Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 31, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
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 | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,370,944 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001447051 | |
Amendment Flag | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 117,578 | $ 363,543 |
Investment securities available for sale, at fair value | 3,562 | |
Investment securities held to maturity, at amortized cost (fair value of $615,721 and $262,841 at June 30, 2021 and December 31, 2020, respectively) | 609,074 | 247,642 |
Loans held for sale | 540 | 2,195 |
Loans receivable, net | 1,314,871 | 1,406,995 |
Federal Home Loan Bank stock, at cost | 8,173 | 8,144 |
Federal Reserve Bank stock, at cost | 3,152 | 3,145 |
Accrued interest receivable | 6,345 | 6,515 |
Premises and equipment, net | 4,454 | 4,855 |
Right-of-use asset, net | 13,623 | 12,333 |
Bank-owned life insurance | 46,022 | 45,644 |
Deferred income tax assets, net | 3,145 | 3,382 |
Prepaid expenses and other assets | 5,100 | 2,844 |
Total assets | 2,132,077 | 2,110,799 |
Liabilities: | ||
Deposits | 1,678,694 | 1,659,800 |
Advances from the Federal Home Loan Bank | 141,000 | 141,000 |
Securities sold under agreements to repurchase | 10,000 | 10,000 |
Accounts payable and accrued expenses | 28,219 | 29,221 |
Lease liability | 14,433 | 13,119 |
Income taxes payable | 2,354 | 2,161 |
Advance payments by borrowers for taxes and insurance | 6,132 | 6,790 |
Total liabilities | 1,880,832 | 1,862,091 |
Commitments and contingencies | ||
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 9,421,560 and 9,513,867 shares at June 30, 2021 and December 31, 2020, respectively | 94 | 95 |
Additional paid-in capital | 58,860 | 61,153 |
Unearned ESOP shares | (3,670) | (3,915) |
Retained earnings | 204,928 | 200,066 |
Accumulated other comprehensive loss | (8,967) | (8,691) |
Total stockholders' equity | 251,245 | 248,708 |
Total liabilities and stockholders' equity | $ 2,132,077 | $ 2,110,799 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Consolidated Balance Sheets (Unaudited) | ||
Investment securities held to maturity, fair value (in dollars) | $ 615,721 | $ 262,841 |
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 | 9,421,560 | 9,513,867 |
Common stock, shares outstanding | 9,421,560 | 9,513,867 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest income: | ||||
Loans | $ 12,134 | $ 15,225 | $ 25,183 | $ 30,682 |
Investment securities | 2,394 | 2,610 | 4,219 | 5,390 |
Other investments | 228 | 170 | 459 | 514 |
Total interest income | 14,756 | 18,005 | 29,861 | 36,586 |
Interest expense: | ||||
Deposits | 1,090 | 2,364 | 2,407 | 5,488 |
Advances from the Federal Home Loan Bank | 537 | 829 | 1,073 | 1,724 |
Securities sold under agreements to repurchase | 45 | 46 | 91 | 91 |
Total interest expense | 1,672 | 3,239 | 3,571 | 7,303 |
Net interest income | 13,084 | 14,766 | 26,290 | 29,283 |
(Reversal of provision) provision for loan losses | (372) | 1,395 | (1,285) | 1,612 |
Net interest income after (reversal of provision) provision for loan losses | 13,456 | 13,371 | 27,575 | 27,671 |
Noninterest income: | ||||
Income on bank-owned life insurance | 190 | 201 | 378 | 403 |
Gain on sale of investment securities | 911 | 419 | 1,437 | 597 |
Gain on sale of loans | 26 | 259 | 446 | 666 |
Other | 70 | 47 | 180 | 108 |
Total noninterest income | 1,727 | 1,461 | 3,966 | 2,762 |
Noninterest expense: | ||||
Salaries and employee benefits | 5,560 | 5,264 | 11,083 | 10,948 |
Occupancy | 1,572 | 1,626 | 3,219 | 3,271 |
Equipment | 1,064 | 1,164 | 2,194 | 2,284 |
Federal deposit insurance premiums | 142 | 74 | 283 | 74 |
Other general and administrative expenses | 1,274 | 843 | 2,387 | 1,932 |
Total noninterest expense | 9,612 | 8,971 | 19,166 | 18,509 |
Income before income taxes | 5,571 | 5,861 | 12,375 | 11,924 |
Income taxes | 1,513 | 1,570 | 3,304 | 3,160 |
Net income | $ 4,058 | $ 4,291 | $ 9,071 | $ 8,764 |
Basic earnings per share (in dollars per share) | $ 0.44 | $ 0.47 | $ 0.99 | $ 0.95 |
Diluted earnings per share (in dollars per share) | 0.44 | 0.47 | 0.99 | 0.94 |
Cash dividends declared per common share (in dollars per share) | $ 0.23 | $ 0.23 | $ 0.46 | $ 0.46 |
Basic weighted-average shares outstanding (in shares) | 9,117,467 | 9,092,287 | 9,124,086 | 9,164,877 |
Diluted weighted-average shares outstanding (in shares) | 9,162,348 | 9,139,135 | 9,166,003 | 9,228,421 |
Service Fees on Loan and Deposit Accounts | ||||
Noninterest income: | ||||
Service and other fees | $ 530 | $ 535 | $ 1,525 | $ 988 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Consolidated Statements of Comprehensive Income (Unaudited) | ||||
Net income | $ 4,058 | $ 4,291 | $ 9,071 | $ 8,764 |
Unrealized gain (loss) on securities, net of tax | 19 | (3) | 26 | |
Amount reclassified from other comprehensive income, net of tax | (190) | (112) | (273) | (221) |
Other comprehensive loss, net of tax | (190) | (93) | (276) | (195) |
Comprehensive income | $ 3,868 | $ 4,198 | $ 8,795 | $ 8,569 |
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, 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 | 8,764 | 8,764 | ||||
Other comprehensive loss | (195) | (195) | ||||
Cash dividends declared | (4,224) | (4,224) | ||||
Share-based compensation | 366 | 366 | ||||
Share-based compensation (in shares) | 18,875 | |||||
Allocation of ESOP shares | 396 | 245 | 641 | |||
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 Jun. 30, 2020 | $ 95 | 60,606 | (4,159) | 195,348 | (7,863) | 244,027 |
Balance (in shares) at Jun. 30, 2020 | 9,513,867 | |||||
Balance at Mar. 31, 2020 | $ 96 | 62,715 | (4,282) | 193,160 | (7,770) | 243,919 |
Balance (in shares) at Mar. 31, 2020 | 9,593,332 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 4,291 | 4,291 | ||||
Other comprehensive loss | (93) | (93) | ||||
Cash dividends declared | (2,103) | (2,103) | ||||
Share-based compensation | 209 | 209 | ||||
Share-based compensation (in shares) | 3,204 | |||||
Allocation of ESOP shares | 179 | 123 | 302 | |||
Repurchase of shares of common stock | $ (2) | (3,526) | (3,528) | |||
Repurchase of shares of common stock (in shares) | (141,949) | |||||
Exercise of options for common stock | $ 1 | 1,029 | 1,030 | |||
Exercise of options for common stock (in shares) | 59,280 | |||||
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 | |||||
Balance at Dec. 31, 2020 | $ 95 | 61,153 | (3,915) | 200,066 | (8,691) | 248,708 |
Balance (in shares) at Dec. 31, 2020 | 9,513,867 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 9,071 | 9,071 | ||||
Other comprehensive loss | (276) | (276) | ||||
Cash dividends declared | (4,209) | (4,209) | ||||
Share-based compensation | 205 | 205 | ||||
Share-based compensation (in shares) | 20,437 | |||||
Allocation of ESOP shares | 387 | 245 | 632 | |||
Repurchase of shares of common stock | $ (1) | (2,885) | (2,886) | |||
Repurchase of shares of common stock (in shares) | (112,744) | |||||
Balance at Jun. 30, 2021 | $ 94 | 58,860 | (3,670) | 204,928 | (8,967) | 251,245 |
Balance (in shares) at Jun. 30, 2021 | 9,421,560 | |||||
Balance at Mar. 31, 2021 | $ 95 | 61,141 | (3,792) | 202,985 | (8,777) | 251,652 |
Balance (in shares) at Mar. 31, 2021 | 9,522,833 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 4,058 | 4,058 | ||||
Other comprehensive loss | (190) | (190) | ||||
Cash dividends declared | (2,115) | (2,115) | ||||
Share-based compensation | 92 | 92 | ||||
Allocation of ESOP shares | 193 | 122 | 315 | |||
Repurchase of shares of common stock | $ (1) | (2,566) | (2,567) | |||
Repurchase of shares of common stock (in shares) | (101,273) | |||||
Balance at Jun. 30, 2021 | $ 94 | $ 58,860 | $ (3,670) | $ 204,928 | $ (8,967) | $ 251,245 |
Balance (in shares) at Jun. 30, 2021 | 9,421,560 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Consolidated Statements of Stockholders' Equity, Share Data | ||||
Cash dividends declared per common share (in dollars per share) | $ 0.23 | $ 0.23 | $ 0.46 | $ 0.46 |
Common Stock | ||||
Consolidated Statements of Stockholders' Equity, Share Data | ||||
Allocation of ESOP shares, shares | 12,233 | 12,233 | 24,467 | 24,466 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 9,071 | $ 8,764 |
Adjustments to reconcile net income to net cash from operating activities: | ||
(Reversal of provision) provision for loan losses | (1,285) | 1,612 |
Depreciation and amortization | 587 | 589 |
Deferred income tax expense (benefit) | 338 | (175) |
Amortization of fees, discounts, and premiums, net | (253) | (169) |
Amortization of right-of-use asset | 1,551 | 1,454 |
Origination of loans held for sale | (12,761) | (14,603) |
Proceeds from sales of loans held for sale | 14,862 | 12,493 |
Gain on sale of loans, net | (446) | (666) |
Gain on sale of investment securities available for sale | (339) | (290) |
Gain on sale of investment securities held to maturity | (1,098) | (307) |
ESOP expense | 632 | 641 |
Share-based compensation expense | 205 | 366 |
Decrease (increase) in accrued interest receivable | 170 | (1,060) |
Net increase in bank-owned life insurance | (378) | (403) |
Net (increase) decrease in prepaid expenses and other assets | (2,256) | 171 |
Net (decrease) increase in accounts payable and accrued expenses | (324) | 747 |
Net decrease in lease liability | (1,527) | (1,427) |
Net decrease in advance payments by borrowers for taxes and insurance | (658) | (74) |
Net increase in income taxes payable | 193 | 2,557 |
Net cash from operating activities | 6,284 | 10,220 |
Cash flows from investing activities: | ||
Purchases of investment securities held to maturity | (432,614) | |
Principal repayments on investment securities held to maturity | 56,243 | 36,683 |
Principal repayments on investment securities available for sale | 198 | 760 |
Proceeds from sale of investment securities held to maturity | 16,031 | 4,692 |
Proceeds from sale of investment securities available for sale | 3,330 | 3,668 |
Principal repayments on loans receivable, net of loan originations | 93,664 | 36,396 |
Purchases of Federal Home Loan Bank stock | (29) | (21) |
Proceeds from redemption of Federal Home Loan Bank stock | 600 | |
Purchases of Federal Reserve Bank stock | (7) | (6) |
Purchases of premises and equipment | (186) | (715) |
Net cash from investing activities | (263,370) | 82,057 |
Cash flows from financing activities: | ||
Net increase in deposits | 18,894 | 13,379 |
Repayments of advances from the Federal Home Loan Bank | (15,000) | |
Proceeds from securities sold under agreements to repurchase | 5,000 | |
Repayments of securities sold under agreements to repurchase | (5,000) | |
Repurchases of common stock | (2,567) | (5,000) |
Cash dividends paid | (5,206) | (4,270) |
Net cash from financing activities | 11,121 | (10,891) |
Net (decrease) increase in cash and cash equivalents | (245,965) | 81,386 |
Cash and cash equivalents at beginning of the period | 363,543 | 44,806 |
Cash and cash equivalents at end of the period | 117,578 | 126,192 |
Cash paid for: | ||
Interest on deposits and borrowings | 3,556 | 7,625 |
Income taxes | 2,773 | 778 |
Supplemental disclosure of noncash investing and financing activities: | ||
Company stock acquired through stock swap and net settlement transactions | 1,421 | |
Company stock repurchased through stock swap and net settlement transactions | 319 | 1,636 |
Loans securitized into investment securities | 9,431 | |
Establishment of right-of-use asset, net of incentives | 2,841 | 1,786 |
Establishment of lease liability | $ 2,841 | $ 1,786 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2021 | |
Organization | |
Organization | (1) Organization ā Territorial Bancorp Inc. is a Maryland corporation and is the holding company for Territorial Savings Bank. Territorial Savings Bank is a Hawaii state-chartered bank headquartered in Honolulu, Hawaii and is a member of the Federal Reserve System. Territorial Savings Bank has |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Basis of Presentation | |
Basis of Presentation | (2) Basis of Presentation ā The accompanying unaudited interim condensed 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, 2020. 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by Congress and signed into law 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. Eligible loan modifications under the CARES Act must be related to the COVID-19 pandemic and the borrower must not have been more than 30 days past due as of December 31, 2019. Loan modifications under the CARES Act must be executed during the period from March 1, 2020 to the earlier of December 31, 2020 or 60 days after the end of the national emergency. 1, 2022. Banking regulators issued similar guidance, which also clarified that a COVID-19 loan modification should not be considered a troubled debt restructuring if the borrower was not more than 30 days past due on payments at the time the loan modification program was implemented and the modification is considered short-term (not to exceed six months) ā |
Cash and Cash Equivalents
Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, December 31, (Dollars in thousands) 2021 2020 Cash and due from banks ā $ 12,441 ā $ 14,355 ā Interest-earning deposits in other banks ā 105,137 ā 349,188 ā Cash and cash equivalents ā $ 117,578 ā $ 363,543 ā ā Interest-earning deposits in other banks consist primarily of deposits at the Federal Reserve Bank of San Francisco. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021: 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 $ 609,074 ā $ 8,822 $ (2,175) ā $ 615,721 ā Total ā $ 609,074 ā $ 8,822 $ (2,175) ā $ 615,721 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 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 $ 3,185 ā $ 377 $ ā ā $ 3,562 ā Total ā $ 3,185 ā $ 377 $ ā ā $ 3,562 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 $ 247,642 ā $ 15,200 $ (1) ā $ 262,841 ā Total ā $ 247,642 ā $ 15,200 $ (1) ā $ 262,841 ā ā The amortized cost and estimated fair value of investment securities by maturity date at June 30, 2021 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 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 51 ā 50 ā Due after 10 years ā 609,023 ā 615,671 ā Total ā $ 609,074 ā $ 615,721 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 Six Months Ended ā ā ā June 30, ā June 30, ā (Dollars in thousands) 2021 2020 2021 2020 Proceeds from sales ā $ 13,064 ā $ 5,710 ā $ 19,361 ā $ 8,360 ā Gross gains ā 911 ā 419 ā 1,437 ā 597 ā Gross losses ā ā ā ā ā ā ā ā ā ā During the six months ended June 30, 2021 and 2020, the Company sold $14.9 million and $4.4 million, respectively, of held-to-maturity mortgage-backed securities and recorded gains of $1.1 million and $307,000, respectively. The sale of the mortgage-backed securities, for which the Company had already collected a substantial portion of the outstanding purchased principal (at least 85%), were in accordance with the Investments ā Debt and Equity Securities topic of the FASB ASC and do not taint managementās assertion of its intent to hold the remaining securities in the held-to-maturity portfolio to maturity. ā During the six months ended June 30, 2021 and 2020, the Company sold $3.0 million and $3.4 million, respectively, of available-for-sale mortgage-backed securities and recorded gains of $339,000 and $290,000, respectively. ā Investment securities with amortized costs of $164.4 million and $192.7 million at June 30, 2021 and December 31, 2020, 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 which were in an unrealized loss position at June 30, 2021 and December 31, 2020. The Company does not intend to sell held-to-maturity 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 June 30, 2021: 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 $ 377,389 ā $ (2,174) ā $ 45 ā $ (1) 27 ā $ 377,434 ā $ (2,175) 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, 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 $ 678 ā $ (1) ā $ 4 ā $ ā 6 ā $ 682 ā $ (1) 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 June 30, 2021 and December 31, 2020. ā During the six months ended June 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. A net gain of was recognized on the securitization transaction and recorded in gain on sale of loans in the Consolidated Statements of Income. There were |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, ā December 31, ā (Dollars in thousands) 2021 2020 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 $ 1,276,414 ā $ 1,366,507 ā Multi-family residential ā 6,772 ā 7,245 ā Construction, commercial and other ā 19,196 ā 19,074 ā Home equity loans and lines of credit ā 7,727 ā 9,376 ā Total real estate loans ā 1,310,109 ā 1,402,202 ā Other loans: ā ā ā ā ā ā ā Loans on deposit accounts ā 331 ā 235 ā Consumer and other loans ā 8,762 ā 10,086 ā Total other loans ā 9,093 ā 10,321 ā Less: ā ā ā ā ā ā ā Net unearned fees and discounts ā (1,362) ā (1,266) ā Allowance for loan losses ā (2,969) ā (4,262) ā Total unearned fees, discounts and allowance for loan losses ā (4,331) ā (5,528) ā Loans receivable, net ā $ 1,314,871 ā $ 1,406,995 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 June 30, 2021: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance, beginning of period ā $ 2,380 ā $ 396 ā $ 1 ā $ 140 ā $ 429 ā $ 3,346 ā (Reversal of provision) provision for loan losses ā (359) ā 38 ā ā ā (2) ā (49) ā (372) ā ā ā 2,021 ā 434 ā 1 ā 138 ā 380 ā 2,974 ā Charge-offs ā ā ā ā ā ā ā (7) ā ā ā (7) 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 (5) ā ā ā (5) ā Balance, end of period ā $ 2,021 ā $ 434 ā $ 1 ā $ 133 ā $ 380 ā $ 2,969 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Six months ended June 30, 2021: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance, beginning of period ā $ 3,102 ā $ 406 ā $ 1 ā $ 146 ā $ 607 ā $ 4,262 ā (Reversal of provision) provision for loan losses ā (1,081) ā 28 ā ā ā (5) ā (227) ā (1,285) ā ā ā 2,021 ā 434 ā 1 ā 141 ā 380 ā 2,977 ā Charge-offs ā ā ā ā ā ā ā (10) ā ā ā (10) 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 (8) ā ā ā (8) ā Balance, end of period ā $ 2,021 ā $ 434 ā $ 1 ā $ 133 ā $ 380 ā $ 2,969 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 June 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 $ 1,863 ā $ 452 ā $ 1 ā $ 172 ā $ 430 ā $ 2,918 ā Provision (reversal of provision) for loan losses ā 1,157 ā 7 ā (10) ā 92 ā 149 ā 1,395 ā ā ā 3,020 ā 459 ā (9) ā 264 ā 579 ā 4,313 ā Charge-offs ā ā ā ā ā ā ā (68) ā ā ā (68) ā Recoveries ā ā ā ā ā 10 ā 1 ā ā ā 11 ā Net recoveries (charge-offs) ā ā ā ā ā 10 ā (67) ā ā ā (57) ā Balance, end of period ā $ 3,020 ā $ 459 ā $ 1 ā $ 197 ā $ 579 ā $ 4,256 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Six months ended June 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 1,279 ā (52) ā (10) ā 221 ā 174 ā 1,612 ā ā ā 3,020 ā 459 ā (9) ā 275 ā 579 ā 4,324 ā Charge-offs ā ā ā ā ā ā ā (80) ā ā ā (80) 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 (78) ā ā ā (68) ā Balance, end of period ā $ 3,020 ā $ 459 ā $ 1 ā $ 197 ā $ 579 ā $ 4,256 ā ā Management considers the allowance for loan losses at June 30, 2021 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. ā The table below presents the balance in the allowance for loan losses and the recorded investment in loans, net of unearned fees and discounts, 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 June 30, 2021: 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 2,021 ā 434 ā 1 ā 133 ā 380 ā 2,969 ā Total ending allowance balance ā $ 2,021 ā $ 434 ā $ 1 ā $ 133 ā $ 380 ā $ 2,969 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 $ 4,728 ā $ ā ā $ 20 ā $ ā ā $ ā ā $ 4,748 ā Collectively evaluated for impairment ā 1,277,129 ā 19,159 ā 7,711 ā 9,093 ā ā ā 1,313,092 ā Total ending loan balance ā $ 1,281,857 ā $ 19,159 ā $ 7,731 ā $ 9,093 ā $ ā ā $ 1,317,840 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 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 3,102 ā 406 ā 1 ā 146 ā 607 ā 4,262 ā Total ending allowance balance ā $ 3,102 ā $ 406 ā $ 1 ā $ 146 ā $ 607 ā $ 4,262 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 $ 4,947 ā $ ā ā $ 23 ā $ ā ā $ ā ā $ 4,970 ā Collectively evaluated for impairment ā 1,367,576 ā 19,024 ā 9,353 ā 10,334 ā ā ā 1,406,287 ā Total ending loan balance ā $ 1,372,523 ā $ 19,024 ā $ 9,376 ā $ 10,334 ā $ ā ā $ 1,411,257 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 June 30, 2021: 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 $ 4,728 ā $ 5,266 ā Home equity loans and lines of credit ā 20 ā 31 ā Total ā $ 4,748 ā $ 5,297 ā ā ā ā ā ā ā ā ā December 31, 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 $ 4,947 ā $ 5,425 ā Home equity loans and lines of credit ā ā 23 ā ā 32 ā Total ā $ 4,970 ā $ 5,457 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 Six Months Ended June 30, June 30, Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized 2021: 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 $ 4,746 ā $ 7 ā $ 4,777 ā $ 20 ā Home equity loans and lines of credit ā 21 ā ā ā 21 ā ā ā Total ā $ 4,767 ā $ 7 ā $ 4,798 ā $ 20 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 2020: 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 $ 1,321 ā $ 9 ā $ 1,334 ā $ 17 ā Home equity loans and lines of credit ā ā 25 ā ā ā 25 ā ā ā Total ā $ 1,346 ā $ 9 ā $ 1,359 ā $ 17 ā ā ā There were no loans individually evaluated for impairment with a related allowance for loan loss as of June 30, 2021 or December 31, 2020. 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 11 nonaccrual loans with a book value of $4.2 million as of June 30, 2021 and 12 nonaccrual loans with a book value of $4.4 million as of December 31, 2020. The Company collected interest on nonaccrual loans of during the six months ended June 30, 2021 and 2020, 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 six months ended June 30, 2021 and 2020, respectively, had the loans been accruing interest. The Company did ā The table below presents the aging of loans and accrual status by class of loans, net of unearned fees and discounts. Loans with a formal loan payment deferral plan in place are not considered contractually past due or delinquent if the borrower is in compliance with the loan payment deferral plan. 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 June 30, 2021: 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 $ 690 ā $ 121 ā $ 99 ā $ 910 ā $ 1,274,187 ā $ 1,275,097 ā $ 4,170 ā $ ā ā Multi-family residential mortgages ā ā ā ā ā ā ā ā ā 6,760 ā 6,760 ā ā ā ā ā Construction, commercial and other mortgages ā ā ā ā ā ā ā ā ā 19,159 ā 19,159 ā ā ā ā ā Home equity loans and lines of credit ā ā ā ā ā ā ā ā ā 7,731 ā 7,731 ā 20 ā ā ā Loans on deposit accounts ā ā ā ā ā ā ā ā ā 331 ā 331 ā ā ā ā ā Consumer and other ā 1 ā ā ā ā ā 1 ā 8,761 ā 8,762 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 $ 691 ā $ 121 ā $ 99 ā $ 911 ā $ 1,316,929 ā $ 1,317,840 ā $ 4,190 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, 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 $ 376 ā $ 152 ā $ 240 ā $ 768 ā $ 1,364,527 ā $ 1,365,295 ā $ 4,382 ā $ ā ā Multi-family residential mortgages ā ā ā ā ā ā ā ā ā 7,228 ā 7,228 ā ā ā ā ā Construction, commercial and other mortgages ā ā ā ā ā ā ā ā ā 19,024 ā 19,024 ā ā ā ā ā Home equity loans and lines of credit ā ā ā 23 ā ā ā 23 ā 9,353 ā 9,376 ā 23 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 1 ā ā ā ā ā 1 ā 10,098 ā 10,099 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 $ 377 ā $ 175 ā $ 240 ā $ 792 ā $ 1,410,465 ā $ 1,411,257 ā $ 4,405 ā $ ā 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 six months ended June 30, 2021 or 2020. There were new troubled debt restructurings within the six months ended June 30, 2021 or 2020 that subsequently defaulted. Loan modifications under the CARES Act and the Interagency Statements issued by bank regulators in 2020 are discussed below. ā The table below summarizes outstanding 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 June 30, 2021: ā ā ā ā ā ā ā ā ā ā One- to four-family residential mortgages ā 3 ā $ 558 ā ā 2 ā $ 439 ā $ 997 Total ā 3 ā $ 558 ā ā 2 ā $ 439 ā $ 997 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā ā One- to four-family residential mortgages ā 3 ā $ 565 ā ā 2 ā $ 467 ā $ 1,032 Total ā 3 ā $ 565 ā ā 2 ā $ 467 ā $ 1,032 ā There were no delinquent troubled debt restructurings as of June 30, 2021 or December 31, 2020. Restructurings include deferrals of interest and/or principal payments and temporary or permanent reductions in interest rates due to the financial difficulties of the borrowers. At June 30, 2021, we had ā 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. Eligible loan modifications under the CARES Act must be related to the COVID-19 pandemic and the borrower must not have been more than 30 days past due as of December 31, 2019. Loan modifications under the CARES Act must be executed during the period from March 1, 2020 to the earlier of 60 days after the end of the national emergency or January 1, 2022. Banking regulators issued similar guidance, which also clarified that a COVID-19 related loan modification should not be considered a troubled debt restructuring if the borrower was not more than 30 days past due on payments at the time the loan modification program was implemented and the modification is considered short-term (not to exceed six months). The Company uses the provisions of the CARES Act and the Interagency Statements to account for the eligible loans receiving modifications. ā The Company has granted loan payment deferrals to borrowers who have been affected by the COVID-19 pandemic. At June 30, 2021, the Company had outstanding loan payment deferrals on $104.7 million of loans, which represented 8.0% of total loans receivable. Of these loans with payment deferrals, $100.3 million were one- to four-family residential mortgage loans and $4.4 million were non-residential mortgage loans, which represented 7.6% and 0.3% of total loans receivable, respectively. The loans on which the Company has granted loan payment deferrals are included in the ALLL calculation. However, loans performing under a loan payment deferral agreement are not considered contractually past due and are excluded from the past due statistics above. ā The ratio of the current loan balance to the current tax-assessed value of the property securing the mortgage loans in the payment deferral program averaged 56.2% at June 30, 2021. At June 30, 2021, one- to four-family residential mortgage loans represented 97.1% of the Companyās total loan portfolio balance with a ratio of the current loan balance to the current tax assessed value of the property securing these loans averaging 45.7%. All of the Companyās residential mortgage loans are secured by real estate in Hawaii. ā As of June 30, 2021, of the $100.3 million total one- to four-family mortgage loans in the loan payment deferral program, $74.7 million, or 74.5% , had resumed making full principal and interest payments. The interest on these loans that accrued during the deferral period will be repaid over subsequent years. , of the total mortgage loans in the loan payment deferral program were making interest-only payments. , of the total mortgage loans in the loan payment deferral program continued to make escrow-only payments. ā As of June 30, 2021, $3.9 million of the $4.4 million commercial mortgage, commercial and industrial and home equity lines of credit in the loan payment deferral program had resumed making full principal and interest payments. A ā Since the beginning of the year, we have not seen a significant increase in loan delinquencies, significant changes in deposits or significant drawdowns on any lines of credit. Loan delinquencies do not include loans requesting payment deferral because of the COVID-19 pandemic. We do not have any commercial loans to hotels, businesses in the transportation industry, restaurants or retail establishments. ā The Company had no real estate owned as of June 30, 2021 or December 31, 2020. There was a in the process of foreclosure at June 30, 2021. 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 six months ended June 30, 2021 and 2020, the Company sold mortgage loans held for sale with principal balances of $14.5 million and $12.3 million, respectively, and recognized gains of $446,000 and $289,000 , respectively. The Company had ā During the six months ended June 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 was recognized on the transaction. There were no securitization transactions in the six months ended June 30, 2021. ā The Company serviced loans for others with principal balances of $48.8 million at June 30, 2021 and $56.7 million at December 31, 2020. Of these amounts, million of loan balances relate to securitizations for which the Company continues to hold the related mortgage-backed securities at June 30, 2021 and December 31, 2020, respectively. The amount of contractually specified servicing fees earned for the six months ended June 30, 2021 and 2020 was , respectively. The amount of contractually specified servicing fees earned for the three months ended June 30, 2021 and 2020 was , respectively. The fees are reported in service and other fees in the Consolidated Statements of Income. |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 December 31, 2020 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 Over 3 year to 4 years ā $ 10,000 1.81 % $ 5,000 1.88 % ā Over 4 year to 5 years ā ā ā ā 5,000 1.73 % ā Total ā $ 10,000 1.81 % $ 10,000 1.81 % 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 June 30, 2021. 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 $ 10,697 ā $ 11,290 ā $ 10,000 ā $ 1,290 42 ā ā |
Offsetting of Financial Liabili
Offsetting of Financial Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021: 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, 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 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2021 | |
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 Six Months Ended June 30, June 30, (Dollars in thousands) 2021 2020 2021 2020 Net periodic benefit cost for the period: ā ā ā ā ā ā ā ā ā ā ā ā ā Service cost ā $ 3 ā $ 22 ā $ 5 ā $ 44 ā Interest cost ā 45 ā 44 ā 90 ā 87 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 $ 48 ā $ 66 ā $ 95 ā $ 131 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and 2020 amounted to , respectively. ā Shares held by the ESOP trust were as follows: ā ā ā ā ā ā ā ā ā June 30, December 31, 2021 2020 Allocated shares ā 516,403 ā 507,304 ā Unearned shares ā 366,997 ā 391,464 ā Total ESOP shares ā 883,400 ā 898,768 ā Fair value of unearned shares, in thousands ā $ 9,531 ā $ 9,407 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 June 30, 2021 and 2020 we accrued , respectively, for the ESOP restoration plan. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
2010 Equity Incentive Plan | |
Share-Based Compensation | |
Share-Based Compensation | (11) Share-Based Compensation ā The shareholders of Territorial Bancorp Inc. adopted the 2010 Equity Incentive Plan on August 19, 2010 and the 2019 Equity Incentive Plan on May 16, 2019. These plans provide for the award of stock options and restricted stock to key officers and directors. In accordance with the Compensation ā Stock Compensation topic of the FASB ASC, the cost of the equity incentive plans 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 Consolidated Statements 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 Six Months Ended June 30, June 30, (In thousands) 2021 2020 2021 2020 Compensation expense ā $ 92 ā $ 209 ā $ 205 ā $ 366 ā Income tax benefit ā 25 ā 57 ā 56 ā 100 ā ā Shares of our common stock issued under the 2010 and 2019 Equity Incentive Plans shall be authorized shares. The maximum number of shares that will be awarded under the plans will be ā Stock Options ā The table below presents the stock option activity for the six months ended June 30, 2021 and 2020: 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, 2020 3,085 ā $ 23.62 1.67 ā $ 1 ā Granted ā ā ā ā ā ā ā Exercised ā ā ā ā ā ā ā Forfeited ā ā ā ā ā ā ā Expired ā ā ā ā ā ā ā Options outstanding at June 30, 2021 ā 3,085 ā $ 23.62 1.17 ā $ 7 ā ā ā ā ā ā ā ā ā ā ā ā ā 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 ā ā ā ā ā ā ā Options outstanding at June 30, 2020 34,582 ā $ 17.92 0.35 ā $ 203 ā ā ā ā ā ā ā ā ā ā ā ā ā Options vested and exercisable at June 30, 2021 3,085 ā $ 23.62 1.17 ā $ 7 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 Six Months Ended June 30, June 30, (In thousands) 2021 2020 2021 2020 Intrinsic value of stock options exercised ā $ ā ā $ 437 ā $ ā ā $ 725 ā Proceeds received from stock options exercised ā ā ā 1,029 ā ā ā 1,421 ā Tax benefits realized from stock options exercised ā ā ā 105 ā ā ā 158 ā Total fair value of stock options that vested ā ā ā ā ā ā ā ā ā ā As of June 30, 2021, the Company had no unrecognized compensation costs related to the stock option plans. 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 time-based restricted stock activity: ā ā ā ā ā ā ā ā Weighted Time-Based Average Grant Restricted Date Fair Stock Value Unvested at December 31, 2020 23,695 ā $ 24.24 ā Granted 10,849 ā 26.67 ā Vested 11,336 ā 25.81 ā Forfeited ā ā ā ā Unvested at June 30, 2021 23,208 ā $ 24.61 ā ā ā ā ā ā ā ā 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 June 30, 2020 23,695 ā $ 24.24 ā ā During the six months ended June 30, 2021, the Company issued 10,849 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 the grant. ā As of June 30, 2021, the Company had $490,000 of unrecognized compensation costs related to restricted stock. ā The table below presents the performance-based restricted stock units (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, 2020 40,585 ā $ 25.83 Granted 13,016 ā 26.67 Vested 7,473 ā 30.73 Forfeited 4,545 ā 30.73 Unvested at June 30, 2021 41,583 ā $ 24.68 ā ā ā ā ā ā 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 June 30, 2020 40,585 ā $ 25.83 ā During the six months ended June 30, 2021, the Company issued 13,016 PRSUs to certain members of executive management under the 2019 Equity Incentive Plan. These PRSUs will vest three years after they are granted 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 0% to 150% of the target award. For the PRSUs, an estimate is made of the number of shares expected to vest based on the probability that the performance criteria will be achieved to determine the amount of compensation expense to be recognized. This estimate is re-evaluated quarterly and total compensation expense is adjusted for any change in the current period. ā The fair value of these PRSUs is based on the fair value of the Companyās stock on the date of grant. As of June 30, 2021, the Company had $391,000 of unrecognized compensation costs related to these PRSUs. Performance will be measured over a three-year performance period and will be cliff vested. ā 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, 2020 10,147 ā $ 24.69 Granted 3,254 ā ā 25.94 Vested 1,628 ā 28.32 Forfeited 1,377 ā 28.32 Unvested at June 30, 2021 10,396 ā $ 24.03 ā ā ā ā ā ā 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 22.44 Unvested at June 30, 2020 10,147 ā $ 24.69 ā During the six months ended June 30, 2021, the Company also issued 3,254 PRSUs to certain members of executive management under the 2019 Equity Incentive Plan. These PRSUs will vest three years after they are granted 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: April 5, 2021 Performance period: January 1, 2021 to December 31, 2023 2.74 year risk-free rate on grant date: 0.32% December 31, 2020 closing price: $24.03 Closing stock price on the date of grant: $26.77 Annualized volatility (based on 2.74 year historical volatility as of the grant date): 38.5% ā As of June 30, 2021, the Company had $99,000 of unrecognized compensation costs related to the PRSUs that are based on a market condition. Performance will be measured over a three-year performance period and will be cliff vested. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
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 Six Months Ended June 30, June 30, (Dollars in thousands, except per share data) 2021 2020 2021 2020 Net income ā $ 4,058 ā $ 4,291 ā $ 9,071 ā $ 8,764 ā Income allocated to participating securities ā ā (21) ā ā (37) ā ā (24) ā ā (48) ā Net income available to common shareholders ā $ 4,037 ā $ 4,254 ā $ 9,047 ā $ 8,716 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 9,117,467 ā 9,092,287 ā 9,124,086 ā 9,164,877 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 44,881 ā 46,848 ā 41,917 ā 63,544 ā Diluted earnings per share ā 9,162,348 ā 9,139,135 ā 9,166,003 ā 9,228,421 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Net income per common share, basic ā $ 0.44 ā $ 0.47 ā $ 0.99 ā $ 0.95 ā Net income per common share, diluted ā $ 0.44 ā $ 0.47 ā $ 0.99 ā $ 0.94 ā ā |
Other Comprehensive Income and
Other Comprehensive Income and Loss | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 ā ā ā ā ā ā ā ā ā ā Balances at beginning of period ā $ 8,967 ā $ (190) ā $ 8,777 ā Amounts reclassified from other comprehensive income, net of taxes ā ā ā 190 ā 190 ā Net current period other comprehensive loss ā ā ā 190 ā 190 ā Balances at end of period ā $ 8,967 ā $ ā ā $ 8,967 ā ā ā ā ā ā ā ā ā ā ā ā Three months ended June 30, 2020 ā ā ā ā ā ā ā ā ā ā Balances at beginning of period ā $ 8,178 ā $ (408) ā $ 7,770 ā Other comprehensive income, net of taxes ā ā ā (19) ā (19) ā Amounts reclassified from other comprehensive income, net of taxes ā ā ā 112 ā 112 ā Net current period other comprehensive loss ā ā ā 93 ā 93 ā Balances at end of period ā $ 8,178 ā $ (315) ā $ 7,863 ā ā ā ā ā ā ā ā ā ā ā ā Six months ended June 30, 2021 ā ā ā ā ā ā ā ā ā ā Balances at beginning of period ā $ 8,967 ā $ (276) ā $ 8,691 ā Other comprehensive loss, net of taxes ā ā ā 3 ā 3 ā Amounts reclassified from other comprehensive income, net of taxes ā ā ā 273 ā 273 ā Net current period other comprehensive loss ā ā ā 276 ā 276 ā Balances at end of period ā $ 8,967 ā $ ā ā $ 8,967 ā ā ā ā ā ā ā ā ā ā ā ā Six months ended June 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 ā ā (26) ā ā (26) 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 195 ā 195 ā Balances at end of period ā $ 8,178 ā $ (315) ā $ 7,863 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 June 30, 2021 2020 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized (gain) loss on securities ā $ ā ā $ ā ā $ ā ā $ (26) ā $ 7 ā $ (19) ā Amount reclassified from other comprehensive income ā ā 260 ā ā (70) ā ā 190 ā ā 153 ā ā (41) ā ā 112 ā Total ā $ 260 ā $ (70) ā $ 190 ā $ 127 ā $ (34) ā $ 93 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Six Months Ended June 30, ā 2021 2020 ā Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized loss (gain) on securities ā $ 4 ā $ (1) ā $ 3 ā $ (35) ā $ 9 ā $ (26) ā Amount reclassified from other comprehensive income ā ā 373 ā ā (100) ā ā 273 ā ā 301 ā ā (80) ā ā 221 ā Total ā $ 377 ā $ (101) ā $ 276 ā $ 266 ā $ (71) ā $ 195 ā ā ā |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2021 | |
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 and other fees 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 and ā ā ā ā (Dollars in thousands) Other Fees Other Total Three months ended June 30, 2021 ā ā ā ā ā ā ā ā ā Revenue from contracts with customers ā $ 499 ā $ 42 ā $ 541 Other revenue ā ā 31 ā ā 28 ā ā 59 Total ā $ 530 ā $ 70 ā $ 600 ā ā ā ā ā ā ā ā ā ā Three months ended June 30, 2020 ā ā ā ā ā ā ā ā ā Revenue from contracts with customers ā $ 519 ā $ 20 ā $ 539 Other revenue ā ā 16 ā ā 27 ā ā 43 Total ā $ 535 ā $ 47 ā $ 582 ā ā ā ā ā ā ā ā ā ā Six months ended June 30, 2021 ā ā ā ā ā ā ā ā ā Revenue from contracts with customers ā $ 1,456 ā $ 124 ā $ 1,580 Other revenue ā ā 69 ā ā 56 ā ā 125 Total ā $ 1,525 ā $ 180 ā $ 1,705 ā ā ā ā ā ā ā ā ā ā Six months ended June 30, 2020 ā ā ā ā ā ā ā ā ā Revenue from contracts with customers ā $ 924 ā $ 53 ā $ 977 Other revenue ā ā 64 ā ā 55 ā ā 119 Total ā $ 988 ā $ 108 ā $ 1,096 ā |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases | |
Leases | ā (15) Leases 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 Six Months Ended ā June 30, June 30, (Dollars in thousands) 2021 2020 2021 2020 Lease Costs: ā ā ā ā ā ā ā ā ā ā ā ā ā Operating lease costs ā $ 853 ā $ 816 ā $ 1,709 ā $ 1,631 ā Short-term lease costs ā 11 ā 6 ā 17 ā 12 ā Variable lease costs ā 39 ā 36 ā 82 ā 77 ā Total lease costs ā $ 903 ā $ 858 ā $ 1,808 ā $ 1,720 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 $ 839 ā $ 804 ā $ 1,684 ā $ 1,606 ā ROU assets obtained in exchange for new operating lease liabilities ā $ 403 ā $ 18 ā $ 2,841 ā $ 1,786 ā ā At June 30, 2021, 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 2021 ā $ 1,562 ā ā ā ā ā ā 2022 ā 2,951 ā ā ā ā ā ā 2023 ā 2,600 ā ā ā ā ā ā 2024 ā 2,349 ā ā ā ā ā ā 2025 ā 1,661 ā ā ā ā ā ā Thereafter ā 4,224 ā ā ā ā ā ā Total ā ā 15,347 ā ā ā ā ā ā Less present value discount ā ā 914 ā ā ā ā ā ā Present value of leases ā $ 14,433 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 June 30, ā ā June 30, ā ā ā 2021 ā 2020 ā Weighted-average remaining lease term (years) ā 6.15 ā ā 5.64 ā ā Weighted-average discount rate ā ā 2.16 % ā ā 2.75 % ā ā |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2021 | |
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 financial assets and liabilities measured or disclosed at fair value into three levels based on the markets in which the financial assets and liabilities are traded and the reliability of the assumptions used to determine fair value as follows: 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 financial assets at fair value on a nonrecurring basis, such as loans held for sale, impaired loans and investments, and mortgage servicing assets. These nonrecurring fair value adjustments typically involve application of the lower of cost or fair value accounting or write-downs of individual assets. 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 June 30, 2021 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 $ 117,578 ā $ 117,578 ā $ 117,578 ā $ ā ā $ ā ā Investment securities held to maturity ā 609,074 ā ā 615,721 ā ā ā ā ā 615,721 ā ā ā ā Loans held for sale ā 540 ā ā 543 ā ā ā ā ā 543 ā ā ā ā Loans receivable, net ā 1,314,871 ā ā 1,353,738 ā ā ā ā ā ā ā ā 1,353,738 ā FHLB stock ā 8,173 ā ā 8,173 ā ā ā ā ā 8,173 ā ā ā ā FRB stock ā ā 3,152 ā ā 3,152 ā ā ā ā ā 3,152 ā ā ā ā Accrued interest receivable ā 6,345 ā ā 6,345 ā ā 22 ā ā 1,118 ā ā 5,205 ā Interest rate contracts ā 20 ā ā 20 ā ā ā ā ā 20 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 1,678,694 ā ā 1,680,425 ā ā ā ā ā 1,411,296 ā ā 269,129 ā Advances from the Federal Home Loan Bank ā 141,000 ā ā 143,878 ā ā ā ā ā 143,878 ā ā ā ā Securities sold under agreements to repurchase ā 10,000 ā ā 10,314 ā ā ā ā ā 10,314 ā ā ā ā Accrued interest payable ā 50 ā ā 50 ā ā ā ā ā 45 ā ā 5 ā Interest rate contracts ā 20 ā ā 20 ā ā ā ā ā 20 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 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 $ 363,543 ā $ 363,543 ā $ 363,543 ā $ ā ā $ ā ā Investment securities available for sale ā ā 3,562 ā ā 3,562 ā ā ā ā ā 3,562 ā ā ā ā Investment securities held to maturity ā 247,642 ā ā 262,841 ā ā ā ā ā 262,841 ā ā ā ā Loans held for sale ā 2,195 ā ā 2,274 ā ā ā ā ā 2,274 ā ā ā ā Loans receivable, net ā 1,406,995 ā ā 1,433,489 ā ā ā ā ā ā ā ā 1,433,489 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 6,515 ā ā 6,515 ā ā 16 ā ā 627 ā ā 5,872 ā Interest rate contracts ā 38 ā ā 38 ā ā ā ā ā 38 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 1,659,800 ā ā 1,663,226 ā ā ā ā ā 1,338,022 ā ā 325,204 ā Advances from the Federal Home Loan Bank ā 141,000 ā ā 145,441 ā ā ā ā ā 145,441 ā ā ā ā Securities sold under agreements to repurchase ā 10,000 ā ā 10,466 ā ā ā ā ā 10,466 ā ā ā ā Accrued interest payable ā 35 ā ā 35 ā ā ā ā ā 33 ā ā 2 ā Interest rate contracts ā 38 ā ā 38 ā ā ā ā ā 38 ā ā ā ā ā At June 30, 2021 and December 31, 2020, 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 June 30, 2021 ā ā ā ā ā ā ā ā ā ā ā ā ā Interest rate contracts ā assets ā $ ā ā $ 20 ā $ ā ā $ 20 ā Interest rate contracts ā liabilities ā ā ā (20) ā ā ā (20) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā Interest rate contracts ā assets ā $ ā ā $ 38 ā $ ā ā $ 38 ā Interest rate contracts ā liabilities ā ā ā (38) ā ā ā (38) ā Investment securities available for sale ā ā ā 3,562 ā ā ā 3,562 ā ā The table below presents the balance of assets measured at fair value on a nonrecurring basis as of December 31, 2020 and the related losses for the year ended December 31, 2020. There were assets measured at fair value on a nonrecurring basis as of June 30, 2021. There were 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 December 31, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Mortgage servicing assets ā 12/31/2020 ā $ ā ā $ ā ā $ 407 ā $ 407 ā $ (73) 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 and other fees 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) December 31, 2020: ā ā ā ā ā ā ā ā ā ā ā Mortgage servicing assets ā $ 407 Discounted cash flow Discount rate ā ā 9.25% - 11.25% (10.25%) ā ā ā ā ā ā ā Prepayment speed (CPR) ā 10.42 - 19.61 (13.57) ā ā ā ā ā ā ā Annual cost to service (per loan, in dollars) ā $ 75 ā ā |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events | |
Subsequent Events | (17) Subsequent Events ā On July 29, 2021, 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 August 26, 2021 to stockholders of record as of August 12, 2021. |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Cash and Cash Equivalents | |
Schedule of balances of cash and cash equivalents | ā ā ā ā ā ā ā ā ā June 30, December 31, (Dollars in thousands) 2021 2020 Cash and due from banks ā $ 12,441 ā $ 14,355 ā Interest-earning deposits in other banks ā 105,137 ā 349,188 ā Cash and cash equivalents ā $ 117,578 ā $ 363,543 ā |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021: 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 $ 609,074 ā $ 8,822 $ (2,175) ā $ 615,721 ā Total ā $ 609,074 ā $ 8,822 $ (2,175) ā $ 615,721 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 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 $ 3,185 ā $ 377 $ ā ā $ 3,562 ā Total ā $ 3,185 ā $ 377 $ ā ā $ 3,562 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 $ 247,642 ā $ 15,200 $ (1) ā $ 262,841 ā Total ā $ 247,642 ā $ 15,200 $ (1) ā $ 262,841 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 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 51 ā 50 ā Due after 10 years ā 609,023 ā 615,671 ā Total ā $ 609,074 ā $ 615,721 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 Six Months Ended ā ā ā June 30, ā June 30, ā (Dollars in thousands) 2021 2020 2021 2020 Proceeds from sales ā $ 13,064 ā $ 5,710 ā $ 19,361 ā $ 8,360 ā Gross gains ā 911 ā 419 ā 1,437 ā 597 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 June 30, 2021: 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 $ 377,389 ā $ (2,174) ā $ 45 ā $ (1) 27 ā $ 377,434 ā $ (2,175) 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, 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 $ 678 ā $ (1) ā $ 4 ā $ ā 6 ā $ 682 ā $ (1) ā ā |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Loans Receivable and Allowance for Loan Losses | |
Schedule of components of loans receivable | ā ā ā ā ā ā ā ā ā ā ā June 30, ā December 31, ā (Dollars in thousands) 2021 2020 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 $ 1,276,414 ā $ 1,366,507 ā Multi-family residential ā 6,772 ā 7,245 ā Construction, commercial and other ā 19,196 ā 19,074 ā Home equity loans and lines of credit ā 7,727 ā 9,376 ā Total real estate loans ā 1,310,109 ā 1,402,202 ā Other loans: ā ā ā ā ā ā ā Loans on deposit accounts ā 331 ā 235 ā Consumer and other loans ā 8,762 ā 10,086 ā Total other loans ā 9,093 ā 10,321 ā Less: ā ā ā ā ā ā ā Net unearned fees and discounts ā (1,362) ā (1,266) ā Allowance for loan losses ā (2,969) ā (4,262) ā Total unearned fees, discounts and allowance for loan losses ā (4,331) ā (5,528) ā Loans receivable, net ā $ 1,314,871 ā $ 1,406,995 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 June 30, 2021: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance, beginning of period ā $ 2,380 ā $ 396 ā $ 1 ā $ 140 ā $ 429 ā $ 3,346 ā (Reversal of provision) provision for loan losses ā (359) ā 38 ā ā ā (2) ā (49) ā (372) ā ā ā 2,021 ā 434 ā 1 ā 138 ā 380 ā 2,974 ā Charge-offs ā ā ā ā ā ā ā (7) ā ā ā (7) 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 (5) ā ā ā (5) ā Balance, end of period ā $ 2,021 ā $ 434 ā $ 1 ā $ 133 ā $ 380 ā $ 2,969 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Six months ended June 30, 2021: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance, beginning of period ā $ 3,102 ā $ 406 ā $ 1 ā $ 146 ā $ 607 ā $ 4,262 ā (Reversal of provision) provision for loan losses ā (1,081) ā 28 ā ā ā (5) ā (227) ā (1,285) ā ā ā 2,021 ā 434 ā 1 ā 141 ā 380 ā 2,977 ā Charge-offs ā ā ā ā ā ā ā (10) ā ā ā (10) 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 (8) ā ā ā (8) ā Balance, end of period ā $ 2,021 ā $ 434 ā $ 1 ā $ 133 ā $ 380 ā $ 2,969 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 June 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 $ 1,863 ā $ 452 ā $ 1 ā $ 172 ā $ 430 ā $ 2,918 ā Provision (reversal of provision) for loan losses ā 1,157 ā 7 ā (10) ā 92 ā 149 ā 1,395 ā ā ā 3,020 ā 459 ā (9) ā 264 ā 579 ā 4,313 ā Charge-offs ā ā ā ā ā ā ā (68) ā ā ā (68) ā Recoveries ā ā ā ā ā 10 ā 1 ā ā ā 11 ā Net recoveries (charge-offs) ā ā ā ā ā 10 ā (67) ā ā ā (57) ā Balance, end of period ā $ 3,020 ā $ 459 ā $ 1 ā $ 197 ā $ 579 ā $ 4,256 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Six months ended June 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 1,279 ā (52) ā (10) ā 221 ā 174 ā 1,612 ā ā ā 3,020 ā 459 ā (9) ā 275 ā 579 ā 4,324 ā Charge-offs ā ā ā ā ā ā ā (80) ā ā ā (80) 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 (78) ā ā ā (68) ā Balance, end of period ā $ 3,020 ā $ 459 ā $ 1 ā $ 197 ā $ 579 ā $ 4,256 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 June 30, 2021: 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 2,021 ā 434 ā 1 ā 133 ā 380 ā 2,969 ā Total ending allowance balance ā $ 2,021 ā $ 434 ā $ 1 ā $ 133 ā $ 380 ā $ 2,969 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 $ 4,728 ā $ ā ā $ 20 ā $ ā ā $ ā ā $ 4,748 ā Collectively evaluated for impairment ā 1,277,129 ā 19,159 ā 7,711 ā 9,093 ā ā ā 1,313,092 ā Total ending loan balance ā $ 1,281,857 ā $ 19,159 ā $ 7,731 ā $ 9,093 ā $ ā ā $ 1,317,840 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 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 3,102 ā 406 ā 1 ā 146 ā 607 ā 4,262 ā Total ending allowance balance ā $ 3,102 ā $ 406 ā $ 1 ā $ 146 ā $ 607 ā $ 4,262 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 $ 4,947 ā $ ā ā $ 23 ā $ ā ā $ ā ā $ 4,970 ā Collectively evaluated for impairment ā 1,367,576 ā 19,024 ā 9,353 ā 10,334 ā ā ā 1,406,287 ā Total ending loan balance ā $ 1,372,523 ā $ 19,024 ā $ 9,376 ā $ 10,334 ā $ ā ā $ 1,411,257 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 June 30, 2021: 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 $ 4,728 ā $ 5,266 ā Home equity loans and lines of credit ā 20 ā 31 ā Total ā $ 4,748 ā $ 5,297 ā ā ā ā ā ā ā ā ā December 31, 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 $ 4,947 ā $ 5,425 ā Home equity loans and lines of credit ā ā 23 ā ā 32 ā Total ā $ 4,970 ā $ 5,457 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 Six Months Ended June 30, June 30, Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized 2021: 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 $ 4,746 ā $ 7 ā $ 4,777 ā $ 20 ā Home equity loans and lines of credit ā 21 ā ā ā 21 ā ā ā Total ā $ 4,767 ā $ 7 ā $ 4,798 ā $ 20 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 2020: 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 $ 1,321 ā $ 9 ā $ 1,334 ā $ 17 ā Home equity loans and lines of credit ā ā 25 ā ā ā 25 ā ā ā Total ā $ 1,346 ā $ 9 ā $ 1,359 ā $ 17 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 June 30, 2021: 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 $ 690 ā $ 121 ā $ 99 ā $ 910 ā $ 1,274,187 ā $ 1,275,097 ā $ 4,170 ā $ ā ā Multi-family residential mortgages ā ā ā ā ā ā ā ā ā 6,760 ā 6,760 ā ā ā ā ā Construction, commercial and other mortgages ā ā ā ā ā ā ā ā ā 19,159 ā 19,159 ā ā ā ā ā Home equity loans and lines of credit ā ā ā ā ā ā ā ā ā 7,731 ā 7,731 ā 20 ā ā ā Loans on deposit accounts ā ā ā ā ā ā ā ā ā 331 ā 331 ā ā ā ā ā Consumer and other ā 1 ā ā ā ā ā 1 ā 8,761 ā 8,762 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 $ 691 ā $ 121 ā $ 99 ā $ 911 ā $ 1,316,929 ā $ 1,317,840 ā $ 4,190 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, 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 $ 376 ā $ 152 ā $ 240 ā $ 768 ā $ 1,364,527 ā $ 1,365,295 ā $ 4,382 ā $ ā ā Multi-family residential mortgages ā ā ā ā ā ā ā ā ā 7,228 ā 7,228 ā ā ā ā ā Construction, commercial and other mortgages ā ā ā ā ā ā ā ā ā 19,024 ā 19,024 ā ā ā ā ā Home equity loans and lines of credit ā ā ā 23 ā ā ā 23 ā 9,353 ā 9,376 ā 23 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 1 ā ā ā ā ā 1 ā 10,098 ā 10,099 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 $ 377 ā $ 175 ā $ 240 ā $ 792 ā $ 1,410,465 ā $ 1,411,257 ā $ 4,405 ā $ ā 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 June 30, 2021: ā ā ā ā ā ā ā ā ā ā One- to four-family residential mortgages ā 3 ā $ 558 ā ā 2 ā $ 439 ā $ 997 Total ā 3 ā $ 558 ā ā 2 ā $ 439 ā $ 997 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā ā One- to four-family residential mortgages ā 3 ā $ 565 ā ā 2 ā $ 467 ā $ 1,032 Total ā 3 ā $ 565 ā ā 2 ā $ 467 ā $ 1,032 |
Securities Sold Under Agreeme_2
Securities Sold Under Agreements to Repurchase (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 December 31, 2020 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 Over 3 year to 4 years ā $ 10,000 1.81 % $ 5,000 1.88 % ā Over 4 year to 5 years ā ā ā ā 5,000 1.73 % ā Total ā $ 10,000 1.81 % $ 10,000 1.81 % 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 $ 10,697 ā $ 11,290 ā $ 10,000 ā $ 1,290 42 ā |
Offsetting of Financial Liabi_2
Offsetting of Financial Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021: 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, 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 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Six Months Ended June 30, June 30, (Dollars in thousands) 2021 2020 2021 2020 Net periodic benefit cost for the period: ā ā ā ā ā ā ā ā ā ā ā ā ā Service cost ā $ 3 ā $ 22 ā $ 5 ā $ 44 ā Interest cost ā 45 ā 44 ā 90 ā 87 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 $ 48 ā $ 66 ā $ 95 ā $ 131 ā |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Employee Stock Ownership Plan | |
Schedule of shares held by the ESOP trust | ā ā ā ā ā ā ā ā ā June 30, December 31, 2021 2020 Allocated shares ā 516,403 ā 507,304 ā Unearned shares ā 366,997 ā 391,464 ā Total ESOP shares ā 883,400 ā 898,768 ā Fair value of unearned shares, in thousands ā $ 9,531 ā $ 9,407 ā |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Six Months Ended June 30, June 30, (In thousands) 2021 2020 2021 2020 Compensation expense ā $ 92 ā $ 209 ā $ 205 ā $ 366 ā Income tax benefit ā 25 ā 57 ā 56 ā 100 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, 2020 3,085 ā $ 23.62 1.67 ā $ 1 ā Granted ā ā ā ā ā ā ā Exercised ā ā ā ā ā ā ā Forfeited ā ā ā ā ā ā ā Expired ā ā ā ā ā ā ā Options outstanding at June 30, 2021 ā 3,085 ā $ 23.62 1.17 ā $ 7 ā ā ā ā ā ā ā ā ā ā ā ā ā 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 ā ā ā ā ā ā ā Options outstanding at June 30, 2020 34,582 ā $ 17.92 0.35 ā $ 203 ā ā ā ā ā ā ā ā ā ā ā ā ā Options vested and exercisable at June 30, 2021 3,085 ā $ 23.62 1.17 ā $ 7 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 Six Months Ended June 30, June 30, (In thousands) 2021 2020 2021 2020 Intrinsic value of stock options exercised ā $ ā ā $ 437 ā $ ā ā $ 725 ā Proceeds received from stock options exercised ā ā ā 1,029 ā ā ā 1,421 ā Tax benefits realized from stock options exercised ā ā ā 105 ā ā ā 158 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 Time-Based Average Grant Restricted Date Fair Stock Value Unvested at December 31, 2020 23,695 ā $ 24.24 ā Granted 10,849 ā 26.67 ā Vested 11,336 ā 25.81 ā Forfeited ā ā ā ā Unvested at June 30, 2021 23,208 ā $ 24.61 ā ā ā ā ā ā ā ā 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 June 30, 2020 23,695 ā $ 24.24 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, 2020 40,585 ā $ 25.83 Granted 13,016 ā 26.67 Vested 7,473 ā 30.73 Forfeited 4,545 ā 30.73 Unvested at June 30, 2021 41,583 ā $ 24.68 ā ā ā ā ā ā 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 June 30, 2020 40,585 ā $ 25.83 |
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, 2020 10,147 ā $ 24.69 Granted 3,254 ā ā 25.94 Vested 1,628 ā 28.32 Forfeited 1,377 ā 28.32 Unvested at June 30, 2021 10,396 ā $ 24.03 ā ā ā ā ā ā 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 22.44 Unvested at June 30, 2020 10,147 ā $ 24.69 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Six Months Ended June 30, June 30, (Dollars in thousands, except per share data) 2021 2020 2021 2020 Net income ā $ 4,058 ā $ 4,291 ā $ 9,071 ā $ 8,764 ā Income allocated to participating securities ā ā (21) ā ā (37) ā ā (24) ā ā (48) ā Net income available to common shareholders ā $ 4,037 ā $ 4,254 ā $ 9,047 ā $ 8,716 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 9,117,467 ā 9,092,287 ā 9,124,086 ā 9,164,877 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 44,881 ā 46,848 ā 41,917 ā 63,544 ā Diluted earnings per share ā 9,162,348 ā 9,139,135 ā 9,166,003 ā 9,228,421 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Net income per common share, basic ā $ 0.44 ā $ 0.47 ā $ 0.99 ā $ 0.95 ā Net income per common share, diluted ā $ 0.44 ā $ 0.47 ā $ 0.99 ā $ 0.94 ā |
Other Comprehensive Income an_2
Other Comprehensive Income and Loss (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 ā ā ā ā ā ā ā ā ā ā Balances at beginning of period ā $ 8,967 ā $ (190) ā $ 8,777 ā Amounts reclassified from other comprehensive income, net of taxes ā ā ā 190 ā 190 ā Net current period other comprehensive loss ā ā ā 190 ā 190 ā Balances at end of period ā $ 8,967 ā $ ā ā $ 8,967 ā ā ā ā ā ā ā ā ā ā ā ā Three months ended June 30, 2020 ā ā ā ā ā ā ā ā ā ā Balances at beginning of period ā $ 8,178 ā $ (408) ā $ 7,770 ā Other comprehensive income, net of taxes ā ā ā (19) ā (19) ā Amounts reclassified from other comprehensive income, net of taxes ā ā ā 112 ā 112 ā Net current period other comprehensive loss ā ā ā 93 ā 93 ā Balances at end of period ā $ 8,178 ā $ (315) ā $ 7,863 ā ā ā ā ā ā ā ā ā ā ā ā Six months ended June 30, 2021 ā ā ā ā ā ā ā ā ā ā Balances at beginning of period ā $ 8,967 ā $ (276) ā $ 8,691 ā Other comprehensive loss, net of taxes ā ā ā 3 ā 3 ā Amounts reclassified from other comprehensive income, net of taxes ā ā ā 273 ā 273 ā Net current period other comprehensive loss ā ā ā 276 ā 276 ā Balances at end of period ā $ 8,967 ā $ ā ā $ 8,967 ā ā ā ā ā ā ā ā ā ā ā ā Six months ended June 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 ā ā (26) ā ā (26) 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 195 ā 195 ā Balances at end of period ā $ 8,178 ā $ (315) ā $ 7,863 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 June 30, 2021 2020 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized (gain) loss on securities ā $ ā ā $ ā ā $ ā ā $ (26) ā $ 7 ā $ (19) ā Amount reclassified from other comprehensive income ā ā 260 ā ā (70) ā ā 190 ā ā 153 ā ā (41) ā ā 112 ā Total ā $ 260 ā $ (70) ā $ 190 ā $ 127 ā $ (34) ā $ 93 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Six Months Ended June 30, ā 2021 2020 ā Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized loss (gain) on securities ā $ 4 ā $ (1) ā $ 3 ā $ (35) ā $ 9 ā $ (26) ā Amount reclassified from other comprehensive income ā ā 373 ā ā (100) ā ā 273 ā ā 301 ā ā (80) ā ā 221 ā Total ā $ 377 ā $ (101) ā $ 276 ā $ 266 ā $ (71) ā $ 195 ā |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 and ā ā ā ā (Dollars in thousands) Other Fees Other Total Three months ended June 30, 2021 ā ā ā ā ā ā ā ā ā Revenue from contracts with customers ā $ 499 ā $ 42 ā $ 541 Other revenue ā ā 31 ā ā 28 ā ā 59 Total ā $ 530 ā $ 70 ā $ 600 ā ā ā ā ā ā ā ā ā ā Three months ended June 30, 2020 ā ā ā ā ā ā ā ā ā Revenue from contracts with customers ā $ 519 ā $ 20 ā $ 539 Other revenue ā ā 16 ā ā 27 ā ā 43 Total ā $ 535 ā $ 47 ā $ 582 ā ā ā ā ā ā ā ā ā ā Six months ended June 30, 2021 ā ā ā ā ā ā ā ā ā Revenue from contracts with customers ā $ 1,456 ā $ 124 ā $ 1,580 Other revenue ā ā 69 ā ā 56 ā ā 125 Total ā $ 1,525 ā $ 180 ā $ 1,705 ā ā ā ā ā ā ā ā ā ā Six months ended June 30, 2020 ā ā ā ā ā ā ā ā ā Revenue from contracts with customers ā $ 924 ā $ 53 ā $ 977 Other revenue ā ā 64 ā ā 55 ā ā 119 Total ā $ 988 ā $ 108 ā $ 1,096 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases | |
Schedule of lease costs | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended Six Months Ended ā June 30, June 30, (Dollars in thousands) 2021 2020 2021 2020 Lease Costs: ā ā ā ā ā ā ā ā ā ā ā ā ā Operating lease costs ā $ 853 ā $ 816 ā $ 1,709 ā $ 1,631 ā Short-term lease costs ā 11 ā 6 ā 17 ā 12 ā Variable lease costs ā 39 ā 36 ā 82 ā 77 ā Total lease costs ā $ 903 ā $ 858 ā $ 1,808 ā $ 1,720 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 $ 839 ā $ 804 ā $ 1,684 ā $ 1,606 ā ROU assets obtained in exchange for new operating lease liabilities ā $ 403 ā $ 18 ā $ 2,841 ā $ 1,786 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 2021 ā $ 1,562 ā ā ā ā ā ā 2022 ā 2,951 ā ā ā ā ā ā 2023 ā 2,600 ā ā ā ā ā ā 2024 ā 2,349 ā ā ā ā ā ā 2025 ā 1,661 ā ā ā ā ā ā Thereafter ā 4,224 ā ā ā ā ā ā Total ā ā 15,347 ā ā ā ā ā ā Less present value discount ā ā 914 ā ā ā ā ā ā Present value of leases ā $ 14,433 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 June 30, ā ā June 30, ā ā ā 2021 ā 2020 ā Weighted-average remaining lease term (years) ā 6.15 ā ā 5.64 ā ā Weighted-average discount rate ā ā 2.16 % ā ā 2.75 % ā |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 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 $ 117,578 ā $ 117,578 ā $ 117,578 ā $ ā ā $ ā ā Investment securities held to maturity ā 609,074 ā ā 615,721 ā ā ā ā ā 615,721 ā ā ā ā Loans held for sale ā 540 ā ā 543 ā ā ā ā ā 543 ā ā ā ā Loans receivable, net ā 1,314,871 ā ā 1,353,738 ā ā ā ā ā ā ā ā 1,353,738 ā FHLB stock ā 8,173 ā ā 8,173 ā ā ā ā ā 8,173 ā ā ā ā FRB stock ā ā 3,152 ā ā 3,152 ā ā ā ā ā 3,152 ā ā ā ā Accrued interest receivable ā 6,345 ā ā 6,345 ā ā 22 ā ā 1,118 ā ā 5,205 ā Interest rate contracts ā 20 ā ā 20 ā ā ā ā ā 20 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 1,678,694 ā ā 1,680,425 ā ā ā ā ā 1,411,296 ā ā 269,129 ā Advances from the Federal Home Loan Bank ā 141,000 ā ā 143,878 ā ā ā ā ā 143,878 ā ā ā ā Securities sold under agreements to repurchase ā 10,000 ā ā 10,314 ā ā ā ā ā 10,314 ā ā ā ā Accrued interest payable ā 50 ā ā 50 ā ā ā ā ā 45 ā ā 5 ā Interest rate contracts ā 20 ā ā 20 ā ā ā ā ā 20 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 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 $ 363,543 ā $ 363,543 ā $ 363,543 ā $ ā ā $ ā ā Investment securities available for sale ā ā 3,562 ā ā 3,562 ā ā ā ā ā 3,562 ā ā ā ā Investment securities held to maturity ā 247,642 ā ā 262,841 ā ā ā ā ā 262,841 ā ā ā ā Loans held for sale ā 2,195 ā ā 2,274 ā ā ā ā ā 2,274 ā ā ā ā Loans receivable, net ā 1,406,995 ā ā 1,433,489 ā ā ā ā ā ā ā ā 1,433,489 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 6,515 ā ā 6,515 ā ā 16 ā ā 627 ā ā 5,872 ā Interest rate contracts ā 38 ā ā 38 ā ā ā ā ā 38 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 1,659,800 ā ā 1,663,226 ā ā ā ā ā 1,338,022 ā ā 325,204 ā Advances from the Federal Home Loan Bank ā 141,000 ā ā 145,441 ā ā ā ā ā 145,441 ā ā ā ā Securities sold under agreements to repurchase ā 10,000 ā ā 10,466 ā ā ā ā ā 10,466 ā ā ā ā Accrued interest payable ā 35 ā ā 35 ā ā ā ā ā 33 ā ā 2 ā Interest rate contracts ā 38 ā ā 38 ā ā ā ā ā 38 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 June 30, 2021 ā ā ā ā ā ā ā ā ā ā ā ā ā Interest rate contracts ā assets ā $ ā ā $ 20 ā $ ā ā $ 20 ā Interest rate contracts ā liabilities ā ā ā (20) ā ā ā (20) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā Interest rate contracts ā assets ā $ ā ā $ 38 ā $ ā ā $ 38 ā Interest rate contracts ā liabilities ā ā ā (38) ā ā ā (38) ā Investment securities available for sale ā ā ā 3,562 ā ā ā 3,562 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) December 31, 2020: ā ā ā ā ā ā ā ā ā ā ā Mortgage servicing assets ā $ 407 Discounted cash flow Discount rate ā ā 9.25% - 11.25% (10.25%) ā ā ā ā ā ā ā Prepayment speed (CPR) ā 10.42 - 19.61 (13.57) 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 December 31, 2020 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Mortgage servicing assets ā 12/31/2020 ā $ ā ā $ ā ā $ 407 ā $ 407 ā $ (73) ā |
Organization - Narrative (Detai
Organization - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Organization | |
Number of inactive subsidiaries | 2 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents | ||
Cash and due from banks | $ 12,441 | $ 14,355 |
Interest-earning deposits in other banks | 105,137 | 349,188 |
Cash and cash equivalents | $ 117,578 | $ 363,543 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Values of Available-for-Sale Securities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Available-for-sale: | |
Amortized Cost | $ 3,185 |
Gross Unrealized Gains | 377 |
Estimated Fair Value | 3,562 |
U.S. government-sponsored mortgage-backed securities | |
Available-for-sale: | |
Amortized Cost | 3,185 |
Gross Unrealized Gains | 377 |
Estimated Fair Value | $ 3,562 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Fair Values of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Held-to-maturity: | ||
Amortized Cost | $ 609,074 | $ 247,642 |
Gross Unrealized Gains | 8,822 | 15,200 |
Gross Unrealized Losses | (2,175) | (1) |
Estimated Fair Value | 615,721 | 262,841 |
U.S. government-sponsored mortgage-backed securities | ||
Held-to-maturity: | ||
Amortized Cost | 609,074 | 247,642 |
Gross Unrealized Gains | 8,822 | 15,200 |
Gross Unrealized Losses | (2,175) | (1) |
Estimated Fair Value | $ 615,721 | $ 262,841 |
Investment Securities - Maturit
Investment Securities - Maturity Schedule of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Held-to-maturity, Amortized Cost | ||
Due within 5 years | $ 0 | |
Due after 5 years through 10 years | 51 | |
Due after 10 years | 609,023 | |
Amortized Cost | 609,074 | $ 247,642 |
Held-to-maturity, Estimated Fair Value | ||
Due within 5 years | 0 | |
Due after 5 years through 10 years | 50 | |
Due after 10 years | 615,671 | |
Estimated Fair Value | $ 615,721 | $ 262,841 |
Investment Securities - Realize
Investment Securities - Realized Gains and Losses and Proceeds from Sales (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Realized gains and losses and the proceeds from sales of securities | ||||
Proceeds from sales | $ 16,031,000 | $ 4,692,000 | ||
U.S. government-sponsored mortgage-backed securities | ||||
Realized gains and losses and the proceeds from sales of securities | ||||
Gross gains | 1,100,000 | 307,000 | ||
Available-for-sale mortgage-backed securities sold | 3,000,000 | 3,400,000 | ||
Debt Securities, Available-for-sale, Realized Gain | 339,000 | 290,000 | ||
U.S. government-sponsored mortgage-backed securities | ||||
Realized gains and losses and the proceeds from sales of securities | ||||
Proceeds from sales | $ 14,900,000 | 4,400,000 | ||
Minimum | U.S. government-sponsored mortgage-backed securities | ||||
Realized gains and losses and the proceeds from sales of securities | ||||
Portion of outstanding purchased principal already collected | 85.00% | |||
Held-to-maturity debt securities | ||||
Realized gains and losses and the proceeds from sales of securities | ||||
Proceeds from sales | $ 13,064,000 | $ 5,710,000 | $ 19,361,000 | 8,360,000 |
Gross gains | $ 911,000 | $ 419,000 | $ 1,437,000 | $ 597,000 |
Investment Securities - Securit
Investment Securities - Securities Pledged (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
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 | $ 164.4 | $ 192.7 |
Investment Securities - Held-to
Investment Securities - Held-to-Maturity Unrealized Loss Position Summary (Details) - U.S. government-sponsored mortgage-backed securities $ in Thousands | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Investment Securities | ||
Less Than 12 Months Fair Value | $ 377,389 | $ 678 |
Less Than 12 Months Unrealized Losses | (2,174) | (1) |
12 Months or Longer Fair Value | 45 | $ 4 |
12 Months or Longer Unrealized Losses | $ (1) | |
Total Number of Securities | 27 | 6 |
Total Fair Value | $ 377,434 | $ 682 |
Total Unrealized Losses | $ (2,175) | $ (1) |
Investment Securities - Mortgag
Investment Securities - Mortgage-Backed Securities (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of Investments [Line Items] | ||
Fair market value of received mortgage-backed securities | $ 9,800,000 | |
Net gain recognized on the securitization transaction | 377,000 | |
Fixed-rate mortgage loans | ||
Schedule of Investments [Line Items] | ||
Book value | 9,400,000 | |
Securitized fixed-rate first mortgage loans | 9,400,000 | |
Net gain recognized on the securitization transaction | $ 0 | $ 377,000 |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance for Loan Losses - Components (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Loans receivable | ||||||
Less: Net unearned fees and discounts | $ (1,362) | $ (1,266) | ||||
Less: Allowance for loan losses | (2,969) | $ (3,346) | (4,262) | $ (4,256) | $ (2,918) | $ (2,712) |
Total unearned fees, discounts and allowance for loan losses | (4,331) | (5,528) | ||||
Loans receivable, net | 1,314,871 | 1,406,995 | ||||
Construction, commercial and other | ||||||
Loans receivable | ||||||
Less: Allowance for loan losses | (434) | (396) | (406) | (459) | (452) | (511) |
Home Equity Loans and Lines of Credit | ||||||
Loans receivable | ||||||
Less: Allowance for loan losses | (1) | (1) | (1) | (1) | (1) | (1) |
Consumer and other loans | ||||||
Loans receivable | ||||||
Less: Allowance for loan losses | (133) | (140) | (146) | (197) | (172) | (54) |
Unallocated | ||||||
Loans receivable | ||||||
Less: Allowance for loan losses | (380) | $ (429) | (607) | $ (579) | $ (430) | $ (405) |
Real estate loans | ||||||
Loans receivable | ||||||
Loans receivable, net | 1,310,109 | 1,402,202 | ||||
Real estate loans | One- to four-family residential | ||||||
Loans receivable | ||||||
Loans receivable, net | 1,276,414 | 1,366,507 | ||||
Real estate loans | Multi-family residential mortgages | ||||||
Loans receivable | ||||||
Loans receivable, net | 6,772 | 7,245 | ||||
Real estate loans | Construction, commercial and other | ||||||
Loans receivable | ||||||
Loans receivable, net | 19,196 | 19,074 | ||||
Real estate loans | Home Equity Loans and Lines of Credit | ||||||
Loans receivable | ||||||
Loans receivable, net | 7,727 | 9,376 | ||||
Other loans | ||||||
Loans receivable | ||||||
Loans receivable, net | 9,093 | 10,321 | ||||
Other loans | Loans on deposit accounts | ||||||
Loans receivable | ||||||
Loans receivable, net | 331 | 235 | ||||
Other loans | Consumer and other loans | ||||||
Loans receivable | ||||||
Loans receivable, net | $ 8,762 | $ 10,086 |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance for Loan Losses - Activity in Allowance for Loan Losses by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Activity in allowance for loan losses | ||||
Balance, beginning of period | $ 3,346 | $ 2,918 | $ 4,262 | $ 2,712 |
(Reversal of provision) provision for loan losses | (372) | 1,395 | (1,285) | 1,612 |
Allowance for loan losses on loans receivable after provision (reversal of allowance) | 2,974 | 4,313 | 2,977 | 4,324 |
Charge-offs | (7) | (68) | (10) | (80) |
Recoveries | 2 | 11 | 2 | 12 |
Net recoveries (charge-offs) | (5) | (57) | (8) | (68) |
Balance, end of period | 2,969 | 4,256 | 2,969 | 4,256 |
Residential Mortgage | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 2,380 | 1,863 | 3,102 | 1,741 |
(Reversal of provision) provision for loan losses | (359) | 1,157 | (1,081) | 1,279 |
Allowance for loan losses on loans receivable after provision (reversal of allowance) | 2,021 | 3,020 | 2,021 | 3,020 |
Balance, end of period | 2,021 | 3,020 | 2,021 | 3,020 |
Construction, commercial and other | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 396 | 452 | 406 | 511 |
(Reversal of provision) provision for loan losses | 38 | 7 | 28 | (52) |
Allowance for loan losses on loans receivable after provision (reversal of allowance) | 434 | 459 | 434 | 459 |
Balance, end of period | 434 | 459 | 434 | 459 |
Home Equity Loans and Lines of Credit | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 1 | 1 | 1 | 1 |
(Reversal of provision) provision for loan losses | (10) | (10) | ||
Allowance for loan losses on loans receivable after provision (reversal of allowance) | 1 | (9) | 1 | (9) |
Recoveries | 10 | 10 | ||
Net recoveries (charge-offs) | 10 | 10 | ||
Balance, end of period | 1 | 1 | 1 | 1 |
Consumer and other loans | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 140 | 172 | 146 | 54 |
(Reversal of provision) provision for loan losses | (2) | 92 | (5) | 221 |
Allowance for loan losses on loans receivable after provision (reversal of allowance) | 138 | 264 | 141 | 275 |
Charge-offs | (7) | (68) | (10) | (80) |
Recoveries | 2 | 1 | 2 | 2 |
Net recoveries (charge-offs) | (5) | (67) | (8) | (78) |
Balance, end of period | 133 | 197 | 133 | 197 |
Unallocated | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 429 | 430 | 607 | 405 |
(Reversal of provision) provision for loan losses | (49) | 149 | (227) | 174 |
Allowance for loan losses on loans receivable after provision (reversal of allowance) | 380 | 579 | 380 | 579 |
Balance, end of period | $ 380 | $ 579 | $ 380 | $ 579 |
Loans Receivable and Allowanc_5
Loans Receivable and Allowance for Loan Losses - Allowance for Loan Losses and Loans, Net of Unearned Fees and Discounts, by Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Allowance for loan losses: | ||||||
Collectively evaluated for impairment | $ 2,969 | $ 4,262 | ||||
Total ending allowance balance | 2,969 | $ 3,346 | 4,262 | $ 4,256 | $ 2,918 | $ 2,712 |
Loans: | ||||||
Individually evaluated for impairment | 4,748 | 4,970 | ||||
Collectively evaluated for impairment | 1,313,092 | 1,406,287 | ||||
Total ending loan balance | 1,317,840 | 1,411,257 | ||||
Residential Mortgage | ||||||
Allowance for loan losses: | ||||||
Collectively evaluated for impairment | 2,021 | 3,102 | ||||
Total ending allowance balance | 2,021 | 2,380 | 3,102 | 3,020 | 1,863 | 1,741 |
Loans: | ||||||
Individually evaluated for impairment | 4,728 | 4,947 | ||||
Collectively evaluated for impairment | 1,277,129 | 1,367,576 | ||||
Total ending loan balance | 1,281,857 | 1,372,523 | ||||
Construction, commercial and other | ||||||
Allowance for loan losses: | ||||||
Collectively evaluated for impairment | 434 | 406 | ||||
Total ending allowance balance | 434 | 396 | 406 | 459 | 452 | 511 |
Loans: | ||||||
Collectively evaluated for impairment | 19,159 | 19,024 | ||||
Total ending loan balance | 19,159 | 19,024 | ||||
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 | 20 | 23 | ||||
Collectively evaluated for impairment | 7,711 | 9,353 | ||||
Total ending loan balance | 7,731 | 9,376 | ||||
Consumer and other loans | ||||||
Allowance for loan losses: | ||||||
Collectively evaluated for impairment | 133 | 146 | ||||
Total ending allowance balance | 133 | 140 | 146 | 197 | 172 | 54 |
Loans: | ||||||
Collectively evaluated for impairment | 9,093 | 10,334 | ||||
Total ending loan balance | 9,093 | 10,334 | ||||
Unallocated | ||||||
Allowance for loan losses: | ||||||
Collectively evaluated for impairment | 380 | 607 | ||||
Total ending allowance balance | $ 380 | $ 429 | $ 607 | $ 579 | $ 430 | $ 405 |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance for Loan Losses - Impaired Loans by Class (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Impaired loans | |||||
Recorded Investment | $ 4,748 | $ 4,748 | $ 4,970 | ||
Unpaid Principal Balance | 5,297 | 5,297 | 5,457 | ||
Average Recorded Investment | 4,767 | $ 1,346 | 4,798 | $ 1,359 | |
Interest Income Recognized | 7 | 9 | 20 | 17 | |
One- to four-family residential | |||||
Impaired loans | |||||
Recorded Investment | 4,728 | 4,728 | 4,947 | ||
Unpaid Principal Balance | 5,266 | 5,266 | 5,425 | ||
Average Recorded Investment | 4,746 | 1,321 | 4,777 | 1,334 | |
Interest Income Recognized | 7 | 9 | 20 | 17 | |
Home equity loans and lines of credit | |||||
Impaired loans | |||||
Recorded Investment | 20 | 20 | 23 | ||
Unpaid Principal Balance | 31 | 31 | $ 32 | ||
Average Recorded Investment | $ 21 | $ 25 | $ 21 | $ 25 |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance for Loan Losses - Delinquent and Nonaccrual Loans (Details) | 6 Months Ended | ||
Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)loan | |
Loans Receivable and Allowance for Loan Losses | |||
Loans individually evaluated for impairment with a related allowance for loan loss | $ 0 | $ 0 | |
Number of nonaccrual loans | loan | 11 | 12 | |
Nonaccrual Loans | $ 4,190,000 | $ 4,405,000 | |
Interest collected on nonaccrual loans recorded as a reduction of principal | 64,000 | $ 26,000 | |
Non accrual loans, additional interest income that would have been recognized had the loans been accruing interest | $ 129,000 | $ 27,000 | |
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 | ||
Loans 90 Days or More Past Due and Still Accruing | $ 0 | $ 0 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance for Loan Losses - Aging of Loans and Accrual Status by Class (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | $ 1,317,840,000 | $ 1,411,257,000 |
Nonaccrual Loans | 4,190,000 | 4,405,000 |
Loans 90 Days or More Past Due and Still Accruing | 0 | 0 |
One- to four-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 1,275,097,000 | 1,365,295,000 |
Nonaccrual Loans | 4,170,000 | 4,382,000 |
Loans 90 Days or More Past Due and Still Accruing | 0 | 0 |
Multi-family residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 6,760,000 | 7,228,000 |
Loans 90 Days or More Past Due and Still Accruing | 0 | 0 |
Construction, commercial and other | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 19,159,000 | 19,024,000 |
Loans 90 Days or More Past Due and Still Accruing | 0 | 0 |
Home equity loans and lines of credit | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 7,731,000 | 9,376,000 |
Nonaccrual Loans | 20,000 | 23,000 |
Loans 90 Days or More Past Due and Still Accruing | 0 | 0 |
Loans on deposit accounts | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 331,000 | 235,000 |
Loans 90 Days or More Past Due and Still Accruing | 0 | 0 |
Consumer and other loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 8,762,000 | 10,099,000 |
Loans 90 Days or More Past Due and Still Accruing | 0 | 0 |
Not Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 1,316,929,000 | 1,410,465,000 |
Not Past Due | One- to four-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 1,274,187,000 | 1,364,527,000 |
Not Past Due | Multi-family residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 6,760,000 | 7,228,000 |
Not Past Due | Construction, commercial and other | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 19,159,000 | 19,024,000 |
Not Past Due | Home equity loans and lines of credit | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 7,731,000 | 9,353,000 |
Not Past Due | Loans on deposit accounts | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 331,000 | 235,000 |
Not Past Due | Consumer and other loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 8,761,000 | 10,098,000 |
Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 911,000 | 792,000 |
Past Due | One- to four-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 910,000 | 768,000 |
Past Due | Home equity loans and lines of credit | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 23,000 | |
Past Due | Consumer and other loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 1,000 | 1,000 |
30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 691,000 | 377,000 |
30 - 59 Days Past Due | One- to four-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 690,000 | 376,000 |
30 - 59 Days Past Due | Consumer and other loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 1,000 | 1,000 |
60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 121,000 | 175,000 |
60 - 89 Days Past Due | One- to four-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 121,000 | 152,000 |
60 - 89 Days Past Due | Home equity loans and lines of credit | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 23,000 | |
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 99,000 | 240,000 |
90 Days or More Past Due | One- to four-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | $ 99,000 | $ 240,000 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Loan Losses - Troubled Debt Restructurings (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021USD ($)loan | Jun. 30, 2020loan | Dec. 31, 2020USD ($)loan | |
Troubled debt restructurings | |||
Troubled debt restructurings | $ 997,000 | $ 1,032,000 | |
Number of loans subsequently defaulted | loan | 0 | 0 | |
Additional disclosures | |||
Loan deferrals granted, COVID-19 | $ 104,700,000 | ||
Percentage of forbearance loans representing total loans receivable, COVID-19 | 8.00% | ||
Real estate owned | $ 0 | 0 | |
Percentage of current loan balance to the current tax-assessed value of the property securing mortgage loans COVID-19 | 56.20% | ||
Delinquent | |||
Troubled debt restructurings | |||
Troubled debt restructurings | $ 0 | $ 0 | |
Accrual Status | |||
Troubled debt restructurings | |||
Number of Loans | loan | 3 | 3 | |
Troubled debt restructurings | $ 558,000 | $ 565,000 | |
Nonaccrual Status | |||
Troubled debt restructurings | |||
Number of Loans | loan | 2 | 2 | |
Troubled debt restructurings | $ 439,000 | $ 467,000 | |
Loans modified in troubled debt restructuring | |||
Troubled debt restructurings | |||
Number of Loans | loan | 0 | 0 | |
Additional disclosures | |||
Commitments to lend additional funds to borrowers | $ 0 | ||
One- to four-family residential | |||
Troubled debt restructurings | |||
Troubled debt restructurings | 997,000 | $ 1,032,000 | |
Additional disclosures | |||
Loan deferrals granted, COVID-19 | $ 100,300,000 | ||
Percentage of forbearance loans representing total loans receivable, COVID-19 | 7.60% | ||
Mortgage loans in process of foreclosure, number of contracts | loan | 1 | 2 | |
Mortgage loans in process of foreclosure, total value | $ 99,000 | $ 251,000 | |
Percentage of mortgage loans representing total loan portfolio balance | 97.10% | ||
Percentage of current loan balance to current tax | 45.70% | ||
Amount of loan deferred resumed payment of principal and interest, COVID-19 | $ 74,700,000 | ||
Percentage of loan deferred which resumed payment of principal and interest, COVID-19 | 74.50% | ||
Amount of loan deferred making payment of interest, COVID-19 | $ 23,000,000 | ||
Percentage of loan deferred making payment of interest, COVID-19 | 22.90% | ||
Amount of loan deferred making escrow-only payment, COVID-19 | $ 2,100,000 | ||
Percentage of loan deferred making escrow-only payment, COVID-19 | 2.10% | ||
Amount of loan deferred still in deferral, COVID-19 | $ 536,000 | ||
Percentage of loan deferred still in deferral, COVID-19 | 0.50% | ||
One- to four-family residential | Accrual Status | |||
Troubled debt restructurings | |||
Number of Loans | loan | 3 | 3 | |
Troubled debt restructurings | $ 558,000 | $ 565,000 | |
One- to four-family residential | Nonaccrual Status | |||
Troubled debt restructurings | |||
Number of Loans | loan | 2 | 2 | |
Troubled debt restructurings | $ 439,000 | $ 467,000 | |
Non-residential Mortgage | |||
Additional disclosures | |||
Loan deferrals granted, COVID-19 | $ 4,400,000 | ||
Percentage of forbearance loans representing total loans receivable, COVID-19 | 0.30% | ||
Commercial mortgage, commercial and industrial and home equity lines of credit | |||
Additional disclosures | |||
Loan deferrals granted, COVID-19 | $ 4,400,000 | ||
Amount of loan deferred resumed payment of principal and interest, COVID-19 | 3,900,000 | ||
Home Equity Loans and Lines of Credit | |||
Additional disclosures | |||
Amount of loan deferred resumed payment of principal and interest, COVID-19 | $ 478,000 |
Loans Receivable and Allowan_10
Loans Receivable and Allowance for Loan Losses - Collateral, Sales, Serviced for Others, Directors and Executive Officers (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable | |||||
Loans serviced for others | $ 48,800,000 | $ 48,800,000 | $ 56,700,000 | ||
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 transaction | 377,000 | ||||
Loans serviced for others, securitization for which the company continues to hold the related mortgage-backed securities | 29,700,000 | 29,700,000 | $ 35,500,000 | ||
Loans serviced for others, amount of contractually specified servicing fees earned | $ 33,000 | 46,000 | $ 69,000 | 90,000 | |
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 | $ 14,500,000 | 12,300,000 | |||
Residential mortgage loans sold, recognized gains | $ 446,000 | 289,000 | |||
Number of nonaccrual loans | loan | 2 | 2 | 5 | ||
Residential mortgage loans held for sale | $ 540,000 | $ 540,000 | $ 2,200,000 | ||
Fixed-rate mortgage loans | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Book value | $ 9,400,000 | 9,400,000 | |||
Net gain recognized on the securitization transaction | $ 0 | $ 377,000 |
Securities Sold Under Agreeme_3
Securities Sold Under Agreements to Repurchase - Summary of Repurchase Liability by Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
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% | 1.81% |
Over 3 years to 4 years | ||
Securities sold under agreements to repurchase | ||
Repurchase Liability | $ 10,000 | $ 5,000 |
Over 3 years to 4 years | Weighted Average | ||
Securities sold under agreements to repurchase | ||
Rate (as a percent) | 1.81% | 1.88% |
Over 4 years to 5 years | ||
Securities sold under agreements to repurchase | ||
Repurchase Liability | $ 5,000 | |
Over 4 years to 5 years | Weighted Average | ||
Securities sold under agreements to repurchase | ||
Rate (as a percent) | 1.73% |
Securities Sold Under Agreeme_4
Securities Sold Under Agreements to Repurchase - Summary of Securities Pledged (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
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 | $ 10,697 |
Fair Value of Securities | 11,290 |
Repurchase Liability | 10,000 |
Amount at Risk | $ 1,290 |
Weighted Average Months to Maturity | 42 months |
Offsetting of Financial Liabi_3
Offsetting of Financial Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
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 | $ 3 | $ 22 | $ 5 | $ 44 |
Interest cost | 45 | 44 | 90 | 87 |
Net periodic benefit cost | $ 48 | $ 66 | $ 95 | $ 131 |
Employee Stock Ownership Plan -
Employee Stock Ownership Plan - Loan, Expense and Shares (Details) - USD ($) | Jan. 01, 2009 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Employee Stock Ownership Plan | ||||||
Allocated shares | 516,403 | 516,403 | 507,304 | |||
Unearned shares | 366,997 | 366,997 | 391,464 | |||
Total ESOP shares | 883,400 | 883,400 | 898,768 | |||
Fair value of unearned shares, in thousands | $ 9,531,000 | $ 9,531,000 | $ 9,407,000 | |||
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 | $ 315,000 | $ 302,000 | $ 632,000 | $ 641,000 | ||
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
ESOP restoration | Certain executives | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | ||||
Accrued (reversed) benefits | $ 35,000 | $ 10,000 | $ 53,000 | $ 75,000 |
Share-Based Compensation - Plan
Share-Based Compensation - Plan Provisions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-Based Compensation | ||||
Compensation expense | $ 92 | $ 209 | $ 205 | $ 366 |
Income tax benefit | $ 25 | $ 57 | $ 56 | $ 100 |
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 | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Common Stock | |||||
Stock option activity | |||||
Exercised (in shares) | 59,280 | 81,827 | |||
Stock Options | |||||
Stock option activity | |||||
Balance at beginning of period (in shares) | 3,085 | 116,409 | 116,409 | ||
Exercised (in shares) | 81,827 | ||||
Balance at end of period (in shares) | 34,582 | 3,085 | 34,582 | 3,085 | 116,409 |
Options vested and exercisable (in shares) | 3,085 | ||||
Weighted Average Exercise Price | |||||
Balance at beginning of period (in dollars per share) | $ 23.62 | $ 17.53 | $ 17.53 | ||
Exercised (in dollars per share) | 17.36 | ||||
Balance at end of period (in dollars per share) | $ 17.92 | 23.62 | $ 17.92 | $ 23.62 | $ 17.53 |
Options vested and exercisable (in dollars per share) | $ 23.62 | ||||
Remaining Contractual Life | |||||
Options outstanding | 1 year 2 months 1 day | 4 months 6 days | 1 year 8 months 1 day | 8 months 19 days | |
Options vested and exercisable | 1 year 2 months 1 day | ||||
Aggregate Intrinsic Value | |||||
Beginning of period | $ 1 | $ 1,562 | $ 1,562 | ||
Exercised | $ 437 | 725 | |||
End of period | 203 | 7 | 203 | $ 1 | $ 1,562 |
Options vested and exercisable | 7 | ||||
Stock option activity | |||||
Intrinsic value of stock options exercised | 437 | 725 | |||
Proceeds received from stock options exercised | 1,029 | 1,421 | |||
Tax benefits realized from stock options exercised | $ 105 | $ 158 | |||
Unrecognized compensation costs | $ 0 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Awards (Details) - USD ($) | Apr. 05, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Restricted Stock | ||||
Restricted Stock Awards | ||||
Unvested at beginning of period (in shares) | 23,695 | 20,249 | ||
Granted (in shares) | 10,849 | 13,444 | ||
Vested (in shares) | 11,336 | 9,998 | ||
Unvested at end of period (in shares) | 23,208 | 23,695 | ||
Weighted Average Grant Date Fair Value | ||||
Unvested at beginning of period (in dollars per share) | $ 24.24 | $ 28.78 | ||
Granted (in dollars per share) | 26.67 | 21.05 | ||
Vested (in dollars per share) | 25.81 | 29.16 | ||
Unvested at end of period (in dollars per share) | $ 24.61 | $ 24.24 | ||
Unrecognized compensation | ||||
Unrecognized compensation costs | $ 490,000 | |||
Restricted Stock | Equity Incentive Plan, 2019 | ||||
Restricted Stock Awards | ||||
Granted (in shares) | 10,849 | |||
Unrecognized compensation | ||||
Vesting period | 3 years | |||
Restricted Stock Units Based on a Performance Condition | ||||
Restricted Stock Awards | ||||
Unvested at beginning of period (in shares) | 40,585 | 35,976 | ||
Granted (in shares) | 13,016 | 16,129 | ||
Vested (in shares) | 7,473 | 7,680 | ||
Forfeited (in shares) | 4,545 | 3,840 | ||
Unvested at end of period (in shares) | 41,583 | 40,585 | ||
Weighted Average Grant Date Fair Value | ||||
Unvested at beginning of period (in dollars per share) | $ 25.83 | $ 29.16 | ||
Granted (in dollars per share) | 26.67 | 21.05 | ||
Vested (in dollars per share) | 30.73 | 29.53 | ||
Forfeited (in dollars per share) | 30.73 | 29.53 | ||
Unvested at end of period (in dollars per share) | $ 24.68 | $ 25.83 | ||
Unrecognized compensation | ||||
Unrecognized compensation costs | $ 391,000 | |||
Unrecognized compensation costs, period of recognition | 3 years | |||
Restricted Stock Units Based on a Performance Condition | Equity Incentive Plan, 2019 | ||||
Restricted Stock Awards | ||||
Granted (in shares) | 13,016 | |||
Unrecognized compensation | ||||
Vesting period | 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) | 10,147 | 8,994 | ||
Granted (in shares) | 3,254 | 4,032 | ||
Vested (in shares) | 1,628 | 1,197 | ||
Forfeited (in shares) | 1,377 | 1,682 | ||
Unvested at end of period (in shares) | 10,396 | 10,147 | ||
Weighted Average Grant Date Fair Value | ||||
Unvested at beginning of period (in dollars per share) | $ 24.69 | $ 25.74 | ||
Granted (in dollars per share) | 25.94 | 22.16 | ||
Vested (in dollars per share) | 28.32 | 24.44 | ||
Forfeited (in dollars per share) | 28.32 | 22.44 | ||
Unvested at end of period (in dollars per share) | $ 24.03 | $ 24.69 | ||
Unrecognized compensation | ||||
Unrecognized compensation costs | $ 99,000 | |||
Unrecognized compensation costs, period of recognition | 3 years | |||
Restricted Stock Units Based on a Market Condition | Equity Incentive Plan, 2019 | ||||
Restricted Stock Awards | ||||
Granted (in shares) | 3,254 | |||
Unrecognized compensation | ||||
Vesting period | 3 years | |||
Assumptions used in the Monte Carlo valuation of PRSUs | ||||
Term used for risk-free rate | 2 years 8 months 26 days | |||
Term used for risk-free rate and historical volatility | 2 years 8 months 26 days | |||
Risk-free interest rate (as a percent) | 0.32% | |||
Closing stock price (in dollars per share) | $ 26.77 | $ 24.03 | ||
Annualized volatility (as a percent) | 38.50% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share | ||||
Net income | $ 4,058 | $ 4,291 | $ 9,071 | $ 8,764 |
Income allotted to participating securities | (21) | (37) | (24) | (48) |
Net income available to common shareholders | $ 4,037 | $ 4,254 | $ 9,047 | $ 8,716 |
Weighted-average number of shares used in: | ||||
Basic earnings per share (in shares) | 9,117,467 | 9,092,287 | 9,124,086 | 9,164,877 |
Dilutive common stock equivalents: | ||||
Stock options and restricted stock units (in shares) | 44,881 | 46,848 | 41,917 | 63,544 |
Diluted earnings per share (in shares) | 9,162,348 | 9,139,135 | 9,166,003 | 9,228,421 |
Net income per common share, basic (in dollars per share) | $ 0.44 | $ 0.47 | $ 0.99 | $ 0.95 |
Net income per common share, diluted (in dollars per share) | $ 0.44 | $ 0.47 | $ 0.99 | $ 0.94 |
Other Comprehensive Income an_3
Other Comprehensive Income and Loss - Changes in Components of Accumulated Other Comprehensive Income and Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Changes in the components of accumulated other comprehensive loss, net of taxes | ||||
Balances at beginning of period | $ (251,652) | $ (243,919) | $ (248,708) | $ (243,890) |
Other comprehensive (income) loss, net of taxes | 190 | 93 | 276 | 195 |
Net current period other comprehensive loss | 190 | 93 | 276 | 195 |
Balances at end of period | (251,245) | (244,027) | (251,245) | (244,027) |
Accumulated Other Comprehensive Loss | ||||
Changes in the components of accumulated other comprehensive loss, net of taxes | ||||
Balances at beginning of period | 8,777 | 7,770 | 8,691 | 7,668 |
Net current period other comprehensive loss | 190 | 93 | 276 | 195 |
Balances at end of period | 8,967 | 7,863 | 8,967 | 7,863 |
Unfunded Pension Liability | ||||
Changes in the components of accumulated other comprehensive loss, net of taxes | ||||
Balances at beginning of period | 8,967 | 8,178 | 8,967 | 8,178 |
Balances at end of period | 8,967 | 8,178 | 8,967 | 8,178 |
Unrealized (gain) loss on securities | ||||
Changes in the components of accumulated other comprehensive loss, net of taxes | ||||
Balances at beginning of period | (190) | (408) | (276) | (510) |
Other comprehensive (income) loss, net of taxes | (19) | 3 | (26) | |
Net current period other comprehensive loss | 190 | 93 | 276 | 195 |
Balances at end of period | (315) | (315) | ||
Other comprehensive (income) loss, net of taxes | ||||
Changes in the components of accumulated other comprehensive loss, net of taxes | ||||
Other comprehensive (income) loss, net of taxes | (19) | 3 | (26) | |
Amount Reclassified from Other Comprehensive Income | ||||
Changes in the components of accumulated other comprehensive loss, net of taxes | ||||
Other comprehensive (income) loss, net of taxes | 190 | 112 | 273 | 221 |
Amounts reclassified from other comprehensive income, net of taxes | $ 190 | $ 112 | $ (273) | $ (221) |
Other Comprehensive Income an_4
Other Comprehensive Income and Loss - Tax Effect on Each Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Tax effect on each component of other comprehensive loss | ||||
Pretax amount | $ 260 | $ 127 | $ 377 | $ 266 |
Tax | (70) | (34) | (101) | (71) |
After Tax Amount | 190 | 93 | 276 | 195 |
Unrealized (gain) loss on securities | ||||
Tax effect on each component of other comprehensive loss | ||||
Pretax amount | (26) | 4 | (35) | |
Tax | 7 | (1) | 9 | |
After Tax Amount | (19) | 3 | (26) | |
Amount Reclassified from Other Comprehensive Income | ||||
Tax effect on each component of other comprehensive loss | ||||
Pretax amount | 260 | 153 | 373 | 301 |
Tax | (70) | (41) | (100) | (80) |
After Tax Amount | $ 190 | $ 112 | $ 273 | $ 221 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues | ||||
Revenue from contracts with customers | $ 541 | $ 539 | $ 1,580 | $ 977 |
Other revenue | 59 | 43 | 125 | 119 |
Total other noninterest income | 70 | 47 | 180 | 108 |
Total revenue from contracts with customers and other revenue | 600 | 582 | 1,705 | 1,096 |
Service Fees on Loan and Deposit Accounts | ||||
Revenues | ||||
Revenue from contracts with customers | 499 | 519 | 1,456 | 924 |
Other revenue | 31 | 16 | 69 | 64 |
Total | 530 | 535 | 1,525 | 988 |
Other | ||||
Revenues | ||||
Revenue from contracts with customers | 42 | 20 | 124 | 53 |
Other revenue | 28 | 27 | 56 | 55 |
Total other noninterest income | $ 70 | $ 47 | $ 180 | $ 108 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lease costs: | ||||
Operating lease costs | $ 853 | $ 816 | $ 1,709 | $ 1,631 |
Short-term lease costs | 11 | 6 | 17 | 12 |
Variable lease costs | 39 | 36 | 82 | 77 |
Total lease costs | 903 | 858 | 1,808 | 1,720 |
Cash paid for amounts included in measurement of lease liabilities | 839 | 804 | 1,684 | 1,606 |
Establishment of right-of-use asset, net of incentives | $ 403 | $ 18 | $ 2,841 | $ 1,786 |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Commitments Under Non-cancellable Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Future minimum rental commitments: | ||
2021 | $ 1,562 | |
2022 | 2,951 | |
2023 | 2,600 | |
2024 | 2,349 | |
2025 | 1,661 | |
Thereafter | 4,224 | |
Total | 15,347 | |
Less present value discount | 914 | |
Present value of leases | $ 14,433 | $ 13,119 |
Leases - Other Related Informat
Leases - Other Related Information (Details) | Jun. 30, 2021 | Jun. 30, 2020 |
Leases | ||
Weighted-average remaining lease term (years) | 6 years 1 month 24 days | 5 years 7 months 20 days |
Weighted-average discount rate | 2.16% | 2.75% |
Fair Value - Estimated Fair Val
Fair Value - Estimated Fair Values (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Investment securities available for sale, at fair value | $ 3,562 | |
Investment securities held to maturity | $ 615,721 | 262,841 |
Carrying Amount | ||
Assets | ||
Cash and cash equivalents | 117,578 | 363,543 |
Investment securities available for sale, at fair value | 3,562 | |
Investment securities held to maturity | 609,074 | 247,642 |
Loans held for sale | 540 | 2,195 |
Loans receivable, net | 1,314,871 | 1,406,995 |
FHLB stock | 8,173 | 8,144 |
FRB stock | 3,152 | 3,145 |
Accrued interest receivable | 6,345 | 6,515 |
Interest rate contracts | 20 | 38 |
Liabilities | ||
Deposits | 1,678,694 | 1,659,800 |
Advances from the Federal Home Loan Bank | 141,000 | 141,000 |
Securities sold under agreements to repurchase | 10,000 | 10,000 |
Accrued interest payable | 50 | 35 |
Interest rate contracts | 20 | 38 |
Estimated Fair Value | ||
Assets | ||
Cash and cash equivalents | 117,578 | 363,543 |
Investment securities available for sale, at fair value | 3,562 | |
Investment securities held to maturity | 615,721 | 262,841 |
Loans held for sale | 543 | 2,274 |
Loans receivable, net | 1,353,738 | 1,433,489 |
FHLB stock | 8,173 | 8,144 |
FRB stock | 3,152 | 3,145 |
Accrued interest receivable | 6,345 | 6,515 |
Interest rate contracts | 20 | 38 |
Liabilities | ||
Deposits | 1,680,425 | 1,663,226 |
Advances from the Federal Home Loan Bank | 143,878 | 145,441 |
Securities sold under agreements to repurchase | 10,314 | 10,466 |
Accrued interest payable | 50 | 35 |
Interest rate contracts | 20 | 38 |
Estimated Fair Value | Level 1 | ||
Assets | ||
Cash and cash equivalents | 117,578 | 363,543 |
Accrued interest receivable | 22 | 16 |
Estimated Fair Value | Level 2 | ||
Assets | ||
Investment securities available for sale, at fair value | 3,562 | |
Investment securities held to maturity | 615,721 | 262,841 |
Loans held for sale | 543 | 2,274 |
FHLB stock | 8,173 | 8,144 |
FRB stock | 3,152 | 3,145 |
Accrued interest receivable | 1,118 | 627 |
Interest rate contracts | 20 | 38 |
Liabilities | ||
Deposits | 1,411,296 | 1,338,022 |
Advances from the Federal Home Loan Bank | 143,878 | 145,441 |
Securities sold under agreements to repurchase | 10,314 | 10,466 |
Accrued interest payable | 45 | 33 |
Interest rate contracts | 20 | 38 |
Estimated Fair Value | Level 3 | ||
Assets | ||
Loans receivable, net | 1,353,738 | 1,433,489 |
Accrued interest receivable | 5,205 | 5,872 |
Liabilities | ||
Deposits | 269,129 | 325,204 |
Accrued interest payable | $ 5 | $ 2 |
Fair Value - Recurring Basis (D
Fair Value - Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets and Liabilities Measured at Fair Value on Recurring Basis | ||
Investment securities available for sale, at fair value | $ 3,562 | |
Fair Value, Measurements, Recurring | ||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ||
Interest rate contracts - assets | $ 20 | 38 |
Interest rate contracts - liabilities | (20) | (38) |
Investment securities available for sale, at fair value | 3,562 | |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ||
Interest rate contracts - assets | 20 | 38 |
Interest rate contracts - liabilities | $ (20) | (38) |
Investment securities available for sale, at fair value | $ 3,562 |
Fair Value - Nonrecurring Basis
Fair Value - Nonrecurring Basis (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($) | Jun. 30, 2021USD ($) | |
Level 3 | ||
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses | ||
Servicing Asset, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | |
Fair Value, Measurements, Nonrecurring | ||
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses | ||
Fair value | $ 0 | |
Liabilities measured at fair value | $ 0 | $ 0 |
Fair Value, Measurements, Nonrecurring | Mortgage Servicing Assets | ||
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses | ||
Mortgage servicing assets, Fair value | 407 | |
Mortgage servicing assets, Total losses | (73) | |
Fair Value, Measurements, Nonrecurring | Level 3 | Mortgage Servicing Assets | ||
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses | ||
Mortgage servicing assets, Fair value | $ 407 | |
Discount rate | Fair Value, Measurements, Nonrecurring | Level 3 | Mortgage Servicing Assets | ||
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses | ||
Servicing Asset, Measurement Input | 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 | (13.57) | |
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 | |
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 | $ 407 | |
Minimum | Discount rate | Fair Value, Measurements, Nonrecurring | Level 3 | Mortgage Servicing Assets | ||
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses | ||
Servicing Asset, Measurement Input | 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 | 10.42 | |
Maximum | Discount rate | Fair Value, Measurements, Nonrecurring | Level 3 | Mortgage Servicing Assets | ||
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses | ||
Servicing Asset, Measurement Input | 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 | 19.61 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Jul. 29, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Subsequent Events | |||||
Quarterly cash dividend declared on common stock (in dollars per share) | $ 0.23 | $ 0.23 | $ 0.46 | $ 0.46 | |
Subsequent event | |||||
Subsequent Events | |||||
Quarterly cash dividend declared on common stock (in dollars per share) | $ 0.23 |