Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 31, 2020 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2020 | |
Entity File Number | 001-34403 | |
Entity Registrant Name | Territorial Bancorp Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 26-4674701 | |
Entity Address, Address Line One | 1132 Bishop Street, SuiteĀ 2200 | |
Entity Address, City or Town | Honolulu | |
Entity Address, State or Province | HI | |
Entity Address, Postal Zip Code | 96813 | |
City Area Code | 808 | |
Local Phone Number | 946-1400 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | TBNK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,513,867 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001447051 | |
Amendment Flag | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 237,498 | $ 44,806 |
Investment securities available for sale, at fair value | 3,959 | 8,628 |
Investment securities held to maturity, at amortized cost (fair value of $309,471 and $371,305 at September 30, 2020 and December 31, 2019, respectively) | 292,528 | 363,883 |
Loans held for sale | 834 | 470 |
Loans receivable, net | 1,482,639 | 1,584,784 |
Federal Home Loan Bank stock, at cost | 8,144 | 8,723 |
Federal Reserve Bank stock, at cost | 3,145 | 3,128 |
Accrued interest receivable | 7,214 | 5,409 |
Premises and equipment, net | 4,937 | 4,370 |
Right-of-use asset, net | 13,375 | 11,580 |
Bank-owned life insurance | 45,720 | 45,113 |
Deferred income tax assets, net | 3,290 | 2,619 |
Prepaid expenses and other assets | 3,034 | 2,800 |
Total assets | 2,106,317 | 2,086,313 |
Liabilities: | ||
Deposits | 1,662,706 | 1,631,933 |
Advances from the Federal Home Loan Bank | 141,000 | 156,000 |
Securities sold under agreements to repurchase | 10,000 | 10,000 |
Accounts payable and accrued expenses | 25,304 | 23,038 |
Lease liability | 14,130 | 12,183 |
Income taxes payable | 2,411 | 2,305 |
Advance payments by borrowers for taxes and insurance | 4,108 | 6,964 |
Total liabilities | 1,859,659 | 1,842,423 |
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 9,513,867 and 9,681,493 shares at September 30, 2020 and December 31, 2019, respectively | 95 | 97 |
Additional paid-in capital | 60,905 | 65,057 |
Unearned ESOP shares | (4,037) | (4,404) |
Retained earnings | 197,562 | 190,808 |
Accumulated other comprehensive loss | (7,867) | (7,668) |
Total stockholders' equity | 246,658 | 243,890 |
Total liabilities and stockholders' equity | $ 2,106,317 | $ 2,086,313 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheets (Unaudited) | ||
Investment securities held to maturity, fair value (in dollars) | $ 309,471 | $ 371,305 |
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 | 9,513,867 | 9,681,493 |
Common stock, shares outstanding | 9,513,867 | 9,681,493 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest income: | ||||
Loans | $ 14,628,000 | $ 15,864,000 | $ 45,310,000 | $ 47,475,000 |
Investment securities | 2,264,000 | 2,865,000 | 7,654,000 | 8,583,000 |
Other investments | 239,000 | 219,000 | 753,000 | 709,000 |
Total interest income | 17,131,000 | 18,948,000 | 53,717,000 | 56,767,000 |
Interest expense: | ||||
Deposits | 1,897,000 | 3,382,000 | 7,385,000 | 10,120,000 |
Advances from the Federal Home Loan Bank | 724,000 | 973,000 | 2,448,000 | 2,425,000 |
Securities sold under agreements to repurchase | 46,000 | 42,000 | 137,000 | 173,000 |
Total interest expense | 2,667,000 | 4,397,000 | 9,970,000 | 12,718,000 |
Net interest income | 14,464,000 | 14,551,000 | 43,747,000 | 44,049,000 |
Provision for loan losses | 692,000 | 111,000 | 2,304,000 | 65,000 |
Net interest income after provision for loan losses | 13,772,000 | 14,440,000 | 41,443,000 | 43,984,000 |
Noninterest income: | ||||
Revenue from contracts with customers | 310,000 | 384,000 | 1,006,000 | 1,184,000 |
Income on bank-owned life insurance | 204,000 | 215,000 | 607,000 | 632,000 |
Gain on sale of investment securities | 261,000 | 123,000 | 858,000 | 2,910,000 |
Gain on sale of loans | 321,000 | 1,205,000 | 987,000 | 1,211,000 |
Total noninterest income | 1,577,000 | 2,102,000 | 4,339,000 | 6,815,000 |
Noninterest expense: | ||||
Salaries and employee benefits | 5,346,000 | 5,586,000 | 16,294,000 | 17,002,000 |
Occupancy | 1,701,000 | 1,610,000 | 4,972,000 | 4,780,000 |
Equipment | 1,155,000 | 1,039,000 | 3,439,000 | 3,150,000 |
Federal deposit insurance premiums | 138,000 | 1,000 | 212,000 | 288,000 |
Other general and administrative expenses | 1,046,000 | 1,165,000 | 2,978,000 | 3,466,000 |
Total noninterest expense | 9,386,000 | 9,401,000 | 27,895,000 | 28,686,000 |
Income before income taxes | 5,963,000 | 7,141,000 | 17,887,000 | 22,113,000 |
Income taxes | 1,645,000 | 1,775,000 | 4,805,000 | 5,163,000 |
Net income | $ 4,318,000 | $ 5,366,000 | $ 13,082,000 | $ 16,950,000 |
Basic earnings per share (in dollars per share) | $ 0.47 | $ 0.58 | $ 1.43 | $ 1.83 |
Diluted earnings per share (in dollars per share) | 0.47 | 0.57 | 1.42 | 1.81 |
Cash dividends declared (in dollars per share) | $ 0.23 | $ 0.22 | $ 0.69 | $ 0.76 |
Basic weighted-average shares outstanding (in shares) | 9,104,079 | 9,212,119 | 9,144,463 | 9,184,741 |
Diluted weighted-average shares outstanding (in shares) | 9,134,089 | 9,295,729 | 9,201,882 | 9,309,420 |
Service Fees on Loan and Deposit Accounts | ||||
Noninterest income: | ||||
Revenue from contracts with customers | $ 275,000 | $ 347,000 | $ 918,000 | $ 1,047,000 |
Service fees on loan and deposit accounts | 728,000 | 504,000 | 1,716,000 | 1,427,000 |
Other | ||||
Noninterest income: | ||||
Revenue from contracts with customers | 35,000 | 37,000 | 88,000 | 137,000 |
Other | $ 63,000 | $ 55,000 | $ 171,000 | $ 635,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Consolidated Statements of Comprehensive Income (Unaudited) | ||||
Net income | $ 4,318 | $ 5,366 | $ 13,082 | $ 16,950 |
Change in unrealized (loss) gain on securities, net of tax | (4) | (21) | (199) | 588 |
Other comprehensive (loss) gain, net of tax | (4) | (21) | (199) | 588 |
Comprehensive income | $ 4,314 | $ 5,345 | $ 12,883 | $ 17,538 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Unearned ESOP Shares | Retained Earnings | Accumulated Other Comprehensive Loss | Total |
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 | 16,950 | 16,950 | ||||
Other comprehensive income (loss) | 588 | 588 | ||||
Adoption of lease accounting standard | (10) | (10) | ||||
Cash dividends declared | (7,014) | (7,014) | ||||
Share-based compensation | 494 | 494 | ||||
Share-based compensation (in shares) | 6,541 | |||||
Allocation of ESOP shares | 661 | 367 | 1,028 | |||
Repurchase of shares of common stock | $ (2) | (5,042) | (5,044) | |||
Repurchase of shares of common stock (in shares) | (180,944) | |||||
Exercise of options for common stock | $ 2 | 3,529 | 3,531 | |||
Exercise of options for common stock (in shares) | 203,370 | |||||
Balance at Sep. 30, 2019 | $ 97 | 64,732 | (4,526) | 192,520 | (7,221) | 245,602 |
Balance (in shares) at Sep. 30, 2019 | 9,674,922 | |||||
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 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 5,366 | 5,366 | ||||
Other comprehensive income (loss) | (21) | (21) | ||||
Cash dividends declared | (2,035) | (2,035) | ||||
Share-based compensation | 123 | 123 | ||||
Allocation of ESOP shares | 227 | 123 | 350 | |||
Repurchase of shares of common stock | (321) | (321) | ||||
Repurchase of shares of common stock (in shares) | (11,071) | |||||
Exercise of options for common stock | 368 | 368 | ||||
Exercise of options for common stock (in shares) | 21,200 | |||||
Balance at Sep. 30, 2019 | $ 97 | 64,732 | (4,526) | 192,520 | (7,221) | 245,602 |
Balance (in shares) at Sep. 30, 2019 | 9,674,922 | |||||
Balance at Dec. 31, 2019 | $ 97 | 65,057 | (4,404) | 190,808 | (7,668) | 243,890 |
Balance (in shares) at Dec. 31, 2019 | 9,681,493 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 13,082 | 13,082 | ||||
Other comprehensive income (loss) | (199) | (199) | ||||
Cash dividends declared | (6,328) | (6,328) | ||||
Share-based compensation | 523 | 523 | ||||
Share-based compensation (in shares) | 18,875 | |||||
Allocation of ESOP shares | 538 | 367 | 905 | |||
Repurchase of shares of common stock | $ (3) | (6,633) | (6,636) | |||
Repurchase of shares of common stock (in shares) | (268,328) | |||||
Exercise of options for common stock | $ 1 | 1,420 | 1,421 | |||
Exercise of options for common stock (in shares) | 81,827 | |||||
Balance at Sep. 30, 2020 | $ 95 | 60,905 | (4,037) | 197,562 | (7,867) | 246,658 |
Balance (in shares) at Sep. 30, 2020 | 9,513,867 | |||||
Balance at Jun. 30, 2020 | $ 95 | 60,606 | (4,159) | 195,348 | (7,863) | 244,027 |
Balance (in shares) at Jun. 30, 2020 | 9,513,867 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 4,318 | 4,318 | ||||
Other comprehensive income (loss) | (4) | (4) | ||||
Cash dividends declared | (2,104) | (2,104) | ||||
Share-based compensation | 157 | 157 | ||||
Allocation of ESOP shares | 142 | 122 | 264 | |||
Balance at Sep. 30, 2020 | $ 95 | $ 60,905 | $ (4,037) | $ 197,562 | $ (7,867) | $ 246,658 |
Balance (in shares) at Sep. 30, 2020 | 9,513,867 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Consolidated Statements of Stockholders' Equity, Share Data | ||||
Cash dividends declared (in dollars per share) | $ 0.23 | $ 0.22 | $ 0.69 | $ 0.76 |
Common Stock | ||||
Consolidated Statements of Stockholders' Equity, Share Data | ||||
Allocation of ESOP shares, shares | 12,233 | 12,233 | 36,699 | 36,699 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 13,082,000 | $ 16,950,000 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Provision for loan losses | 2,304,000 | 65,000 |
Depreciation and amortization | 899,000 | 876,000 |
Deferred income tax (benefit) expense | (599,000) | 874,000 |
Amortization of fees, discounts, and premiums, net | (228,000) | (419,000) |
Amortization of right-of-use asset | 2,238,000 | 2,076,000 |
Origination of loans held for sale | (22,605,000) | (3,845,000) |
Proceeds from sales of loans held for sale | 22,822,000 | 3,631,000 |
Gain on sale of loans, net | (987,000) | (1,211,000) |
Gain on sale of investment securities available for sale | (290,000) | (153,000) |
Gain on sale of investment securities held to maturity | (568,000) | (2,757,000) |
Net gain on disposal of premises and equipment | (4,000) | |
ESOP expense | 905,000 | 1,028,000 |
Share-based compensation expense | 523,000 | 494,000 |
Increase in accrued interest receivable | (1,805,000) | (220,000) |
Net increase in bank-owned life insurance | (607,000) | (631,000) |
Net (increase) decrease in prepaid expenses and other assets | (96,000) | 54,000 |
Net increase in accounts payable and accrued expenses | 2,080,000 | 245,000 |
Net decrease in lease liability | (2,146,000) | (2,000,000) |
Net decrease in advance payments by borrowers for taxes and insurance | (2,856,000) | (3,087,000) |
Net increase (decrease) in income taxes payable | 106,000 | (232,000) |
Net cash from operating activities | 12,168,000 | 11,738,000 |
Cash flows from investing activities: | ||
Purchases of investment securities held to maturity | (7,845,000) | |
Principal repayments on investment securities held to maturity | 71,118,000 | 28,043,000 |
Principal repayments on investment securities available for sale | 1,013,000 | 917,000 |
Proceeds from sale of investment securities held to maturity | 10,429,000 | 3,527,000 |
Proceeds from sale of investment securities available for sale | 3,668,000 | 5,117,000 |
Principal repayments on loans receivable, net of loan originations | 90,780,000 | (47,118,000) |
Purchases of Federal Home Loan Bank stock | (21,000) | (21,642,000) |
Proceeds from redemption of Federal Home Loan Bank stock | 600,000 | 19,896,000 |
Purchases of Federal Reserve Bank stock | (17,000) | (14,000) |
Proceeds from bank-owned life insurance | 788,000 | |
Purchases of premises and equipment | (1,466,000) | (383,000) |
Proceeds from disposals of premises and equipment | 4,000 | |
Net cash from investing activities | 176,108,000 | (18,714,000) |
Cash flows from financing activities: | ||
Net increase (decrease) in deposits | 30,773,000 | (23,970,000) |
Proceeds from advances from the Federal Home Loan Bank | 539,100,000 | |
Repayments of advances from the Federal Home Loan Bank | (15,000,000) | (497,400,000) |
Proceeds from securities sold under agreements to repurchase | 5,000,000 | |
Repayments of securities sold under agreements to repurchase | (5,000,000) | (20,000,000) |
Purchases of Fed Funds | 10,000 | 10,000 |
Sales of Fed Funds | (10,000) | (10,000) |
Proceeds from issuance of common stock | 170,000 | |
Repurchases of common stock | (5,000,000) | (1,597,000) |
Cash dividends paid | (6,357,000) | (6,980,000) |
Net cash from financing activities | 4,416,000 | (10,677,000) |
Net increase (decrease) in cash and cash equivalents | 192,692,000 | (17,653,000) |
Cash and cash equivalents at beginning of the period | 44,806,000 | 47,063,000 |
Cash and cash equivalents at end of the period | 237,498,000 | 29,410,000 |
Cash paid for: | ||
Interest on deposits and borrowings | 10,268,000 | 12,772,000 |
Income taxes | 6,208,000 | 4,521,000 |
Supplemental disclosure of noncash investing and financing activities: | ||
Company stock acquired through stock swap and net settlement transactions | 1,421,000 | 3,361,000 |
Company stock repurchased through stock swap and net settlement transactions | 1,636,000 | 3,447,000 |
Loans securitized into investment securities | 9,431,000 | 30,145,000 |
Loans receivable transferred to held for sale | 29,229,000 | |
Dividends declared, not yet paid | 29,000 | (34,000) |
Establishment of right-of-use asset, net of incentives | 4,033,000 | 13,254,000 |
Establishment of lease liability | $ 4,093,000 | 13,733,000 |
Transfer of securities from held-to-maturity to available-for-sale | $ 11,390,000 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2020 | |
Organization | |
Organization | (1) Organization ā In 2009, Territorial Savings Bank (the Bank) completed a conversion from a mutual holding company to a stock holding company and Territorial Bancorp Inc. (the Company) became the holding company for Territorial Savings Bank. Upon completion of the conversion and reorganization, a special āliquidation accountā 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. ā 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. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Basis of Presentation | |
Basis of Presentation | (2) Basis of Presentation ā The accompanying unaudited consolidated financial statements of Territorial Bancorp Inc. 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 annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited interim condensed consolidated financial statements and notes should be read in conjunction with the Companyās consolidated financial statements and notes thereto filed as part of the Annual Report on Form 10-K for the year ended December 31, 2019. 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. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Recently Issued Accounting Pronouncements | |
Recently Issued Accounting Pronouncements | (3) Recently Issued Accounting Pronouncements ā In June 2016, the Financial Accounting Standards Board (FASB) amended various sections of the FASB Accounting Standards Codification (ASC) related to the accounting for credit losses on financial instruments. The amendment changes the threshold for recognizing losses from a āprobableā to an āexpectedā 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 organizationās portfolio. The amendment is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In November 2019, the FASB issued an update that delays the effective date of the amendment for smaller reporting companies, as defined by the Securities and Exchange Commission, to fiscal years beginning after December 15, 2022. The Company is a smaller reporting company. The Company will apply the amendmentās provisions as a cumulative-effect adjustment to retained earnings at the beginning of the first period the amendment is effective. The Company has formed a team that is working on an implementation plan to adopt the amendment. The implementation plan will include developing policies, procedures and internal controls over the model. The Company is also working with a software vendor to measure expected losses required by the amendment. The Company is currently evaluating the effects that the adoption of this amendment will have on its consolidated financial statements and expects that the portfolio composition and economic conditions at the time of adoption will influence the accounting adjustment made at the time the amendment is adopted. ā 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 adopted this amendment as of January 1, 2020 and it did not have a material effect on its consolidated financial statements. ā In August 2018, the FASB amended the Compensation ā 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. ā See Note (6), āLoans Receivable and Allowance for Loan Lossesā in our Notes to Consolidated Financial Statements for a change in the treatment of troubled debt restructuring in the CARES Act. ā |
Cash and Cash Equivalents
Cash and Cash Equivalents | 9 Months Ended |
Sep. 30, 2020 | |
Cash and Cash Equivalents | |
Cash and Cash Equivalents | (4) Cash and Cash Equivalents ā The table below presents the balances of cash and cash equivalents: ā ā ā ā ā ā ā ā ā September 30, December 31, (Dollars in thousands) 2020 2019 Cash and due from banks ā $ 10,873 ā $ 9,571 ā Interest-earning deposits in other banks ā 226,625 ā 35,235 ā Cash and cash equivalents ā $ 237,498 ā $ 44,806 ā ā Interest-earning deposits in other banks consist primarily of deposits at the Federal Reserve Bank of San Francisco. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investment Securities. | |
Investment Securities | (5) Investment Securities ā The amortized cost and fair values of investment securities are as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Amortized ā Gross Unrealized ā Estimated (Dollars in thousands) Cost Gains Losses Fair Value September 30, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā Available-for-sale: ā ā ā ā ā ā ā ā ā ā ā ā ā U.S. government-sponsored mortgage-backed securities ā $ 3,534 ā $ 425 $ ā ā $ 3,959 ā Total ā $ 3,534 ā $ 425 $ ā ā $ 3,959 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Held-to-maturity: ā ā ā ā ā ā ā ā ā ā ā ā ā U.S. government-sponsored mortgage-backed securities ā $ 292,528 ā $ 16,945 $ (2) ā $ 309,471 ā Total ā $ 292,528 ā $ 16,945 $ (2) ā $ 309,471 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā Available-for-sale: ā ā ā ā ā ā ā ā ā ā ā ā ā U.S. government-sponsored mortgage-backed securities ā $ 7,905 ā $ 723 $ ā ā $ 8,628 ā Total ā $ 7,905 ā $ 723 $ ā ā $ 8,628 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Held-to-maturity: ā ā ā ā ā ā ā ā ā ā ā ā ā U.S. government-sponsored mortgage-backed securities ā $ 363,883 ā $ 8,436 $ (1,014) ā $ 371,305 ā Total ā $ 363,883 ā $ 8,436 $ (1,014) ā $ 371,305 ā ā The amortized cost and estimated fair value of investment securities by maturity date at September 30, 2020 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. ā ā ā ā ā ā ā ā ā Amortized Estimated (Dollars in thousands) Cost Fair Value Available-for-sale: ā ā ā ā ā ā ā Due within 5 years ā $ ā ā $ ā ā Due after 5 years through 10 years ā ā ā ā ā Due after 10 years ā 3,534 ā 3,959 ā Total ā $ 3,534 ā $ 3,959 ā ā ā ā ā ā ā ā ā Held-to-maturity: ā ā ā ā ā ā ā Due within 5 years ā $ ā ā $ ā ā Due after 5 years through 10 years ā 62 ā 61 ā Due after 10 years ā 292,466 ā 309,410 ā Total ā $ 292,528 ā $ 309,471 ā ā ā ā ā ā ā ā ā ā Realized gains and losses and the proceeds from sales of held-to-maturity and available-for-sale securities are shown in the table below. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended ā Nine Months Ended ā ā ā September 30, ā September 30, ā (Dollars in thousands) 2020 2019 2020 2019 Proceeds from sales ā $ 5,737 ā $ 4,308 ā $ 14,097 ā $ 8,644 ā Gross gains ā 261 ā 123 ā 858 ā 2,910 ā Gross losses ā ā ā ā ā ā ā ā ā ā During the nine months ended September 30, 2020, the Company sold $9.9 million of held-to-maturity mortgage-backed securities and recorded a gain of $568,000 . During the nine months ended September 30, 2019, the Company sold its . The sale of the trust preferred security, which had a significant deterioration in the issuerās 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 ā During the nine months ended September 30, 2020, the Company sold $3.4 million of available-for-sale mortgage-backed securities and recorded a gain of $290,000 . During the nine months ended September 30, 2019, the Company sold ā 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. ā Investment securities with amortized costs of $217.5 million and $188.9 million at September 30, 2020 and December 31, 2019, respectively, were pledged to secure deposits made by state and local governments, securities sold under agreements to repurchase and transaction clearing accounts. ā Provided below is a summary of investment securities that were in an unrealized loss position at September 30, 2020 and December 31, 2019. 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. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 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) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Held-to-maturity: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā U.S. government-sponsored mortgage-backed securities ā $ 958 ā $ (1) ā $ 4 ā $ (1) 6 ā $ 962 ā $ (2) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Held-to-maturity: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā U.S. government-sponsored mortgage-backed securities ā $ 55,882 ā $ (302) ā $ 34,492 ā $ (712) 30 ā $ 90,374 ā $ (1,014) ā ā Mortgage-Backed Securities. The unrealized losses on the Companyās 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 September 30, 2020 and December 31, 2019. ā During the nine months ended September 30, 2020, the Company securitized fixed-rate first mortgage loans with a book value of $9.4 million into Freddie Mac mortgage-backed securities to increase liquidity. The securitization transaction increased investment securities and lowered loans receivable. The securitization transaction was accounted for by recording the mortgage-backed securities at a fair value of million in accordance with the Transfers and Servicing topic of the FASB ASC. Mortgage servicing assets of |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2020 | |
Loans Receivable and Allowance for Loan Losses | |
Loans Receivable and Allowance for Loan Losses | (6) Loans Receivable and Allowance for Loan Losses ā The components of loans receivable are as follows: ā ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā (Dollars in thousands) 2020 2019 Real estate loans: ā ā ā ā ā ā ā First mortgages: ā ā ā ā ā ā ā One- to four-family residential ā $ 1,436,900 ā $ 1,536,781 ā Multi-family residential ā 8,897 ā 9,965 ā Construction, commercial and other ā 22,250 ā 23,382 ā Home equity loans and lines of credit ā 9,704 ā 10,084 ā Total real estate loans ā 1,477,751 ā 1,580,212 ā Other loans: ā ā ā ā ā ā ā Loans on deposit accounts ā 272 ā 235 ā Consumer and other loans ā 11,475 ā 9,484 ā Total other loans ā 11,747 ā 9,719 ā Less: ā ā ā ā ā ā ā Net unearned fees and discounts ā (1,917) ā (2,435) ā Allowance for loan losses ā (4,942) ā (2,712) ā Total unearned fees, discounts and allowance for loan losses ā (6,859) ā (5,147) ā Loans receivable, net ā $ 1,482,639 ā $ 1,584,784 ā ā The table below presents the activity in the allowance for loan losses by portfolio segment: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 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 September 30, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance, beginning of period ā $ 3,020 ā $ 459 ā $ 1 ā $ 197 ā $ 579 ā $ 4,256 ā Provision (reversal of provision) for loan losses ā 988 ā (2) ā ā ā (21) ā (273) ā 692 ā ā ā 4,008 ā 457 ā 1 ā 176 ā 306 ā 4,948 ā Charge-offs ā ā ā ā ā ā ā (6) ā ā ā (6) ā Recoveries ā ā ā ā ā ā ā ā ā ā ā ā ā Net charge-offs ā ā ā ā ā ā ā (6) ā ā ā (6) ā Balance, end of period ā $ 4,008 ā $ 457 ā $ 1 ā $ 170 ā $ 306 ā $ 4,942 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Nine months ended September 30, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance, beginning of period ā $ 1,741 ā $ 511 ā $ 1 ā $ 54 ā $ 405 ā $ 2,712 ā Provision (reversal of provision) for loan losses ā 2,267 ā (54) ā (10) ā 200 ā (99) ā 2,304 ā ā ā 4,008 ā 457 ā (9) ā 254 ā 306 ā 5,016 ā Charge-offs ā ā ā ā ā ā ā (86) ā ā ā (86) ā Recoveries ā ā ā ā ā 10 ā 2 ā ā ā 12 ā Net recoveries (charge-offs) ā ā ā ā ā 10 ā (84) ā ā ā (74) ā Balance, end of period ā $ 4,008 ā $ 457 ā $ 1 ā $ 170 ā $ 306 ā $ 4,942 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 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 September 30, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance, beginning of period ā $ 1,769 ā $ 411 ā $ 1 ā $ 44 ā $ 391 ā $ 2,616 ā (Reversal of provision) provision for loan losses ā (11) ā 90 ā ā ā 15 ā 17 ā 111 ā ā ā 1,758 ā 501 ā 1 ā 59 ā 408 ā 2,727 ā Charge-offs ā ā ā ā ā ā ā (5) ā ā ā (5) ā Recoveries ā ā ā ā ā ā ā 2 ā ā ā 2 ā Net charge-offs ā ā ā ā ā ā ā (3) ā ā ā (3) ā Balance, end of period ā $ 1,758 ā $ 501 ā $ 1 ā $ 56 ā $ 408 ā $ 2,724 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Nine months ended September 30, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance, beginning of period ā $ 1,797 ā $ 443 ā $ 1 ā $ 47 ā $ 354 ā $ 2,642 ā (Reversal of provision) provision for loan losses ā (57) ā 58 ā ā ā 10 ā 54 ā 65 ā ā ā 1,740 ā 501 ā 1 ā 57 ā 408 ā 2,707 ā Charge-offs ā ā ā ā ā ā ā (21) ā ā ā (21) ā Recoveries ā 18 ā ā ā ā ā 20 ā ā ā 38 ā Net recoveries (charge-offs) ā 18 ā ā ā ā ā (1) ā ā ā 17 ā Balance, end of period ā $ 1,758 ā $ 501 ā $ 1 ā $ 56 ā $ 408 ā $ 2,724 ā ā Management considers the allowance for loan losses at September 30, 2020 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 loan loss provision for the nine months ended September 30, 2020 was $2.3 million compared to $65,000 for the nine months ended September 30, 2019. The increase in the loan loss provision occurred primarily from an increase in the qualitative factors used to calculate the allowance for loan losses. The qualitative factors increased because Hawaiiās unemployment rate increased due to layoffs that resulted from government mandates to minimize the spread of COVID-19. ā 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: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals September 30, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Allowance for loan losses: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Ending allowance balance: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Individually evaluated for impairment ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā Collectively evaluated for impairment ā 4,008 ā 457 ā 1 ā 170 ā 306 ā 4,942 ā Total ending allowance balance ā $ 4,008 ā $ 457 ā $ 1 ā $ 170 ā $ 306 ā $ 4,942 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Loans: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Ending loan balance: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Individually evaluated for impairment ā $ 2,732 ā $ ā ā $ 23 ā $ ā ā $ ā ā $ 2,755 ā Collectively evaluated for impairment ā 1,441,193 ā 22,191 ā 9,682 ā 11,760 ā ā ā 1,484,826 ā Total ending loan balance ā $ 1,443,925 ā $ 22,191 ā $ 9,705 ā $ 11,760 ā $ ā ā $ 1,487,581 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Allowance for loan losses: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Ending allowance balance: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Individually evaluated for impairment ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā Collectively evaluated for impairment ā 1,741 ā 511 ā 1 ā 54 ā 405 ā 2,712 ā Total ending allowance balance ā $ 1,741 ā $ 511 ā $ 1 ā $ 54 ā $ 405 ā $ 2,712 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Loans: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Ending loan balance: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Individually evaluated for impairment ā $ 1,224 ā $ ā ā $ 89 ā $ ā ā $ ā ā $ 1,313 ā Collectively evaluated for impairment ā 1,543,125 ā 23,326 ā 9,997 ā 9,735 ā ā ā 1,586,183 ā Total ending loan balance ā $ 1,544,349 ā $ 23,326 ā $ 10,086 ā $ 9,735 ā $ ā ā $ 1,587,496 ā ā The table below presents the balance of impaired loans individually evaluated for impairment by class of loans: ā ā ā ā ā ā ā ā ā Unpaid Recorded Principal (Dollars in thousands) Investment Balance September 30, 2020: ā ā ā ā ā ā ā With no related allowance recorded: ā ā ā ā ā ā ā One- to four-family residential mortgages ā $ 2,732 ā $ 3,164 ā Home equity loans and lines of credit ā 23 ā 32 ā Total ā $ 2,755 ā $ 3,196 ā ā ā ā ā ā ā ā ā December 31, 2019: ā ā ā ā ā ā ā With no related allowance recorded: ā ā ā ā ā ā ā One- to four-family residential mortgages ā $ 1,224 ā $ 1,615 ā Home equity loans and lines of credit ā ā 89 ā ā 178 ā Total ā $ 1,313 ā $ 1,793 ā ā The table below presents the average recorded investment and interest income recognized on impaired loans by class of loans: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the Three Months Ended For the Nine Months Ended September 30, September 30, Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized 2020: ā ā ā ā ā ā ā ā With no related allowance recorded: ā ā ā ā ā ā ā ā ā ā ā ā ā One- to four-family residential mortgages ā $ 2,745 ā $ 8 ā $ 2,770 ā $ 25 ā Home equity loans and lines of credit ā 24 ā ā ā 25 ā ā ā Total ā $ 2,769 ā $ 8 ā $ 2,795 ā $ 25 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā With no related allowance recorded: ā ā ā ā ā ā ā ā ā ā ā ā ā One- to four-family residential mortgages ā $ 1,364 ā $ 8 ā $ 1,391 ā $ 25 ā Home equity loans and lines of credit ā ā 96 ā ā ā 100 ā ā ā Total ā $ 1,460 ā $ 8 ā $ 1,491 ā $ 25 ā ā ā There were no loans individually evaluated for impairment with a related allowance for loan loss as of September 30, 2020 or December 31, 2019. Loans individually evaluated for impairment do not have an allocated allowance for loan loss because they are written down to fair value at the time of impairment. ā The Company had eight nonaccrual loans with a book value of $2.2 million as of September 30, 2020 and six nonaccrual loans with a book value of $736,000 as of December 31, 2019. The Company collected interest on nonaccrual loans of during the nine months ended September 30, 2020 and 2019, respectively, but due to accounting and regulatory requirements, the Company recorded the interest as a reduction of principal. The Company would have recognized additional interest income of during the nine months ended September 30, 2020 and 2019, respectively, had the loans been accruing interest. The Company did not have any 90 days or more past due and still accruing interest as of September 30, 2020. At December 31, 2019, the Company had ā The table below presents the aging of loans and accrual status by class of loans, net of unearned fees and discounts: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 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 September 30, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā One- to four-family residential mortgages ā $ ā ā $ 140 ā $ 122 ā $ 262 ā $ 1,434,781 ā $ 1,435,043 ā $ 2,163 ā $ ā ā Multi-family residential mortgages ā ā ā ā ā ā ā ā ā 8,882 ā 8,882 ā ā ā ā ā Construction, commercial and other mortgages ā ā ā ā ā ā ā ā ā 22,191 ā 22,191 ā ā ā ā ā Home equity loans and lines of credit ā ā ā 23 ā ā ā 23 ā 9,682 ā 9,705 ā 23 ā ā ā Loans on deposit accounts ā ā ā ā ā ā ā ā ā 272 ā 272 ā ā ā ā ā Consumer and other ā 6 ā ā ā ā ā 6 ā 11,482 ā 11,488 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total ā $ 6 ā $ 163 ā $ 122 ā $ 291 ā $ 1,487,290 ā $ 1,487,581 ā $ 2,186 ā $ ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā One- to four-family residential mortgages ā $ ā ā $ 959 ā $ ā ā $ 959 ā $ 1,533,446 ā $ 1,534,405 ā $ 647 ā $ ā ā Multi-family residential mortgages ā ā ā ā ā ā ā ā ā 9,944 ā 9,944 ā ā ā ā ā Construction, commercial and other mortgages ā ā ā ā ā ā ā ā ā 23,326 ā 23,326 ā ā ā ā ā Home equity loans and lines of credit ā ā ā 26 ā ā ā 26 ā 10,060 ā 10,086 ā 89 ā ā ā Loans on deposit accounts ā ā ā ā ā ā ā ā ā 235 ā 235 ā ā ā ā ā Consumer and other ā 33 ā 1 ā 1 ā 35 ā 9,465 ā 9,500 ā ā ā 1 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total ā $ 33 ā $ 986 ā $ 1 ā $ 1,020 ā $ 1,586,476 ā $ 1,587,496 ā $ 736 ā $ 1 ā ā ā 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. ā There were no loans modified in a troubled debt restructuring during the nine months ended September 30, 2020 or 2019. There were new troubled debt restructurings within the 12 months ended September 30, 2020 or 2019 that subsequently defaulted. ā The table below summarizes troubled debt restructurings by class of loans: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Number of Accrual Number of Nonaccrual ā (Dollars in thousands) Loans Status Loans Status Total September 30, 2020: ā ā ā ā ā ā ā ā ā ā One- to four-family residential mortgages ā 3 ā $ 568 ā ā 2 ā $ 481 ā $ 1,049 Total ā 3 ā $ 568 ā ā 2 ā $ 481 ā $ 1,049 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā One- to four-family residential mortgages ā 3 ā $ 577 ā ā 2 ā $ 525 ā $ 1,102 Home equity loans and lines of credit ā ā ā ā ā 1 ā 64 ā 64 Total ā 3 ā $ 577 ā ā 3 ā $ 589 ā $ 1,166 ā There were no delinquent troubled debt restructurings as of September 30, 2020 or December 31, 2019. 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 September 30, 2020, we had ā The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by Congress and signed into law by the President on March 27, 2020. The CARES Act provides relief to financial institutions from categorizing eligible loan modifications as troubled debt restructurings over the remaining life of the modified loan. In addition, Interagency Statements were issued on March 22, 2020 and April 7, 2020 by bank regulatory agencies to encourage financial institutions to work prudently with borrowers who may be unable to meet their contractual payment obligations because of the effects of COVID-19. ā The Company has granted loan deferrals to borrowers who have been affected by COVID-19. As of September 30, 2020, the Company granted loan deferrals on $146.2 million of loans, which represent 9.9% of total loans receivable. $140.9 million of these loan deferrals consist of one- to four-family residential mortgage loans, which represent 9.5% of the total loans receivable. The Company believes these loans are currently well secured as the ratio of the current loan balance to the current tax-assessed value of the property securing these mortgage loans averages 54.9%. One- to four-family residential mortgage loans represent 96.9% of the Companyās total loan portfolio balance. All of our residential mortgage loans are secured by real estate in Hawaii. The Company believes that the total one- to four-family residential mortgage loans are also well-secured as the ratio of the current loan balance to the current tax-assessed value of the property securing these loans averages 45.5%. The Company has also granted loan deferrals of $5.3 million on other non-residential mortgage loans, which represent 0.4% of the total balance of loans receivable. The loans on which the Company has granted loan deferrals are included in the ALLL calculation. Loans performing under a loan deferral agreement are not contractually past due and are excluded from the past due statistics above. ā The Company had no real estate owned as of September 30, 2020 or December 31, 2019. There were ā Nearly all of 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 ā During the nine months ended September 30, 2020 and 2019, the Company sold mortgage loans held for sale with principal balances of $22.3 million and $3.6 million, respectively, and recognized gains of $610,000 and $18,000 , respectively. The Company had ā During the nine months ended September 30, 2020, the Company securitized fixed-rate first mortgage loans with a book value of $9.4 million and received mortgage-backed securities with a fair market value of $9.8 million. The Company retained the servicing of these loans and recorded mortgage servicing assets with a fair market value of ā The Company serviced loans for others with principal balances of $62.7 million at September 30, 2020 and $65.1 million at December 31, 2019. Of these amounts, million of loan balances relate to securitizations for which the Company continues to hold the related mortgage-backed securities at September 30, 2020 and December 31, 2019, respectively. The amount of contractually specified servicing fees earned for the nine months ended September 30, 2020 and 2019 was , respectively. The amount of contractually specified servicing fees earned for the three months ended September 30, 2020 and 2019 was , 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 | 9 Months Ended |
Sep. 30, 2020 | |
Securities Sold Under Agreements to Repurchase | |
Securities Sold Under Agreements to Repurchase | (7) Securities Sold Under Agreements to Repurchase ā 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: ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, 2020 December 31, 2019 ā Weighted Weighted ā Repurchase Average Repurchase Average ā (Dollars in thousands) Liability Rate Liability Rate ā Maturing: ā ā ā ā ā ā ā ā ā ā ā ā 1 year or less ā $ ā ā % $ 5,000 1.65 % ā Over 4 year to 5 years ā 10,000 1.81 ā 5,000 1.88 ā ā Total ā $ 10,000 1.81 % $ 10,000 1.77 % ā ā 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 September 30, 2020. 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 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. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted Carrying Fair Average Value of Value of Repurchase Amount Months to (Dollars in thousands) Securities Securities Liability at Risk Maturity Maturing: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Over 90 days ā $ 10,001 ā $ 10,994 ā $ 10,000 ā $ 994 51 ā ā |
Offsetting of Financial Liabili
Offsetting of Financial Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Offsetting of Financial Liabilities | |
Offsetting of Financial Liabilities | (8) Offsetting of Financial Liabilities ā 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. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 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 ā Pledged Net Amount September 30, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Securities sold under agreements to repurchase ā $ 10,000 ā $ ā ā $ 10,000 ā $ 10,000 ā $ ā ā $ ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Securities sold under agreements to repurchase ā $ 10,000 ā $ ā ā $ 10,000 ā $ 10,000 ā $ ā ā $ ā ā |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2020 | |
Employee Benefit Plans | |
Employee Benefit Plans | (9) Employee Benefit Plans ā 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. ā 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. ā The components of net periodic benefit cost were as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā SERP SERP Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands) 2020 2019 2020 2019 Net periodic benefit cost for the period: ā ā ā ā ā ā ā ā ā ā ā ā ā Service cost ā $ 22 ā $ 26 ā $ 66 ā $ 77 ā Interest cost ā 43 ā 41 ā 130 ā 122 ā Expected return on plan assets ā ā ā ā ā ā ā ā ā Amortization of prior service cost ā ā ā ā ā ā ā ā ā Recognized actuarial loss ā ā ā ā ā ā ā ā ā Recognized curtailment loss ā ā ā ā ā ā ā ā ā Net periodic benefit cost ā $ 65 ā $ 67 ā $ 196 ā $ 199 ā ā 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 | 9 Months Ended |
Sep. 30, 2020 | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan | (10) Employee Stock Ownership Plan ā Effective January 1, 2009, Territorial Savings Bank adopted an Employee Stock Ownership Plan (ESOP) for eligible employees. The ESOP borrowed , of the total number of shares issued by the Company in its initial public offering. The shares were acquired at a price of ā 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 Bankās 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. ā 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 participantās 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 stockholdersā equity. The shares committed to be released are considered outstanding for earnings per share computations. Compensation expense recognized for the three months ended September 30, 2020 and 2019 amounted to , respectively. Compensation expense recognized for the nine months ended September 30, 2020 and 2019 amounted to ā Shares held by the ESOP trust were as follows: ā ā ā ā ā ā ā ā ā September 30, December 31, 2020 2019 Allocated shares ā 495,070 ā 466,807 ā Unearned shares ā 403,698 ā 440,397 ā Total ESOP shares ā 898,768 ā 907,204 ā Fair value of unearned shares, in thousands ā $ 8,167 ā $ 13,626 ā ā 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 ESOPās 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 September 30, 2020 and 2019, we accrued , respectively, for the ESOP restoration plan. For the nine months ended September 30, 2020 and 2019, we accrued |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
2010 Equity Incentive Plan | |
Share-Based Compensation | |
Share-Based Compensation | (11) Share-Based Compensation ā 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 ā 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 Companyās 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. ā 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 stockholdersā equity. The table below presents information on compensation expense and the related tax benefit for all share-based awards: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2020 2019 2020 2019 Compensation expense ā $ 157 ā $ 123 ā $ 523 ā $ 494 ā Income tax benefit ā 43 ā 33 ā 143 ā 135 ā ā 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 ā Stock Options ā The table below presents the stock option activity for the nine months ended September 30, 2020 and 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted ā Aggregate ā ā ā ā Average ā Remaining ā Intrinsic ā ā ā ā Exercise ā Contractual ā Value ā ā Options ā Price ā Life (years) ā (in thousands) Options outstanding at December 31, 2019 116,409 ā $ 17.53 0.72 ā $ 1,562 ā Granted ā ā ā ā ā ā ā Exercised 81,827 ā 17.36 ā ā 725 ā Forfeited ā ā ā ā ā ā ā Expired 31,497 ā ā ā ā ā ā Options outstanding at September 30, 2020 ā 3,085 ā $ 23.62 1.92 ā $ (11) ā ā ā ā ā ā ā ā ā ā ā ā ā Options outstanding at December 31, 2018 337,654 ā $ 17.51 1.74 ā $ 2,859 ā Granted ā ā ā ā ā ā ā Exercised 203,370 ā 17.36 ā ā 2,282 ā Forfeited ā ā ā ā ā ā ā Expired ā ā ā ā ā ā ā Options outstanding at September 30, 2019 134,284 ā $ 17.74 1.10 ā $ 1,455 ā ā ā ā ā ā ā ā ā ā ā ā ā Options vested and exercisable at September 30, 2020 3,085 ā $ 23.62 1.92 ā $ (11) ā ā The following summarizes certain stock option activity of the Company: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the Three Months Ended For the Nine Months Ended September 30, September 30, (In thousands) 2020 2019 2020 2019 Intrinsic value of stock options exercised ā $ ā ā $ 251 ā $ 725 ā $ 2,282 ā Proceeds received from stock options exercised ā ā ā 368 ā 1,421 ā 3,531 ā Tax benefits realized from stock options exercised ā ā ā 60 ā 158 ā 484 ā Total fair value of stock options that vested ā ā ā ā ā ā ā ā ā ā During the nine months ended September 30, 2020, we issued 27,194 shares of common stock, net, in exchange for 81,827 stock options and 54,633 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. ā As of September 30, 2020, the Company had no unrecognized compensation costs related to the stock option plan. ā Restricted Stock ā Restricted stock awards are accounted for as fixed grants using the fair value of the Companyās 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. Unvested restricted stock that is time-based contain nonforfeitable dividend rights. Accrued dividends on restricted stock that do not vest based on performance or market conditions are forfeited. ā The table below presents the restricted stock activity: ā ā ā ā ā ā ā ā Weighted Average Grant Restricted Date Fair Stock Value Unvested at December 31, 2019 20,249 ā $ 28.78 ā Granted 13,444 ā 21.05 ā Vested 9,998 ā 29.16 ā Forfeited ā ā ā ā Unvested at September 30, 2020 23,695 ā $ 24.24 ā ā ā ā ā ā ā ā Unvested at December 31, 2018 16,424 ā $ 30.26 ā Granted 10,366 ā 27.30 ā Vested 6,541 ā 30.14 ā Forfeited ā ā ā ā Unvested at September 30, 2019 20,249 ā $ 28.78 ā ā During the nine months ended September 30, 2020, the Company issued 13,444 shares of restricted stock to certain members of executive management under the 2019 Equity Incentive Plan. The fair value of the restricted stock is based on the value of the Companyās stock on the date of grant. Restricted stock will vest over three years from the date of grant. ā As of September 30, 2020, the Company had $410,000 of unrecognized compensation costs related to restricted stock. ā During the nine months ended September 30, 2020, the Company issued 16,129 performance-based restricted stock units (PRSUs) to certain members of executive management under the 2019 Equity Incentive Plan. These PRSUs will vest in the first quarter of 2023 after our Compensation Committee determines whether a performance condition that compares the Companyās return on average equity to the SNL Bank Index is achieved. Depending on the Companyās performance, the actual number of these PRSUs that are issued at the end of the vesting period can vary between 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. ā The table below presents the PRSUs that will vest on a performance condition: ā ā ā ā ā ā ā Performance- ā ā ā ā Based Restricted ā ā ā Stock Units Weighted ā ā Based on a ā Average Grant ā ā Performance ā Date Fair Condition Value Unvested at December 31, 2019 35,976 ā $ 29.16 Granted 16,129 ā 21.05 Vested 7,680 ā 29.53 Forfeited 3,840 ā 29.53 Unvested at September 30, 2020 40,585 ā $ 25.83 ā ā ā ā ā ā Unvested at December 31, 2018 23,538 ā $ 30.14 Granted 12,438 ā 27.30 Vested ā ā ā Forfeited ā ā ā Unvested at September 30, 2019 35,976 ā $ 29.16 ā The fair value of these PRSUs is based on the fair value of the Companyās stock on the date of grant. As of September 30, 2020, the Company had $428,000 of unrecognized compensation costs related to these PRSUs. Performance will be measured over a three-year performance period and will be cliff vested. ā During the nine months ended September 30, 2020, the Company issued 4,032 of PRSUs to certain members of executive management under the 2019 Equity Incentive Plan. These PRSUs will vest in the first quarter of 2023 after our Compensation Committee determines whether a market condition that compares the Companyās 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 Companyās stock on the date of grant. The assumptions which were used in the Monte Carlo valuation of the PRSUs are: ā Grant date: March 12, 2020 Performance period: January 1, 2020 to December 31, 2022 2.80 year risk-free rate on grant date: 0.56% December 31, 2019 closing price: $30.94 Closing stock price on the date of grant: $21.05 Annualized volatility (based on 2.82 year historical volatility as of the grant date): 18.02% ā The table below presents the PRSUs that will vest on a market condition: ā ā ā ā ā ā ā ā ā Performance- ā ā ā ā ā Based Restricted ā Monte Carlo ā ā Stock Units ā Valuation of ā ā Based on a ā the Company's Market Condition Stock Unvested at December 31, 2019 8,994 ā $ 25.74 Granted 4,032 ā 22.16 Vested 1,197 ā 24.44 Forfeited 1,682 ā 24.44 Unvested at September 30, 2020 10,147 ā $ 24.69 ā ā ā ā ā ā Unvested at December 31, 2018 5,884 ā $ 26.42 Granted 3,110 ā 24.45 Vested ā ā ā Forfeited ā ā ā Unvested at September 30, 2019 8,994 ā $ 25.74 ā As of September 30, 2020, the Company had $90,000 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 | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share | |
Earnings Per Share | (12) Earnings Per Share ā Holders of unvested restricted stock accrue dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Unvested restricted stock awards that are time-based contain nonforfeitable rights to dividends or dividend equivalents and 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. Unvested restricted stock awards that vest based on performance or market conditions are not considered to be participating securities in the earnings per share calculation because accrued dividends on shares that do not vest are forfeited. ā The table below presents the information used to compute basic and diluted earnings per share: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands, except per share data) 2020 2019 2020 2019 Net income ā $ 4,318 ā $ 5,366 ā $ 13,082 ā $ 16,950 ā Income allocated to participating securities ā ā (23) ā ā (38) ā ā (47) ā ā (112) ā Net income available to common shareholders ā $ 4,295 ā $ 5,328 ā $ 13,035 ā $ 16,838 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted-average number of shares used in: ā ā ā ā ā ā ā ā ā ā ā ā ā Basic earnings per share ā 9,104,079 ā 9,212,119 ā 9,144,463 ā 9,184,741 ā Dilutive common stock equivalents: ā ā ā ā ā ā ā ā ā ā ā ā ā Stock options and restricted stock units ā 30,010 ā 83,610 ā 57,419 ā 124,679 ā Diluted earnings per share ā 9,134,089 ā 9,295,729 ā 9,201,882 ā 9,309,420 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Net income per common share, basic ā $ 0.47 ā $ 0.58 ā $ 1.43 ā $ 1.83 ā Net income per common share, diluted ā $ 0.47 ā $ 0.57 ā $ 1.42 ā $ 1.81 ā ā |
Other Comprehensive Income and
Other Comprehensive Income and Loss | 9 Months Ended |
Sep. 30, 2020 | |
Other Comprehensive Income and Loss | |
Other Comprehensive Income and Loss | (13) Other Comprehensive Income and Loss ā The table below presents the changes in the components of accumulated other comprehensive income and loss, net of taxes: ā ā ā ā ā ā ā ā ā ā ā ā Unfunded Unrealized Pension (Gain)/Loss on (Dollars in thousands) Liability Securities Total Three months ended September 30, 2020 ā ā ā ā ā ā ā ā ā ā Balances at beginning of period ā $ 8,178 ā $ (315) ā $ 7,863 ā Other comprehensive loss, net of taxes ā ā ā ā 4 ā 4 ā Amounts reclassified from other comprehensive income, net of taxes ā ā ā ā ā ā ā Net current period other comprehensive loss ā ā ā 4 ā 4 ā Balances at end of period ā $ 8,178 ā $ (311) ā $ 7,867 ā ā ā ā ā ā ā ā ā ā ā ā Three months ended September 30, 2019 ā ā ā ā ā ā ā ā ā ā Balances at beginning of period ā $ 7,721 ā $ (521) ā $ 7,200 ā Other comprehensive income, net of taxes ā ā ā (70) ā (70) ā Amounts reclassified from other comprehensive income, net of taxes ā ā ā 91 ā 91 ā Net current period other comprehensive loss ā ā ā 21 ā 21 ā Balances at end of period ā $ 7,721 ā $ (500) ā $ 7,221 ā ā ā ā ā ā ā ā ā ā ā ā Nine months ended September 30, 2020 ā ā ā ā ā ā ā ā ā ā Balances at beginning of period ā $ 8,178 ā $ (510) ā $ 7,668 ā Other comprehensive income, net of taxes ā ā ā (22) ā (22) ā Amounts reclassified from other comprehensive income, net of taxes ā ā ā 221 ā 221 ā Net current period other comprehensive loss ā ā ā 199 ā 199 ā Balances at end of period ā $ 8,178 ā $ (311) ā $ 7,867 ā ā ā ā ā ā ā ā ā ā ā ā Nine months ended September 30, 2019 ā ā ā ā ā ā ā ā ā ā Balances at beginning of period ā $ 7,721 ā $ 88 ā $ 7,809 ā Other comprehensive income, net of taxes ā ā ā (711) ā (711) ā Amounts reclassified from other comprehensive income, net of taxes ā ā ā 123 ā 123 ā Net current period other comprehensive income ā ā ā (588) ā (588) ā Balances at end of period ā $ 7,721 ā $ (500) ā $ 7,221 ā ā The table below presents the tax effect on each component of accumulated other comprehensive income and loss: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, 2020 2019 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized loss (gain) on securities ā $ 5 ā $ (1) ā $ 4 ā $ (95) ā $ 25 ā $ (70) ā Amount reclassified from other comprehensive income ā ā ā ā ā ā ā ā ā ā ā 123 ā ā (32) ā ā 91 ā Total ā $ 5 ā $ (1) ā $ 4 ā $ 28 ā $ (7) ā $ 21 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Nine Months Ended September 30, ā 2020 2019 ā Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized gain on securities ā $ (30) ā $ 8 ā $ (22) ā $ (969) ā $ 258 ā $ (711) ā Amount reclassified from other comprehensive income ā ā 301 ā ā (80) ā ā 221 ā ā 167 ā ā (44) ā ā 123 ā Total ā $ 271 ā $ (72) ā $ 199 ā $ (802) ā $ 214 ā $ (588) ā ā |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
Revenue Recognition | |
Revenue Recognition | (14) Revenue Recognition ā The Companyās 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 cashierās 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. ā After analyzing the Companyās 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 Companyās consolidated financial statements. Accordingly, the Company generally records income when payment for services is received. ā 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: ā ā ā ā ā ā ā ā ā ā ā Service Fees on ā ā ā ā Loan and Deposit ā ā ā ā (Dollars in thousands) Accounts Other Total Three months ended September 30, 2020 ā ā ā ā ā ā ā ā ā Revenue from contracts with customers ā $ 275 ā $ 35 ā $ 310 Other revenue ā ā 453 ā ā 28 ā ā 481 Total ā $ 728 ā $ 63 ā $ 791 ā ā ā ā ā ā ā ā ā ā Three months ended September 30, 2019 ā ā ā ā ā ā ā ā ā Revenue from contracts with customers ā $ 347 ā $ 37 ā $ 384 Other revenue ā ā 157 ā ā 18 ā ā 175 Total ā $ 504 ā $ 55 ā $ 559 ā ā ā ā ā ā ā ā ā ā Nine months ended September 30, 2020 ā ā ā ā ā ā ā ā ā Revenue from contracts with customers ā $ 918 ā $ 88 ā $ 1,006 Other revenue ā ā 798 ā ā 83 ā ā 881 Total ā $ 1,716 ā $ 171 ā $ 1,887 ā ā ā ā ā ā ā ā ā ā Nine months ended September 30, 2019 ā ā ā ā ā ā ā ā ā Revenue from contracts with customers ā $ 1,047 ā $ 137 ā $ 1,184 Other revenue ā ā 380 ā ā 498 ā ā 878 Total ā $ 1,427 ā $ 635 ā $ 2,062 ā |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases | |
Leases | ā (15) Leases ā The Company leases most of its premises and some vehicles and equipment under operating leases expiring on various dates through 2030. 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 Companyās 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. ā 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. ā 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 Bankās assets that are not otherwise pledged. ā The table below presents lease costs and other information for the periods indicated: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended Nine Months Ended ā September 30, September 30, (Dollars in thousands) 2020 2019 2020 2019 Lease Costs: ā ā ā ā ā ā ā ā ā ā ā ā ā Operating lease costs ā $ 878 ā $ 777 ā $ 2,509 ā $ 2,342 ā Short-term lease costs ā 5 ā 21 ā 17 ā 37 ā Variable lease costs ā 38 ā 40 ā 115 ā 93 ā Total lease costs ā $ 921 ā $ 838 ā $ 2,641 ā $ 2,472 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Cash paid for amounts included in measurement of lease liabilities ā $ 808 ā $ 721 ā $ 2,414 ā $ 2,266 ā ROU assets obtained in exchange for new operating lease liabilities ā $ 2,247 ā $ 246 ā $ 4,033 ā $ 13,254 ā ā At September 30, 2020, future minimum rental commitments under noncancellable operating leases are as follows: ā ā ā ā ā ā ā ā ā ā ā (Dollars in thousands) ā ā ā ā ā ā ā ā 2020 ā $ 820 ā ā ā ā ā ā 2021 ā 2,974 ā ā ā ā ā ā 2022 ā 2,690 ā ā ā ā ā ā 2023 ā 2,339 ā ā ā ā ā ā 2024 ā 2,060 ā ā ā ā ā ā Thereafter ā 4,294 ā ā ā ā ā ā Total ā ā 15,177 ā ā ā ā ā ā Less present value discount ā ā 1,047 ā ā ā ā ā ā Present value of leases ā $ 14,130 ā ā ā ā ā ā ā The table below presents other lease related information: ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, ā ā September 30, ā ā ā 2020 ā 2019 ā Weighted-average remaining lease term (years) ā 6.00 ā ā 6.23 ā ā Weighted-average discount rate ā ā 2.45 % ā ā 2.90 % ā ā |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value | |
Fair Value | (16) Fair Value ā In accordance with the Fair Value Measurements and Disclosures topic of the FASB ASC, the Company groups its assets and liabilities measured or disclosed at fair value into three levels based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value as follows: ā ā Level 1 ā 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. ā ā Level 2 ā 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. ā ā Level 3 ā Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect managementās 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. ā 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. ā 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 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. ā Investment Securities Available for Sale. ā 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. The fair value inputs are considered Level 2 inputs. 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. ā The estimated fair values of the Companyās financial instruments are as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Carrying ā ā ā ā Fair Value Measurements Using (Dollars in thousands) Amount Fair Value Level 1 Level 2 Level 3 September 30, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Assets ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Cash and cash equivalents ā $ 237,498 ā $ 237,498 ā $ 237,498 ā $ ā ā $ ā ā Investment securities available for sale ā ā 3,959 ā ā 3,959 ā ā ā ā ā 3,959 ā ā ā ā Investment securities held to maturity ā 292,528 ā ā 309,471 ā ā ā ā ā 309,471 ā ā ā ā Loans held for sale ā 834 ā ā 870 ā ā ā ā ā 870 ā ā ā ā Loans receivable, net ā 1,482,639 ā ā 1,562,422 ā ā ā ā ā ā ā ā 1,562,422 ā FHLB stock ā 8,144 ā ā 8,144 ā ā ā ā ā 8,144 ā ā ā ā FRB stock ā ā 3,145 ā ā 3,145 ā ā ā ā ā 3,145 ā ā ā ā Accrued interest receivable ā 7,214 ā ā 7,214 ā ā 19 ā ā 794 ā ā 6,401 ā Interest rate contracts ā 60 ā ā 60 ā ā ā ā ā 60 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Liabilities ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Deposits ā 1,662,706 ā ā 1,667,045 ā ā ā ā ā 1,285,438 ā ā 381,607 ā Advances from the Federal Home Loan Bank ā 141,000 ā ā 145,623 ā ā ā ā ā 145,623 ā ā ā ā Securities sold under agreements to repurchase ā 10,000 ā ā 10,484 ā ā ā ā ā 10,484 ā ā ā ā Accrued interest payable ā 99 ā ā 99 ā ā ā ā ā 48 ā ā 51 ā Interest rate contracts ā 60 ā ā 60 ā ā ā ā ā 60 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Assets ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Cash and cash equivalents ā $ 44,806 ā $ 44,806 ā $ 44,806 ā $ ā ā $ ā ā Investment securities available for sale ā ā 8,628 ā ā 8,628 ā ā ā ā ā 8,628 ā ā ā ā Investment securities held to maturity ā 363,883 ā ā 371,305 ā ā ā ā ā 371,305 ā ā ā ā Loans held for sale ā 470 ā ā 480 ā ā ā ā ā 480 ā ā ā ā Loans receivable, net ā 1,584,784 ā ā 1,627,903 ā ā ā ā ā ā ā ā 1,627,903 ā FHLB stock ā 8,723 ā ā 8,723 ā ā ā ā ā 8,723 ā ā ā ā FRB stock ā ā 3,128 ā ā 3,128 ā ā ā ā ā 3,128 ā ā ā ā Accrued interest receivable ā 5,409 ā ā 5,409 ā ā 32 ā ā 952 ā ā 4,425 ā Interest rate contracts ā 5 ā ā 5 ā ā ā ā ā 5 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Liabilities ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Deposits ā 1,631,933 ā ā 1,632,741 ā ā ā ā ā 1,167,990 ā ā 464,751 ā Advances from the Federal Home Loan Bank ā 156,000 ā ā 156,906 ā ā ā ā ā 156,906 ā ā ā ā Securities sold under agreements to repurchase ā 10,000 ā ā 9,968 ā ā ā ā ā 9,968 ā ā ā ā Accrued interest payable ā 397 ā ā 397 ā ā ā ā ā 47 ā ā 350 ā Interest rate contracts ā 5 ā ā 5 ā ā ā ā ā 5 ā ā ā ā ā At September 30, 2020 and December 31, 2019, 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. ā The table below presents the balance of assets and liabilities measured at fair value on a recurring basis: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (Dollars in thousands) Level 1 Level 2 Level 3 Total September 30, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā Interest rate contracts ā assets ā $ ā ā $ 60 ā $ ā ā $ 60 ā Interest rate contracts ā liabilities ā ā ā (60) ā ā ā (60) ā Investment securities available for sale ā ā ā ā ā 3,959 ā ā ā ā ā 3,959 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019 ā ā ā ā ā ā ā ā ā ā ā ā ā Interest rate contracts ā assets ā $ ā ā $ 5 ā $ ā ā $ 5 ā Interest rate contracts ā liabilities ā ā ā (5) ā ā ā (5) ā Investment securities available for sale ā ā ā 8,628 ā ā ā 8,628 ā ā The table below presents the balance of assets measured at fair value on a nonrecurring basis as of September 30, 2020 and December 31, 2019 and the related losses for the nine months ended September 30, 2020 and the year ended December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fair Value ā ā (Dollars in thousands) Adjustment Date ā Level 1 Level 2 Level 3 Total ā Total Losses ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Mortgage servicing assets ā 9/30/2020 ā $ ā ā $ ā ā $ 452 ā $ 452 ā $ (53) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Mortgage servicing assets ā 9/30/2019 ā ā ā ā ā ā ā ā 452 ā ā 452 ā ā (16) ā ā Mortgage servicing assets are valued using a discounted cash flow model. Assumptions used in the model include mortgage prepayment speeds, discount rates and cost of servicing. Losses on mortgage servicing assets are included in service fees on loan and deposit accounts in the consolidated statements of income. ā The table below presents the significant unobservable inputs for Level 3 nonrecurring fair value measurements. The discount rates and prepayment speeds have been weighted by the relative notional amounts. ā ā ā ā ā ā ā ā ā ā ā ā ā Unobservable Range (Dollars in thousands) Fair Value Valuation Technique Input (Weighted Average) September 30, 2020: ā ā ā ā ā ā ā ā ā ā ā Mortgage servicing assets ā $ 452 ā Discounted cash flow ā Discount rate ā ā 9.25% - 11.25% (10.25%) ā ā ā ā ā ā ā ā Prepayment speed (CPR) ā 9.36 - 18.16 (13.54) ā ā ā ā ā ā ā ā Annual cost to service (per loan, in dollars) ā $ 75 ā December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā Mortgage servicing assets ā $ 452 Discounted cash flow Discount rate ā ā 9.25% - 11.25% (10.25%) ā ā ā ā ā ā ā Prepayment speed (CPR) ā 11.09 - 14.24 (12.58) ā ā ā ā ā ā ā Annual cost to service (per loan, in dollars) ā $ 75 ā ā |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events | |
Subsequent Events | (17) Subsequent Events ā On October 29, 2020, the Board of Directors of Territorial Bancorp Inc. declared a quarterly cash dividend of $0.23 per share of common stock. The dividend is expected to be paid on November 25, 2020 to stockholders of record as of November 12, 2020. |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Cash and Cash Equivalents | |
Schedule of balances of cash and cash equivalents | ā ā ā ā ā ā ā ā ā September 30, December 31, (Dollars in thousands) 2020 2019 Cash and due from banks ā $ 10,873 ā $ 9,571 ā Interest-earning deposits in other banks ā 226,625 ā 35,235 ā Cash and cash equivalents ā $ 237,498 ā $ 44,806 ā |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investment Securities. | |
Schedule of amortized cost and fair values of investment securities | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Amortized ā Gross Unrealized ā Estimated (Dollars in thousands) Cost Gains Losses Fair Value September 30, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā Available-for-sale: ā ā ā ā ā ā ā ā ā ā ā ā ā U.S. government-sponsored mortgage-backed securities ā $ 3,534 ā $ 425 $ ā ā $ 3,959 ā Total ā $ 3,534 ā $ 425 $ ā ā $ 3,959 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Held-to-maturity: ā ā ā ā ā ā ā ā ā ā ā ā ā U.S. government-sponsored mortgage-backed securities ā $ 292,528 ā $ 16,945 $ (2) ā $ 309,471 ā Total ā $ 292,528 ā $ 16,945 $ (2) ā $ 309,471 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā Available-for-sale: ā ā ā ā ā ā ā ā ā ā ā ā ā U.S. government-sponsored mortgage-backed securities ā $ 7,905 ā $ 723 $ ā ā $ 8,628 ā Total ā $ 7,905 ā $ 723 $ ā ā $ 8,628 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Held-to-maturity: ā ā ā ā ā ā ā ā ā ā ā ā ā U.S. government-sponsored mortgage-backed securities ā $ 363,883 ā $ 8,436 $ (1,014) ā $ 371,305 ā Total ā $ 363,883 ā $ 8,436 $ (1,014) ā $ 371,305 ā ā |
Schedule of amortized cost and estimated fair value of investment securities by maturity | ā ā ā ā ā ā ā ā ā Amortized Estimated (Dollars in thousands) Cost Fair Value Available-for-sale: ā ā ā ā ā ā ā Due within 5 years ā $ ā ā $ ā ā Due after 5 years through 10 years ā ā ā ā ā Due after 10 years ā 3,534 ā 3,959 ā Total ā $ 3,534 ā $ 3,959 ā ā ā ā ā ā ā ā ā Held-to-maturity: ā ā ā ā ā ā ā Due within 5 years ā $ ā ā $ ā ā Due after 5 years through 10 years ā 62 ā 61 ā Due after 10 years ā 292,466 ā 309,410 ā Total ā $ 292,528 ā $ 309,471 ā ā ā ā ā ā ā ā ā ā |
Schedule of realized gains and losses and proceeds from sales of securities held to maturity | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended ā Nine Months Ended ā ā ā September 30, ā September 30, ā (Dollars in thousands) 2020 2019 2020 2019 Proceeds from sales ā $ 5,737 ā $ 4,308 ā $ 14,097 ā $ 8,644 ā Gross gains ā 261 ā 123 ā 858 ā 2,910 ā Gross losses ā ā ā ā ā ā ā ā ā |
Summary of investment securities in an unrealized loss position | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 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) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Held-to-maturity: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā U.S. government-sponsored mortgage-backed securities ā $ 958 ā $ (1) ā $ 4 ā $ (1) 6 ā $ 962 ā $ (2) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Held-to-maturity: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā U.S. government-sponsored mortgage-backed securities ā $ 55,882 ā $ (302) ā $ 34,492 ā $ (712) 30 ā $ 90,374 ā $ (1,014) ā ā |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Loans Receivable and Allowance for Loan Losses | |
Schedule of components of loans receivable | ā ā ā ā ā ā ā ā ā ā ā September 30, ā December 31, ā (Dollars in thousands) 2020 2019 Real estate loans: ā ā ā ā ā ā ā First mortgages: ā ā ā ā ā ā ā One- to four-family residential ā $ 1,436,900 ā $ 1,536,781 ā Multi-family residential ā 8,897 ā 9,965 ā Construction, commercial and other ā 22,250 ā 23,382 ā Home equity loans and lines of credit ā 9,704 ā 10,084 ā Total real estate loans ā 1,477,751 ā 1,580,212 ā Other loans: ā ā ā ā ā ā ā Loans on deposit accounts ā 272 ā 235 ā Consumer and other loans ā 11,475 ā 9,484 ā Total other loans ā 11,747 ā 9,719 ā Less: ā ā ā ā ā ā ā Net unearned fees and discounts ā (1,917) ā (2,435) ā Allowance for loan losses ā (4,942) ā (2,712) ā Total unearned fees, discounts and allowance for loan losses ā (6,859) ā (5,147) ā Loans receivable, net ā $ 1,482,639 ā $ 1,584,784 ā |
Schedule of activity in allowance for loan losses on loans receivable and by portfolio segment | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 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 September 30, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance, beginning of period ā $ 3,020 ā $ 459 ā $ 1 ā $ 197 ā $ 579 ā $ 4,256 ā Provision (reversal of provision) for loan losses ā 988 ā (2) ā ā ā (21) ā (273) ā 692 ā ā ā 4,008 ā 457 ā 1 ā 176 ā 306 ā 4,948 ā Charge-offs ā ā ā ā ā ā ā (6) ā ā ā (6) ā Recoveries ā ā ā ā ā ā ā ā ā ā ā ā ā Net charge-offs ā ā ā ā ā ā ā (6) ā ā ā (6) ā Balance, end of period ā $ 4,008 ā $ 457 ā $ 1 ā $ 170 ā $ 306 ā $ 4,942 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Nine months ended September 30, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance, beginning of period ā $ 1,741 ā $ 511 ā $ 1 ā $ 54 ā $ 405 ā $ 2,712 ā Provision (reversal of provision) for loan losses ā 2,267 ā (54) ā (10) ā 200 ā (99) ā 2,304 ā ā ā 4,008 ā 457 ā (9) ā 254 ā 306 ā 5,016 ā Charge-offs ā ā ā ā ā ā ā (86) ā ā ā (86) ā Recoveries ā ā ā ā ā 10 ā 2 ā ā ā 12 ā Net recoveries (charge-offs) ā ā ā ā ā 10 ā (84) ā ā ā (74) ā Balance, end of period ā $ 4,008 ā $ 457 ā $ 1 ā $ 170 ā $ 306 ā $ 4,942 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 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 September 30, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance, beginning of period ā $ 1,769 ā $ 411 ā $ 1 ā $ 44 ā $ 391 ā $ 2,616 ā (Reversal of provision) provision for loan losses ā (11) ā 90 ā ā ā 15 ā 17 ā 111 ā ā ā 1,758 ā 501 ā 1 ā 59 ā 408 ā 2,727 ā Charge-offs ā ā ā ā ā ā ā (5) ā ā ā (5) ā Recoveries ā ā ā ā ā ā ā 2 ā ā ā 2 ā Net charge-offs ā ā ā ā ā ā ā (3) ā ā ā (3) ā Balance, end of period ā $ 1,758 ā $ 501 ā $ 1 ā $ 56 ā $ 408 ā $ 2,724 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Nine months ended September 30, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance, beginning of period ā $ 1,797 ā $ 443 ā $ 1 ā $ 47 ā $ 354 ā $ 2,642 ā (Reversal of provision) provision for loan losses ā (57) ā 58 ā ā ā 10 ā 54 ā 65 ā ā ā 1,740 ā 501 ā 1 ā 57 ā 408 ā 2,707 ā Charge-offs ā ā ā ā ā ā ā (21) ā ā ā (21) ā Recoveries ā 18 ā ā ā ā ā 20 ā ā ā 38 ā Net recoveries (charge-offs) ā 18 ā ā ā ā ā (1) ā ā ā 17 ā Balance, end of period ā $ 1,758 ā $ 501 ā $ 1 ā $ 56 ā $ 408 ā $ 2,724 ā |
Schedule of balance in allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals September 30, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Allowance for loan losses: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Ending allowance balance: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Individually evaluated for impairment ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā Collectively evaluated for impairment ā 4,008 ā 457 ā 1 ā 170 ā 306 ā 4,942 ā Total ending allowance balance ā $ 4,008 ā $ 457 ā $ 1 ā $ 170 ā $ 306 ā $ 4,942 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Loans: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Ending loan balance: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Individually evaluated for impairment ā $ 2,732 ā $ ā ā $ 23 ā $ ā ā $ ā ā $ 2,755 ā Collectively evaluated for impairment ā 1,441,193 ā 22,191 ā 9,682 ā 11,760 ā ā ā 1,484,826 ā Total ending loan balance ā $ 1,443,925 ā $ 22,191 ā $ 9,705 ā $ 11,760 ā $ ā ā $ 1,487,581 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Allowance for loan losses: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Ending allowance balance: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Individually evaluated for impairment ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā Collectively evaluated for impairment ā 1,741 ā 511 ā 1 ā 54 ā 405 ā 2,712 ā Total ending allowance balance ā $ 1,741 ā $ 511 ā $ 1 ā $ 54 ā $ 405 ā $ 2,712 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Loans: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Ending loan balance: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Individually evaluated for impairment ā $ 1,224 ā $ ā ā $ 89 ā $ ā ā $ ā ā $ 1,313 ā Collectively evaluated for impairment ā 1,543,125 ā 23,326 ā 9,997 ā 9,735 ā ā ā 1,586,183 ā Total ending loan balance ā $ 1,544,349 ā $ 23,326 ā $ 10,086 ā $ 9,735 ā $ ā ā $ 1,587,496 ā ā |
Schedule of balance of impaired loans individually evaluated for impairment by class of loans | ā ā ā ā ā ā ā ā ā Unpaid Recorded Principal (Dollars in thousands) Investment Balance September 30, 2020: ā ā ā ā ā ā ā With no related allowance recorded: ā ā ā ā ā ā ā One- to four-family residential mortgages ā $ 2,732 ā $ 3,164 ā Home equity loans and lines of credit ā 23 ā 32 ā Total ā $ 2,755 ā $ 3,196 ā ā ā ā ā ā ā ā ā December 31, 2019: ā ā ā ā ā ā ā With no related allowance recorded: ā ā ā ā ā ā ā One- to four-family residential mortgages ā $ 1,224 ā $ 1,615 ā Home equity loans and lines of credit ā ā 89 ā ā 178 ā Total ā $ 1,313 ā $ 1,793 ā |
Schedule of average recorded investment and interest income recognized on impaired loans by class of loans | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the Three Months Ended For the Nine Months Ended September 30, September 30, Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized 2020: ā ā ā ā ā ā ā ā With no related allowance recorded: ā ā ā ā ā ā ā ā ā ā ā ā ā One- to four-family residential mortgages ā $ 2,745 ā $ 8 ā $ 2,770 ā $ 25 ā Home equity loans and lines of credit ā 24 ā ā ā 25 ā ā ā Total ā $ 2,769 ā $ 8 ā $ 2,795 ā $ 25 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā With no related allowance recorded: ā ā ā ā ā ā ā ā ā ā ā ā ā One- to four-family residential mortgages ā $ 1,364 ā $ 8 ā $ 1,391 ā $ 25 ā Home equity loans and lines of credit ā ā 96 ā ā ā 100 ā ā ā Total ā $ 1,460 ā $ 8 ā $ 1,491 ā $ 25 ā |
Schedule of aging of loans and accrual status by class of loans | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 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 September 30, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā One- to four-family residential mortgages ā $ ā ā $ 140 ā $ 122 ā $ 262 ā $ 1,434,781 ā $ 1,435,043 ā $ 2,163 ā $ ā ā Multi-family residential mortgages ā ā ā ā ā ā ā ā ā 8,882 ā 8,882 ā ā ā ā ā Construction, commercial and other mortgages ā ā ā ā ā ā ā ā ā 22,191 ā 22,191 ā ā ā ā ā Home equity loans and lines of credit ā ā ā 23 ā ā ā 23 ā 9,682 ā 9,705 ā 23 ā ā ā Loans on deposit accounts ā ā ā ā ā ā ā ā ā 272 ā 272 ā ā ā ā ā Consumer and other ā 6 ā ā ā ā ā 6 ā 11,482 ā 11,488 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total ā $ 6 ā $ 163 ā $ 122 ā $ 291 ā $ 1,487,290 ā $ 1,487,581 ā $ 2,186 ā $ ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā One- to four-family residential mortgages ā $ ā ā $ 959 ā $ ā ā $ 959 ā $ 1,533,446 ā $ 1,534,405 ā $ 647 ā $ ā ā Multi-family residential mortgages ā ā ā ā ā ā ā ā ā 9,944 ā 9,944 ā ā ā ā ā Construction, commercial and other mortgages ā ā ā ā ā ā ā ā ā 23,326 ā 23,326 ā ā ā ā ā Home equity loans and lines of credit ā ā ā 26 ā ā ā 26 ā 10,060 ā 10,086 ā 89 ā ā ā Loans on deposit accounts ā ā ā ā ā ā ā ā ā 235 ā 235 ā ā ā ā ā Consumer and other ā 33 ā 1 ā 1 ā 35 ā 9,465 ā 9,500 ā ā ā 1 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total ā $ 33 ā $ 986 ā $ 1 ā $ 1,020 ā $ 1,586,476 ā $ 1,587,496 ā $ 736 ā $ 1 ā |
Summary of troubled debt restructurings by class of loan | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Number of Accrual Number of Nonaccrual ā (Dollars in thousands) Loans Status Loans Status Total September 30, 2020: ā ā ā ā ā ā ā ā ā ā One- to four-family residential mortgages ā 3 ā $ 568 ā ā 2 ā $ 481 ā $ 1,049 Total ā 3 ā $ 568 ā ā 2 ā $ 481 ā $ 1,049 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā One- to four-family residential mortgages ā 3 ā $ 577 ā ā 2 ā $ 525 ā $ 1,102 Home equity loans and lines of credit ā ā ā ā ā 1 ā 64 ā 64 Total ā 3 ā $ 577 ā ā 3 ā $ 589 ā $ 1,166 |
Securities Sold Under Agreeme_2
Securities Sold Under Agreements to Repurchase (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Securities Sold Under Agreements to Repurchase | |
Summary of securities sold under agreements to repurchase | ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, 2020 December 31, 2019 ā Weighted Weighted ā Repurchase Average Repurchase Average ā (Dollars in thousands) Liability Rate Liability Rate ā Maturing: ā ā ā ā ā ā ā ā ā ā ā ā 1 year or less ā $ ā ā % $ 5,000 1.65 % ā Over 4 year to 5 years ā 10,000 1.81 ā 5,000 1.88 ā ā Total ā $ 10,000 1.81 % $ 10,000 1.77 % ā |
Summary comparing carrying value and fair value of securities pledged to secure repurchase agreements, repurchase liability, and amount at risk | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted Carrying Fair Average Value of Value of Repurchase Amount Months to (Dollars in thousands) Securities Securities Liability at Risk Maturity Maturing: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Over 90 days ā $ 10,001 ā $ 10,994 ā $ 10,000 ā $ 994 51 ā |
Offsetting of Financial Liabi_2
Offsetting of Financial Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Offsetting of Financial Liabilities | |
Schedule of securities sold under agreements to repurchase subject to conditional right of offset | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 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 ā Pledged Net Amount September 30, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Securities sold under agreements to repurchase ā $ 10,000 ā $ ā ā $ 10,000 ā $ 10,000 ā $ ā ā $ ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Securities sold under agreements to repurchase ā $ 10,000 ā $ ā ā $ 10,000 ā $ 10,000 ā $ ā ā $ ā |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Employee Benefit Plans | |
Schedule of components of net periodic benefit cost | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā SERP SERP Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands) 2020 2019 2020 2019 Net periodic benefit cost for the period: ā ā ā ā ā ā ā ā ā ā ā ā ā Service cost ā $ 22 ā $ 26 ā $ 66 ā $ 77 ā Interest cost ā 43 ā 41 ā 130 ā 122 ā Expected return on plan assets ā ā ā ā ā ā ā ā ā Amortization of prior service cost ā ā ā ā ā ā ā ā ā Recognized actuarial loss ā ā ā ā ā ā ā ā ā Recognized curtailment loss ā ā ā ā ā ā ā ā ā Net periodic benefit cost ā $ 65 ā $ 67 ā $ 196 ā $ 199 ā |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Employee Stock Ownership Plan | |
Schedule of shares held by the ESOP trust | ā ā ā ā ā ā ā ā ā September 30, December 31, 2020 2019 Allocated shares ā 495,070 ā 466,807 ā Unearned shares ā 403,698 ā 440,397 ā Total ESOP shares ā 898,768 ā 907,204 ā Fair value of unearned shares, in thousands ā $ 8,167 ā $ 13,626 ā |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Schedule of compensation expense and related tax benefit for all share-based awards | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2020 2019 2020 2019 Compensation expense ā $ 157 ā $ 123 ā $ 523 ā $ 494 ā Income tax benefit ā 43 ā 33 ā 143 ā 135 ā |
Schedule of stock option activity | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted ā Aggregate ā ā ā ā Average ā Remaining ā Intrinsic ā ā ā ā Exercise ā Contractual ā Value ā ā Options ā Price ā Life (years) ā (in thousands) Options outstanding at December 31, 2019 116,409 ā $ 17.53 0.72 ā $ 1,562 ā Granted ā ā ā ā ā ā ā Exercised 81,827 ā 17.36 ā ā 725 ā Forfeited ā ā ā ā ā ā ā Expired 31,497 ā ā ā ā ā ā Options outstanding at September 30, 2020 ā 3,085 ā $ 23.62 1.92 ā $ (11) ā ā ā ā ā ā ā ā ā ā ā ā ā Options outstanding at December 31, 2018 337,654 ā $ 17.51 1.74 ā $ 2,859 ā Granted ā ā ā ā ā ā ā Exercised 203,370 ā 17.36 ā ā 2,282 ā Forfeited ā ā ā ā ā ā ā Expired ā ā ā ā ā ā ā Options outstanding at September 30, 2019 134,284 ā $ 17.74 1.10 ā $ 1,455 ā ā ā ā ā ā ā ā ā ā ā ā ā Options vested and exercisable at September 30, 2020 3,085 ā $ 23.62 1.92 ā $ (11) ā |
Summary of certain stock option activity | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the Three Months Ended For the Nine Months Ended September 30, September 30, (In thousands) 2020 2019 2020 2019 Intrinsic value of stock options exercised ā $ ā ā $ 251 ā $ 725 ā $ 2,282 ā Proceeds received from stock options exercised ā ā ā 368 ā 1,421 ā 3,531 ā Tax benefits realized from stock options exercised ā ā ā 60 ā 158 ā 484 ā Total fair value of stock options that vested ā ā ā ā ā ā ā ā ā |
Restricted Stock | |
Schedule of restricted stock award activity | ā ā ā ā ā ā ā ā Weighted Average Grant Restricted Date Fair Stock Value Unvested at December 31, 2019 20,249 ā $ 28.78 ā Granted 13,444 ā 21.05 ā Vested 9,998 ā 29.16 ā Forfeited ā ā ā ā Unvested at September 30, 2020 23,695 ā $ 24.24 ā ā ā ā ā ā ā ā Unvested at December 31, 2018 16,424 ā $ 30.26 ā Granted 10,366 ā 27.30 ā Vested 6,541 ā 30.14 ā Forfeited ā ā ā ā Unvested at September 30, 2019 20,249 ā $ 28.78 ā |
Restricted Stock Units Based on a Performance Condition | |
Schedule of restricted stock award activity | ā ā ā ā ā ā ā Performance- ā ā ā ā Based Restricted ā ā ā Stock Units Weighted ā ā Based on a ā Average Grant ā ā Performance ā Date Fair Condition Value Unvested at December 31, 2019 35,976 ā $ 29.16 Granted 16,129 ā 21.05 Vested 7,680 ā 29.53 Forfeited 3,840 ā 29.53 Unvested at September 30, 2020 40,585 ā $ 25.83 ā ā ā ā ā ā Unvested at December 31, 2018 23,538 ā $ 30.14 Granted 12,438 ā 27.30 Vested ā ā ā Forfeited ā ā ā Unvested at September 30, 2019 35,976 ā $ 29.16 |
Restricted Stock Units Based on a Market Condition | |
Schedule of restricted stock award activity | ā ā ā ā ā ā ā ā ā Performance- ā ā ā ā ā Based Restricted ā Monte Carlo ā ā Stock Units ā Valuation of ā ā Based on a ā the Company's Market Condition Stock Unvested at December 31, 2019 8,994 ā $ 25.74 Granted 4,032 ā 22.16 Vested 1,197 ā 24.44 Forfeited 1,682 ā 24.44 Unvested at September 30, 2020 10,147 ā $ 24.69 ā ā ā ā ā ā Unvested at December 31, 2018 5,884 ā $ 26.42 Granted 3,110 ā 24.45 Vested ā ā ā Forfeited ā ā ā Unvested at September 30, 2019 8,994 ā $ 25.74 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share | |
Schedule of information used to compute basic and diluted earnings per share | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands, except per share data) 2020 2019 2020 2019 Net income ā $ 4,318 ā $ 5,366 ā $ 13,082 ā $ 16,950 ā Income allocated to participating securities ā ā (23) ā ā (38) ā ā (47) ā ā (112) ā Net income available to common shareholders ā $ 4,295 ā $ 5,328 ā $ 13,035 ā $ 16,838 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted-average number of shares used in: ā ā ā ā ā ā ā ā ā ā ā ā ā Basic earnings per share ā 9,104,079 ā 9,212,119 ā 9,144,463 ā 9,184,741 ā Dilutive common stock equivalents: ā ā ā ā ā ā ā ā ā ā ā ā ā Stock options and restricted stock units ā 30,010 ā 83,610 ā 57,419 ā 124,679 ā Diluted earnings per share ā 9,134,089 ā 9,295,729 ā 9,201,882 ā 9,309,420 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Net income per common share, basic ā $ 0.47 ā $ 0.58 ā $ 1.43 ā $ 1.83 ā Net income per common share, diluted ā $ 0.47 ā $ 0.57 ā $ 1.42 ā $ 1.81 ā |
Other Comprehensive Income an_2
Other Comprehensive Income and Loss (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Comprehensive Income and Loss | |
Schedule of changes in components of accumulated other comprehensive income and loss, net of taxes | ā ā ā ā ā ā ā ā ā ā ā ā Unfunded Unrealized Pension (Gain)/Loss on (Dollars in thousands) Liability Securities Total Three months ended September 30, 2020 ā ā ā ā ā ā ā ā ā ā Balances at beginning of period ā $ 8,178 ā $ (315) ā $ 7,863 ā Other comprehensive loss, net of taxes ā ā ā ā 4 ā 4 ā Amounts reclassified from other comprehensive income, net of taxes ā ā ā ā ā ā ā Net current period other comprehensive loss ā ā ā 4 ā 4 ā Balances at end of period ā $ 8,178 ā $ (311) ā $ 7,867 ā ā ā ā ā ā ā ā ā ā ā ā Three months ended September 30, 2019 ā ā ā ā ā ā ā ā ā ā Balances at beginning of period ā $ 7,721 ā $ (521) ā $ 7,200 ā Other comprehensive income, net of taxes ā ā ā (70) ā (70) ā Amounts reclassified from other comprehensive income, net of taxes ā ā ā 91 ā 91 ā Net current period other comprehensive loss ā ā ā 21 ā 21 ā Balances at end of period ā $ 7,721 ā $ (500) ā $ 7,221 ā ā ā ā ā ā ā ā ā ā ā ā Nine months ended September 30, 2020 ā ā ā ā ā ā ā ā ā ā Balances at beginning of period ā $ 8,178 ā $ (510) ā $ 7,668 ā Other comprehensive income, net of taxes ā ā ā (22) ā (22) ā Amounts reclassified from other comprehensive income, net of taxes ā ā ā 221 ā 221 ā Net current period other comprehensive loss ā ā ā 199 ā 199 ā Balances at end of period ā $ 8,178 ā $ (311) ā $ 7,867 ā ā ā ā ā ā ā ā ā ā ā ā Nine months ended September 30, 2019 ā ā ā ā ā ā ā ā ā ā Balances at beginning of period ā $ 7,721 ā $ 88 ā $ 7,809 ā Other comprehensive income, net of taxes ā ā ā (711) ā (711) ā Amounts reclassified from other comprehensive income, net of taxes ā ā ā 123 ā 123 ā Net current period other comprehensive income ā ā ā (588) ā (588) ā Balances at end of period ā $ 7,721 ā $ (500) ā $ 7,221 ā |
Schedule of tax effect on each component of accumulated other comprehensive loss | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended September 30, 2020 2019 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized loss (gain) on securities ā $ 5 ā $ (1) ā $ 4 ā $ (95) ā $ 25 ā $ (70) ā Amount reclassified from other comprehensive income ā ā ā ā ā ā ā ā ā ā ā 123 ā ā (32) ā ā 91 ā Total ā $ 5 ā $ (1) ā $ 4 ā $ 28 ā $ (7) ā $ 21 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Nine Months Ended September 30, ā 2020 2019 ā Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized gain on securities ā $ (30) ā $ 8 ā $ (22) ā $ (969) ā $ 258 ā $ (711) ā Amount reclassified from other comprehensive income ā ā 301 ā ā (80) ā ā 221 ā ā 167 ā ā (44) ā ā 123 ā Total ā $ 271 ā $ (72) ā $ 199 ā $ (802) ā $ 214 ā $ (588) ā |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue Recognition | |
Reconciliation of revenue from contracts with customers and other revenue reported in line items | ā ā ā ā ā ā ā ā ā ā ā Service Fees on ā ā ā ā Loan and Deposit ā ā ā ā (Dollars in thousands) Accounts Other Total Three months ended September 30, 2020 ā ā ā ā ā ā ā ā ā Revenue from contracts with customers ā $ 275 ā $ 35 ā $ 310 Other revenue ā ā 453 ā ā 28 ā ā 481 Total ā $ 728 ā $ 63 ā $ 791 ā ā ā ā ā ā ā ā ā ā Three months ended September 30, 2019 ā ā ā ā ā ā ā ā ā Revenue from contracts with customers ā $ 347 ā $ 37 ā $ 384 Other revenue ā ā 157 ā ā 18 ā ā 175 Total ā $ 504 ā $ 55 ā $ 559 ā ā ā ā ā ā ā ā ā ā Nine months ended September 30, 2020 ā ā ā ā ā ā ā ā ā Revenue from contracts with customers ā $ 918 ā $ 88 ā $ 1,006 Other revenue ā ā 798 ā ā 83 ā ā 881 Total ā $ 1,716 ā $ 171 ā $ 1,887 ā ā ā ā ā ā ā ā ā ā Nine months ended September 30, 2019 ā ā ā ā ā ā ā ā ā Revenue from contracts with customers ā $ 1,047 ā $ 137 ā $ 1,184 Other revenue ā ā 380 ā ā 498 ā ā 878 Total ā $ 1,427 ā $ 635 ā $ 2,062 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases | |
Schedule of lease costs | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended Nine Months Ended ā September 30, September 30, (Dollars in thousands) 2020 2019 2020 2019 Lease Costs: ā ā ā ā ā ā ā ā ā ā ā ā ā Operating lease costs ā $ 878 ā $ 777 ā $ 2,509 ā $ 2,342 ā Short-term lease costs ā 5 ā 21 ā 17 ā 37 ā Variable lease costs ā 38 ā 40 ā 115 ā 93 ā Total lease costs ā $ 921 ā $ 838 ā $ 2,641 ā $ 2,472 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Cash paid for amounts included in measurement of lease liabilities ā $ 808 ā $ 721 ā $ 2,414 ā $ 2,266 ā ROU assets obtained in exchange for new operating lease liabilities ā $ 2,247 ā $ 246 ā $ 4,033 ā $ 13,254 ā ā |
Schedule of future minimum rental commitments under noncancellable operating leases | ā ā ā ā ā ā ā ā ā ā ā (Dollars in thousands) ā ā ā ā ā ā ā ā 2020 ā $ 820 ā ā ā ā ā ā 2021 ā 2,974 ā ā ā ā ā ā 2022 ā 2,690 ā ā ā ā ā ā 2023 ā 2,339 ā ā ā ā ā ā 2024 ā 2,060 ā ā ā ā ā ā Thereafter ā 4,294 ā ā ā ā ā ā Total ā ā 15,177 ā ā ā ā ā ā Less present value discount ā ā 1,047 ā ā ā ā ā ā Present value of leases ā $ 14,130 ā ā ā ā ā ā ā |
Schedule of other lease related information | ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, ā ā September 30, ā ā ā 2020 ā 2019 ā Weighted-average remaining lease term (years) ā 6.00 ā ā 6.23 ā ā Weighted-average discount rate ā ā 2.45 % ā ā 2.90 % ā |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Schedule of estimated fair values of financial instruments | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Carrying ā ā ā ā Fair Value Measurements Using (Dollars in thousands) Amount Fair Value Level 1 Level 2 Level 3 September 30, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Assets ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Cash and cash equivalents ā $ 237,498 ā $ 237,498 ā $ 237,498 ā $ ā ā $ ā ā Investment securities available for sale ā ā 3,959 ā ā 3,959 ā ā ā ā ā 3,959 ā ā ā ā Investment securities held to maturity ā 292,528 ā ā 309,471 ā ā ā ā ā 309,471 ā ā ā ā Loans held for sale ā 834 ā ā 870 ā ā ā ā ā 870 ā ā ā ā Loans receivable, net ā 1,482,639 ā ā 1,562,422 ā ā ā ā ā ā ā ā 1,562,422 ā FHLB stock ā 8,144 ā ā 8,144 ā ā ā ā ā 8,144 ā ā ā ā FRB stock ā ā 3,145 ā ā 3,145 ā ā ā ā ā 3,145 ā ā ā ā Accrued interest receivable ā 7,214 ā ā 7,214 ā ā 19 ā ā 794 ā ā 6,401 ā Interest rate contracts ā 60 ā ā 60 ā ā ā ā ā 60 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Liabilities ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Deposits ā 1,662,706 ā ā 1,667,045 ā ā ā ā ā 1,285,438 ā ā 381,607 ā Advances from the Federal Home Loan Bank ā 141,000 ā ā 145,623 ā ā ā ā ā 145,623 ā ā ā ā Securities sold under agreements to repurchase ā 10,000 ā ā 10,484 ā ā ā ā ā 10,484 ā ā ā ā Accrued interest payable ā 99 ā ā 99 ā ā ā ā ā 48 ā ā 51 ā Interest rate contracts ā 60 ā ā 60 ā ā ā ā ā 60 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Assets ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Cash and cash equivalents ā $ 44,806 ā $ 44,806 ā $ 44,806 ā $ ā ā $ ā ā Investment securities available for sale ā ā 8,628 ā ā 8,628 ā ā ā ā ā 8,628 ā ā ā ā Investment securities held to maturity ā 363,883 ā ā 371,305 ā ā ā ā ā 371,305 ā ā ā ā Loans held for sale ā 470 ā ā 480 ā ā ā ā ā 480 ā ā ā ā Loans receivable, net ā 1,584,784 ā ā 1,627,903 ā ā ā ā ā ā ā ā 1,627,903 ā FHLB stock ā 8,723 ā ā 8,723 ā ā ā ā ā 8,723 ā ā ā ā FRB stock ā ā 3,128 ā ā 3,128 ā ā ā ā ā 3,128 ā ā ā ā Accrued interest receivable ā 5,409 ā ā 5,409 ā ā 32 ā ā 952 ā ā 4,425 ā Interest rate contracts ā 5 ā ā 5 ā ā ā ā ā 5 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Liabilities ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Deposits ā 1,631,933 ā ā 1,632,741 ā ā ā ā ā 1,167,990 ā ā 464,751 ā Advances from the Federal Home Loan Bank ā 156,000 ā ā 156,906 ā ā ā ā ā 156,906 ā ā ā ā Securities sold under agreements to repurchase ā 10,000 ā ā 9,968 ā ā ā ā ā 9,968 ā ā ā ā Accrued interest payable ā 397 ā ā 397 ā ā ā ā ā 47 ā ā 350 ā Interest rate contracts ā 5 ā ā 5 ā ā ā ā ā 5 ā ā ā ā |
Schedule of assets and liabilities measured at fair value on a recurring basis | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (Dollars in thousands) Level 1 Level 2 Level 3 Total September 30, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā Interest rate contracts ā assets ā $ ā ā $ 60 ā $ ā ā $ 60 ā Interest rate contracts ā liabilities ā ā ā (60) ā ā ā (60) ā Investment securities available for sale ā ā ā ā ā 3,959 ā ā ā ā ā 3,959 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019 ā ā ā ā ā ā ā ā ā ā ā ā ā Interest rate contracts ā assets ā $ ā ā $ 5 ā $ ā ā $ 5 ā Interest rate contracts ā liabilities ā ā ā (5) ā ā ā (5) ā Investment securities available for sale ā ā ā 8,628 ā ā ā 8,628 ā |
Schedule of Significant unobservable inputs for Level 3 nonrecurring fair value measurements | ā ā ā ā ā ā ā ā ā ā ā ā ā Unobservable Range (Dollars in thousands) Fair Value Valuation Technique Input (Weighted Average) September 30, 2020: ā ā ā ā ā ā ā ā ā ā ā Mortgage servicing assets ā $ 452 ā Discounted cash flow ā Discount rate ā ā 9.25% - 11.25% (10.25%) ā ā ā ā ā ā ā ā Prepayment speed (CPR) ā 9.36 - 18.16 (13.54) ā ā ā ā ā ā ā ā Annual cost to service (per loan, in dollars) ā $ 75 ā December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā Mortgage servicing assets ā $ 452 Discounted cash flow Discount rate ā ā 9.25% - 11.25% (10.25%) ā ā ā ā ā ā ā Prepayment speed (CPR) ā 11.09 - 14.24 (12.58) ā ā ā ā ā ā ā Annual cost to service (per loan, in dollars) ā $ 75 ā |
Fair Value, Measurements, Nonrecurring | |
Schedule of balance of assets measured at fair value on a nonrecurring basis | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fair Value ā ā (Dollars in thousands) Adjustment Date ā Level 1 Level 2 Level 3 Total ā Total Losses ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Mortgage servicing assets ā 9/30/2020 ā $ ā ā $ ā ā $ 452 ā $ 452 ā $ (53) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Mortgage servicing assets ā 9/30/2019 ā ā ā ā ā ā ā ā 452 ā ā 452 ā ā (16) ā |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents | ||
Cash and due from banks | $ 10,873 | $ 9,571 |
Interest-earning deposits in other banks | 226,625 | 35,235 |
Cash and cash equivalents | $ 237,498 | $ 44,806 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Values of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Available-for-sale: | ||
Amortized Cost | $ 3,534 | $ 7,905 |
Gross Unrealized Gains | 425 | 723 |
Estimated Fair Value | 3,959 | 8,628 |
Mortgage-backed securities | ||
Available-for-sale: | ||
Amortized Cost | 3,534 | 7,905 |
Gross Unrealized Gains | 425 | 723 |
Estimated Fair Value | $ 3,959 | $ 8,628 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Fair Values of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Held-to-maturity: | ||
Amortized Cost | $ 292,528 | $ 363,883 |
Gross Unrealized Gains | 16,945 | 8,436 |
Gross Unrealized Losses | (2) | (1,014) |
Estimated Fair Value | 309,471 | 371,305 |
Mortgage-backed securities | ||
Held-to-maturity: | ||
Amortized Cost | 292,528 | 363,883 |
Gross Unrealized Gains | 16,945 | 8,436 |
Gross Unrealized Losses | (2) | (1,014) |
Estimated Fair Value | $ 309,471 | $ 371,305 |
Investment Securities - Maturit
Investment Securities - Maturity Schedule of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Due within 5 years | $ 0 | |
Due after 5 years through 10 years | 0 | |
Due after 10 years | 3,534 | |
Amortized Cost | 3,534 | $ 7,905 |
Estimated Fair Value | ||
Due within 5 years | 0 | |
Due after 5 years through 10 years | 0 | |
Due after 10 years | 3,959 | |
Estimated Fair Value | $ 3,959 | $ 8,628 |
Investment Securities - Matur_2
Investment Securities - Maturity Schedule of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Held-to-maturity, Amortized Cost | ||
Due within 5 years | $ 0 | |
Due after 5 years through 10 years | 62 | |
Due after 10 years | 292,466 | |
Amortized Cost | 292,528 | $ 363,883 |
Held-to-maturity, Estimated Fair Value | ||
Due within 5 years | 0 | |
Due after 5 years through 10 years | 61 | |
Due after 10 years | 309,410 | |
Estimated Fair Value | $ 309,471 | $ 371,305 |
Investment Securities - Realize
Investment Securities - Realized Gains and Losses and Proceeds from Sales (Details) - USD ($) | Jan. 01, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Realized gains and losses and the proceeds from sales of securities | |||||
Proceeds from sales | $ 10,429,000 | $ 3,527,000 | |||
Available-for-sale mortgage-backed securities sold | 3,400,000 | 5,000,000 | |||
Transfer of securities from held-to-maturity to available-for-sale | $ 11,400,000 | 11,390,000 | |||
Trust preferred securities | |||||
Realized gains and losses and the proceeds from sales of securities | |||||
Proceeds from sales | 75,000 | ||||
Gross gains | 2,700,000 | ||||
Mortgage-backed securities | |||||
Realized gains and losses and the proceeds from sales of securities | |||||
Proceeds from sales | 746,000 | ||||
Gross gains | 568,000 | 40,000 | |||
Debt Securities, Available-for-sale, Realized Gain | 290,000 | 153,000 | |||
Mortgage-backed securities | |||||
Realized gains and losses and the proceeds from sales of securities | |||||
Proceeds from sales | $ 9,900,000 | ||||
Minimum | 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 | $ 5,737,000 | $ 4,308,000 | $ 14,097,000 | 8,644,000 | |
Gross gains | $ 261,000 | $ 123,000 | $ 858,000 | $ 2,910,000 |
Investment Securities - Securit
Investment Securities - Securities Pledged (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
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 | $ 217.5 | $ 188.9 |
Investment Securities - Held-to
Investment Securities - Held-to-Maturity Unrealized Loss Position Summary (Details) - Mortgage-backed securities $ in Thousands | Sep. 30, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Investment Securities | ||
Less Than 12 Months Fair Value | $ 958 | $ 55,882 |
Less Than 12 Months Unrealized Losses | (1) | (302) |
12 Months or Longer Fair Value | 4 | 34,492 |
12 Months or Longer Unrealized Losses | $ (1) | $ (712) |
Total Number of Securities | security | 6 | 30 |
Total Fair Value | $ 962 | $ 90,374 |
Total Unrealized Losses | $ (2) | $ (1,014) |
Investment Securities - Mortgag
Investment Securities - Mortgage-Backed Securities (Details) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Schedule of Investments [Line Items] | |
Fair market value of received mortgage-backed securities | $ 9,800,000 |
Mortgage servicing assets | 78,000 |
Net gain recognized on the securitization | 377,000 |
Fixed-rate mortgage loans | |
Schedule of Investments [Line Items] | |
Book value | 9,400,000 |
Mortgage servicing assets | 78,000 |
Net gain recognized on the securitization | $ 377,000 |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance for Loan Losses - Components (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Real estate loans: | ||||||
Total real estate loans | $ 1,477,751 | $ 1,580,212 | ||||
Other loans: | ||||||
Less: Net unearned fees and discounts | (1,917) | (2,435) | ||||
Less: Allowance for loan losses | (4,942) | $ (4,256) | (2,712) | $ (2,724) | $ (2,616) | $ (2,642) |
Total unearned fees, discounts and allowance for loan losses | (6,859) | (5,147) | ||||
Loans receivable, net | 1,482,639 | 1,584,784 | ||||
Other Financing Receivables | ||||||
Other loans: | ||||||
Total other loans | 11,747 | 9,719 | ||||
One- to four-family residential | Residential Mortgage | ||||||
Real estate loans: | ||||||
Total real estate loans | 1,436,900 | 1,536,781 | ||||
Multi-family residential | Residential Mortgage | ||||||
Real estate loans: | ||||||
Total real estate loans | 8,897 | 9,965 | ||||
Construction, Commercial and Other Mortgage Loans | Construction, commercial and other | ||||||
Real estate loans: | ||||||
Total real estate loans | 22,250 | 23,382 | ||||
Other loans: | ||||||
Less: Allowance for loan losses | (457) | (459) | (511) | (501) | (411) | (443) |
Home Equity Loans and Lines of Credit | Home equity loans and lines of credit | ||||||
Real estate loans: | ||||||
Total real estate loans | 9,704 | 10,084 | ||||
Other loans: | ||||||
Less: Allowance for loan losses | (1) | $ (1) | (1) | $ (1) | $ (1) | $ (1) |
Loans on Deposit Accounts | Other Financing Receivables | ||||||
Other loans: | ||||||
Total other loans | 272 | 235 | ||||
Consumer and Other | Other Financing Receivables | ||||||
Other loans: | ||||||
Total other loans | $ 11,475 | $ 9,484 |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance for Loan Losses - Activity in Allowance for Loan Losses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Activity in allowance for loan losses | ||||
Balance, beginning of period | $ 4,256,000 | $ 2,616,000 | $ 2,712,000 | $ 2,642,000 |
Provision (reversal of provision) for loan losses | 692,000 | 111,000 | 2,304,000 | 65,000 |
Allowance for loan losses on loans receivable after provision (reversal of allowance) | 4,948,000 | 2,727,000 | 5,016,000 | 2,707,000 |
Charge-offs | (6,000) | (5,000) | (86,000) | (21,000) |
Recoveries | 2,000 | 12,000 | 38,000 | |
Net recoveries (charge-offs) | (6,000) | (3,000) | (74,000) | 17,000 |
Balance, end of period | 4,942,000 | 2,724,000 | 4,942,000 | 2,724,000 |
Residential Mortgage | Residential Mortgage | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 3,020,000 | 1,769,000 | 1,741,000 | 1,797,000 |
Provision (reversal of provision) for loan losses | 988,000 | (11,000) | 2,267,000 | (57,000) |
Allowance for loan losses on loans receivable after provision (reversal of allowance) | 4,008,000 | 1,758,000 | 4,008,000 | 1,740,000 |
Recoveries | 18,000 | |||
Net recoveries (charge-offs) | 18,000 | |||
Balance, end of period | 4,008,000 | 1,758,000 | 4,008,000 | 1,758,000 |
Construction, commercial and other | Construction, Commercial and Other Mortgage Loans | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 459,000 | 411,000 | 511,000 | 443,000 |
Provision (reversal of provision) for loan losses | (2,000) | 90,000 | (54,000) | 58,000 |
Allowance for loan losses on loans receivable after provision (reversal of allowance) | 457,000 | 501,000 | 457,000 | 501,000 |
Balance, end of period | 457,000 | 501,000 | 457,000 | 501,000 |
Home equity loans and lines of credit | Home Equity Loans and Lines of Credit | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 1,000 | 1,000 | 1,000 | 1,000 |
Provision (reversal of provision) for loan losses | (10,000) | |||
Allowance for loan losses on loans receivable after provision (reversal of allowance) | 1,000 | 1,000 | (9,000) | 1,000 |
Recoveries | 10,000 | |||
Net recoveries (charge-offs) | 10,000 | |||
Balance, end of period | 1,000 | 1,000 | 1,000 | 1,000 |
Other Financing Receivables | Consumer and other loans | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 197,000 | 44,000 | 54,000 | 47,000 |
Provision (reversal of provision) for loan losses | (21,000) | 15,000 | 200,000 | 10,000 |
Allowance for loan losses on loans receivable after provision (reversal of allowance) | 176,000 | 59,000 | 254,000 | 57,000 |
Charge-offs | (6,000) | (5,000) | (86,000) | (21,000) |
Recoveries | 2,000 | 2,000 | 20,000 | |
Net recoveries (charge-offs) | (6,000) | (3,000) | (84,000) | (1,000) |
Balance, end of period | 170,000 | 56,000 | 170,000 | 56,000 |
Unallocated | Unallocated | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 579,000 | 391,000 | 405,000 | 354,000 |
Provision (reversal of provision) for loan losses | (273,000) | 17,000 | (99,000) | 54,000 |
Allowance for loan losses on loans receivable after provision (reversal of allowance) | 306,000 | 408,000 | 306,000 | 408,000 |
Balance, end of period | $ 306,000 | $ 408,000 | $ 306,000 | $ 408,000 |
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 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Allowance for loan losses: | ||||||
Collectively evaluated for impairment | $ 4,942 | $ 2,712 | ||||
Total ending allowance balance | 4,942 | $ 4,256 | 2,712 | $ 2,724 | $ 2,616 | $ 2,642 |
Loans: | ||||||
Individually evaluated for impairment | 2,755 | 1,313 | ||||
Collectively evaluated for impairment | 1,484,826 | 1,586,183 | ||||
Total ending loan balance | 1,487,581 | 1,587,496 | ||||
Residential Mortgage | Residential Mortgage | ||||||
Allowance for loan losses: | ||||||
Collectively evaluated for impairment | 4,008 | 1,741 | ||||
Total ending allowance balance | 4,008 | 3,020 | 1,741 | 1,758 | 1,769 | 1,797 |
Loans: | ||||||
Individually evaluated for impairment | 2,732 | 1,224 | ||||
Collectively evaluated for impairment | 1,441,193 | 1,543,125 | ||||
Total ending loan balance | 1,443,925 | 1,544,349 | ||||
Construction, commercial and other | Construction, Commercial and Other Mortgage Loans | ||||||
Allowance for loan losses: | ||||||
Collectively evaluated for impairment | 457 | 511 | ||||
Total ending allowance balance | 457 | 459 | 511 | 501 | 411 | 443 |
Loans: | ||||||
Collectively evaluated for impairment | 22,191 | 23,326 | ||||
Total ending loan balance | 22,191 | 23,326 | ||||
Home equity loans and lines of credit | 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 | 23 | 89 | ||||
Collectively evaluated for impairment | 9,682 | 9,997 | ||||
Total ending loan balance | 9,705 | 10,086 | ||||
Other Financing Receivables | Consumer and other loans | ||||||
Allowance for loan losses: | ||||||
Collectively evaluated for impairment | 170 | 54 | ||||
Total ending allowance balance | 170 | 197 | 54 | 56 | 44 | 47 |
Loans: | ||||||
Collectively evaluated for impairment | 11,760 | 9,735 | ||||
Total ending loan balance | 11,760 | 9,735 | ||||
Unallocated | Unallocated | ||||||
Allowance for loan losses: | ||||||
Collectively evaluated for impairment | 306 | 405 | ||||
Total ending allowance balance | $ 306 | $ 579 | $ 405 | $ 408 | $ 391 | $ 354 |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Impaired loans | |||||
Average Recorded Investment | $ 2,769 | $ 1,460 | $ 2,795 | $ 1,491 | |
Interest Income Recognized | 8 | 8 | 25 | 25 | |
One- to four-family residential | |||||
Impaired loans | |||||
Average Recorded Investment | 2,745 | 1,364 | 2,770 | 1,391 | |
Interest Income Recognized | 8 | 8 | 25 | 25 | |
Home Equity Loans and Lines of Credit | |||||
Impaired loans | |||||
Average Recorded Investment | 24 | $ 96 | 25 | $ 100 | |
Individually Evaluated for Impairment | |||||
Impaired loans | |||||
Recorded Investment | 2,755 | 2,755 | $ 1,313 | ||
Unpaid Principal Balance | 3,196 | 3,196 | 1,793 | ||
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 | 2,732 | 2,732 | 1,224 | ||
Unpaid Principal Balance | 3,164 | 3,164 | 1,615 | ||
Individually Evaluated for Impairment | Home Equity Loans and Lines of Credit | |||||
Impaired loans | |||||
Recorded Investment | 23 | 23 | 89 | ||
Unpaid Principal Balance | $ 32 | $ 32 | $ 178 |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance for Loan Losses - Delinquent and Nonaccrual Loans (Details) | 9 Months Ended | ||
Sep. 30, 2020USD ($)loan | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable | |||
Nonaccrual Loans | $ 2,186,000 | $ 736,000 | |
90 Days or More Past Due | |||
Accounts, Notes, Loans and Financing Receivable | |||
Number of loans | loan | 1 | ||
Mortgage loan due | $ 1,000 | ||
Fixed-rate mortgage loans | 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 | 8 | 6 | |
Nonaccrual Loans | $ 2,200,000 | $ 736,000 | |
Interest collected on nonaccrual loans recorded as a reduction of principal | 40,000 | $ 51,000 | |
Non accrual loans, additional interest income that would have been recognized had the loans been accruing interest | $ 68,000 | $ 51,000 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance for Loan Losses - Aging of Loans and Accrual Status (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | $ 291 | $ 1,020 |
Loans Not Past Due | 1,487,290 | 1,586,476 |
Total ending loan balance | 1,487,581 | 1,587,496 |
Nonaccrual Loans | 2,186 | 736 |
Loans 90 Days or More Past Due and Still Accruing | 1 | |
30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 6 | 33 |
60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 163 | 986 |
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 122 | 1 |
Residential Mortgage | One- to four-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 262 | 959 |
Loans Not Past Due | 1,434,781 | 1,533,446 |
Total ending loan balance | 1,435,043 | 1,534,405 |
Nonaccrual Loans | 2,163 | 647 |
Residential Mortgage | Multi-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans Not Past Due | 8,882 | 9,944 |
Total ending loan balance | 8,882 | 9,944 |
Residential Mortgage | 60 - 89 Days Past Due | One- to four-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 140 | 959 |
Residential Mortgage | 90 Days or More Past Due | One- to four-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 122 | |
Construction, commercial and other | Construction, Commercial and Other Mortgage Loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans Not Past Due | 22,191 | 23,326 |
Total ending loan balance | 22,191 | 23,326 |
Home equity loans and lines of credit | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 23 | 26 |
Loans Not Past Due | 9,682 | 10,060 |
Total ending loan balance | 9,705 | 10,086 |
Nonaccrual Loans | 23 | 89 |
Home equity loans and lines of credit | 60 - 89 Days Past Due | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 23 | 26 |
Other Financing Receivables | Loans on Deposit Accounts | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans Not Past Due | 272 | 235 |
Total ending loan balance | 272 | 235 |
Other Financing Receivables | Consumer and Other | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 6 | 35 |
Loans Not Past Due | 11,482 | 9,465 |
Total ending loan balance | 11,488 | 9,500 |
Loans 90 Days or More Past Due and Still Accruing | 1 | |
Other Financing Receivables | 30 - 59 Days Past Due | Consumer and Other | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | $ 6 | 33 |
Other Financing Receivables | 60 - 89 Days Past Due | Consumer and Other | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 1 | |
Other Financing Receivables | 90 Days or More Past Due | Consumer and Other | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | $ 1 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Loan Losses - Troubled Debt Restructurings (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020USD ($)loan | Sep. 30, 2019loan | Dec. 31, 2019USD ($)loan | |
Troubled debt restructurings | |||
Number of loans subsequently defaulted | loan | 0 | 0 | |
Additional disclosures | |||
Loans modified by troubled debt restructurings considered impaired | $ 1,049,000 | $ 1,166,000 | |
Loan deferrals granted, COVID-19 | $ 146,200,000 | ||
Percentage of forbearance loans representing total loans receivable, COVID-19 | 9.90% | ||
Percentage of current loan balance to the current tax-assessed value of the property securing mortgage loans COVID-19 | 54.90% | ||
Real estate owned | $ 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 | |
Loans modified by troubled debt restructurings considered impaired | $ 568,000 | $ 577,000 | |
Non Accrual Loans | |||
Additional disclosures | |||
Number of loans modified by troubled debt restructurings considered impaired | loan | 2 | 3 | |
Loans modified by troubled debt restructurings considered impaired | $ 481,000 | $ 589,000 | |
Loans modified in troubled debt restructuring | |||
Troubled debt restructurings | |||
Number of Loans | loan | 0 | 0 | |
Number of loans subsequently defaulted | loan | 0 | 0 | |
Additional disclosures | |||
Commitments to lend additional funds to borrowers | $ 0 | ||
One- to four-family residential | |||
Additional disclosures | |||
Loans modified by troubled debt restructurings considered impaired | $ 1,049,000 | $ 1,102,000 | |
One- to four-family residential | Accruing interest | |||
Additional disclosures | |||
Number of loans modified by troubled debt restructurings considered impaired | loan | 3 | 3 | |
Loans modified by troubled debt restructurings considered impaired | $ 568,000 | $ 577,000 | |
One- to four-family residential | Non Accrual Loans | |||
Additional disclosures | |||
Number of loans modified by troubled debt restructurings considered impaired | loan | 2 | 2 | |
Loans modified by troubled debt restructurings considered impaired | $ 481,000 | $ 525,000 | |
Home Equity Loans and Lines of Credit | |||
Additional disclosures | |||
Loans modified by troubled debt restructurings considered impaired | $ 64,000 | ||
Home Equity Loans and Lines of Credit | Non Accrual Loans | |||
Additional disclosures | |||
Number of loans modified by troubled debt restructurings considered impaired | loan | 1 | ||
Loans modified by troubled debt restructurings considered impaired | $ 64,000 | ||
Residential Mortgage | One- to four-family residential | |||
Additional disclosures | |||
Loan deferrals granted, COVID-19 | $ 140,900,000 | ||
Percentage of forbearance loans representing total loans receivable, COVID-19 | 9.50% | ||
Percentage of current loan balance to the current tax-assessed value of the property securing mortgage loans COVID-19 | 45.50% | ||
Percentage of mortgage loans representing total loan portfolio balance | 96.90% | ||
Unallocated | |||
Additional disclosures | |||
Loan deferrals granted, COVID-19 | $ 5,300,000 | ||
Percentage of forbearance loans representing total loans receivable, COVID-19 | 0.40% |
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 | 9 Months Ended | |||
Sep. 30, 2020USD ($)loan | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)loan | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable | |||||
Loans serviced for others | $ 62,700,000 | $ 62,700,000 | $ 65,100,000 | ||
Fair market value of received mortgage-backed securities | 9,800,000 | 9,800,000 | |||
Mortgage servicing assets | 78,000 | 78,000 | |||
Net gain recognized on the securitization | 377,000 | ||||
Loans serviced for others, securitization for which the company continues to hold the related mortgage-backed securities | 40,100,000 | 40,100,000 | $ 37,800,000 | ||
Loans serviced for others, amount of contractually specified servicing fees earned | $ 43,000 | $ 31,000 | $ 134,000 | $ 71,000 | |
Fixed-rate mortgage loans | 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 | $ 22,300,000 | 3,600,000 | |||
Residential mortgage loans sold, recognized gains | $ 610,000 | $ 18,000 | |||
Number of loans | loan | 2 | 2 | 1 | ||
Residential mortgage loans held for sale | $ 834,000 | $ 834,000 | $ 470,000 | ||
Fixed-rate mortgage loans | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Book value | 9,400,000 | 9,400,000 | |||
Mortgage servicing assets | $ 78,000 | 78,000 | |||
Net gain recognized on the securitization | $ 377,000 |
Securities Sold Under Agreeme_3
Securities Sold Under Agreements to Repurchase - Summary of Repurchase Liability by Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Securities sold under agreements to repurchase | ||
Repurchase Liability | $ 10,000 | $ 10,000 |
Weighted Average | ||
Securities sold under agreements to repurchase | ||
Rate (as a percent) | 1.81% | 1.77% |
1 year or less | ||
Securities sold under agreements to repurchase | ||
Repurchase Liability | $ 5,000 | |
1 year or less | Weighted Average | ||
Securities sold under agreements to repurchase | ||
Rate (as a percent) | 1.65% | |
Over 4 years to 5 years | ||
Securities sold under agreements to repurchase | ||
Repurchase Liability | $ 10,000 | $ 5,000 |
Over 4 years to 5 years | Weighted Average | ||
Securities sold under agreements to repurchase | ||
Rate (as a percent) | 1.81% | 1.88% |
Securities Sold Under Agreeme_4
Securities Sold Under Agreements to Repurchase - Summary of Securities Pledged (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
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 | $ 10,001 |
Fair Value of Securities | 10,994 |
Repurchase Liability | 10,000 |
Amount at Risk | $ 994 |
Weighted Average Months to Maturity | 51 months |
Offsetting of Financial Liabi_3
Offsetting of Financial Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Securities sold under agreements to repurchase | ||
Gross Amount of Recognized Liabilities | $ 10,000 | $ 10,000 |
Net Amount of Liabilities Presented in the Balance Sheet | 10,000 | 10,000 |
Gross amount not offset in the balance sheet | ||
Financial Instruments | $ 10,000 | $ 10,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net periodic benefit cost (income) for the year: | ||||
Service cost | $ 22 | $ 26 | ||
Interest cost | 43 | 41 | ||
Net periodic benefit cost | $ 65 | $ 67 | ||
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 | $ 66 | $ 77 | ||
Interest cost | 130 | 122 | ||
Net periodic benefit cost | $ 196 | $ 199 |
Employee Stock Ownership Plan -
Employee Stock Ownership Plan - Loan, Expense and Shares (Details) - USD ($) | Jan. 01, 2009 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Employee Stock Ownership Plan | ||||||
Allocated shares | 495,070 | 495,070 | 466,807 | |||
Unearned shares | 403,698 | 403,698 | 440,397 | |||
Total ESOP shares | 898,768 | 898,768 | 907,204 | |||
Fair value of unearned shares, in thousands | $ 8,167,000 | $ 8,167,000 | $ 13,626,000 | |||
ESOP | ||||||
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 | $ 264,000 | $ 350,000 | $ 905,000 | $ 1,000,000 | ||
ESOP | Prime rate | ||||||
Employee Stock Ownership Plan | ||||||
Variable interest rate | prime rate, as published in The Wall Street Journal |
Employee Stock Ownership Plan_2
Employee Stock Ownership Plan - Nonqualified ESOP Restoration Plan (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
ESOP restoration | Certain executives | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | ||||
Accrued (reversed) benefits | $ 5,000 | $ 67,000 | $ 79,000 | $ 246,000 |
Share-Based Compensation - Plan
Share-Based Compensation - Plan Provisions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-Based Compensation | ||||
Compensation expense | $ 157 | $ 123 | $ 523 | $ 494 |
Income tax benefit | $ 43 | $ 33 | $ 143 | $ 135 |
Number of shares authorized | 1,862,637 | 1,862,637 | ||
2010 Equity Incentive Plan | Vesting period one | ||||
Share-Based Compensation | ||||
Vesting period | 3 years | |||
2010 Equity Incentive Plan | Vesting period two | ||||
Share-Based Compensation | ||||
Vesting period | 5 years | |||
2010 Equity Incentive Plan | Vesting period three | ||||
Share-Based Compensation | ||||
Vesting period | 6 years |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Common Stock | |||||
Stock option activity | |||||
Exercised (in shares) | 21,200 | 81,827 | 203,370 | ||
Stock option activity | |||||
Shares of common stock issued in exchange for stock options and common shares | 27,194 | ||||
Common shares exchanged | 54,633 | ||||
Stock Options | |||||
Stock option activity | |||||
Balance at beginning of period (in shares) | 116,409 | 337,654 | 337,654 | ||
Exercised (in shares) | 81,827 | 203,370 | |||
Expired (in shares) | 31,497 | ||||
Balance at end of period (in shares) | 134,284 | 3,085 | 134,284 | 116,409 | 337,654 |
Options vested and exercisable (in shares) | 3,085 | ||||
Weighted Average Exercise Price | |||||
Balance at beginning of period (in dollars per share) | $ 17.53 | $ 17.51 | $ 17.51 | ||
Exercised (in dollars per share) | 17.36 | 17.36 | |||
Balance at end of period (in dollars per share) | $ 17.74 | 23.62 | $ 17.74 | $ 17.53 | $ 17.51 |
Options vested and exercisable (in dollars per share) | $ 23.62 | ||||
Remaining Contractual Life | |||||
Options outstanding | 1 year 11 months 1 day | 1 year 1 month 6 days | 8 months 19 days | 1 year 8 months 26 days | |
Options vested and exercisable | 1 year 11 months 1 day | ||||
Aggregate Intrinsic Value | |||||
Beginning of period | $ 1,562 | $ 2,859 | $ 2,859 | ||
Exercised | $ 251 | 725 | 2,282 | ||
End of period | 1,455 | (11) | 1,455 | $ 1,562 | $ 2,859 |
Options vested and exercisable | (11) | ||||
Stock option activity | |||||
Intrinsic value of stock options exercised | 251 | 725 | 2,282 | ||
Proceeds received from stock options exercised | 368 | 1,421 | 3,531 | ||
Tax benefits realized from stock options exercised | $ 60 | $ 158 | $ 484 | ||
Common shares exchanged | 81,827 | ||||
Unrecognized compensation costs | $ 0 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Awards (Details) - USD ($) | Mar. 12, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Restricted Stock | ||||
Restricted Stock Awards | ||||
Unvested at beginning of period (in shares) | 20,249 | 16,424 | ||
Granted (in shares) | 13,444 | 10,366 | ||
Vested (in shares) | 9,998 | 6,541 | ||
Unvested at end of period (in shares) | 23,695 | 20,249 | ||
Weighted Average Grant Date Fair Value | ||||
Unvested at beginning of period (in dollars per share) | $ 28.78 | $ 30.26 | ||
Granted (in dollars per share) | 21.05 | 27.30 | ||
Vested (in dollars per share) | 29.16 | 30.14 | ||
Unvested at end of period (in dollars per share) | $ 24.24 | $ 28.78 | ||
Unrecognized compensation | ||||
Vesting period | 3 years | |||
Unrecognized compensation costs | $ 410,000 | |||
Restricted Stock Units Based on a Performance Condition | ||||
Restricted Stock Awards | ||||
Unvested at beginning of period (in shares) | 35,976 | 23,538 | ||
Granted (in shares) | 16,129 | 12,438 | ||
Vested (in shares) | 7,680 | |||
Forfeited (in shares) | 3,840 | |||
Unvested at end of period (in shares) | 40,585 | 35,976 | ||
Weighted Average Grant Date Fair Value | ||||
Unvested at beginning of period (in dollars per share) | $ 29.16 | $ 30.14 | ||
Granted (in dollars per share) | 21.05 | 27.30 | ||
Vested (in dollars per share) | 29.53 | |||
Forfeited (in dollars per share) | 29.53 | |||
Unvested at end of period (in dollars per share) | $ 25.83 | $ 29.16 | ||
Unrecognized compensation | ||||
Unrecognized compensation costs | $ 428,000 | |||
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 | ||||
Unvested at beginning of period (in shares) | 8,994 | 5,884 | ||
Granted (in shares) | 4,032 | 3,110 | ||
Vested (in shares) | 1,197 | |||
Forfeited (in shares) | 1,682 | |||
Unvested at end of period (in shares) | 10,147 | 8,994 | ||
Weighted Average Grant Date Fair Value | ||||
Unvested at beginning of period (in dollars per share) | $ 25.74 | $ 26.42 | ||
Granted (in dollars per share) | 22.16 | 24.45 | ||
Vested (in dollars per share) | 24.44 | |||
Forfeited (in dollars per share) | 24.44 | |||
Unvested at end of period (in dollars per share) | $ 24.69 | $ 25.74 | ||
Unrecognized compensation | ||||
Unrecognized compensation costs | $ 90,000 | |||
Unrecognized compensation costs, period of recognition | 3 years | |||
Assumptions used in the Monte Carlo valuation of PRSUs | ||||
Term used for risk-free rate | 2 years 9 months 18 days | |||
Term used for risk-free rate and historical volatility | 2 years 9 months 25 days | |||
Risk-free interest rate (as a percent) | 0.56% | |||
Closing stock price (in dollars per share) | $ 21.05 | $ 30.94 | ||
Annualized volatility (as a percent) | 18.02% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share | ||||
Net income | $ 4,318 | $ 5,366 | $ 13,082 | $ 16,950 |
Income allotted to participating securities | (23) | (38) | (47) | (112) |
Net income available to common shareholders | $ 4,295 | $ 5,328 | $ 13,035 | $ 16,838 |
Weighted-average number of shares used in: | ||||
Basic earnings per share (in shares) | 9,104,079 | 9,212,119 | 9,144,463 | 9,184,741 |
Dilutive common stock equivalents: | ||||
Stock options and restricted stock units (in shares) | 30,010 | 83,610 | 57,419 | 124,679 |
Diluted earnings per share (in shares) | 9,134,089 | 9,295,729 | 9,201,882 | 9,309,420 |
Net income per common share, basic (in dollars per share) | $ 0.47 | $ 0.58 | $ 1.43 | $ 1.83 |
Net income per common share, diluted (in dollars per share) | $ 0.47 | $ 0.57 | $ 1.42 | $ 1.81 |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Changes in the components of accumulated other comprehensive loss, net of taxes | ||||
Balances at beginning of period | $ (244,027) | $ (241,772) | $ (243,890) | $ (235,079) |
Other comprehensive income, net of taxes | 4 | 21 | 199 | (588) |
Balances at end of period | (246,658) | (245,602) | (246,658) | (245,602) |
Accumulated Other Comprehensive Loss | ||||
Changes in the components of accumulated other comprehensive loss, net of taxes | ||||
Balances at beginning of period | 7,863 | 7,200 | 7,668 | 7,809 |
Other comprehensive income, net of taxes | 4 | 21 | 199 | (588) |
Net current period other comprehensive (gain) loss | 4 | 21 | 199 | (588) |
Balances at end of period | 7,867 | 7,221 | 7,867 | 7,221 |
Other comprehensive income, net of taxes | ||||
Changes in the components of accumulated other comprehensive loss, net of taxes | ||||
Other comprehensive income, net of taxes | 4 | (70) | (22) | (711) |
Unfunded Pension Liability | ||||
Changes in the components of accumulated other comprehensive loss, net of taxes | ||||
Balances at beginning of period | 8,178 | 7,721 | 8,178 | 7,721 |
Balances at end of period | 8,178 | 7,721 | 8,178 | 7,721 |
Amount Reclassified from Other Comprehensive Income | ||||
Changes in the components of accumulated other comprehensive loss, net of taxes | ||||
Other comprehensive income, net of taxes | 91 | 221 | 123 | |
Amounts reclassified from accumulated other comprehensive income, net of taxes | (91) | (221) | (123) | |
Unrealized (Gain)/Loss on Securities | ||||
Changes in the components of accumulated other comprehensive loss, net of taxes | ||||
Balances at beginning of period | (315) | (521) | (510) | 88 |
Other comprehensive income, net of taxes | 4 | (70) | (22) | (711) |
Net current period other comprehensive (gain) loss | 21 | 199 | (588) | |
Balances at end of period | $ (311) | $ (500) | $ (311) | $ (500) |
Other Comprehensive Income an_4
Other Comprehensive Income and Loss - Tax Effect on Each Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Tax effect on each component of other comprehensive loss | ||||
Pretax amount | $ 5 | $ 28 | $ 271 | $ (802) |
Tax | (1) | (7) | (72) | (214) |
After Tax Amount | 4 | 21 | 199 | (588) |
Unrealized (Gain)/Loss on Securities | ||||
Tax effect on each component of other comprehensive loss | ||||
Pretax amount | 5 | (95) | (30) | (969) |
Tax | (1) | 25 | 8 | (258) |
After Tax Amount | $ 4 | (70) | (22) | (711) |
Amount Reclassified from Other Comprehensive Income | ||||
Tax effect on each component of other comprehensive loss | ||||
Pretax amount | 123 | 301 | 167 | |
Tax | (32) | (80) | 44 | |
After Tax Amount | $ 91 | $ 221 | $ 123 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues | ||||
Revenue from contracts with customers | $ 310 | $ 384 | $ 1,006 | $ 1,184 |
Other revenue | 481 | 175 | 881 | 878 |
Total revenue from contracts with customers and other revenue | 791 | 559 | 1,887 | 2,062 |
Service Fees on Loan and Deposit Accounts | ||||
Revenues | ||||
Revenue from contracts with customers | 275 | 347 | 918 | 1,047 |
Other revenue | 453 | 157 | 798 | 380 |
Total | 728 | 504 | 1,716 | 1,427 |
Other | ||||
Revenues | ||||
Revenue from contracts with customers | 35 | 37 | 88 | 137 |
Other revenue | 28 | 18 | 83 | 498 |
Total other noninterest income | $ 63 | $ 55 | $ 171 | $ 635 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases | ||||
Election to use package of lease practical expedients | true | |||
Lease costs: | ||||
Operating lease costs | $ 878 | $ 777 | $ 2,509 | $ 2,342 |
Short-term lease costs | 5 | 21 | 17 | 37 |
Variable lease costs | 38 | 40 | 115 | 93 |
Total lease costs | 921 | 838 | 2,641 | 2,472 |
Cash paid for amounts included in measurement of lease liabilities | 808 | 721 | 2,414 | 2,266 |
Establishment of right-of-use asset, net of incentives | 2,247 | $ 246 | 4,033 | $ 13,254 |
Rental expense, minimum rentals | $ 15,177 | $ 15,177 |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Commitments Under Non-cancellable Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Future minimum rental commitments: | ||
2020 | $ 820 | |
2021 | 2,974 | |
2022 | 2,690 | |
2023 | 2,339 | |
2024 | 2,060 | |
Thereafter | 4,294 | |
Total | 15,177 | |
Less present value discount | 1,047 | |
Present value of leases | $ 14,130 | $ 12,183 |
Leases - Other Related Informat
Leases - Other Related Information (Details) | Sep. 30, 2020 | Sep. 30, 2019 |
Leases | ||
Weighted-average remaining lease term (years) | 6 years | 6 years 2 months 23 days |
Weighted-average discount rate | 2.45% | 2.90% |
Fair Value - Estimated Fair Val
Fair Value - Estimated Fair Values (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Investment securities available for sale, at fair value | $ 3,959 | $ 8,628 |
Investment securities held to maturity | 309,471 | 371,305 |
Carrying Amount | ||
Assets | ||
Cash and cash equivalents | 237,498 | 44,806 |
Investment securities available for sale, at fair value | 3,959 | 8,628 |
Investment securities held to maturity | 292,528 | 363,883 |
Loans held for sale | 834 | 470 |
Loans receivable, net | 1,482,639 | 1,584,784 |
FHLB stock | 8,144 | 8,723 |
FRB stock | 3,145 | 3,128 |
Accrued interest receivable | 7,214 | 5,409 |
Interest rate contracts | 60 | 5 |
Liabilities | ||
Deposits | 1,662,706 | 1,631,933 |
Advances from the Federal Home Loan Bank | 141,000 | 156,000 |
Securities sold under agreements to repurchase | 10,000 | 10,000 |
Accrued interest payable | 99 | 397 |
Interest rate contracts | 60 | 5 |
Estimated Fair Value | ||
Assets | ||
Cash and cash equivalents | 237,498 | 44,806 |
Investment securities available for sale, at fair value | 3,959 | 8,628 |
Investment securities held to maturity | 309,471 | 371,305 |
Loans held for sale | 870 | 480 |
Loans receivable, net | 1,562,422 | 1,627,903 |
FHLB stock | 8,144 | 8,723 |
FRB stock | 3,145 | 3,128 |
Accrued interest receivable | 7,214 | 5,409 |
Interest rate contracts | 60 | 5 |
Liabilities | ||
Deposits | 1,667,045 | 1,632,741 |
Advances from the Federal Home Loan Bank | 145,623 | 156,906 |
Securities sold under agreements to repurchase | 10,484 | 9,968 |
Accrued interest payable | 99 | 397 |
Interest rate contracts | 60 | 5 |
Estimated Fair Value | Level 1 | ||
Assets | ||
Cash and cash equivalents | 237,498 | 44,806 |
Accrued interest receivable | 19 | 32 |
Estimated Fair Value | Level 2 | ||
Assets | ||
Investment securities available for sale, at fair value | 3,959 | 8,628 |
Investment securities held to maturity | 309,471 | 371,305 |
Loans held for sale | 870 | 480 |
FHLB stock | 8,144 | 8,723 |
FRB stock | 3,145 | 3,128 |
Accrued interest receivable | 794 | 952 |
Interest rate contracts | 60 | 5 |
Liabilities | ||
Deposits | 1,285,438 | 1,167,990 |
Advances from the Federal Home Loan Bank | 145,623 | 156,906 |
Securities sold under agreements to repurchase | 10,484 | 9,968 |
Accrued interest payable | 48 | 47 |
Interest rate contracts | 60 | 5 |
Estimated Fair Value | Level 3 | ||
Assets | ||
Loans receivable, net | 1,562,422 | 1,627,903 |
Accrued interest receivable | 6,401 | 4,425 |
Liabilities | ||
Deposits | 381,607 | 464,751 |
Accrued interest payable | $ 51 | $ 350 |
Fair Value - Recurring Basis (D
Fair Value - Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets and Liabilities Measured at Fair Value on Recurring Basis | ||
Investment securities available for sale, at fair value | $ 3,959 | $ 8,628 |
Fair Value, Measurements, Recurring | ||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ||
Interest rate contracts - assets | 60 | 5 |
Interest rate contracts - liabilities | (60) | (5) |
Investment securities available for sale, at fair value | 3,959 | 8,628 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ||
Interest rate contracts - assets | 60 | 5 |
Interest rate contracts - liabilities | (60) | (5) |
Investment securities available for sale, at fair value | $ 3,959 | $ 8,628 |
Fair Value - Nonrecurring Basis
Fair Value - Nonrecurring Basis (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Level 3 | ||
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses | ||
Servicing Asset, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Fair Value, Measurements, Nonrecurring | ||
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses | ||
Mortgage servicing assets, Fair value | $ 452 | $ 452 |
Mortgage servicing assets, Total losses | (53) | (16) |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses | ||
Mortgage servicing assets, Fair value | $ 452 | $ 452 |
Discount rate | Fair Value, Measurements, Nonrecurring | Level 3 | ||
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses | ||
Servicing Asset, Measurement Input | 10.25 | 10.25 |
Prepayment speed (CPR) | Fair Value, Measurements, Nonrecurring | Level 3 | ||
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses | ||
Servicing Asset, Measurement Input | (13.54) | (12.58) |
Annual cost to service (per loan, in dollars) | Fair Value, Measurements, Nonrecurring | Level 3 | ||
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses | ||
Servicing Asset, Measurement Input | 75 | 75 |
Discounted cash flow model | Fair Value, Measurements, Nonrecurring | Level 3 | Mortgage Servicing Assets | ||
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses | ||
Fair value | $ 452 | $ 452 |
Minimum | Discount rate | Fair Value, Measurements, Nonrecurring | Level 3 | ||
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses | ||
Servicing Asset, Measurement Input | 9.25 | 9.25 |
Minimum | Prepayment speed (CPR) | Fair Value, Measurements, Nonrecurring | Level 3 | ||
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses | ||
Servicing Asset, Measurement Input | 9.36 | 11.09 |
Maximum | Discount rate | Fair Value, Measurements, Nonrecurring | Level 3 | ||
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses | ||
Servicing Asset, Measurement Input | 11.25 | 11.25 |
Maximum | Prepayment speed (CPR) | Fair Value, Measurements, Nonrecurring | Level 3 | ||
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses | ||
Servicing Asset, Measurement Input | 18.16 | 14.24 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Subsequent Events | |||||
Quarterly cash dividend declared on common stock (in dollars per share) | $ 0.23 | $ 0.22 | $ 0.69 | $ 0.76 | |
Subsequent event | |||||
Subsequent Events | |||||
Quarterly cash dividend declared on common stock (in dollars per share) | $ 0.23 |