Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 04, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | FS Bancorp, Inc. | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Entity Central Index Key | 1,530,249 | |
Current Fiscal Year End Date | --09-30 | |
Entity Common Stock, Shares Outstanding | 3,057,753 | |
Entity Filer Category | Smaller Reporting Company | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 3,445 | $ 1,708 |
Interest-bearing deposits with other financial institutions | 13,068 | 22,747 |
Cash and Cash Equivalents, at Carrying Value | 16,513 | 24,455 |
Certificates of deposit at other financial institutions | 14,009 | 12,421 |
Securities available-for-sale, at fair value | 80,762 | 55,217 |
Loans held for sale, at fair value | 77,129 | 44,925 |
Loans receivable, net | 592,800 | 502,535 |
Accrued interest receivable | 2,557 | 2,107 |
Premises and equipment, net | 15,071 | 13,856 |
Federal Home Loan Bank (“FHLB”) stock, at cost | 2,004 | 4,551 |
Bank owned life insurance (“BOLI”), net | 9,983 | 9,772 |
Servicing rights, held at the lower of cost or fair value | 7,654 | 5,811 |
Goodwill | 2,312 | 0 |
Core deposit intangible, net | 1,857 | 0 |
Other assets | 4,835 | 1,911 |
TOTAL ASSETS | 827,486 | 677,561 |
LIABILITIES | ||
Noninterest-bearing accounts | 153,095 | 72,247 |
Interest-bearing accounts | 550,069 | 412,931 |
Total deposits | 703,164 | 485,178 |
Borrowings | 21,030 | 98,769 |
Subordinated note | 10,000 | 10,000 |
Unamortized Debt Issuance Expense | (180) | (195) |
Subordinated Debt, Net of Unamortized Debt Issuance Costs | 9,820 | 9,805 |
Other liabilities | 13,915 | 8,469 |
Total liabilities | 747,929 | 602,221 |
COMMITMENTS AND CONTINGENCIES (NOTE 9) | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $.01 par value; 5,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $.01 par value; 45,000,000 shares authorized; 3,057,753 and 3,242,120 shares issued and outstanding at September 30, 2016, and December 31, 2015, respectively | 31 | 32 |
Additional paid-in capital | 26,866 | 30,692 |
Retained earnings | 53,326 | 46,175 |
Accumulated other comprehensive income, net of tax | 773 | 78 |
Unearned shares - Employee Stock Ownership Plan (“ESOP”) | (1,439) | (1,637) |
Total stockholders’ equity | 79,557 | 75,340 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 827,486 | $ 677,561 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Items Included in Consolidated Statement of Financial Condition [Abstract] | ||
Preferred stock par value, in dollars per share | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock par value, in dollars per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 45,000,000 | 45,000,000 |
Common stock, shares issued | 3,057,753 | 3,242,120 |
Common stock, shares outstanding | 3,057,753 | 3,242,120 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Loans receivable including fees | $ 9,241,000 | $ 7,730,000 | $ 26,014,000 | $ 22,042,000 |
Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions | 538,000 | 329,000 | 1,751,000 | 874,000 |
Total interest and dividend income | 9,779,000 | 8,059,000 | 27,765,000 | 22,916,000 |
Deposits | 808,000 | 866,000 | 2,411,000 | 2,425,000 |
Borrowings | 50,000 | 56,000 | 177,000 | 195,000 |
Subordinated note | 171,000 | 0 | 512,000 | 0 |
Total interest expense | 1,029,000 | 922,000 | 3,100,000 | 2,620,000 |
NET INTEREST INCOME | 8,750,000 | 7,137,000 | 24,665,000 | 20,296,000 |
PROVISION FOR LOAN LOSSES | 600,000 | 600,000 | 1,800,000 | 1,800,000 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 8,150,000 | 6,537,000 | 22,865,000 | 18,496,000 |
Service charges and fee income | 899,000 | 528,000 | 2,489,000 | 1,452,000 |
Gain on sale of loans | 5,922,000 | 3,632,000 | 14,722,000 | 11,565,000 |
Gain on sale of investment securities | 146,000 | 0 | 146,000 | 76,000 |
Earnings on cash surrender value of BOLI | 71,000 | 51,000 | 211,000 | 146,000 |
Other noninterest income | 210,000 | 165,000 | 557,000 | 486,000 |
Total noninterest income | 7,248,000 | 4,376,000 | 18,125,000 | 13,725,000 |
Salaries and benefits | 6,287,000 | 4,295,000 | 16,510,000 | 12,461,000 |
Operations | 1,450,000 | 1,118,000 | 4,221,000 | 3,209,000 |
Occupancy | 597,000 | 497,000 | 1,775,000 | 1,388,000 |
Data processing | 537,000 | 380,000 | 1,576,000 | 1,132,000 |
Gain on sale of other real estate owned (“OREO”) | 0 | 0 | (150,000) | 0 |
Loan costs | 715,000 | 379,000 | 1,789,000 | 1,129,000 |
Professional and board fees | 502,000 | 479,000 | 1,490,000 | 1,268,000 |
Federal Deposit Insurance Corporation (“FDIC”) insurance | 98,000 | 69,000 | 306,000 | 229,000 |
Marketing and advertising | 202,000 | 183,000 | 553,000 | 458,000 |
Acquisition costs | 0 | 432,000 | 389,000 | 432,000 |
Amortization of core deposit intangible | 140,000 | 0 | 382,000 | 0 |
Recovery on servicing rights | (216,000) | 0 | (2,000) | 0 |
Total noninterest expense | 10,312,000 | 7,832,000 | 28,839,000 | 21,706,000 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 5,086,000 | 3,081,000 | 12,151,000 | 10,515,000 |
PROVISION FOR INCOME TAXES | 1,629,000 | 1,086,000 | 4,198,000 | 3,656,000 |
NET INCOME | $ 3,457,000 | $ 1,995,000 | $ 7,953,000 | $ 6,859,000 |
Basic earnings per share (in dollars per share) | $ 1.21 | $ 0.67 | $ 2.74 | $ 2.31 |
Diluted earnings per share (in dollars per share) | $ 1.18 | $ 0.66 | $ 2.66 | $ 2.28 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 3,457 | $ 1,995 | $ 7,953 | $ 6,859 |
Securities available-for-sale: | ||||
Unrealized holding gain during period | 29 | 391 | 1,224 | 253 |
Income tax provision related to unrealized holding gain | (8) | (133) | (433) | (86) |
Reclassification adjustment for realized gain included in net income | (146) | 0 | (146) | (76) |
Income tax provision related to reclassification for realized gain | 50 | 0 | 50 | 26 |
Other comprehensive (loss) income, net of tax | (75) | 258 | 695 | 117 |
COMPREHENSIVE INCOME | $ 3,382 | $ 2,253 | $ 8,648 | $ 6,976 |
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 | Unearned ESOP Shares |
Beginning Balance at (in shares) at Dec. 31, 2014 | 3,235,625 | |||||
Beginning Balance at Dec. 31, 2014 | $ 65,836 | $ 32 | $ 29,450 | $ 38,125 | $ 117 | $ (1,888) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 6,859 | 6,859 | ||||
Dividends paid ($0.19 and $0.26 per share for the 9 months ending September 30, 2015 and 2016, respectively) | (611) | (611) | ||||
Share-based compensation | 560 | 560 | ||||
Common stock repurchased (in shares) | (4,605) | |||||
Common stock repurchased | (101) | (101) | 0 | |||
Stock options shares exercised (in shares) | 10,100 | |||||
Stock options exercised | 170 | 170 | ||||
Unrealized holding gains, net of tax | 117 | 117 | ||||
ESOP shares allocated | 408 | 210 | 198 | |||
Ending Balance at (in shares) at Sep. 30, 2015 | 3,241,120 | |||||
Ending Balance at Sep. 30, 2015 | 73,238 | $ 32 | 30,289 | 44,373 | 234 | (1,690) |
Beginning Balance at (in shares) at Dec. 31, 2015 | 3,242,120 | |||||
Beginning Balance at Dec. 31, 2015 | 75,340 | $ 32 | 30,692 | 46,175 | 78 | (1,637) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 7,953 | 7,953 | ||||
Dividends paid ($0.19 and $0.26 per share for the 9 months ending September 30, 2015 and 2016, respectively) | (802) | (802) | ||||
Share-based compensation | 588 | 588 | ||||
Restricted stock awards (in shares) | 4,500 | |||||
Common stock repurchased (in shares) | (198,167) | |||||
Common stock repurchased | (4,903) | $ (1) | (4,902) | 0 | ||
Stock options shares exercised (in shares) | 9,300 | |||||
Stock options exercised | 157 | 157 | ||||
Unrealized holding gains, net of tax | 695 | 695 | ||||
ESOP shares allocated | 529 | 331 | 198 | |||
Ending Balance at (in shares) at Sep. 30, 2016 | 3,057,753 | |||||
Ending Balance at Sep. 30, 2016 | $ 79,557 | $ 31 | $ 26,866 | $ 53,326 | $ 773 | $ (1,439) |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (in dollars per share) | $ 0.26 | $ 0.19 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income | $ 3,457,000 | $ 1,995,000 | $ 7,953,000 | $ 6,859,000 |
Adjustments to reconcile net income to net cash from operating activities | ||||
Provision for loan losses | 600,000 | 600,000 | 1,800,000 | 1,800,000 |
Depreciation, amortization and accretion | 3,779,000 | 1,598,000 | ||
Compensation expense related to stock options and restricted stock awards | 588,000 | 560,000 | ||
ESOP compensation expense for allocated shares | 204,000 | 148,000 | 529,000 | 408,000 |
Increase in cash surrender value of BOLI | (71,000) | (51,000) | (211,000) | (146,000) |
Gain on sale of loans held for sale | (14,722,000) | (11,565,000) | ||
Origination of loans held for sale | (584,073,000) | (447,964,000) | ||
Proceeds from sale of loans held for sale | 564,218,000 | 429,411,000 | ||
Gain on sale of investment securities | (146,000) | 0 | (146,000) | (76,000) |
Recovery on servicing rights | (216,000) | 0 | (2,000) | 0 |
Gain on sale of OREO | 0 | 0 | (150,000) | 0 |
Changes in operating assets and liabilities | ||||
Accrued interest receivable | (450,000) | (499,000) | ||
Other assets | (7,481,000) | (725,000) | ||
Other liabilities | 5,063,000 | 3,091,000 | ||
Net cash used by operating activities | (23,305,000) | (17,248,000) | ||
Activity in securities available-for-sale: | ||||
Proceeds from sale of investment securities | 13,577,000 | 0 | 13,577,000 | 4,178,000 |
Maturities, prepayments, sales, and calls | 9,039,000 | 4,574,000 | ||
Purchases | (47,432,000) | (13,729,000) | ||
Maturities of interest-bearing time deposits | 292,000 | 496,000 | ||
Purchase of interest-bearing time deposits | (1,882,000) | (7,136,000) | ||
Loan originations and principal collections, net | (93,871,000) | (80,887,000) | ||
Purchase of portfolio loans | 0 | (16,113,000) | ||
Purchase of BOLI | 0 | (3,000,000) | ||
Proceeds from sale of other real estate owned, net | 682,000 | 0 | ||
Purchase of premises and equipment, net | (2,287,000) | (1,068,000) | ||
FHLB stock purchased | (7,743,000) | (5,468,000) | ||
FHLB stock redeemed | 10,290,000 | 4,146,000 | ||
Net cash received from acquisition | 180,356,000 | 0 | ||
Net cash from (used by) investing activities | 61,021,000 | (114,007,000) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Net increase in deposits | 37,630,000 | 79,439,000 | ||
Proceeds from borrowings | 259,500,000 | 305,837,000 | ||
Repayments of borrowings | (337,240,000) | (263,602,000) | ||
Dividends paid | (802,000) | (611,000) | ||
Proceeds from stock options exercised | 157,000 | 170,000 | ||
Common stock repurchased | (4,903,000) | (101,000) | ||
Net cash (used by) from financing activities | (45,658,000) | 121,132,000 | ||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (7,942,000) | (10,123,000) | ||
CASH AND CASH EQUIVALENTS, beginning of period | 24,455,000 | 15,555,000 | ||
CASH AND CASH EQUIVALENTS, end of period | 16,513,000 | 5,432,000 | 16,513,000 | 5,432,000 |
SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION | ||||
Interest | 2,931,000 | 2,623,000 | ||
Income taxes | 4,420,000 | 3,666,000 | ||
Total assets acquired | 181,575,000 | 0 | 181,575,000 | 0 |
Total liabilities assumed | $ 186,393,000 | $ 0 | 186,393,000 | 0 |
SUPPLEMENTARY DISCLOSURES OF NONCASH OPERATING, INVESTING AND FINANCING ACTIVITIES | ||||
Change in unrealized gain on investment securities | 1,079,000 | 177,000 | ||
Property received in settlement of loans | 525,000 | 0 | ||
Retention of mortgage servicing rights from loan sales | $ 2,927,000 | $ 2,823,000 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations - FS Bancorp, Inc. (the “Company”) was incorporated in September 2011 as the proposed holding company for 1st Security Bank of Washington (the “Bank” or “1st Security Bank”) in connection with the Bank’s conversion from the mutual to stock form of ownership which was completed on July 9, 2012. The Bank is a community-based savings bank with 11 branches and four loan production offices in suburban communities in the greater Puget Sound area which includes Snohomish, King, Pierce, Jefferson, Kitsap, and Clallam counties, and one loan production office in the market area of the Tri-Cities, Washington. The Bank provides loan and deposit services to customers who are predominantly small and middle-market businesses and individuals. The Bank acquired four retail bank branches from Bank of America (two in Clallam and two in Jefferson counties) on January 22, 2016, and these branches opened as 1st Security Bank branches on January 25, 2016. The Company and its subsidiary are subject to regulation by certain federal and state agencies and undergo periodic examination by these regulatory agencies. Pursuant to the Plan of Conversion (the “Plan”), the Company’s Board of Directors adopted an employee stock ownership plan (“ESOP”) which purchased 8% of the common stock in the open market or 259,210 shares. As provided for in the Plan, the Bank also established a liquidation account in the amount of retained earnings at December 31, 2011. The liquidation account is maintained for the benefit of eligible savings account holders at June 30, 2007, and supplemental eligible account holders as of March 31, 2012, who maintain deposit accounts at the Bank after the conversion. The conversion was accounted for as a change in corporate form with the historic basis of the Company’s assets, liabilities, and equity unchanged as a result. Financial Statement Presentation - The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (“SEC”). It is recommended that these unaudited interim consolidated financial statements be read in conjunction with the Company’s Annual Report on Form 10-K with all of the audited information and footnotes required by U.S. GAAP for complete financial statements for the year ended December 31, 2015, as filed with the SEC on March 25, 2016. In the opinion of management, all normal adjustments and recurring accruals considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. The results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016, or any other future period. The preparation of financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect amounts reported in the financial statements. Actual results could differ from these estimates. Material estimates that are particularly susceptible to change in the near term are allowances for loan losses, fair value of measurements, and servicing assets. Amounts presented in the consolidated financial statements and footnote tables are rounded and presented in thousands of dollars except per share amounts. In the narrative footnote discussion, amounts are rounded and presented in millions of dollars to one decimal point if the amounts are above $1.0 million. Amounts below $1.0 million are rounded and presented in dollars to the nearest thousands. Certain prior year amounts have been reclassified to conform to the 2016 presentation with no change to consolidated net income or stockholders’ equity previously reported. Principles of Consolidation - The consolidated financial statements include the accounts of FS Bancorp, Inc. and its wholly owned subsidiary, 1st Security Bank of Washington. All material intercompany accounts have been eliminated in consolidation. Segment Reporting - The Company’s major line of business is community banking. Management has determined that the Company operates as a single operating segment based on U.S. GAAP. Subsequent Events - The Company has evaluated events and transactions subsequent to September 30, 2016, for potential recognition or disclosure. RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which creates Topic 606 and supersedes Topic 605, Revenue Recognition. In August 2015, FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606) , which postponed the effective date of 2014-09. In March 2016, the FASB issued ASU 2016-08, R evenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net , which amended the principal versus agent implementation guidance set for in ASU 2014-09. Among other things, ASU 2016-08 clarifies that an entity should evaluate whether it is the principal or the agent for each specified good or service promised in a contract with a customer. In April 2016, the FASB issued ASU No. 2016-10, R evenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing . The ASU amends certain aspects of the guidance set forth in the FASB's new revenue standard related to identifying performance obligations and licensing implementation. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In general, the new guidance requires companies to use more judgment and make more estimates than under current guidance, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which provides clarifying guidance in certain narrow areas and adds some practical expedients, but does not change the core revenue recognition principle in Topic 606. The standard is effective for public entities for interim and annual periods beginning after December 15, 2017; early adoption is not permitted. For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. The Company is currently evaluating the provisions to determine the potential impact the new standard will have on the Company's consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU is intended to improve the recognition and measurement of financial instruments. This ASU requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. In addition, the amendments in this ASU require the exit price notion be used when measuring the fair value of financial instruments for disclosure purposes and requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. This ASU also eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. The ASU also requires a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. ASU No. 2016-01 is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for certain provisions. The Company is currently evaluating the impact of this ASU on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . ASU No. 2016-02 requires lessees to recognize on the balance sheet the assets and liabilities arising from operating leases. A lessee should recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. A lessee should include payments to be made in an optional period only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. For a finance lease, interest payments should be recognized separately from amortization of the right-of-use asset in the statement of comprehensive income. For operating leases, the lease cost should be allocated over the lease term on a generally straight-line basis. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in the ASU is permitted. The adoption of ASU 2016-02 is projected to increase our balance sheet by no more than 5% and not have a material impact on our capital ratios. In March 2016, the FASB issued ASU No. 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments . The ASU simplifies the embedded derivative analysis for debt instruments containing contingent call or put options by removing the requirement to assess whether a contingent event is related to interest rates or credit risks. The ASU is effective for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption of the update is permitted. The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting . The ASU eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an adjustment must be made to the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The ASU is effective for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption of the update is permitted. The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The amendments in this update seek to simplify several aspects of the accounting for employee share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 will be effective for the Company for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption of the update is permitted. The Company is currently evaluating early adoption of this ASU and the impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. The ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact of this ASU on the Company's consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Receipts and Cash Payments, a consensus of the FASB’s Emerging Issues Task Force . The ASU is intended to reduce diversity in practice in how certain transactions are presented and classified in the statement of cash flows. The standard will take effect for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The adoption of ASU No. 2016-15 is being reviewed for any material impact there may be on the Company's consolidated financial statements. . |
Business Combination
Business Combination | 9 Months Ended |
Sep. 30, 2016 | |
Business Combination [Abstract] | |
Business Combination | BUSINESS COMBINATION On January 22, 2016, the Company’s wholly-owned subsidiary, 1st Security Bank, completed the purchase of four branches (“Branch Purchase”) from Bank of America, National Association (“Bank of America”). The Branch Purchase included four retail bank branches located in the communities of Port Angeles, Sequim, Port Townsend, and Hadlock, Washington. In accordance with the Purchase and Assumption Agreement, dated as of September 1, 2015, between Bank of America and 1st Security Bank, 1st Security Bank acquired $ 186.4 million of deposits, a small portfolio of performing loans, two owned bank branches, three leases associated with the bank branches and parking facilities and certain other assets of the branches. As of September 30, 2016, approximately $171.0 million of the acquired deposits remain at 1st Security Bank. In consideration of the purchased assets and transferred liabilities, 1st Security Bank paid (a) the unpaid principal balance and accrued interest of $ 419,000 for the loans acquired, (b) the net book value, or approximately $ 778,000 , for the bank facilities and certain other assets associated with the acquired branches, and (c) a deposit premium of 2.50% on substantially all of the deposits assumed, which equated to approximately $ 4.8 million. The transaction was settled with Bank of America paying cash of $ 180.4 million to 1st Security Bank for the difference between these amounts and the total deposits assumed. The Branch Purchase was accounted for under the acquisition method of accounting and accordingly, the assets and liabilities were recorded at their fair values on January 22, 2016, the date of acquisition. Determining the fair value of assets and liabilities is a complicated process involving significant judgment regarding methods and assumptions used to calculate estimated fair values. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition as information relative to closing date fair values become available. During the second quarter of 2016, the Company completed a re-evaluation of the core deposit intangible because a portion of the core deposits were excluded from the original valuation. The updated valuation of the core deposit intangible increased the fair value adjustment by $ 100,000 to $ 2.2 million from $ 2.1 million resulting in a decrease of $ 100,000 to the fair value adjustment of goodwill. The impact to consolidated net income was an increase in the amortization of the core deposit intangible for the six months ended June 30, 2016 of $ 6,000 and was not considered material to the consolidated financial statements. The following table summarizes the estimated fair values of assets acquired and liabilities assumed at the date of acquisition: January 22, 2016 Acquired Book Value Fair Value Adjustments Amount Recorded Assets Cash and cash equivalents $ 180,356 $ — $ 180,356 Loans receivable 417 — 417 Premises and equipment, net 697 267 (1) 964 Accrued interest receivable 2 — 2 Core deposit intangible — 2,239 (2) 2,239 Goodwill — 2,312 (3) 2,312 Other assets 103 — 103 Total assets acquired $ 181,575 $ 4,818 $ 186,393 Liabilities Deposits: Noninterest-bearing accounts $ 79,966 $ — $ 79,966 Interest-bearing accounts 106,398 — 106,398 Total deposits 186,364 — 186,364 Accrued interest payable 7 — 7 Other liabilities 22 — 22 Total liabilities assumed $ 186,393 $ — $ 186,393 Explanation of Fair Value Adjustments (1) The fair value adjustment represents the difference between the fair value of the acquired branches and the book value of the assets acquired. The Company utilized third-party valuations but did not receive appraisals to assist in the determination of fair value. (2) The fair value adjustment represents the value of the core deposit base assumed in the Branch Purchase based on a study performed by an independent consulting firm. This amount was recorded by the Company as an identifiable intangible asset and will be amortized as an expense on an accelerated basis over the average life of the core deposit base, which is estimated to be nine years. (3) The fair value adjustment represents the value of the goodwill calculated from the purchase based on the purchase price, less the fair value of assets acquired net of liabilities assumed. Goodwill - The acquired goodwill represents the excess purchase price over the estimated fair value of the net assets acquired and was recorded at $2.3 million on January 22, 2016. The table below summarizes the aggregate amount recognized for each major class of assets acquired and liabilities assumed by 1st Security Bank in the Branch Purchase on January 22, 2016: At January 22, 2016 Purchase price (1) $ 6,015 Recognized amounts of identifiable assets acquired and (liabilities assumed), at fair value: Cash and cash equivalents 186,371 Acquired loans 417 Premises and equipment, net 964 Accrued interest receivable 2 Core deposit intangible 2,239 Other assets 103 Deposits (186,364 ) Accrued interest payable (7 ) Other liabilities (22 ) Total fair value of identifiable net assets 3,703 Goodwill $ 2,312 (1) Purchase price includes premium paid on the deposits, the aggregate net book value of all assets acquired, and the unpaid principal and accrued interest on loans acquired. Core deposit intangible The core deposit intangible represents the fair value of the acquired core deposit base. The core deposit intangible will be amortized on an accelerated basis over approximately nine years. Total amortization expense was $140,000 and $382,000 for the three and nine months ended September 30, 2016, and none for the same periods in 2015. Amortization expense for core deposit intangible is expected to be as follows: 2016 $ 140 2017 400 2018 307 2019 235 2020 181 Thereafter 594 Total $ 1,857 |
Securities Available-for-sale
Securities Available-for-sale | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | SECURITIES AVAILABLE-FOR-SALE The following tables present the amortized costs, unrealized gains, unrealized losses, and estimated fair values of securities available-for-sale at September 30, 2016 and December 31, 2015: September 30, 2016 SECURITIES AVAILABLE-FOR-SALE Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Values U.S. agency securities $ 8,158 $ 115 $ — $ 8,273 Municipal bonds 17,452 499 (2 ) 17,949 Corporate securities 7,664 44 (95 ) 7,613 U.S. Small Business Administration securities 5,863 147 — 6,010 Mortgage-backed securities 40,426 492 (1 ) 40,917 Total securities available-for-sale $ 79,563 $ 1,297 $ (98 ) $ 80,762 December 31, 2015 SECURITIES AVAILABLE-FOR-SALE Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Values U.S. agency securities $ 6,134 $ — $ (99 ) $ 6,035 Municipal bonds 18,531 373 (13 ) 18,891 Corporate securities 3,495 5 (67 ) 3,433 U.S. Small Business Administration securities 4,011 23 (11 ) 4,023 Mortgage-backed securities 22,926 72 (163 ) 22,835 Total securities available-for-sale $ 55,097 $ 473 $ (353 ) $ 55,217 Investment securities that were in an unrealized loss position at September 30, 2016 and December 31, 2015 are presented in the following tables, based on the length of time individual securities have been in an unrealized loss position. Management considers that these securities are only temporarily impaired due to changes in market interest rates or the widening of market spreads subsequent to the initial purchase of the securities, and not due to concerns regarding the underlying credit of the issuers or the underlying collateral. September 30, 2016 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Municipal bonds $ 176 $ (2 ) $ — $ — $ 176 $ (2 ) Corporate securities 965 (30 ) 1,435 (65 ) 2,400 (95 ) Mortgage-backed securities 1,272 (1 ) — — 1,272 (1 ) Total $ 2,413 $ (33 ) $ 1,435 $ (65 ) $ 3,848 $ (98 ) December 31, 2015 Less than 12 Months 12 Months or Longer Total SECURITIES AVAILABLE-FOR-SALE Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. agency securities $ 2,107 $ (31 ) $ 3,928 $ (68 ) $ 6,035 $ (99 ) Municipal bonds 956 (1 ) 293 (12 ) 1,249 (13 ) Corporate securities 994 (6 ) 1,439 (61 ) 2,433 (67 ) U.S. Small Business Administration securities 990 (11 ) — — 990 (11 ) Mortgage-backed securities 15,642 (112 ) 2,119 (51 ) 17,761 (163 ) Total $ 20,689 $ (161 ) $ 7,779 $ (192 ) $ 28,468 $ (353 ) There were four investments with unrealized losses of less than one year, and two investments with unrealized losses of more than one year at September 30, 2016. There were 17 investments with unrealized losses of less than one year, and eight investments with unrealized losses of more than one year at December 31, 2015. The unrealized losses associated with these investments are believed to be caused by changes in market interest rates that are considered to be temporary and the Company does not intend to sell the securities, and it is not likely to be required to sell these securities prior to maturity. No other-than-temporary impairment was recorded for the nine months ended September 30, 2016 or for the year ended December 31, 2015. The contractual maturities of securities available-for-sale at September 30, 2016 and December 31, 2015 are listed below. Expected maturities of mortgage-backed securities may differ from contractual maturities because borrowers may have the right to call or prepay the obligations; therefore, these securities are classified separately with no specific maturity date. September 30, 2016 December 31, 2015 Amortized Cost Fair Value Amortized Cost Fair Value U.S. agency securities Due after one year through five years $ 4,000 $ 4,003 $ — $ — Due after five years through ten years 4,158 4,270 6,134 6,035 Subtotal 8,158 8,273 6,134 6,035 Municipal bonds Due in one year or less 978 979 991 997 Due after one year through five years 5,578 5,718 3,904 3,954 Due after five years through ten years 8,499 8,784 7,807 7,981 Due after ten years 2,397 2,468 5,829 5,959 Subtotal 17,452 17,949 18,531 18,891 Corporate securities Due after one year through five years 5,669 5,700 1,500 1,490 Due after five years through ten years 1,995 1,913 1,995 1,943 Subtotal 7,664 7,613 3,495 3,433 U.S. Small Business Administration securities Due after five years through ten years 5,863 6,010 4,011 4,023 Mortgage-backed securities Federal National Mortgage Association (“FNMA”) 18,646 18,866 12,515 12,466 Federal Home Loan Mortgage Corporation (“FHLMC”) 14,069 14,239 4,524 4,501 Government National Mortgage Association (“GNMA”) 7,711 7,812 5,887 5,868 Subtotal 40,426 40,917 22,926 22,835 Total $ 79,563 $ 80,762 $ 55,097 $ 55,217 The proceeds and resulting gains and losses, computed using specific identification, from sales of securities available-for-sale for the three and nine months ended September 30, 2016 and 2015 were as follows: Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 Proceeds Gross Gains Gross (Losses) Proceeds Gross Gains Gross (Losses) Securities available-for-sale $ 13,577 $ 149 $ (3 ) $ 13,577 $ 149 $ (3 ) Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Proceeds Gross Gains Gross (Losses) Proceeds Gross Gains Gross (Losses) Securities available-for-sale $ — $ — $ — $ 4,178 $ 76 $ — |
Loans Receivable and Allowance
Loans Receivable and Allowance For Loan Losses | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Loans Receivable and Allowance For Loan Losses | LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES The composition of the loan portfolio at September 30, 2016 and December 31, 2015 was as follows: September 30, December 31, REAL ESTATE LOANS 2016 2015 Commercial $ 55,794 $ 50,034 Construction and development 90,201 80,806 Home equity 19,649 16,540 One-to-four-family (excludes loans held for sale) 116,886 102,921 Multi-family 33,988 22,223 Total real estate loans 316,518 272,524 CONSUMER LOANS Indirect home improvement 104,524 103,064 Solar 34,806 29,226 Marine 29,268 23,851 Other consumer 1,978 2,181 Total consumer loans 170,576 158,322 COMMERCIAL BUSINESS LOANS Commercial and industrial 68,526 59,619 Warehouse lending 48,598 20,817 Total commercial business loans 117,124 80,436 Total loans receivable, gross 604,218 511,282 Allowance for loan losses (9,586 ) (7,785 ) Deferred costs, fees, and discounts, net (1,832 ) (962 ) Total loans receivable, net $ 592,800 $ 502,535 The Company’s lending business activity is concentrated in the greater Puget Sound area and one loan production office located in the Tri-Cities, Washington. Most of the Company’s lending is to customers located in the greater Puget Sound area, however, indirect home improvement loans are originated through a network of home improvement contractors and dealers located throughout Washington, Oregon, Idaho, and California. The Company also originates solar loans through contractors and dealers in the state of California. Generally, loans are secured by real estate, liens on receivables and/or equipment, personal property, and/or deposit accounts. Rights to collateral vary and are legally documented to the extent practicable. Local economic conditions may affect borrowers’ ability to meet the stated repayment terms. The Company has defined its loan portfolio into three segments that reflect the structure of the lending function, the Company’s strategic plan and the manner in which management monitors performance and credit quality. The three loan portfolio segments are: (a) Real Estate Loans, (b) Consumer Loans and (c) Commercial Business Loans. Each of these segments is disaggregated into classes based on the risk characteristics of the borrower and/or the collateral type securing the loan. The following is a summary of each of the Company’s loan portfolio segments and classes: Real Estate Loans Commercial Lending . Loans originated by the Company primarily secured by income producing properties, including retail centers, warehouses, and office buildings located in our market areas. Construction and Development Lending . Loans originated by the Company for the construction of, and secured by, commercial real estate, one-to-four-family, and multi-family residences and tracts of land for development that are not pre-sold. Home Equity Lending . Loans originated by the Company secured by second mortgages on one-to-four-family residences in our market areas. One-to-Four-Family Real Estate Lending . Commercial and consumer loans originated by the Company secured by first mortgages on one-to-four-family residences in our market areas that the Company intends to hold (excludes loans held for sale). Multi-Family Lending . Apartment term lending ( five or more units) to current banking customers and community reinvestment loans for low to moderate income individuals in the Company’s footprint. Consumer Loans Indirect Home Improvement . Fixture secured loans are originated by the Company for home improvement and are secured by the personal property installed in, on, or at the borrower’s real property, and may be perfected with a UCC-2 financing statement filed in the county of the borrower’s residence. These indirect home improvement loans include replacement windows, siding, roofing, and other home fixture installations. Solar. Fixture secured loans are originated by the Company for home improvement and are secured by the personal property installed in, on, or at the borrower’s real property, and may be perfected with a UCC-2 financing statement filed in the county of the borrower’s residence. Marine . Loans originated by the Company secured by boats to borrowers primarily located in its market areas. Other Consumer. Loans originated by the Company, including automobiles, recreational vehicles, direct home improvement loans, loans on deposits, and other consumer loans, primarily consisting of personal lines of credit. Commercial Business Loans Commercial and Industrial Lending . Loans originated by the Company to local small and mid-sized businesses in our Puget Sound market area are secured primarily by accounts receivable, inventory, or personal property, plant and equipment. Commercial and industrial loans are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. Warehouse Lending . Loans originated by the Company’s mortgage and construction warehouse lending program through which the Company funds third-party finance companies originating residential mortgage loans for sale into the secondary market and speculative construction loans for sale to single family households. These loans are secured by the notes and assigned deeds of trust associated with the residential mortgage and construction loans on properties primarily located in the Company’s market areas. The following tables detail activity in the allowance for loan losses by loan categories at or for the three and nine months ended September 30, 2016 and 2015: At or For the Three Months Ended September 30, 2016 ALLOWANCE FOR LOAN LOSSES Real Estate Consumer Commercial Business Unallocated Total Beginning balance $ 3,477 $ 2,039 $ 1,823 $ 1,612 $ 8,951 Provision for loan losses 242 1 252 105 600 Charge-offs (65 ) (232 ) — — (297 ) Recoveries 64 262 6 — 332 Net (charge-offs) recoveries (1 ) 30 6 — 35 Ending balance $ 3,718 $ 2,070 $ 2,081 $ 1,717 $ 9,586 Period end amount allocated to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 3,718 2,070 2,081 1,717 9,586 Ending balance $ 3,718 $ 2,070 $ 2,081 $ 1,717 $ 9,586 LOANS RECEIVABLE Loans individually evaluated for impairment $ 209 $ — $ — $ — $ 209 Loans collectively evaluated for impairment 316,309 170,576 117,124 — 604,009 Ending balance $ 316,518 $ 170,576 $ 117,124 $ — $ 604,218 At or For the Nine Months Ended September 30, 2016 ALLOWANCE FOR LOAN LOSSES Real Estate Consumer Commercial Unallocated Total Beginning balance $ 2,874 $ 1,681 $ 1,396 $ 1,834 7,785 Provision for loan losses 794 519 604 (117 ) 1,800 Charge-offs (65 ) (801 ) — — (866 ) Recoveries 115 671 81 — 867 Net recoveries (charge-offs) 50 (130 ) 81 — 1 Ending balance $ 3,718 $ 2,070 $ 2,081 $ 1,717 $ 9,586 Period end amount allocated to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 3,718 2,070 2,081 1,717 9,586 Ending balance $ 3,718 $ 2,070 $ 2,081 $ 1,717 $ 9,586 LOANS RECEIVABLE Loans individually evaluated for impairment $ 209 $ — $ — $ — $ 209 Loans collectively evaluated for impairment 316,309 170,576 117,124 — 604,009 Ending balance $ 316,518 $ 170,576 $ 117,124 $ — $ 604,218 At or For the Three Months Ended September 30, 2015 ALLOWANCE FOR LOAN LOSSES Real Estate Consumer Commercial Unallocated Total Beginning balance $ 2,378 $ 1,444 $ 2,148 $ 957 $ 6,927 Provision for loan losses 328 225 (591 ) 638 600 Charge-offs — (350 ) — — (350 ) Recoveries 1 204 6 — 211 Net recoveries (charge-offs) 1 (146 ) 6 — (139 ) Ending balance $ 2,707 $ 1,523 $ 1,563 $ 1,595 $ 7,388 Period end amount allocated to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 2,707 1,523 1,563 1,595 7,388 Ending balance $ 2,707 $ 1,523 $ 1,563 $ 1,595 $ 7,388 LOANS RECEIVABLE Loans individually evaluated for impairment $ 736 $ — $ — $ — $ 736 Loans collectively evaluated for impairment 251,653 154,504 83,816 — 489,973 Ending balance $ 252,389 $ 154,504 $ 83,816 $ — $ 490,709 At or For the Nine Months Ended September 30, 2015 ALLOWANCE FOR LOAN LOSSES Real Estate Consumer Commercial Unallocated Total Beginning balance $ 1,872 $ 1,431 $ 1,184 $ 1,603 $ 6,090 Provision for loan losses 891 515 402 (8 ) 1,800 Charge-offs (248 ) (1,095 ) (34 ) — (1,377 ) Recoveries 192 672 11 — 875 Net charge-offs (56 ) (423 ) (23 ) — (502 ) Ending balance $ 2,707 $ 1,523 $ 1,563 $ 1,595 $ 7,388 Period end amount allocated to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 2,707 1,523 1,563 1,595 7,388 Ending balance $ 2,707 $ 1,523 $ 1,563 $ 1,595 $ 7,388 LOANS RECEIVABLE Loans individually evaluated for impairment $ 736 $ — $ — $ — $ 736 Loans collectively evaluated for impairment 251,653 154,504 83,816 — 489,973 Ending balance $ 252,389 $ 154,504 $ 83,816 $ — $ 490,709 Nonaccrual and Past Due Loans . Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are automatically placed on nonaccrual once the loan is 90 days past due or sooner if, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, or as required by regulatory authorities. The following tables provide information pertaining to the aging analysis of contractually past due loans and nonaccrual loans at September 30, 2016 and December 31, 2015: September 30, 2016 REAL ESTATE LOANS 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Receivable Non-Accrual Commercial $ — $ — $ — $ — $ 55,794 $ 55,794 $ — Construction and development — — — — 90,201 90,201 — Home equity 141 7 108 256 19,393 19,649 171 One-to-four-family — — — — 116,886 116,886 — Multi-family — — — — 33,988 33,988 — Total real estate loans 141 7 108 256 316,262 316,518 171 CONSUMER LOANS Indirect home improvement 307 185 183 675 103,849 104,524 387 Solar 59 71 — 130 34,676 34,806 36 Marine — — — — 29,268 29,268 — Other consumer 5 1 — 6 1,972 1,978 — Total consumer loans 371 257 183 811 169,765 170,576 423 COMMERCIAL BUSINESS LOANS Commercial and industrial — — — — 68,526 68,526 — Warehouse lending — — — — 48,598 48,598 — Total commercial business loans — — — — 117,124 117,124 — Total loans $ 512 $ 264 $ 291 $ 1,067 $ 603,151 $ 604,218 $ 594 December 31, 2015 REAL ESTATE LOANS 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Receivable Non-Accrual Commercial $ — $ — $ — $ — $ 50,034 $ 50,034 $ — Construction and development — — — — 80,806 80,806 — Home equity 157 20 47 224 16,316 16,540 47 One-to-four-family 48 — 525 573 102,348 102,921 525 Multi-family — — — — 22,223 22,223 — Total real estate loans 205 20 572 797 271,727 272,524 572 CONSUMER LOANS Indirect home improvement 307 243 157 707 102,357 103,064 408 Solar 69 — 37 106 29,120 29,226 37 Marine 28 — — 28 23,823 23,851 — Other consumer — — — — 2,181 2,181 — Total consumer loans 404 243 194 841 157,481 158,322 445 COMMERCIAL BUSINESS LOANS Commercial and industrial — — — — 59,619 59,619 — Warehouse lending — — — — 20,817 20,817 — Total commercial business loans — — — — 80,436 80,436 — Total loans $ 609 $ 263 $ 766 $ 1,638 $ 509,644 $ 511,282 $ 1,017 There were no loans 90 days or more past due and still accruing at September 30, 2016 and December 31, 2015. The following tables provide additional information about our impaired loans that have been segregated to reflect loans for which an allowance for credit losses has been provided and loans for which no allowance has been provided at September 30, 2016 and December 31, 2015: September 30, 2016 WITH NO RELATED ALLOWANCE RECORDED Unpaid Principal Balance Write- downs Recorded Investment Related Allowance Adjusted Recorded Investment Home equity $ 152 $ — $ 152 $ — $ 152 One-to-four-family 69 (12 ) 57 — 57 Total $ 221 $ (12 ) $ 209 $ — $ 209 December 31, 2015 WITH NO RELATED ALLOWANCE RECORDED Unpaid Principal Balance Write- downs Recorded Investment Related Allowance Adjusted Recorded Investment One-to-four-family $ 801 $ (67 ) $ 734 $ — $ 734 The following tables present the average recorded investment in loans individually evaluated for impairment and the interest income recognized and received for the three and nine months ended September 30, 2016 and 2015: Three Months Ended September 30, 2016 September 30, 2015 WITH NO RELATED ALLOWANCE RECORDED Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial $ — $ — $ 363 $ 38 Home equity 152 — 33 2 One-to-four-family 58 1 736 1 Total $ 210 $ 1 $ 1,132 $ 41 Nine Months Ended September 30, 2016 September 30, 2015 WITH NO RELATED ALLOWANCE RECORDED Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial $ — $ — $ 734 $ 76 Home equity 154 2 64 7 One-to-four-family 58 2 778 26 212 4 1,576 109 WITH AN ALLOWANCE RECORDED Commercial and industrial — — 16 — Total $ 212 $ 4 $ 1,592 $ 109 Credit Quality Indicators As part of the Company’s on-going monitoring of credit quality of the loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk grading of loans, (ii) the level of classified loans, (iii) net charge-offs, (iv) non-performing loans and (v) the general economic conditions in the Company’s markets. The Company utilizes a risk grading matrix to assign a risk grade to its real estate and commercial business loans. Loans are graded on a scale of 1 to 10, with loans in risk grades 1 to 6 considered “Pass” and loans in risk grades 7 to 10 are reported as classified loans in the Company’s allowance for loan loss analysis. A description of the 10 risk grades is as follows: • Grades 1 and 2 - These grades include loans to very high quality borrowers with excellent or desirable business credit. • Grade 3 - This grade includes loans to borrowers of good business credit with moderate risk. • Grades 4 and 5 - These grades include “Pass” grade loans to borrowers of average credit quality and risk. • Grade 6 - This grade includes loans on management’s “Watch” list and is intended to be utilized on a temporary basis for “Pass” grade borrowers where frequent and thorough monitoring is required due to credit weaknesses and where significant risk-modifying action is anticipated in the near term. • Grade 7 - This grade is for “Other Assets Especially Mentioned” ( “OAEM”) in accordance with regulatory guidelines and includes borrowers where performance is poor or significantly less than expected. • Grade 8 - This grade includes “Substandard” loans in accordance with regulatory guidelines which represent an unacceptable business credit where a loss is possible if loan weakness is not corrected. • Grade 9 - This grade includes “Doubtful” loans in accordance with regulatory guidelines where a loss is highly probable. • Grade 10 - This grade includes “Loss” loans in accordance with regulatory guidelines for which total loss is expected and when identified are charged off. Consumer, Home Equity and One-to-Four-Family Real Estate Loans Homogeneous loans are risk rated based upon the FDIC’s Uniform Retail Credit Classification and Account Management Policy. Loans classified under this policy at the Company are consumer loans which include indirect home improvement, solar, marine, other consumer, and one-to-four-family first and second liens. Under the Uniform Retail Credit Classification Policy, loans that are current or less than 90 days past due are graded “Pass” and risk rated “4” or “5” internally. Loans that are past due more than 90 days are classified “Substandard” and risk rated “8” internally until the loan has demonstrated consistent performance, typically six months of contractual payments. Closed-end loans that are 120 days past due and open-end loans that are 180 days past due are charged off based on the value of the collateral less cost to sell. The following tables summarize risk rated loan balances by category at September 30, 2016 and December 31, 2015: September 30, 2016 REAL ESTATE LOANS Pass (1 - 5) Watch (6) Special Substandard (8) Doubtful(9) Loss (10) Total Commercial $ 52,613 $ 3,181 $ — $ — $ — $ — $ 55,794 Construction and development 90,201 — — — — — 90,201 Home equity 19,478 — — 171 — — 19,649 One-to-four-family 116,886 — — — — — 116,886 Multi-family 33,988 — — — — — 33,988 Total real estate loans 313,166 3,181 — 171 — — 316,518 CONSUMER LOANS Indirect home improvement 104,137 — — 387 — — 104,524 Solar 34,770 — — 36 — — 34,806 Marine 29,268 — — — — — 29,268 Other consumer 1,978 — — — — — 1,978 Total consumer loans 170,153 — — 423 — — 170,576 COMMERCIAL BUSINESS LOANS Commercial and industrial 64,889 515 — 3,122 — — 68,526 Warehouse lending 48,598 — — — — — 48,598 Total commercial business loans 113,487 515 — 3,122 — — 117,124 Total loans $ 596,806 $ 3,696 $ — $ 3,716 $ — $ — $ 604,218 December 31, 2015 REAL ESTATE LOANS Pass (1 - 5) Watch (6) Special Mention (7) Substandard (8) Doubtful(9) Loss (10) Total Commercial $ 50,034 $ — $ — $ — $ — $ — $ 50,034 Construction and development 79,100 1,706 — — — — 80,806 Home equity 16,493 — — 47 — — 16,540 One-to-four-family 102,396 — — 525 — — 102,921 Multi-family 22,223 — — — — — 22,223 Total real estate loans 270,246 1,706 — 572 — — 272,524 CONSUMER LOANS Indirect home improvement 102,656 — — 408 — — 103,064 Solar 29,189 — — 37 — — 29,226 Marine 23,851 — — — — — 23,851 Other consumer 2,181 — — — — — 2,181 Total consumer loans 157,877 — — 445 — — 158,322 COMMERCIAL BUSINESS LOANS Commercial and industrial 54,977 2,352 335 1,955 — — 59,619 Warehouse lending 20,817 — — — — — 20,817 Total commercial business loans 75,794 2,352 335 1,955 — — 80,436 Total loans $ 503,917 $ 4,058 $ 335 $ 2,972 $ — $ — $ 511,282 Troubled Debt Restructured Loans Troubled debt restructured (“TDR”) loans are loans for which the Company, for economic or legal reasons related to the borrower’s financial condition, has granted a significant concession to the borrower that it would otherwise not consider. The loan terms which have been modified or restructured due to a borrower’s financial difficulty include but are not limited to: a reduction in the stated interest rate; an extension of the maturity at an interest rate below current market; a reduction in the face amount of the debt; a reduction in the accrued interest; or re-aging, extensions, deferrals and renewals. TDR loans are considered impaired loans and are individually evaluated for impairment. TDR loans can be classified as either accrual or non-accrual. TDR loans are classified as non-performing loans unless they have been performing in accordance with their modified terms for a period of at least six months in which case they are placed on accrual status. The Company had one TDR loan with a balance of $ 57,000 at September 30, 2016, which was still on accrual and included in impaired loans at September 30, 2016, and two TDR loans totaling $ 734,000 at December 31, 2015, of which one TDR loan with a balance of $ 525,000 was on non-accrual, and one TDR loan of $ 209,000 was still on accrual. The Company had no commitments to lend additional funds on these TDR loans at September 30, 2016. The following table summarizes TDR loan balances at the dates indicated: September 30, December 31, 2016 2015 TDR loans on accrual $ 57 $ 209 TDR loans on non-accrual — 525 Total TDR loan balances $ 57 $ 734 For the three and nine months ended September 30, 2016 and 2015 there were no TDR loans that were modified in the previous 12 months that subsequently defaulted in the reporting period. |
Servicing Rights
Servicing Rights | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value, Off-balance Sheet Risk [Abstract] | |
Servicing Rights | SERVICING RIGHTS Loans serviced for others are not included on the Consolidated Balance Sheets. The unpaid principal balances of mortgage, commercial, and consumer loans serviced for others were $882.2 million and $636.1 million at September 30, 2016 and December 31, 2015, respectively and are carried at the lower of cost or market. At September 30, 2016 and December 31, 2015, mortgage, commercial, and consumer servicing rights’ (“servicing rights”) assets are recorded on the Consolidated Balance Sheets at a book value of $ 7.7 million and $ 5.8 million, respectively. The fair market value of the servicing rights’ assets was $7.8 million and $ 6.8 million at September 30, 2016 and December 31, 2015, respectively. The following tables summarize servicing rights activity for the three and nine months ended September 30, 2016 and 2015: At or For the Three Months Ended 2016 2015 Beginning balance $ 6,751 $ 4,569 Additions 1,095 920 Servicing rights amortized (408 ) (263 ) Recovery on servicing rights 216 — Ending balance $ 7,654 $ 5,226 At or For the Nine Months Ended 2016 2015 Beginning balance $ 5,811 $ 3,061 Additions 2,927 2,823 Servicing rights amortized (1,086 ) (658 ) Recovery on servicing rights 2 — Ending balance $ 7,654 $ 5,226 Fair value adjustments to mortgage, commercial, and consumer servicing rights were mainly due to market based assumptions associated with discounted cash flows, loan prepayment speeds, and changes in interest rates. A significant change in prepayments of the loans in the servicing portfolio could result in significant changes in the valuation adjustments, thus creating potential volatility in the carrying amount of servicing rights. The following provides valuation assumptions used in determining the fair value of mortgage servicing rights (“MSR”) at the dates indicated: At September 30, Key assumptions: 2016 2015 Weighted average discount rate 9.5 % 8.5 % Conditional prepayment rate (“CPR”) 16.4 % 12.5 % Weighted average life in years 5.2 6.4 Key economic assumptions and the sensitivity of the current fair value for single family mortgage servicing rights to immediate adverse changes in those assumptions at September 30, 2016 and December 31, 2015 were as follows: September 30, 2016 December 31, 2015 Aggregate portfolio principal balance $ 877,427 $ 631,812 Weighted average rate of note 3.9 % 4.0 % At September 30, 2016 Base 0.5% Adverse Rate Change 1.0% Adverse Rate Change Conditional prepayment rate 16.4 % 25.3 % 35.2 % Fair value MSR $ 7,811 $ 6,044 $ 4,859 Percentage of MSR 0.9 % 0.7 % 0.6 % Discount rate 9.5 % 10.0 % 10.5 % Fair value MSR $ 7,811 $ 7,685 $ 7,562 Percentage of MSR 0.9 % 0.9 % 0.9 % At December 31, 2015 Base 0.5% Adverse Rate Change 1.0% Adverse Rate Change Conditional prepayment rate 12.2 % 17.8 % 25.3 % Fair value MSR $ 6,813 $ 5,660 $ 4,557 Percentage of MSR 1.1 % 0.9 % 0.7 % Discount rate 8.5 % 9.0 % 9.5 % Fair value MSR $ 6,813 $ 6,678 $ 6,548 Percentage of MSR 1.1 % 1.1 % 1.0 % The above tables show the sensitivity to market rate changes for the par rate coupon for a conventional one-to-four-family FNMA/FHLMC/GNMA serviced home loan. The above tables reference a 50 basis point and 100 basis point decrease in note rates. These sensitivities are hypothetical and should be used with caution as the tables above demonstrate the Company’s methodology for estimating the fair value of MSR is highly sensitive to changes in key assumptions. For example, actual prepayment experience may differ and any difference may have a material effect on MSR fair value. Changes in fair value resulting from changes in assumptions generally cannot be extrapolated because the relationship of the change in the assumption to the change in fair value may not be linear. Also, in these tables, the effects of a variation in a particular assumption on the fair value of the MSR is calculated without changing any other assumption; in reality, changes in one factor may be associated with changes in another (for example, decreases in market interest rates may provide an incentive to refinance; however, this may also indicate a slowing economy and an increase in the unemployment rate, which reduces the number of borrowers who qualify for refinancing), which may magnify or counteract the sensitivities. Thus, any measurement of MSR fair value is limited by the conditions existing and assumptions made at a particular point in time. Those assumptions may not be appropriate if they are applied to a different point in time. The Company recorded $534,000 and $343,000 of contractually specified servicing fees, late fees, and other ancillary fees resulting from servicing of mortgage, commercial and consumer loans for the three months ended September 30, 2016 and 2015, respectively, and $ 1.4 million and $ 857,000 for the nine months ended September 30, 2016 and 2015, respectively. The income, net of amortization, is reported in noninterest income. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | DERIVATIVES The Company regularly enters into commitments to originate and sell loans held for sale. The Company has established a hedging strategy to protect itself against the risk of loss associated with interest rate movements on loan commitments. The Company enters into contracts to sell forward To-Be-Announced (“TBA”) mortgage-backed securities. These commitments and contracts are considered derivatives but have not been designated as hedging instruments. Rather, they are accounted for as free-standing derivatives, or economic hedges, with changes in the fair value of the derivatives reported in noninterest income. The Company recognizes all derivative instruments as either other assets or other liabilities on the Consolidated Balance Sheets and measures those instruments at fair value. The following tables summarize the Company’s derivative instruments at the dates indicated: September 30, 2016 Fair Value Notional Asset Liability Fallout adjusted interest rate lock commitments with customers $ 65,259 $ 1,850 $ — Mandatory and best effort forward commitments with investors 29,824 — 40 Forward TBA mortgage-backed securities 99,500 — 385 TBA mortgage-backed securities forward sales paired off with investors 30,000 — 189 December 31, 2015 Fair Value Notional Asset Liability Fallout adjusted interest rate lock commitments with customers $ 34,154 $ 698 $ — Mandatory and best effort forward commitments with investors 24,135 74 — Forward TBA mortgage-backed securities 49,000 3 — TBA mortgage-backed securities forward sales paired off with investors 28,500 30 — Changes in the fair value of the derivatives recognized in other noninterest income on the Consolidated Statements of Income and included in gain on sale of loans resulted in a net gain of $697,000 and a net loss of $346,000 for the three months ended September 30, 2016 and 2015, respectively, and a net gain of $1.7 million and $ 1.1 million for the nine months ended September 30, 2016 and 2015, respectively. |
Other Real Estate Owned
Other Real Estate Owned | 9 Months Ended |
Sep. 30, 2016 | |
Banking and Thrift [Abstract] | |
Other Real Estate Owned | OTHER REAL ESTATE OWNED There was no OREO activity for the three months ended September 30, 2016 and 2015. The following table presents the activity related to OREO for the nine months ended September 30, 2016 and 2015: At or For the Nine Months Ended September 30, 2016 2015 Beginning balance $ — $ — Net loans transferred to OREO 525 — Capitalized costs 7 — Gross proceeds from sale of OREO (682 ) — Gain on sale of OREO 150 — Ending balance $ — $ — There were no OREO properties at September 30, 2016 and 2015. For the three months ended September 30, 2016 and 2015, the Company recorded no net gain or loss on the disposals of OREO, respectively. There were no holding costs associated with OREO for the three and nine months ended September 30, 2016 and 2015. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2016 | |
Banking and Thrift [Abstract] | |
Deposits | DEPOSITS Deposits are summarized as follows at September 30, 2016 and December 31, 2015: September 30, December 31, 2016 (3) 2015 Noninterest-bearing checking $ 143,251 $ 66,676 Interest-bearing checking 63,682 34,098 Savings 50,348 30,126 Money market 238,321 159,605 Certificates of deposit less than $100,000 (1) 93,953 65,175 Certificates of deposit of $100,000 through $250,000 76,855 91,317 Certificates of deposit of $250,000 and over (2) 26,910 32,610 Escrow accounts related to mortgages serviced 9,844 5,571 Total $ 703,164 $ 485,178 (1) Includes $47.1 million of brokered deposits at September 30, 2016 and $27.9 million at December 31, 2015. (2) Time deposits that meet or exceed the FDIC insurance limit. (3) Includes $171.0 million of deposits acquired in the Branch Purchase. Scheduled maturities of time deposits at September 30, 2016 for future periods ending are as follows: At September 30, 2016 2016 $ 21,580 2017 76,878 2018 54,256 2019 17,151 2020 13,625 Thereafter 14,228 Total $ 197,718 The Bank pledged 13 securities held at the FHLB of Des Moines with a fair value of $15.7 million to secure Washington State public deposits of $6.6 million with a $746,000 collateral requirement by the Washington Public Deposit Protection Commission at September 30, 2016. Federal Reserve regulations require that the Bank maintain reserves in the form of cash on hand and deposit balances with the Federal Reserve Bank, based on a percentage of deposits. The amounts of such balances at September 30, 2016 and December 31, 2015 were $12.6 million and $3.0 million , respectively, and were in compliance with Federal Reserve regulations. Interest expense by deposit category for the three and nine months ended September 30, 2016 and 2015 is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Interest-bearing checking $ 7 $ 8 $ 20 $ 21 Savings and money market 257 262 757 760 Certificates of deposit 544 596 1,634 1,644 Total $ 808 $ 866 $ 2,411 $ 2,425 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments - The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized on the balance sheet. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The following table provides a summary of the Company’s commitments at September 30, 2016 and December 31, 2015: COMMITMENTS TO EXTEND CREDIT September 30, December 31, REAL ESTATE LOANS 2016 2015 Commercial $ 232 $ 1,988 Construction and development 58,279 44,109 One-to-four-family (includes held for sale) 134,454 76,013 Home equity 25,023 18,089 Multi-family 425 429 Total real estate loans 218,413 140,628 CONSUMER LOANS 8,490 5,754 COMMERCIAL BUSINESS LOANS Commercial and industrial 33,233 39,537 Warehouse lending 34,402 27,601 Total commercial business loans 67,635 67,138 Total commitments to extend credit $ 294,538 $ 213,520 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the amount of the total commitments do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon an extension of credit, is based on management’s credit evaluation of the party. Collateral held varies, but may include accounts receivable, inventory, property and equipment, residential real estate, and income-producing commercial properties. Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit are uncollateralized and usually do not contain a specified maturity date and ultimately may not be drawn upon to the total extent to which the Company is committed. The Company has established reserves for estimated losses from unfunded commitments of $166,000 at September 30, 2016 and $147,000 at December 31, 2015. One-to-four-family commitments included in the table above are accounted for as fair value derivatives and do not carry an associated loss reserve. The Company has entered into a severance agreement with its Chief Executive Officer. The severance agreement, subject to certain requirements, generally includes a lump sum payment to the Chief Executive Officer equal to 24 months of base compensation in the event his employment is involuntarily terminated, other than for cause or the executive terminates his employment with good reason, as defined in the severance agreement. The Company has entered into change of control agreements with its Chief Financial Officer, Chief Operating Officer, Chief Lending Officer, and two Executive Vice Presidents of Home Lending. The change of control agreements, subject to certain requirements, generally remain in effect until canceled by either party upon at least 24 months prior written notice. Under the change of control agreements the executive generally will be entitled to a change of control payment from the Company if the executive is involuntarily terminated within six months preceding or 12 months after a change in control (as defined in the change of control agreements). In such an event, the executives would each be entitled to receive a cash payment in an amount equal to 12 months of their then current salary, subject to certain requirements in the change of control agreements. Because of the nature of our activities, the Company is subject to various pending and threatened legal actions, which arise in the ordinary course of business. From time to time, subordination liens may create litigation which requires us to defend our lien rights. In the opinion of management, liabilities arising from these claims, if any, will not have a material effect on our financial position. The Company had no material pending legal actions at September 30, 2016. Contingent liabilities for loans held for sale - In the ordinary course of business, the Company sells loans without recourse that may have to subsequently be repurchased due to defects that occurred during the origination of the loan. The defects are categorized as documentation errors, underwriting errors, early payoff, early payment defaults, breach of representation or warranty, servicing errors, and/or fraud. When a loan sold to an investor without recourse fails to perform according to its contractual terms, the investor will typically review the loan file to determine whether defects in the origination process occurred. If a defect is identified, the Company may be required to either repurchase the loan or indemnify the investor for losses sustained. If there are no such defects, the Company has no commitment to repurchase the loan. The Company has recorded reserves of $825,000 and $561,000 to cover loss exposure related to these guarantees for one-to-four-family loans sold into the secondary market at September 30, 2016 and December 31, 2015, respectively, which is included in other liabilities in the Consolidated Balance Sheets. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. Consequently, the fair value of the Company’s consolidated financial instruments will change when interest rate levels change and that change may either be favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed interest rate obligations are less likely to prepay in a rising interest rate environment and more likely to prepay in a falling interest rate environment. Conversely, depositors who are receiving fixed interest rates are more likely to withdraw funds before maturity in a rising interest rate environment and less likely to do so in a falling interest rate environment. Management monitors interest rates and maturities of assets and liabilities, and attempts to minimize interest rate risk by adjusting terms of new loans, and deposits, and by investing in securities with terms that mitigate the Company’s overall interest rate risk. Accounting guidance regarding fair value measurements defines fair value and establishes a framework for measuring fair value in accordance with U.S. GAAP. Fair value is the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The following definitions describe the levels of inputs that may be used to measure fair value: Level 1 - Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Determination of Fair Market Values: Securities - Securities available-for-sale are recorded at fair value on a recurring basis. The fair value of investments and mortgage-backed securities are provided by a third-party pricing service. These valuations are based on market data using pricing models that vary by asset class and incorporate available current trade, bid, and other market information, and for structured securities, cash flow, and loan performance data. The pricing processes utilize benchmark curves, benchmarking of similar securities, sector groupings, and matrix pricing. Option adjusted spread models are also used to assess the impact of changes in interest rates and to develop prepayment scenarios. Transfers between the fair value hierarchy are determined through the third-party service provider which, from time to time will transfer between levels based on market conditions per the related security. All models and processes used, take into account market convention (Level 2). Mortgage Loans Held for Sale - The fair value of loans held for sale reflects the value of commitments with investors and/or the relative price as delivered into a TBA mortgage-backed security (Level 2). Derivative Instruments - The fair value of the interest rate lock commitments and forward sales commitments are estimated using quoted or published market prices for similar instruments, adjusted for factors such as pull-through rate assumptions based on historical information, where appropriate. TBA mortgage-backed securities are fair valued on similar contracts in active markets (Level 2) while locks and forwards with customers and investors are valued using similar contracts in the market and changes in the market interest rates (Levels 2 and 3). Impaired Loans - Fair value adjustments to impaired collateral dependent loans are recorded to reflect partial write-downs based on the current appraised value of the collateral or internally developed models, which contain management’s assumptions (Level 3). The following tables present securities available-for-sale measured at fair value on a recurring basis at September 30, 2016 and December 31, 2015: Securities Available-for-Sale At September 30, 2016 Level 1 Level 2 Level 3 Total U.S. agency securities $ — $ 8,273 $ — $ 8,273 Municipal bonds — 17,949 — 17,949 Corporate securities — 7,613 — 7,613 U.S. Small Business Administration securities — 6,010 — 6,010 Mortgage-backed securities — 40,917 — 40,917 Total $ — $ 80,762 $ — $ 80,762 Securities Available-for-Sale At December 31, 2015 Level 1 Level 2 Level 3 Total U.S. agency securities $ — $ 6,035 $ — $ 6,035 Municipal bonds — 18,891 — 18,891 Corporate securities — 3,433 — 3,433 U.S. Small Business Administration securities — 4,023 — 4,023 Mortgage-backed securities — 22,835 — 22,835 Total $ — $ 55,217 $ — $ 55,217 The following table presents mortgage loans held for sale measured at fair value on a recurring basis at September 30, 2016 and December 31, 2015: Mortgage Loans Held for Sale Level 1 Level 2 Level 3 Total September 30, 2016 $ — $ 77,129 $ — $ 77,129 December 31, 2015 $ — $ 44,925 $ — $ 44,925 The following tables present the fair value of interest rate lock commitments with customers, individual forward sale commitments with investors, and paired off commitments with investors measured at their fair value on a recurring basis at September 30, 2016 and December 31, 2015: Interest Rate Lock Commitments with Customers Level 1 Level 2 Level 3 Total September 30, 2016 $ — $ — $ 1,850 $ 1,850 December 31, 2015 $ — $ — $ 698 $ 698 Individual Forward Sale Commitments with Investors Level 1 Level 2 Level 3 Total September 30, 2016 $ — $ (385 ) $ (40 ) $ (425 ) December 31, 2015 $ — $ 3 $ 74 $ 77 Paired Off Commitments with Investors Level 1 Level 2 Level 3 Total September 30, 2016 $ — $ (189 ) $ — $ (189 ) December 31, 2015 $ — $ 30 $ — $ 30 The following table presents impaired loans measured at fair value on a nonrecurring basis for which a nonrecurring change in fair value has been recorded during the reporting period. The amounts disclosed below represent the fair values at the time the nonrecurring fair value measurements were made, and not necessarily the fair value as of the dates reported upon. Impaired Loans Level 1 Level 2 Level 3 Total September 30, 2016 $ — $ — $ 209 $ 209 December 31, 2015 $ — $ — $ 734 $ 734 Quantitative Information about Level 3 Fair Value Measurements - Shown below is the fair value of financial instruments measured under a Level 3 unobservable input on a recurring and nonrecurring basis at September 30, 2016 table: Level 3 Fair Value Instrument Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Weighted Average RECURRING Interest rate lock commitments with customers Quoted market prices Pull-through expectations 80% - 99% 93.4% Individual forward sale commitments with investors Quoted market prices Pull-through expectations 80% - 99% 93.4% NONRECURRING Impaired loans Fair value of underlying collateral Discount applied to the obtained appraisal 0% - 18.0% 0.0% An increase in the pull-through rate utilized in the fair value measurement of the interest rate lock commitments with customers and forward sale commitments with investors will result in positive fair value adjustments (and an increase in the fair value measurement). Conversely, a decrease in the pull-through rate will result in a negative fair value adjustment (and a decrease in the fair value measurement). The following tables provide a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and nine months ended September 30, 2016 and 2015: Three Months Ended September 30, Beginning Balance Purchases and Issuances Sales and Settlements Ending Balance Net change in fair value for gains/(losses) relating to items held at end of period 2016 Interest rate lock commitments with customers $ 2,058 $ 5,763 $ (5,971 ) $ 1,850 $ (208 ) Individual forward sale commitments with investors (3 ) (60 ) 23 (40 ) (37 ) 2015 Interest rate lock commitments with customers $ 934 $ 2,720 $ (2,797 ) $ 857 $ (77 ) Individual forward sale commitments with investors 110 (66 ) (6 ) 38 (72 ) Nine Months Ended September 30, Beginning Balance Purchases and Issuances Sales and Settlements Ending Balance Net change in fair value for gains/(losses) relating to items held at end of period 2016 Interest rate lock commitments with customers $ 698 $ 14,039 $ (12,887 ) $ 1,850 $ 1,152 Individual forward sale commitments with investors 74 (267 ) 153 (40 ) (114 ) 2015 Interest rate lock commitments with customers $ 396 $ 8,683 $ (8,222 ) $ 857 $ 461 Individual forward sale commitments with investors 12 21 5 38 26 Gains (losses) on interest rate lock commitments carried at fair value are recorded in other noninterest income. Gains (losses) on forward sale commitments with investors carried at fair value are recorded within other noninterest income. Fair Values of Financial Instruments - The following methods and assumptions were used by the Company in estimating the fair values of financial instruments disclosed in these financial statements: Cash, and Cash Equivalents and Certificates of Deposit at Other Financial Institutions - The carrying amounts of cash and short-term instruments approximates their fair value (Level 1). Federal Home Loan Bank stock - The par value of FHLB stock approximates its fair value (Level 2). Accrued Interest - The carrying amounts of accrued interest approximates its fair value (Level 2). Loans Receivable, Net - For variable rate loans that re-price frequently and have no significant change in credit risk, fair values are based on carrying values. Fair values for fixed rate loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers or similar credit quality (Level 3). Servicing Rights - The fair value of mortgage, commercial and consumer servicing rights are estimated using net present value of expected cash flows using a third party model that incorporates assumptions used in the industry to value such rights, adjusted for factors such as weighted average prepayments speeds based on historical information, where appropriate (Level 3). Deposits - The fair value of deposits with no stated maturity date is included at the amount payable on demand. Fair values for fixed rate certificates of deposit are estimated using a discounted cash flow calculation on interest rates currently offered on similar certificates (Level 2). Borrowings - The carrying amounts of advances maturing within 90 days approximate their fair values. The fair values of long-term advances are estimated using discounted cash flow analyses based on the Bank’s current incremental borrowing rates for similar types of borrowing arrangements (Level 2). Subordinated Note - The fair value of the Subordinated Note is based upon the average yield of debt issuances in the third quarter of 2016 for similarly sized issuances (Level 2). Off-Balance Sheet Instruments - The fair value of commitments to extend credit are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreement and the present creditworthiness of the customers. The majority of the Company’s off-balance sheet instruments consist of non-fee producing, variable-rate commitments, the Company has determined they do not have a distinguishable fair value. The fair value of loan lock commitments with customers and investors reflect an estimate of value based upon the interest rate lock date, the expected pull through percentage for the commitment, and the interest rate at year end (Levels 2 and 3). The following table provides estimated fair values of the Company’s financial instruments at September 30, 2016 and December 31, 2015: September 30, December 31, 2016 2015 Financial Assets Carrying Amount Fair Value Carrying Amount Fair Value Level 1 inputs: Cash and cash equivalents $ 16,513 $ 16,513 $ 24,455 $ 24,455 Certificates of deposit at other financial institutions 14,009 14,009 12,421 12,421 Level 2 inputs: Securities available-for-sale, at fair value 80,762 80,762 55,217 55,217 Loans held for sale, at fair value 77,129 77,129 44,925 44,925 FHLB stock, at cost 2,004 2,004 4,551 4,551 Accrued interest receivable 2,557 2,557 2,107 2,107 Individual forward sale commitments with investors — — 3 3 Paired off commitments with investors — — 30 30 Level 3 inputs: Loans receivable, net 592,800 621,772 502,535 566,209 Servicing rights, held at lower of cost or fair value 7,654 7,816 5,811 6,848 Fair value interest rate locks with customers 1,850 1,850 698 698 Individual forward sale commitments with investors — — 74 74 Financial Liabilities Level 2 inputs: Deposits 703,164 710,140 485,178 494,871 Borrowings 21,030 21,104 98,769 98,739 Subordinated note 10,000 9,550 10,000 9,550 Accrued interest payable 191 191 22 22 Individual forward sale commitments with investors 385 385 — — Paired off commitments with investors 189 189 — — Level 3 inputs: Individual forward sale commitments with investors 40 40 — — |
Employee Benefits
Employee Benefits | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFITS Employee Stock Ownership Plan On January 1, 2012, the Company established an ESOP for eligible employees of the Company and the Bank. Employees of the Company and the Bank who have been credited with at least 1,000 hours of service during a 12 -month period are eligible to participate in the ESOP. The ESOP borrowed $ 2.6 million from FS Bancorp, Inc. and used those funds to acquire 259,210 shares of FS Bancorp, Inc. common stock in the open market at an average price of $10.17 per share during the second half of 2012. It is anticipated that the Bank will make contributions to the ESOP in amounts necessary to amortize the ESOP loan payable to FS Bancorp, Inc. over a period of 10 years , bearing interest at 2.30% . Intercompany expenses associated with the ESOP are eliminated in consolidation. Shares purchased by the ESOP with the loan proceeds are held in a suspense account and allocated to ESOP participants on a pro rata basis as principal and interest payments are made by the ESOP to FS Bancorp, Inc. The loan is secured by shares purchased with the loan proceeds and will be repaid by the ESOP with funds from the Bank’s discretionary contributions to the ESOP and earnings on the ESOP assets. Payments of principal and interest are due annually on December 31, the Company’s fiscal year end. On December 31, 2015, the ESOP paid the fourth annual installment of principal in the amount of $251,000 , plus accrued interest of $44,000 pursuant to the ESOP loan agreement. As shares are committed to be released from collateral, the Company reports compensation expense equal to the average daily market prices of the shares at September 30, 2016 for the prior 90 days. These shares become outstanding for earnings per share computations. The compensation expense is accrued monthly throughout the year. Dividends on allocated ESOP shares are recorded as a reduction of retained earnings; dividends on unallocated ESOP shares are recorded as a reduction of debt and accrued interest. Compensation expense related to the ESOP was $204,000 and $148,000 for the three months ended September 30, 2016 and 2015, respectively, and $ 529,000 and $ 408,000 for the nine months ended September 30, 2016 and 2015, respectively. Shares held by the ESOP at September 30, 2016 were as follows (shown as actual): Balances Allocated shares 102,359 Committed to be released shares 19,441 Unallocated shares 136,085 Total ESOP shares 257,885 Fair value of unallocated shares (in thousands) $ 3,703 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share are computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. For earnings per share calculations, the ESOP shares committed to be released are included as outstanding shares for both basic and diluted earnings per share. The following table presents a reconciliation of the components used to compute basic and diluted earnings per share for the three and nine months ended September 30, 2016 and 2015: At or For the Three Months Ended September 30, At or For the Nine Months Ended September 30, Numerator: 2016 2015 2016 2015 Net income (in thousands) $ 3,457 $ 1,995 $ 7,953 $ 6,859 Denominator: Basic weighted average common shares outstanding 2,851,147 2,984,164 2,901,572 2,967,284 Dilutive shares 87,292 55,843 84,102 42,108 Diluted weighted average common shares outstanding 2,938,439 3,040,007 2,985,674 3,009,392 Basic earnings per share $ 1.21 $ 0.67 $ 2.74 $ 2.31 Diluted earnings per share $ 1.18 $ 0.66 $ 2.66 $ 2.28 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION Stock Options and Restricted Stock In September 2013, the shareholders of FS Bancorp, Inc. approved the FS Bancorp, Inc. 2013 Equity Incentive Plan (“Plan”). The Plan provides for the grant of stock options and restricted stock awards. Total share-based compensation expense for the Plan was $195,000 and $ 588,000 for the three and nine months ended September 30, 2016, respectively, and $186,000 and $ 560,000 for the three and nine months ended September 30, 2015, respectively. Stock Options The Plan authorizes the grant of stock options totaling 324,013 shares to Company directors and employees. Option awards were granted with an exercise price equal to the market price of FS Bancorp’s common stock at the grant date, May 8, 2014, of $16.89 per share. These option awards were granted as non-qualified stock options, having a vesting period of five years, with 20% vesting on the anniversary date of each grant date, and a contractual life of 10 years. Any unexercised stock options will expire 10 years after the grant date or sooner in the event of the award recipient’s termination of service with the Company or the Bank. The fair value of each option award is estimated on the grant date using a Black-Scholes Option pricing model that uses the following assumptions. The dividend yield is based on the current quarterly dividend in effect at the time of the grant. Historical employment data is used to estimate the forfeiture rate. The Company became a publicly held company in July 2012, therefore historical data was not available to calculate the volatility for FS Bancorp stock. Given this limitation, management utilized a proxy to determine the expected volatility of FS Bancorp’s stock. The proxy chosen was the NASDAQ Bank Index, or NASDAQ Bank (NASDAQ symbol: BANK). This index provides the volatility of the banking sector for NASDAQ traded banks. The majority of smaller banks are traded on the NASDAQ given the costs and daily interaction required with trading on the New York Stock Exchange. The Company utilized the comparable Treasury rate for the discount rate associated with the stock options granted. The Company elected to use Staff Accounting Bulletin 107, simplified expected term calculation for the “Share-Based Payments” method permitted by the SEC to calculate the expected term. This method uses the vesting term of an option along with the contractual term, setting the expected life at 6.5 years. The following table presents a summary of the Company’s stock option plan awards during the nine months ended September 30, 2016 (shown as actual): Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term In Years Aggregate Intrinsic Value Outstanding at January 1, 2016 306,900 $ 16.89 8.36 $ 2,794,570 Granted — — — — Less exercised 9,300 16.89 — 81,942 Forfeited or expired — — — — Outstanding at September 30, 2016 297,600 $ 16.89 7.61 $ 3,660,480 Expected to vest, assuming a 0.31% annual forfeiture rate 296,655 $ 16.89 7.61 $ 3,648,855 Exercisable at September 30, 2016 107,400 $ 16.89 7.61 $ 1,321,020 At September 30, 2016, there was $597,000 of total unrecognized compensation cost related to nonvested stock options granted under the Plan. The cost is expected to be recognized over the remaining weighted-average vesting period of 2.6 years. Restricted Stock Awards The Plan authorizes the grant of restricted stock awards totaling 129,605 shares to Company directors and employees, and all but 4,500 shares were granted on May 8, 2014 at a grant date fair value of $16.89 per share. The remaining 4,500 restricted stock awards were granted January 1, 2016 at a grant date fair value of $26.00 per share. Compensation expense is recognized over the vesting period of the awards based on the fair value of the restricted stock. The restricted stock awards’ fair value is equal to the value on the grant date. Shares awarded as restricted stock vest ratably over a three -year period for directors and a five -year period for employees, beginning at the grant date. Any unexercised restricted stock awards will expire after vesting or sooner in the event of the award recipient’s termination of service with the Company or the Bank. The following table presents a summary of the Company’s nonvested awards during the nine months ended September 30, 2016 (shown as actual): Nonvested Shares Shares Weighted-Average Grant-Date Fair Value Per Share Weighted-Average Grant-Date Fair Value Nonvested at January 1, 2016 94,684 $ 16.89 $ 1,599,212 Granted 4,500 26.00 117,000 Less vested 30,421 16.89 513,811 Forfeited or expired — — — Nonvested at September 30, 2016 68,763 $ 17.49 $ 1,202,401 At September 30, 2016, there was $970,000 of total unrecognized compensation costs related to nonvested shares granted as restricted stock awards. The cost is expected to be recognized over the remaining weighted-average vesting period of 2.3 years. |
Regulatory Capital
Regulatory Capital | 9 Months Ended |
Sep. 30, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital | REGULATORY CAPITAL The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines of the regulatory framework for prompt corrective action, the Bank must meet specific capital adequacy guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital classification is also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of Tier 1 capital (as defined in the regulations) to total average assets (as defined), and minimum ratios of Tier 1 total capital (as defined) and common equity Tier 1 (“CET 1”) capital to risk-weighted assets (as defined). The Bank must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table below to be categorized as well capitalized. At September 30, 2016 and December 31, 2015, the Bank was categorized as well capitalized under applicable regulatory requirements. There are no conditions or events since that notification that management believes have changed the Bank’s category. The following tables compare the Bank’s actual capital amounts and ratios at September 30, 2016 and December 31, 2015 to their minimum regulatory capital requirements and well capitalized regulatory capital at those dates (dollars in thousands): To be Well Capitalized Under Prompt Corrective Action Provisions For Capital Adequacy Purposes Bank Only Actual At September 30, 2016 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital (to risk-weighted assets) $ 91,077 13.46 % $ 54,127 8.00 % $ 67,659 10.00 % Tier 1 risk-based capital (to risk-weighted assets) $ 82,604 12.21 % $ 40,595 6.00 % $ 54,127 8.00 % Tier 1 leverage capital (to average assets) $ 82,604 10.33 % $ 31,994 4.00 % $ 39,992 5.00 % CET 1 capital (to risk-weighted assets) $ 82,604 12.21 % $ 30,446 4.50 % $ 43,978 6.50 % At December 31, 2015 Total risk-based capital (to risk-weighted assets) $ 85,570 15.51 % $ 44,132 8.00 % $ 55,164 10.00 % Tier 1 risk-based capital (to risk-weighted assets) $ 78,662 14.26 % $ 33,099 6.00 % $ 44,132 8.00 % Tier 1 leverage capital (to average assets) $ 78,662 12.14 % $ 25,924 4.00 % $ 32,406 5.00 % CET 1 capital (to risk-weighted assets) $ 78,662 14.26 % $ 24,824 4.50 % $ 35,857 6.50 % In addition to the minimum CET 1, Tier 1 and total capital ratios, the Bank has to maintain a capital conservation buffer consisting of additional CET 1 capital above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses based on percentages of eligible retained income that could be utilized for such actions. This new capital conservation buffer requirement began to be phased in starting in January 2016 at 0.625% of risk-weighted assets and will increase each year until fully implemented to an amount equal to 2.5% of risk-weighted assets in January 2019. FS Bancorp, Inc. is a bank holding company subject to the capital adequacy requirements of the Federal Reserve under the Bank Holding Company Act of 1956, as amended, and the regulations of the Federal Reserve. For a bank holding company with less than $1.0 billion in assets, the capital guidelines apply on a bank only basis and the Federal Reserve expects the holding company’s subsidiary banks to be well capitalized under the prompt corrective action regulations. If FS Bancorp, Inc. was subject to regulatory guidelines for bank holding companies with $1.0 billion or more in assets, at September 30, 2016, the Company would have exceeded all regulatory capital requirements. The regulatory capital ratios calculated for FS Bancorp, Inc. at September 30, 2016 were 9.4% for Tier 1 leverage-based capital, 11.1% for Tier 1 risk-based capital, 12.4% for total risk-based capital, and 11.1% for CET 1 capital ratio. |
Basis of Presentation and Sum23
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Financial Statement Presentation | Financial Statement Presentation - The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (“SEC”). It is recommended that these unaudited interim consolidated financial statements be read in conjunction with the Company’s Annual Report on Form 10-K with all of the audited information and footnotes required by U.S. GAAP for complete financial statements for the year ended December 31, 2015, as filed with the SEC on March 25, 2016. In the opinion of management, all normal adjustments and recurring accruals considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. The results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016, or any other future period. The preparation of financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect amounts reported in the financial statements. Actual results could differ from these estimates. Material estimates that are particularly susceptible to change in the near term are allowances for loan losses, fair value of measurements, and servicing assets. Amounts presented in the consolidated financial statements and footnote tables are rounded and presented in thousands of dollars except per share amounts. In the narrative footnote discussion, amounts are rounded and presented in millions of dollars to one decimal point if the amounts are above $1.0 million. Amounts below $1.0 million are rounded and presented in dollars to the nearest thousands. Certain prior year amounts have been reclassified to conform to the 2016 presentation with no change to consolidated net income or stockholders’ equity previously reported. |
Principles of Consolidation | Principles of Consolidation - The consolidated financial statements include the accounts of FS Bancorp, Inc. and its wholly owned subsidiary, 1st Security Bank of Washington. All material intercompany accounts have been eliminated in consolidation. |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which creates Topic 606 and supersedes Topic 605, Revenue Recognition. In August 2015, FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606) , which postponed the effective date of 2014-09. In March 2016, the FASB issued ASU 2016-08, R evenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net , which amended the principal versus agent implementation guidance set for in ASU 2014-09. Among other things, ASU 2016-08 clarifies that an entity should evaluate whether it is the principal or the agent for each specified good or service promised in a contract with a customer. In April 2016, the FASB issued ASU No. 2016-10, R evenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing . The ASU amends certain aspects of the guidance set forth in the FASB's new revenue standard related to identifying performance obligations and licensing implementation. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In general, the new guidance requires companies to use more judgment and make more estimates than under current guidance, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which provides clarifying guidance in certain narrow areas and adds some practical expedients, but does not change the core revenue recognition principle in Topic 606. The standard is effective for public entities for interim and annual periods beginning after December 15, 2017; early adoption is not permitted. For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. The Company is currently evaluating the provisions to determine the potential impact the new standard will have on the Company's consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU is intended to improve the recognition and measurement of financial instruments. This ASU requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. In addition, the amendments in this ASU require the exit price notion be used when measuring the fair value of financial instruments for disclosure purposes and requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. This ASU also eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. The ASU also requires a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. ASU No. 2016-01 is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for certain provisions. The Company is currently evaluating the impact of this ASU on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . ASU No. 2016-02 requires lessees to recognize on the balance sheet the assets and liabilities arising from operating leases. A lessee should recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. A lessee should include payments to be made in an optional period only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. For a finance lease, interest payments should be recognized separately from amortization of the right-of-use asset in the statement of comprehensive income. For operating leases, the lease cost should be allocated over the lease term on a generally straight-line basis. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in the ASU is permitted. The adoption of ASU 2016-02 is projected to increase our balance sheet by no more than 5% and not have a material impact on our capital ratios. In March 2016, the FASB issued ASU No. 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments . The ASU simplifies the embedded derivative analysis for debt instruments containing contingent call or put options by removing the requirement to assess whether a contingent event is related to interest rates or credit risks. The ASU is effective for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption of the update is permitted. The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting . The ASU eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an adjustment must be made to the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The ASU is effective for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption of the update is permitted. The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The amendments in this update seek to simplify several aspects of the accounting for employee share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 will be effective for the Company for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption of the update is permitted. The Company is currently evaluating early adoption of this ASU and the impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. The ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact of this ASU on the Company's consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Receipts and Cash Payments, a consensus of the FASB’s Emerging Issues Task Force . The ASU is intended to reduce diversity in practice in how certain transactions are presented and classified in the statement of cash flows. The standard will take effect for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The adoption of ASU No. 2016-15 is being reviewed for any material impact there may be on the Company's consolidated financial statements. . |
Loan Portfolio Segment | The Company has defined its loan portfolio into three segments that reflect the structure of the lending function, the Company’s strategic plan and the manner in which management monitors performance and credit quality. The three loan portfolio segments are: (a) Real Estate Loans, (b) Consumer Loans and (c) Commercial Business Loans. Each of these segments is disaggregated into classes based on the risk characteristics of the borrower and/or the collateral type securing the loan. The following is a summary of each of the Company’s loan portfolio segments and classes: Real Estate Loans Commercial Lending . Loans originated by the Company primarily secured by income producing properties, including retail centers, warehouses, and office buildings located in our market areas. Construction and Development Lending . Loans originated by the Company for the construction of, and secured by, commercial real estate, one-to-four-family, and multi-family residences and tracts of land for development that are not pre-sold. Home Equity Lending . Loans originated by the Company secured by second mortgages on one-to-four-family residences in our market areas. One-to-Four-Family Real Estate Lending . Commercial and consumer loans originated by the Company secured by first mortgages on one-to-four-family residences in our market areas that the Company intends to hold (excludes loans held for sale). Multi-Family Lending . Apartment term lending ( five or more units) to current banking customers and community reinvestment loans for low to moderate income individuals in the Company’s footprint. Consumer Loans Indirect Home Improvement . Fixture secured loans are originated by the Company for home improvement and are secured by the personal property installed in, on, or at the borrower’s real property, and may be perfected with a UCC-2 financing statement filed in the county of the borrower’s residence. These indirect home improvement loans include replacement windows, siding, roofing, and other home fixture installations. Solar. Fixture secured loans are originated by the Company for home improvement and are secured by the personal property installed in, on, or at the borrower’s real property, and may be perfected with a UCC-2 financing statement filed in the county of the borrower’s residence. Marine . Loans originated by the Company secured by boats to borrowers primarily located in its market areas. Other Consumer. Loans originated by the Company, including automobiles, recreational vehicles, direct home improvement loans, loans on deposits, and other consumer loans, primarily consisting of personal lines of credit. Commercial Business Loans Commercial and Industrial Lending . Loans originated by the Company to local small and mid-sized businesses in our Puget Sound market area are secured primarily by accounts receivable, inventory, or personal property, plant and equipment. Commercial and industrial loans are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. Warehouse Lending . Loans originated by the Company’s mortgage and construction warehouse lending program through which the Company funds third-party finance companies originating residential mortgage loans for sale into the secondary market and speculative construction loans for sale to single family households. These loans are secured by the notes and assigned deeds of trust associated with the residential mortgage and construction loans on properties primarily located in the Company’s market areas. |
Nonaccrual and Past Due Loans | Nonaccrual and Past Due Loans . Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are automatically placed on nonaccrual once the loan is 90 days past due or sooner if, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, or as required by regulatory authorities. |
Credit Quality Indicators | The Company utilizes a risk grading matrix to assign a risk grade to its real estate and commercial business loans. Loans are graded on a scale of 1 to 10, with loans in risk grades 1 to 6 considered “Pass” and loans in risk grades 7 to 10 are reported as classified loans in the Company’s allowance for loan loss analysis. A description of the 10 risk grades is as follows: • Grades 1 and 2 - These grades include loans to very high quality borrowers with excellent or desirable business credit. • Grade 3 - This grade includes loans to borrowers of good business credit with moderate risk. • Grades 4 and 5 - These grades include “Pass” grade loans to borrowers of average credit quality and risk. • Grade 6 - This grade includes loans on management’s “Watch” list and is intended to be utilized on a temporary basis for “Pass” grade borrowers where frequent and thorough monitoring is required due to credit weaknesses and where significant risk-modifying action is anticipated in the near term. • Grade 7 - This grade is for “Other Assets Especially Mentioned” ( “OAEM”) in accordance with regulatory guidelines and includes borrowers where performance is poor or significantly less than expected. • Grade 8 - This grade includes “Substandard” loans in accordance with regulatory guidelines which represent an unacceptable business credit where a loss is possible if loan weakness is not corrected. • Grade 9 - This grade includes “Doubtful” loans in accordance with regulatory guidelines where a loss is highly probable. • Grade 10 - This grade includes “Loss” loans in accordance with regulatory guidelines for which total loss is expected and when identified are charged off. Consumer, Home Equity and One-to-Four-Family Real Estate Loans Homogeneous loans are risk rated based upon the FDIC’s Uniform Retail Credit Classification and Account Management Policy. Loans classified under this policy at the Company are consumer loans which include indirect home improvement, solar, marine, other consumer, and one-to-four-family first and second liens. Under the Uniform Retail Credit Classification Policy, loans that are current or less than 90 days past due are graded “Pass” and risk rated “4” or “5” internally. Loans that are past due more than 90 days are classified “Substandard” and risk rated “8” internally until the loan has demonstrated consistent performance, typically six months of contractual payments. Closed-end loans that are 120 days past due and open-end loans that are 180 days past due are charged off based on the value of the collateral less cost to sell. |
Troubled Debt Restructured Loans | TDR loans are considered impaired loans and are individually evaluated for impairment. TDR loans can be classified as either accrual or non-accrual. TDR loans are classified as non-performing loans unless they have been performing in accordance with their modified terms for a period of at least six months in which case they are placed on accrual status. |
Derivatives | The Company regularly enters into commitments to originate and sell loans held for sale. The Company has established a hedging strategy to protect itself against the risk of loss associated with interest rate movements on loan commitments. The Company enters into contracts to sell forward To-Be-Announced (“TBA”) mortgage-backed securities. These commitments and contracts are considered derivatives but have not been designated as hedging instruments. Rather, they are accounted for as free-standing derivatives, or economic hedges, with changes in the fair value of the derivatives reported in noninterest income. The Company recognizes all derivative instruments as either other assets or other liabilities on the Consolidated Balance Sheets and measures those instruments at fair value. |
Loan Commitments | The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. |
Determination of Fair Market Values | Determination of Fair Market Values: Securities - Securities available-for-sale are recorded at fair value on a recurring basis. The fair value of investments and mortgage-backed securities are provided by a third-party pricing service. These valuations are based on market data using pricing models that vary by asset class and incorporate available current trade, bid, and other market information, and for structured securities, cash flow, and loan performance data. The pricing processes utilize benchmark curves, benchmarking of similar securities, sector groupings, and matrix pricing. Option adjusted spread models are also used to assess the impact of changes in interest rates and to develop prepayment scenarios. Transfers between the fair value hierarchy are determined through the third-party service provider which, from time to time will transfer between levels based on market conditions per the related security. All models and processes used, take into account market convention (Level 2). Mortgage Loans Held for Sale - The fair value of loans held for sale reflects the value of commitments with investors and/or the relative price as delivered into a TBA mortgage-backed security (Level 2). Derivative Instruments - The fair value of the interest rate lock commitments and forward sales commitments are estimated using quoted or published market prices for similar instruments, adjusted for factors such as pull-through rate assumptions based on historical information, where appropriate. TBA mortgage-backed securities are fair valued on similar contracts in active markets (Level 2) while locks and forwards with customers and investors are valued using similar contracts in the market and changes in the market interest rates (Levels 2 and 3). Impaired Loans - Fair value adjustments to impaired collateral dependent loans are recorded to reflect partial write-downs based on the current appraised value of the collateral or internally developed models, which contain management’s assumptions (Level 3). |
Employee Stock Ownership Plan | Employees of the Company and the Bank who have been credited with at least 1,000 hours of service during a 12 -month period are eligible to participate in the ESOP. |
Business Combination (Tables)
Business Combination (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Combination [Abstract] | |
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed at Acquisition | The following table summarizes the estimated fair values of assets acquired and liabilities assumed at the date of acquisition: January 22, 2016 Acquired Book Value Fair Value Adjustments Amount Recorded Assets Cash and cash equivalents $ 180,356 $ — $ 180,356 Loans receivable 417 — 417 Premises and equipment, net 697 267 (1) 964 Accrued interest receivable 2 — 2 Core deposit intangible — 2,239 (2) 2,239 Goodwill — 2,312 (3) 2,312 Other assets 103 — 103 Total assets acquired $ 181,575 $ 4,818 $ 186,393 Liabilities Deposits: Noninterest-bearing accounts $ 79,966 $ — $ 79,966 Interest-bearing accounts 106,398 — 106,398 Total deposits 186,364 — 186,364 Accrued interest payable 7 — 7 Other liabilities 22 — 22 Total liabilities assumed $ 186,393 $ — $ 186,393 Explanation of Fair Value Adjustments (1) The fair value adjustment represents the difference between the fair value of the acquired branches and the book value of the assets acquired. The Company utilized third-party valuations but did not receive appraisals to assist in the determination of fair value. (2) The fair value adjustment represents the value of the core deposit base assumed in the Branch Purchase based on a study performed by an independent consulting firm. This amount was recorded by the Company as an identifiable intangible asset and will be amortized as an expense on an accelerated basis over the average life of the core deposit base, which is estimated to be nine years. (3) The fair value adjustment represents the value of the goodwill calculated from the purchase based on the purchase price, less the fair value of assets acquired net of liabilities assumed. Goodwill - The acquired goodwill represents the excess purchase price over the estimated fair value of the net assets acquired and was recorded at $2.3 million on January 22, 2016. The table below summarizes the aggregate amount recognized for each major class of assets acquired and liabilities assumed by 1st Security Bank in the Branch Purchase on January 22, 2016: At January 22, 2016 Purchase price (1) $ 6,015 Recognized amounts of identifiable assets acquired and (liabilities assumed), at fair value: Cash and cash equivalents 186,371 Acquired loans 417 Premises and equipment, net 964 Accrued interest receivable 2 Core deposit intangible 2,239 Other assets 103 Deposits (186,364 ) Accrued interest payable (7 ) Other liabilities (22 ) Total fair value of identifiable net assets 3,703 Goodwill $ 2,312 (1) Purchase price includes premium paid on the deposits, the aggregate net book value of all assets acquired, and the unpaid principal and accrued interest on loans acquired. Core deposit intangible The core deposit intangible represents the fair value of the acquired core deposit base. The core deposit intangible will be amortized on an accelerated basis over approximately nine years. Total amortization expense was $140,000 and $382,000 for the three and nine months ended September 30, 2016, and none for the same periods in 2015. Amortization expense for core deposit intangible is expected to be as follows: 2016 $ 140 2017 400 2018 307 2019 235 2020 181 Thereafter 594 Total $ 1,857 |
Securities Available-for-sale (
Securities Available-for-sale (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The following tables present the amortized costs, unrealized gains, unrealized losses, and estimated fair values of securities available-for-sale at September 30, 2016 and December 31, 2015: September 30, 2016 SECURITIES AVAILABLE-FOR-SALE Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Values U.S. agency securities $ 8,158 $ 115 $ — $ 8,273 Municipal bonds 17,452 499 (2 ) 17,949 Corporate securities 7,664 44 (95 ) 7,613 U.S. Small Business Administration securities 5,863 147 — 6,010 Mortgage-backed securities 40,426 492 (1 ) 40,917 Total securities available-for-sale $ 79,563 $ 1,297 $ (98 ) $ 80,762 December 31, 2015 SECURITIES AVAILABLE-FOR-SALE Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Values U.S. agency securities $ 6,134 $ — $ (99 ) $ 6,035 Municipal bonds 18,531 373 (13 ) 18,891 Corporate securities 3,495 5 (67 ) 3,433 U.S. Small Business Administration securities 4,011 23 (11 ) 4,023 Mortgage-backed securities 22,926 72 (163 ) 22,835 Total securities available-for-sale $ 55,097 $ 473 $ (353 ) $ 55,217 |
Schedule of Unrealized Loss on Investments | Investment securities that were in an unrealized loss position at September 30, 2016 and December 31, 2015 are presented in the following tables, based on the length of time individual securities have been in an unrealized loss position. Management considers that these securities are only temporarily impaired due to changes in market interest rates or the widening of market spreads subsequent to the initial purchase of the securities, and not due to concerns regarding the underlying credit of the issuers or the underlying collateral. September 30, 2016 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Municipal bonds $ 176 $ (2 ) $ — $ — $ 176 $ (2 ) Corporate securities 965 (30 ) 1,435 (65 ) 2,400 (95 ) Mortgage-backed securities 1,272 (1 ) — — 1,272 (1 ) Total $ 2,413 $ (33 ) $ 1,435 $ (65 ) $ 3,848 $ (98 ) December 31, 2015 Less than 12 Months 12 Months or Longer Total SECURITIES AVAILABLE-FOR-SALE Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. agency securities $ 2,107 $ (31 ) $ 3,928 $ (68 ) $ 6,035 $ (99 ) Municipal bonds 956 (1 ) 293 (12 ) 1,249 (13 ) Corporate securities 994 (6 ) 1,439 (61 ) 2,433 (67 ) U.S. Small Business Administration securities 990 (11 ) — — 990 (11 ) Mortgage-backed securities 15,642 (112 ) 2,119 (51 ) 17,761 (163 ) Total $ 20,689 $ (161 ) $ 7,779 $ (192 ) $ 28,468 $ (353 ) |
Schedule of Available for Sale Securities by Contractual Mataurity | The contractual maturities of securities available-for-sale at September 30, 2016 and December 31, 2015 are listed below. Expected maturities of mortgage-backed securities may differ from contractual maturities because borrowers may have the right to call or prepay the obligations; therefore, these securities are classified separately with no specific maturity date. September 30, 2016 December 31, 2015 Amortized Cost Fair Value Amortized Cost Fair Value U.S. agency securities Due after one year through five years $ 4,000 $ 4,003 $ — $ — Due after five years through ten years 4,158 4,270 6,134 6,035 Subtotal 8,158 8,273 6,134 6,035 Municipal bonds Due in one year or less 978 979 991 997 Due after one year through five years 5,578 5,718 3,904 3,954 Due after five years through ten years 8,499 8,784 7,807 7,981 Due after ten years 2,397 2,468 5,829 5,959 Subtotal 17,452 17,949 18,531 18,891 Corporate securities Due after one year through five years 5,669 5,700 1,500 1,490 Due after five years through ten years 1,995 1,913 1,995 1,943 Subtotal 7,664 7,613 3,495 3,433 U.S. Small Business Administration securities Due after five years through ten years 5,863 6,010 4,011 4,023 Mortgage-backed securities Federal National Mortgage Association (“FNMA”) 18,646 18,866 12,515 12,466 Federal Home Loan Mortgage Corporation (“FHLMC”) 14,069 14,239 4,524 4,501 Government National Mortgage Association (“GNMA”) 7,711 7,812 5,887 5,868 Subtotal 40,426 40,917 22,926 22,835 Total $ 79,563 $ 80,762 $ 55,097 $ 55,217 |
Schedule of Proceeds and Realized Gain (Loss) | The proceeds and resulting gains and losses, computed using specific identification, from sales of securities available-for-sale for the three and nine months ended September 30, 2016 and 2015 were as follows: Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 Proceeds Gross Gains Gross (Losses) Proceeds Gross Gains Gross (Losses) Securities available-for-sale $ 13,577 $ 149 $ (3 ) $ 13,577 $ 149 $ (3 ) Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Proceeds Gross Gains Gross (Losses) Proceeds Gross Gains Gross (Losses) Securities available-for-sale $ — $ — $ — $ 4,178 $ 76 $ — |
Loans Receivable and Allowanc26
Loans Receivable and Allowance For Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The composition of the loan portfolio at September 30, 2016 and December 31, 2015 was as follows: September 30, December 31, REAL ESTATE LOANS 2016 2015 Commercial $ 55,794 $ 50,034 Construction and development 90,201 80,806 Home equity 19,649 16,540 One-to-four-family (excludes loans held for sale) 116,886 102,921 Multi-family 33,988 22,223 Total real estate loans 316,518 272,524 CONSUMER LOANS Indirect home improvement 104,524 103,064 Solar 34,806 29,226 Marine 29,268 23,851 Other consumer 1,978 2,181 Total consumer loans 170,576 158,322 COMMERCIAL BUSINESS LOANS Commercial and industrial 68,526 59,619 Warehouse lending 48,598 20,817 Total commercial business loans 117,124 80,436 Total loans receivable, gross 604,218 511,282 Allowance for loan losses (9,586 ) (7,785 ) Deferred costs, fees, and discounts, net (1,832 ) (962 ) Total loans receivable, net $ 592,800 $ 502,535 |
Allowance for Credit Losses on Financing Receivables | The following tables detail activity in the allowance for loan losses by loan categories at or for the three and nine months ended September 30, 2016 and 2015: At or For the Three Months Ended September 30, 2016 ALLOWANCE FOR LOAN LOSSES Real Estate Consumer Commercial Business Unallocated Total Beginning balance $ 3,477 $ 2,039 $ 1,823 $ 1,612 $ 8,951 Provision for loan losses 242 1 252 105 600 Charge-offs (65 ) (232 ) — — (297 ) Recoveries 64 262 6 — 332 Net (charge-offs) recoveries (1 ) 30 6 — 35 Ending balance $ 3,718 $ 2,070 $ 2,081 $ 1,717 $ 9,586 Period end amount allocated to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 3,718 2,070 2,081 1,717 9,586 Ending balance $ 3,718 $ 2,070 $ 2,081 $ 1,717 $ 9,586 LOANS RECEIVABLE Loans individually evaluated for impairment $ 209 $ — $ — $ — $ 209 Loans collectively evaluated for impairment 316,309 170,576 117,124 — 604,009 Ending balance $ 316,518 $ 170,576 $ 117,124 $ — $ 604,218 At or For the Nine Months Ended September 30, 2016 ALLOWANCE FOR LOAN LOSSES Real Estate Consumer Commercial Unallocated Total Beginning balance $ 2,874 $ 1,681 $ 1,396 $ 1,834 7,785 Provision for loan losses 794 519 604 (117 ) 1,800 Charge-offs (65 ) (801 ) — — (866 ) Recoveries 115 671 81 — 867 Net recoveries (charge-offs) 50 (130 ) 81 — 1 Ending balance $ 3,718 $ 2,070 $ 2,081 $ 1,717 $ 9,586 Period end amount allocated to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 3,718 2,070 2,081 1,717 9,586 Ending balance $ 3,718 $ 2,070 $ 2,081 $ 1,717 $ 9,586 LOANS RECEIVABLE Loans individually evaluated for impairment $ 209 $ — $ — $ — $ 209 Loans collectively evaluated for impairment 316,309 170,576 117,124 — 604,009 Ending balance $ 316,518 $ 170,576 $ 117,124 $ — $ 604,218 At or For the Three Months Ended September 30, 2015 ALLOWANCE FOR LOAN LOSSES Real Estate Consumer Commercial Unallocated Total Beginning balance $ 2,378 $ 1,444 $ 2,148 $ 957 $ 6,927 Provision for loan losses 328 225 (591 ) 638 600 Charge-offs — (350 ) — — (350 ) Recoveries 1 204 6 — 211 Net recoveries (charge-offs) 1 (146 ) 6 — (139 ) Ending balance $ 2,707 $ 1,523 $ 1,563 $ 1,595 $ 7,388 Period end amount allocated to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 2,707 1,523 1,563 1,595 7,388 Ending balance $ 2,707 $ 1,523 $ 1,563 $ 1,595 $ 7,388 LOANS RECEIVABLE Loans individually evaluated for impairment $ 736 $ — $ — $ — $ 736 Loans collectively evaluated for impairment 251,653 154,504 83,816 — 489,973 Ending balance $ 252,389 $ 154,504 $ 83,816 $ — $ 490,709 At or For the Nine Months Ended September 30, 2015 ALLOWANCE FOR LOAN LOSSES Real Estate Consumer Commercial Unallocated Total Beginning balance $ 1,872 $ 1,431 $ 1,184 $ 1,603 $ 6,090 Provision for loan losses 891 515 402 (8 ) 1,800 Charge-offs (248 ) (1,095 ) (34 ) — (1,377 ) Recoveries 192 672 11 — 875 Net charge-offs (56 ) (423 ) (23 ) — (502 ) Ending balance $ 2,707 $ 1,523 $ 1,563 $ 1,595 $ 7,388 Period end amount allocated to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 2,707 1,523 1,563 1,595 7,388 Ending balance $ 2,707 $ 1,523 $ 1,563 $ 1,595 $ 7,388 LOANS RECEIVABLE Loans individually evaluated for impairment $ 736 $ — $ — $ — $ 736 Loans collectively evaluated for impairment 251,653 154,504 83,816 — 489,973 Ending balance $ 252,389 $ 154,504 $ 83,816 $ — $ 490,709 |
Past Due Financing Receivables | The following tables provide information pertaining to the aging analysis of contractually past due loans and nonaccrual loans at September 30, 2016 and December 31, 2015: September 30, 2016 REAL ESTATE LOANS 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Receivable Non-Accrual Commercial $ — $ — $ — $ — $ 55,794 $ 55,794 $ — Construction and development — — — — 90,201 90,201 — Home equity 141 7 108 256 19,393 19,649 171 One-to-four-family — — — — 116,886 116,886 — Multi-family — — — — 33,988 33,988 — Total real estate loans 141 7 108 256 316,262 316,518 171 CONSUMER LOANS Indirect home improvement 307 185 183 675 103,849 104,524 387 Solar 59 71 — 130 34,676 34,806 36 Marine — — — — 29,268 29,268 — Other consumer 5 1 — 6 1,972 1,978 — Total consumer loans 371 257 183 811 169,765 170,576 423 COMMERCIAL BUSINESS LOANS Commercial and industrial — — — — 68,526 68,526 — Warehouse lending — — — — 48,598 48,598 — Total commercial business loans — — — — 117,124 117,124 — Total loans $ 512 $ 264 $ 291 $ 1,067 $ 603,151 $ 604,218 $ 594 December 31, 2015 REAL ESTATE LOANS 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Receivable Non-Accrual Commercial $ — $ — $ — $ — $ 50,034 $ 50,034 $ — Construction and development — — — — 80,806 80,806 — Home equity 157 20 47 224 16,316 16,540 47 One-to-four-family 48 — 525 573 102,348 102,921 525 Multi-family — — — — 22,223 22,223 — Total real estate loans 205 20 572 797 271,727 272,524 572 CONSUMER LOANS Indirect home improvement 307 243 157 707 102,357 103,064 408 Solar 69 — 37 106 29,120 29,226 37 Marine 28 — — 28 23,823 23,851 — Other consumer — — — — 2,181 2,181 — Total consumer loans 404 243 194 841 157,481 158,322 445 COMMERCIAL BUSINESS LOANS Commercial and industrial — — — — 59,619 59,619 — Warehouse lending — — — — 20,817 20,817 — Total commercial business loans — — — — 80,436 80,436 — Total loans $ 609 $ 263 $ 766 $ 1,638 $ 509,644 $ 511,282 $ 1,017 |
Impaired Financing Receivables | The following tables present the average recorded investment in loans individually evaluated for impairment and the interest income recognized and received for the three and nine months ended September 30, 2016 and 2015: Three Months Ended September 30, 2016 September 30, 2015 WITH NO RELATED ALLOWANCE RECORDED Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial $ — $ — $ 363 $ 38 Home equity 152 — 33 2 One-to-four-family 58 1 736 1 Total $ 210 $ 1 $ 1,132 $ 41 Nine Months Ended September 30, 2016 September 30, 2015 WITH NO RELATED ALLOWANCE RECORDED Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial $ — $ — $ 734 $ 76 Home equity 154 2 64 7 One-to-four-family 58 2 778 26 212 4 1,576 109 WITH AN ALLOWANCE RECORDED Commercial and industrial — — 16 — Total $ 212 $ 4 $ 1,592 $ 109 The following tables provide additional information about our impaired loans that have been segregated to reflect loans for which an allowance for credit losses has been provided and loans for which no allowance has been provided at September 30, 2016 and December 31, 2015: September 30, 2016 WITH NO RELATED ALLOWANCE RECORDED Unpaid Principal Balance Write- downs Recorded Investment Related Allowance Adjusted Recorded Investment Home equity $ 152 $ — $ 152 $ — $ 152 One-to-four-family 69 (12 ) 57 — 57 Total $ 221 $ (12 ) $ 209 $ — $ 209 December 31, 2015 WITH NO RELATED ALLOWANCE RECORDED Unpaid Principal Balance Write- downs Recorded Investment Related Allowance Adjusted Recorded Investment One-to-four-family $ 801 $ (67 ) $ 734 $ — $ 734 |
Financing Receivable Credit Quality Indicators | The following tables summarize risk rated loan balances by category at September 30, 2016 and December 31, 2015: September 30, 2016 REAL ESTATE LOANS Pass (1 - 5) Watch (6) Special Substandard (8) Doubtful(9) Loss (10) Total Commercial $ 52,613 $ 3,181 $ — $ — $ — $ — $ 55,794 Construction and development 90,201 — — — — — 90,201 Home equity 19,478 — — 171 — — 19,649 One-to-four-family 116,886 — — — — — 116,886 Multi-family 33,988 — — — — — 33,988 Total real estate loans 313,166 3,181 — 171 — — 316,518 CONSUMER LOANS Indirect home improvement 104,137 — — 387 — — 104,524 Solar 34,770 — — 36 — — 34,806 Marine 29,268 — — — — — 29,268 Other consumer 1,978 — — — — — 1,978 Total consumer loans 170,153 — — 423 — — 170,576 COMMERCIAL BUSINESS LOANS Commercial and industrial 64,889 515 — 3,122 — — 68,526 Warehouse lending 48,598 — — — — — 48,598 Total commercial business loans 113,487 515 — 3,122 — — 117,124 Total loans $ 596,806 $ 3,696 $ — $ 3,716 $ — $ — $ 604,218 December 31, 2015 REAL ESTATE LOANS Pass (1 - 5) Watch (6) Special Mention (7) Substandard (8) Doubtful(9) Loss (10) Total Commercial $ 50,034 $ — $ — $ — $ — $ — $ 50,034 Construction and development 79,100 1,706 — — — — 80,806 Home equity 16,493 — — 47 — — 16,540 One-to-four-family 102,396 — — 525 — — 102,921 Multi-family 22,223 — — — — — 22,223 Total real estate loans 270,246 1,706 — 572 — — 272,524 CONSUMER LOANS Indirect home improvement 102,656 — — 408 — — 103,064 Solar 29,189 — — 37 — — 29,226 Marine 23,851 — — — — — 23,851 Other consumer 2,181 — — — — — 2,181 Total consumer loans 157,877 — — 445 — — 158,322 COMMERCIAL BUSINESS LOANS Commercial and industrial 54,977 2,352 335 1,955 — — 59,619 Warehouse lending 20,817 — — — — — 20,817 Total commercial business loans 75,794 2,352 335 1,955 — — 80,436 Total loans $ 503,917 $ 4,058 $ 335 $ 2,972 $ — $ — $ 511,282 |
Troubled Debt Restructurings on Financing Receivables | The following table summarizes TDR loan balances at the dates indicated: September 30, December 31, 2016 2015 TDR loans on accrual $ 57 $ 209 TDR loans on non-accrual — 525 Total TDR loan balances $ 57 $ 734 |
Servicing Rights (Tables)
Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value, Off-balance Sheet Risk [Abstract] | |
Schedule of Mortgage Servicing Rights | The following tables summarize servicing rights activity for the three and nine months ended September 30, 2016 and 2015: At or For the Three Months Ended 2016 2015 Beginning balance $ 6,751 $ 4,569 Additions 1,095 920 Servicing rights amortized (408 ) (263 ) Recovery on servicing rights 216 — Ending balance $ 7,654 $ 5,226 At or For the Nine Months Ended 2016 2015 Beginning balance $ 5,811 $ 3,061 Additions 2,927 2,823 Servicing rights amortized (1,086 ) (658 ) Recovery on servicing rights 2 — Ending balance $ 7,654 $ 5,226 |
Valuation assumptions used in determining the fair value of servicing rights | The following provides valuation assumptions used in determining the fair value of mortgage servicing rights (“MSR”) at the dates indicated: At September 30, Key assumptions: 2016 2015 Weighted average discount rate 9.5 % 8.5 % Conditional prepayment rate (“CPR”) 16.4 % 12.5 % Weighted average life in years 5.2 6.4 |
Key economic assumptions and the sensitivity of the current fair value for single family mortgage servicing rights | Key economic assumptions and the sensitivity of the current fair value for single family mortgage servicing rights to immediate adverse changes in those assumptions at September 30, 2016 and December 31, 2015 were as follows: September 30, 2016 December 31, 2015 Aggregate portfolio principal balance $ 877,427 $ 631,812 Weighted average rate of note 3.9 % 4.0 % At September 30, 2016 Base 0.5% Adverse Rate Change 1.0% Adverse Rate Change Conditional prepayment rate 16.4 % 25.3 % 35.2 % Fair value MSR $ 7,811 $ 6,044 $ 4,859 Percentage of MSR 0.9 % 0.7 % 0.6 % Discount rate 9.5 % 10.0 % 10.5 % Fair value MSR $ 7,811 $ 7,685 $ 7,562 Percentage of MSR 0.9 % 0.9 % 0.9 % At December 31, 2015 Base 0.5% Adverse Rate Change 1.0% Adverse Rate Change Conditional prepayment rate 12.2 % 17.8 % 25.3 % Fair value MSR $ 6,813 $ 5,660 $ 4,557 Percentage of MSR 1.1 % 0.9 % 0.7 % Discount rate 8.5 % 9.0 % 9.5 % Fair value MSR $ 6,813 $ 6,678 $ 6,548 Percentage of MSR 1.1 % 1.1 % 1.0 % |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following tables summarize the Company’s derivative instruments at the dates indicated: September 30, 2016 Fair Value Notional Asset Liability Fallout adjusted interest rate lock commitments with customers $ 65,259 $ 1,850 $ — Mandatory and best effort forward commitments with investors 29,824 — 40 Forward TBA mortgage-backed securities 99,500 — 385 TBA mortgage-backed securities forward sales paired off with investors 30,000 — 189 December 31, 2015 Fair Value Notional Asset Liability Fallout adjusted interest rate lock commitments with customers $ 34,154 $ 698 $ — Mandatory and best effort forward commitments with investors 24,135 74 — Forward TBA mortgage-backed securities 49,000 3 — TBA mortgage-backed securities forward sales paired off with investors 28,500 30 — |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Banking and Thrift [Abstract] | |
Schedule of Other Real Estate Owned | The following table presents the activity related to OREO for the nine months ended September 30, 2016 and 2015: At or For the Nine Months Ended September 30, 2016 2015 Beginning balance $ — $ — Net loans transferred to OREO 525 — Capitalized costs 7 — Gross proceeds from sale of OREO (682 ) — Gain on sale of OREO 150 — Ending balance $ — $ — |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Banking and Thrift [Abstract] | |
Schedule of Deposit Liabilities | Deposits are summarized as follows at September 30, 2016 and December 31, 2015: September 30, December 31, 2016 (3) 2015 Noninterest-bearing checking $ 143,251 $ 66,676 Interest-bearing checking 63,682 34,098 Savings 50,348 30,126 Money market 238,321 159,605 Certificates of deposit less than $100,000 (1) 93,953 65,175 Certificates of deposit of $100,000 through $250,000 76,855 91,317 Certificates of deposit of $250,000 and over (2) 26,910 32,610 Escrow accounts related to mortgages serviced 9,844 5,571 Total $ 703,164 $ 485,178 (1) Includes $47.1 million of brokered deposits at September 30, 2016 and $27.9 million at December 31, 2015. (2) Time deposits that meet or exceed the FDIC insurance limit. (3) Includes $171.0 million of deposits acquired in the Branch Purchase. |
Schedule of Maturities of Time Deposits for Future Periods | Scheduled maturities of time deposits at September 30, 2016 for future periods ending are as follows: At September 30, 2016 2016 $ 21,580 2017 76,878 2018 54,256 2019 17,151 2020 13,625 Thereafter 14,228 Total $ 197,718 |
Schedule of Interest Expense by Deposit Category | Interest expense by deposit category for the three and nine months ended September 30, 2016 and 2015 is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Interest-bearing checking $ 7 $ 8 $ 20 $ 21 Savings and money market 257 262 757 760 Certificates of deposit 544 596 1,634 1,644 Total $ 808 $ 866 $ 2,411 $ 2,425 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments to Extend Credit | The following table provides a summary of the Company’s commitments at September 30, 2016 and December 31, 2015: COMMITMENTS TO EXTEND CREDIT September 30, December 31, REAL ESTATE LOANS 2016 2015 Commercial $ 232 $ 1,988 Construction and development 58,279 44,109 One-to-four-family (includes held for sale) 134,454 76,013 Home equity 25,023 18,089 Multi-family 425 429 Total real estate loans 218,413 140,628 CONSUMER LOANS 8,490 5,754 COMMERCIAL BUSINESS LOANS Commercial and industrial 33,233 39,537 Warehouse lending 34,402 27,601 Total commercial business loans 67,635 67,138 Total commitments to extend credit $ 294,538 $ 213,520 |
Fair Value of Financial Instr32
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Available For Sale Securities Measured At Fair Value On A Recurring Basis | The following tables present securities available-for-sale measured at fair value on a recurring basis at September 30, 2016 and December 31, 2015: Securities Available-for-Sale At September 30, 2016 Level 1 Level 2 Level 3 Total U.S. agency securities $ — $ 8,273 $ — $ 8,273 Municipal bonds — 17,949 — 17,949 Corporate securities — 7,613 — 7,613 U.S. Small Business Administration securities — 6,010 — 6,010 Mortgage-backed securities — 40,917 — 40,917 Total $ — $ 80,762 $ — $ 80,762 Securities Available-for-Sale At December 31, 2015 Level 1 Level 2 Level 3 Total U.S. agency securities $ — $ 6,035 $ — $ 6,035 Municipal bonds — 18,891 — 18,891 Corporate securities — 3,433 — 3,433 U.S. Small Business Administration securities — 4,023 — 4,023 Mortgage-backed securities — 22,835 — 22,835 Total $ — $ 55,217 $ — $ 55,217 |
Fair Value, Mortgage Loans Held for Sale | The following table presents mortgage loans held for sale measured at fair value on a recurring basis at September 30, 2016 and December 31, 2015: Mortgage Loans Held for Sale Level 1 Level 2 Level 3 Total September 30, 2016 $ — $ 77,129 $ — $ 77,129 December 31, 2015 $ — $ 44,925 $ — $ 44,925 |
Schedule of Interest Rate Lock Commitments Measured at Fair Value on Recurring Basis | The following tables present the fair value of interest rate lock commitments with customers, individual forward sale commitments with investors, and paired off commitments with investors measured at their fair value on a recurring basis at September 30, 2016 and December 31, 2015: Interest Rate Lock Commitments with Customers Level 1 Level 2 Level 3 Total September 30, 2016 $ — $ — $ 1,850 $ 1,850 December 31, 2015 $ — $ — $ 698 $ 698 |
Forward Sale Commitments with Investors Measured at Fair Value On A Recurring Basis | Individual Forward Sale Commitments with Investors Level 1 Level 2 Level 3 Total September 30, 2016 $ — $ (385 ) $ (40 ) $ (425 ) December 31, 2015 $ — $ 3 $ 74 $ 77 |
Paired Off Commitments with Investors Measured at Fair Value On A Recurring Basis | Paired Off Commitments with Investors Level 1 Level 2 Level 3 Total September 30, 2016 $ — $ (189 ) $ — $ (189 ) December 31, 2015 $ — $ 30 $ — $ 30 |
Schedule of Impaired Loans and Other Real Estate Owned | The following table presents impaired loans measured at fair value on a nonrecurring basis for which a nonrecurring change in fair value has been recorded during the reporting period. The amounts disclosed below represent the fair values at the time the nonrecurring fair value measurements were made, and not necessarily the fair value as of the dates reported upon. Impaired Loans Level 1 Level 2 Level 3 Total September 30, 2016 $ — $ — $ 209 $ 209 December 31, 2015 $ — $ — $ 734 $ 734 |
Schedule of Fair Value of Financial Instruments Measured under a Level 3 Unobservable Input | Quantitative Information about Level 3 Fair Value Measurements - Shown below is the fair value of financial instruments measured under a Level 3 unobservable input on a recurring and nonrecurring basis at September 30, 2016 table: Level 3 Fair Value Instrument Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Weighted Average RECURRING Interest rate lock commitments with customers Quoted market prices Pull-through expectations 80% - 99% 93.4% Individual forward sale commitments with investors Quoted market prices Pull-through expectations 80% - 99% 93.4% NONRECURRING Impaired loans Fair value of underlying collateral Discount applied to the obtained appraisal 0% - 18.0% 0.0% |
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables provide a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and nine months ended September 30, 2016 and 2015: Three Months Ended September 30, Beginning Balance Purchases and Issuances Sales and Settlements Ending Balance Net change in fair value for gains/(losses) relating to items held at end of period 2016 Interest rate lock commitments with customers $ 2,058 $ 5,763 $ (5,971 ) $ 1,850 $ (208 ) Individual forward sale commitments with investors (3 ) (60 ) 23 (40 ) (37 ) 2015 Interest rate lock commitments with customers $ 934 $ 2,720 $ (2,797 ) $ 857 $ (77 ) Individual forward sale commitments with investors 110 (66 ) (6 ) 38 (72 ) Nine Months Ended September 30, Beginning Balance Purchases and Issuances Sales and Settlements Ending Balance Net change in fair value for gains/(losses) relating to items held at end of period 2016 Interest rate lock commitments with customers $ 698 $ 14,039 $ (12,887 ) $ 1,850 $ 1,152 Individual forward sale commitments with investors 74 (267 ) 153 (40 ) (114 ) 2015 Interest rate lock commitments with customers $ 396 $ 8,683 $ (8,222 ) $ 857 $ 461 Individual forward sale commitments with investors 12 21 5 38 26 |
Fair Value, by Balance Sheet Grouping | The following table provides estimated fair values of the Company’s financial instruments at September 30, 2016 and December 31, 2015: September 30, December 31, 2016 2015 Financial Assets Carrying Amount Fair Value Carrying Amount Fair Value Level 1 inputs: Cash and cash equivalents $ 16,513 $ 16,513 $ 24,455 $ 24,455 Certificates of deposit at other financial institutions 14,009 14,009 12,421 12,421 Level 2 inputs: Securities available-for-sale, at fair value 80,762 80,762 55,217 55,217 Loans held for sale, at fair value 77,129 77,129 44,925 44,925 FHLB stock, at cost 2,004 2,004 4,551 4,551 Accrued interest receivable 2,557 2,557 2,107 2,107 Individual forward sale commitments with investors — — 3 3 Paired off commitments with investors — — 30 30 Level 3 inputs: Loans receivable, net 592,800 621,772 502,535 566,209 Servicing rights, held at lower of cost or fair value 7,654 7,816 5,811 6,848 Fair value interest rate locks with customers 1,850 1,850 698 698 Individual forward sale commitments with investors — — 74 74 Financial Liabilities Level 2 inputs: Deposits 703,164 710,140 485,178 494,871 Borrowings 21,030 21,104 98,769 98,739 Subordinated note 10,000 9,550 10,000 9,550 Accrued interest payable 191 191 22 22 Individual forward sale commitments with investors 385 385 — — Paired off commitments with investors 189 189 — — Level 3 inputs: Individual forward sale commitments with investors 40 40 — — |
Employee Benefits (Tables)
Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Shares Under ESOP | Shares held by the ESOP at September 30, 2016 were as follows (shown as actual): Balances Allocated shares 102,359 Committed to be released shares 19,441 Unallocated shares 136,085 Total ESOP shares 257,885 Fair value of unallocated shares (in thousands) $ 3,703 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents a reconciliation of the components used to compute basic and diluted earnings per share for the three and nine months ended September 30, 2016 and 2015: At or For the Three Months Ended September 30, At or For the Nine Months Ended September 30, Numerator: 2016 2015 2016 2015 Net income (in thousands) $ 3,457 $ 1,995 $ 7,953 $ 6,859 Denominator: Basic weighted average common shares outstanding 2,851,147 2,984,164 2,901,572 2,967,284 Dilutive shares 87,292 55,843 84,102 42,108 Diluted weighted average common shares outstanding 2,938,439 3,040,007 2,985,674 3,009,392 Basic earnings per share $ 1.21 $ 0.67 $ 2.74 $ 2.31 Diluted earnings per share $ 1.18 $ 0.66 $ 2.66 $ 2.28 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Awards | The following table presents a summary of the Company’s stock option plan awards during the nine months ended September 30, 2016 (shown as actual): Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term In Years Aggregate Intrinsic Value Outstanding at January 1, 2016 306,900 $ 16.89 8.36 $ 2,794,570 Granted — — — — Less exercised 9,300 16.89 — 81,942 Forfeited or expired — — — — Outstanding at September 30, 2016 297,600 $ 16.89 7.61 $ 3,660,480 Expected to vest, assuming a 0.31% annual forfeiture rate 296,655 $ 16.89 7.61 $ 3,648,855 Exercisable at September 30, 2016 107,400 $ 16.89 7.61 $ 1,321,020 |
Summary of Nonvested Awards | The following table presents a summary of the Company’s nonvested awards during the nine months ended September 30, 2016 (shown as actual): Nonvested Shares Shares Weighted-Average Grant-Date Fair Value Per Share Weighted-Average Grant-Date Fair Value Nonvested at January 1, 2016 94,684 $ 16.89 $ 1,599,212 Granted 4,500 26.00 117,000 Less vested 30,421 16.89 513,811 Forfeited or expired — — — Nonvested at September 30, 2016 68,763 $ 17.49 $ 1,202,401 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following tables compare the Bank’s actual capital amounts and ratios at September 30, 2016 and December 31, 2015 to their minimum regulatory capital requirements and well capitalized regulatory capital at those dates (dollars in thousands): To be Well Capitalized Under Prompt Corrective Action Provisions For Capital Adequacy Purposes Bank Only Actual At September 30, 2016 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital (to risk-weighted assets) $ 91,077 13.46 % $ 54,127 8.00 % $ 67,659 10.00 % Tier 1 risk-based capital (to risk-weighted assets) $ 82,604 12.21 % $ 40,595 6.00 % $ 54,127 8.00 % Tier 1 leverage capital (to average assets) $ 82,604 10.33 % $ 31,994 4.00 % $ 39,992 5.00 % CET 1 capital (to risk-weighted assets) $ 82,604 12.21 % $ 30,446 4.50 % $ 43,978 6.50 % At December 31, 2015 Total risk-based capital (to risk-weighted assets) $ 85,570 15.51 % $ 44,132 8.00 % $ 55,164 10.00 % Tier 1 risk-based capital (to risk-weighted assets) $ 78,662 14.26 % $ 33,099 6.00 % $ 44,132 8.00 % Tier 1 leverage capital (to average assets) $ 78,662 12.14 % $ 25,924 4.00 % $ 32,406 5.00 % CET 1 capital (to risk-weighted assets) $ 78,662 14.26 % $ 24,824 4.50 % $ 35,857 6.50 % |
Basis of Presentation and Sum37
Basis of Presentation and Summary of Significant Accounting Policies (Details) | Sep. 30, 2016branchshares | Jan. 22, 2016 | Jul. 09, 2012shares |
Schedule of Accounting Policies [Line Items] | |||
Number of bank branches | 4 | ||
Percentage of common shares purchased under ESOP | 8.00% | ||
Total ESOP shares (in shares) | shares | 257,885 | 259,210 | |
Puget Sound [Member] | |||
Schedule of Accounting Policies [Line Items] | |||
Number of bank branches | 11 | ||
Number of Loan Production Facilities | 4 | ||
Tri-Cities, Washington [Member] | |||
Schedule of Accounting Policies [Line Items] | |||
Number of Loan Production Facilities | 1 |
Business Combination - Narrativ
Business Combination - Narrative (Details) | Jan. 22, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 01, 2015leasebranch |
Business Acquisition [Line Items] | ||||||||||
Number of bank branches | 4 | |||||||||
Acquired deposits | $ 171,000,000 | $ 703,164,000 | $ 703,164,000 | $ 485,178,000 | ||||||
Core deposit intangible | 1,857,000 | 1,857,000 | 0 | |||||||
Goodwill | 2,312,000 | 2,312,000 | $ 0 | |||||||
Amortization expense | 140,000 | $ 0 | 382,000 | $ 0 | ||||||
Bank of America | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Deposits | 186,364,000 | |||||||||
Number of bank branches acquired | branch | 2 | |||||||||
Number of leases acquired with the bank branches | lease | 3 | |||||||||
Acquired deposits | $ 171,000,000 | $ 171,000,000 | ||||||||
Cash and cash equivalents | 186,371,000 | |||||||||
Core deposit intangible increase in fair value | $ 100,000 | |||||||||
Core deposit intangible | 2,239,000 | |||||||||
Decrease to fair value adjustment of goodwill | 100,000 | |||||||||
Increase in amortization of core deposit intangible | $ 6,000 | |||||||||
Goodwill | $ 2,312,000 | |||||||||
Amortization period | 9 years | |||||||||
Bank of America | Acquired Book Value | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Deposits | $ 186,364,000 | |||||||||
Loans and associated interest receivables | 419,000 | |||||||||
Facilities and other assets, net of other liabilities | $ 778,000 | |||||||||
Deposit premium | 2.50% | |||||||||
Cash and cash equivalents | $ 180,356,000 | |||||||||
Core deposit intangible | 0 | |||||||||
Goodwill | 0 | |||||||||
Bank of America | Fair Value Adjustments | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Deposits | 0 | |||||||||
Deposit premium | 4,818,000 | |||||||||
Cash and cash equivalents | 0 | |||||||||
Core deposit intangible | 2,239,000 | |||||||||
Goodwill | 2,312,000 | |||||||||
Bank of America | Carrying Amount | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Deposits | 186,364,000 | |||||||||
Cash and cash equivalents | 180,356,000 | |||||||||
Core deposit intangible | 2,239,000 | $ 2,200,000 | $ 2,200,000 | $ 2,100,000 | ||||||
Goodwill | $ 2,312,000 |
Business Combination - Estimate
Business Combination - Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jan. 22, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Business Acquisition [Line Items] | ||||||
Core deposit intangible | $ 1,857 | $ 0 | ||||
Goodwill | 2,312 | 0 | ||||
Total assets acquired | 181,575 | $ 0 | ||||
Noninterest-bearing accounts | 153,095 | 72,247 | ||||
Interest-bearing accounts | 550,069 | $ 412,931 | ||||
Total liabilities assumed | $ 186,393 | $ 0 | ||||
Bank of America | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 186,371 | |||||
Premises and equipment, net | 964 | |||||
Accrued interest receivable | 2 | |||||
Core deposit intangible | 2,239 | |||||
Goodwill | 2,312 | |||||
Other assets | 103 | |||||
Total deposits | 186,364 | |||||
Accrued interest payable | 7 | |||||
Other liabilities | $ 22 | |||||
Estimated amortization period | 9 years | |||||
Acquired Book Value | Bank of America | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 180,356 | |||||
Loans receivable | 417 | |||||
Premises and equipment, net | 697 | |||||
Accrued interest receivable | 2 | |||||
Core deposit intangible | 0 | |||||
Goodwill | 0 | |||||
Other assets | 103 | |||||
Total assets acquired | 181,575 | |||||
Noninterest-bearing accounts | 79,966 | |||||
Interest-bearing accounts | 106,398 | |||||
Total deposits | 186,364 | |||||
Accrued interest payable | 7 | |||||
Other liabilities | 22 | |||||
Total liabilities assumed | 186,393 | |||||
Fair Value Adjustments | Bank of America | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | 0 | |||||
Loans receivable | 0 | |||||
Premises and equipment, net | 267 | |||||
Accrued interest receivable | 0 | |||||
Core deposit intangible | 2,239 | |||||
Goodwill | 2,312 | |||||
Other assets | 0 | |||||
Total assets acquired | 4,818 | |||||
Noninterest-bearing accounts | 0 | |||||
Interest-bearing accounts | 0 | |||||
Total deposits | 0 | |||||
Accrued interest payable | 0 | |||||
Other liabilities | 0 | |||||
Total liabilities assumed | 0 | |||||
Amount Recorded | Bank of America | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | 180,356 | |||||
Loans receivable | 417 | |||||
Premises and equipment, net | 964 | |||||
Accrued interest receivable | 2 | |||||
Core deposit intangible | 2,239 | $ 2,200 | $ 2,100 | |||
Goodwill | 2,312 | |||||
Other assets | 103 | |||||
Total assets acquired | 186,393 | |||||
Noninterest-bearing accounts | 79,966 | |||||
Interest-bearing accounts | 106,398 | |||||
Total deposits | 186,364 | |||||
Accrued interest payable | 7 | |||||
Other liabilities | 22 | |||||
Total liabilities assumed | $ 186,393 |
Business Combination - Amount R
Business Combination - Amount Recognized for Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jan. 22, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||
Core deposit intangible | $ 1,857 | $ 0 | |
Goodwill | $ 2,312 | $ 0 | |
Bank of America | |||
Business Acquisition [Line Items] | |||
Purchase price | $ 6,015 | ||
Cash and cash equivalents | 186,371 | ||
Acquired loans | 417 | ||
Premises and equipment, net | 964 | ||
Accrued interest receivable | 2 | ||
Core deposit intangible | 2,239 | ||
Other assets | 103 | ||
Deposits | (186,364) | ||
Accrued interest payable | (7) | ||
Other liabilities | (22) | ||
Total fair value of identifiable net assets | 3,703 | ||
Goodwill | $ 2,312 |
Business Combination - Expected
Business Combination - Expected Amortization Expense (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Business Combinations [Abstract] | |
2,016 | $ 140 |
2,017 | 400 |
2,018 | 307 |
2,019 | 235 |
2,020 | 181 |
Thereafter | 594 |
Total | $ 1,857 |
Schedule of Available-for-sale
Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 79,563 | $ 55,097 |
Unrealized Gains | 1,297 | 473 |
Unrealized Losses | (98) | (353) |
Estimated Fair Values | 80,762 | 55,217 |
U.S. agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,158 | 6,134 |
Unrealized Gains | 115 | 0 |
Unrealized Losses | 0 | (99) |
Estimated Fair Values | 8,273 | 6,035 |
Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 17,452 | 18,531 |
Unrealized Gains | 499 | 373 |
Unrealized Losses | (2) | (13) |
Estimated Fair Values | 17,949 | 18,891 |
Corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,664 | 3,495 |
Unrealized Gains | 44 | 5 |
Unrealized Losses | (95) | (67) |
Estimated Fair Values | 7,613 | 3,433 |
U.S. Small Business Administration securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,863 | 4,011 |
Unrealized Gains | 147 | 23 |
Unrealized Losses | 0 | (11) |
Estimated Fair Values | 6,010 | 4,023 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 40,426 | 22,926 |
Unrealized Gains | 492 | 72 |
Unrealized Losses | (1) | (163) |
Estimated Fair Values | $ 40,917 | $ 22,835 |
Securities Available-for-sale -
Securities Available-for-sale - Investments with Unrealized Losses Policy (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016USD ($)security | Dec. 31, 2015USD ($)security | |
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized loss position, Less than 12 Months, Fair Value | $ 2,413,000 | $ 20,689,000 |
Unrealized loss position, Less than 12 Months, Unrealized Losses | (33,000) | (161,000) |
Unrealized loss position, 12 Months or Longer, Fair Value | 1,435,000 | 7,779,000 |
Unrealized loss position, 12 Months or Longer, Unrealized Losses | (65,000) | (192,000) |
Unrealized loss position, Fair Value | 3,848,000 | 28,468,000 |
Unrealized loss position, Unrealized Losses | $ (98,000) | $ (353,000) |
Investments with unrealized losses of less than one year | security | 4 | 17 |
Investments with unrealized losses of more than one year | security | 2 | 8 |
Other than temporary impairment losses, investments | $ 0 | $ 0 |
U.S. agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized loss position, Less than 12 Months, Fair Value | 2,107,000 | |
Unrealized loss position, Less than 12 Months, Unrealized Losses | (31,000) | |
Unrealized loss position, 12 Months or Longer, Fair Value | 3,928,000 | |
Unrealized loss position, 12 Months or Longer, Unrealized Losses | (68,000) | |
Unrealized loss position, Fair Value | 6,035,000 | |
Unrealized loss position, Unrealized Losses | (99,000) | |
Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized loss position, Less than 12 Months, Fair Value | 176,000 | 956,000 |
Unrealized loss position, Less than 12 Months, Unrealized Losses | (2,000) | (1,000) |
Unrealized loss position, 12 Months or Longer, Fair Value | 0 | 293,000 |
Unrealized loss position, 12 Months or Longer, Unrealized Losses | 0 | (12,000) |
Unrealized loss position, Fair Value | 176,000 | 1,249,000 |
Unrealized loss position, Unrealized Losses | (2,000) | (13,000) |
Corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized loss position, Less than 12 Months, Fair Value | 965,000 | 994,000 |
Unrealized loss position, Less than 12 Months, Unrealized Losses | (30,000) | (6,000) |
Unrealized loss position, 12 Months or Longer, Fair Value | 1,435,000 | 1,439,000 |
Unrealized loss position, 12 Months or Longer, Unrealized Losses | (65,000) | (61,000) |
Unrealized loss position, Fair Value | 2,400,000 | 2,433,000 |
Unrealized loss position, Unrealized Losses | (95,000) | (67,000) |
U.S. Small Business Administration securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized loss position, Less than 12 Months, Fair Value | 990,000 | |
Unrealized loss position, Less than 12 Months, Unrealized Losses | (11,000) | |
Unrealized loss position, 12 Months or Longer, Fair Value | 0 | |
Unrealized loss position, 12 Months or Longer, Unrealized Losses | 0 | |
Unrealized loss position, Fair Value | 990,000 | |
Unrealized loss position, Unrealized Losses | (11,000) | |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized loss position, Less than 12 Months, Fair Value | 1,272,000 | 15,642,000 |
Unrealized loss position, Less than 12 Months, Unrealized Losses | (1,000) | (112,000) |
Unrealized loss position, 12 Months or Longer, Fair Value | 0 | 2,119,000 |
Unrealized loss position, 12 Months or Longer, Unrealized Losses | 0 | (51,000) |
Unrealized loss position, Fair Value | 1,272,000 | 17,761,000 |
Unrealized loss position, Unrealized Losses | $ (1,000) | $ (163,000) |
Securities Available-for-sale44
Securities Available-for-sale - Schedule of Available for Sale Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Total securities contractual maturity | ||
Amortized Costs | ||
Total | $ 79,563 | $ 55,097 |
Fair Value | ||
Total | 80,762 | 55,217 |
Federal National Mortgage Association (“FNMA”) | ||
Amortized Costs | ||
Mortgage-backed securities | 18,646 | 12,515 |
Fair Value | ||
Mortgage-backed securities | 18,866 | 12,466 |
Federal Home Loan Mortgage Corporation (“FHLMC”) | ||
Amortized Costs | ||
Mortgage-backed securities | 14,069 | 4,524 |
Fair Value | ||
Mortgage-backed securities | 14,239 | 4,501 |
Government National Mortgage Association (“GNMA”) | ||
Amortized Costs | ||
Mortgage-backed securities | 7,711 | 5,887 |
Fair Value | ||
Mortgage-backed securities | 7,812 | 5,868 |
Federal agency securities | ||
Amortized Costs | ||
Due after one year through five years | 4,000 | 0 |
Due after five years through ten years | 4,158 | 6,134 |
Fair Value | ||
Due after one year through five years | 4,003 | 0 |
Due after five years through ten years | 4,270 | 6,035 |
Municipal bonds | ||
Amortized Costs | ||
Due in one year or less | 978 | 991 |
Due after one year through five years | 5,578 | 3,904 |
Due after five years through ten years | 8,499 | 7,807 |
Due after ten years | 2,397 | 5,829 |
Fair Value | ||
Due in one year or less | 979 | 997 |
Due after one year through five years | 5,718 | 3,954 |
Due after five years through ten years | 8,784 | 7,981 |
Due after ten years | 2,468 | 5,959 |
Corporate securities | ||
Amortized Costs | ||
Due after one year through five years | 5,669 | 1,500 |
Due after five years through ten years | 1,995 | 1,995 |
Fair Value | ||
Due after one year through five years | 5,700 | 1,490 |
Due after five years through ten years | 1,913 | 1,943 |
U.S. Small Business Administration securities | ||
Amortized Costs | ||
Due after five years through ten years | 5,863 | 4,011 |
Fair Value | ||
Due after five years through ten years | $ 6,010 | $ 4,023 |
Securities Available-for-sale45
Securities Available-for-sale - Schedule of Sales of Available for Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds | $ 13,577 | $ 0 | $ 13,577 | $ 4,178 |
Gross Gains | 149 | 0 | 149 | 76 |
Gross (Losses) | $ (3) | $ 0 | $ (3) | $ 0 |
Loans Receivable and Allowanc46
Loans Receivable and Allowance For Loan Losses - Composition of Loan Portfolio (Details) $ in Thousands | Sep. 30, 2016USD ($)segmentunit | Dec. 31, 2015USD ($)segmentunit |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 604,218 | $ 511,282 |
Allowance for loan losses | (9,586) | (7,785) |
Deferred costs, fees, and discounts, net | (1,832) | (962) |
Loans receivable, net | $ 592,800 | $ 502,535 |
Number of loan portfolio segments | segment | 3 | 3 |
Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of units in real estate property | unit | 5 | 5 |
CONSUMER LOANS | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 170,576 | $ 158,322 |
Indirect home improvement | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 104,524 | 103,064 |
Solar | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 34,806 | 29,226 |
Marine | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 29,268 | 23,851 |
Other consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,978 | 2,181 |
COMMERCIAL BUSINESS LOANS | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 117,124 | 80,436 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 68,526 | 59,619 |
Warehouse lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 48,598 | 20,817 |
Residential Portfolio Segment | REAL ESTATE LOANS | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 316,518 | 272,524 |
Residential Portfolio Segment | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 55,794 | 50,034 |
Residential Portfolio Segment | Construction and development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 90,201 | 80,806 |
Residential Portfolio Segment | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 19,649 | 16,540 |
Residential Portfolio Segment | One-to-four-family (excludes loans held for sale) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 116,886 | 102,921 |
Residential Portfolio Segment | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 33,988 | $ 22,223 |
Loans Receivable and Allowanc47
Loans Receivable and Allowance For Loan Losses - Narrative (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016USD ($)segmentunitloancommitment | Sep. 30, 2016USD ($)segmentcontractunitcommitment | Dec. 31, 2015USD ($)segmentunitloancommitment | Sep. 30, 2015contract | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of loan portfolio segments | segment | 3 | 3 | 3 | |
TDR loans on accrual | loan | 2 | |||
TDR loan balances | $ | $ 57 | $ 57 | $ 734 | |
Number of commitments to lend additional funds on impaired loans. | commitment | 0 | 0 | 0 | |
TDR loans modified in previous 12 months | contract | 0 | 0 | ||
TDR loans on accrual | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
TDR loans on accrual | loan | 1 | 1 | ||
TDR loan balances | $ | $ 57 | $ 57 | $ 209 | |
Multi-family | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of units in real estate property | unit | 5 | 5 | 5 | |
Non Accrual Financing Receivables [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
TDR loans on accrual | loan | 1 | |||
TDR loan balances | $ | $ 0 | $ 0 | $ 525 |
Loans Receivable and Allowanc48
Loans Receivable and Allowance For Loan Losses - Schedule of Allowance for Loan Losses by Loan Categories (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Real Estate | |||||
Beginning balance | $ 8,951 | $ 6,927 | $ 7,785 | $ 6,090 | |
Provision for loan loss | 600 | 600 | 1,800 | 1,800 | |
Charge-offs | (297) | (350) | (866) | (1,377) | |
Recoveries | 332 | 211 | 867 | 875 | |
Net recoveries (charge-offs) | 35 | (139) | 1 | (502) | |
Loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Loans collectively evaluated for impairment | 9,586 | 7,388 | 9,586 | 7,388 | |
Ending balance | 9,586 | 7,388 | 9,586 | 7,388 | |
LOANS RECEIVABLE | |||||
Loans individually evaluated for impairment | 209 | 736 | 209 | 736 | |
Loans collectively evaluated for impairment | 604,009 | 489,973 | 604,009 | 489,973 | |
Total loans receivable | 604,218 | 490,709 | 604,218 | 490,709 | $ 511,282 |
Real Estate | |||||
Real Estate | |||||
Beginning balance | 3,477 | 2,378 | 2,874 | 1,872 | |
Provision for loan loss | 242 | 328 | 794 | 891 | |
Charge-offs | (65) | 0 | (65) | (248) | |
Recoveries | 64 | 1 | 115 | 192 | |
Net recoveries (charge-offs) | (1) | 1 | 50 | (56) | |
Loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Loans collectively evaluated for impairment | 3,718 | 2,707 | 3,718 | 2,707 | |
Ending balance | 3,718 | 2,707 | 3,718 | 2,707 | |
LOANS RECEIVABLE | |||||
Loans individually evaluated for impairment | 209 | 736 | 209 | 736 | |
Loans collectively evaluated for impairment | 316,309 | 251,653 | 316,309 | 251,653 | |
Total loans receivable | 316,518 | 252,389 | 316,518 | 252,389 | |
Consumer | |||||
Real Estate | |||||
Beginning balance | 2,039 | 1,444 | 1,681 | 1,431 | |
Provision for loan loss | 1 | 225 | 519 | 515 | |
Charge-offs | (232) | (350) | (801) | (1,095) | |
Recoveries | 262 | 204 | 671 | 672 | |
Net recoveries (charge-offs) | 30 | (146) | (130) | (423) | |
Loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Loans collectively evaluated for impairment | 2,070 | 1,523 | 2,070 | 1,523 | |
Ending balance | 2,070 | 1,523 | 2,070 | 1,523 | |
LOANS RECEIVABLE | |||||
Loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Loans collectively evaluated for impairment | 170,576 | 154,504 | 170,576 | 154,504 | |
Total loans receivable | 170,576 | 154,504 | 170,576 | 154,504 | 158,322 |
Commercial Business | |||||
Real Estate | |||||
Beginning balance | 1,823 | 2,148 | 1,396 | 1,184 | |
Provision for loan loss | 252 | (591) | 604 | 402 | |
Charge-offs | 0 | 0 | 0 | (34) | |
Recoveries | 6 | 6 | 81 | 11 | |
Net recoveries (charge-offs) | 6 | 6 | 81 | (23) | |
Loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Loans collectively evaluated for impairment | 2,081 | 1,563 | 2,081 | 1,563 | |
Ending balance | 2,081 | 1,563 | 2,081 | 1,563 | |
LOANS RECEIVABLE | |||||
Loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Loans collectively evaluated for impairment | 117,124 | 83,816 | 117,124 | 83,816 | |
Total loans receivable | 117,124 | 83,816 | 117,124 | 83,816 | $ 80,436 |
Unallocated | |||||
Real Estate | |||||
Beginning balance | 1,612 | 957 | 1,834 | 1,603 | |
Provision for loan loss | 105 | 638 | (117) | (8) | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net recoveries (charge-offs) | 0 | 0 | 0 | 0 | |
Loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Loans collectively evaluated for impairment | 1,717 | 1,595 | 1,717 | 1,595 | |
Ending balance | 1,717 | 1,595 | 1,717 | 1,595 | |
LOANS RECEIVABLE | |||||
Loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Loans collectively evaluated for impairment | 0 | 0 | 0 | 0 | |
Total loans receivable | $ 0 | $ 0 | $ 0 | $ 0 |
Loans Receivable and Allowanc49
Loans Receivable and Allowance For Loan Losses - Schedule of Aging Analysis of Past Due Loans (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 1,067,000 | $ 1,638,000 | |
Current | 603,151,000 | 509,644,000 | |
Total loans receivable | 604,218,000 | 511,282,000 | $ 490,709,000 |
REAL ESTATE LOANS | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans receivable | 316,518,000 | 272,524,000 | |
Total real estate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 256,000 | 797,000 | |
Current | 316,262,000 | 271,727,000 | |
Total loans receivable | 316,518,000 | 272,524,000 | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 55,794,000 | 50,034,000 | |
Total loans receivable | 55,794,000 | 50,034,000 | |
Construction and development | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 90,201,000 | 80,806,000 | |
Total loans receivable | 90,201,000 | 80,806,000 | |
Home equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 256,000 | 224,000 | |
Current | 19,393,000 | 16,316,000 | |
Total loans receivable | 19,649,000 | 16,540,000 | |
One-to-four-family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 573,000 | |
Current | 116,886,000 | 102,348,000 | |
Total loans receivable | 116,886,000 | 102,921,000 | |
Multi-family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 33,988,000 | 22,223,000 | |
Total loans receivable | 33,988,000 | 22,223,000 | |
CONSUMER LOANS | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 811,000 | 841,000 | |
Current | 169,765,000 | 157,481,000 | |
Total loans receivable | 170,576,000 | 158,322,000 | 154,504,000 |
Indirect home improvement | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 675,000 | 707,000 | |
Current | 103,849,000 | 102,357,000 | |
Total loans receivable | 104,524,000 | 103,064,000 | |
Solar | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 130,000 | 106,000 | |
Current | 34,676,000 | 29,120,000 | |
Total loans receivable | 34,806,000 | 29,226,000 | |
Marine | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 28,000 | |
Current | 29,268,000 | 23,823,000 | |
Total loans receivable | 29,268,000 | 23,851,000 | |
Other consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 6,000 | 0 | |
Current | 1,972,000 | 2,181,000 | |
Total loans receivable | 1,978,000 | 2,181,000 | |
COMMERCIAL BUSINESS LOANS | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 117,124,000 | 80,436,000 | |
Total loans receivable | 117,124,000 | 80,436,000 | $ 83,816,000 |
Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 68,526,000 | 59,619,000 | |
Total loans receivable | 68,526,000 | 59,619,000 | |
Warehouse lending | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 48,598,000 | 20,817,000 | |
Total loans receivable | 48,598,000 | 20,817,000 | |
30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 512,000 | 609,000 | |
30-59 Days Past Due | Total real estate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 141,000 | 205,000 | |
30-59 Days Past Due | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
30-59 Days Past Due | Construction and development | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
30-59 Days Past Due | Home equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 141,000 | 157,000 | |
30-59 Days Past Due | One-to-four-family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 48,000 | |
30-59 Days Past Due | Multi-family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
30-59 Days Past Due | CONSUMER LOANS | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 371,000 | 404,000 | |
30-59 Days Past Due | Indirect home improvement | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 307,000 | 307,000 | |
30-59 Days Past Due | Solar | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 59,000 | 69,000 | |
30-59 Days Past Due | Marine | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 28,000 | |
30-59 Days Past Due | Other consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 5,000 | 0 | |
30-59 Days Past Due | COMMERCIAL BUSINESS LOANS | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
30-59 Days Past Due | Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
30-59 Days Past Due | Warehouse lending | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 264,000 | 263,000 | |
60-89 Days Past Due | Total real estate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 7,000 | 20,000 | |
60-89 Days Past Due | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
60-89 Days Past Due | Construction and development | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
60-89 Days Past Due | Home equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 7,000 | 20,000 | |
60-89 Days Past Due | One-to-four-family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
60-89 Days Past Due | Multi-family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
60-89 Days Past Due | CONSUMER LOANS | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 257,000 | 243,000 | |
60-89 Days Past Due | Indirect home improvement | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 185,000 | 243,000 | |
60-89 Days Past Due | Solar | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 71,000 | 0 | |
60-89 Days Past Due | Marine | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
60-89 Days Past Due | Other consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,000 | 0 | |
60-89 Days Past Due | COMMERCIAL BUSINESS LOANS | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
60-89 Days Past Due | Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
60-89 Days Past Due | Warehouse lending | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 291,000 | 766,000 | |
90 Days or More Past Due | Total real estate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 108,000 | 572,000 | |
90 Days or More Past Due | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
90 Days or More Past Due | Construction and development | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
90 Days or More Past Due | Home equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 108,000 | 47,000 | |
90 Days or More Past Due | One-to-four-family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 525,000 | |
90 Days or More Past Due | Multi-family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
90 Days or More Past Due | CONSUMER LOANS | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 183,000 | 194,000 | |
90 Days or More Past Due | Indirect home improvement | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 183,000 | 157,000 | |
90 Days or More Past Due | Solar | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 37,000 | |
90 Days or More Past Due | Marine | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
90 Days or More Past Due | Other consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
90 Days or More Past Due | COMMERCIAL BUSINESS LOANS | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
90 Days or More Past Due | Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
90 Days or More Past Due | Warehouse lending | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Non-Accrual | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 594,000 | 1,017,000 | |
Non-Accrual | Total real estate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 171,000 | 572,000 | |
Non-Accrual | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Non-Accrual | Construction and development | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Non-Accrual | Home equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 47,000 | ||
Non-Accrual | Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 171,000 | ||
Non-Accrual | One-to-four-family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 525,000 | |
Non-Accrual | Multi-family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Non-Accrual | CONSUMER LOANS | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 423,000 | 445,000 | |
Non-Accrual | Indirect home improvement | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 387,000 | 408,000 | |
Non-Accrual | Solar | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 36,000 | 37,000 | |
Non-Accrual | Marine | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Non-Accrual | Other consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Non-Accrual | COMMERCIAL BUSINESS LOANS | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Non-Accrual | Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Non-Accrual | Warehouse lending | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 0 | $ 0 |
Loans Receivable and Allowanc50
Loans Receivable and Allowance For Loan Losses - Schedule of Financing Receivables, Related Allowance Recorded and No Related Allowance Recorded (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Unpaid Principal Balance, with no related allowance recorded | $ 221 | $ 221 | |||
Impaired Financing Receivable, Write-downs [Abstract] | |||||
Write-downs with no related allowance recorded | (12) | (12) | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Recorded Investment, with no related allowance recorded | 209 | 209 | |||
Impaired Financing Receivable, Specific Reserve [Abstract] | |||||
Specific reserve | 0 | 0 | |||
Impaired Financing Receivable, Adjusted Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Adjusted Recorded Investment | 209 | 209 | |||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, Average Recorded Investment | 210 | $ 1,132 | 212 | $ 1,592 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired Financing Receivable, Interest Income, Cash Basis Method | 1 | 41 | 4 | 109 | |
Home Equity | |||||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Unpaid Principal Balance, with no related allowance recorded | 152 | 152 | |||
Impaired Financing Receivable, Write-downs [Abstract] | |||||
Write-downs with no related allowance recorded | 0 | 0 | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Recorded Investment, with no related allowance recorded | 152 | 152 | |||
Impaired Financing Receivable, Specific Reserve [Abstract] | |||||
Specific reserve | 0 | 0 | |||
Impaired Financing Receivable, Adjusted Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Adjusted Recorded Investment | 152 | 152 | |||
Commercial | |||||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
YTD Average Recorded Investment, with no related allowance recorded | 0 | 363 | 0 | 734 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
YTD Interest Income Recognized, with no related allowance recorded | 0 | 38 | 0 | 76 | |
Home equity | |||||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
YTD Average Recorded Investment, with no related allowance recorded | 152 | 33 | 154 | 64 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
YTD Interest Income Recognized, with no related allowance recorded | 0 | 2 | 2 | 7 | |
One-to-four-family | |||||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Unpaid Principal Balance, with no related allowance recorded | 69 | 69 | $ 801 | ||
Impaired Financing Receivable, Write-downs [Abstract] | |||||
Write-downs with no related allowance recorded | (12) | (12) | (67) | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Recorded Investment, with no related allowance recorded | 57 | 57 | 734 | ||
Impaired Financing Receivable, Specific Reserve [Abstract] | |||||
Specific reserve | 0 | 0 | 0 | ||
Impaired Financing Receivable, Adjusted Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Adjusted Recorded Investment | 57 | 57 | $ 734 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
YTD Average Recorded Investment, with no related allowance recorded | 58 | 736 | 58 | 778 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
YTD Interest Income Recognized, with no related allowance recorded | $ 1 | $ 1 | 2 | 26 | |
Total real estate loans | |||||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
YTD Average Recorded Investment, with no related allowance recorded | 212 | 1,576 | |||
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method | 4 | 109 | |||
Commercial and industrial | |||||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
YTD Average Recorded Investment, with related allowance recorded | 0 | 16 | |||
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
YTD Interest Income Recognized, with allowance recorded | $ 0 | $ 0 |
Loans Receivable and Allowanc51
Loans Receivable and Allowance For Loan Losses - Schedule of Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 604,218 | $ 511,282 | $ 490,709 |
REAL ESTATE LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 316,518 | 272,524 | |
Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 55,794 | 50,034 | |
Construction and development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 90,201 | 80,806 | |
Home equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 19,649 | 16,540 | |
One-to-four-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 116,886 | 102,921 | |
Multi-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 33,988 | 22,223 | |
CONSUMER LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 170,576 | 158,322 | 154,504 |
Indirect home improvement | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 104,524 | 103,064 | |
Solar | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 34,806 | 29,226 | |
Marine | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 29,268 | 23,851 | |
Other consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,978 | 2,181 | |
COMMERCIAL BUSINESS LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 117,124 | 80,436 | $ 83,816 |
Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 68,526 | 59,619 | |
Warehouse lending | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 48,598 | 20,817 | |
Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 596,806 | 503,917 | |
Pass | REAL ESTATE LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 313,166 | 270,246 | |
Pass | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 52,613 | 50,034 | |
Pass | Construction and development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 90,201 | 79,100 | |
Pass | Home equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 19,478 | 16,493 | |
Pass | One-to-four-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 116,886 | 102,396 | |
Pass | Multi-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 33,988 | 22,223 | |
Pass | CONSUMER LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 170,153 | 157,877 | |
Pass | Indirect home improvement | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 104,137 | 102,656 | |
Pass | Solar | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 34,770 | 29,189 | |
Pass | Marine | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 29,268 | 23,851 | |
Pass | Other consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,978 | 2,181 | |
Pass | COMMERCIAL BUSINESS LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 113,487 | 75,794 | |
Pass | Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 64,889 | 54,977 | |
Pass | Warehouse lending | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 48,598 | 20,817 | |
Watch | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,696 | 4,058 | |
Watch | REAL ESTATE LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,181 | 1,706 | |
Watch | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,181 | 0 | |
Watch | Construction and development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 1,706 | |
Watch | Home equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Watch | One-to-four-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Watch | Multi-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Watch | CONSUMER LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Watch | Indirect home improvement | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Watch | Solar | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Watch | Marine | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Watch | Other consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Watch | COMMERCIAL BUSINESS LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 515 | 2,352 | |
Watch | Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 515 | 2,352 | |
Watch | Warehouse lending | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 335 | |
Special Mention | REAL ESTATE LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Special Mention | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Special Mention | Construction and development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Special Mention | Home equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Special Mention | One-to-four-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Special Mention | Multi-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Special Mention | CONSUMER LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Special Mention | Indirect home improvement | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Special Mention | Solar | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Special Mention | Marine | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Special Mention | Other consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Special Mention | COMMERCIAL BUSINESS LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 335 | |
Special Mention | Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 335 | |
Special Mention | Warehouse lending | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,716 | 2,972 | |
Substandard | REAL ESTATE LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 171 | 572 | |
Substandard | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Substandard | Construction and development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Substandard | Home equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 171 | 47 | |
Substandard | One-to-four-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 525 | |
Substandard | Multi-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Substandard | CONSUMER LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 423 | 445 | |
Substandard | Indirect home improvement | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 387 | 408 | |
Substandard | Solar | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 36 | 37 | |
Substandard | Marine | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Substandard | Other consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Substandard | COMMERCIAL BUSINESS LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,122 | 1,955 | |
Substandard | Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,122 | 1,955 | |
Substandard | Warehouse lending | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Doubtful | REAL ESTATE LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Doubtful | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Doubtful | Construction and development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Doubtful | Home equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Doubtful | One-to-four-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Doubtful | Multi-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Doubtful | CONSUMER LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Doubtful | Indirect home improvement | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Doubtful | Solar | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Doubtful | Marine | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Doubtful | Other consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Doubtful | COMMERCIAL BUSINESS LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Doubtful | Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Doubtful | Warehouse lending | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Loss | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Loss | REAL ESTATE LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Loss | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Loss | Construction and development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Loss | Home equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Loss | One-to-four-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Loss | Multi-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Loss | CONSUMER LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Loss | Indirect home improvement | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Loss | Solar | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Loss | Marine | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Loss | Other consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Loss | COMMERCIAL BUSINESS LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Loss | Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Loss | Warehouse lending | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 0 | $ 0 |
Loans Receivable and Allowanc52
Loans Receivable and Allowance For Loan Losses - Schedule of Troubled Debt Restructurings Accrual and Non-accrual (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016USD ($)loan | Sep. 30, 2016USD ($)contract | Dec. 31, 2015USD ($)loan | Sep. 30, 2015contract | |
Financing Receivable, Modifications [Line Items] | ||||
Number of TDR loans modified in previous 12 months | contract | 0 | 0 | ||
Total TDR loan balance | $ | $ 57 | $ 57 | $ 734 | |
TDR loans on accrual | loan | 2 | |||
TDR loans on accrual | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total TDR loan balance | $ | $ 57 | 57 | $ 209 | |
TDR loans on accrual | loan | 1 | 1 | ||
TDR loans on non-accrual | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total TDR loan balance | $ | $ 0 | $ 0 | $ 525 | |
TDR loans on accrual | loan | 1 |
Servicing Rights - Narrative (D
Servicing Rights - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Servicing Asset | $ 7,654,000 | $ 7,654,000 | $ 5,811,000 | ||
Contractually specific servicing fees, late fees, and other ancillary fees | 534,000 | $ 343,000 | 1,411,000 | $ 857,000 | |
Mortgage, commercial and consumer servicing rIghts | |||||
Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
The unpaid principal balances of mortgage loans serviced | 882,200,000 | 882,200,000 | 636,100,000 | ||
Fair market value of the mortgage servicing rights’ asset | $ 7,800,000 | $ 7,800,000 | $ 6,800,000 |
Servicing Rights - Schedule of
Servicing Rights - Schedule of Servicing Rights (Details) - Mortgage, commercial and consumer servicing rIghts - Carrying Amount - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset [Roll Forward] | ||||
Beginning balance | $ 6,751 | $ 4,569 | $ 5,811 | $ 3,061 |
Additions | 1,095 | 920 | 2,927 | 2,823 |
Servicing rights amortized | (408) | (263) | (1,086) | (658) |
Recovery on servicing rights | 216 | 0 | 2 | 0 |
Ending balance | $ 7,654 | $ 5,226 | $ 7,654 | $ 5,226 |
Servicing Rights - Valuation As
Servicing Rights - Valuation Assumptions (Details) - Mortgage, commercial and consumer servicing rIghts | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Weighted average discount rate | 9.50% | 8.50% | 8.50% |
Conditional prepayment rate (“CPR”) | 16.40% | 12.50% | 12.20% |
Weighted average life in years | 5 years 2 months 1 day | 6 years 5 months 1 day |
Servicing Rights - Changes in V
Servicing Rights - Changes in Valuation Assumptions (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Basis Points Drop in Note Rate, Assumption One | 0.50% | 0.50% | |
Basis Points Drop in Note Rate, Assumption Two | 1.00% | 1.00% | |
Mortgage, commercial and consumer servicing rIghts | |||
Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Aggregate portfolio principal balance | $ 877,427 | $ 631,812 | |
Weighted average rate of note | 3.90% | 4.00% | |
Conditional prepayment rate | 16.40% | 12.50% | 12.20% |
Conditional prepayment rate, 0.5% Adverse Change | 25.30% | 17.80% | |
Conditional prepayment rate, 1.0% Adverse Change | 35.20% | 25.30% | |
Fair value MSR | $ 7,811 | $ 6,813 | |
Fair value MSR, 0.5% Adverse Change | 6,044 | 5,660 | |
Fair value of MSR, 1.0% Adverse Change | $ 4,859 | $ 4,557 | |
Percentage of MSR | 0.90% | 1.10% | |
Percentage of MSR, 0.5% Adverse Change | 0.70% | 0.90% | |
Percentage of MSR, 1.0% Adverse Change | 0.60% | 0.70% | |
Discount rate | 9.50% | 8.50% | 8.50% |
Discount rate, 0.5% Adverse Change | 10.00% | 9.00% | |
Discount rate, 1.0% Adverse Change | 10.50% | 9.50% | |
Fair value MSR, 0.5% Adverse Change | $ 7,685 | $ 6,678 | |
Fair value MSR, 1.0% Adverse Change | $ 7,562 | $ 6,548 | |
Percentage of MSR, 0.5% Adverse Change | 0.90% | 1.10% | |
Percentage of MSR, 1.0% Adverse Change | 0.90% | 1.00% |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Derivative [Line Items] | |||||
Derivative instruments, (loss) gain on sale of loans | $ (697) | $ 346 | $ (1,680) | $ (1,100) | |
Not Designated as Hedging Instrument | Fallout adjusted interest rate lock commitments with customers | |||||
Derivative [Line Items] | |||||
Notional | 65,259 | 65,259 | $ 34,154 | ||
Asset | 1,850 | 1,850 | 698 | ||
Liability | 0 | 0 | 0 | ||
Not Designated as Hedging Instrument | Mandatory and best effort forward commitments with investors | |||||
Derivative [Line Items] | |||||
Notional | 29,824 | 29,824 | 24,135 | ||
Asset | 0 | 0 | 74 | ||
Liability | 40 | 40 | 0 | ||
Not Designated as Hedging Instrument | Forward TBA mortgage-backed securities | |||||
Derivative [Line Items] | |||||
Notional | 99,500 | 99,500 | 49,000 | ||
Asset | 0 | 0 | 3 | ||
Liability | 385 | 385 | 0 | ||
Not Designated as Hedging Instrument | TBA mortgage-backed securities forward sales paired off with investors | |||||
Derivative [Line Items] | |||||
Notional | 30,000 | 30,000 | 28,500 | ||
Asset | 0 | 0 | 30 | ||
Liability | $ 189 | $ 189 | $ 0 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other Real Estate [Roll Forward] | ||||
Beginning balance | $ 0 | $ 0 | ||
Net loans transferred to OREO | 525,000 | 0 | ||
Capitalized costs | 7,000 | 0 | ||
Gross proceeds from sale of OREO | (682,000) | 0 | ||
Ending balance | $ 0 | $ 0 | 0 | 0 |
Gains (Losses) on Sales of Investment Real Estate | $ 0 | $ 0 | $ 150,000 | $ 0 |
Other Real Estate Owned - Narra
Other Real Estate Owned - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($)property | Sep. 30, 2015USD ($)property | Sep. 30, 2016USD ($)property | Sep. 30, 2015USD ($)property | |
Banking and Thrift [Abstract] | ||||
Number of other real estate owned properties | property | 0 | 0 | 0 | 0 |
Loss on sale of OREO | $ 0 | $ 0 | $ 150,000 | $ 0 |
Other real estate owned holding costs (recovery) | $ 0 | $ 0 | $ 0 | $ 0 |
Deposits - Schedule of Deposit
Deposits - Schedule of Deposit Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jan. 22, 2016 | Dec. 31, 2015 |
Banking and Thrift [Abstract] | |||
Noninterest-bearing checking | $ 143,251 | $ 66,676 | |
Interest-bearing checking | 63,682 | 34,098 | |
Savings | 50,348 | 30,126 | |
Money market | 238,321 | 159,605 | |
Certificates of deposit less than $100,000 | 93,953 | 65,175 | |
Certificates of deposit of $100,000 through $250,000 | 76,855 | 91,317 | |
Certificates of deposit of $250,000 and over | 26,910 | 32,610 | |
Escrow accounts related to mortgages serviced | 9,844 | 5,571 | |
Total deposits | 703,164 | $ 171,000 | 485,178 |
Brokered deposits | $ 47,100 | $ 27,900 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Time Deposits for Future Periods (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Banking and Thrift [Abstract] | |
2,016 | $ 21,580 |
2,017 | 76,878 |
2,018 | 54,256 |
2,019 | 17,151 |
2,020 | 13,625 |
Thereafter | 14,228 |
Total | $ 197,718 |
Deposits - Securities Pledged a
Deposits - Securities Pledged as Collateral Policy (Details) | Sep. 30, 2016USD ($)security | Dec. 31, 2015USD ($) |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Number of securities pledged (in securities) | security | 13 | |
Securities pledged as collateral for public deposits, fair value | $ 15,700,000 | |
Deposits held at Federal Reserve Bank | 12,600,000 | $ 3,000,000 |
Washington State | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Washington State public deposits | 6,600,000 | |
Collateral requirement | $ 746,000 |
Deposits - Schedule of Interest
Deposits - Schedule of Interest Expense by Deposit Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Banking and Thrift [Abstract] | ||||
Interest-bearing checking | $ 7 | $ 8 | $ 20 | $ 21 |
Savings and money market | 257 | 262 | 757 | 760 |
Certificates of deposit | 544 | 596 | 1,634 | 1,644 |
Total | $ 808 | $ 866 | $ 2,411 | $ 2,425 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Commitments to Extend Credit (Details) - Commitments to Extend Credit - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | $ 294,538 | $ 213,520 |
REAL ESTATE LOANS | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 218,413 | 140,628 |
Commercial | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 232 | 1,988 |
Construction and development | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 58,279 | 44,109 |
One-to-four-family | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 134,454 | 76,013 |
Home equity | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 25,023 | 18,089 |
Commercial/Multi-family | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 425 | 429 |
CONSUMER LOANS | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 8,490 | 5,754 |
COMMERCIAL BUSINESS LOANS | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 67,635 | 67,138 |
Commercial and industrial | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 33,233 | 39,537 |
Warehouse lending | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | $ 34,402 | $ 27,601 |
Commitments and Contingencies65
Commitments and Contingencies - Narrative (Details) | 9 Months Ended | |
Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Loss Contingencies [Line Items] | ||
Severance agreement, period of base compensation disbursed as lump sum payment (in months) | 24 months | |
Change of control agreement, notice required to cancel agreement (in months) | 24 months | |
Change of control agreement, period of base compensation disbursed as lump sum payment (in months) | 12 months | |
Pending material legal actions | 0 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Change of control agreement, executive payment, period prior to change in control (in months) | 6 months | |
Change of control agreement, executive payment, period following change in control (in months) | 12 months | |
Commitments to Extend Credit | ||
Loss Contingencies [Line Items] | ||
Reserve for estimated losses | $ 166,000 | $ 147,000 |
Guarantee on loans sold | ||
Loss Contingencies [Line Items] | ||
Reserve for estimated losses | $ 825,000 | $ 561,000 |
Fair Value of Financial Instr66
Fair Value of Financial Instruments - Schedule of Available for Sale Securities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | $ 80,762 | $ 55,217 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 80,762 | 55,217 |
Fair Value, Measurements, Recurring | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 8,273 | 6,035 |
Fair Value, Measurements, Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 17,949 | 18,891 |
Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 7,613 | 3,433 |
Fair Value, Measurements, Recurring | U.S. Small Business Administration securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 6,010 | 4,023 |
Fair Value, Measurements, Recurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 40,917 | 22,835 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Small Business Administration securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 80,762 | 55,217 |
Fair Value, Measurements, Recurring | Level 2 | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 8,273 | 6,035 |
Fair Value, Measurements, Recurring | Level 2 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 17,949 | 18,891 |
Fair Value, Measurements, Recurring | Level 2 | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 7,613 | 3,433 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Small Business Administration securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 6,010 | 4,023 |
Fair Value, Measurements, Recurring | Level 2 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 40,917 | 22,835 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Small Business Administration securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | $ 0 | $ 0 |
Fair Value of Financial Instr67
Fair Value of Financial Instruments - Schedule of Mortgage loans held for sale (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale, at fair value | $ 77,129 | $ 44,925 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale, at fair value | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale, at fair value | 77,129 | 44,925 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale, at fair value | $ 0 | $ 0 |
Fair Value of Financial Instr68
Fair Value of Financial Instruments - Schedule of Interest Rate Lock Commitments Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - Interest Rate Lock Commitments - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Lock Commitments with Customers | $ 1,850 | $ 698 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Lock Commitments with Customers | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Lock Commitments with Customers | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Lock Commitments with Customers | $ 1,850 | $ 698 |
Fair Value of Financial Instr69
Fair Value of Financial Instruments - Forward Sale Commitments with Investors (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individual Forward Sale Commitments with Investors | $ (425) | $ 77 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individual Forward Sale Commitments with Investors | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individual Forward Sale Commitments with Investors | (385) | 3 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individual Forward Sale Commitments with Investors | $ (40) | $ 74 |
Fair Value of Financial Instr70
Fair Value of Financial Instruments - Paired Off Commitments with Investors (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Paired Off Commitments with Investors | $ (189) | $ 30 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Paired Off Commitments with Investors | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Paired Off Commitments with Investors | (189) | 30 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Paired Off Commitments with Investors | $ 0 | $ 0 |
Fair Value of Financial Instr71
Fair Value of Financial Instruments - Schedule of Impaired Loans and OREO (Details) - Carrying Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | $ 209 | $ 734 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | $ 209 | $ 734 |
Fair Value of Financial Instr72
Fair Value of Financial Instruments - Discount Rate (Details) - Level 3 | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value, Measurements, Nonrecurring | Impaired Loans | Fair Value of Underlying Collateral | Minimum | Discount applied to the obtained appraisal | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Level 3 Fair Value Instrument | 0.00% |
Fair Value, Measurements, Nonrecurring | Impaired Loans | Fair Value of Underlying Collateral | Maximum | Discount applied to the obtained appraisal | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Level 3 Fair Value Instrument | 18.00% |
Fair Value, Measurements, Nonrecurring | Impaired Loans | Fair Value of Underlying Collateral | Weighted Average | Discount applied to the obtained appraisal | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Level 3 Fair Value Instrument | 0.00% |
Fair Value, Measurements, Recurring | Interest Rate Lock Commitments | Quoted Market Prices | Minimum | Pull-through expectations | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Level 3 Fair Value Instrument | 80.00% |
Fair Value, Measurements, Recurring | Interest Rate Lock Commitments | Quoted Market Prices | Maximum | Pull-through expectations | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Level 3 Fair Value Instrument | 99.00% |
Fair Value, Measurements, Recurring | Interest Rate Lock Commitments | Quoted Market Prices | Weighted Average | Pull-through expectations | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Level 3 Fair Value Instrument | 93.40% |
Fair Value, Measurements, Recurring | Mandatory and best effort forward commitments with investors | Quoted Market Prices | Minimum | Pull-through expectations | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Level 3 Fair Value Instrument | 80.00% |
Fair Value, Measurements, Recurring | Mandatory and best effort forward commitments with investors | Quoted Market Prices | Maximum | Pull-through expectations | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Level 3 Fair Value Instrument | 99.00% |
Fair Value, Measurements, Recurring | Mandatory and best effort forward commitments with investors | Quoted Market Prices | Weighted Average | Pull-through expectations | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Level 3 Fair Value Instrument | 93.40% |
Fair Value of Financial Instr73
Fair Value of Financial Instruments - Fair Value Level 3 Rollforward (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fallout adjusted interest rate lock commitments with customers | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | $ 2,058 | $ 934 | $ 698 | $ 396 |
Purchases and Issuances | 5,763 | 2,720 | 14,039 | 8,683 |
Sales and Settlements | (5,971) | (2,797) | (12,887) | (8,222) |
Ending Balance | 1,850 | 857 | 1,850 | 857 |
Net change in fair value for gains/(losses) relating to items held at end of period | (208) | (77) | 1,152 | 461 |
Mandatory and best effort forward commitments with investors | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | (3) | 110 | 74 | 12 |
Purchases and Issuances | (60) | (66) | (267) | 21 |
Sales and Settlements | 23 | (6) | 153 | 5 |
Ending Balance | (40) | 38 | (40) | 38 |
Net change in fair value for gains/(losses) relating to items held at end of period | $ (37) | $ (72) | $ (114) | $ 26 |
Fair Value of Financial Instr74
Fair Value of Financial Instruments - Fair Value By Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Certificates of deposit at other financial institutions | $ 14,009 | $ 12,421 |
Securities available-for-sale, at fair value | 80,762 | 55,217 |
Subordinated note | 10,000 | 10,000 |
Financial Assets | Carrying Amount | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 16,513 | 24,455 |
Certificates of deposit at other financial institutions | 14,009 | 12,421 |
Financial Assets | Carrying Amount | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 80,762 | 55,217 |
Loans held for sale, at fair value | 77,129 | 44,925 |
FHLB stock, at cost | 2,004 | 4,551 |
Accrued interest receivable | 2,557 | 2,107 |
Forward sale commitments with investors | 0 | 3 |
Paired off commitments with investors | 0 | 30 |
Financial Assets | Carrying Amount | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Forward sale commitments with investors | 0 | 74 |
Loans receivable, net | 592,800 | 502,535 |
Servicing rights, held at lower of cost or fair value | 7,654 | 5,811 |
Fair value interest rate locks with customers | 1,850 | 698 |
Financial Assets | Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 16,513 | 24,455 |
Certificates of deposit at other financial institutions | 14,009 | 12,421 |
Financial Assets | Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 80,762 | 55,217 |
Loans held for sale, at fair value | 77,129 | 44,925 |
FHLB stock, at cost | 2,004 | 4,551 |
Accrued interest receivable | 2,557 | 2,107 |
Forward sale commitments with investors | 0 | 3 |
Paired off commitments with investors | 0 | 30 |
Financial Assets | Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Forward sale commitments with investors | 0 | 74 |
Loans receivable, net | 621,772 | 566,209 |
Servicing rights, held at lower of cost or fair value | 7,816 | 6,848 |
Fair value interest rate locks with customers | 1,850 | 698 |
Financial Liabilities | Carrying Amount | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Paired off commitments with investors | 189 | 0 |
Deposits | 703,164 | 485,178 |
Borrowings | 21,030 | 98,769 |
Subordinated note | 10,000 | 10,000 |
Accrued interest payable | 191 | 22 |
Commitments with investors | 385 | 0 |
Financial Liabilities | Carrying Amount | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commitments with investors | 40 | 0 |
Financial Liabilities | Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Paired off commitments with investors | 189 | 0 |
Deposits | 710,140 | 494,871 |
Borrowings | 21,104 | 98,739 |
Subordinated note | 9,550 | 9,550 |
Accrued interest payable | 191 | 22 |
Commitment with investors | 385 | 0 |
Financial Liabilities | Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commitment with investors | $ 40 | $ 0 |
Employee Benefits - Narrative (
Employee Benefits - Narrative (Details) - USD ($) | Jan. 02, 2012 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2012 | Jul. 09, 2012 |
Compensation and Retirement Disclosure [Abstract] | ||||||||
Employee stock ownership plan (ESOP), requisite service period and 12 months | 1000 hours | 1000 hours | ||||||
Employee stock ownership plan (ESOP), debt structure, employer loan, amount | $ 2,600,000 | |||||||
Employee stock ownership plan shares purchased | 259,210 | |||||||
Employee stock ownership plan (ESOP), weighted average purchase price of shares purchased (in dollars per share) | $ 10.17 | |||||||
Amortization period of ESOP loan | 10 years | |||||||
Employee stock ownership plan (ESOP), debt structure, employer loan, interest rate | 2.30% | |||||||
Employee stock ownership plan (ESOP), periodic installment payments from esop, amount paid | $ 251,000 | |||||||
Employee stock ownership plan (ESOP), interest payments from esop | $ 0 | $ 44,000 | ||||||
ESOP compensation expense for allocated shares | $ 204,000 | $ 148,000 | $ 529,000 | $ 408,000 |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Shares Under ESOP (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jul. 09, 2012 |
Employee Stock Ownership Plan (ESOP), Shares in ESOP [Abstract] | ||
Allocated shares | 102,359 | |
Committed to be released shares | 19,441 | |
Unallocated shares | 136,085 | |
Total ESOP shares | 257,885 | 259,210 |
Fair value of unallocated shares (in thousands) | $ 3,703 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 3,457 | $ 1,995 | $ 7,953 | $ 6,859 |
Denominator for basic earnings per share- weighted average common shares outstanding (shares) | 2,851,147 | 2,984,164 | 2,901,572 | 2,967,284 |
Dilutive shares (in shares) | 87,292 | 55,843 | 84,102 | 42,108 |
Denominator for diluted earnings per share- weighted average common shares outstanding (shares) | 2,938,439 | 3,040,007 | 2,985,674 | 3,009,392 |
Basic earnings per share (in dollars per share) | $ 1.21 | $ 0.67 | $ 2.74 | $ 2.31 |
Diluted earnings per share (in dollars per share) | $ 1.18 | $ 0.66 | $ 2.66 | $ 2.28 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - 2013 Equity Incentive Plan - USD ($) | Jan. 01, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Jun. 30, 2014 | May 08, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense | $ 195,000 | $ 186,000 | $ 588,000 | $ 560,000 | |||||
Stock option, fair value assumption, expected life | 8 years 4 months 10 days | ||||||||
Remaining weighted-average vesting period | 7 years 7 months 9 days | ||||||||
Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized (in shares) | 324,013 | ||||||||
Market price per share (in dollars per share) | $ 16.89 | ||||||||
Award vesting period | 5 years | ||||||||
Annual award vesting percentage | 20.00% | ||||||||
Award contractual life | 10 years | ||||||||
Expiration period | 10 years | ||||||||
Stock option, fair value assumption, expected life | 6 years 6 months | ||||||||
Unrecognized compensation cost, nonvested awards | 597,000 | $ 597,000 | |||||||
Remaining weighted-average vesting period | 2 years 7 months | ||||||||
Restricted stock awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized (in shares) | 129,605 | ||||||||
Market price per share (in dollars per share) | $ 26 | $ 16.89 | |||||||
Award vesting period | 5 years | ||||||||
Unrecognized compensation cost, nonvested awards | $ 970,000 | $ 970,000 | |||||||
Number of shares retired (in shares) | 4,500 | ||||||||
Weighted-average vesting period | 2 years 3 months | ||||||||
Restricted stock awards | Director | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period | 3 years |
Stock-Based Compensation - Opti
Stock-Based Compensation - Option Activity (Details) - 2013 Equity Incentive Plan - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expected Forfeiture Rate | 0.31% | |
Shares | ||
Outstanding, beginning balance (in shares) | 306,900 | |
Granted (in shares) | 0 | |
Less exercised (in shares) | 9,300 | |
Outstanding, ending balance (in shares) | 297,600 | 306,900 |
Expected to vest, assuming a 0.31% annual forfeiture rate (in shares) | 296,655 | |
Exercisable (in shares) | 107,400 | |
Weighted-Average Exercise Price | ||
Outstanding, beginning balance (in dollars per share) | $ 16.89 | |
Granted (in dollars per share) | 0 | |
Less exercised (in dollars per share) | 16.89 | |
Outstanding, ending balance (in dollars per share) | 16.89 | $ 16.89 |
Expected to vest, assuming a 0.31% annual forfeiture rate (in dollars per share) | 16.89 | |
Exercisable (in dollars per share) | $ 16.89 | |
Weighted-Average Remaining Contractual Term In Years | ||
Outstanding, beginning balance | 8 years 4 months 10 days | |
Outstanding, ending balance | 7 years 7 months 9 days | |
Expected to vest, assuming a 0.31% annual forfeiture rate | 7 years 7 months 9 days | |
Exercisable | 7 years 7 months 9 days | |
Aggregate Intrinsic Value | ||
Beginning balance | $ 2,794,570 | |
Granted | $ 0 | |
Less exercised | $ 81,942 | |
Ending balance | 3,660,480 | $ 2,794,570 |
Expected to vest, assuming a 0.31% annual forfeiture rate | 3,648,855 | |
Exercisable | $ 1,321,020 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Awards (Details) - Restricted stock awards | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Shares | |
Nonvested, Beginning balance (in shares) | shares | 94,684 |
Granted (shares) | shares | 4,500 |
Less vested (in shares) | shares | 30,421 |
Nonvested, Ending balance (in shares) | shares | 68,763 |
Weighted-Average Grant-Date Fair Value Per Share | |
Nonvested, Beginning balance (in dollars per share) | $ / shares | $ 16.89 |
Granted (in dollars per share) | $ / shares | 26 |
Less vested (in dollars per share) | $ / shares | 16.89 |
Nonvested, Ending balance (in dollars per share) | $ / shares | $ 17.49 |
Weighted-Average Grant-Date Fair Value | |
Nonvested, Beginning balance | $ | $ 1,599,212 |
Granted | $ | 117,000 |
Less vested | $ | 513,811 |
Nonvested, Endng balance | $ | $ 1,202,401 |
Regulatory Capital - Schedule o
Regulatory Capital - Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Equity Tier 1 to Risk Weighted Assets, Capital Conservation Buffer | 2.50% | |
Total risk-based capital, Ratio | 12.40% | |
Tier 1 risk-based capital, Ratio | 11.10% | |
Tier 1 leverage capital, Ratio | 9.40% | |
CET 1 capital, Ratio | 11.10% | |
Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total risk-based capital, Amount | $ 91,077 | $ 85,570 |
Total risk-based capital, Ratio | 13.46% | 15.51% |
Total risk-based capital, For Capital Adequacy Purposes, Amount | $ 54,127 | $ 44,132 |
Total risk-based capital, For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Total risk-based capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 67,659 | $ 55,164 |
Total risk-based capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier 1 risk-based capital, Amount | $ 82,604 | $ 78,662 |
Tier 1 risk-based capital, Ratio | 12.21% | 14.26% |
Tier 1 risk-based capital, For Capital Adequacy Purposes, Amount | $ 40,595 | $ 33,099 |
Tier 1 risk-based capital, For Capital Adequacy Purposes, Ratio | 6.00% | 6.00% |
Tier 1 risk-based capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 54,127 | $ 44,132 |
Tier 1 risk-based capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Tier 1 leverage capital | $ 82,604 | $ 78,662 |
Tier 1 leverage capital, Ratio | 10.33% | 12.14% |
Tier 1 leverage capital, For Capital Adequacy Purposes, Amount | $ 31,994 | $ 25,924 |
Tier 1 leverage capital, For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Tier 1 leverage capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 39,992 | $ 32,406 |
Tier 1 leverage capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
CET 1 capital, Amount | $ 82,604 | $ 78,662 |
CET 1 capital, Ratio | 12.21% | 14.26% |
CET 1 capital, For Capital Adequacy Purposes, Amount | $ 30,446 | $ 24,824 |
CET 1 capital, For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
CET 1 capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 43,978 | $ 35,857 |
CET 1 capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Regulatory Capital - Regulatory
Regulatory Capital - Regulatory Capital Ratios Policy (Details) | Sep. 30, 2016 |
Regulatory Capital Requirements [Abstract] | |
CET 1 capital conversion buffer phased in | 0.625% |
Tier 1 leverage capital, Ratio | 9.40% |
Tier 1 risk-based capital, Ratio | 11.10% |
Total risk-based capital, Ratio | 12.40% |
CET 1 capital, Ratio | 11.10% |