495 — 103 30,941 _____________ (1) Net of LIP. (2) Loans collectively evaluated for impairment. (3) Loans individually evaluated for impairment. At or For the Year Ended December 31, 2015 One-to-Four Family Residential Multifamily Commercial Real Estate Construction/ Land Business Consumer Total ALLL: (In thousands) Beginning balance $ 3,691 $ 1,606 $ 4,476 $ 519 $ 47 $ 152 $ 10,491 Charge-offs (27 ) (281 ) — — — (54 ) (362 ) Recoveries 936 78 181 — 3 336 1,534 (Recapture) provision (1,572 ) (210 ) (1,262 ) 674 179 (9 ) (2,200 ) Ending balance $ 3,028 $ 1,193 $ 3,395 $ 1,193 $ 229 $ 425 $ 9,463 General reserve $ 2,516 $ 1,190 $ 3,270 $ 1,140 $ 229 $ 386 $ 8,731 Specific reserve 512 3 125 53 — 39 732 Loans: (1) Total Loans $ 253,772 $ 122,747 $ 244,211 $ 62,103 $ 7,604 $ 6,979 $ 697,416 General reserve (2) 217,677 121,152 239,765 61,158 7,604 6,771 654,127 Specific reserve (3) 36,095 1,595 4,896 495 — 208 43,289 ______________ (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, 2017 , and 2016 , of the aging of loans by type: Loans Past Due as of December 31, 2017 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 $ 101 $ — $ — $ 101 $ 148,203 $ 148,304 Non-owner occupied — — — — 130,351 130,351 Multifamily — — — — 184,902 184,902 Commercial real estate — — — — 361,299 361,299 Construction/land — — — — 145,618 145,618 Total real estate 101 — — 101 970,373 970,474 Business — — — — 23,087 23,087 Consumer — — — — 9,133 9,133 Total $ 101 $ — $ — $ 101 $ 1,002,593 $ 1,002,694 _________________________ (1) There were no loans 90 days past due and still accruing interest at December 31, 2017. (2) Net of LIP. Loans Past Due as of December 31, 2016 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 $ 304 $ — $ 169 $ 473 $ 137,361 $ 137,834 Non-owner occupied — — — — 111,601 111,601 Multifamily — — — — 123,250 123,250 Commercial real estate — — — — 303,694 303,694 Construction/land — — — — 136,922 136,922 Total real estate 304 — 169 473 812,828 813,301 Business — — — — 7,938 7,938 Consumer — — — — 6,922 6,922 Total $ 304 $ — $ 169 $ 473 $ 827,688 $ 828,161 ________________________ (1) There were no loans 90 days past due and still accruing interest at December 31, 2016. (2) Net of LIP. |
Schedule of non-accrual loans | The following table is a summary of nonaccrual loans at December 31, 2017 , and 2016 , by type of loan: December 31, 2017 2016 (In thousands) One-to-four family residential $ 128 $ 798 Consumer 51 60 Total nonaccrual loans $ 179 $ 858 |
Financing Receivables, Summary of loans by type and payment activity | The following tables summarize the loan portfolio at December 31, 2017 , and 2016 , by type and payment activity: December 31, 2017 One-to-Four Family Residential Multifamily Commercial Real Estate Construction / Land Business Consumer Total (3) (In thousands) Performing (1) $ 278,527 $ 184,902 $ 361,299 $ 145,618 $ 23,087 $ 9,082 $ 1,002,515 Nonperforming (2) 128 — — — — 51 179 Total $ 278,655 $ 184,902 $ 361,299 $ 145,618 $ 23,087 $ 9,133 $ 1,002,694 ____________ (1) There were $ 148.2 million of owner-occupied one-to-four family residential loans and $ 130.3 million of non-owner occupied one-to-four family residential loans classified as performing. (2) There were $ 128,000 of owner-occupied one-to-four family residential loans and no non-owner occupied one-to-four family residential loans classified as nonperforming. (3) Net of LIP. December 31, 2016 One-to-Four Family Residential Multifamily Commercial Real Estate Construction/ Land Business Consumer Total (3) (In thousands) Performing (1) $ 248,637 $ 123,250 $ 303,694 $ 136,922 $ 7,938 $ 6,862 $ 827,303 Nonperforming (2) 798 — — — — 60 858 Total $ 249,435 $ 123,250 $ 303,694 $ 136,922 $ 7,938 $ 6,922 $ 828,161 _____________ (1) There were $ 137.0 million of owner-occupied one-to-four family residential loans and $ 111.6 million of non-owner occupied one-to-four family residential loans classified as performing. (2) There were $ 798,000 of owner-occupied one-to-four family residential loans and no 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, 2017 , and 2016 , by the type of loan: At December 31, 2017 Recorded Investment (1) Unpaid Principal Balance (2) Related Allowance (In thousands) Loans with no related allowance: One-to-four family residential: Owner occupied $ 1,321 $ 1,516 $ — Non-owner occupied 8,409 8,409 — Multifamily 1,134 1,134 — Commercial real estate 1,065 1,065 — Consumer 94 144 — Total 12,023 12,268 — Loans with an allowance: One-to-four family residential: Owner occupied 522 568 5 Non-owner occupied 3,310 3,332 111 Commercial real estate 2,129 2,129 19 Total 5,961 6,029 135 Total impaired loans: One-to-four family residential: Owner occupied 1,843 2,084 5 Non-owner occupied 11,719 11,741 111 Multifamily 1,134 1,134 — Commercial real estate 3,194 3,194 19 Consumer 94 144 — Total $ 17,984 $ 18,297 $ 135 _________________ (1) Represents the loan balance less charge-offs. (2) Contractual loan principal balance. At December 31, 2016 Recorded Investment (1) Unpaid Principal Balance (2) Related Allowance (In thousands) Loans with no related allowance: One-to-four family residential: Owner occupied $ 2,216 $ 2,475 $ — Non-owner occupied 16,634 16,652 — Multifamily 1,564 1,564 — Commercial real estate 2,952 3,029 — Consumer 103 223 — Total 23,469 23,943 — Loans with an allowance: One-to-four family residential: Owner occupied 1,896 1,965 51 Non-owner occupied 4,326 4,347 151 Commercial real estate 755 755 26 Construction/land 495 495 81 Total 7,472 7,562 309 Total impaired loans: One-to-four family residential: Owner occupied 4,112 4,440 51 Non-owner occupied 20,960 20,999 151 Multifamily 1,564 1,564 — Commercial real estate 3,707 3,784 26 Construction/land 495 495 81 Consumer 103 223 — Total $ 30,941 $ 31,505 $ 309 _____________ (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 for the years ended December 31, 2017 , 2016 and 2015 , by the type of loan: Year Ended December 31, 2017 2016 2015 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 $ 1,773 $ 93 $ 2,566 $ 156 $ 3,180 $ 110 Non-owner occupied 12,438 553 20,653 1,061 25,350 1,409 Multifamily 1,227 74 1,344 106 1,575 30 Commercial real estate 2,467 80 2,295 253 4,180 187 Consumer 98 8 117 12 125 2 Total 18,003 808 26,975 1,588 34,410 1,738 Loans with an allowance: One-to-four family residential: Owner occupied 1,301 32 2,026 104 2,131 89 Non-owner occupied 3,680 170 5,520 236 7,801 415 Multifamily — — 236 — 1,430 77 Commercial real estate 1,025 139 2,192 42 2,817 129 Construction/land 99 — 396 17 495 18 Consumer — — 30 — 77 3 Total 6,105 341 10,400 399 14,751 731 Total impaired loans: One-to-four family residential: Owner occupied 3,074 125 4,592 260 5,311 199 Non-owner occupied 16,118 723 26,173 1,297 33,151 1,824 Multifamily 1,227 74 1,580 106 3,005 107 Commercial real estate 3,492 219 4,487 295 6,997 316 Construction/land 99 — 396 17 495 18 Consumer 98 8 147 12 202 5 Total $ 24,108 $ 1,149 $ 37,375 $ 1,987 $ 49,161 $ 2,469 |
Schedule of Non-performing assets and troubled debt restructured loans | The following is a summary of information pertaining to TDRs: December 31, 2017 2016 (In thousands) Performing TDRs $ 17,805 $ 30,083 Nonaccrual TDRs — 174 Total TDRs $ 17,805 $ 30,257 |
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, 2017 2016 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) TDRs that occurred during the period: One-to-four family residential: Principal and interest with interest rate concession 8 $ 2,492 $ 2,492 19 $ 4,265 $ 4,265 Advancement of maturity date — — — 5 1,121 1,121 Commercial real estate: Advancement of maturity date 1 891 891 1 511 511 Interest-only payments with interest rate concession — — — 1 495 495 Total 9 $ 3,383 $ 3,383 26 $ 6,392 $ 6,392 |
Trouble Debt Restructurings on Financing Receivables, TDRs that subsequently defaulted | For the years ended December 31, 2017 and 2016 , there were no payment defaults on loans modified as TDRs within the previous 12 months. |
Financing Receivables, Summary of loans by type and risk category | The following tables represent a summary of loans at December 31, 2017 , and 2016 by type and risk category: December 31, 2017 One-to-Four Family Residential Multifamily Commercial Real Estate Construction/ Land Business Consumer Total (1) (In thousands) Risk Rating: Pass $ 275,653 $ 184,902 $ 358,285 $ 145,618 $ 23,087 $ 8,893 $ 996,438 Special mention 2,329 — 2,459 — — 188 4,976 Substandard 673 — 555 — — 52 1,280 Total $ 278,655 $ 184,902 $ 361,299 $ 145,618 $ 23,087 $ 9,133 $ 1,002,694 _____________ (1) Net of LIP. December 31, 2016 One-to-Four Family Residential Multifamily Commercial Real Estate Construction / Land Business Consumer Total (1) (In thousands) Risk Rating: Pass $ 245,237 $ 123,250 $ 300,655 $ 136,427 $ 7,938 $ 6,674 $ 820,181 Special mention 2,847 — 3,039 — — 188 6,074 Substandard 1,351 — — 495 — 60 1,906 Total $ 249,435 $ 123,250 $ 303,694 $ 136,922 $ 7,938 $ 6,922 $ 828,161 ______________ (1) Net of LIP. |
Schedule of Loans to Related Parties | Certain 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, 2017 2016 2015 (In thousands) Balance at beginning of year $ 60 $ 118 $ 138 Additions — — — Change in director or executive status during year — (40 ) — Repayments (51 ) (18 ) (20 ) Balance at end of year $ 9 $ 60 $ 118 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 (In thousands) Balance at beginning of year $ 2,331 $ 3,663 $ 9,283 Loans transferred to OREO — — 141 Gross proceeds from sale of OREO (1,908 ) (988 ) (6,246 ) Gain (loss) on sale of OREO 110 (87 ) 526 Market value adjustments (50 ) (257 ) (41 ) Balance at end of year $ 483 $ 2,331 $ 3,663 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and equipment consisted of the following at December 31, 2017 , and 2016 : December 31, 2017 2016 (In thousands) Land $ 2,226 $ 1,914 Buildings and improvements 19,436 17,820 Leasehold improvements 1,917 1,352 Furniture, fixtures and equipment 4,743 3,832 Computer hardware and software 2,323 1,924 Construction in process 67 704 30,712 27,546 Less accumulated depreciation and amortization (10,098 ) (9,085 ) Total premises and equipment, net $ 20,614 $ 18,461 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2013 | |
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): December 31, 2017 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 $ 26,564 $ — $ 26,564 $ — Freddie Mac 5,472 — 5,472 — Ginnie Mae 21,576 — 21,576 — Municipal bonds 13,395 — 13,395 — U.S. Government agencies 42,633 — 42,633 — Corporate bonds 22,602 — 22,602 — Total available-for-sale investments 132,242 — 132,242 — Derivative fair value asset 1,526 — 1,526 — $ 133,768 $ — $ 133,768 $ — December 31, 2016 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 $ 41,332 $ — $ 41,332 $ — Freddie Mac 18,009 — 18,009 — Ginnie Mae 18,634 — 18,634 — Municipal bonds 13,107 — 13,107 — U.S. Government agencies 15,857 — 15,857 — Corporate bonds 22,321 — 22,321 — Total available-for-sale investments $ 129,260 $ — $ 129,260 $ — Derivative fair value asset 1,333 — 1,333 — 130,593 — 130,593 — | |
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, 2017 , and 2016 . December 31, 2017 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) Impaired loans (included in loans receivable, net) (1) $ 17,849 $ — $ — $ 17,849 OREO 483 — — 483 Total $ 18,332 $ — $ — $ 18,332 _______________ (1) Total value of impaired loans is net of $ 135,000 of specific reserves on performing TDRs. December 31, 2016 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) Impaired loans (included in loans receivable, net) (1) $ 30,632 $ — $ — $ 30,632 OREO 2,331 — — 2,331 Total $ 32,963 $ — $ — $ 32,963 ________________ (1) Total value of impaired loans is net of $ 309,000 of specific reserves on performing TDRs. | |
Schedule of quantitative information about Level 3 Fair Value Measurements on a nonrecurring basis | The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at December 31, 2017 and 2016. December 31, 2017 Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average Change in Fair Value) (Dollars in thousands) Impaired Loans $ 17,849 Market approach Appraised value discounted by market or borrower conditions 0.0% (0.00%) OREO $ 483 Market approach Appraised value less selling costs 0.0% (0.00%) December 31, 2016 Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average Change in Fair Value) (Dollars in thousands) Impaired Loans $ 30,632 Market approach Appraised value discounted by market or borrower conditions 0.0% (0.00%) OREO $ 2,331 Market approach Appraised value less selling costs 0.0% (0.00%) | |
Fair Value, by Balance Sheet Grouping | The carrying amounts and estimated fair values of financial instruments at December 31, 2017 , and 2016 , were as follows: December 31, 2017 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 $ 9,189 $ 9,189 $ 9,189 $ — $ — Interest-earning deposits 6,942 6,942 6,942 — — Investments available-for-sale 132,242 132,242 — 132,242 — Loans receivable, net 988,662 980,578 — — 980,578 FHLB stock 9,882 9,882 — 9,882 — Accrued interest receivable 4,084 4,084 — 4,084 — Derivative fair value asset 1,526 1,526 — 1,526 — Financial Liabilities: Deposits 430,750 430,750 430,750 — — Certificates of deposit, retail 333,264 331,199 — 331,199 — Certificates of deposit, brokered 75,488 74,947 — 74,947 — Advances from the FHLB 216,000 214,477 — 214,477 — Accrued interest payable 326 326 — 326 — December 31, 2016 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 $ 5,779 $ 5,779 $ 5,779 $ — $ — Interest-earning deposits 25,573 25,573 25,573 — — Investments available-for-sale 129,260 129,260 — 129,260 — Loans receivable, net 815,043 818,054 — — 818,054 FHLB stock 8,031 8,031 — 8,031 — Accrued interest receivable 3,147 3,147 — 3,147 — Derivative fair value asset 1,333 1,333 — 1,333 — Financial Liabilities: Deposits 285,335 285,335 285,335 — — Certificates of deposit, retail 356,653 356,723 — 356,723 — Certificates of deposit, brokered 75,488 75,431 — 75,431 — Advances from the FHLB 171,500 170,221 — 170,221 — Accrued interest payable 231 231 — 231 — |
Accrued Interest Receivable (Ta
Accrued Interest Receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accrued Interest Receivable [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans receivable at December 31, 2017 , and 2016 are summarized as follows: December 31, 2017 2016 (In thousands) One-to-four family residential: Permanent owner occupied $ 148,304 $ 137,834 Permanent non-owner occupied 130,351 111,601 278,655 249,435 Multifamily: Permanent 184,902 123,250 184,902 123,250 Commercial real estate: Permanent 361,842 303,694 361,842 303,694 Construction/land: (1) One-to-four family residential 87,404 67,842 Multifamily 108,439 111,051 Commercial 5,325 — Land 36,405 30,055 237,573 208,948 Business 23,087 7,938 Consumer 9,133 6,922 Total loans 1,095,192 900,187 Less: Loans in process (“LIP”) 92,498 72,026 Deferred loan fees, net 1,150 2,167 Allowance for loan and lease losses ("ALLL") 12,882 10,951 Loans receivable, net $ 988,662 $ 815,043 ___________ (1) Included in the construction/land category are “rollover” loans, which are loans that will convert upon completion of the construction period to permanent loans. At that time, the loans will be classified according to the underlying collateral. In addition, raw land or buildable lots, where the Company does not intend to finance the construction are included in the construction/land category. At December 31, 2017, we classified $71.4 million of multifamily loans, $35.9 million of commercial land loans, $2.6 million of one-to-four family residential and $5.3 million of commercial real estate loans as construction/land loans to facilitate the review of the composition of our loan portfolio. At December 31, 2016, $62.9 million of multifamily loans, $26.9 million of commercial land loans and $2.6 million one-to-four family residential loans were reclassified to the construction/land category. Accrued interest receivable consisted of the following at December 31, 2017 and 2016 : December 31, 2017 2016 (In thousands) Loans receivable $ 3,492 $ 2,665 Investments 590 478 Interest-earning deposits 2 4 $ 4,084 $ 3,147 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Schedule of Deposit Liabilities | Deposit accounts consisted of the following at December 31, 2017 and 2016 : December 31, 2017 2016 (In thousands) Noninterest-bearing $ 45,434 $ 33,422 Interest-bearing demand 38,224 18,532 Statement savings 28,456 28,383 Money market 318,636 204,998 Certificates of deposit, retail (1) 333,264 356,653 Certificates of deposit, brokered 75,488 75,488 $ 839,502 $ 717,476 _______________ (1) Shown net of $107,000 fair value adjustment. |
Maturities of Certificates of Deposit | At December 31, 2017 , scheduled maturities of certificates of deposit were as follows: December 31, Amount (In thousands) 2018 $ 165,883 2019 162,298 2020 43,568 2021 31,037 2022 5,966 thereafter — $ 408,752 |
Schedule of Interest Expense on Deposits | Interest expense on deposits for the periods indicated was as follows: Year Ended December 31, 2017 2016 2015 (In thousands) Interest-bearing demand $ 73 $ 30 $ 18 Statement savings 42 47 40 Money market 1,779 870 603 Certificates of deposit, retail 4,362 3,934 3,574 Certificates of deposit, brokered 1,261 1,220 1,243 $ 7,517 $ 6,101 $ 5,478 |
Other Borrowings (Tables)
Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Borrowings [Abstract] | |
Schedule of Federal Home Loan Bank Advances | Outstanding advances at the FHLB for the years ended December 31 2017 , and 2016 consisted of the following: Year ended December 31, 2017 2016 (Dollars in thousands) Maximum borrowing outstanding at any month end $ 231,500 251,500 Average borrowing outstanding during year 192,227 163,893 Balance outstanding at end of year 216,000 171,500 Average rate paid during the year 1.30 % 0.87 % Weighted-average rate paid at end of year 1.60 0.87 Scheduled maturities of Federal Home Loan Bank outstanding advances at December 31, 2017, were as follows: Year Ended December 31, Balance Due Weighted Average Interest Rate at December 31, 2017 (Dollars in thousands) FHLB overnight Fed Funds $ 24,500 1.63 % 2018 61,500 1.41 2019 10,000 1.70 2020 120,000 1.68 $ 216,000 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table presents the fair value of derivative instruments as of December 31, 2017 and 2016 : Balance Sheet Location 2017 Fair Value 2016 Fair Value (In thousands) Interest rate swaps on FHLB debt designated as cash flow hedge Other assets $ 1,526 $ 1,333 Total derivatives $ 1,526 $ 1,333 |
Derivative Instruments, Gain (Loss) | The following table presents the net gains of derivative instruments recorded in accumulated other comprehensive income: Balance Sheet Location 2017 Amount of Gain Recognized In OCI 2016 Amount of Gain Recognized In OCI (In thousands) Interest rate swaps on FHLB debt designated as cash flow hedge Other assets $ 125 $ 866 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 (In thousands) ESOP contribution expense $ 1,941 $ 1,605 $ 1,400 Dividends on unallocated ESOP shares used to reduce ESOP contribution 175 183 210 Shares held by the ESOP at December 31, 2017 and 2016 , are as follows: December 31, 2017 2016 (Dollars in thousands, except share data) Allocated shares 1,156,747 1,043,893 Unallocated shares 536,053 648,907 Total ESOP shares 1,692,800 1,692,800 Fair value of unallocated shares $ 8,314 $ 12,809 |
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. There were no stock options granted in 2017 or 2016. Year Ended December 31, 2017 2016 2015 Annual dividend yield N/A N/A 1.77 % Expected volatility N/A N/A 35.30 Risk-free interest rate N/A N/A 2.23 Expected term N/A N/A 10.0 years Weighted-average grant date fair value per option granted N/A N/A $ 4.74 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | A summary of the Company’s stock option plan awards activity for the year ended December 31, 2017 follows: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term in Years Aggregate Intrinsic Value Outstanding at December 31, 2016 603,820 $ 10.19 Granted — — Exercised (134,880 ) 9.70 Forfeited or expired (16,000 ) 13.80 Outstanding at December 31, 2017 452,940 10.21 4.48 $ 2,402,096 Expected to vest assuming a 3% forfeiture rate over the vesting term 450,420 10.20 4.47 2,391,816 Exercisable at December 31, 2017 368,940 9.93 3.97 2,059,436 |
Schedule of Nonvested Restricted Stock Units Activity | A summary of changes in nonvested restricted stock awards for the year ended December 31, 2017 , follows: Nonvested Shares Shares Weighted Average Grant Date Fair Value Nonvested at December 31, 2016 26,400 $ 9.13 Granted 10,434 Vested (31,834 ) 8.72 Nonvested at December 31, 2017 5,000 10.88 Expected to vest assuming a 3% forfeiture rate over the vesting term 4,850 |
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 July 1: 2017 2016 Source Valuation Report Valuation Report First Financial Northwest’s Plan (1) 104.8 % 103.7 % _________________ (1) Market value of plan assets reflects any contributions received through June 30, 2017, or 2016, respectively. |
Schedule of Net Benefit Costs | Total contributions during the years ended December 31, 2017 , 2016 , and 2015 were: 2017 2016 2015 Date Paid Amount Date Paid Amount Date Paid Amount (in thousands) 10/12/2017 $ 38 10/7/2016 $ 40 11/25/2015 $ 540 11/30/2017 502 11/23/2016 500 Total $ 540 Total $ 540 Total $ 540 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense for the years indicated are as follows: Year Ended December 31, 2017 2016 2015 (In thousands) Current $ 3,204 $ 2,164 $ 717 Deferred 1,738 1,548 4,170 Total income tax expense $ 4,942 $ 3,712 $ 4,887 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the tax provision based on the statutory corporate rate of 35% during the years ended December 31, 2017 , 2016 and 2015 on pretax income is as follows: Year Ended December 31, 2017 2016 2015 (In thousands) Income tax expense at statutory rate $ 4,697 $ 4,412 $ 4,917 Income tax effect of: Tax exempt interest, net (107 ) (103 ) (38 ) Change in valuation allowance — — (112 ) Benefit of lower federal tax bracket (98 ) — (39 ) DTA revaluation 807 — — Other, net (357 ) (597 ) 159 Total income tax expense $ 4,942 $ 3,712 $ 4,887 |
Schedule of Deferred Tax Assets and Liabilities | The DTA, included in the accompanying consolidated balance sheets, consisted of the following at the dates indicated: December 31, 2017 2016 2015 (In thousands) Deferred tax assets: Charitable contributions $ — $ — $ 7 ALLL 2,700 3,803 3,257 Reserve for unfunded commitments 98 131 187 Deferred compensation 329 592 646 Net unrealized loss on investments available-for-sale 259 557 — Alternative minimum tax credit carryforward — 45 1,375 Employee benefit plans 533 951 1,051 OREO market value adjustments 4 231 213 Accrued expenses 112 453 510 Core deposit intangible 5 — — Expenses to facilitate branch acquisition 62 — — Total deferred tax assets $ 4,102 $ 6,763 $ 7,246 Deferred tax liabilities: FHLB stock dividends 271 552 1,255 Loan origination fees and costs 1,321 1,477 870 Net unrealized gain on investments available for sale — — 44 Gain on fair value of cash flow hedge 320 467 — Fixed assets 891 869 299 Goodwill 4 — — Other, net 84 256 222 Total deferred tax liabilities $ 2,891 $ 3,621 $ 2,690 Deferred tax assets, net $ 1,211 $ 3,142 $ 4,556 |
Regulatory Capital Requiremen41
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Capital Amounts and Ratios | he Bank’s actual capital amounts and ratios at December 31, 2017 , and 2016 , 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, 2017: Total risk-based capital Bank only $ 134,292 13.77 % $ 78,006 8.00 % $ 97,507 10.00 % Parent company 153,885 15.75 78,147 8.00 97,683 10.00 Tier 1 risk-based capital Bank only 122,090 12.52 58,504 6.00 78,006 8.00 Parent company 141,660 14.50 58,610 6.00 78,147 8.00 Common equity tier 1 capital (“CET1”) Bank only 122,090 12.52 43,878 4.50 63,379 6.50 Parent company 141,660 14.50 43,957 4.50 63,494 6.50 Tier 1 leverage capital Bank only 122,090 10.20 47,874 4.00 59,843 5.00 Parent company 141,660 11.82 47,955 4.00 59,944 5.00 December 31, 2016: Total risk-based capital Bank only $ 130,078 15.61 % $ 66,662 8.00 % $ 83,328 10.00 % Parent company 149,890 17.93 66,874 8.00 83,592 10.00 Tier 1 risk-based capital Bank only 119,652 14.36 49,997 6.00 66,662 8.00 Parent company 139,430 16.68 50,155 6.00 66,874 8.00 Common equity tier 1 capital Bank only 119,652 14.36 37,498 4.50 54,163 6.50 Parent company 139,430 16.68 37,616 4.50 54,335 6.50 Tier 1 leverage capital Bank only 119,652 11.17 42,846 4.00 53,558 5.00 Parent company 139,430 13.02 42,837 4.00 53,546 5.00 |
Parent Company Only Financial42
Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Parent Company Only Financial Statements [Abstract] | |
Schedule of Condensed Balance Sheet | FIRST FINANCIAL NORTHWEST, INC. Condensed Balance Sheets December 31, 2017 2016 (In thousands) Assets Cash and cash equivalents $ 151 $ 106 Interest-bearing deposits 14,309 13,299 Investment in subsidiaries 125,530 123,267 Receivable from subsidiaries 2,933 1,558 Other assets 47 102 Total assets $ 142,970 $ 138,332 Liabilities and Stockholders’ Equity Liabilities: Payable to subsidiaries $ 97 $ 58 Deferred tax liability, net 9 17 Other liabilities 230 132 Total liabilities 336 207 Stockholders’ equity 142,634 138,125 Total liabilities and stockholders’ equity $ 142,970 $ 138,332 |
Schedule of Condensed Income Statement | FIRST FINANCIAL NORTHWEST, INC. Condensed Income Statements Year Ended December 31, 2017 2016 2015 (In thousands) Operating income: Interest income: Interest-bearing deposits with banks $ 47 $ 92 $ 143 Other income — — 2 Total operating income 47 92 145 Operating expenses: Other expenses 1,534 1,913 1,440 Total operating expenses 1,534 1,913 1,440 Loss before provision for federal income taxes and equity in undistributed earnings of subsidiaries (1,487 ) (1,821 ) (1,295 ) Federal income tax benefit (565 ) (701 ) (601 ) Loss before equity in undistributed loss of subsidiaries (922 ) (1,120 ) (694 ) Equity in undistributed earnings of subsidiaries 9,401 10,012 9,854 Net income $ 8,479 $ 8,892 $ 9,160 |
Schedule of Condensed Cash Flow Statement | FIRST FINANCIAL NORTHWEST, INC. Condensed Statements of Cash Flows Year Ended December 31, 2017 2016 2015 (In thousands) Cash flows from operating activities: Net income $ 8,479 $ 8,892 $ 9,160 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed earnings of subsidiaries (9,401 ) (10,012 ) (9,854 ) Dividends received from subsidiary 8,528 4,417 6,785 ESOP, stock options, and restricted stock compensation 27 27 — Change in deferred tax assets, net (8 ) 40 1,101 Change in receivables from subsidiaries (1,518 ) 1,578 (1,608 ) Change in payables to subsidiaries 39 (26 ) (32 ) Change in other assets 55 4 (55 ) Changes in other liabilities 98 21 (8 ) Net cash provided by operating activities 6,299 4,941 5,489 Cash flows from investing activities: Investments in subsidiaries — — — ESOP loan repayment 1,229 1,171 1,115 Net cash provided in investing activities 1,229 1,171 1,115 Cash flows from financing activities: Proceeds from exercise of stock options 1,309 298 935 Proceeds for vested awards 371 370 282 Net share settlement of stock awards (138 ) (98 ) — Repurchase and retirement of common stock (5,238 ) (40,812 ) (18,717 ) Dividends paid (2,777 ) (2,803 ) (3,237 ) Net cash used by financing activities (6,473 ) (43,045 ) (20,737 ) Net increase (decrease) in cash 1,055 (36,933 ) (14,133 ) Cash and cash equivalents at beginning of year 13,405 50,338 64,471 Cash and cash equivalents at end of year $ 14,460 $ 13,405 $ 50,338 |
Earnings Per Share_ Schedule of
Earnings Per Share: Schedule of Earnings Per Share Reconciliation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 EPS for the periods indicated. Year Ended December 31, 2017 2016 2015 (Dollars in thousands, except share data) Net income $ 8,479 $ 8,892 $ 9,160 Earnings allocated to participating securities (4 ) (21 ) (31 ) Earnings allocated to common shareholders $ 8,475 $ 8,871 $ 9,129 Basic weighted-average common shares outstanding 10,289,049 11,868,278 13,528,393 Dilutive effect of stock options 137,950 143,605 136,670 Dilutive effect of restricted stock grants 10,450 16,545 20,919 Diluted weighted-average common shares outstanding 10,437,449 12,028,428 13,685,982 Basic earnings per share $ 0.82 $ 0.75 $ 0.67 Diluted earnings per share $ 0.81 $ 0.74 $ 0.67 |
Summarized Consolidated Quart44
Summarized Consolidated Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in thousands, except share data) 2017 Total interest income $ 10,998 $ 11,343 $ 12,003 $ 13,300 Total interest expense 2,136 2,346 2,628 2,912 Net interest income 8,862 8,997 9,375 10,388 Provision (recapture of provision) for loan losses 200 100 500 (1,200 ) Net interest income after provision (recapture of provision) for loan losses 8,662 8,897 8,875 11,588 Total noninterest income 535 731 731 211 Total noninterest expense 6,068 6,836 6,836 7,069 Income before provision for income taxes 3,129 2,792 2,770 4,730 Provision for federal income tax expense 785 924 909 2,324 Net income $ 2,344 $ 1,868 $ 1,861 $ 2,406 Basic earnings per share (1) $ 0.23 $ 0.18 $ 0.18 $ 0.24 Diluted earnings per share $ 0.22 $ 0.18 $ 0.18 $ 0.23 2016 Total interest income $ 9,562 $ 9,896 $ 10,842 $ 11,409 Total interest expense 1,781 1,713 1,908 2,105 Net interest income 7,781 8,183 8,934 9,304 (Recapture of provision) provision for loan losses (100 ) 600 900 (100 ) Net interest income after (recapture of provision) provision for loan losses 7,881 7,583 8,034 9,404 Total noninterest income 480 708 673 790 Total noninterest expense 5,773 6,072 5,254 5,850 Income before provision for income taxes 2,588 2,219 3,453 4,344 Provision for federal income tax expense 763 779 847 1,323 Net income $ 1,825 $ 1,440 $ 2,606 $ 3,021 Basic earnings per share (1) $ 0.14 $ 0.12 $ 0.22 $ 0.29 Diluted earnings per share (1) $ 0.14 $ 0.11 $ 0.22 $ 0.29 2015 Total interest income $ 9,154 $ 9,221 $ 9,358 $ 9,464 Total interest expense 1,632 1,653 1,694 1,772 Net interest income 7,522 7,568 7,664 7,692 Recapture of provision for loan losses (100 ) (500 ) (700 ) (900 ) Net interest income after recapture of provision for loan losses 7,622 8,068 8,364 8,592 Total noninterest income 91 357 447 384 Total noninterest expense 4,290 4,874 5,381 5,333 Income before provision (benefit) for income taxes 3,423 3,551 3,430 3,643 Provision for federal income tax expense 1,194 1,183 984 1,526 Net income $ 2,229 $ 2,368 $ 2,446 $ 2,117 Basic earnings per share $ 0.16 $ 0.17 $ 0.18 $ 0.16 Diluted earnings per share $ 0.16 $ 0.17 $ 0.18 $ 0.16 (1) Basic and diluted quarterly earnings per share may not equal total for year due to rounding. |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans Receivable, Net | $ 988,662,000 | $ 815,043,000 |
Federal reserve bank minimum reserve required | $ 0 | $ 228,000 |
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 | |
Subsidiaries [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans Receivable, Net | $ 2,000,000 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Premisis and Equipment (Details) | 12 Months Ended |
Dec. 31, 2017 | |
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 |
Acquisition (Details)
Acquisition (Details) - USD ($) | Aug. 25, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Property, Plant and Equipment, Gross | $ 30,712,000 | $ 27,546,000 | ||
Goodwill | 889,000 | $ 0 | ||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 41,000 | |||
Opus Bank [Member] | ||||
Business Acquisition [Line Items] | ||||
Deposits, Retail | $ 74,700,000 | |||
Deposit Premium, Average Daily Balance | 3.125% | |||
Deposit Premium, Cash Price | $ 2,500,000 | |||
Fair Value of The Branch Owned | 488,000 | |||
Property, Plant and Equipment, Gross | 56,000 | |||
Adjustments at Closing Date | 14,000 | |||
Payments to Acquire Businesses, Gross | 71,600,000 | |||
Goodwill | 889,000 | |||
Core Deposits Intangible [Member] | Opus Bank [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-lived Intangible Assets Acquired | $ 1,300,000 | |||
Goodwill [Member] | Opus Bank [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 889,000 |
Acquisition (Assets Acquired an
Acquisition (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Aug. 25, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 889 | $ 0 | |
Opus Bank [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 71,649 | ||
Premises and equipment, net | 672 | ||
Goodwill | 889 | ||
Core deposit intangible | 1,319 | ||
Total assets acquired | 74,529 | ||
Noninterest-bearing deposits | 11,995 | ||
Interest-bearing deposits | 62,534 | ||
Total deposits | 74,529 | ||
Total liabilities assumed | 74,529 | ||
Book Value [Member] | Opus Bank [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 71,649 | ||
Premises and equipment, net | 553 | ||
Goodwill | 0 | ||
Core deposit intangible | 0 | ||
Total assets acquired | 72,202 | ||
Noninterest-bearing deposits | 11,995 | ||
Interest-bearing deposits | 62,662 | ||
Total deposits | 74,657 | ||
Total liabilities assumed | 74,657 | ||
Adjustments [Member] | Opus Bank [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 0 | ||
Premises and equipment, net | 119 | ||
Goodwill | 889 | ||
Core deposit intangible | 1,319 | ||
Total assets acquired | 2,327 | ||
Noninterest-bearing deposits | 0 | ||
Interest-bearing deposits | (128) | ||
Total deposits | (128) | ||
Total liabilities assumed | $ (128) |
Acquisition (Fair Value) (Detai
Acquisition (Fair Value) (Details) - USD ($) $ in Thousands | Aug. 25, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 889 | $ 0 | |
Opus Bank [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Consideration Transferred | $ 3,008 | ||
Business Combination, Cash and Cash Equivalents and Cash Paid | 74,657 | ||
Premises and equipment, net | 672 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Core Deposits | 1,319 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposits | 74,529 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 2,119 | ||
Goodwill | $ 889 |
Acquisition (Amortization Expen
Acquisition (Amortization Expense) (Details) - Opus Bank [Member] | Aug. 25, 2017USD ($) |
Certificates of Deposit [Member] | |
Business Acquisition [Line Items] | |
Amortization of Intangible Assets | $ 21,000 |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 21,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 49,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 30,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 16,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 9,000 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 3,000 |
Finite-Lived Intangible Assets, Net | $ 128,000 |
Core Deposits Intangible [Member] | |
Business Acquisition [Line Items] | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 10 years |
Amortization of Intangible Assets | $ 53,000 |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 53,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 150,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 148,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 144,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 140,000 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 684,000 |
Finite-Lived Intangible Assets, Net | $ 1,319,000 |
Minimum [Member] | Certificates of Deposit [Member] | |
Business Acquisition [Line Items] | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 2 years |
Maximum [Member] | Certificates of Deposit [Member] | |
Business Acquisition [Line Items] | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 5 years |
Investments_ Narrative (Details
Investments: Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Investments [Abstract] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged As Percent of Public Deposits Held | 50.00% | |
Investments pledged as collateral for public deposits | $ 14,200,000 | $ 22,600,000 |
Unrealized loss | 2,232,000 | 2,181,000 |
Fair Value | 90,882,000 | 87,654,000 |
Trading Securities Pledged as Collateral | $ 0 | $ 0 |
Investments_ Available-for-sale
Investments: Available-for-sale Securities (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 36 | 53 |
Amortized Cost | $ 133,475 | $ 130,852 |
Gross Unrealized Gains | 999 | 589 |
Gross Unrealized Losses | (2,232) | (2,181) |
Investments available-for-sale, at fair value | 132,242 | 129,260 |
Mortgage-backed investments, Fannie Mae | ||
Amortized Cost | 26,961 | 42,060 |
Gross Unrealized Gains | 69 | 126 |
Gross Unrealized Losses | (466) | (854) |
Investments available-for-sale, at fair value | 26,564 | 41,332 |
Mortgage-backed investments, Freddie Mac | ||
Amortized Cost | 5,510 | 18,013 |
Gross Unrealized Gains | 18 | 95 |
Gross Unrealized Losses | (56) | (99) |
Investments available-for-sale, at fair value | 5,472 | 18,009 |
Mortgage-backed investments, Ginnie Mae | ||
Amortized Cost | 22,288 | 19,133 |
Gross Unrealized Gains | 14 | 41 |
Gross Unrealized Losses | (726) | (540) |
Investments available-for-sale, at fair value | 21,576 | 18,634 |
Municipal Bonds | ||
Amortized Cost | 13,126 | 13,203 |
Gross Unrealized Gains | 290 | 11 |
Gross Unrealized Losses | (21) | (107) |
Investments available-for-sale, at fair value | 13,395 | 13,107 |
US Government agencies | ||
Amortized Cost | 43,088 | 15,937 |
Gross Unrealized Gains | 81 | 75 |
Gross Unrealized Losses | (536) | (155) |
Investments available-for-sale, at fair value | 42,633 | 15,857 |
Corporate Bonds | ||
Amortized Cost | 22,502 | 22,506 |
Gross Unrealized Gains | 527 | 241 |
Gross Unrealized Losses | (427) | (426) |
Investments available-for-sale, at fair value | $ 22,602 | $ 22,321 |
Investments_ Schedule of Availa
Investments: Schedule of Available for sale Securities, Debt Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investments [Abstract] | ||
Due within one year, Amortized Cost | $ 5,035 | |
Due after one year through five years, Amortized Cost | 1,658 | |
Due after five years through ten years, Amortized Cost | 20,645 | |
Due after ten years, Amortized Cost | 51,378 | |
Debt maturities, Amortized Cost | 78,716 | |
Mortgage-backed investments, Amortized Cost | 54,759 | |
Amortized Cost | 133,475 | $ 130,852 |
Due within one year, Fair Value | 5,040 | |
Due after one year through five years, Fair Value | 1,663 | |
Due after five years through ten years, Fair Value | 20,756 | |
Due after ten years, Fair Value | 51,171 | |
Debt maturities, Fair Value | 78,630 | |
Mortgage-backed investments, Fair Value | 53,612 | |
Fair Value | $ 132,242 |
Investments_ Gain_Loss on Inves
Investments: Gain/Loss on Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments [Abstract] | |||
Proceeds | $ 44,164 | $ 26,437 | $ 27,327 |
Gross gains | 119 | 245 | 449 |
Gross losses | $ (686) | $ (195) | $ (357) |
Investments_ Schedule of Avai55
Investments: Schedule of Available for sale Securities in Continuous Unrealized Loss positions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Less than twelve months, Fair Value | $ 61,015 | $ 81,535 |
Less than twelve months, Unrealized Loss | (665) | (1,872) |
Twelve months or longer, Fair Value | 29,867 | 6,119 |
Twelve months or longer, Unrealized Loss | (1,567) | (309) |
Fair Value | 90,882 | 87,654 |
Unrealized Loss | (2,232) | (2,181) |
Mortgage-backed investments, Fannie Mae | ||
Less than twelve months, Fair Value | 15,202 | 34,763 |
Less than twelve months, Unrealized Loss | (91) | (854) |
Twelve months or longer, Fair Value | 6,759 | 0 |
Twelve months or longer, Unrealized Loss | (375) | 0 |
Fair Value | 21,961 | 34,763 |
Unrealized Loss | (466) | (854) |
Mortgage-backed investments, Freddie Mac | ||
Less than twelve months, Fair Value | 3,189 | 8,343 |
Less than twelve months, Unrealized Loss | (56) | (99) |
Twelve months or longer, Fair Value | 0 | 0 |
Twelve months or longer, Unrealized Loss | 0 | 0 |
Fair Value | 3,189 | 8,343 |
Unrealized Loss | (56) | (99) |
Mortgage backed investments Ginnie Mae | ||
Less than twelve months, Fair Value | 6,454 | 16,734 |
Less than twelve months, Unrealized Loss | (61) | (540) |
Twelve months or longer, Fair Value | 14,234 | 0 |
Twelve months or longer, Unrealized Loss | (665) | 0 |
Fair Value | 20,688 | 16,734 |
Unrealized Loss | (726) | (540) |
Municipal Bonds | ||
Less than twelve months, Fair Value | 1,403 | 8,815 |
Less than twelve months, Unrealized Loss | (21) | (107) |
Twelve months or longer, Fair Value | 0 | 0 |
Twelve months or longer, Unrealized Loss | 0 | 0 |
Fair Value | 1,403 | 8,815 |
Unrealized Loss | (21) | (107) |
US Government agencies | ||
Less than twelve months, Fair Value | 33,268 | 9,000 |
Less than twelve months, Unrealized Loss | (435) | (153) |
Twelve months or longer, Fair Value | 1,800 | 1,426 |
Twelve months or longer, Unrealized Loss | (101) | (2) |
Fair Value | 35,068 | 10,426 |
Unrealized Loss | (536) | (155) |
Corporate Bonds | ||
Less than twelve months, Fair Value | 1,499 | 3,880 |
Less than twelve months, Unrealized Loss | (1) | (119) |
Twelve months or longer, Fair Value | 7,074 | 4,693 |
Twelve months or longer, Unrealized Loss | (426) | (307) |
Fair Value | 8,573 | 8,573 |
Unrealized Loss | $ (427) | $ (426) |
Loans Receivable_ Schedule of A
Loans Receivable: Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Loans and Leases Receivable, Impaired, Commitment to Lend | $ 0 | $ 0 | ||
Loans receivable | 1,095,192,000 | 900,187,000 | ||
Loans in process (“LIP”) | 92,498,000 | 72,026,000 | ||
Deferred loan fees, net | 1,150,000 | 2,167,000 | ||
Loans receivable allowance for loan losses | 12,882,000 | 10,951,000 | ||
Loans receivable, net | 988,662,000 | 815,043,000 | ||
One-to-four family, residential, owner occupied | ||||
Loans receivable | 148,304,000 | 137,834,000 | ||
One-to-four family residential non-owner occupied | ||||
Loans receivable | 130,351,000 | 111,601,000 | ||
One-to-four family construction | ||||
Loans excluded from category | 2,600,000 | 2,600,000 | ||
One-to-four family | ||||
Loans receivable | 278,655,000 | 249,435,000 | ||
Multifamily Permanent | ||||
Loans receivable | 184,902,000 | 123,250,000 | ||
Multifamily Construction | ||||
Loans excluded from category | 71,400,000 | 62,900,000 | ||
Multifamily | ||||
Loans receivable | 184,902,000 | 123,250,000 | ||
Loans receivable allowance for loan losses | 1,820,000 | 1,199,000 | $ 1,193,000 | $ 1,606,000 |
Commercial Real Estate Permanent | ||||
Loans receivable | 361,842,000 | 303,694,000 | ||
Commercial Real Estate | ||||
Loans receivable | 361,842,000 | 303,694,000 | ||
Construction/Land Development One-to-four family residential | ||||
Loans receivable | 87,404,000 | 67,842,000 | ||
Construction Land Development Multifamily | ||||
Loans receivable | 108,439,000 | 111,051,000 | ||
Construction Land Development Commercial | ||||
Loans excluded from category | 35,900,000 | 26,900,000 | ||
Loans receivable | 5,325,000 | 0 | ||
Construction Land Development Land Development | ||||
Loans receivable | 36,405,000 | 30,055,000 | ||
Construction Land Development | ||||
Loans receivable | 237,573,000 | 208,948,000 | ||
Loans receivable allowance for loan losses | 2,816,000 | 2,792,000 | 1,193,000 | 519,000 |
Business | ||||
Loans receivable | 23,087,000 | 7,938,000 | ||
Loans receivable allowance for loan losses | 694,000 | 237,000 | 229,000 | 47,000 |
Consumer | ||||
Loans receivable | 9,133,000 | 6,922,000 | ||
Loans receivable allowance for loan losses | $ 297,000 | $ 279,000 | $ 425,000 | $ 152,000 |
Loans Receivable_ Narratives (D
Loans Receivable: Narratives (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans and Leases Receivable, Ratio of Nonperforming Loans to All Loans | 0.01% | 0.06% | |
Loans Receivable, Percentage of Loan Portfolio | 2.90% | ||
Loans and Leases Receivable, Net Amount | $ 988,662,000 | $ 815,043,000 | |
Loans Receivable, non-performing | 179,000 | 858,000 | |
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 26,000 | 51,000 | $ 103,000 |
Loans and Leases Receivable, Impaired, Commitment to Lend | 0 | 0 | |
Troubled debt restructuring, charge to Allowance for Loan and Lease Losses | 0 | 0 | |
Troubled Debt Restructuring Commitment To Extend Additional Credit | $ 0 | 0 | |
One-to-four family residential | |||
Loans Receivable, Percentage of Loan Portfolio | 25.50% | ||
Loans and Leases Receivable, Net Amount | $ 1,000,000 | ||
Multifamily | |||
Loans Receivable, Percentage of Loan Portfolio | 16.90% | ||
Loans and Leases Receivable, Net Amount | $ 10,700,000 | ||
Commercial Real Estate | |||
Loans Receivable, Percentage of Loan Portfolio | 33.00% | ||
Loans and Leases Receivable, Net Amount | $ 39,200,000 | ||
Construction Land Development | |||
Loans Receivable, Percentage of Loan Portfolio | 21.70% | ||
Loans and Leases Receivable, Net Amount | $ 27,400,000 | ||
Business [Member] | |||
Loans and Leases Receivable, Net Amount | 10,300,000 | ||
Multifamily Construction | |||
Loans excluded from category | 71,400,000 | 62,900,000 | |
Construction Land Development Commercial | |||
Loans excluded from category | 35,900,000 | 26,900,000 | |
One-to-four family construction | |||
Loans excluded from category | 2,600,000 | $ 2,600,000 | |
Commercial Real Estate Construction [Member] | |||
Loans excluded from category | $ 5,300,000 |
Loans Receivable Loans Receivab
Loans Receivable Loans Receivable: Schedule of Loans by Maturity and Interest Rate Type (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fixed Rate | ||
Schedule of Maturity of Loans and Financing Receivables [Abstract] | ||
Due within one year | $ 37,472 | $ 23,513 |
After one year through three years | 102,630 | 106,138 |
After three years through five years | 80,811 | 71,251 |
After five years through ten years | 132,086 | 145,063 |
Thereafter | 175,211 | 158,708 |
Loans receivable, outstanding maturities, by rate type | 528,210 | 504,673 |
Adjustable Rate | ||
Schedule of Maturity of Loans and Financing Receivables [Abstract] | ||
Due within one year | 292,398 | 214,794 |
After one year through three years | 51,520 | 32,448 |
After three years through five years | 127,973 | 118,350 |
After five years through ten years | 95,091 | 29,922 |
Thereafter | 0 | 0 |
Loans receivable, outstanding maturities, by rate type | $ 566,982 | $ 395,514 |
Loans Receivable_ Schedule of59
Loans Receivable: Schedule of Allowance for Loan and Lease Losses, Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | $ 10,951 | $ 10,951 | ||||||||||||||||||||||
(Recapture) provision | $ (1,200) | $ 500 | $ 100 | 200 | $ (100) | $ 900 | $ 600 | $ (100) | $ (900) | $ (700) | $ (500) | $ (100) | (400) | $ 1,300 | $ (2,200) | |||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 12,882 | 10,951 | 12,882 | 10,951 | ||||||||||||||||||||
Loans receivable allowance for loan losses | 12,882 | 10,951 | 10,951 | 10,951 | 10,951 | $ 12,882 | $ 10,951 | |||||||||||||||||
One-to-four family residential | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 2,551 | 3,028 | 3,691 | 2,551 | 3,028 | 3,691 | ||||||||||||||||||
Charge-offs | 0 | 0 | (27) | |||||||||||||||||||||
Recoveries | 2,195 | 165 | 936 | |||||||||||||||||||||
(Recapture) provision | (1,909) | (642) | (1,572) | |||||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 2,837 | 2,551 | 3,028 | 2,837 | 2,551 | 3,028 | ||||||||||||||||||
Loans receivable allowance for loan losses | 2,837 | 2,551 | 2,551 | 3,028 | 3,028 | 3,691 | 2,551 | 3,028 | 3,691 | 2,837 | 2,551 | $ 3,028 | ||||||||||||
Total Loans | [1] | 278,655 | 249,435 | 253,772 | ||||||||||||||||||||
One-to-four family residential | General Reserve | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 2,349 | 2,516 | 2,349 | 2,516 | ||||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 2,721 | 2,349 | 2,516 | 2,721 | 2,349 | 2,516 | ||||||||||||||||||
Loans receivable allowance for loan losses | 2,721 | 2,349 | 2,349 | 2,516 | 2,516 | 2,349 | 2,516 | 2,516 | 2,721 | 2,349 | 2,516 | |||||||||||||
Total Loans | [1],[2] | 265,093 | 224,363 | 217,677 | ||||||||||||||||||||
One-to-four family residential | Specific Reserve | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 202 | 512 | 202 | 512 | ||||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 116 | 202 | 512 | 116 | 202 | 512 | ||||||||||||||||||
Loans receivable allowance for loan losses | 116 | 202 | 202 | 512 | 512 | 202 | 512 | 512 | 116 | 202 | 512 | |||||||||||||
Total Loans | [1],[3] | 13,562 | 25,072 | 36,095 | ||||||||||||||||||||
Multifamily | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 1,199 | 1,193 | 1,606 | 1,199 | 1,193 | 1,606 | ||||||||||||||||||
Charge-offs | 0 | 0 | (281) | |||||||||||||||||||||
Recoveries | 0 | 1 | 78 | |||||||||||||||||||||
(Recapture) provision | 621 | 5 | (210) | |||||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 1,820 | 1,199 | 1,193 | 1,820 | 1,199 | 1,193 | ||||||||||||||||||
Loans receivable allowance for loan losses | 1,820 | 1,199 | 1,199 | 1,193 | 1,193 | 1,606 | 1,199 | 1,193 | 1,606 | 1,820 | 1,199 | 1,193 | ||||||||||||
Total Loans | [1] | 184,902 | 123,250 | 122,747 | ||||||||||||||||||||
Multifamily | General Reserve | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 1,199 | 1,190 | 1,199 | 1,190 | ||||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 1,820 | 1,199 | 1,190 | 1,820 | 1,199 | 1,190 | ||||||||||||||||||
Loans receivable allowance for loan losses | 1,820 | 1,199 | 1,199 | 1,190 | 1,190 | 1,199 | 1,190 | 1,190 | 1,820 | 1,199 | 1,190 | |||||||||||||
Total Loans | [1],[2] | 183,768 | 121,686 | 121,152 | ||||||||||||||||||||
Multifamily | Specific Reserve | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 0 | 3 | 0 | 3 | ||||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 0 | 0 | 3 | 0 | 0 | 3 | ||||||||||||||||||
Loans receivable allowance for loan losses | 0 | 0 | 0 | 3 | 3 | 0 | 3 | 3 | 0 | 0 | 3 | |||||||||||||
Total Loans | [1],[3] | 1,134 | 1,564 | 1,595 | ||||||||||||||||||||
Commercial Real Estate | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 3,893 | 3,395 | 4,476 | 3,893 | 3,395 | 4,476 | ||||||||||||||||||
Charge-offs | 0 | 0 | 0 | |||||||||||||||||||||
Recoveries | 78 | 104 | 181 | |||||||||||||||||||||
(Recapture) provision | 447 | 394 | (1,262) | |||||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 4,418 | 3,893 | 3,395 | 4,418 | 3,893 | 3,395 | ||||||||||||||||||
Loans receivable allowance for loan losses | 4,418 | 3,893 | 3,893 | 3,395 | 3,395 | 4,476 | 3,893 | 3,395 | 4,476 | 4,418 | 3,893 | 3,395 | ||||||||||||
Total Loans | [1] | 361,299 | 303,694 | 244,211 | ||||||||||||||||||||
Commercial Real Estate | General Reserve | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 3,867 | 3,270 | 3,867 | 3,270 | ||||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 4,399 | 3,867 | 3,270 | 4,399 | 3,867 | 3,270 | ||||||||||||||||||
Loans receivable allowance for loan losses | 4,399 | 3,867 | 3,867 | 3,270 | 3,270 | 3,867 | 3,270 | 3,270 | 4,399 | 3,867 | 3,270 | |||||||||||||
Total Loans | [1],[2] | 358,105 | 299,987 | 239,765 | ||||||||||||||||||||
Commercial Real Estate | Specific Reserve | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 26 | 125 | 26 | 125 | ||||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 19 | 26 | 125 | 19 | 26 | 125 | ||||||||||||||||||
Loans receivable allowance for loan losses | 19 | 26 | 26 | 125 | 125 | 26 | 125 | 125 | 19 | 26 | 125 | |||||||||||||
Total Loans | [1],[3] | 3,194 | 3,707 | 4,896 | ||||||||||||||||||||
Construction Land Development | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 2,792 | 1,193 | 519 | 2,792 | 1,193 | 519 | ||||||||||||||||||
Charge-offs | 0 | 0 | 0 | |||||||||||||||||||||
Recoveries | 0 | 0 | 0 | |||||||||||||||||||||
(Recapture) provision | 24 | 1,599 | 674 | |||||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 2,816 | 2,792 | 1,193 | 2,816 | 2,792 | 1,193 | ||||||||||||||||||
Loans receivable allowance for loan losses | 2,816 | 2,792 | 2,792 | 1,193 | 1,193 | 519 | 2,792 | 1,193 | 519 | 2,816 | 2,792 | 1,193 | ||||||||||||
Total Loans | [1] | 145,618 | 136,922 | 62,103 | ||||||||||||||||||||
Construction Land Development | General Reserve | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 2,711 | 1,140 | 2,711 | 1,140 | ||||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 2,816 | 2,711 | 1,140 | 2,816 | 2,711 | 1,140 | ||||||||||||||||||
Loans receivable allowance for loan losses | 2,816 | 2,711 | 2,711 | 1,140 | 1,140 | 2,711 | 1,140 | 1,140 | 2,816 | 2,711 | 1,140 | |||||||||||||
Total Loans | [1],[2] | 145,618 | 136,427 | 61,158 | ||||||||||||||||||||
Construction Land Development | Specific Reserve | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 81 | 53 | 81 | 53 | ||||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 0 | 81 | 53 | 0 | 81 | 53 | ||||||||||||||||||
Loans receivable allowance for loan losses | 0 | 81 | 81 | 53 | 53 | 81 | 53 | 53 | 0 | 81 | 53 | |||||||||||||
Total Loans | [1],[3] | 0 | 495 | 495 | ||||||||||||||||||||
Business | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 237 | 229 | 47 | 237 | 229 | 47 | ||||||||||||||||||
Charge-offs | 0 | 0 | 0 | |||||||||||||||||||||
Recoveries | 0 | 0 | 3 | |||||||||||||||||||||
(Recapture) provision | 457 | 8 | 179 | |||||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 694 | 237 | 229 | 694 | 237 | 229 | ||||||||||||||||||
Loans receivable allowance for loan losses | 694 | 237 | 237 | 229 | 229 | 47 | 237 | 229 | 47 | 694 | 237 | 229 | ||||||||||||
Total Loans | [1] | 23,087 | 7,938 | 7,604 | ||||||||||||||||||||
Business | General Reserve | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 237 | 229 | 237 | 229 | ||||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 694 | 237 | 229 | 694 | 237 | 229 | ||||||||||||||||||
Loans receivable allowance for loan losses | 694 | 237 | 237 | 229 | 229 | 237 | 229 | 229 | 694 | 237 | 229 | |||||||||||||
Total Loans | [1],[2] | 23,087 | 7,938 | 7,604 | ||||||||||||||||||||
Business | Specific Reserve | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Loans receivable allowance for loan losses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Total Loans | [1],[3] | 0 | 0 | 0 | ||||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 279 | 425 | 152 | 279 | 425 | 152 | ||||||||||||||||||
Charge-offs | 0 | (83) | (54) | |||||||||||||||||||||
Recoveries | 58 | 1 | 336 | |||||||||||||||||||||
(Recapture) provision | (40) | (64) | (9) | |||||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 297 | 279 | 425 | 297 | 279 | 425 | ||||||||||||||||||
Loans receivable allowance for loan losses | 297 | 279 | 279 | 425 | 425 | 152 | 279 | 425 | 152 | 297 | 279 | 425 | ||||||||||||
Total Loans | [1] | 9,133 | 6,922 | 6,979 | ||||||||||||||||||||
Consumer | General Reserve | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 279 | 386 | 279 | 386 | ||||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 297 | 279 | 386 | 297 | 279 | 386 | ||||||||||||||||||
Loans receivable allowance for loan losses | 297 | 279 | 279 | 386 | 386 | 279 | 386 | 386 | 297 | 279 | 386 | |||||||||||||
Total Loans | [1],[2] | 9,039 | 6,819 | 6,771 | ||||||||||||||||||||
Consumer | Specific Reserve | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 0 | 39 | 0 | 39 | ||||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 0 | 0 | 39 | 0 | 0 | 39 | ||||||||||||||||||
Loans receivable allowance for loan losses | 0 | 0 | 0 | 39 | 39 | 0 | 39 | 39 | 0 | 0 | 39 | |||||||||||||
Total Loans | [1],[3] | 94 | 103 | 208 | ||||||||||||||||||||
Property total | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 10,951 | 9,463 | (10,491) | 10,951 | 9,463 | (10,491) | ||||||||||||||||||
Charge-offs | 0 | (83) | (362) | |||||||||||||||||||||
Recoveries | 2,331 | 271 | 1,534 | |||||||||||||||||||||
(Recapture) provision | (400) | 1,300 | (2,200) | |||||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 12,882 | 10,951 | 9,463 | 12,882 | 10,951 | 9,463 | ||||||||||||||||||
Loans receivable allowance for loan losses | 12,882 | 10,951 | 10,951 | 9,463 | 9,463 | $ (10,491) | 10,951 | 9,463 | (10,491) | 12,882 | 10,951 | 9,463 | ||||||||||||
Total Loans | [1] | 1,002,694 | 828,161 | 697,416 | ||||||||||||||||||||
Property total | General Reserve | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 10,642 | 8,731 | 10,642 | 8,731 | ||||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 12,747 | 10,642 | 8,731 | 12,747 | 10,642 | 8,731 | ||||||||||||||||||
Loans receivable allowance for loan losses | 12,747 | 10,642 | 10,642 | 8,731 | 8,731 | 10,642 | 8,731 | 8,731 | 12,747 | 10,642 | 8,731 | |||||||||||||
Total Loans | [1],[2] | 984,710 | 797,220 | 654,127 | ||||||||||||||||||||
Property total | Specific Reserve | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||||||||||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 309 | 732 | [1] | 309 | 732 | [1] | ||||||||||||||||||
Loans and Leases Receivable, Allowance, Ending Balance | 135 | 309 | 732 | [1] | 135 | 309 | 732 | [1] | ||||||||||||||||
Loans receivable allowance for loan losses | $ 135 | $ 309 | $ 309 | $ 732 | [1] | $ 732 | [1] | $ 309 | $ 732 | [1] | $ 732 | [1] | 135 | 309 | 732 | [1] | ||||||||
Total Loans | [1],[3] | $ 17,984 | $ 30,941 | $ 43,289 | ||||||||||||||||||||
[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, 2017 | Dec. 31, 2016 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 0 | $ 0 | |||
Total | 101,000 | 473,000 | |||
Current | 1,002,593,000 | 827,688,000 | |||
Total Loans | [2],[3] | 1,002,694,000 | [1] | 828,161,000 | [4] |
One-to-four family, residential, owner occupied | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 101,000 | 473,000 | |||
Current | 148,203,000 | 137,361,000 | |||
Total Loans | 148,304,000 | [1],[2] | 137,834,000 | [3],[4] | |
One-to-four family residential non-owner occupied | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Current | 130,351,000 | 111,601,000 | |||
Total Loans | 130,351,000 | [1],[2] | 111,601,000 | [3],[4] | |
Multifamily | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Current | 184,902,000 | 123,250,000 | |||
Total Loans | 184,902,000 | [1],[2] | 123,250,000 | [3],[4] | |
Commercial Real Estate | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Current | 361,299,000 | 303,694,000 | |||
Total Loans | 361,299,000 | [1],[2] | 303,694,000 | [3],[4] | |
Construction Land Development | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Current | 145,618,000 | 136,922,000 | |||
Total Loans | 145,618,000 | [1],[2] | 136,922,000 | [3],[4] | |
Real Estate, Total | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 101,000 | 473,000 | |||
Current | 970,373,000 | 812,828,000 | |||
Total Loans | 970,474,000 | [1],[2] | 813,301,000 | [3],[4] | |
Business | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Current | 23,087,000 | 7,938,000 | |||
Total Loans | 23,087,000 | [1],[2] | 7,938,000 | [3],[4] | |
Consumer | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Current | 9,133,000 | 6,922,000 | |||
Total Loans | 9,133,000 | [1],[2] | 6,922,000 | [3],[4] | |
Financing Receivables, 30 to 59 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 101,000 | 304,000 | |||
Financing Receivables, 30 to 59 Days Past Due [Member] | One-to-four family, residential, owner occupied | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 101,000 | 304,000 | |||
Financing Receivables, 30 to 59 Days Past Due [Member] | One-to-four family residential non-owner occupied | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Financing Receivables, 30 to 59 Days Past Due [Member] | Multifamily | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Real Estate | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Financing Receivables, 30 to 59 Days Past Due [Member] | Construction Land Development | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Financing Receivables, 30 to 59 Days Past Due [Member] | Real Estate, Total | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 101,000 | 304,000 | |||
Financing Receivables, 30 to 59 Days Past Due [Member] | Business | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Financing Receivables, 60 to 89 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Financing Receivables, 60 to 89 Days Past Due [Member] | One-to-four family, residential, owner occupied | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Financing Receivables, 60 to 89 Days Past Due [Member] | One-to-four family residential non-owner occupied | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Financing Receivables, 60 to 89 Days Past Due [Member] | Multifamily | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Real Estate | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Financing Receivables, 60 to 89 Days Past Due [Member] | Construction Land Development | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Financing Receivables, 60 to 89 Days Past Due [Member] | Real Estate, Total | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Financing Receivables, 60 to 89 Days Past Due [Member] | Business | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 169,000 | |||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | One-to-four family, residential, owner occupied | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 169,000 | |||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | One-to-four family residential non-owner occupied | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Multifamily | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Real Estate | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Construction Land Development | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Real Estate, Total | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 169,000 | |||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Business | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | $ 0 | $ 0 | |||
[1] | (1) There were no loans 90 days past due and still accruing interest at December 31, 2016. | ||||
[2] | (2) Net of LIP. | ||||
[3] | Net of LIP. | ||||
[4] | (1) There were no loans 90 days past due and still accruing interest at December 31, 201 |
Loans Receivable_ Schedule of n
Loans Receivable: Schedule of non-accrual loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Total nonaccrual loans | $ 179 | $ 858 |
One-to-four family, residential, owner occupied | ||
Total nonaccrual loans | 128 | 798 |
Consumer | ||
Total nonaccrual loans | $ 51 | $ 60 |
Loans Receivable_ Non-performin
Loans Receivable: Non-performing Loans, Foregone interest, and loans committed (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | |||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | [2],[3] | $ 1,002,694,000 | [1] | $ 828,161,000 | [4] |
One-to-four family residential | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | 278,655,000 | 249,435,000 | |||
Multifamily | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | 184,902,000 | [1],[2] | 123,250,000 | [3],[4] | |
Commercial Real Estate | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | 361,299,000 | [1],[2] | 303,694,000 | [3],[4] | |
Construction Land Development | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | 145,618,000 | [1],[2] | 136,922,000 | [3],[4] | |
Business | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | 23,087,000 | [1],[2] | 7,938,000 | [3],[4] | |
Consumer | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | 9,133,000 | [1],[2] | 6,922,000 | [3],[4] | |
One-to-four family residential non-owner occupied | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | 130,351,000 | [1],[2] | 111,601,000 | [3],[4] | |
One-to-four family, residential, owner occupied | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | 148,304,000 | [1],[2] | 137,834,000 | [3],[4] | |
Performing Financing Receivable | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | [3] | 1,002,515,000 | 827,303,000 | ||
Performing Financing Receivable | One-to-four family residential | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | 278,527,000 | 248,637,000 | |||
Performing Financing Receivable | Multifamily | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | 184,902,000 | 123,250,000 | |||
Performing Financing Receivable | Commercial Real Estate | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | 361,299,000 | 303,694,000 | |||
Performing Financing Receivable | Construction Land Development | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | 145,618,000 | 136,922,000 | |||
Performing Financing Receivable | Business | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | 23,087,000 | 7,938,000 | |||
Performing Financing Receivable | Consumer | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | 9,082,000 | 6,862,000 | |||
Performing Financing Receivable | One-to-four family residential non-owner occupied | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | 130,300,000 | 111,600,000 | |||
Performing Financing Receivable | One-to-four family, residential, owner occupied | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | 148,200,000 | 137,000,000 | |||
Nonperforming Financing Receivable | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | [3] | 179,000 | 858,000 | ||
Nonperforming Financing Receivable | One-to-four family residential | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | 128,000 | 798,000 | |||
Nonperforming Financing Receivable | Multifamily | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | 0 | 0 | |||
Nonperforming Financing Receivable | Commercial Real Estate | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | 0 | 0 | |||
Nonperforming Financing Receivable | Construction Land Development | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | 0 | 0 | |||
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 | 51,000 | 60,000 | |||
Nonperforming Financing Receivable | One-to-four family residential non-owner occupied | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | 0 | 0 | |||
Nonperforming Financing Receivable | One-to-four family, residential, owner occupied | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing Receivable, Net | $ 128,000 | $ 798,000 | |||
[1] | (1) There were no loans 90 days past due and still accruing interest at December 31, 2016. | ||||
[2] | (2) Net of LIP. | ||||
[3] | Net of LIP. | ||||
[4] | (1) There were no loans 90 days past due and still accruing interest at December 31, 201 |
Loans Receivable_ Schedule of I
Loans Receivable: Schedule of Impaired Financing Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | ||
One-to-four family, residential, owner occupied | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | [1] | $ 1,321 | $ 2,216 | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | [2] | 1,516 | 2,475 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | [1] | 522 | 1,896 | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | [2] | 568 | 1,965 | |
Impaired Financing Receivable, Related Allowance | 5 | 51 | ||
Impaired Financing Receivable, Recorded Investment | [1] | 1,843 | 4,112 | |
Impaired Financing Receivable, Unpaid Principal Balance | [2] | 2,084 | 4,440 | |
One-to-four family residential non-owner occupied | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | [1] | 8,409 | 16,634 | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | [2] | 8,409 | 16,652 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | [1] | 3,310 | 4,326 | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | [2] | 3,332 | 4,347 | |
Impaired Financing Receivable, Related Allowance | 111 | 151 | ||
Impaired Financing Receivable, Recorded Investment | [1] | 11,719 | 20,960 | |
Impaired Financing Receivable, Unpaid Principal Balance | [2] | 11,741 | 20,999 | |
Multifamily | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | [1] | 1,134 | 1,564 | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | [2] | 1,134 | 1,564 | |
Impaired Financing Receivable, Related Allowance | 0 | 0 | ||
Impaired Financing Receivable, Recorded Investment | [1] | 1,134 | 1,564 | |
Impaired Financing Receivable, Unpaid Principal Balance | [2] | 1,134 | 1,564 | |
Commercial Real Estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | [1] | 1,065 | 2,952 | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | [2] | 1,065 | 3,029 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 2,129 | 755 | [1] | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 2,129 | 755 | [2] | |
Impaired Financing Receivable, Related Allowance | 19 | 26 | ||
Impaired Financing Receivable, Recorded Investment | [1] | 3,194 | 3,707 | |
Impaired Financing Receivable, Unpaid Principal Balance | [2] | 3,194 | 3,784 | |
Consumer | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, Related Allowance | 0 | |||
Construction Land Development | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 495 | |||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 495 | |||
Impaired Financing Receivable, Related Allowance | 81 | |||
Impaired Financing Receivable, Recorded Investment | [1] | 495 | ||
Impaired Financing Receivable, Unpaid Principal Balance | [2] | 495 | ||
Consumer | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | [1] | 94 | 103 | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | [2] | 144 | 223 | |
Impaired Financing Receivable, Related Allowance | 0 | |||
Impaired Financing Receivable, Recorded Investment | [1] | 94 | 103 | |
Impaired Financing Receivable, Unpaid Principal Balance | [2] | 144 | 223 | |
Property total | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | [1] | 12,023 | 23,469 | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | [2] | 12,268 | 23,943 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 5,961 | 7,472 | [1] | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 6,029 | 7,562 | [2] | |
Impaired Financing Receivable, Related Allowance | 135 | 309 | ||
Impaired Financing Receivable, Recorded Investment | [1] | 17,984 | 30,941 | |
Impaired Financing Receivable, Unpaid Principal Balance | [2] | $ 18,297 | $ 31,505 | |
[1] | (1) Represents the loan balance less charge-offs. | |||
[2] | (2) Contractual loan principal balance. |
Loans Receivable Loans Receiv64
Loans Receivable Loans Receivable: Average Recorded Investment and Interest Income Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | $ 18,003 | $ 26,975 | $ 34,410 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 808 | 1,588 | 1,738 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 6,105 | 10,400 | 14,751 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 341 | 399 | 731 |
Impaired Financing Receivable, Average Recorded Investment | 24,108 | 37,375 | 49,161 |
Impaired Financing Receivable, Interest Income, Accrual Method | 1,149 | 1,987 | 2,469 |
One-to-four family, residential, owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,773 | 2,566 | 3,180 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 93 | 156 | 110 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,301 | 2,026 | 2,131 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 32 | 104 | 89 |
Impaired Financing Receivable, Average Recorded Investment | 3,074 | 4,592 | 5,311 |
Impaired Financing Receivable, Interest Income, Accrual Method | 125 | 260 | 199 |
One-to-four family residential non-owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 12,438 | 20,653 | 25,350 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 553 | 1,061 | 1,409 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 3,680 | 5,520 | 7,801 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 170 | 236 | 415 |
Impaired Financing Receivable, Average Recorded Investment | 16,118 | 26,173 | 33,151 |
Impaired Financing Receivable, Interest Income, Accrual Method | 723 | 1,297 | 1,824 |
Multifamily | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,227 | 1,344 | 1,575 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 74 | 106 | 30 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 0 | 236 | 1,430 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 0 | 0 | 77 |
Impaired Financing Receivable, Average Recorded Investment | 1,227 | 1,580 | 3,005 |
Impaired Financing Receivable, Interest Income, Accrual Method | 74 | 106 | 107 |
Commercial Real Estate | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 2,467 | 2,295 | 4,180 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 80 | 253 | 187 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,025 | 2,192 | 2,817 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 139 | 42 | 129 |
Impaired Financing Receivable, Average Recorded Investment | 3,492 | 4,487 | 6,997 |
Impaired Financing Receivable, Interest Income, Accrual Method | 219 | 295 | 316 |
Construction Land Development | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 99 | 396 | 495 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 0 | 17 | 18 |
Impaired Financing Receivable, Average Recorded Investment | 99 | 396 | 495 |
Impaired Financing Receivable, Interest Income, Accrual Method | 0 | 17 | 18 |
Consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 98 | 117 | 125 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 8 | 12 | 2 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 0 | 30 | 77 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 0 | 0 | 3 |
Impaired Financing Receivable, Average Recorded Investment | 98 | 147 | 202 |
Impaired Financing Receivable, Interest Income, Accrual Method | $ 8 | $ 12 | $ 5 |
Loans Receivable_ Schedule of65
Loans Receivable: Schedule of Non-performing assets and troubled debt restructured loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Performing TDRs | $ 17,805 | $ 30,083 |
Nonaccrual TDRs | 0 | 174 |
Total TDRs | $ 17,805 | $ 30,257 |
Loans Receivable_ Troubled Debt
Loans Receivable: Troubled Debt Restructurings on Financing Receivables (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 9 | 26 |
Pre-Modification Outstanding Recorded Investment | $ 3,383 | $ 6,392 |
Post-Modification Outstanding Recorded Investment | $ 3,383 | $ 6,392 |
One-to-four family residential | Principal and Interest with Interest Rate Concession | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 8 | 19 |
Pre-Modification Outstanding Recorded Investment | $ 2,492 | $ 4,265 |
Post-Modification Outstanding Recorded Investment | $ 2,492 | $ 4,265 |
One-to-four family residential | Advancement of Maturity Date | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 5 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 1,121 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 1,121 |
Commercial Real Estate | Advancement of Maturity Date | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 891 | $ 511 |
Post-Modification Outstanding Recorded Investment | $ 891 | $ 511 |
Commercial Real Estate | Interest only payments | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 495 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 495 |
Loans Receivable_ Financing R67
Loans Receivable: Financing Receivables, Summary of loans by type and risk category (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |||
Financing Receivable, Net | [2],[3] | $ 1,002,694 | [1] | $ 828,161 | [4] |
Pass | |||||
Financing Receivable, Net | [2] | 996,438 | 820,181 | ||
Special Mention | |||||
Financing Receivable, Net | [2] | 4,976 | 6,074 | ||
Substandard | |||||
Financing Receivable, Net | [2] | 1,280 | 1,906 | ||
One-to-four family residential | |||||
Financing Receivable, Net | 278,655 | 249,435 | |||
One-to-four family residential | Pass | |||||
Financing Receivable, Net | 275,653 | 245,237 | |||
One-to-four family residential | Special Mention | |||||
Financing Receivable, Net | 2,329 | 2,847 | |||
One-to-four family residential | Substandard | |||||
Financing Receivable, Net | 673 | 1,351 | |||
Multifamily | |||||
Financing Receivable, Net | 184,902 | [1],[2] | 123,250 | [3],[4] | |
Multifamily | Pass | |||||
Financing Receivable, Net | 184,902 | 123,250 | |||
Multifamily | Special Mention | |||||
Financing Receivable, Net | 0 | 0 | |||
Multifamily | Substandard | |||||
Financing Receivable, Net | 0 | 0 | |||
Commercial Real Estate | |||||
Financing Receivable, Net | 361,299 | [1],[2] | 303,694 | [3],[4] | |
Commercial Real Estate | Pass | |||||
Financing Receivable, Net | 358,285 | 300,655 | |||
Commercial Real Estate | Special Mention | |||||
Financing Receivable, Net | 2,459 | 3,039 | |||
Commercial Real Estate | Substandard | |||||
Financing Receivable, Net | 555 | 0 | |||
Construction Land Development | |||||
Financing Receivable, Net | 145,618 | [1],[2] | 136,922 | [3],[4] | |
Construction Land Development | Pass | |||||
Financing Receivable, Net | 145,618 | 136,427 | |||
Construction Land Development | Special Mention | |||||
Financing Receivable, Net | 0 | 0 | |||
Construction Land Development | Substandard | |||||
Financing Receivable, Net | 0 | 495 | |||
Business | |||||
Financing Receivable, Net | 23,087 | [1],[2] | 7,938 | [3],[4] | |
Business | Pass | |||||
Financing Receivable, Net | 23,087 | 7,938 | |||
Business | Special Mention | |||||
Financing Receivable, Net | 0 | 0 | |||
Business | Substandard | |||||
Financing Receivable, Net | 0 | 0 | |||
Consumer | |||||
Financing Receivable, Net | 9,133 | [1],[2] | 6,922 | [3],[4] | |
Consumer | Pass | |||||
Financing Receivable, Net | 8,893 | 6,674 | |||
Consumer | Special Mention | |||||
Financing Receivable, Net | 188 | 188 | |||
Consumer | Substandard | |||||
Financing Receivable, Net | $ 52 | $ 60 | |||
[1] | (1) There were no loans 90 days past due and still accruing interest at December 31, 2016. | ||||
[2] | (2) Net of LIP. | ||||
[3] | Net of LIP. | ||||
[4] | (1) There were no loans 90 days past due and still accruing interest at December 31, 201 |
Loans Receivable Loans Receiv68
Loans Receivable Loans Receivable: Rollforward of Loans with Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans with Related Parties Rollforward | |||
Balance at beginning of year | $ 60 | $ 118 | $ 138 |
Additions | 0 | 0 | 0 |
Loans and Leases Receivable, Related Parties, Period Increase (Decrease) | 0 | (40) | 0 |
Repayments | (51) | (18) | (20) |
Balance at end of year | $ 9 | $ 60 | $ 118 |
Other Real Estate Owned - Other
Other Real Estate Owned - Other Real Estate, Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Real Estate [Roll Forward] | |||
Balance at beginning of year | $ 2,331 | $ 3,663 | $ 9,283 |
Loans transferred to OREO | 0 | 0 | 141 |
Gross proceeds from sale of OREO | (1,908) | (988) | (6,246) |
Other Real Estate, Gain (loss) on Disposals | 110 | (87) | 526 |
Market value adjustments | (50) | (257) | (41) |
Balance at end of year | $ 483 | $ 2,331 | $ 3,663 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Other Real Estate | $ 483,000 | $ 2,331,000 | $ 3,663,000 | $ 9,283,000 |
Commercial Real Estate | ||||
Other Real Estate | $ 483,000 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 30,712,000 | $ 27,546,000 | |
Less accumulated depreciation and amortization | (10,098,000) | (9,085,000) | |
Property, plant and equipment, net | 20,614,000 | 18,461,000 | |
Depreciation of premises and equipment | 1,262,000 | 1,076,000 | $ 809,000 |
Land | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 2,226,000 | 1,914,000 | |
Buildings and improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 19,436,000 | 17,820,000 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 1,917,000 | 1,352,000 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 4,743,000 | 3,832,000 | |
Computer Equipment [Member] | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 2,323,000 | 1,924,000 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 67,000 | $ 704,000 |
Fair Value_ Schedule of Fair Va
Fair Value: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | $ 132,242,000 | $ 129,260,000 |
Derivative Asset, Fair Value, Gross Asset | 1,526,000 | 1,333,000 |
Assets, Fair Value Disclosure, Recurring | 133,768,000 | 130,593,000 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 132,242,000 | 129,260,000 |
Derivative Asset, Fair Value, Gross Asset | 1,526 | 1,333,000 |
Assets, Fair Value Disclosure, Recurring | 133,768,000 | 130,593,000 |
Mortgage-backed investments, Fannie Mae | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 26,564,000 | 41,332,000 |
Mortgage-backed investments, Fannie Mae | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 26,564,000 | 41,332,000 |
Mortgage-backed investments, Freddie Mac | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 5,472,000 | 18,009,000 |
Mortgage-backed investments, Freddie Mac | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 5,472,000 | 18,009,000 |
Mortgage-backed investments, Ginnie Mae | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 21,576,000 | 18,634,000 |
Mortgage-backed investments, Ginnie Mae | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 21,576,000 | 18,634,000 |
Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 13,395,000 | 13,107,000 |
Municipal Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 13,395,000 | 13,107,000 |
US Government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 42,633,000 | 15,857,000 |
US Government agencies | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 42,633,000 | 15,857,000 |
Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 22,602,000 | 22,321,000 |
Corporate Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 22,602,000 | 22,321,000 |
Derivative Financial Instruments, Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1,333,000 | |
Derivative Financial Instruments, Assets [Member] | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 1,526,000 | $ 1,333,000 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
OREO, Fair Value | $ 483,000 | $ 2,331,000 | $ 3,663,000 | $ 9,283,000 |
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), recorded investment | 17,849,000 | 30,632,000 | ||
OREO, Fair Value | 483,000 | 2,331,000 | ||
Total, Fair Value | 18,332,000 | 32,963,000 | ||
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), recorded investment | 17,849,000 | 30,632,000 | ||
OREO, Fair Value | 483,000 | 2,331,000 | ||
Total, Fair Value | 18,332,000 | 32,963,000 | ||
Impaired loans (included in loans receivable, net), Fair Value | $ 135,000 | $ 309,000 |
Fair Value_ Schedule of quantit
Fair Value: Schedule of quantitative information about Level 3 Fair Value Measurements on a nonrecurring basis (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Other Real Estate | $ 483,000 | $ 2,331,000 | $ 3,663,000 | $ 9,283,000 |
Level 3 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Impaired Financing Receivable, Recorded Investment | 17,849,000 | 30,632,000 | ||
Other Real Estate | 483,000 | 2,331,000 | ||
Impaired Loans Receivable and other real estate owned Fair Value Measurement | 18,332,000 | 32,963,000 | ||
Level 3 | Market Approach Valuation Technique | Loans Receivable | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Fair Value | $ 17,849,000 | $ 30,632,000 | ||
Unobservable Input(s) | Appraised value discounted by market or borrower conditions | Appraised value discounted by market or borrower conditions | ||
Level 3 | Market Approach Valuation Technique | Loans Receivable | Minimum | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Fair value of financial instruments, range | 0.00% | 0.00% | ||
Level 3 | Market Approach Valuation Technique | Loans Receivable | Maximum | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Fair value of financial instruments, range | 0.00% | 0.00% | ||
Level 3 | Market Approach Valuation Technique | Loans Receivable | Weighted Average | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Fair value of financial instruments, range | 0.00% | 0.00% | ||
Level 3 | Market Approach Valuation Technique | Other Real Estate Owned | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Fair Value | $ 483,000 | $ 2,331,000 | ||
Unobservable Input(s) | Appraised value less selling costs | Appraised value less selling costs | ||
Level 3 | Market Approach Valuation Technique | 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% | ||
Level 3 | Market Approach Valuation Technique | Other Real Estate Owned | Maximum | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Fair value of financial instruments, range | 0.00% | 0.00% | ||
Level 3 | Market Approach Valuation Technique | Other Real Estate Owned | Weighted Average | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Fair value of financial instruments, range | 0.00% | 0.00% | ||
Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Impaired Financing Receivable, Related Allowance | $ 135,000 | $ 309,000 | ||
Impaired Financing Receivable, Recorded Investment | 17,849,000 | 30,632,000 | ||
Other Real Estate | 483,000 | 2,331,000 | ||
Impaired Loans Receivable and other real estate owned Fair Value Measurement | $ 18,332,000 | $ 32,963,000 |
Fair Value_ Fair Value, by Bala
Fair Value: Fair Value, by Balance Sheet Grouping (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments available-for-sale | $ 132,242,000 | $ 129,260,000 |
FHLB stock | 9,882,000 | 8,031,000 |
Derivative Asset, Fair Value, Gross Asset | 1,526,000 | 1,333,000 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash on hand and in banks | 9,189,000 | 5,779,000 |
Interest-earning deposits | 6,942,000 | 25,573,000 |
Investments available-for-sale | 132,242,000 | 129,260,000 |
Loans receivable, net | 988,662,000 | 815,043,000 |
FHLB stock | 9,882,000 | 8,031,000 |
Accrued interest receivable | 4,084,000 | 3,147,000 |
Derivative Asset, Fair Value, Gross Asset | 1,526 | 1,333,000 |
Deposits | 430,750,000 | 285,335,000 |
Certificates of deposit, retail | 333,264,000 | 356,653,000 |
Certificates of deposit, brokered | 75,488,000 | 75,488,000 |
Advances from the FHLB | 216,000,000 | 171,500,000 |
Accrued interest payable | 326,000 | 231,000 |
Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash on hand and in banks | 9,189,000 | 5,779,000 |
Interest-earning deposits | 6,942,000 | 25,573,000 |
Investments available-for-sale | 132,242,000 | 129,260,000 |
Loans receivable, net | 980,578,000 | 818,054,000 |
FHLB stock | 9,882,000 | 8,031,000 |
Accrued interest receivable | 4,084,000 | 3,147,000 |
Derivative Asset, Fair Value, Gross Asset | 1,526 | 1,333,000 |
Deposits | 430,750,000 | 285,335,000 |
Certificates of deposit, retail | 331,199,000 | 356,723,000 |
Certificates of deposit, brokered | 74,947,000 | 75,431,000 |
Advances from the FHLB | 214,477,000 | 170,221,000 |
Accrued interest payable | 326,000 | 231,000 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash on hand and in banks | 9,189,000 | 5,779,000 |
Interest-earning deposits | 6,942,000 | 25,573,000 |
Investments available-for-sale | 0 | 0 |
Loans receivable, net | 0 | 0 |
FHLB stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Deposits | 430,750,000 | 285,335,000 |
Certificates of deposit, retail | 0 | 0 |
Certificates of deposit, brokered | 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 | 132,242,000 | 129,260,000 |
Loans receivable, net | 0 | 0 |
FHLB stock | 9,882,000 | 8,031,000 |
Accrued interest receivable | 4,084,000 | 3,147,000 |
Derivative Asset, Fair Value, Gross Asset | 1,526 | 1,333,000 |
Deposits | 0 | 0 |
Certificates of deposit, retail | 331,199,000 | 356,723,000 |
Certificates of deposit, brokered | 74,947,000 | 75,431,000 |
Advances from the FHLB | 214,477,000 | 170,221,000 |
Accrued interest payable | 326,000 | 231,000 |
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 | 980,578,000 | 818,054,000 |
FHLB stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Deposits | 0 | 0 |
Certificates of deposit, retail | 0 | 0 |
Certificates of deposit, brokered | 0 | |
Advances from the FHLB | 0 | 0 |
Accrued interest payable | $ 0 | $ 0 |
Accrued Interest Receivable (De
Accrued Interest Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable | ||
Interest Receivable | $ 4,084 | $ 3,147 |
Loans receivable | ||
Accounts, Notes, Loans and Financing Receivable | ||
Interest Receivable | 3,492 | 2,665 |
Investments | ||
Accounts, Notes, Loans and Financing Receivable | ||
Interest Receivable | 590 | 478 |
Interest-earning deposits | ||
Accounts, Notes, Loans and Financing Receivable | ||
Interest Receivable | $ 2 | $ 4 |
Deposits - Components of Deposi
Deposits - Components of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deposits [Abstract] | ||
Noninterest-bearing | $ 45,434 | $ 33,422 |
Interest-bearing demand | 38,224 | 18,532 |
Statement savings | 28,456 | 28,383 |
Money market | 318,636 | 204,998 |
Certificates of deposit, retail (1) | 333,264 | 356,653 |
Certificates of deposit, brokered | 75,488 | 75,488 |
Total deposits | $ 839,502 | $ 717,476 |
Deposits - Maturities of Certif
Deposits - Maturities of Certificates of Deposit (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Deposits [Abstract] | |
2,015 | $ 165,883 |
2,016 | 162,298 |
2,017 | 43,568 |
2,018 | 31,037 |
2,019 | 5,966 |
Thereafter | 0 |
Time Deposits | $ 408,752 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deposits [Abstract] | |||
Deposits, public funds | $ 21,500,000 | $ 23,700,000 | |
Time Deposits at or Above FDIC Insurance Limit | 84,300,000 | 91,200,000 | |
Interest Expense, Time Deposits, at or Above FDIC Insurance Limit | 1,100,000 | 975,000 | $ 769,000 |
Deposits controlled by management, members of the Board of Directors and related entities | $ 7,600,000 | $ 9,400,000 |
Deposits - Interest Expense on
Deposits - Interest Expense on Deposit Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deposits [Abstract] | |||
Interest-bearing demand | $ 73 | $ 30 | $ 18 |
Statement savings | 42 | 47 | 40 |
Money market | 1,779 | 870 | 603 |
Certificates of deposit, retail | 4,362 | 3,934 | 3,574 |
Certificates of deposit, brokered | 1,261 | 1,220 | 1,243 |
Interest expense, deposits | $ 7,517 | $ 6,101 | $ 5,478 |
Other Borrowings (Details)
Other Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank, Advances, Floating Rate, under One Year | $ 24,500 | |
Federal Home Loan Bank, Advances, Activity for Year, Maximum Outstanding at any Month End | 231,500 | $ 251,500 |
Federal Home Loan Bank, Advances, Activity for Year, Average Outstanding | 192,227 | 163,893 |
Maximum line of credit with FHLB | 406,500 | 375,100 |
Outstanding advances from FHLB | $ 216,000 | $ 171,500 |
Federal Home Loan Bank, Advances, Activity for Year, Average Interest Rate During Period | 1.30% | 0.87% |
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate, Two to Three Years from Balance Sheet Date | 1.68% | |
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate, One to Two Years from Balance Sheet Date | 1.70% | |
Federal Home Loan Bank, Advances, Maturities Summary, in Rolling Year Three | $ 120,000 | |
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due within One Year of Balance Sheet Date | 1.41% | |
Federal Home Loan Bank, Advances, Maturities Summary, in Rolling Year Two | $ 10,000 | |
Unused credit facility with another financial institution | 35,000 | |
Federal Home Loan Bank, Advances, Maturities Summary, in Next Rolling Twelve Months | $ 61,500 | |
Federal Home Loan Bank, Advances, Activity for Year, Average Interest Rate at Period End | 1.60% | 0.87% |
Single Family Residential Mortgages | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Investments pledged as collateral for FHLB advances | $ 190,700 | $ 188,800 |
Commercial Real Estate | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Investments pledged as collateral for FHLB advances | 161,800 | 200,900 |
Mulitfamily Loans Under Blanket Lien Arrangement | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Investments pledged as collateral for FHLB advances | $ 70,100 | $ 82,400 |
Adjustable Rate [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank, Advances, Activity for Year, Average Interest Rate at Period End | 1.63% |
Derivatives (Details)
Derivatives (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ 125,000 | $ 866,000 |
Derivative Asset, Fair Value, Gross Asset | 1,526,000 | 1,333,000 |
FHLB of Des Moines [Member] | ||
Derivative [Line Items] | ||
Debt Instrument, Face Amount | $ 50,000,000 | |
Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Derivative, Fixed Interest Rate | 1.34% | |
Derivative, Notional Amount | $ 50,000,000 | |
Derivative Asset, Fair Value, Gross Asset | $ 1,526,000 | $ 1,333,000 |
Benefit Plans Multiemployer Pen
Benefit Plans Multiemployer Pension Plans (Details) - USD ($) | Nov. 30, 2017 | Oct. 12, 2017 | Nov. 23, 2016 | Oct. 07, 2016 | Nov. 25, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Multiemployer Plans [Line Items] | |||||||||||
First Financial Northwest’s Plan(1) | 104.80% | [1] | 103.70% | ||||||||
Deferred compensation expense | $ 69,000 | $ 36,000 | $ 101,000 | ||||||||
Pentegra DB Plan | |||||||||||
Multiemployer Plans [Line Items] | |||||||||||
Contributions by employer | $ 502,000 | $ 38,000 | $ 500,000 | $ 40,000 | $ 540,000 | $ 540,000 | $ 540,000 | $ 540,000 | |||
Multiemployer Plans, Pension | Pentegra DB Plan | |||||||||||
Multiemployer Plans [Line Items] | |||||||||||
Assumptions used calculating net periodic benefit cost | 5.89% | 6.09% | |||||||||
Maximum contribution rate | 5.00% | ||||||||||
Total contributions made to plan | $ 153,200,000 | $ 163,100,000 | |||||||||
[1] | Market value of plan assets reflects any contributions received through June 30, 2017, or 2016, respectively. |
Benefit Plans 401(K) Plan (Deta
Benefit Plans 401(K) Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | $ 261,000 | $ 201,000 | $ 192,000 |
Benefit Plans Employee Stock Ow
Benefit Plans Employee Stock Ownership Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |||
ESOP contribution expense | $ 1,941 | $ 1,605 | $ 1,400 |
Dividends on unallocated ESOP shares used to reduce ESOP contribution | $ 175 | $ 183 | 210 |
Allocated shares | 1,156,747 | 1,043,893 | |
Unallocated shares | 536,053 | 648,907 | |
Total ESOP shares | 1,692,800 | 1,692,800 | |
Fair value of unallocated shares | $ 8,314 | $ 12,809 | |
Textuals [Abstract] | |||
Amount borrowed by ESOP | $ 16,900 | ||
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 | $ 1,600 | $ 1,600 |
Benefit Plans Stock-Based Compe
Benefit Plans Stock-Based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Total compensation expense | $ 574,000 | $ 622,000 | $ 440,000 |
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 recipient’s 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 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. | ||
First Financial Northwest, Inc. 2008 Equity Incentive Plan | |||
Compensation expense, related tax benefit | $ 201,000 | 218,000 | $ 154,000 |
First Financial Northwest, Inc. 2008 Equity Incentive Plan | Stock Options | |||
Award vesting period | 5 years | ||
Percentage vesting per annum | 20.00% | ||
Contractual life | 10 years | ||
Unrecognized compensation cost | $ 279,000 | ||
Unrecognized compensation cost recognition period | 1 year 11 months | ||
First Financial Northwest, Inc. 2008 Equity Incentive Plan | Restricted Stock | |||
Unrecognized compensation cost | $ 28,000 | ||
Unrecognized compensation cost recognition period | 6 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | $ 187,000 | $ 367,000 | |
First Financial Northwest Inc 2016 Equity Incentive Plan [Member] | Stock Options | |||
Stock options granted (shares) | 1,400,000 | ||
Number of shares remaining for grant | 1,351,028 | ||
First Financial Northwest Inc 2016 Equity Incentive Plan [Member] | Restricted Stock | |||
Stock options granted (shares) | 400,000 | ||
Number of shares remaining for grant | 375,514 |
Benefit Plans Fair Value Assump
Benefit Plans Fair Value Assumptions and Methodology (Details) - First Financial Northwest, Inc. 2008 Equity Incentive Plan - Stock Options - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
Fair Value, Option, Methodology and Assumptions | Black-Scholes model | |
Annual dividend yield | 1.77% | |
Expected volatility | 35.30% | |
Risk-free interest rate | 2.23% | |
Expected term | 10 years | |
Weighted-average grant date fair value per option granted | $ 4.74 |
Benefit Plans Disclosure of Sha
Benefit Plans Disclosure of Share-based Compensation Arrangements by Share-based Payment Award (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Exercised | (134,880) | (101,303) | (125,000) |
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 | 603,820 | ||
Granted | 0 | ||
Exercised | (134,880) | ||
Outstanding at ending balance | 452,940 | 603,820 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding beginning balance, Weighted Average Exercise Price | $ / shares | $ 10.19 | ||
Granted | $ / shares | 0 | ||
Exercised | $ / shares | 9.70 | ||
Outstanding ending balance, Weighted Average Exercise Price | $ / shares | $ 10.21 | $ 10.19 | |
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 | 4 years 5 months 22 days | ||
Share Based Compensation, Stock Option Plan, Additional Disclosures [Abstract] | |||
Outstanding beginning balance, Agregate Intrinsic Value | $ | |||
Exercised | $ | |||
Outstanding ending balance, Agregate Intrinsic Value | $ | $ 2,402,096 | ||
Expected to Vest, Shares | 450,420 | ||
Expected to Vest, Weighted Average Exercise Price | $ / shares | $ 10.20 | ||
Expected to Vest, Weighted Average Remaining Contracutal Term in Years | 4 years 5 months 20 days | ||
Expected to Vest, Aggregate Intrinsic Value | $ | $ 2,391,816 | ||
Exercisable ending balance, Shares | 368,940 | ||
Exercisable ending balance, Weighted Average Exercise Price | 9.93 | ||
Exercisable ending balance, Weighted Average Remaining Contracutal Term in Years | 3 years 11 months 18 days | ||
Exercisable ending balance, Aggregate Intrinsic Value | $ | $ 2,059,436 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 16,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ / shares | $ 13.80 | ||
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 | 26,400 | ||
Granted, Shares | 10,434 | ||
Vested, Shares | (31,834) | ||
Nonvested ending balance, Shares | 5,000 | 26,400 | |
Expected to vest assuming a 3% forfeiture rate over the vesting term, Shares | 4,850 | ||
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 | $ / shares | $ 9.13 | ||
Granted, Weighted-Average Grant Date Fair Value | $ / shares | |||
Vested, Weighted-Average Grant Date Fair Value | $ / shares | 8.72 | ||
Nonvested ending balance, Weighted-Average Grant Date Fair Value | $ / shares | $ 10.88 | $ 9.13 |
Federal Income Taxes (Details)
Federal Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Tax Credit Carryforward [Line Items] | |||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Unrecognized taxable temporary difference | $ 4,500,000 | ||
Operating Loss Carryforwards | 0 | $ 0 | |
Alternative Minimum Tax Credit Carryforward | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforward | $ 45,000 |
Federal Income Taxes_ Component
Federal Income Taxes: Components of The Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 3,204 | $ 2,164 | $ 717 |
Deferred | 1,738 | 1,548 | 4,170 |
Total income tax expense | $ 4,942 | $ 3,712 | $ 4,887 |
Federal Income Taxes_ Reconcili
Federal Income Taxes: Reconciliation From Tax At the Statutory Rate to the Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense at statutory rate | $ 4,697 | $ 4,412 | $ 4,917 |
Tax exempt interest, net | (107) | (103) | (38) |
Change in valuation allowance | 0 | 0 | (112) |
Benefit of lower federal tax bracket | (98) | 0 | (39) |
DTA revaluation | 807 | 0 | 0 |
Other, net | (357) | (597) | 159 |
Total income tax expense | $ 4,942 | $ 3,712 | $ 4,887 |
Federal Income Taxes_ Deferred
Federal Income Taxes: Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | |||
Charitable contributions | $ 0 | $ 0 | $ 7 |
ALLL | 2,700 | 3,803 | 3,257 |
Reserve for unfunded commitments | 98 | 131 | 187 |
Deferred compensation | 329 | 592 | 646 |
Net unrealized loss on investments available-for-sale | 259 | 557 | 0 |
Alternative minimum tax credit carryforward | 0 | 45 | 1,375 |
Employee benefit plans | 533 | 951 | 1,051 |
OREO market value adjustments | 4 | 231 | 213 |
Accrued expenses | 112 | 453 | 510 |
Core deposit intangible | 5 | 0 | 0 |
Expenses to facilitate branch acquisition | 62 | 0 | 0 |
Total deferred tax assets | 4,102 | 6,763 | 7,246 |
Deferred tax liabilities: | |||
FHLB stock dividends | 271 | 552 | 1,255 |
Loan origination fees and costs | 1,321 | 1,477 | 870 |
Net unrealized gain on investments available for sale | 0 | 0 | 44 |
Gain on fair value of cash flow hedge | 320 | 467 | 0 |
Fixed assets | 891 | 869 | 299 |
Goodwill | 4 | 0 | 0 |
Goodwill | 84 | 256 | 222 |
Total deferred tax liabilities | 2,891 | 3,621 | 2,690 |
Deferred tax assets, net | $ 1,211 | $ 3,142 | $ 4,556 |
Regulatory Capital Requiremen93
Regulatory Capital Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital | $ 134,292 | $ 130,078 |
Capital to Risk Weighted Assets | 13.77% | 15.61% |
Capital Required for Capital Adequacy | $ 78,006 | $ 66,662 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Capital Required to be Well Capitalized | $ 97,507 | $ 83,328 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Tier One Risk Based Capital | $ 122,090 | $ 119,652 |
Tier One Risk Based Capital to Risk Weighted Assets | 12.52% | 14.36% |
Tier One Risk Based Capital Required for Capital Adequacy | $ 58,504 | $ 49,997 |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 6.00% |
Tier One Risk Based Capital Required to be Well Capitalized | $ 78,006 | $ 66,662 |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% |
Common Equity Tier One Capital | $ 122,090 | $ 119,652 |
Common Equity Tier One Capital to Risk Weighted Assets | 12.52% | 14.36% |
Common Equity Tier One Capital For Capital Adequacy | $ 43,878 | $ 37,498 |
Common Equity Tier one Capital to Risk Weighted Assets For Capital Adequacy | 4.50% | 4.50% |
Common Equity Tier One Capital to be Well Capitalized to Risk Weighted Assets | $ 63,379 | $ 54,163 |
Common Equity Tier One Capital to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% |
Tier One Leverage Capital | $ 122,090 | $ 119,652 |
Tier One Leverage Capital to Average Assets | 10.20% | 11.17% |
Tier One Leverage Capital Required for Capital Adequacy | $ 47,874 | $ 42,846 |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Tier One Leverage Capital Required to be Well Capitalized | $ 59,843 | $ 53,558 |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
Parent Company [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital | $ 153,885 | $ 149,890 |
Capital to Risk Weighted Assets | 15.75% | 17.93% |
Capital Required for Capital Adequacy | $ 78,147 | $ 66,874 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Capital Required to be Well Capitalized | $ 97,683 | $ 83,592 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Tier One Risk Based Capital | $ 141,660 | $ 139,430 |
Tier One Risk Based Capital to Risk Weighted Assets | 14.50% | 16.68% |
Tier One Risk Based Capital Required for Capital Adequacy | $ 58,610 | $ 50,155 |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 6.00% |
Tier One Risk Based Capital Required to be Well Capitalized | $ 78,147 | $ 66,874 |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% |
Common Equity Tier One Capital | $ 141,660 | $ 139,430 |
Common Equity Tier One Capital to Risk Weighted Assets | 14.50% | 16.68% |
Common Equity Tier One Capital For Capital Adequacy | $ 43,957 | $ 37,616 |
Common Equity Tier one Capital to Risk Weighted Assets For Capital Adequacy | 4.50% | 4.50% |
Common Equity Tier One Capital to be Well Capitalized to Risk Weighted Assets | $ 63,494 | $ 54,335 |
Common Equity Tier One Capital to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% |
Tier One Leverage Capital | $ 141,660 | $ 139,430 |
Tier One Leverage Capital to Average Assets | 11.82% | 13.02% |
Tier One Leverage Capital Required for Capital Adequacy | $ 47,955 | $ 42,837 |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Tier One Leverage Capital Required to be Well Capitalized | $ 59,944 | $ 53,546 |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Committment to extend credit | $ 126.4 | $ 96.6 |
Commitments and Contingencies L
Commitments and Contingencies Lease Commitments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases, Future Minimum Payments Due, 2018 | $ 455 |
Operating Leases, Future Minimum Payments, 2019 | 483 |
Operating Leases, Future Minimum Payments, 2020 | 460 |
Operating Leases, Future Minimum Payments, 2021 | 283 |
Operating Leases, Future Minimum Payments, Due in Five Years | 248 |
Operating Leases, Future Minimum Payments, Due Thereafter | 245 |
Total | $ 2,174 |
Parent Company Only Financial96
Parent Company Only Financial Statements Condensed Parent Company Only Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 9,189 | $ 5,779 | ||
Interest-earning deposits with banks | 6,942 | 25,573 | ||
Deferred tax assets, net | 1,211 | 3,142 | $ 4,556 | |
Total assets | 1,210,229 | 1,037,584 | ||
Other liabilities | 9,252 | 7,993 | ||
Total liabilities | 1,067,595 | 899,459 | ||
Total stockholders’ equity | 142,634 | 138,125 | $ 170,673 | $ 181,412 |
Total liabilities and stockholders’ equity | 1,210,229 | 1,037,584 | ||
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 151 | 106 | ||
Interest-earning deposits with banks | 14,309 | 13,299 | ||
Investment in subsidiaries | 125,530 | 123,267 | ||
Receivable from subsidiaries | 2,933 | 1,558 | ||
Other assets | 47 | 102 | ||
Total assets | 142,970 | 138,332 | ||
Payable to subsidiaries | 97 | 58 | ||
Deferred Tax Liabilities, Net | 9 | 17 | ||
Other liabilities | 230 | 132 | ||
Total liabilities | 336 | 207 | ||
Total stockholders’ equity | 142,634 | 138,125 | ||
Total liabilities and stockholders’ equity | $ 142,970 | $ 138,332 |
Parent Company Only Financial97
Parent Company Only Financial Statements Condensed Parent Company Only Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Interest-bearing deposits with banks | $ 237 | $ 235 | $ 274 | ||||||||||||
Total interest income | $ 13,300 | $ 12,003 | $ 11,343 | $ 10,998 | $ 11,409 | $ 10,842 | $ 9,896 | $ 9,562 | $ 9,464 | $ 9,358 | $ 9,221 | $ 9,154 | 47,644 | 41,709 | 37,197 |
Total interest expense | 2,912 | 2,628 | 2,346 | 2,136 | 2,105 | 1,908 | 1,713 | 1,781 | 1,772 | 1,694 | 1,653 | 1,632 | 10,022 | 7,507 | 6,751 |
Loss before provision for federal income taxes and equity in undistributed earnings of subsidiaries | 4,730 | 2,770 | 2,792 | 3,129 | 4,344 | 3,453 | 2,219 | 2,588 | 3,643 | 3,430 | 3,551 | 3,423 | 13,421 | 12,604 | 14,047 |
Federal income tax provision | 2,324 | 909 | 924 | 785 | 1,323 | 847 | 779 | 763 | 1,526 | 984 | 1,183 | 1,194 | 4,942 | 3,712 | 4,887 |
Net income | $ 2,406 | $ 1,861 | $ 1,868 | $ 2,344 | $ 3,021 | $ 2,606 | $ 1,440 | $ 1,825 | $ 2,117 | $ 2,446 | $ 2,368 | $ 2,229 | 8,479 | 8,892 | 9,160 |
Parent Company [Member] | |||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Interest-bearing deposits with banks | 47 | 92 | 143 | ||||||||||||
Other Income | 0 | 0 | 2 | ||||||||||||
Total interest income | 47 | 92 | 145 | ||||||||||||
Total interest expense | 1,534 | 1,913 | 1,440 | ||||||||||||
Loss before provision for federal income taxes and equity in undistributed earnings of subsidiaries | (1,487) | (1,821) | (1,295) | ||||||||||||
Federal income tax provision | (565) | (701) | (601) | ||||||||||||
Loss before equity in undistributed loss of subsidiaries | (922) | (1,120) | (694) | ||||||||||||
Equity in undistributed earnings of subsidiaries | 9,401 | 10,012 | 9,854 | ||||||||||||
Net income | $ 8,479 | $ 8,892 | $ 9,160 |
Parent Company Only Financial98
Parent Company Only Financial Statements Condensed Parent Company Only Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Net income | $ 2,406 | $ 1,861 | $ 1,868 | $ 2,344 | $ 3,021 | $ 2,606 | $ 1,440 | $ 1,825 | $ 2,117 | $ 2,446 | $ 2,368 | $ 2,229 | $ 8,479 | $ 8,892 | $ 9,160 |
ESOP, stock options, and restricted stock compensation | 574 | 621 | 440 | ||||||||||||
Change in deferred tax assets, net | 1,738 | 1,548 | 4,170 | ||||||||||||
Change in other assets | (2,829) | (105) | 270 | ||||||||||||
Changes in other liabilities | 1,259 | 1,589 | 2,295 | ||||||||||||
Net cash provided by operating activities | 12,108 | 17,269 | 16,715 | ||||||||||||
Net cash provided in investing activities | (112,482) | (136,282) | (45,314) | ||||||||||||
Proceeds from stock options exercises | 1,309 | 298 | 935 | ||||||||||||
Issuance of common stock - restricted stock awards, net | (138) | (98) | 0 | ||||||||||||
Repurchase and retirement of common stock | (5,238) | (40,812) | (18,717) | ||||||||||||
Dividends paid | (2,777) | (2,803) | (3,237) | ||||||||||||
Net cash provided by financing activities | 85,153 | 44,654 | 30,261 | ||||||||||||
Net increase (decrease) in cash | (15,221) | (74,359) | 1,662 | ||||||||||||
Cash and cash equivalents at beginning of year | 31,352 | 105,711 | 104,049 | 31,352 | 105,711 | 104,049 | |||||||||
Cash and cash equivalents at end of year | 16,131 | 31,352 | 105,711 | 16,131 | 31,352 | 105,711 | |||||||||
Parent Company [Member] | |||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Net income | 8,479 | 8,892 | 9,160 | ||||||||||||
Equity in undistributed earnings of subsidiaries | (9,401) | (10,012) | (9,854) | ||||||||||||
Dividends received from subsidiary | 8,528 | 4,417 | 6,785 | ||||||||||||
ESOP, stock options, and restricted stock compensation | 27 | 27 | 0 | ||||||||||||
Change in deferred tax assets, net | (8) | 40 | 1,101 | ||||||||||||
Change in receivables from subsidiaries | (1,518) | 1,578 | (1,608) | ||||||||||||
Change in payables to subsidiaries | 39 | (26) | (32) | ||||||||||||
Change in other assets | 55 | 4 | (55) | ||||||||||||
Changes in other liabilities | 98 | 21 | (8) | ||||||||||||
Net cash provided by operating activities | 6,299 | 4,941 | 5,489 | ||||||||||||
Investments in subsidiaries | 0 | 0 | 0 | ||||||||||||
ESOP loan repayment | 1,229 | 1,171 | 1,115 | ||||||||||||
Net cash provided in investing activities | 1,229 | 1,171 | 1,115 | ||||||||||||
Proceeds from stock options exercises | 1,309 | 298 | 935 | ||||||||||||
Proceeds for vested awards | 371 | 370 | 282 | ||||||||||||
Issuance of common stock - restricted stock awards, net | (138) | (98) | 0 | ||||||||||||
Repurchase and retirement of common stock | (5,238) | (40,812) | (18,717) | ||||||||||||
Dividends paid | (2,777) | (2,803) | (3,237) | ||||||||||||
Net cash provided by financing activities | (6,473) | (43,045) | (20,737) | ||||||||||||
Net increase (decrease) in cash | 1,055 | (36,933) | (14,133) | ||||||||||||
Cash and cash equivalents at beginning of year | $ 13,405 | $ 50,338 | $ 64,471 | 13,405 | 50,338 | 64,471 | |||||||||
Cash and cash equivalents at end of year | $ 14,460 | $ 13,405 | $ 50,338 | $ 14,460 | $ 13,405 | $ 50,338 |
Earnings Per Share_ Schedule 99
Earnings Per Share: Schedule of Earnings Per Share Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||||||
Net income | $ 2,406 | $ 1,861 | $ 1,868 | $ 2,344 | $ 3,021 | $ 2,606 | $ 1,440 | $ 1,825 | $ 2,117 | $ 2,446 | $ 2,368 | $ 2,229 | $ 8,479 | $ 8,892 | $ 9,160 |
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | (4) | (21) | (31) | ||||||||||||
Earnings allocated to common shareholders | $ 8,475 | $ 8,871 | $ 9,129 | ||||||||||||
Basic weighted-average common shares outstanding | 10,289,049 | 11,868,278 | 13,528,393 | ||||||||||||
Dilutive effect of stock options | 137,950 | 143,605 | 136,670 | ||||||||||||
Dilutive effect of restricted stock grants | 10,450 | 16,545 | 20,919 | ||||||||||||
Diluted weighted-average common shares outstanding | 10,437,449 | 12,028,428 | 13,685,982 | ||||||||||||
Basic earnings (loss) per share (usd per share) | $ 0.24 | $ 0.18 | $ 0.18 | $ 0.23 | $ 0.29 | $ 0.22 | $ 0.12 | $ 0.14 | $ 0.16 | $ 0.18 | $ 0.17 | $ 0.16 | $ 0.82 | $ 0.75 | $ 0.67 |
Diluted earnings (loss) per share (usd per share) | $ 0.23 | $ 0.18 | $ 0.18 | $ 0.22 | $ 0.29 | $ 0.22 | $ 0.11 | $ 0.14 | $ 0.16 | $ 0.18 | $ 0.17 | $ 0.16 | $ 0.81 | $ 0.74 | $ 0.67 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share | 0 | 60,000 | 225,000 |
Summarized Consolidated Quar101
Summarized Consolidated Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |||||||||||||||
Total interest income | $ 13,300 | $ 12,003 | $ 11,343 | $ 10,998 | $ 11,409 | $ 10,842 | $ 9,896 | $ 9,562 | $ 9,464 | $ 9,358 | $ 9,221 | $ 9,154 | $ 47,644 | $ 41,709 | $ 37,197 |
Total interest expense | 2,912 | 2,628 | 2,346 | 2,136 | 2,105 | 1,908 | 1,713 | 1,781 | 1,772 | 1,694 | 1,653 | 1,632 | 10,022 | 7,507 | 6,751 |
Net interest income | 10,388 | 9,375 | 8,997 | 8,862 | 9,304 | 8,934 | 8,183 | 7,781 | 7,692 | 7,664 | 7,568 | 7,522 | 37,622 | 34,202 | 30,446 |
Provision (recapture of provision) for loan losses | (1,200) | 500 | 100 | 200 | (100) | 900 | 600 | (100) | (900) | (700) | (500) | (100) | (400) | 1,300 | (2,200) |
Net interest income after provision (recapture of provision) for loan losses | 11,588 | 8,875 | 8,897 | 8,662 | 9,404 | 8,034 | 7,583 | 7,881 | 8,592 | 8,364 | 8,068 | 7,622 | 38,022 | 32,902 | 32,646 |
Total noninterest income | 211 | 731 | 731 | 535 | 790 | 673 | 708 | 480 | 384 | 447 | 357 | 91 | 2,208 | 2,651 | 1,279 |
Total noninterest expense | 7,069 | 6,836 | 6,836 | 6,068 | 5,850 | 5,254 | 6,072 | 5,773 | 5,333 | 5,381 | 4,874 | 4,290 | 26,809 | 22,949 | 19,878 |
Income before provision for income taxes | 4,730 | 2,770 | 2,792 | 3,129 | 4,344 | 3,453 | 2,219 | 2,588 | 3,643 | 3,430 | 3,551 | 3,423 | 13,421 | 12,604 | 14,047 |
Provision for federal income tax expense | 2,324 | 909 | 924 | 785 | 1,323 | 847 | 779 | 763 | 1,526 | 984 | 1,183 | 1,194 | 4,942 | 3,712 | 4,887 |
Net income | $ 2,406 | $ 1,861 | $ 1,868 | $ 2,344 | $ 3,021 | $ 2,606 | $ 1,440 | $ 1,825 | $ 2,117 | $ 2,446 | $ 2,368 | $ 2,229 | $ 8,479 | $ 8,892 | $ 9,160 |
Basic earnings (loss) per share (usd per share) | $ 0.24 | $ 0.18 | $ 0.18 | $ 0.23 | $ 0.29 | $ 0.22 | $ 0.12 | $ 0.14 | $ 0.16 | $ 0.18 | $ 0.17 | $ 0.16 | $ 0.82 | $ 0.75 | $ 0.67 |
Diluted earnings (loss) per share (usd per share) | $ 0.23 | $ 0.18 | $ 0.18 | $ 0.22 | $ 0.29 | $ 0.22 | $ 0.11 | $ 0.14 | $ 0.16 | $ 0.18 | $ 0.17 | $ 0.16 | $ 0.81 | $ 0.74 | $ 0.67 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Jan. 24, 2018 | Feb. 21, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Notes, Loans and Financing Receivable, Net, Current | $ 1,095,192,000 | $ 900,187,000 | |||
Interest and Fee Income, Loans and Leases | 43,607,000 | 38,218,000 | $ 34,612,000 | ||
Subsequent Event [Member] | |||||
Proceeds from Loans | $ 20,000,000 | ||||
Proceeds from Recoveries of Loans Previously Charged off | $ 4,000,000 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 3,100,000 | ||||
Interest and Fee Income, Loans and Leases | $ 914,000 | ||||
Construction Land Development [Member] | |||||
Notes, Loans and Financing Receivable, Net, Current | 237,573,000 | 208,948,000 | |||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 0 | $ 0 | $ 0 | ||
Loans receivable | Construction Land Development [Member] | |||||
Notes, Loans and Financing Receivable, Net, Current | $ 22,000,000 |