Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 27, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | BLMT | |
Entity Registrant Name | BSB BANCORP, INC. | |
Entity Central Index Key | 1,522,420 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 9,742,571 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 1,941 | $ 1,771 |
Interest-bearing deposits in other banks | 105,137 | 109,117 |
Cash and cash equivalents | 107,078 | 110,888 |
Interest-bearing time deposits with other banks | 2,460 | 2,440 |
Investments in available-for-sale securities | 12,025 | 16,921 |
Investments in held-to-maturity securities (fair value of $152,267 as of March 31, 2018 (unaudited) and $158,385 as of December 31, 2017) | 155,559 | 160,090 |
Federal Home Loan Bank stock, at cost | 31,988 | 32,382 |
Loans, net of allowance for loan losses of $16,584 as of March 31, 2018 (unaudited) and $16,312 as of December 31, 2017 | 2,379,019 | 2,296,958 |
Premises and equipment, net | 2,312 | 2,254 |
Accrued interest receivable | 6,086 | 6,344 |
Deferred tax asset, net | 5,648 | 5,794 |
Income taxes receivable | 53 | |
Bank-owned life insurance | 37,235 | 36,967 |
Other assets | 8,192 | 5,474 |
Total assets | 2,747,602 | 2,676,565 |
Deposits: | ||
Noninterest-bearing | 218,577 | 221,462 |
Interest-bearing | 1,654,442 | 1,529,789 |
Total deposits | 1,873,019 | 1,751,251 |
Federal Home Loan Bank advances | 662,250 | 723,150 |
Securities sold under agreements to repurchase | 3,738 | 3,268 |
Accrued interest payable | 1,546 | 1,594 |
Deferred compensation liability | 8,035 | 7,919 |
Income taxes payable | 980 | |
Other liabilities | 13,469 | 11,354 |
Total liabilities | 2,563,037 | 2,498,536 |
Stockholders' Equity: | ||
Common stock; $0.01 par value per share, 100,000,000 shares authorized; 9,741,471 and 9,707,665 shares issued and outstanding at March 31, 2018 (unaudited) and December 31, 2017, respectively | 97 | 97 |
Additional paid-in capital | 95,264 | 94,590 |
Retained earnings | 92,875 | 86,884 |
Accumulated other comprehensive (loss) income | (77) | 89 |
Unearned compensation - ESOP | (3,594) | (3,631) |
Total stockholders' equity | 184,565 | 178,029 |
Total liabilities and stockholders' equity | $ 2,747,602 | $ 2,676,565 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investments in held-to-maturity securities, fair value | $ 152,267 | $ 158,385 |
Loans, allowance for loan losses | $ 16,584 | $ 16,312 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 9,741,471 | 9,707,665 |
Common stock, shares outstanding | 9,741,471 | 9,707,665 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest and dividend income: | ||
Interest and fees on loans | $ 20,698 | $ 16,387 |
Interest on taxable debt securities | 948 | 775 |
Dividends | 384 | 256 |
Other interest income | 389 | 88 |
Total interest and dividend income | 22,419 | 17,506 |
Interest expense: | ||
Interest on deposits | 4,421 | 2,613 |
Interest on Federal Home Loan Bank advances | 2,859 | 1,631 |
Interest on securities sold under agreements to repurchase | 1 | 1 |
Total interest expense | 7,281 | 4,245 |
Net interest and dividend income | 15,138 | 13,261 |
Provision for loan losses | 274 | 829 |
Net interest and dividend income after provision for loan losses | 14,864 | 12,432 |
Noninterest income: | ||
Customer service fees | 201 | 182 |
Income from bank-owned life insurance | 268 | 252 |
Net gain on sales of loans | 312 | 8 |
Loan servicing fee income | 117 | 116 |
Net (loss) gain on investments held in Rabbi trust | (24) | 45 |
Other income | 21 | 27 |
Total noninterest income | 895 | 630 |
Noninterest expense: | ||
Salaries and employee benefits | 4,861 | 4,659 |
Director compensation | 195 | 303 |
Occupancy expense | 264 | 266 |
Equipment expense | 83 | 123 |
Deposit insurance | 489 | 402 |
Data processing | 735 | 694 |
Professional fees | 261 | 288 |
Marketing | 266 | 278 |
Other expense | 531 | 463 |
Total noninterest expense | 7,685 | 7,476 |
Income before income tax expense | 8,074 | 5,586 |
Income tax expense | 2,064 | 1,920 |
Net income | $ 6,010 | $ 3,666 |
Earnings per share | ||
Basic | $ 0.68 | $ 0.42 |
Diluted | $ 0.64 | $ 0.40 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net income | $ 6,010 | $ 3,666 |
Other comprehensive (loss) income, net of tax: | ||
Net change in fair value of securities available for sale | (56) | 67 |
Net change in fair value of cash flow hedge | (129) | |
Total other comprehensive (loss) income | (185) | 67 |
Total comprehensive income | $ 5,825 | $ 3,733 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Unearned Compensation - ESOP |
Balance (in shares) at Dec. 31, 2016 | 9,110,077 | |||||
Balance at Dec. 31, 2016 | $ 160,921 | $ 91 | $ 92,013 | $ 72,498 | $ 103 | $ (3,784) |
Net income | 3,666 | 3,666 | ||||
Other comprehensive income | 67 | 67 | ||||
ESOP shares committed to be released | 106 | 68 | 38 | |||
Stock based compensation-restricted stock awards | 268 | 268 | ||||
Stock based compensation-stock options | 189 | 189 | ||||
Restricted stock awards granted | $ 5 | (5) | ||||
Restricted stock awards granted (in shares) | 487,200 | |||||
Proceeds from exercises of stock options, net of cash paid for income taxes | (264) | $ 1 | (265) | |||
Proceeds from exercises of stock options, net of cash paid for income taxes (in shares) | 91,174 | |||||
Balance (in shares) at Mar. 31, 2017 | 9,688,451 | |||||
Balance at Mar. 31, 2017 | $ 164,953 | $ 97 | 92,268 | 76,164 | 170 | (3,746) |
Balance (in shares) at Dec. 31, 2017 | 9,707,665 | 9,707,665 | ||||
Balance at Dec. 31, 2017 | $ 178,029 | $ 97 | 94,590 | 86,884 | 89 | (3,631) |
Net income | 6,010 | 6,010 | ||||
Other comprehensive income | (185) | (185) | ||||
Reclassification of income tax effects related to items stranded within accumulated other comprehensive income from the Tax Cuts and Jobs Act | (19) | 19 | ||||
ESOP shares committed to be released | 114 | 77 | 37 | |||
Stock based compensation-restricted stock awards | 330 | 330 | ||||
Stock based compensation-stock options | 22 | 22 | ||||
Restricted stock awards granted | (272) | (272) | ||||
Restricted stock awards granted (in shares) | (12,869) | |||||
Proceeds from exercises of stock options, net of cash paid for income taxes | $ 517 | 517 | ||||
Proceeds from exercises of stock options, net of cash paid for income taxes (in shares) | 46,675 | |||||
Balance (in shares) at Mar. 31, 2018 | 9,741,471 | 9,741,471 | ||||
Balance at Mar. 31, 2018 | $ 184,565 | $ 97 | $ 95,264 | $ 92,875 | $ (77) | $ (3,594) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 6,010 | $ 3,666 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of securities, net | 199 | 206 |
Gain on sales of loans, net | (312) | (8) |
Loans originated for sale | (304) | (268) |
Proceeds from sales of loans | 21,101 | 276 |
Provision for loan losses | 274 | 829 |
Change in net unamortized mortgage premiums | (270) | (666) |
Change in net deferred loan costs | (18) | 128 |
ESOP expense | 114 | 106 |
Stock based compensation expense | 352 | 457 |
Depreciation and amortization expense | 141 | 153 |
Impairment of fixed assets | 2 | 18 |
Gain on the sale of fixed assets | (11) | |
Deferred income tax expense | 219 | 254 |
Increase in bank-owned life insurance | (268) | (252) |
Net change in: | ||
Accrued interest receivable | 258 | (222) |
Other assets | (1,372) | 270 |
Income taxes receivable | 53 | (648) |
Income taxes payable | 980 | |
Accrued interest payable | (48) | 90 |
Deferred compensation liability | 116 | 198 |
Other liabilities | 1,197 | 3,038 |
Net cash provided by operating activities | 28,413 | 7,625 |
Cash flows from investing activities: | ||
Maturities of interest-bearing time deposits with other banks | 380 | 134 |
Purchases of interest-bearing time deposits with other banks | (400) | (135) |
Proceeds from maturities of available-for-salesecurities | 4,800 | |
Proceeds from maturities and payments of held-to-maturity securities | 12,315 | 6,527 |
Purchases of held-to-maturity securities | (7,966) | (10,525) |
Redemption of Federal Home Loan Bank stock | 3,994 | |
Purchases of Federal Home Loan Bank stock | (3,600) | (4,534) |
Recoveries of loans previously charged off | 10 | 4 |
Loan originations and principal collections, net | (15,252) | (15,765) |
Purchases of loans | (87,290) | (102,137) |
Proceeds from the sale of fixed assets | 25 | |
Capital expenditures | (215) | (156) |
Premiums paid on bank-owned life insurance | (5) | |
Net cash used in investing activities | (93,199) | (126,592) |
Cash flows from financing activities: | ||
Net increase in demand deposits, interest-bearing checking and savings accounts | 67,300 | 66,304 |
Net increase in time deposits | 54,468 | 30,143 |
Net proceeds from long-term Federal Home Loan Bank borrowings | 35,000 | 15,000 |
Net change in short-term Federal Home Loan Bank advances | (95,900) | 8,400 |
Payment to counterparty for interest rate cap contract | (1,525) | |
Net increase in securities sold under agreement to repurchase | 470 | 240 |
Net increase in mortgagors' escrow accounts | 918 | 719 |
Net proceeds from exercise of stock options | 517 | 184 |
Payment of income taxes for shares withheld in stock based award activity | (272) | (448) |
Net cash provided by financing activities | 60,976 | 120,542 |
Net (decrease) increase in cash and cash equivalents | (3,810) | 1,575 |
Cash and cash equivalents at beginning of period | 110,888 | 58,876 |
Cash and cash equivalents at end of period | 107,078 | 60,451 |
Supplemental disclosures: | ||
Interest paid | 7,329 | 4,155 |
Income taxes paid | 812 | 2,327 |
Transfer of loans held for investment to loans held for sale | $ 20,519 | $ 25,634 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2018 | |
BASIS OF PRESENTATION | NOTE 1 – BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements of BSB Bancorp, Inc. have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q 10-01 S-X. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the Company’s financial position as of March 31, 2018 and December 31, 2017 and the results of operations and cash flows for the interim periods ended March 31, 2018 and 2017. All interim amounts have not been audited, and the results of operations for the interim periods herein are not necessarily indicative of the results of operations to be expected for the fiscal year. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto included in the Company’s Annual Report on Form 10-K Certain previously reported amounts have been reclassified to conform to the current period’s presentation. |
RECENT ACCOUNTING STANDARDS UPD
RECENT ACCOUNTING STANDARDS UPDATES | 3 Months Ended |
Mar. 31, 2018 | |
RECENT ACCOUNTING STANDARDS UPDATES | NOTE 2 – RECENT ACCOUNTING STANDARDS UPDATES In May 2014, the Financial Accounting Standards Board (“FASB”) issued amendments to Accounting Standards Codification (“ASC”) section 606 “Revenue from Contracts with Customers” through the issuance of ASU No. 2014-09, 2015-14, 2015-14 2014-09 Our revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, non-interest non-interest • Customer service fees - these represent general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer, debit card transaction or ATM withdrawal). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. In January 2016, the FASB issued ASU 2016-01, 825-10): ASU 2016-01, available-for-sale In February 2016, the FASB issued ASU 2016-02, Leases . In June 2016, the FASB issued ASU 2016-13, off-balance In August 2016, the FASB issued ASU 2016-15, Cash Payments. The update provides guidance on the classification of certain cash receipts and cash payments for presentation in the statement of cash flows. The amendments in this update were effective for the Company on January 1, 2018 and did not have a material impact on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, beginning-of-period end-of-period In February 2017, the FASB issued ASU 2017-05, 610-20): 610-20, In March 2017, the FASB issued ASU 2017-07, In March 2017, the FASB issued ASU 2017-08, 310-20): In July 2017, the FASB issued ASU 2017-11, In August 2017, the FASB issued ASU 2017-12, In February 2018, the FASB issued ASU 2018-02, |
INVESTMENTS IN SECURITIES
INVESTMENTS IN SECURITIES | 3 Months Ended |
Mar. 31, 2018 | |
INVESTMENTS IN SECURITIES | NOTE 3 - INVESTMENTS IN SECURITIES The amortized cost basis of available-for-sale held-to-maturity March 31, 2018 December 31, 2017 Amortized Gross Gross Fair Amortized Gross Gross Fair (unaudited) Available-for-sale Corporate debt securities $ 12,158 $ 4 $ (137 ) $ 12,025 $ 16,975 $ 24 $ (78 ) $ 16,921 $ 12,158 $ 4 $ (137 ) $ 12,025 $ 16,975 $ 24 $ (78 ) $ 16,921 Held-to-maturity U.S. government sponsored mortgage-backed securities $ 142,838 $ 66 $ (3,354 ) $ 139,550 $ 142,383 $ 145 $ (2,089 ) $ 140,439 Corporate debt securities 12,721 39 (43 ) 12,717 17,707 239 — 17,946 $ 155,559 $ 105 $ (3,397 ) $ 152,267 $ 160,090 $ 384 $ (2,089 ) $ 158,385 The amortized cost basis and estimated fair value of debt securities by contractual maturity at March 31, 2018 is as follows (in thousands and unaudited). Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. March 31, 2018 Available-for-Sale Held-to-Maturity Amortized Fair Amortized Fair (unaudited) (unaudited) Due within one year $ 7,951 $ 7,954 $ 2,001 $ 2,002 Due after one year through five years 4,207 4,071 12,571 12,504 Due after five years through ten years — — 33,087 32,119 Due after ten years — — 107,900 105,642 $ 12,158 $ 12,025 $ 155,559 $ 152,267 When securities are sold, the adjusted cost basis of the specific security sold is used to compute the gain or loss on the sale. During the three months ended March 31, 2018 and 2017 (unaudited), there were no sales of available-for-sale In addition to the securities listed above, the Company holds investments in a Rabbi Trust that are used to fund the executive and director non-qualified Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position is as follows (in thousands): Less than 12 Months Over 12 Months # of Fair Unrealized Fair Unrealized March 31, 2018 (unaudited): Available-for-sale Corporate debt securities 1 $ — $ — $ 4,071 $ (137 ) Held-to-maturity Corporate debt securities 2 7,782 (43 ) — — U.S. government sponsored mortgage-backed securities 82 60,454 (1,010 ) 73,512 (2,344 ) Total temporarily impaired securities 85 $ 68,236 $ (1,053 ) $ 77,583 $ (2,481 ) . December 31, 2017: Available-for-sale Corporate debt securities 1 $ — $ — $ 4,144 $ (78 ) Held-to-maturity U.S. government sponsored mortgage-backed securities 81 66,056 (718 ) 62,798 (1,371 ) Total temporarily impaired securities 82 $ 66,056 $ (718 ) $ 66,942 $ (1,449 ) Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. When there are securities in an unrealized loss position, consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. At March 31, 2018 (unaudited), 85 debt securities were in an unrealized loss position. Based on the Company’s March 31, 2018 (unaudited) quarterly review of securities in the investment portfolio, management has determined that unrealized losses related to the 85 debt securities with aggregate depreciation of 2.37% from the Company’s amortized cost basis were caused primarily by changes in market interest rates. The contractual terms of these investments do not permit the companies to settle the security at a price less than the par value of the investment. The Company currently does not believe it is probable that it will be unable to collect all amounts due according to the contractual terms of the investments. Therefore, it is expected that the securities would not be settled at a price less than the par value of the investment. Because the Company does not intend to sell the investments and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost basis, it does not consider these investments to be other-than-temporarily impaired at March 31, 2018. At December 31, 2017, 82 debt securities had unrealized losses with aggregate depreciation of 1.63% from the Company’s amortized cost basis. The Company’s unrealized losses on debt securities are primarily caused by changes in market interest rates. |
LOANS, ALLOWANCE FOR LOAN LOSSE
LOANS, ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY | 3 Months Ended |
Mar. 31, 2018 | |
LOANS, ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY | NOTE 4 – LOANS, ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. The accrual of interest on all loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in the process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Payments received on impaired loans are applied to reduce the recorded investment in the loan principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Some or all of the payments received on impaired loans are recognized as interest income if the remaining net carrying amount of the loan is deemed to be fully collectible. When recognition of interest income on an impaired loan on a cash basis is appropriate, the amount of income that is recognized is limited to that which would have been accrued on the net carrying amount of the loan at the contractual interest rate. Any cash interest payments received in excess of the limit and not applied to reduce the net carrying amount of the loan are recorded as recoveries of charge-offs until the charge-offs are fully recovered. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance for loan losses when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance for loan losses. The allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance for loan losses consists of general, allocated and unallocated components, as further described below. General Component: The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, home equity lines of credit, commercial real estate, construction, commercial, indirect auto and other consumer. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no changes in the Company’s policies or methodology pertaining to the general component of the allowance for loan losses during the three months ended March 31, 2018 or during fiscal year 2017. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate loans and home equity lines of credit – The Company generally does not originate or purchase loans with a loan-to-value Commercial real estate loans – Loans in this segment are primarily secured by income-producing properties in eastern Massachusetts. The underlying cash flows generated by the properties may be adversely impacted by a downturn in the economy and increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management generally obtains rent rolls annually and continually monitors the cash flows of these borrowers. Construction loans – Loans in this segment primarily include speculative real estate development loans for which payment is derived from sale and/or lease up of the property. Credit risk is affected by cost overruns, time to sell, or lease at adequate prices, and market conditions. Commercial loans – Loans in this segment are made to businesses and are generally secured by real estate and other assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer and business spending, will have an effect on the credit quality in this segment. Indirect auto loans – Loans in this segment are secured installment loans that were originated through a network of select regional automobile dealerships. The Company’s interest in the vehicle is secured with a recorded lien on the state title of each automobile. Collections are sensitive to changes in borrower financial circumstances, and the collateral can depreciate or be damaged in the event of repossession. Repayment is primarily dependent on the credit worthiness and the cash flow of the individual borrower and secondarily, liquidation of the collateral. Other consumer loans - Loans in this segment include secured and unsecured consumer loans including passbook loans, consumer lines of credit, and overdraft protection, and consumer unsecured loans. Repayment is dependent on the credit quality and the cash flow of the individual borrower. Allocated Component: The allocated component relates to loans that are classified as impaired. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring (“TDR”). All TDRs are classified as impaired. Impaired loans are measured for impairment based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral-dependent. Generally, TDRs are measured for impairment using the discounted cash flow method except in instances where foreclosure is probable in which case the fair value of collateral method is used. When the fair value of the impaired loan is determined to be less than the recorded investment in the loan, the impairment is recorded through the valuation allowance. However, for collateral dependent loans, the amount of the recorded investment in a loan that exceeds the fair value of the collateral is charged-off Unallocated Component: An unallocated component may be maintained to cover uncertainties that could affect management’s estimate of incurred losses. The unallocated component of the allowance for loan losses reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. At March 31, 2018 (unaudited) and December 31, 2017, the Company had unallocated reserves of $637,000 and $621,000, respectively. Loans consisted of the following (dollars in thousands): March 31, 2018 December 31, 2017 Amount Percent Amount Percent (unaudited) Mortgage loans: Residential one-to-four $ 1,401,754 58.82 % $ 1,333,058 57.93 % Commercial real estate loans (1) 679,450 28.51 642,072 27.90 Home equity lines of credit 179,129 7.52 178,624 7.76 Construction loans 31,770 1.33 53,045 2.31 Total mortgage loans 2,292,103 96.18 2,206,799 95.90 Commercial loans 66,053 2.77 63,722 2.77 Consumer loans: Indirect auto loans 24,664 1.03 30,227 1.31 Other consumer loans 408 0.02 435 0.02 91,125 3.82 94,384 4.10 Total loans 2,383,228 100.00 % 2,301,183 100.00 % Net deferred loan costs 3,444 3,426 Net unamortized mortgage premiums 8,931 8,661 Allowance for loan losses (16,584 ) (16,312 ) Total loans, net $ 2,379,019 $ 2,296,958 (1) Includes multi-family real estate loans. The following tables (in thousands) present the activity in the allowance for loan losses by portfolio class for the three months ended March 31, 2018 and 2017 (unaudited); and the balances of the allowance for loan losses and recorded investment in loans by portfolio class based on impairment method at March 31, 2018 (unaudited) and December 31, 2017. The recorded investment in loans in any of the following tables does not include accrued and unpaid interest, any deferred loan fees or costs or any premiums, as the amounts are not significant. Three Months Ended March 31, 2018 Beginning balance Provision (benefit) Charge-offs Recoveries Ending balance Residential one-to-four $ 6,400 $ 184 $ — $ — $ 6,584 Commercial real estate 6,583 385 — — 6,968 Home equity lines of credit 947 3 — — 950 Construction 764 (306 ) — — 458 Commercial 758 35 (4 ) — 789 Indirect auto 230 (41 ) (5 ) 9 193 Other consumer 9 (2 ) (3 ) 1 5 Unallocated 621 16 — — 637 Total $ 16,312 $ 274 $ (12 ) $ 10 $ 16,584 Three Months Ended March 31, 2017 Beginning balance Provision (benefit) Charge-offs Recoveries Ending balance Residential one-to-four $ 4,828 $ 395 $ — $ — $ 5,223 Commercial real estate 4,885 365 — — 5,250 Home equity lines of credit 1,037 (26 ) — — 1,011 Construction 1,219 78 — — 1,297 Commercial 728 (15 ) — — 713 Indirect auto 362 — (31 ) 4 335 Other consumer 9 4 (5 ) — 8 Unallocated 517 28 — — 545 Total $ 13,585 $ 829 $ (36 ) $ 4 $ 14,382 March 31, 2018 Individually evaluated for impairment Collectively evaluated for impairment Total Loan balance Allowance Loan balance Allowance Loan balance Allowance Residential one-to-four $ 2,134 $ 6 $ 1,399,620 $ 6,578 $ 1,401,754 $ 6,584 Commercial real estate 2,866 — 676,584 6,968 679,450 6,968 Home equity lines of credit — — 179,129 950 179,129 950 Construction — — 31,770 458 31,770 458 Commercial — — 66,053 789 66,053 789 Indirect auto — — 24,664 193 24,664 193 Other consumer — — 408 5 408 5 Unallocated — — — 637 — 637 Total $ 5,000 $ 6 $ 2,378,228 $ 16,578 $ 2,383,228 $ 16,584 December 31, 2017 Individually evaluated for impairment Collectively evaluated for impairment Total Loan balance Allowance Loan balance Allowance Loan balance Allowance Residential one-to-four $ 2,688 $ 147 $ 1,330,370 $ 6,253 $ 1,333,058 $ 6,400 Commercial real estate 2,877 — 639,195 6,583 642,072 6,583 Home equity lines of credit — — 178,624 947 178,624 947 Construction — — 53,045 764 53,045 764 Commercial — — 63,722 758 63,722 758 Indirect auto 4 — 30,223 230 30,227 230 Other consumer — — 435 9 435 9 Unallocated — — — 621 — 621 Total $ 5,569 $ 147 $ 2,295,614 $ 16,165 $ 2,301,183 $ 16,312 Information about loans that meet the definition of an impaired loan in ASC 310-10-35 Impaired loans with a related allowance for credit losses at March 31, 2018 Recorded Unpaid Related Residential one-to-four $ 196 $ 196 $ 6 Totals $ 196 $ 196 $ 6 Impaired loans with no related allowance for Recorded Unpaid Residential one-to-four $ 1,938 $ 2,040 Commercial real estate 2,866 2,866 Totals $ 4,804 $ 4,906 Impaired loans with a related allowance for credit losses at December 31, 2017 Recorded Unpaid Related Residential one-to-four $ 725 $ 725 $ 147 Totals $ 725 $ 725 $ 147 Impaired loans with no related allowance for Recorded Investment Unpaid Residential one-to-four $ 1,963 $ 2,052 Commercial real estate 2,877 2,877 Indirect auto 4 4 Totals $ 4,844 $ 4,933 The following tables set forth information regarding interest income recognized on impaired loans, by portfolio, for the periods indicated (unaudited and in thousands): Three months ended March 31, 2018 Three months ended March 31, 2017 With an allowance recorded Average Interest Average Interest Residential one-to-four $ 372 $ 4 $ 903 $ 8 Totals $ 372 $ 4 $ 903 $ 8 Three months ended March 31, 2018 Three months ended March 31, 2017 Without an allowance recorded Average Interest Average Interest Residential one-to-four $ 1,948 $ 8 $ 2,139 $ 4 Commercial real estate 2,872 31 3,305 36 Home equity lines of credit — — 360 11 Indirect auto 7 — 9 — Totals $ 4,827 $ 39 $ 5,813 $ 51 The following is a summary of past due and non-accrual March 31, 2018 (unaudited) 30–59 Days 60–89 Days 90 Days Total 90 days Loans on Non-accrual Real estate loans: Residential one-to-four $ 657 $ — $ 260 $ 917 $ — $ 1,351 Home equity lines of credit 407 — — 407 — — Other loans: Indirect auto 174 92 — 266 — — Total $ 1,238 $ 92 $ 260 $ 1,590 $ — $ 1,351 December 31, 2017 30–59 Days 60–89 Days 90 Days Total 90 day Loans on Non-accrual Real estate loans: Residential one-to-four $ 711 $ — $ 260 $ 971 $ — $ 1,372 Home equity lines of credit 716 — — 716 — — Other loans: Indirect auto 347 30 4 381 — 4 Total $ 1,774 $ 30 $ 264 $ 2,068 $ — $ 1,376 Credit Quality Information The Company utilizes a nine grade internal loan rating system for commercial, commercial real estate and construction loans, and a five grade internal loan rating system for certain residential real estate and home equity lines of credit that are rated if the loans become delinquent. Loans rated 1, 2, 2.5, 3 and 3.5: Loans in these categories are considered “pass” rated loans with low to average risk. Loans rated 4: Loans in this category are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management. Loans rated 5: Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected. Loans rated 6: Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. Loans rated 7: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted. On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial, commercial real estate, and construction loans. On an annual basis, the Company engages an independent third party to review a significant portion of loans within these segments. Management uses the results of these reviews as part of its annual review process. On a quarterly basis, the Company formally reviews the ratings on all residential real estate and home equity lines of credit if they have become delinquent. Criteria used to determine the rating consists of loan-to-value The following tables present the Company’s loans by risk rating at March 31, 2018 (unaudited and in thousands) and December 31, 2017 (in thousands). There were no loans rated as 6 (“doubtful”) or 7 (“loss”) at the dates indicated. March 31, 2018 Loans rated 1-3.5 Loans rated 4 Loans rated 5 Loans not rated (A) Total Residential one-to-four $ — $ 341 $ 2,036 $ 1,399,377 $ 1,401,754 Commercial real estate 675,643 — 3,807 — 679,450 Home equity lines of credit — — — 179,129 179,129 Construction 31,770 — — — 31,770 Commercial 66,035 18 — — 66,053 Indirect auto — — — 24,664 24,664 Other consumer — — — 408 408 Total $ 773,448 $ 359 $ 5,843 $ 1,603,578 $ 2,383,228 December 31, 2017 Loans rated 1-3.5 Loans rated 4 Loans rated 5 Loans not rated (A) Total Residential one-to-four $ — $ 344 $ 2,060 $ 1,330,654 $ 1,333,058 Commercial real estate 638,254 — 3,818 — 642,072 Home equity lines of credit — — 772 177,852 178,624 Construction 53,045 — — — 53,045 Commercial 63,682 40 — — 63,722 Indirect auto — — — 30,227 30,227 Consumer — — — 435 435 Total $ 754,981 $ 384 $ 6,650 $ 1,539,168 $ 2,301,183 (A) Residential real estate and home equity lines of credit are not formally risk rated by the Company unless the loans become delinquent, impaired or are restructured as a TDR. The Company periodically modifies loans to extend the term, reduce the interest rate or make other concessions to help a borrower stay current on their loan and to avoid foreclosure. Any loans that are modified are reviewed by the Company to determine if a TDR has occurred, which is when, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. During the three months ended March 31, 2018 and 2017 (unaudited), there were no loans modified and determined to be TDRs. The following table shows the Company’s total TDRs and other pertinent information as of the dates indicated (in thousands): March 31, 2018 December 31, 2017 (unaudited) TDRs on Accrual Status $ 3,649 $ 4,194 TDRs on Nonaccrual Status 635 645 Total TDRs $ 4,284 $ 4,839 Amount of specific allocation included in the allowance for loan losses associated with TDRs $ 6 $ 147 Additional commitments to lend to a borrower who has been a party to a TDR $ — $ — The Company generally considers a loan to have defaulted when it reaches 90 days past due. There were no loans that have been modified as TDRs during the past twelve months which have subsequently defaulted during during the three months ended March 31, 2018 and 2017. The impact of TDRs and subsequently defaulted TDRs did not have a material impact on the allowance for loan losses. Foreclosure Proceedings The Company had no consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure as of March 31, 2018 (unaudited) and December 31, 2017. |
TRANSFERS AND SERVICING
TRANSFERS AND SERVICING | 3 Months Ended |
Mar. 31, 2018 | |
TRANSFERS AND SERVICING | NOTE 5 – TRANSFERS AND SERVICING Certain residential mortgage loans are periodically sold by the Company to the secondary market. Generally, these loans are sold without recourse or other credit enhancements. The Company sells loans and both releases and retains the servicing rights. For loans sold with the servicing rights retained, we provide the servicing for the loans on a per-loan At March 31, 2018 (unaudited) and December 31, 2017, residential loans previously sold and serviced by the Company were $132.1 million and $114.5 million, respectively. At March 31, 2018 (unaudited) and December 31, 2017, indirect auto loans previously sold and serviced by the Company were $7.7 million and $10.5 million, respectively. Mortgage servicing rights (“MSR”) are initially recorded as an asset and measured at fair value when loans are sold to third parties with servicing rights retained. MSR assets are amortized in proportion to, and over the period of, estimated net servicing revenues. The carrying value of these assets is periodically reviewed for impairment using the lower of amortized cost or fair value methodology. The fair value of the servicing rights is determined by estimating the present value of future net cash flows, taking into consideration market loan prepayment speeds, discount rates, servicing costs and other economic factors. For purposes of measuring impairment, the underlying loans are stratified into relatively homogeneous pools based on predominant risk characteristics which include product type (i.e., fixed or adjustable) and interest rate bands. If the aggregate carrying value of the capitalized mortgage servicing rights for a stratum exceeds its fair value, MSR impairment is recognized in earnings through a valuation allowance for the difference. As the loans are repaid and net servicing revenue is earned, the MSR asset is amortized as an offset to loan servicing income. Servicing revenues are expected to exceed this amortization expense. However, if actual prepayment experience or defaults exceed what was originally anticipated, net servicing revenues may be less than expected and mortgage servicing rights may be impaired. No servicing assets or liabilities related to auto loans were recorded, as the contractual servicing fees are adequate to compensate the Company for its servicing responsibilities. Changes in mortgage servicing rights, which are included in other assets, were as follows (in thousands): Three months ended March 31, 2018 2017 (unaudited) Balance at beginning of period $ 855 $ 403 Capitalization 208 5 Amortization (49 ) (24 ) Valuation allowance adjustment 39 30 Balance at end of period $ 1,053 $ 414 |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWED FUNDS | 3 Months Ended |
Mar. 31, 2018 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWED FUNDS | NOTE 6 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWED FUNDS The securities sold under agreements to repurchase as of March 31, 2018 (unaudited) and December 31, 2017 are securities sold on a short-term basis by the Company that have been accounted for not as sales but as secured borrowings. The securities consisted of mortgage-backed securities issued by a U.S. government sponsored entity. The securities were held in the Company’s safekeeping account at the Federal Home Loan Bank (“FHLB”) of Boston under the control of the Company. The securities are pledged to the purchasers of the securities. The purchasers have agreed to sell to the Company identical securities at the maturity of the agreements. The balance of securities sold under agreements to repurchase as of March 31, 2018 (unaudited) and December 31, 2017 was $3.7 million and $3.3 million, respectively. |
EMPLOYEE AND DIRECTOR BENEFIT P
EMPLOYEE AND DIRECTOR BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2018 | |
EMPLOYEE AND DIRECTOR BENEFIT PLANS | NOTE 7 – EMPLOYEE AND DIRECTOR BENEFIT PLANS Belmont Savings Bank Supplemental Executive Retirement Plan The purpose of the Belmont Savings Bank Supplemental Executive Retirement Plan is to remain competitive with our peers in our compensation arrangements and to help us retain certain executive officers of the Company. At March 31, 2018 (unaudited) and December 31, 2017, there were four participants in the Plan. Participants are fully vested after the completion of between five and ten years of service. The plan is unfunded. The estimated liability at March 31, 2018 (unaudited) and December 31, 2017 relating to this plan was $1.9 million and $1.8 million, respectively. Other Supplemental Retirement Plans The Company has supplemental retirement plans for eligible executive officers that provide for a lump sum benefit upon termination of employment at or after age 55 and completing 10 or more years of service (certain reduced benefits are available prior to attaining age 55 or fewer than 10 years of service), subject to certain limitations as set forth in the agreements. The present value of these future payments is being accrued over the service period. The estimated liability at March 31, 2018 (unaudited) and December 31, 2017 relating to these plans was $2.7 million and $2.6 million, respectively. The Company has a supplemental retirement plan for eligible directors that provides for monthly benefits based upon years of service to the Company, subject to certain limitations as set forth in the agreements. The present value of these future payments is being accrued over the estimated period of service. The estimated liability at March 31, 2018 (unaudited) and December 31, 2017 relating to this plan was $697,000. Incentive Compensation Plan The Incentive Compensation Plan is a discretionary annual cash-based incentive plan that is an integral part of the participant’s total compensation package and supports the continued growth, profitability and risk management of the Company. Each year participants are awarded for the achievement of certain performance objectives on a company-wide and individual basis. Compensation expense recognized was $562,000 and $512,000 for the three months ended March 31, 2018 and 2017 (unaudited), respectively. Defined Contribution Plan The Company sponsors a 401(k) plan covering substantially all employees meeting certain eligibility requirements. Under the provisions of the plan, employees are able to contribute up to an annual limit of the lesser of 75% of eligible compensation or the maximum allowed by the Internal Revenue Service. The Company’s contributions for the three months ended March, 2018 and 2017 (unaudited) totaled $253,000 and $242,000, respectively. Deferred Compensation Plan The Company has a compensation deferral plan by which selected employees and directors of the Company are entitled to elect, prior to the beginning of each year, to defer the receipt of an amount of their compensation for the forthcoming year. Each agreement allows for the individual to elect to defer a portion of his or her compensation to an individual deferred compensation account established by the Company. In April 2013, the Company created a Rabbi Trust, or grantor trust. The Rabbi Trust is maintained by the Company primarily for purposes of holding deferred compensation for certain directors and employees of the Company. The plan is administered by a third party and permits participants to select from a number of investment options for the investment of their account balances. Each participant is always 100% vested in his or her deferred compensation account balance. As of March 31, 2018 (unaudited) and December 31, 2017, the recorded liability relating to the Rabbi Trust was $2.8 million. Employee Stock Ownership Plan The Company maintains an Employee Stock Ownership Plan (“ESOP”) to provide eligible employees the opportunity to own Company stock. This plan is a tax-qualified The Company contributed funds to a subsidiary to enable it to grant a loan to the ESOP for the purchase of 458,643 shares of the Company’s common stock at a price of $10.00 per share. The loan obtained by the ESOP from the Company’s subsidiary to purchase Company common stock is payable annually over 30 years at a rate per annum equal to the Prime Rate on the first business day of each calendar year (4.5% for 2018, unaudited). Loan payments are principally funded by cash contributions from the Bank. The loan is secured by the shares purchased, which are held in a suspense account for allocation among participants as the loan is repaid. Cash dividends paid on allocated shares are distributed to participants and cash dividends paid on unallocated shares are used to repay the outstanding debt of the ESOP. Shares used as collateral to secure the loan are released and available for allocation to eligible employees as the principal and interest on the loan is paid. The Company incurred expenses of $114,000 and $106,000 for the three months ended March 31 2018 and 2017 (unaudited), respectively. Severance Agreements The Company has entered into employment agreements and change in control agreements with certain executive officers which would provide the executive officers with severance payments based on salary, and the continuation of other benefits, upon a change in control as defined in the agreements. |
PLEDGED ASSETS
PLEDGED ASSETS | 3 Months Ended |
Mar. 31, 2018 | |
PLEDGED ASSETS | NOTE 8 – PLEDGED ASSETS The following securities and loans were pledged to secure securities sold under agreements to repurchase, FHLB advances and credit facilities available (in thousands): March 31, 2018 (unaudited) Securities held to Loans Total pledged Repurchase agreements $ 5,343 $ — $ 5,343 FHLB borrowings 45,210 1,505,974 1,551,184 Federal Reserve Bank line of credit 10,790 — 10,790 Total pledged assets $ 61,343 $ 1,505,974 $ 1,567,317 December 31, 2017 Securities held to Loans Total pledged Repurchase agreements $ 5,582 $ — $ 5,582 FHLB borrowings 47,666 1,406,483 1,454,149 Federal Reserve Bank line of credit 15,780 — 15,780 Total pledged assets $ 69,028 $ 1,406,483 $ 1,475,511 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2018 | |
EARNINGS PER SHARE | NOTE 9 – EARNINGS PER SHARE Basic earnings per share (“EPS”) excludes dilution and is calculated by dividing net income allocated to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted EPS is computed in a manner similar to that of basic EPS except that the weighted-average number of common shares outstanding is increased to include the number of incremental common shares (computed using the treasury stock method) that would have been outstanding if all potentially dilutive common stock equivalents (such as stock options and unvested restricted stock not meeting the definition of a participating security) were issued during the period. Earnings per share consisted of the following components for the periods indicated (unaudited and dollars in thousands except per share data): Three months ended 2018 2017 Net income $ 6,010 $ 3,666 Undistributed earnings attributable to participating securities (1 ) (30 ) Net income allocated to common stockholders $ 6,009 $ 3,636 Weighted average shares outstanding, basic 8,886,964 8,675,915 Effect of dilutive shares 449,206 408,066 Weighted average shares outstanding, assuming dilution 9,336,170 9,083,981 Basic EPS $ 0.68 $ 0.42 Effect of dilutive shares (0.04 ) (0.02 ) Diluted EPS $ 0.64 $ 0.40 There were no options to purchase shares of common stock outstanding and not included in the computation of EPS because they were antidilutive under the treasury stock method during the three months ended March 31, 2018 and 2017 (unaudited). Unallocated common shares held by the ESOP are shown as a reduction in stockholders’ equity and are not included in the weighted-average number of common shares outstanding for either basic or diluted earnings per share calculations. On June 22, 2013, the Company’s Board of Directors authorized a program to repurchase, from time-to-time |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2018 | |
STOCK BASED COMPENSATION | NOTE 10 – STOCK BASED COMPENSATION On February 8, 2017, the stockholders of the Company approved the Company’s 2017 Equity Incentive Plan (“the Plan”). On March 15, 2017, 487,200 restricted stock awards were granted under the Plan. The shares had a grant date fair value of $27.10 per share and vest over ten years with an estimated forfeiture rate of 2.64%. The awards are not deemed to be participating securities. The following table presents the pre-tax Three months ended 2018 2017 Stock options $ 22 $ 189 Restricted stock awards 330 268 Total stock based compensation expense $ 352 $ 457 Related tax benefits recognized in earnings $ 93 $ 143 The adoption of ASU 2016-09 paid-in Three months ended 2018 2017 After tax benefits recognized in net income $ 109 $ 718 Total compensation cost related to non-vested As of March 31, 2018 (unaudited) Amount Weighted Stock options $ 116 2.25 Restricted stock 10,318 8.94 Total $ 10,434 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2018 | |
FAIR VALUE MEASUREMENTS | NOTE 11 – FAIR VALUE MEASUREMENTS Determination of Fair Value The fair value of an asset or liability is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses prices and inputs that are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from one level to another. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various assets and liabilities. In cases where quoted market prices are not available, fair values are based on estimates using the present value of cash flows or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the observability and reliability of the assumptions used to determine fair value. Level 1 - Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 - Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 - Level 3 inputs are unobservable inputs for the asset or liability. For assets and liabilities, fair value level is based upon the lowest level of input that is significant to the fair value measurement. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon models that primarily use, as inputs, observable market based parameters. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented herein. A more detailed description of the valuation methodologies used for assets and liabilities measured at fair value is set forth below. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities carried at fair value for March 31, 2018 (unaudited) and December 31, 2017. There were no significant transfers between the levels of the fair value hierarchy during the three months ended March 31,2018 (unaudited) and the year ended December 31, 2017. Financial Assets and Financial Liabilities: Investment Securities Available for Sale Investments held in the Rabbi Trust non-qualified Derivatives The fair values of interest rate caps are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rate of the contract (caps). The variable interest rates used in the calculation of projected receipts on the cap are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. To comply with the provisions of ASC 820, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. A majority of the inputs used to value the Company’s derivatives fall within Level 2 of the fair value hierarchy. Any related credit value adjustments generally utilize Level 3 inputs such as estimates of credit spreads. However, as of March 31, 2018, the Company has assessed the valuation methodology of these derivatives and determined that the credit valuation adjustments do not materially impact the overall valuation of the derivative position; accordingly, the Company classifies these instruments entirely within Level 2 of the fair value hierarchy. The following table summarizes financial assets measured at fair value on a recurring basis as of March 31, 2018 (unaudited) and December 31, 2017, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): Level 1 Level 2 Level 3 Total At March 31, 2018 (unaudited) Securities available-for-sale Corporate debt securities $ — $ 12,025 $ — $ 12,025 Trading securities Rabbi trust investments 2,795 — — 2,795 Derivative assets Interest rate cap — 1,346 — 1,346 Totals $ 2,795 $ 13,371 $ — $ 16,166 Level 1 Level 2 Level 3 Total At December 31, 2017 Securities available-for-sale Corporate debt securities $ — $ 16,921 $ — $ 16,921 Trading securities Rabbi trust investments 2,808 — — 2,808 Totals $ 2,808 $ 16,921 $ — $ 19,729 Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets measured at fair value on a non-recurring Level 3. Estimates of fair value used for other collateral supporting commercial loans generally are based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. There were no impaired loans that were re-measured Non-Financial Non-Financial non-financial non-financial non-recurring The following table (in thousands) presents the non-financial re-measured March 31, 2018 Level 1 Level 2 Level 3 (unaudited) Mortgage servicing rights $ — $ — $ 1,053 Totals $ — $ — $ 1,053 December 31, 2017 Level 1 Level 2 Level 3 Mortgage servicing rights $ — $ — $ 855 Totals $ — $ — $ 855 ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring non-recurring 2016-01 Summary of Fair Values of Financial Instruments not Carried at Fair Value The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments are as follows (in thousands): March 31, 2018 Carrying Fair Level 1 Level 2 Level 3 (unaudited) Financial assets: Cash and cash equivalents $ 107,078 $ 107,078 $ 107,078 $ — $ — Interest-bearing time deposits with other banks 2,460 2,460 — 2,460 — Held-to-maturity 155,559 152,267 — 152,267 — Federal Home Loan Bank stock 31,988 31,988 — 31,988 — Loans, net 2,379,019 2,285,866 — — 2,285,866 Accrued interest receivable 6,086 6,086 6,086 — — Bank-owned life insurance 37,235 37,235 — 37,235 — Financial liabilities: Deposits 1,873,019 1,868,514 1,313,837 554,677 — Federal Home Loan Bank advances 662,250 656,008 — 656,008 — Securities sold under agreements to repurchase 3,738 3,738 — 3,738 — Accrued interest payable 1,546 1,546 1,546 — — Mortgagors’ escrow accounts 5,608 5,608 — 5,608 — December 31, 2017 Carrying Fair Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents Interest-bearing time $ 110,888 $ 110,888 $ 110,888 $ — $ — deposits with other banks 2,440 2,440 — 2,440 — Held-to-maturity 160,090 158,385 — 158,385 — Federal Home Loan Bank stock 32,382 32,382 — 32,382 — Loans, net 2,296,958 2,251,971 — — 2,251,971 Accrued interest receivable 6,344 6,344 6,344 — — Bank-owned life insurance 36,967 36,967 — 36,967 — Financial liabilities: Deposits 1,751,251 1,748,995 1,246,537 502,458 — Federal Home Loan Bank advances 723,150 719,430 — 719,430 — Securities sold under agreements to repurchase 3,268 3,268 — 3,268 — Accrued interest payable 1,594 1,594 1,594 — — Mortgagors’ escrow accounts 4,690 4,690 — 4,690 — The financial instruments in the tables above are included in the consolidated balance sheets under the indicated captions except for mortgagors’ escrow accounts which are included in other liabilities. |
OTHER COMPREHENSIVE (LOSS) INCO
OTHER COMPREHENSIVE (LOSS) INCOME | 3 Months Ended |
Mar. 31, 2018 | |
OTHER COMPREHENSIVE (LOSS) INCOME | NOTE 12 – OTHER COMPREHENSIVE (LOSS) INCOME The following table presents a reconciliation of the changes in the components of other comprehensive (loss) income for the dates indicated, including the amount of income tax (benefit) expense allocated to each component of other comprehensive (loss) income: Three months ended March 31, 2018 Three months ended March 31, 2017 Pre Tax Tax After Tax Pre Tax Tax After Tax Securities available-for-sale: Change in fair value of securities available-for-sale $ (79 ) $ 23 $ (56 ) $ 113 $ (46 ) $ 67 Cash flow hedges: Net change in fair value of cash flow hedges (179 ) 50 (129 ) — — — Total other comprehensive (loss) income $ (258 ) $ 73 $ (185 ) $ 113 $ (46 ) $ 67 The components of accumulated other comprehensive (loss) income, included in stockholders’ equity, are as follows: (in thousands): March 31, 2018 December 31, 2017 (unaudited) Net unrealized holding loss on available-for-sale $ (95 ) $ (32 ) Unrecognized benefit pertaining to defined benefit plan, net of tax 147 121 Change in the fair value of cash flow hedges, net of tax (129 ) — Accumulated other comprehensive (loss) income $ (77 ) $ 89 Accumulated other comprehensive income at December 31, 2017 included $19,000 related to stranded amounts resulting from the re-measurement of ASU 2018-02, that 2018-02 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2018 | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 13 – DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and through the use of derivative financial instruments when deemed appropriate. The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company has purchased an interest rate cap as part of its interest rate risk management strategy. Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front The Company recognizes its derivative instruments on the consolidated balance sheet at fair value. On the date the derivative instrument is entered into, the Company designates whether the derivative is part of a hedging relationship (i.e., cash flow or fair value hedge). The Company formally documents relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking hedge transactions. The Company also assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting the changes in cash flows or fair values of hedged items. Changes in fair value of derivative instruments that are highly effective and qualify as cash flow hedges are recorded in other comprehensive income net of tax. Any ineffective portion is recorded in earnings. The Company discontinues hedge accounting when it is determined that the derivative is no longer effective in offsetting changes of the hedged risk on the hedged item, or management determines that the designation of the derivative as a hedging instrument is no longer appropriate. Cash Flow Hedges of Interest Rate Risk In March of 2018, a $100 million notional interest rate cap agreement was purchased to limit the Company’s exposure to rising interest rates related to $100 million of rolling, three-month FHLB advances. Under the terms of the agreement, the Company paid a premium of $1.5 million for the right to receive cash flow payments if 3-month The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheet as of the periods presented (in thousands): Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 Number of Notional Balance Fair Value Balance Fair Value Balance Fair Value Balance Fair Value Derivatives designated as hedging instruments: Interest Rate Cap 1 $ 100,000 Other Assets $ 1,346 Other Assets $ — Other $ — Other $ — Total derivatives designated as hedging instruments $ 1,346 $ — $ — $ — Certain derivative agreements contain provisions that require the Company or the third party financial institution to post collateral if the derivative exposure exceeds a certain threshold. The Company has not posted collateral in connection with this arrangement as of March 31, 2018. As of March 31, 2018, the third party financial institution posted $1.4 million of cash collateral on deposit with the Bank. The Company has agreements with certain of its derivative counterparties that contain credit-risk-related contingent provisions. These provisions provide the counterparty with the right to terminate its derivative positions and require the Company to settle its obligations under the agreements if the Company defaults on certain of its indebtedness or if the Company fails to maintain its status as a well-capitalized institution. Balance Sheet Offsetting. set-off” Counterparty Credit Risk. |
INVESTMENTS IN SECURITIES (Tabl
INVESTMENTS IN SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Amortized Cost Basis and Fair Value of Available for Sale and Held-to-Maturity Securities | The amortized cost basis of available-for-sale held-to-maturity March 31, 2018 December 31, 2017 Amortized Gross Gross Fair Amortized Gross Gross Fair (unaudited) Available-for-sale Corporate debt securities $ 12,158 $ 4 $ (137 ) $ 12,025 $ 16,975 $ 24 $ (78 ) $ 16,921 $ 12,158 $ 4 $ (137 ) $ 12,025 $ 16,975 $ 24 $ (78 ) $ 16,921 Held-to-maturity U.S. government sponsored mortgage-backed securities $ 142,838 $ 66 $ (3,354 ) $ 139,550 $ 142,383 $ 145 $ (2,089 ) $ 140,439 Corporate debt securities 12,721 39 (43 ) 12,717 17,707 239 — 17,946 $ 155,559 $ 105 $ (3,397 ) $ 152,267 $ 160,090 $ 384 $ (2,089 ) $ 158,385 |
Amortized Cost Basis and Estimated Fair Value of Debt Securities by Contractual Maturity | The amortized cost basis and estimated fair value of debt securities by contractual maturity at March 31, 2018 is as follows (in thousands and unaudited). Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. March 31, 2018 Available-for-Sale Held-to-Maturity Amortized Fair Amortized Fair (unaudited) (unaudited) Due within one year $ 7,951 $ 7,954 $ 2,001 $ 2,002 Due after one year through five years 4,207 4,071 12,571 12,504 Due after five years through ten years — — 33,087 32,119 Due after ten years — — 107,900 105,642 $ 12,158 $ 12,025 $ 155,559 $ 152,267 |
Securities with Gross Unrealized Losses Aggregated by Investment Category and Length of Time | Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position is as follows (in thousands): Less than 12 Months Over 12 Months # of Fair Unrealized Fair Unrealized March 31, 2018 (unaudited): Available-for-sale Corporate debt securities 1 $ — $ — $ 4,071 $ (137 ) Held-to-maturity Corporate debt securities 2 7,782 (43 ) — — U.S. government sponsored mortgage-backed securities 82 60,454 (1,010 ) 73,512 (2,344 ) Total temporarily impaired securities 85 $ 68,236 $ (1,053 ) $ 77,583 $ (2,481 ) . December 31, 2017: Available-for-sale Corporate debt securities 1 $ — $ — $ 4,144 $ (78 ) Held-to-maturity U.S. government sponsored mortgage-backed securities 81 66,056 (718 ) 62,798 (1,371 ) Total temporarily impaired securities 82 $ 66,056 $ (718 ) $ 66,942 $ (1,449 ) |
LOANS, ALLOWANCE FOR LOAN LOS22
LOANS, ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Loans | Loans consisted of the following (dollars in thousands): March 31, 2018 December 31, 2017 Amount Percent Amount Percent (unaudited) Mortgage loans: Residential one-to-four $ 1,401,754 58.82 % $ 1,333,058 57.93 % Commercial real estate loans (1) 679,450 28.51 642,072 27.90 Home equity lines of credit 179,129 7.52 178,624 7.76 Construction loans 31,770 1.33 53,045 2.31 Total mortgage loans 2,292,103 96.18 2,206,799 95.90 Commercial loans 66,053 2.77 63,722 2.77 Consumer loans: Indirect auto loans 24,664 1.03 30,227 1.31 Other consumer loans 408 0.02 435 0.02 91,125 3.82 94,384 4.10 Total loans 2,383,228 100.00 % 2,301,183 100.00 % Net deferred loan costs 3,444 3,426 Net unamortized mortgage premiums 8,931 8,661 Allowance for loan losses (16,584 ) (16,312 ) Total loans, net $ 2,379,019 $ 2,296,958 (1) Includes multi-family real estate loans. |
Activity in Allowance for Loan Losses by Portfolio Class and Balances of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Class | The following tables (in thousands) present the activity in the allowance for loan losses by portfolio class for the three months ended March 31, 2018 and 2017 (unaudited); and the balances of the allowance for loan losses and recorded investment in loans by portfolio class based on impairment method at March 31, 2018 (unaudited) and December 31, 2017. The recorded investment in loans in any of the following tables does not include accrued and unpaid interest, any deferred loan fees or costs or any premiums, as the amounts are not significant. Three Months Ended March 31, 2018 Beginning balance Provision (benefit) Charge-offs Recoveries Ending balance Residential one-to-four $ 6,400 $ 184 $ — $ — $ 6,584 Commercial real estate 6,583 385 — — 6,968 Home equity lines of credit 947 3 — — 950 Construction 764 (306 ) — — 458 Commercial 758 35 (4 ) — 789 Indirect auto 230 (41 ) (5 ) 9 193 Other consumer 9 (2 ) (3 ) 1 5 Unallocated 621 16 — — 637 Total $ 16,312 $ 274 $ (12 ) $ 10 $ 16,584 Three Months Ended March 31, 2017 Beginning balance Provision (benefit) Charge-offs Recoveries Ending balance Residential one-to-four $ 4,828 $ 395 $ — $ — $ 5,223 Commercial real estate 4,885 365 — — 5,250 Home equity lines of credit 1,037 (26 ) — — 1,011 Construction 1,219 78 — — 1,297 Commercial 728 (15 ) — — 713 Indirect auto 362 — (31 ) 4 335 Other consumer 9 4 (5 ) — 8 Unallocated 517 28 — — 545 Total $ 13,585 $ 829 $ (36 ) $ 4 $ 14,382 March 31, 2018 Individually evaluated for impairment Collectively evaluated for impairment Total Loan balance Allowance Loan balance Allowance Loan balance Allowance Residential one-to-four $ 2,134 $ 6 $ 1,399,620 $ 6,578 $ 1,401,754 $ 6,584 Commercial real estate 2,866 — 676,584 6,968 679,450 6,968 Home equity lines of credit — — 179,129 950 179,129 950 Construction — — 31,770 458 31,770 458 Commercial — — 66,053 789 66,053 789 Indirect auto — — 24,664 193 24,664 193 Other consumer — — 408 5 408 5 Unallocated — — — 637 — 637 Total $ 5,000 $ 6 $ 2,378,228 $ 16,578 $ 2,383,228 $ 16,584 December 31, 2017 Individually evaluated for impairment Collectively evaluated for impairment Total Loan balance Allowance Loan balance Allowance Loan balance Allowance Residential one-to-four $ 2,688 $ 147 $ 1,330,370 $ 6,253 $ 1,333,058 $ 6,400 Commercial real estate 2,877 — 639,195 6,583 642,072 6,583 Home equity lines of credit — — 178,624 947 178,624 947 Construction — — 53,045 764 53,045 764 Commercial — — 63,722 758 63,722 758 Indirect auto 4 — 30,223 230 30,227 230 Other consumer — — 435 9 435 9 Unallocated — — — 621 — 621 Total $ 5,569 $ 147 $ 2,295,614 $ 16,165 $ 2,301,183 $ 16,312 |
Information about Loans that Meet Definition of Impaired Loan | Information about loans that meet the definition of an impaired loan in ASC 310-10-35 Impaired loans with a related allowance for credit losses at March 31, 2018 Recorded Unpaid Related Residential one-to-four $ 196 $ 196 $ 6 Totals $ 196 $ 196 $ 6 Impaired loans with no related allowance for Recorded Unpaid Residential one-to-four $ 1,938 $ 2,040 Commercial real estate 2,866 2,866 Totals $ 4,804 $ 4,906 Impaired loans with a related allowance for credit losses at December 31, 2017 Recorded Unpaid Related Residential one-to-four $ 725 $ 725 $ 147 Totals $ 725 $ 725 $ 147 Impaired loans with no related allowance for Recorded Investment Unpaid Residential one-to-four $ 1,963 $ 2,052 Commercial real estate 2,877 2,877 Indirect auto 4 4 Totals $ 4,844 $ 4,933 |
Information regarding Interest Income Recognized on Impaired Loans | The following tables set forth information regarding interest income recognized on impaired loans, by portfolio, for the periods indicated (unaudited and in thousands): Three months ended March 31, 2018 Three months ended March 31, 2017 With an allowance recorded Average Interest Average Interest Residential one-to-four $ 372 $ 4 $ 903 $ 8 Totals $ 372 $ 4 $ 903 $ 8 Three months ended March 31, 2018 Three months ended March 31, 2017 Without an allowance recorded Average Interest Average Interest Residential one-to-four $ 1,948 $ 8 $ 2,139 $ 4 Commercial real estate 2,872 31 3,305 36 Home equity lines of credit — — 360 11 Indirect auto 7 — 9 — Totals $ 4,827 $ 39 $ 5,813 $ 51 |
Summary of Past Due and Non-Accrual Loans | The following is a summary of past due and non-accrual March 31, 2018 (unaudited) 30–59 Days 60–89 Days 90 Days Total 90 days Loans on Non-accrual Real estate loans: Residential one-to-four $ 657 $ — $ 260 $ 917 $ — $ 1,351 Home equity lines of credit 407 — — 407 — — Other loans: Indirect auto 174 92 — 266 — — Total $ 1,238 $ 92 $ 260 $ 1,590 $ — $ 1,351 December 31, 2017 30–59 Days 60–89 Days 90 Days Total 90 day Loans on Non-accrual Real estate loans: Residential one-to-four $ 711 $ — $ 260 $ 971 $ — $ 1,372 Home equity lines of credit 716 — — 716 — — Other loans: Indirect auto 347 30 4 381 — 4 Total $ 1,774 $ 30 $ 264 $ 2,068 $ — $ 1,376 |
Company's Loans by Risk Rating | The following tables present the Company’s loans by risk rating at March 31, 2018 (unaudited and in thousands) and December 31, 2017 (in thousands). There were no loans rated as 6 (“doubtful”) or 7 (“loss”) at the dates indicated. March 31, 2018 Loans rated 1-3.5 Loans rated 4 Loans rated 5 Loans not rated (A) Total Residential one-to-four $ — $ 341 $ 2,036 $ 1,399,377 $ 1,401,754 Commercial real estate 675,643 — 3,807 — 679,450 Home equity lines of credit — — — 179,129 179,129 Construction 31,770 — — — 31,770 Commercial 66,035 18 — — 66,053 Indirect auto — — — 24,664 24,664 Other consumer — — — 408 408 Total $ 773,448 $ 359 $ 5,843 $ 1,603,578 $ 2,383,228 December 31, 2017 Loans rated 1-3.5 Loans rated 4 Loans rated 5 Loans not rated (A) Total Residential one-to-four $ — $ 344 $ 2,060 $ 1,330,654 $ 1,333,058 Commercial real estate 638,254 — 3,818 — 642,072 Home equity lines of credit — — 772 177,852 178,624 Construction 53,045 — — — 53,045 Commercial 63,682 40 — — 63,722 Indirect auto — — — 30,227 30,227 Consumer — — — 435 435 Total $ 754,981 $ 384 $ 6,650 $ 1,539,168 $ 2,301,183 (A) Residential real estate and home equity lines of credit are not formally risk rated by the Company unless the loans become delinquent, impaired or are restructured as a TDR. |
Trouble Debt Restructuring Accrual Status | The following table shows the Company’s total TDRs and other pertinent information as of the dates indicated (in thousands): March 31, 2018 December 31, 2017 (unaudited) TDRs on Accrual Status $ 3,649 $ 4,194 TDRs on Nonaccrual Status 635 645 Total TDRs $ 4,284 $ 4,839 Amount of specific allocation included in the allowance for loan losses associated with TDRs $ 6 $ 147 Additional commitments to lend to a borrower who has been a party to a TDR $ — $ — |
TRANSFERS AND SERVICING (Tables
TRANSFERS AND SERVICING (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Changes in Mortgage Servicing Rights | Changes in mortgage servicing rights, which are included in other assets, were as follows (in thousands): Three months ended March 31, 2018 2017 (unaudited) Balance at beginning of period $ 855 $ 403 Capitalization 208 5 Amortization (49 ) (24 ) Valuation allowance adjustment 39 30 Balance at end of period $ 1,053 $ 414 |
PLEDGED ASSETS (Tables)
PLEDGED ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Securities and Loans Pledged to Secure Securities Sold Under Agreements to Repurchase, FHLB Advances and Credit Facilities Available | The following securities and loans were pledged to secure securities sold under agreements to repurchase, FHLB advances and credit facilities available (in thousands): March 31, 2018 (unaudited) Securities held to Loans Total pledged Repurchase agreements $ 5,343 $ — $ 5,343 FHLB borrowings 45,210 1,505,974 1,551,184 Federal Reserve Bank line of credit 10,790 — 10,790 Total pledged assets $ 61,343 $ 1,505,974 $ 1,567,317 December 31, 2017 Securities held to Loans Total pledged Repurchase agreements $ 5,582 $ — $ 5,582 FHLB borrowings 47,666 1,406,483 1,454,149 Federal Reserve Bank line of credit 15,780 — 15,780 Total pledged assets $ 69,028 $ 1,406,483 $ 1,475,511 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Components of Earning Per Share | Earnings per share consisted of the following components for the periods indicated (unaudited and dollars in thousands except per share data): Three months ended 2018 2017 Net income $ 6,010 $ 3,666 Undistributed earnings attributable to participating securities (1 ) (30 ) Net income allocated to common stockholders $ 6,009 $ 3,636 Weighted average shares outstanding, basic 8,886,964 8,675,915 Effect of dilutive shares 449,206 408,066 Weighted average shares outstanding, assuming dilution 9,336,170 9,083,981 Basic EPS $ 0.68 $ 0.42 Effect of dilutive shares (0.04 ) (0.02 ) Diluted EPS $ 0.64 $ 0.40 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Pre-Tax Expense Associated with Stock Option and Restricted Stock Awards and Related Tax Benefits Recognized | The following table presents the pre-tax Three months ended 2018 2017 Stock options $ 22 $ 189 Restricted stock awards 330 268 Total stock based compensation expense $ 352 $ 457 Related tax benefits recognized in earnings $ 93 $ 143 |
Compensation Cost Related to Non-Vested Awards not Yet Recognized and Weighted Average Recognition Period | Total compensation cost related to non-vested As of March 31, 2018 (unaudited) Amount Weighted Stock options $ 116 2.25 Restricted stock 10,318 8.94 Total $ 10,434 |
Adoption of ASU 2016-09 | |
Excess Tax Benefits Recognized from Stock Based Compensation | Excess tax benefits recognized from stock-based compensation for the periods indicated below are as follows (in thousands and unaudited): Three months ended 2018 2017 After tax benefits recognized in net income $ 109 $ 718 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Financial Assets Measured at Fair Value on Recurring Basis | The following table summarizes financial assets measured at fair value on a recurring basis as of March 31, 2018 (unaudited) and December 31, 2017, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): Level 1 Level 2 Level 3 Total At March 31, 2018 (unaudited) Securities available-for-sale Corporate debt securities $ — $ 12,025 $ — $ 12,025 Trading securities Rabbi trust investments 2,795 — — 2,795 Derivative assets Interest rate cap — 1,346 — 1,346 Totals $ 2,795 $ 13,371 $ — $ 16,166 Level 1 Level 2 Level 3 Total At December 31, 2017 Securities available-for-sale Corporate debt securities $ — $ 16,921 $ — $ 16,921 Trading securities Rabbi trust investments 2,808 — — 2,808 Totals $ 2,808 $ 16,921 $ — $ 19,729 |
Schedule of Estimated Fair Values and Related Carrying or Notional Amounts of Financial Instruments | The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments are as follows (in thousands): March 31, 2018 Carrying Fair Level 1 Level 2 Level 3 (unaudited) Financial assets: Cash and cash equivalents $ 107,078 $ 107,078 $ 107,078 $ — $ — Interest-bearing time deposits with other banks 2,460 2,460 — 2,460 — Held-to-maturity 155,559 152,267 — 152,267 — Federal Home Loan Bank stock 31,988 31,988 — 31,988 — Loans, net 2,379,019 2,285,866 — — 2,285,866 Accrued interest receivable 6,086 6,086 6,086 — — Bank-owned life insurance 37,235 37,235 — 37,235 — Financial liabilities: Deposits 1,873,019 1,868,514 1,313,837 554,677 — Federal Home Loan Bank advances 662,250 656,008 — 656,008 — Securities sold under agreements to repurchase 3,738 3,738 — 3,738 — Accrued interest payable 1,546 1,546 1,546 — — Mortgagors’ escrow accounts 5,608 5,608 — 5,608 — December 31, 2017 Carrying Fair Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents Interest-bearing time $ 110,888 $ 110,888 $ 110,888 $ — $ — deposits with other banks 2,440 2,440 — 2,440 — Held-to-maturity 160,090 158,385 — 158,385 — Federal Home Loan Bank stock 32,382 32,382 — 32,382 — Loans, net 2,296,958 2,251,971 — — 2,251,971 Accrued interest receivable 6,344 6,344 6,344 — — Bank-owned life insurance 36,967 36,967 — 36,967 — Financial liabilities: Deposits 1,751,251 1,748,995 1,246,537 502,458 — Federal Home Loan Bank advances 723,150 719,430 — 719,430 — Securities sold under agreements to repurchase 3,268 3,268 — 3,268 — Accrued interest payable 1,594 1,594 1,594 — — Mortgagors’ escrow accounts 4,690 4,690 — 4,690 — |
Non-financial Assets | |
Non Financial Assets Remeasured and Reported at Lower of Amortized Cost or Fair Value | The following table (in thousands) presents the non-financial re-measured March 31, 2018 Level 1 Level 2 Level 3 (unaudited) Mortgage servicing rights $ — $ — $ 1,053 Totals $ — $ — $ 1,053 December 31, 2017 Level 1 Level 2 Level 3 Mortgage servicing rights $ — $ — $ 855 Totals $ — $ — $ 855 |
OTHER COMPREHENSIVE (LOSS) IN28
OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Schedules of Other Comprehensive (Loss) Income | The following table presents a reconciliation of the changes in the components of other comprehensive (loss) income for the dates indicated, including the amount of income tax (benefit) expense allocated to each component of other comprehensive (loss) income: Three months ended March 31, 2018 Three months ended March 31, 2017 Pre Tax Tax After Tax Pre Tax Tax After Tax Securities available-for-sale: Change in fair value of securities available-for-sale $ (79 ) $ 23 $ (56 ) $ 113 $ (46 ) $ 67 Cash flow hedges: Net change in fair value of cash flow hedges (179 ) 50 (129 ) — — — Total other comprehensive (loss) income $ (258 ) $ 73 $ (185 ) $ 113 $ (46 ) $ 67 |
Components of Accumulated Other Comprehensive Income, included in Stockholders' Equity | The components of accumulated other comprehensive (loss) income, included in stockholders’ equity, are as follows: (in thousands): March 31, 2018 December 31, 2017 (unaudited) Net unrealized holding loss on available-for-sale $ (95 ) $ (32 ) Unrecognized benefit pertaining to defined benefit plan, net of tax 147 121 Change in the fair value of cash flow hedges, net of tax (129 ) — Accumulated other comprehensive (loss) income $ (77 ) $ 89 |
DERIVATIVE FINANCIAL INSTRUME29
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value of Derivative Financial Instruments | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheet as of the periods presented (in thousands): Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 Number of Notional Balance Fair Value Balance Fair Value Balance Fair Value Balance Fair Value Derivatives designated as hedging instruments: Interest Rate Cap 1 $ 100,000 Other Assets $ 1,346 Other Assets $ — Other $ — Other $ — Total derivatives designated as hedging instruments $ 1,346 $ — $ — $ — |
Recent Accounting Standards U30
Recent Accounting Standards Updates - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification of income tax effects related to items stranded within AOCI from the Tax Cuts and Jobs Act | $ 19 | |
Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification of income tax effects related to items stranded within AOCI from the Tax Cuts and Jobs Act | (19) | |
Accounting Standards Update 2017-07 | Salaries and Employee Benefits | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification adjustment from salaries and benefits related to net benefit cost | 14 | $ 13 |
Accounting Standards Update 2017-07 | Other Non Interest Expenses | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification adjustment from salaries and benefits related to net benefit cost | (14) | $ (13) |
Accounting Standards Update 2018-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification of income tax effects related to items stranded within AOCI from the Tax Cuts and Jobs Act | (19) | |
Accounting Standards Update 2018-02 | Accumulated Other Comprehensive Income (Loss) | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification of income tax effects related to items stranded within AOCI from the Tax Cuts and Jobs Act | 19 | |
Accounting Standards Update 2018-02 | Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification of income tax effects related to items stranded within AOCI from the Tax Cuts and Jobs Act | $ 19 |
Amortized Cost Basis of Availab
Amortized Cost Basis of Available for Sale and Held-to-Maturity Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 12,158 | $ 16,975 |
Available-for-sale Securities, Gross Unrealized Gains | 4 | 24 |
Available-for-sale Securities, Gross Unrealized Losses | (137) | (78) |
Available-for-sale Securities, Fair Value | 12,025 | 16,921 |
Held-to-maturity securities, Amortized Cost Basis | 155,559 | 160,090 |
Held-to-maturity securities, Gross Unrealized Gains | 105 | 384 |
Held-to-maturity securities, Gross Unrealized Losses | (3,397) | (2,089) |
Held-to-maturity securities, Fair Value | 152,267 | 158,385 |
Corporate debt securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 12,158 | 16,975 |
Available-for-sale Securities, Gross Unrealized Gains | 4 | 24 |
Available-for-sale Securities, Gross Unrealized Losses | (137) | (78) |
Available-for-sale Securities, Fair Value | 12,025 | 16,921 |
Held-to-maturity securities, Amortized Cost Basis | 12,721 | 17,707 |
Held-to-maturity securities, Gross Unrealized Gains | 39 | 239 |
Held-to-maturity securities, Gross Unrealized Losses | (43) | |
Held-to-maturity securities, Fair Value | 12,717 | 17,946 |
U.S. government sponsored mortgage-backed securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity securities, Amortized Cost Basis | 142,838 | 142,383 |
Held-to-maturity securities, Gross Unrealized Gains | 66 | 145 |
Held-to-maturity securities, Gross Unrealized Losses | (3,354) | (2,089) |
Held-to-maturity securities, Fair Value | $ 139,550 | $ 140,439 |
Amortized Cost Basis and Estima
Amortized Cost Basis and Estimated Fair Value of Debt Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Due within one year, Available-for-sale Securities, Amortized Cost Basis | $ 7,951 | |
Due after one year through five years, Available-for-sale Securities, Amortized Cost Basis | 4,207 | |
Due after five years through ten years, Available-for-sale Securities, Amortized Cost Basis | 0 | |
Due after ten years, Available-for-sale Securities, Amortized Cost Basis | 0 | |
Available-for-sale Securities, Amortized Cost Basis | 12,158 | $ 16,975 |
Due within one year, Available-for-sale Securities, Fair Value | 7,954 | |
Due after one year through five years, Available-for-sale Securities, Fair Value | 4,071 | |
Due after five years through ten years, Available-for-sale Securities, Fair Value | 0 | |
Due after ten years, Available-for-sale Securities, Fair Value | 0 | |
Available-for-sale Securities, Fair Value | 12,025 | 16,921 |
Due within one year, Held-to-Maturity, Amortized Cost Basis | 2,001 | |
Due after one year through five years, Held-to-Maturity, Amortized Cost Basis | 12,571 | |
Due after five years through ten years, Held-to-Maturity, Amortized Cost Basis | 33,087 | |
Due after ten years, Held-to-Maturity, Amortized Cost Basis | 107,900 | |
Held-to-maturity securities, Amortized Cost Basis | 155,559 | 160,090 |
Due within one year, Held-to-Maturity, Fair Value | 2,002 | |
Due after one year through five years, Held-to-Maturity, Fair Value | 12,504 | |
Due after five years through ten years, Held-to-Maturity, Fair Value | 32,119 | |
Due after ten years, Held-to-Maturity, Fair Value | 105,642 | |
Held-to-Maturity, Fair Value | $ 152,267 | $ 158,385 |
Investments in Securities - Add
Investments in Securities - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2018USD ($)Entity | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)Entity | |
Investment Securities [Line Items] | |||
Proceeds from sales of available-for-sale securities | $ 0 | $ 0 | |
Trading securities, unrealized holding gain (loss) | $ (24,000) | 45,000 | |
Number of securities that had unrealized losses | Entity | 85 | 82 | |
Securities that had unrealized losses, aggregate depreciation percentage | 2.37% | 1.63% | |
Rabbi Trust | |||
Investment Securities [Line Items] | |||
Trading securities, fair value | $ 2,795,000 | $ 2,808,000 | |
Trading securities, unrealized holding gain (loss) | $ (24,000) | $ 45,000 |
Securities with Gross Unrealize
Securities with Gross Unrealized Losses Aggregated by Investment Category and Length of Time (Detail) $ in Thousands | Mar. 31, 2018USD ($)Entity | Dec. 31, 2017USD ($)Entity |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Number of Holdings | Entity | 85 | 82 |
Less than 12 Months, Fair Value | $ 68,236 | $ 66,056 |
Less than 12 Months, Unrealized Losses | (1,053) | (718) |
Over 12 Months, Fair Value | 77,583 | 66,942 |
Over 12 Months, Unrealized Losses | $ (2,481) | $ (1,449) |
Corporate debt securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Number of Holdings | Entity | 1 | 1 |
Available-for-sale, Less than 12 Months, Fair Value | $ 0 | $ 0 |
Available-for-sale, Less than 12 Months, Unrealized Losses | 0 | 0 |
Available-for-sale, Over 12 Months, Fair Value | 4,071 | 4,144 |
Available-for-sale, Over 12 Months, Unrealized Losses | $ (137) | $ (78) |
Number of Holdings | Entity | 2 | |
Held-to-maturity, Less than 12 Months, Fair Value | $ 7,782 | |
Held-to-maturity, Less than 12 Months, Unrealized Losses | $ (43) | |
U.S. government sponsored mortgage-backed securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Number of Holdings | Entity | 82 | 81 |
Held-to-maturity, Less than 12 Months, Fair Value | $ 60,454 | $ 66,056 |
Held-to-maturity, Less than 12 Months, Unrealized Losses | (1,010) | (718) |
Held-to-maturity, Over 12 Months, Fair Value | 73,512 | 62,798 |
Held-to-maturity, Over 12 Months, Unrealized Losses | $ (2,344) | $ (1,371) |
Loans, Allowance for Loan Los35
Loans, Allowance for Loan Losses and Credit Quality - Additional Information (Detail) | 3 Months Ended | |||
Mar. 31, 2018USD ($)Contract | Mar. 31, 2017USD ($)Contract | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Due days of accrual of interest on all loans | 90 days | |||
Originate loans with a loan-to-value | 80.00% | |||
Loans, allowance for loan losses | $ 16,584,000 | $ 14,382,000 | $ 16,312,000 | $ 13,585,000 |
Unallocated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, allowance for loan losses | $ 637,000 | $ 545,000 | 621,000 | $ 517,000 |
Financing Receivable Troubled Debt Restructurings | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of financing receivables modified by troubled debt restructurings | Contract | 0 | 0 | ||
Residential one-to-four family | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Consumer mortgage loans in the process of foreclosure amount | $ 0 | $ 0 |
Summary of Loans (Detail)
Summary of Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Loans Balance | $ 2,383,228 | $ 2,301,183 | |||
Net deferred loan costs | 3,444 | 3,426 | |||
Net unamortized mortgage premiums | 8,931 | 8,661 | |||
Allowance for loan losses | (16,584) | (16,312) | $ (14,382) | $ (13,585) | |
Total loans, net | $ 2,379,019 | $ 2,296,958 | |||
Commercial and consumer gross percent | 3.82% | 4.10% | |||
Total loans, Percent | 100.00% | 100.00% | |||
Mortgage Loan Portfolio Segment | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Loans Balance | $ 2,292,103 | $ 2,206,799 | |||
Mortgage loans on real estate percent | 96.18% | 95.90% | |||
Mortgage Loan Portfolio Segment | Real Estate Loan | Residential one-to-four family | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Loans Balance | $ 1,401,754 | $ 1,333,058 | |||
Mortgage loans on real estate percent | 58.82% | 57.93% | |||
Allowance for loan losses | $ (6,584) | $ (6,400) | (5,223) | (4,828) | |
Mortgage Loan Portfolio Segment | Real Estate Loan | Commercial real estate loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Loans Balance | [1] | $ 679,450 | $ 642,072 | ||
Mortgage loans on real estate percent | [1] | 28.51% | 27.90% | ||
Allowance for loan losses | $ (6,968) | $ (6,583) | (5,250) | (4,885) | |
Mortgage Loan Portfolio Segment | Home equity lines of credit | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Loans Balance | $ 179,129 | $ 178,624 | |||
Mortgage loans on real estate percent | 7.52% | 7.76% | |||
Allowance for loan losses | $ (950) | $ (947) | (1,011) | (1,037) | |
Mortgage Loan Portfolio Segment | Construction loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Loans Balance | $ 31,770 | $ 53,045 | |||
Mortgage loans on real estate percent | 1.33% | 2.31% | |||
Allowance for loan losses | $ (458) | $ (764) | (1,297) | (1,219) | |
Commercial Portfolio Segment | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Loans Balance | 66,053 | 63,722 | |||
Allowance for loan losses | $ (789) | $ (758) | (713) | (728) | |
Commercial loans, percentage | 2.77% | 2.77% | |||
Consumer Portfolio Segment | Indirect auto loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Loans Balance | $ 24,664 | $ 30,227 | |||
consumer loans, percent | 1.03% | 1.31% | |||
Allowance for loan losses | $ (193) | $ (230) | (335) | (362) | |
Consumer Portfolio Segment | Other Consumer Loan | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Loans Balance | $ 408 | $ 435 | |||
consumer loans, percent | 0.02% | 0.02% | |||
Allowance for loan losses | $ (5) | $ (9) | $ (8) | $ (9) | |
Commercial and Consumer Loan | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total Loans Balance | $ 91,125 | $ 94,384 | |||
[1] | Includes multi-family real estate loans. |
Allowance for Loan Losses by Po
Allowance for Loan Losses by Portfolio Class (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | $ 16,312 | $ 13,585 |
Provision (benefit) | 274 | 829 |
Charge-offs | (12) | (36) |
Recoveries | 10 | 4 |
Ending Balance | 16,584 | 14,382 |
Mortgage Loan Portfolio Segment | Real Estate Loan | Residential one-to-four family | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 6,400 | 4,828 |
Provision (benefit) | 184 | 395 |
Ending Balance | 6,584 | 5,223 |
Mortgage Loan Portfolio Segment | Real Estate Loan | Commercial real estate loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 6,583 | 4,885 |
Provision (benefit) | 385 | 365 |
Ending Balance | 6,968 | 5,250 |
Mortgage Loan Portfolio Segment | Home equity lines of credit | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 947 | 1,037 |
Provision (benefit) | 3 | (26) |
Ending Balance | 950 | 1,011 |
Mortgage Loan Portfolio Segment | Construction loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 764 | 1,219 |
Provision (benefit) | (306) | 78 |
Ending Balance | 458 | 1,297 |
Commercial Portfolio Segment | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 758 | 728 |
Provision (benefit) | 35 | (15) |
Charge-offs | (4) | |
Ending Balance | 789 | 713 |
Consumer Portfolio Segment | Indirect auto loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 230 | 362 |
Provision (benefit) | (41) | |
Charge-offs | (5) | (31) |
Recoveries | 9 | 4 |
Ending Balance | 193 | 335 |
Consumer Portfolio Segment | Other Consumer Loan | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 9 | 9 |
Provision (benefit) | (2) | 4 |
Charge-offs | (3) | (5) |
Recoveries | 1 | |
Ending Balance | 5 | 8 |
Unallocated | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 621 | 517 |
Provision (benefit) | 16 | 28 |
Ending Balance | $ 637 | $ 545 |
Individually Impaired Loans by
Individually Impaired Loans by Class of Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Individually evaluated for impairment, Loan Balance | $ 5,000 | $ 5,569 | |||
Individually evaluated for impairment, Loan allowance | 6 | 147 | |||
Collectively evaluated for impairment, Loan Balance | 2,378,228 | 2,295,614 | |||
Collectively evaluated for impairment, Loan allowance | 16,578 | 16,165 | |||
Total Loan Balance | 2,383,228 | 2,301,183 | |||
Total Loan, allowance | 16,584 | 16,312 | $ 14,382 | $ 13,585 | |
Mortgage Loan Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total Loan Balance | 2,292,103 | 2,206,799 | |||
Mortgage Loan Portfolio Segment | Real Estate Loan | Residential one-to-four family | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Individually evaluated for impairment, Loan Balance | 2,134 | 2,688 | |||
Individually evaluated for impairment, Loan allowance | 6 | 147 | |||
Collectively evaluated for impairment, Loan Balance | 1,399,620 | 1,330,370 | |||
Collectively evaluated for impairment, Loan allowance | 6,578 | 6,253 | |||
Total Loan Balance | 1,401,754 | 1,333,058 | |||
Total Loan, allowance | 6,584 | 6,400 | 5,223 | 4,828 | |
Mortgage Loan Portfolio Segment | Real Estate Loan | Commercial real estate loans | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Individually evaluated for impairment, Loan Balance | 2,866 | 2,877 | |||
Collectively evaluated for impairment, Loan Balance | 676,584 | 639,195 | |||
Collectively evaluated for impairment, Loan allowance | 6,968 | 6,583 | |||
Total Loan Balance | [1] | 679,450 | 642,072 | ||
Total Loan, allowance | 6,968 | 6,583 | 5,250 | 4,885 | |
Mortgage Loan Portfolio Segment | Home equity lines of credit | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Collectively evaluated for impairment, Loan Balance | 179,129 | 178,624 | |||
Collectively evaluated for impairment, Loan allowance | 950 | 947 | |||
Total Loan Balance | 179,129 | 178,624 | |||
Total Loan, allowance | 950 | 947 | 1,011 | 1,037 | |
Mortgage Loan Portfolio Segment | Construction loans | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Collectively evaluated for impairment, Loan Balance | 31,770 | 53,045 | |||
Collectively evaluated for impairment, Loan allowance | 458 | 764 | |||
Total Loan Balance | 31,770 | 53,045 | |||
Total Loan, allowance | 458 | 764 | 1,297 | 1,219 | |
Commercial Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Collectively evaluated for impairment, Loan Balance | 66,053 | 63,722 | |||
Collectively evaluated for impairment, Loan allowance | 789 | 758 | |||
Total Loan Balance | 66,053 | 63,722 | |||
Total Loan, allowance | 789 | 758 | 713 | 728 | |
Consumer Portfolio Segment | Indirect auto loans | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Individually evaluated for impairment, Loan Balance | 4 | ||||
Collectively evaluated for impairment, Loan Balance | 24,664 | 30,223 | |||
Collectively evaluated for impairment, Loan allowance | 193 | 230 | |||
Total Loan Balance | 24,664 | 30,227 | |||
Total Loan, allowance | 193 | 230 | 335 | 362 | |
Consumer Portfolio Segment | Other Consumer Loan | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Collectively evaluated for impairment, Loan Balance | 408 | 435 | |||
Collectively evaluated for impairment, Loan allowance | 5 | 9 | |||
Total Loan Balance | 408 | 435 | |||
Total Loan, allowance | 5 | 9 | 8 | 9 | |
Unallocated | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Collectively evaluated for impairment, Loan allowance | 637 | 621 | |||
Total Loan, allowance | $ 637 | $ 621 | $ 545 | $ 517 | |
[1] | Includes multi-family real estate loans. |
Impaired Loans (Detail)
Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired loans with a related allowance for credit losses, Recorded Investment | $ 196 | $ 725 | |
Impaired loans with a related allowance for credit losses at, Unpaid Principal Balance | 196 | 725 | |
Impaired loans with a related allowance for credit losses at, Specific Allowance | 6 | 147 | |
Impaired loans with no related allowance for credit losses, Recorded Investment | 4,804 | 4,844 | |
Impaired loans with no related allowance for credit losses, Unpaid Principal Balance | 4,906 | 4,933 | |
Impaired loans with a related allowance for credit losses, Average recorded Investment | 372 | $ 903 | |
Impaired loans with a related allowance for credit losses, Interest income recognized | 4 | 8 | |
Impaired loans with no related allowance for credit losses, Average recorded Investment | 4,827 | 5,813 | |
Impaired loans with no related allowance for credit losses, Interest income recognized | 39 | 51 | |
Mortgage Loan Portfolio Segment | Real Estate Loan | Residential one-to-four family | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired loans with a related allowance for credit losses, Recorded Investment | 196 | 725 | |
Impaired loans with a related allowance for credit losses at, Unpaid Principal Balance | 196 | 725 | |
Impaired loans with a related allowance for credit losses at, Specific Allowance | 6 | 147 | |
Impaired loans with no related allowance for credit losses, Recorded Investment | 1,938 | 1,963 | |
Impaired loans with no related allowance for credit losses, Unpaid Principal Balance | 2,040 | 2,052 | |
Impaired loans with a related allowance for credit losses, Average recorded Investment | 372 | 903 | |
Impaired loans with a related allowance for credit losses, Interest income recognized | 4 | 8 | |
Impaired loans with no related allowance for credit losses, Average recorded Investment | 1,948 | 2,139 | |
Impaired loans with no related allowance for credit losses, Interest income recognized | 8 | 4 | |
Mortgage Loan Portfolio Segment | Real Estate Loan | Commercial real estate loans | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired loans with no related allowance for credit losses, Recorded Investment | 2,866 | 2,877 | |
Impaired loans with no related allowance for credit losses, Unpaid Principal Balance | 2,866 | 2,877 | |
Impaired loans with no related allowance for credit losses, Average recorded Investment | 2,872 | 3,305 | |
Impaired loans with no related allowance for credit losses, Interest income recognized | 31 | 36 | |
Mortgage Loan Portfolio Segment | Home equity lines of credit | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired loans with no related allowance for credit losses, Average recorded Investment | 360 | ||
Impaired loans with no related allowance for credit losses, Interest income recognized | 11 | ||
Consumer Portfolio Segment | Indirect auto loans | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired loans with no related allowance for credit losses, Recorded Investment | 4 | ||
Impaired loans with no related allowance for credit losses, Unpaid Principal Balance | $ 4 | ||
Impaired loans with no related allowance for credit losses, Average recorded Investment | $ 7 | $ 9 |
Past Due and Non-Accrual Loans
Past Due and Non-Accrual Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Days Past Due | $ 1,590 | $ 2,068 |
90 days or more and accruing | 0 | 0 |
Loans on Non-accrual | 1,351 | 1,376 |
Mortgage Loan Portfolio Segment | Real Estate Loan | Residential one-to-four family | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Days Past Due | 917 | 971 |
90 days or more and accruing | 0 | 0 |
Loans on Non-accrual | 1,351 | 1,372 |
Mortgage Loan Portfolio Segment | Home equity lines of credit | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Days Past Due | 407 | 716 |
90 days or more and accruing | 0 | 0 |
Consumer Portfolio Segment | Indirect auto loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Days Past Due | 266 | 381 |
90 days or more and accruing | 0 | 0 |
Loans on Non-accrual | 4 | |
30-59 Days | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Days Past Due | 1,238 | 1,774 |
30-59 Days | Mortgage Loan Portfolio Segment | Real Estate Loan | Residential one-to-four family | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Days Past Due | 657 | 711 |
30-59 Days | Mortgage Loan Portfolio Segment | Home equity lines of credit | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Days Past Due | 407 | 716 |
30-59 Days | Consumer Portfolio Segment | Indirect auto loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Days Past Due | 174 | 347 |
60-89 Days | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Days Past Due | 92 | 30 |
60-89 Days | Consumer Portfolio Segment | Indirect auto loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Days Past Due | 92 | 30 |
Loans 90 Days Or More Past Due | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Days Past Due | 260 | 264 |
Loans 90 Days Or More Past Due | Mortgage Loan Portfolio Segment | Real Estate Loan | Residential one-to-four family | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Days Past Due | $ 260 | 260 |
Loans 90 Days Or More Past Due | Consumer Portfolio Segment | Indirect auto loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Days Past Due | $ 4 |
Loans Classified by Risk Rating
Loans Classified by Risk Rating (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | $ 2,383,228 | $ 2,301,183 | |
Mortgage Loan Portfolio Segment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | 2,292,103 | 2,206,799 | |
Mortgage Loan Portfolio Segment | Real Estate Loan | Residential one-to-four family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | 1,401,754 | 1,333,058 | |
Mortgage Loan Portfolio Segment | Real Estate Loan | Commercial real estate loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | [1] | 679,450 | 642,072 |
Mortgage Loan Portfolio Segment | Home equity lines of credit | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | 179,129 | 178,624 | |
Mortgage Loan Portfolio Segment | Construction loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | 31,770 | 53,045 | |
Commercial Portfolio Segment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | 66,053 | 63,722 | |
Consumer Portfolio Segment | Indirect auto loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | 24,664 | 30,227 | |
Consumer Portfolio Segment | Other Consumer Loan | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | 408 | 435 | |
Loans rated 1-3.5 | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | 773,448 | 754,981 | |
Loans rated 1-3.5 | Mortgage Loan Portfolio Segment | Real Estate Loan | Commercial real estate loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | 675,643 | 638,254 | |
Loans rated 1-3.5 | Mortgage Loan Portfolio Segment | Construction loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | 31,770 | 53,045 | |
Loans rated 1-3.5 | Commercial Portfolio Segment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | 66,035 | 63,682 | |
Loans rated 4 | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | 359 | 384 | |
Loans rated 4 | Mortgage Loan Portfolio Segment | Real Estate Loan | Residential one-to-four family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | 341 | 344 | |
Loans rated 4 | Commercial Portfolio Segment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | 18 | 40 | |
Loans rated 5 | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | 5,843 | 6,650 | |
Loans rated 5 | Mortgage Loan Portfolio Segment | Real Estate Loan | Residential one-to-four family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | 2,036 | 2,060 | |
Loans rated 5 | Mortgage Loan Portfolio Segment | Real Estate Loan | Commercial real estate loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | 3,807 | 3,818 | |
Loans rated 5 | Mortgage Loan Portfolio Segment | Home equity lines of credit | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | 772 | ||
Loans not rated | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | [2] | 1,603,578 | 1,539,168 |
Loans not rated | Mortgage Loan Portfolio Segment | Real Estate Loan | Residential one-to-four family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | [2] | 1,399,377 | 1,330,654 |
Loans not rated | Mortgage Loan Portfolio Segment | Home equity lines of credit | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | [2] | 179,129 | 177,852 |
Loans not rated | Consumer Portfolio Segment | Indirect auto loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | [2] | 24,664 | 30,227 |
Loans not rated | Consumer Portfolio Segment | Other Consumer Loan | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Balance | [2] | $ 408 | $ 435 |
[1] | Includes multi-family real estate loans. | ||
[2] | Residential real estate and home equity lines of credit are not formally risk rated by the Company unless the loans become delinquent, impaired or are restructured as a TDR. |
Troubled Debt Restructuring Acc
Troubled Debt Restructuring Accrual Status (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total TDRs | $ 4,284 | $ 4,839 |
Amount of specific allocation included in the allowance for loan losses associated with TDRs | 6 | 147 |
Additional commitments to lend to a borrower who has been a party to a TDR | 0 | 0 |
Accrual Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total TDRs | 3,649 | 4,194 |
Non-accrual Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total TDRs | $ 635 | $ 645 |
Transfers and Servicing - Addit
Transfers and Servicing - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Residential Mortgage | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
Loans previously sold and serviced | $ 132.1 | $ 114.5 |
Indirect auto loans | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
Loans previously sold and serviced | $ 7.7 | $ 10.5 |
Changes in Mortgage Servicing R
Changes in Mortgage Servicing Rights (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Servicing Asset at Amortized Cost [Line Items] | ||
Balance at beginning of period | $ 855 | $ 403 |
Capitalization | 208 | 5 |
Amortization | (49) | (24) |
Valuation allowance adjustment | 39 | 30 |
Balance at end of period | $ 1,053 | $ 414 |
Securities Sold Under Agreeme45
Securities Sold Under Agreements to Repurchase and Other Borrowed Funds - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Securities Sold under Agreements to Repurchase [Abstract] | ||
Balance of securities sold under agreements to repurchase | $ 3,738 | $ 3,268 |
Employee and Director Benefit46
Employee and Director Benefit Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2011 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Compensation expense recognized | $ 562 | $ 512 | ||
Percentage of eligible compensation of employee | 75.00% | |||
Contributions by the Company | $ 253 | 242 | ||
Percentage of defined compensation vested | 100.00% | |||
ESOP, purchase shares | 458,643 | |||
Common stock price per share | $ 10 | |||
Loan obtained by the ESOP, payable annually over | 30 years | |||
Loan obtained by ESOP rate per annum equal to prime rate | 4.50% | |||
ESOP expense | $ 114 | $ 106 | ||
Rabbi Trust | Deferred Compensation Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Recorded liability | 2,800 | $ 2,800 | ||
Executive Officers | Other Supplemental Retirement Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Estimated liability | $ 2,700 | 2,600 | ||
Benefit upon termination of employment at or after age | 55 years | |||
Reduced benefits available prior to attaining age | 55 years | |||
Executive Officers | Belmont Savings Bank Supplemental Executive Retirement Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Estimated liability | $ 1,900 | 1,800 | ||
Executive Officers | Maximum | Other Supplemental Retirement Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Number of years of service to complete | 10 years | |||
Executive Officers | Maximum | Belmont Savings Bank Supplemental Executive Retirement Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fully vested participants, years of service to complete | 10 years | |||
Executive Officers | Minimum | Other Supplemental Retirement Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Number of years of service to complete | 10 years | |||
Executive Officers | Minimum | Belmont Savings Bank Supplemental Executive Retirement Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fully vested participants, years of service to complete | 5 years | |||
Directors | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Estimated liability | $ 697 | $ 697 |
Securities and Loans Pledged to
Securities and Loans Pledged to Secure Securities Sold Under Agreements to Repurchase, FHLB Advances and Credit Facilities Available (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities held-to- maturity (at cost) | $ 61,343 | $ 69,028 |
Loans receivable | 1,505,974 | 1,406,483 |
Total pledged assets | 1,567,317 | 1,475,511 |
Repurchase agreements | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities held-to- maturity (at cost) | 5,343 | 5,582 |
Total pledged assets | 5,343 | 5,582 |
FHLB borrowings | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities held-to- maturity (at cost) | 45,210 | 47,666 |
Loans receivable | 1,505,974 | 1,406,483 |
Total pledged assets | 1,551,184 | 1,454,149 |
Federal Reserve Bank LOC | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities held-to- maturity (at cost) | 10,790 | 15,780 |
Total pledged assets | $ 10,790 | $ 15,780 |
Earning Per Share (Detail)
Earning Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Computation of Earnings Per Share [Line Items] | ||
Net income | $ 6,010 | $ 3,666 |
Undistributed earnings attributable to participating securities | (1) | (30) |
Net income allocated to common stockholders | $ 6,009 | $ 3,636 |
Weighted average shares outstanding, basic | 8,886,964 | 8,675,915 |
Effect of dilutive shares | 449,206 | 408,066 |
Weighted average shares outstanding, assuming dilution | 9,336,170 | 9,083,981 |
Basic EPS | $ 0.68 | $ 0.42 |
Effect of dilutive shares | (0.04) | (0.02) |
Diluted EPS | $ 0.64 | $ 0.40 |
Earnings Per Share - Additional
Earnings Per Share - Additional information (Detail) - shares | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Jun. 22, 2013 | |
Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 0 | 0 | |
Shares repurchase during period under repurchase program | 0 | 0 | |
Maximum | |||
Computation of Earnings Per Share [Line Items] | |||
Share repurchase program, shares authorized to be repurchased | 500,000 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) - 2017 Equity Incentive Plan - Restricted Stock | Mar. 15, 2017$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock awards granted | shares | 487,200 |
Restricted stock grant date price | $ / shares | $ 27.10 |
Vesting period of awards granted | 10 years |
Estimated forfeiture rate of awards granted | 2.64% |
Pre-Tax Expense Associated with
Pre-Tax Expense Associated with Stock Option and Restricted Stock Awards and Related Tax Benefits Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options | $ 22 | $ 189 |
Restricted stock awards | 330 | 268 |
Total stock based compensation expense | 352 | 457 |
Related tax benefits recognized in earnings | $ 93 | $ 143 |
Excess Tax Benefits Recognized
Excess Tax Benefits Recognized from Stock Based Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Adoption of ASU 2016-09 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
After tax benefits recognized in net income | $ 109 | $ 718 |
Compensation Cost Related to No
Compensation Cost Related to Non-Vested Awards not Yet Recognized and Weighted Average Recognition Period (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total | $ 10,434 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options, amount | $ 116 |
Restricted stock, weighted average period | 2 years 3 months |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock, amount | $ 10,318 |
Restricted stock, weighted average period | 8 years 11 months 8 days |
Summary of Financial Assets Mea
Summary of Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | $ 12,025 | $ 16,921 |
Interest rate cap | 1,346 | |
Rabbi Trust | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 2,795 | 2,808 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 16,166 | 19,729 |
Fair Value, Measurements, Recurring | Interest Rate Cap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | 1,346 | |
Fair Value, Measurements, Recurring | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 12,025 | 16,921 |
Fair Value, Measurements, Recurring | Rabbi Trust | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 2,795 | 2,808 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 2,795 | 2,808 |
Fair Value, Measurements, Recurring | Level 1 | Rabbi Trust | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 2,795 | 2,808 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Totals | 13,371 | 16,921 |
Fair Value, Measurements, Recurring | Level 2 | Interest Rate Cap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | 1,346 | |
Fair Value, Measurements, Recurring | Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | $ 12,025 | $ 16,921 |
Assets Remeasured and Reported
Assets Remeasured and Reported at Lower Amortized of Cost or Fair Value (Detail) - Level 3 - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | $ 1,053 | $ 855 |
Mortgage Servicing Rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | $ 1,053 | $ 855 |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash and cash equivalents | $ 107,078 | $ 110,888 | $ 60,451 | $ 58,876 |
Interest-bearing time deposits with other banks | 2,460 | 2,440 | ||
Held-to-maturity securities | 155,559 | 160,090 | ||
Federal Home Loan Bank stock | 31,988 | 32,382 | ||
Loans, net | 2,379,019 | 2,296,958 | ||
Accrued interest receivable | 6,086 | 6,344 | ||
Bank-owned life insurance | 37,235 | 36,967 | ||
Liabilities | ||||
Deposits | 1,873,019 | 1,751,251 | ||
Federal Home Loan Bank advances | 662,250 | 723,150 | ||
Securities sold under agreements to repurchase | 3,738 | 3,268 | ||
Accrued interest payable | 1,546 | 1,594 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||||
Cash and cash equivalents | 107,078 | 110,888 | ||
Interest-bearing time deposits with other banks | 2,460 | 2,440 | ||
Held-to-maturity securities | 152,267 | 158,385 | ||
Federal Home Loan Bank stock | 31,988 | 32,382 | ||
Loans, net | 2,285,866 | 2,251,971 | ||
Accrued interest receivable | 6,086 | 6,344 | ||
Bank-owned life insurance | 37,235 | 36,967 | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||||
Deposits | 1,868,514 | 1,748,995 | ||
Federal Home Loan Bank advances | 656,008 | 719,430 | ||
Securities sold under agreements to repurchase | 3,738 | 3,268 | ||
Accrued interest payable | 1,546 | 1,594 | ||
Mortgagors' escrow accounts | 5,608 | 4,690 | ||
Carrying Amount | ||||
ASSETS | ||||
Cash and cash equivalents | 107,078 | 110,888 | ||
Interest-bearing time deposits with other banks | 2,460 | 2,440 | ||
Held-to-maturity securities | 155,559 | 160,090 | ||
Federal Home Loan Bank stock | 31,988 | 32,382 | ||
Loans, net | 2,379,019 | 2,296,958 | ||
Accrued interest receivable | 6,086 | 6,344 | ||
Bank-owned life insurance | 37,235 | 36,967 | ||
Liabilities | ||||
Deposits | 1,873,019 | 1,751,251 | ||
Federal Home Loan Bank advances | 662,250 | 723,150 | ||
Securities sold under agreements to repurchase | 3,738 | 3,268 | ||
Accrued interest payable | 1,546 | 1,594 | ||
Mortgagors' escrow accounts | 5,608 | 4,690 | ||
Level 1 | ||||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||||
Cash and cash equivalents | 107,078 | 110,888 | ||
Accrued interest receivable | 6,086 | 6,344 | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||||
Deposits | 1,313,837 | 1,246,537 | ||
Accrued interest payable | 1,546 | 1,594 | ||
Level 2 | ||||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||||
Interest-bearing time deposits with other banks | 2,460 | 2,440 | ||
Held-to-maturity securities | 152,267 | 158,385 | ||
Federal Home Loan Bank stock | 31,988 | 32,382 | ||
Bank-owned life insurance | 37,235 | 36,967 | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||||
Deposits | 554,677 | 502,458 | ||
Federal Home Loan Bank advances | 656,008 | 719,430 | ||
Securities sold under agreements to repurchase | 3,738 | 3,268 | ||
Mortgagors' escrow accounts | 5,608 | 4,690 | ||
Level 3 | ||||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||||
Loans, net | $ 2,285,866 | $ 2,251,971 |
Other Comprehensive (Loss) In57
Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Schedule of Other Comprehensive Income (Loss) [Line Items] | ||
Change in fair value of securities available-for-sale, After Tax Amount | $ (56) | $ 67 |
Net change in fair value of cash flow hedges, After Tax Amount | (129) | |
Total other comprehensive (loss) income | (185) | 67 |
After Tax | ||
Schedule of Other Comprehensive Income (Loss) [Line Items] | ||
Change in fair value of securities available-for-sale, After Tax Amount | (56) | 67 |
Net change in fair value of cash flow hedges, After Tax Amount | (129) | |
Total other comprehensive (loss) income | (185) | 67 |
Tax Benefit (Expense) | ||
Schedule of Other Comprehensive Income (Loss) [Line Items] | ||
Change in fair value of securities available-for-sale, Tax (Expense) Benefit | 23 | (46) |
Net change in fair value of cash flow hedges, Tax (Expense) Benefit | 50 | |
Total other comprehensive (loss) income, Tax (Expense) Benefit | 73 | (46) |
Pre Tax | ||
Schedule of Other Comprehensive Income (Loss) [Line Items] | ||
Change in fair value of securities available-for-sale, Pre-Tax Amount | (79) | 113 |
Net change in fair value of cash flow hedges, Pre-Tax Amount | (179) | |
Total other comprehensive (loss) income, Pre-Tax Amount | $ (258) | $ 113 |
Other Comprehensive (Loss) In58
Other Comprehensive (Loss) Income - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income [Line Items] | ||
Tax cut and job act 2017 AOCI re-measurement of deferred tax assets and liabilities | $ 19,000 | |
Accounting Standards Update 2018-02 | ||
Accumulated Other Comprehensive Income [Line Items] | ||
Reclassification of income tax effects related to items stranded within accumulated other comprehensive income from the Tax Cuts and Jobs Act | $ (19,000) |
Components of Accumulated Other
Components of Accumulated Other Comprehensive (Loss) Income, included in Stockholders' Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income [Line Items] | ||
Net unrealized holding loss on available-for-sale securities, net of tax | $ (95) | $ (32) |
Unrecognized benefit pertaining to defined benefit plan, net of tax | 147 | 121 |
Change in the fair value of cash flow hedges, net of tax | (129) | |
Accumulated other comprehensive (loss)income | $ (77) | $ 89 |
Derivative Financial Instrume60
Derivative Financial Instruments And Hedging Activities - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Collateral | $ 0 |
Cash collateral | 1,400,000 |
Designated as Hedging Instrument | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Rolling FHBL advances | 100,000,000 |
Premium paid | 1,500,000 |
Credit Risk | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Credit derivative exposure net of collateral | 0 |
Interest Rate Cap | Designated as Hedging Instrument | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Debt instrument, face amount | 100,000,000 |
Premium paid | $ 1,500,000 |
Agreement, maturity date | Mar. 21, 2023 |
Estimated net amount of existing gains or losses on cash flow hedges at the reporting date expected to be reclassified to earnings within the next 12 months | $ 22,000 |
Interest rate credit exposure | $ 1,300,000 |
Interest Rate Cap | Designated as Hedging Instrument | Maximum | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Intrest cap at maximum rate | 3.00% |
Interest Rate Cap | Designated as Hedging Instrument | London Interbank Offered Rate (LIBOR) | Minimum | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Libor cap strike price | 3.00% |
Derivative Financial Instrume61
Derivative Financial Instruments And Hedging Activities - Fair Value of Derivative Financial Instruments (Detail) $ in Thousands | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Asset Derivatives | $ 1,346 | |
Liability Derivatives | $ 0 | $ 0 |
Interest Rate Cap | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Number of Transactions | 1 | |
Notional Amount | $ 100,000 | |
Asset Derivatives | 1,346 | |
Liability Derivatives | $ 0 | $ 0 |