Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 07, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | First Financial Northwest, Inc. | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Entity Central Index Key | 0001401564 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 10,375,325 | |
Entity Filer Category | Accelerated Filer | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
FIRST FINANCIAL NORTHWEST, INC.
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash on hand and in banks | $ 9,366,000 | $ 8,122,000 |
Interest-earning deposits with banks | 14,596,000 | 8,888,000 |
Investments available-for-sale, at fair value | 138,658,000 | 142,170,000 |
Loans receivable, net of allowance of $13,808 and $13,347 | 1,051,711,000 | 1,022,904,000 |
Federal Home Loan Bank (FHLB) stock, at cost | 8,041,000 | 7,310,000 |
Accrued interest receivable | 4,861,000 | 4,068,000 |
Deferred tax assets, net | 1,728,000 | 1,844,000 |
Other real estate owned (OREO) | 454,000 | 483,000 |
Premises and equipment, net | 21,370,000 | 21,331,000 |
Bank owned life insurance (BOLI), net | 30,162,000 | 29,841,000 |
Prepaid expenses and other assets | 4,947,000 | 3,458,000 |
Goodwill | 889,000 | 889,000 |
Core deposit intangible | 1,079,000 | 1,116,000 |
Total assets | 1,287,862,000 | 1,252,424,000 |
Liabilities and Stockholders' Equity | ||
Noninterest-bearing deposits | 46,026,000 | 46,108,000 |
Interest-bearing deposits | 909,246,000 | 892,924,000 |
Total deposits | 955,272,000 | 939,032,000 |
FHLB advances | 163,500,000 | 146,500,000 |
Advance payments from borrowers for taxes and insurance | 5,374,000 | 2,933,000 |
Accrued interest payable | 478,000 | 478,000 |
Other liabilities | 11,554,000 | 9,743,000 |
Total liabilities | 1,136,178,000 | 1,098,686,000 |
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 10,457,625 shares at March 31, 2019, and 10,710,656 shares at December 31, 2018 | 104,000 | 107,000 |
Additional paid-in capital | 89,800,000 | 93,773,000 |
Retained earnings | 67,568,000 | 66,343,000 |
Accumulated other comprehensive loss, net of tax | (1,838,000) | (2,253,000) |
Unearned Employee Stock Ownership Plan (ESOP) shares | (3,950,000) | (4,232,000) |
Total stockholders' equity | 151,684,000 | 153,738,000 |
Total liabilities and stockholders' equity | $ 1,287,862,000 | $ 1,252,424,000 |
FIRST FINANCIAL NORTHWEST, IN_2
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Loans receivable allowance for loan losses | $ 13,808 | $ 13,347 |
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) | 10,457,625 | 10,710,656 |
Common stock shares outstanding (in shares) | 10,457,625 | 10,710,656 |
FIRST FINANCIAL NORTHWEST, IN_3
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest income | ||
Loans, including fees | $ 13,281,000 | $ 13,042,000 |
Investments available-for-sale | 1,159,000 | 929,000 |
Interest-earning deposits with banks | 40,000 | 38,000 |
Dividends on FHLB stock | 91,000 | 104,000 |
Total interest income | 14,571,000 | 14,113,000 |
Interest expense | ||
Deposits | 3,822,000 | 2,276,000 |
FHLB advances and other borrowings | 897,000 | 853,000 |
Total interest expense | 4,719,000 | 3,129,000 |
Net interest income | 9,852,000 | 10,984,000 |
Provision (recapture of provision) for loan losses | 400,000 | (4,000,000) |
Net interest income after provision (recapture of provision) for loan losses | 9,452,000 | 14,984,000 |
Noninterest income | ||
Net loss on sale of investments | (8,000) | 0 |
BOLI income | 269,000 | 249,000 |
Wealth management revenue | 196,000 | 99,000 |
Deposit Fees | 171,000 | 161,000 |
Loan related fees | 63,000 | 134,000 |
Other | 9,000 | 3,000 |
Total noninterest income | 700,000 | 646,000 |
Noninterest expense | ||
Salaries and employee benefits | 5,000,000 | 4,662,000 |
Occupancy and equipment | 866,000 | 769,000 |
Professional fees | 496,000 | 328,000 |
Data processing | 518,000 | 324,000 |
OREO related expenses, net | 31,000 | 1,000 |
Regulatory assessments | 137,000 | 155,000 |
Insurance and bond premiums | 105,000 | 106,000 |
Marketing | 86,000 | 107,000 |
Other general and administrative | 470,000 | 575,000 |
Total noninterest expense | 7,709,000 | 7,027,000 |
Income before federal income tax provision | 2,443,000 | 8,603,000 |
Federal income tax provision | 498,000 | 1,761,000 |
Net income | $ 1,945,000 | $ 6,842,000 |
Earnings per common share | ||
Basic earnings per share (in dollars per share) | $ 0.19 | $ 0.67 |
Diluted earnings per share (in dollars per share) | $ 0.19 | $ 0.66 |
Weighted average number of common shares outstanding | ||
Basic shares outstanding (in shares) | 10,118,286 | 10,210,828 |
Diluted shares outstanding (in shares) | 10,220,900 | 10,336,566 |
FIRST FINANCIAL NORTHWEST, IN_4
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,945 | $ 6,842 |
Other comprehensive income, before tax: | ||
Unrealized holding gain (loss) on investments available-for-sale | 976 | (1,473) |
Tax (provision) benefit | (205) | 309 |
Reclassification adjustment for net losses realized in income | 8 | 0 |
Tax provision | (1) | 0 |
(Loss) gain on cash flow hedge | (460) | 663 |
Tax benefit (provision) | 97 | (139) |
Other comprehensive income (loss), net of tax | 415 | (640) |
Total comprehensive income | $ 2,360 | $ 6,202 |
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, 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 | 6,842 | 6,842 | ||||
Other comprehensive income | $ (640) | (640) | ||||
Exercise of stock options (in shares) | 10,000 | |||||
Exercise of stock options | $ 98 | 0 | 98 | |||
Issuance of common stock - restricted stock awards, net | 20,987 | |||||
Issuance of common stock - restricted stock awards, net | $ 1 | 1 | 0 | |||
Compensation related to stock options and restricted stock awards | 83 | 83 | ||||
Allocation of ESOP shares | 454 | 173 | 281 | |||
Cash dividend declared and paid | (717) | 717 | ||||
Balances at end of period at Mar. 31, 2018 | $ 148,755 | 108 | 94,527 | 60,767 | (1,568) | (5,079) |
Balances at end of period (in shares) at Mar. 31, 2018 | 10,779,424 | |||||
Balances at beginning of period (in shares) at Dec. 31, 2018 | 10,710,656 | |||||
Balances at beginning of period at Dec. 31, 2018 | $ 153,738 | 107 | 93,773 | 66,343 | (2,253) | (4,232) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,945 | 1,945 | ||||
Other comprehensive income | $ 415 | 415 | ||||
Issuance of common stock - restricted stock awards, net | 16,698 | |||||
Issuance of common stock - restricted stock awards, net | $ (93) | 0 | (93) | |||
Compensation related to stock options and restricted stock awards | 124 | 124 | ||||
Allocation of ESOP shares | $ 445 | 163 | 282 | |||
Repurchase and retirement of common stock (in shares) | (263,800) | |||||
Repurchase and retirement of common stock | $ 4,170 | 3 | 4,167 | 0 | 0 | 0 |
Canceled common stock - restricted stock awards (in shares) | (5,929) | |||||
Cash dividend declared and paid | $ (807) | (807) | ||||
Balances at end of period at Mar. 31, 2019 | $ 151,684 | $ 104 | $ 89,800 | $ 67,568 | $ (1,838) | $ (3,950) |
Balances at end of period (in shares) at Mar. 31, 2019 | 10,457,625 |
FIRST FINANCIAL NORTHWEST, IN_6
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMETNS OF STOCKHOLDERS' EQUITY (PARENTHETICALS) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.08 | $ 0.07 |
Allocated shares | 28,213 |
FIRST FINANCIAL NORTHWEST, IN_7
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Net income | $ 1,945,000 | $ 6,842,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision (recapture of provision) for loan losses | 400,000 | (4,000,000) |
OREO market value adjustments | 29,000 | 0 |
Net amortization of premiums and discounts on investments | 193,000 | 274,000 |
Loss on sale of investments available-for-sale | 8,000 | 0 |
Depreciation of premises and equipment | 427,000 | 401,000 |
Deferred federal income taxes | 7,000 | 19,000 |
Allocation of ESOP shares | 445,000 | 454,000 |
Stock compensation expense | 124,000 | 84,000 |
Increase in cash surrender value of BOLI | (269,000) | (249,000) |
Changes in operating assets and liabilities: | ||
(Increase) decrease in prepaid expenses and other assets | (1,912,000) | 2,517,000 |
Net increase in advance payments from borrowers for taxes and insurance | 2,441,000 | 1,963,000 |
(Increase) decrease in accrued interest receivable | (793,000) | 103,000 |
Increase (decrease) in accrued interest payable | 0 | (56,000) |
Increase in other liabilities | 1,898,000 | 374,000 |
Net cash provided by operating activities | 4,943,000 | 8,726,000 |
Cash flows from investing activities: | ||
Proceeds from sales, calls and maturities of investments available-for-sale | 2,995,000 | 2,000,000 |
Principal repayments on investments available-for-sale | 1,300,000 | 1,601,000 |
Purchases of investments available-for-sale | 0 | (15,978,000) |
Net (increase) decrease in loans receivable | (29,207,000) | 1,524,000 |
(Purchase) redemption of FHLB stock | (731,000) | 432,000 |
Purchase of premises and equipment | (466,000) | (995,000) |
Purchase of BOLI | (52,000) | 0 |
Net cash used by investing activities | (26,161,000) | (11,416,000) |
Cash flows from financing activities: | ||
Net increase in deposits | 16,240,000 | 23,727,000 |
Advances from the FHLB | 71,500,000 | 140,000,000 |
Repayments of advances from the FHLB | (54,500,000) | (156,000,000) |
Proceeds from stock options exercises | 0 | 98,000 |
Net share settlement of stock awards | (93,000) | 0 |
Repurchase and retirement of common stock | (4,170,000) | 0 |
Dividends paid | (807,000) | (717,000) |
Net cash provided by financing activities | 28,170,000 | 7,108,000 |
Cash and cash equivalents: | ||
Net decrease in cash and cash equivalents | 6,952,000 | 4,418,000 |
Cash and cash equivalents at beginning of period | 17,010,000 | 16,131,000 |
Cash and cash equivalents at end of period | 23,962,000 | 20,549,000 |
Cash paid during the period for: | ||
Interest paid | 4,719,000 | 3,185,000 |
Noncash transactions: | ||
Change in unrealized loss on investments available-for-sale | 984,000 | (1,473,000) |
Change in gain on cash flow hedge | $ (460,000) | $ 663,000 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2019 | |
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”). At March 31, 2019, First Financial Northwest Bank operated in eleven locations in Washington with the headquarters and six branch locations in King County and five branch locations in Snohomish County. 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 Kirkland, Washington, which is expected to open later in 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 | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 , as filed with the SEC (“2018 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 three months ended March 31, 2019 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . 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, the right-of-use asset and lease liability on our operating leases, 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 | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Recent Accounting Pronouncements Adopted in 2019 In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. In March 2019, FASB issued ASU 2019-01, Leases (Topic 842), Codification Improvements. Under these ASUs, 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 Company adopted this ASU on January 1, 2019 and according to ASU 2018-11, elected to recognize the related cumulative-effect adjustment as an adjustment to the opening balance of retained earnings. Adoption of ASU 2016-02 resulted in the addition of a right-of-use asset and lease related to certain banking offices under noncancelable operating lease agreements. The resulting increase did not to have a material impact on the Company’s consolidated financial statements or regulatory capital ratios. For more information see Note 8 ‑ Leases in this report. 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 Company adopted this ASU during the quarter ended March 31, 2019 with no material impact on the Company's consolidated financial statements. Recent Accounting Pronouncements 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 and industry 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 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 | 3 Months Ended |
Mar. 31, 2019 | |
Investments [Abstract] | |
Investments | Investments Investments available-for-sale are summarized as follows at the dates indicated: March 31, 2019 Amortized Gross Gross Fair Value (In thousands) Mortgage-backed investments: Fannie Mae $ 23,967 $ 89 $ (370 ) $ 23,686 Freddie Mac 6,310 27 (18 ) 6,319 Ginnie Mae 23,053 10 (1,050 ) 22,013 Other 8,925 47 (19 ) 8,953 Municipal bonds 7,619 169 (21 ) 7,767 U.S. Government agencies 47,355 72 (820 ) 46,607 Corporate bonds 23,491 323 (501 ) 23,313 Total $ 140,720 $ 737 $ (2,799 ) $ 138,658 December 31, 2018 Amortized Gross Gross Fair Value (In thousands) Mortgage-backed investments: Fannie Mae $ 24,276 $ 24 $ (657 ) $ 23,643 Freddie Mac 6,351 10 (74 ) 6,287 Ginnie Mae 23,311 — (1,250 ) 22,061 Other 8,983 17 (21 ) 8,979 Municipal bonds 10,615 49 (120 ) 10,544 U.S. Government agencies 48,190 73 (825 ) 47,438 Corporate bonds 23,490 399 (671 ) 23,218 Total $ 145,216 $ 572 $ (3,618 ) $ 142,170 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: March 31, 2019 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 $ — $ — $ 15,338 $ (370 ) $ 15,338 $ (370 ) Freddie Mac — — 3,203 (18 ) 3,203 (18 ) Ginnie Mae — — 19,135 (1,050 ) 19,135 (1,050 ) Other 6,008 (19 ) — — 6,008 (19 ) Municipal bonds — — 987 (21 ) 987 (21 ) U.S. Government agencies 9,661 (114 ) 30,381 (706 ) 40,042 (820 ) Corporate bonds — — 6,999 (501 ) 6,999 (501 ) Total $ 15,669 $ (133 ) $ 76,043 $ (2,666 ) $ 91,712 $ (2,799 ) December 31, 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 $ 5,480 $ (32 ) $ 16,721 $ (625 ) $ 22,201 $ (657 ) Freddie Mac 1,994 (23 ) 3,185 (51 ) 5,179 (74 ) Ginnie Mae 2,867 (8 ) 19,194 (1,242 ) 22,061 (1,250 ) Other 6,008 (21 ) — — 6,008 (21 ) Municipal bonds 4,161 (46 ) 934 (74 ) 5,095 (120 ) U.S. Government agencies 5,985 (13 ) 30,779 (812 ) 36,764 (825 ) Corporate bonds — — 6,828 (671 ) 6,828 (671 ) Total $ 26,495 $ (143 ) $ 77,641 $ (3,475 ) $ 104,136 $ (3,618 ) 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 March 31, 2019 , and December 31, 2018 , the Company had 37 securities and 51 securities in an unrealized loss position, respectively, with 31 of these securities in an unrealized loss position for 12 months or more at both dates. Management does not believe that any individual unrealized loss as of March 31, 2019 , or December 31, 2018 , 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 March 31, 2019, and December 31, 2018, and determined that an OTTI charge was not warranted. The amortized cost and estimated fair value of investments available-for-sale at March 31, 2019 , 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. March 31, 2019 Amortized Cost Fair Value (In thousands) Due within one year $ 251 $ 250 Due after one year through five years 7,328 7,481 Due after five years through ten years 19,291 19,000 Due after ten years 51,595 50,956 78,465 77,687 Mortgage-backed investments 62,255 60,971 Total $ 140,720 $ 138,658 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 $15.7 million and $15.6 million were pledged as collateral for public deposits at March 31, 2019 , and December 31, 2018 , respectively, both of which exceeded the collateral requirements established by the Washington Public Deposit Protection Commission. For the three months ended March 31, 2019 , we had calls and sales on investment securities of $3.0 million , generating a net loss of $8,000 . For the three months ended March 31, 2018 , we had a maturity on one investment security of $2.0 million generating no gain or loss. |
Loans Receivable
Loans Receivable | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Loans Receivable | Loans Receivable Loans receivable are summarized as follows at the dates indicated: March 31, 2019 December 31, 2018 (In thousands) One-to-four family residential: Permanent owner occupied $ 194,648 $ 194,141 Permanent non-owner occupied 156,684 147,825 351,332 341,966 Multifamily 167,843 169,355 Commercial real estate 384,686 373,819 Construction/land: One-to-four family residential 84,191 86,604 Multifamily 87,748 83,642 Commercial 22,400 18,300 Land 6,965 6,740 201,304 195,286 Business 33,513 30,486 Consumer 14,336 12,970 Total loans 1,153,014 1,123,882 Less: Loans in process ("LIP") (1) 86,794 86,453 Deferred loan fees, net 701 1,178 Allowance for loan and lease losses ("ALLL") 13,808 13,347 Loans receivable, net $ 1,051,711 $ 1,022,904 _______________ (1) LIP is the amount of committed but undisbursed funds on construction loans. At March 31, 2019 , loans totaling $480.7 million were pledged to secure borrowings from the FHLB of Des Moines compared to $471.4 million at December 31, 2018 . Credit Quality Indicators . The Company assigns a risk rating to all credit exposures based on a risk rating system designed to define the basic characteristics and identified risk elements of each credit extension. The Company utilizes a nine‑point risk rating system. A description of the general characteristics of the risk grades is as follows: • Grades 1 through 5: These grades are considered to be “pass” credits. These include assets where there is virtually no credit risk, such as cash secured loans with funds on deposit with the Bank. Pass credits also include credits that are on the Company’s watch list, where the borrower exhibits potential weaknesses, which may, if not checked or corrected, negatively affect the borrower’s financial capacity and threaten their ability to fulfill debt obligations in the future. • Grade 6: These credits, classified as “special mention”, 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. If left uncorrected, these potential weaknesses may result in deterioration in the Company’s credit position at a future date. • Grade 7: These credits, classified as “substandard”, present a distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. These credits have well defined weaknesses which jeopardize the orderly liquidation of the debt and are inadequately protected by the current net worth and payment capacity of the borrower or of any collateral pledged. • Grade 8: These credits are classified as “doubtful” and possess well defined weaknesses which make the full collection or liquidation of the loan highly questionable and improbable. This classification is used where significant risk exposures are perceived but the exact amount of the loss cannot yet be determined due to pending events. • Grade 9: Assets classified as “loss” are considered uncollectible and cannot be justified as a viable asset for the Company. There is little or no prospect of near term recovery and no realistic strengthening action of significance is pending. As of March 31, 2019, and December 31, 2018, the Company had no loans rated as doubtful or loss. The following tables represent a summary of loans at March 31, 2019, and December 31, 2018 by type and risk category: March 31, 2019 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (1) (In thousands) Risk Rating: Pass $ 349,894 $ 167,843 $ 384,149 $ 112,380 $ 33,513 $ 14,292 $ 1,062,071 Special mention 795 — 537 2,130 — — 3,462 Substandard 643 — — — — 44 687 Total loans $ 351,332 $ 167,843 $ 384,686 $ 114,510 $ 33,513 $ 14,336 $ 1,066,220 _______________ (1) Net of LIP. December 31, 2018 One-to-Four Family Residential Multifamily Commercial Real Estate Construction/ Land Business Consumer Total (1) (In thousands) Risk Rating: Pass $ 339,310 $ 169,355 $ 372,690 $ 108,854 $ 30,486 $ 12,926 $ 1,033,621 Special mention 1,737 — 782 — — — 2,519 Substandard 919 — 326 — — 44 1,289 Total loans $ 341,966 $ 169,355 $ 373,798 $ 108,854 $ 30,486 $ 12,970 $ 1,037,429 _______________ (1) Net of LIP. ALLL . When the Company classifies problem assets as either substandard or doubtful, pursuant to Federal regulations, it may establish a specific reserve in an amount deemed prudent to address the risk specifically or may allow the loss to be addressed in the general allowance. General allowances represent loss allowances which have been established to recognize the inherent risk associated with lending activities, but which, unlike specific allowances, have not been specifically allocated to the particular problem assets. When an insured institution classifies problem assets as a loss, pursuant to Federal regulations, it is required to charge-off such assets in the period in which they are deemed uncollectible. The determination as to the classification of the Company’s assets and the amount of valuation allowances is subject to review by bank regulators, who can require the establishment of additional loss allowances. Loan grades are used by the Company to identify and track potential problem loans which do not rise to the levels described for substandard, doubtful, or loss. The grades for watch and special mention are assigned to loans which have been criticized based upon known characteristics such as periodic payment delinquency or stale financial information from the borrower and/or guarantors. Loans identified as criticized (watch and special mention) or classified (substandard, doubtful or loss) are subject to problem loan reporting every three months. The following tables summarize changes in the ALLL and loan portfolio by loan type and impairment method at the dates and for the periods shown: At or For the Three Months Ended March 31, 2019 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (In thousands) ALLL: Beginning balance $ 3,387 $ 1,680 $ 4,777 $ 2,331 $ 936 $ 236 $ 13,347 Charge-offs — — — — — — — Recoveries 24 — — — — 37 61 (Recapture) provision (379 ) (101 ) 32 801 94 (47 ) 400 Ending balance $ 3,032 $ 1,579 $ 4,809 $ 3,132 $ 1,030 $ 226 $ 13,808 ALLL by category: General reserve $ 2,982 $ 1,579 $ 4,809 $ 3,132 $ 1,030 $ 226 $ 13,758 Specific reserve 50 — — — — — 50 Loans: (1) Total loans $ 351,332 $ 167,843 $ 384,686 $ 114,510 $ 33,513 $ 14,336 $ 1,066,220 Loans collectively evaluated for impairment (2) 345,569 167,843 382,530 114,510 33,513 14,292 1,058,257 Loans individually evaluated for impairment (3) 5,763 — 2,156 — — 44 7,963 ____________ (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 March 31, 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 Charge-offs — — — — — — — Recoveries 4,240 — 14 — — — 4,254 (Recapture) provision (3,840 ) 64 58 (362 ) 46 34 (4,000 ) Ending balance $ 3,237 $ 1,884 $ 4,490 $ 2,454 $ 740 $ 331 $ 13,136 ALLL by category: General reserve $ 3,168 $ 1,884 $ 4,464 $ 2,454 $ 740 $ 331 $ 13,041 Specific reserve 69 — 26 — — — 95 Loans: (1) Total loans $ 295,895 $ 190,392 $ 366,231 $ 117,554 $ 24,237 $ 11,131 $ 1,005,440 Loans collectively evaluated for impairment (2) 283,866 189,264 363,059 117,554 24,237 11,038 989,018 Loans individually evaluated for impairment (3) 12,029 1,128 3,172 — — 93 16,422 _____________ (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 March 31, 2019 , past due loans were 0.03% of total loans receivable, net of LIP. In comparison, past due loans were 0.08% of total loans receivable, net of LIP at December 31, 2018 . The following tables represent a summary of the aging of loans by type at the dates indicated: Loans Past Due as of March 31, 2019 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 $ 107 $ — $ — $ 107 $ 194,541 $ 194,648 Non-owner occupied 166 — — 166 156,518 156,684 Multifamily — — — — 167,843 167,843 Commercial real estate — — — — 384,686 384,686 Construction/land — — — — 114,510 114,510 Total real estate 273 — — 273 1,018,098 1,018,371 Business — — — — 33,513 33,513 Consumer 44 — — 44 14,292 14,336 Total loans $ 317 $ — $ — $ 317 $ 1,065,903 $ 1,066,220 ________________ (1) There were no loans 90 days and greater past due and still accruing interest at March 31, 2019 . (2) Net of LIP. Loans Past Due as of December 31, 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 $ 223 $ — $ 272 $ 495 $ 193,646 $ 194,141 Non-owner occupied — — — — 147,825 147,825 Multifamily — — — — 169,355 169,355 Commercial real estate — — 326 326 373,472 373,798 Construction/land — — — — 108,854 108,854 Total real estate 223 — 598 821 993,152 993,973 Business — — — — 30,486 30,486 Consumer — — — — 12,970 12,970 Total loans $ 223 $ — $ 598 $ 821 $ 1,036,608 $ 1,037,429 _________________ (1) There were no loans 90 days and greater past due and still accruing interest at December 31, 2018 . (2) Net of LIP. Nonaccrual Loans. The following table is a summary of nonaccrual loans by loan type at the dates indicated: March 31, 2019 December 31, 2018 (In thousands) One-to-four family residential $ 107 $ 382 Commercial real estate — 326 Consumer 44 44 Total nonaccrual loans $ 151 $ 752 During the three months ended March 31, 2019 , interest income that would have been recognized had these nonaccrual loans been performing in accordance with their original terms was $6,000 . For the three months ended March 31, 2018 , foregone interest on nonaccrual loans was $6,000 . The following tables summarize the loan portfolio by type and payment status at the dates indicated: March 31, 2019 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (1) (In thousands) Performing (2) $ 351,225 $ 167,843 $ 384,686 $ 114,510 $ 33,513 $ 14,292 $ 1,066,069 Nonperforming (3) 107 — — — — 44 151 Total loans $ 351,332 $ 167,843 $ 384,686 $ 114,510 $ 33,513 $ 14,336 $ 1,066,220 _____________ (1) Net of LIP. (2) There were $194.5 million of owner-occupied one-to-four family residential loans and $156.7 million of non-owner occupied one-to-four family residential loans classified as performing. (3) The $107,000 one-to-four family residential loan classified as nonperforming is owner-occupied. December 31, 2018 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (1) (In thousands) Performing (2) $ 341,584 $ 169,355 $ 373,472 $ 108,854 $ 30,486 $ 12,926 $ 1,036,677 Nonperforming (3) 382 — 326 — — 44 752 Total loans $ 341,966 $ 169,355 $ 373,798 $ 108,854 $ 30,486 $ 12,970 $ 1,037,429 _____________ (1) Net of LIP. (2) There were $193.8 million of owner-occupied one-to-four family residential loans and $147.8 million of non-owner occupied one-to-four family residential loans classified as performing. (3) The $382,000 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 March 31, 2019 , or December 31, 2018 . The following tables present a summary of loans individually evaluated for impairment by loan type at the dates indicated: March 31, 2019 Recorded Investment (1) Unpaid Principal Balance (2) Related Allowance (In thousands) Loans with no related allowance: One-to-four family residential: Owner occupied $ 847 $ 1,030 $ — Non-owner occupied 2,040 2,040 — Commercial real estate 2,156 2,156 — Consumer 44 72 — Total 5,087 5,298 — Loans with an allowance: One-to-four family residential: Owner occupied 511 558 18 Non-owner occupied 2,365 2,365 32 Total 2,876 2,923 50 Total impaired loans: One-to-four family residential: Owner occupied 1,358 1,588 18 Non-owner occupied 4,405 4,405 32 Commercial real estate 2,156 2,156 — Consumer 44 72 — Total $ 7,963 $ 8,221 $ 50 _________________ (1) Represents the loan balance less charge-offs. (2) Contractual loan principal balance. December 31, 2018 Recorded Investment (1) Unpaid Principal Balance (2) Related Allowance (In thousands) Loans with no related allowance: One-to-four family residential: Owner occupied $ 1,308 $ 1,477 $ — Non-owner occupied 2,375 2,375 — Commercial real estate 2,499 2,499 — Consumer 87 141 — Total 6,269 6,492 — Loans with an allowance: One-to-four family residential: Owner occupied 513 560 22 Non-owner occupied 3,126 3,148 37 Commercial real estate 241 241 3 Total 3,880 3,949 62 Total impaired loans: One-to-four family residential: Owner occupied 1,821 2,037 22 Non-owner occupied 5,501 5,523 37 Commercial real estate 2,740 2,740 3 Consumer 87 141 — Total $ 10,149 $ 10,441 $ 62 _________________ (1) Represents the loan balance less charge-offs. (2) Contractual loan principal balance. The following table presents the average recorded investment in loans individually evaluated for impairment and the interest income recognized for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 Three Months Ended March 31, 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 $ 1,078 $ 15 $ 1,314 $ 25 Non-owner occupied 2,208 31 7,658 127 Multifamily — — 1,131 18 Commercial real estate 2,328 38 1,062 19 Consumer 66 1 94 2 Total 5,680 85 11,259 191 Loans with an allowance: One-to-four family residential: Owner occupied 512 9 521 9 Non-owner occupied 2,746 30 3,304 47 Commercial real estate 121 — 2,121 34 Total 3,379 39 5,946 90 Total impaired loans: One-to-four family residential: Owner occupied 1,590 24 1,835 34 Non-owner occupied 4,954 61 10,962 174 Multifamily — — 1,131 18 Commercial real estate 2,449 38 3,183 53 Consumer 66 1 94 2 Total $ 9,059 $ 124 $ 17,205 $ 281 Troubled Debt Restructurings. Certain loan modifications are accounted for as troubled debt restructured loans (“TDRs”). At March 31, 2019 , the TDR portfolio totaled $7.8 million . At December 31, 2018 , the TDR portfolio totaled $9.4 million . At both dates, all TDRs were performing according to their modified repayment terms. At March 31, 2019 , 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 March 31, 2019 and 2018 . The following table presents TDR modifications for the periods indicated and their recorded investment prior to and after the modification: Three Months Ended March 31, 2019 Three Months Ended March 31, 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 Principal and interest with interest rate concession and advancement of maturity date 6 824 824 — — — Advancement of maturity date 3 694 694 — — — Total 9 1,518 1,518 — — — 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 months ended March 31, 2019 , and March 31, 2018 , no loans that had been modified in the previous 12 months defaulted. |
Other Real Estate Owned
Other Real Estate Owned | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 (In thousands) Balance at beginning of period $ 483 $ 483 Market value adjustments (29 ) — Balance at end of period $ 454 $ 483 For the three months ended March 31, 2019 , there were no OREO properties sold. Based on current appraisals, there were $29,000 in market value adjustments taken on the properties in OREO. For the three months ended March 31, 2018, there were no sales or market value adjustments on our OREO properties. OREO at March 31, 2019 , consisted of $454,000 in commercial real estate properties. At March 31, 2019 , there were no loans for which formal foreclosure proceedings were in process. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value 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 Company used the following methods to measure fair value on a recurring or nonrecurring basis: • 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: The fair value of loans receivable are based on the exit price notion, and are 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. 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 March 31, 2019 and December 31, 2018 : Fair Value Measurements at March 31, 2019 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 $ 23,686 $ — $ 23,686 $ — Freddie Mac 6,319 — 6,319 — Ginnie Mae 22,013 — 22,013 — Other 8,953 — 8,953 — Municipal bonds 7,767 — 7,767 — U.S. Government agencies 46,607 — 46,607 — Corporate bonds 23,313 — 23,313 — Total available-for-sale 138,658 — 138,658 — Derivative fair value asset 1,203 — 1,203 — Total $ 139,861 $ — $ 139,861 $ — Fair Value Measurements at December 31, 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 $ 23,643 $ — $ 23,643 $ — Freddie Mac 6,287 — 6,287 — Ginnie Mae 22,061 — 22,061 — Other 8,979 — 8,979 — Municipal bonds 10,544 — 10,544 — U.S. Government agencies 47,438 — 47,438 — Corporate bonds 23,218 — 23,218 — Total available-for-sale 142,170 — 142,170 — Derivative fair value asset 1,662 — 1,662 — Total $ 143,832 $ — $ 143,832 $ — 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 March 31, 2019 , and December 31, 2018 : Fair Value Measurements at March 31, 2019 Fair Value Quoted Prices in Significant Significant (In thousands) Impaired loans (included in loans (1) $ 7,913 $ — $ — $ 7,913 OREO 454 — — 454 Total $ 8,367 $ — $ — $ 8,367 _____________ (1) Total fair value of impaired loans is net of $50,000 of specific reserves on performing TDRs. Fair Value Measurements at December 31, 2018 Fair Value Quoted Prices in Significant Significant (In thousands) Impaired loans (included in loans (1) $ 10,087 $ — $ — $ 10,087 OREO 483 — — 483 Total $ 10,570 $ — $ — $ 10,570 _____________ (1) Total fair value of impaired loans is net of $62,000 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 March 31, 2019 and December 31, 2018 : March 31, 2019 Fair Value Valuation Technique Unobservable Input(s) Range (Weighted Average) (Dollars in thousands) Impaired Loans $ 7,913 Market approach Appraised value discounted by market or borrower conditions 0.0% OREO $ 454 Market approach Appraised value less selling costs 0.0% - 6.31% December 31, 2018 Fair Value Valuation Technique Unobservable Input(s) Range (Weighted Average) (Dollars in thousands) Impaired Loans $ 10,087 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: March 31, 2019 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 $ 9,366 $ 9,366 $ 9,366 $ — $ — Interest-earning deposits with banks 14,596 14,596 14,596 — — Investments available-for-sale 138,658 138,658 — 138,658 — Loans receivable, net 1,051,711 1,041,639 — — 1,041,639 FHLB stock 8,041 8,041 — 8,041 — Accrued interest receivable 4,861 4,861 — 4,861 — Derivative fair value asset 1,203 1,203 — 1,203 — Financial Liabilities: Deposits 432,949 432,949 432,949 — — Certificates of deposit, retail 398,956 400,539 — 400,539 — Certificates of deposit, brokered 123,367 123,417 — 123,417 — Advances from the FHLB 163,500 163,689 — 163,689 — Accrued interest payable 478 478 — 478 — December 31, 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 $ 8,122 $ 8,122 $ 8,122 $ — $ — Interest-earning deposits with banks 8,888 8,888 8,888 — — Investments available-for-sale 142,170 142,170 — 142,170 — Loans receivable, net 1,022,904 1,012,114 — — 1,012,114 FHLB stock 7,310 7,310 — 7,310 — Accrued interest receivable 4,068 4,068 — 4,068 — Derivative fair value asset 1,662 1,662 — 1,662 — Financial Liabilities: Deposits 450,033 450,033 450,033 — — Certificates of deposit, retail 391,174 390,101 — 390,101 — Certificates of deposit, brokered 97,825 97,466 — 97,466 — Advances from the FHLB 146,500 146,357 — 146,357 — Accrued interest payable 478 478 — 478 — |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company adopted ASU 2016-02 and ASU 2018-11 using the modified retrospective approach with an effective date of January 1, 2019, and recognized on the consolidated balance sheets a right-of-use asset (“ROU”) included in prepaid expenses and other assets and lease liabilities included in other liabilities. As such, prior year financial statements were not restated under the new standard. At March 31, 2019, the Company had ten operating leases for retail branch locations. The remaining lease terms range from 1.4 to 6.3 years, with most leases carrying optional extensions of 3-5 years. The Company will include optional lease term extensions in the ROU assets and lease liabilities when management believes it is reasonably certain that the term extension will be exercised, and will be determined based on indicators that the Company would have an economic incentive to extend the lease. The Company has elected to not apply ASU 2016-02 to short term leases, which are those that have a term of one year or less. To calculate the present value of lease payments not yet paid, the Company uses the incremental borrowing rate, which is equal to the FHLB advance rate for the term of the lease that was in place at each lease inception. The minimum monthly lease payments are generally based on square footage of the leased premises, with escalating minimum rent over the lease term. At March 31, 2019, the Company was committed to paying $51,000 per month in minimum monthly lease payments. The minimum monthly lease payment over the initial lease term, including any free rent period, was used to calculate the ROU and lease liability. The Company’s current leases do not include any non-lease components. Total lease expense included in the Company’s Consolidated Income Statement for the three months ended March 31, 2019, was $175,000 . This included the amortized lease expense under ASU 2016-02 combined with variable lease expenses for maintenance or other expenses as defined in the individual lease agreements. The right-of-use asset and lease liability both had a balance of $1.7 million on the Company’s consolidated balance sheet at March 31, 2019, and are amortizing over a weighted-average remaining term of 4.2 years . The weighted-average discount rate used to calculate the present value of future minimum lease payments was 2.96% at March 31, 2019. The following table provides a reconciliation between the undiscounted minimum lease payments at March 31, 2019 and the discounted lease liability at that date: March 31, 2019 (in thousands) Due through one year $ 527 Due after one year through two years 471 Due after two years through three years 300 Due after three years through four years 277 Due after four years through five years 176 Due after five years 112 Total minimum lease payments 1,863 Less: present value discount (118 ) Lease liability $ 1,745 The Company has secured a lease for a new retail branch in Kirkland, Washington. The initial lease term is for 65 months and includes options to extend the lease. The minimum rent will be determined at commencement and will increase annually thereafter. This lease was not included in the calculation of discounted lease payments at March 31, 2019. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019, the fair value of the cash flow hedge of $1.2 million was reported with other assets. The tax effected amount of $950,000 was included in Accumulated Other Comprehensive Income. There were no amounts recorded in the Consolidated Income Statements for the quarters ended March 31, 2019 or 2018 , 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 March 31, 2019 and December 31, 2018 : Balance Sheet Location Fair Value at March 31, 2019 Fair Value at December 31, 2018 (In thousands) Interest rate swap on FHLB debt designated as cash flow hedge Other Assets $ 1,203 $ 1,662 Total derivatives $ 1,203 $ 1,662 The following table presents the effect of this derivative instrument on the Consolidated Statements of Comprehensive Income for the quarters ended March 31, 2019 , and December 31, 2018 : Balance Sheet Location Amount Recognized in OCI at March 31, 2019 Amount Recognized in OCI at December 31, 2018 (In thousands) Interest rate swap on FHLB debt Other assets $ (363 ) $ 108 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019, there were no unvested shares of restricted stock awards under the 2008 Plan. At this date, there were 35,000 stock options granted under the 2008 Plan that are expected to vest and be available for exercise, and an additional 280,000 stock options from the 2008 Plan were available for exercise at March 31, 2019, subject to the 2008 Plan provisions. At March 31, 2019 , there were 1,207,274 total shares available for grant under the 2016 Plan, including 328,637 shares available to be granted as restricted stock. For the three months ended March 31, 2019 and 2018 , total compensation expense for both the 2008 and 2016 Plans was $124,000 and $84,000 , respectively, and the related income tax benefit was $26,000 and $18,000 , 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 5 years, with 20% vesting on the anniversary date of each grant date, and a contractual life of 10 years. Any unexercised stock options expire ten years after the grant date, or sooner in the event of the award recipient’s death, disability or termination of service with the Company 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 months ended March 31, 2019 , follows: For the Three Months Ended March 31, 2019 Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term in Years Aggregate Intrinsic Value Weighted-Average Grant Date Fair Value Outstanding at January 1, 2019 315,000 $ 10.34 $ 1,615,600 $ 3.69 Granted 50,000 15.80 5.03 Outstanding at March 31, 2019 365,000 11.09 5.43 1,703,800 3.88 Vested and expected to vest assuming a 3% forfeiture rate over the vesting term 362,450 11.07 5.41 1,699,668 3.87 Exercisable at March 31, 2019 280,000 10.16 4.59 1,566,070 3.61 As of March 31, 2019 , there was $323,000 of total unrecognized compensation cost related to nonvested stock options granted under the 2008 and 2016 Plans. The cost is expected to be recognized over the remaining weighted-average vesting period of 3.84 years. There were 50,000 stock options granted under the 2016 Plan during the three months ended March 31, 2019 . Restricted Stock Awards 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 months ended March 31, 2019 , follows: For the Three Months Ended March 31, 2019 Shares Weighted-Average Nonvested at January 1, 2019 20,987 $ 15.90 Granted 16,698 16.53 Vested (20,987 ) 15.90 Nonvested at March 31, 2019 16,698 16.53 Expected to vest assuming a 3% forfeiture rate over the vesting term 16,197 16.53 As of March 31, 2019 , there was $247,000 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 eleven months . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 (Dollars in thousands, except share data) Net income $ 1,945 $ 6,842 Less: Earnings allocated to participating securities (3 ) (16 ) Earnings allocated to common shareholders $ 1,942 $ 6,826 Basic weighted average common shares outstanding 10,118,286 10,210,828 Dilutive stock options 89,718 122,465 Dilutive restricted stock grants 12,896 3,273 Diluted weighted average common shares outstanding 10,220,900 10,336,566 Basic earnings per share $ 0.19 $ 0.67 Diluted earnings per share $ 0.19 $ 0.66 Potential dilutive shares are excluded from the computation of earnings per share if their effect is anti-dilutive. For the three months ended March 31, 2019 , there were 50,000 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. For the three months ended March 31, 2018, there 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 | 3 Months Ended |
Mar. 31, 2019 | |
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 balance of the CDI and goodwill at March 31, 2019 was $1.1 million and $889,000 , respectively. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
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 months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 March 31, 2018 (In thousands) Loss on sale of investments (1) $ (8 ) $ — BOLI change in cash surrender value (1) 269 249 Wealth management revenue 196 99 Deposit related fees 69 63 Debit card and ATM fees 102 98 Loan related fees 47 87 Loan interest swap fees 16 47 Other 9 3 Total noninterest income $ 700 $ 646 _______________ (1) Not within scope of Topic 606 For the three months ended March 31, 2019, 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 March 31, 2019 , 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 | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Recent Accounting Pronouncements Adopted in 2019 In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. In March 2019, FASB issued ASU 2019-01, Leases (Topic 842), Codification Improvements. Under these ASUs, 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 Company adopted this ASU on January 1, 2019 and according to ASU 2018-11, elected to recognize the related cumulative-effect adjustment as an adjustment to the opening balance of retained earnings. Adoption of ASU 2016-02 resulted in the addition of a right-of-use asset and lease related to certain banking offices under noncancelable operating lease agreements. The resulting increase did not to have a material impact on the Company’s consolidated financial statements or regulatory capital ratios. For more information see Note 8 ‑ Leases in this report. 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 Company adopted this ASU during the quarter ended March 31, 2019 with no material impact on the Company's consolidated financial statements. Recent Accounting Pronouncements 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 and industry 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. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments [Abstract] | |
Available-for-sale Securities | Investments available-for-sale are summarized as follows at the dates indicated: March 31, 2019 Amortized Gross Gross Fair Value (In thousands) Mortgage-backed investments: Fannie Mae $ 23,967 $ 89 $ (370 ) $ 23,686 Freddie Mac 6,310 27 (18 ) 6,319 Ginnie Mae 23,053 10 (1,050 ) 22,013 Other 8,925 47 (19 ) 8,953 Municipal bonds 7,619 169 (21 ) 7,767 U.S. Government agencies 47,355 72 (820 ) 46,607 Corporate bonds 23,491 323 (501 ) 23,313 Total $ 140,720 $ 737 $ (2,799 ) $ 138,658 December 31, 2018 Amortized Gross Gross Fair Value (In thousands) Mortgage-backed investments: Fannie Mae $ 24,276 $ 24 $ (657 ) $ 23,643 Freddie Mac 6,351 10 (74 ) 6,287 Ginnie Mae 23,311 — (1,250 ) 22,061 Other 8,983 17 (21 ) 8,979 Municipal bonds 10,615 49 (120 ) 10,544 U.S. Government agencies 48,190 73 (825 ) 47,438 Corporate bonds 23,490 399 (671 ) 23,218 Total $ 145,216 $ 572 $ (3,618 ) $ 142,170 |
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: March 31, 2019 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 $ — $ — $ 15,338 $ (370 ) $ 15,338 $ (370 ) Freddie Mac — — 3,203 (18 ) 3,203 (18 ) Ginnie Mae — — 19,135 (1,050 ) 19,135 (1,050 ) Other 6,008 (19 ) — — 6,008 (19 ) Municipal bonds — — 987 (21 ) 987 (21 ) U.S. Government agencies 9,661 (114 ) 30,381 (706 ) 40,042 (820 ) Corporate bonds — — 6,999 (501 ) 6,999 (501 ) Total $ 15,669 $ (133 ) $ 76,043 $ (2,666 ) $ 91,712 $ (2,799 ) December 31, 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 $ 5,480 $ (32 ) $ 16,721 $ (625 ) $ 22,201 $ (657 ) Freddie Mac 1,994 (23 ) 3,185 (51 ) 5,179 (74 ) Ginnie Mae 2,867 (8 ) 19,194 (1,242 ) 22,061 (1,250 ) Other 6,008 (21 ) — — 6,008 (21 ) Municipal bonds 4,161 (46 ) 934 (74 ) 5,095 (120 ) U.S. Government agencies 5,985 (13 ) 30,779 (812 ) 36,764 (825 ) Corporate bonds — — 6,828 (671 ) 6,828 (671 ) Total $ 26,495 $ (143 ) $ 77,641 $ (3,475 ) $ 104,136 $ (3,618 ) |
Schedule of Available for sale Securities, Debt Maturities | March 31, 2019 Amortized Cost Fair Value (In thousands) Due within one year $ 251 $ 250 Due after one year through five years 7,328 7,481 Due after five years through ten years 19,291 19,000 Due after ten years 51,595 50,956 78,465 77,687 Mortgage-backed investments 62,255 60,971 Total $ 140,720 $ 138,658 |
Loans Receivable_ Schedule of A
Loans Receivable: Schedule of Accounts, Notes, Loans and Financing Receivable (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans receivable are summarized as follows at the dates indicated: March 31, 2019 December 31, 2018 (In thousands) One-to-four family residential: Permanent owner occupied $ 194,648 $ 194,141 Permanent non-owner occupied 156,684 147,825 351,332 341,966 Multifamily 167,843 169,355 Commercial real estate 384,686 373,819 Construction/land: One-to-four family residential 84,191 86,604 Multifamily 87,748 83,642 Commercial 22,400 18,300 Land 6,965 6,740 201,304 195,286 Business 33,513 30,486 Consumer 14,336 12,970 Total loans 1,153,014 1,123,882 Less: Loans in process ("LIP") (1) 86,794 86,453 Deferred loan fees, net 701 1,178 Allowance for loan and lease losses ("ALLL") 13,808 13,347 Loans receivable, net $ 1,051,711 $ 1,022,904 _______________ (1) LIP is the amount of committed but undisbursed funds on construction loans. At March 31, 2019 , loans totaling $480.7 million were pledged to secure borrowings from the FHLB of Des Moines compared to $471.4 million at December 31, 2018 . Credit Quality Indicators . The Company assigns a risk rating to all credit exposures based on a risk rating system designed to define the basic characteristics and identified risk elements of each credit extension. The Company utilizes a nine‑point risk rating system. A description of the general characteristics of the risk grades is as follows: • Grades 1 through 5: These grades are considered to be “pass” credits. These include assets where there is virtually no credit risk, such as cash secured loans with funds on deposit with the Bank. Pass credits also include credits that are on the Company’s watch list, where the borrower exhibits potential weaknesses, which may, if not checked or corrected, negatively affect the borrower’s financial capacity and threaten their ability to fulfill debt obligations in the future. • Grade 6: These credits, classified as “special mention”, 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. If left uncorrected, these potential weaknesses may result in deterioration in the Company’s credit position at a future date. • Grade 7: These credits, classified as “substandard”, present a distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. These credits have well defined weaknesses which jeopardize the orderly liquidation of the debt and are inadequately protected by the current net worth and payment capacity of the borrower or of any collateral pledged. • Grade 8: These credits are classified as “doubtful” and possess well defined weaknesses which make the full collection or liquidation of the loan highly questionable and improbable. This classification is used where significant risk exposures are perceived but the exact amount of the loss cannot yet be determined due to pending events. • Grade 9: Assets classified as “loss” are considered uncollectible and cannot be justified as a viable asset for the Company. There is little or no prospect of near term recovery and no realistic strengthening action of significance is pending. As of March 31, 2019, and December 31, 2018, the Company had no loans rated as doubtful or loss. The following tables represent a summary of loans at March 31, 2019, and December 31, 2018 by type and risk category: March 31, 2019 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (1) (In thousands) Risk Rating: Pass $ 349,894 $ 167,843 $ 384,149 $ 112,380 $ 33,513 $ 14,292 $ 1,062,071 Special mention 795 — 537 2,130 — — 3,462 Substandard 643 — — — — 44 687 Total loans $ 351,332 $ 167,843 $ 384,686 $ 114,510 $ 33,513 $ 14,336 $ 1,066,220 _______________ (1) Net of LIP. December 31, 2018 One-to-Four Family Residential Multifamily Commercial Real Estate Construction/ Land Business Consumer Total (1) (In thousands) Risk Rating: Pass $ 339,310 $ 169,355 $ 372,690 $ 108,854 $ 30,486 $ 12,926 $ 1,033,621 Special mention 1,737 — 782 — — — 2,519 Substandard 919 — 326 — — 44 1,289 Total loans $ 341,966 $ 169,355 $ 373,798 $ 108,854 $ 30,486 $ 12,970 $ 1,037,429 _______________ (1) Net of LIP. |
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 March 31, 2019 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (In thousands) ALLL: Beginning balance $ 3,387 $ 1,680 $ 4,777 $ 2,331 $ 936 $ 236 $ 13,347 Charge-offs — — — — — — — Recoveries 24 — — — — 37 61 (Recapture) provision (379 ) (101 ) 32 801 94 (47 ) 400 Ending balance $ 3,032 $ 1,579 $ 4,809 $ 3,132 $ 1,030 $ 226 $ 13,808 ALLL by category: General reserve $ 2,982 $ 1,579 $ 4,809 $ 3,132 $ 1,030 $ 226 $ 13,758 Specific reserve 50 — — — — — 50 Loans: (1) Total loans $ 351,332 $ 167,843 $ 384,686 $ 114,510 $ 33,513 $ 14,336 $ 1,066,220 Loans collectively evaluated for impairment (2) 345,569 167,843 382,530 114,510 33,513 14,292 1,058,257 Loans individually evaluated for impairment (3) 5,763 — 2,156 — — 44 7,963 ____________ (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 March 31, 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 Charge-offs — — — — — — — Recoveries 4,240 — 14 — — — 4,254 (Recapture) provision (3,840 ) 64 58 (362 ) 46 34 (4,000 ) Ending balance $ 3,237 $ 1,884 $ 4,490 $ 2,454 $ 740 $ 331 $ 13,136 ALLL by category: General reserve $ 3,168 $ 1,884 $ 4,464 $ 2,454 $ 740 $ 331 $ 13,041 Specific reserve 69 — 26 — — — 95 Loans: (1) Total loans $ 295,895 $ 190,392 $ 366,231 $ 117,554 $ 24,237 $ 11,131 $ 1,005,440 Loans collectively evaluated for impairment (2) 283,866 189,264 363,059 117,554 24,237 11,038 989,018 Loans individually evaluated for impairment (3) 12,029 1,128 3,172 — — 93 16,422 _____________ (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 March 31, 2019 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 $ 107 $ — $ — $ 107 $ 194,541 $ 194,648 Non-owner occupied 166 — — 166 156,518 156,684 Multifamily — — — — 167,843 167,843 Commercial real estate — — — — 384,686 384,686 Construction/land — — — — 114,510 114,510 Total real estate 273 — — 273 1,018,098 1,018,371 Business — — — — 33,513 33,513 Consumer 44 — — 44 14,292 14,336 Total loans $ 317 $ — $ — $ 317 $ 1,065,903 $ 1,066,220 ________________ (1) There were no loans 90 days and greater past due and still accruing interest at March 31, 2019 . (2) Net of LIP. Loans Past Due as of December 31, 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 $ 223 $ — $ 272 $ 495 $ 193,646 $ 194,141 Non-owner occupied — — — — 147,825 147,825 Multifamily — — — — 169,355 169,355 Commercial real estate — — 326 326 373,472 373,798 Construction/land — — — — 108,854 108,854 Total real estate 223 — 598 821 993,152 993,973 Business — — — — 30,486 30,486 Consumer — — — — 12,970 12,970 Total loans $ 223 $ — $ 598 $ 821 $ 1,036,608 $ 1,037,429 _________________ (1) There were no loans 90 days and greater past due and still accruing interest at December 31, 2018 . (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: March 31, 2019 December 31, 2018 (In thousands) One-to-four family residential $ 107 $ 382 Commercial real estate — 326 Consumer 44 44 Total nonaccrual loans $ 151 $ 752 |
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: March 31, 2019 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (1) (In thousands) Performing (2) $ 351,225 $ 167,843 $ 384,686 $ 114,510 $ 33,513 $ 14,292 $ 1,066,069 Nonperforming (3) 107 — — — — 44 151 Total loans $ 351,332 $ 167,843 $ 384,686 $ 114,510 $ 33,513 $ 14,336 $ 1,066,220 _____________ (1) Net of LIP. (2) There were $194.5 million of owner-occupied one-to-four family residential loans and $156.7 million of non-owner occupied one-to-four family residential loans classified as performing. (3) The $107,000 one-to-four family residential loan classified as nonperforming is owner-occupied. December 31, 2018 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (1) (In thousands) Performing (2) $ 341,584 $ 169,355 $ 373,472 $ 108,854 $ 30,486 $ 12,926 $ 1,036,677 Nonperforming (3) 382 — 326 — — 44 752 Total loans $ 341,966 $ 169,355 $ 373,798 $ 108,854 $ 30,486 $ 12,970 $ 1,037,429 _____________ (1) Net of LIP. (2) There were $193.8 million of owner-occupied one-to-four family residential loans and $147.8 million of non-owner occupied one-to-four family residential loans classified as performing. (3) The $382,000 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: March 31, 2019 Recorded Investment (1) Unpaid Principal Balance (2) Related Allowance (In thousands) Loans with no related allowance: One-to-four family residential: Owner occupied $ 847 $ 1,030 $ — Non-owner occupied 2,040 2,040 — Commercial real estate 2,156 2,156 — Consumer 44 72 — Total 5,087 5,298 — Loans with an allowance: One-to-four family residential: Owner occupied 511 558 18 Non-owner occupied 2,365 2,365 32 Total 2,876 2,923 50 Total impaired loans: One-to-four family residential: Owner occupied 1,358 1,588 18 Non-owner occupied 4,405 4,405 32 Commercial real estate 2,156 2,156 — Consumer 44 72 — Total $ 7,963 $ 8,221 $ 50 _________________ (1) Represents the loan balance less charge-offs. (2) Contractual loan principal balance. December 31, 2018 Recorded Investment (1) Unpaid Principal Balance (2) Related Allowance (In thousands) Loans with no related allowance: One-to-four family residential: Owner occupied $ 1,308 $ 1,477 $ — Non-owner occupied 2,375 2,375 — Commercial real estate 2,499 2,499 — Consumer 87 141 — Total 6,269 6,492 — Loans with an allowance: One-to-four family residential: Owner occupied 513 560 22 Non-owner occupied 3,126 3,148 37 Commercial real estate 241 241 3 Total 3,880 3,949 62 Total impaired loans: One-to-four family residential: Owner occupied 1,821 2,037 22 Non-owner occupied 5,501 5,523 37 Commercial real estate 2,740 2,740 3 Consumer 87 141 — Total $ 10,149 $ 10,441 $ 62 _________________ (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 table presents the average recorded investment in loans individually evaluated for impairment and the interest income recognized for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 Three Months Ended March 31, 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 $ 1,078 $ 15 $ 1,314 $ 25 Non-owner occupied 2,208 31 7,658 127 Multifamily — — 1,131 18 Commercial real estate 2,328 38 1,062 19 Consumer 66 1 94 2 Total 5,680 85 11,259 191 Loans with an allowance: One-to-four family residential: Owner occupied 512 9 521 9 Non-owner occupied 2,746 30 3,304 47 Commercial real estate 121 — 2,121 34 Total 3,379 39 5,946 90 Total impaired loans: One-to-four family residential: Owner occupied 1,590 24 1,835 34 Non-owner occupied 4,954 61 10,962 174 Multifamily — — 1,131 18 Commercial real estate 2,449 38 3,183 53 Consumer 66 1 94 2 Total $ 9,059 $ 124 $ 17,205 $ 281 |
Troubled Debt Restructurings on Financing Receivables | The following table presents TDR modifications for the periods indicated and their recorded investment prior to and after the modification: Three Months Ended March 31, 2019 Three Months Ended March 31, 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 Principal and interest with interest rate concession and advancement of maturity date 6 824 824 — — — Advancement of maturity date 3 694 694 — — — Total 9 1,518 1,518 — — — |
Financing Receivables, Summary of loans by type and risk category | DRs 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 months ended March 31, 2019 , and March 31, 2018 , no loans that had been modified in the previous 12 months defaulted. |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 (In thousands) Balance at beginning of period $ 483 $ 483 Market value adjustments (29 ) — Balance at end of period $ 454 $ 483 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 : Fair Value Measurements at March 31, 2019 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 $ 23,686 $ — $ 23,686 $ — Freddie Mac 6,319 — 6,319 — Ginnie Mae 22,013 — 22,013 — Other 8,953 — 8,953 — Municipal bonds 7,767 — 7,767 — U.S. Government agencies 46,607 — 46,607 — Corporate bonds 23,313 — 23,313 — Total available-for-sale 138,658 — 138,658 — Derivative fair value asset 1,203 — 1,203 — Total $ 139,861 $ — $ 139,861 $ — Fair Value Measurements at December 31, 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 $ 23,643 $ — $ 23,643 $ — Freddie Mac 6,287 — 6,287 — Ginnie Mae 22,061 — 22,061 — Other 8,979 — 8,979 — Municipal bonds 10,544 — 10,544 — U.S. Government agencies 47,438 — 47,438 — Corporate bonds 23,218 — 23,218 — Total available-for-sale 142,170 — 142,170 — Derivative fair value asset 1,662 — 1,662 — Total $ 143,832 $ — $ 143,832 $ — |
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 March 31, 2019 , and December 31, 2018 : Fair Value Measurements at March 31, 2019 Fair Value Quoted Prices in Significant Significant (In thousands) Impaired loans (included in loans (1) $ 7,913 $ — $ — $ 7,913 OREO 454 — — 454 Total $ 8,367 $ — $ — $ 8,367 _____________ (1) Total fair value of impaired loans is net of $50,000 of specific reserves on performing TDRs. Fair Value Measurements at December 31, 2018 Fair Value Quoted Prices in Significant Significant (In thousands) Impaired loans (included in loans (1) $ 10,087 $ — $ — $ 10,087 OREO 483 — — 483 Total $ 10,570 $ — $ — $ 10,570 _____________ (1) Total fair value of impaired loans is net of $62,000 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 March 31, 2019 and December 31, 2018 : March 31, 2019 Fair Value Valuation Technique Unobservable Input(s) Range (Weighted Average) (Dollars in thousands) Impaired Loans $ 7,913 Market approach Appraised value discounted by market or borrower conditions 0.0% OREO $ 454 Market approach Appraised value less selling costs 0.0% - 6.31% December 31, 2018 Fair Value Valuation Technique Unobservable Input(s) Range (Weighted Average) (Dollars in thousands) Impaired Loans $ 10,087 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: March 31, 2019 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 $ 9,366 $ 9,366 $ 9,366 $ — $ — Interest-earning deposits with banks 14,596 14,596 14,596 — — Investments available-for-sale 138,658 138,658 — 138,658 — Loans receivable, net 1,051,711 1,041,639 — — 1,041,639 FHLB stock 8,041 8,041 — 8,041 — Accrued interest receivable 4,861 4,861 — 4,861 — Derivative fair value asset 1,203 1,203 — 1,203 — Financial Liabilities: Deposits 432,949 432,949 432,949 — — Certificates of deposit, retail 398,956 400,539 — 400,539 — Certificates of deposit, brokered 123,367 123,417 — 123,417 — Advances from the FHLB 163,500 163,689 — 163,689 — Accrued interest payable 478 478 — 478 — December 31, 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 $ 8,122 $ 8,122 $ 8,122 $ — $ — Interest-earning deposits with banks 8,888 8,888 8,888 — — Investments available-for-sale 142,170 142,170 — 142,170 — Loans receivable, net 1,022,904 1,012,114 — — 1,012,114 FHLB stock 7,310 7,310 — 7,310 — Accrued interest receivable 4,068 4,068 — 4,068 — Derivative fair value asset 1,662 1,662 — 1,662 — Financial Liabilities: Deposits 450,033 450,033 450,033 — — Certificates of deposit, retail 391,174 390,101 — 390,101 — Certificates of deposit, brokered 97,825 97,466 — 97,466 — Advances from the FHLB 146,500 146,357 — 146,357 — Accrued interest payable 478 478 — 478 — |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lessor, Operating Lease, Payments to be Received, Maturity | The following table provides a reconciliation between the undiscounted minimum lease payments at March 31, 2019 and the discounted lease liability at that date: March 31, 2019 (in thousands) Due through one year $ 527 Due after one year through two years 471 Due after two years through three years 300 Due after three years through four years 277 Due after four years through five years 176 Due after five years 112 Total minimum lease payments 1,863 Less: present value discount (118 ) Lease liability $ 1,745 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table presents the fair value of this derivative instrument as of March 31, 2019 and December 31, 2018 : Balance Sheet Location Fair Value at March 31, 2019 Fair Value at December 31, 2018 (In thousands) Interest rate swap on FHLB debt designated as cash flow hedge Other Assets $ 1,203 $ 1,662 Total derivatives $ 1,203 $ 1,662 |
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 March 31, 2019 , and December 31, 2018 : Balance Sheet Location Amount Recognized in OCI at March 31, 2019 Amount Recognized in OCI at December 31, 2018 (In thousands) Interest rate swap on FHLB debt Other assets $ (363 ) $ 108 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Share-based Compensation [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | A summary of changes in nonvested restricted stock awards for the three months ended March 31, 2019 , follows: For the Three Months Ended March 31, 2019 Shares Weighted-Average Nonvested at January 1, 2019 20,987 $ 15.90 Granted 16,698 16.53 Vested (20,987 ) 15.90 Nonvested at March 31, 2019 16,698 16.53 Expected to vest assuming a 3% forfeiture rate over the vesting term 16,197 16.53 A summary of the Company’s stock option plan awards and activity for the three months ended March 31, 2019 , follows: For the Three Months Ended March 31, 2019 Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term in Years Aggregate Intrinsic Value Weighted-Average Grant Date Fair Value Outstanding at January 1, 2019 315,000 $ 10.34 $ 1,615,600 $ 3.69 Granted 50,000 15.80 5.03 Outstanding at March 31, 2019 365,000 11.09 5.43 1,703,800 3.88 Vested and expected to vest assuming a 3% forfeiture rate over the vesting term 362,450 11.07 5.41 1,699,668 3.87 Exercisable at March 31, 2019 280,000 10.16 4.59 1,566,070 3.61 |
Earnings Per Share_ Schedule of
Earnings Per Share: Schedule of Earnings Per Share Reconciliation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 (Dollars in thousands, except share data) Net income $ 1,945 $ 6,842 Less: Earnings allocated to participating securities (3 ) (16 ) Earnings allocated to common shareholders $ 1,942 $ 6,826 Basic weighted average common shares outstanding 10,118,286 10,210,828 Dilutive stock options 89,718 122,465 Dilutive restricted stock grants 12,896 3,273 Diluted weighted average common shares outstanding 10,220,900 10,336,566 Basic earnings per share $ 0.19 $ 0.67 Diluted earnings per share $ 0.19 $ 0.66 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 March 31, 2018 (In thousands) Loss on sale of investments (1) $ (8 ) $ — BOLI change in cash surrender value (1) 269 249 Wealth management revenue 196 99 Deposit related fees 69 63 Debit card and ATM fees 102 98 Loan related fees 47 87 Loan interest swap fees 16 47 Other 9 3 Total noninterest income $ 700 $ 646 _______________ (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 | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost | $ 251 | |
Amortized Cost | 140,720 | $ 145,216 |
Gross Unrealized Gains | 737 | 572 |
Gross Unrealized Losses | (2,799) | (3,618) |
Fair Value | 138,658 | 142,170 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value | 250 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Amortized Cost | 7,328 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value | 7,481 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Amortized Cost | 19,291 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value | 19,000 | |
Debt Securities, Available-for-sale, Allocated and Single Maturity Date, Maturity, after 10 Years, Amortized Cost | 51,595 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value | 50,956 | |
Debt Securities, Available-for-sale, Amortized Cost | 78,465 | |
Schedule of Available for sale Securities Debt Maturities | 77,687 | |
Mortgage backed investments Amortized Cost | 62,255 | |
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure | 60,971 | |
Mortgage-backed investments, Fannie Mae | ||
Amortized Cost | 23,967 | 24,276 |
Gross Unrealized Gains | 89 | 24 |
Gross Unrealized Losses | (370) | (657) |
Fair Value | 23,686 | 23,643 |
Mortgage-backed investments, Freddie Mac | ||
Amortized Cost | 6,310 | 6,351 |
Gross Unrealized Gains | 27 | 10 |
Gross Unrealized Losses | (18) | (74) |
Fair Value | 6,319 | 6,287 |
Mortgage-backed investments, Ginnie Mae | ||
Amortized Cost | 23,053 | 23,311 |
Gross Unrealized Gains | 10 | 0 |
Gross Unrealized Losses | (1,050) | (1,250) |
Fair Value | 22,013 | 22,061 |
Mortgage backed investments other [Member] | ||
Amortized Cost | 8,925 | 8,983 |
Gross Unrealized Gains | 47 | 17 |
Gross Unrealized Losses | (19) | (21) |
Fair Value | 8,953 | 8,979 |
Municipal Bonds | ||
Amortized Cost | 7,619 | 10,615 |
Gross Unrealized Gains | 169 | 49 |
Gross Unrealized Losses | (21) | (120) |
Fair Value | 7,767 | 10,544 |
US Government agencies | ||
Amortized Cost | 47,355 | 48,190 |
Gross Unrealized Gains | 72 | 73 |
Gross Unrealized Losses | (820) | (825) |
Fair Value | 46,607 | 47,438 |
Corporate Bonds | ||
Amortized Cost | 23,491 | 23,490 |
Gross Unrealized Gains | 323 | 399 |
Gross Unrealized Losses | (501) | (671) |
Fair Value | $ 23,313 | $ 23,218 |
Investments_ Schedule of Availa
Investments: Schedule of Available for sale Securities in Continuous Unrealized Loss positions (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Net loss on sale of investments | $ (8,000) | $ 0 | |
Fair Value | 15,669,000 | $ 26,495,000 | |
Unrealized Loss | (133,000) | (143,000) | |
Fair Value | 76,043,000 | 77,641,000 | |
Unrealized Loss | (2,666,000) | (3,475,000) | |
Fair Value | 91,712,000 | 104,136,000 | |
Gross Unrealized Loss | (2,799,000) | (3,618,000) | |
Mortgage-backed investments, Fannie Mae | |||
Fair Value | 0 | 5,480,000 | |
Unrealized Loss | 0 | (32,000) | |
Fair Value | 15,338,000 | 16,721,000 | |
Unrealized Loss | (370,000) | (625,000) | |
Fair Value | 15,338,000 | 22,201,000 | |
Gross Unrealized Loss | (370,000) | (657,000) | |
Mortgage-backed investments, Freddie Mac | |||
Fair Value | 0 | 1,994,000 | |
Unrealized Loss | 0 | (23,000) | |
Fair Value | 3,203,000 | 3,185,000 | |
Unrealized Loss | (18,000) | (51,000) | |
Fair Value | 3,203,000 | 5,179,000 | |
Gross Unrealized Loss | (18,000) | (74,000) | |
Mortgage backed investments Ginnie Mae | |||
Fair Value | 0 | 2,867,000 | |
Unrealized Loss | 0 | (8,000) | |
Fair Value | 19,135,000 | 19,194,000 | |
Unrealized Loss | (1,050,000) | (1,242,000) | |
Fair Value | 19,135,000 | 22,061,000 | |
Gross Unrealized Loss | (1,050,000) | (1,250,000) | |
Mortgage backed investments other [Member] | |||
Fair Value | 6,008,000 | 6,008,000 | |
Unrealized Loss | (19,000) | (21,000) | |
Fair Value | 0 | 0 | |
Unrealized Loss | 0 | 0 | |
Fair Value | 6,008,000 | 6,008,000 | |
Gross Unrealized Loss | (19,000) | (21,000) | |
Municipal Bonds | |||
Fair Value | 0 | 4,161,000 | |
Unrealized Loss | 0 | (46,000) | |
Fair Value | 987,000 | 934,000 | |
Unrealized Loss | (21,000) | (74,000) | |
Fair Value | 987,000 | 5,095,000 | |
Gross Unrealized Loss | (21,000) | (120,000) | |
US Government agencies | |||
Fair Value | 9,661,000 | 5,985,000 | |
Unrealized Loss | (114,000) | (13,000) | |
Fair Value | 30,381,000 | 30,779,000 | |
Unrealized Loss | (706,000) | (812,000) | |
Fair Value | 40,042,000 | 36,764,000 | |
Gross Unrealized Loss | (820,000) | (825,000) | |
Corporate Bonds | |||
Fair Value | 0 | 0 | |
Unrealized Loss | 0 | 0 | |
Fair Value | 6,999,000 | 6,828,000 | |
Unrealized Loss | (501,000) | (671,000) | |
Fair Value | 6,999,000 | 6,828,000 | |
Gross Unrealized Loss | $ (501,000) | $ (671,000) |
Investments_ Narrative (Details
Investments: Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2019USD ($)securities | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($)securities | |
Debt Securities, Available-for-sale [Line Items] | |||
Investments pledged as collateral for FHLB advances | 50.00% | ||
Investments pledged as collateral for public deposits | $ 15,700,000 | $ 15,600,000 | |
Principal repayments on investments available-for-sale | 3,000,000 | $ 2,000,000 | |
Net gain (loss) on sale of investments | $ 8,000 | 0 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | securities | 31 | 31 | |
Unrealized Loss | securities | 37 | 51 | |
Payments to Acquire Marketable Securities | $ 0 | $ 15,978,000 |
Investments_ Schedule of Avai_2
Investments: Schedule of Available for sale Securities, Debt Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investments [Abstract] | ||
Due within one year, Amortized Cost | $ 251 | |
Due after one year through five years, Amortized Cost | 7,328 | |
Due after five years through ten years, Amortized Cost | 19,291 | |
Due after ten years, Amortized Cost | 51,595 | |
Debt maturities, Amortized Cost | 78,465 | |
Mortgage-backed investments, Amortized Cost | 62,255 | |
Amortized Cost | 140,720 | $ 145,216 |
Due within one year, Fair Value | 250 | |
Due after one year through five years, Fair Value | 7,481 | |
Due after five years through ten years, Fair Value | 19,000 | |
Due after ten years, Fair Value | 50,956 | |
Debt maturities, Fair Value | 77,687 | |
Mortgage-backed investments, Fair Value | 60,971 | |
Fair Value | $ 138,658 |
Loans Receivable_ Schedule of_2
Loans Receivable: Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Loans receivable | $ 1,153,014 | $ 1,123,882 | ||
Loans in process (LIP) | 86,794 | 86,453 | ||
Deferred loan fees, net | 701 | 1,178 | ||
ALLL | 13,808 | 13,347 | ||
Loans receivable, net | 1,051,711 | 1,022,904 | ||
One-to-four family, residential, owner occupied | ||||
Loans receivable | 194,648 | 194,141 | ||
One to four family residential non owner occupied | ||||
Loans receivable | 156,684 | 147,825 | ||
One to Four Family | ||||
Loans receivable | 351,332 | 341,966 | ||
One to four family residential | ||||
ALLL | 3,032 | 3,387 | $ 3,237 | $ 2,837 |
Multifamily | ||||
Loans receivable | 167,843 | 169,355 | ||
ALLL | 1,579 | 1,680 | 1,884 | 1,820 |
Commercial Real Estate | ||||
Loans receivable | 384,686 | 373,819 | ||
ALLL | 4,809 | 4,777 | 4,490 | 4,418 |
Construction/Land Development One-to-four family residential | ||||
Loans receivable | 84,191 | 86,604 | ||
Construction Land Development Multifamily | ||||
Loans receivable | 87,748 | 83,642 | ||
Construction Land Development Commercial [Member] | ||||
Loans receivable | 22,400 | 18,300 | ||
Construction Land Development Land Development | ||||
Loans receivable | 6,965 | 6,740 | ||
Construction Land Development | ||||
Loans receivable | 201,304 | 195,286 | ||
ALLL | 3,132 | 2,331 | 2,454 | 2,816 |
Business | ||||
Loans receivable | 33,513 | 30,486 | ||
ALLL | 1,030 | 936 | 740 | 694 |
Consumer | ||||
Loans receivable | 14,336 | 12,970 | ||
ALLL | 226 | 236 | 331 | 297 |
Property total | ||||
ALLL | $ 13,808 | $ 13,347 | $ 13,136 | $ 12,882 |
Loans Receivable_ Schedule of_3
Loans Receivable: Schedule of Allowance for Loan and Lease Losses, Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Loans receivable allowance for loan losses | $ 13,347 | $ 13,808 | $ 13,347 | ||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 13,347 | ||||
(Recapture) provision | 400 | $ (4,000) | |||
Loans and Leases Receivable, Allowance, Ending Balance | 13,808 | ||||
One to four family residential | |||||
Impaired Financing Receivable, Related Allowance | 50 | $ 69 | |||
Loans receivable allowance for loan losses | 3,387 | 2,837 | 3,032 | 3,387 | 3,237 |
Total Loans | 351,332 | 295,895 | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 3,387 | 2,837 | |||
Allowance for Loan and Lease Losses, Write-offs | 0 | 0 | |||
Recoveries | 24 | 4,240 | |||
(Recapture) provision | (379) | (3,840) | |||
Loans and Leases Receivable, Allowance, Ending Balance | 3,032 | 3,237 | |||
Financing Receivable, Collectively Evaluated for Impairment | 345,569 | 283,866 | |||
Financing Receivable, Individually Evaluated for Impairment | 5,763 | 12,029 | |||
One to four family residential | General Reserve | |||||
Loans receivable allowance for loan losses | 2,982 | 3,168 | 2,982 | 3,168 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Ending Balance | 2,982 | 3,168 | |||
Multifamily | |||||
Impaired Financing Receivable, Related Allowance | 0 | 0 | |||
Loans receivable allowance for loan losses | 1,680 | 1,820 | 1,579 | 1,680 | 1,884 |
Total Loans | 167,843 | 190,392 | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 1,680 | 1,820 | |||
Allowance for Loan and Lease Losses, Write-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
(Recapture) provision | (101) | 64 | |||
Loans and Leases Receivable, Allowance, Ending Balance | 1,579 | 1,884 | |||
Financing Receivable, Collectively Evaluated for Impairment | 167,843 | 189,264 | |||
Financing Receivable, Individually Evaluated for Impairment | 0 | 1,128 | |||
Multifamily | General Reserve | |||||
Loans receivable allowance for loan losses | 1,579 | 1,884 | 1,579 | 1,884 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Ending Balance | 1,579 | 1,884 | |||
Commercial Real Estate | |||||
Impaired Financing Receivable, Related Allowance | 0 | 3 | 26 | ||
Loans receivable allowance for loan losses | 4,777 | 4,418 | 4,809 | 4,777 | 4,490 |
Total Loans | 384,686 | 366,231 | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 4,777 | 4,418 | |||
Allowance for Loan and Lease Losses, Write-offs | 0 | 0 | |||
Recoveries | 0 | 14 | |||
(Recapture) provision | 32 | 58 | |||
Loans and Leases Receivable, Allowance, Ending Balance | 4,809 | 4,490 | |||
Financing Receivable, Collectively Evaluated for Impairment | 382,530 | 363,059 | |||
Financing Receivable, Individually Evaluated for Impairment | 2,156 | 3,172 | |||
Commercial Real Estate | General Reserve | |||||
Loans receivable allowance for loan losses | 4,809 | 4,464 | 4,809 | 4,464 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Ending Balance | 4,809 | 4,464 | |||
Construction Land Development | |||||
Impaired Financing Receivable, Related Allowance | 0 | 0 | |||
Loans receivable allowance for loan losses | 2,331 | 2,816 | 3,132 | 2,331 | 2,454 |
Total Loans | 114,510 | 117,554 | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 2,331 | 2,816 | |||
Allowance for Loan and Lease Losses, Write-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
(Recapture) provision | 801 | (362) | |||
Loans and Leases Receivable, Allowance, Ending Balance | 3,132 | 2,454 | |||
Financing Receivable, Collectively Evaluated for Impairment | 114,510 | 117,554 | |||
Financing Receivable, Individually Evaluated for Impairment | 0 | 0 | |||
Construction Land Development | General Reserve | |||||
Loans receivable allowance for loan losses | 3,132 | 2,454 | 3,132 | 2,454 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Ending Balance | 3,132 | 2,454 | |||
Business | |||||
Impaired Financing Receivable, Related Allowance | 0 | 0 | |||
Loans receivable allowance for loan losses | 936 | 694 | 1,030 | 936 | 740 |
Total Loans | 33,513 | 24,237 | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 936 | 694 | |||
Allowance for Loan and Lease Losses, Write-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
(Recapture) provision | 94 | 46 | |||
Loans and Leases Receivable, Allowance, Ending Balance | 1,030 | 740 | |||
Financing Receivable, Collectively Evaluated for Impairment | 33,513 | 24,237 | |||
Financing Receivable, Individually Evaluated for Impairment | 0 | 0 | |||
Business | General Reserve | |||||
Loans receivable allowance for loan losses | 1,030 | 740 | 1,030 | 740 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Ending Balance | 1,030 | 740 | |||
Consumer | |||||
Impaired Financing Receivable, Related Allowance | 0 | 0 | |||
Loans receivable allowance for loan losses | 236 | 297 | 226 | 236 | 331 |
Total Loans | 14,336 | 11,131 | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 236 | 297 | |||
Allowance for Loan and Lease Losses, Write-offs | 0 | 0 | |||
Recoveries | 37 | 0 | |||
(Recapture) provision | (47) | 34 | |||
Loans and Leases Receivable, Allowance, Ending Balance | 226 | 331 | |||
Financing Receivable, Collectively Evaluated for Impairment | 14,292 | 11,038 | |||
Financing Receivable, Individually Evaluated for Impairment | 44 | 93 | |||
Consumer | General Reserve | |||||
Loans receivable allowance for loan losses | 226 | 331 | 226 | 331 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Ending Balance | 226 | 331 | |||
Property total | |||||
Impaired Financing Receivable, Related Allowance | 50 | 62 | 95 | ||
Loans receivable allowance for loan losses | 13,347 | 12,882 | 13,808 | $ 13,347 | 13,136 |
Total Loans | 1,066,220 | 1,005,440 | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 13,347 | 12,882 | |||
Allowance for Loan and Lease Losses, Write-offs | 0 | 0 | |||
Recoveries | 61 | 4,254 | |||
(Recapture) provision | 400 | (4,000) | |||
Loans and Leases Receivable, Allowance, Ending Balance | 13,808 | 13,136 | |||
Financing Receivable, Collectively Evaluated for Impairment | 1,058,257 | 989,018 | |||
Financing Receivable, Individually Evaluated for Impairment | 7,963 | 16,422 | |||
Property total | General Reserve | |||||
Loans receivable allowance for loan losses | 13,758 | 13,041 | $ 13,758 | $ 13,041 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Ending Balance | $ 13,758 | $ 13,041 |
Loans Receivable_ Narratives (D
Loans Receivable: Narratives (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Loans Pledged as Collateral | $ 480,700,000 | $ 471,400,000 | |
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | $ 6,000 | $ 6,000 | |
Loans and Leases Receivable, Ratio of Nonperforming Loans to All Loans | 0.03% | 0.08% | |
Loans and Leases Receivable, Impaired, Commitment to Lend | $ 0 | $ 0 | |
Troubled Debt Restructuring Loans | 7,800,000 | $ 9,400,000 | |
Troubled Debt Restructuring Commitment To Extend Additional Credit | 0 | $ 0 | |
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 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 ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 0 | $ 0 |
Total Loans | 1,066,220,000 | 1,037,429,000 |
One-to-four family, residential, owner occupied | ||
Total | 107,000 | 495,000 |
Current | 194,541,000 | 193,646,000 |
Total Loans | 194,648,000 | 194,141,000 |
One to four family residential non owner occupied | ||
Total | 166,000 | 0 |
Current | 156,518,000 | 147,825,000 |
Total Loans | 156,684,000 | 147,825,000 |
Multifamily | ||
Total | 0 | 0 |
Current | 167,843,000 | 169,355,000 |
Total Loans | 167,843,000 | 169,355,000 |
Commercial Real Estate | ||
Total | 0 | 326,000 |
Current | 384,686,000 | 373,472,000 |
Total Loans | 384,686,000 | 373,798,000 |
Construction Land Development | ||
Total | 0 | 0 |
Current | 114,510,000 | 108,854,000 |
Total Loans | 114,510,000 | 108,854,000 |
Real Estate, Total | ||
Total | 273,000 | 821,000 |
Current | 1,018,098,000 | 993,152,000 |
Total Loans | 1,018,371,000 | 993,973,000 |
Business | ||
Total | 0 | 0 |
Current | 33,513,000 | 30,486,000 |
Total Loans | 33,513,000 | 30,486,000 |
Consumer | ||
Total | 44,000 | 0 |
Current | 14,292,000 | 12,970,000 |
Total Loans | 14,336,000 | 12,970,000 |
Property total | ||
Total | 317,000 | 821,000 |
Current | 1,065,903,000 | 1,036,608,000 |
Total Loans | 1,066,220,000 | 1,037,429,000 |
Financing Receivables, 30 to 59 Days Past Due [Member] | One-to-four family, residential, owner occupied | ||
Total | 107,000 | 223,000 |
Financing Receivables, 30 to 59 Days Past Due [Member] | One to four family residential non owner occupied | ||
Total | 166,000 | 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 | 0 | 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 | 273,000 | 223,000 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Business | ||
Total | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer | ||
Total | 44,000 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Property total | ||
Total | 317,000 | 223,000 |
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 | 272,000 |
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 | 326,000 |
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 | 598,000 |
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 | $ 598,000 |
Loans Receivable Loans Receivab
Loans Receivable Loans Receivable: Schedule of non accrual loans by type (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 9,059 | $ 17,205 | |
Nonaccrual Loans, total | 151 | $ 752 | |
One to Four Family | |||
Nonaccrual Loans, total | 107 | 382 | |
Commercial Real Estate | |||
Nonaccrual Loans, total | 0 | 326 | |
Consumer | |||
Nonaccrual Loans, total | $ 44 | $ 44 |
Loans Receivable_ Financing R_2
Loans Receivable: Financing Receivables, Summary of loans by type and risk category (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Net | $ 1,066,220,000 | $ 1,037,429,000 |
One to four family residential | ||
Financing Receivable, Net | 351,332,000 | 341,966,000 |
Multifamily | ||
Financing Receivable, Net | 167,843,000 | 169,355,000 |
Commercial Real Estate | ||
Financing Receivable, Net | 384,686,000 | 373,798,000 |
Construction Land Development [Member] | ||
Financing Receivable, Net | 114,510,000 | 108,854,000 |
Business [Member] | ||
Financing Receivable, Net | 33,513,000 | 30,486,000 |
Consumer | ||
Financing Receivable, Net | 14,336,000 | 12,970,000 |
Property total | ||
Financing Receivable, Net | 1,066,220,000 | 1,037,429,000 |
One-to-four family, residential, owner occupied | ||
Financing Receivable, Net | 194,648,000 | 194,141,000 |
One to four family residential non owner occupied | ||
Financing Receivable, Net | 156,684,000 | 147,825,000 |
Performing Financing Receivable | One to four family residential | ||
Financing Receivable, Net | 351,225,000 | 341,584,000 |
Performing Financing Receivable | Multifamily | ||
Financing Receivable, Net | 167,843,000 | 169,355,000 |
Performing Financing Receivable | Commercial Real Estate | ||
Financing Receivable, Net | 384,686,000 | 373,472,000 |
Performing Financing Receivable | Construction Land Development [Member] | ||
Financing Receivable, Net | 114,510,000 | 108,854,000 |
Performing Financing Receivable | Business [Member] | ||
Financing Receivable, Net | 33,513,000 | 30,486,000 |
Performing Financing Receivable | Consumer | ||
Financing Receivable, Net | 14,292,000 | 12,926,000 |
Performing Financing Receivable | Property total | ||
Financing Receivable, Net | 1,066,069,000 | 1,036,677,000 |
Performing Financing Receivable | One-to-four family, residential, owner occupied | ||
Financing Receivable, Net | 194,500,000 | 193,800,000 |
Performing Financing Receivable | One to four family residential non owner occupied | ||
Financing Receivable, Net | 156,700,000 | 147,800,000 |
Nonperforming Financing Receivable | One to four family residential | ||
Financing Receivable, Net | 107,000 | 382,000 |
Nonperforming Financing Receivable | Multifamily | ||
Financing Receivable, Net | 0 | 0 |
Nonperforming Financing Receivable | Commercial Real Estate | ||
Financing Receivable, Net | 0 | 326,000 |
Nonperforming Financing Receivable | Construction Land Development [Member] | ||
Financing Receivable, Net | 0 | 0 |
Nonperforming Financing Receivable | Business [Member] | ||
Financing Receivable, Net | 0 | 0 |
Nonperforming Financing Receivable | Consumer | ||
Financing Receivable, Net | 44,000 | 44,000 |
Nonperforming Financing Receivable | Property total | ||
Financing Receivable, Net | 151,000 | 752,000 |
Nonperforming Financing Receivable | One-to-four family, residential, owner occupied | ||
Financing Receivable, Net | 107,000 | 382,000 |
Pass | ||
Financing Receivable, Net | 1,062,071,000 | 1,033,621,000 |
Special Mention | ||
Financing Receivable, Net | 3,462,000 | 2,519,000 |
Substandard | ||
Financing Receivable, Net | 687,000 | 1,289,000 |
Consumer [Member] | ||
Financing Receivable, Net | 14,336,000 | 12,970,000 |
Consumer [Member] | Pass | ||
Financing Receivable, Net | 14,292,000 | 12,926,000 |
Consumer [Member] | Special Mention | ||
Financing Receivable, Net | 0 | 0 |
Consumer [Member] | Substandard | ||
Financing Receivable, Net | 44,000 | 44,000 |
Business [Member] | ||
Financing Receivable, Net | 33,513,000 | 30,486,000 |
Business [Member] | Pass | ||
Financing Receivable, Net | 33,513,000 | 30,486,000 |
Business [Member] | Special Mention | ||
Financing Receivable, Net | 0 | 0 |
Business [Member] | Substandard | ||
Financing Receivable, Net | 0 | 0 |
Commercial Real Estate 1 [Member] | ||
Financing Receivable, Net | 384,686,000 | 373,798,000 |
Commercial Real Estate 1 [Member] | Pass | ||
Financing Receivable, Net | 384,149,000 | 372,690,000 |
Commercial Real Estate 1 [Member] | Special Mention | ||
Financing Receivable, Net | 537,000 | 782,000 |
Commercial Real Estate 1 [Member] | Substandard | ||
Financing Receivable, Net | 0 | 326,000 |
Multifamily | ||
Financing Receivable, Net | 167,843,000 | 169,355,000 |
Multifamily | Pass | ||
Financing Receivable, Net | 167,843,000 | 169,355,000 |
Multifamily | Special Mention | ||
Financing Receivable, Net | 0 | 0 |
Multifamily | Substandard | ||
Financing Receivable, Net | 0 | 0 |
One to four family residential | ||
Financing Receivable, Net | 351,332,000 | 341,966,000 |
One to four family residential | Pass | ||
Financing Receivable, Net | 349,894,000 | 339,310,000 |
One to four family residential | Special Mention | ||
Financing Receivable, Net | 795,000 | 1,737,000 |
One to four family residential | Substandard | ||
Financing Receivable, Net | 643,000 | 919,000 |
Construction Land Development [Member] | ||
Financing Receivable, Net | 114,510,000 | 108,854,000 |
Construction Land Development [Member] | Pass | ||
Financing Receivable, Net | 112,380,000 | 108,854,000 |
Construction Land Development [Member] | Special Mention | ||
Financing Receivable, Net | 2,130,000 | 0 |
Construction Land Development [Member] | Substandard | ||
Financing Receivable, Net | $ 0 | $ 0 |
Loans Receivable_ Schedule of I
Loans Receivable: Schedule of Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | $ 5,680 | $ 11,259 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 85 | 191 | |
Impaired Financing Receivable, Recorded Investment | 7,913 | $ 10,087 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 3,379 | 5,946 | |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 39 | 90 | |
Impaired Financing Receivable, Average Recorded Investment | 9,059 | 17,205 | |
Impaired Financing Receivable, Interest Income, Accrual Method | 124 | 281 | |
One-to-four family, residential, owner occupied | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 847 | 1,308 | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,030 | 1,477 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 511 | 513 | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 558 | 560 | |
Impaired Financing Receivable, Related Allowance | 18 | 22 | |
Impaired Financing Receivable, Recorded Investment | 1,358 | 1,821 | |
Impaired Financing Receivable, Unpaid Principal Balance | 1,588 | 2,037 | |
One to four family residential non owner occupied | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,040 | 2,375 | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 2,040 | 2,375 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 2,365 | 3,126 | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 2,365 | 3,148 | |
Impaired Financing Receivable, Related Allowance | 32 | 37 | |
Impaired Financing Receivable, Recorded Investment | 4,405 | 5,501 | |
Impaired Financing Receivable, Unpaid Principal Balance | 4,405 | 5,523 | |
Multifamily | |||
Impaired Financing Receivable, Related Allowance | 0 | 0 | |
Commercial Real Estate | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,156 | 2,499 | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 2,156 | 2,499 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 241 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 241 | ||
Impaired Financing Receivable, Related Allowance | 0 | 26 | 3 |
Impaired Financing Receivable, Recorded Investment | 2,156 | 2,740 | |
Impaired Financing Receivable, Unpaid Principal Balance | 2,156 | 2,740 | |
Consumer | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 44 | 87 | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 72 | 141 | |
Impaired Financing Receivable, Related Allowance | 0 | 0 | |
Impaired Financing Receivable, Recorded Investment | 44 | 87 | |
Impaired Financing Receivable, Unpaid Principal Balance | 72 | 141 | |
Construction Land Development [Member] | |||
Impaired Financing Receivable, Related Allowance | 0 | 0 | |
Property total | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 5,087 | 6,269 | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 5,298 | 6,492 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 2,876 | 3,880 | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 2,923 | 3,949 | |
Impaired Financing Receivable, Related Allowance | 50 | 95 | 62 |
Impaired Financing Receivable, Recorded Investment | 7,963 | 10,149 | |
Impaired Financing Receivable, Unpaid Principal Balance | 8,221 | $ 10,441 | |
Consumer Loan [Member] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 66 | 94 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 1 | 2 | |
Impaired Financing Receivable, Average Recorded Investment | 66 | 94 | |
Impaired Financing Receivable, Interest Income, Accrual Method | 1 | 2 | |
Commercial Real Estate | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 2,328 | 1,062 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 38 | 19 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 121 | 2,121 | |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 0 | 34 | |
Impaired Financing Receivable, Average Recorded Investment | 2,449 | 3,183 | |
Impaired Financing Receivable, Interest Income, Accrual Method | 38 | 53 | |
Multifamily | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 0 | 1,131 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 0 | 18 | |
Impaired Financing Receivable, Average Recorded Investment | 0 | 1,131 | |
Impaired Financing Receivable, Interest Income, Accrual Method | 0 | 18 | |
One to four family residential non owner occupied | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 2,208 | 7,658 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 31 | 127 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 2,746 | 3,304 | |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 30 | 47 | |
Impaired Financing Receivable, Average Recorded Investment | 4,954 | 10,962 | |
Impaired Financing Receivable, Interest Income, Accrual Method | 61 | 174 | |
One-to-four family, residential, owner occupied | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,078 | 1,314 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 15 | 25 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 512 | 521 | |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 9 | 9 | |
Impaired Financing Receivable, Average Recorded Investment | 1,590 | 1,835 | |
Impaired Financing Receivable, Interest Income, Accrual Method | $ 24 | $ 34 |
Loans Receivable_ Average Recor
Loans Receivable: Average Recorded Investment and Interest Income Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | $ 5,680 | $ 11,259 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 85 | 191 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 3,379 | 5,946 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 39 | 90 |
Impaired Financing Receivable, Average Recorded Investment | 9,059 | 17,205 |
Impaired Financing Receivable, Interest Income, Accrual Method | 124 | 281 |
One-to-four family, residential, owner occupied | ||
Accounts, Notes, Loans and Financing Receivable | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,078 | 1,314 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 15 | 25 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 512 | 521 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 9 | 9 |
Impaired Financing Receivable, Average Recorded Investment | 1,590 | 1,835 |
Impaired Financing Receivable, Interest Income, Accrual Method | 24 | 34 |
One to four family residential non owner occupied | ||
Accounts, Notes, Loans and Financing Receivable | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 2,208 | 7,658 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 31 | 127 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 2,746 | 3,304 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 30 | 47 |
Impaired Financing Receivable, Average Recorded Investment | 4,954 | 10,962 |
Impaired Financing Receivable, Interest Income, Accrual Method | 61 | 174 |
Multifamily | ||
Accounts, Notes, Loans and Financing Receivable | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 0 | 1,131 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 0 | 18 |
Impaired Financing Receivable, Average Recorded Investment | 0 | 1,131 |
Impaired Financing Receivable, Interest Income, Accrual Method | 0 | 18 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 2,328 | 1,062 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 38 | 19 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 121 | 2,121 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 0 | 34 |
Impaired Financing Receivable, Average Recorded Investment | 2,449 | 3,183 |
Impaired Financing Receivable, Interest Income, Accrual Method | 38 | 53 |
Consumer Loan | ||
Accounts, Notes, Loans and Financing Receivable | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 66 | 94 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 1 | 2 |
Impaired Financing Receivable, Average Recorded Investment | 66 | 94 |
Impaired Financing Receivable, Interest Income, Accrual Method | $ 1 | $ 2 |
Loans Receivable_ Troubled Debt
Loans Receivable: Troubled Debt Restructurings on Financing Receivables (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)loan | Mar. 31, 2018USD ($)loan | Dec. 31, 2018USD ($) | |
Loan Restructuring, Trial Modifications, Amount | loan | 9 | 0 | |
Financing Receivable, Modifications, Recorded Investment | $ 7,800,000 | $ 9,400,000 | |
Troubled Debt Restructuring Commitment To Extend Additional Credit | 0 | $ 0 | |
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 0 | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 1,518,000 | 0 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 1,518,000 | $ 0 | |
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 |
One to four family residential [Member] | Principal and Interest with Interest Rate Concession [Member] | |||
Loan Restructuring, Trial Modifications, Amount | loan | 6 | 0 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 824,000 | $ 0 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 824,000 | $ 0 | |
One to four family residential [Member] | Advancement of Maturity Date [Member] | |||
Loan Restructuring, Trial Modifications, Amount | loan | 3 | 0 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 694,000 | $ 0 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 694,000 | $ 0 |
Other Real Estate Owned - Other
Other Real Estate Owned - Other Real Estate, Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other Real Estate [Roll Forward] | ||
Balance at beginning of period | $ 483 | $ 483 |
Market value adjustments | 29 | 0 |
Balance at end of period | $ 454 | $ 483 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) | 3 Months Ended | |||
Mar. 31, 2019USD ($)property | Mar. 31, 2018USD ($)property | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Real Estate [Line Items] | ||||
Real estate properties sold | property | 0 | 0 | ||
Market value adjustments | $ 29,000 | $ 0 | ||
Other real estate | 454,000 | $ 483,000 | $ 483,000 | $ 483,000 |
Real Estate Acquired Through Foreclosure | 0 | |||
Commercial Real Estate | ||||
Real Estate [Line Items] | ||||
Other real estate | $ 454,000 |
Fair Value (Details)
Fair Value (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Specific reserves on performing TDRs | $ 50,000 | $ 62,000 |
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 ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | $ 138,658,000 | $ 142,170,000 |
Derivative fair value asset | 1,203,000 | 1,662,000 |
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | 139,861,000 | 143,832,000 |
Mortgage-backed investments, Fannie Mae | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 23,686,000 | 23,643,000 |
Mortgage-backed investments, Freddie Mac | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 6,319,000 | 6,287,000 |
Mortgage-backed investments, Ginnie Mae | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 22,013,000 | 22,061,000 |
Mortgage backed investments other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 8,953,000 | 8,979,000 |
Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 7,767,000 | 10,544,000 |
US Government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 46,607,000 | 47,438,000 |
Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value disclosure | 23,313,000 | 23,218,000 |
Derivative Financial Instruments, Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value asset | 1,203,000 | 1,662,000 |
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 (Deprecated 2018-01-31) | 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 | 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 | 138,658,000 | 142,170,000 |
Derivative fair value asset | 1,203,000 | 1,662,000 |
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | 139,861,000 | 143,832,000 |
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 | 23,686,000 | 23,643,000 |
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 | 6,319,000 | 6,287,000 |
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 | 22,013,000 | 22,061,000 |
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 | 8,953,000 | 8,979,000 |
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 | 7,767,000 | 10,544,000 |
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 | 46,607,000 | 47,438,000 |
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 | 23,313,000 | 23,218,000 |
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 | 1,203,000 | 1,662,000 |
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 (Deprecated 2018-01-31) | 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 | 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 ($) | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative fair value asset | $ 1,203,000 | $ 1,662,000 | ||
Impaired loans (included in loans receivable, net) | 7,913,000 | 10,087,000 | ||
OREO | 454,000 | 483,000 | $ 483,000 | $ 483,000 |
Total, Fair Value | 8,367,000 | 10,570,000 | ||
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 | 0 | ||
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 | 1,203,000 | 1,662,000 | ||
Impaired loans (included in loans receivable, net) | 0 | 0 | ||
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) | 7,913,000 | 10,087,000 | ||
OREO | 454,000 | 483,000 | ||
Total, Fair Value | $ 8,367,000 | $ 10,570,000 |
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Loans Receivable | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
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 | ||
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 | 6.31% | 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, Measurements, Nonrecurring [Member] | Loans Receivable | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 7,913 | $ 10,087 |
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 454 | $ 483 |
Fair Value_ Balance Sheet Group
Fair Value: Balance Sheet Grouping (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments available-for-sale | $ 138,658,000 | $ 142,170,000 |
FHLB stock | 8,041,000 | 7,310,000 |
Derivative fair value asset | 1,203,000 | 1,662,000 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash on hand and in banks | 9,366,000 | 8,122,000 |
Interest-earning deposits with banks | 14,596,000 | 8,888,000 |
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 | 432,949,000 | 450,033,000 |
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 | 138,658,000 | 142,170,000 |
Loans receivable, net | 0 | 0 |
FHLB stock | 8,041,000 | 7,310,000 |
Accrued interest receivable | 4,861,000 | 4,068,000 |
Derivative fair value asset | 1,203,000 | 1,662,000 |
Deposits | 0 | 0 |
Certificates of deposit, retail | 400,539,000 | 390,101,000 |
Certificates of deposit, brokered | 123,417,000 | 97,466,000 |
Advances from the FHLB | 163,689,000 | 146,357,000 |
Accrued interest payable | 478,000 | 478,000 |
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 | 1,041,639,000 | 1,012,114,000 |
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 | 9,366,000 | 8,122,000 |
Interest-earning deposits with banks | 14,596,000 | 8,888,000 |
Investments available-for-sale | 138,658,000 | 142,170,000 |
Loans receivable, net | 1,051,711,000 | 1,022,904,000 |
FHLB stock | 8,041,000 | 7,310,000 |
Accrued interest receivable | 4,861,000 | 4,068,000 |
Derivative fair value asset | 1,203,000 | 1,662,000 |
Deposits | 432,949,000 | 450,033,000 |
Certificates of deposit, retail | 398,956,000 | 391,174,000 |
Certificates of deposit, brokered | 123,367,000 | 97,825,000 |
Advances from the FHLB | 163,500,000 | 146,500,000 |
Accrued interest payable | 478,000 | 478,000 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash on hand and in banks | 9,366,000 | 8,122,000 |
Interest-earning deposits with banks | 14,596,000 | 8,888,000 |
Investments available-for-sale | 138,658,000 | 142,170,000 |
Loans receivable, net | 1,041,639,000 | 1,012,114,000 |
FHLB stock | 8,041,000 | 7,310,000 |
Accrued interest receivable | 4,861,000 | 4,068,000 |
Derivative fair value asset | 1,203,000 | 1,662,000 |
Deposits | 432,949,000 | 450,033,000 |
Certificates of deposit, retail | 400,539,000 | 390,101,000 |
Certificates of deposit, brokered | 123,417,000 | 97,466,000 |
Advances from the FHLB | 163,689,000 | 146,357,000 |
Accrued interest payable | $ 478,000 | $ 478,000 |
Leases (Details)
Leases (Details) | 3 Months Ended |
Mar. 31, 2019USD ($)Rate | |
Leases [Abstract] | |
Monthly lease payment | $ 51,000 |
Operating Lease, Expense | 175,000 |
Operating Lease, Right-of-Use Asset | $ 1.7 |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 2 months 12 days |
Lessee, Operating Lease, Discount Rate | Rate | 2.96% |
Lessee, Operating Lease, Term of Contract | 65 months |
Leases (Maturity of Leases) (De
Leases (Maturity of Leases) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Lessee, Operating Lease, Term of Contract | 65 months |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 2 months 12 days |
Due through one year | $ 527 |
Due after one year through two years | 471 |
Due after two years through three years | 300 |
Due after three years through four years | 277 |
Due after four years through five years | 176 |
Due after five years | 112 |
Total minimum lease payments | 1,863 |
Less: present value discount | (118) |
Lease liability | $ 1,745 |
Derivatives (Details)
Derivatives (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ (363,000) | $ 108,000 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 950,000 | |
Derivative fair value asset | 1,203,000 | 1,662,000 |
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | 0 | |
FHLB of Des Moines [Member] | ||
Derivative [Line Items] | ||
Debt Instrument, Face Amount | 50,000,000 | |
Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 50,000,000 | |
Derivative fair value asset | $ 1,203,000 | $ 1,662,000 |
Derivative, Fixed Interest Rate | 1.34% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 124,000 | $ 84,000 | |
Tax benefit from compensation expense | $ 26,000 | $ 18,000 | |
Grants in period | 50,000 | ||
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 | ||
Available for grant (shares) | 1,207,274 | ||
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 | ||
Available for grant (shares) | 328,637 | ||
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 | $ 323,000 | ||
Compensation cost not yet recognized, weighted average vesting period | 3 years 10 months 3 days | ||
First Financial Northwest, Inc. 2008 Equity Incentive Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost not yet recognized | $ 247,000 | ||
Compensation cost not yet recognized, weighted average vesting period | 11 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 16,698 | 20,987 | |
Granted, Shares | 16,698 | ||
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 | ||
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 | 35,000 | ||
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 | 280,000 |
Stock-Based Compensation Disclo
Stock-Based Compensation Disclosure of Share-based Compensation Arrangements by Share-based Payment Award (Details) | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding Beginning Balance, Shares | shares | 315,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | shares | 50,000 |
Outstanding Ending Balance, Shares | shares | 365,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Outstanding Beginning Balance, Weighted Average Exercise Price | $ 10.34 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | 15.80 |
Outstanding Ending Balance, Weighted Average Exercise Price | $ 11.09 |
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 5 months 5 days |
Outstanding Ending Balance, Weighted Average Remaining Contractual Term | 5 years 5 months 5 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options Outstanding, Aggregate Intrinsic [Roll Forward] | |
Outstanding Beginning Balance, Aggregate Intrinsic Value | $ | $ 1,615,600 |
Outstanding Ending Balance, Aggregate Intrinsic Value | $ | $ 1,703,800 |
Share Based Compensation, Stock Option Plan, Additional Disclosures [Abstract] | |
Expected to Vest, Weighted Average Exercise Price | $ 3.61 |
Exercisable at end of period, Shares | shares | 280,000 |
Exercisable at end of period, Weighted Average Exercise Price | 10.16 |
Exercisable at end of period, Weighted Average Remaining Contractual Term in Years | 4 years 7 months 2 days |
Exercisable at end of period, Aggregate Intrinsic Value | $ | $ 1,566,070 |
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 | $ 3.69 |
Granted, Weighted Average Grant Date Fair Value | 5.03 |
Nonvested Ending Balance, Weighted-Average Grant Date Fair Value | $ 3.88 |
First Financial Northwest, Inc. 2008 Equity Incentive Plan | Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested Beginning Balance | shares | 20,987 |
Granted, Shares | shares | 16,698 |
Vested, Shares | shares | (20,987) |
Nonvested Ending Balance | shares | 16,698 |
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 | $ 15.90 |
Granted, Weighted Average Grant Date Fair Value | 16.53 |
Vested, Weighted Average Grant Date Fair Value | 15.90 |
Nonvested Ending Balance, Weighted-Average Grant Date Fair Value | $ 16.53 |
Expected to vest assuming a 3% forfeiture rate over the vesting term | |
Share Based Compensation, Stock Option Plan, Additional Disclosures [Abstract] | |
Expected to Vest, Shares | shares | 362,450 |
Expected to Vest, Weighted Average Exercise Price | $ 11.07 |
Expected to Vest, Weighted Average Remaining Contractual Term in Years | 5 years 4 months 27 days |
Expected to Vest, Aggregate Intrinsic Value | $ | $ 1,699,668 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Vested, Weighted Average Grant Date Fair Value | $ 3.87 |
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 | shares | 0 |
Expected to vest assuming a 3% forfeiture rate over the vesting term, Shares | shares | 16,197 |
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 | $ 16.53 |
Earnings Per Share_ Schedule _2
Earnings Per Share: Schedule of Earnings Per Share Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income | $ 1,945 | $ 6,842 |
Less: Earnings allocated to participating securities | 3 | 16 |
Earnings allocated to common shareholders | $ 1,942 | $ 6,826 |
Basic weighted average common shares outstanding | 10,118,286 | 10,210,828 |
Dilutive stock options | 89,718 | 122,465 |
Dilutive restricted stock grants | 12,896 | 3,273 |
Diluted weighted average common shares outstanding | 10,220,900 | 10,336,566 |
Basic earnings (loss) per share (in dollars per share) | $ 0.19 | $ 0.67 |
Diluted earnings (loss) per share (in dollars per share) | $ 0.19 | $ 0.66 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 50,000 | 0 |
Branch Acquisition (Narrative)
Branch Acquisition (Narrative) (Details) - USD ($) | Aug. 25, 2017 | Mar. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 889,000 | $ 889,000 | |
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 | 1,100,000 | |
Goodwill | $ 889,000 | ||
Goodwill [Member] | Opus Bank [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 889,000 |
Branch Acquisition (Noninterest
Branch Acquisition (Noninterest Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Business Acquisition [Line Items] | ||
Salaries and employee benefits | $ 5,000 | $ 4,662 |
Occupancy and equipment | 866 | 769 |
Information Technology and Data Processing | 518 | 324 |
Marketing | 86 | 107 |
Other general and administrative | 470 | 575 |
Total noninterest expense | $ 7,709 | $ 7,027 |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Net loss on sale of investments | $ (8,000) | $ 0 |
Revenue from Contract with Customer, Excluding Assessed Tax | 700,000 | 646,000 |
BOLI change in cash surrender value (1) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 269,000 | 249,000 |
Wealth management revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 196,000 | 99,000 |
Deposit related fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 69,000 | 63,000 |
Debit card and ATM fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 102,000 | 98,000 |
Loan related fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 47,000 | 87,000 |
Loan interest swap fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 16,000 | 47,000 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 9,000 | $ 3,000 |
Revenue Recognition (Details)
Revenue Recognition (Details) | Mar. 31, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Contract Liability | $ 0 |
Performance Obligation | $ 0 |
Uncategorized Items - ffnw-2019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 87,000 |