Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | Territorial Bancorp Inc. | |
Entity Central Index Key | 0001447051 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 9,671,850 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 41,528 | $ 47,063 |
Investment securities available for sale, at fair value | 13,349 | 2,560 |
Investment securities held to maturity, at amortized cost (fair value of $356,321 and $364,922 at June 30, 2019 and December 31, 2018, respectively) | 350,944 | 371,517 |
Loans held for sale | 235 | 309 |
Loans receivable, net | 1,598,476 | 1,574,714 |
Federal Home Loan Bank stock, at cost | 8,303 | 8,093 |
Federal Reserve Bank stock, at cost | 3,116 | 3,114 |
Accrued interest receivable | 5,575 | 5,274 |
Premises and equipment, net | 4,597 | 4,823 |
Right-of-use asset, net | 11,622 | |
Bank-owned life insurance | 44,695 | 45,066 |
Deferred income tax assets, net | 2,919 | 4,136 |
Prepaid expenses and other assets | 2,538 | 2,537 |
Total assets | 2,087,897 | 2,069,206 |
Liabilities: | ||
Deposits | 1,645,730 | 1,629,164 |
Advances from the Federal Home Loan Bank | 145,500 | 142,200 |
Securities sold under agreements to repurchase | 10,000 | 30,000 |
Accounts payable and accrued expenses | 24,016 | 23,346 |
Lease liability | 12,121 | |
Income taxes payable | 1,878 | 2,407 |
Advance payments by borrowers for taxes and insurance | 6,880 | 7,010 |
Total liabilities | 1,846,125 | 1,834,127 |
Stockholders' Equity: | ||
Preferred stock, $0.01 par value; authorized 50,000,000 shares, no shares issued or outstanding | ||
Common stock, $0.01 par value; authorized 100,000,000 shares; issued and outstanding 9,664,793 and 9,645,955 shares at June 30, 2019 and December 31, 2018, respectively | 97 | 97 |
Additional paid-in capital | 64,335 | 65,090 |
Unearned ESOP shares | (4,649) | (4,893) |
Retained earnings | 189,189 | 182,594 |
Accumulated other comprehensive loss | (7,200) | (7,809) |
Total stockholders' equity | 241,772 | 235,079 |
Total liabilities and stockholders' equity | $ 2,087,897 | $ 2,069,206 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Consolidated Balance Sheets | ||
Investment securities held to maturity, fair value (in dollars) | $ 356,321 | $ 364,922 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock, shares issued | 9,664,793 | 9,645,955 |
Common stock, shares outstanding | 9,664,793 | 9,645,955 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest income: | ||||
Loans | $ 16,003 | $ 14,884 | $ 31,611 | $ 29,791 |
Investment securities | 2,847 | 3,122 | 5,718 | 6,251 |
Other investments | 264 | 176 | 490 | 374 |
Total interest income | 19,114 | 18,182 | 37,819 | 36,416 |
Interest expense: | ||||
Deposits | 3,514 | 2,690 | 6,738 | 5,141 |
Advances from the Federal Home Loan Bank | 897 | 459 | 1,452 | 878 |
Securities sold under agreements to repurchase | 41 | 126 | 131 | 251 |
Total interest expense | 4,452 | 3,275 | 8,321 | 6,270 |
Net interest income | 14,662 | 14,907 | 29,498 | 30,146 |
Provision (reversal of provision) for loan losses | (51) | 60 | (46) | 69 |
Net interest income after provision (reversal of provision) for loan losses | 14,713 | 14,847 | 29,544 | 30,077 |
Noninterest income: | ||||
Service fees on loan and deposit accounts | 485 | 487 | 923 | 902 |
Income on bank-owned life insurance | 210 | 216 | 417 | 431 |
Gain on sale of investment securities | 70 | 45 | 2,787 | 45 |
Gain on sale of loans | 10 | 6 | 53 | |
Other | 508 | 79 | 580 | 148 |
Total noninterest income | 1,273 | 837 | 4,713 | 1,579 |
Noninterest expense: | ||||
Salaries and employee benefits | 5,730 | 5,496 | 11,416 | 11,143 |
Occupancy | 1,578 | 1,574 | 3,170 | 3,090 |
Equipment | 1,018 | 997 | 2,111 | 1,939 |
Federal deposit insurance premiums | 143 | 154 | 287 | 307 |
Other general and administrative expenses | 1,042 | 1,153 | 2,301 | 2,288 |
Total noninterest expense | 9,511 | 9,374 | 19,285 | 18,767 |
Income before income taxes | 6,475 | 6,310 | 14,972 | 12,889 |
Income taxes | 1,415 | 1,347 | 3,388 | 3,106 |
Net income | $ 5,060 | $ 4,963 | $ 11,584 | $ 9,783 |
Basic earnings per share (in dollars per share) | $ 0.55 | $ 0.54 | $ 1.26 | $ 1.05 |
Diluted earnings per share (in dollars per share) | 0.54 | 0.53 | 1.24 | 1.03 |
Cash dividends declared per common share (in dollars per share) | $ 0.32 | $ 0.30 | $ 0.54 | $ 0.50 |
Basic weighted-average shares outstanding (in shares) | 9,172,376 | 9,219,859 | 9,170,825 | 9,251,999 |
Diluted weighted-average shares outstanding (in shares) | 9,276,680 | 9,394,031 | 9,294,327 | 9,439,618 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Consolidated Statements of Comprehensive Income | ||||
Net income | $ 5,060 | $ 4,963 | $ 11,584 | $ 9,783 |
Change in unrealized gain or loss on securities, net of tax | 119 | (11) | 609 | (60) |
Other comprehensive income (loss), net of tax | 119 | (11) | 609 | (60) |
Comprehensive income | $ 5,179 | $ 4,952 | $ 12,193 | $ 9,723 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Unearned ESOP Shares | Retained Earnings | Accumulated Other Comprehensive Loss | Total |
Balance at Dec. 31, 2017 | $ 99 | $ 73,050 | $ (5,383) | $ 172,782 | $ (5,694) | $ 234,854 |
Balance (in shares) at Dec. 31, 2017 | 9,915,058 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 4,820 | 4,820 | ||||
Other comprehensive income (loss) | (49) | (49) | ||||
Reclassification of deferred taxes | 1,135 | (1,135) | ||||
Cash dividends declared ($0.22 per share, $0.20 per share for three month ended March 31, 2019 and 2018 and $0.30 per share, $0.32 per share for the three months ended June 30, 2019 and 2018, respectively) | (1,881) | (1,881) | ||||
Share-based compensation | 67 | 67 | ||||
Allocation of ESOP shares (12,233 shares for the three months ended March 31, 2019 and March 31, 2018 and three months ended June 30, 2019 and June 30, 2018, respectively) | 253 | 123 | 376 | |||
Repurchase of shares of common stock | $ (2) | (6,125) | (6,127) | |||
Repurchase of shares of common stock (in shares) | (199,236) | |||||
Exercise of options for common stock | 312 | 312 | ||||
Exercise of options for common stock (in shares) | 18,008 | |||||
Balance at Mar. 31, 2018 | $ 97 | 67,557 | (5,260) | 176,856 | (6,878) | 232,372 |
Balance (in shares) at Mar. 31, 2018 | 9,733,830 | |||||
Balance at Dec. 31, 2017 | $ 99 | 73,050 | (5,383) | 172,782 | (5,694) | 234,854 |
Balance (in shares) at Dec. 31, 2017 | 9,915,058 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 9,783 | |||||
Other comprehensive income (loss) | (60) | (60) | ||||
Balance at Jun. 30, 2018 | $ 98 | 67,584 | (5,138) | 179,044 | (6,889) | 234,699 |
Balance (in shares) at Jun. 30, 2018 | 9,749,697 | |||||
Balance at Mar. 31, 2018 | $ 97 | 67,557 | (5,260) | 176,856 | (6,878) | 232,372 |
Balance (in shares) at Mar. 31, 2018 | 9,733,830 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 4,963 | 4,963 | ||||
Other comprehensive income (loss) | (11) | (11) | ||||
Cash dividends declared ($0.22 per share, $0.20 per share for three month ended March 31, 2019 and 2018 and $0.30 per share, $0.32 per share for the three months ended June 30, 2019 and 2018, respectively) | (2,775) | (2,775) | ||||
Share-based compensation | 68 | 68 | ||||
Share-based compensation (in shares) | 3,201 | |||||
Allocation of ESOP shares (12,233 shares for the three months ended March 31, 2019 and March 31, 2018 and three months ended June 30, 2019 and June 30, 2018, respectively) | 251 | 122 | 373 | |||
Repurchase of shares of common stock | (1,177) | (1,177) | ||||
Repurchase of shares of common stock (in shares) | (38,334) | |||||
Exercise of options for common stock | $ 1 | 885 | 886 | |||
Exercise of options for common stock (in shares) | 51,000 | |||||
Balance at Jun. 30, 2018 | $ 98 | 67,584 | (5,138) | 179,044 | (6,889) | 234,699 |
Balance (in shares) at Jun. 30, 2018 | 9,749,697 | |||||
Balance at Dec. 31, 2018 | $ 97 | 65,090 | (4,893) | 182,594 | (7,809) | 235,079 |
Balance (in shares) at Dec. 31, 2018 | 9,645,955 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 6,524 | 6,524 | ||||
Other comprehensive income (loss) | 490 | 490 | ||||
Adoption of lease accounting standard | (10) | (10) | ||||
Cash dividends declared ($0.22 per share, $0.20 per share for three month ended March 31, 2019 and 2018 and $0.30 per share, $0.32 per share for the three months ended June 30, 2019 and 2018, respectively) | (2,024) | (2,024) | ||||
Share-based compensation | 86 | 86 | ||||
Share-based compensation (in shares) | 3,340 | |||||
Allocation of ESOP shares (12,233 shares for the three months ended March 31, 2019 and March 31, 2018 and three months ended June 30, 2019 and June 30, 2018, respectively) | 211 | 122 | 333 | |||
Repurchase of shares of common stock | $ (1) | (2,933) | (2,934) | |||
Repurchase of shares of common stock (in shares) | (107,660) | |||||
Exercise of options for common stock | 1,294 | 1,294 | ||||
Exercise of options for common stock (in shares) | 74,560 | |||||
Balance at Mar. 31, 2019 | $ 96 | 63,748 | (4,771) | 187,084 | (7,319) | 238,838 |
Balance (in shares) at Mar. 31, 2019 | 9,616,195 | |||||
Balance at Dec. 31, 2018 | $ 97 | 65,090 | (4,893) | 182,594 | (7,809) | 235,079 |
Balance (in shares) at Dec. 31, 2018 | 9,645,955 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 11,584 | |||||
Other comprehensive income (loss) | 609 | 609 | ||||
Balance at Jun. 30, 2019 | $ 97 | 64,335 | (4,649) | 189,189 | (7,200) | 241,772 |
Balance (in shares) at Jun. 30, 2019 | 9,664,793 | |||||
Balance at Mar. 31, 2019 | $ 96 | 63,748 | (4,771) | 187,084 | (7,319) | 238,838 |
Balance (in shares) at Mar. 31, 2019 | 9,616,195 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 5,060 | 5,060 | ||||
Other comprehensive income (loss) | 119 | 119 | ||||
Cash dividends declared ($0.22 per share, $0.20 per share for three month ended March 31, 2019 and 2018 and $0.30 per share, $0.32 per share for the three months ended June 30, 2019 and 2018, respectively) | (2,955) | (2,955) | ||||
Share-based compensation | 285 | 285 | ||||
Share-based compensation (in shares) | 3,201 | |||||
Allocation of ESOP shares (12,233 shares for the three months ended March 31, 2019 and March 31, 2018 and three months ended June 30, 2019 and June 30, 2018, respectively) | 223 | 122 | 345 | |||
Repurchase of shares of common stock | $ (1) | (1,788) | (1,789) | |||
Repurchase of shares of common stock (in shares) | (62,213) | |||||
Exercise of options for common stock | $ 2 | 1,867 | 1,869 | |||
Exercise of options for common stock (in shares) | 107,610 | |||||
Balance at Jun. 30, 2019 | $ 97 | $ 64,335 | $ (4,649) | $ 189,189 | $ (7,200) | $ 241,772 |
Balance (in shares) at Jun. 30, 2019 | 9,664,793 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Consolidated Statements of Stockholders' Equity, Share Data | ||||
Cash dividends declared per common share (in dollars per share) | $ 0.32 | $ 0.22 | $ 0.30 | $ 0.20 |
Common Stock | ||||
Consolidated Statements of Stockholders' Equity, Share Data | ||||
Allocation of ESOP shares, shares | 12,233 | 12,233 | 12,233 | 12,233 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 11,584 | $ 9,783 |
Adjustments to reconcile net income to net cash from operating activities: | ||
(Reversal of provision) provision for loan losses | (46) | 69 |
Depreciation and amortization | 582 | 630 |
Deferred income tax expense | 996 | 421 |
Amortization of fees, discounts, and premiums, net | (234) | (235) |
Amortization of right-of-use asset | 1,386 | |
Origination of loans held for sale | (2,477) | (6,612) |
Proceeds from sales of loans held for sale | 2,557 | 7,068 |
Gain on sale of loans, net | (6) | (53) |
Net gain on sale of real estate owned | (4) | |
Gain on sale of investment securities available for sale | (30) | |
Gain on sale of investment securities held to maturity | (2,757) | (45) |
ESOP expense | 678 | 749 |
Share-based compensation expense | 371 | 135 |
Increase in accrued interest receivable | (301) | (53) |
Net increase in bank-owned life insurance | (417) | (430) |
Net decrease (increase) in prepaid expenses and other assets | 122 | (71) |
Net increase (decrease) in accounts payable and accrued expenses | 114 | (2,963) |
Net decrease in lease liability | (1,365) | |
Net (decrease) increase in advance payments by borrowers for taxes and insurance | (130) | 76 |
Net decrease in income taxes receivable | 375 | |
Net decrease in income taxes payable | (529) | (24) |
Net cash from operating activities | 10,098 | 8,816 |
Cash flows from investing activities: | ||
Purchases of investment securities held to maturity | (7,845) | (14,983) |
Principal repayments on investment securities held to maturity | 16,294 | 23,188 |
Principal repayments on investment securities available for sale | 660 | 106 |
Proceeds from sale of investment securities held to maturity | 3,527 | 4,462 |
Proceeds from sale of investment securities available for sale | 809 | |
Loan originations, net of principal repayments on loans receivable | (23,526) | (47,315) |
Purchases of Federal Home Loan Bank stock | (12,226) | (2,672) |
Proceeds from redemption of Federal Home Loan Bank stock | 12,016 | 3,288 |
Purchases of Federal Reserve Bank stock | (2) | (3) |
Proceeds from bank-owned life insurance | 788 | |
Proceeds from sale of real estate owned | 50 | |
Purchases of premises and equipment | (356) | (271) |
Net cash from investing activities | (9,861) | (34,150) |
Cash flows from financing activities: | ||
Net increase in deposits | 16,566 | 49,888 |
Proceeds from advances from the Federal Home Loan Bank | 303,700 | 53,000 |
Repayments of advances from the Federal Home Loan Bank | (300,400) | (72,200) |
Repayments of securities sold under agreements to repurchase | (20,000) | |
Repurchases of common stock | (1,596) | (6,106) |
Cash dividends paid | (4,042) | (3,665) |
Net cash from financing activities | (5,772) | 20,917 |
Net decrease in cash and cash equivalents | (5,535) | (4,417) |
Cash and cash equivalents at beginning of the period | 47,063 | 32,089 |
Cash and cash equivalents at end of the period | 41,528 | 27,672 |
Cash paid for: | ||
Interest on deposits and borrowings | 7,916 | 6,475 |
Income taxes | 2,921 | 2,334 |
Supplemental disclosure of noncash investing and financing activities: | ||
Company stock acquired through stock swap and net settlement transactions | 3,040 | 1,198 |
Company stock acquired, not yet settled | 123 | |
Company stock repurchased through swap and net settlement transactions | 3,127 | 1,198 |
Loans transferred to real estate owned | 46 | |
Dividends declared, not yet paid | 937 | $ 991 |
Establishment of right-of-use asset | 13,008 | |
Establishment of lease liability | 13,486 | |
Transfer of securities from held-to-maturity to available-for-sale | $ 11,390 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | (1) Basis of Presentation The accompanying unaudited consolidated financial statements of Territorial Bancorp Inc. (the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements and notes should be read in conjunction with the Company’s consolidated financial statements and notes thereto filed as part of the Annual Report on Form 10-K for the year ended December 31, 2018. In the opinion of management, all adjustments necessary for a fair presentation have been made and consist only of normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the year. . |
Organization
Organization | 6 Months Ended |
Jun. 30, 2019 | |
Organization | |
Organization | (2) Organization In 2009, Territorial Savings Bank completed a conversion from a mutual holding company to a stock holding company. As part of the conversion, Territorial Mutual Holding Company and Territorial Savings Group, Inc., the former holding companies for Territorial Savings Bank, ceased to exist as separate legal entities, and Territorial Bancorp Inc. became the holding company for Territorial Savings Bank. Upon completion of the conversion and reorganization, a special “liquidation account” was established in an amount equal to the total equity of Territorial Mutual Holding Company as of December 31, 2008. The liquidation account is to provide eligible account holders and supplemental eligible account holders who maintain their deposit accounts with Territorial Savings Bank after the conversion with a liquidation interest in the unlikely event of the complete liquidation of Territorial Savings Bank after the conversion. In 2014, Territorial Savings Bank converted from a federal savings bank to a Hawaii state-chartered savings bank and became a member of the Federal Reserve System. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
Recently Issued Accounting Pronouncements | |
Recently Issued Accounting Pronouncements | (3) Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) amended the Leases topic of the FASB Accounting Standards Codification (ASC). The primary effects of the amendment are to recognize lease assets and lease liabilities on the balance sheet and to disclose certain information about leasing arrangements. The amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company has several lease agreements for branch locations and equipment that require recognition on the consolidated balance sheets upon adoption of the amendment. The Company adopted this amendment as of January 1, 2019, by recording a right-of-use asset of $12.7 million and a lease liability of $13.2 million. In June 2016, the FASB amended various sections of the FASB ASC related to the accounting for credit losses on financial instruments. The amendment changes the threshold for recognizing losses from a “probable” to an “expected” model. The new model is referred to as the current expected credit loss model and applies to loans, leases, held-to-maturity investments, loan commitments and financial guarantees. The amendment requires the measurement of all expected credit losses for financial assets as of the reporting date (including historical experience, current conditions and reasonable and supportable forecasts) and enhanced disclosures that will help financial statement users understand the estimates and judgments used in estimating credit losses and evaluating the credit quality of an organization’s portfolio. The amendment is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. On July 17, 2019, the FASB proposed that the effective date of the amendment for smaller reporting companies, as defined by the Securities and Exchange Commission, be delayed to fiscal years beginning after December 15, 2022. The Company is considered to be a smaller reporting company. The Company will apply the amendment’s provisions as a cumulative-effect adjustment to retained earnings at the beginning of the first period the amendment is effective. The Company is currently evaluating the effects that the adoption of this amendment will have on its consolidated financial statements by gathering the information that is necessary to make the calculations required by the amendment. This may result in increased credit losses on financial instruments recorded in the consolidated financial statements. In August 2017, the FASB amended the Derivatives and Hedging topic of the FASB ASC. The primary focus of the amendment is to simplify hedge accounting and make the results of hedge transactions in the financial statements easier to understand. An ancillary result of the amendment is that an entity may make a one-time transfer of certain securities from the held-to-maturity classification to the available-for-sale classification. The amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company does not engage in hedging activities. However, it has elected to transfer $11.1 million of held-to-maturity securities to the available-for-sale classification as of January 1, 2019, and has recorded an unrecognized gain of $304,000, net of taxes, to other comprehensive income. In August 2018, the FASB amended the Fair Value Measurement topic of the FASB ASC. The amendment affects disclosures only, and includes additions, deletions and modifications of the disclosures of assets and liabilities reported in the fair value hierarchy. The amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. Entities are allowed to early adopt any removed or modified disclosures while delaying adoption of any added disclosures until the effective date. The Company does not expect the adoption of this amendment to have a material effect on its consolidated financial statements. In August 2018, the FASB amended the Compensation – Retirement Benefits topic of the FASB ASC. The amendment affects disclosures related to defined benefit pension or other post retirement plans and includes additions, deletions and clarifications of disclosures. The amendment is effective for fiscal years ending after December 15, 2020, with early adoption permitted. The Company does not expect the adoption of this amendment to have a material effect on its consolidated financial statements. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2019 | |
Cash and Cash Equivalents | |
Cash and Cash Equivalents | (4) Cash and Cash Equivalents The table below presents the balances of cash and cash equivalents: June 30, December 31, (Dollars in thousands) 2019 2018 Cash and due from banks $ 9,877 $ 9,771 Interest-earning deposits in other banks 31,651 37,292 Cash and cash equivalents $ 41,528 $ 47,063 Interest-earning deposits in other banks consist primarily of deposits at the Federal Reserve Bank of San Francisco. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investment Securities. | |
Investment Securities | (5) Investment Securities The amortized cost and fair values of investment securities are as follows: Amortized Gross Unrealized Estimated (Dollars in thousands) Cost Gains Losses Fair Value June 30, 2019: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 12,606 $ 743 $ — $ 13,349 Total $ 12,606 $ 743 $ — $ 13,349 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 350,944 $ 6,500 $ (1,123) $ 356,321 Total $ 350,944 $ 6,500 $ (1,123) $ 356,321 December 31, 2018: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 2,644 $ — $ (84) $ 2,560 Total $ 2,644 $ — $ (84) $ 2,560 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 371,442 $ 2,056 $ (9,279) $ 364,219 Trust preferred securities 75 628 — 703 Total $ 371,517 $ 2,684 $ (9,279) $ 364,922 The amortized cost and estimated fair value of investment securities by maturity date at June 30, 2019 are shown below. Incorporated in the maturity schedule are mortgage-backed securities, which are allocated using the contractual maturity as a basis. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Estimated (Dollars in thousands) Cost Fair Value Available-for-sale: Due within 5 years $ — $ — Due after 5 years through 10 years — — Due after 10 years 12,606 13,349 Total $ 12,606 $ 13,349 Held-to-maturity: Due within 5 years $ 1 $ 2 Due after 5 years through 10 years 67 68 Due after 10 years 350,876 356,251 Total $ 350,944 $ 356,321 Realized gains and losses and the proceeds from sales of held-to-maturity and available-for-sale securities are shown in the table below. Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2019 2018 2019 2018 Proceeds from sales $ 1,595 $ 4,462 $ 4,336 $ 4,462 Gross gains 70 45 2,787 45 Gross losses — — — — During the six months ended June 30, 2019, the Company sold its investment in its trust preferred security, PreTSL XXIII, and mortgage-backed securities. The sale of the trust preferred security, which had a significant deterioration in the issuer’s credit rating, and the sale of the mortgage-backed securities, for which the Company had already collected a substantial portion of the outstanding purchased principal (at least 85%), were in accordance with the Investments – Debt and Equity Securities topic of the FASB ASC and do not taint management’s assertion of its intent to hold the remaining securities in the held-to-maturity portfolio to maturity. As of January 1, 2019, the Company transferred securities with an amortized cost of $11.4 million from held-to-maturity to available-for-sale with the adoption of ASU 2017-12 on derivatives and hedging. Investment securities with amortized costs of $193.6 million and $308.8 million at June 30, 2019 and December 31, 2018, respectively, were pledged to secure deposits made by state and local governments, securities sold under agreements to repurchase and transaction clearing accounts. Provided below is a summary of investment securities which were in an unrealized loss position at June 30, 2019 and December 31, 2018. The Company does not intend to sell held-to-maturity and available-for-sale securities until such time as the value recovers or the securities mature and it is not more likely than not that the Company will be required to sell the securities prior to recovery of value or the securities mature. Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Number of Unrealized Description of securities Fair Value Losses Fair Value Losses Securities Fair Value Losses (Dollars in thousands) June 30, 2019: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ — $ — $ — $ — — $ — $ — Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ — $ — $ 106,894 $ (1,123) 38 $ 106,894 $ (1,123) December 31, 2018: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ — $ — $ 2,560 $ (84) 1 $ 2,560 $ (84) Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 57,154 $ (254) $ 220,338 $ (9,025) 81 $ 277,492 $ (9,279) Mortgage-Backed Securities. The unrealized losses on the Company’s investment in mortgage-backed securities were caused by increases in market interest rates subsequent to purchase. All of the mortgage-backed securities are guaranteed by Freddie Mac or Fannie Mae, which are U.S. government-sponsored enterprises, or Ginnie Mae, which is a U.S. government agency. Since the decline in market value is attributable to changes in interest rates and not credit quality, and the Company does not intend to sell these investments until maturity and it is not more likely than not that the Company will be required to sell such investments prior to recovery of its cost basis, the Company does not consider these investments to be other-than-temporarily impaired as of June 30, 2019 and December 31, 2018. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2019 | |
Loans Receivable and Allowance for Loan Losses | |
Loans Receivable and Allowance for Loan Losses | (6) Loans Receivable and Allowance for Loan Losses The components of loans receivable are as follows: June 30, December 31, (Dollars in thousands) 2019 2018 Real estate loans: First mortgages: One- to four-family residential $ 1,554,982 $ 1,531,149 Multi-family residential 12,725 12,151 Construction, commercial and other 19,066 20,780 Home equity loans and lines of credit 10,804 11,090 Total real estate loans 1,597,577 1,575,170 Other loans: Loans on deposit accounts 339 357 Consumer and other loans 6,070 4,939 Total other loans 6,409 5,296 Less: Net unearned fees and discounts (2,894) (3,110) Allowance for loan losses (2,616) (2,642) Total unearned fees, discounts and allowance for loan losses (5,510) (5,752) Loans receivable, net $ 1,598,476 $ 1,574,714 The table below presents the activity in the allowance for loan losses by portfolio segment: Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals Three months ended June 30, 2019: Balance, beginning of period $ 1,800 $ 454 $ 1 $ 45 $ 359 $ 2,659 Provision (reversal of provision) for loan losses (31) (43) — (9) 32 (51) 1,769 411 1 36 391 2,608 Charge-offs — — — (9) — (9) Recoveries — — — 17 — 17 Net recoveries — — — 8 — 8 Balance, end of period $ 1,769 $ 411 $ 1 $ 44 $ 391 $ 2,616 Six months ended June 30, 2019: Balance, beginning of period $ 1,797 $ 443 $ 1 $ 47 $ 354 $ 2,642 Provision (reversal of provision) for loan losses (46) (32) — (5) 37 (46) 1,751 411 1 42 391 2,596 Charge-offs — — — (16) — (16) Recoveries 18 — — 18 — 36 Net recoveries 18 — — 2 — 20 Balance, end of period $ 1,769 $ 411 $ 1 $ 44 $ 391 $ 2,616 Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals Three months ended June 30, 2018: Balance, beginning of period $ 1,720 $ 530 $ 1 $ 49 $ 254 $ 2,554 Provision for loan losses 34 17 — 2 7 60 1,754 547 1 51 261 2,614 Charge-offs — — — (7) — (7) Recoveries 6 — — 1 — 7 Net recoveries (charge-offs) 6 — — (6) — — Balance, end of period $ 1,760 $ 547 $ 1 $ 45 $ 261 $ 2,614 Six months ended June 30, 2018: Balance, beginning of period $ 1,721 $ 539 $ 1 $ 55 $ 232 $ 2,548 Provision (reversal of provision) for loan losses 33 8 — (1) 29 69 1,754 547 1 54 261 2,617 Charge-offs — — — (12) — (12) Recoveries 6 — — 3 — 9 Net recoveries (charge-offs) 6 — — (9) — (3) Balance, end of period $ 1,760 $ 547 $ 1 $ 45 $ 261 $ 2,614 Management considers the allowance for loan losses at June 30, 2019 to be at an appropriate level to provide for probable losses that can be reasonably estimated based on general and specific conditions at that date. While the Company uses the best information it has available to make evaluations, future adjustments to the allowance may be necessary if conditions differ substantially from the information used in making the evaluations. To the extent actual outcomes differ from the estimates, additional provisions for credit losses may be required that would reduce future earnings. In addition, as an integral part of their examination process, the bank regulators periodically review the allowance for loan losses and may require the Company to increase the allowance based on their analysis of information available at the time of their examination. The table below presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method: Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals June 30, 2019: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,769 411 1 44 391 2,616 Total ending allowance balance $ 1,769 $ 411 $ 1 $ 44 $ 391 $ 2,616 Loans: Ending loan balance: Individually evaluated for impairment $ 1,378 $ — $ 98 $ — $ — $ 1,476 Collectively evaluated for impairment 1,563,481 19,004 10,704 6,427 — 1,599,616 Total ending loan balance $ 1,564,859 $ 19,004 $ 10,802 $ 6,427 $ — $ 1,601,092 December 31, 2018: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,797 443 1 47 354 2,642 Total ending allowance balance $ 1,797 $ 443 $ 1 $ 47 $ 354 $ 2,642 Loans: Ending loan balance: Individually evaluated for impairment $ 2,962 $ — $ 148 $ — $ — $ 3,110 Collectively evaluated for impairment 1,537,292 20,698 10,945 5,311 — 1,574,246 Total ending loan balance $ 1,540,254 $ 20,698 $ 11,093 $ 5,311 $ — $ 1,577,356 The table below presents the balance of impaired loans individually evaluated for impairment by class of loans: Unpaid Recorded Principal (Dollars in thousands) Investment Balance June 30, 2019: With no related allowance recorded: One- to four-family residential mortgages $ 1,378 $ 1,802 Home equity loans and lines of credit 98 180 Total $ 1,476 $ 1,982 December 31, 2018: With no related allowance recorded: One- to four-family residential mortgages $ 2,962 $ 3,486 Home equity loans and lines of credit 148 224 Total $ 3,110 $ 3,710 The table below presents the average recorded investment and interest income recognized on impaired loans by class of loans: For the Three Months Ended For the Six Months Ended June 30, June 30, Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized 2019: With no related allowance recorded: One- to four-family residential mortgages $ 1,390 $ 8 $ 1,404 $ 17 Home equity loans and lines of credit 100 — 103 — Total $ 1,490 $ 8 $ 1,507 $ 17 2018: With no related allowance recorded: One- to four-family residential mortgages $ 2,869 $ 13 $ 2,892 $ 27 Home equity loans and lines of credit 158 — 160 — Total $ 3,027 $ 13 $ 3,052 $ 27 There were no loans individually evaluated for impairment with a related allowance for loan loss as of June 30, 2019 or December 31, 2018. Loans individually evaluated for impairment do not have an allocated allowance for loan loss because they were written down to fair value at the time of impairment. The Company had seven nonaccrual loans with a book value of $892,000 as of June 30, 2019 and 11 nonaccrual loans with a book value of $2.2 million as of December 31, 2018. The Company collected interest on nonaccrual loans of $34,000 and $52,000 during the six months ended June 30, 2019 and 2018, respectively, but due to regulatory requirements, the Company recorded the interest as a reduction of principal. The Company would have recognized additional interest income of $34,000 and $69,000 during the six months ended June 30, 2019 and 2018, respectively, had the loans been accruing interest. The Company did not have any loans 90 days or more past due and still accruing interest as of June 30, 2019 or December 31, 2018. The table below presents the aging of loans and accrual status by class of loans: Loans 90 Days or More 30 - 59 60 - 89 90 Days or Past Due Days Past Days Past More Total Past Loans Not Total Nonaccrual and Still (Dollars in thousands) Due Due Past Due Due Past Due Loans Loans Accruing June 30, 2019: One- to four-family residential mortgages $ 305 $ 694 $ — $ 999 $ 1,551,154 $ 1,552,153 $ 794 $ — Multi-family residential mortgages — — — — 12,706 12,706 — — Construction, commercial and other mortgages — — — — 19,004 19,004 — — Home equity loans and lines of credit 27 — — 27 10,775 10,802 98 — Loans on deposit accounts — — — — 339 339 — — Consumer and other 8 — — 8 6,080 6,088 — — Total $ 340 $ 694 $ — $ 1,034 $ 1,600,058 $ 1,601,092 $ 892 $ — December 31, 2018: One- to four-family residential mortgages $ 40 $ 292 $ 838 $ 1,170 $ 1,526,949 $ 1,528,119 $ 2,065 $ — Multi-family residential mortgages — — — — 12,135 12,135 — — Construction, commercial and other mortgages — — — — 20,698 20,698 — — Home equity loans and lines of credit — 29 41 70 11,023 11,093 148 — Loans on deposit accounts — — — — 357 357 — — Consumer and other 3 4 — 7 4,947 4,954 — — Total $ 43 $ 325 $ 879 $ 1,247 $ 1,576,109 $ 1,577,356 $ 2,213 $ — The Company primarily uses the aging of loans and accrual status to monitor the credit quality of its loan portfolio. When a mortgage loan becomes seriously delinquent (90 days or more contractually past due), it displays weaknesses that may result in a loss. As a loan becomes more delinquent, the likelihood of the borrower repaying the loan decreases and the loan becomes more collateral-dependent. A mortgage loan becomes collateral-dependent when the proceeds for repayment can be expected to come only from the sale or operation of the collateral and not from borrower repayments. Generally, appraisals are obtained after a loan becomes collateral-dependent or is four months delinquent. The carrying value of collateral-dependent loans is adjusted to the fair value of the collateral less selling costs. Any commercial real estate, commercial, construction or equity loan that has a loan balance in excess of a specified amount is also periodically reviewed to determine whether the loan exhibits any weaknesses and is performing in accordance with its contractual terms. There were no loans modified in a troubled debt restructuring during the six months ended June 30, 2019 or 2018. There were no new troubled debt restructurings within the 12 months ended June 30, 2019 that subsequently defaulted. The table below summarizes troubled debt restructurings by class of loans: Number of Accrual Number of Nonaccrual (Dollars in thousands) Loans Status Loans Status Total June 30, 2019: One- to four-family residential mortgages 3 $ 584 3 $ 655 $ 1,239 Home equity loans and lines of credit — — 1 71 71 Total 3 $ 584 4 $ 726 $ 1,310 December 31, 2018: One- to four-family residential mortgages 4 $ 897 3 $ 691 $ 1,588 Home equity loans and lines of credit — — 1 78 78 Total 4 $ 897 4 $ 769 $ 1,666 There were no delinquent restructured loans as of June 30, 2019 or December 31, 2018. Restructurings include deferrals of interest and/or principal payments and temporary or permanent reductions in interest rates due to the financial difficulties of the borrowers. At June 30, 2019, we had no commitments to lend any additional funds to these borrowers. The Company had no real estate owned as of June 30, 2019 or December 31, 2018. There were no loans in the process of foreclosure at June 30, 2019. There were two one- to four-family residential mortgage loans totaling $838,000 and one home equity loan for $41,000 in the process of foreclosure at December 31, 2018. Our real estate loans are collateralized by real estate located in the State of Hawaii. Loan-to-value ratios on these real estate loans generally do not exceed 80% at the time of origination. During the six months ended June 30, 2019 and 2018, the Company sold mortgage loans held for sale with principal balances of $2.5 million and $7.0 million, respectively, and recognized gains of $6,000 and $53,000, respectively. The Company had one loan held for sale for $235,000 at June 30, 2019 and one loan held for sale for $309,000 at December 31, 2018. The Company serviced loans for others of $28.3 million at June 30, 2019 and $30.3 million at December 31, 2018. Of these amounts, $1.4 million and $1.5 million relate to securitizations for which the Company continues to hold the related mortgage-backed securities at June 30, 2019 and December 31, 2018, respectively. The amount of contractually specified servicing fees earned for the six-month periods ended June 30, 2019 and 2018 was $40,000 and $46,000, respectively. The amount of contractually specified servicing fees earned for the three-month periods ended June 30, 2019 and 2018 was $20,000 and $22,000, respectively. The fees are reported in service fees on loan and deposit accounts in the consolidated statements of income. |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase | 6 Months Ended |
Jun. 30, 2019 | |
Securities Sold Under Agreements to Repurchase | |
Securities Sold Under Agreements to Repurchase | (7) Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase are treated as financings and the obligations to repurchase the identical securities sold are reflected as a liability with the securities collateralizing the agreements classified as an asset. Securities sold under agreements to repurchase are summarized as follows: June 30, 2019 December 31, 2018 Weighted Weighted Repurchase Average Repurchase Average (Dollars in thousands) Liability Rate Liability Rate Maturing: 1 year or less $ 10,000 1.65 % $ 25,000 1.66 % Over 1 year to 2 years — — 5,000 1.65 Total $ 10,000 1.65 % $ 30,000 1.66 % Below is a summary comparing the carrying value and fair value of securities pledged to secure repurchase agreements, the repurchase liability, and the amount at risk at June 30, 2019. The amount at risk is the greater of the carrying value or fair value over the repurchase liability and refers to the potential loss to the Company if the secured lender fails to return the security at the maturity date of the agreement. All the agreements to repurchase are with JP Morgan Securities and the securities pledged are mortgage-backed securities issued and guaranteed by U.S. government-sponsored enterprises. The repurchase liability cannot exceed 90% of the fair value of securities pledged. In the event of a decline in the fair value of securities pledged to less than the required amount due to market conditions or principal repayments, the Company is obligated to pledge additional securities or other suitable collateral to cure the deficiency. Weighted Carrying Fair Average Value of Value of Repurchase Amount Months to (Dollars in thousands) Securities Securities Liability at Risk Maturity Maturing: Over 90 days $ 13,543 $ 13,326 $ 10,000 $ 3,543 6 |
Offsetting of Financial Liabili
Offsetting of Financial Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Offsetting of Financial Liabilities | |
Offsetting of Financial Liabilities | (8) Offsetting of Financial Liabilities The following table presents our securities sold under agreements to repurchase that are subject to a right of offset in the event of default. See Note 7, Securities Sold Under Agreements to Repurchase, for additional information. Net Amount of Gross Amount Not Offset in the Gross Amount Gross Amount Liabilities Balance Sheet of Recognized Offset in the Presented in the Financial Cash Collateral (Dollars in thousands) Liabilities Balance Sheet Balance Sheet Instruments Pledged Net Amount June 30, 2019: Securities sold under agreements to repurchase $ 10,000 $ — $ 10,000 $ 10,000 $ — $ — December 31, 2018: Securities sold under agreements to repurchase $ 30,000 $ — $ 30,000 $ 30,000 $ — $ — |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
Employee Benefit Plans | |
Employee Benefit Plans | (9) Employee Benefit Plans The Company has a noncontributory defined benefit pension plan (Pension Plan) that covers most employees with at least one year of service. Effective December 31, 2008, under approved changes to the Pension Plan, there were no further accruals of benefits for any participants and benefits will not increase with any additional years of service. Net periodic benefit cost, subsequent to December 31, 2008, has not been significant and is not disclosed in the table below. The Company also sponsors a Supplemental Employee Retirement Plan (SERP), a noncontributory supplemental retirement benefit plan, which covers certain current and former employees of the Company for amounts in addition to those provided under the Pension Plan. The components of net periodic benefit cost were as follows: SERP SERP Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2019 2018 2019 2018 Net periodic benefit cost for the period: Service cost $ 26 $ 20 $ 51 $ 40 Interest cost 40 38 81 75 Expected return on plan assets — — — — Amortization of prior service cost — — — — Recognized actuarial loss — — — — Recognized curtailment loss — — — — Net periodic benefit cost $ 66 $ 58 $ 132 $ 115 The service cost component of net periodic benefit cost is included with salaries and employee benefits in the consolidated statements of income. The other components of net periodic benefit cost are included in other general and administrative expenses. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 6 Months Ended |
Jun. 30, 2019 | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan | (10) Employee Stock Ownership Plan Effective January 1, 2009, Territorial Savings Bank adopted an Employee Stock Ownership Plan (ESOP) for eligible employees. The ESOP borrowed $9.8 million from the Company and used those funds to acquire 978,650 shares, or 8%, of the total number of shares issued by the Company in its initial public offering. The shares were acquired at a price of $10.00 per share. The loan is secured by the shares purchased with the loan proceeds and will be repaid by the ESOP over the 20-year term of the loan with funds from Territorial Savings Bank’s contributions to the ESOP and dividends payable on the shares. The interest rate on the ESOP loan is an adjustable rate equal to the prime rate, as published in The Wall Street Journal. The interest rate adjusts annually and will be the prime rate on the first business day of the calendar year. Shares purchased by the ESOP are held by a trustee in an unallocated suspense account, and shares are released annually from the suspense account on a pro-rata basis as principal and interest payments are made by the ESOP to the Company. The trustee allocates the shares released among participants on the basis of each participant’s proportional share of compensation relative to all participants. As shares are committed to be released from the suspense account, Territorial Savings Bank reports compensation expense based on the average fair value of shares released with a corresponding credit to stockholders’ equity. The shares committed to be released are considered outstanding for earnings per share computations. Compensation expense recognized for the three months ended June 30, 2019 and 2018 amounted to $345,000 and $435,000, respectively. Compensation expense recognized for the six months ended June 30, 2019 and 2018 amounted to $679,000 and $811,000, respectively. Shares held by the ESOP trust were as follows: June 30, December 31, 2019 2018 Allocated shares 442,341 446,041 Unearned shares 464,863 489,329 Total ESOP shares 907,204 935,370 Fair value of unearned shares, in thousands $ 14,364 $ 12,713 The ESOP restoration plan is a nonqualified plan that provides supplemental benefits to certain executives who are prevented from receiving the full benefits contemplated by the ESOP’s benefit formula. The supplemental cash payments consist of payments representing shares that cannot be allocated to the participants under the ESOP due to IRS limitations imposed on tax-qualified plans. We accrue for these benefits over the period during which employees provide services to earn these benefits. For the three months ended June 30, 2019 and 2018, we accrued $122,000 and $16,000, respectively, for the ESOP restoration plan. For the six months ended June 30, 2019 and 2018, we accrued $179,000 and $111,000, respectively, for the ESOP restoration plan. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
2010 Equity Incentive Plan | |
Share-Based Compensation | |
Share-Based Compensation | (11) Share-Based Compensation On August 19, 2010, Territorial Bancorp Inc. adopted the 2010 Equity Incentive Plan, which provides for awards of stock options and restricted stock to key officers and outside directors. In accordance with the Compensation – Stock Compensation topic of the FASB ASC, the cost of the 2010 Equity Incentive Plan is based on the fair value of the awards on the grant date. The fair value of restricted stock is based on the closing price of the Company’s stock on the grant date. The fair value of stock options is estimated using a Black-Scholes option pricing model using assumptions for dividend yield, stock price volatility, risk-free interest rate and option term. These assumptions are based on our judgments regarding future events, are subjective in nature, and cannot be determined with precision. The cost of the awards will be recognized on a straight-line basis over the three, five- or six-year vesting period during which participants are required to provide services in exchange for the awards. The Company recognized compensation expense, measured as the fair value of the share-based award on the date of grant, on a straight-line basis over the vesting period. Share-based compensation is recorded in the statement of income as a component of salaries and employee benefits with a corresponding increase in shareholders’ equity. The table below presents information on compensation expense and the related tax benefit for all share-based awards: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2019 2018 2019 2018 Compensation expense $ 285 $ 69 $ 371 $ 135 Income tax benefit 78 19 101 37 Shares of our common stock issued under the 2010 Equity Incentive Plan shall come from authorized shares. The maximum number of shares that will be awarded under the plan will be 1,862,637 shares. Stock Options The table below presents the stock option activity for the six months ended June 30, 2019 and 2018: Weighted Aggregate Average Remaining Intrinsic Exercise Contractual Value Options Price Life (years) (in thousands) Options outstanding at December 31, 2018 337,654 $ 17.51 1.74 $ 2,859 Granted — — — — Exercised 182,170 17.36 — 2,031 Forfeited — — — — Expired — — — — Options outstanding at June 30, 2019 155,484 $ 17.69 1.33 $ 2,054 Options outstanding at December 31, 2017 411,543 $ 17.48 2.73 $ 5,509 Granted — — — — Exercised 69,008 17.36 — 920 Forfeited — — — — Expired — — — — Options outstanding at June 30, 2018 342,535 $ 17.51 2.24 $ 4,621 Options vested and exercisable at June 30, 2019 $ $ 2,054 The following summarizes certain stock option activity of the Company: For the Three Months Ended For the Six Months Ended June 30, June 30, (In thousands) 2019 2018 2019 2018 Intrinsic value of stock options exercised $ 1,243 $ 683 $ 2,031 $ 920 Proceeds received from stock options exercised 1,868 885 3,162 1,198 Tax benefits realized from stock options exercised 254 178 425 220 Total fair value of stock options that vested — — — — During the six months ended June 30, 2019, we issued 75,140 shares of common stock, net, in exchange for 182,170 stock options and 107,030 shares of common stock. Pursuant to the provisions of our equity incentive plan, optionees are permitted to use the value of our common stock they own in a net settlement to pay the exercise price of stock options. As of June 30, 2019, the Company had no unrecognized compensation costs related to the stock option plan. Restricted Stock Restricted stock awards are accounted for as fixed grants using the fair value of the Company’s stock at the time of grant. Unvested restricted stock may not be disposed of or transferred during the vesting period. Restricted stock carries the right to receive dividends, although dividends attributable to restricted stock are retained by the Company until the shares vest, at which time they are paid to the award recipient. The table below presents the restricted stock activity: Weighted Average Grant Restricted Date Fair Stock Value Nonvested at December 31, 2018 16,424 $ 30.26 Granted 10,366 27.30 Vested 6,541 30.14 Forfeited — — Nonvested at June 30, 2019 20,249 $ 28.78 Nonvested at December 31, 2017 10,806 $ 29.16 Granted 10,019 30.73 Vested 3,201 29.53 Forfeited — — Nonvested at June 30, 2018 17,624 $ 29.92 During the six months ended June 30, 2019, the Company issued 10,366 shares of restricted stock to certain members of executive management under the 2010 Equity Incentive Plan. The fair value of the restricted stock is based on the value of the Company’s stock on the date of grant. Restricted stock will vest over three years from the date of grant. As of June 30, 2019, the Company had $512,000 of unrecognized compensation costs related to restricted stock. During the six months ended June 30, 2019, the Company issued 12,438 performance-based restricted stock units (PRSUs) to certain members of executive management under the 2010 Equity Incentive Plan. These PRSUs will vest in the first quarter of 2022 after our Compensation Committee determines whether a performance condition that compares the Company’s return on average equity to the SNL Bank Index is achieved. Depending on the Company’s performance, the actual number of these PRSUs that are issued at the end of the vesting period can vary between 0% and 150% of the target award. For the PRSUs, an estimate is made of the number of shares expected to vest based on the probability that the performance criteria will be achieved to determine the amount of compensation expense to be recognized. This estimate is re-evaluated quarterly and total compensation expense is adjusted for any change in the current period. The table below presents the PRSUs that will vest on a performance condition: Performance- Based Restricted Stock Units Weighted Based on a Average Grant Performance Date Fair Condition Value Nonvested at December 31, 2018 23,538 $ 30.14 Granted 12,438 27.30 Vested — — Forfeited — — Nonvested at June 30, 2019 35,976 $ 29.16 Nonvested at December 31, 2017 11,520 $ 29.53 Granted 12,018 30.73 Vested — — Forfeited — — Nonvested at June 30, 2018 23,538 $ 30.14 The fair value of these PRSUs is based on the fair value of the Company’s stock on the date of grant. As of June 30, 2019, the Company had $537,000 of unrecognized compensation costs related to these PRSUs. Performance will be measured over a three-year performance period and will be cliff vested. During the six months ended June 30, 2019, the Company issued 3,110 of PRSUs to certain members of executive management under the 2010 Equity Incentive Plan. These PRSUs will vest in the first quarter of 2022 after our Compensation Committee determines whether a market condition that compares the Company’s total stock return to the SNL Bank Index is achieved. The number of shares that will be expensed will not be adjusted for performance. The fair value of these PRSUs is based on a Monte Carlo valuation of the Company’s stock on the date of grant. The assumptions which were used in the Monte Carlo valuation of the PRSUs are: Grant date: March 7, 2019 Performance period: January 1, 2019 to December 31, 2021 2.82 year risk-free rate on grant date: 2.45% December 31, 2018 closing price: $25.98 Closing stock price on the date of grant: $27.30 Annualized volatility (based on 2.82 year historical volatility as of the grant date): 15.1% The table below presents the PRSUs that will vest on a market condition: Performance- Based Restricted Monte Carlo Stock Units Valuation of Based on a the Company's Market Condition Stock Nonvested at December 31, 2018 5,884 $ 26.42 Granted 3,110 24.45 Vested — — Forfeited — — Nonvested at June 30, 2019 8,994 $ 25.74 Nonvested at December 31, 2017 2,879 $ 24.44 Granted 3,005 28.32 Vested — — Forfeited — — Nonvested at June 30, 2018 5,884 $ 26.42 As of June 30, 2019, the Company had $92,000 of unrecognized compensation costs related to the PRSUs that are based on a market condition. Performance will be measured over a three-year performance period and will be cliff vested. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share | |
Earnings Per Share | (12) Earnings Per Share Holders of unvested restricted stock receive nonforfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Unvested restricted stock awards that contain nonforfeitable rights to dividends or dividend equivalents are considered to be participating securities in the earnings per share computation using the two-class method. Under the two-class method, earnings are allocated to common shareholders and participating securities according to their respective rights to earnings. The table below presents the information used to compute basic and diluted earnings per share: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands, except per share data) 2019 2018 2019 2018 Net income $ 5,060 $ 4,963 $ 11,584 $ 9,783 Income allocated to participating securities (37) (27) (74) (42) Net income available to common shareholders $ 5,023 $ 4,936 $ 11,510 $ 9,741 Weighted-average number of shares used in: Basic earnings per share 9,172,376 9,219,859 9,170,825 9,251,999 Dilutive common stock equivalents: Stock options and restricted stock units 104,304 174,172 123,502 187,619 Diluted earnings per share 9,276,680 9,394,031 9,294,327 9,439,618 Net income per common share, basic $ 0.55 $ 0.54 $ 1.26 $ 1.05 Net income per common share, diluted $ 0.54 $ 0.53 $ 1.24 $ 1.03 |
Other Comprehensive Income and
Other Comprehensive Income and Loss | 6 Months Ended |
Jun. 30, 2019 | |
Other Comprehensive Income and Loss | |
Other Comprehensive Income and Loss | (13) Other Comprehensive Income and Loss The table below presents the changes in the components of accumulated other comprehensive income and loss, net of taxes: Unfunded Unrealized Pension (Gain)/Loss on (Dollars in thousands) Liability Securities Total Three months ended June 30, 2019 Balances at beginning of period $ 7,721 $ (402) $ 7,319 Other comprehensive income, net of taxes — (119) (119) Net current period other comprehensive income — (119) (119) Balances at end of period $ 7,721 $ (521) $ 7,200 Three months ended June 30, 2018 Balances at beginning of period $ 6,783 $ 95 $ 6,878 Other comprehensive loss, net of taxes — 11 11 Net current period other comprehensive loss — 11 11 Balances at end of period $ 6,783 $ 106 $ 6,889 Six months ended June 30, 2019 Balances at beginning of period $ 7,721 $ 88 $ 7,809 Other comprehensive income, net of taxes — (609) (609) Net current period other comprehensive income — (609) (609) Balances at end of period $ 7,721 $ (521) $ 7,200 Six months ended June 30, 2018 Balances at beginning of period $ 5,657 $ 37 $ 5,694 Other comprehensive loss, net of taxes — 60 60 Amounts reclassified from retained earnings 1,126 9 1,135 Net current period other comprehensive loss 1,126 69 1,195 Balances at end of period $ 6,783 $ 106 $ 6,889 The table below presents the tax effect on each component of accumulated other comprehensive income and loss: Three Months Ended June 30, 2019 2018 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized (gain)/loss on securities $ (162) $ 43 $ (119) $ 16 $ (5) $ 11 Total $ (162) $ 43 $ (119) $ 16 $ (5) $ 11 Six Months Ended June 30, 2019 2018 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized (gain)/loss on securities $ (830) $ 221 $ (609) $ 82 $ (22) $ 60 Total $ (830) $ 221 $ (609) $ 82 $ (22) $ 60 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition | |
Revenue Recognition | (14) Revenue Recognition The Company’s contracts with customers are generally short-term in nature, with cycles of one year or less. These can range from an immediate term for services such as wire transfers, foreign currency exchanges and cashier’s check purchases, to several days for services such as processing annuity and mutual fund sales. Some contracts may be of an ongoing nature, such as providing deposit account services, including ATM access, check processing, account analysis and check ordering. However, provision of an assessable service and payment for such service is usually concurrent or closely timed. Contracts related to financial instruments, such as loans, investments and debt, are excluded from the scope of this reporting requirement. After analyzing the Company’s revenue sources, including the amount of revenue received, the timing of services rendered and the timing of payment for these services, the Company has determined that the rendering of services and the payment for such services are generally closely matched. Any differences are not material to the Company’s consolidated financial statements. Accordingly, the Company generally records income when payment for services is received. Revenue from contracts with customers is reported in service fees on loan and deposit accounts and in other noninterest income in the consolidated statements of income. The table below reconciles the revenue from contracts with customers and other revenue reported in those line items: Service Fees on Loan and Deposit (Dollars in thousands) Accounts Other Total Three months ended June 30, 2019 Revenue from contracts with customers $ 373 $ 54 $ 427 Other revenue 112 454 566 Total $ 485 $ 508 $ 993 Three months ended June 30, 2018 Revenue from contracts with customers $ 391 $ 52 $ 443 Other revenue 96 27 123 Total $ 487 $ 79 $ 566 Six months ended June 30, 2019 Revenue from contracts with customers $ 700 $ 100 $ 800 Other revenue 223 480 703 Total $ 923 $ 580 $ 1,503 Six months ended June 30, 2018 Revenue from contracts with customers $ 711 $ 93 $ 804 Other revenue 191 55 246 Total $ 902 $ 148 $ 1,050 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases | |
Leases | (15) Leases The Company leases most of its premises and some vehicles and equipment under operating leases expiring on various dates through 2029. The majority of lease agreements relate to real estate and generally provide that the Company pay taxes, insurance, maintenance and certain other operating expenses applicable to the leased premises. Variable lease components and nonlease components are not included in the Company’s computation of the right-of-use (ROU) asset or lease liability. The Company also does not include short-term leases in the computation of the ROU asset or lease liability. Short-term leases are leases with a term at commencement of 12 months or less. Short-term lease expense is recorded on a straight-line basis over the term of the lease. Lease agreements do not contain any residual value guarantees or restrictive covenants. Certain leases have renewal options at the expiration of the lease terms. Generally, option periods are not included in the computation of the lease term, ROU asset or lease liability because the Company is not reasonably certain to exercise renewal options at the expiration of the lease terms. The Company has elected to use the package of practical expedients to: a) not reassess whether any expired or existing contracts are or contain leases, b) not reassess the lease classification for any expired or existing leases, and c) not reassess initial direct costs for any existing leases. The Company has also chosen the option to not restate comparative periods prior to the adoption of the new lease accounting standard. Because the discount rates implicit in our leases are not known, discount rates have been estimated using the rates for fixed-rate, amortizing advances from the Federal Home Loan Bank (FHLB) for the approximate terms of the leases. FHLB advances are collateralized by a blanket pledge of the Bank’s assets that are not otherwise pledged. The table below presents lease costs and other information for the periods indicated: Three Months Ended Six Months Ended (Dollars in thousands) June 30, 2019 June 30, 2019 Lease Costs: Operating lease costs $ 782 $ 1,565 Short-term lease costs 10 16 Variable lease costs 28 53 Total lease costs $ 820 $ 1,634 Cash paid for amounts included in measurement of lease liabilities $ 772 $ 1,545 ROU assets obtained in exchange for new operating lease liabilities $ 13 $ 13,008 At June 30, 2019, future minimum rental commitments under noncancellable operating leases are as follows: (Dollars in thousands) 2019 $ 1,344 2020 2,466 2021 1,979 2022 1,810 2023 1,523 Thereafter 4,228 Total $ 13,350 Less present value discount 1,229 Present value of leases $ 12,121 The table below presents other lease related information as of June 30, 2019: June 30, 2019 Weighted-average remaining lease term (years) Weighted-average discount rate % |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | (16) Fair Value of Financial Instruments In accordance with the Fair Value Measurements and Disclosures topic of the FASB ASC, the Company groups its financial assets and liabilities valued at fair value into three levels based on the markets in which the financial assets and liabilities are traded and the reliability of the assumptions used to determine fair value as follows: · Level 1 — Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities traded in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. · Level 2 — Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. · Level 3 — Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect management’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of discounted cash flow models and similar techniques that require the use of significant judgment or estimation. In accordance with the Fair Value Measurements and Disclosures topic, the Company bases its fair values on the price that it would expect to receive if an asset were sold or the price that it would expect to pay to transfer a liability in an orderly transaction between market participants at the measurement date. Also as required, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when developing fair value measurements. The Company uses fair value measurements to determine fair value disclosures. Investment securities held for sale and derivatives are recorded at fair value on a recurring basis. From time to time, the Company may be required to record other financial assets at fair value on a nonrecurring basis, such as loans held for sale, impaired loans and investments, and mortgage servicing assets. These nonrecurring fair value adjustments typically involve application of the lower of cost or fair value accounting or write-downs of individual assets. Investment Securities Available for Sale. The estimated fair values of U.S. government-sponsored mortgage-backed securities are considered Level 2 inputs because the valuation for investment securities utilized pricing models that varied based on asset class and included trade, bid and other observable market information. Interest Rate Contracts. The Company may enter into interest rate lock commitments with borrowers on loans intended to be sold. To manage interest rate risk on the lock commitments, the Company may also enter into forward loan sale commitments. The interest rate lock commitments and forward loan sale commitments are treated as derivatives and are recorded at their fair value determined by referring to prices quoted in the secondary market for similar contracts. Interest rate contracts that are classified as assets are included with prepaid expenses and other assets on the consolidated balance sheet while interest rate contracts that are classified as liabilities are included with accounts payable and accrued expenses. The estimated fair values of the Company’s financial instruments are as follows: Carrying Fair Value Measurements Using (Dollars in thousands) Amount Fair Value Level 1 Level 2 Level 3 June 30, 2019 Assets Cash and cash equivalents $ 41,528 $ 41,528 $ 41,528 $ — $ — Investment securities available for sale 13,349 13,349 — 13,349 — Investment securities held to maturity 350,944 356,321 — 356,321 — Loans held for sale 235 241 — 241 — Loans receivable, net 1,598,476 1,656,673 — — 1,656,673 FHLB stock 8,303 8,303 — 8,303 — FRB stock 3,116 3,116 — 3,116 — Accrued interest receivable 5,575 5,575 33 932 4,610 Interest rate contracts 3 3 — 3 — Liabilities Deposits 1,645,730 1,647,203 — 1,189,779 457,424 Advances from the Federal Home Loan Bank 145,500 147,067 — 147,067 — Securities sold under agreements to repurchase 10,000 9,976 — 9,976 — Accrued interest payable 648 648 — 52 596 Interest rate contracts 3 3 — 3 — December 31, 2018 Assets Cash and cash equivalents $ 47,063 $ 47,063 $ 47,063 $ — $ — Investment securities available for sale 2,560 2,560 — 2,560 — Investment securities held to maturity 371,517 364,922 — 364,219 703 Loans held for sale 309 319 — 319 — Loans receivable, net 1,574,714 1,553,672 — — 1,553,672 FHLB stock 8,093 8,093 — 8,093 — FRB stock 3,114 3,114 — 3,114 — Accrued interest receivable 5,274 5,274 12 960 4,302 Interest rate contracts 5 5 — 5 — Liabilities Deposits 1,629,164 1,626,587 — 1,238,023 388,564 Advances from the Federal Home Loan Bank 142,200 141,874 — 141,874 — Securities sold under agreements to repurchase 30,000 29,876 — 29,876 — Accrued interest payable 243 243 — 111 132 Interest rate contracts 5 5 — 5 — At June 30, 2019 and December 31, 2018, neither the commitment fees received on commitments to extend credit nor the fair value thereof was material to the consolidated financial statements of the Company. The table below presents the balance of assets and liabilities measured at fair value on a recurring basis: (Dollars in thousands) Level 1 Level 2 Level 3 Total June 30, 2019 Interest rate contracts — assets $ — $ 3 $ — $ 3 Interest rate contracts — liabilities — (3) — (3) Investment securities available for sale — 13,349 — 13,349 December 31, 2018 Interest rate contracts — assets $ — $ 5 $ — $ 5 Interest rate contracts — liabilities — (5) — (5) Investment securities available for sale — 2,560 — 2,560 There were no assets measured at fair value on a nonrecurring basis as of June 30, 2019 and December 31, 2018. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events | |
Subsequent Events | (17) Subsequent Events On July 25, 2019, the Board of Directors of Territorial Bancorp Inc. declared a quarterly cash dividend of $0.22 per share of common stock. The dividend is expected to be paid on August 22, 2019 to stockholders of record as of August 8, 2019. |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Cash and Cash Equivalents | |
Schedule of balances of cash and cash equivalents | June 30, December 31, (Dollars in thousands) 2019 2018 Cash and due from banks $ 9,877 $ 9,771 Interest-earning deposits in other banks 31,651 37,292 Cash and cash equivalents $ 41,528 $ 47,063 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investment Securities. | |
Schedule of amortized cost and fair values of investment securities | Amortized Gross Unrealized Estimated (Dollars in thousands) Cost Gains Losses Fair Value June 30, 2019: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 12,606 $ 743 $ — $ 13,349 Total $ 12,606 $ 743 $ — $ 13,349 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 350,944 $ 6,500 $ (1,123) $ 356,321 Total $ 350,944 $ 6,500 $ (1,123) $ 356,321 December 31, 2018: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 2,644 $ — $ (84) $ 2,560 Total $ 2,644 $ — $ (84) $ 2,560 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 371,442 $ 2,056 $ (9,279) $ 364,219 Trust preferred securities 75 628 — 703 Total $ 371,517 $ 2,684 $ (9,279) $ 364,922 |
Schedule of amortized cost and estimated fair value of investment securities by maturity | Amortized Estimated (Dollars in thousands) Cost Fair Value Available-for-sale: Due within 5 years $ — $ — Due after 5 years through 10 years — — Due after 10 years 12,606 13,349 Total $ 12,606 $ 13,349 Held-to-maturity: Due within 5 years $ 1 $ 2 Due after 5 years through 10 years 67 68 Due after 10 years 350,876 356,251 Total $ 350,944 $ 356,321 |
Schedule of realized gains and losses and proceeds from sales of securities held to maturity | Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2019 2018 2019 2018 Proceeds from sales $ 1,595 $ 4,462 $ 4,336 $ 4,462 Gross gains 70 45 2,787 45 Gross losses — — — — |
Summary of investment securities in an unrealized loss position | Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Number of Unrealized Description of securities Fair Value Losses Fair Value Losses Securities Fair Value Losses (Dollars in thousands) June 30, 2019: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ — $ — $ — $ — — $ — $ — Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ — $ — $ 106,894 $ (1,123) 38 $ 106,894 $ (1,123) December 31, 2018: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ — $ — $ 2,560 $ (84) 1 $ 2,560 $ (84) Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 57,154 $ (254) $ 220,338 $ (9,025) 81 $ 277,492 $ (9,279) |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Loans Receivable and Allowance for Loan Losses | |
Schedule of components of loans receivable | June 30, December 31, (Dollars in thousands) 2019 2018 Real estate loans: First mortgages: One- to four-family residential $ 1,554,982 $ 1,531,149 Multi-family residential 12,725 12,151 Construction, commercial and other 19,066 20,780 Home equity loans and lines of credit 10,804 11,090 Total real estate loans 1,597,577 1,575,170 Other loans: Loans on deposit accounts 339 357 Consumer and other loans 6,070 4,939 Total other loans 6,409 5,296 Less: Net unearned fees and discounts (2,894) (3,110) Allowance for loan losses (2,616) (2,642) Total unearned fees, discounts and allowance for loan losses (5,510) (5,752) Loans receivable, net $ 1,598,476 $ 1,574,714 |
Schedule of activity in allowance for loan losses on loans receivable and by portfolio segment | Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals Three months ended June 30, 2019: Balance, beginning of period $ 1,800 $ 454 $ 1 $ 45 $ 359 $ 2,659 Provision (reversal of provision) for loan losses (31) (43) — (9) 32 (51) 1,769 411 1 36 391 2,608 Charge-offs — — — (9) — (9) Recoveries — — — 17 — 17 Net recoveries — — — 8 — 8 Balance, end of period $ 1,769 $ 411 $ 1 $ 44 $ 391 $ 2,616 Six months ended June 30, 2019: Balance, beginning of period $ 1,797 $ 443 $ 1 $ 47 $ 354 $ 2,642 Provision (reversal of provision) for loan losses (46) (32) — (5) 37 (46) 1,751 411 1 42 391 2,596 Charge-offs — — — (16) — (16) Recoveries 18 — — 18 — 36 Net recoveries 18 — — 2 — 20 Balance, end of period $ 1,769 $ 411 $ 1 $ 44 $ 391 $ 2,616 Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals Three months ended June 30, 2018: Balance, beginning of period $ 1,720 $ 530 $ 1 $ 49 $ 254 $ 2,554 Provision for loan losses 34 17 — 2 7 60 1,754 547 1 51 261 2,614 Charge-offs — — — (7) — (7) Recoveries 6 — — 1 — 7 Net recoveries (charge-offs) 6 — — (6) — — Balance, end of period $ 1,760 $ 547 $ 1 $ 45 $ 261 $ 2,614 Six months ended June 30, 2018: Balance, beginning of period $ 1,721 $ 539 $ 1 $ 55 $ 232 $ 2,548 Provision (reversal of provision) for loan losses 33 8 — (1) 29 69 1,754 547 1 54 261 2,617 Charge-offs — — — (12) — (12) Recoveries 6 — — 3 — 9 Net recoveries (charge-offs) 6 — — (9) — (3) Balance, end of period $ 1,760 $ 547 $ 1 $ 45 $ 261 $ 2,614 |
Schedule of balance in allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method | Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals June 30, 2019: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,769 411 1 44 391 2,616 Total ending allowance balance $ 1,769 $ 411 $ 1 $ 44 $ 391 $ 2,616 Loans: Ending loan balance: Individually evaluated for impairment $ 1,378 $ — $ 98 $ — $ — $ 1,476 Collectively evaluated for impairment 1,563,481 19,004 10,704 6,427 — 1,599,616 Total ending loan balance $ 1,564,859 $ 19,004 $ 10,802 $ 6,427 $ — $ 1,601,092 December 31, 2018: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,797 443 1 47 354 2,642 Total ending allowance balance $ 1,797 $ 443 $ 1 $ 47 $ 354 $ 2,642 Loans: Ending loan balance: Individually evaluated for impairment $ 2,962 $ — $ 148 $ — $ — $ 3,110 Collectively evaluated for impairment 1,537,292 20,698 10,945 5,311 — 1,574,246 Total ending loan balance $ 1,540,254 $ 20,698 $ 11,093 $ 5,311 $ — $ 1,577,356 |
Schedule of balance of impaired loans individually evaluated for impairment by class of loans | Unpaid Recorded Principal (Dollars in thousands) Investment Balance June 30, 2019: With no related allowance recorded: One- to four-family residential mortgages $ 1,378 $ 1,802 Home equity loans and lines of credit 98 180 Total $ 1,476 $ 1,982 December 31, 2018: With no related allowance recorded: One- to four-family residential mortgages $ 2,962 $ 3,486 Home equity loans and lines of credit 148 224 Total $ 3,110 $ 3,710 |
Schedule of average recorded investment and interest income recognized on impaired loans by class of loans | For the Three Months Ended For the Six Months Ended June 30, June 30, Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized 2019: With no related allowance recorded: One- to four-family residential mortgages $ 1,390 $ 8 $ 1,404 $ 17 Home equity loans and lines of credit 100 — 103 — Total $ 1,490 $ 8 $ 1,507 $ 17 2018: With no related allowance recorded: One- to four-family residential mortgages $ 2,869 $ 13 $ 2,892 $ 27 Home equity loans and lines of credit 158 — 160 — Total $ 3,027 $ 13 $ 3,052 $ 27 |
Schedule of aging of loans and accrual status by class of loans | Loans 90 Days or More 30 - 59 60 - 89 90 Days or Past Due Days Past Days Past More Total Past Loans Not Total Nonaccrual and Still (Dollars in thousands) Due Due Past Due Due Past Due Loans Loans Accruing June 30, 2019: One- to four-family residential mortgages $ 305 $ 694 $ — $ 999 $ 1,551,154 $ 1,552,153 $ 794 $ — Multi-family residential mortgages — — — — 12,706 12,706 — — Construction, commercial and other mortgages — — — — 19,004 19,004 — — Home equity loans and lines of credit 27 — — 27 10,775 10,802 98 — Loans on deposit accounts — — — — 339 339 — — Consumer and other 8 — — 8 6,080 6,088 — — Total $ 340 $ 694 $ — $ 1,034 $ 1,600,058 $ 1,601,092 $ 892 $ — December 31, 2018: One- to four-family residential mortgages $ 40 $ 292 $ 838 $ 1,170 $ 1,526,949 $ 1,528,119 $ 2,065 $ — Multi-family residential mortgages — — — — 12,135 12,135 — — Construction, commercial and other mortgages — — — — 20,698 20,698 — — Home equity loans and lines of credit — 29 41 70 11,023 11,093 148 — Loans on deposit accounts — — — — 357 357 — — Consumer and other 3 4 — 7 4,947 4,954 — — Total $ 43 $ 325 $ 879 $ 1,247 $ 1,576,109 $ 1,577,356 $ 2,213 $ — |
Summary of troubled debt restructurings by class of loan | Number of Accrual Number of Nonaccrual (Dollars in thousands) Loans Status Loans Status Total June 30, 2019: One- to four-family residential mortgages 3 $ 584 3 $ 655 $ 1,239 Home equity loans and lines of credit — — 1 71 71 Total 3 $ 584 4 $ 726 $ 1,310 December 31, 2018: One- to four-family residential mortgages 4 $ 897 3 $ 691 $ 1,588 Home equity loans and lines of credit — — 1 78 78 Total 4 $ 897 4 $ 769 $ 1,666 |
Securities Sold Under Agreeme_2
Securities Sold Under Agreements to Repurchase (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Securities Sold Under Agreements to Repurchase | |
Summary of securities sold under agreements to repurchase | June 30, 2019 December 31, 2018 Weighted Weighted Repurchase Average Repurchase Average (Dollars in thousands) Liability Rate Liability Rate Maturing: 1 year or less $ 10,000 1.65 % $ 25,000 1.66 % Over 1 year to 2 years — — 5,000 1.65 Total $ 10,000 1.65 % $ 30,000 1.66 % |
Summary comparing carrying value and fair value of securities pledged to secure repurchase agreements, repurchase liability, and amount at risk | Weighted Carrying Fair Average Value of Value of Repurchase Amount Months to (Dollars in thousands) Securities Securities Liability at Risk Maturity Maturing: Over 90 days $ 13,543 $ 13,326 $ 10,000 $ 3,543 6 |
Offsetting of Financial Liabi_2
Offsetting of Financial Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Offsetting of Financial Liabilities | |
Schedule of securities sold under agreements to repurchase subject to conditional right of offset | Net Amount of Gross Amount Not Offset in the Gross Amount Gross Amount Liabilities Balance Sheet of Recognized Offset in the Presented in the Financial Cash Collateral (Dollars in thousands) Liabilities Balance Sheet Balance Sheet Instruments Pledged Net Amount June 30, 2019: Securities sold under agreements to repurchase $ 10,000 $ — $ 10,000 $ 10,000 $ — $ — December 31, 2018: Securities sold under agreements to repurchase $ 30,000 $ — $ 30,000 $ 30,000 $ — $ — |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Employee Benefit Plans | |
Schedule of components of net periodic benefit cost | SERP SERP Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2019 2018 2019 2018 Net periodic benefit cost for the period: Service cost $ 26 $ 20 $ 51 $ 40 Interest cost 40 38 81 75 Expected return on plan assets — — — — Amortization of prior service cost — — — — Recognized actuarial loss — — — — Recognized curtailment loss — — — — Net periodic benefit cost $ 66 $ 58 $ 132 $ 115 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Employee Stock Ownership Plan | |
Schedule of shares held by the ESOP trust | June 30, December 31, 2019 2018 Allocated shares 442,341 446,041 Unearned shares 464,863 489,329 Total ESOP shares 907,204 935,370 Fair value of unearned shares, in thousands $ 14,364 $ 12,713 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Schedule of compensation expense and related tax benefit for all share-based awards | Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2019 2018 2019 2018 Compensation expense $ 285 $ 69 $ 371 $ 135 Income tax benefit 78 19 101 37 |
Schedule of stock option activity | Weighted Aggregate Average Remaining Intrinsic Exercise Contractual Value Options Price Life (years) (in thousands) Options outstanding at December 31, 2018 337,654 $ 17.51 1.74 $ 2,859 Granted — — — — Exercised 182,170 17.36 — 2,031 Forfeited — — — — Expired — — — — Options outstanding at June 30, 2019 155,484 $ 17.69 1.33 $ 2,054 Options outstanding at December 31, 2017 411,543 $ 17.48 2.73 $ 5,509 Granted — — — — Exercised 69,008 17.36 — 920 Forfeited — — — — Expired — — — — Options outstanding at June 30, 2018 342,535 $ 17.51 2.24 $ 4,621 Options vested and exercisable at June 30, 2019 $ $ 2,054 |
Summary of certain stock option activity | For the Three Months Ended For the Six Months Ended June 30, June 30, (In thousands) 2019 2018 2019 2018 Intrinsic value of stock options exercised $ 1,243 $ 683 $ 2,031 $ 920 Proceeds received from stock options exercised 1,868 885 3,162 1,198 Tax benefits realized from stock options exercised 254 178 425 220 Total fair value of stock options that vested — — — — |
Restricted Stock | |
Schedule of restricted stock award activity | Weighted Average Grant Restricted Date Fair Stock Value Nonvested at December 31, 2018 16,424 $ 30.26 Granted 10,366 27.30 Vested 6,541 30.14 Forfeited — — Nonvested at June 30, 2019 20,249 $ 28.78 Nonvested at December 31, 2017 10,806 $ 29.16 Granted 10,019 30.73 Vested 3,201 29.53 Forfeited — — Nonvested at June 30, 2018 17,624 $ 29.92 |
Restricted Stock Units Based on a Performance Condition | |
Schedule of restricted stock award activity | Performance- Based Restricted Stock Units Weighted Based on a Average Grant Performance Date Fair Condition Value Nonvested at December 31, 2018 23,538 $ 30.14 Granted 12,438 27.30 Vested — — Forfeited — — Nonvested at June 30, 2019 35,976 $ 29.16 Nonvested at December 31, 2017 11,520 $ 29.53 Granted 12,018 30.73 Vested — — Forfeited — — Nonvested at June 30, 2018 23,538 $ 30.14 |
Restricted Stock Units Based on a Market Condition | |
Schedule of restricted stock award activity | Performance- Based Restricted Monte Carlo Stock Units Valuation of Based on a the Company's Market Condition Stock Nonvested at December 31, 2018 5,884 $ 26.42 Granted 3,110 24.45 Vested — — Forfeited — — Nonvested at June 30, 2019 8,994 $ 25.74 Nonvested at December 31, 2017 2,879 $ 24.44 Granted 3,005 28.32 Vested — — Forfeited — — Nonvested at June 30, 2018 5,884 $ 26.42 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share | |
Schedule of information used to compute basic and diluted earnings per share | Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands, except per share data) 2019 2018 2019 2018 Net income $ 5,060 $ 4,963 $ 11,584 $ 9,783 Income allocated to participating securities (37) (27) (74) (42) Net income available to common shareholders $ 5,023 $ 4,936 $ 11,510 $ 9,741 Weighted-average number of shares used in: Basic earnings per share 9,172,376 9,219,859 9,170,825 9,251,999 Dilutive common stock equivalents: Stock options and restricted stock units 104,304 174,172 123,502 187,619 Diluted earnings per share 9,276,680 9,394,031 9,294,327 9,439,618 Net income per common share, basic $ 0.55 $ 0.54 $ 1.26 $ 1.05 Net income per common share, diluted $ 0.54 $ 0.53 $ 1.24 $ 1.03 |
Other Comprehensive Income an_2
Other Comprehensive Income and Loss (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Comprehensive Income and Loss | |
Schedule of changes in components of accumulated other comprehensive income and loss, net of taxes | Unfunded Unrealized Pension (Gain)/Loss on (Dollars in thousands) Liability Securities Total Three months ended June 30, 2019 Balances at beginning of period $ 7,721 $ (402) $ 7,319 Other comprehensive income, net of taxes — (119) (119) Net current period other comprehensive income — (119) (119) Balances at end of period $ 7,721 $ (521) $ 7,200 Three months ended June 30, 2018 Balances at beginning of period $ 6,783 $ 95 $ 6,878 Other comprehensive loss, net of taxes — 11 11 Net current period other comprehensive loss — 11 11 Balances at end of period $ 6,783 $ 106 $ 6,889 Six months ended June 30, 2019 Balances at beginning of period $ 7,721 $ 88 $ 7,809 Other comprehensive income, net of taxes — (609) (609) Net current period other comprehensive income — (609) (609) Balances at end of period $ 7,721 $ (521) $ 7,200 Six months ended June 30, 2018 Balances at beginning of period $ 5,657 $ 37 $ 5,694 Other comprehensive loss, net of taxes — 60 60 Amounts reclassified from retained earnings 1,126 9 1,135 Net current period other comprehensive loss 1,126 69 1,195 Balances at end of period $ 6,783 $ 106 $ 6,889 |
Schedule of tax effect on each component of accumulated other comprehensive loss | Three Months Ended June 30, 2019 2018 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized (gain)/loss on securities $ (162) $ 43 $ (119) $ 16 $ (5) $ 11 Total $ (162) $ 43 $ (119) $ 16 $ (5) $ 11 Six Months Ended June 30, 2019 2018 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized (gain)/loss on securities $ (830) $ 221 $ (609) $ 82 $ (22) $ 60 Total $ (830) $ 221 $ (609) $ 82 $ (22) $ 60 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition | |
Reconciliation of revenue from contracts with customers and other revenue reported in line items | Service Fees on Loan and Deposit (Dollars in thousands) Accounts Other Total Three months ended June 30, 2019 Revenue from contracts with customers $ 373 $ 54 $ 427 Other revenue 112 454 566 Total $ 485 $ 508 $ 993 Three months ended June 30, 2018 Revenue from contracts with customers $ 391 $ 52 $ 443 Other revenue 96 27 123 Total $ 487 $ 79 $ 566 Six months ended June 30, 2019 Revenue from contracts with customers $ 700 $ 100 $ 800 Other revenue 223 480 703 Total $ 923 $ 580 $ 1,503 Six months ended June 30, 2018 Revenue from contracts with customers $ 711 $ 93 $ 804 Other revenue 191 55 246 Total $ 902 $ 148 $ 1,050 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases | |
Schedule of lease costs | The table below presents lease costs and other information for the periods indicated: Three Months Ended Six Months Ended (Dollars in thousands) June 30, 2019 June 30, 2019 Lease Costs: Operating lease costs $ 782 $ 1,565 Short-term lease costs 10 16 Variable lease costs 28 53 Total lease costs $ 820 $ 1,634 Cash paid for amounts included in measurement of lease liabilities $ 772 $ 1,545 ROU assets obtained in exchange for new operating lease liabilities $ 13 $ 13,008 |
Schedule of future minimum rental commitments under noncancellable operating leases | At June 30, 2019, future minimum rental commitments under noncancellable operating leases are as follows: (Dollars in thousands) 2019 $ 1,344 2020 2,466 2021 1,979 2022 1,810 2023 1,523 Thereafter 4,228 Total $ 13,350 Less present value discount 1,229 Present value of leases $ 12,121 |
Schedule of other lease related information | The table below presents other lease related information as of June 30, 2019: June 30, 2019 Weighted-average remaining lease term (years) Weighted-average discount rate % |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value of Financial Instruments | |
Schedule of estimated fair values of financial instruments | Carrying Fair Value Measurements Using (Dollars in thousands) Amount Fair Value Level 1 Level 2 Level 3 June 30, 2019 Assets Cash and cash equivalents $ 41,528 $ 41,528 $ 41,528 $ — $ — Investment securities available for sale 13,349 13,349 — 13,349 — Investment securities held to maturity 350,944 356,321 — 356,321 — Loans held for sale 235 241 — 241 — Loans receivable, net 1,598,476 1,656,673 — — 1,656,673 FHLB stock 8,303 8,303 — 8,303 — FRB stock 3,116 3,116 — 3,116 — Accrued interest receivable 5,575 5,575 33 932 4,610 Interest rate contracts 3 3 — 3 — Liabilities Deposits 1,645,730 1,647,203 — 1,189,779 457,424 Advances from the Federal Home Loan Bank 145,500 147,067 — 147,067 — Securities sold under agreements to repurchase 10,000 9,976 — 9,976 — Accrued interest payable 648 648 — 52 596 Interest rate contracts 3 3 — 3 — December 31, 2018 Assets Cash and cash equivalents $ 47,063 $ 47,063 $ 47,063 $ — $ — Investment securities available for sale 2,560 2,560 — 2,560 — Investment securities held to maturity 371,517 364,922 — 364,219 703 Loans held for sale 309 319 — 319 — Loans receivable, net 1,574,714 1,553,672 — — 1,553,672 FHLB stock 8,093 8,093 — 8,093 — FRB stock 3,114 3,114 — 3,114 — Accrued interest receivable 5,274 5,274 12 960 4,302 Interest rate contracts 5 5 — 5 — Liabilities Deposits 1,629,164 1,626,587 — 1,238,023 388,564 Advances from the Federal Home Loan Bank 142,200 141,874 — 141,874 — Securities sold under agreements to repurchase 30,000 29,876 — 29,876 — Accrued interest payable 243 243 — 111 132 Interest rate contracts 5 5 — 5 — |
Schedule of assets and liabilities measured at fair value on a recurring basis | (Dollars in thousands) Level 1 Level 2 Level 3 Total June 30, 2019 Interest rate contracts — assets $ — $ 3 $ — $ 3 Interest rate contracts — liabilities — (3) — (3) Investment securities available for sale — 13,349 — 13,349 December 31, 2018 Interest rate contracts — assets $ — $ 5 $ — $ 5 Interest rate contracts — liabilities — (5) — (5) Investment securities available for sale — 2,560 — 2,560 |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Details) - USD ($) | Jan. 01, 2019 | Jun. 30, 2019 |
Summary of Significant Accounting Policies | ||
Right-of-use asset, net | $ 12,700,000 | $ 11,622,000 |
Lease liability | 13,200,000 | 12,121,000 |
Transfer of securities from held-to-maturity to available-for-sale | 11,100,000 | $ 11,390,000 |
Unrecognized gain, net of taxes, on transfer from held-to-maturity to available-for-sale | $ 304,000 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents | ||
Cash and due from banks | $ 9,877 | $ 9,771 |
Interest-earning deposits in other banks | 31,651 | 37,292 |
Cash and cash equivalents | $ 41,528 | $ 47,063 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Values of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Available-for-sale: | ||
Amortized Cost | $ 12,606 | $ 2,644 |
Gross Unrealized Gains | 743 | |
Gross Unrealized Losses | (84) | |
Estimated Fair Value | 13,349 | 2,560 |
U.S. government-sponsored mortgage-backed securities | ||
Available-for-sale: | ||
Amortized Cost | 12,606 | 2,644 |
Gross Unrealized Gains | 743 | |
Gross Unrealized Losses | (84) | |
Estimated Fair Value | $ 13,349 | $ 2,560 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Fair Values of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Held-to-maturity: | ||
Amortized Cost | $ 350,944 | $ 371,517 |
Gross Unrealized Gains | 6,500 | 2,684 |
Gross Unrealized Losses | (1,123) | (9,279) |
Estimated Fair Value | 356,321 | 364,922 |
U.S. government-sponsored mortgage-backed securities | ||
Held-to-maturity: | ||
Amortized Cost | 350,944 | 371,442 |
Gross Unrealized Gains | 6,500 | 2,056 |
Gross Unrealized Losses | (1,123) | (9,279) |
Estimated Fair Value | $ 356,321 | 364,219 |
Trust preferred securities | ||
Held-to-maturity: | ||
Amortized Cost | 75 | |
Gross Unrealized Gains | 628 | |
Estimated Fair Value | $ 703 |
Investment Securities - Maturit
Investment Securities - Maturity Schedule of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due after 10 years | $ 12,606 | |
Amortized Cost | 12,606 | $ 2,644 |
Estimated Fair Value | ||
Due after 10 years | 13,349 | |
Estimated Fair Value | $ 13,349 | $ 2,560 |
Investment Securities - Matur_2
Investment Securities - Maturity Schedule of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Held-to-maturity, Amortized Cost | ||
Due within 5 years | $ 1 | |
Due after 5 years through 10 years | 67 | |
Due after 10 years | 350,876 | |
Amortized Cost | 350,944 | $ 371,517 |
Held-to-maturity, Estimated Fair Value | ||
Due within 5 years | 2 | |
Due after 5 years through 10 years | 68 | |
Due after 10 years | 356,251 | |
Estimated Fair Value | $ 356,321 | $ 364,922 |
Investment Securities - Realize
Investment Securities - Realized Gains and Losses and Proceeds from Sales (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Realized gains and losses and the proceeds from sales of securities | |||||
Proceeds from sales | $ 3,527 | $ 4,462 | |||
Transfer of securities from held-to-maturity to available-for-sale | $ 11,100 | $ 11,390 | |||
Minimum | U.S. government-sponsored mortgage-backed securities | |||||
Realized gains and losses and the proceeds from sales of securities | |||||
Portion of outstanding purchased principal already collected | 85.00% | ||||
Held-to-maturity debt securities | |||||
Realized gains and losses and the proceeds from sales of securities | |||||
Proceeds from sales | $ 1,595 | $ 4,462 | $ 4,336 | 4,462 | |
Gross gains | $ 70 | $ 45 | $ 2,787 | $ 45 |
Investment Securities - Securit
Investment Securities - Securities Pledged (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Pledged investment securities | ||
Investment securities pledged to secure deposits made by state and local governments, securities sold under agreements to repurchase and transaction clearing accounts | $ 193.6 | $ 308.8 |
Investment Securities _ Availab
Investment Securities – Available-for-Sale Unrealized Loss Position Summary (Details) - U.S. government-sponsored mortgage-backed securities $ in Thousands | Dec. 31, 2018USD ($)security |
Schedule of Investments [Line Items] | |
12 Months or Longer Fair Value | $ 2,560 |
12 Months or Longer Unrealized Losses | $ (84) |
Number of Securities | security | 1 |
Total Fair Value | $ 2,560 |
Total Unrealized Losses | $ (84) |
Investment Securities - Held-to
Investment Securities - Held-to-Maturity Unrealized Loss Position Summary (Details) - U.S. government-sponsored mortgage-backed securities $ in Thousands | Jun. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Investment Securities | ||
Less Than 12 Months Fair Value | $ 57,154 | |
Less Than 12 Months Unrealized Losses | (254) | |
12 Months or Longer Fair Value | $ 106,894 | 220,338 |
12 Months or Longer Unrealized Losses | $ (1,123) | $ (9,025) |
Total Number of Securities | security | 38 | 81 |
Total Fair Value | $ 106,894 | $ 277,492 |
Total Unrealized Losses | $ (1,123) | $ (9,279) |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance for Loan Losses - Components (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Real estate loans: | ||||||
Total other loans | $ 6,409 | $ 5,296 | ||||
Total real estate loans | 1,597,577 | 1,575,170 | ||||
Other loans: | ||||||
Total other loans | 6,409 | 5,296 | ||||
Less: Net unearned fees and discounts | (2,894) | (3,110) | ||||
Less: Allowance for loan losses | (2,616) | $ (2,659) | (2,642) | $ (2,614) | $ (2,554) | $ (2,548) |
Total unearned fees, discounts and allowance for loan losses | (5,510) | (5,752) | ||||
Loans receivable, net | 1,598,476 | 1,574,714 | ||||
One- to four-family residential | ||||||
Real estate loans: | ||||||
Total real estate loans | 1,554,982 | 1,531,149 | ||||
Multi-family residential | ||||||
Real estate loans: | ||||||
Total real estate loans | 12,725 | 12,151 | ||||
Construction, Commercial and Other Mortgage Loans | ||||||
Real estate loans: | ||||||
Total real estate loans | 19,066 | 20,780 | ||||
Other loans: | ||||||
Less: Allowance for loan losses | (411) | (454) | (443) | (547) | (530) | (539) |
Home Equity Loans and Lines of Credit | ||||||
Real estate loans: | ||||||
Total real estate loans | 10,804 | 11,090 | ||||
Other loans: | ||||||
Less: Allowance for loan losses | (1) | $ (1) | (1) | $ (1) | $ (1) | $ (1) |
Loans on Deposit Accounts | ||||||
Real estate loans: | ||||||
Total other loans | 339 | 357 | ||||
Other loans: | ||||||
Total other loans | 339 | 357 | ||||
Consumer and Other | ||||||
Real estate loans: | ||||||
Total other loans | 6,070 | 4,939 | ||||
Other loans: | ||||||
Total other loans | $ 6,070 | $ 4,939 |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance for Loan Losses - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Activity in allowance for loan losses | ||||
Balance, beginning of period | $ 2,659 | $ 2,554 | $ 2,642 | $ 2,548 |
Provision (reversal of provision) for loan losses | (51) | 60 | (46) | 69 |
Allowance for loan losses on loans receivable after provision (reversal of allowance) | 2,608 | 2,614 | 2,596 | 2,617 |
Charge-offs | (9) | (7) | (16) | (12) |
Recoveries | 17 | 7 | 36 | 9 |
Net recoveries (charge-offs) | 8 | 20 | (3) | |
Balance, end of period | 2,616 | 2,614 | 2,616 | 2,614 |
Residential Mortgage | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 1,800 | 1,720 | 1,797 | 1,721 |
Provision (reversal of provision) for loan losses | (31) | 34 | (46) | 33 |
Allowance for loan losses on loans receivable after provision (reversal of allowance) | 1,769 | 1,754 | 1,751 | 1,754 |
Recoveries | 6 | 18 | 6 | |
Net recoveries (charge-offs) | 6 | 18 | 6 | |
Balance, end of period | 1,769 | 1,760 | 1,769 | 1,760 |
Construction, Commercial and Other Mortgage Loans | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 454 | 530 | 443 | 539 |
Provision (reversal of provision) for loan losses | (43) | 17 | (32) | 8 |
Allowance for loan losses on loans receivable after provision (reversal of allowance) | 411 | 547 | 411 | 547 |
Balance, end of period | 411 | 547 | 411 | 547 |
Home Equity Loans and Lines of Credit | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 1 | 1 | 1 | 1 |
Allowance for loan losses on loans receivable after provision (reversal of allowance) | 1 | 1 | 1 | 1 |
Balance, end of period | 1 | 1 | 1 | 1 |
Consumer and other loans | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 45 | 49 | 47 | 55 |
Provision (reversal of provision) for loan losses | (9) | 2 | (5) | (1) |
Allowance for loan losses on loans receivable after provision (reversal of allowance) | 36 | 51 | 42 | 54 |
Charge-offs | (9) | (7) | (16) | (12) |
Recoveries | 17 | 1 | 18 | 3 |
Net recoveries (charge-offs) | 8 | (6) | 2 | (9) |
Balance, end of period | 44 | 45 | 44 | 45 |
Unallocated | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 359 | 254 | 354 | 232 |
Provision (reversal of provision) for loan losses | 32 | 7 | 37 | 29 |
Allowance for loan losses on loans receivable after provision (reversal of allowance) | 391 | 261 | 391 | 261 |
Balance, end of period | $ 391 | $ 261 | $ 391 | $ 261 |
Loans Receivable and Allowanc_5
Loans Receivable and Allowance for Loan Losses - Balance in Allowance for Loan Losses and Recorded Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Allowance for loan losses: | ||||||
Collectively evaluated for impairment | $ 2,616 | $ 2,642 | ||||
Total ending allowance balance | 2,616 | $ 2,659 | 2,642 | $ 2,614 | $ 2,554 | $ 2,548 |
Loans: | ||||||
Individually evaluated for impairment | 1,476 | 3,110 | ||||
Collectively evaluated for impairment | 1,599,616 | 1,574,246 | ||||
Total ending loan balance | 1,601,092 | 1,577,356 | ||||
Residential Mortgage | ||||||
Allowance for loan losses: | ||||||
Collectively evaluated for impairment | 1,769 | 1,797 | ||||
Total ending allowance balance | 1,769 | 1,800 | 1,797 | 1,760 | 1,720 | 1,721 |
Loans: | ||||||
Individually evaluated for impairment | 1,378 | 2,962 | ||||
Collectively evaluated for impairment | 1,563,481 | 1,537,292 | ||||
Total ending loan balance | 1,564,859 | 1,540,254 | ||||
Construction, Commercial and Other Mortgage Loans | ||||||
Allowance for loan losses: | ||||||
Collectively evaluated for impairment | 411 | 443 | ||||
Total ending allowance balance | 411 | 454 | 443 | 547 | 530 | 539 |
Loans: | ||||||
Collectively evaluated for impairment | 19,004 | 20,698 | ||||
Total ending loan balance | 19,004 | 20,698 | ||||
Home Equity Loans and Lines of Credit | ||||||
Allowance for loan losses: | ||||||
Collectively evaluated for impairment | 1 | 1 | ||||
Total ending allowance balance | 1 | 1 | 1 | 1 | 1 | 1 |
Loans: | ||||||
Individually evaluated for impairment | 98 | 148 | ||||
Collectively evaluated for impairment | 10,704 | 10,945 | ||||
Total ending loan balance | 10,802 | 11,093 | ||||
Consumer and other loans | ||||||
Allowance for loan losses: | ||||||
Collectively evaluated for impairment | 44 | 47 | ||||
Total ending allowance balance | 44 | 45 | 47 | 45 | 49 | 55 |
Loans: | ||||||
Collectively evaluated for impairment | 6,427 | 5,311 | ||||
Total ending loan balance | 6,427 | 5,311 | ||||
Unallocated | ||||||
Allowance for loan losses: | ||||||
Collectively evaluated for impairment | 391 | 354 | ||||
Total ending allowance balance | $ 391 | $ 359 | $ 354 | $ 261 | $ 254 | $ 232 |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Impaired loans | |||||
Average Recorded Investment | $ 1,490 | $ 3,027 | $ 1,507 | $ 3,052 | |
Interest Income Recognized | 8 | 13 | 17 | 27 | |
One- to four-family residential | |||||
Impaired loans | |||||
Average Recorded Investment | 1,390 | 2,869 | 1,404 | 2,892 | |
Interest Income Recognized | 8 | 13 | 17 | 27 | |
Home Equity Loans and Lines of Credit | |||||
Impaired loans | |||||
Average Recorded Investment | 100 | $ 158 | 103 | $ 160 | |
Individually Evaluated for Impairment | |||||
Impaired loans | |||||
Recorded Investment | 1,476 | 1,476 | $ 3,110 | ||
Unpaid Principal Balance | 1,982 | 1,982 | 3,710 | ||
Loans individually evaluated for impairment with a related allowance for loan loss | 0 | 0 | 0 | ||
Individually Evaluated for Impairment | One- to four-family residential | |||||
Impaired loans | |||||
Recorded Investment | 1,378 | 1,378 | 2,962 | ||
Unpaid Principal Balance | 1,802 | 1,802 | 3,486 | ||
Individually Evaluated for Impairment | Home Equity Loans and Lines of Credit | |||||
Impaired loans | |||||
Recorded Investment | 98 | 98 | 148 | ||
Unpaid Principal Balance | $ 180 | $ 180 | $ 224 |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance for Loan Losses - Delinquent and Nonaccrual Loans (Details) | 6 Months Ended | ||
Jun. 30, 2019USD ($)loan | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable | |||
Nonaccrual Loans | $ 892,000 | $ 2,213,000 | |
Mortgage Loans on Real Estate | Minimum | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loan delinquency period that may result in loss | 90 days | ||
Loan delinquency period after which an appraisal is obtained of the underlying collateral | 4 months | ||
Non Accrual Loans | |||
Accounts, Notes, Loans and Financing Receivable | |||
Number of loans | loan | 7 | 11 | |
Nonaccrual Loans | $ 892,000 | $ 2,200,000 | |
Interest collected on nonaccrual loans recorded as a reduction of principal | 34,000 | $ 52,000 | |
Non accrual loans, additional interest income that would have been recognized had the loans been accruing interest | $ 34,000 | $ 69,000 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance for Loan Losses - Aging of Loans and Accrual Status (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | $ 1,034 | $ 1,247 |
Loans Not Past Due | 1,600,058 | 1,576,109 |
Total ending loan balance | 1,601,092 | 1,577,356 |
Nonaccrual Loans | 892 | 2,213 |
One- to four-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 999 | 1,170 |
Loans Not Past Due | 1,551,154 | 1,526,949 |
Total ending loan balance | 1,552,153 | 1,528,119 |
Nonaccrual Loans | 794 | 2,065 |
Multi-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans Not Past Due | 12,706 | 12,135 |
Total ending loan balance | 12,706 | 12,135 |
Construction, Commercial and Other Mortgage Loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans Not Past Due | 19,004 | 20,698 |
Total ending loan balance | 19,004 | 20,698 |
Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 27 | 70 |
Loans Not Past Due | 10,775 | 11,023 |
Total ending loan balance | 10,802 | 11,093 |
Nonaccrual Loans | 98 | 148 |
Loans on Deposit Accounts | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans Not Past Due | 339 | 357 |
Total ending loan balance | 339 | 357 |
Consumer and Other | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 8 | 7 |
Loans Not Past Due | 6,080 | 4,947 |
Total ending loan balance | 6,088 | 4,954 |
30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 340 | 43 |
30 - 59 Days Past Due | One- to four-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 305 | 40 |
30 - 59 Days Past Due | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 27 | |
30 - 59 Days Past Due | Consumer and Other | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 8 | 3 |
60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 694 | 325 |
60 - 89 Days Past Due | One- to four-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | $ 694 | 292 |
60 - 89 Days Past Due | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 29 | |
60 - 89 Days Past Due | Consumer and Other | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 4 | |
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 879 | |
90 Days or More Past Due | One- to four-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 838 | |
90 Days or More Past Due | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | $ 41 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Loan Losses - Troubled Debt Restructurings (Details) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($)loan | Jun. 30, 2018loan | Jun. 30, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Troubled debt restructurings | ||||
Number of loans subsequently defaulted | loan | 0 | |||
Additional disclosures | ||||
Loans modified by troubled debt restructurings considered impaired | $ 1,310,000 | $ 1,310,000 | $ 1,666,000 | |
Real estate owned | $ 0 | $ 0 | $ 0 | |
Mortgage loans in process of foreclosure, number of contracts | loan | 0 | 0 | ||
Accruing interest | ||||
Additional disclosures | ||||
Number of loans modified by troubled debt restructurings considered impaired | loan | 3 | 3 | 4 | |
Loans modified by troubled debt restructurings considered impaired | $ 584,000 | $ 584,000 | $ 897,000 | |
Non Accrual Loans | ||||
Additional disclosures | ||||
Number of loans modified by troubled debt restructurings considered impaired | loan | 4 | 4 | 4 | |
Loans modified by troubled debt restructurings considered impaired | $ 726,000 | $ 726,000 | $ 769,000 | |
Loans modified in troubled debt restructuring | ||||
Troubled debt restructurings | ||||
Number of Loans | loan | 0 | 0 | ||
Additional disclosures | ||||
Commitments to lend additional funds to borrowers | $ 0 | $ 0 | ||
Nonperforming Financing Receivable | Non Accrual Loans | ||||
Additional disclosures | ||||
Number of loans modified by troubled debt restructurings considered impaired | loan | 0 | 0 | 0 | |
One- to four-family residential | ||||
Additional disclosures | ||||
Loans modified by troubled debt restructurings considered impaired | $ 1,239,000 | $ 1,239,000 | $ 1,588,000 | |
Mortgage loans in process of foreclosure, number of contracts | loan | 2 | |||
Mortgage loans in process of foreclosure, total value | $ 838,000 | |||
One- to four-family residential | Accruing interest | ||||
Additional disclosures | ||||
Number of loans modified by troubled debt restructurings considered impaired | loan | 3 | 3 | 4 | |
Loans modified by troubled debt restructurings considered impaired | $ 584,000 | $ 584,000 | $ 897,000 | |
One- to four-family residential | Non Accrual Loans | ||||
Additional disclosures | ||||
Number of loans modified by troubled debt restructurings considered impaired | loan | 3 | 3 | 3 | |
Loans modified by troubled debt restructurings considered impaired | $ 655,000 | $ 655,000 | $ 691,000 | |
Home Equity Loans and Lines of Credit | ||||
Additional disclosures | ||||
Loans modified by troubled debt restructurings considered impaired | $ 71,000 | $ 71,000 | $ 78,000 | |
Mortgage loans in process of foreclosure, number of contracts | loan | 1 | |||
Mortgage loans in process of foreclosure, total value | $ 41,000 | |||
Home Equity Loans and Lines of Credit | Non Accrual Loans | ||||
Additional disclosures | ||||
Number of loans modified by troubled debt restructurings considered impaired | loan | 1 | 1 | 1 | |
Loans modified by troubled debt restructurings considered impaired | $ 71,000 | $ 71,000 | $ 78,000 |
Loans Receivable and Allowan_10
Loans Receivable and Allowance for Loan Losses - Collateral, Sales, Serviced for Others, Directors and Executive Officers (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)loan | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)loan | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable | |||||
Loans serviced for others | $ 28,300,000 | $ 28,300,000 | $ 30,300,000 | ||
Loans serviced for others, securitization for which the company continues to hold the related mortgage-backed securities | 1,400,000 | 1,400,000 | $ 1,500,000 | ||
Loans serviced for others, amount of contractually specified servicing fees earned | $ 20,000 | $ 22,000 | $ 40,000 | $ 46,000 | |
Mortgage Loans on Real Estate | Maximum | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Loan to value ratio (as a percent) | 80.00% | 80.00% | |||
Residential Mortgage Loans Held For Sale | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Residential mortgage loans sold, loan amount | $ 2,500,000 | 7,000,000 | |||
Residential mortgage loans sold, recognized gains | $ 6,000 | $ 53,000 | |||
Number of loans | loan | 1 | 1 | 1 | ||
Residential mortgage loans held for sale | $ 235,000 | $ 235,000 | $ 309,000 |
Securities Sold Under Agreeme_3
Securities Sold Under Agreements to Repurchase - Summary of Repurchase Liability by Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Securities sold under agreements to repurchase | ||
Repurchase Liability | $ 10,000 | $ 30,000 |
Weighted Average | ||
Securities sold under agreements to repurchase | ||
Rate (as a percent) | 1.65% | 1.66% |
1 year or less | ||
Securities sold under agreements to repurchase | ||
Repurchase Liability | $ 10,000 | $ 25,000 |
1 year or less | Weighted Average | ||
Securities sold under agreements to repurchase | ||
Rate (as a percent) | 1.65% | 1.66% |
Over 1 year to 2 years | ||
Securities sold under agreements to repurchase | ||
Repurchase Liability | $ 5,000 | |
Over 1 year to 2 years | Weighted Average | ||
Securities sold under agreements to repurchase | ||
Rate (as a percent) | 1.65% |
Securities Sold Under Agreeme_4
Securities Sold Under Agreements to Repurchase - Summary of Securities Pledged (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Securities sold under agreements to repurchase | |
Repurchase liability maximum | 90.00% |
Maturing Over 90 days | |
Securities sold under agreements to repurchase | |
Carrying Value of Securities | $ 13,543 |
Fair Value of Securities | 13,326 |
Repurchase Liability | 10,000 |
Amount at Risk | $ 3,543 |
Weighted Average Months to Maturity | 6 months |
Offsetting of Financial Liabi_3
Offsetting of Financial Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Securities sold under agreements to repurchase | ||
Gross Amount of Recognized Liabilities | $ 10,000 | $ 30,000 |
Net Amount of Liabilities Presented in the Balance Sheet | 10,000 | 30,000 |
Gross amount not offset in the balance sheet | ||
Financial Instruments | $ 10,000 | $ 30,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Plan | Minimum | ||||
Pension and Other Postretirement Benefit Contributions | ||||
Requisite service period for receiving benefits under the plan | 1 year | |||
Supplemental Employee Retirement Plan (SERP) | ||||
Net periodic benefit cost (income) for the year: | ||||
Service cost | $ 26 | $ 20 | $ 51 | $ 40 |
Interest cost | 40 | 38 | 81 | 75 |
Net periodic benefit cost (income) | $ 66 | $ 58 | $ 132 | $ 115 |
Employee Stock Ownership Plan -
Employee Stock Ownership Plan - Loan, Expense and Shares (Details) - ESOP - USD ($) | Jul. 10, 2009 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Employee Stock Ownership Plan | ||||||
Amount borrowed from employer | $ 9,800,000 | |||||
Shares purchased | 978,650 | |||||
Percentage of shares issued in initial public offering | 8.00% | |||||
Employee stock ownership plan, price per share of shares acquired in initial public offering (in dollars per share) | $ 10 | |||||
Term of loan | 20 years | |||||
ESOP expense | $ 345,000 | $ 435,000 | $ 679,000 | $ 811,000 | ||
Allocated shares | 442,341 | 442,341 | 446,041 | |||
Unearned shares | 464,863 | 464,863 | 489,329 | |||
Total ESOP shares | 907,204 | 907,204 | 935,370 | |||
Fair value of unearned shares, in thousands | $ 14,364,000 | $ 14,364,000 | $ 12,713,000 | |||
Prime rate | ||||||
Employee Stock Ownership Plan | ||||||
Variable interest rate | Wall Street Journal Prime Rate |
Employee Stock Ownership Plan_2
Employee Stock Ownership Plan - Nonqualified ESOP Restoration Plan (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
ESOP restoration | Certain executives | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | ||||
Accrued (reversed) benefits | $ 122,000 | $ 16,000 | $ 179,000 | $ 111,000 |
Share-Based Compensation - Plan
Share-Based Compensation - Plan Provisions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-Based Compensation | ||||
Compensation expense | $ 285 | $ 69 | $ 371 | $ 135 |
Income tax benefit | $ 78 | $ 19 | $ 101 | $ 37 |
2010 Equity Incentive Plan | ||||
Share-Based Compensation | ||||
Number of shares authorized | 1,862,637 | 1,862,637 | ||
2010 Equity Incentive Plan | Vesting period one | ||||
Share-Based Compensation | ||||
Unrecognized compensation costs, period of recognition | 3 years | |||
Vesting period | 3 years | |||
2010 Equity Incentive Plan | Vesting period two | ||||
Share-Based Compensation | ||||
Unrecognized compensation costs, period of recognition | 5 years | |||
Vesting period | 5 years | |||
2010 Equity Incentive Plan | Vesting period three | ||||
Share-Based Compensation | ||||
Unrecognized compensation costs, period of recognition | 6 years | |||
Vesting period | 6 years |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common Stock | ||||||||
Stock option activity | ||||||||
Exercised (in shares) | 107,610 | 74,560 | 51,000 | 18,008 | ||||
Stock option activity | ||||||||
Shares of common stock issued in exchange for stock options and common shares | 75,140 | |||||||
Common shares exchanged | 107,030 | |||||||
Stock Options | ||||||||
Stock option activity | ||||||||
Balance at beginning of period (in shares) | 337,654 | 411,543 | 337,654 | 411,543 | 411,543 | |||
Exercised (in shares) | 182,170 | 69,008 | ||||||
Balance at end of period (in shares) | 155,484 | 342,535 | 155,484 | 342,535 | 337,654 | 411,543 | ||
Options vested and exercisable (in shares) | 155,484 | 155,484 | ||||||
Weighted Average Exercise Price | ||||||||
Balance at beginning of period (in dollars per share) | $ 17.51 | $ 17.48 | $ 17.51 | $ 17.48 | $ 17.48 | |||
Exercised (in dollars per share) | 17.36 | 17.36 | ||||||
Balance at end of period (in dollars per share) | $ 17.69 | $ 17.51 | 17.69 | $ 17.51 | $ 17.51 | $ 17.48 | ||
Options vested and exercisable (in dollars per share) | $ 17.69 | $ 17.69 | ||||||
Remaining Contractual Life | ||||||||
Options outstanding | 1 year 3 months 29 days | 2 years 2 months 27 days | 1 year 8 months 27 days | 2 years 8 months 23 days | ||||
Options vested and exercisable | 1 year 3 months 29 days | |||||||
Aggregate Intrinsic Value | ||||||||
Beginning of period | $ 2,859 | $ 5,509 | $ 2,859 | $ 5,509 | $ 5,509 | |||
Exercised | $ 1,243 | $ 683 | 2,031 | 920 | ||||
End of period | 2,054 | 4,621 | 2,054 | 4,621 | $ 2,859 | $ 5,509 | ||
Options vested and exercisable | 2,054 | 2,054 | ||||||
Stock option activity | ||||||||
Intrinsic value of stock options exercised | 1,243 | 683 | 2,031 | 920 | ||||
Proceeds received from stock options exercised | 1,868 | 885 | 3,162 | 1,198 | ||||
Tax benefits realized from stock options exercised | 254 | $ 178 | 425 | $ 220 | ||||
Unrecognized compensation costs | $ 0 | $ 0 | ||||||
Stock Options | Common Stock | ||||||||
Stock option activity | ||||||||
Exercised (in shares) | 182,170 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Awards (Details) - USD ($) | Mar. 07, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Restricted Stock | ||||
Restricted Stock Awards | ||||
Non-vested at beginning of period (in shares) | 16,424 | 10,806 | ||
Granted (in shares) | 10,366 | 10,019 | ||
Vested (in shares) | 6,541 | 3,201 | ||
Non-vested at end of period (in shares) | 20,249 | 17,624 | ||
Weighted Average Grant Date Fair Value | ||||
Non-vested at beginning of period (in dollars per share) | $ 30.26 | $ 29.16 | ||
Granted (in dollars per share) | 27.30 | 30.73 | ||
Vested (in dollars per share) | 30.14 | 29.53 | ||
Non-vested at end of period (in dollars per share) | $ 28.78 | $ 29.92 | ||
Unrecognized compensation | ||||
Vesting period | 3 years | |||
Unrecognized compensation costs | $ 512,000 | |||
Restricted Stock Units Based on a Performance Condition | ||||
Restricted Stock Awards | ||||
Non-vested at beginning of period (in shares) | 23,538 | 11,520 | ||
Granted (in shares) | 12,438 | 12,018 | ||
Non-vested at end of period (in shares) | 35,976 | 23,538 | ||
Weighted Average Grant Date Fair Value | ||||
Non-vested at beginning of period (in dollars per share) | $ 30.14 | $ 29.53 | ||
Granted (in dollars per share) | 27.30 | 30.73 | ||
Non-vested at end of period (in dollars per share) | $ 29.16 | $ 30.14 | ||
Unrecognized compensation | ||||
Unrecognized compensation costs | $ 537,000 | |||
Unrecognized compensation costs, period of recognition | 3 years | |||
Restricted Stock Units Based on a Performance Condition | Minimum | ||||
Unrecognized compensation | ||||
Shares vesting as a percentage of target | 0.00% | |||
Restricted Stock Units Based on a Performance Condition | Maximum | ||||
Unrecognized compensation | ||||
Shares vesting as a percentage of target | 150.00% | |||
Restricted Stock Units Based on a Market Condition | ||||
Restricted Stock Awards | ||||
Non-vested at beginning of period (in shares) | 5,884 | 2,879 | ||
Granted (in shares) | 3,110 | 3,005 | ||
Non-vested at end of period (in shares) | 8,994 | 5,884 | ||
Weighted Average Grant Date Fair Value | ||||
Non-vested at beginning of period (in dollars per share) | $ 26.42 | $ 24.44 | ||
Granted (in dollars per share) | 24.45 | 28.32 | ||
Non-vested at end of period (in dollars per share) | $ 25.74 | $ 26.42 | ||
Unrecognized compensation | ||||
Unrecognized compensation costs | $ 92,000 | |||
Unrecognized compensation costs, period of recognition | 3 years | |||
Assumptions used in the Monte Carlo valuation of PRSUs | ||||
Term used for risk-free rate and historical volatility | 2 years 9 months 26 days | |||
Risk-free interest rate (as a percent) | 2.45% | |||
Closing stock price (in dollars per share) | $ 27.30 | $ 25.98 | ||
Annualized volatility (as a percent) | 15.10% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share | ||||||
Net income | $ 5,060 | $ 6,524 | $ 4,963 | $ 4,820 | $ 11,584 | $ 9,783 |
Income allotted to participating securities | (37) | (27) | (74) | (42) | ||
Net income available to common shareholders | $ 5,023 | $ 4,936 | $ 11,510 | $ 9,741 | ||
Weighted-average number of shares used in: | ||||||
Basic earnings per share (in shares) | 9,172,376 | 9,219,859 | 9,170,825 | 9,251,999 | ||
Dilutive common stock equivalents: | ||||||
Stock options and restricted stock units (in shares) | 104,304 | 174,172 | 123,502 | 187,619 | ||
Diluted earnings per share (in shares) | 9,276,680 | 9,394,031 | 9,294,327 | 9,439,618 | ||
Net income per common share, basic (in dollars per share) | $ 0.55 | $ 0.54 | $ 1.26 | $ 1.05 | ||
Net income per common share, diluted (in dollars per share) | $ 0.54 | $ 0.53 | $ 1.24 | $ 1.03 |
Other Comprehensive Income an_3
Other Comprehensive Income and Loss - Changes in Components of Accumulated Other Comprehensive Income and Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Changes in the components of accumulated other comprehensive loss, net of taxes | ||||||
Balances at beginning of period | $ (238,838) | $ (235,079) | $ (232,372) | $ (234,854) | $ (235,079) | $ (234,854) |
Other comprehensive (gain) loss, net of taxes | (119) | (490) | 11 | 49 | (609) | 60 |
Balances at end of period | (241,772) | (238,838) | (234,699) | (232,372) | (241,772) | (234,699) |
Accumulated Other Comprehensive Loss | ||||||
Changes in the components of accumulated other comprehensive loss, net of taxes | ||||||
Balances at beginning of period | 7,319 | 7,809 | 6,878 | 5,694 | 7,809 | 5,694 |
Other comprehensive (gain) loss, net of taxes | (119) | (490) | 11 | 49 | (609) | 60 |
Amounts reclassified from retained earnings | (1,135) | |||||
Net current period other comprehensive (gain) loss | (119) | 11 | (609) | 1,195 | ||
Balances at end of period | 7,200 | 7,319 | 6,889 | 6,878 | 7,200 | 6,889 |
Unfunded Pension Liability | ||||||
Changes in the components of accumulated other comprehensive loss, net of taxes | ||||||
Balances at beginning of period | 7,721 | 7,721 | 6,783 | 5,657 | 7,721 | 5,657 |
Amounts reclassified from retained earnings | (1,126) | |||||
Net current period other comprehensive (gain) loss | 1,126 | |||||
Balances at end of period | 7,721 | 7,721 | 6,783 | 6,783 | 7,721 | 6,783 |
Unrealized (gain)/loss on securities | ||||||
Changes in the components of accumulated other comprehensive loss, net of taxes | ||||||
Balances at beginning of period | (402) | 88 | 95 | 37 | 88 | 37 |
Other comprehensive (gain) loss, net of taxes | (119) | 11 | (609) | 60 | ||
Amounts reclassified from retained earnings | (9) | |||||
Net current period other comprehensive (gain) loss | (119) | 11 | (609) | 69 | ||
Balances at end of period | $ (521) | $ (402) | $ 106 | $ 95 | $ (521) | $ 106 |
Other Comprehensive Income an_4
Other Comprehensive Income and Loss - Tax Effect on Each Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Tax effect on each component of other comprehensive loss | ||||||
Pretax amount | $ (162) | $ 16 | $ (830) | $ 82 | ||
Tax | 43 | (5) | 221 | (22) | ||
After Tax Amount | (119) | $ (490) | 11 | $ 49 | (609) | 60 |
Accumulated Other Comprehensive Loss | ||||||
Tax effect on each component of other comprehensive loss | ||||||
After Tax Amount | (119) | $ (490) | 11 | $ 49 | (609) | 60 |
Unrealized (gain)/loss on securities | ||||||
Tax effect on each component of other comprehensive loss | ||||||
Pretax amount | (162) | 16 | (830) | 82 | ||
Tax | 43 | (5) | 221 | (22) | ||
After Tax Amount | $ (119) | $ 11 | $ (609) | $ 60 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | ||||
Revenue from contracts with customers | $ 427 | $ 443 | $ 800 | $ 804 |
Other revenue | 566 | 123 | 703 | 246 |
Total | 485 | 487 | 923 | 902 |
Total | 508 | 79 | 580 | 148 |
Total | 993 | 566 | 1,503 | 1,050 |
Service Fees on Loan and Deposit Accounts | ||||
Revenues | ||||
Revenue from contracts with customers | 373 | 391 | 700 | 711 |
Other revenue | 112 | 96 | 223 | 191 |
Total | 485 | 487 | 923 | 902 |
Other | ||||
Revenues | ||||
Revenue from contracts with customers | 54 | 52 | 100 | 93 |
Other revenue | 454 | 27 | 480 | 55 |
Total | $ 508 | $ 79 | $ 580 | $ 148 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases | ||
Election to use package of lease practical expedients | true | |
Lease costs: | ||
Operating lease costs | $ 782 | $ 1,565 |
Short-term lease costs | 10 | 16 |
Variable lease costs | 28 | 53 |
Total lease costs | $ 820 | $ 1,634 |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Commitments Under Noncancellable Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
Future minimum rental commitments: | ||
2019 | $ 1,344 | |
2020 | 2,466 | |
2021 | 1,979 | |
2022 | 1,810 | |
2023 | 1,523 | |
Thereafter | 4,228 | |
Total | 13,350 | |
Less interest | 1,229 | |
Present value of leases | $ 12,121 | $ 13,200 |
Leases - Other Related Informat
Leases - Other Related Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Leases | ||
Cash paid for amounts included in measurement of lease liabilities | $ 772 | $ 1,545 |
New ROU operating assets | $ 13 | $ 13,008 |
Weighted-average remaining lease term (years) | 6 years 4 months 24 days | 6 years 4 months 24 days |
Weighted-average discount rate | 2.91% | 2.91% |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Estimated Fair Values (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Investment securities available for sale, at fair value | $ 13,349 | $ 2,560 |
Investment securities held to maturity | 356,321 | 364,922 |
Carrying Amount | ||
Assets | ||
Cash and cash equivalents | 41,528 | 47,063 |
Investment securities available for sale, at fair value | 13,349 | 2,560 |
Investment securities held to maturity | 350,944 | 371,517 |
Loans held for sale | 235 | 309 |
Loans receivable, net | 1,598,476 | 1,574,714 |
FHLB stock | 8,303 | 8,093 |
FRB stock | 3,116 | 3,114 |
Accrued interest receivable | 5,575 | 5,274 |
Interest rate contracts | 3 | 5 |
Liabilities | ||
Deposits | 1,645,730 | 1,629,164 |
Advances from the Federal Home Loan Bank | 145,500 | 142,200 |
Securities sold under agreements to repurchase | 10,000 | 30,000 |
Accrued interest payable | 648 | 243 |
Interest rate contracts | 3 | 5 |
Estimated Fair Value | ||
Assets | ||
Cash and cash equivalents | 41,528 | 47,063 |
Investment securities available for sale, at fair value | 13,349 | 2,560 |
Investment securities held to maturity | 356,321 | 364,922 |
Loans held for sale | 241 | 319 |
Loans receivable, net | 1,656,673 | 1,553,672 |
FHLB stock | 8,303 | 8,093 |
FRB stock | 3,116 | 3,114 |
Accrued interest receivable | 5,575 | 5,274 |
Interest rate contracts | 3 | 5 |
Liabilities | ||
Deposits | 1,647,203 | 1,626,587 |
Advances from the Federal Home Loan Bank | 147,067 | 141,874 |
Securities sold under agreements to repurchase | 9,976 | 29,876 |
Accrued interest payable | 648 | 243 |
Interest rate contracts | 3 | 5 |
Estimated Fair Value | Level 1 | ||
Assets | ||
Cash and cash equivalents | 41,528 | 47,063 |
Accrued interest receivable | 33 | 12 |
Estimated Fair Value | Level 2 | ||
Assets | ||
Investment securities available for sale, at fair value | 13,349 | 2,560 |
Investment securities held to maturity | 356,321 | 364,219 |
Loans held for sale | 241 | 319 |
FHLB stock | 8,303 | 8,093 |
FRB stock | 3,116 | 3,114 |
Accrued interest receivable | 932 | 960 |
Interest rate contracts | 3 | 5 |
Liabilities | ||
Deposits | 1,189,779 | 1,238,023 |
Advances from the Federal Home Loan Bank | 147,067 | 141,874 |
Securities sold under agreements to repurchase | 9,976 | 29,876 |
Accrued interest payable | 52 | 111 |
Interest rate contracts | 3 | 5 |
Estimated Fair Value | Level 3 | ||
Assets | ||
Investment securities held to maturity | 703 | |
Loans receivable, net | 1,656,673 | 1,553,672 |
Accrued interest receivable | 4,610 | 4,302 |
Liabilities | ||
Deposits | 457,424 | 388,564 |
Accrued interest payable | $ 596 | $ 132 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets and Liabilities Measured at Fair Value on Recurring Basis | ||
Investment securities available for sale, at fair value | $ 13,349 | $ 2,560 |
Fair Value, Measurements, Recurring | ||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ||
Interest rate contracts - assets | 3 | 5 |
Interest rate contracts - liabilities | (3) | (5) |
Investment securities available for sale, at fair value | 13,349 | 2,560 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ||
Interest rate contracts - assets | 3 | 5 |
Interest rate contracts - liabilities | (3) | (5) |
Investment securities available for sale, at fair value | $ 13,349 | $ 2,560 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Nonrecurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Measurements, Nonrecurring | ||
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses | ||
Fair value | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Jul. 25, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Subsequent Events | |||||||
Quarterly cash dividend declared on common stock (in dollars per share) | $ 0.32 | $ 0.22 | $ 0.30 | $ 0.20 | $ 0.54 | $ 0.50 | |
Subsequent event | |||||||
Subsequent Events | |||||||
Quarterly cash dividend declared on common stock (in dollars per share) | $ 0.22 |