Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 03, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | FS Bancorp, Inc. | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Entity Central Index Key | 1,530,249 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Entity Common Stock, Shares Outstanding | 3,708,660 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 3,429 | $ 3,043 |
Interest-bearing deposits at other financial institutions | 18,548 | 15,872 |
Total cash and cash equivalents | 21,977 | 18,915 |
Certificates of deposit at other financial institutions | 17,611 | 18,108 |
Securities available-for-sale, at fair value | 98,465 | 82,480 |
Loans held for sale, at fair value | 55,191 | 53,463 |
Loans receivable, net | 881,200 | 761,558 |
Accrued interest receivable | 4,071 | 3,566 |
Premises and equipment, net | 16,273 | 15,458 |
Federal Home Loan Bank ("FHLB") stock, at cost | 7,742 | 2,871 |
Bank owned life insurance ("BOLI"), net | 13,498 | 10,328 |
Servicing rights, held at the lower of cost or fair value | 8,352 | 6,795 |
Goodwill | 2,312 | 2,312 |
Core deposit intangible, net | 1,164 | 1,317 |
Other assets | 4,686 | 4,612 |
TOTAL ASSETS | 1,132,542 | 981,783 |
LIABILITIES | ||
Noninterest-bearing accounts | 184,357 | 186,890 |
Interest-bearing accounts | 685,756 | 642,952 |
Total deposits | 870,113 | 829,842 |
Borrowings | 106,526 | 7,529 |
Principal amount | 10,000 | 10,000 |
Unamortized debt issuance costs | (145) | (155) |
Total subordinated note less unamortized debt issuance costs | 9,855 | 9,845 |
Deferred tax liability, net | 27 | 607 |
Other liabilities | 16,650 | 11,958 |
Total liabilities | 1,003,171 | 859,781 |
COMMITMENTS AND CONTINGENCIES (NOTE 7) | ||
STOCKHOLDER'S 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; 3,708,660 and 3,680,152 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively | 37 | 37 |
Additional paid in capital | 56,344 | 55,135 |
Retained Earnings (Accumulated Deficit) | 76,102 | 68,422 |
Accumulated other comprehensive loss, net of tax | (2,127) | (475) |
Unearned shares - Employee Stock Ownership Plan ("ESOP") | (985) | (1,117) |
Total stockholders' equity | 129,371 | 122,002 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,132,542 | $ 981,783 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
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 | 3,708,660 | 3,680,152 |
Common stock, shares outstanding | 3,708,660 | 3,680,152 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
INTEREST INCOME | ||||
Loans receivable, including fees | $ 13,135,000 | $ 10,401,000 | $ 25,391,000 | $ 19,773,000 |
Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions | 887,000 | 736,000 | 1,619,000 | 1,397,000 |
Total interest and dividend income | 14,022,000 | 11,137,000 | 27,010,000 | 21,170,000 |
INTEREST EXPENSE | ||||
Deposits | 1,432,000 | 896,000 | 2,675,000 | 1,748,000 |
Borrowings | 496,000 | 106,000 | 576,000 | 145,000 |
Subordinated note | 169,000 | 169,000 | 337,000 | 336,000 |
Total interest expense | 2,097,000 | 1,171,000 | 3,588,000 | 2,229,000 |
NET INTEREST INCOME | 11,925,000 | 9,966,000 | 23,422,000 | 18,941,000 |
PROVISION FOR LOAN LOSSES | 450,000 | 0 | 800,000 | 0 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 11,475,000 | 9,966,000 | 22,622,000 | 18,941,000 |
NONINTEREST INCOME | ||||
Service charges and fee income | 670,000 | 1,003,000 | 1,329,000 | 1,864,000 |
Gain on sale of loans | 4,671,000 | 4,460,000 | 8,649,000 | 8,815,000 |
Gain on sale of investment securities | 0 | 237,000 | 113,000 | 237,000 |
Gain on sale of mortgage servicing rights ("MSR") | 0 | 958,000 | 0 | 958,000 |
Earnings on cash surrender value of BOLI | 88,000 | 71,000 | 170,000 | 140,000 |
Other noninterest income | 185,000 | 228,000 | 377,000 | 363,000 |
Total noninterest income | 5,614,000 | 6,957,000 | 10,638,000 | 12,377,000 |
NONINTEREST EXPENSE | ||||
Salaries and benefits | 7,671,000 | 6,916,000 | 14,719,000 | 13,034,000 |
Operations | 1,541,000 | 1,443,000 | 2,901,000 | 2,929,000 |
Occupancy | 704,000 | 645,000 | 1,353,000 | 1,289,000 |
Data processing | 679,000 | 593,000 | 1,319,000 | 1,160,000 |
Loan costs | 704,000 | 543,000 | 1,332,000 | 1,252,000 |
Professional and board fees | 463,000 | 402,000 | 907,000 | 883,000 |
Federal Deposit Insurance Corporation (FDIC) insurance | 90,000 | 119,000 | 131,000 | 253,000 |
Marketing and advertising | 215,000 | 182,000 | 364,000 | 320,000 |
Amortization of core deposit intangible | 77,000 | 100,000 | 153,000 | 200,000 |
Impairment on servicing rights | 0 | 1,000 | 0 | 1,000 |
Total noninterest expense | 12,144,000 | 10,944,000 | 23,179,000 | 21,321,000 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 4,945,000 | 5,979,000 | 10,081,000 | 9,997,000 |
PROVISION FOR INCOME TAXES | 688,000 | 1,620,000 | 1,502,000 | 3,045,000 |
NET INCOME | $ 4,257,000 | $ 4,359,000 | $ 8,579,000 | $ 6,952,000 |
Basic earnings per share (in dollars per share) | $ 1.19 | $ 1.50 | $ 2.40 | $ 2.40 |
Diluted earnings per share (in dollars per share) | $ 1.13 | $ 1.41 | $ 2.28 | $ 2.25 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 4,257 | $ 4,359 | $ 8,579 | $ 6,952 |
Securities available-for-sale: | ||||
Unrealized holding gain (loss) during year | (524) | 767 | (1,991) | 931 |
Income tax (provision) benefit related to unrealized holding gain | 113 | (270) | 428 | (328) |
Reclassification adjustment for realized gain included in net income | 0 | (237) | (113) | (237) |
Income tax provision related to reclassification for realized gain | 0 | 83 | 24 | 83 |
Other comprehensive income (loss), net of tax | (411) | 343 | (1,652) | 449 |
COMPREHENSIVE INCOME | $ 3,846 | $ 4,702 | $ 6,927 | $ 7,401 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Unearned ESOP Shares | Total |
Beginning Balance at (in shares) at Dec. 31, 2016 | 3,059,503 | |||||
Beginning balance at Dec. 31, 2016 | $ 31 | $ 27,334 | $ 55,584 | $ (536) | $ (1,380) | $ 81,033 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 6,952 | 6,952 | ||||
Dividends paid ($0.20 and $0.24 per share for the period ended June 30, 2017 and 2018, respectively) | (616) | (616) | ||||
Share-based compensation | 358 | 358 | ||||
Common stock repurchase | (275) | (275) | ||||
Common stock repurchased (in shares) | (6,198) | |||||
Stock options exercised | 369 | 369 | ||||
Stock options shares exercised (in shares) | 21,863 | |||||
Other comprehensive income (loss), net of tax | 449 | 449 | ||||
ESOP shares allocated | 422 | 132 | 554 | |||
Ending Balance at (in shares) at Jun. 30, 2017 | 3,075,168 | |||||
Ending balance at Jun. 30, 2017 | $ 31 | 28,208 | 61,920 | (87) | (1,248) | 88,824 |
Beginning Balance at (in shares) at Dec. 31, 2017 | 3,680,152 | |||||
Beginning balance at Dec. 31, 2017 | $ 37 | 55,135 | 68,422 | (475) | (1,117) | 122,002 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 8,579 | 8,579 | ||||
Dividends paid ($0.20 and $0.24 per share for the period ended June 30, 2017 and 2018, respectively) | (899) | (899) | ||||
Share-based compensation | 285 | 285 | ||||
Common stock repurchase | (250) | (250) | ||||
Common stock repurchased (in shares) | (4,325) | |||||
Stock options exercised | 554 | 554 | ||||
Stock options shares exercised (in shares) | 32,833 | |||||
Other comprehensive income (loss), net of tax | (1,652) | (1,652) | ||||
ESOP shares allocated | 620 | 132 | 752 | |||
Ending Balance at (in shares) at Jun. 30, 2018 | 3,708,660 | |||||
Ending balance at Jun. 30, 2018 | $ 37 | $ 56,344 | $ 76,102 | $ (2,127) | $ (985) | $ 129,371 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (in dollars per share) | $ 0.24 | $ 0.2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 8,579,000 | $ 6,952,000 |
Adjustments to reconcile net income to net cash from operating activities | ||
Provision for loan losses | 800,000 | 0 |
Depreciation, amortization and accretion | 2,640,000 | 1,514,000 |
Compensation expense related to stock options and restricted stock awards | 285,000 | 358,000 |
ESOP compensation expense for allocated shares | 752,000 | 554,000 |
Increase in cash surrender value of BOLI | (170,000) | (140,000) |
Gain on sale of loans held for sale | (8,567,000) | (8,815,000) |
Gain on sale of portfolio loans | (82,000) | 0 |
Gain on sale of investment securities | (113,000) | (237,000) |
Gain on sale of MSR | 0 | (958,000) |
Origination of loans held for sale | (313,203,000) | (311,088,000) |
Proceeds from sale of loans held for sale | 317,431,000 | 312,986,000 |
Impairment on servicing rights | 0 | 1,000 |
Changes in operating assets and liabilities | ||
Accrued interest receivable | (468,000) | (379,000) |
Other assets | (74,000) | (229,000) |
Other liabilities | 4,565,000 | 1,200,000 |
Net cash from operating activities | 12,375,000 | 1,719,000 |
Activity in securities available-for-sale: | ||
Proceeds from Sale of Debt Securities, Available-for-sale | 5,305,000 | 29,988,000 |
Maturities, prepayments, sales, and calls | 4,315,000 | 3,653,000 |
Purchases | (27,845,000) | (30,093,000) |
Maturities of certificates of deposit at other financial institutions | 496,000 | 1,240,000 |
Purchase of certificates of deposit at other financial institutions | 0 | (4,102,000) |
Loan originations and principal collections, net | (104,670,000) | (88,735,000) |
Purchase of portfolio loans | (21,618,000) | (26,220,000) |
Proceeds from sale of portfolio loans | 5,551,000 | 0 |
Purchase of premises and equipment, net | (1,649,000) | (323,000) |
Purchase of BOLI | (3,000,000) | 0 |
FHLB stock, net | (4,871,000) | (1,190,000) |
Proceeds from sale of MSR | 0 | 4,827,000 |
Net cash used by investing activities | (147,986,000) | (110,955,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in deposits | 40,271,000 | 73,104,000 |
Proceeds from borrowings | 513,985,000 | 217,260,000 |
Repayments of borrowings | (414,988,000) | (199,260,000) |
Dividends paid | (899,000) | (616,000) |
Proceeds from stock options exercised | 554,000 | 369,000 |
Common stock repurchased | (250,000) | (275,000) |
Net cash from financing activities | 138,673,000 | 90,582,000 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 3,062,000 | (18,654,000) |
CASH AND CASH EQUIVALENTS, beginning of period | 18,915,000 | 36,456,000 |
CASH AND CASH EQUIVALENTS, end of period | 21,977,000 | 17,802,000 |
Cash paid during the year for: | ||
Interest on deposits and borrowings | 3,513,000 | 2,228,000 |
Income taxes | 1,200,000 | 2,760,000 |
SUPPLEMENTARY DISCLOSURES OF NONCASH OPERATING, INVESTING AND FINANCING ACTIVITIES | ||
Change in unrealized (loss) gain on investment securities | (2,105,000) | 694,000 |
Retention of gross mortgage servicing rights from loan sales | $ 2,519,000 | $ 2,242,000 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | NOTE 1 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations - FS Bancorp, Inc. (the “Company”) was incorporated in September 2011 as the 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 13 branches, including the newly opened Silverdale, Washington branch which opened on April 12, 2018, and seven loan production offices in suburban communities in the greater Puget Sound area within 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 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, 2017, as filed with the SEC on March 16, 2018. 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 six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018, 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 significant change relate to the determination of the allowance for loan and lease losses, fair value of financial instruments, the valuation of servicing rights, and the deferred income taxes. 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 2018 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 operates in two business segments through the Bank: commercial and consumer banking and home lending. The Company’s business segments are determined based on the products and services provided, as well as the nature of the related business activities, and they reflect the manner in which financial information is regularly reviewed for the purpose of allocating resources and evaluating performance of the Company’s businesses. The results for these business segments are based on management’s accounting process, which assigns income statement items and assets to each responsible operating segment. This process is dynamic and is based on management’s view of the Company’s operations. See “Note 13 - Business Segments”. Subsequent Events - On July 17, 2018, FS Bancorp, Inc. announced the signing of a definitive merger agreement whereby the Company will acquire Anchor Bancorp (“Anchor”) in a stock and cash transaction valued at approximately $77.0 million. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals and approval of the agreement by the shareholders of Anchor. See “Note 16 – Definitive Agreement”. RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. Once adopted, we expect to report higher assets and liabilities as a result of including right-of-use assets and lease liabilities related to certain banking offices and certain equipment under noncancelable operating lease agreements. As of December 31, 2017, we would have reported an increase of approximately $4. 7 million in both assets and liabilities in the Consolidated Balance Sheets based on management’s estimate assuming the early adoption of this ASU. 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. Once adopted, we anticipate our allowance for loan losses to increase through a one‑time adjustment to retained earnings, however, until our evaluation is complete the magnitude of the increase will be unknown. In March 2017, the FASB issued ASU No. 2017‑08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310‑20): Premium Amortization on Purchased Callable Debt Securities . The ASU shortens the amortization period for certain callable debt securities held at a premium. The ASU will take effect for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The adoption of ASU No. 2017‑08 is not expected to have a material impact on the Company’s consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This ASU amends the hedge accounting recognition and presentation requirements in ASC 815 to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and (2) reduce the complexity of and simplify the application of hedge accounting by preparers. The amendments in this ASU permit hedge accounting for hedging relationships involving nonfinancial risk and interest rate risk by removing certain limitations in cash flow and fair value hedging relationships. In addition, the ASU requires an entity to present the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported. The amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018 and early adoption is permitted. The adoption of ASU No. 2017-12 is not expected to have a material impact on the Company's consolidated financial statements. In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740) . This ASU was issued to provide guidance on the income tax accounting implications of the Tax Cuts and Jobs Act (“Tax Act”) and allows for entities to report provisional amounts for specific income tax effects of the Act for which the accounting under Topic 740 was not yet complete but a reasonable estimate could be determined. A measurement period of one year is allowed to complete the accounting effects under Topic 740 and revise any previous estimates reported. Any provisional amounts or subsequent adjustments included in an entity’s financial statements during the measurement period should be included in income from continuing operations as an adjustment to tax expense in the reporting period the amounts are determined. The Company adopted this ASU with the provisional adjustments as reported in the Consolidated Financial Statements on Form 10-K as of December 31, 2017. As of June 30, 2018, the Company did not incur any adjustments to the provisional recognition. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718) : Improvements to Nonemployee Share-Based Payment Accounting. This ASU was issued to expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Previously, these awards were recorded at the fair value of consideration received or the fair value of the equity instruments issued and was measured as the earlier of the commitment date or date performance was completed. The amendments in this ASU require the awards to be measured at the grant-date fair value of the equity instrument. ASU No. 2018-07 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, but no earlier than an entity's adoption of Topic 606. The adoption of ASU No. 2018-07 is not expected to have a material impact on the Company's future consolidated financial statements. Application of New Accounting Guidance Adopted in 2018 On January 1, 2018, the Company adopted FASB issued ASU No. 2014‑09, Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively “ASC 606”) , which created 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. 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 past 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. For financial reporting purposes, the Company utilized the modified retrospective approach, meaning the ASU 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. As a bank holding company, key revenue sources, such as interest income on loans, investment securities and deposits, as well as other sources of income including loan fees, security sales, and derivatives have been identified as out of the scope of this new guidance. Management conducted an assessment of the revenue streams that were affected by the new guidance and identified those considered material and in scope to ensure compliance with the new guidance concluding those related to credit and debit card fees, and service charges and fees on deposit accounts. No additional changes to processes or procedures were identified for the recognition of revenues in scope. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. However, additional disclosures required by the ASU have been included in “Note 15 - Revenue from Contracts with Customers” to the Company’s consolidated financial statements. On January 1, 2018, the FASB issued ASU No. 2016‑01, Financial Instruments - Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance improves the recognition and measurement of financial instruments. This ASU requires public business entities to use the exit price notion 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. Exit price is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. 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 adoption of ASU No. 2016-01 did not have a material impact on the Company’s consolidated financial statements. The disclosures to the Company’s consolidated financial statements have been updated appropriately using the exit price notion in “Note 8 – Fair Value of Financial Instruments”. In May 2018, the FASB issued ASU No. 2018-06, Codification Improvements to Topic 942, Financial Services - Depository and Lending. This ASU updates outdated guidance related to the Office of Comptroller of the Currency’s (OCC) Banking Circular 202, Accounting for Net Deferred Tax Charges, as the guidance has been rescinded by OCC and is no longer relevant. The amendments in this ASU are effective immediately. The adoption of ASU No. 2018-06 is not expected to have a material impact on the Company's consolidated financial statements. |
Securities Available-for-sale
Securities Available-for-sale | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 2 - 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 June 30, 2018 and December 31, 2017: June 30, 2018 Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Values SECURITIES AVAILABLE-FOR-SALE U.S. agency securities $ 16,064 $ 23 $ (165) $ 15,922 Corporate securities 7,092 6 (203) 6,895 Municipal bonds 10,871 — (389) 10,482 Mortgage-backed securities 50,570 24 (1,531) 49,063 U.S. Small Business Administration securities 16,578 — (475) 16,103 Total securities available-for-sale $ 101,175 $ 53 $ (2,763) $ 98,465 December 31, 2017 Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Values SECURITIES AVAILABLE-FOR-SALE U.S. agency securities $ 9,077 $ 49 $ (11) $ 9,115 Corporate securities 7,113 9 (96) 7,026 Municipal bonds 12,720 148 (82) 12,786 Mortgage-backed securities 40,161 63 (490) 39,734 U.S. Small Business Administration securities 14,014 — (195) 13,819 Total securities available-for-sale $ 83,085 $ 269 $ (874) $ 82,480 At June 30, 2018, the Bank had pledged seven securities held at the FHLB of Des Moines with a carrying value of $10.8 million to secure Washington State public deposits of $7.4 million with a $3.0 million collateral requirement by the Washington Public Deposit Protection Commission. At Decemb er 31, 2017, t he Bank pledged nine securities held at the FHLB of Des Moines with a carrying value of $10.7 million to secure Washington State public deposits of $7.6 million with a $3.2 million minimum collateral requirement by the Washington Public Deposit Protection Commission. Investment securities that were in an unrealized loss position at June 30, 2018 and December 31, 2017 are presented in the following tables, based on the length of time individual securities have been in an unrealized loss position. Management believes 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. June 30, 2018 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses SECURITIES AVAILABLE-FOR-SALE U.S. agency securities $ 11,898 $ (165) $ — $ — $ 11,898 $ (165) Corporate securities 4,009 (87) 1,880 (116) 5,889 (203) Municipal bonds 8,659 (212) 1,823 (177) 10,482 (389) Mortgage-backed securities 27,807 (671) 17,532 (860) 45,339 (1,531) U.S. Small Business Administration securities 12,999 (358) 3,105 (117) 16,104 (475) Total $ 65,372 $ (1,493) $ 24,340 $ (1,270) $ 89,712 $ (2,763) December 31, 2017 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses SECURITIES AVAILABLE-FOR-SALE U.S. agency securities $ 2,987 $ (11) $ — $ — $ 2,987 $ (11) Corporate securities 4,102 (15) 1,915 (81) 6,017 (96) Municipal bonds 5,982 (82) — — 5,982 (82) Mortgage-backed securities 7,262 (61) 20,635 (429) 27,897 (490) U.S. Small Business Administration securities 11,876 (162) 1,943 (33) 13,819 (195) Total $ 32,209 $ (331) $ 24,493 $ (543) $ 56,702 $ (874) There were 45 investments with unrealized losses of less than one year, and 18 investments with unrealized losses of more than one year at June 30, 2018. There were 21 investments with unrealized losses of less than one year, and 17 investments with unrealized losses of more than one year at December 31, 2017. 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. Based on the Company’s evaluation of these securities, no other-than-temporary impairment was recorded for the six months ended June 30, 2018, or for the year ended December 31, 2017. The contractual maturities of securities available-for-sale at June 30, 2018 and December 31, 2017 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. June 30, 2018 December 31, 2017 Amortized Fair Amortized Fair Cost Value Cost Value U.S. agency securities Due after five years through ten years $ 11,066 $ 10,994 $ 4,079 $ 4,124 Due after ten years 4,998 4,928 4,998 4,991 Subtotal 16,064 15,922 9,077 9,115 Corporate securities Due after one year through five years 6,096 5,990 5,117 5,111 Due after five years through ten years 996 905 1,996 1,915 Subtotal 7,092 6,895 7,113 7,026 Municipal bonds Due after one year through five years 2,659 2,589 2,001 2,026 Due after five years through ten years 1,150 1,130 4,111 4,206 Due after ten years 7,062 6,763 6,608 6,554 Subtotal 10,871 10,482 12,720 12,786 Mortgage-backed securities Federal National Mortgage Association (“FNMA”) 33,586 32,675 23,310 23,091 Federal Home Loan Mortgage Corporation (“FHLMC”) 11,185 10,757 10,818 10,629 Government National Mortgage Association (“GNMA”) 5,799 5,631 6,033 6,014 Subtotal 50,570 49,063 40,161 39,734 U.S. Small Business Administration securities Due after five years through ten years 14,672 14,263 12,065 11,896 Due after ten years 1,906 1,840 1,949 1,923 Subtotal 16,578 16,103 14,014 13,819 Total $ 101,175 $ 98,465 $ 83,085 $ 82,480 The proceeds and resulting gains and losses, computed using specific identification from sales of securities available-for-sale for the three and six months ended June 30, 2018 and 2017 were as follows: Three Months Ended Six Months Ended June 30, 2018 June 30, 2018 Gross Gross Gross Gross Proceeds Gains (Losses) Proceeds Gains (Losses) Securities available-for-sale $ — $ — $ — $ 5,305 $ 113 $ — Three Months Ended Six Months Ended June 30, 2017 June 30, 2017 Gross Gross Gross Gross Proceeds Gains (Losses) Proceeds Gains (Losses) Securities available-for-sale $ $ $ — $ 29,988 $ 237 $ — |
Loans Receivable and Allowance
Loans Receivable and Allowance For Loan Losses | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Loans Receivable and Allowance For Loan Losses | NOTE 3 - LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES The composition of the loan portfolio was as follows at June 30, 2018 and December 31, 2017: June 30, December 31, 2018 2017 REAL ESTATE LOANS Commercial $ 64,599 $ 63,611 Construction and development 160,521 143,068 Home equity 25,460 25,289 One-to-four-family (excludes loans held for sale) 177,988 163,655 Multi-family 47,695 44,451 Total real estate loans 476,263 440,074 CONSUMER LOANS Indirect home improvement 147,067 130,176 Solar 42,189 41,049 Marine 48,591 35,397 Other consumer 2,027 2,046 Total consumer loans 239,874 208,668 COMMERCIAL BUSINESS LOANS Commercial and industrial 110,962 83,306 Warehouse lending 66,681 41,397 Total commercial business loans 177,643 124,703 Total loans receivable, gross 893,780 773,445 Allowance for loan losses (11,571) (10,756) Deferred costs and fees, net (2,885) (2,708) Premiums on purchased loans 1,876 1,577 Total loans receivable, net $ 881,200 $ 761,558 Most of the Company’s commercial and multi-family real estate, construction, residential, and/or commercial business lending activities are with customers located in the greater Puget Sound area and near our one loan production office located in the Tri-Cities, Washington. The Company originates real estate, consumer, and commercial business loans and has concentrations in these areas, however, indirect home improvement loans are originated through a network of home improvement contractors and dealers located throughout Washington, Oregon, California, Idaho, Colorado, and Arizona. The Company also originates solar loans through contractors and dealers in the state of California. Loans are generally secured by collateral and 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. A small portion of the one-to-four-family construction portfolio is custom construction loans to the intended occupant of the residence. Home Equity Lending . Loans originated by the Company secured by second mortgages on one-to-four-family residences, including home equity lines of credit in our market areas. One-to-Four-Family Real Estate Lending . One-to-four-family residential loans include owner occupied properties (including second homes), and non-owner occupied properties. These loans originated by the Company are 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 for home improvement are originated by the Company through its network of home improvement contractors and dealers 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, pools, and other home fixture installations. Solar. Fixture secured loans for solar related home improvement projects are originated by the Company through its network of contractors and dealers, and are secured by the personal property installed in, on, or at the borrower’s real property, and which 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 located in the states we originate consumer loans. 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 (“C&I”) . 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. Some of the C&I loans purchased by the Company are outside of our standard Puget Sound market area. C&I 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 to non-depository financial institutions and secured by notes originated by the non-depository financial institution. The Company has two distinct warehouse lending divisions: commercial warehouse re-lending secured by notes on construction loans and mortgage warehouse re-lending secured by notes on one-to-four-family loans. The Company’s commercial construction warehouse lines are secured by notes on construction loans and typically guaranteed by principles with experience in construction lending. Mortgage warehouse lending loans are funded through third-party residential mortgage bankers. Under this program the Company provides short-term funding to the mortgage banking companies for the purpose of originating residential mortgage loans for sale into the secondary market. The following tables detail activity in the allowance for loan losses by loan categories at or for the three and six months ended June 30, 2018 and 2017: At or For the Three Months Ended June 30, 2018 Commercial Real Estate Consumer Business Unallocated Total ALLOWANCE FOR LOAN LOSSES Beginning balance $ 4,780 $ 2,934 $ 2,311 $ 1,115 $ 11,140 Provision for loan losses 330 285 255 (420) 450 Charge-offs (1) (223) — — (224) Recoveries 16 188 1 — 205 Net recoveries (charge-offs) 15 (35) 1 — (19) Ending balance $ 5,125 $ 3,184 $ 2,567 $ 695 $ 11,571 Period end amount allocated to: Loans individually evaluated for impairment $ 21 $ 109 $ — $ — $ 130 Loans collectively evaluated for impairment 5,104 3,075 2,567 695 11,441 Ending balance $ 5,125 $ 3,184 $ 2,567 $ 695 $ 11,571 LOANS RECEIVABLE Loans individually evaluated for impairment $ 317 $ 310 $ — $ — $ 627 Loans collectively evaluated for impairment 475,946 239,564 177,643 — 893,153 Ending balance $ 476,263 $ 239,874 $ 177,643 $ — $ 893,780 At or For the Six Months Ended June 30, 2018 Commercial Real Estate Consumer Business Unallocated Total ALLOWANCE FOR LOAN LOSSES Beginning balance $ 4,770 $ 2,814 $ 2,014 $ 1,158 $ 10,756 Provision for loan losses 343 370 550 (463) 800 Charge-offs (4) (451) — — (455) Recoveries 16 451 3 — 470 Net recoveries 12 — 3 — 15 Ending balance $ 5,125 $ 3,184 $ 2,567 $ 695 $ 11,571 Period end amount allocated to: Loans individually evaluated for impairment $ 21 $ 109 $ — $ — $ 130 Loans collectively evaluated for impairment 5,104 3,075 2,567 695 11,441 Ending balance $ 5,125 $ 3,184 $ 2,567 $ 695 $ 11,571 LOANS RECEIVABLE Loans individually evaluated for impairment $ 317 $ 310 $ — $ — $ 627 Loans collectively evaluated for impairment 475,946 239,564 177,643 — 893,153 Ending balance $ 476,263 $ 239,874 $ 177,643 $ — $ 893,780 At or For the Three Months Ended June 30, 2017 Commercial Real Estate Consumer Business Unallocated Total ALLOWANCE FOR LOAN LOSSES Beginning balance $ 3,813 $ 2,588 $ 2,169 $ 1,577 $ 10,147 Provision for loan losses 331 87 282 (700) — Charge-offs — (179) — — (179) Recoveries — 173 2 — 175 Net (charge-offs) recoveries — (6) 2 — (4) Ending balance $ 4,144 $ 2,669 $ 2,453 $ 877 $ 10,143 Period end amount allocated to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 4,144 2,669 2,453 877 10,143 Ending balance $ 4,144 $ 2,669 $ 2,453 $ 877 $ 10,143 LOANS RECEIVABLE Loans individually evaluated for impairment $ 439 $ — $ — $ — $ 439 Loans collectively evaluated for impairment 397,256 190,729 131,878 — 719,863 Ending balance $ 397,695 $ 190,729 $ 131,878 $ — $ 720,302 At or For the Six Months Ended June 30, 2017 Commercial Real Estate Consumer Business Unallocated Total ALLOWANCE FOR LOAN LOSSES Beginning balance $ 3,547 $ 2,082 $ 2,675 $ 1,907 $ 10,211 Provision for loan losses 596 661 (227) (1,030) — Charge-offs — (384) — — (384) Recoveries 1 310 5 — 316 Net recoveries (charge-offs) 1 (74) 5 — (68) Ending balance $ 4,144 $ 2,669 $ 2,453 $ 877 $ 10,143 Period end amount allocated to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 4,144 2,669 2,453 877 10,143 Ending balance $ 4,144 $ 2,669 $ 2,453 $ 877 $ 10,143 LOANS RECEIVABLE Loans individually evaluated for impairment $ 439 $ — $ — $ — $ 439 Loans collectively evaluated for impairment 397,256 190,729 131,878 — 719,863 Ending balance $ 397,695 $ 190,729 $ 131,878 $ — $ 720,302 Non-accrual 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 non-accrual 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 non-accrual loans at June 30, 2018 and December 31, 2017: June 30, 2018 30-59 60-89 Days Days 90 Days Total Total Past Past or More Past Loans Non- Due Due Past Due Due Current Receivable Accrual REAL ESTATE LOANS Commercial $ — $ — $ — $ — $ 64,599 $ 64,599 $ — Construction and development — — — — 160,521 160,521 — Home equity — — 72 72 25,388 25,460 176 One-to-four-family — 141 — 141 177,847 177,988 141 Multi-family — — — — 47,695 47,695 — Total real estate loans — 141 72 213 476,050 476,263 317 CONSUMER LOANS Indirect home improvement 360 127 114 601 146,466 147,067 274 Solar 24 44 16 84 42,105 42,189 35 Marine 16 — — 16 48,575 48,591 — Other consumer 11 1 — 12 2,015 2,027 1 Total consumer loans 411 172 130 713 239,161 239,874 310 COMMERCIAL BUSINESS LOANS Commercial and industrial — — — — 110,962 110,962 — Warehouse lending — — — — 66,681 66,681 — Total commercial business loans — — — — 177,643 177,643 — Total loans $ 411 $ 313 $ 202 $ 926 $ 892,854 $ 893,780 $ 627 December 31, 2017 30-59 60-89 Days Days 90 Days Total Total Past Past or More Past Loans Non- Due Due Past Due Due Current Receivable Accrual REAL ESTATE LOANS Commercial $ — $ — $ — $ — $ 63,611 $ 63,611 $ — Construction and development — — — — 143,068 143,068 — Home equity 122 — 136 258 25,031 25,289 151 One-to-four-family 142 — — 142 163,513 163,655 142 Multi-family — — — — 44,451 44,451 — Total real estate loans 264 — 136 400 439,674 440,074 293 CONSUMER LOANS Indirect home improvement 255 215 99 569 129,607 130,176 195 Solar 49 19 — 68 40,981 41,049 — Marine — — — — 35,397 35,397 — Other consumer — — — — 2,046 2,046 — Total consumer loans 304 234 99 637 208,031 208,668 195 COMMERCIAL BUSINESS LOANS Commercial and industrial — 551 — 551 82,755 83,306 551 Warehouse lending — — — — 41,397 41,397 — Total commercial business loans — 551 — 551 124,152 124,703 551 Total loans $ 568 $ 785 $ 235 $ 1,588 $ 771,857 $ 773,445 $ 1,039 There were no loans 90 days or more past due and still accruing interest at June 30, 2018 and December 31, 2017. 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 was provided at June 30, 2018 and December 31, 2017: June 30, 2018 Unpaid Principal Recorded Related Balance Impairment Investment Allowance WITH NO RELATED ALLOWANCE RECORDED Home equity $ 176 $ — $ 176 $ — WITH RELATED ALLOWANCE RECORDED One-to-four-family 141 — 141 21 Consumer loans 310 — 310 109 451 — 451 130 Total $ 627 $ — $ 627 $ 130 December 31, 2017 Unpaid Principal Recorded Related Balance Impairment Investment Allowance WITH NO RELATED ALLOWANCE RECORDED Home equity $ 151 $ — $ 151 $ — One-to-four-family 67 (12) 55 — Total real estate loans 218 (12) 206 — Commercial business loans 551 — 551 — 769 (12) 757 — WITH RELATED ALLOWANCE RECORDED One-to-four-family 142 — 142 21 Consumer loans 195 — 195 68 337 — 337 89 Total $ 1,106 $ (12) $ 1,094 $ 89 The following table presents the average recorded investment in loans individually evaluated for impairment and the interest income recognized and received for the three and six months ended June 30, 2018 and 2017: At or For the Three Months Ended June 30, 2018 June 30, 2017 Average Recorded Interest Income Average Recorded Interest Income Investment Recognized Investment Recognized WITH NO RELATED ALLOWANCE RECORDED Home equity $ 148 $ 1 $ 240 $ — One-to-four-family (1) — — 201 1 Total real estate loans 148 1 441 1 WITH RELATED ALLOWANCE RECORDED One-to-four-family 271 1 — — Consumer loans 292 6 — — 563 7 — — Total $ 711 $ 8 $ 441 $ 1 ________________________ (1) Includes loans supported by Federal Housing Administration (“FHA”) guarantees. At or For the Six Months Ended June 30, 2018 June 30, 2017 Average Recorded Interest Income Average Recorded Interest Income Investment Recognized Investment Recognized WITH NO RELATED ALLOWANCE RECORDED Home equity $ 182 $ 3 $ 230 $ — One-to-four-family (1) — — 178 4 Total real estate loans 182 3 408 4 WITH AN ALLOWANCE RECORDED One-to-four-family 271 3 — — Consumer loans 276 11 — — 547 14 — — Total $ 729 $ 17 $ 408 $ 4 _______________________ (1) Includes loans supported by FHA guarantees. 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 Federal Financial Institutions Examination Council’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 the dates indicated: June 30, 2018 Special Pass Watch Mention Substandard Doubtful Loss (1 - 5) (6) (7) (8) (9) (10) Total REAL ESTATE LOANS Commercial $ 64,599 $ — $ — $ — $ — $ — $ 64,599 Construction and development 160,521 — — — — — 160,521 Home equity 25,284 — — 176 — — 25,460 One-to-four-family 177,847 — — 141 — — 177,988 Multi-family 47,695 — — — — — 47,695 Total real estate loans 475,946 — — 317 — — 476,263 CONSUMER LOANS Indirect home improvement 146,793 — — 274 — — 147,067 Solar 42,154 — — 35 — — 42,189 Marine 48,591 — — — — — 48,591 Other consumer 2,026 — — 1 — — 2,027 Total consumer loans 239,564 — — 310 — — 239,874 COMMERCIAL BUSINESS LOANS Commercial and industrial 103,262 2,228 338 5,134 — — 110,962 Warehouse lending 66,681 — — — — — 66,681 Total commercial business loans 169,943 2,228 338 5,134 — — 177,643 Total loans receivable, gross $ 885,453 $ 2,228 $ 338 $ 5,761 $ — $ — $ 893,780 December 31, 2017 Special Pass Watch Mention Substandard Doubtful Loss (1 - 5) (6) (7) (8) (9) (10) Total REAL ESTATE LOANS Commercial $ 62,057 $ — $ 1,554 $ — $ — $ — $ 63,611 Construction and development 143,068 — — — — — 143,068 Home equity 25,138 — — 151 — — 25,289 One-to-four-family 163,513 — — 142 — — 163,655 Multi-family 44,451 — — — — — 44,451 Total real estate loans 438,227 — 1,554 293 — — 440,074 CONSUMER LOANS Indirect home improvement 129,981 — — 195 — — 130,176 Solar 41,049 — — — — — 41,049 Marine 35,397 — — — — — 35,397 Other consumer 1,998 — — 48 — — 2,046 Total consumer loans 208,425 — — 243 — — 208,668 COMMERCIAL BUSINESS LOANS Commercial and industrial 76,942 — 425 5,939 — — 83,306 Warehouse lending 40,724 673 — — — — 41,397 Total commercial business loans 117,666 673 425 5,939 — — 124,703 Total loans receivable, gross $ 764,318 $ 673 $ 1,979 $ 6,475 $ — $ — $ 773,445 |
Servicing Rights
Servicing Rights | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value, Off-balance Sheet Risk [Abstract] | |
Servicing Rights | NOTE 4 - SERVICING RIGHTS Loans serviced for others are not included on the Consolidated Balance Sheets. The unpaid principal balances of permanent loans serviced for others were $955.1 million and $778.9 million at June 30, 2018 and December 31, 2017, respectively, and are carried at the lower of cost or market. The following table summarizes servicing rights activity for the three and six months ended June 30, 2018 and 2017: At or For the Three Months Ended June 30, 2018 2017 Beginning balance $ 7,515 $ 8,939 Additions 1,381 1,253 Sales — (4,751) Servicing rights amortized (544) (541) Impairment on servicing rights — (1) Ending balance $ 8,352 $ 4,899 At or For the Six Months Ended June 30, 2018 2017 Beginning balance $ 6,795 $ 8,459 Additions 2,519 2,242 Sales — (4,751) Servicing rights amortized (962) (1,050) Impairment on servicing rights — (1) Ending balance $ 8,352 $ 4,899 The fair market value of the permanent servicing rights’ assets was $12.0 million and $8.6 million at June 30, 2018 and December 31, 2017, respectively. Fair value adjustments to servicing rights are 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 June 30, 2018 2017 Key assumptions: Weighted average discount rate 9.5 % 9.5 % Conditional prepayment rate (“CPR”) 9.0 % 10.3 % Weighted average life in years 8.0 7.1 Key economic assumptions and the sensitivity of the current fair value for single family MSR to immediate adverse changes in those assumptions at June 30, 2018 and December 31, 2017 were as follows: June 30, 2018 December 31, 2017 Aggregate portfolio principal balance $ 952,257 $ 775,093 Weighted average rate of note 4.2 % % At June 30, 2018 Base 0.5%Adverse Rate Change 1.0%Adverse Rate Change Conditional prepayment rate 9.0 % 10.9 % 15.3 % Fair value MSR $ 12,016 $ 10,752 $ 9,162 Percentage of MSR 1.3 % 1.1 % 1.0 % Discount rate 9.8 % 10.3 % 10.8 % Fair value MSR $ 12,016 $ 11,754 $ 11,503 Percentage of MSR 1.3 % 1.2 % 1.2 % At December 31, 2017 Base 0.5%Adverse Rate Change 1.0%Adverse Rate Change Conditional prepayment rate 10.9 % 17.7 % 24.5 % Fair value MSR $ 8,602 $ 6,811 $ 5,614 Percentage of MSR 1.1 % 0.9 % 0.7 % Discount rate 9.6 % 10.1 % 10.6 % Fair value MSR $ 8,602 $ 8,433 $ 8,271 Percentage of MSR 1.1 % 1.1 % 1.1 % The above table shows the sensitivity to market rate changes for the par rate coupon for a conventional one-to-four-family FNMA, FHLMC, GNMA, or FHLB 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, which 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 $573,000 and $682,000 of gross contractually specified servicing fees, late fees, and other ancillary fees resulting from servicing mortgage and commercial loans for the three months ended June 30, 2018 and 2017, respectively, and $1.1 million and $1.3 million for the six months ended June 30, 2018 and 2017, respectively. The income, net of amortization, is reported in noninterest income on the Consolidated Statements of Income. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | NOTE 5 - 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 for reporting purposes under U.S. GAAP. 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: June 30, 2018 Fair Value Notional Asset Liability Fallout adjusted interest rate lock commitments with customers $ 49,621 $ 1,138 $ — Mandatory and best effort forward commitments with investors 24,739 — 18 Forward TBA mortgage-backed securities 70,000 — 199 TBA mortgage-backed securities forward sales paired off with investors 21,500 — 22 December 31, 2017 Fair Value Notional Asset Liability Fallout adjusted interest rate lock commitments with customers $ 31,951 $ 726 $ — Mandatory and best effort forward commitments with investors 12,505 51 — Forward TBA mortgage-backed securities 66,500 — 65 TBA mortgage-backed securities forward sales paired off with investors 36,500 53 — At June 30, 2018 and December 31, 2017, the Company had $70.0 million and $66.5 million of unsettled TBA trades with counterparties that required margin collateral of $220,000 and $75,000, respectively. This collateral is included in interest-bearing deposits at other financial institutions on the Consolidated Balance Sheets. 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 net gains of $403,000 and $114,000 for the three months ended June 30, 2018 and 2017, respectively, and net gain (loss) of $484,000 and $(381,000) for the six months ended June 30, 2018 and 2017, respectively. |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift [Abstract] | |
Deposits | NOTE 6 - DEPOSITS Deposits are summarized as follows at June 30, 2018 and December 31, 2017: June 30, December 31, 2018 (1) 2017 (1) Noninterest-bearing checking $ 172,848 $ 177,739 Interest-bearing checking 128,080 119,872 Savings 77,631 72,082 Money market (2) 210,742 228,742 Certificates of deposit less than $100,000 (3) 144,755 111,489 Certificates of deposit of $100,000 through $250,000 79,131 77,934 Certificates of deposit of $250,000 and over (4) 45,417 32,833 Escrow accounts related to mortgages serviced 11,509 9,151 Total $ 870,113 $ 829,842 (1) Includes $124.0 million of deposits at June 30, 2018 (that which is remaining from the purchase of four retail bank branches from Bank of America, National Association on January 22, 2016) and $134.6 million at December 31, 2017. (2) Includes $4.0 million of brokered deposits at June 30, 2018 and $6.5 million at December 31, 2017. (3) Includes $86.6 million and $59.3 million of brokered deposits at June 30, 2018 and December 31, 2017, respectively. (4) Time deposits that meet or exceed the FDIC insurance limit. 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 June 30, 2018 and December 31, 2017 were $17.9 million and $18.2 million, respectively. Scheduled maturities of time deposits at June 30, 2018 for future periods ending are as follows: At June 30, 2018 Maturing in 2018 $ 89,416 Maturing in 2019 90,581 Maturing in 2020 46,314 Maturing in 2021 23,286 Maturing in 2022 17,779 Thereafter 1,927 Total $ 269,303 Interest expense by deposit category for the three and six months ended June 30, 2018 and 2017 is as follows: Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Interest-bearing checking $ 63 $ 14 $ 130 $ 22 Savings and money market 393 312 712 581 Certificates of deposit 976 570 1,833 1,145 Total $ 1,432 $ 896 $ 2,675 $ 1,748 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 7 - 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 Consolidated Balance Sheets. 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 June 30, 2018 and December 31, 2017: June 30, December 31, 2018 2017 COMMITMENTS TO EXTEND CREDIT REAL ESTATE LOANS Commercial $ 108 $ 107 Construction and development 79,038 73,321 One-to-four-family (includes locks for salable loans) 55,817 37,336 Home equity 35,750 32,889 Multi-family 616 438 Total real estate loans 171,329 144,091 CONSUMER LOANS 10,184 10,041 COMMERCIAL BUSINESS LOANS Commercial and industrial 53,995 52,452 Warehouse lending 44,019 78,303 Total commercial business loans 98,014 130,755 Total commitments to extend credit $ 279,527 $ 284,887 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 $230,000 at June 30, 2018 and $253,000 at December 31, 2017. 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 also sells one-to-four-family loans to the FHLB of Des Moines that require a limited level of recourse if the loans default and exceed a certain loss exposure. Specific to that recourse, the FHLB of Des Moines established a first loss account (“FLA”) related to the loans and required a credit enhancement (“CE”) obligation by the Bank to be utilized after the FLA is used. Based on loans sold through June 30, 2018, the total loans sold to the FHLB of Des Moines were $57.6 million with the FLA totalling $633,000 and the CE obligation at $367,000 or 0.64% of the loans outstanding. The holdback for CE obligations is included in the contingent liabilities detailed below. There were no outstanding delinquencies on the loans sold to the FHLB of Des Moines at June 30, 2018 and December 31, 2017. Contingent liabilities for loans held for sale - In the ordinary course of business, loans are sold with limited recourse against the Company and 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 $971,000 and $1.0 million to cover loss exposure related to these guarantees for one-to-four-family loans sold into the secondary market at June 30, 2018 and December 31, 2017, respectively, which is included in other liabilities on the Consolidated Balance Sheets. 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, Chief Credit Officer, Chief Risk Officer, Chief Human Resources Officer, Senior Vice President Compliance Officer, Executive Vice President of Retail Banking and Marketing, 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. The Bank received 7,158 shares of Class B common stock in Visa, Inc. as a result of the Visa initial public offering (“IPO”) in March 2008. These Class B shares of stock held by the Bank could be converted to Class A shares at a conversion rate of 1.6298 when all litigation pending as of the date of the IPO is concluded. However, at June 30, 2018, the date that litigation will be concluded cannot be determined. Until such time, the stock cannot be redeemed or sold by the Bank; therefore, it is not readily marketable and has a current carrying value of $0. Visa, Inc. Class A stock’s market value at June 30, 2018 and December 31, 2017 was $132.45 per share and $114.02 per share, respectively. As a result 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 June 30, 2018. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 8 - 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. On January 1, 2018, the Company adopted ASU 2016-01 , Financial Instruments - Overall (Subtopic 825‑10), Recognition and Measurement of Financial Assets and Financial Liabilities, which requires us to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The Company determines the fair values of its financial instruments based on the requirements established in Accounting Standards Codification (“ASC”) 820, Fair Value Measurements, which provides a framework for measuring fair value in accordance with U.S. GAAP and requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 defines fair values for financial instruments as the exit price, the price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date under current market conditions. The Company’s fair values for financial instruments at June 30, 2018 were determined based on these requirements. 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 at December 31, 2017: Securities Available-for-Sale - The fair value of securities available-for-sale are recorded 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 fair valued using similar contracts in the market and changes in the market interest rates (Level 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. Management will utilize discounted cashflow impairment for TDRs when the change in terms results in a discount to the overall cashflows to be received (Level 3). The following tables present securities available-for-sale measured at fair value on a recurring basis at the dates indicated: Securities Available-for-Sale Level 1 Level 2 Level 3 Total At June 30, 2018 U.S. agency securities $ — $ 15,922 $ — $ 15,922 Corporate securities — 6,895 — 6,895 Municipal bonds — 10,482 — 10,482 Mortgage-backed securities — 49,063 — 49,063 U.S. Small Business Administration securities — 16,103 — 16,103 Total $ — $ 98,465 $ — $ 98,465 Securities Available-for-Sale Level 1 Level 2 Level 3 Total At December 31, 2017 U.S. agency securities $ — $ 9,115 $ — $ 9,115 Corporate securities — 7,026 — 7,026 Municipal bonds — 12,786 — 12,786 Mortgage-backed securities — 39,734 — 39,734 U.S. Small Business Administration securities — 13,819 — 13,819 Total $ — $ 82,480 $ — $ 82,480 The following table presents mortgage loans held for sale measured at fair value on a recurring basis at the dates indicated: Mortgage Loans Held for Sale Level 1 Level 2 Level 3 Total June 30, 2018 $ — $ 55,191 $ — $ 55,191 December 31, 2017 $ — $ 53,463 $ — $ 53,463 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 the dates indicated: Interest Rate Lock Commitments with Customers Level 1 Level 2 Level 3 Total June 30, 2018 $ — $ — $ 1,138 $ 1,138 December 31, 2017 $ — $ — $ 726 $ 726 Individual Forward Sale Commitments with Investors Level 1 Level 2 Level 3 Total June 30, 2018 $ — $ (199) $ (18) $ (217) December 31, 2017 $ — $ (65) $ 51 $ (14) Paired Off Commitments with Investors Level 1 Level 2 Level 3 Total June 30, 2018 $ — $ (22) $ — $ (22) December 31, 2017 $ — $ 53 $ — $ 53 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 periods indicated. The amounts disclosed below represent the fair values at the time the nonrecurring fair value measurements were evaluated. Impaired Loans Level 1 Level 2 Level 3 Total June 30, 2018 $ — $ — $ 627 $ 627 December 31, 2017 $ — $ — $ 1,094 $ 1,094 Quantitative Information about Level 3 Fair Value Measurements - Shown in the table below is the fair value of financial instruments measured under a Level 3 unobservable input on a recurring and nonrecurring basis at June 30, 2018: Level 3 Significant Range Weighted Fair Value Instruments Valuation Technique Unobservable Inputs (Weighted Average) Average RECURRING Interest rate lock commitments with customers Quoted market prices Pull-through expectations 80% - 99% 94.8 % Individual forward sale commitments with investors Quoted market prices Pull-through expectations 80% - 99% 94.8 % NONRECURRING Impaired loans Fair value of underlying collateral Discount applied to the obtained appraisal 0% - 25% 20.7 % 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 table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and six months ended June 30, 2018 and 2017: Net change in fair value for gains/ Purchases (losses) relating to Beginning and Sales and Ending items held at end of Three Months Ended June 30, Balance Issuances Settlements Balance period 2018 Interest rate lock commitments with customers $ 815 $ 3,140 $ (2,817) $ 1,138 $ 323 Individual forward sale commitments with investors 4 84 (106) (18) (22) 2017 Interest rate lock commitments with customers $ 1,437 $ 4,067 $ (4,292) $ 1,212 $ (225) Individual forward sale commitments with investors (19) (107) 209 83 102 Net change in fair value for gains/ Purchases (losses) relating to Beginning and Sales and Ending items held at end of Six Months Ended June 30, Balance Issuances Settlements Balance year 2018 Interest rate lock commitments with customers $ 726 $ 5,575 $ (5,163) $ 1,138 $ 412 Individual forward sale commitments with investors 51 656 (725) (18) (69) 2017 Interest rate lock commitments with customers $ 818 $ 7,549 $ (7,155) $ 1,212 $ 394 Individual forward sale commitments with investors 177 (303) 209 83 (94) 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 the financial statements at December 31, 2017: Cash, and Cash Equivalents and Certificates of Deposit at Other Financial Institutions - The carrying amounts of cash and short-term instruments approximate their fair value (Level 1). Federal Home Loan Bank stock - The par value of FHLB stock approximates its fair value (Level 2). Bank-owned Life Insurance - The estimated fair value is equal to the cash surrender value of policies, net of surrender charges (Level 1). Accrued Interest - The carrying amount 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 cashflow 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 cashflow 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 cashflow 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 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 (Level 2 and 3). The following table provides estimated fair values of the Company’s financial instruments at June 30, 2018 and December 31, 2017, whether or not recognized at fair value in the Consolidated Balance Sheets: June 30, December 31, 2018 2017 Carrying Fair Carrying Fair Amount Value Amount Value Financial Assets Level 1 inputs: Cash and cash equivalents $ 21,977 $ 21,977 $ 18,915 $ 18,915 Certificates of deposit at other financial institutions 17,611 17,611 18,108 18,108 Level 2 inputs: Securities available-for-sale, at fair value 98,465 98,465 82,480 82,480 Loans held for sale, at fair value 55,191 55,191 53,463 53,463 FHLB stock, at cost 7,742 7,742 2,871 2,871 Accrued interest receivable 4,071 4,071 3,566 3,566 Paired off commitments with investors — — 53 53 Level 3 inputs: Loans receivable, gross 893,780 882,819 773,445 780,551 Servicing rights, held at lower of cost or fair value 8,352 12,022 6,795 8,608 Fair value interest rate locks with customers 1,138 1,138 726 726 Individual forward sale commitments with investors — — 51 51 Financial Liabilities Level 2 inputs: Deposits 870,113 863,210 829,842 838,087 Borrowings 106,526 106,442 7,529 7,498 Subordinated note 9,855 10,741 9,845 10,741 Accrued interest payable 289 289 214 214 Paired off commitments with investors 22 22 — — Individual forward sale commitments with investors 199 199 65 65 Level 3 inputs: Individual forward sale commitments with investors — — |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | NOTE 9 - 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 are eligible to participate in the ESOP if they have been credited with at least 1,000 hours of service during the employees’ first 12‑month period and based on the employee’s anniversary date will be vested in the ESOP. The employee will be 100% vested in the ESOP after two years of working at least 1,000 hours in each of those two years. 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, 2017, the ESOP paid the sixth annual installment of principal in the amount of $263,000, plus accrued interest of $32,000 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 June 30, 2018 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 for the three months ended June 30, 2018 and 2017 was $393,000 and $317,000, respectively, and $752,000 and $554,000 for the six months ended June 30, 2018 and 2017, respectively. Shares held by the ESOP at June 30, 2018 and 2017 were as follows (shown as actual): Balances Balances at June 30, 2018 at June 30, 2017 Allocated shares 153,049 126,589 Committed to be released shares 12,960 12,960 Unallocated shares 90,724 116,645 Total ESOP shares 256,733 256,194 Fair value of unallocated shares (in thousands) $ 5,262 $ 4,987 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 10 - 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 six months ended June 30, 2018 and 2017: At or For the Three Months Ended June 30, At or For the Six Months Ended June 30, Numerator: 2018 2017 2018 2017 Net income (in thousands) $ 4,257 $ 4,359 $ 8,579 $ 6,952 Denominator: Basic weighted average common shares outstanding 3,583,927 2,903,323 3,573,560 2,891,116 Dilutive shares 181,797 194,305 188,519 193,276 Diluted weighted average common shares outstanding 3,765,724 3,097,628 3,762,079 3,084,392 Basic earnings per share $ 1.19 $ 1.50 $ 2.40 $ 2.40 Diluted earnings per share $ 1.13 $ 1.41 $ 2.28 $ 2.25 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | NOTE 11 - STOCK-BASED COMPENSATION Stock Options and Restricted Stock On May 17, 2018, the shareholders of FS Bancorp, Inc. approved a 2018 Equity Incentive Plan (“2018 Plan”) that authorizes 650,000 shares of the Company’s common stock to be issued as 25% restricted stock awards (163,000) or 75% granted as stock options (487,000). As of June 30, 2018, none of the restricted stock or stock option grants have been issued. 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 $150,000 and $285,000 for the three and six months ended June 30, 2018 respectively, and $166,000 and $358,000 for the three and six months ended June 30, 2017, respectively. Stock Options The Plan authorizes the grant of stock options totaling 324,013 shares of common stock to Company directors and employees of which 322,000 option share awards under the Plan were granted with an exercise price equal to the market price of FS Bancorp’s common stock at the grant date of 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. At June 30, 2018, 6,013 option share awards are available to be granted. 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 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 six months ended June 30, 2018 (shown as actual): Weighted-Average Weighted- Remaining Average Contractual Term In Aggregate Shares Exercise Price Years Intrinsic Value Outstanding at January 1, 2018 256,237 $ 16.89 6.36 $ 9,655,010 Granted — — — — Less exercised 32,833 $ 16.89 — $ 1,318,296 Forfeited or expired — — — — Outstanding at June 30, 2018 223,404 $ 16.89 5.63 $ 10,357,009 Expected to vest, assuming a 0.31% annual forfeiture rate (1) 223,242 $ 16.89 5.63 $ 10,349,515 Exercisable at June 30, 2018 162,604 $ 16.89 5.54 $ 7,538,321 (1) Forfeiture rate has been calculated and estimated to assume a forfeiture of 1/32 over the 10-year contractual life, or 3.1% of the options forfeited over 10 years. At June 30, 2018, there was $188,000 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 10 months. Restricted Stock Awards The Plan authorizes the grant of restricted stock awards totaling 129,605 shares to Company directors and employees, and 125,105 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 unvested 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 six months ended June 30, 2018 (shown as actual): Weighted-Average Grant-Date Fair Value Nonvested Shares Shares Per Share Nonvested at January 1, 2018 36,842 $ 17.63 Granted — — Less vested 18,421 $ 17.63 Forfeited or expired — — Nonvested at June 30, 2018 18,421 $ 17.63 At June 30, 2018, there was $264,000 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 10 months. |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital | NOTE 12 - 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, Tier 1 leverage, and CET 1 capital ratios as set forth in the table below to be categorized as well capitalized. At June 30, 2018 and December 31, 2017, 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. Management believes, at June 30 2018, that the Company and the Bank met all capital adequacy requirements. The following table compares the Bank’s actual capital amounts and ratios at June 30, 2018 and December 31, 2017 to their minimum regulatory capital requirements and well capitalized regulatory capital at those dates (dollars in thousands): To be Well Capitalized Under Prompt For Capital For Capital Adequacy Corrective Actual Adequacy Purposes with Capital Buffer Action Provisions Bank Only Amount Ratio Amount Ratio Amount Ratio Amount Ratio At June 30, 2018 Total risk-based capital (to risk-weighted assets) $ 143,480 15.57 % $ 73,699 8.00 % $ 91,018 9.88 % $ 92,124 10.00 % Tier 1 risk-based capital (to risk-weighted assets) $ 131,961 14.32 % $ 55,274 6.00 % $ 72,594 7.88 % $ 73,699 8.00 % Tier 1 leverage capital (to average assets) $ 131,961 12.23 % $ 43,157 4.00 % N/A N/A $ 53,946 5.00 % CET 1 capital (to risk-weighted assets) $ 131,961 14.32 % $ 41,456 4.50 % $ 64,487 7.00 % $ 59,881 6.50 % At December 31, 2017 Total risk-based capital (to risk-weighted assets) $ 133,967 16.25 % $ 65,965 8.00 % $ 76,272 9.25 % $ 82,456 10.00 % Tier 1 risk-based capital (to risk-weighted assets) $ 123,651 15.00 % $ 49,474 6.00 % $ 59,781 7.25 % $ 65,965 8.00 % Tier 1 leverage capital (to average assets) $ 123,651 12.61 % $ 39,233 4.00 % N/A N/A $ 49,041 5.00 % CET 1 capital (to risk-weighted assets) $ 123,651 15.00 % $ 37,105 4.50 % $ 47,412 5.75 % $ 53,597 6.50 % In addition to the minimum CET 1, Tier 1, total capital, and leverage ratios, the Bank now 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. The capital conservation buffer requirement was phased-in on January 1, 2016 when more than 0.625% of risk-weighted assets was required and increases by 0.625% on each subsequent January 1, until fully implemented to an amount more than 2.5% of risk-weighted assets in January 2019. At June 30, 2018, the Bank’s CET1 capital exceeded the required capital conservation buffer of an amount more than 1.875%. 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 (as of June 30 th of the preceding year), the capital guidelines apply on a bank only basis and the Federal Reserve expects the holding company’s subsidiary bank to be well capitalized under the prompt corrective action regulations. At June 30, 2018, FS Bancorp, Inc. was subject to regulatory guidelines for bank holding companies with $1.0 billion or more in assets and exceeded all regulatory capital requirements. The regulatory capital ratios calculated for FS Bancorp, Inc. at June 30, 2018 were 11.9% for Tier 1 leverage-based capital, 13.9% for Tier 1 risk-based capital, 15.2% for total risk-based capital, and 13.9% for CET 1 capital ratio. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | NOTE 13 - BUSINESS SEGMENTS The Company’s business segments are determined based on the products and services provided, as well as the nature of the related business activities, and they reflect the manner in which financial information is currently evaluated by management. This process is dynamic and is based on management’s current view of the Company’s operations and is not necessarily comparable with similar information for other financial institutions. We define our business segments by product type and customer segment which we have organized into two lines of business: commercial and consumer banking and home lending. We use various management accounting methodologies to assign certain income statement items to the responsible operating segment, including: a funds transfer pricing (“FTP”) system, which allocates interest income credits and funding charges between the segments, assigning to each segment a funding credit for its liabilities, such as deposits, and a charge to fund its assets; a cost per loan serviced allocation based on the number of loans being serviced on the balance sheet and the number of loans serviced for third parties; an allocation based upon the approximate square footage utilized by the home lending segment in Company owned locations; an allocation of charges for services rendered to the segments by centralized functions, such as corporate overhead, which are generally based on the number of full time employees (“FTEs”) in each segment; and an allocation of the Company’s consolidated income taxes which are based on the effective tax rate applied to the segment’s pretax income or loss. The FTP methodology is based on management’s estimated cost of originating funds including the cost of overhead for deposit generation. A description of the Company’s business segments and the products and services that they provide is as follows: Commercial and Consumer Banking Segment The commercial and consumer banking segment provides diversified financial products and services to our commercial and consumer customers through Bank branches, automated teller machines (“ATM”), online banking platforms, mobile banking apps, and telephone banking. These products and services include deposit products; residential, consumer, business and commercial real estate lending portfolios and cash management services. We originate consumer loans, commercial and multi-family real estate loans, residential and multi-family construction loans, and commercial business loans. At June 30, 2018, our retail deposit branch network consisted of 13 branches in the Pacific Northwest. At June 30, 2018 and December 31, 2017, our deposits totaled $870.1 million and $829.8 million, respectively. This segment is also responsible for the management of our investment portfolio and other assets of the Bank. Home Lending Segment The home lending segment originates one-to-four-family residential mortgage loans primarily for sale in the secondary markets as well as originating adjustable rate mortgage (“ARM”) loans held for investment. The majority of our mortgage loans are sold to or securitized by FNMA, FHLMC, GNMA, or FHLB, while we retain the right to service these loans. Loans originated under the guidelines of the Federal Housing Administration or FHA, US Department of Veterans Affairs or VA, and United States Department of Agriculture or USDA are generally sold servicing released to a correspondent bank or mortgage company. We have the option to sell loans on a servicing-released or servicing-retained basis to securitizers and correspondent lenders. A small percentage of our loans are brokered to other lenders. On occasion, we may sell a portion of our MSR portfolio and we may sell small pools of loans originated for the portfolio. We manage the loan funding and the interest rate risk associated with the secondary market loan sales and the retained one-to-four-family mortgage servicing rights within this business segment. One-to-four-family loans originated for investment are allocated to the home lending segment with a corresponding provision expense and FTP for cost of funds. Segment Financial Results The tables below summarize the financial results for each segment based primarily on the number of FTEs and assets within each segment for the three and six months ended June 30, 2018 and 2017: At or For the Three Months Ended June 30, 2018 Home Lending Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 764 $ 11,161 $ 11,925 Provision for loan losses (149) (301) (450) Noninterest income 4,447 1,167 5,614 Noninterest expense (4,508) (7,636) (12,144) Income before provision for income taxes 554 4,391 4,945 Provision for income taxes (78) (610) (688) Net income $ 476 $ 3,781 $ 4,257 Total average assets at period end $ 222,687 $ 860,175 $ 1,082,862 FTEs 117 219 336 At or For the Three Months Ended June 30, 2017 Home Lending Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 415 $ 9,551 $ 9,966 Provision for loan losses (117) 117 — Noninterest income 5,462 1,495 6,957 Noninterest expense (4,382) (6,562) (10,944) Income before provision for income taxes 1,378 4,601 5,979 Provision for income taxes (374) (1,246) (1,620) Net income $ 1,004 $ 3,355 $ 4,359 Total average assets at period end $ 197,431 $ 705,052 $ 902,483 FTEs 117 207 324 At or For the Six Months Ended June 30, 2018 Home Lending Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 1,479 $ 21,943 $ 23,422 Provision for loan losses (145) (655) (800) Noninterest income 8,213 2,425 10,638 Noninterest expense (8,564) (14,615) (23,179) Income before provision for income taxes 983 9,098 10,081 Provision for income taxes (146) (1,356) (1,502) Net income $ 837 $ 7,742 $ 8,579 Total average assets at quarter end $ 219,553 $ 830,419 $ 1,049,972 FTEs 117 219 336 At or For the Six Months Ended June 30, 2017 Home Lending Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 1,045 $ 17,896 $ 18,941 Provision for loan losses (197) 197 — Noninterest income 9,849 2,528 12,377 Noninterest expense (8,399) (12,922) (21,321) Income before provision for income taxes 2,298 7,699 9,997 Provision for income taxes (700) (2,345) (3,045) Net income $ 1,598 $ 5,354 $ 6,952 Total average assets at period end $ 184,499 $ 686,294 $ 870,793 FTEs 117 207 324 (1) Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to the other segment. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of assigned liabilities to fund segment assets. |
Goodwill And Other Intangible A
Goodwill And Other Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 14 - GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and certain other intangibles generally arise from business combinations accounted for under the purchase method of accounting. Goodwill totaled $2.3 million at June 30, 2018 and December 31, 2017, and represents the excess of the total acquisition price paid over the fair value of the assets acquired, net of the fair values of liabilities assumed. Goodwill is not amortized but is evaluated for impairment on an annual basis at December 31 of each year or whenever events or changes in circumstances indicate the carrying value may not be recoverable. The Company performed an impairment analysis at December 31, 2017, and determined that no impairment of goodwill existed. No events or circumstances since the December 31, 2017 annual impairment test were noted that would indicate it was more likely than not a goodwill impairment existed at June 30, 2018. The following table summarizes the changes in the Company’s other intangible assets for the year ended December 31, 2017, and the six months ended June 30, 2018. Other Intangible Assets Accumulated Gross Amortization Net Balance, December 31, 2016 $ 2,239 $ (522) $ 1,717 Amortization — (400) (400) Balance, December 31, 2017 2,239 (922) 1,317 Amortization — (153) (153) Balance, June 30, 2018 $ 2,239 $ (1,075) $ 1,164 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 $77,000 and $153,000 for the three and six months ended June 30, 2018, and $100,000 and $200,000 for the same period in 2017. Amortization expense for core deposit intangible is expected to be as follows at June 30, 2018: Remainder of 2018 $ 154 2019 235 2020 181 2021 166 2022 166 Thereafter 262 Total $ 1,164 |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | NOTE 15 - REVENUE FROM CONTRACTS WITH CUSTOMERS As noted in Note 1, the Company adopted the provisions of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), on January 1, 2018 and all subsequent ASUs that modified Topic 606. Results for reporting periods beginning after December 31, 2017 are presented under Topic 606, while prior period amounts have not been adjusted and continue to be reported in accordance with Topic 605. Revenue Recognition In accordance with Topic 606, revenues are recognized when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services that are promised within each contract and identifies those that contain performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. All of the Company’s revenue from contracts with customers in scope of ASC 606 is recognized in noninterest income and included in our commercial and consumer banking segment. For the three months ended June 30, 2018, the Company recognized $574,000 in total deposit fees, which included $280,000 of debit card interchange fees and $116,000 of fees from non-sufficient funds, both considered within the scope of ASC 606, and $5.2 million of noninterest income considered not within the scope of ASC 606. For the six months ended June 30, 2018, the Company recognized $1.1 million in total deposit fees, which included $540,000 of debit card interchange fees and $236,000 of fees from non-sufficient funds, both considered within the scope of ASC 606, and $9.9 million of noninterest income considered not within the scope of ASC 606. Deposit Fees The Bank earns fees from its deposit customers for account maintenance, transaction-based and overdraft services. Account maintenance fees consist primarily of account fees and analyzed account fees charged on deposit accounts on a monthly basis. The performance obligation is satisfied and the fees are recognized on a monthly basis as the service period is completed. Transaction-based fees on deposits accounts are charged to deposit customers for specific services provided to the customer, such as non-sufficient funds fees, overdraft fees, and wire fees. The performance obligation is completed as the transaction occurs and the fees are recognized at the time each specific service is provided to the customer. Debit Interchange Income Debit and ATM interchange income represent fees earned when a debit card issued by the Bank is used. The Bank earns interchange fees from debit cardholder transactions through the Visa payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. The performance obligation is satisfied and the fees are earned when the cost of the transaction is charged to the cardholders’ debit card. Certain expenses directly associated with the debit card are recorded on a net basis with the interchange income. |
Definitive Agreement
Definitive Agreement | 6 Months Ended |
Jun. 30, 2018 | |
Business Combination [Abstract] | |
Business Combination Disclosure [Text Block] | NOTE 16 - DEFINITIVE AGREEMENT On July 17, 2018, the Company entered into a definitive agreement (the "Agreement") with Anchor Bancorp, headquartered in Lacey, Washington ("Anchor"), pursuant to which Anchor will be merged with and into the Company, and immediately thereafter Anchor’s bank subsidiary, Anchor Bank, will be merged with and into 1st Security Bank of Washington (the "Anchor Merger"). Anchor Bank has nine full-service banking offices within Grays Harbor, Thurston, Lewis, and Pierce counties, and one loan production office located in King County, Washington. Under the terms of the Agreement, Anchor shareholders will receive 0.2921 shares of FS Bancorp common stock and $12.40 in cash for each share of Anchor common stock. FS Bancorp will pay aggregate consideration of 725,585 shares of FS Bancorp common stock and $30.8 million in cash, or based on the 10-day volume weighted average closing price of FS Bancorp common stock of $63.68 on July 13, 2018, approximately $77.0 million in aggregate, including the value of outstanding shares of Anchor restricted stock. In the event the Agreement is terminated under certain specified circumstances in connection with a competing transaction, Anchor will be required to pay the Company a termination fee of $2.7 million in cash. All of the directors of Anchor have agreed to vote their shares of Anchor common stock in favor of approval of the Agreement. The proposed transaction is subject to customary closing conditions, including the receipt of regulatory approvals and approval of the Agreement by the shareholders of Anchor, and is expected to be completed in either the fourth quarter of 2018 or early in the first quarter of 2019. At June 30, 2018, Anchor reported total assets of $469.6 million, total loans of $397.4 million and total deposits of $359.0 million. Upon consummation of the merger, the shareholders of Anchor will own approximately 16% of the combined company. |
Basis of Presentation and Sum25
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2017, as filed with the SEC on March 16, 2018. 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 six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018, 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 significant change relate to the determination of the allowance for loan and lease losses, fair value of financial instruments, the valuation of servicing rights, and the deferred income taxes. 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 2018 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. |
Segment Reporting, Policy | Segment Reporting - The Company operates in two business segments through the Bank: commercial and consumer banking and home lending. The Company’s business segments are determined based on the products and services provided, as well as the nature of the related business activities, and they reflect the manner in which financial information is regularly reviewed for the purpose of allocating resources and evaluating performance of the Company’s businesses. The results for these business segments are based on management’s accounting process, which assigns income statement items and assets to each responsible operating segment. This process is dynamic and is based on management’s view of the Company’s operations. See “Note 13 - Business Segments”. |
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. A small portion of the one-to-four-family construction portfolio is custom construction loans to the intended occupant of the residence. Home Equity Lending . Loans originated by the Company secured by second mortgages on one-to-four-family residences, including home equity lines of credit in our market areas. One-to-Four-Family Real Estate Lending . One-to-four-family residential loans include owner occupied properties (including second homes), and non-owner occupied properties. These loans originated by the Company are 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 for home improvement are originated by the Company through its network of home improvement contractors and dealers 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, pools, and other home fixture installations. Solar. Fixture secured loans for solar related home improvement projects are originated by the Company through its network of contractors and dealers, and are secured by the personal property installed in, on, or at the borrower’s real property, and which 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 located in the states we originate consumer loans. 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 (“C&I”) . 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. Some of the C&I loans purchased by the Company are outside of our standard Puget Sound market area. C&I 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 to non-depository financial institutions and secured by notes originated by the non-depository financial institution. The Company has two distinct warehouse lending divisions: commercial warehouse re-lending secured by notes on construction loans and mortgage warehouse re-lending secured by notes on one-to-four-family loans. The Company’s commercial construction warehouse lines are secured by notes on construction loans and typically guaranteed by principles with experience in construction lending. Mortgage warehouse lending loans are funded through third-party residential mortgage bankers. Under this program the Company provides short-term funding to the mortgage banking companies for the purpose of originating residential mortgage loans for sale into the secondary market. |
Nonaccrual and Past Due Loans | Non-accrual 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 non-accrual 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 Federal Financial Institutions Examination Council’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. |
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 for reporting purposes under U.S. GAAP. 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 at December 31, 2017: Securities Available-for-Sale - The fair value of securities available-for-sale are recorded 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 fair valued using similar contracts in the market and changes in the market interest rates (Level 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. Management will utilize discounted cashflow impairment for TDRs when the change in terms results in a discount to the overall cashflows to be received (Level 3). |
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 are eligible to participate in the ESOP if they have been credited with at least 1,000 hours of service during the employees’ first 12‑month period and based on the employee’s anniversary date will be vested in the ESOP. The employee will be 100% vested in the ESOP after two years of working at least 1,000 hours in each of those two years. 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 June 30, 2018 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. |
Federal Reserve Bank Reserve Requirements | 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 June 30, 2018 and December 31, 2017 were $17.9 million and $18.2 million, respectively. |
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. |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. Once adopted, we expect to report higher assets and liabilities as a result of including right-of-use assets and lease liabilities related to certain banking offices and certain equipment under noncancelable operating lease agreements. As of December 31, 2017, we would have reported an increase of approximately $4. 7 million in both assets and liabilities in the Consolidated Balance Sheets based on management’s estimate assuming the early adoption of this ASU. 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. Once adopted, we anticipate our allowance for loan losses to increase through a one‑time adjustment to retained earnings, however, until our evaluation is complete the magnitude of the increase will be unknown. In March 2017, the FASB issued ASU No. 2017‑08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310‑20): Premium Amortization on Purchased Callable Debt Securities . The ASU shortens the amortization period for certain callable debt securities held at a premium. The ASU will take effect for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The adoption of ASU No. 2017‑08 is not expected to have a material impact on the Company’s consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This ASU amends the hedge accounting recognition and presentation requirements in ASC 815 to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and (2) reduce the complexity of and simplify the application of hedge accounting by preparers. The amendments in this ASU permit hedge accounting for hedging relationships involving nonfinancial risk and interest rate risk by removing certain limitations in cash flow and fair value hedging relationships. In addition, the ASU requires an entity to present the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported. The amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018 and early adoption is permitted. The adoption of ASU No. 2017-12 is not expected to have a material impact on the Company's consolidated financial statements. In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740) . This ASU was issued to provide guidance on the income tax accounting implications of the Tax Cuts and Jobs Act (“Tax Act”) and allows for entities to report provisional amounts for specific income tax effects of the Act for which the accounting under Topic 740 was not yet complete but a reasonable estimate could be determined. A measurement period of one year is allowed to complete the accounting effects under Topic 740 and revise any previous estimates reported. Any provisional amounts or subsequent adjustments included in an entity’s financial statements during the measurement period should be included in income from continuing operations as an adjustment to tax expense in the reporting period the amounts are determined. The Company adopted this ASU with the provisional adjustments as reported in the Consolidated Financial Statements on Form 10-K as of December 31, 2017. As of June 30, 2018, the Company did not incur any adjustments to the provisional recognition. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718) : Improvements to Nonemployee Share-Based Payment Accounting. This ASU was issued to expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Previously, these awards were recorded at the fair value of consideration received or the fair value of the equity instruments issued and was measured as the earlier of the commitment date or date performance was completed. The amendments in this ASU require the awards to be measured at the grant-date fair value of the equity instrument. ASU No. 2018-07 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, but no earlier than an entity's adoption of Topic 606. The adoption of ASU No. 2018-07 is not expected to have a material impact on the Company's future consolidated financial statements. |
Application of New Accounting Guidance | Application of New Accounting Guidance Adopted in 2018 On January 1, 2018, the Company adopted FASB issued ASU No. 2014‑09, Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively “ASC 606”) , which created 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. 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 past 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. For financial reporting purposes, the Company utilized the modified retrospective approach, meaning the ASU 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. As a bank holding company, key revenue sources, such as interest income on loans, investment securities and deposits, as well as other sources of income including loan fees, security sales, and derivatives have been identified as out of the scope of this new guidance. Management conducted an assessment of the revenue streams that were affected by the new guidance and identified those considered material and in scope to ensure compliance with the new guidance concluding those related to credit and debit card fees, and service charges and fees on deposit accounts. No additional changes to processes or procedures were identified for the recognition of revenues in scope. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. However, additional disclosures required by the ASU have been included in “Note 15 - Revenue from Contracts with Customers” to the Company’s consolidated financial statements. On January 1, 2018, the FASB issued ASU No. 2016‑01, Financial Instruments - Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance improves the recognition and measurement of financial instruments. This ASU requires public business entities to use the exit price notion 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. Exit price is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. 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 adoption of ASU No. 2016-01 did not have a material impact on the Company’s consolidated financial statements. The disclosures to the Company’s consolidated financial statements have been updated appropriately using the exit price notion in “Note 8 – Fair Value of Financial Instruments”. In May 2018, the FASB issued ASU No. 2018-06, Codification Improvements to Topic 942, Financial Services - Depository and Lending. This ASU updates outdated guidance related to the Office of Comptroller of the Currency’s (OCC) Banking Circular 202, Accounting for Net Deferred Tax Charges, as the guidance has been rescinded by OCC and is no longer relevant. The amendments in this ASU are effective immediately. The adoption of ASU No. 2018-06 is not expected to have a material impact on the Company's consolidated financial statements. |
Securities Available-for-sale (
Securities Available-for-sale (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and December 31, 2017: June 30, 2018 Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Values SECURITIES AVAILABLE-FOR-SALE U.S. agency securities $ 16,064 $ 23 $ (165) $ 15,922 Corporate securities 7,092 6 (203) 6,895 Municipal bonds 10,871 — (389) 10,482 Mortgage-backed securities 50,570 24 (1,531) 49,063 U.S. Small Business Administration securities 16,578 — (475) 16,103 Total securities available-for-sale $ 101,175 $ 53 $ (2,763) $ 98,465 December 31, 2017 Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Values SECURITIES AVAILABLE-FOR-SALE U.S. agency securities $ 9,077 $ 49 $ (11) $ 9,115 Corporate securities 7,113 9 (96) 7,026 Municipal bonds 12,720 148 (82) 12,786 Mortgage-backed securities 40,161 63 (490) 39,734 U.S. Small Business Administration securities 14,014 — (195) 13,819 Total securities available-for-sale $ 83,085 $ 269 $ (874) $ 82,480 |
Schedule of Unrealized Loss on Investments | Investment securities that were in an unrealized loss position at June 30, 2018 and December 31, 2017 are presented in the following tables, based on the length of time individual securities have been in an unrealized loss position. Management believes 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. June 30, 2018 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses SECURITIES AVAILABLE-FOR-SALE U.S. agency securities $ 11,898 $ (165) $ — $ — $ 11,898 $ (165) Corporate securities 4,009 (87) 1,880 (116) 5,889 (203) Municipal bonds 8,659 (212) 1,823 (177) 10,482 (389) Mortgage-backed securities 27,807 (671) 17,532 (860) 45,339 (1,531) U.S. Small Business Administration securities 12,999 (358) 3,105 (117) 16,104 (475) Total $ 65,372 $ (1,493) $ 24,340 $ (1,270) $ 89,712 $ (2,763) December 31, 2017 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses SECURITIES AVAILABLE-FOR-SALE U.S. agency securities $ 2,987 $ (11) $ — $ — $ 2,987 $ (11) Corporate securities 4,102 (15) 1,915 (81) 6,017 (96) Municipal bonds 5,982 (82) — — 5,982 (82) Mortgage-backed securities 7,262 (61) 20,635 (429) 27,897 (490) U.S. Small Business Administration securities 11,876 (162) 1,943 (33) 13,819 (195) Total $ 32,209 $ (331) $ 24,493 $ (543) $ 56,702 $ (874) |
Schedule of Available for Sale Securities by Contractual Maturity | The contractual maturities of securities available-for-sale at June 30, 2018 and December 31, 2017 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. June 30, 2018 December 31, 2017 Amortized Fair Amortized Fair Cost Value Cost Value U.S. agency securities Due after five years through ten years $ 11,066 $ 10,994 $ 4,079 $ 4,124 Due after ten years 4,998 4,928 4,998 4,991 Subtotal 16,064 15,922 9,077 9,115 Corporate securities Due after one year through five years 6,096 5,990 5,117 5,111 Due after five years through ten years 996 905 1,996 1,915 Subtotal 7,092 6,895 7,113 7,026 Municipal bonds Due after one year through five years 2,659 2,589 2,001 2,026 Due after five years through ten years 1,150 1,130 4,111 4,206 Due after ten years 7,062 6,763 6,608 6,554 Subtotal 10,871 10,482 12,720 12,786 Mortgage-backed securities Federal National Mortgage Association (“FNMA”) 33,586 32,675 23,310 23,091 Federal Home Loan Mortgage Corporation (“FHLMC”) 11,185 10,757 10,818 10,629 Government National Mortgage Association (“GNMA”) 5,799 5,631 6,033 6,014 Subtotal 50,570 49,063 40,161 39,734 U.S. Small Business Administration securities Due after five years through ten years 14,672 14,263 12,065 11,896 Due after ten years 1,906 1,840 1,949 1,923 Subtotal 16,578 16,103 14,014 13,819 Total $ 101,175 $ 98,465 $ 83,085 $ 82,480 |
Schedule of 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 six months ended June 30, 2018 and 2017 were as follows: Three Months Ended Six Months Ended June 30, 2018 June 30, 2018 Gross Gross Gross Gross Proceeds Gains (Losses) Proceeds Gains (Losses) Securities available-for-sale $ — $ — $ — $ 5,305 $ 113 $ — Three Months Ended Six Months Ended June 30, 2017 June 30, 2017 Gross Gross Gross Gross Proceeds Gains (Losses) Proceeds Gains (Losses) Securities available-for-sale $ $ $ — $ 29,988 $ 237 $ — |
Loans Receivable and Allowanc27
Loans Receivable and Allowance For Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The composition of the loan portfolio was as follows at June 30, 2018 and December 31, 2017: June 30, December 31, 2018 2017 REAL ESTATE LOANS Commercial $ 64,599 $ 63,611 Construction and development 160,521 143,068 Home equity 25,460 25,289 One-to-four-family (excludes loans held for sale) 177,988 163,655 Multi-family 47,695 44,451 Total real estate loans 476,263 440,074 CONSUMER LOANS Indirect home improvement 147,067 130,176 Solar 42,189 41,049 Marine 48,591 35,397 Other consumer 2,027 2,046 Total consumer loans 239,874 208,668 COMMERCIAL BUSINESS LOANS Commercial and industrial 110,962 83,306 Warehouse lending 66,681 41,397 Total commercial business loans 177,643 124,703 Total loans receivable, gross 893,780 773,445 Allowance for loan losses (11,571) (10,756) Deferred costs and fees, net (2,885) (2,708) Premiums on purchased loans 1,876 1,577 Total loans receivable, net $ 881,200 $ 761,558 |
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 six months ended June 30, 2018 and 2017: At or For the Three Months Ended June 30, 2018 Commercial Real Estate Consumer Business Unallocated Total ALLOWANCE FOR LOAN LOSSES Beginning balance $ 4,780 $ 2,934 $ 2,311 $ 1,115 $ 11,140 Provision for loan losses 330 285 255 (420) 450 Charge-offs (1) (223) — — (224) Recoveries 16 188 1 — 205 Net recoveries (charge-offs) 15 (35) 1 — (19) Ending balance $ 5,125 $ 3,184 $ 2,567 $ 695 $ 11,571 Period end amount allocated to: Loans individually evaluated for impairment $ 21 $ 109 $ — $ — $ 130 Loans collectively evaluated for impairment 5,104 3,075 2,567 695 11,441 Ending balance $ 5,125 $ 3,184 $ 2,567 $ 695 $ 11,571 LOANS RECEIVABLE Loans individually evaluated for impairment $ 317 $ 310 $ — $ — $ 627 Loans collectively evaluated for impairment 475,946 239,564 177,643 — 893,153 Ending balance $ 476,263 $ 239,874 $ 177,643 $ — $ 893,780 At or For the Six Months Ended June 30, 2018 Commercial Real Estate Consumer Business Unallocated Total ALLOWANCE FOR LOAN LOSSES Beginning balance $ 4,770 $ 2,814 $ 2,014 $ 1,158 $ 10,756 Provision for loan losses 343 370 550 (463) 800 Charge-offs (4) (451) — — (455) Recoveries 16 451 3 — 470 Net recoveries 12 — 3 — 15 Ending balance $ 5,125 $ 3,184 $ 2,567 $ 695 $ 11,571 Period end amount allocated to: Loans individually evaluated for impairment $ 21 $ 109 $ — $ — $ 130 Loans collectively evaluated for impairment 5,104 3,075 2,567 695 11,441 Ending balance $ 5,125 $ 3,184 $ 2,567 $ 695 $ 11,571 LOANS RECEIVABLE Loans individually evaluated for impairment $ 317 $ 310 $ — $ — $ 627 Loans collectively evaluated for impairment 475,946 239,564 177,643 — 893,153 Ending balance $ 476,263 $ 239,874 $ 177,643 $ — $ 893,780 At or For the Three Months Ended June 30, 2017 Commercial Real Estate Consumer Business Unallocated Total ALLOWANCE FOR LOAN LOSSES Beginning balance $ 3,813 $ 2,588 $ 2,169 $ 1,577 $ 10,147 Provision for loan losses 331 87 282 (700) — Charge-offs — (179) — — (179) Recoveries — 173 2 — 175 Net (charge-offs) recoveries — (6) 2 — (4) Ending balance $ 4,144 $ 2,669 $ 2,453 $ 877 $ 10,143 Period end amount allocated to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 4,144 2,669 2,453 877 10,143 Ending balance $ 4,144 $ 2,669 $ 2,453 $ 877 $ 10,143 LOANS RECEIVABLE Loans individually evaluated for impairment $ 439 $ — $ — $ — $ 439 Loans collectively evaluated for impairment 397,256 190,729 131,878 — 719,863 Ending balance $ 397,695 $ 190,729 $ 131,878 $ — $ 720,302 At or For the Six Months Ended June 30, 2017 Commercial Real Estate Consumer Business Unallocated Total ALLOWANCE FOR LOAN LOSSES Beginning balance $ 3,547 $ 2,082 $ 2,675 $ 1,907 $ 10,211 Provision for loan losses 596 661 (227) (1,030) — Charge-offs — (384) — — (384) Recoveries 1 310 5 — 316 Net recoveries (charge-offs) 1 (74) 5 — (68) Ending balance $ 4,144 $ 2,669 $ 2,453 $ 877 $ 10,143 Period end amount allocated to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 4,144 2,669 2,453 877 10,143 Ending balance $ 4,144 $ 2,669 $ 2,453 $ 877 $ 10,143 LOANS RECEIVABLE Loans individually evaluated for impairment $ 439 $ — $ — $ — $ 439 Loans collectively evaluated for impairment 397,256 190,729 131,878 — 719,863 Ending balance $ 397,695 $ 190,729 $ 131,878 $ — $ 720,302 |
Past Due Financing Receivables | The following tables provide information pertaining to the aging analysis of contractually past due loans and non-accrual loans at June 30, 2018 and December 31, 2017: June 30, 2018 30-59 60-89 Days Days 90 Days Total Total Past Past or More Past Loans Non- Due Due Past Due Due Current Receivable Accrual REAL ESTATE LOANS Commercial $ — $ — $ — $ — $ 64,599 $ 64,599 $ — Construction and development — — — — 160,521 160,521 — Home equity — — 72 72 25,388 25,460 176 One-to-four-family — 141 — 141 177,847 177,988 141 Multi-family — — — — 47,695 47,695 — Total real estate loans — 141 72 213 476,050 476,263 317 CONSUMER LOANS Indirect home improvement 360 127 114 601 146,466 147,067 274 Solar 24 44 16 84 42,105 42,189 35 Marine 16 — — 16 48,575 48,591 — Other consumer 11 1 — 12 2,015 2,027 1 Total consumer loans 411 172 130 713 239,161 239,874 310 COMMERCIAL BUSINESS LOANS Commercial and industrial — — — — 110,962 110,962 — Warehouse lending — — — — 66,681 66,681 — Total commercial business loans — — — — 177,643 177,643 — Total loans $ 411 $ 313 $ 202 $ 926 $ 892,854 $ 893,780 $ 627 December 31, 2017 30-59 60-89 Days Days 90 Days Total Total Past Past or More Past Loans Non- Due Due Past Due Due Current Receivable Accrual REAL ESTATE LOANS Commercial $ — $ — $ — $ — $ 63,611 $ 63,611 $ — Construction and development — — — — 143,068 143,068 — Home equity 122 — 136 258 25,031 25,289 151 One-to-four-family 142 — — 142 163,513 163,655 142 Multi-family — — — — 44,451 44,451 — Total real estate loans 264 — 136 400 439,674 440,074 293 CONSUMER LOANS Indirect home improvement 255 215 99 569 129,607 130,176 195 Solar 49 19 — 68 40,981 41,049 — Marine — — — — 35,397 35,397 — Other consumer — — — — 2,046 2,046 — Total consumer loans 304 234 99 637 208,031 208,668 195 COMMERCIAL BUSINESS LOANS Commercial and industrial — 551 — 551 82,755 83,306 551 Warehouse lending — — — — 41,397 41,397 — Total commercial business loans — 551 — 551 124,152 124,703 551 Total loans $ 568 $ 785 $ 235 $ 1,588 $ 771,857 $ 773,445 $ 1,039 There were no loans 90 days or more past due and still accruing interest at June 30, 2018 and December 31, 2017. |
Impaired Financing Receivables | 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 was provided at June 30, 2018 and December 31, 2017: June 30, 2018 Unpaid Principal Recorded Related Balance Impairment Investment Allowance WITH NO RELATED ALLOWANCE RECORDED Home equity $ 176 $ — $ 176 $ — WITH RELATED ALLOWANCE RECORDED One-to-four-family 141 — 141 21 Consumer loans 310 — 310 109 451 — 451 130 Total $ 627 $ — $ 627 $ 130 December 31, 2017 Unpaid Principal Recorded Related Balance Impairment Investment Allowance WITH NO RELATED ALLOWANCE RECORDED Home equity $ 151 $ — $ 151 $ — One-to-four-family 67 (12) 55 — Total real estate loans 218 (12) 206 — Commercial business loans 551 — 551 — 769 (12) 757 — WITH RELATED ALLOWANCE RECORDED One-to-four-family 142 — 142 21 Consumer loans 195 — 195 68 337 — 337 89 Total $ 1,106 $ (12) $ 1,094 $ 89 The following table presents the average recorded investment in loans individually evaluated for impairment and the interest income recognized and received for the three and six months ended June 30, 2018 and 2017: At or For the Three Months Ended June 30, 2018 June 30, 2017 Average Recorded Interest Income Average Recorded Interest Income Investment Recognized Investment Recognized WITH NO RELATED ALLOWANCE RECORDED Home equity $ 148 $ 1 $ 240 $ — One-to-four-family (1) — — 201 1 Total real estate loans 148 1 441 1 WITH RELATED ALLOWANCE RECORDED One-to-four-family 271 1 — — Consumer loans 292 6 — — 563 7 — — Total $ 711 $ 8 $ 441 $ 1 ________________________ (1) Includes loans supported by Federal Housing Administration (“FHA”) guarantees. At or For the Six Months Ended June 30, 2018 June 30, 2017 Average Recorded Interest Income Average Recorded Interest Income Investment Recognized Investment Recognized WITH NO RELATED ALLOWANCE RECORDED Home equity $ 182 $ 3 $ 230 $ — One-to-four-family (1) — — 178 4 Total real estate loans 182 3 408 4 WITH AN ALLOWANCE RECORDED One-to-four-family 271 3 — — Consumer loans 276 11 — — 547 14 — — Total $ 729 $ 17 $ 408 $ 4 _______________________ (1) Includes loans supported by FHA guarantees. |
Financing Receivable Credit Quality Indicators | The following tables summarize risk rated loan balances by category at the dates indicated: June 30, 2018 Special Pass Watch Mention Substandard Doubtful Loss (1 - 5) (6) (7) (8) (9) (10) Total REAL ESTATE LOANS Commercial $ 64,599 $ — $ — $ — $ — $ — $ 64,599 Construction and development 160,521 — — — — — 160,521 Home equity 25,284 — — 176 — — 25,460 One-to-four-family 177,847 — — 141 — — 177,988 Multi-family 47,695 — — — — — 47,695 Total real estate loans 475,946 — — 317 — — 476,263 CONSUMER LOANS Indirect home improvement 146,793 — — 274 — — 147,067 Solar 42,154 — — 35 — — 42,189 Marine 48,591 — — — — — 48,591 Other consumer 2,026 — — 1 — — 2,027 Total consumer loans 239,564 — — 310 — — 239,874 COMMERCIAL BUSINESS LOANS Commercial and industrial 103,262 2,228 338 5,134 — — 110,962 Warehouse lending 66,681 — — — — — 66,681 Total commercial business loans 169,943 2,228 338 5,134 — — 177,643 Total loans receivable, gross $ 885,453 $ 2,228 $ 338 $ 5,761 $ — $ — $ 893,780 December 31, 2017 Special Pass Watch Mention Substandard Doubtful Loss (1 - 5) (6) (7) (8) (9) (10) Total REAL ESTATE LOANS Commercial $ 62,057 $ — $ 1,554 $ — $ — $ — $ 63,611 Construction and development 143,068 — — — — — 143,068 Home equity 25,138 — — 151 — — 25,289 One-to-four-family 163,513 — — 142 — — 163,655 Multi-family 44,451 — — — — — 44,451 Total real estate loans 438,227 — 1,554 293 — — 440,074 CONSUMER LOANS Indirect home improvement 129,981 — — 195 — — 130,176 Solar 41,049 — — — — — 41,049 Marine 35,397 — — — — — 35,397 Other consumer 1,998 — — 48 — — 2,046 Total consumer loans 208,425 — — 243 — — 208,668 COMMERCIAL BUSINESS LOANS Commercial and industrial 76,942 — 425 5,939 — — 83,306 Warehouse lending 40,724 673 — — — — 41,397 Total commercial business loans 117,666 673 425 5,939 — — 124,703 Total loans receivable, gross $ 764,318 $ 673 $ 1,979 $ 6,475 $ — $ — $ 773,445 |
Servicing Rights (Tables)
Servicing Rights (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Summary of servicing rights activity | The following table summarizes servicing rights activity for the three and six months ended June 30, 2018 and 2017: At or For the Three Months Ended June 30, 2018 2017 Beginning balance $ 7,515 $ 8,939 Additions 1,381 1,253 Sales — (4,751) Servicing rights amortized (544) (541) Impairment on servicing rights — (1) Ending balance $ 8,352 $ 4,899 At or For the Six Months Ended June 30, 2018 2017 Beginning balance $ 6,795 $ 8,459 Additions 2,519 2,242 Sales — (4,751) Servicing rights amortized (962) (1,050) Impairment on servicing rights — (1) Ending balance $ 8,352 $ 4,899 |
Valuation assumptions used in determining the fair value of servicing rights | Quantitative Information about Level 3 Fair Value Measurements - Shown in the table below is the fair value of financial instruments measured under a Level 3 unobservable input on a recurring and nonrecurring basis at June 30, 2018: Level 3 Significant Range Weighted Fair Value Instruments Valuation Technique Unobservable Inputs (Weighted Average) Average RECURRING Interest rate lock commitments with customers Quoted market prices Pull-through expectations 80% - 99% 94.8 % Individual forward sale commitments with investors Quoted market prices Pull-through expectations 80% - 99% 94.8 % NONRECURRING Impaired loans Fair value of underlying collateral Discount applied to the obtained appraisal 0% - 25% 20.7 % |
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 MSR to immediate adverse changes in those assumptions at June 30, 2018 and December 31, 2017 were as follows: June 30, 2018 December 31, 2017 Aggregate portfolio principal balance $ 952,257 $ 775,093 Weighted average rate of note 4.2 % % At June 30, 2018 Base 0.5%Adverse Rate Change 1.0%Adverse Rate Change Conditional prepayment rate 9.0 % 10.9 % 15.3 % Fair value MSR $ 12,016 $ 10,752 $ 9,162 Percentage of MSR 1.3 % 1.1 % 1.0 % Discount rate 9.8 % 10.3 % 10.8 % Fair value MSR $ 12,016 $ 11,754 $ 11,503 Percentage of MSR 1.3 % 1.2 % 1.2 % At December 31, 2017 Base 0.5%Adverse Rate Change 1.0%Adverse Rate Change Conditional prepayment rate 10.9 % 17.7 % 24.5 % Fair value MSR $ 8,602 $ 6,811 $ 5,614 Percentage of MSR 1.1 % 0.9 % 0.7 % Discount rate 9.6 % 10.1 % 10.6 % Fair value MSR $ 8,602 $ 8,433 $ 8,271 Percentage of MSR 1.1 % 1.1 % 1.1 % |
Mortgage servicing rights | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
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 June 30, 2018 2017 Key assumptions: Weighted average discount rate 9.5 % 9.5 % Conditional prepayment rate (“CPR”) 9.0 % 10.3 % Weighted average life in years 8.0 7.1 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following tables summarize the Company’s derivative instruments at the dates indicated: June 30, 2018 Fair Value Notional Asset Liability Fallout adjusted interest rate lock commitments with customers $ 49,621 $ 1,138 $ — Mandatory and best effort forward commitments with investors 24,739 — 18 Forward TBA mortgage-backed securities 70,000 — 199 TBA mortgage-backed securities forward sales paired off with investors 21,500 — 22 December 31, 2017 Fair Value Notional Asset Liability Fallout adjusted interest rate lock commitments with customers $ 31,951 $ 726 $ — Mandatory and best effort forward commitments with investors 12,505 51 — Forward TBA mortgage-backed securities 66,500 — 65 TBA mortgage-backed securities forward sales paired off with investors 36,500 53 — |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of Deposit Liabilities | June 30, December 31, 2018 (1) 2017 (1) Noninterest-bearing checking $ 172,848 $ 177,739 Interest-bearing checking 128,080 119,872 Savings 77,631 72,082 Money market (2) 210,742 228,742 Certificates of deposit less than $100,000 (3) 144,755 111,489 Certificates of deposit of $100,000 through $250,000 79,131 77,934 Certificates of deposit of $250,000 and over (4) 45,417 32,833 Escrow accounts related to mortgages serviced 11,509 9,151 Total $ 870,113 $ 829,842 (1) Includes $124.0 million of deposits at June 30, 2018 (that which is remaining from the purchase of four retail bank branches from Bank of America, National Association on January 22, 2016) and $134.6 million at December 31, 2017. (2) Includes $4.0 million of brokered deposits at June 30, 2018 and $6.5 million at December 31, 2017. (3) Includes $86.6 million and $59.3 million of brokered deposits at June 30, 2018 and December 31, 2017, respectively. (4) Time deposits that meet or exceed the FDIC insurance limit. |
Schedule of Maturities of Time Deposits for Future Periods | Scheduled maturities of time deposits at June 30, 2018 for future periods ending are as follows: At June 30, 2018 Maturing in 2018 $ 89,416 Maturing in 2019 90,581 Maturing in 2020 46,314 Maturing in 2021 23,286 Maturing in 2022 17,779 Thereafter 1,927 Total $ 269,303 |
Schedule of Interest Expense by Deposit Category | Interest expense by deposit category for the three and six months ended June 30, 2018 and 2017 is as follows: Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Interest-bearing checking $ 63 $ 14 $ 130 $ 22 Savings and money market 393 312 712 581 Certificates of deposit 976 570 1,833 1,145 Total $ 1,432 $ 896 $ 2,675 $ 1,748 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments to Extend Credit | The following table provides a summary of the Company’s commitments at June 30, 2018 and December 31, 2017: June 30, December 31, 2018 2017 COMMITMENTS TO EXTEND CREDIT REAL ESTATE LOANS Commercial $ 108 $ 107 Construction and development 79,038 73,321 One-to-four-family (includes locks for salable loans) 55,817 37,336 Home equity 35,750 32,889 Multi-family 616 438 Total real estate loans 171,329 144,091 CONSUMER LOANS 10,184 10,041 COMMERCIAL BUSINESS LOANS Commercial and industrial 53,995 52,452 Warehouse lending 44,019 78,303 Total commercial business loans 98,014 130,755 Total commitments to extend credit $ 279,527 $ 284,887 |
Fair Value of Financial Instr32
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 the dates indicated: Securities Available-for-Sale Level 1 Level 2 Level 3 Total At June 30, 2018 U.S. agency securities $ — $ 15,922 $ — $ 15,922 Corporate securities — 6,895 — 6,895 Municipal bonds — 10,482 — 10,482 Mortgage-backed securities — 49,063 — 49,063 U.S. Small Business Administration securities — 16,103 — 16,103 Total $ — $ 98,465 $ — $ 98,465 Securities Available-for-Sale Level 1 Level 2 Level 3 Total At December 31, 2017 U.S. agency securities $ — $ 9,115 $ — $ 9,115 Corporate securities — 7,026 — 7,026 Municipal bonds — 12,786 — 12,786 Mortgage-backed securities — 39,734 — 39,734 U.S. Small Business Administration securities — 13,819 — 13,819 Total $ — $ 82,480 $ — $ 82,480 |
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 the dates indicated: Mortgage Loans Held for Sale Level 1 Level 2 Level 3 Total June 30, 2018 $ — $ 55,191 $ — $ 55,191 December 31, 2017 $ — $ 53,463 $ — $ 53,463 |
Schedule of fair value of interest rate lock commitments | 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 the dates indicated: Interest Rate Lock Commitments with Customers Level 1 Level 2 Level 3 Total June 30, 2018 $ — $ — $ 1,138 $ 1,138 December 31, 2017 $ — $ — $ 726 $ 726 |
Schedule of forward sale commitments with investors | 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 the dates indicated: Individual Forward Sale Commitments with Investors Level 1 Level 2 Level 3 Total June 30, 2018 $ — $ (199) $ (18) $ (217) December 31, 2017 $ — $ (65) $ 51 $ (14) |
Schedule of paired off commitments with investors | 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 the dates indicated: Paired Off Commitments with Investors Level 1 Level 2 Level 3 Total June 30, 2018 $ — $ (22) $ — $ (22) December 31, 2017 $ — $ 53 $ — $ 53 |
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 periods indicated. The amounts disclosed below represent the fair values at the time the nonrecurring fair value measurements were evaluated. Impaired Loans Level 1 Level 2 Level 3 Total June 30, 2018 $ — $ — $ 627 $ 627 December 31, 2017 $ — $ — $ 1,094 $ 1,094 |
Valuation assumptions used in determining the fair value of servicing rights | Quantitative Information about Level 3 Fair Value Measurements - Shown in the table below is the fair value of financial instruments measured under a Level 3 unobservable input on a recurring and nonrecurring basis at June 30, 2018: Level 3 Significant Range Weighted Fair Value Instruments Valuation Technique Unobservable Inputs (Weighted Average) Average RECURRING Interest rate lock commitments with customers Quoted market prices Pull-through expectations 80% - 99% 94.8 % Individual forward sale commitments with investors Quoted market prices Pull-through expectations 80% - 99% 94.8 % NONRECURRING Impaired loans Fair value of underlying collateral Discount applied to the obtained appraisal 0% - 25% 20.7 % |
Fair value reconciliation - Level 3 on recurring basis | The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and six months ended June 30, 2018 and 2017: Net change in fair value for gains/ Purchases (losses) relating to Beginning and Sales and Ending items held at end of Three Months Ended June 30, Balance Issuances Settlements Balance period 2018 Interest rate lock commitments with customers $ 815 $ 3,140 $ (2,817) $ 1,138 $ 323 Individual forward sale commitments with investors 4 84 (106) (18) (22) 2017 Interest rate lock commitments with customers $ 1,437 $ 4,067 $ (4,292) $ 1,212 $ (225) Individual forward sale commitments with investors (19) (107) 209 83 102 Net change in fair value for gains/ Purchases (losses) relating to Beginning and Sales and Ending items held at end of Six Months Ended June 30, Balance Issuances Settlements Balance year 2018 Interest rate lock commitments with customers $ 726 $ 5,575 $ (5,163) $ 1,138 $ 412 Individual forward sale commitments with investors 51 656 (725) (18) (69) 2017 Interest rate lock commitments with customers $ 818 $ 7,549 $ (7,155) $ 1,212 $ 394 Individual forward sale commitments with investors 177 (303) 209 83 (94) |
Fair Value, by Balance Sheet Grouping | The following table provides estimated fair values of the Company’s financial instruments at June 30, 2018 and December 31, 2017, whether or not recognized at fair value in the Consolidated Balance Sheets: June 30, December 31, 2018 2017 Carrying Fair Carrying Fair Amount Value Amount Value Financial Assets Level 1 inputs: Cash and cash equivalents $ 21,977 $ 21,977 $ 18,915 $ 18,915 Certificates of deposit at other financial institutions 17,611 17,611 18,108 18,108 Level 2 inputs: Securities available-for-sale, at fair value 98,465 98,465 82,480 82,480 Loans held for sale, at fair value 55,191 55,191 53,463 53,463 FHLB stock, at cost 7,742 7,742 2,871 2,871 Accrued interest receivable 4,071 4,071 3,566 3,566 Paired off commitments with investors — — 53 53 Level 3 inputs: Loans receivable, gross 893,780 882,819 773,445 780,551 Servicing rights, held at lower of cost or fair value 8,352 12,022 6,795 8,608 Fair value interest rate locks with customers 1,138 1,138 726 726 Individual forward sale commitments with investors — — 51 51 Financial Liabilities Level 2 inputs: Deposits 870,113 863,210 829,842 838,087 Borrowings 106,526 106,442 7,529 7,498 Subordinated note 9,855 10,741 9,845 10,741 Accrued interest payable 289 289 214 214 Paired off commitments with investors 22 22 — — Individual forward sale commitments with investors 199 199 65 65 Level 3 inputs: Individual forward sale commitments with investors — — |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Shares Under ESOP | Shares held by the ESOP at June 30, 2018 and 2017 were as follows (shown as actual): Balances Balances at June 30, 2018 at June 30, 2017 Allocated shares 153,049 126,589 Committed to be released shares 12,960 12,960 Unallocated shares 90,724 116,645 Total ESOP shares 256,733 256,194 Fair value of unallocated shares (in thousands) $ 5,262 $ 4,987 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 six months ended June 30, 2018 and 2017: At or For the Three Months Ended June 30, At or For the Six Months Ended June 30, Numerator: 2018 2017 2018 2017 Net income (in thousands) $ 4,257 $ 4,359 $ 8,579 $ 6,952 Denominator: Basic weighted average common shares outstanding 3,583,927 2,903,323 3,573,560 2,891,116 Dilutive shares 181,797 194,305 188,519 193,276 Diluted weighted average common shares outstanding 3,765,724 3,097,628 3,762,079 3,084,392 Basic earnings per share $ 1.19 $ 1.50 $ 2.40 $ 2.40 Diluted earnings per share $ 1.13 $ 1.41 $ 2.28 $ 2.25 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 six months ended June 30, 2018 (shown as actual): Weighted-Average Weighted- Remaining Average Contractual Term In Aggregate Shares Exercise Price Years Intrinsic Value Outstanding at January 1, 2018 256,237 $ 16.89 6.36 $ 9,655,010 Granted — — — — Less exercised 32,833 $ 16.89 — $ 1,318,296 Forfeited or expired — — — — Outstanding at June 30, 2018 223,404 $ 16.89 5.63 $ 10,357,009 Expected to vest, assuming a 0.31% annual forfeiture rate (1) 223,242 $ 16.89 5.63 $ 10,349,515 Exercisable at June 30, 2018 162,604 $ 16.89 5.54 $ 7,538,321 (1) Forfeiture rate has been calculated and estimated to assume a forfeiture of 1/32 over the 10-year contractual life, or 3.1% of the options forfeited over 10 years. |
Summary of Nonvested Awards | The following table presents a summary of the Company’s nonvested awards during the six months ended June 30, 2018 (shown as actual): Weighted-Average Grant-Date Fair Value Nonvested Shares Shares Per Share Nonvested at January 1, 2018 36,842 $ 17.63 Granted — — Less vested 18,421 $ 17.63 Forfeited or expired — — Nonvested at June 30, 2018 18,421 $ 17.63 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table compares the Bank’s actual capital amounts and ratios at June 30, 2018 and December 31, 2017 to their minimum regulatory capital requirements and well capitalized regulatory capital at those dates (dollars in thousands): To be Well Capitalized Under Prompt For Capital For Capital Adequacy Corrective Actual Adequacy Purposes with Capital Buffer Action Provisions Bank Only Amount Ratio Amount Ratio Amount Ratio Amount Ratio At June 30, 2018 Total risk-based capital (to risk-weighted assets) $ 143,480 15.57 % $ 73,699 8.00 % $ 91,018 9.88 % $ 92,124 10.00 % Tier 1 risk-based capital (to risk-weighted assets) $ 131,961 14.32 % $ 55,274 6.00 % $ 72,594 7.88 % $ 73,699 8.00 % Tier 1 leverage capital (to average assets) $ 131,961 12.23 % $ 43,157 4.00 % N/A N/A $ 53,946 5.00 % CET 1 capital (to risk-weighted assets) $ 131,961 14.32 % $ 41,456 4.50 % $ 64,487 7.00 % $ 59,881 6.50 % At December 31, 2017 Total risk-based capital (to risk-weighted assets) $ 133,967 16.25 % $ 65,965 8.00 % $ 76,272 9.25 % $ 82,456 10.00 % Tier 1 risk-based capital (to risk-weighted assets) $ 123,651 15.00 % $ 49,474 6.00 % $ 59,781 7.25 % $ 65,965 8.00 % Tier 1 leverage capital (to average assets) $ 123,651 12.61 % $ 39,233 4.00 % N/A N/A $ 49,041 5.00 % CET 1 capital (to risk-weighted assets) $ 123,651 15.00 % $ 37,105 4.50 % $ 47,412 5.75 % $ 53,597 6.50 % |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The tables below summarize the financial results for each segment based primarily on the number of FTEs and assets within each segment for the three and six months ended June 30, 2018 and 2017: At or For the Three Months Ended June 30, 2018 Home Lending Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 764 $ 11,161 $ 11,925 Provision for loan losses (149) (301) (450) Noninterest income 4,447 1,167 5,614 Noninterest expense (4,508) (7,636) (12,144) Income before provision for income taxes 554 4,391 4,945 Provision for income taxes (78) (610) (688) Net income $ 476 $ 3,781 $ 4,257 Total average assets at period end $ 222,687 $ 860,175 $ 1,082,862 FTEs 117 219 336 At or For the Three Months Ended June 30, 2017 Home Lending Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 415 $ 9,551 $ 9,966 Provision for loan losses (117) 117 — Noninterest income 5,462 1,495 6,957 Noninterest expense (4,382) (6,562) (10,944) Income before provision for income taxes 1,378 4,601 5,979 Provision for income taxes (374) (1,246) (1,620) Net income $ 1,004 $ 3,355 $ 4,359 Total average assets at period end $ 197,431 $ 705,052 $ 902,483 FTEs 117 207 324 At or For the Six Months Ended June 30, 2018 Home Lending Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 1,479 $ 21,943 $ 23,422 Provision for loan losses (145) (655) (800) Noninterest income 8,213 2,425 10,638 Noninterest expense (8,564) (14,615) (23,179) Income before provision for income taxes 983 9,098 10,081 Provision for income taxes (146) (1,356) (1,502) Net income $ 837 $ 7,742 $ 8,579 Total average assets at quarter end $ 219,553 $ 830,419 $ 1,049,972 FTEs 117 219 336 At or For the Six Months Ended June 30, 2017 Home Lending Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 1,045 $ 17,896 $ 18,941 Provision for loan losses (197) 197 — Noninterest income 9,849 2,528 12,377 Noninterest expense (8,399) (12,922) (21,321) Income before provision for income taxes 2,298 7,699 9,997 Provision for income taxes (700) (2,345) (3,045) Net income $ 1,598 $ 5,354 $ 6,952 Total average assets at period end $ 184,499 $ 686,294 $ 870,793 FTEs 117 207 324 Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to the other segment. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of assigned liabilities to fund segment assets. |
Goodwill And Other Intangible38
Goodwill And Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in other intangible assets | The following table summarizes the changes in the Company’s other intangible assets for the year ended December 31, 2017, and the six months ended June 30, 2018. Other Intangible Assets Accumulated Gross Amortization Net Balance, December 31, 2016 $ 2,239 $ (522) $ 1,717 Amortization — (400) (400) Balance, December 31, 2017 2,239 (922) 1,317 Amortization — (153) (153) Balance, June 30, 2018 $ 2,239 $ (1,075) $ 1,164 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Amortization expense for core deposit intangible is expected to be as follows at June 30, 2018: Remainder of 2018 $ 154 2019 235 2020 181 2021 166 2022 166 Thereafter 262 Total $ 1,164 |
Basis of Presentation and Sum39
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands | Jul. 17, 2018USD ($)item | Jun. 30, 2018USD ($)item | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)segmentitem | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Jul. 09, 2012 |
Schedule of Accounting Policies [Line Items] | |||||||
Percentage of common shares purchased under ESOP | 8.00% | ||||||
Number of business segments | segment | 2 | ||||||
Goodwill impairment | $ | $ 0 | ||||||
Marketing and advertising expense | $ | $ 215 | $ 182 | $ 364 | $ 320 | |||
Proforma adjustment | ASU 2016-02 | |||||||
Schedule of Accounting Policies [Line Items] | |||||||
Operating lease right of use asset | $ | $ 4,700 | ||||||
Puget Sound [Member] | |||||||
Schedule of Accounting Policies [Line Items] | |||||||
Number of bank branches | 13 | 13 | |||||
Number of Loan Production Facilities | 7 | 7 | |||||
Tri-Cities, Washington [Member] | |||||||
Schedule of Accounting Policies [Line Items] | |||||||
Number of Loan Production Facilities | 1 | 1 | |||||
Anchor Bancorp | |||||||
Schedule of Accounting Policies [Line Items] | |||||||
Number of bank branches | 9 | ||||||
Number of Loan Production Facilities | 1 | ||||||
Anchor Bancorp | Forecast | |||||||
Subsequent Events | |||||||
Aggregate consideration paid | $ | $ 77,000 |
Securities Available-for-sale -
Securities Available-for-sale - Available-for-sale securities reconciliation (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost | $ 101,175 | $ 83,085 |
Unrealized gains | 53 | 269 |
Unrealized losses | (2,763) | (874) |
Securities available-for-sale, at fair value | 98,465 | 82,480 |
U.S. agency securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost | 16,064 | 9,077 |
Unrealized gains | 23 | 49 |
Unrealized losses | (165) | (11) |
Securities available-for-sale, at fair value | 15,922 | 9,115 |
Corporate securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost | 7,092 | 7,113 |
Unrealized gains | 6 | 9 |
Unrealized losses | (203) | (96) |
Securities available-for-sale, at fair value | 6,895 | 7,026 |
Municipal bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost | 10,871 | 12,720 |
Unrealized gains | 0 | 148 |
Unrealized losses | (389) | (82) |
Securities available-for-sale, at fair value | 10,482 | 12,786 |
Mortgage-backed securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost | 50,570 | 40,161 |
Unrealized gains | 24 | 63 |
Unrealized losses | (1,531) | (490) |
Securities available-for-sale, at fair value | 49,063 | 39,734 |
U.S. Small Business Administration securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost | 16,578 | 14,014 |
Unrealized gains | 0 | 0 |
Unrealized losses | (475) | (195) |
Securities available-for-sale, at fair value | $ 16,103 | $ 13,819 |
Securities Available-for-sale41
Securities Available-for-sale - Narrative (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018USD ($)security | Dec. 31, 2017USD ($)security | |
Investments, Debt and Equity Securities [Abstract] | ||
Investments with unrealized losses of less than one year | security | 45 | 21 |
Investments with unrealized losses of more than one year | security | 18 | 17 |
Number of securities pledged and held at FHLB | security | 7 | 9 |
Pledged securities for FHLB | $ 10,800,000 | $ 10,700,000 |
Public deposits | 7,400,000 | 7,600,000 |
Collateral requirement | 3,000,000 | 3,200,000 |
Other than temporary impairment losses, investments | $ 0 | $ 0 |
Securities Available-for-sale42
Securities Available-for-sale - Investments with Unrealized Losses Policy (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value | ||
Unrealized loss positon, Fair Value, Less than 12 Months | $ 65,372 | $ 32,209 |
Unrealized loss position, Fair Value, 12 Months or Longer | 24,340 | 24,493 |
Unrealized loss position, Fair Value | 89,712 | 56,702 |
Unrealized Losses | ||
Unrealized loss position, Unrealized losses, Less than 12 Months | (1,493) | (331) |
Unrealized loss position, Unrealized losses, 12 Months or Longer | (1,270) | (543) |
Unrealized losses | (2,763) | (874) |
U.S. agency securities | ||
Fair Value | ||
Unrealized loss positon, Fair Value, Less than 12 Months | 11,898 | 2,987 |
Unrealized loss position, Fair Value, 12 Months or Longer | 0 | 0 |
Unrealized loss position, Fair Value | 11,898 | 2,987 |
Unrealized Losses | ||
Unrealized loss position, Unrealized losses, Less than 12 Months | (165) | (11) |
Unrealized loss position, Unrealized losses, 12 Months or Longer | 0 | 0 |
Unrealized losses | (165) | (11) |
Corporate securities | ||
Fair Value | ||
Unrealized loss positon, Fair Value, Less than 12 Months | 4,009 | 4,102 |
Unrealized loss position, Fair Value, 12 Months or Longer | 1,880 | 1,915 |
Unrealized loss position, Fair Value | 5,889 | 6,017 |
Unrealized Losses | ||
Unrealized loss position, Unrealized losses, Less than 12 Months | (87) | (15) |
Unrealized loss position, Unrealized losses, 12 Months or Longer | (116) | (81) |
Unrealized losses | (203) | (96) |
Municipal bonds | ||
Fair Value | ||
Unrealized loss positon, Fair Value, Less than 12 Months | 8,659 | 5,982 |
Unrealized loss position, Fair Value, 12 Months or Longer | 1,823 | 0 |
Unrealized loss position, Fair Value | 10,482 | 5,982 |
Unrealized Losses | ||
Unrealized loss position, Unrealized losses, Less than 12 Months | (212) | (82) |
Unrealized loss position, Unrealized losses, 12 Months or Longer | (177) | 0 |
Unrealized losses | (389) | (82) |
Mortgage-backed securities | ||
Fair Value | ||
Unrealized loss positon, Fair Value, Less than 12 Months | 27,807 | 7,262 |
Unrealized loss position, Fair Value, 12 Months or Longer | 17,532 | 20,635 |
Unrealized loss position, Fair Value | 45,339 | 27,897 |
Unrealized Losses | ||
Unrealized loss position, Unrealized losses, Less than 12 Months | (671) | (61) |
Unrealized loss position, Unrealized losses, 12 Months or Longer | (860) | (429) |
Unrealized losses | (1,531) | (490) |
U.S. Small Business Administration securities | ||
Fair Value | ||
Unrealized loss positon, Fair Value, Less than 12 Months | 12,999 | 11,876 |
Unrealized loss position, Fair Value, 12 Months or Longer | 3,105 | 1,943 |
Unrealized loss position, Fair Value | 16,104 | 13,819 |
Unrealized Losses | ||
Unrealized loss position, Unrealized losses, Less than 12 Months | (358) | (162) |
Unrealized loss position, Unrealized losses, 12 Months or Longer | (117) | (33) |
Unrealized losses | $ (475) | $ (195) |
Securities Available-for-sale43
Securities Available-for-sale - Available for Sale Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Total | $ 101,175 | $ 83,085 |
Fair Value | ||
Total | 98,465 | 82,480 |
U.S. agency securities | ||
Amortized Cost | ||
Due after five years through ten years | 11,066 | 4,079 |
Due after ten years | 4,998 | 4,998 |
Subtotal | 16,064 | 9,077 |
Total | 16,064 | 9,077 |
Fair Value | ||
Due after five years through ten years | 10,994 | 4,124 |
Due after ten years | 4,928 | 4,991 |
Subtotal | 15,922 | 9,115 |
Total | 15,922 | 9,115 |
Corporate securities | ||
Amortized Cost | ||
Due after one year through five years | 6,096 | 5,117 |
Due after five years through ten years | 996 | 1,996 |
Subtotal | 7,092 | 7,113 |
Total | 7,092 | 7,113 |
Fair Value | ||
Due after one year through five years | 5,990 | 5,111 |
Due after five years through ten years | 905 | 1,915 |
Subtotal | 6,895 | 7,026 |
Total | 6,895 | 7,026 |
Municipal bonds | ||
Amortized Cost | ||
Due after one year through five years | 2,659 | 2,001 |
Due after five years through ten years | 1,150 | 4,111 |
Due after ten years | 7,062 | 6,608 |
Subtotal | 10,871 | 12,720 |
Total | 10,871 | 12,720 |
Fair Value | ||
Due after one year through five years | 2,589 | 2,026 |
Due after five years through ten years | 1,130 | 4,206 |
Due after ten years | 6,763 | 6,554 |
Subtotal | 10,482 | 12,786 |
Total | 10,482 | 12,786 |
Mortgage-backed securities | ||
Amortized Cost | ||
Mortgage-backed securities | 50,570 | 40,161 |
Total | 50,570 | 40,161 |
Fair Value | ||
Mortgage-backed securities | 49,063 | 39,734 |
Total | 49,063 | 39,734 |
Federal National Mortgage Association ("FNMA") | ||
Amortized Cost | ||
Mortgage-backed securities | 33,586 | 23,310 |
Fair Value | ||
Mortgage-backed securities | 32,675 | 23,091 |
Federal Home Loan Mortgage Corporation ("FHLMC") | ||
Amortized Cost | ||
Mortgage-backed securities | 11,185 | 10,818 |
Fair Value | ||
Mortgage-backed securities | 10,757 | 10,629 |
Government National Mortgage Association ("GNMA") | ||
Amortized Cost | ||
Mortgage-backed securities | 5,799 | 6,033 |
Fair Value | ||
Mortgage-backed securities | 5,631 | 6,014 |
U.S. Small Business Administration securities | ||
Amortized Cost | ||
Due after five years through ten years | 14,672 | 12,065 |
Due after ten years | 1,906 | 1,949 |
Subtotal | 16,578 | 14,014 |
Total | 16,578 | 14,014 |
Fair Value | ||
Due after five years through ten years | 14,263 | 11,896 |
Due after ten years | 1,840 | 1,923 |
Subtotal | 16,103 | 13,819 |
Total | $ 16,103 | $ 13,819 |
Securities Available-for-sale44
Securities Available-for-sale - Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross Gains | $ 0 | $ 237 | $ 113 | $ 237 |
Gross (Losses) | 0 | 0 | 0 | 0 |
Proceeds | $ 0 | $ 29,988 | $ 5,305 | $ 29,988 |
Loans Receivable and Allowanc45
Loans Receivable and Allowance For Loan Losses - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 893,780 | $ 773,445 |
Allowance for loan losses | (11,571) | (10,756) |
Deferred costs and fees, net | (2,885) | (2,708) |
Premiums on purchased loans | 1,876 | 1,577 |
Loans receivable, net | 881,200 | 761,558 |
CONSUMER LOANS | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 239,874 | 208,668 |
Indirect home improvement | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 147,067 | 130,176 |
Solar | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 42,189 | 41,049 |
Marine | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 48,591 | 35,397 |
Other consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,027 | 2,046 |
COMMERCIAL BUSINESS LOANS | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 177,643 | 124,703 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 110,962 | 83,306 |
Warehouse lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 66,681 | 41,397 |
Residential Portfolio Segment | REAL ESTATE LOANS | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 476,263 | 440,074 |
Residential Portfolio Segment | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 64,599 | 63,611 |
Residential Portfolio Segment | Construction and development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 160,521 | 143,068 |
Residential Portfolio Segment | Home equity. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 25,460 | 25,289 |
Residential Portfolio Segment | One-to-four-family (1) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 177,988 | 163,655 |
Residential Portfolio Segment | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 47,695 | $ 44,451 |
Loans Receivable and Allowanc46
Loans Receivable and Allowance For Loan Losses - Narrative (Details) | Jun. 30, 2018segmentitem | Dec. 31, 2017segmentitem |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan portfolio segments | segment | 3 | 3 |
Multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of units in real estate property | item | 5 | 5 |
Loans Receivable and Allowanc47
Loans Receivable and Allowance For Loan Losses - Allowance for Loan Losses by Loan Categories (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | |
ALLOWANCE FOR LOAN LOSSES | |||||||
Beginning balance | $ 11,140 | $ 10,147 | $ 10,756 | $ 10,211 | |||
Provision for loan loss | 450 | 0 | 800 | 0 | |||
Charge-offs | (224) | (179) | (455) | (384) | |||
Recoveries | 205 | 175 | 470 | 316 | |||
Net recoveries (charge-offs) | (19) | (4) | 15 | (68) | |||
Ending balance | 11,571 | 10,143 | 11,571 | 10,143 | |||
Loans individually evaluated for impairment | $ 130 | $ 0 | |||||
Loans collectively evaluated for impairment | 11,441 | 10,143 | |||||
Period end amount allocated | 11,140 | 10,147 | 10,756 | 10,211 | 11,571 | $ 10,756 | 10,143 |
LOANS RECEIVABLE | |||||||
Loans individually evaluated for impairment | 627 | 439 | |||||
Loans collectively evaluated for impairment | 893,153 | 719,863 | |||||
Total loans receivable | 893,780 | 773,445 | 720,302 | ||||
REAL ESTATE LOANS | |||||||
ALLOWANCE FOR LOAN LOSSES | |||||||
Beginning balance | 4,780 | 3,813 | 4,770 | 3,547 | |||
Provision for loan loss | 330 | 331 | 343 | 596 | |||
Charge-offs | (1) | 0 | (4) | 0 | |||
Recoveries | 16 | 0 | 16 | 1 | |||
Net recoveries (charge-offs) | 15 | 0 | 12 | 1 | |||
Ending balance | 5,125 | 4,144 | 5,125 | 4,144 | |||
Loans individually evaluated for impairment | 21 | 0 | |||||
Loans collectively evaluated for impairment | 5,104 | 4,144 | |||||
Period end amount allocated | 4,780 | 3,813 | 4,770 | 3,547 | 5,125 | 4,770 | 4,144 |
LOANS RECEIVABLE | |||||||
Loans individually evaluated for impairment | 317 | 439 | |||||
Loans collectively evaluated for impairment | 475,946 | 397,256 | |||||
Total loans receivable | 476,263 | 440,074 | 397,695 | ||||
CONSUMER LOANS | |||||||
ALLOWANCE FOR LOAN LOSSES | |||||||
Beginning balance | 2,934 | 2,588 | 2,814 | 2,082 | |||
Provision for loan loss | 285 | 87 | 370 | 661 | |||
Charge-offs | (223) | (179) | (451) | (384) | |||
Recoveries | 188 | 173 | 451 | 310 | |||
Net recoveries (charge-offs) | (35) | (6) | 0 | (74) | |||
Ending balance | 3,184 | 2,669 | 3,184 | 2,669 | |||
Loans individually evaluated for impairment | 109 | 0 | |||||
Loans collectively evaluated for impairment | 3,075 | 2,669 | |||||
Period end amount allocated | 2,934 | 2,588 | 2,814 | 2,082 | 3,184 | 2,814 | 2,669 |
LOANS RECEIVABLE | |||||||
Loans individually evaluated for impairment | 310 | 0 | |||||
Loans collectively evaluated for impairment | 239,564 | 190,729 | |||||
Total loans receivable | 239,874 | 208,668 | 190,729 | ||||
COMMERCIAL BUSINESS LOANS | |||||||
ALLOWANCE FOR LOAN LOSSES | |||||||
Beginning balance | 2,311 | 2,169 | 2,014 | 2,675 | |||
Provision for loan loss | 255 | 282 | 550 | (227) | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 1 | 2 | 3 | 5 | |||
Net recoveries (charge-offs) | 1 | 2 | 3 | 5 | |||
Ending balance | 2,567 | 2,453 | 2,567 | 2,453 | |||
Loans individually evaluated for impairment | 0 | 0 | |||||
Loans collectively evaluated for impairment | 2,567 | 2,453 | |||||
Period end amount allocated | 2,311 | 2,169 | 2,014 | 2,675 | 2,567 | 2,014 | 2,453 |
LOANS RECEIVABLE | |||||||
Loans individually evaluated for impairment | 0 | 0 | |||||
Loans collectively evaluated for impairment | 177,643 | 131,878 | |||||
Total loans receivable | 177,643 | 124,703 | 131,878 | ||||
Unallocated Financing Receivables [Member] | |||||||
ALLOWANCE FOR LOAN LOSSES | |||||||
Beginning balance | 1,115 | 1,577 | 1,158 | 1,907 | |||
Provision for loan loss | (420) | (700) | (463) | (1,030) | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Net recoveries (charge-offs) | 0 | 0 | 0 | 0 | |||
Ending balance | 695 | 877 | 695 | 877 | |||
Loans individually evaluated for impairment | 0 | 0 | |||||
Loans collectively evaluated for impairment | 695 | 877 | |||||
Period end amount allocated | $ 1,115 | $ 1,577 | $ 1,158 | $ 1,907 | 695 | $ 1,158 | 877 |
LOANS RECEIVABLE | |||||||
Loans individually evaluated for impairment | 0 | 0 | |||||
Loans collectively evaluated for impairment | 0 | 0 | |||||
Total loans receivable | $ 0 | $ 0 |
Loans Receivable and Allowanc48
Loans Receivable and Allowance For Loan Losses - Aging Analysis of Past Due Loans (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 0 | $ 0 | |
Total Past Due | 926,000 | 1,588,000 | |
Current | 892,854,000 | 771,857,000 | |
Total loans receivable | 893,780,000 | 773,445,000 | $ 720,302,000 |
REAL ESTATE LOANS | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans receivable | 476,263,000 | 440,074,000 | 397,695,000 |
Total real estate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 213,000 | 400,000 | |
Current | 476,050,000 | 439,674,000 | |
Total loans receivable | 476,263,000 | 440,074,000 | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 64,599,000 | 63,611,000 | |
Total loans receivable | 64,599,000 | 63,611,000 | |
Construction and development | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 160,521,000 | 143,068,000 | |
Total loans receivable | 160,521,000 | 143,068,000 | |
Home equity. | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 72,000 | 258,000 | |
Current | 25,388,000 | 25,031,000 | |
Total loans receivable | 25,460,000 | 25,289,000 | |
One-to-four-family (1) | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 141,000 | 142,000 | |
Current | 177,847,000 | 163,513,000 | |
Total loans receivable | 177,988,000 | 163,655,000 | |
Multi-family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 47,695,000 | 44,451,000 | |
Total loans receivable | 47,695,000 | 44,451,000 | |
CONSUMER LOANS | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 713,000 | 637,000 | |
Current | 239,161,000 | 208,031,000 | |
Total loans receivable | 239,874,000 | 208,668,000 | 190,729,000 |
Indirect home improvement | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 601,000 | 569,000 | |
Current | 146,466,000 | 129,607,000 | |
Total loans receivable | 147,067,000 | 130,176,000 | |
Solar | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 84,000 | 68,000 | |
Current | 42,105,000 | 40,981,000 | |
Total loans receivable | 42,189,000 | 41,049,000 | |
Marine | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 16,000 | 0 | |
Current | 48,575,000 | 35,397,000 | |
Total loans receivable | 48,591,000 | 35,397,000 | |
Other consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 12,000 | 0 | |
Current | 2,015,000 | 2,046,000 | |
Total loans receivable | 2,027,000 | 2,046,000 | |
COMMERCIAL BUSINESS LOANS | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 551,000 | |
Current | 177,643,000 | 124,152,000 | |
Total loans receivable | 177,643,000 | 124,703,000 | $ 131,878,000 |
Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 551,000 | |
Current | 110,962,000 | 82,755,000 | |
Total loans receivable | 110,962,000 | 83,306,000 | |
Warehouse lending | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 66,681,000 | 41,397,000 | |
Total loans receivable | 66,681,000 | 41,397,000 | |
30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 411,000 | 568,000 | |
30-59 Days Past Due | Total real estate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 264,000 | |
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 | 0 | 122,000 | |
30-59 Days Past Due | One-to-four-family (1) | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 142,000 | |
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 | 411,000 | 304,000 | |
30-59 Days Past Due | Indirect home improvement | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 360,000 | 255,000 | |
30-59 Days Past Due | Solar | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 24,000 | 49,000 | |
30-59 Days Past Due | Marine | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 16,000 | 0 | |
30-59 Days Past Due | Other consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 11,000 | 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 | 313,000 | 785,000 | |
60-89 Days Past Due | Total real estate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 141,000 | 0 | |
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 | 0 | 0 | |
60-89 Days Past Due | One-to-four-family (1) | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 141,000 | 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 | 172,000 | 234,000 | |
60-89 Days Past Due | Indirect home improvement | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 127,000 | 215,000 | |
60-89 Days Past Due | Solar | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 44,000 | 19,000 | |
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 | 551,000 | |
60-89 Days Past Due | Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 551,000 | |
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 | 202,000 | 235,000 | |
90 Days or More Past Due | Total real estate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 72,000 | 136,000 | |
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 | 72,000 | 136,000 | |
90 Days or More Past Due | One-to-four-family (1) | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
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 | 130,000 | 99,000 | |
90 Days or More Past Due | Indirect home improvement | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 114,000 | 99,000 | |
90 Days or More Past Due | Solar | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 16,000 | 0 | |
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 | 627,000 | 1,039,000 | |
Non-Accrual | Total real estate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 317,000 | 293,000 | |
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 | 176,000 | 151,000 | |
Non-Accrual | One-to-four-family (1) | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 141,000 | 142,000 | |
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 | 310,000 | 195,000 | |
Non-Accrual | Indirect home improvement | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 274,000 | 195,000 | |
Non-Accrual | Solar | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 35,000 | 0 | |
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 | 1,000 | 0 | |
Non-Accrual | COMMERCIAL BUSINESS LOANS | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 551,000 | |
Non-Accrual | Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 551,000 | |
Non-Accrual | Warehouse lending | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 0 | $ 0 |
Loans Receivable and Allowanc49
Loans Receivable and Allowance For Loan Losses - Financing Receivables, Related Allowance Recorded and No Related Allowance Recorder (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Unpaid Principal Balance, with no related allowance recorded | $ 769 | ||||
Unpaid Principal Balance, with related allowance recorded | $ 451 | $ 451 | 337 | ||
Impaired Financing Receivable, Unpaid Principal Balance, Total | 627 | 627 | 1,106 | ||
Impaired Financing Receivable, Write-downs [Abstract] | |||||
Impairment | (12) | ||||
Write-downs with related allowance recorded | 0 | 0 | 0 | ||
Write-downs | 0 | 0 | (12) | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Recorded Investment, with no related allowance recorded | 757 | ||||
Recorded Investment, with related allowance recorded | 451 | 451 | 337 | ||
Recorded Investment | 627 | 627 | 1,094 | ||
Impaired Financing Receivable Related Allowance Abstract | |||||
Related Allowance, with no related allowance recorded | 0 | ||||
Related Allowance, with related allowance recorded | 130 | 130 | 89 | ||
Related Allowance | 130 | 130 | 89 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Average Recorded Investment, with related allowance recorded | 563 | $ 0 | 547 | $ 0 | |
Impaired Financing Receivable, Average Recorded Investment | 711 | 441 | 729 | 408 | |
Impaired Financing Receivable, Interest Income [Abstract] | |||||
Interest Income Recognized, with related allowance recorded | 7 | 0 | 14 | 0 | |
Interest Income Recognized | 8 | 1 | 17 | 4 | |
CONSUMER LOANS | |||||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Unpaid Principal Balance, with related allowance recorded | 310 | 310 | 195 | ||
Impaired Financing Receivable, Write-downs [Abstract] | |||||
Write-downs with related allowance recorded | 0 | 0 | 0 | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Recorded Investment, with related allowance recorded | 310 | 310 | 195 | ||
Impaired Financing Receivable Related Allowance Abstract | |||||
Related Allowance, with related allowance recorded | 109 | 109 | 68 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Average Recorded Investment, with related allowance recorded | 292 | 0 | 276 | 0 | |
Impaired Financing Receivable, Interest Income [Abstract] | |||||
Interest Income Recognized, with related allowance recorded | 6 | 0 | 11 | 0 | |
COMMERCIAL BUSINESS LOANS | |||||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Unpaid Principal Balance, with no related allowance recorded | 551 | ||||
Impaired Financing Receivable, Write-downs [Abstract] | |||||
Impairment | 0 | ||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Recorded Investment, with no related allowance recorded | 551 | ||||
Impaired Financing Receivable Related Allowance Abstract | |||||
Related Allowance, with no related allowance recorded | 0 | ||||
Total real estate loans | |||||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Unpaid Principal Balance, with no related allowance recorded | 218 | ||||
Impaired Financing Receivable, Write-downs [Abstract] | |||||
Impairment | (12) | ||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Recorded Investment, with no related allowance recorded | 206 | ||||
Impaired Financing Receivable Related Allowance Abstract | |||||
Related Allowance, with no related allowance recorded | 0 | ||||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Average Recorded Investment, with no related allowance recorded | 148 | 441 | 182 | 408 | |
Impaired Financing Receivable, Interest Income [Abstract] | |||||
Interest Income Recognized, with no related allowance recorded | 1 | 1 | 3 | 4 | |
Total real estate loans | Home equity | |||||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Unpaid Principal Balance, with no related allowance recorded | 176 | 176 | 151 | ||
Impaired Financing Receivable, Write-downs [Abstract] | |||||
Impairment | 0 | 0 | 0 | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Recorded Investment, with no related allowance recorded | 176 | 176 | 151 | ||
Impaired Financing Receivable Related Allowance Abstract | |||||
Related Allowance, with no related allowance recorded | 0 | 0 | 0 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Average Recorded Investment, with no related allowance recorded | 148 | 240 | 182 | 230 | |
Impaired Financing Receivable, Interest Income [Abstract] | |||||
Interest Income Recognized, with no related allowance recorded | 1 | 0 | 3 | 0 | |
Total real estate loans | One-to-four-family (1) | |||||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Unpaid Principal Balance, with no related allowance recorded | 67 | ||||
Unpaid Principal Balance, with related allowance recorded | 141 | 141 | 142 | ||
Impaired Financing Receivable, Write-downs [Abstract] | |||||
Impairment | (12) | ||||
Write-downs with related allowance recorded | 0 | 0 | 0 | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Recorded Investment, with no related allowance recorded | 55 | ||||
Recorded Investment, with related allowance recorded | 141 | 141 | 142 | ||
Impaired Financing Receivable Related Allowance Abstract | |||||
Related Allowance, with no related allowance recorded | 0 | ||||
Related Allowance, with related allowance recorded | 21 | 21 | $ 21 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Average Recorded Investment, with no related allowance recorded | 0 | 201 | 0 | 178 | |
Average Recorded Investment, with related allowance recorded | 271 | 0 | 271 | 0 | |
Impaired Financing Receivable, Interest Income [Abstract] | |||||
Interest Income Recognized, with no related allowance recorded | 0 | 1 | 0 | 4 | |
Interest Income Recognized, with related allowance recorded | $ 1 | $ 0 | $ 3 | $ 0 |
Loans Receivable and Allowanc50
Loans Receivable and Allowance For Loan Losses - Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 893,780 | $ 773,445 | $ 720,302 |
REAL ESTATE LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 476,263 | 440,074 | 397,695 |
Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 64,599 | 63,611 | |
Construction and development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 160,521 | 143,068 | |
Home equity. | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 25,460 | 25,289 | |
One-to-four-family (1) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 177,988 | 163,655 | |
Multi-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 47,695 | 44,451 | |
CONSUMER LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 239,874 | 208,668 | 190,729 |
Indirect home improvement | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 147,067 | 130,176 | |
Solar | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 42,189 | 41,049 | |
Marine | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 48,591 | 35,397 | |
Other consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2,027 | 2,046 | |
COMMERCIAL BUSINESS LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 177,643 | 124,703 | $ 131,878 |
Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 110,962 | 83,306 | |
Warehouse lending | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 66,681 | 41,397 | |
Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 885,453 | 764,318 | |
Pass | REAL ESTATE LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 475,946 | 438,227 | |
Pass | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 64,599 | 62,057 | |
Pass | Construction and development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 160,521 | 143,068 | |
Pass | Home equity. | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 25,284 | 25,138 | |
Pass | One-to-four-family (1) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 177,847 | 163,513 | |
Pass | Multi-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 47,695 | 44,451 | |
Pass | CONSUMER LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 239,564 | 208,425 | |
Pass | Indirect home improvement | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 146,793 | 129,981 | |
Pass | Solar | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 42,154 | 41,049 | |
Pass | Marine | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 48,591 | 35,397 | |
Pass | Other consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2,026 | 1,998 | |
Pass | COMMERCIAL BUSINESS LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 169,943 | 117,666 | |
Pass | Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 103,262 | 76,942 | |
Pass | Warehouse lending | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 66,681 | 40,724 | |
Watch | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2,228 | 673 | |
Watch | REAL ESTATE LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Watch | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Watch | Construction and development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Watch | Home equity. | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Watch | One-to-four-family (1) | |||
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 | 2,228 | 673 | |
Watch | Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2,228 | 0 | |
Watch | Warehouse lending | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 673 | |
Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 338 | 1,979 | |
Special Mention | REAL ESTATE LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 1,554 | |
Special Mention | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 1,554 | |
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 (1) | |||
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 | 338 | 425 | |
Special Mention | Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 338 | 425 | |
Special Mention | Warehouse lending | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 5,761 | 6,475 | |
Substandard | REAL ESTATE LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 317 | 293 | |
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 | 176 | 151 | |
Substandard | One-to-four-family (1) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 141 | 142 | |
Substandard | Multi-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Substandard | CONSUMER LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 310 | 243 | |
Substandard | Indirect home improvement | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 274 | 195 | |
Substandard | Solar | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 35 | 0 | |
Substandard | Marine | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Substandard | Other consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1 | 48 | |
Substandard | COMMERCIAL BUSINESS LOANS | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 5,134 | 5,939 | |
Substandard | Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 5,134 | 5,939 | |
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 (1) | |||
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 (1) | |||
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 |
Servicing Rights - Narrative (D
Servicing Rights - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Contractually specified servicing fees, late fees, and other ancillary fees | $ 573,000 | $ 682,000 | $ 1,100,000 | $ 1,300,000 | |
Mortgage, commercial and consumer servicing rights | |||||
Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
The unpaid principal balances of mortgage loans serviced | 955,100,000 | 955,100,000 | $ 778,900,000 | ||
Mortgage servicing rights | |||||
Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Fair market value of servicing rights' assets | $ 12,000,000 | $ 12,000,000 | $ 8,600,000 |
Servicing Rights - Servicing Ri
Servicing Rights - Servicing Rights (Details) - Mortgage servicing rights - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | $ 7,515 | $ 8,939 | $ 6,795 | $ 8,459 |
Additions | 1,381 | 1,253 | 2,519 | 2,242 |
Sales | 0 | (4,751) | 0 | (4,751) |
Servicing rights amortized | (544) | (541) | (962) | (1,050) |
Impairment on servicing rights | 0 | (1) | 0 | (1) |
Ending balance | $ 8,352 | $ 4,899 | $ 8,352 | $ 4,899 |
Servicing Rights - Valuation As
Servicing Rights - Valuation Assumptions (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Weighted average discount rate | 9.50% | 9.50% | |
Conditional prepayment rate ("CPR") | 9.00% | 10.30% | |
Weighted average life in years | 8 years | 7 years 1 month 6 days | |
Mortgage, commercial and consumer servicing rights | |||
Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Weighted average discount rate | 9.80% | 9.60% | |
Conditional prepayment rate ("CPR") | 9.00% | 10.90% |
Servicing Rights - Changes in V
Servicing Rights - Changes in Valuation Assumptions (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
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% | |
Conditional prepayment rate | 9.00% | 10.30% | |
Discount rate | 9.50% | 9.50% | |
Mortgage, commercial and consumer servicing rights | |||
Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Aggregate portfolio principal balance | $ 952,257 | $ 775,093 | |
Weighted average rate of note | 4.20% | 4.10% | |
Conditional prepayment rate | 9.00% | 10.90% | |
Conditional prepayment rate, 0.5% Adverse Change | 10.90% | 17.70% | |
Conditional prepayment rate, 1.0% Adverse Change | 15.30% | 24.50% | |
Fair value MSR | $ 12,016 | $ 8,602 | |
Fair value MSR, 0.5% Adverse Change | 10,752 | 6,811 | |
Fair value of MSR, 1.0% Adverse Change | $ 9,162 | $ 5,614 | |
Percentage of MSR | 1.30% | 1.10% | |
Percentage of MSR, 0.5% Adverse Change | 1.10% | 0.90% | |
Percentage of MSR, 1.0% Adverse Change | 1.00% | 0.70% | |
Discount rate | 9.80% | 9.60% | |
Discount rate, 0.5% Adverse Change | 10.30% | 10.10% | |
Discount rate, 1.0% Adverse Change | 10.80% | 10.60% | |
Fair value MSR, 0.5% Adverse Change | $ 11,754 | $ 8,433 | |
Fair value MSR, 1.0% Adverse Change | $ 11,503 | $ 8,271 | |
Percentage of MSR, 0.5% Adverse Change | 1.20% | 1.10% | |
Percentage of MSR, 1.0% Adverse Change | 1.20% | 1.10% |
Derivatives (Details)
Derivatives (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Derivative [Line Items] | |||||
Margin collateral | $ 220,000 | $ 220,000 | $ 75,000 | ||
Derivative instruments, gain (loss) on sale of loans | 403,000 | $ 114,000 | 484,000 | $ (381,000) | |
Not Designated as Hedging Instrument | Fallout adjusted interest rate lock commitments with customers | |||||
Derivative [Line Items] | |||||
Notional | 49,621,000 | 49,621,000 | 31,951,000 | ||
Asset | 1,138,000 | 1,138,000 | 726,000 | ||
Liability | 0 | 0 | 0 | ||
Not Designated as Hedging Instrument | Mandatory and best effort forward commitments with investors | |||||
Derivative [Line Items] | |||||
Notional | 24,739,000 | 24,739,000 | 12,505,000 | ||
Asset | 0 | 0 | 51,000 | ||
Liability | 18,000 | 18,000 | 0 | ||
Not Designated as Hedging Instrument | Mortgage-backed securities | |||||
Derivative [Line Items] | |||||
Notional | 70,000,000 | 70,000,000 | 66,500,000 | ||
Asset | 0 | 0 | 0 | ||
Liability | 199,000 | 199,000 | 65,000 | ||
Not Designated as Hedging Instrument | TBA mortgage-backed securities forward sales paired off with investors | |||||
Derivative [Line Items] | |||||
Notional | 21,500,000 | 21,500,000 | 36,500,000 | ||
Asset | 0 | 0 | 53,000 | ||
Liability | $ 22,000 | $ 22,000 | $ 0 |
Deposits - Deposit Liabilities
Deposits - Deposit Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Noninterest-bearing checking | $ 172,848 | $ 177,739 |
Interest-bearing checking | 128,080 | 119,872 |
Savings | 77,631 | 72,082 |
Money market (4) | 210,742 | 228,742 |
Certificates of deposit less than $100,000 | 144,755 | 111,489 |
Certificates of deposit of $100,000 through $250,000 | 79,131 | 77,934 |
Certificates of deposit of $250,000 and over | 45,417 | 32,833 |
Escrow accounts related to mortgages serviced | 11,509 | 9,151 |
Total deposits | 870,113 | 829,842 |
Remaining Branch Purchase Deposits | 124,000 | 134,600 |
Certificate of Deposit, Brokered | 4,000 | 6,500 |
Interest-bearing Domestic Deposit, Brokered | 86,600 | 59,300 |
Federal Reserve Bank required deposit reserves | $ 17,900 | $ 18,200 |
Deposits - Maturities of Time D
Deposits - Maturities of Time Deposits for Future Periods (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Banking and Thrift [Abstract] | |
Maturing in 2018 | $ 89,416 |
Maturing in 2019 | 90,581 |
Maturing in 2020 | 46,314 |
Maturing in 2021 | 23,286 |
Maturing in 2022 | 17,779 |
Thereafter | 1,927 |
Total | $ 269,303 |
Deposits - Interest Expense by
Deposits - Interest Expense by Deposit Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Banking and Thrift [Abstract] | ||||
Interest-bearing checking | $ 63 | $ 14 | $ 130 | $ 22 |
Savings and money market | 393 | 312 | 712 | 581 |
Certificates of deposit | 976 | 570 | 1,833 | 1,145 |
Total | $ 1,432 | $ 896 | $ 2,675 | $ 1,748 |
Commitments and Contingencies -
Commitments and Contingencies - Commitment (Details) - Commitments to Extend Credit - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | $ 279,527 | $ 284,887 |
REAL ESTATE LOANS | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 171,329 | 144,091 |
Commercial | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 108 | 107 |
Construction and development | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 79,038 | 73,321 |
One-to-four-family (1) | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 55,817 | 37,336 |
Home equity. | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 35,750 | 32,889 |
Commercial/Multi-family | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 616 | 438 |
Other consumer | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 10,184 | 10,041 |
COMMERCIAL BUSINESS LOANS | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 98,014 | 130,755 |
Commercial and industrial | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 53,995 | 52,452 |
Warehouse lending | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | $ 44,019 | $ 78,303 |
Commitments and Contingencies60
Commitments and Contingencies - Narrative (Details) | 1 Months Ended | 6 Months Ended | |
Mar. 31, 2008shares | Jun. 30, 2018USD ($)action$ / shares | Dec. 31, 2017USD ($)$ / shares | |
Loss Contingencies [Line Items] | |||
Amount of loans sold to FHLB | $ 57,600,000 | ||
Federal Home Loan Bank, First Loss Account Established | 633,000 | ||
Bank recourse obligation | $ 367,000 | ||
Bank recourse obligation, percentage of loans outstanding | 0.64% | ||
Outstanding Delinquencies On Loans Sold to Federal Home Loan Bank | $ 0 | $ 0 | |
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, executive payment, period following change in control (in months) | 12 months | ||
Number of shares received in an IPO | shares | 7,158 | ||
Common stock, conversion ratio | 1.6298 | ||
Carrying value of stock | $ 0 | ||
Pending material legal actions | action | 0 | ||
Visa, Inc. | |||
Loss Contingencies [Line Items] | |||
Market value of stock (in dollars per share) | $ / shares | $ 132.45 | $ 114.02 | |
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, period of base compensation disbursed as lump sum payment (in months) | 12 months | ||
Commitments to Extend Credit | |||
Loss Contingencies [Line Items] | |||
Reserve for estimated losses | $ 230,000 | $ 253,000 | |
Guarantee on loans sold | |||
Loss Contingencies [Line Items] | |||
Reserve for estimated losses | $ 971,000 | $ 1,000,000 |
Fair Value of Financial Instr61
Fair Value of Financial Instruments - Available for Sale Securities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | $ 98,465 | $ 82,480 |
U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 15,922 | 9,115 |
Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 6,895 | 7,026 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 10,482 | 12,786 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 49,063 | 39,734 |
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 | 16,103 | 13,819 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
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 |
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 |
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 |
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 |
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 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 98,465 | 82,480 |
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 | 15,922 | 9,115 |
Level 2 | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 6,895 | 7,026 |
Level 2 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 10,482 | 12,786 |
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 | 49,063 | 39,734 |
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 | 16,103 | 13,819 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
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 |
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 |
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 |
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 |
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 of Financial Instr62
Fair Value of Financial Instruments - Mortgage loans held for sale (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale, at fair value | $ 55,191 | $ 53,463 |
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 | 55,191 | 53,463 |
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 Instr63
Fair Value of Financial Instruments - Interest Rate Lock Commitments Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - Fallout adjusted interest rate lock commitments with customers - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Lock Commitments with Customers | $ 1,138 | $ 726 |
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 | $ 1,138 | $ 726 |
Fair Value of Financial Instr64
Fair Value of Financial Instruments - Forward Sale Commitments with Investors (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individual Forward Sale Commitments with Investors | $ (217) | $ (14) |
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 | (199) | (65) |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individual Forward Sale Commitments with Investors | $ (18) | $ 51 |
Fair Value of Financial Instr65
Fair Value of Financial Instruments - Paired Off Commitments with Investors (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Paired off commitments with investors, liability | $ (22) | |
Paired off commitments with investors | $ 53 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Paired off commitments with investors, liability | 0 | |
Paired off commitments with investors | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Paired off commitments with investors, liability | (22) | |
Paired off commitments with investors | 53 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Paired off commitments with investors, liability | $ 0 | |
Paired off commitments with investors | $ 0 |
Fair Value of Financial Instr66
Fair Value of Financial Instruments - Impaired Loans and OREO (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, fair value | $ 627 | $ 1,094 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, fair value | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, fair value | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, fair value | $ 627 | $ 1,094 |
Fair Value of Financial Instr67
Fair Value of Financial Instruments - Discount Rate (Details) | Jun. 30, 2018item |
Impaired Loans | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Debt Securities, Available-for-sale, Measurement Input [Extensible List] | fsbw:MeasurementInputDiscountAppliedToObtainedAppraisalMember |
Debt Securities, Available-for-sale, Valuation Technique [Extensible List] | fsbw:FairValueOfUnderlyingCollateralMember |
Fallout adjusted interest rate lock commitments with customers | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Debt Securities, Available-for-sale, Measurement Input [Extensible List] | fsbw:MeasurementInputPullThroughExpectationsMember |
Debt Securities, Available-for-sale, Valuation Technique [Extensible List] | fsbw:QuotedMarketPricesMember |
Mandatory and best effort forward commitments with investors | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Debt Securities, Available-for-sale, Measurement Input [Extensible List] | fsbw:MeasurementInputPullThroughExpectationsMember |
Debt Securities, Available-for-sale, Valuation Technique [Extensible List] | fsbw:QuotedMarketPricesMember |
Level 3 | Fair Value, Measurements, Recurring | Fallout adjusted interest rate lock commitments with customers | Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement inputs (as a percent) | 0.80 |
Level 3 | Fair Value, Measurements, Recurring | Fallout adjusted interest rate lock commitments with customers | Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement inputs (as a percent) | 0.99 |
Level 3 | Fair Value, Measurements, Recurring | Fallout adjusted interest rate lock commitments with customers | Weighted Average | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement inputs (as a percent) | 0.948 |
Level 3 | Fair Value, Measurements, Recurring | Mandatory and best effort forward commitments with investors | Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement inputs (as a percent) | 0.80 |
Level 3 | Fair Value, Measurements, Recurring | Mandatory and best effort forward commitments with investors | Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement inputs (as a percent) | 0.99 |
Level 3 | Fair Value, Measurements, Recurring | Mandatory and best effort forward commitments with investors | Weighted Average | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement inputs (as a percent) | 0.948 |
Level 3 | Fair Value, Measurements, Nonrecurring | Impaired Loans | Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement inputs (as a percent) | 0 |
Level 3 | Fair Value, Measurements, Nonrecurring | Impaired Loans | Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement inputs (as a percent) | 0.25 |
Level 3 | Fair Value, Measurements, Nonrecurring | Impaired Loans | Weighted Average | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement inputs (as a percent) | 0.207 |
Fair Value of Financial Instr68
Fair Value of Financial Instruments - Fair Value Level 3 on recurring basis (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fallout adjusted interest rate lock commitments with customers | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | $ 815 | $ 1,437 | $ 726 | $ 818 |
Purchases and Issuances | 3,140 | 4,067 | 5,575 | 7,549 |
Sales and Settlements | (2,817) | (4,292) | (5,163) | (7,155) |
Ending Balance | 1,138 | 1,212 | 1,138 | 1,212 |
Net change in fair value for gains/(losses) relating to items held at end of period | 323 | (225) | 412 | 394 |
Mandatory and best effort forward commitments with investors | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 4 | (19) | 51 | 177 |
Purchases and Issuances | 84 | (107) | 656 | (303) |
Sales and Settlements | (106) | 209 | (725) | 209 |
Ending Balance | (18) | 83 | (18) | 83 |
Net change in fair value for gains/(losses) relating to items held at end of period | $ (22) | $ 102 | $ (69) | $ (94) |
Fair Value of Financial Instr69
Fair Value of Financial Instruments - Fair Value By Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financial Assets | ||
Certificates of deposit at other financial institutions | $ 17,611 | $ 18,108 |
Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available-for-sale, at fair value | 98,465 | 82,480 |
Loans held for sale, at fair value | 55,191 | 53,463 |
Paired off commitments with investors | 53 | |
Financial Liabilities | ||
Paired Off Commitments with Investors | (22) | |
Level 1 | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available-for-sale, at fair value | 0 | 0 |
Loans held for sale, at fair value | 0 | 0 |
Paired off commitments with investors | 0 | |
Financial Liabilities | ||
Paired Off Commitments with Investors | 0 | |
Level 2 | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available-for-sale, at fair value | 98,465 | 82,480 |
Loans held for sale, at fair value | 55,191 | 53,463 |
Paired off commitments with investors | 53 | |
Financial Liabilities | ||
Paired Off Commitments with Investors | (22) | |
Level 3 | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available-for-sale, at fair value | 0 | 0 |
Loans held for sale, at fair value | 0 | 0 |
Paired off commitments with investors | 0 | |
Financial Liabilities | ||
Paired Off Commitments with Investors | 0 | |
Carrying Amount | Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 21,977 | 18,915 |
Certificates of deposit at other financial institutions | 17,611 | 18,108 |
Carrying Amount | Level 2 | ||
Financial Assets | ||
Securities available-for-sale, at fair value | 98,465 | 82,480 |
Loans held for sale, at fair value | 55,191 | 53,463 |
FHLB stock, at cost | 7,742 | 2,871 |
Accrued interest receivable | 4,071 | 3,566 |
Paired off commitments with investors | 0 | 53 |
Financial Liabilities | ||
Deposits | 870,113 | 829,842 |
Borrowings | 106,526 | 7,529 |
Subordinated note, net | 9,855 | 9,845 |
Accrued interest payable | 289 | 214 |
Paired Off Commitments with Investors | 22 | 0 |
Individual forward sale commitments with investors, financial liability | 199 | 65 |
Carrying Amount | Level 3 | ||
Financial Assets | ||
Individual forward sale commitments with investors | 0 | 51 |
Loans receivable, gross | 893,780 | 773,445 |
Servicing rights, held at lower of cost or fair value | 8,352 | 6,795 |
Fair value interest rate locks with customers | 1,138 | 726 |
Financial Liabilities | ||
Individual forward sale commitments with investors, financial liability | 18 | 0 |
Fair Value | Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 21,977 | 18,915 |
Certificates of deposit at other financial institutions | 17,611 | 18,108 |
Fair Value | Level 2 | ||
Financial Assets | ||
Securities available-for-sale, at fair value | 98,465 | 82,480 |
Loans held for sale, at fair value | 55,191 | 53,463 |
FHLB stock, at cost | 7,742 | 2,871 |
Accrued interest receivable | 4,071 | 3,566 |
Paired off commitments with investors | 0 | 53 |
Financial Liabilities | ||
Deposits | 863,210 | 838,087 |
Borrowings | 106,442 | 7,498 |
Subordinated note, net | 10,741 | 10,741 |
Accrued interest payable | 289 | 214 |
Paired Off Commitments with Investors | 22 | 0 |
Individual forward sale commitments with investors, financial liability | 199 | 65 |
Fair Value | Level 3 | ||
Financial Assets | ||
Individual forward sale commitments with investors | 0 | 51 |
Loans receivable, gross | 882,819 | 780,551 |
Servicing rights, held at lower of cost or fair value | 12,022 | 8,608 |
Fair value interest rate locks with customers | 1,138 | 726 |
Financial Liabilities | ||
Individual forward sale commitments with investors, financial liability | $ 18 | $ 0 |
Employee Benefits - Narrative (
Employee Benefits - Narrative (Details) - USD ($) | Jul. 09, 2012 | Jan. 02, 2012 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Compensation and Retirement Disclosure [Abstract] | |||||||
Number of hours of service required for participation in ESOP, per first 12 month period (in hours) | 1000 hours | ||||||
Vesting percentage after requisite service period is met (as a percent) | 100.00% | ||||||
Requisite service period (in years) | 2 years | ||||||
Employee stock ownership plan (ESOP), requisite service period and 12 months | 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 | $ 263,000 | ||||||
Employee stock ownership plan (ESOP), interest payments from esop | $ 32,000 | ||||||
ESOP compensation expense for allocated shares | $ 393,000 | $ 317,000 | $ 752,000 | $ 554,000 |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Shares Under ESOP (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jul. 09, 2012 |
Employee Stock Ownership Plan (ESOP), Shares in ESOP [Abstract] | |||
Allocated shares | 153,049 | 126,589 | |
Committed to be released shares | 12,960 | 12,960 | |
Unallocated shares | 90,724 | 116,645 | |
Total ESOP shares | 256,733 | 256,194 | 259,210 |
Fair value of unallocated shares (in thousands) | $ 5,262 | $ 4,987 |
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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net Income | $ 4,257 | $ 4,359 | $ 8,579 | $ 6,952 |
Basic weighted average common shares outstanding | 3,583,927 | 2,903,323 | 3,573,560 | 2,891,116 |
Dilutive shares (in shares) | 181,797 | 194,305 | 188,519 | 193,276 |
Denominator for diluted earnings per share- weighted average common shares outstanding (shares) | 3,765,724 | 3,097,628 | 3,762,079 | 3,084,392 |
Basic earnings per share (in dollars per share) | $ 1.19 | $ 1.50 | $ 2.40 | $ 2.40 |
Diluted earnings per share (in dollars per share) | $ 1.13 | $ 1.41 | $ 2.28 | $ 2.25 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | May 17, 2018shares | Jan. 01, 2016$ / sharesshares | May 08, 2014$ / sharesshares | Sep. 30, 2013shares | Jun. 30, 2018USD ($)shares | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)shares | Jun. 30, 2017USD ($) | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected forfeiture rate over contractual term | 3.1 | ||||||||
Award contractual life | 10 years | ||||||||
2013 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense | $ | $ 150,000 | $ 166,000 | $ 285,000 | $ 358,000 | |||||
Granted (in shares) | 0 | ||||||||
Stock option, fair value assumption, expected life | 6 years 4 months 10 days | ||||||||
Remaining weighted-average vesting period | 5 years 7 months 17 days | ||||||||
2013 Equity Incentive Plan | Equity option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized (in shares) | 324,013 | ||||||||
Granted (in shares) | 322,000 | ||||||||
Market price per share (in dollars per share) | $ / shares | $ 16.89 | ||||||||
Shares available for grant | 6,013 | 6,013 | |||||||
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 | $ | $ 188,000 | $ 188,000 | |||||||
Remaining weighted-average vesting period | 10 months | ||||||||
2013 Equity Incentive Plan | Restricted stock awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized (in shares) | 129,605 | ||||||||
Shares | 4,500 | 125,105 | |||||||
Market price per share (in dollars per share) | $ / shares | $ 26 | $ 16.89 | |||||||
Award vesting period | 5 years | ||||||||
Unrecognized compensation cost, nonvested awards | $ | $ 264,000 | $ 264,000 | |||||||
Weighted-average vesting period | 10 months | ||||||||
2013 Equity Incentive Plan | Restricted stock awards | Director | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period | 3 years | ||||||||
2018 Equity Incentive Plan | Equity option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized (in shares) | 487,000 | ||||||||
Percent of the number of shares authorized allocated to various stock compensation plans (as a percent) | 75.00% | ||||||||
Granted (in shares) | 0 | ||||||||
2018 Equity Incentive Plan | Restricted stock awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized (in shares) | 163,000 | ||||||||
Percent of the number of shares authorized allocated to various stock compensation plans (as a percent) | 25.00% | ||||||||
Granted (in shares) | 0 | ||||||||
2018 Equity Incentive Plan | Equity option and restricted stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized (in shares) | 650,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - 2013 Equity Incentive Plan | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | |
Shares | ||
Outstanding, beginning balance (in shares) | shares | 256,237 | |
Granted, Shares | shares | 0 | |
Less exercised (in shares) | shares | 32,833 | |
Forfeited or Expired, Shares | shares | 0 | |
Outstanding, ending balance (in shares) | shares | 223,404 | 256,237 |
Expected to vest, assuming a 0.31% annual forfeiture rate (in shares) | shares | 223,242 | |
Exercisable (in shares) | shares | 162,604 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expected Forfeiture Rate | 0.31% | |
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 | |
Forfeited or Expired, Weighted-Average Exercise Price (in dollars per share) | 0 | |
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 | 6 years 4 months 10 days | |
Outstanding, ending balance | 5 years 7 months 17 days | |
Expected to vest, assuming a 0.31% annual forfeiture rate, Weighted Average Remaining Contractual Term | 5 years 7 months 17 days | |
Exercisable | 5 years 6 months 15 days | |
Aggregate Intrinsic Value | ||
Beginning balance | $ | $ 9,655,010 | |
Granted | $ 0 | |
Less exercised | $ | $ 1,318,296 | |
Forfeited or Expired, Aggregate Intrinsic Value | $ | 0 | |
Ending balance | $ | 10,357,009 | $ 9,655,010 |
Expected to vest, assuming a 0.31% annual forfeiture rate | $ | 10,349,515 | |
Exercisable | $ | $ 7,538,321 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Awards (Details) - Restricted stock awards | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Shares | |
Nonvested, Beginning balance (in shares) | shares | 36,842 |
Granted (shares) | shares | 0 |
Less vested (in shares) | shares | 18,421 |
Forfeited or expired ( in shares) | shares | 0 |
Nonvested, Ending balance (in shares) | shares | 18,421 |
Weighted-Average Grant-Date Fair Value Per Share | |
Nonvested, Beginning balance (in dollars per share) | $ / shares | $ 17.63 |
Granted (in dollars per share) | $ / shares | 0 |
Less vested (in dollars per share) | $ / shares | 17.63 |
Forfeited or expired (in dollars per share) | $ / shares | 0 |
Nonvested, Ending balance (in dollars per share) | $ / shares | $ 17.63 |
2013 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 10 months |
Regulatory Capital - Compliance
Regulatory Capital - Compliance with Regulatory Capital Requirements under Banking Regulations (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 01, 2016 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Total risk-based capital, Ratio | 15.20% | |||
Tier 1 risk-based capital, Ratio | 13.90% | |||
Tier 1 leverage capital, Ratio | 11.90% | |||
CET 1 capital, Ratio | 13.90% | |||
Bank | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Common Equity Tier 1 to Risk Weighted Assets, Capital Conservation Buffer, Phased in | 1.875% | 0.625% | 0.625% | |
Common Equity Tier 1 to Risk Weighted Assets, Capital Conservation Buffer | 2.50% | |||
Total risk-based capital, Amount | $ 143,480 | $ 133,967 | ||
Total risk-based capital, Ratio | 15.57% | 16.25% | ||
Total risk-based capital, For Capital Adequacy Purposes, Amount | $ 73,699 | $ 65,965 | ||
Total risk-based capital, For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% | ||
Total risk-based capital, For Capital Adequacy with Capital Buffer, Amount | $ 91,018 | $ 76,272 | ||
Total risk-based capital, For Capital Adequacy with Capital Buffer, Ratio | 9.88% | 9.25% | ||
Total risk-based capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 92,124 | $ 82,456 | ||
Total risk-based capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% | ||
Tier 1 risk-based capital, Amount | $ 131,961 | $ 123,651 | ||
Tier 1 risk-based capital, Ratio | 14.32% | 15.00% | ||
Tier 1 risk-based capital, For Capital Adequacy Purposes, Amount | $ 55,274 | $ 49,474 | ||
Tier 1 risk-based capital, For Capital Adequacy Purposes, Ratio | 6.00% | 6.00% | ||
Tier 1 risk-based capital, For Capital Adequacy with Capital Buffer, Amount | $ 72,594 | $ 59,781 | ||
Tier 1 risk-based capital, For Capital Adequacy with Capital Buffer, Ratio | 7.88% | 7.25% | ||
Tier 1 risk-based capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 73,699 | $ 65,965 | ||
Tier 1 risk-based capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% | ||
Tier 1 leverage capital | $ 131,961 | $ 123,651 | ||
Tier 1 leverage capital, Ratio | 12.23% | 12.61% | ||
Tier 1 leverage capital, For Capital Adequacy Purposes, Amount | $ 43,157 | $ 39,233 | ||
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 | $ 53,946 | $ 49,041 | ||
Tier 1 leverage capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% | ||
CET 1 capital, Amount | $ 131,961 | $ 123,651 | ||
CET 1 capital, Ratio | 14.32% | 15.00% | ||
CET 1 capital, For Capital Adequacy Purposes, Amount | $ 41,456 | $ 37,105 | ||
CET 1 capital, For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% | ||
CET 1 capital, For Capital Adequacy with Capital Buffer, Amount | $ 64,487 | $ 47,412 | ||
CET 1 capital, For Capital Adequacy with Capital Buffer, Ratio | 7.00% | 5.75% | ||
CET 1 capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 59,881 | $ 53,597 | ||
CET 1 capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Business Segments - Narrative (
Business Segments - Narrative (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)segmentitem | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | segment | 2 | |
Reporting Unit, Name of Segment [Extensible List] | fsbw:CommercialAndConsumerBankingMember | |
Total deposits | $ | $ 870,113 | $ 829,842 |
Retail Deposit | Pacific Northwest | ||
Segment Reporting Information [Line Items] | ||
Number of bank branches | item | 13 |
Business Segments - Segment Fin
Business Segments - Segment Financial Results (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($)employee | Jun. 30, 2017USD ($)employee | Jun. 30, 2018USD ($)employee | Jun. 30, 2017USD ($)employee | |
Segment Reporting Information [Line Items] | ||||
Net interest income | $ 11,925 | $ 9,966 | $ 23,422 | $ 18,941 |
Provision for loan losses | (450) | 0 | (800) | 0 |
Noninterest income | 5,614 | 6,957 | 10,638 | 12,377 |
Noninterest expense | (12,144) | (10,944) | (23,179) | (21,321) |
INCOME BEFORE PROVISION FOR INCOME TAXES | 4,945 | 5,979 | 10,081 | 9,997 |
Provision for income taxes | (688) | (1,620) | (1,502) | (3,045) |
NET INCOME | 4,257 | 4,359 | 8,579 | 6,952 |
Total average assets at quarter end | $ 1,082,862 | $ 902,483 | $ 1,049,972 | $ 870,793 |
FTEs | employee | 336 | 324 | 336 | 324 |
Home Lending | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | $ 764 | $ 415 | $ 1,479 | $ 1,045 |
Provision for loan losses | (149) | (117) | (145) | (197) |
Noninterest income | 4,447 | 5,462 | 8,213 | 9,849 |
Noninterest expense | (4,508) | (4,382) | (8,564) | (8,399) |
INCOME BEFORE PROVISION FOR INCOME TAXES | 554 | 1,378 | 983 | 2,298 |
Provision for income taxes | (78) | (374) | (146) | (700) |
NET INCOME | 476 | 1,004 | 837 | 1,598 |
Total average assets at quarter end | $ 222,687 | $ 197,431 | $ 219,553 | $ 184,499 |
FTEs | employee | 117 | 117 | 117 | 117 |
Commercial and Consumer Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | $ 11,161 | $ 9,551 | $ 21,943 | $ 17,896 |
Provision for loan losses | (301) | 117 | (655) | 197 |
Noninterest income | 1,167 | 1,495 | 2,425 | 2,528 |
Noninterest expense | (7,636) | (6,562) | (14,615) | (12,922) |
INCOME BEFORE PROVISION FOR INCOME TAXES | 4,391 | 4,601 | 9,098 | 7,699 |
Provision for income taxes | (610) | (1,246) | (1,356) | (2,345) |
NET INCOME | 3,781 | 3,355 | 7,742 | 5,354 |
Total average assets at quarter end | $ 860,175 | $ 705,052 | $ 830,419 | $ 686,294 |
FTEs | employee | 219 | 207 | 219 | 207 |
Goodwill And Other Intangible79
Goodwill And Other Intangible Assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Goodwill | $ 2,312,000 | $ 2,312,000 | $ 2,312,000 | |||
Goodwill, Impairment Loss | 0 | |||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Finite-Lived Intangible Assets, Gross | 2,239,000 | 2,239,000 | 2,239,000 | $ 2,239,000 | ||
FiniteLivedIntangibleAssetsAccumulatedAmortization | (1,075,000) | (1,075,000) | (922,000) | (522,000) | ||
Amortization of Intangible Assets | 77,000 | $ 100,000 | 153,000 | $ 200,000 | 400,000 | |
Finite-Lived Intangible Assets, Net | 1,164,000 | 1,164,000 | 1,317,000 | 1,717,000 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Remainder of 2018 | 154,000 | 154,000 | ||||
2,019 | 235,000 | 235,000 | ||||
2,020 | 181,000 | 181,000 | ||||
2,021 | 166,000 | 166,000 | ||||
2,022 | 166,000 | 166,000 | ||||
Thereafter | 262,000 | 262,000 | ||||
Total | $ 1,164,000 | $ 1,164,000 | $ 1,317,000 | $ 1,717,000 |
Revenue From Contracts With C80
Revenue From Contracts With Customers (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Not in scope noninterest income. | $ 5,200,000 | $ 9,900,000 |
Commercial and Consumer Banking | Deposit Fees [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 574,000 | 1,100,000 |
Commercial and Consumer Banking | Debit Card Interchange Fees [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 280,000 | 540,000 |
Commercial and Consumer Banking | Non Sufficient Funds Fees [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 116,000 | $ 236,000 |
Definitive Agreement (Details)
Definitive Agreement (Details) | Jul. 17, 2018USD ($)itemshares | Jul. 13, 2018$ / shares | Dec. 31, 2018 | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | |||||
Number of days included in volume weighted average closing price | 10 days | ||||
Termination fee | $ 2,700,000 | ||||
Total assets | 1,132,542,000 | $ 981,783,000 | |||
Total loans | 881,200,000 | 761,558,000 | |||
Total deposits | 870,113,000 | $ 829,842,000 | |||
Anchor Bancorp | |||||
Business Acquisition [Line Items] | |||||
Number of bank branches | item | 9 | ||||
Number of loan production offices | item | 1 | ||||
Share Price | $ / shares | $ 63.68 | ||||
Anchor Bancorp | |||||
Business Acquisition [Line Items] | |||||
Total assets | 469,600,000 | ||||
Total loans | 397,400,000 | ||||
Total deposits | $ 359,000,000 | ||||
Forecast | Anchor Bancorp | |||||
Business Acquisition [Line Items] | |||||
Shares consideration | shares | 725,585 | ||||
Business acquisition exchange ratio | shares | 0.2921 | ||||
Cash for each share of Anchor common stock | $ 12.40 | ||||
Cash consideration paid | 30,800,000 | ||||
Aggregate consideration paid | $ 77,000,000 | ||||
Anchor Shareholders | Forecast | |||||
Business Acquisition [Line Items] | |||||
Percentage ownership in combined company (as a percent) | 16.00% |