Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 05, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | First Financial Northwest, Inc. | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Entity Central Index Key | 1,401,564 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 10,914,556 | |
Entity Filer Category | Accelerated Filer | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
FIRST FINANCIAL NORTHWEST, INC.
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash on hand and in banks | $ 7,167 | $ 9,189 |
Interest-earning deposits with banks | 19,094 | 6,942 |
Investments available-for-sale, at fair value | 140,868 | 132,242 |
Loans receivable, net of allowance of $13,116 and $12,882 | 995,557 | 988,662 |
Federal Home Loan Bank (FHLB) stock, at cost | 7,410 | 9,882 |
Accrued interest receivable | 4,664 | 4,084 |
Deferred tax assets, net | 2,092 | 1,211 |
Other real estate owned (OREO) | 483 | 483 |
Premises and equipment, net | 21,277 | 20,614 |
Bank owned life insurance (BOLI), net | 29,745 | 29,027 |
Prepaid expenses and other assets | 4,460 | 5,738 |
Goodwill | 889 | 889 |
Core deposit intangible | 1,153 | 1,266 |
Total assets | 1,234,859 | 1,210,229 |
Liabilities and Stockholders' Equity | ||
Noninterest-bearing deposits | 51,180 | 45,434 |
Interest-bearing deposits | 865,099 | 794,068 |
Total deposits | 916,279 | 839,502 |
FHLB Advances | 149,000 | 216,000 |
Advance payments from borrowers for taxes and insurance | 4,737 | 2,515 |
Accrued interest payable | 541 | 326 |
Other liabilities | 9,589 | 9,252 |
Total liabilities | 1,080,146 | 1,067,595 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Preferred stock, $0.01 par value; authorized 10,000,000 shares; no shares issued or outstanding | 0 | 0 |
Common stock, $0.01 par value; authorized 90,000,000 shares; issued and outstanding 10,914,556 shares at September 30, 2018, and 10,748,437 shares at December 31, 2017 | 109 | 107 |
Additional paid-in capital | 96,664 | 94,173 |
Retained earnings, substantially restricted | 65,004 | 54,642 |
Accumulated other comprehensive loss, net of tax | (2,550) | (928) |
Unearned Employee Stock Ownership Plan (ESOP) shares | (4,514) | (5,360) |
Total stockholders' equity | 154,713 | 142,634 |
Total liabilities and stockholders' equity | $ 1,234,859 | $ 1,210,229 |
FIRST FINANCIAL NORTHWEST, IN_2
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Loans receivable allowance for loan losses | $ 13,116 | $ 12,882 |
Stockholders' Equity | ||
Preferred stock par value per share (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock shares issued (in shares) | 0 | 0 |
Preferred stock shares outstanding (in shares) | 0 | 0 |
Common stock par value per share (in usd per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock shares issued (in shares) | 10,914,556 | 10,748,437 |
Common stock shares outstanding (in shares) | 10,914,556 | 10,748,437 |
FIRST FINANCIAL NORTHWEST, IN_3
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest income | ||||
Loans, including fees | $ 12,631,000 | $ 10,959,000 | $ 38,103,000 | $ 31,338,000 |
Investments available-for-sale | 1,063,000 | 869,000 | 3,002,000 | 2,601,000 |
Interest-earning deposits with banks | 59,000 | 108,000 | 141,000 | 194,000 |
Dividends on FHLB stock | 135,000 | 67,000 | 343,000 | 211,000 |
Total interest income | 13,888,000 | 12,003,000 | 41,589,000 | 34,344,000 |
Interest expense | ||||
Deposits | 2,912,000 | 1,933,000 | 7,623,000 | 5,400,000 |
FHLB advances and other borrowings | 917,000 | 695,000 | 2,794,000 | 1,710,000 |
Total interest expense | 3,829,000 | 2,628,000 | 10,417,000 | 7,110,000 |
Net interest income | 10,059,000 | 9,375,000 | 31,172,000 | 27,234,000 |
Provision (recapture of provision) for loan losses | 200,000 | 500,000 | (4,200,000) | 800,000 |
Net interest income after provision (recapture of provision) for loan losses | 9,859,000 | 8,875,000 | 35,372,000 | 26,434,000 |
Noninterest income | ||||
Net gain (loss) on sale of investments | 1,000 | 47,000 | (20,000) | 103,000 |
BOLI income | 245,000 | 173,000 | 718,000 | 490,000 |
Wealth management revenue | 145,000 | 252,000 | 400,000 | 699,000 |
Deposit related fees | 167,000 | 113,000 | 503,000 | 277,000 |
Loan related fees | 273,000 | 144,000 | 533,000 | 420,000 |
Other | 10,000 | 2,000 | 16,000 | 8,000 |
Total noninterest income | 841,000 | 731,000 | 2,150,000 | 1,997,000 |
Noninterest expense | ||||
Salaries and employee benefits | 4,732,000 | 4,406,000 | 14,325,000 | 13,100,000 |
Occupancy and equipment | 814,000 | 726,000 | 2,412,000 | 1,785,000 |
Professional fees | 353,000 | 458,000 | 1,123,000 | 1,379,000 |
Data processing | 356,000 | 372,000 | 1,031,000 | 1,131,000 |
OREO related expenses (reimbursements), net | 1,000 | (6,000) | 4,000 | 14,000 |
Regulatory assessments | 126,000 | 122,000 | 391,000 | 330,000 |
Insurance and bond premiums | 95,000 | 105,000 | 355,000 | 302,000 |
Marketing | 85,000 | 102,000 | 269,000 | 202,000 |
Other general and administrative | 639,000 | 551,000 | 1,805,000 | 1,497,000 |
Total noninterest expense | 7,201,000 | 6,836,000 | 21,715,000 | 19,740,000 |
Income before federal income tax provision | 3,499,000 | 2,770,000 | 15,807,000 | 8,691,000 |
Federal income tax provision | 707,000 | 909,000 | 3,071,000 | 2,618,000 |
Net income | $ 2,792,000 | $ 1,861,000 | $ 12,736,000 | $ 6,073,000 |
Earnings per common share | ||||
Basic earnings per share (in dollars per share) | $ 0.27 | $ 0.18 | $ 1.24 | $ 0.59 |
Diluted earnings per share (in dollars per share) | $ 0.27 | $ 0.18 | $ 1.22 | $ 0.58 |
Weighted average number of common shares outstanding | ||||
Basic shares outstanding (in shares) | 10,356,994 | 10,287,663 | 10,280,287 | 10,323,459 |
Diluted shares outstanding (in shares) | 10,468,802 | 10,427,038 | 10,405,315 | 10,480,061 |
FIRST FINANCIAL NORTHWEST, IN_4
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,792 | $ 1,861 | $ 12,736 | $ 6,073 |
Other comprehensive income, before tax: | ||||
Unrealized holding (losses) gains on investments available-for-sale | (600) | 214 | (3,002) | 1,043 |
Tax benefit (provision) | 126 | (75) | 630 | (365) |
Reclassification adjustment for net (gains) losses realized in income | 1 | 47 | (20) | 103 |
Tax benefit (provision) | 0 | 17 | (4) | 36 |
Gain (loss) on cash flow hedge | 88 | 28 | 928 | (215) |
Tax (provision) benefit | (18) | (10) | (194) | 75 |
Other comprehensive (loss) income, net of tax | (405) | 127 | (1,622) | 471 |
Total comprehensive income | $ 2,387 | $ 1,988 | $ 11,114 | $ 6,544 |
FIRST FINANCIAL NORTHWEST, IN_5
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 (in shares) at Dec. 31, 2016 | 10,938,251 | |||||
Balances at beginning of period at Dec. 31, 2016 | $ 138,125 | $ 109 | $ 96,852 | $ 48,981 | $ (1,328) | $ (6,489) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 6,073 | 6,073 | ||||
Other comprehensive loss | $ 471 | 471 | ||||
Exercise of stock options (in shares) | 134,880 | |||||
Exercise of stock options | $ 1,309 | 2 | 1,307 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 3,984 | |||||
Net share settlement of stock awards | $ (105) | (105) | ||||
Stock or Unit Option Plan Expense | 505 | |||||
Compensation related to stock options and restricted stock awards | 505 | 505 | ||||
Allocation of ESOP shares | $ 1,471 | 625 | 846 | |||
Repurchase and retirement of common stock (in shares) | (313,200) | |||||
Repurchase and retirement of common stock | $ (5,019) | (3) | (5,016) | |||
Cash dividend declared and paid | $ (2,070) | (2,070) | ||||
Balances at end of period (in shares) at Sep. 30, 2017 | 10,763,915 | |||||
Balances at end of period at Sep. 30, 2017 | $ 140,760 | 108 | 94,168 | 52,984 | (857) | (5,643) |
Balances at beginning of period (in shares) at Dec. 31, 2017 | 10,748,437 | |||||
Balances at beginning of period at Dec. 31, 2017 | $ 142,634 | 107 | 94,173 | 54,642 | (928) | (5,360) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 12,736 | 12,736 | ||||
Other comprehensive loss | $ (1,622) | (1,622) | ||||
Exercise of stock options (in shares) | 137,940 | |||||
Exercise of stock options | $ 1,365 | 1 | 1,364 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 30,179 | |||||
Net share settlement of stock awards | $ (40) | 1 | (41) | |||
Stock or Unit Option Plan Expense | 539 | |||||
Compensation related to stock options and restricted stock awards | 539 | 539 | ||||
Allocation of ESOP shares | $ 1,475 | 629 | 846 | |||
Canceled common stock - restricted stock awards (in shares) | 2,000 | |||||
Cash dividend declared and paid | $ (2,374) | (2,374) | ||||
Balances at end of period (in shares) at Sep. 30, 2018 | 10,914,556 | |||||
Balances at end of period at Sep. 30, 2018 | $ 154,713 | $ 109 | $ 96,664 | $ 65,004 | $ (2,550) | $ (4,514) |
FIRST FINANCIAL NORTHWEST, IN_6
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMETNS OF STOCKHOLDERS' EQUITY (PARENTHETICALS) - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.23 | $ 0.20 |
Allocated shares | 84,640 | 84,642 |
FIRST FINANCIAL NORTHWEST, IN_7
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities | ||
Net income | $ 12,736,000 | $ 6,073,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
(Recapture of provision) provision for loan losses | (4,200,000) | 800,000 |
OREO market value adjustments | 0 | 50,000 |
Gain on sale of OREO property, net | 0 | (5,000) |
Net amortization of premiums and discounts on investments | 812,000 | 500,000 |
Loss (gain) on sale of investments available-for-sale | 20,000 | (103,000) |
Depreciation of premises and equipment | 1,228,000 | 883,000 |
Loss on sale of premises and equipment | 0 | 65,000 |
Deferred federal income taxes | (449,000) | 507,000 |
Allocation of ESOP shares | 1,475,000 | 1,471,000 |
Stock compensation expense | 539,000 | 505,000 |
Increase in cash surrender value of BOLI | (718,000) | (490,000) |
Changes in operating assets and liabilities: | ||
Decrease (increase) in prepaid expenses and other assets | 2,319,000 | (840,000) |
Net increase in advance payments from borrowers for taxes and insurance | 2,222,000 | 2,008,000 |
Increase in accrued interest receivable | (580,000) | (562,000) |
Increase in accrued interest payable | 215,000 | 49,000 |
Increase in other liabilities | 337,000 | 3,038,000 |
Net cash provided by operating activities | 15,956,000 | 13,949,000 |
Cash flows from investing activities: | ||
Proceeds from sales of OREO properties | 0 | 461,000 |
Proceeds from sales, calls and maturities of investments available-for-sale | 15,186,000 | 7,494,000 |
Principal repayments on investments available-for-sale | 5,385,000 | 7,980,000 |
Purchases of investments available-for-sale | (33,011,000) | (23,518,000) |
Net increase in loans receivable | (2,695,000) | (117,619,000) |
Redemption (purchase) of FHLB stock | 2,472,000 | (871,000) |
Purchase of premises and equipment | (1,891,000) | (2,399,000) |
Proceeds from sale or disposal of premises and equipment, net | 0 | 7,000 |
Purchase of BOLI | 0 | (4,251,000) |
Net cash received from acquisition of branches | 0 | 71,568,000 |
Net cash used by investing activities | (14,554,000) | (61,148,000) |
Cash flows from financing activities: | ||
Net increase in deposits | 76,777,000 | 23,735,000 |
Advances from the FHLB | 320,500,000 | 40,000,000 |
Repayments of advances from the FHLB | (387,500,000) | (20,000,000) |
Proceeds from stock options exercises | 1,365,000 | 1,309,000 |
Net share settlement of stock awards | 40,000 | 105,000 |
Repurchase and retirement of common stock | 0 | (5,019,000) |
Dividends paid | (2,374,000) | (2,070,000) |
Net cash provided by financing activities | 8,728,000 | 37,850,000 |
Cash and cash equivalents: | ||
Net decrease in cash and cash equivalents | 10,130,000 | (9,349,000) |
Cash and cash equivalents at beginning of period | 16,131,000 | 31,352,000 |
Cash and cash equivalents at end of period | 26,261,000 | 22,003,000 |
Cash paid during the period for: | ||
Interest paid | 10,202,000 | 7,061,000 |
Federal income taxes paid | 3,175,000 | 2,810,000 |
Assets acquired in acquisition of branches | 0 | 72,239,000 |
Liabilities assumed in acquisition of branches | 0 | 74,657,000 |
Noncash transactions: | ||
Change in unrealized loss on investments available-for-sale | (2,982,000) | 940,000 |
Change in gain on cash flow hedge | $ 928,000 | $ (215,000) |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business First Financial Northwest, Inc. (“First Financial Northwest”), a Washington corporation, was formed on June 1, 2007 for the purpose of becoming the holding company for First 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 accompanying data, relates primarily to First Financial Northwest Bank. First Financial Northwest is a bank holding company, having converted from a savings and loan holding company on March 31, 2015, and as a bank holding company is subject to regulation by the Federal Reserve Bank of San Francisco. First Financial Northwest Bank is regulated by the Federal Deposit Insurance Corporation (“FDIC”) and the Washington State Department of Financial Institutions (“DFI”). As of September 30, 2018, First Financial Northwest Bank operated in ten locations in Washington with the headquarters and four additional branch locations in King County and five branch locations in Snohomish County. The Bank acquired four bank branches (one in King and three in Snohomish counties) and $74.7 million in retail deposits from Opus Bank on August 25, 2017. No loans were acquired in this transaction. The Bank’s primary market area consists of King, Snohomish, Pierce and Kitsap counties, Washington. The Bank has received FDIC approval to open an additional branch in Kent, Washington, which is expected to open in the first quarter of 2019. The Bank is a portfolio lender, originating and purchasing one-to-four family residential, multifamily, commercial real estate, construction/land development, business, and consumer loans. Loans are primarily funded by deposits from the general public, supplemented by borrowings from the Federal Home Loan Bank of Des Moines (“FHLB”) and deposits raised in the national brokered deposit market. As used throughout this report, the terms “we,” “our,” “us,” or the “Company” refer to First Financial Northwest, Inc. and its consolidated subsidiary First Financial Northwest Bank, unless the context otherwise requires. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by U.S. Generally Accepted Accounting Principles (“GAAP”) for complete financial statements. These unaudited interim consolidated financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2017 , as filed with the SEC (“2017 Form 10-K”). In our opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of the unaudited interim consolidated financial statements in accordance with GAAP have been included. All significant intercompany balances and transactions between the Company and its subsidiaries have been eliminated in consolidation. Operating results for the nine months ended September 30, 2018 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . In preparing the unaudited consolidated financial statements, we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the allowance for loan and lease losses (“ALLL”), the valuation of other real estate owned (“OREO”) and the underlying collateral of impaired loans, deferred tax assets, and the fair value of financial instruments. 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 originating and purchasing loans for its portfolio. Substantially all income is derived from a diverse base of commercial, multifamily, and residential real estate loans, consumer lending activities, and investments. Certain amounts in the unaudited interim consolidated financial statements for prior periods have been reclassified to conform to the current unaudited financial statement presentation with no effect on consolidated net income or stockholders’ equity. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Recent Accounting Pronouncements Adopted in 2018 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. These standards were effective for interim and annual periods beginning after December 15, 2017. The Company has analyzed its sources of noninterest income to determine when the satisfaction of the performance obligation occurs and the appropriate recognition of revenue. The adoption of these ASUs did not have a material impact on the Company’s consolidated financial statements. For more discussion on this topic, see Note 12 - Revenue Recognition in this report. 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. In addition, the amendments in this ASU require an entity to disclose the fair value of its financial instruments using the exit price notion. Exit price is 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 amendments in this ASU were effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company has updated the fair value disclosure on Note 7 in this report to reflect adoption of this standard, to include using the exit price notion in the fair value disclosure of financial instruments. The adoption of ASU 2016-01 did not have a material impact on the Company’s consolidated financial statements. 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 addresses 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 were 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 were impacted by adoption of this ASU and therefore adoption of ASU 2016-15 did not 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 was effective for annual periods beginning after December 15, 2017. Adoption of ASU 2017-01 did not 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 was effective for reporting periods beginning after December 15, 2017. The Company has not had any modifications on share-based payment awards and therefore the adoption of ASU No. 2017-09 did not 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 Cuts and Jobs Act (“Tax Act”). This ASU is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company 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. In March 2018, FASB issued ASU No. 2018-05, Income Taxes (Topic 740). This ASU was issued to provide guidance on the income tax accounting implications of the Tax Act and allows for entities to report provisional amounts for specific income tax effects of the Act for which the accounting under Topic 740 was not yet complete but a reasonable estimate could be determined. A measurement period of one-year is allowed to complete the accounting effects under Topic 740 and revise any previous estimates reported. Any provisional amounts or subsequent adjustments included in an entity’s financial statements during the measurement period should be included in income from continuing operations as an adjustment to tax expense in the reporting period the amounts are determined. The Company adopted this ASU with the provisional adjustments as reported in the Consolidated Financial Statements included in the 2017 Form 10-K. As of September 30, 2018, the Company did not incur any adjustments to the provisional recognition. In June 2018, FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718). This ASU was issued to expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Previously, these awards were recorded at the fair value of consideration received or the fair value of the equity instruments issued and was measured as the earlier of the commitment date or date performance was completed. The amendments in this ASU require the awards to be measured at the grant-date fair value of the equity instrument. This ASU is effective for fiscal years beginning after December 15, 2018, and early adoption is permitted once the entity has adopted Topic 606. The Company has adopted this ASU with the nonemployee share-based payment awards granted in June 2018, with no material impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements 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. In July 2018, FASB issued ASU No. 2018-11, Leases (Topic 842) to address the comparative reporting requirements when this ASU is adopted. Under this ASU, 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. According to ASU 2018-11, the Company may recognize the cumulative-effect adjustment to the opening balance of retained earnings at the time ASU 2016-02 is adopted. 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. The Company intends to adopt ASU 2016-13 in the first quarter of 2020, and as a result, we expect our allowance for loan losses to increase. Until our evaluation is complete, however, the magnitude of the increase will not be known. 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 acquisition on August 25, 2017 of four branches from Opus Bank, a California state-chartered commercial bank (the “Branch Acquisition”) and expects to early adopt this ASU for the annual goodwill impairment test 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 standard will take effect for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating its available-for-sale securities that fit the criteria of this ASU but has not yet quantified the impact. The adoption of ASU No. 2017-08 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 non-financial 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. The Company intends to adopt this ASU during 2018, however its current cash flow hedge will not likely be impacted by the adoption of ASU 2017-12, and consequently, is not expected to have a material impact on the Company’s consolidated financial statements. In August 2018, FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this ASU remove certain disclosure requirements regarding transfers between Level 1 and Level 2 of the fair value hierarchy and changes in unrealized gains and losses for recurring Level 3 fair value measurements. In addition, the amendments modified and added certain disclosure requirements for Level 3 fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2019, and early adoption is permitted. Entities are permitted to early adopt any removed or modified disclosures and adopt the additional disclosures at the effective date. Adoption of ASU 2018-13 is not expected to have a material impact on the Company’s consolidated financial statements. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2018 | |
Investments [Abstract] | |
Investments | Investments Investments available-for-sale are summarized as follows at the dates indicated: September 30, 2018 Amortized Gross Gross Fair Value (In thousands) Mortgage-backed investments: Fannie Mae $ 26,488 $ 11 $ (1,165 ) $ 25,334 Freddie Mac 5,372 1 (161 ) 5,212 Ginnie Mae 23,500 — (1,521 ) 21,979 Other 6,028 — (13 ) 6,015 Municipal bonds 10,640 5 (179 ) 10,466 U.S. Government agencies 49,564 79 (925 ) 48,718 Corporate bonds 23,490 245 (591 ) 23,144 Total $ 145,082 $ 341 $ (4,555 ) $ 140,868 December 31, 2017 Amortized Gross Gross 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 Total $ 133,475 $ 999 $ (2,232 ) $ 132,242 The tables below summarize the aggregate fair value and gross unrealized loss by length of time those investment securities have been continuously in an unrealized loss position at the dates indicated: September 30, 2018 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss (In thousands) Mortgage-backed investments: Fannie Mae $ 11,129 $ (238 ) $ 13,736 $ (927 ) $ 24,865 $ (1,165 ) Freddie Mac 5,102 (161 ) — — 5,102 (161 ) Ginnie Mae 6,951 (207 ) 15,028 (1,314 ) 21,979 (1,521 ) Other 6,015 (13 ) — — 6,015 (13 ) Municipal bonds 6,378 (134 ) 963 (45 ) 7,341 (179 ) U.S. Government agencies 32,551 (708 ) 6,451 (217 ) 39,002 (925 ) Corporate bonds 993 (7 ) 6,916 (584 ) 7,909 (591 ) Total $ 69,119 $ (1,468 ) $ 43,094 $ (3,087 ) $ 112,213 $ (4,555 ) December 31, 2017 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross 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 ) Total $ 61,015 $ (665 ) $ 29,867 $ (1,567 ) $ 90,882 $ (2,232 ) On a quarterly basis, management makes an assessment to determine whether there have been any events or economic circumstances to indicate that a security on which there is an unrealized loss is impaired on an other-than-temporary basis. The Company considers many factors including the severity and duration of the impairment, recent events specific to the issuer or industry, and for debt securities, external credit ratings and recent downgrades. Securities on which there is an unrealized loss that is deemed to be an other-than-temporary impairment (“OTTI”) are written down to fair value. If the Company intends to sell a debt security, or it is likely that the Company will be required to sell the debt security before recovering its cost basis, the entire impairment loss would be recognized in earnings as an OTTI. If the Company does not intend to sell the debt security and it is not likely that it will be required to sell the debt security but does not expect to recover the entire amortized cost basis of the debt security, only the portion of the impairment loss representing credit losses would be recognized in earnings. The credit loss on a debt 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 debt 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. At September 30, 2018 , and December 31, 2017 , the Company had 57 securities and 36 securities in an unrealized loss position, respectively, with 18 and 13 of these securities in an unrealized loss position for 12 months or more, respectively. Management does not believe that any individual unrealized loss as of September 30, 2018, or December 31, 2017, represented OTTI. The decline in fair market value of these securities was generally due to changes in interest rates and changes in market-desired spreads subsequent to their purchase. Management also reviewed the financial condition of the entities issuing municipal or corporate bonds at September 30, 2018 , and December 31, 2017, and determined that an OTTI charge was not warranted. The amortized cost and estimated fair value of investments available-for-sale at September 30, 2018 , by contractual 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. September 30, 2018 Amortized Cost Fair Value (In thousands) Due within one year $ 253 $ 251 Due after one year through five years 7,655 7,725 Due after five years through ten years 19,673 19,196 Due after ten years 56,113 55,156 83,694 82,328 Mortgage-backed investments 61,388 58,540 Total $ 145,082 $ 140,868 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 less the FDIC insured amount. Investment securities with market values of $14.5 million and $14.2 million were pledged as collateral for public deposits at September 30, 2018 , and December 31, 2017 , respectively, both of which exceeded the collateral requirements established by the Washington Public Deposit Protection Commission. For the three and nine months ended September 30, 2018 , we had calls, sales, and maturities on investment securities of $5.4 million , and $15.2 million , respectively, generating a net gain of $1,000 and a net loss of $20,000 , respectively. For the three and nine months ended September 30, 2017 , we had calls, sales and a maturity on investment securities of $2.8 million , and $7.5 million , respectively, generating a net gain of $47,000 and $103,000 , respectively. |
Loans Receivable
Loans Receivable | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Loans Receivable | Loans Receivable Loans receivable are summarized as follows at the dates indicated: September 30, 2018 December 31, 2017 (In thousands) One-to-four family residential: Permanent owner occupied $ 184,698 $ 148,304 Permanent non-owner occupied 143,226 130,351 327,924 278,655 Multifamily 176,521 184,902 Commercial real estate 360,485 361,842 Construction/land: One-to-four family residential 84,912 87,404 Multifamily 80,607 108,439 Commercial 21,385 5,325 Land 7,113 36,405 194,017 237,573 Business 29,655 23,087 Consumer 12,419 9,133 Total loans 1,101,021 1,095,192 Less: Loans in process ("LIP") 91,232 92,498 Deferred loan fees, net 1,116 1,150 Allowance for loan and lease losses ("ALLL") 13,116 12,882 Loans receivable, net $ 995,557 $ 988,662 At September 30, 2018 , loans totaling $475.9 million were pledged to secure borrowings from the FHLB of Des Moines compared to $422.6 million at December 31, 2017 . ALLL . The Company maintains an ALLL as a reserve against probable and inherent risk of losses in its loan portfolios. The ALLL is comprised of a general reserve component for loans evaluated collectively for loss and a specific reserve component for loans evaluated individually. When an issue is identified, and it is determined that the loan needs to be classified as nonperforming and/or impaired, an evaluation of the discounted expected cash flows is done, and an appraisal may be obtained on the collateral. Based on this evaluation, additional provision for loan loss or charge-offs is recorded prior to the end of the financial reporting period. The following tables summarize changes in the ALLL and loan portfolio by loan type and impairment method at the dates and for the periods shown: At or For the Three Months Ended September 30, 2018 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (In thousands) ALLL: Beginning balance $ 3,265 $ 1,928 $ 4,494 $ 2,121 $ 674 $ 272 $ 12,754 Recoveries 2 — — 160 — — 162 Provision (recapture) 265 (189 ) (16 ) (84 ) 236 (12 ) 200 Ending balance $ 3,532 $ 1,739 $ 4,478 $ 2,197 $ 910 $ 260 $ 13,116 At or For the Nine Months Ended September 30, 2018 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (In thousands) ALLL: Beginning balance $ 2,837 $ 1,820 $ 4,418 $ 2,816 $ 694 $ 297 $ 12,882 Recoveries 4,248 — 14 172 — — 4,434 (Recapture) provision (3,553 ) (81 ) 46 (791 ) 216 (37 ) (4,200 ) Ending balance $ 3,532 $ 1,739 $ 4,478 $ 2,197 $ 910 $ 260 $ 13,116 ALLL by category: General reserve $ 3,446 $ 1,739 $ 4,471 $ 2,197 $ 910 $ 260 $ 13,023 Specific reserve 86 — 7 — — — 93 Loans: (1) Total loans $ 327,924 $ 176,521 $ 360,261 $ 103,009 $ 29,655 $ 12,419 $ 1,009,789 Loans collectively evaluated for impairment (2) 318,353 175,405 357,335 103,009 29,655 12,330 996,087 Loans individually evaluated for impairment (3) 9,571 1,116 2,926 — — 89 13,702 ____________ (1) Net of LIP. (2) Loans collectively evaluated for general reserves. (3) Loans individually evaluated for specific reserves. At or For the Three Months Ended September 30, 2017 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (In thousands) ALLL: Beginning balance $ 2,627 $ 1,231 $ 3,733 $ 2,942 $ 457 $ 295 $ 11,285 Recoveries 247 — 78 — — — 325 (Recapture) provision (157 ) 472 (68 ) 40 211 2 500 Ending balance $ 2,717 $ 1,703 $ 3,743 $ 2,982 $ 668 $ 297 $ 12,110 At or For the Nine Months Ended September 30, 2017 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (In thousands) ALLL: Beginning balance $ 2,551 $ 1,199 $ 3,893 $ 2,792 $ 237 $ 279 $ 10,951 Recoveries 280 — 78 — — 1 359 (Recapture) provision (114 ) 504 (228 ) 190 431 17 800 Ending balance $ 2,717 $ 1,703 $ 3,743 $ 2,982 $ 668 $ 297 $ 12,110 ALLL by category: General reserve $ 2,582 $ 1,703 $ 3,723 $ 2,982 $ 668 $ 297 $ 11,955 Specific reserve 135 — 20 — — — 155 Loans: (1) Total loans $ 266,447 $ 173,681 $ 319,872 $ 153,914 $ 22,243 $ 9,301 $ 945,458 Loans collectively evaluated for impairment (2) 251,141 172,541 316,656 153,914 22,243 9,205 925,700 Loans individually evaluated for impairment (3) 15,306 1,140 3,216 — — 96 19,758 _____________ (1) Net of LIP. (2) Loans collectively evaluated for general reserves. (3) Loans individually evaluated for specific reserves. Past Due Loans. Loans are considered past due if a scheduled principal or interest payment is due and unpaid for 30 days or more. At September 30, 2018 , past due loans were 0.08% of total loans receivable, net of LIP. In comparison, past due loans were 0.01% of total loans receivable, net of LIP at December 31, 2017 . The following tables represent a summary of the aging of loans by type at the dates indicated: Loans Past Due as of September 30, 2018 30-59 Days 60-89 Days 90 Days and Total Past Current Total (1) (2) (In thousands) Real estate: One-to-four family residential: Owner occupied $ 496 $ — $ — $ 496 $ 184,202 $ 184,698 Non-owner occupied — — — — 143,226 143,226 Multifamily — — — — 176,521 176,521 Commercial real estate 325 — — 325 359,936 360,261 Construction/land — — — — 103,009 103,009 Total real estate 821 — — 821 966,894 967,715 Business — — — — 29,655 29,655 Consumer — — — — 12,419 12,419 Total loans $ 821 $ — $ — $ 821 $ 1,008,968 $ 1,009,789 ________________ (1) There were no loans 90 days and greater past due and still accruing interest at September 30, 2018 . (2) Net of LIP. Loans Past Due as of December 31, 2017 30-59 Days 60-89 Days 90 Days and Total Past Current Total (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 loans $ 101 $ — $ — $ 101 $ 1,002,593 $ 1,002,694 _________________ (1) There were no loans 90 days and greater past due and still accruing interest at December 31, 2017 . (2) Net of LIP. Nonaccrual Loans. The following table is a summary of nonaccrual loans by loan type at the dates indicated: September 30, 2018 December 31, 2017 (In thousands) One-to-four family residential $ 113 $ 128 Commercial real estate 325 — Consumer 46 51 Total nonaccrual loans $ 484 $ 179 During the three and nine months ended September 30, 2018 , interest income that would have been recognized had these nonaccrual loans been performing in accordance with their original terms was $4,000 and $10,000 , respectively. For the three and nine months ended September 30, 2017 , foregone interest on nonaccrual loans was $3,000 and $21,000 , respectively. The following tables summarize the loan portfolio by type and payment status at the dates indicated: September 30, 2018 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (1) (In thousands) Performing (2) $ 327,811 $ 176,521 $ 359,936 $ 103,009 $ 29,655 $ 12,373 $ 1,009,305 Nonperforming (3) 113 — 325 — — 46 484 Total loans $ 327,924 $ 176,521 $ 360,261 $ 103,009 $ 29,655 $ 12,419 $ 1,009,789 _____________ (1) Net of LIP. (2) There were $184.6 million of owner-occupied one-to-four family residential loans and $143.2 million of non-owner occupied one-to-four family residential loans classified as performing. (3) The $113,000 of one-to-four family residential loans classified as nonperforming are all owner-occupied. December 31, 2017 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (1) (In thousands) Performing (2) $ 278,527 $ 184,902 $ 361,299 $ 145,618 $ 23,087 $ 9,082 $ 1,002,515 Nonperforming (3) 128 — — — — 51 179 Total loans $ 278,655 $ 184,902 $ 361,299 $ 145,618 $ 23,087 $ 9,133 $ 1,002,694 _____________ (1) Net of LIP. (2) 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. (3) The $128,000 of one-to-four family residential loans classified as nonperforming are all owner-occupied. Impaired Loans. A loan is considered impaired when we have determined that we may be unable to collect payments of principal or interest when due under the terms of the original loan document. There were no funds committed to be advanced in connection with impaired loans at either September 30, 2018 , or December 31, 2017 . The following tables present a summary of loans individually evaluated for impairment by loan type at the dates indicated: September 30, 2018 Recorded Investment (1) Unpaid Principal Balance (2) Related Allowance (In thousands) Loans with no related allowance: One-to-four family residential: Owner occupied $ 1,045 $ 1,213 $ — Non-owner occupied 4,857 4,857 — Multifamily 1,116 1,116 — Commercial real estate 2,556 2,556 — Consumer 89 141 — Total 9,663 9,883 — Loans with an allowance: One-to-four family residential: Owner occupied 516 562 23 Non-owner occupied 3,153 3,174 63 Commercial real estate 370 370 7 Total 4,039 4,106 93 Total impaired loans: One-to-four family residential: Owner occupied 1,561 1,775 23 Non-owner occupied 8,010 8,031 63 Multifamily 1,116 1,116 — Commercial real estate 2,926 2,926 7 Consumer 89 141 — Total $ 13,702 $ 13,989 $ 93 _________________ (1) Represents the loan balance less charge-offs. (2) Contractual loan principal balance. 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. The following tables present the average recorded investment in loans individually evaluated for impairment and the interest income recognized for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 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 $ 1,049 $ 18 $ 1,182 $ 55 Non-owner occupied 5,112 83 6,385 298 Multifamily 1,119 19 1,125 55 Commercial real estate 2,402 42 1,732 133 Consumer 90 2 92 6 Total 9,772 164 10,516 547 Loans with an allowance: One-to-four family residential: Owner occupied 517 9 519 26 Non-owner occupied 3,160 40 3,232 122 Commercial real estate 373 5 1,247 22 Total 4,050 54 4,998 170 Total impaired loans: One-to-four family residential: Owner occupied 1,566 27 1,701 81 Non-owner occupied 8,272 123 9,617 420 Multifamily 1,119 19 1,125 55 Commercial real estate 2,775 47 2,979 155 Consumer 90 2 92 6 Total $ 13,822 $ 218 $ 15,514 $ 717 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 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 $ 1,658 $ 22 $ 1,886 $ 69 Non-owner occupied 11,395 158 13,445 485 Multifamily 1,143 19 1,251 56 Commercial real estate 2,693 49 2,818 135 Consumer 97 2 99 6 Total 16,986 250 19,499 751 Loans with an allowance: One-to-four family residential: Owner occupied 1,099 10 1,495 22 Non-owner occupied 3,343 47 3,773 128 Commercial real estate 745 10 749 31 Construction/land — — 124 — Total 5,187 67 6,141 181 Total impaired loans: One-to-four family residential: Owner occupied 2,757 32 3,381 91 Non-owner occupied 14,738 205 17,218 613 Multifamily 1,143 19 1,251 56 Commercial real estate 3,438 59 3,567 166 Construction/land — — 124 — Consumer 97 2 99 6 Total $ 22,173 $ 317 $ 25,640 $ 932 Troubled Debt Restructurings. Certain loan modifications are accounted for as troubled debt restructured loans (“TDRs”). At September 30, 2018 , the TDR portfolio totaled $13.2 million . At December 31, 2017 , the TDR portfolio totaled $17.8 million . At both dates, all TDRs were performing according to their modified repayment terms. At September 30, 2018 , the Company had no commitments to extend additional credit to borrowers whose loan terms have been modified in TDRs. All TDRs are also classified as impaired loans and are included in the loans individually evaluated for impairment as part of the calculation of the ALLL. No loans accounted for as TDRs were charged-off to the ALLL for the three months ended September 30, 2018 and 2017 . The following tables present TDR modifications for the periods indicated and their recorded investment prior to and after the modification: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 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) One-to-four family residential Advancement of maturity date 1 563 563 1 563 563 Commercial Advancement of maturity date — $ — $ — 1 $ 1,124 $ 1,124 Total 1 $ 563 $ 563 2 $ 1,687 $ 1,687 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 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) One-to-four family residential Principal and interest with interest rate concession and advancement of maturity date 1 $ 524 $ 524 8 $ 2,492 $ 2,492 Total 1 $ 524 $ 524 8 $ 2,492 $ 2,492 TDRs that default after they have been modified are typically evaluated individually on a collateral basis. Any additional impairment is charged to the ALLL. For the three and nine months ended September 30, 2018 , and September 30, 2017 , no loans that had been modified in the previous 12 months defaulted. Credit Quality Indicators . The Company utilizes a nine-category 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 include assets, such as cash secured loans with funds on deposit with the Bank, where there is virtually no credit risk. 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. There were no loans classified as doubtful or loss at September 30, 2018 , and December 31, 2017 . The following tables represent a summary of loans by type and risk category at the dates indicated: September 30, 2018 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (1) (In thousands) Risk Rating: Pass $ 325,509 $ 176,521 $ 359,021 $ 103,009 $ 29,655 $ 12,373 $ 1,006,088 Special mention 1,762 — 370 — — — 2,132 Substandard 653 — 870 — — 46 1,569 Total loans $ 327,924 $ 176,521 $ 360,261 $ 103,009 $ 29,655 $ 12,419 $ 1,009,789 _____________ (1) Net of LIP. 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 loans $ 278,655 $ 184,902 $ 361,299 $ 145,618 $ 23,087 $ 9,133 $ 1,002,694 _____________ (1) Net of LIP. |
Other Real Estate Owned
Other Real Estate Owned | 9 Months Ended |
Sep. 30, 2018 | |
Other Real Estate [Abstract] | |
Other Real Estate Owned | Other Real Estate Owned OREO includes properties acquired by the Company through foreclosure and deed in lieu of foreclosure. The following table is a summary of OREO activity during the periods shown: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (In thousands) Balance at beginning of period $ 483 $ 1,825 $ 483 $ 2,331 Gross proceeds from sale of OREO — — — (461 ) Gain on sale of OREO — — — 5 Market value adjustments — — — (50 ) Balance at end of period $ 483 $ 1,825 $ 483 $ 1,825 For the three and nine months ended September 30, 2018, there were no OREO properties sold and no market value adjustments taken on the remaining properties in OREO. During the nine months ended September 30, 2017, a $50,000 market value adjustment was recognized prior to the sale of the one OREO property sold during that period. OREO at September 30, 2018 , consisted of $483,000 in commercial real estate properties. At September 30, 2018, foreclosure proceedings were underway on a $325,000 nonaccrual commercial loan and there were no loans secured by residential real estate properties for which formal foreclosure proceedings were in process. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The fair value of financial instruments presented in this note, with the exception of loans receivable, are based on the same methodology as presented in Note 7 of the Notes to Consolidated Financial Statements contained in the Company’s 2017 10-K. The Company has adopted ASU 2016-01, and therefore is measuring the fair value of loans receivable under the exit price notion rather than the previous method of entry price notion. Under the entry price notion, the fair value estimate of loans receivable was based on discounted cash flow. At September 30, 2018, the exit price notion used to estimate the fair value of loans receivable was based on similar techniques, with the addition of current origination spreads, liquidity premiums, or credit adjustments. The fair value of nonperforming loans is based on the underlying value of the collateral for periods prior to and after adoption of ASU 2016-01. 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 measured at fair value on a recurring basis (there were no transfers between Level 1, Level 2 and Level 3 recurring measurements) at September 30, 2018 and December 31, 2017 : Fair Value Measurements at September 30, 2018 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) Investments available-for-sale: Mortgage-backed investments: Fannie Mae $ 25,334 $ — $ 25,334 $ — Freddie Mac 5,212 — 5,212 — Ginnie Mae 21,979 — 21,979 — Other 6,015 — 6,015 — Municipal bonds 10,466 — 10,466 — U.S. Government agencies 48,718 — 48,718 — Corporate bonds 23,144 — 23,144 — Total available-for-sale 140,868 — 140,868 — Derivative fair value asset 2,454 — 2,454 — Total $ 143,322 $ — $ 143,322 $ — Fair Value Measurements at 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) Investments available-for-sale: 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 132,242 — 132,242 — Derivative fair value asset 1,526 — 1,526 — Total $ 133,768 $ — $ 133,768 $ — 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 measured at fair value on a nonrecurring basis at September 30, 2018 and December 31, 2017 : Fair Value Measurements at September 30, 2018 Fair Value Quoted Prices in Significant Significant (In thousands) Impaired loans (included in loans (1) $ 13,609 $ — $ — $ 13,609 OREO 483 — — 483 Total $ 14,092 $ — $ — $ 14,092 _____________ (1) Total fair value of impaired loans is net of $93,000 of specific reserves on performing TDRs. Fair Value Measurements at December 31, 2017 Fair Value Quoted Prices in Significant Significant (In thousands) Impaired loans (included in loans (1) $ 17,849 $ — $ — $ 17,849 OREO 483 — — 483 Total $ 18,332 $ — $ — $ 18,332 _____________ (1) Total fair value of impaired loans is net of $135,000 of specific reserves on performing TDRs. The fair value of impaired loans reflects the exit price and is calculated using the collateral value method or on a discounted cash flow basis. Inputs used in the collateral value method include appraised values, less estimated costs to sell. Some of these inputs may not be observable in the marketplace. Appraised values may be discounted based on management’s knowledge of the marketplace, subsequent changes in market conditions, or management’s knowledge of the borrower. OREO properties are measured at the lower of their carrying amount or fair value, less estimated 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 estimated 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 September 30, 2018 and December 31, 2017 : September 30, 2018 Fair Value Valuation Technique Unobservable Input(s) Range (Weighted Average) (Dollars in thousands) Impaired Loans $ 13,609 Market approach Appraised value discounted by market or borrower conditions 0.0% OREO $ 483 Market approach Appraised value less selling costs 0.0% December 31, 2017 Fair Value Valuation Technique Unobservable Input(s) Range (Weighted Average) (Dollars in thousands) Impaired Loans $ 17,849 Market approach Appraised value discounted by market or borrower conditions 0.0% OREO $ 483 Market approach Appraised value less selling costs 0.0% The carrying amounts and estimated fair values of financial instruments were as follows at the dates indicated: September 30, 2018 Estimated Fair Value Measurements Using: Carrying Value Fair Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash on hand and in banks $ 7,167 $ 7,167 $ 7,167 $ — $ — Interest-earning deposits with banks 19,094 19,094 19,094 — — Investments available-for-sale 140,868 140,868 — 140,868 — Loans receivable, net 995,557 977,320 — — 977,320 FHLB stock 7,410 7,410 — 7,410 — Accrued interest receivable 4,664 4,664 — 4,664 — Derivative fair value asset 2,454 2,454 — 2,454 — Financial Liabilities: Deposits 440,265 440,265 440,265 — — Certificates of deposit, retail 373,931 370,948 — 370,948 — Certificates of deposit, brokered 102,083 101,812 — 101,812 — Advances from the FHLB 149,000 145,108 — 145,108 — Accrued interest payable 541 541 — 541 — December 31, 2017 Estimated Fair Value Measurements Using: Carrying Value 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 with banks 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 — Fair value estimates are measured at the exit price notion. The methods and calculation 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-earning deposits with banks, FHLB stock, accrued interest receivable and accrued interest payable. FHLB stock is not publicly-traded, however it may be redeemed on a dollar-for-dollar basis, for any amount the Bank is not required to hold, subject to the FHLB’s discretion. The fair value is therefore equal to the book value. • Investments available-for-sale: The fair value of all investments, excluding FHLB stock, was based upon quoted market prices for similar investments in active markets, identical or similar investments in markets that are not active and model-derived valuations whose inputs are observable. • Loans receivable: Prior to the adoption of ASU 2016-01, loan fair value estimates were primarily calculated using discounted cash flows. With the adoption of ASU 2016-01, the fair value of loans receivable at September 30, 2018 were calculated from inputs reflective of current market pricing for similar instruments, to include current origination spreads, liquidity premiums, and credit adjustments. 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 checking and money market accounts, is equal to the amount payable on demand. The fair value of certificates of deposit is based on the discounted value of contractual cash flows using current interest rates for certificates of deposit with similar remaining maturities. The fair value of FHLB advances is estimated based on discounting the future cash flows using current interest rates for debt with similar remaining maturities. • Off balance sheet commitments: No fair value adjustment is necessary for commitments made to extend credit, which represents commitments for loan originations or for outstanding commitments to purchase loans. These commitments are at variable rates, are for loans with terms of less than one year and have interest rates which approximate prevailing market rates, or are set at the time of loan closing. Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business. The fair value has not been estimated for assets and liabilities that are not considered financial instruments. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [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 interest expense on the Consolidated Income Statement. Quarterly, the effectiveness evaluation is based upon the fluctuation of the interest the Company pays to the FHLB for the hedge instrument as compared to the three-month LIBOR interest received from the counterparty. At September 30, 2018 , the fair value of the cash flow hedge of $2.5 million was reported with other assets. The tax effected amount of $1.9 million was included in Accumulated Other Comprehensive Income. There were no amounts recorded in the Consolidated Income Statements for the quarters ended September 30, 2018 or 2017 , related to ineffectiveness. Fair value for this derivative instrument, which generally changes as a result of changes in the level of market interest rates, is estimated based on dealer quotes and secondary market sources. The following table presents the fair value of this derivative instrument as of September 30, 2018 and December 31, 2017 : Balance Sheet Location Fair Value at September 30, 2018 Fair Value at December 31, 2017 (In thousands) Interest rate swap on FHLB debt designated as cash flow hedge Other Assets $ 2,454 $ 1,526 Total derivatives $ 2,454 $ 1,526 The following table presents the effect of this derivative instrument on the Consolidated Statements of Comprehensive Income for the quarters ended September 30, 2018 , and December 31, 2017 : Balance Sheet Location Amount Recognized in OCI at September 30, 2018 Amount Recognized in OCI at December 31, 2017 (In thousands) Interest rate swap on FHLB debt Other assets $ 70 $ 125 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | 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 until 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 award. 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 unless the award agreement provides otherwise. 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. At September 30, 2018, there were no unvested shares of restricted stock awards under the 2008 Plan. In addition, 43,000 stock options granted under the 2008 Plan are expected to vest and be available for exercise, and an additional 272,000 stock options from the 2008 Plan were available for exercise at September 30, 2018, subject to the 2008 Plan provisions. At September 30, 2018 , there were 1,290,670 total shares available for grant under the 2016 Plan, including 345,335 shares available to be granted as restricted stock. For the three months ended September 30, 2018 and 2017 , total compensation expense for both the 2008 and 2016 Plans was $130,000 and $104,000 , respectively, and the related income tax benefit was $27,000 and $36,000 , respectively. For the nine months ended September 30, 2018 and 2017, total compensation expense for both the 2008 and 2016 Plans was $539,000 and $505,000 , respectively, and the related income tax benefit was $113,000 and $177,000 , 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 10 years. Any unexercised stock options expires 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 and the Bank. 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. The fair value of each option award is estimated on the grant date using a Black-Scholes model that uses the following assumptions. 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 “Share-Based Payments” method permitted by the SEC 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. Under certain conditions, 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. A summary of the Company’s stock option plan awards and activity for the three and nine months ended September 30, 2018 , follows: For the Three Months Ended September 30, 2018 Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term in Years Aggregate Intrinsic Value Outstanding at July 1, 2018 315,000 $ 10.34 $ 2,891,350 Exercised — Outstanding at September 30, 2018 315,000 10.34 5.24 1,962,100 Vested and expected to vest assuming a 3% forfeiture 313,710 10.33 5.23 1,956,260 Exercisable at September 30, 2018 272,000 10.07 5.02 1,767,430 For the Nine Months Ended September 30, 2018 Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term in Years Aggregate Intrinsic Value Outstanding at January 1, 2018 452,940 $ 10.21 $ 2,402,096 Exercised (137,940 ) 9.90 1,112,026 Outstanding at September 30, 2018 315,000 10.34 5.24 1,962,100 Vested and expected to vest assuming a 3% forfeiture rate over the vesting term 313,710 10.33 5.23 1,956,260 Exercisable at September 30, 2018 272,000 10.07 5.02 1,767,430 As of September 30, 2018 , there was $144,000 of total unrecognized compensation cost related to nonvested stock options granted under the 2008 Plan. The cost is expected to be recognized over the remaining weighted-average vesting period of 1.55 years. There were no stock options granted during the nine months ended September 30, 2018 . Restricted Stock Awards The 2008 Plan authorized the grant of restricted stock awards 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 stock price on the grant date. Shares awarded under this plan 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. The final vesting of shares previously granted under the 2008 Plan occurred during the quarter ended September 30, 2018. The 2016 Plan authorizes the grant of restricted stock awards subject to vesting periods or terms as defined by the award committee and specified in the award agreement. Restricted stock awards granted in lieu of cash payments for directors’ fees are subject to immediate vesting on the grant date unless the award agreement provides otherwise. A summary of changes in nonvested restricted stock awards for the three and nine months ended September 30, 2018 , follows: For the Three Months Ended September 30, 2018 Shares Weighted-Average Nonvested at July 1, 2018 25,987 $ 14.93 Granted — — Vested (5,000 ) 10.88 Nonvested at September 30, 2018 20,987 15.90 Expected to vest assuming a 3% forfeiture rate over the vesting term 20,357 15.90 For the Nine Months Ended September 30, 2018 Shares Weighted-Average Nonvested at January 1, 2018 5,000 10.88 Granted 30,179 17.14 Vested (14,192 ) 16.77 Nonvested at September 30, 2018 20,987 15.90 Expected to vest assuming a 3% forfeiture rate over the vesting term 20,357 15.90 As of September 30, 2018 , there was $138,000 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 five months . |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Per the provisions of FASB ASC 260, Earnings Per Share , nonvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are participating securities and are included in the computation of EPS pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. ESOP shares are considered outstanding for basic and diluted earnings per share when the shares are committed to be released. Certain of the Company’s nonvested restricted stock awards qualify as participating securities. Net income is allocated between the common stock and participating securities pursuant to the two-class method, based on their rights to receive dividends, participate in earnings, or absorb losses. Basic earnings per common shares 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. The following table presents a reconciliation of the components used to compute basic and diluted earnings per share for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (Dollars in thousands, except share data) Net income $ 2,792 $ 1,861 $ 12,736 $ 6,073 Less: Earnings allocated to participating (5 ) (2 ) $ (24 ) $ (6 ) Earnings allocated to common shareholders $ 2,787 $ 1,859 $ 12,712 $ 6,067 Basic weighted average common shares 10,356,994 10,287,663 10,280,287 10,323,459 Dilutive stock options 101,350 126,044 117,645 142,755 Dilutive restricted stock grants 10,458 13,331 7,383 13,847 Diluted weighted average common shares outstanding 10,468,802 10,427,038 10,405,315 10,480,061 Basic earnings per share $ 0.27 $ 0.18 $ 1.24 $ 0.59 Diluted earnings per share $ 0.27 $ 0.18 $ 1.22 $ 0.58 Potential dilutive shares are excluded from the computation of earnings per share if their effect is anti-dilutive. For the three and nine months ended September 30, 2018 , and September 30, 2017, there were no options to purchase shares of common stock that were omitted from the computation of diluted earnings per share because their effect would be anti-dilutive. |
Branch Acquisition
Branch Acquisition | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Branch Acquisition | Branch Acquisition On August 25, 2017, First Financial Northwest Bank completed the acquisition of four branches from Opus Bank, a California state-chartered commercial bank. The Branch Acquisition 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, 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. 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. The application of the acquisition method of accounting resulted in recognition of a core deposit intangible asset (“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 is 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. The operating results of the Company include the operating results produced by the acquired liabilities and additional branch locations. For illustrative purposes, the following table provides certain unaudited pro forma information for the three and nine months ended September 30, 2017, with the information calculated as if the four Opus branches had been acquired as of January 1, 2017, the beginning of the year prior to the date of acquisition. The pro forma information is an estimate of the additional interest expense, noninterest income and noninterest expense that might have been incurred during this period. The unaudited pro forma statement does not include interest income earned on the investment of the acquired funds into either loans receivable or available-for-sale investment securities. Actual results would have differed from the unaudited pro forma information presented. Unaudited Pro Forma Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 (In thousands except share data) Total revenues (net interest income plus noninterest income) $ 9,954 $ 28,845 Net income 1,514 4,976 Earnings per share - basic 0.15 0.48 Earnings per share - diluted 0.14 0.47 The Company recognized no acquisition related expenses for the three months ended September 30, 2018, and $6,000 for the nine months ended September 30, 2018. For the three and nine months ended September 30, 2017, the Company recognized $222,000 and $542,000 , respectively. The following table includes noninterest expenses for the four acquired branches for the three and nine months ended September 30, 2018. These expenses are included in the Consolidated Income Statements in Item 1 of this report: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (In thousands) Salaries and employee benefits $ 251 $ 792 Occupancy and equipment 91 309 Data processing 1 1 Marketing 7 23 Other general and administrative 15 58 Total noninterest expense $ 365 $ 1,183 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition In accordance with Topic 606, revenues are recognized when goods or services are transferred to the customer in exchange for the consideration the Company expects to be entitled to receive. To determine the appropriate recognition of revenue for transactions within the scope of Topic 606, the Company performs the following five steps: (i) identify the contract(s) with the customer; (ii) identify the separate performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the separate performance obligations in the contract; and (v) recognize revenue when the entity satisfies a performance obligation. A contract may not exist if there are doubts as to collectability of the amounts the Company is entitled to in exchange for the goods or services transferred. If a contract is determined to be within the scope of Topic 606, the Company recognizes revenue as it satisfies a performance obligation. The largest portion of the Company’s revenue is from net interest income which is not within the scope of Topic 606. Disaggregation of Revenue The following table includes the Company’s noninterest income disaggregated by type of service for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (In thousands) Gain (loss) on sale of investments (1) $ 1 $ 47 $ (20 ) $ 103 BOLI change in cash surrender value (1) 245 173 718 490 Wealth management revenue 145 252 400 699 Deposit related fees 63 56 197 155 Debit card and ATM fees 104 57 306 122 Loan related fees 163 61 353 215 Loan interest swap fees 110 83 180 205 Other 10 2 16 8 Total noninterest income $ 841 $ 731 $ 2,150 $ 1,997 _______________ (1) Not within scope of Topic 606 For the three and nine months ended September 30, 2018, substantially all of the Company’s revenues under the scope of Topic 606 are for performance obligations satisfied at a specified date. Revenues recognized within scope of Topic 606 Wealth management revenue: Our wealth management revenue consists of commissions received on the investment portfolio managed by Bank personnel but held by a third party. Commissions are earned on brokerage services and advisory services based on contract terms at the onset of a new customer’s investment agreement or quarterly for ongoing services. Commissions are paid by the third party to the Bank when the performance obligation has been completed by both entities. Deposit related fees: Fees are earned on our deposit accounts for various products or services performed for our customers. Fees include business account fees, non-sufficient fund fees, stop payment fees, wire services, safe deposit box, and others. These fees are recognized on a daily or monthly basis, depending on the type of service. Debit card and ATM fees: Fees are earned when a debit card issued by the Bank is used or when other bank’s customers use our ATM services. Revenue is recognized at the time the fees are collected from the customer’s account or remitted by the VISA interchange network. Loan related fees: Noninterest fee income is earned on our loans for servicing or annual fees on certain loan types. Loan interest swap fees: For loans participating in an interest rate swap agreement, fees are earned at the onset of the agreement and are not contingent on any future performance or term length of the loan itself. The performance obligation is satisfied by entering into the contract and receipt of the fees from the counterparty. Other: Fees earned on other services, such as merchant services or occasional non-recurring type services, are recognized at the time of the event or the applicable billing cycle. Contract Balances At September 30, 2018, the Company had no contract liabilities where the Company had an obligation to transfer goods or services for which the Company had already received consideration. In addition, the Company had no material performance obligations as of this date. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 25, 2018, the Company announced that the Company’s Board of Directors declared a quarterly cash dividend of $ 0.08 per share on the Company’s outstanding common stock. The cash dividend will be payable on December 14, 2018, to shareholders of record as of the close of business on November 30, 2018. Also on October 25, 2018, the Board of Directors authorized the repurchase of approximately 5% of the Company’s common stock, or 550,000 shares. The plan allows for the repurchase from November 5, 2018 through May 3, 2019, under a pre-arranged stock trading plan in accordance with guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. Repurchases under the Company’s Rule 10b5-1 plan will be administered through an independent broker subject to SEC requirements as well as certain price, market volume, and timing constraints as specified in the plan. As a result, there can be no assurance as to the exact number of shares, if any, that will be repurchased under the plan. |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Recent Accounting Pronouncements Adopted in 2018 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. These standards were effective for interim and annual periods beginning after December 15, 2017. The Company has analyzed its sources of noninterest income to determine when the satisfaction of the performance obligation occurs and the appropriate recognition of revenue. The adoption of these ASUs did not have a material impact on the Company’s consolidated financial statements. For more discussion on this topic, see Note 12 - Revenue Recognition in this report. 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. In addition, the amendments in this ASU require an entity to disclose the fair value of its financial instruments using the exit price notion. Exit price is 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 amendments in this ASU were effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company has updated the fair value disclosure on Note 7 in this report to reflect adoption of this standard, to include using the exit price notion in the fair value disclosure of financial instruments. The adoption of ASU 2016-01 did not have a material impact on the Company’s consolidated financial statements. 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 addresses 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 were 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 were impacted by adoption of this ASU and therefore adoption of ASU 2016-15 did not 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 was effective for annual periods beginning after December 15, 2017. Adoption of ASU 2017-01 did not 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 was effective for reporting periods beginning after December 15, 2017. The Company has not had any modifications on share-based payment awards and therefore the adoption of ASU No. 2017-09 did not 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 Cuts and Jobs Act (“Tax Act”). This ASU is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company 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. In March 2018, FASB issued ASU No. 2018-05, Income Taxes (Topic 740). This ASU was issued to provide guidance on the income tax accounting implications of the Tax Act and allows for entities to report provisional amounts for specific income tax effects of the Act for which the accounting under Topic 740 was not yet complete but a reasonable estimate could be determined. A measurement period of one-year is allowed to complete the accounting effects under Topic 740 and revise any previous estimates reported. Any provisional amounts or subsequent adjustments included in an entity’s financial statements during the measurement period should be included in income from continuing operations as an adjustment to tax expense in the reporting period the amounts are determined. The Company adopted this ASU with the provisional adjustments as reported in the Consolidated Financial Statements included in the 2017 Form 10-K. As of September 30, 2018, the Company did not incur any adjustments to the provisional recognition. In June 2018, FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718). This ASU was issued to expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Previously, these awards were recorded at the fair value of consideration received or the fair value of the equity instruments issued and was measured as the earlier of the commitment date or date performance was completed. The amendments in this ASU require the awards to be measured at the grant-date fair value of the equity instrument. This ASU is effective for fiscal years beginning after December 15, 2018, and early adoption is permitted once the entity has adopted Topic 606. The Company has adopted this ASU with the nonemployee share-based payment awards granted in June 2018, with no material impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements 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. In July 2018, FASB issued ASU No. 2018-11, Leases (Topic 842) to address the comparative reporting requirements when this ASU is adopted. Under this ASU, 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. According to ASU 2018-11, the Company may recognize the cumulative-effect adjustment to the opening balance of retained earnings at the time ASU 2016-02 is adopted. 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. The Company intends to adopt ASU 2016-13 in the first quarter of 2020, and as a result, we expect our allowance for loan losses to increase. Until our evaluation is complete, however, the magnitude of the increase will not be known. 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 acquisition on August 25, 2017 of four branches from Opus Bank, a California state-chartered commercial bank (the “Branch Acquisition”) and expects to early adopt this ASU for the annual goodwill impairment test 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 standard will take effect for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating its available-for-sale securities that fit the criteria of this ASU but has not yet quantified the impact. The adoption of ASU No. 2017-08 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 non-financial 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. The Company intends to adopt this ASU during 2018, however its current cash flow hedge will not likely be impacted by the adoption of ASU 2017-12, and consequently, is not expected to have a material impact on the Company’s consolidated financial statements. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments [Abstract] | |
Available-for-sale Securities | Investments available-for-sale are summarized as follows at the dates indicated: September 30, 2018 Amortized Gross Gross Fair Value (In thousands) Mortgage-backed investments: Fannie Mae $ 26,488 $ 11 $ (1,165 ) $ 25,334 Freddie Mac 5,372 1 (161 ) 5,212 Ginnie Mae 23,500 — (1,521 ) 21,979 Other 6,028 — (13 ) 6,015 Municipal bonds 10,640 5 (179 ) 10,466 U.S. Government agencies 49,564 79 (925 ) 48,718 Corporate bonds 23,490 245 (591 ) 23,144 Total $ 145,082 $ 341 $ (4,555 ) $ 140,868 December 31, 2017 Amortized Gross Gross 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 Total $ 133,475 $ 999 $ (2,232 ) $ 132,242 |
Schedule of Available for sale Securities in Continuous Unrealized Loss positions | The tables below summarize the aggregate fair value and gross unrealized loss by length of time those investment securities have been continuously in an unrealized loss position at the dates indicated: September 30, 2018 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss (In thousands) Mortgage-backed investments: Fannie Mae $ 11,129 $ (238 ) $ 13,736 $ (927 ) $ 24,865 $ (1,165 ) Freddie Mac 5,102 (161 ) — — 5,102 (161 ) Ginnie Mae 6,951 (207 ) 15,028 (1,314 ) 21,979 (1,521 ) Other 6,015 (13 ) — — 6,015 (13 ) Municipal bonds 6,378 (134 ) 963 (45 ) 7,341 (179 ) U.S. Government agencies 32,551 (708 ) 6,451 (217 ) 39,002 (925 ) Corporate bonds 993 (7 ) 6,916 (584 ) 7,909 (591 ) Total $ 69,119 $ (1,468 ) $ 43,094 $ (3,087 ) $ 112,213 $ (4,555 ) December 31, 2017 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross 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 ) Total $ 61,015 $ (665 ) $ 29,867 $ (1,567 ) $ 90,882 $ (2,232 ) |
Schedule of Available for sale Securities, Debt Maturities | September 30, 2018 Amortized Cost Fair Value (In thousands) Due within one year $ 253 $ 251 Due after one year through five years 7,655 7,725 Due after five years through ten years 19,673 19,196 Due after ten years 56,113 55,156 83,694 82,328 Mortgage-backed investments 61,388 58,540 Total $ 145,082 $ 140,868 |
Loans Receivable_ Schedule of A
Loans Receivable: Schedule of Accounts, Notes, Loans and Financing Receivable (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans receivable are summarized as follows at the dates indicated: September 30, 2018 December 31, 2017 (In thousands) One-to-four family residential: Permanent owner occupied $ 184,698 $ 148,304 Permanent non-owner occupied 143,226 130,351 327,924 278,655 Multifamily 176,521 184,902 Commercial real estate 360,485 361,842 Construction/land: One-to-four family residential 84,912 87,404 Multifamily 80,607 108,439 Commercial 21,385 5,325 Land 7,113 36,405 194,017 237,573 Business 29,655 23,087 Consumer 12,419 9,133 Total loans 1,101,021 1,095,192 Less: Loans in process ("LIP") 91,232 92,498 Deferred loan fees, net 1,116 1,150 Allowance for loan and lease losses ("ALLL") 13,116 12,882 Loans receivable, net $ 995,557 $ 988,662 At September 30, 2018 , loans totaling $475.9 million were pledged to secure borrowings from the FHLB of Des Moines compared to $422.6 million at December 31, 2017 . |
Schedule of Allowance for Loan and Lease Losses, Roll Forward | The following tables summarize changes in the ALLL and loan portfolio by loan type and impairment method at the dates and for the periods shown: At or For the Three Months Ended September 30, 2018 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (In thousands) ALLL: Beginning balance $ 3,265 $ 1,928 $ 4,494 $ 2,121 $ 674 $ 272 $ 12,754 Recoveries 2 — — 160 — — 162 Provision (recapture) 265 (189 ) (16 ) (84 ) 236 (12 ) 200 Ending balance $ 3,532 $ 1,739 $ 4,478 $ 2,197 $ 910 $ 260 $ 13,116 At or For the Nine Months Ended September 30, 2018 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (In thousands) ALLL: Beginning balance $ 2,837 $ 1,820 $ 4,418 $ 2,816 $ 694 $ 297 $ 12,882 Recoveries 4,248 — 14 172 — — 4,434 (Recapture) provision (3,553 ) (81 ) 46 (791 ) 216 (37 ) (4,200 ) Ending balance $ 3,532 $ 1,739 $ 4,478 $ 2,197 $ 910 $ 260 $ 13,116 ALLL by category: General reserve $ 3,446 $ 1,739 $ 4,471 $ 2,197 $ 910 $ 260 $ 13,023 Specific reserve 86 — 7 — — — 93 Loans: (1) Total loans $ 327,924 $ 176,521 $ 360,261 $ 103,009 $ 29,655 $ 12,419 $ 1,009,789 Loans collectively evaluated for impairment (2) 318,353 175,405 357,335 103,009 29,655 12,330 996,087 Loans individually evaluated for impairment (3) 9,571 1,116 2,926 — — 89 13,702 ____________ (1) Net of LIP. (2) Loans collectively evaluated for general reserves. (3) Loans individually evaluated for specific reserves. At or For the Three Months Ended September 30, 2017 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (In thousands) ALLL: Beginning balance $ 2,627 $ 1,231 $ 3,733 $ 2,942 $ 457 $ 295 $ 11,285 Recoveries 247 — 78 — — — 325 (Recapture) provision (157 ) 472 (68 ) 40 211 2 500 Ending balance $ 2,717 $ 1,703 $ 3,743 $ 2,982 $ 668 $ 297 $ 12,110 At or For the Nine Months Ended September 30, 2017 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (In thousands) ALLL: Beginning balance $ 2,551 $ 1,199 $ 3,893 $ 2,792 $ 237 $ 279 $ 10,951 Recoveries 280 — 78 — — 1 359 (Recapture) provision (114 ) 504 (228 ) 190 431 17 800 Ending balance $ 2,717 $ 1,703 $ 3,743 $ 2,982 $ 668 $ 297 $ 12,110 ALLL by category: General reserve $ 2,582 $ 1,703 $ 3,723 $ 2,982 $ 668 $ 297 $ 11,955 Specific reserve 135 — 20 — — — 155 Loans: (1) Total loans $ 266,447 $ 173,681 $ 319,872 $ 153,914 $ 22,243 $ 9,301 $ 945,458 Loans collectively evaluated for impairment (2) 251,141 172,541 316,656 153,914 22,243 9,205 925,700 Loans individually evaluated for impairment (3) 15,306 1,140 3,216 — — 96 19,758 _____________ (1) Net of LIP. (2) Loans collectively evaluated for general reserves. (3) Loans individually evaluated for specific reserves. |
Financing Receivables, Aging of loans | The following tables represent a summary of the aging of loans by type at the dates indicated: Loans Past Due as of September 30, 2018 30-59 Days 60-89 Days 90 Days and Total Past Current Total (1) (2) (In thousands) Real estate: One-to-four family residential: Owner occupied $ 496 $ — $ — $ 496 $ 184,202 $ 184,698 Non-owner occupied — — — — 143,226 143,226 Multifamily — — — — 176,521 176,521 Commercial real estate 325 — — 325 359,936 360,261 Construction/land — — — — 103,009 103,009 Total real estate 821 — — 821 966,894 967,715 Business — — — — 29,655 29,655 Consumer — — — — 12,419 12,419 Total loans $ 821 $ — $ — $ 821 $ 1,008,968 $ 1,009,789 ________________ (1) There were no loans 90 days and greater past due and still accruing interest at September 30, 2018 . (2) Net of LIP. Loans Past Due as of December 31, 2017 30-59 Days 60-89 Days 90 Days and Total Past Current Total (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 loans $ 101 $ — $ — $ 101 $ 1,002,593 $ 1,002,694 _________________ (1) There were no loans 90 days and greater past due and still accruing interest at December 31, 2017 . (2) Net of LIP. |
Schedule of non-accrual loans | The following table is a summary of nonaccrual loans by loan type at the dates indicated: September 30, 2018 December 31, 2017 (In thousands) One-to-four family residential $ 113 $ 128 Commercial real estate 325 — Consumer 46 51 Total nonaccrual loans $ 484 $ 179 |
Financing Receivables, Summary of loans by type and payment activity | The following tables summarize the loan portfolio by type and payment status at the dates indicated: September 30, 2018 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (1) (In thousands) Performing (2) $ 327,811 $ 176,521 $ 359,936 $ 103,009 $ 29,655 $ 12,373 $ 1,009,305 Nonperforming (3) 113 — 325 — — 46 484 Total loans $ 327,924 $ 176,521 $ 360,261 $ 103,009 $ 29,655 $ 12,419 $ 1,009,789 _____________ (1) Net of LIP. (2) There were $184.6 million of owner-occupied one-to-four family residential loans and $143.2 million of non-owner occupied one-to-four family residential loans classified as performing. (3) The $113,000 of one-to-four family residential loans classified as nonperforming are all owner-occupied. December 31, 2017 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (1) (In thousands) Performing (2) $ 278,527 $ 184,902 $ 361,299 $ 145,618 $ 23,087 $ 9,082 $ 1,002,515 Nonperforming (3) 128 — — — — 51 179 Total loans $ 278,655 $ 184,902 $ 361,299 $ 145,618 $ 23,087 $ 9,133 $ 1,002,694 _____________ (1) Net of LIP. (2) 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. (3) The $128,000 of one-to-four family residential loans classified as nonperforming are all owner-occupied. |
Schedule Of Impaired Financing Receivables | The following tables present a summary of loans individually evaluated for impairment by loan type at the dates indicated: September 30, 2018 Recorded Investment (1) Unpaid Principal Balance (2) Related Allowance (In thousands) Loans with no related allowance: One-to-four family residential: Owner occupied $ 1,045 $ 1,213 $ — Non-owner occupied 4,857 4,857 — Multifamily 1,116 1,116 — Commercial real estate 2,556 2,556 — Consumer 89 141 — Total 9,663 9,883 — Loans with an allowance: One-to-four family residential: Owner occupied 516 562 23 Non-owner occupied 3,153 3,174 63 Commercial real estate 370 370 7 Total 4,039 4,106 93 Total impaired loans: One-to-four family residential: Owner occupied 1,561 1,775 23 Non-owner occupied 8,010 8,031 63 Multifamily 1,116 1,116 — Commercial real estate 2,926 2,926 7 Consumer 89 141 — Total $ 13,702 $ 13,989 $ 93 _________________ (1) Represents the loan balance less charge-offs. (2) Contractual loan principal balance. 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. |
Schedule of Impaired Financing Receivables, Average Recorded Investment and Interest Income | The following tables present the average recorded investment in loans individually evaluated for impairment and the interest income recognized for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 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 $ 1,049 $ 18 $ 1,182 $ 55 Non-owner occupied 5,112 83 6,385 298 Multifamily 1,119 19 1,125 55 Commercial real estate 2,402 42 1,732 133 Consumer 90 2 92 6 Total 9,772 164 10,516 547 Loans with an allowance: One-to-four family residential: Owner occupied 517 9 519 26 Non-owner occupied 3,160 40 3,232 122 Commercial real estate 373 5 1,247 22 Total 4,050 54 4,998 170 Total impaired loans: One-to-four family residential: Owner occupied 1,566 27 1,701 81 Non-owner occupied 8,272 123 9,617 420 Multifamily 1,119 19 1,125 55 Commercial real estate 2,775 47 2,979 155 Consumer 90 2 92 6 Total $ 13,822 $ 218 $ 15,514 $ 717 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 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 $ 1,658 $ 22 $ 1,886 $ 69 Non-owner occupied 11,395 158 13,445 485 Multifamily 1,143 19 1,251 56 Commercial real estate 2,693 49 2,818 135 Consumer 97 2 99 6 Total 16,986 250 19,499 751 Loans with an allowance: One-to-four family residential: Owner occupied 1,099 10 1,495 22 Non-owner occupied 3,343 47 3,773 128 Commercial real estate 745 10 749 31 Construction/land — — 124 — Total 5,187 67 6,141 181 Total impaired loans: One-to-four family residential: Owner occupied 2,757 32 3,381 91 Non-owner occupied 14,738 205 17,218 613 Multifamily 1,143 19 1,251 56 Commercial real estate 3,438 59 3,567 166 Construction/land — — 124 — Consumer 97 2 99 6 Total $ 22,173 $ 317 $ 25,640 $ 932 |
Troubled Debt Restructurings on Financing Receivables | The following tables present TDR modifications for the periods indicated and their recorded investment prior to and after the modification: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 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) One-to-four family residential Advancement of maturity date 1 563 563 1 563 563 Commercial Advancement of maturity date — $ — $ — 1 $ 1,124 $ 1,124 Total 1 $ 563 $ 563 2 $ 1,687 $ 1,687 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 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) One-to-four family residential Principal and interest with interest rate concession and advancement of maturity date 1 $ 524 $ 524 8 $ 2,492 $ 2,492 Total 1 $ 524 $ 524 8 $ 2,492 $ 2,492 |
Financing Receivables, Summary of loans by type and risk category | The following tables represent a summary of loans by type and risk category at the dates indicated: September 30, 2018 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (1) (In thousands) Risk Rating: Pass $ 325,509 $ 176,521 $ 359,021 $ 103,009 $ 29,655 $ 12,373 $ 1,006,088 Special mention 1,762 — 370 — — — 2,132 Substandard 653 — 870 — — 46 1,569 Total loans $ 327,924 $ 176,521 $ 360,261 $ 103,009 $ 29,655 $ 12,419 $ 1,009,789 _____________ (1) Net of LIP. 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 loans $ 278,655 $ 184,902 $ 361,299 $ 145,618 $ 23,087 $ 9,133 $ 1,002,694 _____________ (1) Net of LIP. |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Real Estate [Abstract] | |
Other Real Estate, Roll Forward | The following table is a summary of OREO activity during the periods shown: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (In thousands) Balance at beginning of period $ 483 $ 1,825 $ 483 $ 2,331 Gross proceeds from sale of OREO — — — (461 ) Gain on sale of OREO — — — 5 Market value adjustments — — — (50 ) Balance at end of period $ 483 $ 1,825 $ 483 $ 1,825 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The tables below present the balances of assets measured at fair value on a recurring basis (there were no transfers between Level 1, Level 2 and Level 3 recurring measurements) at September 30, 2018 and December 31, 2017 : Fair Value Measurements at September 30, 2018 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) Investments available-for-sale: Mortgage-backed investments: Fannie Mae $ 25,334 $ — $ 25,334 $ — Freddie Mac 5,212 — 5,212 — Ginnie Mae 21,979 — 21,979 — Other 6,015 — 6,015 — Municipal bonds 10,466 — 10,466 — U.S. Government agencies 48,718 — 48,718 — Corporate bonds 23,144 — 23,144 — Total available-for-sale 140,868 — 140,868 — Derivative fair value asset 2,454 — 2,454 — Total $ 143,322 $ — $ 143,322 $ — Fair Value Measurements at 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) Investments available-for-sale: 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 132,242 — 132,242 — Derivative fair value asset 1,526 — 1,526 — Total $ 133,768 $ — $ 133,768 $ — |
Schedule of balances of assets and liabilities, measured at fair value on a non-recurring basis | The tables below present the balances of assets measured at fair value on a nonrecurring basis at September 30, 2018 and December 31, 2017 : Fair Value Measurements at September 30, 2018 Fair Value Quoted Prices in Significant Significant (In thousands) Impaired loans (included in loans (1) $ 13,609 $ — $ — $ 13,609 OREO 483 — — 483 Total $ 14,092 $ — $ — $ 14,092 _____________ (1) Total fair value of impaired loans is net of $93,000 of specific reserves on performing TDRs. Fair Value Measurements at December 31, 2017 Fair Value Quoted Prices in Significant Significant (In thousands) Impaired loans (included in loans (1) $ 17,849 $ — $ — $ 17,849 OREO 483 — — 483 Total $ 18,332 $ — $ — $ 18,332 _____________ (1) Total fair value of impaired loans is net of $135,000 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 September 30, 2018 and December 31, 2017 : September 30, 2018 Fair Value Valuation Technique Unobservable Input(s) Range (Weighted Average) (Dollars in thousands) Impaired Loans $ 13,609 Market approach Appraised value discounted by market or borrower conditions 0.0% OREO $ 483 Market approach Appraised value less selling costs 0.0% December 31, 2017 Fair Value Valuation Technique Unobservable Input(s) Range (Weighted Average) (Dollars in thousands) Impaired Loans $ 17,849 Market approach Appraised value discounted by market or borrower conditions 0.0% OREO $ 483 Market approach Appraised value less selling costs 0.0% |
Fair Value, by Balance Sheet Grouping | The carrying amounts and estimated fair values of financial instruments were as follows at the dates indicated: September 30, 2018 Estimated Fair Value Measurements Using: Carrying Value Fair Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash on hand and in banks $ 7,167 $ 7,167 $ 7,167 $ — $ — Interest-earning deposits with banks 19,094 19,094 19,094 — — Investments available-for-sale 140,868 140,868 — 140,868 — Loans receivable, net 995,557 977,320 — — 977,320 FHLB stock 7,410 7,410 — 7,410 — Accrued interest receivable 4,664 4,664 — 4,664 — Derivative fair value asset 2,454 2,454 — 2,454 — Financial Liabilities: Deposits 440,265 440,265 440,265 — — Certificates of deposit, retail 373,931 370,948 — 370,948 — Certificates of deposit, brokered 102,083 101,812 — 101,812 — Advances from the FHLB 149,000 145,108 — 145,108 — Accrued interest payable 541 541 — 541 — December 31, 2017 Estimated Fair Value Measurements Using: Carrying Value 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 with banks 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 — |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table presents the fair value of this derivative instrument as of September 30, 2018 and December 31, 2017 : Balance Sheet Location Fair Value at September 30, 2018 Fair Value at December 31, 2017 (In thousands) Interest rate swap on FHLB debt designated as cash flow hedge Other Assets $ 2,454 $ 1,526 Total derivatives $ 2,454 $ 1,526 |
Derivative Instruments, Gain (Loss) | The following table presents the effect of this derivative instrument on the Consolidated Statements of Comprehensive Income for the quarters ended September 30, 2018 , and December 31, 2017 : Balance Sheet Location Amount Recognized in OCI at September 30, 2018 Amount Recognized in OCI at December 31, 2017 (In thousands) Interest rate swap on FHLB debt Other assets $ 70 $ 125 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Share-based Compensation [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | A summary of the Company’s stock option plan awards and activity for the three and nine months ended September 30, 2018 , follows: For the Three Months Ended September 30, 2018 Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term in Years Aggregate Intrinsic Value Outstanding at July 1, 2018 315,000 $ 10.34 $ 2,891,350 Exercised — Outstanding at September 30, 2018 315,000 10.34 5.24 1,962,100 Vested and expected to vest assuming a 3% forfeiture 313,710 10.33 5.23 1,956,260 Exercisable at September 30, 2018 272,000 10.07 5.02 1,767,430 For the Nine Months Ended September 30, 2018 Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term in Years Aggregate Intrinsic Value Outstanding at January 1, 2018 452,940 $ 10.21 $ 2,402,096 Exercised (137,940 ) 9.90 1,112,026 Outstanding at September 30, 2018 315,000 10.34 5.24 1,962,100 Vested and expected to vest assuming a 3% forfeiture rate over the vesting term 313,710 10.33 5.23 1,956,260 Exercisable at September 30, 2018 272,000 10.07 5.02 1,767,430 A summary of changes in nonvested restricted stock awards for the three and nine months ended September 30, 2018 , follows: For the Three Months Ended September 30, 2018 Shares Weighted-Average Nonvested at July 1, 2018 25,987 $ 14.93 Granted — — Vested (5,000 ) 10.88 Nonvested at September 30, 2018 20,987 15.90 Expected to vest assuming a 3% forfeiture rate over the vesting term 20,357 15.90 For the Nine Months Ended September 30, 2018 Shares Weighted-Average Nonvested at January 1, 2018 5,000 10.88 Granted 30,179 17.14 Vested (14,192 ) 16.77 Nonvested at September 30, 2018 20,987 15.90 Expected to vest assuming a 3% forfeiture rate over the vesting term 20,357 15.90 |
Earnings Per Share_ Schedule of
Earnings Per Share: Schedule of Earnings Per Share Reconciliation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | The following table presents a reconciliation of the components used to compute basic and diluted earnings per share for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (Dollars in thousands, except share data) Net income $ 2,792 $ 1,861 $ 12,736 $ 6,073 Less: Earnings allocated to participating (5 ) (2 ) $ (24 ) $ (6 ) Earnings allocated to common shareholders $ 2,787 $ 1,859 $ 12,712 $ 6,067 Basic weighted average common shares 10,356,994 10,287,663 10,280,287 10,323,459 Dilutive stock options 101,350 126,044 117,645 142,755 Dilutive restricted stock grants 10,458 13,331 7,383 13,847 Diluted weighted average common shares outstanding 10,468,802 10,427,038 10,405,315 10,480,061 Basic earnings per share $ 0.27 $ 0.18 $ 1.24 $ 0.59 Diluted earnings per share $ 0.27 $ 0.18 $ 1.22 $ 0.58 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table includes the Company’s noninterest income disaggregated by type of service for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (In thousands) Gain (loss) on sale of investments (1) $ 1 $ 47 $ (20 ) $ 103 BOLI change in cash surrender value (1) 245 173 718 490 Wealth management revenue 145 252 400 699 Deposit related fees 63 56 197 155 Debit card and ATM fees 104 57 306 122 Loan related fees 163 61 353 215 Loan interest swap fees 110 83 180 205 Other 10 2 16 8 Total noninterest income $ 841 $ 731 $ 2,150 $ 1,997 _______________ (1 |
Description of Business (Narrat
Description of Business (Narrative) (Details) $ in Millions | Aug. 25, 2017USD ($) |
Opus Bank [Member] | |
Business Acquisition [Line Items] | |
Retail deposits | $ 74.7 |
Investments_ Available-for-sale
Investments: Available-for-sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | $ 145,082 | $ 133,475 |
Gross Unrealized Gains | 341 | 999 |
Gross Unrealized Losses | (4,555) | (2,232) |
Fair Value | 140,868 | 132,242 |
Mortgage-backed investments, Fannie Mae | ||
Amortized Cost | 26,488 | 26,961 |
Gross Unrealized Gains | 11 | 69 |
Gross Unrealized Losses | (1,165) | (466) |
Fair Value | 25,334 | 26,564 |
Mortgage-backed investments, Freddie Mac | ||
Amortized Cost | 5,372 | 5,510 |
Gross Unrealized Gains | 1 | 18 |
Gross Unrealized Losses | (161) | (56) |
Fair Value | 5,212 | 5,472 |
Mortgage-backed investments, Ginnie Mae | ||
Amortized Cost | 23,500 | 22,288 |
Gross Unrealized Gains | 0 | 14 |
Gross Unrealized Losses | (1,521) | (726) |
Fair Value | 21,979 | 21,576 |
Mortgage backed investments Other [Member] | ||
Amortized Cost | 6,028 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (13) | |
Fair Value | 6,015 | |
Municipal Bonds | ||
Amortized Cost | 10,640 | 13,126 |
Gross Unrealized Gains | 5 | 290 |
Gross Unrealized Losses | (179) | (21) |
Fair Value | 10,466 | 13,395 |
US Government agencies | ||
Amortized Cost | 49,564 | 43,088 |
Gross Unrealized Gains | 79 | 81 |
Gross Unrealized Losses | (925) | (536) |
Fair Value | 48,718 | 42,633 |
Corporate Bonds | ||
Amortized Cost | 23,490 | 22,502 |
Gross Unrealized Gains | 245 | 527 |
Gross Unrealized Losses | (591) | (427) |
Fair Value | $ 23,144 | $ 22,602 |
Investments_ Schedule of Availa
Investments: Schedule of Available for sale Securities in Continuous Unrealized Loss positions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Net gain (loss) on sale of investments | $ 1,000 | $ 47,000 | $ (20,000) | $ 103,000 | |
Fair Value | 69,119,000 | 69,119,000 | $ 61,015,000 | ||
Unrealized Loss | (1,468,000) | (1,468,000) | (665,000) | ||
Fair Value | 43,094,000 | 43,094,000 | 29,867,000 | ||
Unrealized Loss | (3,087,000) | (3,087,000) | (1,567,000) | ||
Fair Value | 112,213,000 | 112,213,000 | 90,882,000 | ||
Gross Unrealized Loss | (4,555,000) | (4,555,000) | (2,232,000) | ||
Mortgage-backed investments, Fannie Mae | |||||
Fair Value | 11,129,000 | 11,129,000 | 15,202,000 | ||
Unrealized Loss | (238,000) | (238,000) | (91,000) | ||
Fair Value | 13,736,000 | 13,736,000 | 6,759,000 | ||
Unrealized Loss | (927,000) | (927,000) | (375,000) | ||
Fair Value | 24,865,000 | 24,865,000 | 21,961,000 | ||
Gross Unrealized Loss | (1,165,000) | (1,165,000) | (466,000) | ||
Mortgage-backed investments, Freddie Mac | |||||
Fair Value | 5,102,000 | 5,102,000 | 3,189,000 | ||
Unrealized Loss | (161,000) | (161,000) | (56,000) | ||
Fair Value | 0 | 0 | 0 | ||
Unrealized Loss | 0 | 0 | 0 | ||
Fair Value | 5,102,000 | 5,102,000 | 3,189,000 | ||
Gross Unrealized Loss | (161,000) | (161,000) | (56,000) | ||
Mortgage backed investments Ginnie Mae | |||||
Fair Value | 6,951,000 | 6,951,000 | 6,454,000 | ||
Unrealized Loss | (207,000) | (207,000) | (61,000) | ||
Fair Value | 15,028,000 | 15,028,000 | 14,234,000 | ||
Unrealized Loss | (1,314,000) | (1,314,000) | (665,000) | ||
Fair Value | 21,979,000 | 21,979,000 | 20,688,000 | ||
Gross Unrealized Loss | (1,521,000) | (1,521,000) | (726,000) | ||
Mortgage backed investments Other [Member] | |||||
Fair Value | 6,015,000 | 6,015,000 | |||
Unrealized Loss | (13,000) | (13,000) | |||
Fair Value | 0 | 0 | |||
Unrealized Loss | 0 | 0 | |||
Fair Value | 6,015,000 | 6,015,000 | |||
Gross Unrealized Loss | (13,000) | (13,000) | |||
Municipal Bonds | |||||
Fair Value | 6,378,000 | 6,378,000 | 1,403,000 | ||
Unrealized Loss | (134,000) | (134,000) | (21,000) | ||
Fair Value | 963,000 | 963,000 | 0 | ||
Unrealized Loss | (45,000) | (45,000) | 0 | ||
Fair Value | 7,341,000 | 7,341,000 | 1,403,000 | ||
Gross Unrealized Loss | (179,000) | (179,000) | (21,000) | ||
US Government agencies | |||||
Fair Value | 32,551,000 | 32,551,000 | 33,268,000 | ||
Unrealized Loss | (708,000) | (708,000) | (435,000) | ||
Fair Value | 6,451,000 | 6,451,000 | 1,800,000 | ||
Unrealized Loss | (217,000) | (217,000) | (101,000) | ||
Fair Value | 39,002,000 | 39,002,000 | 35,068,000 | ||
Gross Unrealized Loss | (925,000) | (925,000) | (536,000) | ||
Corporate Bonds | |||||
Fair Value | 993,000 | 993,000 | 1,499,000 | ||
Unrealized Loss | (7,000) | (7,000) | (1,000) | ||
Fair Value | 6,916,000 | 6,916,000 | 7,074,000 | ||
Unrealized Loss | (584,000) | (584,000) | (426,000) | ||
Fair Value | 7,909,000 | 7,909,000 | 8,573,000 | ||
Gross Unrealized Loss | $ (591,000) | $ (591,000) | $ (427,000) |
Investments_ Narrative (Details
Investments: Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)securities | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)securities | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)securities | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Investments pledged as collateral for FHLB advances | 50.00% | 50.00% | |||
Investments pledged as collateral for public deposits | $ 14,500,000 | $ 14,500,000 | $ 14,200,000 | ||
Principal repayments on investments available-for-sale | 5,400,000 | $ 2,800,000 | 15,200,000 | $ 7,500,000 | |
Net gain (loss) on sale of investments | $ 1,000 | $ 47,000 | $ (20,000) | 103,000 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | securities | 18 | 18 | 13 | ||
Unrealized Loss | securities | 57 | 57 | 36 | ||
Proceeds from Sale of Available-for-sale Securities, Debt | |||||
Payments to Acquire Marketable Securities | $ 33,011,000 | $ 23,518,000 |
Investments_ Schedule of Avai_2
Investments: Schedule of Available for sale Securities, Debt Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investments [Abstract] | ||
Due within one year, Amortized Cost | $ 253 | |
Due after one year through five years, Amortized Cost | 7,655 | |
Due after five years through ten years, Amortized Cost | 19,673 | |
Due after ten years, Amortized Cost | 56,113 | |
Debt maturities, Amortized Cost | 83,694 | |
Mortgage-backed investments, Amortized Cost | 61,388 | |
Amortized Cost | 145,082 | $ 133,475 |
Due within one year, Fair Value | 251 | |
Due after one year through five years, Fair Value | 7,725 | |
Due after five years through ten years, Fair Value | 19,196 | |
Due after ten years, Fair Value | 55,156 | |
Debt maturities, Fair Value | 82,328 | |
Mortgage-backed investments, Fair Value | 58,540 | |
Fair Value | $ 140,868 |
Loans Receivable_ Schedule of_2
Loans Receivable: Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Loans receivable | $ 1,101,021 | $ 1,095,192 | |||||
Loans in process (LIP) | 91,232 | 92,498 | |||||
Deferred loan fees, net | 1,116 | 1,150 | |||||
ALLL | 13,116 | 12,882 | |||||
Loans receivable, net | 995,557 | 988,662 | |||||
One-to-four family, residential, owner occupied | |||||||
Loans receivable | 184,698 | 148,304 | |||||
One to four family residential non owner occupied | |||||||
Loans receivable | 143,226 | 130,351 | |||||
One to Four Family | |||||||
Loans receivable | 327,924 | 278,655 | |||||
One to four family residential | |||||||
ALLL | 3,532 | $ 3,265 | 2,837 | $ 2,717 | $ 2,627 | $ 2,551 | |
Multifamily | |||||||
Loans receivable | 176,521 | 184,902 | |||||
ALLL | 1,739 | 1,928 | 1,820 | 1,703 | 1,231 | 1,199 | |
Commercial Real Estate | |||||||
Loans receivable | 360,485 | 361,842 | |||||
ALLL | 4,478 | 4,494 | 4,418 | 3,743 | 3,733 | 3,893 | |
Construction/Land Development One-to-four family residential | |||||||
Loans receivable | 84,912 | 87,404 | |||||
Construction Land Development Multifamily | |||||||
Loans receivable | [1] | 80,607 | 108,439 | ||||
Construction Land Development Commercial [Member] | |||||||
Loans receivable | [1] | 21,385 | 5,325 | ||||
Construction Land Development Land Development | |||||||
Loans receivable | [1] | 7,113 | 36,405 | ||||
Construction Land Development | |||||||
Loans receivable | [1] | 194,017 | 237,573 | ||||
ALLL | 2,197 | 2,121 | 2,816 | 2,982 | 2,942 | 2,792 | |
Business | |||||||
Loans receivable | 29,655 | 23,087 | |||||
ALLL | 910 | 674 | 694 | 668 | 457 | 237 | |
Consumer | |||||||
Loans receivable | 12,419 | 9,133 | |||||
ALLL | 260 | 272 | 297 | 297 | 295 | 279 | |
Property total | |||||||
ALLL | $ 13,116 | $ 12,754 | $ 12,882 | $ 12,110 | $ 11,285 | $ 10,951 | |
[1] | At September 30, 2018, loans totaling $475.9 million were pledged to secure borrowings from the FHLB of Des Moines compared to $422.6 million at December 31, 2017. |
Loans Receivable_ Schedule of_3
Loans Receivable: Schedule of Allowance for Loan and Lease Losses, Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | |
Loans receivable allowance for loan losses | $ 13,116 | $ 12,882 | $ 13,116 | $ 12,882 | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 12,882 | ||||||
(Recapture) provision | 200 | $ 500 | (4,200) | $ 800 | |||
Loans and Leases Receivable, Allowance, Ending Balance | 13,116 | 13,116 | |||||
One to four family residential | |||||||
Impaired Financing Receivable, Related Allowance | 86 | $ 135 | |||||
Loans receivable allowance for loan losses | 3,265 | 2,627 | 2,837 | 2,551 | 3,532 | 2,837 | 2,717 |
Total Loans | 327,924 | 266,447 | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 3,265 | 2,627 | 2,837 | 2,551 | |||
Recoveries | 2 | 247 | 4,248 | 280 | |||
(Recapture) provision | 265 | (157) | (3,553) | (114) | |||
Loans and Leases Receivable, Allowance, Ending Balance | 3,532 | 2,717 | 3,532 | 2,717 | |||
Financing Receivable, Collectively Evaluated for Impairment | 318,353 | 251,141 | |||||
Financing Receivable, Individually Evaluated for Impairment | 9,571 | 15,306 | |||||
One to four family residential | General Reserve | |||||||
Loans receivable allowance for loan losses | 3,446 | 2,582 | 3,446 | 2,582 | 3,446 | 2,582 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Loans and Leases Receivable, Allowance, Ending Balance | 3,446 | 2,582 | 3,446 | 2,582 | |||
Multifamily | |||||||
Impaired Financing Receivable, Related Allowance | 0 | 0 | 0 | ||||
Loans receivable allowance for loan losses | 1,928 | 1,231 | 1,820 | 1,199 | 1,739 | 1,820 | 1,703 |
Total Loans | 176,521 | 173,681 | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 1,928 | 1,231 | 1,820 | 1,199 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
(Recapture) provision | (189) | 472 | (81) | 504 | |||
Loans and Leases Receivable, Allowance, Ending Balance | 1,739 | 1,703 | 1,739 | 1,703 | |||
Financing Receivable, Collectively Evaluated for Impairment | 175,405 | 172,541 | |||||
Financing Receivable, Individually Evaluated for Impairment | 1,116 | 1,140 | |||||
Multifamily | General Reserve | |||||||
Loans receivable allowance for loan losses | 1,739 | 1,703 | 1,739 | 1,703 | 1,739 | 1,703 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Loans and Leases Receivable, Allowance, Ending Balance | 1,739 | 1,703 | 1,739 | 1,703 | |||
Commercial Real Estate | |||||||
Impaired Financing Receivable, Related Allowance | 7 | 19 | 20 | ||||
Loans receivable allowance for loan losses | 4,494 | 3,733 | 4,418 | 3,893 | 4,478 | 4,418 | 3,743 |
Total Loans | 360,261 | 319,872 | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 4,494 | 3,733 | 4,418 | 3,893 | |||
Recoveries | 0 | 78 | 14 | 78 | |||
(Recapture) provision | (16) | (68) | 46 | (228) | |||
Loans and Leases Receivable, Allowance, Ending Balance | 4,478 | 3,743 | 4,478 | 3,743 | |||
Financing Receivable, Collectively Evaluated for Impairment | 357,335 | 316,656 | |||||
Financing Receivable, Individually Evaluated for Impairment | 2,926 | 3,216 | |||||
Commercial Real Estate | General Reserve | |||||||
Loans receivable allowance for loan losses | 4,471 | 3,723 | 4,471 | 3,723 | 4,471 | 3,723 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Loans and Leases Receivable, Allowance, Ending Balance | 4,471 | 3,723 | 4,471 | 3,723 | |||
Construction Land Development | |||||||
Impaired Financing Receivable, Related Allowance | 0 | 0 | |||||
Loans receivable allowance for loan losses | 2,121 | 2,942 | 2,816 | 2,792 | 2,197 | 2,816 | 2,982 |
Total Loans | 103,009 | 153,914 | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 2,121 | 2,942 | 2,816 | 2,792 | |||
Recoveries | 160 | 0 | 172 | 0 | |||
(Recapture) provision | (84) | 40 | (791) | 190 | |||
Loans and Leases Receivable, Allowance, Ending Balance | 2,197 | 2,982 | 2,197 | 2,982 | |||
Financing Receivable, Collectively Evaluated for Impairment | 103,009 | 153,914 | |||||
Financing Receivable, Individually Evaluated for Impairment | 0 | 0 | |||||
Construction Land Development | General Reserve | |||||||
Loans receivable allowance for loan losses | 2,197 | 2,982 | 2,197 | 2,982 | 2,197 | 2,982 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Loans and Leases Receivable, Allowance, Ending Balance | 2,197 | 2,982 | 2,197 | 2,982 | |||
Business | |||||||
Impaired Financing Receivable, Related Allowance | 0 | 0 | |||||
Loans receivable allowance for loan losses | 674 | 457 | 694 | 237 | 910 | 694 | 668 |
Total Loans | 29,655 | 22,243 | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 674 | 457 | 694 | 237 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
(Recapture) provision | 236 | 211 | 216 | 431 | |||
Loans and Leases Receivable, Allowance, Ending Balance | 910 | 668 | 910 | 668 | |||
Financing Receivable, Collectively Evaluated for Impairment | 29,655 | 22,243 | |||||
Financing Receivable, Individually Evaluated for Impairment | 0 | 0 | |||||
Business | General Reserve | |||||||
Loans receivable allowance for loan losses | 910 | 668 | 910 | 668 | 910 | 668 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Loans and Leases Receivable, Allowance, Ending Balance | 910 | 668 | 910 | 668 | |||
Consumer | |||||||
Impaired Financing Receivable, Related Allowance | 0 | 0 | |||||
Loans receivable allowance for loan losses | 272 | 295 | 297 | 279 | 260 | 297 | 297 |
Total Loans | 12,419 | 9,301 | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 272 | 295 | 297 | 279 | |||
Recoveries | 0 | 0 | 0 | 1 | |||
(Recapture) provision | (12) | 2 | (37) | 17 | |||
Loans and Leases Receivable, Allowance, Ending Balance | 260 | 297 | 260 | 297 | |||
Financing Receivable, Collectively Evaluated for Impairment | 12,330 | 9,205 | |||||
Financing Receivable, Individually Evaluated for Impairment | 89 | 96 | |||||
Consumer | General Reserve | |||||||
Loans receivable allowance for loan losses | 260 | 297 | 260 | 297 | 260 | 297 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Loans and Leases Receivable, Allowance, Ending Balance | 260 | 297 | 260 | 297 | |||
Property total | |||||||
Impaired Financing Receivable, Related Allowance | 93 | 135 | 155 | ||||
Loans receivable allowance for loan losses | 12,754 | 11,285 | 12,882 | 10,951 | 13,116 | $ 12,882 | 12,110 |
Total Loans | 1,009,789 | 945,458 | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Loans and Leases Receivable, Allowance, Beginning Balance | 12,754 | 11,285 | 12,882 | 10,951 | |||
Recoveries | 162 | 325 | 4,434 | 359 | |||
(Recapture) provision | 200 | 500 | (4,200) | 800 | |||
Loans and Leases Receivable, Allowance, Ending Balance | 13,116 | 12,110 | 13,116 | 12,110 | |||
Financing Receivable, Collectively Evaluated for Impairment | 996,087 | 925,700 | |||||
Financing Receivable, Individually Evaluated for Impairment | 13,702 | 19,758 | |||||
Property total | General Reserve | |||||||
Loans receivable allowance for loan losses | 13,023 | 11,955 | 13,023 | 11,955 | $ 13,023 | $ 11,955 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Loans and Leases Receivable, Allowance, Ending Balance | $ 13,023 | $ 11,955 | $ 13,023 | $ 11,955 |
Loans Receivable_ Narratives (D
Loans Receivable: Narratives (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Loans Pledged as Collateral | $ 475,900,000 | $ 475,900,000 | $ 422,600,000 | ||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | $ 4,000 | $ 3,000 | $ 10,000 | $ 21,000 | |
Loans and Leases Receivable, Ratio of Nonperforming Loans to All Loans | 0.08% | 0.08% | 0.01% | ||
Loans and Leases Receivable, Impaired, Commitment to Lend | $ 0 | $ 0 | $ 0 | ||
Troubled Debt Restructuring Loans | 13,200,000 | 13,200,000 | $ 17,800,000 | ||
Troubled Debt Restructuring Commitment To Extend Additional Credit | 0 | $ 0 | 0 | $ 0 | |
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 0 | 0 | |||
Troubled debt restructuring, charge to Allowance for Loan and Lease Losses | $ 0 | ||||
Minimum | |||||
Troubled Debt Restructuring, Interest Rate Concession Period | 1 year | 1 year | 1 year | ||
Maximum | |||||
Troubled Debt Restructuring, Interest Rate Concession Period | 3 years | 3 years | 3 years |
Loans Receivable_ Financing Rec
Loans Receivable: Financing Receivables, Aging of loans (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 0 | $ 0 | ||
One-to-four family, residential, owner occupied | ||||
Total | 496,000 | 101,000 | ||
Current | 184,202,000 | 148,203,000 | ||
Total Loans | 184,698,000 | [1],[2] | 148,304,000 | [3],[4] |
One to four family residential non owner occupied | ||||
Total | 0 | 0 | ||
Current | 143,226,000 | 130,351,000 | ||
Total Loans | 143,226,000 | [1],[2] | 130,351,000 | [3],[4] |
Multifamily | ||||
Total | 0 | 0 | ||
Current | 176,521,000 | 184,902,000 | ||
Total Loans | 176,521,000 | [1],[2] | 184,902,000 | [3],[4] |
Commercial Real Estate | ||||
Total | 325,000 | 0 | ||
Current | 359,936,000 | 361,299,000 | ||
Total Loans | 360,261,000 | [1],[2] | 361,299,000 | [3],[4] |
Construction Land Development | ||||
Total | 0 | 0 | ||
Current | 103,009,000 | 145,618,000 | ||
Total Loans | 103,009,000 | [1],[2] | 145,618,000 | [3],[4] |
Real Estate, Total | ||||
Total | 821,000 | 101,000 | ||
Current | 966,894,000 | 970,373,000 | ||
Total Loans | 967,715,000 | [1],[2] | 970,474,000 | [3],[4] |
Business | ||||
Total | 0 | 0 | ||
Current | 29,655,000 | 23,087,000 | ||
Total Loans | 29,655,000 | [1],[2] | 23,087,000 | [3],[4] |
Consumer | ||||
Total | 0 | 0 | ||
Current | 12,419,000 | 9,133,000 | ||
Total Loans | 12,419,000 | [1],[2] | 9,133,000 | [3],[4] |
Property total | ||||
Total | 821,000 | 101,000 | ||
Current | 1,008,968,000 | 1,002,593,000 | ||
Total Loans | 1,009,789,000 | [1],[2],[5],[6] | 1,002,694,000 | [3],[4],[7],[8] |
Financing Receivables, 30 to 59 Days Past Due [Member] | One-to-four family, residential, owner occupied | ||||
Total | 496,000 | 101,000 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | One to four family residential non owner occupied | ||||
Total | 0 | 0 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Multifamily | ||||
Total | 0 | 0 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Real Estate | ||||
Total | 325,000 | 0 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Construction Land Development | ||||
Total | 0 | 0 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Real Estate, Total | ||||
Total | 821,000 | 101,000 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Business | ||||
Total | 0 | 0 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer | ||||
Total | 0 | 0 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Property total | ||||
Total | 821,000 | 101,000 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | One-to-four family, residential, owner occupied | ||||
Total | 0 | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | One to four family residential non owner occupied | ||||
Total | 0 | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Multifamily | ||||
Total | 0 | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Real Estate | ||||
Total | 0 | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Construction Land Development | ||||
Total | 0 | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Real Estate, Total | ||||
Total | 0 | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Business | ||||
Total | 0 | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer | ||||
Total | 0 | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Property total | ||||
Total | 0 | 0 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | One-to-four family, residential, owner occupied | ||||
Total | 0 | 0 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | One to four family residential non owner occupied | ||||
Total | 0 | 0 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Multifamily | ||||
Total | 0 | 0 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Real Estate | ||||
Total | 0 | 0 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Construction Land Development | ||||
Total | 0 | 0 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Real Estate, Total | ||||
Total | 0 | 0 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Business | ||||
Total | 0 | 0 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer | ||||
Total | 0 | 0 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Property total | ||||
Total | $ 0 | $ 0 | ||
[1] | Net of LIP. | |||
[2] | There were no loans 90 days and greater past due and still accruing interest at September 30, 2018. | |||
[3] | Net of LIP. | |||
[4] | There were no loans 90 days and greater past due and still accruing interest at December 31, 2017. | |||
[5] | Net of LIP. | |||
[6] | Net of LIP. | |||
[7] | Net of LIP. | |||
[8] | Net of LIP. |
Loans Receivable Loans Receivab
Loans Receivable Loans Receivable: Schedule of non accrual loans by type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 13,822 | $ 22,173 | $ 15,514 | $ 25,640 | |
Nonaccrual Loans, total | 484 | 484 | $ 179 | ||
One to Four Family | |||||
Nonaccrual Loans, total | 113 | 113 | 128 | ||
Commercial Real Estate | |||||
Nonaccrual Loans, total | 325 | 325 | 0 | ||
Consumer | |||||
Nonaccrual Loans, total | $ 46 | $ 46 | $ 51 |
Loans Receivable_ Financing R_2
Loans Receivable: Financing Receivables, Summary of loans by type and risk category (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | ||
One to four family residential | ||||
Financing Receivable, Net | $ 327,924,000 | $ 278,655,000 | ||
Multifamily | ||||
Financing Receivable, Net | 176,521,000 | [1],[2] | 184,902,000 | [3],[4] |
Commercial Real Estate | ||||
Financing Receivable, Net | 360,261,000 | [1],[2] | 361,299,000 | [3],[4] |
Construction Land Development | ||||
Financing Receivable, Net | 103,009,000 | [1],[2] | 145,618,000 | [3],[4] |
Business | ||||
Financing Receivable, Net | 29,655,000 | [1],[2] | 23,087,000 | [3],[4] |
Consumer | ||||
Financing Receivable, Net | 12,419,000 | [1],[2] | 9,133,000 | [3],[4] |
Property total | ||||
Financing Receivable, Net | 1,009,789,000 | [1],[2],[5],[6] | 1,002,694,000 | [3],[4],[7],[8] |
One-to-four family, residential, owner occupied | ||||
Financing Receivable, Net | 184,698,000 | [1],[2] | 148,304,000 | [3],[4] |
One to four family residential non owner occupied | ||||
Financing Receivable, Net | 143,226,000 | [1],[2] | 130,351,000 | [3],[4] |
Performing Financing Receivable | One to four family residential | ||||
Financing Receivable, Net | 327,811,000 | [9] | 278,527,000 | [10] |
Performing Financing Receivable | Multifamily | ||||
Financing Receivable, Net | 176,521,000 | [9] | 184,902,000 | [10] |
Performing Financing Receivable | Commercial Real Estate | ||||
Financing Receivable, Net | 359,936,000 | [9] | 361,299,000 | [10] |
Performing Financing Receivable | Construction Land Development | ||||
Financing Receivable, Net | 103,009,000 | [9] | 145,618,000 | [10] |
Performing Financing Receivable | Business | ||||
Financing Receivable, Net | 29,655,000 | [9] | 23,087,000 | [10] |
Performing Financing Receivable | Consumer | ||||
Financing Receivable, Net | 12,373,000 | [9] | 9,082,000 | [10] |
Performing Financing Receivable | Property total | ||||
Financing Receivable, Net | 1,009,305,000 | [6],[9] | 1,002,515,000 | [7],[10] |
Performing Financing Receivable | One-to-four family, residential, owner occupied | ||||
Financing Receivable, Net | 184,600,000 | 148,200,000 | ||
Performing Financing Receivable | One to four family residential non owner occupied | ||||
Financing Receivable, Net | 143,200,000 | 130,300,000 | ||
Nonperforming Financing Receivable | One to four family residential | ||||
Financing Receivable, Net | 113,000 | [11] | 128,000 | [12] |
Nonperforming Financing Receivable | Multifamily | ||||
Financing Receivable, Net | 0 | [11] | 0 | [12] |
Nonperforming Financing Receivable | Commercial Real Estate | ||||
Financing Receivable, Net | 325,000 | [11] | 0 | [12] |
Nonperforming Financing Receivable | Construction Land Development | ||||
Financing Receivable, Net | 0 | [11] | 0 | [12] |
Nonperforming Financing Receivable | Business | ||||
Financing Receivable, Net | 0 | [11] | 0 | [12] |
Nonperforming Financing Receivable | Consumer | ||||
Financing Receivable, Net | 46,000 | [11] | 51,000 | [12] |
Nonperforming Financing Receivable | Property total | ||||
Financing Receivable, Net | 484,000 | [6],[11] | 179,000 | [7],[12] |
Nonperforming Financing Receivable | One-to-four family, residential, owner occupied | ||||
Financing Receivable, Net | 113,000 | 128,000 | ||
Pass | One to four family residential | ||||
Financing Receivable, Net | 325,509,000 | 275,653,000 | ||
Pass | Multifamily | ||||
Financing Receivable, Net | 176,521,000 | 184,902,000 | ||
Pass | Commercial Real Estate | ||||
Financing Receivable, Net | 359,021,000 | 358,285,000 | ||
Pass | Construction Land Development | ||||
Financing Receivable, Net | 103,009,000 | 145,618,000 | ||
Pass | Business | ||||
Financing Receivable, Net | 29,655,000 | 23,087,000 | ||
Pass | Consumer | ||||
Financing Receivable, Net | 12,373,000 | 8,893,000 | ||
Pass | Property total | ||||
Financing Receivable, Net | 1,006,088,000 | [5] | 996,438,000 | [8] |
Special Mention | One to four family residential | ||||
Financing Receivable, Net | 1,762,000 | 2,329,000 | ||
Special Mention | Multifamily | ||||
Financing Receivable, Net | 0 | 0 | ||
Special Mention | Commercial Real Estate | ||||
Financing Receivable, Net | 370,000 | 2,459,000 | ||
Special Mention | Construction Land Development | ||||
Financing Receivable, Net | 0 | 0 | ||
Special Mention | Business | ||||
Financing Receivable, Net | 0 | 0 | ||
Special Mention | Consumer | ||||
Financing Receivable, Net | 0 | 188,000 | ||
Special Mention | Property total | ||||
Financing Receivable, Net | 2,132,000 | [5] | 4,976,000 | [8] |
Substandard | One to four family residential | ||||
Financing Receivable, Net | 653,000 | 673,000 | ||
Substandard | Multifamily | ||||
Financing Receivable, Net | 0 | 0 | ||
Substandard | Commercial Real Estate | ||||
Financing Receivable, Net | 870,000 | 555,000 | ||
Substandard | Construction Land Development | ||||
Financing Receivable, Net | 0 | 0 | ||
Substandard | Business | ||||
Financing Receivable, Net | 0 | 0 | ||
Substandard | Consumer | ||||
Financing Receivable, Net | 46,000 | 52,000 | ||
Substandard | Property total | ||||
Financing Receivable, Net | $ 1,569,000 | [5] | $ 1,280,000 | [8] |
[1] | Net of LIP. | |||
[2] | There were no loans 90 days and greater past due and still accruing interest at September 30, 2018. | |||
[3] | Net of LIP. | |||
[4] | There were no loans 90 days and greater past due and still accruing interest at December 31, 2017. | |||
[5] | Net of LIP. | |||
[6] | Net of LIP. | |||
[7] | Net of LIP. | |||
[8] | Net of LIP. | |||
[9] | There were $184.6 million of owner-occupied one-to-four family residential loans and $143.2 million of non-owner occupied one-to-four family residential loans classified as performing. | |||
[10] | 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. | |||
[11] | The $113,000 of one-to-four family residential loans classified as nonperforming are all owner-occupied. December 31, 2017 One-to-FourFamilyResidential Multifamily CommercialReal Estate Construction/Land Business Consumer Total (1) (In thousands)Performing (2)$278,527 $184,902 $361,299 $145,618 $23,087 $9,082 $1,002,515Nonperforming (3)128 — — — — 51 179Total loans$278,655 $184,902 $361,299 $145,618 $23,087 $9,133 $1,002,694 | |||
[12] | The $128,000 of one-to-four family residential loans classified as nonperforming are all owner-occupied. |
Loans Receivable_ Schedule of I
Loans Receivable: Schedule of Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | ||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | $ 9,772 | $ 16,986 | $ 10,516 | $ 19,499 | ||||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 164 | 250 | 547 | 751 | ||||
Impaired Financing Receivable, Recorded Investment | 13,609 | [1] | 13,609 | [1] | $ 17,849 | [2] | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 4,050 | 5,187 | 4,998 | 6,141 | ||||
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 54 | 67 | 170 | 181 | ||||
Impaired Financing Receivable, Average Recorded Investment | 13,822 | 22,173 | 15,514 | 25,640 | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | 218 | 317 | 717 | 932 | ||||
One-to-four family, residential, owner occupied | ||||||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,045 | [3] | 1,045 | [3] | 1,321 | [4] | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,213 | [5] | 1,213 | [5] | 1,516 | [6] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 516 | [3] | 516 | [3] | 522 | [4] | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 562 | [5] | 562 | [5] | 568 | [6] | ||
Impaired Financing Receivable, Related Allowance | 23 | 23 | 5 | |||||
Impaired Financing Receivable, Recorded Investment | 1,561 | [3] | 1,561 | [3] | 1,843 | [4] | ||
Impaired Financing Receivable, Unpaid Principal Balance | 1,775 | [5] | 1,775 | [5] | 2,084 | [6] | ||
One to four family residential non owner occupied | ||||||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 4,857 | [3] | 4,857 | [3] | 8,409 | [4] | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 4,857 | [5] | 4,857 | [5] | 8,409 | [6] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 3,153 | [3] | 3,153 | [3] | 3,310 | [4] | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 3,174 | [5] | 3,174 | [5] | 3,332 | [6] | ||
Impaired Financing Receivable, Related Allowance | 63 | 63 | 111 | |||||
Impaired Financing Receivable, Recorded Investment | 8,010 | [3] | 8,010 | [3] | 11,719 | [4] | ||
Impaired Financing Receivable, Unpaid Principal Balance | 8,031 | [5] | 8,031 | [5] | 11,741 | [6] | ||
Multifamily | ||||||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,116 | 1,116 | 1,134 | [4] | ||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,116 | 1,116 | 1,134 | [4] | ||||
Impaired Financing Receivable, Related Allowance | 0 | 0 | 0 | 0 | 0 | |||
Impaired Financing Receivable, Recorded Investment | 1,116 | [3] | 1,116 | [3] | 1,134 | [4] | ||
Impaired Financing Receivable, Unpaid Principal Balance | 1,116 | [5] | 1,116 | [5] | 1,134 | [6] | ||
Commercial Real Estate | ||||||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,556 | [3] | 2,556 | [3] | 1,065 | [4] | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 2,556 | [5] | 2,556 | [5] | 1,065 | [6] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 370 | [3] | 370 | [3] | 2,129 | [4] | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 370 | [5] | 370 | [5] | 2,129 | [6] | ||
Impaired Financing Receivable, Related Allowance | 7 | 20 | 7 | 20 | 19 | |||
Impaired Financing Receivable, Recorded Investment | 2,926 | [3] | 2,926 | [3] | 3,194 | [4] | ||
Impaired Financing Receivable, Unpaid Principal Balance | 2,926 | [5] | 2,926 | [5] | 3,194 | [6] | ||
Consumer | ||||||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 89 | [3] | 89 | [3] | 94 | [4] | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 141 | [5] | 141 | [5] | 144 | [6] | ||
Impaired Financing Receivable, Related Allowance | 0 | 0 | 0 | |||||
Impaired Financing Receivable, Recorded Investment | 89 | [3] | 89 | [3] | 94 | [4] | ||
Impaired Financing Receivable, Unpaid Principal Balance | 141 | [5] | 141 | [5] | 144 | [6] | ||
Construction Land Development [Member] | ||||||||
Impaired Financing Receivable, Related Allowance | 0 | 0 | 0 | 0 | ||||
Property total | ||||||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 9,663 | [3] | 9,663 | [3] | 12,023 | [4] | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 9,883 | [5] | 9,883 | [5] | 12,268 | [6] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 4,039 | [3] | 4,039 | [3] | 5,961 | [4] | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 4,106 | [5] | 4,106 | [5] | 6,029 | [6] | ||
Impaired Financing Receivable, Related Allowance | 93 | 155 | 93 | 155 | 135 | |||
Impaired Financing Receivable, Recorded Investment | 13,702 | [3] | 13,702 | [3] | 17,984 | [4] | ||
Impaired Financing Receivable, Unpaid Principal Balance | 13,989 | [5] | 13,989 | [5] | $ 18,297 | [6] | ||
Consumer Loan [Member] | ||||||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 90 | 97 | 92 | 99 | ||||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 2 | 2 | 6 | 6 | ||||
Impaired Financing Receivable, Average Recorded Investment | 90 | 97 | 92 | 99 | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | 2 | 2 | 6 | 6 | ||||
Construction Land Development [Member] | ||||||||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 0 | 124 | ||||||
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 0 | 0 | ||||||
Impaired Financing Receivable, Average Recorded Investment | 0 | 124 | ||||||
Impaired Financing Receivable, Interest Income, Accrual Method | 0 | 0 | ||||||
Commercial Real Estate | ||||||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 2,402 | 2,693 | 1,732 | 2,818 | ||||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 42 | 49 | 133 | 135 | ||||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 373 | 745 | 1,247 | 749 | ||||
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 5 | 10 | 22 | 31 | ||||
Impaired Financing Receivable, Average Recorded Investment | 2,775 | 3,438 | 2,979 | 3,567 | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | 47 | 59 | 155 | 166 | ||||
Multifamily | ||||||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,119 | 1,143 | 1,125 | 1,251 | ||||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 19 | 19 | 55 | 56 | ||||
Impaired Financing Receivable, Average Recorded Investment | 1,119 | 1,143 | 1,125 | 1,251 | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | 19 | 19 | 55 | 56 | ||||
One to four family residential non owner occupied | ||||||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 5,112 | 11,395 | 6,385 | 13,445 | ||||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 83 | 158 | 298 | 485 | ||||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 3,160 | 3,343 | 3,232 | 3,773 | ||||
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 40 | 47 | 122 | 128 | ||||
Impaired Financing Receivable, Average Recorded Investment | 8,272 | 14,738 | 9,617 | 17,218 | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | 123 | 205 | 420 | 613 | ||||
One-to-four family, residential, owner occupied | ||||||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,049 | 1,658 | 1,182 | 1,886 | ||||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 18 | 22 | 55 | 69 | ||||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 517 | 1,099 | 519 | 1,495 | ||||
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 9 | 10 | 26 | 22 | ||||
Impaired Financing Receivable, Average Recorded Investment | 1,566 | 2,757 | 1,701 | 3,381 | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | $ 27 | $ 32 | $ 81 | $ 91 | ||||
[1] | tal fair value of impaired loans is net of $93,000 of specific reserves on performing TDRs. Fair Value Measurements at December 31, 2017 Fair ValueMeasurements Quoted Prices inActive Marketsfor IdenticalAssets (Level 1) SignificantOtherObservableInputs (Level 2) SignificantUnobservableInputs(Level 3) (In thousands)Impaired loans (included in loans receivable, net) (1)$17,849 $— $— $17,849OREO 483 — — 483Total$18,332 $— $— $18,332 | |||||||
[2] | tal fair value of impaired loans is net of $135,000 of specific reserves on performing TDRs. | |||||||
[3] | Represents the loan balance less charge-offs. | |||||||
[4] | Represents the loan balance less charge-offs. | |||||||
[5] | Contractual loan principal balance. | |||||||
[6] | Contractual loan principal balance. |
Loans Receivable_ Average Recor
Loans Receivable: Average Recorded Investment and Interest Income Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable | ||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | $ 9,772 | $ 16,986 | $ 10,516 | $ 19,499 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 164 | 250 | 547 | 751 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 4,050 | 5,187 | 4,998 | 6,141 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 54 | 67 | 170 | 181 |
Impaired Financing Receivable, Average Recorded Investment | 13,822 | 22,173 | 15,514 | 25,640 |
Impaired Financing Receivable, Interest Income, Accrual Method | 218 | 317 | 717 | 932 |
One-to-four family, residential, owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,049 | 1,658 | 1,182 | 1,886 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 18 | 22 | 55 | 69 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 517 | 1,099 | 519 | 1,495 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 9 | 10 | 26 | 22 |
Impaired Financing Receivable, Average Recorded Investment | 1,566 | 2,757 | 1,701 | 3,381 |
Impaired Financing Receivable, Interest Income, Accrual Method | 27 | 32 | 81 | 91 |
One to four family residential non owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 5,112 | 11,395 | 6,385 | 13,445 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 83 | 158 | 298 | 485 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 3,160 | 3,343 | 3,232 | 3,773 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 40 | 47 | 122 | 128 |
Impaired Financing Receivable, Average Recorded Investment | 8,272 | 14,738 | 9,617 | 17,218 |
Impaired Financing Receivable, Interest Income, Accrual Method | 123 | 205 | 420 | 613 |
Multifamily | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,119 | 1,143 | 1,125 | 1,251 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 19 | 19 | 55 | 56 |
Impaired Financing Receivable, Average Recorded Investment | 1,119 | 1,143 | 1,125 | 1,251 |
Impaired Financing Receivable, Interest Income, Accrual Method | 19 | 19 | 55 | 56 |
Commercial Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 2,402 | 2,693 | 1,732 | 2,818 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 42 | 49 | 133 | 135 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 373 | 745 | 1,247 | 749 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 5 | 10 | 22 | 31 |
Impaired Financing Receivable, Average Recorded Investment | 2,775 | 3,438 | 2,979 | 3,567 |
Impaired Financing Receivable, Interest Income, Accrual Method | 47 | 59 | 155 | 166 |
Consumer Loan | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 90 | 97 | 92 | 99 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 2 | 2 | 6 | 6 |
Impaired Financing Receivable, Average Recorded Investment | 90 | 97 | 92 | 99 |
Impaired Financing Receivable, Interest Income, Accrual Method | $ 2 | 2 | $ 6 | 6 |
Construction Land Development | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 0 | 124 | ||
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 0 | 0 | ||
Impaired Financing Receivable, Average Recorded Investment | 0 | 124 | ||
Impaired Financing Receivable, Interest Income, Accrual Method | $ 0 | $ 0 |
Loans Receivable_ Troubled Debt
Loans Receivable: Troubled Debt Restructurings on Financing Receivables (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018USD ($)loan | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)loan | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Loan Restructuring, Trial Modifications, Amount | 1 | 1 | 2 | 8 | |
Financing Receivable, Modifications, Recorded Investment | $ 13,200,000 | $ 13,200,000 | $ 17,800,000 | ||
Troubled Debt Restructuring Commitment To Extend Additional Credit | 0 | $ 0 | 0 | $ 0 | |
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 0 | 0 | |||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 563,000 | 524,000 | 1,687,000 | 2,492,000 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 563,000 | $ 524,000 | $ 1,687,000 | $ 2,492,000 | |
Minimum [Member] | |||||
Troubled Debt Restructuring, Interest Rate Concession Period | 1 year | 1 year | 1 year | ||
Maximum [Member] | |||||
Troubled Debt Restructuring, Interest Rate Concession Period | 3 years | 3 years | 3 years | ||
Principal and Interest with Interest Rate Concession [Member] | |||||
Loan Restructuring, Trial Modifications, Amount | 1 | 8 | |||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 524,000 | $ 2,492,000 | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 524,000 | $ 2,492,000 | |||
Commercial Real Estate [Member] | Advancement of Maturity Date [Member] | |||||
Loan Restructuring, Trial Modifications, Amount | loan | 0 | 1 | |||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 0 | $ 1,124,000 | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 0 | $ 1,124,000 | |||
One to four family residential [Member] | Advancement of Maturity Date [Member] | |||||
Loan Restructuring, Trial Modifications, Amount | loan | 1 | 1 | |||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 563,000 | $ 563,000 | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 563,000 | $ 563,000 |
Other Real Estate Owned - Other
Other Real Estate Owned - Other Real Estate, Roll Forward (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Real Estate [Roll Forward] | ||||
Balance at beginning of period | $ 483,000 | $ 1,825,000 | $ 483,000 | $ 2,331,000 |
Proceeds from sales of OREO properties | 0 | 0 | 0 | 461,000 |
Gain on sale of OREO | 0 | 0 | 0 | 5,000 |
Market value adjustments | 0 | 0 | 0 | (50,000) |
Balance at end of period | $ 483,000 | $ 1,825,000 | $ 483,000 | $ 1,825,000 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)property | Sep. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Real Estate [Line Items] | ||||||||
Real estate properties sold | property | 0 | |||||||
Market value adjustments | $ 0 | $ 0 | $ 0 | $ 50,000 | ||||
Other real estate | 483,000 | $ 1,825,000 | 483,000 | $ 1,825,000 | $ 483,000 | $ 483,000 | $ 1,825,000 | $ 2,331,000 |
Real Estate Acquired Through Foreclosure | 325,000 | 325,000 | ||||||
Commercial Real Estate | ||||||||
Real Estate [Line Items] | ||||||||
Other real estate | $ 483,000 | $ 483,000 |
Fair Value (Details)
Fair Value (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Specific reserves on performing TDRs | $ 93,000 | $ 135,000 |
Loans Receivable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, option, methodology and assumptions | The fair value of impaired loans reflects the exit price and is calculated using the collateral value method or on a discounted cash flow basis. Inputs used in the collateral value method include appraised values, less estimated costs to sell. Some of these inputs may not be observable in the marketplace. |
Fair Value_ Schedule of Fair Va
Fair Value: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | $ 140,868 | $ 132,242 |
Derivative fair value asset | 2,454 | 1,526 |
Assets, Fair Value Disclosure, Recurring | 143,322 | 133,768 |
Mortgage-backed investments, Fannie Mae | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 25,334 | 26,564 |
Mortgage-backed investments, Freddie Mac | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 5,212 | 5,472 |
Mortgage-backed investments, Ginnie Mae | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 21,979 | 21,576 |
Mortgage backed investments Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 6,015 | |
Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 10,466 | 13,395 |
US Government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 48,718 | 42,633 |
Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 23,144 | 22,602 |
Derivative Financial Instruments, Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value asset | 2,454 | 1,526 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Derivative fair value asset | 0 | 0 |
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed investments, Fannie Mae | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed investments, Freddie Mac | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed investments, Ginnie Mae | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage backed investments Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | US Government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative Financial Instruments, Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value asset | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 140,868 | 132,242 |
Derivative fair value asset | 2,454 | 1,526 |
Assets, Fair Value Disclosure, Recurring | 143,322 | 133,768 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed investments, Fannie Mae | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 25,334 | 26,564 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed investments, Freddie Mac | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 5,212 | 5,472 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed investments, Ginnie Mae | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 21,979 | 21,576 |
Significant Other Observable Inputs (Level 2) | Mortgage backed investments Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 6,015 | |
Significant Other Observable Inputs (Level 2) | Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 10,466 | 13,395 |
Significant Other Observable Inputs (Level 2) | US Government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 48,718 | 42,633 |
Significant Other Observable Inputs (Level 2) | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 23,144 | 22,602 |
Significant Other Observable Inputs (Level 2) | Derivative Financial Instruments, Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value asset | 2,454 | 1,526 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Derivative fair value asset | 0 | 0 |
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mortgage-backed investments, Fannie Mae | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mortgage-backed investments, Freddie Mac | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mortgage-backed investments, Ginnie Mae | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mortgage backed investments Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 0 | |
Significant Unobservable Inputs (Level 3) | Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | US Government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Derivative Financial Instruments, Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value asset | $ 0 | $ 0 |
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 ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Derivative fair value asset | $ 2,454 | $ 1,526 | ||||||
Impaired loans (included in loans receivable, net) | 13,609 | [1] | 17,849 | [2] | ||||
OREO | 483 | $ 483 | 483 | $ 1,825 | $ 1,825 | $ 2,331 | ||
Total, Fair Value | 14,092 | 18,332 | ||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Derivative fair value asset | 0 | 0 | ||||||
Impaired loans (included in loans receivable, net) | 0 | [1] | 0 | [2] | ||||
OREO | 0 | 0 | ||||||
Total, Fair Value | 0 | 0 | ||||||
Significant Other Observable Inputs (Level 2) | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Derivative fair value asset | 2,454 | 1,526 | ||||||
Impaired loans (included in loans receivable, net) | 0 | [1] | 0 | [2] | ||||
OREO | 0 | 0 | ||||||
Total, Fair Value | 0 | 0 | ||||||
Significant Unobservable Inputs (Level 3) | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Derivative fair value asset | 0 | 0 | ||||||
Impaired loans (included in loans receivable, net) | 13,609 | [1] | 17,849 | [2] | ||||
OREO | 483 | 483 | ||||||
Total, Fair Value | $ 14,092 | $ 18,332 | ||||||
[1] | tal fair value of impaired loans is net of $93,000 of specific reserves on performing TDRs. Fair Value Measurements at December 31, 2017 Fair ValueMeasurements Quoted Prices inActive Marketsfor IdenticalAssets (Level 1) SignificantOtherObservableInputs (Level 2) SignificantUnobservableInputs(Level 3) (In thousands)Impaired loans (included in loans receivable, net) (1)$17,849 $— $— $17,849OREO 483 — — 483Total$18,332 $— $— $18,332 | |||||||
[2] | tal fair value of impaired loans is net of $135,000 of specific reserves on performing TDRs. |
Fair Value_ Schedule of quantit
Fair Value: Schedule of quantitative information about Level 3 Fair Value Measurements on a nonrecurring basis (Details) - Level 3 - Market Approach Valuation Technique - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Loans Receivable | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair Value | $ 13,609 | $ 17,849 |
Fair Value Measurements, Valuation Techniques | Market approach | Market approach |
Unobservable Input(s) | Appraised value discounted by market or borrower conditions | Appraised value discounted by market or borrower conditions |
Loans Receivable | Minimum | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair value of financial instruments, range | 0.00% | 0.00% |
Loans Receivable | Maximum | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair value of financial instruments, range | 0.00% | 0.00% |
Loans Receivable | Weighted Average | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair value of financial instruments, range | 0.00% | 0.00% |
Other Real Estate Owned | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair Value | $ 483 | $ 483 |
Fair Value Measurements, Valuation Techniques | Market approach | Market approach |
Unobservable Input(s) | Appraised value less selling costs | Appraised value less selling costs |
Other Real Estate Owned | Minimum | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair value of financial instruments, range | 0.00% | 0.00% |
Other Real Estate Owned | Maximum | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair value of financial instruments, range | 0.00% | 0.00% |
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_ Balance Sheet Group
Fair Value: Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments available-for-sale | $ 140,868 | $ 132,242 |
FHLB stock | 7,410 | 9,882 |
Derivative fair value asset | 2,454 | 1,526 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash on hand and in banks | 7,167 | 9,189 |
Interest-earning deposits with banks | 19,094 | 6,942 |
Investments available-for-sale | 0 | 0 |
Loans receivable, net | 0 | 0 |
FHLB stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative fair value asset | 0 | 0 |
Deposits | 440,265 | 430,750 |
Certificates of deposit, retail | 0 | 0 |
Certificates of deposit, brokered | 0 | 0 |
Advances from the FHLB | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash on hand and in banks | 0 | 0 |
Interest-earning deposits with banks | 0 | 0 |
Investments available-for-sale | 140,868 | 132,242 |
Loans receivable, net | 0 | 0 |
FHLB stock | 7,410 | 9,882 |
Accrued interest receivable | 4,664 | 4,084 |
Derivative fair value asset | 2,454 | 1,526 |
Deposits | 0 | 0 |
Certificates of deposit, retail | 370,948 | 331,199 |
Certificates of deposit, brokered | 101,812 | 74,947 |
Advances from the FHLB | 145,108 | 214,477 |
Accrued interest payable | 541 | 326 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash on hand and in banks | 0 | 0 |
Interest-earning deposits with banks | 0 | 0 |
Investments available-for-sale | 0 | 0 |
Loans receivable, net | 977,320 | 980,578 |
FHLB stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative fair value asset | 0 | 0 |
Deposits | 0 | 0 |
Certificates of deposit, retail | 0 | 0 |
Certificates of deposit, brokered | 0 | 0 |
Advances from the FHLB | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash on hand and in banks | 7,167 | 9,189 |
Interest-earning deposits with banks | 19,094 | 6,942 |
Investments available-for-sale | 140,868 | 132,242 |
Loans receivable, net | 995,557 | 988,662 |
FHLB stock | 7,410 | 9,882 |
Accrued interest receivable | 4,664 | 4,084 |
Derivative fair value asset | 2,454 | 1,526 |
Deposits | 440,265 | 430,750 |
Certificates of deposit, retail | 373,931 | 333,264 |
Certificates of deposit, brokered | 102,083 | 75,488 |
Advances from the FHLB | 149,000 | 216,000 |
Accrued interest payable | 541 | 326 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash on hand and in banks | 7,167 | 9,189 |
Interest-earning deposits with banks | 19,094 | 6,942 |
Investments available-for-sale | 140,868 | 132,242 |
Loans receivable, net | 977,320 | 980,578 |
FHLB stock | 7,410 | 9,882 |
Accrued interest receivable | 4,664 | 4,084 |
Derivative fair value asset | 2,454 | 1,526 |
Deposits | 440,265 | 430,750 |
Certificates of deposit, retail | 370,948 | 331,199 |
Certificates of deposit, brokered | 101,812 | 74,947 |
Advances from the FHLB | 145,108 | 214,477 |
Accrued interest payable | $ 541 | $ 326 |
Derivatives (Details)
Derivatives (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Derivative [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ 70,000 | $ 125,000 | $ 1,900,000 |
Derivative fair value asset | 2,454,000 | 1,526,000 | 2,454,000 |
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | 0 | ||
FHLB of Des Moines [Member] | |||
Derivative [Line Items] | |||
Debt Instrument, Face Amount | 50,000,000 | 50,000,000 | |
Cash Flow Hedging [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 50,000,000 | 50,000,000 | |
Derivative fair value asset | $ 2,454,000 | $ 1,526,000 | $ 2,454,000 |
Derivative, Fixed Interest Rate | 1.34% | 1.34% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | $ 130,000 | $ 104,000 | $ 539,000 | $ 505,000 | ||
Tax benefit from compensation expense | $ 27,000 | $ 36,000 | $ 113,000 | $ 177,000 | ||
Grants in period | 0 | |||||
First Financial Northwest Inc 2016 Equity Incentive Plan | Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized | 1,400,000 | 1,400,000 | ||||
Available for grant (shares) | 1,290,670 | 1,290,670 | ||||
Expiration period | 10 years | |||||
First Financial Northwest Inc 2016 Equity Incentive Plan | Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized | 400,000 | 400,000 | ||||
Available for grant (shares) | 345,335 | 345,335 | ||||
First Financial Northwest, Inc. 2008 Equity Incentive Plan | Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 5 years | |||||
Percentage of options vesting per year | 20.00% | |||||
Expiration period | 10 years | |||||
Compensation cost not yet recognized | $ 144,000 | $ 144,000 | ||||
Compensation cost not yet recognized, weighted average vesting period | 1 year 6 months 20 days | |||||
First Financial Northwest, Inc. 2008 Equity Incentive Plan | Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 5 years | |||||
Percentage of options vesting per year | 20.00% | |||||
Compensation cost not yet recognized | $ 138,000 | $ 138,000 | ||||
Compensation cost not yet recognized, weighted average vesting period | 5 months | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 20,987 | 20,987 | 25,987 | 5,000 | ||
Granted, Shares | 0 | 30,179 | ||||
Expected to vest in 2018 | First Financial Northwest, Inc. 2008 Equity Incentive Plan | Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 0 | 0 | ||||
Expected to vest and be available for exercise | First Financial Northwest, Inc. 2008 Equity Incentive Plan | Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted, Shares | 43,000 | |||||
Expected to exercise at March 31 2018 | First Financial Northwest, Inc. 2008 Equity Incentive Plan | Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted, Shares | 272,000 |
Stock-Based Compensation Disclo
Stock-Based Compensation Disclosure of Share-based Compensation Arrangements by Share-based Payment Award (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | Sep. 30, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding Beginning Balance, Shares | 315,000 | 452,940 |
Exercised, Shares | 0 | (137,940) |
Outstanding Ending Balance, Shares | 315,000 | 315,000 |
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 | $ 10.34 | $ 10.21 |
Exercised, Weighted Average Exercise Price | $ / shares | 9.90 | |
Outstanding Ending Balance, Weighted Average Exercise Price | $ / shares | $ 10.34 | $ 10.34 |
Share-based Compensations Arrangement by Share-based Payment Award, Options Outstanding, Weighted Average Remaining Contractual Term [Roll Forward] | ||
Outstanding Beginning Balance, Weighted Average Remaining Contractual Term | 5 years 2 months 27 days | 5 years 2 months 27 days |
Outstanding Ending Balance, Weighted Average Remaining Contractual Term | 5 years 2 months 27 days | 5 years 2 months 27 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options Outstanding, Aggregate Intrinsic [Roll Forward] | ||
Outstanding Beginning Balance, Aggregate Intrinsic Value | $ | $ 2,891,350 | $ 2,402,096 |
Exercised, Aggregate Intrinsic Value | $ | 1,112,026 | |
Outstanding Ending Balance, Aggregate Intrinsic Value | $ | $ 1,962,100 | $ 1,962,100 |
Share Based Compensation, Stock Option Plan, Additional Disclosures [Abstract] | ||
Expected to Vest, Shares | 313,710 | 313,710 |
Expected to Vest, Weighted Average Exercise Price | $ / shares | $ 10.33 | $ 10.33 |
Expected to Vest, Weighted Average Remaining Contractual Term in Years | 5 years 2 months 24 days | 5 years 2 months 23 days |
Expected to Vest, Aggregate Intrinsic Value | $ | $ 1,956,260 | $ 1,956,260 |
Exercisable at end of period, Shares | 272,000 | 272,000 |
Exercisable at end of period, Weighted Average Exercise Price | $ / shares | 10.07 | 10.07 |
Exercisable at end of period, Weighted Average Remaining Contractual Term in Years | 5 years 7 days | 5 years 7 days |
Exercisable at end of period, Aggregate Intrinsic Value | $ | $ 1,767,430 | $ 1,767,430 |
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 | 25,987 | 5,000 |
Granted, Shares | 0 | 30,179 |
Vested, Shares | 5,000 | 14,192 |
Nonvested Ending Balance | 20,987 | 20,987 |
Expected to vest assuming a 3% forfeiture rate over the vesting term, Shares | 20,357 | 20,357 |
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 | $ 14.93 | $ 10.88 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 0 | 17.14 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 10.88 | 16.77 |
Nonvested Ending Balance, Weighted-Average Grant Date Fair Value | $ / shares | $ 15.90 | $ 15.90 |
Expected to vest assuming a 3% forfeiture rate over the vesting term | 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 Ending Balance | 0 | 0 |
Expected to vest assuming a 3% forfeiture rate over the vesting term, Shares | 20,357 | 20,357 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Nonvested Ending Balance, Weighted-Average Grant Date Fair Value | $ / shares | $ 15.90 | $ 15.90 |
Earnings Per Share_ Schedule _2
Earnings Per Share: Schedule of Earnings Per Share Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 2,792 | $ 1,861 | $ 12,736 | $ 6,073 |
Less: Earnings allocated to participating securities | (5) | (2) | (24) | (6) |
Earnings allocated to common shareholders | $ 2,787 | $ 1,859 | $ 12,712 | $ 6,067 |
Basic weighted average common shares outstanding | 10,356,994 | 10,287,663 | 10,280,287 | 10,323,459 |
Dilutive stock options | 101,350 | 126,044 | 117,645 | 142,755 |
Dilutive restricted stock grants | 10,458 | 13,331 | 7,383 | 13,847 |
Diluted weighted average common shares outstanding | 10,468,802 | 10,427,038 | 10,405,315 | 10,480,061 |
Basic earnings (loss) per share (in dollars per share) | $ 0.27 | $ 0.18 | $ 1.24 | $ 0.59 |
Diluted earnings (loss) per share (in dollars per share) | $ 0.27 | $ 0.18 | $ 1.22 | $ 0.58 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 0 | 0 | 0 |
Branch Acquisition (Narrative)
Branch Acquisition (Narrative) (Details) - USD ($) | Aug. 25, 2017 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 889,000 | $ 889,000 | $ 889,000 | ||
Acquisition related costs | $ 0 | $ 6,000 | $ 222,000 | ||
Opus Bank [Member] | |||||
Business Acquisition [Line Items] | |||||
Retail deposits | $ 74,700,000 | ||||
Deposit premium rate | 3.125% | ||||
Deposit premium, amount | $ 2,500,000 | ||||
Fair Value of The Branch Owned | 488,000 | ||||
Fixed assets | 56,000 | ||||
Adjustments at Closing Date | 14,000 | ||||
Cash payment to acquire business | 71,600,000 | ||||
Core Deposits Intangible [Member] | Opus Bank [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-lived Intangible Assets Acquired | 1,300,000 | ||||
Goodwill | $ 889,000 |
Branch Acquisition (Pro Forma I
Branch Acquisition (Pro Forma Information) (Details) - Opus Bank [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Total revenues (net interest income plus noninterest income) | $ 9,954 | $ 28,845 |
Net income | $ 1,514 | $ 4,976 |
Earnings per share - basic | $ 0.15 | $ 0.48 |
Earnings per share - diluted | $ 0.14 | $ 0.47 |
Branch Acquisition (Noninterest
Branch Acquisition (Noninterest Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Business Acquisition [Line Items] | ||||
Salaries and employee benefits | $ 4,732 | $ 4,406 | $ 14,325 | $ 13,100 |
Occupancy and equipment | 814 | 726 | 2,412 | 1,785 |
Information Technology and Data Processing | 356 | 372 | 1,031 | 1,131 |
Marketing | 85 | 102 | 269 | 202 |
Other general and administrative | 639 | 551 | 1,805 | 1,497 |
Total noninterest expense | 7,201 | $ 6,836 | 21,715 | $ 19,740 |
Opus Bank [Member] | ||||
Business Acquisition [Line Items] | ||||
Salaries and employee benefits | 251 | 792 | ||
Occupancy and equipment | 91 | 309 | ||
Information Technology and Data Processing | 1 | 1 | ||
Marketing | 7 | 23 | ||
Other general and administrative | 15 | 58 | ||
Total noninterest expense | $ 365 | $ 1,183 |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Net gain (loss) on sale of investments | $ 1,000 | $ 47,000 | $ (20,000) | $ 103,000 |
Revenue from Contract with Customer, Excluding Assessed Tax | 841,000 | 731,000 | 2,150,000 | 1,997,000 |
BOLI change in cash surrender value (1) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 245,000 | 173,000 | 718,000 | 490,000 |
Wealth management revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 145,000 | 252,000 | 400,000 | 699,000 |
Deposit related fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 63,000 | 56,000 | 197,000 | 155,000 |
Debit card and ATM fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 104,000 | 57,000 | 306,000 | 122,000 |
Loan related fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 163,000 | 61,000 | 353,000 | 215,000 |
Loan interest swap fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 110,000 | 83,000 | 180,000 | 205,000 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 10,000 | $ 2,000 | $ 16,000 | $ 8,000 |
Revenue Recognition (Details)
Revenue Recognition (Details) | Sep. 30, 2018USD ($) |
Revenue from Contract with Customer [Abstract] | |
Contract Liability | $ 0 |
Performance Obligation | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] shares in Thousands | Oct. 25, 2018$ / sharesshares |
Subsequent Event [Line Items] | |
Dividend declared (usd per share) | $ / shares | $ 0.08 |
Percentage of authorized shares | 5.00% |
Number of authorized shares (in shares) | shares | 550 |