Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 10, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | WBKC | |
Entity Registrant Name | WOLVERINE BANCORP, INC. | |
Entity Central Index Key | 1,500,836 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 2,207,551 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks | $ 358 | $ 477 |
Interest-earning demand deposits | 40,114 | 29,209 |
Cash and cash equivalents | 40,472 | 29,686 |
Interest-earning time deposits | 5,655 | |
Investment securities held to maturity | 500 | |
Loans held for sale | 2,004 | 570 |
Loans, net of allowance for loan losses of $9,176 and $7,976 | 299,297 | 296,477 |
Premises and equipment, net | 1,343 | 1,384 |
Federal Home Loan Bank stock | 2,700 | 2,500 |
Other real estate owned | 332 | 335 |
Accrued interest receivable | 870 | 777 |
Other assets | 4,709 | 4,895 |
Total assets | 357,882 | 336,624 |
Liabilities | ||
Deposits | 235,537 | 223,529 |
Federal Home Loan Bank advances | 57,000 | 50,000 |
Interest payable and other liabilities | 3,443 | 1,557 |
Total liabilities | $ 295,980 | $ 275,086 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Common Stock, $0.01 par value per share: Authorized - 100,000,000 shares Issued and outstanding - 2,207,551 and 2,263,848 at June 30, 2015 and December 31,2014 | $ 22 | $ 23 |
Unearned employee stock ownership plan (ESOP) | 17,482 | 18,640 |
Additional paid-in capital | (1,511) | (1,564) |
Retained earnings | 45,909 | 44,439 |
Total stockholders' equity | 61,902 | 61,538 |
Total liabilities and stockholders' equity | $ 357,882 | $ 336,624 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Allowance for loan losses | $ 9,176 | $ 7,976 |
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 2,207,551 | 2,263,848 |
Common Stock, shares outstanding | 2,207,551 | 2,263,848 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest and Dividend Income | ||||
Loans | $ 3,670 | $ 3,605 | $ 7,285 | $ 6,965 |
Investment securities and other | 63 | 66 | 125 | 116 |
Total interest and dividend income | 3,733 | 3,671 | 7,410 | 7,081 |
Interest Expense | ||||
Deposits | 350 | 294 | 675 | 485 |
Borrowings | 529 | 507 | 1,054 | 1,037 |
Total interest expense | 879 | 801 | 1,729 | 1,522 |
Net Interest Income | 2,854 | 2,870 | 5,681 | 5,559 |
Provision for Loan Losses | 250 | 195 | 500 | 495 |
Net Interest Income After Provision for Loan Loss | 2,604 | 2,675 | 5,181 | 5,064 |
Noninterest Income | ||||
Service charges and fees | 75 | 54 | 142 | 105 |
Net gain on loan sales | 136 | 171 | 312 | 291 |
Net gain (loss) on sale of real estate owned | 23 | (37) | 3 | |
Other | 88 | 47 | 197 | 77 |
Total noninterest income | 299 | 296 | 614 | 476 |
Noninterest Expense | ||||
Salaries and employee benefits | 1,048 | 1,298 | 2,076 | 2,529 |
Net occupancy and equipment expense | 204 | 227 | 424 | 448 |
Information technology expense | 58 | 62 | 115 | 122 |
Federal deposit insurance corporation premiums | 58 | 61 | 104 | 114 |
Professional and services fees | 82 | 102 | 189 | 252 |
Other real estate owned expense | 18 | 39 | 30 | 58 |
Loan legal expense | 49 | 34 | 113 | 47 |
Advertising expense | 47 | 52 | 67 | 92 |
Michigan business tax | 47 | 45 | 93 | 97 |
Other | 238 | 286 | 453 | 552 |
Total noninterest expense | 1,849 | 2,206 | 3,664 | 4,311 |
Income Before Income Tax | 1,054 | 764 | 2,131 | 1,229 |
Provision for Income Taxes | 323 | 284 | 661 | 444 |
Net Income | 731 | 480 | 1,470 | 785 |
Comprehensive Income | $ 731 | $ 480 | $ 1,470 | $ 785 |
Earnings Per Share: | ||||
Basic | $ 0.36 | $ 0.23 | $ 0.72 | $ 0.37 |
Diluted | $ 0.35 | $ 0.23 | $ 0.71 | $ 0.37 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Activities | ||
Net Income | $ 1,470 | $ 785 |
Items not requiring (providing) cash | ||
Depreciation | 118 | 127 |
Deferred income taxes | (294) | |
Provision for Loan Losses | 500 | 495 |
Loss (gain) on other real estate owned | 37 | (3) |
Loans originated for sale | (11,420) | (9,515) |
Proceeds from loans sold | 10,298 | 9,248 |
Net gain on sale of loans | (312) | (291) |
Share based compensation | 157 | 160 |
Earned ESOP shares | 131 | |
Changes in Interest receivable and other assets | 392 | (349) |
Changes in Interest payable and other liabilities | 1,886 | 1,211 |
Net cash provided by operating activities | 2,963 | 1,868 |
Investing Activities | ||
Net change in interest-bearing deposits | (5,655) | |
Purchase of held to maturity securities | (500) | |
Proceeds from calls, maturities and pay-downs of held to maturity securities | 66 | |
Net change in loans | (3,448) | (28,312) |
Proceeds from sale of real estate owned | 87 | 525 |
Purchase of FHLB stock | (200) | |
Purchase of premises and equipment | (77) | |
Net cash used by investing activities | (9,793) | (27,721) |
Financing Activities | ||
Net change in demand deposits, money market, checking and savings accounts | 9,075 | 12,818 |
Net change in certificates of deposit | 2,934 | 35,434 |
Repayment of Federal Home Loan Bank advances | (3,000) | (10,000) |
Proceeds from Federal Home Loan Bank advances | 10,000 | |
Proceeds from stock options exercised | 28 | |
Purchase of common stock | (1,394) | (442) |
Net cash provided by financing activities | 17,615 | 37,838 |
Change in Cash and Cash Equivalents | 10,785 | 11,985 |
Cash and Cash Equivalents, Beginning of Period | 29,686 | 26,181 |
Cash and Cash Equivalents, End of Period | 40,472 | 38,166 |
Supplemental Disclosures of Cash Flows Information | ||
Interest paid | 1,721 | 1,521 |
Income taxes paid | 485 | 600 |
Loans transferred to real estate owned | $ 128 | $ 255 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Unearned ESOP Shares | Retained Earnings |
Balances at Dec. 31, 2014 | $ 61,538 | $ 23 | $ 18,640 | $ (1,564) | $ 44,439 |
Net Income | 1,470 | 1,470 | |||
Purchase of 58,183 shares of common stock | (1,394) | (1) | (1,393) | ||
Share based compensation expense | 157 | 157 | |||
ESOP shares earned | 131 | 78 | 53 | ||
Balances at Jun. 30, 2015 | $ 61,902 | $ 22 | $ 17,482 | $ (1,511) | $ 45,909 |
Consolidated Statement of Chan7
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) | 6 Months Ended |
Jun. 30, 2015shares | |
Treasury stock, shares purchased | 58,183 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Basis of Presentation | Note 1: Basis of Presentation The unaudited condensed consolidated financial statements of Wolverine Bancorp, Inc. (the “Company”), the holding company of Wolverine Bank (the “Bank”), have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) believed necessary for a fair presentation have been included. The condensed consolidated balance sheet of the Company as of December 31, 2014 has been derived from the audited consolidated balance sheet of the Company as of that date. Operating results for the three and six month periods ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto filed as part of our Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 31, 2015. |
Accounting Developments
Accounting Developments | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Developments | Note 2: Accounting Developments The FASB has issued ASU No. 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement .” (a) (b) (c) (d) Intangibles - Goodwill and Other - Internal-Use Software, FASB Accounting Standards Codification 1 2 The FASB has issued an ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” FASB Accounting Standards Codification • Placing more emphasis on risk of loss when determining a controlling financial interest. A reporting organization may no longer have to consolidate a legal entity in certain circumstances based solely on its fee arrangement, when certain criteria are met. • Reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (VIE). • Changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. The ASU will be effective for periods beginning after December 15, 2015, for public companies. Early adoption is permitted, including adoption in an interim period. The Company will adopt the methodologies prescribed by this ASU by the date required, and is still evaluating the impact the ASU will have on its financial position or results of operations. In May 2014, the FASB, in joint cooperation with IASB, issued ASU 2014-09, “Revenue from Contracts with Customers.” |
Securities
Securities | 6 Months Ended |
Jun. 30, 2015 | |
Securities | Note 3: Securities The amortized cost and approximate fair values of securities are as follows: Amortized Gross Gross Approximate Held to Maturity Securities: June 30, 2015 Treasury bond $ 500 $ — $ — $ 500 The amortized cost and fair value of securities at June 30, 2015, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2015 Amortized Cost Fair Value Within one year $ 500 $ 500 One to five years — — Five to ten years — — After ten years — — Totals $ 500 $ 500 There were no sales of securities during the three or six months ended June 30, 2015 and 2014. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2015 | |
Loans and Allowance for Loan Losses | Note 4: Loans and Allowance for Loan Losses Categories of loans include: June 30, 2015 December 31, 2014 Real Estate One-to four-family $ 42,751 $ 44,316 Home Equity 6,390 6,645 Commercial mortage loans Commercial real estate 159,942 153,705 Multifamily 63,182 61,204 Land 11,931 10,060 Construction 19,427 21,673 Commercial Non-mortgage 15,053 14,717 Consumer 1,299 1,142 Total loans 319,975 313,462 Less Net deferred loan fees, premiums and discounts 559 555 Undisbursed portion of loan 10,943 8,454 Allowance for loan losses 9,176 7,976 Net Loans $ 299,297 $ 296,477 The risk characteristics of each loan portfolio segment are as follows: 1-4 Family, Home Equity, and Consumer With respect to residential loans that are secured by one-to four-family residences and are primarily owner-occupied, we generally establish a maximum loan-to-value ratio and require PMI if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in one-to four-family residences, and consumer loans are typically secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured such as small installment loans. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Home equity loans secured by second mortgages have greater risk than one- to four-family residential mortgage loans secured by first mortgages. We face the risk that the collateral will be insufficient to compensate us for loan losses and costs of foreclosure. When customers default on their loans, we attempt to foreclose on the property and resell the property as soon as possible to minimize foreclosure and carrying costs. However, the value of the collateral may not be sufficient to compensate us for the amount of the unpaid loan and we may be unsuccessful in recovering the remaining balance from those customers. Particularly with respect to our home equity loans, decreases in real estate values could adversely affect the value of property used as collateral for our loans. Consumer and other loans generally have greater risk compared to longer-term loans secured by improved, owner-occupied real estate, particularly consumer loans that are secured by rapidly depreciable assets, such as automobiles. In these cases, any repossessed collateral for a defaulted loan may not provide an adequate source of repayment of the outstanding loan balance. As a result, consumer loan collections are dependent on the borrower’s continuing financial stability and thus are more likely to be adversely affected by job loss, divorce, illness or personal bankruptcy. Commercial real estate and multifamily Commercial real estate and multifamily loans generally have greater credit risk than the owner-occupied one- to four-family residential mortgage loans that we originate for retention in our loan portfolio. Repayment of these loans generally depends, in large part, on sufficient income from the property securing the loan or the borrower’s business to cover operating expenses and debt service. These types of loans typically involve larger loan balances to single borrowers or groups of related borrowers compared to one- to four-family residential mortgage loans. Changes in economic conditions that are beyond the control of the borrower may affect the value of the security for the loan, the future cash flow of the affected property or business, or the marketability of a construction project with respect to loans originated for the acquisition and development of property. Additionally, due to declining property values in our primary market area and in Michigan, the loan to value ratios of many of our commercial real estate and multifamily loans have increased significantly from the loan to value ratios that were assigned to these loans at the time of origination. Land Land loans generally have greater credit risk than the owner-occupied one-to four-family residential mortgage loans that we originate for retention in our portfolio. Repayment of these loans generally depends, in large part, on the sale of the land. The sale of land can either take place when the land is undeveloped, or developed. Generally, other cash flow sources of the borrower are utilized to make additional payments on land loans. Changes in economic conditions that are beyond the control of the borrower may affect the value of the security for the loan, the future cash flow of the affected property or business, or the marketability of a construction project with respect to loans originated for the acquisition and development of property. Additionally, due to declining property values in our primary market area and in Michigan, the loan to value ratios of many of our land loans have increased significantly from the loan to value ratios that were assigned to these loans at the time of origination. Construction Construction loans include those for one- to four-family residential properties and commercial properties, including multifamily loans and commercial “mixed-use” buildings and homes built by developers on speculation. With respect to construction loans for one- to four-family residential properties and which are primarily owner-occupied, we generally establish a maximum loan-to-value ratio and require PMI if that ratio is exceeded. These are generally “interest-only” loans during the construction period which typically does not exceed nine months. Construction loans for commercial real estate are made in accordance with a schedule reflecting the cost of construction, and are generally limited to a 75% loan-to-completed appraised value ratio. For all construction loans, we generally require that a commitment for permanent financing be in place prior to closing the construction loan Repayment of one-to four-family residential property loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment of commercial property loans and homes built by developers on speculation is normally expected from the property’s eventual rental income, income from the borrower’s operations, the personal resources of the guarantor, or the sale of the subject property. Generally, before making a commitment to fund a construction loan, we require an appraisal of the property by a state-certified or state-licensed appraiser. We generally review and inspect properties before disbursement of funds during the term of the construction loan. Construction financing generally involves greater credit risk than long-term financing on improved, owner-occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the value of the property at completion of construction compared to the estimated cost (including interest) of construction and other assumptions. If the estimate of construction cost is inaccurate, we may be required to advance additional funds beyond the amount originally committed in order to protect the value of the property. Moreover, if the estimated value of the completed project is inaccurate, the borrower may hold a property with a value that is insufficient to assure full repayment of the construction loan upon the sale of the property. Construction loans also expose us to the risk that improvements will not be completed on time in accordance with specifications and projected costs. In addition, the ultimate sale or rental of the property may not occur as anticipated. Commercial non-mortgage Commercial non-mortgage loans generally have a greater credit risk than residential mortgage loans. Unlike residential mortgage loans, which generally are made on the basis of the borrower’s ability to make repayment from his or her employment and other income, and which are secured by real property whose value tends to be more easily ascertainable, commercial non-mortgage loans are of higher risk and typically are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. As a result, the availability of funds for the repayment of commercial non-mortgage loans may be substantially dependent on the success of the business itself. Further, the collateral securing the loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the business. In determining the appropriate level of allowance for loan loss, we analyze various components of our portfolio. The following components are analyzed: all substandard loans on an individual basis; all loans that are designated special mention or closely monitored; loans not classified according to purpose or collateral type; and overdrawn deposit account balances. We also factor in historical loss experience and qualitative considerations, including trends in charge offs and recoveries; trends in delinquencies and impaired/classified loans; effects of credit concentrations; changes in underwriting standards and loan review system; experience in lending staff; current industry conditions; and current market conditions. In instances where risk and loss exposure is clearly identified with a particular asset, the asset or a portion of the asset will be charged off. The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of June 30, 2015, December 31, 2014 and June 30, 2014: Loan Class 1-4 Family Home Commercial Multifamily Land Construction Commerical Non-Mortage Consumer Total Year to date analysis as of June 30, 2015 Allowance for loan losses: Balance, beginning of period $ 881 $ 100 $ 3,573 $ 1,391 $ 1,205 $ 539 $ 269 $ 18 $ 7,976 Provision charged to expense 142 12 3 131 77 83 48 4 $ 500 Losses charged off (45 ) — — — — — — (1 ) $ (46 ) Recoveries 22 — 715 — 7 — — 2 $ 746 Balance, end of period $ 1,000 $ 112 $ 4,291 $ 1,522 $ 1,289 $ 622 $ 317 $ 23 $ 9,176 Ending Balance: individually evaluated for impairment — — 200 100 850 — — — $ 1,150 Ending balance: collectively evaluated for impairment $ 1,000 $ 112 $ 4,091 $ 1,422 $ 439 $ 622 $ 317 $ 23 $ 8,026 Loans: Ending Balance 42,751 6,390 159,942 63,182 11,931 19,427 15,053 1,299 319,975 Ending Balance: individually evaluated for impairment 1,550 — 13,005 8,058 2,703 — 317 — 25,633 Ending balance: collectively evaluated for impairment 41,201 6,390 146,937 55,124 9,228 19,427 14,736 1,299 294,342 Loan Class 1-4 Family Home Commercial Multifamily Land Construction Commerical Non-Mortage Consumer Total Quarter to date analysis as of June 30, 2015 Allowance for loan losses: Balance, beginning of period $ 874 $ 91 $ 3,743 $ 1,301 $ 1,362 $ 617 $ 229 $ 19 $ 8,236 Provision charged to expense 120 21 (128 ) 221 (80 ) 5 88 3 250 Losses charged off — — — — — — — — — Recoveries 6 — 676 — 7 — — 1 690 Balance, end of period $ 1,000 $ 112 $ 4,291 $ 1,522 $ 1,289 $ 622 $ 317 $ 23 $ 9,176 Loan Class 1-4 Family Home Commercial Multifamily Land Construction Commerical Non-Mortage Consumer Total Year to date analysis as of December 31, 2014 Allowance for loan losses: Balance, beginning of period $ 1,354 $ 251 $ 2,861 $ 1,514 $ 1,145 $ 285 $ 157 $ 30 $ 7,597 Provision charged to expense (475 ) (151 ) 702 (123 ) (33 ) 1,004 112 (16 ) 1,020 Losses charged off (55 ) — — — — (750 ) — (1 ) (806 ) Recoveries 57 — 10 — 93 — — 5 165 Balance, end of period $ 881 $ 100 $ 3,573 $ 1,391 $ 1,205 $ 539 $ 269 $ 18 $ 7,976 Ending Balance: individually evaluated for impairment — — 200 100 850 — — — 1,150 Ending balance: collectively evaluated for impairment $ 881 $ 100 $ 3,373 $ 1,291 $ 355 $ 539 $ 269 $ 18 $ 6,826 Loans: Ending Balance 44,316 6,645 153,705 61,204 10,060 21,673 14,717 1,142 313,462 Ending Balance: individually evaluated for impairment 1,645 63 8,956 8,192 3,224 5,349 351 — 27,780 Ending balance: collectively evaluated for impairment $ 42,671 $ 6,582 $ 144,749 $ 53,012 $ 6,836 $ 16,324 $ 14,366 $ 1,142 $ 285,682 Loan Class 1-4 Family Home Commercial Multifamily Land Construction Commerical Non-Mortage Consumer Total Year to date analysis as of June 30, 2014 Allowance for loan losses: Balance, beginning of period $ 1,354 $ 251 $ 2,861 $ 1,514 $ 1,145 $ 285 $ 157 $ 30 $ 7,597 Provision charged to expense (363 ) (97 ) 311 (181 ) 221 523 96 (15 ) 495 Losses charged off (30 ) — — — — — — (1 ) (31 ) Recoveries 26 — 7 — 11 — — 3 47 Balance, end of period $ 987 $ 154 $ 3,179 $ 1,333 $ 1,377 $ 808 $ 253 $ 17 $ 8,108 Ending Balance: individually evaluated for impairment — — 200 100 850 500 — — 1,650 Ending balance: collectively evaluated for impairment $ 987 $ 154 $ 2,979 $ 1,233 $ 527 $ 308 $ 253 $ 17 $ 6,458 Loans: Ending Balance 50,397 7,219 147,191 60,248 9,568 23,609 12,801 1,144 312,177 Ending Balance: individually evaluated for impairment 1,449 63 9,779 8,316 3,888 5,349 595 — 29,439 Ending balance: collectively evaluated for impairment $ 48,948 $ 7,156 $ 137,412 $ 51,932 $ 5,680 $ 18,260 $ 12,206 $ 1,144 $ 282,738 Loan Class 1-4 Family Home Commercial Multifamily Land Construction Commerical Non-Mortage Consumer Total Quarter to date analysis as of June 30, 2014 Allowance for loan losses: Balance, beginning of period $ 1,006 $ 148 $ 3,475 $ 1,338 $ 1,422 $ 390 $ 126 $ 14 $ 7,919 Provision charged to expense (5 ) 6 (300 ) (5 ) (49 ) 418 127 3 195 Losses charged off (30 ) — — — — — — (1 ) (31 ) Recoveries 16 — 4 — 4 — — 1 25 Balance, end of period $ 987 $ 154 $ 3,179 $ 1,333 $ 1,377 $ 808 $ 253 $ 17 $ 8,108 Consistent with regulatory guidance, charge offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. Our policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined. For all loan portfolio segments except one-to-four family residential loans and consumer loans, we promptly charge off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral. We charge off one-to-four family residential and consumer loans, or portions thereof, when we reasonably determine the amount of the loss. We adhere to timeframes established by applicable regulatory guidance which provides for the charge off of one-to-four family first and junior lien mortgages to the net realizable value less costs to sell when the loan is 180 days past due, charge off of unsecured open-end loans when the loan is 180 days past due, and charge down to the net realizable value when other secured loans are 120 days past due. Loans at these respective delinquency thresholds for which we can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off. The following table presents the credit risk profile of our loan portfolio based on rating category and payment activity as of June 30, 2015 and December 31, 2014: 1-4 Family Home Equity Commercial Real Estate Multifamily 2015 2014 2015 2014 2015 2014 2015 2014 Pass $ 39,197 $ 40,253 $ 6,390 $ 6,645 $ 136,685 $ 131,833 $ 49,410 $ 47,308 Pass (Closely Monitored) 2,054 2,446 — — 9,246 10,446 9,211 9,244 Special Mention 229 413 — — 1,429 2,383 — — Substandard 1,271 1,204 — — 12,582 9,043 4,561 4,652 Doubtful — — — — — — — — Loss — — — — — — — — $ 42,751 $ 44,316 $ 6,390 $ 6,645 $ 159,942 $ 153,705 $ 63,182 $ 61,204 Land Construction Mortgage Consumer Total 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 Pass 7,794 5,160 19,427 18,213 14,404 14,023 1,299 1,142 274,606 264,577 Pass (Closely Monitored) 1,900 2,156 — — 332 343 — — 22,743 24,635 Special Mention — — — — — 19 — — 1,658 2,815 Substandard 2,237 2,744 — 3,460 317 332 — — 20,968 21,435 Doubtful — — — — — — — — — — Loss — — — — — — — — — — $ 11,931 $ 10,060 $ 19,427 $ 21,673 $ 15,053 $ 14,717 $ 1,299 $ 1,142 $ 319,975 $ 313,462 We categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation and current economic trends, among other factors. We analyze loans individually by classifying the loans as to credit risk. This analysis is performed during the loan approval process and is updated as circumstances warrant. The Pass asset quality rating encompasses assets that have performed as expected. These assets generally do not have delinquency or servicing issues. Loans assigned this rating include loans to borrowers possessing solid credit quality with acceptable risk. Borrowers in these grades are differentiated from higher grades on the basis of size (capital and/or revenue), leverage, asset quality, stability of the industry or specific market area and quality/coverage of collateral. These borrowers generally have a history of consistent earnings and reasonable leverage. The Closely Monitored asset quality rating encompasses assets that have been brought to the attention of management and may, if not corrected, warrant a more serious quality rating by management. These assets are usually in the first phase of a deficiency situation and may possess similar criteria as Special Mention assets. This grade includes loans to borrowers which require special monitoring because of deteriorating financial results, declining credit ratings, decreasing cash flow, increasing leverage, marginal collateral coverage or industry stress that has resulted or may result in a changing overall risk profile. The Special Mention asset quality rating encompasses assets that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. This grade is intended to include loans to borrowers whose credit quality has clearly deteriorated and where risk of further decline is possible unless active measures are taken to correct the situation. Weaknesses are considered potential at this state and are not yet fully defined. The Substandard asset quality rating encompasses assets that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any; assets having a well-defined weakness(es) based upon objective evidence; assets characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected; or the possibility that liquidation will not be timely. Loans categorized in this grade possess a well defined credit weakness and the likelihood of repayment from the primary source is uncertain. Significant financial deterioration has occurred and very close attention is warranted to ensure the full repayment without loss. Collateral coverage may be marginal and the accrual of interest has been suspended. The Doubtful asset quality rating encompasses assets that have all of the weaknesses of those classified as Substandard. In addition, these weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The Loss asset quality rating encompasses assets that are considered uncollectible and of such little value that their continuance as assets of the Bank is not warranted. A loss classification does not mean that an asset has no recovery or salvage value; instead, it means that it is not practical or desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be realized in the future. The following table is a summary of our past due and non-accrual loans as of June 30, 2015 and December 31, 2014: As of June 30, 2015 30-59 Days 60-89 Days Greater Total Past Current Total Total Total 1-4 Family $ 149 $ — $ 48 $ 197 $ 42,554 $ 42,751 $ — $ 66 Home Equity — — — — 6,390 6,390 — — Commercial Real Estate 3,866 691 181 4,738 155,204 159,942 — 5,241 Multifamily — — — — 63,182 63,182 — — Land — — 2,237 2,237 9,694 11,931 — 2,408 Construction — — — — 19,427 19,427 — — Commercial Non-Mortgage — — — — 15,053 15,053 — — Consumer — — — — 1,299 1,299 — — Total $ 4,015 $ 691 $ 2,466 $ 7,172 $ 312,803 $ 319,975 $ — $ 7,715 As of December 31, 2014: 30-59 Days 60-89 Days Greater Total Past Current Total Total Total 1-4 Family $ 334 $ 152 $ 107 $ 593 $ 43,723 $ 44,316 $ — $ 107 Home Equity — — — — 6,645 6,645 — — Commercial Real Estate 818 634 649 2,101 151,604 153,705 — 1,339 Multifamily — — — — 61,204 61,204 — — Land — — 2,700 2,700 7,360 10,060 — 2,700 Construction 3,960 — — 3,960 17,713 21,673 — 3,960 Commercial Non-Mortgage — — 19 19 14,698 14,717 — 19 Consumer — — — — 1,142 1,142 — — Total $ 5,112 $ 786 $ 3,475 $ 9,373 $ 304,089 $ 313,462 $ — $ 8,125 Nonaccrual Loan and Past Due Loans. The accrual of interest is discontinued on all loan classes at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. Subsequent payments on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. We generally require a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status. A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable we will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include non-performing commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Interest income on loans individually classified as impaired is recognized on a cash basis after all past due and current principal payments have been made. The following table presents impaired loans at June 30, 2015: Recorded Unpaid Specific QTD Average YTD Average QTD Interest YTD Interest Loans without a specific valuation allowance : 1-4 Family $ 1,373 $ 1,562 $ — $ 1,478 $ 1,474 $ 16 $ 34 Home Equity — — — 30 41 — — Commercial real estate 10,459 12,627 — 10,855 11,029 51 117 Multi Family 6,719 7,533 — 6,750 6,782 82 162 Land 466 740 — 488 326 7 14 Construction — 2 — — 1,783 — — Commercial Non-Mortgage — — — — 6 — — Consumer — — — — — — — Loans with a specific valuation allowance : 1-4 Family $ 177 $ 177 $ — $ 177 $ 177 $ 2 $ 6 Home Equity — — — — — — — Commercial real estate 2,546 2,546 200 2,567 2,687 43 91 Multi Family 1,339 1,339 100 1,341 1,342 20 40 Land 2,237 3,937 850 2,323 2,448 — — Construction — — — — — — — Commercial Non-Mortgage 317 317 — 321 324 6 11 Consumer — — — — — — — Totals 1-4 Family $ 1,550 $ 1,739 $ — $ 1,655 $ 1,651 $ 18 $ 40 Home Equity — — — 30 41 — — Commercial real estate 13,005 15,173 200 13,422 13,716 94 208 Multi Family 8,058 8,872 100 8,091 8,124 102 202 Land 2,703 4,677 850 2,811 2,774 7 14 Construction — 2 — — 1,783 — — Commercial Non-Mortgage 317 317 — 321 330 6 11 Consumer — — — — — — — Total $ 25,633 $ 30,780 $ 1,150 $ 26,330 $ 28,419 $ 227 $ 475 The following table presents impaired loans at December 31, 2014: Recorded Unpaid Specific YTD Average YTD Loans without a specific valuation allowance 1-4 Family $ 1,467 $ 1,643 $ — $ 1,472 $ 77 Home Equity 63 63 — 65 2 Commercial Real Estate 6,029 8,309 — 6,680 323 Multifamily 6,847 7,661 — 6,941 392 Land 524 805 — 504 4 Construction 5,349 4,712 — 3,664 57 Commercial Non-Mortgage 19 19 — 137 5 Consumer — — — — — Loans with a specific valuation allowance 1-4 Family $ 178 $ 178 $ — $ 180 $ 8 Home Equity — — — — — Commercial Real Estate 2,927 2,927 200 3,000 200 Multifamily 1,345 1,345 100 1,355 83 Land 2,700 4,060 850 3,044 1 Construction — — — 2,674 107 Commercial Non-Mortgage 332 332 — 343 18 Consumer — — — — — Totals 1-4 Family $ 1,645 $ 1,821 $ — $ 1,652 $ 85 Home Equity 63 63 — 65 2 Commercial Real Estate 8,956 11,236 200 9,680 523 Multifamily 8,192 9,006 100 8,296 475 Land 3,224 4,865 850 3,548 5 Construction 5,349 4,712 — 6,338 164 Commercial Non-Mortgage 351 351 — 480 23 Consumer — — — — — Total $ 27,780 $ 32,054 $ 1,150 $ 30,059 $ 1,277 The following table presents impaired loans at June 30, 2014: Recorded Unpaid Specific QTD YTD QTD YTD Loans without a specific valuation allowance 1-4 Family $ 1,269 $ 1,579 $ — $ 1,472 $ 1,780 $ 16 $ 37 Home Equity 63 63 — 64 65 1 1 Commercial Real Estate 6,741 9,180 — 7,036 7,607 110 175 Multifamily 6,971 7,786 — 7,002 7,034 123 205 Land 696 1,070 — 701 912 — 1 Construction — 1 — — — — — Commercial Non-Mortgage 251 251 — 254 244 2 5 Consumer — — — — — — — Loans with a specific valuation allowance 1-4 Family 180 180 — 180 181 3 5 Home Equity — — — — — — — Commercial Real Estate 3,038 3,054 200 3,058 3,085 38 101 Multifamily 1,345 1,345 100 1,348 1,353 20 41 Land 3,192 4,531 850 3,290 3,342 1 1 Construction 5,349 5,349 500 2,674 1,783 64 64 Commercial Non-Mortgage 344 344 — 350 358 4 9 Consumer — — — — — — — Total 1-4 Family $ 1,449 $ 1,759 $ — $ 1,652 $ 1,961 $ 19 $ 42 Home Equity 63 63 — 64 65 1 1 Commercial Real Estate 9,779 12,234 200 10,094 10,692 148 276 Multifamily 8,316 9,131 100 8,350 8,387 143 246 Land 3,888 5,601 850 3,991 4,254 1 2 Construction 5,349 5,350 500 2,674 1,783 64 64 Commercial Non-Mortgage 595 595 — 604 602 6 14 Consumer — — — — — — — Total $ 29,439 $ 34,734 $ 1,650 $ 27,429 $ 27,744 $ 382 $ 645 Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assumed, in which case interest is recognized on a cash basis and is reasonable compared to interest income noted above. Troubled Debt Restructuring (TDR) We may grant a concession or modification for economic or legal reasons related to a borrower’s financial condition that we would not otherwise consider resulting in a modified loan which is then identified as a troubled debt restructuring. We may modify loans through rate reductions, short-term extensions of maturity, interest only payments, or payment modifications to better match the timing of cash flows due under the modified terms with the cash flows from the borrowers’ operations. Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. We identify loans for potential restructure primarily through direct communication with the borrower and evaluation of the borrower’s financial statements, revenue projections, tax returns, and credit reports. Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions, and negative trends may result in a payment default in the near future. For one-to-four family residential and home equity lines of credit, a restructure often occurs with past due loans and may be offered as an alternative to foreclosure. There are other situations where borrowers, who are not past due, experience a sudden job loss, become over-extended with credit obligations, or other problems, have indicated that they will be unable to make the required monthly payment and request payment relief. When considering a loan restructure, management will determine if: (i) the financial distress is short or long term; (ii) loan concessions are necessary; and (iii) the restructure is a viable solution. When a loan is restructured, the new terms often require a reduced monthly debt service payment. No TDRs that were on non-accrual status at the time the concessions were granted have been returned to accrual status. For commercial loans, management completes an analysis of the operating entity’s ability to repay the debt. If the operating entity is capable of servicing the new debt service requirements and the underlying collateral value is believed to be sufficient to repay the debt in the event of a future default, the new loan can be placed on accrual status after six months of performance with the new loan terms. To date, there have been no commercial loans restructured and immediately placed on accrual status after the execution of the TDR. For retail loans, an analysis of the individual’s ability to service the new required payments is performed. If the borrower is capable of servicing the newly restructured debt and the underlying collateral value is believed to be sufficient to repay the debt in the event of a future default, the new loan can be placed on accrual status after six months of performance to the new loan terms. The reason for the TDR is also considered, such as paying past due real estate taxes or payments caused by a temporary job loss, when determining whether a retail TDR loan could be returned to accrual status. Retail TDRs remain on nonaccrual status until sufficient payments have been made to bring the past due principal and interest current and/or after six months of performance to the new loan terms at which point the loan could be transferred to accrual status. The following table summarizes the loans that were restructured as TDRs during the three and six months ended June 30, 2015: Three Months Ended Six months ended June 30, 2015 Count Balance Balance Count Balance Balance (Dollars in thousands) Commercial real estate 2 745 745 2 745 745 Total loans 2 $ 745 $ 745 2 $ 745 $ 745 Both of the commercial real estate TDRs in 2015 were modified with rate reductions and term extensions. We had no TDRs that had payment defaults during the six months ended June 2015. Default occurs when a TDR is 90 days or more past due, transferred to nonaccrual status, or transferred to other real estate owned within twelve months of restructuring. Management monitors the TDRs based on the type of modification or concession granted to the borrower. These types of modifications may include rate reductions, payment/term extensions, forgiveness of principal, forbearance, and other applicable actions. Management predominantly utilizes rate reductions and lower monthly payments, either from a longer amortization period or interest only repayment schedule, because these concessions provide needed payment relief without risking the loss of principal. Management will also agree to a forbearance agreement when it is deemed appropriate to avoid foreclosure. The following table summarizes the loans that were restructured as TDRs during the three and six months ended June 30, 2014: Three Months Ended Six months ended June 30, 2014 June 30, 2014 Count Balance Balance Count Balance Balance (Dollars in thousands) Commercial real estate 1 900 900 1 900 900 Total loans 1 $ 900 $ 900 1 $ 900 $ 900 The commercial real estate TDR in 2014 was modified with a payment restructuring. |
Disclosures About Fair Value of
Disclosures About Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Disclosures About Fair Value of Assets and Liabilities | Note 5: Disclosures About Fair Value of Assets and Liabilities ASC Topic 820, Fair Value Measurements Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Following is a description of the valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets under the valuation hierarchy. We have no assets or liabilities measured at fair value on a recurring basis and no liabilities measured at fair value on a nonrecurring basis. Nonrecurring Measurements The following table presents the fair value measurements of assets and liabilities recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2015 and December 31, 2014. Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2015 Collateral-dependent Impaired loans $ — $ — $ — $ — December 31, 2014 Collateral-dependent Impaired loans $ 3,822 $ — $ — $ 3,822 Collateral-dependent Impaired Loans The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. The Company considers the appraisal or an evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent or subsequently as deemed necessary and approved by management. Appraisals are reviewed for accuracy and consistency by the Credit Analysis department. Typically, appraisers are selected from the list of approved appraisers maintained by the Underwriting department. The appraised values may be reduced by discounts to consider a lack of marketability or estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the Credit Analysis department and approved by management. Unobservable (Level 3) inputs The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than good will at June 30, 2015 and December 31, 2014. Collateral-dependent Impaired Loans Fair Value Valuation Unobservable Range (Weighted As of June 30, 2015 Collateral-dependent impaired loans $ — Market Marketability — % As of December 31, 2014 Collateral-dependent impaired loans $ 3,822 Market Marketability 6%-38% (7%) Fair Value of Financial Instruments The following table presents estimated fair values of our financial instruments recognized in the accompanying consolidated balance sheets at amounts other than fair value at the individual dates. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, we do not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate. Fair Value Measurements Using Carrying Quoted Significant Significant (Level 3) As of June 30, 2015 Financial Assets Cash and cash equivalents $ 40,472 $ 40,472 $ — $ — Interest-earning time deposits 5,655 5,655 — — Held to maturity securities 500 — 500 — Loans held for sale 2,004 — 2,009 — Loans, net of allowance for loan losses 299,297 — — 303,364 Federal Home Loan Bank stock 2,700 — 2,700 — Interest receivable 870 — 870 — Financial liabilities Deposits $ 235,537 $ 124,584 $ — $ 113,425 Federal Home Loan Bank advances 57,000 — 57,627 — Interest payable 186 — 186 — Fair Value Measurements Using Carrying Quoted in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) As of December 31, 2014 Financial assets Cash and cash equivalents $ 29,686 $ 29,686 $ — $ — Interest-earning time deposits — — — — Loans held for sale 570 — 570 — Loans, net of allowance for loan losses 296,477 — — 299,514 Federal Home Loan Bank stock 2,500 — 2,500 — Interest receivable 777 — 777 — Financial liabilities Deposits $ 223,529 $ 114,418 $ — $ 110,560 Federal Home Loan Bank advances 50,000 — 50,567 — Interest payable 157 — 157 — The following methods and assumptions were used to estimate the fair value of all other financial instruments recognized in the accompanying consolidated balance sheets at amounts other than fair value. Cash and Cash Equivalents, Interest-Earning Time Deposits, Federal Home Loan Bank Stock, Interest Receivable, and Interest Payable The carrying amount approximates fair value. Held to Maturity Securities Fair values equal quoted market prices, if available. If quoted market prices are not available, fair value is estimated based on quoted market prices of similar securities. Loans Held for Sale Fair value of loans held for sale is estimated by discounting the future cash flows using the market rates at which similar loans would be made to borrowers with similar remaining maturities. Loans The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans with similar characteristics were aggregated for purposes of the calculations. Deposits Deposits include demand deposits, savings accounts, checking accounts and certain money market deposits. The carrying amount approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. Federal Home Loan Bank Advances Rates currently available to us for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt. Commitments to Originate Loans, Letters of Credit and Lines of Credit Loan commitments and letters-of-credit generally have short-term, variable rate features and contain clauses which limit our exposure to changes in customer credit quality. Accordingly, their carrying values, which are immaterial at the respective balance sheet dates, are reasonable estimates of fair value. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share | Note 6: Earnings Per Share (In thousands except per share amounts) Basic earnings per common share (“EPS”) excludes dilution and is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding for the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock (such as stock options) were exercised or converted into additional common shares that would then share in the earnings of the entity. Diluted EPS is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding for the year, plus an incremental number of common-equivalent shares computed using the treasury stock method. Unvested share-based payment awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered to participate with common stock in undistributed earnings for purposes of computing EPS. Accordingly, the Company is required to calculate basic and diluted EPS using the two-class method. Restricted stock awards granted by the Company are considered participating securities. Calculations of EPS under the two-class method (i) exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities and (ii) exclude from the denominator the dilutive impact of the participating securities. Unearned ESOP shares, which are not vested and unvested restricted stock awards are excluded from the computation of average shares outstanding. Earnings per share analysis for three months ended June 30, 2015 and 2014 is as follows (dollars in thousands, except per share data): Three months ended Three months ended June 30, 2015 June 30, 2014 Net Income $ 731 $ 480 Income allocated to participating securities (16 ) (14 ) Income attributable to common shareholders 715 466 Weighted average shares outstanding (in thousands) 2,220 2,288 Less: average unearned ESOP and unvested restricted stock (213 ) (226 ) Average Shares 2,007 2,062 Effect of diluted based awards 21 12 Average common and common-equivalent shares for diluted EPS (in thousands) 2,028 2,074 Basic EPS $ 0.36 $ 0.23 Diluted EPS $ 0.35 $ 0.23 Six Months Ended June 30, 2015 and 2014 is as follows (dollars in thousands, except per share data): Six months ended Six months ended June 30, 2015 June 30, 2014 Net Income $ 1,470 $ 785 Income allocated to participating securities (32 ) (22 ) Income attributable to common shareholders 1,438 763 Weighted average shares outstanding (in thousands) 2,220 2,292 Less: average unearned ESOP and unvested restricted stock (214 ) (226 ) Average Shares 2,006 2,066 Effect of diluted based awards 21 12 Average common and common-equivalent shares for diluted EPS (in thousands) 2,027 2,078 Basic EPS $ 0.72 $ 0.37 Diluted EPS $ 0.71 $ 0.37 |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Share-Based Compensation | Note 7: Share-Based Compensation In May 2013, the Company’s stockholders approved the Wolverine Bancorp, Inc. 2013 Equity Incentive Plan (“Plan”) which provides for awards of stock options and restricted stock to key officers and outside directors. The cost of the Plan is based on the fair value of the awards on the grant date. The fair value of restricted stock awards is based on the closing price of the Company’s stock on the grant date. The fair value of stock options is estimated using a Black-Scholes option pricing model using assumptions for dividend yield, stock price volatility, risk-free interest rate, and option term. These assumptions are based on management’s judgments regarding future events, are subjective in nature, and contain uncertainties inherent in an estimate. The cost of the awards are being recognized on a straight-line basis over the five-year vesting period during which participants are required to provide services in exchange for the awards. Until such time as awards of stock are granted and vest or options are exercised, shares of the Company’s common stock under the Plan shall be authorized but unissued shares. The maximum number of shares authorized under the plan is 351,050. Total share-based compensation expense for the six months ended June 30, 2015 and 2014 was $157 and $160 respectively. Total shared-based compensation expense for the three months ended June 30, 2015 and 2014 was $78 and $79 respectively. Stock Options The table below presents the stock option activity for the period shown: Options Weighted Remaining Aggregate Options outstanding at January 1, 2015 121,449 $ 17.45 8 $ 789 Granted 2,000 26.65 10 — Exercised — — — — Forfeited — — — — Expired — — — — Options outstanding at June 30, 2015 123,449 $ 17.54 8 $ 992 Exercisable at June 30, 2015 48,098 $ 17.35 7 $ 395 The weighted average grant date fair value of the options award in 2015 was $8. As of June 30, 2015, the Company had $140 of unrecognized compensation expense related to stock options. Stock option expense for the three and six months ended June 30, 2015 was $15 and $31 respectively. Stock option expense for the three and six months ended June 30, 2014 was $16 and $31 respectively. The fair value of the Company’s stock options granted on May 30, 2015 was determined using the Black-Scholes option pricing formula. The following assumptions were used in the formula: Expected volatility 17.29 % Risk-free interest rate 2.00 % Expected dividend yield 3.43 % Expected life (in years) 7.50 Exercise price for the stock options $ 26.65 Expected volatility — Based on the historical volatility of share price. Risk-free interest rate — Based on the U.S. Treasury yield curve and expected life of the options at the time of grant. Expected dividend yield — The Company currently does not pay a dividend; therefore, the expected dividend yield was estimated for the portion of the life of the options that the Company expects to pay a dividend. Expected life — Based on an average of the five year vesting period and the ten year contractual term of the stock option plan. Exercise price for the stock options — Based on the closing price of the Company’s stock on the date of grant. Restricted Stock Awards Restricted stock awards are accounted for as fixed grants using the fair value of the Company’s stock at the time of grant. Unvested restricted stock awards may not be disposed of or transferred during the vesting period. Restricted stock awards carry with them the right to receive dividends. The table below presents the restricted stock award activity for the period shown: Service-Based Weighted average Non-vested at January 1, 2015 43,974 $ 17.44 Granted 2,000 26.65 Vested 402 20.68 Forfeited — — Non-vested at June 30, 2015 45,572 $ 17.83 As of June 30, 2015, the Company had $601 of unrecognized compensation expense related to restricted stock awards. The cost of the restricted stock awards will be amortized in monthly installments over the five-year vesting period. Restricted stock expense for three months and six months ended June 30, 2015 was $63 and $126 respectively. Restricted stock expense for the three and six months ended June 30, 2014 was $63 and $129. |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Summary of Amortized Cost and Approximate Fair Values of Held to Maturity Securities | The amortized cost and approximate fair values of securities are as follows: Amortized Gross Gross Approximate Held to Maturity Securities: June 30, 2015 Treasury bond $ 500 $ — $ — $ 500 |
Summary of Amortized Cost and Fair Value of Held to Maturity Securities by Contractual Maturity | The amortized cost and fair value of securities at June 30, 2015, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2015 Amortized Cost Fair Value Within one year $ 500 $ 500 One to five years — — Five to ten years — — After ten years — — Totals $ 500 $ 500 |
Loans and Allowance for Loan 16
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Summary of Loans by Categories of Loans Class | Categories of loans include: June 30, 2015 December 31, 2014 Real Estate One-to four-family $ 42,751 $ 44,316 Home Equity 6,390 6,645 Commercial mortage loans Commercial real estate 159,942 153,705 Multifamily 63,182 61,204 Land 11,931 10,060 Construction 19,427 21,673 Commercial Non-mortgage 15,053 14,717 Consumer 1,299 1,142 Total loans 319,975 313,462 Less Net deferred loan fees, premiums and discounts 559 555 Undisbursed portion of loan 10,943 8,454 Allowance for loan losses 9,176 7,976 Net Loans $ 299,297 $ 296,477 |
Financing Receivables and Allowance for Credit Losses on Financing Receivables | The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of June 30, 2015, December 31, 2014 and June 30, 2014: Loan Class 1-4 Family Home Commercial Multifamily Land Construction Commerical Non-Mortage Consumer Total Year to date analysis as of June 30, 2015 Allowance for loan losses: Balance, beginning of period $ 881 $ 100 $ 3,573 $ 1,391 $ 1,205 $ 539 $ 269 $ 18 $ 7,976 Provision charged to expense 142 12 3 131 77 83 48 4 $ 500 Losses charged off (45 ) — — — — — — (1 ) $ (46 ) Recoveries 22 — 715 — 7 — — 2 $ 746 Balance, end of period $ 1,000 $ 112 $ 4,291 $ 1,522 $ 1,289 $ 622 $ 317 $ 23 $ 9,176 Ending Balance: individually evaluated for impairment — — 200 100 850 — — — $ 1,150 Ending balance: collectively evaluated for impairment $ 1,000 $ 112 $ 4,091 $ 1,422 $ 439 $ 622 $ 317 $ 23 $ 8,026 Loans: Ending Balance 42,751 6,390 159,942 63,182 11,931 19,427 15,053 1,299 319,975 Ending Balance: individually evaluated for impairment 1,550 — 13,005 8,058 2,703 — 317 — 25,633 Ending balance: collectively evaluated for impairment 41,201 6,390 146,937 55,124 9,228 19,427 14,736 1,299 294,342 Loan Class 1-4 Family Home Commercial Multifamily Land Construction Commerical Non-Mortage Consumer Total Quarter to date analysis as of June 30, 2015 Allowance for loan losses: Balance, beginning of period $ 874 $ 91 $ 3,743 $ 1,301 $ 1,362 $ 617 $ 229 $ 19 $ 8,236 Provision charged to expense 120 21 (128 ) 221 (80 ) 5 88 3 250 Losses charged off — — — — — — — — — Recoveries 6 — 676 — 7 — — 1 690 Balance, end of period $ 1,000 $ 112 $ 4,291 $ 1,522 $ 1,289 $ 622 $ 317 $ 23 $ 9,176 Loan Class 1-4 Family Home Commercial Multifamily Land Construction Commerical Non-Mortage Consumer Total Year to date analysis as of December 31, 2014 Allowance for loan losses: Balance, beginning of period $ 1,354 $ 251 $ 2,861 $ 1,514 $ 1,145 $ 285 $ 157 $ 30 $ 7,597 Provision charged to expense (475 ) (151 ) 702 (123 ) (33 ) 1,004 112 (16 ) 1,020 Losses charged off (55 ) — — — — (750 ) — (1 ) (806 ) Recoveries 57 — 10 — 93 — — 5 165 Balance, end of period $ 881 $ 100 $ 3,573 $ 1,391 $ 1,205 $ 539 $ 269 $ 18 $ 7,976 Ending Balance: individually evaluated for impairment — — 200 100 850 — — — 1,150 Ending balance: collectively evaluated for impairment $ 881 $ 100 $ 3,373 $ 1,291 $ 355 $ 539 $ 269 $ 18 $ 6,826 Loans: Ending Balance 44,316 6,645 153,705 61,204 10,060 21,673 14,717 1,142 313,462 Ending Balance: individually evaluated for impairment 1,645 63 8,956 8,192 3,224 5,349 351 — 27,780 Ending balance: collectively evaluated for impairment $ 42,671 $ 6,582 $ 144,749 $ 53,012 $ 6,836 $ 16,324 $ 14,366 $ 1,142 $ 285,682 Loan Class 1-4 Family Home Commercial Multifamily Land Construction Commerical Non-Mortage Consumer Total Year to date analysis as of June 30, 2014 Allowance for loan losses: Balance, beginning of period $ 1,354 $ 251 $ 2,861 $ 1,514 $ 1,145 $ 285 $ 157 $ 30 $ 7,597 Provision charged to expense (363 ) (97 ) 311 (181 ) 221 523 96 (15 ) 495 Losses charged off (30 ) — — — — — — (1 ) (31 ) Recoveries 26 — 7 — 11 — — 3 47 Balance, end of period $ 987 $ 154 $ 3,179 $ 1,333 $ 1,377 $ 808 $ 253 $ 17 $ 8,108 Ending Balance: individually evaluated for impairment — — 200 100 850 500 — — 1,650 Ending balance: collectively evaluated for impairment $ 987 $ 154 $ 2,979 $ 1,233 $ 527 $ 308 $ 253 $ 17 $ 6,458 Loans: Ending Balance 50,397 7,219 147,191 60,248 9,568 23,609 12,801 1,144 312,177 Ending Balance: individually evaluated for impairment 1,449 63 9,779 8,316 3,888 5,349 595 — 29,439 Ending balance: collectively evaluated for impairment $ 48,948 $ 7,156 $ 137,412 $ 51,932 $ 5,680 $ 18,260 $ 12,206 $ 1,144 $ 282,738 Loan Class 1-4 Family Home Commercial Multifamily Land Construction Commerical Non-Mortage Consumer Total Quarter to date analysis as of June 30, 2014 Allowance for loan losses: Balance, beginning of period $ 1,006 $ 148 $ 3,475 $ 1,338 $ 1,422 $ 390 $ 126 $ 14 $ 7,919 Provision charged to expense (5 ) 6 (300 ) (5 ) (49 ) 418 127 3 195 Losses charged off (30 ) — — — — — — (1 ) (31 ) Recoveries 16 — 4 — 4 — — 1 25 Balance, end of period $ 987 $ 154 $ 3,179 $ 1,333 $ 1,377 $ 808 $ 253 $ 17 $ 8,108 |
Credit Risk Profile of our Loan Portfolio Based on Rating Category and Payment Activity | The following table presents the credit risk profile of our loan portfolio based on rating category and payment activity as of June 30, 2015 and December 31, 2014: 1-4 Family Home Equity Commercial Real Estate Multifamily 2015 2014 2015 2014 2015 2014 2015 2014 Pass $ 39,197 $ 40,253 $ 6,390 $ 6,645 $ 136,685 $ 131,833 $ 49,410 $ 47,308 Pass (Closely Monitored) 2,054 2,446 — — 9,246 10,446 9,211 9,244 Special Mention 229 413 — — 1,429 2,383 — — Substandard 1,271 1,204 — — 12,582 9,043 4,561 4,652 Doubtful — — — — — — — — Loss — — — — — — — — $ 42,751 $ 44,316 $ 6,390 $ 6,645 $ 159,942 $ 153,705 $ 63,182 $ 61,204 Land Construction Mortgage Consumer Total 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 Pass 7,794 5,160 19,427 18,213 14,404 14,023 1,299 1,142 274,606 264,577 Pass (Closely Monitored) 1,900 2,156 — — 332 343 — — 22,743 24,635 Special Mention — — — — — 19 — — 1,658 2,815 Substandard 2,237 2,744 — 3,460 317 332 — — 20,968 21,435 Doubtful — — — — — — — — — — Loss — — — — — — — — — — $ 11,931 $ 10,060 $ 19,427 $ 21,673 $ 15,053 $ 14,717 $ 1,299 $ 1,142 $ 319,975 $ 313,462 |
Summary of Our Past due and Non-Accrual Loans | The following table is a summary of our past due and non-accrual loans as of June 30, 2015 and December 31, 2014: As of June 30, 2015 30-59 Days 60-89 Days Greater Total Past Current Total Total Total 1-4 Family $ 149 $ — $ 48 $ 197 $ 42,554 $ 42,751 $ — $ 66 Home Equity — — — — 6,390 6,390 — — Commercial Real Estate 3,866 691 181 4,738 155,204 159,942 — 5,241 Multifamily — — — — 63,182 63,182 — — Land — — 2,237 2,237 9,694 11,931 — 2,408 Construction — — — — 19,427 19,427 — — Commercial Non-Mortgage — — — — 15,053 15,053 — — Consumer — — — — 1,299 1,299 — — Total $ 4,015 $ 691 $ 2,466 $ 7,172 $ 312,803 $ 319,975 $ — $ 7,715 As of December 31, 2014: 30-59 Days 60-89 Days Greater Total Past Current Total Total Total 1-4 Family $ 334 $ 152 $ 107 $ 593 $ 43,723 $ 44,316 $ — $ 107 Home Equity — — — — 6,645 6,645 — — Commercial Real Estate 818 634 649 2,101 151,604 153,705 — 1,339 Multifamily — — — — 61,204 61,204 — — Land — — 2,700 2,700 7,360 10,060 — 2,700 Construction 3,960 — — 3,960 17,713 21,673 — 3,960 Commercial Non-Mortgage — — 19 19 14,698 14,717 — 19 Consumer — — — — 1,142 1,142 — — Total $ 5,112 $ 786 $ 3,475 $ 9,373 $ 304,089 $ 313,462 $ — $ 8,125 |
Summary of Impaired Loans by Class | The following table presents impaired loans at June 30, 2015: Recorded Unpaid Specific QTD Average YTD Average QTD Interest YTD Interest Loans without a specific valuation allowance : 1-4 Family $ 1,373 $ 1,562 $ — $ 1,478 $ 1,474 $ 16 $ 34 Home Equity — — — 30 41 — — Commercial real estate 10,459 12,627 — 10,855 11,029 51 117 Multi Family 6,719 7,533 — 6,750 6,782 82 162 Land 466 740 — 488 326 7 14 Construction — 2 — — 1,783 — — Commercial Non-Mortgage — — — — 6 — — Consumer — — — — — — — Loans with a specific valuation allowance : 1-4 Family $ 177 $ 177 $ — $ 177 $ 177 $ 2 $ 6 Home Equity — — — — — — — Commercial real estate 2,546 2,546 200 2,567 2,687 43 91 Multi Family 1,339 1,339 100 1,341 1,342 20 40 Land 2,237 3,937 850 2,323 2,448 — — Construction — — — — — — — Commercial Non-Mortgage 317 317 — 321 324 6 11 Consumer — — — — — — — Totals 1-4 Family $ 1,550 $ 1,739 $ — $ 1,655 $ 1,651 $ 18 $ 40 Home Equity — — — 30 41 — — Commercial real estate 13,005 15,173 200 13,422 13,716 94 208 Multi Family 8,058 8,872 100 8,091 8,124 102 202 Land 2,703 4,677 850 2,811 2,774 7 14 Construction — 2 — — 1,783 — — Commercial Non-Mortgage 317 317 — 321 330 6 11 Consumer — — — — — — — Total $ 25,633 $ 30,780 $ 1,150 $ 26,330 $ 28,419 $ 227 $ 475 The following table presents impaired loans at December 31, 2014: Recorded Unpaid Specific YTD Average YTD Loans without a specific valuation allowance 1-4 Family $ 1,467 $ 1,643 $ — $ 1,472 $ 77 Home Equity 63 63 — 65 2 Commercial Real Estate 6,029 8,309 — 6,680 323 Multifamily 6,847 7,661 — 6,941 392 Land 524 805 — 504 4 Construction 5,349 4,712 — 3,664 57 Commercial Non-Mortgage 19 19 — 137 5 Consumer — — — — — Loans with a specific valuation allowance 1-4 Family $ 178 $ 178 $ — $ 180 $ 8 Home Equity — — — — — Commercial Real Estate 2,927 2,927 200 3,000 200 Multifamily 1,345 1,345 100 1,355 83 Land 2,700 4,060 850 3,044 1 Construction — — — 2,674 107 Commercial Non-Mortgage 332 332 — 343 18 Consumer — — — — — Totals 1-4 Family $ 1,645 $ 1,821 $ — $ 1,652 $ 85 Home Equity 63 63 — 65 2 Commercial Real Estate 8,956 11,236 200 9,680 523 Multifamily 8,192 9,006 100 8,296 475 Land 3,224 4,865 850 3,548 5 Construction 5,349 4,712 — 6,338 164 Commercial Non-Mortgage 351 351 — 480 23 Consumer — — — — — Total $ 27,780 $ 32,054 $ 1,150 $ 30,059 $ 1,277 The following table presents impaired loans at June 30, 2014: Recorded Unpaid Specific QTD YTD QTD YTD Loans without a specific valuation allowance 1-4 Family $ 1,269 $ 1,579 $ — $ 1,472 $ 1,780 $ 16 $ 37 Home Equity 63 63 — 64 65 1 1 Commercial Real Estate 6,741 9,180 — 7,036 7,607 110 175 Multifamily 6,971 7,786 — 7,002 7,034 123 205 Land 696 1,070 — 701 912 — 1 Construction — 1 — — — — — Commercial Non-Mortgage 251 251 — 254 244 2 5 Consumer — — — — — — — Loans with a specific valuation allowance 1-4 Family 180 180 — 180 181 3 5 Home Equity — — — — — — — Commercial Real Estate 3,038 3,054 200 3,058 3,085 38 101 Multifamily 1,345 1,345 100 1,348 1,353 20 41 Land 3,192 4,531 850 3,290 3,342 1 1 Construction 5,349 5,349 500 2,674 1,783 64 64 Commercial Non-Mortgage 344 344 — 350 358 4 9 Consumer — — — — — — — Total 1-4 Family $ 1,449 $ 1,759 $ — $ 1,652 $ 1,961 $ 19 $ 42 Home Equity 63 63 — 64 65 1 1 Commercial Real Estate 9,779 12,234 200 10,094 10,692 148 276 Multifamily 8,316 9,131 100 8,350 8,387 143 246 Land 3,888 5,601 850 3,991 4,254 1 2 Construction 5,349 5,350 500 2,674 1,783 64 64 Commercial Non-Mortgage 595 595 — 604 602 6 14 Consumer — — — — — — — Total $ 29,439 $ 34,734 $ 1,650 $ 27,429 $ 27,744 $ 382 $ 645 |
Summary of Loans Restructured as TDRs | The following table summarizes the loans that were restructured as TDRs during the three and six months ended June 30, 2015: Three Months Ended Six months ended June 30, 2015 Count Balance Balance Count Balance Balance (Dollars in thousands) Commercial real estate 2 745 745 2 745 745 Total loans 2 $ 745 $ 745 2 $ 745 $ 745 The following table summarizes the loans that were restructured as TDRs during the three and six months ended June 30, 2014: Three Months Ended Six months ended June 30, 2014 June 30, 2014 Count Balance Balance Count Balance Balance (Dollars in thousands) Commercial real estate 1 900 900 1 900 900 Total loans 1 $ 900 $ 900 1 $ 900 $ 900 |
Disclosures About Fair Value 17
Disclosures About Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Summary of Fair Value Measurements of Assets and Liabilities Nonrecurring Basis | The following table presents the fair value measurements of assets and liabilities recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2015 and December 31, 2014. Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2015 Collateral-dependent Impaired loans $ — $ — $ — $ — December 31, 2014 Collateral-dependent Impaired loans $ 3,822 $ — $ — $ 3,822 |
Summary of quantitative Information about Unobservable Inputs used in Recurring and Nonrecurring Level Three Fair Value Measurements Other than Goodwill | The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than good will at June 30, 2015 and December 31, 2014. Collateral-dependent Impaired Loans Fair Value Valuation Unobservable Range (Weighted As of June 30, 2015 Collateral-dependent impaired loans $ — Market Marketability — % As of December 31, 2014 Collateral-dependent impaired loans $ 3,822 Market Marketability 6%-38% (7%) |
Summary of Estimated Fair Values of Company's Financial Instruments | The following table presents estimated fair values of our financial instruments recognized in the accompanying consolidated balance sheets at amounts other than fair value at the individual dates. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, we do not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate. Fair Value Measurements Using Carrying Quoted Significant Significant (Level 3) As of June 30, 2015 Financial Assets Cash and cash equivalents $ 40,472 $ 40,472 $ — $ — Interest-earning time deposits 5,655 5,655 — — Held to maturity securities 500 — 500 — Loans held for sale 2,004 — 2,009 — Loans, net of allowance for loan losses 299,297 — — 303,364 Federal Home Loan Bank stock 2,700 — 2,700 — Interest receivable 870 — 870 — Financial liabilities Deposits $ 235,537 $ 124,584 $ — $ 113,425 Federal Home Loan Bank advances 57,000 — 57,627 — Interest payable 186 — 186 — Fair Value Measurements Using Carrying Quoted in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) As of December 31, 2014 Financial assets Cash and cash equivalents $ 29,686 $ 29,686 $ — $ — Interest-earning time deposits — — — — Loans held for sale 570 — 570 — Loans, net of allowance for loan losses 296,477 — — 299,514 Federal Home Loan Bank stock 2,500 — 2,500 — Interest receivable 777 — 777 — Financial liabilities Deposits $ 223,529 $ 114,418 $ — $ 110,560 Federal Home Loan Bank advances 50,000 — 50,567 — Interest payable 157 — 157 — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share | Earnings per share analysis for three months ended June 30, 2015 and 2014 is as follows (dollars in thousands, except per share data): Three months ended Three months ended June 30, 2015 June 30, 2014 Net Income $ 731 $ 480 Income allocated to participating securities (16 ) (14 ) Income attributable to common shareholders 715 466 Weighted average shares outstanding (in thousands) 2,220 2,288 Less: average unearned ESOP and unvested restricted stock (213 ) (226 ) Average Shares 2,007 2,062 Effect of diluted based awards 21 12 Average common and common-equivalent shares for diluted EPS (in thousands) 2,028 2,074 Basic EPS $ 0.36 $ 0.23 Diluted EPS $ 0.35 $ 0.23 Six Months Ended June 30, 2015 and 2014 is as follows (dollars in thousands, except per share data): Six months ended Six months ended June 30, 2015 June 30, 2014 Net Income $ 1,470 $ 785 Income allocated to participating securities (32 ) (22 ) Income attributable to common shareholders 1,438 763 Weighted average shares outstanding (in thousands) 2,220 2,292 Less: average unearned ESOP and unvested restricted stock (214 ) (226 ) Average Shares 2,006 2,066 Effect of diluted based awards 21 12 Average common and common-equivalent shares for diluted EPS (in thousands) 2,027 2,078 Basic EPS $ 0.72 $ 0.37 Diluted EPS $ 0.71 $ 0.37 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Summary of Stock Option Activity | The table below presents the stock option activity for the period shown: Options Weighted Remaining Aggregate Options outstanding at January 1, 2015 121,449 $ 17.45 8 $ 789 Granted 2,000 26.65 10 — Exercised — — — — Forfeited — — — — Expired — — — — Options outstanding at June 30, 2015 123,449 $ 17.54 8 $ 992 Exercisable at June 30, 2015 48,098 $ 17.35 7 $ 395 |
Assumptions Used in Black-Scholes Option Pricing Formula | The following assumptions were used in the formula: Expected volatility 17.29 % Risk-free interest rate 2.00 % Expected dividend yield 3.43 % Expected life (in years) 7.50 Exercise price for the stock options $ 26.65 |
Summary of Restricted Stock Award Activity | The table below presents the restricted stock award activity for the period shown: Service-Based Weighted average Non-vested at January 1, 2015 43,974 $ 17.44 Granted 2,000 26.65 Vested 402 20.68 Forfeited — — Non-vested at June 30, 2015 45,572 $ 17.83 |
Summary of Amortized Cost and A
Summary of Amortized Cost and Approximate Fair Values of Held to Maturity Securities (Detail) $ in Thousands | Jun. 30, 2015USD ($) |
Schedule of Held-to-maturity Securities [Line Items] | |
Held to Maturity Securities, Amortized Cost | $ 500 |
Held to Maturity Securities, Fair Value | 500 |
US Treasury Bond Securities | |
Schedule of Held-to-maturity Securities [Line Items] | |
Held to Maturity Securities, Amortized Cost | 500 |
Held to Maturity Securities, Gross Unrealized Gains | 0 |
Held to Maturity Securities, Gross Unrealized Losses | 0 |
Held to Maturity Securities, Fair Value | $ 500 |
Summary of Amortization Cost an
Summary of Amortization Cost and Fair Value of Held to Maturity Securities by contractual Maturity (Detail) $ in Thousands | Jun. 30, 2015USD ($) |
Schedule of Held-to-maturity Securities [Line Items] | |
Held to Maturity Securities, Contractual Maturity, Within one year, Amortized Cost | $ 500 |
Held to Maturity Securities, Contractual Maturity, One to five years, Amortized Cost | 0 |
Held to Maturity Securities, Contractual Maturity, Five to ten years, Amortized Cost | 0 |
Held to Maturity Securities, Contractual Maturity, After ten years, Amortized Cost | 0 |
Held to Maturity Securities, Amortized Cost | 500 |
Held to Maturity Securities, Contractual Maturity, Within one year, Fair Value | 500 |
Held to Maturity Securities, Contractual Maturity, One to five years, Fair Value | 0 |
Held to Maturity Securities, Contractual Maturity, Five to ten years, Fair Value | 0 |
Held to Maturity Securities, Contractual Maturity, After ten years, Fair Value | 0 |
Held to Maturity Securities, Fair Value, Total | $ 500 |
Securities - Additional Informa
Securities - Additional Information (Detail) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Sale of securities | $ 0 | $ 0 |
Summary of Loans by Categories
Summary of Loans by Categories of Loans Class (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 319,975 | $ 313,462 | $ 312,177 |
Less net deferred loan fees, premiums and discounts | 559 | 555 | |
Less undisbursed portion of loans | 10,943 | 8,454 | |
Less allowance for loan losses | 9,176 | 7,976 | |
Net loans | 299,297 | 296,477 | |
Real Estate, One-to four-family | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 42,751 | 44,316 | 50,397 |
Real Estate, Home equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 6,390 | 6,645 | 7,219 |
Commercial mortgage loans, Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 159,942 | 153,705 | 147,191 |
Commercial mortgage loans, Multifamily | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 63,182 | 61,204 | 60,248 |
Commercial mortgage loans, Land | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 11,931 | 10,060 | 9,568 |
Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 19,427 | 21,673 | 23,609 |
Commercial Non-mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 15,053 | 14,717 | 12,801 |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 1,299 | $ 1,142 | $ 1,144 |
Loans and Allowance for Loan 24
Loans and Allowance for Loan Losses - Additional Information (Detail) - 6 months ended Jun. 30, 2015 - USD ($) | Total |
Loans [Line Items] | |
Percentage of construction loans for commercial real estate of loan-to-completed appraised value ratio | 75.00% |
Maximum period for construction loans | 9 months |
Charge down to the net realizable value | Other secured loans are 120 days past due |
Minimum period for realizable of Troubled Debt Restructuring loans into nonaccrual status or default loans | 90 days |
Default Balance | $ 0 |
Troubled Debt Restructuring | |
Loans [Line Items] | |
Minimum realizable period for new loan into accrual status under performance with new loan terms | 6 months |
Minimum | |
Loans [Line Items] | |
Period for discontinuation of accrual of interest on all loan classes | 6 months |
Financing Receivables and Allow
Financing Receivables and Allowance for Credit Losses on Financing Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Balance, beginning of period | $ 8,236 | $ 7,919 | $ 7,976 | $ 7,597 | $ 7,597 |
Provision charged to expense | 250 | 195 | 500 | 495 | 1,020 |
Losses charged off | (31) | (46) | (31) | (806) | |
Recoveries | 690 | 25 | 746 | 47 | 165 |
Balance, end of period | 9,176 | 8,108 | 9,176 | 8,108 | 7,976 |
Ending Balance: individually evaluated for impairment | 1,150 | 1,650 | 1,150 | 1,650 | 1,150 |
Ending balance: collectively evaluated for impairment | 8,026 | 6,458 | 8,026 | 6,458 | 6,826 |
Loans: | |||||
Ending Balance | 319,975 | 312,177 | 319,975 | 312,177 | 313,462 |
Ending Balance: individually evaluated for impairment | 25,633 | 29,439 | 25,633 | 29,439 | 27,780 |
Ending Balance: collectively evaluated for impairment | 294,342 | 282,738 | 294,342 | 282,738 | 285,682 |
Real Estate, One-to four-family | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Balance, beginning of period | 874 | 1,006 | 881 | 1,354 | 1,354 |
Provision charged to expense | 120 | (5) | 142 | (363) | (475) |
Losses charged off | (30) | (45) | (30) | (55) | |
Recoveries | 6 | 16 | 22 | 26 | 57 |
Balance, end of period | 1,000 | 987 | 1,000 | 987 | 881 |
Ending balance: collectively evaluated for impairment | 1,000 | 987 | 1,000 | 987 | 881 |
Loans: | |||||
Ending Balance | 42,751 | 50,397 | 42,751 | 50,397 | 44,316 |
Ending Balance: individually evaluated for impairment | 1,550 | 1,449 | 1,550 | 1,449 | 1,645 |
Ending Balance: collectively evaluated for impairment | 41,201 | 48,948 | 41,201 | 48,948 | 42,671 |
Real Estate, Home equity | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Balance, beginning of period | 91 | 148 | 100 | 251 | 251 |
Provision charged to expense | 21 | 6 | 12 | (97) | (151) |
Balance, end of period | 112 | 154 | 112 | 154 | 100 |
Ending balance: collectively evaluated for impairment | 112 | 154 | 112 | 154 | 100 |
Loans: | |||||
Ending Balance | 6,390 | 7,219 | 6,390 | 7,219 | 6,645 |
Ending Balance: individually evaluated for impairment | 63 | 63 | 63 | ||
Ending Balance: collectively evaluated for impairment | 6,390 | 7,156 | 6,390 | 7,156 | 6,582 |
Commercial mortgage loans, Commercial real estate | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Balance, beginning of period | 3,743 | 3,475 | 3,573 | 2,861 | 2,861 |
Provision charged to expense | (128) | (300) | 3 | 311 | 702 |
Recoveries | 676 | 4 | 715 | 7 | 10 |
Balance, end of period | 4,291 | 3,179 | 4,291 | 3,179 | 3,573 |
Ending Balance: individually evaluated for impairment | 200 | 200 | 200 | 200 | 200 |
Ending balance: collectively evaluated for impairment | 4,091 | 2,979 | 4,091 | 2,979 | 3,373 |
Loans: | |||||
Ending Balance | 159,942 | 147,191 | 159,942 | 147,191 | 153,705 |
Ending Balance: individually evaluated for impairment | 13,005 | 9,779 | 13,005 | 9,779 | 8,956 |
Ending Balance: collectively evaluated for impairment | 146,937 | 137,412 | 146,937 | 137,412 | 144,749 |
Commercial mortgage loans, Multifamily | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Balance, beginning of period | 1,301 | 1,338 | 1,391 | 1,514 | 1,514 |
Provision charged to expense | 221 | (5) | 131 | (181) | (123) |
Balance, end of period | 1,522 | 1,333 | 1,522 | 1,333 | 1,391 |
Ending Balance: individually evaluated for impairment | 100 | 100 | 100 | 100 | 100 |
Ending balance: collectively evaluated for impairment | 1,422 | 1,233 | 1,422 | 1,233 | 1,291 |
Loans: | |||||
Ending Balance | 63,182 | 60,248 | 63,182 | 60,248 | 61,204 |
Ending Balance: individually evaluated for impairment | 8,058 | 8,316 | 8,058 | 8,316 | 8,192 |
Ending Balance: collectively evaluated for impairment | 55,124 | 51,932 | 55,124 | 51,932 | 53,012 |
Commercial mortgage loans, Land | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Balance, beginning of period | 1,362 | 1,422 | 1,205 | 1,145 | 1,145 |
Provision charged to expense | (80) | (49) | 77 | 221 | (33) |
Recoveries | 7 | 4 | 7 | 11 | 93 |
Balance, end of period | 1,289 | 1,377 | 1,289 | 1,377 | 1,205 |
Ending Balance: individually evaluated for impairment | 850 | 850 | 850 | 850 | 850 |
Ending balance: collectively evaluated for impairment | 439 | 527 | 439 | 527 | 355 |
Loans: | |||||
Ending Balance | 11,931 | 9,568 | 11,931 | 9,568 | 10,060 |
Ending Balance: individually evaluated for impairment | 2,703 | 3,888 | 2,703 | 3,888 | 3,224 |
Ending Balance: collectively evaluated for impairment | 9,228 | 5,680 | 9,228 | 5,680 | 6,836 |
Construction | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Balance, beginning of period | 617 | 390 | 539 | 285 | 285 |
Provision charged to expense | 5 | 418 | 83 | 523 | 1,004 |
Losses charged off | (750) | ||||
Balance, end of period | 622 | 808 | 622 | 808 | 539 |
Ending Balance: individually evaluated for impairment | 500 | 500 | |||
Ending balance: collectively evaluated for impairment | 622 | 308 | 622 | 308 | 539 |
Loans: | |||||
Ending Balance | 19,427 | 23,609 | 19,427 | 23,609 | 21,673 |
Ending Balance: individually evaluated for impairment | 5,349 | 5,349 | 5,349 | ||
Ending Balance: collectively evaluated for impairment | 19,427 | 18,260 | 19,427 | 18,260 | 16,324 |
Commercial Non-mortgage | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Balance, beginning of period | 229 | 126 | 269 | 157 | 157 |
Provision charged to expense | 88 | 127 | 48 | 96 | 112 |
Balance, end of period | 317 | 253 | 317 | 253 | 269 |
Ending balance: collectively evaluated for impairment | 317 | 253 | 317 | 253 | 269 |
Loans: | |||||
Ending Balance | 15,053 | 12,801 | 15,053 | 12,801 | 14,717 |
Ending Balance: individually evaluated for impairment | 317 | 595 | 317 | 595 | 351 |
Ending Balance: collectively evaluated for impairment | 14,736 | 12,206 | 14,736 | 12,206 | 14,366 |
Consumer | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Balance, beginning of period | 19 | 14 | 18 | 30 | 30 |
Provision charged to expense | 3 | 3 | 4 | (15) | (16) |
Losses charged off | (1) | (1) | (1) | (1) | |
Recoveries | 1 | 1 | 2 | 3 | 5 |
Balance, end of period | 23 | 17 | 23 | 17 | 18 |
Ending balance: collectively evaluated for impairment | 23 | 17 | 23 | 17 | 18 |
Loans: | |||||
Ending Balance | 1,299 | 1,144 | 1,299 | 1,144 | 1,142 |
Ending Balance: collectively evaluated for impairment | $ 1,299 | $ 1,144 | $ 1,299 | $ 1,144 | $ 1,142 |
Credit Risk Profile of Loan Por
Credit Risk Profile of Loan Portfolio Based on Rating Category and Payment Activity (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | $ 319,975 | $ 313,462 | $ 312,177 |
Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 274,606 | 264,577 | |
Pass (Closely Monitored) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 22,743 | 24,635 | |
Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 1,658 | 2,815 | |
Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 20,968 | 21,435 | |
Commercial mortgage loans, Land | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 11,931 | 10,060 | 9,568 |
Commercial mortgage loans, Land | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 7,794 | 5,160 | |
Commercial mortgage loans, Land | Pass (Closely Monitored) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 1,900 | 2,156 | |
Commercial mortgage loans, Land | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 2,237 | 2,744 | |
Construction | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 19,427 | 21,673 | 23,609 |
Construction | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 19,427 | 18,213 | |
Construction | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 3,460 | ||
Commercial Non-mortgage | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 15,053 | 14,717 | 12,801 |
Commercial Non-mortgage | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 14,404 | 14,023 | |
Commercial Non-mortgage | Pass (Closely Monitored) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 332 | 343 | |
Commercial Non-mortgage | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 19 | ||
Commercial Non-mortgage | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 317 | 332 | |
Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 1,299 | 1,142 | 1,144 |
Consumer | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 1,299 | 1,142 | |
Real Estate, One-to four-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 42,751 | 44,316 | 50,397 |
Real Estate, One-to four-family | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 39,197 | 40,253 | |
Real Estate, One-to four-family | Pass (Closely Monitored) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 2,054 | 2,446 | |
Real Estate, One-to four-family | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 229 | 413 | |
Real Estate, One-to four-family | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 1,271 | 1,204 | |
Real Estate, Home equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 6,390 | 6,645 | 7,219 |
Real Estate, Home equity | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 6,390 | 6,645 | |
Commercial mortgage loans, Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 159,942 | 153,705 | 147,191 |
Commercial mortgage loans, Commercial real estate | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 136,685 | 131,833 | |
Commercial mortgage loans, Commercial real estate | Pass (Closely Monitored) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 9,246 | 10,446 | |
Commercial mortgage loans, Commercial real estate | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 1,429 | 2,383 | |
Commercial mortgage loans, Commercial real estate | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 12,582 | 9,043 | |
Commercial mortgage loans, Multifamily | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 63,182 | 61,204 | $ 60,248 |
Commercial mortgage loans, Multifamily | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 49,410 | 47,308 | |
Commercial mortgage loans, Multifamily | Pass (Closely Monitored) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 9,211 | 9,244 | |
Commercial mortgage loans, Multifamily | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | $ 4,561 | $ 4,652 |
Summary Past Due and Non-Accrua
Summary Past Due and Non-Accrual Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | $ 4,015 | $ 5,112 | |
60-89 Days Past Due | 691 | 786 | |
Greater than 90 Days | 2,466 | 3,475 | |
Total Past Due | 7,172 | 9,373 | |
Current | 312,803 | 304,089 | |
Total Loans Receivable | 319,975 | 313,462 | $ 312,177 |
Total Loans >90 Days & Accruing | 0 | 0 | |
Total Nonaccrual | 7,715 | 8,125 | |
Real Estate, One-to four-family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 149 | 334 | |
60-89 Days Past Due | 152 | ||
Greater than 90 Days | 48 | 107 | |
Total Past Due | 197 | 593 | |
Current | 42,554 | 43,723 | |
Total Loans Receivable | 42,751 | 44,316 | 50,397 |
Total Loans >90 Days & Accruing | 0 | 0 | |
Total Nonaccrual | 66 | 107 | |
Real Estate, Home equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 6,390 | 6,645 | |
Total Loans Receivable | 6,390 | 6,645 | 7,219 |
Total Loans >90 Days & Accruing | 0 | 0 | |
Commercial mortgage loans, Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 3,866 | 818 | |
60-89 Days Past Due | 691 | 634 | |
Greater than 90 Days | 181 | 649 | |
Total Past Due | 4,738 | 2,101 | |
Current | 155,204 | 151,604 | |
Total Loans Receivable | 159,942 | 153,705 | 147,191 |
Total Loans >90 Days & Accruing | 0 | 0 | |
Total Nonaccrual | 5,241 | 1,339 | |
Commercial mortgage loans, Multifamily | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 63,182 | 61,204 | |
Total Loans Receivable | 63,182 | 61,204 | 60,248 |
Total Loans >90 Days & Accruing | 0 | 0 | |
Commercial mortgage loans, Land | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater than 90 Days | 2,237 | 2,700 | |
Total Past Due | 2,237 | 2,700 | |
Current | 9,694 | 7,360 | |
Total Loans Receivable | 11,931 | 10,060 | 9,568 |
Total Loans >90 Days & Accruing | 0 | 0 | |
Total Nonaccrual | 2,408 | 2,700 | |
Construction | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 3,960 | ||
Total Past Due | 3,960 | ||
Current | 19,427 | 17,713 | |
Total Loans Receivable | 19,427 | 21,673 | 23,609 |
Total Loans >90 Days & Accruing | 0 | 0 | |
Total Nonaccrual | 3,960 | ||
Commercial Non-mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater than 90 Days | 19 | ||
Total Past Due | 19 | ||
Current | 15,053 | 14,698 | |
Total Loans Receivable | 15,053 | 14,717 | 12,801 |
Total Loans >90 Days & Accruing | 0 | 0 | |
Total Nonaccrual | 19 | ||
Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 1,299 | 1,142 | |
Total Loans Receivable | 1,299 | 1,142 | $ 1,144 |
Total Loans >90 Days & Accruing | $ 0 | $ 0 |
Summary of Impaired Loans by Cl
Summary of Impaired Loans by Class (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Recorded Balance | $ 25,633 | $ 29,439 | $ 25,633 | $ 29,439 | $ 27,780 |
Unpaid Principal Balance | 30,780 | 34,734 | 30,780 | 34,734 | 32,054 |
Specific Allowance | 1,150 | 1,650 | 1,150 | 1,650 | 1,150 |
Average Balance | 26,330 | 27,429 | 28,419 | 27,744 | 30,059 |
Interest Income | 227 | 382 | 475 | 645 | 1,277 |
Real Estate, One-to four-family | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans without a specific valuation allowance, Recorded Balance | 1,373 | 1,269 | 1,373 | 1,269 | 1,467 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 1,562 | 1,579 | 1,562 | 1,579 | 1,643 |
Loans without a specific valuation allowance, Average Balance | 1,478 | 1,472 | 1,474 | 1,780 | 1,472 |
Loans without a specific valuation allowance, Interest Income | 16 | 16 | 34 | 37 | 77 |
Loans with a specific valuation allowance, Recorded Balance | 177 | 180 | 177 | 180 | 178 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 177 | 180 | 177 | 180 | 178 |
Loans with a specific valuation allowance, Average Balance | 177 | 180 | 177 | 181 | 180 |
Loans with a specific valuation allowance, Interest Income | 2 | 3 | 6 | 5 | 8 |
Recorded Balance | 1,550 | 1,449 | 1,550 | 1,449 | 1,645 |
Unpaid Principal Balance | 1,739 | 1,759 | 1,739 | 1,759 | 1,821 |
Average Balance | 1,655 | 1,652 | 1,651 | 1,961 | 1,652 |
Interest Income | 18 | 19 | 40 | 42 | 85 |
Real Estate, Home equity | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans without a specific valuation allowance, Recorded Balance | 63 | 63 | 63 | ||
Loans without a specific valuation allowance, Unpaid Principal Balance | 63 | 63 | 63 | ||
Loans without a specific valuation allowance, Average Balance | 30 | 64 | 41 | 65 | 65 |
Loans without a specific valuation allowance, Interest Income | 1 | 1 | 2 | ||
Recorded Balance | 63 | 63 | 63 | ||
Unpaid Principal Balance | 63 | 63 | 63 | ||
Average Balance | 30 | 64 | 41 | 65 | 65 |
Interest Income | 1 | 1 | 2 | ||
Commercial mortgage loans, Commercial real estate | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans without a specific valuation allowance, Recorded Balance | 10,459 | 6,741 | 10,459 | 6,741 | 6,029 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 12,627 | 9,180 | 12,627 | 9,180 | 8,309 |
Loans without a specific valuation allowance, Average Balance | 10,855 | 7,036 | 11,029 | 7,607 | 6,680 |
Loans without a specific valuation allowance, Interest Income | 51 | 110 | 117 | 175 | 323 |
Loans with a specific valuation allowance, Recorded Balance | 2,546 | 3,038 | 2,546 | 3,038 | 2,927 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 2,546 | 3,054 | 2,546 | 3,054 | 2,927 |
Loans with a specific valuation allowance, Average Balance | 2,567 | 3,058 | 2,687 | 3,085 | 3,000 |
Loans with a specific valuation allowance, Interest Income | 43 | 38 | 91 | 101 | 200 |
Recorded Balance | 13,005 | 9,779 | 13,005 | 9,779 | 8,956 |
Unpaid Principal Balance | 15,173 | 12,234 | 15,173 | 12,234 | 11,236 |
Specific Allowance | 200 | 200 | 200 | 200 | 200 |
Average Balance | 13,422 | 10,094 | 13,716 | 10,692 | 9,680 |
Interest Income | 94 | 148 | 208 | 276 | 523 |
Commercial mortgage loans, Multifamily | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans without a specific valuation allowance, Recorded Balance | 6,719 | 6,971 | 6,719 | 6,971 | 6,847 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 7,533 | 7,786 | 7,533 | 7,786 | 7,661 |
Loans without a specific valuation allowance, Average Balance | 6,750 | 7,002 | 6,782 | 7,034 | 6,941 |
Loans without a specific valuation allowance, Interest Income | 82 | 123 | 162 | 205 | 392 |
Loans with a specific valuation allowance, Recorded Balance | 1,339 | 1,345 | 1,339 | 1,345 | 1,345 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 1,339 | 1,345 | 1,339 | 1,345 | 1,345 |
Loans with a specific valuation allowance, Average Balance | 1,341 | 1,348 | 1,342 | 1,353 | 1,355 |
Loans with a specific valuation allowance, Interest Income | 20 | 20 | 40 | 41 | 83 |
Recorded Balance | 8,058 | 8,316 | 8,058 | 8,316 | 8,192 |
Unpaid Principal Balance | 8,872 | 9,131 | 8,872 | 9,131 | 9,006 |
Specific Allowance | 100 | 100 | 100 | 100 | 100 |
Average Balance | 8,091 | 8,350 | 8,124 | 8,387 | 8,296 |
Interest Income | 102 | 143 | 202 | 246 | 475 |
Commercial mortgage loans, Land | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans without a specific valuation allowance, Recorded Balance | 466 | 696 | 466 | 696 | 524 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 740 | 1,070 | 740 | 1,070 | 805 |
Loans without a specific valuation allowance, Average Balance | 488 | 701 | 326 | 912 | 504 |
Loans without a specific valuation allowance, Interest Income | 7 | 14 | 1 | 4 | |
Loans with a specific valuation allowance, Recorded Balance | 2,237 | 3,192 | 2,237 | 3,192 | 2,700 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 3,937 | 4,531 | 3,937 | 4,531 | 4,060 |
Loans with a specific valuation allowance, Average Balance | 2,323 | 3,290 | 2,448 | 3,342 | 3,044 |
Loans with a specific valuation allowance, Interest Income | 1 | 1 | 1 | ||
Recorded Balance | 2,703 | 3,888 | 2,703 | 3,888 | 3,224 |
Unpaid Principal Balance | 4,677 | 5,601 | 4,677 | 5,601 | 4,865 |
Specific Allowance | 850 | 850 | 850 | 850 | 850 |
Average Balance | 2,811 | 3,991 | 2,774 | 4,254 | 3,548 |
Interest Income | 7 | 1 | 14 | 2 | 5 |
Construction | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans without a specific valuation allowance, Recorded Balance | 5,349 | ||||
Loans without a specific valuation allowance, Unpaid Principal Balance | 2 | 1 | 2 | 1 | 4,712 |
Loans without a specific valuation allowance, Average Balance | 1,783 | 3,664 | |||
Loans without a specific valuation allowance, Interest Income | 57 | ||||
Loans with a specific valuation allowance, Recorded Balance | 5,349 | 5,349 | |||
Loans with a specific valuation allowance, Unpaid Principal Balance | 5,349 | 5,349 | |||
Loans with a specific valuation allowance, Average Balance | 2,674 | 1,783 | 2,674 | ||
Loans with a specific valuation allowance, Interest Income | 64 | 64 | 107 | ||
Recorded Balance | 5,349 | 5,349 | 5,349 | ||
Unpaid Principal Balance | 2 | 5,350 | 2 | 5,350 | 4,712 |
Specific Allowance | 500 | 500 | |||
Average Balance | 2,674 | 1,783 | 1,783 | 6,338 | |
Interest Income | 64 | 64 | 164 | ||
Commercial Non-mortgage | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans without a specific valuation allowance, Recorded Balance | 251 | 251 | 19 | ||
Loans without a specific valuation allowance, Unpaid Principal Balance | 251 | 251 | 19 | ||
Loans without a specific valuation allowance, Average Balance | 254 | 6 | 244 | 137 | |
Loans without a specific valuation allowance, Interest Income | 2 | 5 | 5 | ||
Loans with a specific valuation allowance, Recorded Balance | 317 | 344 | 317 | 344 | 332 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 317 | 344 | 317 | 344 | 332 |
Loans with a specific valuation allowance, Average Balance | 321 | 350 | 324 | 358 | 343 |
Loans with a specific valuation allowance, Interest Income | 6 | 4 | 11 | 9 | 18 |
Recorded Balance | 317 | 595 | 317 | 595 | 351 |
Unpaid Principal Balance | 317 | 595 | 317 | 595 | 351 |
Average Balance | 321 | 604 | 330 | 602 | 480 |
Interest Income | $ 6 | $ 6 | $ 11 | $ 14 | $ 23 |
Summary of Loans Restructured a
Summary of Loans Restructured as TDRs (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($)Contract | Jun. 30, 2014USD ($)Contract | Jun. 30, 2015USD ($)Contract | Jun. 30, 2014USD ($)Contract | |
Financing Receivable, Modifications [Line Items] | ||||
Count | Contract | 2 | 1 | 2 | 1 |
Balance prior to TDR | $ 745 | $ 900 | $ 745 | $ 900 |
Balance after TDR | $ 745 | $ 900 | $ 745 | $ 900 |
Commercial Real Estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Count | Contract | 2 | 1 | 2 | 1 |
Balance prior to TDR | $ 745 | $ 900 | $ 745 | $ 900 |
Balance after TDR | $ 745 | $ 900 | $ 745 | $ 900 |
Summary of Fair Value Measureme
Summary of Fair Value Measurements of Assets and Liabilities Nonrecurring Basis (Detail) $ in Thousands | Dec. 31, 2014USD ($) |
Significant Unobservable Inputs (Level 3) | |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |
Collateral-dependent Impaired loans, fair value | $ 3,822 |
Fair Value, Measurements, Nonrecurring | |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |
Collateral-dependent Impaired loans, fair value | 3,822 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |
Collateral-dependent Impaired loans, fair value | $ 3,822 |
Summary of Quantitative Informa
Summary of Quantitative Information about Unobservable Inputs used in Recurring and Nonrecurring Level Three Fair Value Measurements Other Than Goodwill (Detail) - USD ($) $ in Thousands | May. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Quantitative Information About Significant Unobservable Inputs [Line Items] | |||
Range | 17.29% | ||
Significant Unobservable Inputs (Level 3) | |||
Quantitative Information About Significant Unobservable Inputs [Line Items] | |||
Collateral-dependent impaired loans | $ 3,822 | ||
Valuation Technique | Market comparable properties | Market comparable properties | |
Unobservable Inputs | Marketability discount | Marketability discount | |
Significant Unobservable Inputs (Level 3) | Minimum | |||
Quantitative Information About Significant Unobservable Inputs [Line Items] | |||
Range | 6.00% | ||
Significant Unobservable Inputs (Level 3) | Maximum | |||
Quantitative Information About Significant Unobservable Inputs [Line Items] | |||
Range | 38.00% | ||
Significant Unobservable Inputs (Level 3) | Weighted Average | |||
Quantitative Information About Significant Unobservable Inputs [Line Items] | |||
Range | 7.00% |
Summary of Estimated Fair Value
Summary of Estimated Fair Values of Company's Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financial Assets | ||
Interest-earning time deposits | $ 5,655 | |
Held to maturity securities | 500 | |
Interest receivable | 870 | $ 777 |
Carrying Amount | ||
Financial Assets | ||
Cash and cash equivalents | 40,472 | 29,686 |
Interest-earning time deposits | 5,655 | |
Held to maturity securities | 500 | |
Loans held for sale | 2,004 | 570 |
Loans, net of allowance for loan losses | 299,297 | 296,477 |
Federal Home Loan Bank stock | 2,700 | 2,500 |
Interest receivable | 870 | 777 |
Financial liabilities | ||
Deposits | 235,537 | 223,529 |
Federal Home Loan Bank advances | 57,000 | 50,000 |
Interest payable | 186 | 157 |
Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial Assets | ||
Cash and cash equivalents | 40,472 | 29,686 |
Interest-earning time deposits | 5,655 | |
Financial liabilities | ||
Deposits | 124,584 | 114,418 |
Fair Value Measurement | Significant Other Observable Inputs (Level 2) | ||
Financial Assets | ||
Held to maturity securities | 500 | |
Loans held for sale | 2,009 | 570 |
Federal Home Loan Bank stock | 2,700 | 2,500 |
Interest receivable | 870 | 777 |
Financial liabilities | ||
Federal Home Loan Bank advances | 57,627 | 50,567 |
Interest payable | 186 | 157 |
Fair Value Measurement | Significant Unobservable Inputs (Level 3) | ||
Financial Assets | ||
Loans, net of allowance for loan losses | 303,364 | 299,514 |
Financial liabilities | ||
Deposits | $ 113,425 | $ 110,560 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net Income | $ 731 | $ 480 | $ 1,470 | $ 785 |
Income allocated to participating securities | (16) | (14) | (32) | (22) |
Income attributable to common shareholders | $ 715 | $ 466 | $ 1,438 | $ 763 |
Weighted average shares outstanding (in thousands) | 2,220 | 2,288 | 2,220 | 2,292 |
Less: average unearned ESOP and unvested restricted stock | (213) | (226) | (214) | (226) |
Average Shares | 2,007 | 2,062 | 2,006 | 2,066 |
Effect of diluted based awards | 21 | 12 | 21 | 12 |
Average common and common-equivalent shares for diluted EPS | 2,028 | 2,074 | 2,027 | 2,078 |
Basic EPS | $ 0.36 | $ 0.23 | $ 0.72 | $ 0.37 |
Diluted EPS | $ 0.35 | $ 0.23 | $ 0.71 | $ 0.37 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
Maximum Number of shares authorized under plan | 351,050 | 351,050 | ||
Share based compensation expense | $ 78 | $ 79 | $ 157 | $ 160 |
Weighted average grant date fair value of options award | $ 8 | |||
Unrecognized compensation expense related to stock options | 140 | $ 140 | ||
Stock option expense | 15 | 16 | $ 31 | 31 |
Contractual term of stock option plan | 10 years | |||
Unrecognized compensation expense | 601 | $ 601 | ||
Amortization period of stock options | 5 years | |||
Restricted stock expense | $ 126 | $ 63 | $ 63 | $ 129 |
Stock Option Activity (Detail)
Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Option | ||
Options outstanding at January 1, 2015 | 121,449 | |
Granted | 2,000 | |
Exercised | 0 | |
Forfeited | 0 | |
Expired | 0 | |
Options outstanding at June 30, 2015 | 123,449 | 121,449 |
Exercisable at June 30, 2015 | 48,098 | |
Weighted average exercise price | ||
Options outstanding at January 1, 2015 | $ 17.45 | |
Granted | 26.65 | |
Exercised | 0 | |
Forfeited | 0 | |
Expired | 0 | |
Options outstanding at June 30, 2015 | 17.54 | $ 17.45 |
Exercisable at June 30, 2015 | $ 17.35 | |
Remaining contractual life (year) | ||
Granted | 10 years | |
Options outstanding | 8 years | 8 years |
Exercisable at June 30, 2015 | 7 years | |
Aggregate Intrinsic Value | ||
Options outstanding | $ 992 | $ 789 |
Exercisable at June 30, 2015 | $ 395 |
Assumption Used in Black-Schole
Assumption Used in Black-Scholes Option Pricing Formula (Detail) - May. 30, 2015 - $ / shares | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 17.29% |
Risk-free interest rate | 2.00% |
Expected dividend yield | 3.43% |
Expected life (in years) | 7 years 6 months |
Exercise price for the stock options | $ 26.65 |
Summary of Restricted Stock Awa
Summary of Restricted Stock Award Activity (Detail) - 6 months ended Jun. 30, 2015 - Restricted Stock - $ / shares | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested at January 1, 2015 | 43,974 |
Granted | 2,000 |
Vested | 402 |
Forfeited | 0 |
Non-vested at June 30, 2015 | 45,572 |
Weighted average grant date fair value, Non-vested at January 1, 2015 | $ 17.44 |
Weighted average grant date fair value, Granted | 26.65 |
Weighted average grant date fair value, Vested | 20.68 |
Weighted average grant date fair value, Forfeited | 0 |
Weighted average grant date fair value, Non-vested at June 30, 2015 | $ 17.83 |