Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 02, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | FS BANCORP, INC. | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Entity Central Index Key | 0001530249 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Common Stock, Shares Outstanding | 4,477,864 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 15,214 | $ 9,408 |
Interest-bearing deposits at other financial institutions | 44,380 | 23,371 |
Total cash and cash equivalents | 59,594 | 32,779 |
Certificates of deposit at other financial institutions | 24,297 | 22,074 |
Securities available-for-sale, at fair value | 96,252 | 97,205 |
Loans held for sale, at fair value | 66,508 | 51,195 |
Loans receivable, net | 1,282,119 | 1,312,519 |
Accrued interest receivable | 5,779 | 5,761 |
Premises and equipment, net | 29,517 | 29,110 |
Operating lease right of use asset | 4,582 | |
Federal Home Loan Bank ("FHLB") stock, at cost | 8,329 | 9,887 |
Other real estate owned ("OREO") | 254 | 689 |
Bank owned life insurance ("BOLI"), net | 34,917 | 34,485 |
Servicing rights, held at the lower of cost or fair value | 10,849 | 10,429 |
Goodwill | 2,312 | 2,312 |
Core deposit intangible, net | 5,837 | 6,217 |
Other assets | 9,919 | 6,982 |
TOTAL ASSETS | 1,641,065 | 1,621,644 |
LIABILITIES | ||
Noninterest-bearing accounts | 279,221 | 234,532 |
Interest-bearing accounts | 1,054,996 | 1,039,687 |
Total deposits | 1,334,217 | 1,274,219 |
Borrowings | 83,211 | 137,149 |
Principal amount | 10,000 | 10,000 |
Unamortized debt issuance costs | (125) | (135) |
Total subordinated note less unamortized debt issuance costs | 9,875 | 9,865 |
Operating lease liabilities | 4,721 | |
Deferred tax liability, net | 1,003 | 361 |
Other liabilities | 18,612 | 20,012 |
Total liabilities | 1,451,639 | 1,441,606 |
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; 4,476,864 and 4,492,478 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 45 | 45 |
Additional paid in capital | 90,418 | 91,466 |
Retained Earnings (Accumulated Deficit) | 99,184 | 90,854 |
Accumulated other comprehensive gain (loss), net of tax | 496 | (1,479) |
Unearned shares - Employee Stock Ownership Plan ("ESOP") | (717) | (848) |
Total stockholders' equity | 189,426 | 180,038 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,641,065 | $ 1,621,644 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
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 | 4,476,864 | 4,492,478 |
Common stock, shares outstanding | 4,476,864 | 4,492,478 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
INTEREST INCOME | ||||
Loans receivable, including fees | $ 21,102,000 | $ 13,135,000 | $ 42,211,000 | $ 25,391,000 |
Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions | 1,263,000 | 887,000 | 2,465,000 | 1,619,000 |
Total interest and dividend income | 22,365,000 | 14,022,000 | 44,676,000 | 27,010,000 |
INTEREST EXPENSE | ||||
Deposits | 4,056,000 | 1,432,000 | 7,766,000 | 2,675,000 |
Borrowings | 606,000 | 496,000 | 1,350,000 | 576,000 |
Subordinated note | 169,000 | 169,000 | 337,000 | 337,000 |
Total interest expense | 4,831,000 | 2,097,000 | 9,453,000 | 3,588,000 |
NET INTEREST INCOME | 17,534,000 | 11,925,000 | 35,223,000 | 23,422,000 |
PROVISION FOR LOAN LOSSES | 910,000 | 450,000 | 1,660,000 | 800,000 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 16,624,000 | 11,475,000 | 33,563,000 | 22,622,000 |
NONINTEREST INCOME | ||||
Service charges and fee income | 1,854,000 | 670,000 | 3,512,000 | 1,329,000 |
Gain on sale of loans | 3,576,000 | 4,671,000 | 5,973,000 | 8,649,000 |
Gain on sale of investment securities | 32,000 | 0 | 32,000 | 113,000 |
Earnings on cash surrender value of BOLI | 217,000 | 88,000 | 432,000 | 170,000 |
Other noninterest income | 404,000 | 185,000 | 689,000 | 377,000 |
Total noninterest income | 6,083,000 | 5,614,000 | 10,638,000 | 10,638,000 |
NONINTEREST EXPENSE | ||||
Salaries and benefits | 8,649,000 | 7,671,000 | 16,892,000 | 14,719,000 |
Operations | 2,658,000 | 1,541,000 | 4,702,000 | 2,901,000 |
Occupancy | 1,230,000 | 704,000 | 2,342,000 | 1,353,000 |
Data processing | 1,336,000 | 679,000 | 2,622,000 | 1,319,000 |
Gains losses on sales of investment real estate | 85,000 | 0 | ||
OREO expenses | 7,000 | 11,000 | ||
Loan costs | 707,000 | 704,000 | 1,379,000 | 1,332,000 |
Professional and board fees | 616,000 | 463,000 | 1,166,000 | 907,000 |
Federal Deposit Insurance Corporation ("FDIC") insurance | 139,000 | 90,000 | 387,000 | 131,000 |
Marketing and advertising | 191,000 | 215,000 | 327,000 | 364,000 |
Acquisition costs | 1,224,000 | 1,598,000 | ||
Amortization of core deposit intangible | 190,000 | 77,000 | 380,000 | 153,000 |
Impairment on servicing rights | 124,000 | 147,000 | 0 | |
Total noninterest expense | 17,071,000 | 12,144,000 | 31,868,000 | 23,179,000 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 5,636,000 | 4,945,000 | 12,333,000 | 10,081,000 |
PROVISION FOR INCOME TAXES | 1,173,000 | 688,000 | 2,678,000 | 1,502,000 |
NET INCOME | $ 4,463,000 | $ 4,257,000 | $ 9,655,000 | $ 8,579,000 |
Basic earnings per share (in dollars per share) | $ 1 | $ 1.19 | $ 2.17 | $ 2.40 |
Diluted earnings per share (in dollars per share) | $ 0.98 | $ 1.13 | $ 2.12 | $ 2.28 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 4,463 | $ 4,257 | $ 9,655 | $ 8,579 |
Securities available-for-sale: | ||||
Unrealized holding (loss) gain during period | 1,220 | (524) | 2,548 | (1,991) |
Income tax benefit (provision) related to unrealized holding (loss) gain | (263) | 113 | (548) | 428 |
Reclassification adjustment for realized gain included in net income | (32) | 0 | (32) | (113) |
Income tax provision related to reclassification for realized gain | 7 | 0 | 7 | 24 |
Other comprehensive income (loss), net of tax | 932 | (411) | 1,975 | (1,652) |
COMPREHENSIVE INCOME | $ 5,395 | $ 3,846 | $ 11,630 | $ 6,927 |
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, 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 ($0.14 and $0.15 per share for the three month periods ended June 30, 2018 and 2019, respectively and $0.25 and $0.30 per share for the six month periods ended June 30, 2018 and 2019, 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 | 3,708,660 | ||||
Ending balance at Jun. 30, 2018 | $ 37 | 56,344 | 76,102 | (2,127) | (985) | $ 129,371 |
Beginning Balance at (in shares) at Mar. 31, 2018 | 3,695,552 | |||||
Beginning balance at Mar. 31, 2018 | $ 37 | 55,823 | 72,349 | (1,716) | (1,051) | $ 125,442 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 4,257 | 4,257 | ||||
Dividends paid ($0.14 and $0.15 per share for the three month periods ended June 30, 2018 and 2019, respectively and $0.25 and $0.30 per share for the six month periods ended June 30, 2018 and 2019, respectively) | (504) | (504) | ||||
Share-based compensation | 150 | 150 | ||||
Common stock repurchase | (250) | $ (250) | ||||
Common stock repurchased (in shares) | (4,325) | |||||
Stock options exercised | 294 | $ 294 | ||||
Stock options shares exercised (in shares) | 17,433 | |||||
Other comprehensive income (loss), net of tax | (411) | $ (411) | ||||
ESOP shares allocated | 327 | 66 | $ 393 | |||
Ending Balance at (in shares) at Jun. 30, 2018 | 3,708,660 | 3,708,660 | ||||
Ending balance at Jun. 30, 2018 | $ 37 | 56,344 | 76,102 | (2,127) | (985) | $ 129,371 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common Stock, Value, Issued | $ 45 | |||||
Common Stock, Shares, Issued | 4,492,478 | |||||
Beginning Balance at (in shares) at Dec. 31, 2018 | 4,492,478 | |||||
Beginning balance at Dec. 31, 2018 | $ 45 | 91,466 | 90,854 | (1,479) | (848) | $ 180,038 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 9,655 | 9,655 | ||||
Dividends paid ($0.14 and $0.15 per share for the three month periods ended June 30, 2018 and 2019, respectively and $0.25 and $0.30 per share for the six month periods ended June 30, 2018 and 2019, respectively) | (1,325) | (1,325) | ||||
Share-based compensation | 452 | 452 | ||||
Common stock repurchase | (2,698) | (2,698) | ||||
Common stock repurchased (in shares) | (56,014) | |||||
Stock options exercised | 682 | 682 | ||||
Stock options shares exercised (in shares) | 40,400 | |||||
Other comprehensive income (loss), net of tax | 1,975 | 1,975 | ||||
ESOP shares allocated | 516 | 131 | $ 647 | |||
Ending Balance at (in shares) at Jun. 30, 2019 | 4,476,864 | 4,476,864 | ||||
Ending balance at Jun. 30, 2019 | $ 45 | 90,418 | 99,184 | 496 | (717) | $ 189,426 |
Beginning Balance at (in shares) at Mar. 31, 2019 | 4,489,042 | |||||
Beginning balance at Mar. 31, 2019 | $ 45 | 91,742 | 95,383 | (436) | (782) | $ 185,952 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 4,463 | 4,463 | ||||
Dividends paid ($0.14 and $0.15 per share for the three month periods ended June 30, 2018 and 2019, respectively and $0.25 and $0.30 per share for the six month periods ended June 30, 2018 and 2019, respectively) | (662) | (662) | ||||
Share-based compensation | 190 | 190 | ||||
Common stock repurchase | (2,413) | $ (2,413) | ||||
Common stock repurchased (in shares) | (49,978) | |||||
Stock options exercised | 638 | $ 638 | ||||
Stock options shares exercised (in shares) | 37,800 | |||||
Other comprehensive income (loss), net of tax | 932 | $ 932 | ||||
ESOP shares allocated | 261 | 65 | $ 326 | |||
Ending Balance at (in shares) at Jun. 30, 2019 | 4,476,864 | 4,476,864 | ||||
Ending balance at Jun. 30, 2019 | $ 45 | $ 90,418 | $ 99,184 | $ 496 | $ (717) | $ 189,426 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common Stock, Value, Issued | $ 45 | |||||
Common Stock, Shares, Issued | 4,476,864 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends paid (in dollars per share) | $ 0.15 | $ 0.14 | $ 0.3 | $ 0.25 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 9,655,000 | $ 8,579,000 |
Adjustments to reconcile net income to net cash from operating activities | ||
Provision for loan losses | 1,660,000 | 800,000 |
Depreciation, amortization and accretion | 4,303,000 | 2,640,000 |
Compensation expense related to stock options and restricted stock awards | 452,000 | 285,000 |
ESOP compensation expense for allocated shares | 647,000 | 752,000 |
Increase in cash surrender value of BOLI | (432,000) | (170,000) |
Gain on sale of loans held for sale | (5,973,000) | (8,567,000) |
Gain on sale of portfolio loans | 0 | (82,000) |
Gain on sale of investment securities | (32,000) | (113,000) |
Gain on sale of OREO | (85,000) | 0 |
Origination of loans held for sale | (321,784,000) | (313,203,000) |
Proceeds from sale of loans held for sale | 310,730,000 | 317,431,000 |
Impairment on servicing rights | 147,000 | 0 |
Changes in operating assets and liabilities | ||
Accrued interest receivable | (18,000) | (468,000) |
Other assets | (8,153,000) | (74,000) |
Other liabilities | 3,931,000 | 4,565,000 |
Net cash (used) from operating activities | (4,952,000) | 12,375,000 |
Activity in securities available-for-sale: | ||
Proceeds from Sale of Debt Securities, Available-for-sale | 10,554,000 | 5,305,000 |
Maturities, prepayments, sales, and calls | 8,343,000 | 4,315,000 |
Purchases | (15,599,000) | (27,845,000) |
Maturities of certificates of deposit at other financial institutions | 2,488,000 | 496,000 |
Purchase of certificates of deposit at other financial institutions | (4,712,000) | 0 |
Loan originations and principal collections, net | 27,982,000 | (104,670,000) |
Purchase of portfolio loans | (321,000) | (21,618,000) |
Proceeds from sale of portfolio loans | 0 | 5,551,000 |
Proceeds from sale of other real estate owned, net | 684,000 | 0 |
Purchase of premises and equipment, net | (1,741,000) | (1,649,000) |
Purchase of BOLI | 0 | (3,000,000) |
FHLB stock, net | 1,558,000 | (4,871,000) |
Net cash used by investing activities | 29,236,000 | (147,986,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in deposits | 59,998,000 | 40,271,000 |
Proceeds from borrowings | 296,282,000 | 513,985,000 |
Repayments of borrowings | (350,408,000) | (414,988,000) |
Dividends paid | (1,325,000) | (899,000) |
Proceeds from stock options exercised | 682,000 | 554,000 |
Common stock repurchased | (2,698,000) | (250,000) |
Net cash from financing activities | 2,531,000 | 138,673,000 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | 26,815,000 | 3,062,000 |
CASH AND CASH EQUIVALENTS, beginning of period | 32,779,000 | 18,915,000 |
CASH AND CASH EQUIVALENTS, end of period | 59,594,000 | 21,977,000 |
Cash paid during the year for: | ||
Interest on deposits and borrowings | 9,529,000 | 3,513,000 |
Income taxes | 2,467,000 | 1,200,000 |
SUPPLEMENTARY DISCLOSURES OF NONCASH OPERATING, INVESTING AND FINANCING ACTIVITIES | ||
Change in unrealized (loss) gain on investment securities, net | 2,517,000 | (2,105,000) |
Property received in settlement of loans | 179,000 | 0 |
Retention of gross mortgage servicing rights from loan sales | $ 2,059,000 | $ 2,519,000 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
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 21 full-service bank branches, an administrative office that accepts deposits, and eight home loan production offices in suburban communities in the greater Puget Sound area which includes Snohomish, King, Pierce, Jefferson, Kitsap, Clallam, Grays Harbor, Thurston, and Lewis 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. On November 15, 2018, the Company completed its acquisition of Anchor Bancorp (“Anchor”), pursuant to the Agreement and Plan of Merger dated as of July 17, 2018 (the “Merger Agreement”) by and between FS Bancorp and Anchor. Under the terms of the Merger Agreement, Anchor merged with and into FS Bancorp (“Anchor Acquisition”), with FS Bancorp as the surviving corporation. Immediately after the Anchor Acquisition, FS Bancorp merged Anchor Bank, a wholly-owned subsidiary of Anchor, with and into 1st Security Bank of Washington, a wholly-owned subsidiary of FS Bancorp, with 1st Security Bank of Washington as the surviving bank. For additional information, see “Note 2 - Business Combination.” Financial Statement Presentation - The accompanying unaudited interim 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, 2018, as filed with the SEC on March 15, 2019. 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, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019, 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, deferred income taxes, and if needed, a deferred tax asset valuation allowance. Amounts presented in the consolidated financial statements and footnote tables are rounded and presented to the nearest thousands of dollars except per share amounts. If the amounts are above $1.0 million, they are rounded one decimal point, and if they are above $1.0 billion, they are rounded two decimal points. 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 16 - Business Segments.” Subsequent Events - The Company has evaluated events and transactions subsequent to June 30, 2019 for potential recognition or disclosure. RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016‑13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended by ASU 2018-19, ASU 2019-04, and ASU 2019-05. 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 current expected credit losses (“CECL”) 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 CECL. 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, however, the FASB board proposed in July 2019 extending the adoption date for certain registrants, including the Company, to fiscal years beginning after December 15, 2022. 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, the Company anticipates the allowance for loan losses to increase through a one‑time adjustment to retained earnings, however, until the evaluation is complete the magnitude of the increase will be unknown. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments . This ASU clarifies and improves areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement including improvements resulting from various FASB Transition Resource Group meetings. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that ASU 2019-04 will have on its consolidated financial statements. In May 2019, the FASB issued ASU 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief . The amendments in this ASU provide entities that have certain instruments within the scope of Subtopic 326-20 with an option to irrevocably elect the fair value option in Subtopic 825-10, applied on an instrument-by-instrument basis for eligible instruments, upon the adoption of Topic 326. The fair value option election does not apply to held-to-maturity debt securities. An entity that elects the fair value option should subsequently measure those instruments at fair value with changes in fair value flowing through earnings. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments should be applied on a modified-retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings balance in the balance sheet. Early adoption is permitted. The Company is currently assessing the impact that ASU 2019-05 will have on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement . This ASU contains some technical adjustments related to the fair value disclosure requirements of public companies. Included in this ASU is the additional disclosure requirement of unrealized gains and losses for the period in recurring level 3 fair value disclosures and the range and weighted average of significant unobservable inputs, among other technical changes. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. The adoption of ASU 2018-13 is not expected to have a material impact on the Company's consolidated financial statements. In August 2018, FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . The amendments in this ASU broaden the scope of ASC Subtopic 350-40 to include costs incurred to implement a hosting arrangement that is a service contract. The amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The costs are capitalized or expensed depending on the nature of the costs and the project stage during which they are incurred, consistent with the accounting for costs for internal-use software. The amendments in this ASU result in consistent capitalization of implementation costs of a hosting arrangement that is a service contract and implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this ASU. This ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The amendments in this ASU should be applied retrospectively to all implementation costs incurred after the date of adoption. Adoption of ASU 2018-15 is not expected to have a material impact on the Company’s Consolidated Financial Statements. Application of New Accounting Guidance Adopted in 2019 On January 1, 2019, the Company adopted FASB 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 an ROU 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 operating leases, the lease cost should be allocated over the lease term on a generally straight-line basis. In July 2018, the FASB issued ASU No, 2018-10, Codification Improvements to Topic 842, Leases and ASU No. 2018-11, Leases (Topic 842): Targeted Improvements . These ASUs contain clarifications to ASU 2016-02, including providing a new transition method in addition to the existing transition method contained in ASU No. 2016-02 to allow entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. These amendments have the same effective date as ASU 2016-02. In March 2019, FASB issued ASU 2019-01, Leases (Topic 842), Codification Improvements . The amendment in this ASU that is applicable to the Company clarifies interim disclosure requirements that allow omission of required transition disclosures. For financial reporting purposes, the Company applied the modified retrospective transition approach and elected to apply the transition option included in ASU 2018-11 on the effective date, January 1, 2019 which eliminates the requirement for reporting comparative periods presented in the financial statements prior to that date. The new standard provides for a number of practical expedients in transition. The Company elected the package of practical expedients, which permits us to not reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. The Company also elected the use-of-hindsight and elected the practical expedient to not separate lease and non-lease components on our real estate leases where we are the lessee. The Company did not elect the practical expedient pertaining to land easement as it is not applicable to us. The new standard also provides practical expedients for an entity's ongoing accounting. The Company has elected the short-term lease recognition exemption for certain leases which are less than 12 months in duration or month-to-month. This means, for those leases that qualify, ROU assets or lease liabilities will not be recognized. The adoption of this ASU on January 1, 2019 created ROU assets of $4.8 million and operating lease liabilities of $5.0 million, and the related impact to the Company’s first quarter 2019 Consolidated Balance Sheet was approximately 0.3%. Additional disclosures required by the ASU have been included in “Note 7 - Leases.” |
Business Combination
Business Combination | 6 Months Ended |
Jun. 30, 2019 | |
Business Combination [Abstract] | |
Business Combination Disclosure [Text Block] | NOTE 2 - BUSINESS COMBINATION On November 15, 2018, the Company completed its acquisition of Anchor Bancorp, pursuant to the Agreement and Plan of Merger dated as of July 17, 2018 by and between FS Bancorp and Anchor. Under the terms of the Merger Agreement, Anchor merged with and into FS Bancorp, with FS Bancorp as the surviving corporation. Immediately after the Anchor Acquisition, FS Bancorp merged Anchor Bank, a wholly-owned subsidiary of Anchor, with and into 1st Security Bank of Washington, a wholly-owned subsidiary of FS Bancorp, with 1st Security Bank of Washington as the surviving bank. Anchor’s principal business activities prior to the acquisition were attracting retail deposits from the general public and utilizing those deposits to originate loans including one-to-four-family residences, commercial real estate, and multi-family residences located in Western Washington. Anchor’s principal lending activity had consisted of the origination of loans secured by first mortgages on owner-occupied, one-to-four-family residences and loans for the construction of one-to-four-family residences, as well as consumer loans, with an emphasis on home equity loans and lines of credit. The primary objective for the acquisition was to significantly expand FS Bancorp’s presence throughout Western Washington, increase nonmaturity deposits, and offer additional banking and lending products to former Anchor customers as well as new customers. The Anchor Acquisition was accounted for under the acquisition method of accounting and accordingly, the assets and liabilities were recorded at their fair values on November 15, 2018, the date of acquisition. Determining the fair value of assets and liabilities is a complicated process involving significant judgment regarding methods and assumptions used to calculate estimated fair values. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition as information relative to the closing date fair values become available. Anchor Bank’s operating system conversion into the Bank’s core system occurred on June 15, 2019, with related expenses in the second quarter of 2019 of $1.2 million. The following table summarizes the estimated fair values of assets acquired and liabilities assumed at the date of acquisition: Acquired Book Fair Value Amount November 15, 2018 Value Adjustments Recorded Assets Cash and cash equivalents $ 54,558 $ — $ 54,558 Securities available-for-sale 19,609 (54) 19,555 Loans receivable, net 361,596 (5,321) (1) 356,275 Premises and equipment, net 8,411 3,354 (2) 11,765 Other real estate owned 689 — 689 Deferred tax asset 4,097 (3,358) 739 Mortgage servicing rights 218 564 782 Core deposit intangible ("CDI") — 5,251 (3) 5,251 Other assets 25,231 18 25,249 Total assets acquired $ 474,409 $ 454 $ 474,863 Liabilities Deposits $ 357,863 $ (1,052) (4) $ 356,811 Borrowings 37,000 (282) 36,718 Other liabilities 9,286 63 9,349 Total liabilities assumed $ 404,149 $ (1,271) $ 402,878 Explanation of Fair Value Adjustments (1) The fair value discount for acquired loans from Anchor was $5.3 million and was determined by separate adjustments to reflect a credit risk and marketability component and a yield component reflecting the differential between portfolio and market yields. The discount on acquired loans will be accreted back into interest income over an estimated average life of 60 months. (2) The fair value adjustment represents the difference between the fair value of the premises and the book value of those assets acquired. The Company utilized third-party valuations including appraisals, comparative market analysis, and tax-assessed values to assist in the determination of the fair value. (3) The fair value adjustment of $5.3 million represents the value of the core deposit base assumed on a study performed. This amount was recorded by the Company as an identifiable intangible asset and will be amortized as an expense on a straight-line basis over an estimated 10 year life of the core deposit base and will be reviewed for impairment annually. See “Note 17 - Goodwill and Other Intangible Assets.” (4) The fair value of transaction and savings accounts was determined to be equal to their carrying values. The fair value of time deposits was calculated using a discounted cash flow analysis that calculated the present value of the projected cash flows from the portfolio versus the present value of a similar portfolio with a similar maturity profile at current market rates. As of the acquisition date, the portfolio of time deposits was valued at a pre-tax discount of $1.1 million, or 0.65% of certificates of deposit acquired in the Anchor Acquisition of $162.9 million. This adjustment represents a difference in interest rates from the time deposits acquired and the estimated wholesale funding rates used in the application of fair value accounting. The discounted amount will be accreted into expense as an increase in interest expense over the maturity profile of the acquired time deposits. The following table summarizes the consideration paid, the aggregate amount recognized for each major class of assets acquired and liabilities assumed by 1st Security Bank in the Anchor Acquisition: At November 15, 2018 Purchase price of Anchor Fair value of FS Bancorp common stock at $46.54 (1) per share for 725,518 shares $ Cash paid Total purchase price Fair value of assets acquired: Cash and cash equivalents $ 54,558 Securities available-for-sale 19,555 Loans receivable, net 356,275 Premises and equipment 11,765 OREO 689 Deferred tax asset 739 Mortgage servicing rights 782 Intangible assets – CDI 5,251 Other assets 25,249 Total assets and identifiable intangible assets acquired $ 474,863 Fair value of liabilities assumed: Deposits $ 356,811 Borrowings 36,718 Other liabilities 9,349 Total liabilities assumed $ 402,878 Fair value of net assets and identifiable intangible assets acquired Bargain purchase gain $ _______________________ (1) Stock price is as of the closing date. The application of the acquisition method of accounting resulted in a bargain purchase gain of $7.4 million for the year ended December 31, 2018 and was reported as a component of noninterest income on our Consolidated Statements of Income. The bargain purchase gain was primarily due to the decline in the value of the stock portion of the merger consideration between signing and closing the Anchor Acquisition which resulted in the purchase price for Anchor being less than the fair market value of the net assets acquired. In the merger, each Anchor shareholder received 0.291 of a share of FS Bancorp common stock for each share of Anchor common stock along with $12.40 in cash. The Company determined that the disclosure requirements related to the amounts of revenues and earnings of Anchor included in the consolidated statements of operations since the November 15, 2018 acquisition date was impracticable. The financial activity and operating results of Anchor were commingled with the Company’s financial activity and operating results as of the acquisition date. |
Securities Available-for-sale
Securities Available-for-sale | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 3 - 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, 2019 and December 31, 2018: June 30, 2019 Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Values SECURITIES AVAILABLE-FOR-SALE U.S. agency securities $ 11,000 $ 63 $ — $ 11,063 Corporate securities 8,546 62 — 8,608 Municipal bonds 12,236 251 (5) 12,482 Mortgage-backed securities 44,602 207 (256) 44,553 U.S. Small Business Administration securities 19,235 352 (41) 19,546 Total securities available-for-sale $ 95,619 $ 935 $ (302) $ 96,252 December 31, 2018 Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Values SECURITIES AVAILABLE-FOR-SALE U.S. agency securities $ 16,052 $ 32 $ (197) $ 15,887 Corporate securities 7,074 — (209) 6,865 Municipal bonds 14,446 23 (275) 14,194 Mortgage-backed securities 45,827 83 (1,074) 44,836 U.S. Small Business Administration securities 15,690 — (267) 15,423 Total securities available-for-sale $ 99,089 $ 138 $ (2,022) $ 97,205 At June 30, 2019, the Bank had pledged eight securities held at the FHLB of Des Moines with a carrying value of $10.9 million to secure Washington State public deposits of $10.5 million with a $3.9 million collateral requirement by the Washington Public Deposit Protection Commission. At Decemb er 31, 2018, t he Bank pledged 11 securities held at the FHLB of Des Moines with a carrying value of $13.7 million to secure Washington State public deposits of $19.9 million with an $8.4 million minimum collateral requirement by the Washington Public Deposit Protection Commission. Investment securities that were in an unrealized loss position at June 30, 2019 and December 31, 2018 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, 2019 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 $ — $ — $ 2,998 $ — $ 2,998 $ — Corporate securities — — — — — — Municipal bonds — — 531 (5) 531 (5) Mortgage-backed securities 1,021 — 23,372 (256) 24,393 (256) U.S. Small Business Administration securities 2,932 (5) 2,620 (36) 5,552 (41) Total $ 3,953 $ (5) $ 29,521 $ (297) $ 33,474 $ (302) December 31, 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 $ 6,018 $ (25) $ 4,822 $ (172) $ 10,840 $ (197) Corporate securities 975 (25) 5,890 (184) 6,865 (209) Municipal bonds 2,098 (22) 8,787 (253) 10,885 (275) Mortgage-backed securities 6,266 (40) 32,537 (1,034) 38,803 (1,074) U.S. Small Business Administration securities 1,958 (11) 13,465 (256) 15,423 (267) Total $ 17,315 $ (123) $ 65,501 $ (1,899) $ 82,816 $ (2,022) There were two investments with unrealized losses of less than one year, and 23 investments with unrealized losses of more than one year at June 30, 2019. There were 14 investments with unrealized losses of less than one year, and 48 investments with unrealized losses of more than one year at December 31, 2018. The unrealized losses associated with these investments are believed to be caused by changing market conditions 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, 2019, or for the year ended December 31, 2018. The contractual maturities of securities available-for-sale at June 30, 2019 and December 31, 2018 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, 2019 December 31, 2018 Amortized Fair Amortized Fair Cost Value Cost Value U.S. agency securities Due after one year through five years $ 1,005 $ 1,037 $ 1,043 $ 1,040 Due after five years through ten years 4,997 5,026 10,011 9,941 Due after ten years 4,998 5,000 4,998 4,906 Subtotal 11,000 11,063 16,052 15,887 Corporate securities Due after one year or less 1,000 1,006 6,077 5,947 Due after one year through five years 7,546 7,602 997 918 Subtotal 8,546 8,608 7,074 6,865 Municipal bonds Due after one year through five years 2,659 2,663 2,659 2,570 Due after five years through ten years 2,003 2,092 2,610 2,592 Due after ten years 7,574 7,727 9,177 9,032 Subtotal 12,236 12,482 14,446 14,194 Mortgage-backed securities Federal National Mortgage Association (“FNMA”) 29,791 29,862 30,554 30,026 Federal Home Loan Mortgage Corporation (“FHLMC”) 7,461 7,368 10,301 9,961 Government National Mortgage Association (“GNMA”) 7,350 7,323 4,972 4,849 Subtotal 44,602 44,553 45,827 44,836 U.S. Small Business Administration securities Due after one year through five years 860 843 — — Due after five years through ten years 11,667 11,967 13,828 13,581 Due after ten years 6,708 6,736 1,862 1,842 Subtotal 19,235 19,546 15,690 15,423 Total $ 95,619 $ 96,252 $ 99,089 $ 97,205 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, 2019 and 2018 shown below: Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Gross Gross Gross Gross Proceeds Gains (Losses) Proceeds Gains (Losses) Securities available-for-sale $ 10,554 $ 91 $ (59) $ 10,554 $ 91 $ (59) 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 $ — |
Loans Receivable and Allowance
Loans Receivable and Allowance For Loan Losses | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Loans Receivable and Allowance For Loan Losses | NOTE 4 - LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES The composition of the loan portfolio was as follows at June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 REAL ESTATE LOANS Commercial $ 206,834 $ 204,699 Construction and development 214,140 247,306 Home equity 36,860 40,258 One-to-four-family (excludes loans held for sale) 248,921 249,397 Multi-family 103,219 104,663 Total real estate loans 809,974 846,323 CONSUMER LOANS Indirect home improvement 188,336 167,793 Solar 44,508 44,433 Marine 66,064 57,822 Other consumer 4,875 5,425 Total consumer loans 303,783 275,473 COMMERCIAL BUSINESS LOANS Commercial and industrial 135,336 138,686 Warehouse lending 47,028 65,756 Total commercial business loans 182,364 204,442 Total loans receivable, gross 1,296,121 1,326,238 Allowance for loan losses (12,340) (12,349) Deferred costs and fees, net (2,940) (2,907) Premiums on purchased loans, net 1,278 1,537 Total loans receivable, net $ 1,282,119 $ 1,312,519 Most of the Company’s commercial and multi-family real estate, construction, residential, and/or commercial business lending activities are with customers located in Western Washington and near the 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 and solar loans are originated through a network of home improvement contractors and dealers located throughout Washington, Oregon, California, Idaho, Colorado, and Arizona. 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. At June 30, 2019, the Bank held approximately $655.3 million in loans that qualify as collateral for FHLB advances, compared to approximately $355.5 million at December 31, 2018. The Bank pledged loans acquired in the Anchor Acquisition during the first quarter of 2019, after determining which loans qualify as collateral for FHLB advances. The Bank held approximately $295.7 million in loans that qualify as collateral for the Federal Reserve Bank line of credit at June 30, 2019, compared to approximately $265.2 million at December 31, 2018. 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 with four or less units. 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 primarily located in the states we originate consumer loans. Other Consumer. Loans originated by the Company to consumers in our retail branch footprint, including automobiles, recreational vehicles, direct home improvement loans, loans on deposits, and other consumer loans, primarily consisting of personal lines of credit and credit cards. 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 the Greater 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 principals 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, 2019 and 2018: At or For the Three Months Ended June 30, 2019 Commercial Real Estate Consumer Business Unallocated Total ALLOWANCE FOR LOAN LOSSES Beginning balance $ 5,785 $ 3,363 $ 2,730 $ (33) $ 11,845 Provision for loan losses (5) 196 419 300 910 Charge-offs — (217) (431) — (648) Recoveries — 233 — — 233 Net recoveries (charge-offs) — 16 (431) — (415) Ending balance $ 5,780 $ 3,575 $ 2,718 $ 267 $ 12,340 Period end amount allocated to: Loans individually evaluated for impairment $ — $ 156 $ — $ — $ 156 Loans collectively evaluated for impairment 5,780 3,419 2,718 267 12,184 Ending balance $ 5,780 $ 3,575 $ 2,718 $ 267 $ 12,340 LOANS RECEIVABLE Loans individually evaluated for impairment $ 322 $ 445 $ — $ — $ 767 Loans collectively evaluated for impairment 809,652 303,338 182,364 — 1,295,354 Ending balance $ 809,974 $ 303,783 $ 182,364 $ — $ 1,296,121 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, 2019 Commercial Real Estate Consumer Business Unallocated Total ALLOWANCE FOR LOAN LOSSES Beginning balance $ 5,761 $ 3,351 $ 3,191 $ 46 $ 12,349 Provision for loan losses 18 310 1,111 221 1,660 Charge-offs — (466) (1,584) — (2,050) Recoveries 1 380 — — 381 Net recoveries (charge-offs) 1 (86) (1,584) — (1,669) Ending balance $ 5,780 $ 3,575 $ 2,718 $ 267 $ 12,340 Period end amount allocated to: Loans individually evaluated for impairment $ — $ 156 $ — $ — $ 156 Loans collectively evaluated for impairment 5,780 3,419 2,718 267 12,184 Ending balance $ 5,780 $ 3,575 $ 2,718 $ 267 $ 12,340 LOANS RECEIVABLE Loans individually evaluated for impairment $ 322 $ 445 $ — $ — $ 767 Loans collectively evaluated for impairment 809,652 303,338 182,364 — 1,295,354 Ending balance $ 809,974 $ 303,783 $ 182,364 $ — $ 1,296,121 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 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 exception is the legacy Anchor credit card portfolio which is serviced externally. The following tables provide information pertaining to the aging analysis of contractually past due loans and non-accrual loans at June 30, 2019 and December 31, 2018: June 30, 2019 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 $ — $ — $ — $ — $ 206,834 $ 206,834 $ — Construction and development — — — — 214,140 214,140 — Home equity 38 5 186 229 36,631 36,860 190 One-to-four-family 117 99 572 788 248,133 248,921 958 Multi-family — — — — 103,219 103,219 — Total real estate loans 155 104 758 1,017 808,957 809,974 1,148 CONSUMER LOANS Indirect home improvement 382 122 155 659 187,677 188,336 401 Solar 73 — — 73 44,435 44,508 33 Marine 65 — — 65 65,999 66,064 — Other consumer 12 28 14 54 4,821 4,875 11 Total consumer loans 532 150 169 851 302,932 303,783 445 COMMERCIAL BUSINESS LOANS Commercial and industrial — — — — 135,336 135,336 — Warehouse lending — — — — 47,028 47,028 — Total commercial business loans — — — — 182,364 182,364 — Total loans $ 687 $ 254 $ 927 $ 1,868 $ 1,294,253 $ 1,296,121 $ 1,593 December 31, 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 $ — $ — $ — $ — $ 204,699 $ 204,699 $ — Construction and development — — — — 247,306 247,306 — Home equity 158 40 229 427 39,831 40,258 229 One-to-four-family 1,274 164 1,358 2,796 246,601 249,397 1,552 Multi-family — — — — 104,663 104,663 — Total real estate loans 1,432 204 1,587 3,223 843,100 846,323 1,781 CONSUMER LOANS Indirect home improvement 438 196 113 747 167,046 167,793 367 Solar 62 43 41 146 44,287 44,433 41 Marine 50 — — 50 57,772 57,822 18 Other consumer 69 24 11 104 5,321 5,425 2 Total consumer loans 619 263 165 1,047 274,426 275,473 428 COMMERCIAL BUSINESS LOANS Commercial and industrial — 431 — 431 138,255 138,686 1,685 Warehouse lending — — — — 65,756 65,756 — Total commercial business loans — 431 — 431 204,011 204,442 1,685 Total loans $ 2,051 $ 898 $ 1,752 $ 4,701 $ 1,321,537 $ 1,326,238 $ 3,894 There were five other consumer loans and two other consumer loans 90 days or more past due and still accruing interest of $8,000 and $11,000 at June 30, 2019 and at December 31, 2018, respectively. The following tables provide additional information about our impaired loans that have been segregated to reflect loans for which an allowance for loan losses has been provided and loans for which no allowance was provided at June 30, 2019 and December 31, 2018: June 30, 2019 Unpaid Principal Recorded Related Balance Investment Allowance WITH NO RELATED ALLOWANCE RECORDED Home equity $ 190 $ 190 $ — One-to-four-family 958 958 — Total real estate loans 1,148 1,148 — WITH RELATED ALLOWANCE RECORDED Consumer loans 445 445 156 445 445 156 Total $ 1,593 $ 1,593 $ 156 December 31, 2018 Unpaid Principal Recorded Related Balance Investment Allowance WITH NO RELATED ALLOWANCE RECORDED Home equity $ 229 $ 229 $ — WITH RELATED ALLOWANCE RECORDED One-to-four-family 1,552 1,552 125 Consumer loans 428 428 150 Commercial business loans 1,685 1,685 700 3,665 3,665 975 Total $ 3,894 $ 3,894 $ 975 The following tables present the average recorded investment in loans individually evaluated for impairment and the interest income recognized and received for the three and six months ended June 30, 2019 and 2018: At or For the Three Months Ended June 30, 2019 June 30, 2018 Average Recorded Interest Income Average Recorded Interest Income Investment Recognized Investment Recognized WITH NO RELATED ALLOWANCE RECORDED Home equity $ 190 $ — $ 148 $ 1 One-to-four-family 1,606 49 — — Total real estate loans 1,796 49 148 1 Commercial business loans 288 — — — 2,084 49 148 1 WITH RELATED ALLOWANCE RECORDED One-to-four-family — — 271 1 Consumer loans 442 7 292 6 442 7 563 7 Total $ 2,526 $ 56 $ 711 $ 8 At or For the Six Months Ended June 30, 2019 June 30, 2018 Average Recorded Interest Income Average Recorded Interest Income Investment Recognized Investment Recognized WITH NO RELATED ALLOWANCE RECORDED Home equity $ 267 $ — $ 182 $ 3 One-to-four-family 1,857 66 — — Total real estate loans 2,124 66 182 3 Commercial business loans 359 — — — 2,483 66 182 3 WITH AN ALLOWANCE RECORDED One-to-four-family — — 271 3 Consumer loans 451 17 276 11 Commercial business loans 1,152 7 — — 1,603 24 547 14 Total $ 4,086 $ 90 $ 729 $ 17 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. Commercial real estate, construction and development, multi-family and commercial business loans are evaluated individually for their risk classification and may be classified as “Substandard” even if paying on time. The following tables summarize risk rated loan balances by category at the dates indicated: June 30, 2019 Special Pass Watch Mention Substandard Doubtful Loss (1 - 5) (6) (7) (8) (9) (10) Total REAL ESTATE LOANS Commercial $ 204,267 $ 1,501 $ — $ 1,066 $ — $ — $ 206,834 Construction and development 208,294 5,846 — — — — 214,140 Home equity 36,635 — 35 190 — — 36,860 One-to-four-family 247,702 200 61 958 — — 248,921 Multi-family 102,025 1,194 — — — — 103,219 Total real estate loans 798,923 8,741 96 2,214 — — 809,974 CONSUMER LOANS Indirect home improvement 187,935 — — 401 — — 188,336 Solar 44,475 — — 33 — — 44,508 Marine 66,064 — — — — — 66,064 Other consumer 4,859 — 5 11 — — 4,875 Total consumer loans 303,333 — 5 445 — — 303,783 COMMERCIAL BUSINESS LOANS Commercial and industrial 123,752 7,663 120 3,801 — — 135,336 Warehouse lending 47,028 — — — — — 47,028 Total commercial business loans 170,780 7,663 120 3,801 — — 182,364 Total loans receivable, gross $ 1,273,036 $ 16,404 $ 221 $ 6,460 $ — $ — $ 1,296,121 December 31, 2018 Special Pass Watch Mention Substandard Doubtful Loss (1 - 5) (6) (7) (8) (9) (10) Total REAL ESTATE LOANS Commercial $ 203,557 $ 1,142 $ — $ — $ — $ — $ 204,699 Construction and development 244,577 2,729 — — — — 247,306 Home equity 39,846 — 183 229 — — 40,258 One-to-four-family 247,575 207 63 1,552 — — 249,397 Multi-family 103,447 1,216 — — — — 104,663 Total real estate loans 839,002 5,294 246 1,781 — — 846,323 CONSUMER LOANS Indirect home improvement 167,426 — — 367 — — 167,793 Solar 44,392 — — 41 — — 44,433 Marine 57,804 — — 18 — — 57,822 Other consumer 5,415 — 8 2 — — 5,425 Total consumer loans 275,037 — 8 428 — — 275,473 COMMERCIAL BUSINESS LOANS Commercial and industrial 124,089 8,813 — 5,784 — — 138,686 Warehouse lending 65,756 — — — — — 65,756 Total commercial business loans 189,845 8,813 — 5,784 — — 204,442 Total loans receivable, gross $ 1,303,884 $ 14,107 $ 254 $ 7,993 $ — $ — $ 1,326,238 |
Servicing Rights
Servicing Rights | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value, Off-balance Sheet Risk [Abstract] | |
Servicing Rights | NOTE 5 - 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 $1.30 billion and $1.19 billion at June 30, 2019 and December 31, 2018, respectively. The following tables summarizes servicing rights activity for the three and six months ended June 30, 2019 and 2018: At or For the Three Months Ended June 30, 2019 2018 Beginning balance $ 10,611 $ 7,515 Additions 1,215 1,381 Servicing rights amortized (853) (544) Impairment of servicing rights (124) — Ending balance $ 10,849 $ 8,352 At or For the Six Months Ended June 30, 2019 2018 Beginning balance $ 10,429 $ 6,795 Additions 2,059 2,519 Servicing rights amortized (1,492) (962) Impairment of servicing rights (147) — Ending balance $ 10,849 $ 8,352 The fair market value of the servicing rights’ assets was $11.2 million and $14.6 million at June 30, 2019 and December 31, 2018, 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, At December 31, 2019 2018 Key assumptions: Weighted average discount rate 9.5 % 9.5 % Conditional prepayment rate (“CPR”) 19.4 % 9.4 % Weighted average life in years 4.8 7.7 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, 2019 and December 31, 2018 were as follows: June 30, 2019 December 31, 2018 Aggregate portfolio principal balance $ 1,302,598 $ 1,186,858 Weighted average rate of note 4.3 % % At June 30, 2019 Base 0.5% Adverse Rate Change 1.0% Adverse Rate Change Conditional prepayment rate 19.4 % 27.4 % 35.6 % Fair value MSR $ 11,209 $ 9,001 $ 7,369 Percentage of MSR 0.9 % 0.7 % 0.6 % Discount rate 9.7 % 10.2 % 10.7 % Fair value MSR $ 11,209 $ 11,033 $ 10,863 Percentage of MSR 0.9 % 0.8 % 0.8 % At December 31, 2018 Base 0.5% Adverse Rate Change 1.0% Adverse Rate Change Conditional prepayment rate 8.8 % 11.6 % 17.7 % Fair value MSR $ 14,218 $ 12,723 $ 10,358 Percentage of MSR 1.2 % 1.1 % 0.9 % Discount rate 9.6 % 10.1 % 10.6 % Fair value MSR $ 14,218 $ 13,912 $ 13,617 Percentage of MSR 1.2 % 1.2 % 1.2 % 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 market 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 the 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 $834,000 and $573,000 of gross contractually specified servicing fees, late fees, and other ancillary fees resulting from servicing of loans for the three months ended June 30, 2019 and 2018, respectively, and $1.6 million and $1.1 million for the six months ended June 30, 2019 and 2018, respectively. The income, net of amortization, is reported in noninterest income on the Consolidated Statements of Income. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | NOTE 6 - 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 or expense. 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, 2019 Fair Value Notional Asset Liability Fallout adjusted interest rate lock commitments with customers $ 74,370 $ 1,047 $ — Mandatory and best effort forward commitments with investors 35,442 — — Forward TBA mortgage-backed securities 132,000 — 411 December 31, 2018 Fair Value Notional Asset Liability Fallout adjusted interest rate lock commitments with customers $ 29,432 $ 503 $ — Mandatory and best effort forward commitments with investors 24,776 — 34 Forward TBA mortgage-backed securities 51,500 — 540 At June 30, 2019 and December 31, 2018, the Company had $132.0 million and $51.5 million of TBA trades with counterparties that required margin collateral of $910,000 and $460,000 , respectively . This collateral is included in interest-bearing deposits at other financial institutions on the Consolidated Balance Sheets. Changes in the fair value of the derivatives recognized in other noninterest income on the Consolidated Statements of Income and included in gain on sale of loans resulted in net losses of ($ 7,000) and net gains of $403,000 for the three months ended June 30, 2019 and 2018, respectively, and net gains of $292,000 and $484,000 for the six months ended June 30, 2019 and 2018, respectively. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
LEASES | |
LEASES | NOTE 7 - LEASES The Company has operating leases for retail bank and home lending branches, and certain equipment. The ROU assets obtained in exchange for operating lease obligations totaled $5.2 million at January 1, 2019. The Company’s leases have remaining lease terms of five months to eight years, some of which include options to extend the leases for up to five years and are referenced in the December 31, 2018 Form 10-K, Part I. Item 2. The components of lease cost (included in occupancy expense) are as follows for the six months ended June 30, 2019: Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Lease cost: Operating lease cost $ 308 $ 616 Short-term lease cost 38 84 Total lease cost $ 346 $ 700 The following table provides supplemental information related to operating leases: At or For the Three Months Ended At or For the Six Months Ended June 30, 2019 June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ $ 676 Weighted average remaining lease term- operating leases years 5.7 years Weighted average discount rate- operating leases % 3.11 % The Company’s leases typically do not contain a discount rate implicit in the lease contract. As an alternative, the weighted average discount rate used to present value the future value of lease payments due in calculating the value of the ROU asset and lease liability was determined by utilizing the December 31, 2018 fixed-rate advances issued by the FHLB of Des Moines, for all leases entered into prior to the January 1, 2019 adoption date. Maturities of operating lease liabilities at June 30, 2019 for future periods are as follows: Remainder of 2019 $ 631 2020 1,082 2021 947 2022 841 2023 482 Thereafter 1,282 Total lease payments 5,265 Less imputed interest (544) Total $ 4,721 The Company has secured two new leases commencing between July 1, 2019 and December 31, 2019. The initial lease terms range between 64 – 65 months and both include one option to extend for five years. These leases were not included in the ROU assets or operating lease liabilities at June 30, 2019. |
Other Real Estate Owned
Other Real Estate Owned | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Other Real Estate Owned | NOTE 8 - OTHER REAL ESTATE OWNED (“OREO”) The following table presents the activity related to OREO at or for the three and six months ended June 30, 2019 and 2018: At or For the Three Months Ended At or For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Beginning balance $ 167 $ — $ 689 $ — Additions 87 — 164 — Gross proceeds from sale of OREO — — (684) — Gain on sale of OREO — — 85 — Ending balance $ 254 $ — $ 254 $ — At June 30, 2019, there were $254,000 in OREO properties and none at June 30, 2018. There were holding costs of $7,000 and $11,000 for the three and six months ended June 30, 2019, respectively, compared to no holding costs for both the three and six months ended June 30, 2018. There were $225,000 in mortgage loans collateralized by residential real estate property in the process of foreclosure at June 30, 2019. |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Deposits | NOTE 9 - DEPOSITS Deposits are summarized as follows at June 30, 2019 and December 31, 2018: June 30, December 31, 2019 (1)(2) 2018 (1)(2) Noninterest-bearing checking $ 268,113 $ 221,107 Interest-bearing checking 180,498 151,103 Savings 117,687 122,344 Money market 247,854 282,595 Certificates of deposit less than $100,000 (3) 251,280 243,193 Certificates of deposit of $100,000 through $250,000 177,718 154,095 Certificates of deposit of $250,000 and over (4) 79,959 86,357 Escrow accounts related to mortgages serviced 11,108 13,425 Total $ 1,334,217 $ 1,274,219 __________________________ (1) Includes $113.9 million of deposits at June 30, 2019 from the purchase of four retail bank branches from Bank of America, National Association on January 22, 2016 (“Branch Purchase”) and $120.0 million at December 31, 2018. (2) Includes $345.1 million and $321.1 million of deposits at June 30, 2019 and December 31, 2018, respectively, from the Anchor Acquisition. (3) Includes $114.6 million and $116.7 million of brokered deposits at June 30, 2019 and December 31, 2018, 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 when there are deposit balances with the Federal Reserve Bank based on a percentage of deposits. The amounts of such balances at June 30, 2019 and December 31, 2018 were none and $17.4 million, respectively, and are included in interest-bearing deposits at other financial institutions on the Consolidated Balance Sheets. Scheduled maturities of time deposits at June 30, 2019 for future periods ending are as follows: At June 30, 2019 Maturing in 2019 $ 183,730 Maturing in 2020 220,783 Maturing in 2021 57,153 Maturing in 2022 30,327 Maturing in 2023 9,745 Thereafter 7,219 Total $ 508,957 Interest expense by deposit category for the three and six months ended June 30, 2019 and 2018 is as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Interest-bearing checking $ 386 $ 63 $ 582 $ 130 Savings and money market 741 393 1,504 712 Certificates of deposit 2,929 976 5,680 1,833 Total $ 4,056 $ 1,432 $ 7,766 $ 2,675 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 10 - 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, 2019 and December 31, 2018: June 30, December 31, 2019 2018 COMMITMENTS TO EXTEND CREDIT REAL ESTATE LOANS Commercial $ 2,154 $ 5,836 Construction and development 70,506 76,889 One-to-four-family (includes locks for salable loans) 81,963 35,714 Home equity 43,049 41,204 Multi-family 510 515 Total real estate loans 198,182 160,158 CONSUMER LOANS 21,234 18,560 COMMERCIAL BUSINESS LOANS Commercial and industrial 75,304 72,880 Warehouse lending 45,472 44,243 Total commercial business loans 120,776 117,123 Total commitments to extend credit $ 340,192 $ 295,841 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 $285,000 at June 30, 2019 and $299,000 at December 31, 2018. One-to-four-family commitments included in the table above are accounted for as fair value derivatives and do not carry an associated holdback. 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, 2019, the total loans sold to the FHLB were $74.6 million with the FLA totaling $875,000 and the CE obligation at $680,000 or 0.89% of the loans outstanding. Management has established a holdback of 10% of the outstanding CE, or $68,000, which is a part of the off-balance sheet holdback for loans sold. There were no outstanding delinquencies on the loans sold to the FHLB of Des Moines at both June 30, 2019 and December 31, 2018. 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 a holdback reserve of $1.2 million to cover loss exposure related to these guarantees for one-to-four-family loans sold into the secondary market at June 30, 2019, and $1.0 million at December 31, 2018, 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 the Executive Vice President 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. At June 30, 2019, 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, 2019 and December 31, 2018 was $173.55 per share and $131.94 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, 2019. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 11 - FAIR VALUE MEASUREMENTS The Company determines the fair values of its financial instruments based on the requirements established in Accounting Standards Codification (“ASC”) Topic 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. ASU 2016-01 , Financial Instruments - Overall (Subtopic 825‑10), Recognition and Measurement of Financial Assets and Financial Liabilities, requires us to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. 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. The following methods were used to estimate the fair value of financial instruments on a recurring and nonrecurring basis: 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). Other Real Estate Owned - Fair value adjustments to OREO are recorded at the lower of carrying amount of the loan or fair value less selling costs. Any write-downs based on the asset’s fair value at the date of acquisition are charged to the allowance for loan losses. After foreclosure, management periodically performs valuations such that the real estate is carried at the lower of its new cost basis or fair value, net of estimated costs to sell (Level 3). Servicing Rights - The fair value of mortgage 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). 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, 2019 U.S. agency securities $ — $ 11,063 $ — $ 11,063 Corporate securities — 8,608 — 8,608 Municipal bonds — 12,482 — 12,482 Mortgage-backed securities — 44,553 — 44,553 U.S. Small Business Administration securities — 19,546 — 19,546 Total $ — $ 96,252 $ — $ 96,252 Securities Available-for-Sale Level 1 Level 2 Level 3 Total At December 31, 2018 U.S. agency securities $ — $ 15,887 $ — $ 15,887 Corporate securities — 6,865 — 6,865 Municipal bonds — 14,194 — 14,194 Mortgage-backed securities — 44,836 — 44,836 U.S. Small Business Administration securities — 15,423 — 15,423 Total $ — $ 97,205 $ — $ 97,205 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, 2019 $ — $ 66,508 $ — $ 66,508 December 31, 2018 $ — $ 51,195 $ — $ 51,195 The following tables present the fair value of interest rate lock commitments with customers and individual forward sale 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, 2019 $ — $ — $ 1,047 $ 1,047 December 31, 2018 $ — $ — $ 503 $ 503 Individual Forward Sale Commitments with Investors Level 1 Level 2 Level 3 Total June 30, 2019 $ — $ (411) — $ (411) December 31, 2018 $ — $ (540) $ (34) $ (574) The following tables present impaired loans, OREO, and servicing rights 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, 2019 $ — $ — $ 1,593 $ 1,593 December 31, 2018 $ — $ — $ 3,894 $ 3,894 OREO Level 1 Level 2 Level 3 Total June 30, 2019 $ — $ — $ 254 $ 254 December 31, 2018 $ — $ — $ 689 $ 689 Servicing Rights Level 1 Level 2 Level 3 Total June 30, 2019 $ — $ — $ 11,209 $ 11,209 December 31, 2018 $ — $ — $ 14,593 $ 14,593 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, 2019 and December 31, 2018: Level 3 Significant Weighted Fair Value Valuation Unobservable Average Weighted Average Instruments Techniques Inputs Range June 30, 2019 December 31, 2018 RECURRING Interest rate lock commitments with customers Quoted market prices Pull-through expectations 80% - 99% 94.9 % 95.2 % Individual forward sale commitments with investors Quoted market prices Pull-through expectations 80% - 99% 94.9 % 95.2 % NONRECURRING Impaired loans Fair value of underlying collateral Discount applied to the obtained appraisal 0% - 50% 9.8 % 25.0 % OREO Fair value of collateral Discount applied to the obtained appraisal 0% - 75% 35.8 % 71.1 % Servicing rights Industry sources Pre-payment speeds 0% - 50% 19.4 % 9.4 % An increase in the pull-through rate utilized in the fair value measurement of the interest rate lock commitments with customers and forward sale commitments with investors will result in positive fair value adjustments (and an increase in the fair value measurement). Conversely, a decrease in the pull-through rate will result in a negative fair value adjustment (and a decrease in the fair value measurement). The following tables 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, 2019 and 2018: 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 2019 Interest rate lock commitments with customers $ 686 $ 3,163 $ (2,802) $ 1,047 $ 361 Individual forward sale commitments with investors (96) (425) 521 — 96 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) 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 period 2019 Interest rate lock commitments with customers $ 503 $ 5,095 $ (4,551) $ 1,047 $ 544 Individual forward sale commitments with investors (34) (587) 621 — 34 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) 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 value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business. The fair value has not been estimated for assets and liabilities that are not considered financial instruments. Financial Instruments with Book Value Equal to Fair Value - The fair value of financial instruments that are short-term or reprice frequently and that have little or no risk are considered to have a fair value equal to book value. These instruments include cash and cash equivalents and certificates of deposit at other financial institutions, FHLB stock, BOLI, accrued interest, and off-balance sheet instruments. Fair Value Estimates - The following methods and assumptions were used by the Company in estimating the fair values of financial instruments disclosed in following financial instruments table: Loans Receivable, Net - Fair values for loans are estimated using an exit price assumption (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 an exit price assumption (Level 2). Borrowings - The carrying amounts of advances maturing within 90 days approximate their fair values. The fair values of long-term advances are estimated using discounted cash flow analyses based on the Bank’s current incremental borrowing rates for similar types of borrowing arrangements (Level 2). Subordinated Note - The fair value of the Subordinated Note is based upon the average yield of debt issuances for similarly sized issuances (Level 2). The following table provides estimated fair values of the Company’s financial instruments at June 30, 2019 and December 31, 2018, whether or not recognized at fair value on the Consolidated Balance Sheets: June 30, December 31, 2019 2018 Carrying Fair Carrying Fair Amount Value Amount Value Financial Assets Level 1 inputs: Cash and cash equivalents $ $ $ $ Certificates of deposit at other financial institutions Level 2 inputs: Securities available-for-sale, at fair value Loans held for sale, at fair value FHLB stock, at cost Accrued interest receivable Level 3 inputs: Loans receivable, gross Servicing rights, held at lower of cost or fair value Fair value interest rate locks with customers Financial Liabilities Level 2 inputs: Deposits Borrowings Subordinated note Accrued interest payable Paired off commitments with investors Individual forward sale commitments with investors Level 3 inputs: Individual forward sale commitments with investors |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2019 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | NOTE 12 - 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, 2018, the ESOP paid the seventh annual installment of principal in the amount of $269,000, plus accrued interest of $26,000 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, 2019 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, 2019 and 2018 was $327,000 and $393,000, respectively, and $647,000 and $752,000 for the six months ended June 30, 2019 and 2018, respectively. Shares held by the ESOP at June 30, 2019 and 2018 were as follows (shown as actual): Balances Balances at June 30, 2019 at June 30, 2018 Allocated shares 176,809 153,049 Committed to be released shares 12,960 12,960 Unallocated shares 64,803 90,724 Total ESOP shares 254,572 256,733 Fair value of unallocated shares (in thousands) $ 3,241 $ 5,262 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 13 - EARNINGS PER SHARE The Company computes earnings per share using the two-class method, which is an earnings allocation method for computing earnings per share that treats a participating security as having rights to earnings that would otherwise have been available to common shareholders. 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. Unvested share-based awards containing non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. 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, 2019 and 2018: At or For the Three Months Ended June 30, At or For the Six Months Ended June 30, Numerator (in thousands): 2019 2018 2019 2018 Net income $ 4,463 $ 4,257 $ 9,655 $ 8,579 Dividends and undistributed earnings allocated to participating securities (29) — (62) — Net income available to common shareholders $ 4,434 $ 4,257 $ 9,593 $ 8,579 Denominator (shown as actual): Basic weighted average common shares outstanding 4,418,397 3,583,927 4,415,111 3,573,560 Dilutive shares 112,472 181,797 117,873 188,519 Diluted weighted average common shares outstanding 4,530,869 3,765,724 4,532,984 3,762,079 Basic earnings per share $ 1.00 $ 1.19 $ 2.17 $ 2.40 Diluted earnings per share $ 0.98 $ 1.13 $ 2.12 $ 2.28 Potentially dilutive weighted average share options that were not included in the computation of diluted earnings per share because to do so would be anti-dilutive 39,668 — 41,195 — |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | NOTE 14 - STOCK-BASED COMPENSATION Stock Options and Restricted Stock On May 17, 2018, the shareholders of FS Bancorp, Inc. approved the 2018 Equity Incentive Plan (the “2018 Plan”) that authorizes 650,000 shares of the Company’s common stock to be awarded. The 2018 Plan pr ovides for the grant of incentive stock options, non-qualified stock options, and up to 163,000 restricted stock awards (“RSAs”) to directors, emeritus directors, officers, employees or advisory directors of the Company. On August 15, 2018, the Company awarded grants of 25,000 RSAs and 100,000 stock options with an exercise price equal to the market price of FS Bancorp’s common stock at the grant date of $58.60 per share. In September 2013, the shareholders of FS Bancorp, Inc. approved the FS Bancorp, Inc. 2013 Equity Incentive Plan (the “2013 Plan”). The Plan provides for the grant of stock options and RSAs. The 2013 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 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. The 2013 Plan authorizes the grant of RSAs totaling 129,605 shares to Company directors, advisory directors, emeritus directors, officers, 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 RSAs were granted January 1, 2016 at a grant date fair value of $26.00 per share. Total share-based compensation expense for both plans was $190,000 and $452,000 for the three and six months ended June 30, 2019, respectively, and $150,000 and $285,000 for the 2013 Plan for the three and six months ended June 30, 2018, respectively. Stock Options Both plans consist of stock option awards that may be granted as incentive stock options or non-qualified stock options. Options typically vest over a period of five years with 20% vesting on the anniversary date of each grant date as long as the award recipient remains in service to the Company. The options are exercisable after vesting for up to the remaining term of the original grant. The maximum term of the options granted is 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, 2019, there were 387,000 and 6,013 option share awards available to be granted under the 2018 Plan and the 2013 Plan, respectively. 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 awards during the six months ended June 30, 2019 (shown as actual): Weighted-Average Weighted- Remaining Average Contractual Term In Aggregate Shares Exercise Price Years Intrinsic Value Outstanding at January 1, 2019 290,104 $ 31.27 6.83 $ 4,940,803 Granted — — — — Less exercised 40,400 $ 16.89 — $ 1,289,224 Forfeited or expired — — — — Outstanding at June 30, 2019 249,704 $ 33.59 6.57 $ 5,236,646 Expected to vest, assuming a 0.31% annual forfeiture rate (1) 249,046 $ 33.53 6.57 $ 5,236,646 Exercisable at June 30, 2019 149,704 $ 16.89 4.86 $ 5,236,646 __________________________ (1) Forfeiture rate has been calculated and estimated to assume a forfeiture of 3.1% of the options forfeited over 10 years. At June 30, 2019, there was $1.1 million of total unrecognized compensation cost related to nonvested stock options granted under both plans. The cost is expected to be recognized over the remaining weighted-average vesting period of 4.1 years. Restricted Stock Awards The RSAs’ fair value is equal to the value on the grant date. Compensation expense is recognized over the vesting period of the awards based on the fair value of the restricted stock. Shares in the 2013 Plan awarded as restricted stock typically vested ratably over a three-year period for directors and a five-year period for employees, beginning at the grant date, and for the 2018 Plan, shares typically vest ratably over a five-year period for both directors and employees beginning at the grant date. Any unvested RSAs 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, 2019 (shown as actual): Weighted-Average Grant-Date Fair Value Nonvested Shares Shares Per Share Nonvested at January 1, 2019 43,421 $ 41.22 Granted — — Less vested 18,421 $ 17.63 Forfeited or expired — — Nonvested at June 30, 2019 25,000 $ 58.60 At June 30, 2019, there was $1.2 million of total unrecognized compensation costs related to nonvested shares granted as RSAs. The cost is expected to be recognized over the remaining weighted-average vesting period of 4.1 years. The total fair value of shares vested for the six months ended June 30, 2019 and 2018 was $948,000 and $1.1 million, respectively. |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2019 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital | NOTE 15 - REGULATORY CAPITAL The Bank is subject to various regulatory capital requirements administered by the Federal Reserve and the FDIC. 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, 2019 and December 31, 2018, 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 2019, that the Bank met all capital adequacy requirements. The following table compares the Bank’s actual capital amounts and ratios at June 30, 2019 and December 31, 2018 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, 2019 Total risk-based capital (to risk-weighted assets) $ 197,531 14.73 % $ 107,314 8.00 % $ 140,850 10.50 % $ 134,143 10.00 % Tier 1 risk-based capital (to risk-weighted assets) $ 184,907 13.78 % $ 80,486 6.00 % $ 114,021 8.50 % $ 107,314 8.00 % Tier 1 leverage capital (to average assets) $ 184,907 11.38 % $ 64,979 4.00 % $ N/A N/A $ 81,224 5.00 % CET 1 capital (to risk-weighted assets) $ 184,907 13.78 % $ 60,364 4.50 % $ 93,900 7.00 % $ 87,193 6.50 % At December 31, 2018 Total risk-based capital (to risk-weighted assets) $ 188,472 13.52 % $ 111,493 8.00 % $ 137,694 9.88 % $ 139,366 10.00 % Tier 1 risk-based capital (to risk-weighted assets) $ 175,824 12.62 % $ 83,620 6.00 % $ 109,820 7.88 % $ 111,493 8.00 % Tier 1 leverage capital (to average assets) $ 175,824 10.67 % $ 65,884 4.00 % $ N/A N/A $ 82,355 5.00 % CET 1 capital (to risk-weighted assets) $ 175,824 12.62 % $ 62,715 4.50 % $ 88,846 6.38 % $ 90,588 6.50 % In addition to the minimum CET 1, Tier 1, total capital, and leverage ratios, the Bank is required to maintain a capital conservation buffer consisting of additional CET 1 capital greater than 2.5% of risk-weighted assets 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. At June 30, 2019, the Bank’s capital conservation buffer was 6.7%. FS Bancorp, Inc. is a bank holding company registered with the Federal Reserve. Bank holding companies are subject to 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 $3.0 billion in assets, 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. If FS Bancorp, Inc. was subject to regulatory guidelines for bank holding companies with $3.0 billion or more in assets at June 30, 2019, FS Bancorp, Inc. would have exceeded all regulatory capital requirements. The regulatory capital ratios calculated for FS Bancorp, Inc. at June 30, 2019 were 11.1% for Tier 1 leverage-based capital, 13.5% for Tier 1 risk-based capital, 14.4% for total risk-based capital, and 13.5% for CET 1 capital ratio, compared to 11.9%, 13.9%, 15.2%, and 13.9% at June 30, 2018, respectively. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | NOTE 16 - 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. The Company defines its business segments by product type and customer segment which it has organized into two lines of business: commercial and consumer banking and home lending. The Company uses 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 its 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. The Company originates consumer loans, commercial and multi-family real estate loans, construction loans for residential and multi-family construction, and commercial business loans. At June 30, 2019, the Company’s retail deposit branch network consisted of 21 branches in the Pacific Northwest. At June 30, 2019 and December 31, 2018, deposits totaled $1.33 billion and $1.27 billion, respectively. This segment is also responsible for the management of its 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 mortgage loans are sold to or securitized by FNMA, FHLMC, GNMA, or FHLB, while the Company retains 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. The Company has the option to sell loans on a servicing-released or servicing-retained basis to securitizers and correspondent lenders. A small percentage of its loans are brokered to other lenders. On occasion, the Company may sell a portion of its MSR portfolio and may sell small pools of loans initially originated to be held in the loan portfolio. The Company manages 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, 2019 and 2018: At or For the Three Months Ended June 30, 2019 Home Lending Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 1,141 $ 16,393 $ 17,534 Provision for loan losses (2) (304) (606) (910) Noninterest income 3,511 2,572 6,083 Noninterest expense (3,944) (13,127) (17,071) Income before provision for income taxes 404 5,232 5,636 Provision for income taxes (86) (1,087) (1,173) Net income $ 318 $ 4,145 $ 4,463 Total average assets at period end $ 253,394 $ 1,374,290 $ 1,627,684 FTEs 116 316 432 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 Six Months Ended June 30, 2019 Home Lending Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 2,212 $ 33,011 $ 35,223 Provision for loan losses (2) (363) (1,297) (1,660) Noninterest income 5,930 4,708 10,638 Noninterest expense (7,248) (24,620) (31,868) Income before provision for income taxes 531 11,802 12,333 Provision for income taxes (115) (2,563) (2,678) Net income $ 416 $ 9,239 $ 9,655 Total average assets at period end $ 246,379 $ 1,374,929 $ 1,621,308 FTEs 116 316 432 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 period end $ 219,553 $ 830,419 $ 1,049,972 FTEs 117 219 336 ____________________________ (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. (2) The allocated provis ion for loan losses is partially associated with the increase in Anchor Bank, one-to-four-family, and home equity loans of $59.7 million at June 30, 2019. |
Goodwill And Other Intangible A
Goodwill And Other Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 17 - GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and certain other intangibles generally arise from business combinations accounted for under the acquisition method of accounting. Goodwill totaled $2.3 million at June 30, 2019 and December 31, 2018, 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 as a result of the Branch Purchase in 2016. 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, 2018, and determined that no impairment of goodwill existed. No events or circumstances since the December 31, 2018 annual impairment test were noted that would indicate it was more likely than not a goodwill impairment existed at June 30, 2019. The following table summarizes the changes in the Company’s other intangible assets comprised solely of CDI for the year ended December 31, 2018, and the six months ended June 30, 2019. Other Intangible Assets Accumulated Gross CDI Amortization Net CDI Balance, December 31, 2017 $ 2,239 $ (922) $ 1,317 Additions as a result of the Anchor Acquisition (1) 5,251 — 5,251 Amortization — (351) (351) Balance, December 31, 2018 7,490 (1,273) 6,217 Amortization — (380) (380) Balance, June 30, 2019 $ 7,490 $ (1,653) $ 5,837 ____________________________ (1) See “Note 2 - Business Combination.” The CDI represents the fair value of the acquired core deposit base acquired in business combinations. The CDI will be amortized on a straight-line basis over 10 years for the CDI related to the Anchor Acquisition and on an accelerated basis over approximately nine years for the CDI related to the Branch Purchase. Total amortization expense was $190,000 and $380,000 for the three and six months ended June 30, 2019, and $77,000 and $153,000 for the same periods in 2018. Amortization expense for CDI is expected to be as follows at June 30, 2019: Remainder of 2019 380 2020 706 2021 691 2022 691 2023 691 Thereafter 2,678 Total $ 5,837 |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | NOTE 18 - REVENUE FROM CONTRACTS WITH CUSTOMERS 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, 2019, the Company recognized $1.2 million in total deposit fees, which included $469,000 of debit card interchange fees and $280,000 of fees from non-sufficient funds, both considered within the scope of ASC 606, and $5.3 million of noninterest income considered not within the scope of ASC 606, compared to $574,000 in total deposit fees including $280,000 of debit card interchange fees, $116,000 of fees from non-sufficient funds, and $5.2 million of noninterest income considered not within the scope of ASC 606 for the three months ended June 30, 2018. For the six months ended June 30, 2019, the Company recognized $2.3 million in total deposit fees, which included $892,000 of debit card interchange fees and $551,000 of fees from non-sufficient funds, both considered within the scope of ASC 606, and $9.2 million of noninterest income considered not within the scope of ASC 606, compared to $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 services, and overdraft charges. 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 deposit accounts are charged to deposit customers for specific services provided to the customer, such as wire fees, as well as charges against the account, such as fees for non-sufficient funds and overdrafts. 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. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Financial Statement Presentation | Financial Statement Presentation - The accompanying unaudited interim 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, 2018, as filed with the SEC on March 15, 2019. 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, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019, 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, deferred income taxes, and if needed, a deferred tax asset valuation allowance. Amounts presented in the consolidated financial statements and footnote tables are rounded and presented to the nearest thousands of dollars except per share amounts. If the amounts are above $1.0 million, they are rounded one decimal point, and if they are above $1.0 billion, they are rounded two decimal points. |
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 16 - Business Segments.” |
Subsequent Events | Subsequent Events - The Company has evaluated events and transactions subsequent to June 30, 2019 for potential recognition or disclosure. |
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 with four or less units. 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 primarily located in the states we originate consumer loans. Other Consumer. Loans originated by the Company to consumers in our retail branch footprint, including automobiles, recreational vehicles, direct home improvement loans, loans on deposits, and other consumer loans, primarily consisting of personal lines of credit and credit cards. 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 the Greater 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 principals 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. The exception is the legacy Anchor credit card portfolio which is serviced externally. |
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. Commercial real estate, construction and development, multi-family and commercial business loans are evaluated individually for their risk classification and may be classified as “Substandard” even if paying on time. |
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 or expense. 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 | The following methods were used to estimate the fair value of financial instruments on a recurring and nonrecurring basis: 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). Other Real Estate Owned - Fair value adjustments to OREO are recorded at the lower of carrying amount of the loan or fair value less selling costs. Any write-downs based on the asset’s fair value at the date of acquisition are charged to the allowance for loan losses. After foreclosure, management periodically performs valuations such that the real estate is carried at the lower of its new cost basis or fair value, net of estimated costs to sell (Level 3). Servicing Rights - The fair value of mortgage 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). |
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, 2019 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. |
Earnings Per Share | The Company computes earnings per share using the two-class method, which is an earnings allocation method for computing earnings per share that treats a participating security as having rights to earnings that would otherwise have been available to common shareholders. 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. Unvested share-based awards containing non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. 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 June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016‑13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended by ASU 2018-19, ASU 2019-04, and ASU 2019-05. 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 current expected credit losses (“CECL”) 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 CECL. 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, however, the FASB board proposed in July 2019 extending the adoption date for certain registrants, including the Company, to fiscal years beginning after December 15, 2022. 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, the Company anticipates the allowance for loan losses to increase through a one‑time adjustment to retained earnings, however, until the evaluation is complete the magnitude of the increase will be unknown. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments . This ASU clarifies and improves areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement including improvements resulting from various FASB Transition Resource Group meetings. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that ASU 2019-04 will have on its consolidated financial statements. In May 2019, the FASB issued ASU 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief . The amendments in this ASU provide entities that have certain instruments within the scope of Subtopic 326-20 with an option to irrevocably elect the fair value option in Subtopic 825-10, applied on an instrument-by-instrument basis for eligible instruments, upon the adoption of Topic 326. The fair value option election does not apply to held-to-maturity debt securities. An entity that elects the fair value option should subsequently measure those instruments at fair value with changes in fair value flowing through earnings. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments should be applied on a modified-retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings balance in the balance sheet. Early adoption is permitted. The Company is currently assessing the impact that ASU 2019-05 will have on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement . This ASU contains some technical adjustments related to the fair value disclosure requirements of public companies. Included in this ASU is the additional disclosure requirement of unrealized gains and losses for the period in recurring level 3 fair value disclosures and the range and weighted average of significant unobservable inputs, among other technical changes. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. The adoption of ASU 2018-13 is not expected to have a material impact on the Company's consolidated financial statements. In August 2018, FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . The amendments in this ASU broaden the scope of ASC Subtopic 350-40 to include costs incurred to implement a hosting arrangement that is a service contract. The amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The costs are capitalized or expensed depending on the nature of the costs and the project stage during which they are incurred, consistent with the accounting for costs for internal-use software. The amendments in this ASU result in consistent capitalization of implementation costs of a hosting arrangement that is a service contract and implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this ASU. This ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The amendments in this ASU should be applied retrospectively to all implementation costs incurred after the date of adoption. Adoption of ASU 2018-15 is not expected to have a material impact on the Company’s Consolidated Financial Statements. |
Application of New Accounting Guidance | Application of New Accounting Guidance Adopted in 2019 On January 1, 2019, the Company adopted FASB 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 an ROU 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 operating leases, the lease cost should be allocated over the lease term on a generally straight-line basis. In July 2018, the FASB issued ASU No, 2018-10, Codification Improvements to Topic 842, Leases and ASU No. 2018-11, Leases (Topic 842): Targeted Improvements . These ASUs contain clarifications to ASU 2016-02, including providing a new transition method in addition to the existing transition method contained in ASU No. 2016-02 to allow entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. These amendments have the same effective date as ASU 2016-02. In March 2019, FASB issued ASU 2019-01, Leases (Topic 842), Codification Improvements . The amendment in this ASU that is applicable to the Company clarifies interim disclosure requirements that allow omission of required transition disclosures. For financial reporting purposes, the Company applied the modified retrospective transition approach and elected to apply the transition option included in ASU 2018-11 on the effective date, January 1, 2019 which eliminates the requirement for reporting comparative periods presented in the financial statements prior to that date. The new standard provides for a number of practical expedients in transition. The Company elected the package of practical expedients, which permits us to not reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. The Company also elected the use-of-hindsight and elected the practical expedient to not separate lease and non-lease components on our real estate leases where we are the lessee. The Company did not elect the practical expedient pertaining to land easement as it is not applicable to us. The new standard also provides practical expedients for an entity's ongoing accounting. The Company has elected the short-term lease recognition exemption for certain leases which are less than 12 months in duration or month-to-month. This means, for those leases that qualify, ROU assets or lease liabilities will not be recognized. The adoption of this ASU on January 1, 2019 created ROU assets of $4.8 million and operating lease liabilities of $5.0 million, and the related impact to the Company’s first quarter 2019 Consolidated Balance Sheet was approximately 0.3%. Additional disclosures required by the ASU have been included in “Note 7 - Leases.” |
Business Combination (Tables)
Business Combination (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combination [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Acquired Book Fair Value Amount November 15, 2018 Value Adjustments Recorded Assets Cash and cash equivalents $ 54,558 $ — $ 54,558 Securities available-for-sale 19,609 (54) 19,555 Loans receivable, net 361,596 (5,321) (1) 356,275 Premises and equipment, net 8,411 3,354 (2) 11,765 Other real estate owned 689 — 689 Deferred tax asset 4,097 (3,358) 739 Mortgage servicing rights 218 564 782 Core deposit intangible ("CDI") — 5,251 (3) 5,251 Other assets 25,231 18 25,249 Total assets acquired $ 474,409 $ 454 $ 474,863 Liabilities Deposits $ 357,863 $ (1,052) (4) $ 356,811 Borrowings 37,000 (282) 36,718 Other liabilities 9,286 63 9,349 Total liabilities assumed $ 404,149 $ (1,271) $ 402,878 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | At November 15, 2018 Purchase price of Anchor Fair value of FS Bancorp common stock at $46.54 (1) per share for 725,518 shares $ Cash paid Total purchase price Fair value of assets acquired: Cash and cash equivalents $ 54,558 Securities available-for-sale 19,555 Loans receivable, net 356,275 Premises and equipment 11,765 OREO 689 Deferred tax asset 739 Mortgage servicing rights 782 Intangible assets – CDI 5,251 Other assets 25,249 Total assets and identifiable intangible assets acquired $ 474,863 Fair value of liabilities assumed: Deposits $ 356,811 Borrowings 36,718 Other liabilities 9,349 Total liabilities assumed $ 402,878 Fair value of net assets and identifiable intangible assets acquired Bargain purchase gain $ |
Securities Available-for-sale (
Securities Available-for-sale (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and December 31, 2018: June 30, 2019 Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Values SECURITIES AVAILABLE-FOR-SALE U.S. agency securities $ 11,000 $ 63 $ — $ 11,063 Corporate securities 8,546 62 — 8,608 Municipal bonds 12,236 251 (5) 12,482 Mortgage-backed securities 44,602 207 (256) 44,553 U.S. Small Business Administration securities 19,235 352 (41) 19,546 Total securities available-for-sale $ 95,619 $ 935 $ (302) $ 96,252 December 31, 2018 Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Values SECURITIES AVAILABLE-FOR-SALE U.S. agency securities $ 16,052 $ 32 $ (197) $ 15,887 Corporate securities 7,074 — (209) 6,865 Municipal bonds 14,446 23 (275) 14,194 Mortgage-backed securities 45,827 83 (1,074) 44,836 U.S. Small Business Administration securities 15,690 — (267) 15,423 Total securities available-for-sale $ 99,089 $ 138 $ (2,022) $ 97,205 |
Schedule of Unrealized Loss on Investments | Investment securities that were in an unrealized loss position at June 30, 2019 and December 31, 2018 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, 2019 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 $ — $ — $ 2,998 $ — $ 2,998 $ — Corporate securities — — — — — — Municipal bonds — — 531 (5) 531 (5) Mortgage-backed securities 1,021 — 23,372 (256) 24,393 (256) U.S. Small Business Administration securities 2,932 (5) 2,620 (36) 5,552 (41) Total $ 3,953 $ (5) $ 29,521 $ (297) $ 33,474 $ (302) December 31, 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 $ 6,018 $ (25) $ 4,822 $ (172) $ 10,840 $ (197) Corporate securities 975 (25) 5,890 (184) 6,865 (209) Municipal bonds 2,098 (22) 8,787 (253) 10,885 (275) Mortgage-backed securities 6,266 (40) 32,537 (1,034) 38,803 (1,074) U.S. Small Business Administration securities 1,958 (11) 13,465 (256) 15,423 (267) Total $ 17,315 $ (123) $ 65,501 $ (1,899) $ 82,816 $ (2,022) |
Schedule of Available for Sale Securities by Contractual Maturity | The contractual maturities of securities available-for-sale at June 30, 2019 and December 31, 2018 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, 2019 December 31, 2018 Amortized Fair Amortized Fair Cost Value Cost Value U.S. agency securities Due after one year through five years $ 1,005 $ 1,037 $ 1,043 $ 1,040 Due after five years through ten years 4,997 5,026 10,011 9,941 Due after ten years 4,998 5,000 4,998 4,906 Subtotal 11,000 11,063 16,052 15,887 Corporate securities Due after one year or less 1,000 1,006 6,077 5,947 Due after one year through five years 7,546 7,602 997 918 Subtotal 8,546 8,608 7,074 6,865 Municipal bonds Due after one year through five years 2,659 2,663 2,659 2,570 Due after five years through ten years 2,003 2,092 2,610 2,592 Due after ten years 7,574 7,727 9,177 9,032 Subtotal 12,236 12,482 14,446 14,194 Mortgage-backed securities Federal National Mortgage Association (“FNMA”) 29,791 29,862 30,554 30,026 Federal Home Loan Mortgage Corporation (“FHLMC”) 7,461 7,368 10,301 9,961 Government National Mortgage Association (“GNMA”) 7,350 7,323 4,972 4,849 Subtotal 44,602 44,553 45,827 44,836 U.S. Small Business Administration securities Due after one year through five years 860 843 — — Due after five years through ten years 11,667 11,967 13,828 13,581 Due after ten years 6,708 6,736 1,862 1,842 Subtotal 19,235 19,546 15,690 15,423 Total $ 95,619 $ 96,252 $ 99,089 $ 97,205 |
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, 2019 and 2018 shown below: Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Gross Gross Gross Gross Proceeds Gains (Losses) Proceeds Gains (Losses) Securities available-for-sale $ 10,554 $ 91 $ (59) $ 10,554 $ 91 $ (59) 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 $ — |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance For Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The composition of the loan portfolio was as follows at June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 REAL ESTATE LOANS Commercial $ 206,834 $ 204,699 Construction and development 214,140 247,306 Home equity 36,860 40,258 One-to-four-family (excludes loans held for sale) 248,921 249,397 Multi-family 103,219 104,663 Total real estate loans 809,974 846,323 CONSUMER LOANS Indirect home improvement 188,336 167,793 Solar 44,508 44,433 Marine 66,064 57,822 Other consumer 4,875 5,425 Total consumer loans 303,783 275,473 COMMERCIAL BUSINESS LOANS Commercial and industrial 135,336 138,686 Warehouse lending 47,028 65,756 Total commercial business loans 182,364 204,442 Total loans receivable, gross 1,296,121 1,326,238 Allowance for loan losses (12,340) (12,349) Deferred costs and fees, net (2,940) (2,907) Premiums on purchased loans, net 1,278 1,537 Total loans receivable, net $ 1,282,119 $ 1,312,519 |
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, 2019 and 2018: At or For the Three Months Ended June 30, 2019 Commercial Real Estate Consumer Business Unallocated Total ALLOWANCE FOR LOAN LOSSES Beginning balance $ 5,785 $ 3,363 $ 2,730 $ (33) $ 11,845 Provision for loan losses (5) 196 419 300 910 Charge-offs — (217) (431) — (648) Recoveries — 233 — — 233 Net recoveries (charge-offs) — 16 (431) — (415) Ending balance $ 5,780 $ 3,575 $ 2,718 $ 267 $ 12,340 Period end amount allocated to: Loans individually evaluated for impairment $ — $ 156 $ — $ — $ 156 Loans collectively evaluated for impairment 5,780 3,419 2,718 267 12,184 Ending balance $ 5,780 $ 3,575 $ 2,718 $ 267 $ 12,340 LOANS RECEIVABLE Loans individually evaluated for impairment $ 322 $ 445 $ — $ — $ 767 Loans collectively evaluated for impairment 809,652 303,338 182,364 — 1,295,354 Ending balance $ 809,974 $ 303,783 $ 182,364 $ — $ 1,296,121 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, 2019 Commercial Real Estate Consumer Business Unallocated Total ALLOWANCE FOR LOAN LOSSES Beginning balance $ 5,761 $ 3,351 $ 3,191 $ 46 $ 12,349 Provision for loan losses 18 310 1,111 221 1,660 Charge-offs — (466) (1,584) — (2,050) Recoveries 1 380 — — 381 Net recoveries (charge-offs) 1 (86) (1,584) — (1,669) Ending balance $ 5,780 $ 3,575 $ 2,718 $ 267 $ 12,340 Period end amount allocated to: Loans individually evaluated for impairment $ — $ 156 $ — $ — $ 156 Loans collectively evaluated for impairment 5,780 3,419 2,718 267 12,184 Ending balance $ 5,780 $ 3,575 $ 2,718 $ 267 $ 12,340 LOANS RECEIVABLE Loans individually evaluated for impairment $ 322 $ 445 $ — $ — $ 767 Loans collectively evaluated for impairment 809,652 303,338 182,364 — 1,295,354 Ending balance $ 809,974 $ 303,783 $ 182,364 $ — $ 1,296,121 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 |
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, 2019 and December 31, 2018: June 30, 2019 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 $ — $ — $ — $ — $ 206,834 $ 206,834 $ — Construction and development — — — — 214,140 214,140 — Home equity 38 5 186 229 36,631 36,860 190 One-to-four-family 117 99 572 788 248,133 248,921 958 Multi-family — — — — 103,219 103,219 — Total real estate loans 155 104 758 1,017 808,957 809,974 1,148 CONSUMER LOANS Indirect home improvement 382 122 155 659 187,677 188,336 401 Solar 73 — — 73 44,435 44,508 33 Marine 65 — — 65 65,999 66,064 — Other consumer 12 28 14 54 4,821 4,875 11 Total consumer loans 532 150 169 851 302,932 303,783 445 COMMERCIAL BUSINESS LOANS Commercial and industrial — — — — 135,336 135,336 — Warehouse lending — — — — 47,028 47,028 — Total commercial business loans — — — — 182,364 182,364 — Total loans $ 687 $ 254 $ 927 $ 1,868 $ 1,294,253 $ 1,296,121 $ 1,593 December 31, 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 $ — $ — $ — $ — $ 204,699 $ 204,699 $ — Construction and development — — — — 247,306 247,306 — Home equity 158 40 229 427 39,831 40,258 229 One-to-four-family 1,274 164 1,358 2,796 246,601 249,397 1,552 Multi-family — — — — 104,663 104,663 — Total real estate loans 1,432 204 1,587 3,223 843,100 846,323 1,781 CONSUMER LOANS Indirect home improvement 438 196 113 747 167,046 167,793 367 Solar 62 43 41 146 44,287 44,433 41 Marine 50 — — 50 57,772 57,822 18 Other consumer 69 24 11 104 5,321 5,425 2 Total consumer loans 619 263 165 1,047 274,426 275,473 428 COMMERCIAL BUSINESS LOANS Commercial and industrial — 431 — 431 138,255 138,686 1,685 Warehouse lending — — — — 65,756 65,756 — Total commercial business loans — 431 — 431 204,011 204,442 1,685 Total loans $ 2,051 $ 898 $ 1,752 $ 4,701 $ 1,321,537 $ 1,326,238 $ 3,894 There were five other consumer loans and two other consumer loans 90 days or more past due and still accruing interest of $8,000 and $11,000 at June 30, 2019 and at December 31, 2018, respectively. |
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 loan losses has been provided and loans for which no allowance was provided at June 30, 2019 and December 31, 2018: June 30, 2019 Unpaid Principal Recorded Related Balance Investment Allowance WITH NO RELATED ALLOWANCE RECORDED Home equity $ 190 $ 190 $ — One-to-four-family 958 958 — Total real estate loans 1,148 1,148 — WITH RELATED ALLOWANCE RECORDED Consumer loans 445 445 156 445 445 156 Total $ 1,593 $ 1,593 $ 156 December 31, 2018 Unpaid Principal Recorded Related Balance Investment Allowance WITH NO RELATED ALLOWANCE RECORDED Home equity $ 229 $ 229 $ — WITH RELATED ALLOWANCE RECORDED One-to-four-family 1,552 1,552 125 Consumer loans 428 428 150 Commercial business loans 1,685 1,685 700 3,665 3,665 975 Total $ 3,894 $ 3,894 $ 975 The following tables present the average recorded investment in loans individually evaluated for impairment and the interest income recognized and received for the three and six months ended June 30, 2019 and 2018: At or For the Three Months Ended June 30, 2019 June 30, 2018 Average Recorded Interest Income Average Recorded Interest Income Investment Recognized Investment Recognized WITH NO RELATED ALLOWANCE RECORDED Home equity $ 190 $ — $ 148 $ 1 One-to-four-family 1,606 49 — — Total real estate loans 1,796 49 148 1 Commercial business loans 288 — — — 2,084 49 148 1 WITH RELATED ALLOWANCE RECORDED One-to-four-family — — 271 1 Consumer loans 442 7 292 6 442 7 563 7 Total $ 2,526 $ 56 $ 711 $ 8 At or For the Six Months Ended June 30, 2019 June 30, 2018 Average Recorded Interest Income Average Recorded Interest Income Investment Recognized Investment Recognized WITH NO RELATED ALLOWANCE RECORDED Home equity $ 267 $ — $ 182 $ 3 One-to-four-family 1,857 66 — — Total real estate loans 2,124 66 182 3 Commercial business loans 359 — — — 2,483 66 182 3 WITH AN ALLOWANCE RECORDED One-to-four-family — — 271 3 Consumer loans 451 17 276 11 Commercial business loans 1,152 7 — — 1,603 24 547 14 Total $ 4,086 $ 90 $ 729 $ 17 |
Financing Receivable Credit Quality Indicators | The following tables summarize risk rated loan balances by category at the dates indicated: June 30, 2019 Special Pass Watch Mention Substandard Doubtful Loss (1 - 5) (6) (7) (8) (9) (10) Total REAL ESTATE LOANS Commercial $ 204,267 $ 1,501 $ — $ 1,066 $ — $ — $ 206,834 Construction and development 208,294 5,846 — — — — 214,140 Home equity 36,635 — 35 190 — — 36,860 One-to-four-family 247,702 200 61 958 — — 248,921 Multi-family 102,025 1,194 — — — — 103,219 Total real estate loans 798,923 8,741 96 2,214 — — 809,974 CONSUMER LOANS Indirect home improvement 187,935 — — 401 — — 188,336 Solar 44,475 — — 33 — — 44,508 Marine 66,064 — — — — — 66,064 Other consumer 4,859 — 5 11 — — 4,875 Total consumer loans 303,333 — 5 445 — — 303,783 COMMERCIAL BUSINESS LOANS Commercial and industrial 123,752 7,663 120 3,801 — — 135,336 Warehouse lending 47,028 — — — — — 47,028 Total commercial business loans 170,780 7,663 120 3,801 — — 182,364 Total loans receivable, gross $ 1,273,036 $ 16,404 $ 221 $ 6,460 $ — $ — $ 1,296,121 December 31, 2018 Special Pass Watch Mention Substandard Doubtful Loss (1 - 5) (6) (7) (8) (9) (10) Total REAL ESTATE LOANS Commercial $ 203,557 $ 1,142 $ — $ — $ — $ — $ 204,699 Construction and development 244,577 2,729 — — — — 247,306 Home equity 39,846 — 183 229 — — 40,258 One-to-four-family 247,575 207 63 1,552 — — 249,397 Multi-family 103,447 1,216 — — — — 104,663 Total real estate loans 839,002 5,294 246 1,781 — — 846,323 CONSUMER LOANS Indirect home improvement 167,426 — — 367 — — 167,793 Solar 44,392 — — 41 — — 44,433 Marine 57,804 — — 18 — — 57,822 Other consumer 5,415 — 8 2 — — 5,425 Total consumer loans 275,037 — 8 428 — — 275,473 COMMERCIAL BUSINESS LOANS Commercial and industrial 124,089 8,813 — 5,784 — — 138,686 Warehouse lending 65,756 — — — — — 65,756 Total commercial business loans 189,845 8,813 — 5,784 — — 204,442 Total loans receivable, gross $ 1,303,884 $ 14,107 $ 254 $ 7,993 $ — $ — $ 1,326,238 |
Servicing Rights (Tables)
Servicing Rights (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Summary of servicing rights activity | The following tables summarizes servicing rights activity for the three and six months ended June 30, 2019 and 2018: At or For the Three Months Ended June 30, 2019 2018 Beginning balance $ 10,611 $ 7,515 Additions 1,215 1,381 Servicing rights amortized (853) (544) Impairment of servicing rights (124) — Ending balance $ 10,849 $ 8,352 At or For the Six Months Ended June 30, 2019 2018 Beginning balance $ 10,429 $ 6,795 Additions 2,059 2,519 Servicing rights amortized (1,492) (962) Impairment of servicing rights (147) — Ending balance $ 10,849 $ 8,352 |
Valuation assumptions used in determining the fair value of servicing rights | 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, 2019 and December 31, 2018: Level 3 Significant Weighted Fair Value Valuation Unobservable Average Weighted Average Instruments Techniques Inputs Range June 30, 2019 December 31, 2018 RECURRING Interest rate lock commitments with customers Quoted market prices Pull-through expectations 80% - 99% 94.9 % 95.2 % Individual forward sale commitments with investors Quoted market prices Pull-through expectations 80% - 99% 94.9 % 95.2 % NONRECURRING Impaired loans Fair value of underlying collateral Discount applied to the obtained appraisal 0% - 50% 9.8 % 25.0 % OREO Fair value of collateral Discount applied to the obtained appraisal 0% - 75% 35.8 % 71.1 % Servicing rights Industry sources Pre-payment speeds 0% - 50% 19.4 % 9.4 % |
Key economic assumptions and the sensitivity of the current fair value for single family mortgage servicing rights | Key economic assumptions and the sensitivity of the current fair value for single family MSR to immediate adverse changes in those assumptions at June 30, 2019 and December 31, 2018 were as follows: June 30, 2019 December 31, 2018 Aggregate portfolio principal balance $ 1,302,598 $ 1,186,858 Weighted average rate of note 4.3 % % At June 30, 2019 Base 0.5% Adverse Rate Change 1.0% Adverse Rate Change Conditional prepayment rate 19.4 % 27.4 % 35.6 % Fair value MSR $ 11,209 $ 9,001 $ 7,369 Percentage of MSR 0.9 % 0.7 % 0.6 % Discount rate 9.7 % 10.2 % 10.7 % Fair value MSR $ 11,209 $ 11,033 $ 10,863 Percentage of MSR 0.9 % 0.8 % 0.8 % At December 31, 2018 Base 0.5% Adverse Rate Change 1.0% Adverse Rate Change Conditional prepayment rate 8.8 % 11.6 % 17.7 % Fair value MSR $ 14,218 $ 12,723 $ 10,358 Percentage of MSR 1.2 % 1.1 % 0.9 % Discount rate 9.6 % 10.1 % 10.6 % Fair value MSR $ 14,218 $ 13,912 $ 13,617 Percentage of MSR 1.2 % 1.2 % 1.2 % |
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, At December 31, 2019 2018 Key assumptions: Weighted average discount rate 9.5 % 9.5 % Conditional prepayment rate (“CPR”) 19.4 % 9.4 % Weighted average life in years 4.8 7.7 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 Fair Value Notional Asset Liability Fallout adjusted interest rate lock commitments with customers $ 74,370 $ 1,047 $ — Mandatory and best effort forward commitments with investors 35,442 — — Forward TBA mortgage-backed securities 132,000 — 411 December 31, 2018 Fair Value Notional Asset Liability Fallout adjusted interest rate lock commitments with customers $ 29,432 $ 503 $ — Mandatory and best effort forward commitments with investors 24,776 — 34 Forward TBA mortgage-backed securities 51,500 — 540 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
LEASES | |
Summary of lease cost | The components of lease cost (included in occupancy expense) are as follows for the six months ended June 30, 2019: Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Lease cost: Operating lease cost $ 308 $ 616 Short-term lease cost 38 84 Total lease cost $ 346 $ 700 The following table provides supplemental information related to operating leases: At or For the Three Months Ended At or For the Six Months Ended June 30, 2019 June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ $ 676 Weighted average remaining lease term- operating leases years 5.7 years Weighted average discount rate- operating leases % 3.11 % |
Summary of maturities of operating lease liabilities | Maturities of operating lease liabilities at June 30, 2019 for future periods are as follows: Remainder of 2019 $ 631 2020 1,082 2021 947 2022 841 2023 482 Thereafter 1,282 Total lease payments 5,265 Less imputed interest (544) Total $ 4,721 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Other Real Estate Owned | The following table presents the activity related to OREO at or for the three and six months ended June 30, 2019 and 2018: At or For the Three Months Ended At or For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Beginning balance $ 167 $ — $ 689 $ — Additions 87 — 164 — Gross proceeds from sale of OREO — — (684) — Gain on sale of OREO — — 85 — Ending balance $ 254 $ — $ 254 $ — |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Deposit Liabilities | Deposits are summarized as follows at June 30, 2019 and December 31, 2018: June 30, December 31, 2019 (1)(2) 2018 (1)(2) Noninterest-bearing checking $ 268,113 $ 221,107 Interest-bearing checking 180,498 151,103 Savings 117,687 122,344 Money market 247,854 282,595 Certificates of deposit less than $100,000 (3) 251,280 243,193 Certificates of deposit of $100,000 through $250,000 177,718 154,095 Certificates of deposit of $250,000 and over (4) 79,959 86,357 Escrow accounts related to mortgages serviced 11,108 13,425 Total $ 1,334,217 $ 1,274,219 __________________________ (1) Includes $113.9 million of deposits at June 30, 2019 from the purchase of four retail bank branches from Bank of America, National Association on January 22, 2016 (“Branch Purchase”) and $120.0 million at December 31, 2018. (2) Includes $345.1 million and $321.1 million of deposits at June 30, 2019 and December 31, 2018, respectively, from the Anchor Acquisition. (3) Includes $114.6 million and $116.7 million of brokered deposits at June 30, 2019 and December 31, 2018, respectively. 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, 2019 for future periods ending are as follows: At June 30, 2019 Maturing in 2019 $ 183,730 Maturing in 2020 220,783 Maturing in 2021 57,153 Maturing in 2022 30,327 Maturing in 2023 9,745 Thereafter 7,219 Total $ 508,957 |
Schedule of Interest Expense by Deposit Category | Interest expense by deposit category for the three and six months ended June 30, 2019 and 2018 is as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Interest-bearing checking $ 386 $ 63 $ 582 $ 130 Savings and money market 741 393 1,504 712 Certificates of deposit 2,929 976 5,680 1,833 Total $ 4,056 $ 1,432 $ 7,766 $ 2,675 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and December 31, 2018: June 30, December 31, 2019 2018 COMMITMENTS TO EXTEND CREDIT REAL ESTATE LOANS Commercial $ 2,154 $ 5,836 Construction and development 70,506 76,889 One-to-four-family (includes locks for salable loans) 81,963 35,714 Home equity 43,049 41,204 Multi-family 510 515 Total real estate loans 198,182 160,158 CONSUMER LOANS 21,234 18,560 COMMERCIAL BUSINESS LOANS Commercial and industrial 75,304 72,880 Warehouse lending 45,472 44,243 Total commercial business loans 120,776 117,123 Total commitments to extend credit $ 340,192 $ 295,841 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 U.S. agency securities $ — $ 11,063 $ — $ 11,063 Corporate securities — 8,608 — 8,608 Municipal bonds — 12,482 — 12,482 Mortgage-backed securities — 44,553 — 44,553 U.S. Small Business Administration securities — 19,546 — 19,546 Total $ — $ 96,252 $ — $ 96,252 Securities Available-for-Sale Level 1 Level 2 Level 3 Total At December 31, 2018 U.S. agency securities $ — $ 15,887 $ — $ 15,887 Corporate securities — 6,865 — 6,865 Municipal bonds — 14,194 — 14,194 Mortgage-backed securities — 44,836 — 44,836 U.S. Small Business Administration securities — 15,423 — 15,423 Total $ — $ 97,205 $ — $ 97,205 |
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, 2019 $ — $ 66,508 $ — $ 66,508 December 31, 2018 $ — $ 51,195 $ — $ 51,195 |
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, 2019 $ — $ — $ 1,047 $ 1,047 December 31, 2018 $ — $ — $ 503 $ 503 |
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, 2019 $ — $ (411) — $ (411) December 31, 2018 $ — $ (540) $ (34) $ (574) |
Schedule of impaired loans and other real estate owned | The following tables present impaired loans, OREO, and servicing rights 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, 2019 $ — $ — $ 1,593 $ 1,593 December 31, 2018 $ — $ — $ 3,894 $ 3,894 OREO Level 1 Level 2 Level 3 Total June 30, 2019 $ — $ — $ 254 $ 254 December 31, 2018 $ — $ — $ 689 $ 689 Servicing Rights Level 1 Level 2 Level 3 Total June 30, 2019 $ — $ — $ 11,209 $ 11,209 December 31, 2018 $ — $ — $ 14,593 $ 14,593 |
Valuation assumptions | 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, 2019 and December 31, 2018: Level 3 Significant Weighted Fair Value Valuation Unobservable Average Weighted Average Instruments Techniques Inputs Range June 30, 2019 December 31, 2018 RECURRING Interest rate lock commitments with customers Quoted market prices Pull-through expectations 80% - 99% 94.9 % 95.2 % Individual forward sale commitments with investors Quoted market prices Pull-through expectations 80% - 99% 94.9 % 95.2 % NONRECURRING Impaired loans Fair value of underlying collateral Discount applied to the obtained appraisal 0% - 50% 9.8 % 25.0 % OREO Fair value of collateral Discount applied to the obtained appraisal 0% - 75% 35.8 % 71.1 % Servicing rights Industry sources Pre-payment speeds 0% - 50% 19.4 % 9.4 % |
Fair value reconciliation - Level 3 on recurring basis | The following tables 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, 2019 and 2018: 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 2019 Interest rate lock commitments with customers $ 686 $ 3,163 $ (2,802) $ 1,047 $ 361 Individual forward sale commitments with investors (96) (425) 521 — 96 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) 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 period 2019 Interest rate lock commitments with customers $ 503 $ 5,095 $ (4,551) $ 1,047 $ 544 Individual forward sale commitments with investors (34) (587) 621 — 34 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) |
Fair Value, by Balance Sheet Grouping | The following table provides estimated fair values of the Company’s financial instruments at June 30, 2019 and December 31, 2018, whether or not recognized at fair value on the Consolidated Balance Sheets: June 30, December 31, 2019 2018 Carrying Fair Carrying Fair Amount Value Amount Value Financial Assets Level 1 inputs: Cash and cash equivalents $ $ $ $ Certificates of deposit at other financial institutions Level 2 inputs: Securities available-for-sale, at fair value Loans held for sale, at fair value FHLB stock, at cost Accrued interest receivable Level 3 inputs: Loans receivable, gross Servicing rights, held at lower of cost or fair value Fair value interest rate locks with customers Financial Liabilities Level 2 inputs: Deposits Borrowings Subordinated note Accrued interest payable Paired off commitments with investors Individual forward sale commitments with investors Level 3 inputs: Individual forward sale commitments with investors |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Shares Under ESOP | Shares held by the ESOP at June 30, 2019 and 2018 were as follows (shown as actual): Balances Balances at June 30, 2019 at June 30, 2018 Allocated shares 176,809 153,049 Committed to be released shares 12,960 12,960 Unallocated shares 64,803 90,724 Total ESOP shares 254,572 256,733 Fair value of unallocated shares (in thousands) $ 3,241 $ 5,262 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and 2018: At or For the Three Months Ended June 30, At or For the Six Months Ended June 30, Numerator (in thousands): 2019 2018 2019 2018 Net income $ 4,463 $ 4,257 $ 9,655 $ 8,579 Dividends and undistributed earnings allocated to participating securities (29) — (62) — Net income available to common shareholders $ 4,434 $ 4,257 $ 9,593 $ 8,579 Denominator (shown as actual): Basic weighted average common shares outstanding 4,418,397 3,583,927 4,415,111 3,573,560 Dilutive shares 112,472 181,797 117,873 188,519 Diluted weighted average common shares outstanding 4,530,869 3,765,724 4,532,984 3,762,079 Basic earnings per share $ 1.00 $ 1.19 $ 2.17 $ 2.40 Diluted earnings per share $ 0.98 $ 1.13 $ 2.12 $ 2.28 Potentially dilutive weighted average share options that were not included in the computation of diluted earnings per share because to do so would be anti-dilutive 39,668 — 41,195 — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 awards during the six months ended June 30, 2019 (shown as actual): Weighted-Average Weighted- Remaining Average Contractual Term In Aggregate Shares Exercise Price Years Intrinsic Value Outstanding at January 1, 2019 290,104 $ 31.27 6.83 $ 4,940,803 Granted — — — — Less exercised 40,400 $ 16.89 — $ 1,289,224 Forfeited or expired — — — — Outstanding at June 30, 2019 249,704 $ 33.59 6.57 $ 5,236,646 Expected to vest, assuming a 0.31% annual forfeiture rate (1) 249,046 $ 33.53 6.57 $ 5,236,646 Exercisable at June 30, 2019 149,704 $ 16.89 4.86 $ 5,236,646 __________________________ (1) Forfeiture rate has been calculated and estimated to assume a forfeiture of 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, 2019 (shown as actual): Weighted-Average Grant-Date Fair Value Nonvested Shares Shares Per Share Nonvested at January 1, 2019 43,421 $ 41.22 Granted — — Less vested 18,421 $ 17.63 Forfeited or expired — — Nonvested at June 30, 2019 25,000 $ 58.60 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and December 31, 2018 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, 2019 Total risk-based capital (to risk-weighted assets) $ 197,531 14.73 % $ 107,314 8.00 % $ 140,850 10.50 % $ 134,143 10.00 % Tier 1 risk-based capital (to risk-weighted assets) $ 184,907 13.78 % $ 80,486 6.00 % $ 114,021 8.50 % $ 107,314 8.00 % Tier 1 leverage capital (to average assets) $ 184,907 11.38 % $ 64,979 4.00 % $ N/A N/A $ 81,224 5.00 % CET 1 capital (to risk-weighted assets) $ 184,907 13.78 % $ 60,364 4.50 % $ 93,900 7.00 % $ 87,193 6.50 % At December 31, 2018 Total risk-based capital (to risk-weighted assets) $ 188,472 13.52 % $ 111,493 8.00 % $ 137,694 9.88 % $ 139,366 10.00 % Tier 1 risk-based capital (to risk-weighted assets) $ 175,824 12.62 % $ 83,620 6.00 % $ 109,820 7.88 % $ 111,493 8.00 % Tier 1 leverage capital (to average assets) $ 175,824 10.67 % $ 65,884 4.00 % $ N/A N/A $ 82,355 5.00 % CET 1 capital (to risk-weighted assets) $ 175,824 12.62 % $ 62,715 4.50 % $ 88,846 6.38 % $ 90,588 6.50 % |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and 2018: At or For the Three Months Ended June 30, 2019 Home Lending Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 1,141 $ 16,393 $ 17,534 Provision for loan losses (2) (304) (606) (910) Noninterest income 3,511 2,572 6,083 Noninterest expense (3,944) (13,127) (17,071) Income before provision for income taxes 404 5,232 5,636 Provision for income taxes (86) (1,087) (1,173) Net income $ 318 $ 4,145 $ 4,463 Total average assets at period end $ 253,394 $ 1,374,290 $ 1,627,684 FTEs 116 316 432 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 Six Months Ended June 30, 2019 Home Lending Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 2,212 $ 33,011 $ 35,223 Provision for loan losses (2) (363) (1,297) (1,660) Noninterest income 5,930 4,708 10,638 Noninterest expense (7,248) (24,620) (31,868) Income before provision for income taxes 531 11,802 12,333 Provision for income taxes (115) (2,563) (2,678) Net income $ 416 $ 9,239 $ 9,655 Total average assets at period end $ 246,379 $ 1,374,929 $ 1,621,308 FTEs 116 316 432 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 period end $ 219,553 $ 830,419 $ 1,049,972 FTEs 117 219 336 ____________________________ (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. The allocated provision for loan losses is partially associated with the increase |
Goodwill And Other Intangible_2
Goodwill And Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 comprised solely of CDI for the year ended December 31, 2018, and the six months ended June 30, 2019. Other Intangible Assets Accumulated Gross CDI Amortization Net CDI Balance, December 31, 2017 $ 2,239 $ (922) $ 1,317 Additions as a result of the Anchor Acquisition (1) 5,251 — 5,251 Amortization — (351) (351) Balance, December 31, 2018 7,490 (1,273) 6,217 Amortization — (380) (380) Balance, June 30, 2019 $ 7,490 $ (1,653) $ 5,837 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Amortization expense for CDI is expected to be as follows at June 30, 2019: Remainder of 2019 380 2020 706 2021 691 2022 691 2023 691 Thereafter 2,678 Total $ 5,837 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019USD ($)segmentitemOffice | Jan. 01, 2019USD ($) | Jan. 22, 2016item | |
Schedule of Accounting Policies [Line Items] | |||
Number of bank branches | item | 4 | ||
Number of business segments | segment | 2 | ||
ROU assets | $ | $ 4,582 | ||
Operating lease liabilities | $ | $ 4,721 | ||
ASU No. 2016 | Restatement | |||
Schedule of Accounting Policies [Line Items] | |||
ROU assets | $ | $ 4,800 | ||
Operating lease liabilities | $ | $ 5,000 | ||
Impact on balance sheet (as a percent) | 0.30% | ||
Puget Sound [Member] | |||
Schedule of Accounting Policies [Line Items] | |||
Number of bank branches | item | 21 | ||
Number of administrative offices that accept deposits | Office | 1 | ||
Number of loan production offices | item | 8 | ||
Tri-Cities, Washington [Member] | |||
Schedule of Accounting Policies [Line Items] | |||
Number of loan production offices | item | 1 |
Business Combination - Narrativ
Business Combination - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Business Acquisition [Line Items] | ||
Acquisition related expenses | $ 1,224 | $ 1,598 |
Anchor Bancorp | ||
Business Acquisition [Line Items] | ||
Acquisition related expenses | $ 1,200 |
Business Combination - Estimate
Business Combination - Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 15, 2018 | Jun. 30, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Certificates of deposit | $ 508,957 | ||
Bank of America | |||
Business Acquisition [Line Items] | |||
Deposits | 113,900 | $ 120,000 | |
Anchor Bancorp | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 54,558 | ||
Securities available-for-sale | 19,555 | ||
Loans receivable, net | 356,275 | ||
Premises and equipment, net | 11,765 | ||
Other real estate owned ("OREO") | 689 | ||
Deferred tax asset | 739 | ||
Mortgage servicing rights | 782 | ||
Core deposit intangible | 5,251 | ||
Other assets | 25,249 | ||
Total assets acquired | 474,863 | ||
Deposits | 356,811 | $ 345,100 | $ 321,100 |
Borrowings | 36,718 | ||
Other liabilities | 9,349 | ||
Total liabilities assumed | $ 402,878 | ||
Pre-tax discount of time deposits to core deposits (as a percent) | 0.65% | ||
Certificates of deposit | $ 162,900 | ||
Share price | $ 46.54 | ||
Common stock outstanding | 725,518 | ||
Acquired Book Value | Anchor Bancorp | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 54,558 | ||
Securities available-for-sale | 19,609 | ||
Loans receivable, net | 361,596 | ||
Premises and equipment, net | 8,411 | ||
Other real estate owned ("OREO") | 689 | ||
Deferred tax asset | 4,097 | ||
Mortgage servicing rights | 218 | ||
Other assets | 25,231 | ||
Total assets acquired | 474,409 | ||
Deposits | 357,863 | ||
Borrowings | 37,000 | ||
Other liabilities | 9,286 | ||
Total liabilities assumed | 404,149 | ||
Fair Value Adjustments | Anchor Bancorp | |||
Business Acquisition [Line Items] | |||
Securities available-for-sale | (54) | ||
Loans receivable, net | (5,321) | ||
Premises and equipment, net | 3,354 | ||
Deferred tax asset | (3,358) | ||
Mortgage servicing rights | 564 | ||
Core deposit intangible | 5,251 | ||
Other assets | 18 | ||
Total assets acquired | 454 | ||
Deposits | (1,052) | ||
Borrowings | (282) | ||
Other liabilities | 63 | ||
Total liabilities assumed | (1,271) | ||
Carrying Amount | Anchor Bancorp | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 54,558 | ||
Securities available-for-sale | 19,555 | ||
Loans receivable, net | 356,275 | ||
Premises and equipment, net | 11,765 | ||
Other real estate owned ("OREO") | 689 | ||
Deferred tax asset | 739 | ||
Mortgage servicing rights | 782 | ||
Core deposit intangible | 5,251 | ||
Other assets | 25,249 | ||
Total assets acquired | 474,863 | ||
Deposits | 356,811 | ||
Borrowings | 36,718 | ||
Other liabilities | 9,349 | ||
Total liabilities assumed | $ 402,878 | ||
Interest Income [Member] | Anchor Bancorp | |||
Business Acquisition [Line Items] | |||
Estimated amortization period | 60 months | ||
Interest Expense [Member] | Anchor Bancorp | |||
Business Acquisition [Line Items] | |||
Estimated amortization period | 10 years |
Business Combination - Amount R
Business Combination - Amount Recognized for Assets Acquired and Liabilities Assumed (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 15, 2018 | Dec. 31, 2018 | Jun. 30, 2019 |
Bank of America | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||
Deposits | $ 120,000 | $ 113,900 | |
Anchor Bancorp | |||
Business Acquisition [Line Items] | |||
Fair value of FS Bancorp common stock at $46.54 (1) per share for 725,518 shares | $ 33,766 | ||
Cash paid | 30,805 | ||
Total purchase price | 64,571 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||
Cash and cash equivalents | 54,558 | ||
Securities available-for-sale | 19,555 | ||
Loans receivable, net | 356,275 | ||
Premises and equipment, net | 11,765 | ||
OREO | 689 | ||
Deferred tax asset | 739 | ||
Mortgage servicing rights | 782 | ||
Intangible assets - CDI | 5,251 | ||
Other assets | 25,249 | ||
Total assets and identifiable intangible assets acquired | 474,863 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||
Deposits | 356,811 | 321,100 | $ 345,100 |
Borrowings | 36,718 | ||
Other liabilities | 9,349 | ||
Total liabilities assumed | 402,878 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||
Total fair value of identifiable net assets | 71,985 | ||
Bargain purchase gain | $ (7,414) | $ (7,400) | |
Number of shares received | 0.291 | ||
Consideration received by anchor shareholder in cash for each share | $ 12.40 |
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, 2019 | Dec. 31, 2018 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost | $ 95,619 | $ 99,089 |
Unrealized gains | 935 | 138 |
Unrealized losses | (302) | (2,022) |
Securities available-for-sale, at fair value | 96,252 | 97,205 |
U.S. agency securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost | 11,000 | 16,052 |
Unrealized gains | 63 | 32 |
Unrealized losses | (197) | |
Securities available-for-sale, at fair value | 11,063 | 15,887 |
Corporate securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost | 8,546 | 7,074 |
Unrealized gains | 62 | 0 |
Unrealized losses | (209) | |
Securities available-for-sale, at fair value | 8,608 | 6,865 |
Municipal bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost | 12,236 | 14,446 |
Unrealized gains | 251 | 23 |
Unrealized losses | (5) | (275) |
Securities available-for-sale, at fair value | 12,482 | 14,194 |
Mortgage-backed securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost | 44,602 | 45,827 |
Unrealized gains | 207 | 83 |
Unrealized losses | (256) | (1,074) |
Securities available-for-sale, at fair value | 44,553 | 44,836 |
U.S. Small Business Administration securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost | 19,235 | 15,690 |
Unrealized gains | 352 | 0 |
Unrealized losses | (41) | (267) |
Securities available-for-sale, at fair value | $ 19,546 | $ 15,423 |
Securities Available-for-sale_2
Securities Available-for-sale - Narrative (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security | |
Investments, Debt and Equity Securities [Abstract] | ||
Investments with unrealized losses of less than one year | security | 2 | 14 |
Investments with unrealized losses of more than one year | security | 23 | 48 |
Number of securities pledged and held at FHLB | security | 8 | 11 |
Pledged securities for FHLB | $ 10,900,000 | $ 13,700,000 |
Public deposits | 10,500,000 | 19,900,000 |
Collateral requirement | 3,900,000 | 8,400,000 |
Other than temporary impairment losses, investments | $ 0 | $ 0 |
Securities Available-for-sale_3
Securities Available-for-sale - Investments with Unrealized Losses Policy (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value | ||
Unrealized loss position, Fair Value, Less than 12 Months | $ 3,953 | $ 17,315 |
Unrealized loss position, Fair Value, 12 Months or Longer | 29,521 | 65,501 |
Unrealized loss position, Fair Value | 33,474 | 82,816 |
Unrealized Losses | ||
Unrealized loss position, Unrealized losses, Less than 12 Months | (5) | (123) |
Unrealized loss position, Unrealized losses, 12 Months or Longer | (297) | (1,899) |
Unrealized losses | (302) | (2,022) |
U.S. agency securities | ||
Fair Value | ||
Unrealized loss position, Fair Value, Less than 12 Months | 0 | 6,018 |
Unrealized loss position, Fair Value, 12 Months or Longer | 2,998 | 4,822 |
Unrealized loss position, Fair Value | 2,998 | 10,840 |
Unrealized Losses | ||
Unrealized loss position, Unrealized losses, Less than 12 Months | 0 | (25) |
Unrealized loss position, Unrealized losses, 12 Months or Longer | 0 | (172) |
Unrealized losses | 0 | (197) |
Corporate securities | ||
Fair Value | ||
Unrealized loss position, Fair Value, Less than 12 Months | 0 | 975 |
Unrealized loss position, Fair Value, 12 Months or Longer | 0 | 5,890 |
Unrealized loss position, Fair Value | 0 | 6,865 |
Unrealized Losses | ||
Unrealized loss position, Unrealized losses, Less than 12 Months | 0 | (25) |
Unrealized loss position, Unrealized losses, 12 Months or Longer | 0 | (184) |
Unrealized losses | 0 | (209) |
Municipal bonds | ||
Fair Value | ||
Unrealized loss position, Fair Value, Less than 12 Months | 0 | 2,098 |
Unrealized loss position, Fair Value, 12 Months or Longer | 531 | 8,787 |
Unrealized loss position, Fair Value | 531 | 10,885 |
Unrealized Losses | ||
Unrealized loss position, Unrealized losses, Less than 12 Months | 0 | (22) |
Unrealized loss position, Unrealized losses, 12 Months or Longer | (5) | (253) |
Unrealized losses | (5) | (275) |
Mortgage-backed securities | ||
Fair Value | ||
Unrealized loss position, Fair Value, Less than 12 Months | 1,021 | 6,266 |
Unrealized loss position, Fair Value, 12 Months or Longer | 23,372 | 32,537 |
Unrealized loss position, Fair Value | 24,393 | 38,803 |
Unrealized Losses | ||
Unrealized loss position, Unrealized losses, Less than 12 Months | 0 | (40) |
Unrealized loss position, Unrealized losses, 12 Months or Longer | (256) | (1,034) |
Unrealized losses | (256) | (1,074) |
U.S. Small Business Administration securities | ||
Fair Value | ||
Unrealized loss position, Fair Value, Less than 12 Months | 2,932 | 1,958 |
Unrealized loss position, Fair Value, 12 Months or Longer | 2,620 | 13,465 |
Unrealized loss position, Fair Value | 5,552 | 15,423 |
Unrealized Losses | ||
Unrealized loss position, Unrealized losses, Less than 12 Months | (5) | (11) |
Unrealized loss position, Unrealized losses, 12 Months or Longer | (36) | (256) |
Unrealized losses | $ (41) | $ (267) |
Securities Available-for-sale_4
Securities Available-for-sale - Available for Sale Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Total | $ 95,619 | $ 99,089 |
Fair Value | ||
Total | 96,252 | 97,205 |
U.S. agency securities | ||
Amortized Cost | ||
Due after one year through five years | 1,005 | 1,043 |
Due after five years through ten years | 4,997 | 10,011 |
Due after ten years | 4,998 | 4,998 |
Subtotal | 11,000 | 16,052 |
Total | 11,000 | 16,052 |
Fair Value | ||
Due after one year through five years | 1,037 | 1,040 |
Due after five years through ten years | 5,026 | 9,941 |
Due after ten years | 5,000 | 4,906 |
Subtotal | 11,063 | 15,887 |
Total | 11,063 | 15,887 |
Corporate securities | ||
Amortized Cost | ||
Due in one year or less | 1,000 | 6,077 |
Due after one year through five years | 7,546 | 997 |
Subtotal | 8,546 | 7,074 |
Total | 8,546 | 7,074 |
Fair Value | ||
Due in one year or less | 1,006 | 5,947 |
Due after one year through five years | 7,602 | 918 |
Subtotal | 8,608 | 6,865 |
Total | 8,608 | 6,865 |
Municipal bonds | ||
Amortized Cost | ||
Due after one year through five years | 2,659 | 2,659 |
Due after five years through ten years | 2,003 | 2,610 |
Due after ten years | 7,574 | 9,177 |
Subtotal | 12,236 | 14,446 |
Total | 12,236 | 14,446 |
Fair Value | ||
Due after one year through five years | 2,663 | 2,570 |
Due after five years through ten years | 2,092 | 2,592 |
Due after ten years | 7,727 | 9,032 |
Subtotal | 12,482 | 14,194 |
Total | 12,482 | 14,194 |
Mortgage-backed securities | ||
Amortized Cost | ||
Mortgage-backed securities | 44,602 | 45,827 |
Total | 44,602 | 45,827 |
Fair Value | ||
Mortgage-backed securities | 44,553 | 44,836 |
Total | 44,553 | 44,836 |
Federal National Mortgage Association ("FNMA") | ||
Amortized Cost | ||
Mortgage-backed securities | 29,791 | 30,554 |
Fair Value | ||
Mortgage-backed securities | 29,862 | 30,026 |
Federal Home Loan Mortgage Corporation ("FHLMC") | ||
Amortized Cost | ||
Mortgage-backed securities | 7,461 | 10,301 |
Fair Value | ||
Mortgage-backed securities | 7,368 | 9,961 |
Government National Mortgage Association ("GNMA") | ||
Amortized Cost | ||
Mortgage-backed securities | 7,350 | 4,972 |
Fair Value | ||
Mortgage-backed securities | 7,323 | 4,849 |
U.S. Small Business Administration securities | ||
Amortized Cost | ||
Due after one year through five years | 860 | 0 |
Due after five years through ten years | 11,667 | 13,828 |
Due after ten years | 6,708 | 1,862 |
Subtotal | 19,235 | 15,690 |
Total | 19,235 | 15,690 |
Fair Value | ||
Due after one year through five years | 843 | 0 |
Due after five years through ten years | 11,967 | 13,581 |
Due after ten years | 6,736 | 1,842 |
Subtotal | 19,546 | 15,423 |
Total | $ 19,546 | $ 15,423 |
Securities Available-for-sale_5
Securities Available-for-sale - Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross Gains | $ 91 | $ 0 | $ 91 | $ 113 |
Gross (Losses) | 59 | 0 | 59 | 0 |
Proceeds | $ 10,554 | $ 0 | $ 10,554 | $ 5,305 |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance For Loan Losses - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 1,296,121 | $ 1,326,238 |
Allowance for loan losses | (12,340) | (12,349) |
Deferred costs and fees, net | (2,940) | (2,907) |
Premiums on purchased loans | 1,278 | 1,537 |
Loans receivable, net | 1,282,119 | 1,312,519 |
REAL ESTATE LOANS | REAL ESTATE LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 809,974 | 846,323 |
REAL ESTATE LOANS | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 206,834 | 204,699 |
REAL ESTATE LOANS | Construction and development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 214,140 | 247,306 |
REAL ESTATE LOANS | Home equity. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 36,860 | 40,258 |
REAL ESTATE LOANS | One-to-four-family (1) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 248,921 | 249,397 |
REAL ESTATE LOANS | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 103,219 | 104,663 |
Other Consumer | CONSUMER LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 303,783 | 275,473 |
Other Consumer | Indirect home improvement | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 188,336 | 167,793 |
Other Consumer | Solar | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 44,508 | 44,433 |
Other Consumer | Marine | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 66,064 | 57,822 |
Other Consumer | Consumer Loans Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,875 | 5,425 |
COMMERCIAL BUSINESS LOANS | COMMERCIAL BUSINESS LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 182,364 | 204,442 |
COMMERCIAL BUSINESS LOANS | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 135,336 | 138,686 |
COMMERCIAL BUSINESS LOANS | Warehouse lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 47,028 | $ 65,756 |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance For Loan Losses - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)divisionsegmentitem | Jun. 30, 2019USD ($)divisionsegmentitem | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loan portfolio segments | segment | 3 | 3 | |
Number of warehouse lending divisions | division | 2 | 2 | |
Loans that qualify as collateral for FHLB advances | $ 655.3 | $ 655.3 | $ 355.5 |
Loans that qualify as collateral for Federal Reserve Bank lines of credit | $ 295.7 | $ 295 | $ 265.2 |
Multi-family | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of units in real estate property | item | 5 | 5 |
Loans Receivable and Allowanc_5
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
ALLOWANCE FOR LOAN LOSSES | |||||
Beginning balance | $ 11,845 | $ 11,140 | $ 12,349 | $ 10,756 | |
Provision for loan loss | 910 | 450 | 1,660 | 800 | |
Charge-offs | (648) | (224) | (2,050) | (455) | |
Recoveries | 233 | 205 | 381 | 470 | |
Net recoveries (charge-offs) | (415) | (19) | (1,669) | 15 | |
Loans individually evaluated for impairment | 156 | 130 | 156 | 130 | |
Loans collectively evaluated for impairment | 12,184 | 11,441 | 12,184 | 11,441 | |
Ending balance | 12,340 | 11,571 | 12,340 | 11,571 | |
LOANS RECEIVABLE | |||||
Loans individually evaluated for impairment | 767 | 627 | 767 | 627 | |
Loans collectively evaluated for impairment | 1,295,354 | 893,153 | 1,295,354 | 893,153 | |
Total loans receivable | 1,296,121 | 893,780 | 1,296,121 | 893,780 | $ 1,326,238 |
REAL ESTATE LOANS. | |||||
ALLOWANCE FOR LOAN LOSSES | |||||
Beginning balance | 5,785 | 4,780 | 5,761 | 4,770 | |
Provision for loan loss | (5) | 330 | 18 | 343 | |
Charge-offs | 0 | (1) | (4) | ||
Recoveries | 0 | 16 | 1 | 16 | |
Net recoveries (charge-offs) | 0 | 15 | 1 | 12 | |
Loans individually evaluated for impairment | 0 | 21 | 0 | 21 | |
Loans collectively evaluated for impairment | 5,780 | 5,104 | 5,780 | 5,104 | |
Ending balance | 5,780 | 5,125 | 5,780 | 5,125 | |
LOANS RECEIVABLE | |||||
Loans individually evaluated for impairment | 322 | 317 | 322 | 317 | |
Loans collectively evaluated for impairment | 809,652 | 475,946 | 809,652 | 475,946 | |
Total loans receivable | 809,974 | 476,263 | 809,974 | 476,263 | 846,323 |
CONSUMER LOANS. | |||||
ALLOWANCE FOR LOAN LOSSES | |||||
Beginning balance | 3,363 | 2,934 | 3,351 | 2,814 | |
Provision for loan loss | 196 | 285 | 310 | 370 | |
Charge-offs | (217) | (223) | (466) | (451) | |
Recoveries | 233 | 188 | 380 | 451 | |
Net recoveries (charge-offs) | 16 | (35) | (86) | ||
Loans individually evaluated for impairment | 156 | 109 | 156 | 109 | |
Loans collectively evaluated for impairment | 3,419 | 3,075 | 3,419 | 3,075 | |
Ending balance | 3,575 | 3,184 | 3,575 | 3,184 | |
LOANS RECEIVABLE | |||||
Loans individually evaluated for impairment | 445 | 310 | 445 | 310 | |
Loans collectively evaluated for impairment | 303,338 | 239,564 | 303,338 | 239,564 | |
Total loans receivable | 303,783 | 239,874 | 303,783 | 239,874 | 275,473 |
COMMERCIAL BUSINESS LOANS. | |||||
ALLOWANCE FOR LOAN LOSSES | |||||
Beginning balance | 2,730 | 2,311 | 3,191 | 2,014 | |
Provision for loan loss | 419 | 255 | 1,111 | 550 | |
Charge-offs | (431) | (1,584) | |||
Recoveries | 0 | 1 | 3 | ||
Net recoveries (charge-offs) | (431) | 1 | (1,584) | 3 | |
Loans individually evaluated for impairment | 0 | 0 | |||
Loans collectively evaluated for impairment | 2,718 | 2,567 | 2,718 | 2,567 | |
Ending balance | 2,718 | 2,567 | 2,718 | 2,567 | |
LOANS RECEIVABLE | |||||
Loans individually evaluated for impairment | 0 | 0 | |||
Loans collectively evaluated for impairment | 182,364 | 177,643 | 182,364 | 177,643 | |
Total loans receivable | 182,364 | 177,643 | 182,364 | 177,643 | $ 204,442 |
Unallocated Financing Receivables [Member] | |||||
ALLOWANCE FOR LOAN LOSSES | |||||
Beginning balance | (33) | 1,115 | 46 | 1,158 | |
Provision for loan loss | 300 | (420) | 221 | (463) | |
Charge-offs | 0 | ||||
Recoveries | 0 | ||||
Net recoveries (charge-offs) | 0 | ||||
Loans individually evaluated for impairment | 0 | 0 | |||
Loans collectively evaluated for impairment | 267 | 695 | 267 | 695 | |
Ending balance | 267 | $ 695 | 267 | $ 695 | |
LOANS RECEIVABLE | |||||
Loans individually evaluated for impairment | 0 | 0 | |||
Loans collectively evaluated for impairment | 0 | 0 | |||
Total loans receivable | $ 0 | $ 0 |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance For Loan Losses - Aging Analysis of Past Due Loans) (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019USD ($)loan | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 1,868,000 | $ 4,701,000 | |
Current | 1,294,253,000 | 1,321,537,000 | |
Total loans receivable | 1,296,121,000 | 1,326,238,000 | $ 893,780,000 |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 206,834,000 | 204,699,000 | |
Total loans receivable | 206,834,000 | 204,699,000 | |
Construction and development | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 214,140,000 | 247,306,000 | |
Total loans receivable | 214,140,000 | 247,306,000 | |
Home equity. | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 229,000 | 427,000 | |
Current | 36,631,000 | 39,831,000 | |
Total loans receivable | 36,860,000 | 40,258,000 | |
One-to-four-family (1) | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 788,000 | 2,796,000 | |
Current | 248,133,000 | 246,601,000 | |
Total loans receivable | 248,921,000 | 249,397,000 | |
Multi-family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 103,219,000 | 104,663,000 | |
Total loans receivable | 103,219,000 | 104,663,000 | |
Total real estate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,017,000 | 3,223,000 | |
Current | 808,957,000 | 843,100,000 | |
Total loans receivable | 809,974,000 | 846,323,000 | |
Indirect home improvement | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 659,000 | 747,000 | |
Current | 187,677,000 | 167,046,000 | |
Total loans receivable | 188,336,000 | 167,793,000 | |
Solar | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 73,000 | 146,000 | |
Current | 44,435,000 | 44,287,000 | |
Total loans receivable | 44,508,000 | 44,433,000 | |
Other Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 54,000 | 104,000 | |
Current | 4,821,000 | 5,321,000 | |
Total loans receivable | 4,875,000 | 5,425,000 | |
CONSUMER LOANS. | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 851,000 | 1,047,000 | |
Current | 302,932,000 | 274,426,000 | |
Total loans receivable | 303,783,000 | 275,473,000 | 239,874,000 |
Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 431,000 | |
Current | 135,336,000 | 138,255,000 | |
Total loans receivable | 135,336,000 | 138,686,000 | |
Warehouse lending | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 47,028,000 | 65,756,000 | |
Total loans receivable | 47,028,000 | 65,756,000 | |
COMMERCIAL BUSINESS LOANS. | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 431,000 | |
Current | 182,364,000 | 204,011,000 | |
Total loans receivable | 182,364,000 | 204,442,000 | 177,643,000 |
REAL ESTATE LOANS. | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans receivable | 809,974,000 | 846,323,000 | $ 476,263,000 |
Marine | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 65,000 | 50,000 | |
Current | 65,999,000 | 57,772,000 | |
Total loans receivable | 66,064,000 | 57,822,000 | |
30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 687,000 | 2,051,000 | |
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 | 38,000 | 158,000 | |
30-59 Days Past Due | One-to-four-family (1) | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 117,000 | 1,274,000 | |
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 | Total real estate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 155,000 | 1,432,000 | |
30-59 Days Past Due | Indirect home improvement | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 382,000 | 438,000 | |
30-59 Days Past Due | Solar | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 73,000 | 62,000 | |
30-59 Days Past Due | Other Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 12,000 | 69,000 | |
30-59 Days Past Due | CONSUMER LOANS. | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 532,000 | 619,000 | |
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 | |
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 | Marine | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 65,000 | 50,000 | |
60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 254,000 | 898,000 | |
60-89 Days Past Due | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
60-89 Days Past Due | Construction and development | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
60-89 Days Past Due | Home equity. | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 5,000 | 40,000 | |
60-89 Days Past Due | One-to-four-family (1) | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 99,000 | 164,000 | |
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 | Total real estate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 104,000 | 204,000 | |
60-89 Days Past Due | Indirect home improvement | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 122,000 | 196,000 | |
60-89 Days Past Due | Solar | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 43,000 | |
60-89 Days Past Due | Other Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 28,000 | 24,000 | |
60-89 Days Past Due | CONSUMER LOANS. | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 150,000 | 263,000 | |
60-89 Days Past Due | Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 431,000 | |
60-89 Days Past Due | Warehouse lending | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
60-89 Days Past Due | COMMERCIAL BUSINESS LOANS. | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 431,000 | |
60-89 Days Past Due | Marine | |||
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 | 927,000 | 1,752,000 | |
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 | 186,000 | 229,000 | |
90 Days or More Past Due | One-to-four-family (1) | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 572,000 | 1,358,000 | |
90 Days or More Past Due | Multi-family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
90 Days or More Past Due | Total real estate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 758,000 | 1,587,000 | |
90 Days or More Past Due | Indirect home improvement | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 155,000 | 113,000 | |
90 Days or More Past Due | Solar | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 41,000 | |
90 Days or More Past Due | Other Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 14,000 | 11,000 | |
90 Days or More Past Due | CONSUMER LOANS. | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 169,000 | 165,000 | |
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 | |
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 | Marine | |||
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 | 1,593,000 | 3,894,000 | |
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 | 190,000 | 229,000 | |
Non-Accrual | One-to-four-family (1) | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 958,000 | 1,552,000 | |
Non-Accrual | Multi-family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Non-Accrual | Total real estate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,148,000 | 1,781,000 | |
Non-Accrual | Indirect home improvement | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 401,000 | 367,000 | |
Non-Accrual | Solar | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 33,000 | 41,000 | |
Non-Accrual | Other Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 11,000 | 2,000 | |
Non-Accrual | CONSUMER LOANS. | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 445,000 | 428,000 | |
Non-Accrual | Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 1,685,000 | |
Non-Accrual | Warehouse lending | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Non-Accrual | COMMERCIAL BUSINESS LOANS. | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 1,685,000 | |
Non-Accrual | Marine | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 18,000 | |
Other Consumer | 90 Days or More Past Due | Consumer Loans Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 8,000 | $ 11,000 | |
Number Of Loans Accruing Interest | 5 | 2 |
Loans Receivable and Allowanc_7
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Unpaid Principal Balance, with related allowance recorded | $ 445 | $ 445 | $ 3,665 | ||
Impaired Financing Receivable, Unpaid Principal Balance, Total | 1,593 | 1,593 | 3,894 | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Recorded Investment, with related allowance recorded | 445 | 445 | 3,665 | ||
Recorded Investment | 1,593 | 1,593 | 3,894 | ||
Impaired Financing Receivable Related Allowance Abstract | |||||
Related Allowance, with related allowance recorded | 156 | 156 | 975 | ||
Related Allowance | 156 | 156 | 975 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Average Recorded Investment, with no related allowance recorded | 2,084 | $ 148 | 2,483 | $ 182 | |
Average Recorded Investment, with related allowance recorded | 442 | 563 | 1,603 | 547 | |
Impaired Financing Receivable, Average Recorded Investment | 2,526 | 711 | 4,086 | 729 | |
Impaired Financing Receivable, Interest Income [Abstract] | |||||
Interest Income Recognized, with no related allowance recorded | 49 | 1 | 66 | 3 | |
Interest Income Recognized, with related allowance recorded | 7 | 7 | 24 | 14 | |
Interest Income Recognized | 56 | 8 | 90 | 17 | |
Home equity | |||||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Unpaid Principal Balance, with no related allowance recorded | 190 | 190 | 229 | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Recorded Investment, with no related allowance recorded | 190 | 190 | 229 | ||
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 | 190 | 148 | 267 | 182 | |
Impaired Financing Receivable, Interest Income [Abstract] | |||||
Interest Income Recognized, with no related allowance recorded | 0 | 1 | 3 | ||
One-to-four-family (1) | |||||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Unpaid Principal Balance, with no related allowance recorded | 958 | 958 | |||
Unpaid Principal Balance, with related allowance recorded | 1,552 | ||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Recorded Investment, with no related allowance recorded | 958 | 958 | |||
Recorded Investment, with related allowance recorded | 1,552 | ||||
Impaired Financing Receivable Related Allowance Abstract | |||||
Related Allowance, with no related allowance recorded | 0 | 0 | |||
Related Allowance, with related allowance recorded | 125 | ||||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Average Recorded Investment, with no related allowance recorded | 1,606 | 0 | 1,857 | ||
Average Recorded Investment, with related allowance recorded | 0 | 271 | 271 | ||
Impaired Financing Receivable, Interest Income [Abstract] | |||||
Interest Income Recognized, with no related allowance recorded | 49 | 0 | 66 | ||
Interest Income Recognized, with related allowance recorded | 0 | 1 | 3 | ||
CONSUMER LOANS. | |||||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Unpaid Principal Balance, with related allowance recorded | 445 | 445 | 428 | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Recorded Investment, with related allowance recorded | 445 | 445 | 428 | ||
Impaired Financing Receivable Related Allowance Abstract | |||||
Related Allowance, with related allowance recorded | 156 | 156 | 150 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Average Recorded Investment, with related allowance recorded | 442 | 292 | 451 | 276 | |
Impaired Financing Receivable, Interest Income [Abstract] | |||||
Interest Income Recognized, with related allowance recorded | 7 | 6 | 17 | 11 | |
COMMERCIAL BUSINESS LOANS. | |||||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Unpaid Principal Balance, with related allowance recorded | 1,685 | ||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Recorded Investment, with related allowance recorded | 1,685 | ||||
Impaired Financing Receivable Related Allowance Abstract | |||||
Related Allowance, with related allowance recorded | $ 700 | ||||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Average Recorded Investment, with no related allowance recorded | 288 | 0 | 359 | ||
Average Recorded Investment, with related allowance recorded | 1,152 | ||||
Impaired Financing Receivable, Interest Income [Abstract] | |||||
Interest Income Recognized, with no related allowance recorded | 0 | 0 | |||
Interest Income Recognized, with related allowance recorded | 7 | ||||
Total real estate loans | |||||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Unpaid Principal Balance, with no related allowance recorded | 1,148 | 1,148 | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Recorded Investment, with no related allowance recorded | 1,148 | 1,148 | |||
Impaired Financing Receivable Related Allowance Abstract | |||||
Related Allowance, with no related allowance recorded | 0 | 0 | |||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Average Recorded Investment, with no related allowance recorded | 1,796 | 148 | 2,124 | 182 | |
Impaired Financing Receivable, Interest Income [Abstract] | |||||
Interest Income Recognized, with no related allowance recorded | $ 49 | $ 1 | $ 66 | $ 3 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance For Loan Losses - Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 1,296,121 | $ 1,326,238 | $ 893,780 |
REAL ESTATE LOANS. | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 809,974 | 846,323 | 476,263 |
Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 206,834 | 204,699 | |
Construction and development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 214,140 | 247,306 | |
Home equity. | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 36,860 | 40,258 | |
One-to-four-family (1) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 248,921 | 249,397 | |
Multi-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 103,219 | 104,663 | |
CONSUMER LOANS. | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 303,783 | 275,473 | 239,874 |
Indirect home improvement | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 188,336 | 167,793 | |
Solar | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 44,508 | 44,433 | |
Marine | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 66,064 | 57,822 | |
Other Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 4,875 | 5,425 | |
COMMERCIAL BUSINESS LOANS. | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 182,364 | 204,442 | $ 177,643 |
Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 135,336 | 138,686 | |
Warehouse lending | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 47,028 | 65,756 | |
Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,273,036 | 1,303,884 | |
Pass | REAL ESTATE LOANS. | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 798,923 | 839,002 | |
Pass | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 204,267 | 203,557 | |
Pass | Construction and development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 208,294 | 244,577 | |
Pass | Home equity. | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 36,635 | 39,846 | |
Pass | One-to-four-family (1) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 247,702 | 247,575 | |
Pass | Multi-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 102,025 | 103,447 | |
Pass | CONSUMER LOANS. | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 303,333 | 275,037 | |
Pass | Indirect home improvement | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 187,935 | 167,426 | |
Pass | Solar | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 44,475 | 44,392 | |
Pass | Marine | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 66,064 | 57,804 | |
Pass | Other Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 4,859 | 5,415 | |
Pass | COMMERCIAL BUSINESS LOANS. | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 170,780 | 189,845 | |
Pass | Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 123,752 | 124,089 | |
Pass | Warehouse lending | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 47,028 | 65,756 | |
Watch | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 16,404 | 14,107 | |
Watch | REAL ESTATE LOANS. | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 8,741 | 5,294 | |
Watch | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,501 | 1,142 | |
Watch | Construction and development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 5,846 | 2,729 | |
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 | 200 | 207 | |
Watch | Multi-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,194 | 1,216 | |
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 | 7,663 | 8,813 | |
Watch | Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 7,663 | 8,813 | |
Watch | Warehouse lending | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 221 | 254 | |
Special Mention | REAL ESTATE LOANS. | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 96 | 246 | |
Special Mention | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Special Mention | Construction and development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Special Mention | Home equity. | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 35 | 183 | |
Special Mention | One-to-four-family (1) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 61 | 63 | |
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 | 5 | 8 | |
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 | 5 | 8 | |
Special Mention | COMMERCIAL BUSINESS LOANS. | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 120 | 0 | |
Special Mention | Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 120 | 0 | |
Special Mention | Warehouse lending | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 6,460 | 7,993 | |
Substandard | REAL ESTATE LOANS. | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2,214 | 1,781 | |
Substandard | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,066 | 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 | 190 | 229 | |
Substandard | One-to-four-family (1) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 958 | 1,552 | |
Substandard | Multi-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Substandard | CONSUMER LOANS. | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 445 | 428 | |
Substandard | Indirect home improvement | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 401 | 367 | |
Substandard | Solar | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 33 | 41 | |
Substandard | Marine | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 18 | |
Substandard | Other Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 11 | 2 | |
Substandard | COMMERCIAL BUSINESS LOANS. | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,801 | 5,784 | |
Substandard | Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,801 | 5,784 | |
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Contractually specified servicing fees, late fees, and other ancillary fees | $ 834,000 | $ 573,000 | $ 1,600,000 | $ 1,100,000 | |
Mortgage, commercial and consumer servicing rights | |||||
Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
The unpaid principal balances of mortgage loans serviced | 1,300,000,000 | 1,300,000,000 | $ 1,190,000,000 | ||
Mortgage servicing rights | |||||
Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Fair market value of servicing rights' assets | $ 11,200,000 | $ 11,200,000 | $ 14,600,000 |
Servicing Rights - Servicing Ri
Servicing Rights - Servicing Rights (Details) - Mortgage servicing rights - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | $ 10,611 | $ 7,515 | $ 10,429 | $ 6,795 |
Additions | 1,215 | 1,381 | 2,059 | 2,519 |
Servicing rights amortized | (853) | (544) | (1,492) | (962) |
Impairment on servicing rights | (124) | 0 | (147) | |
Ending balance | $ 10,849 | $ 8,352 | $ 10,849 | $ 8,352 |
Servicing Rights - Valuation As
Servicing Rights - Valuation Assumptions (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Weighted average discount rate | 9.50% | 9.50% |
Conditional prepayment rate ("CPR") | 19.40% | 9.40% |
Weighted average life in years | 4 years 9 months 18 days | 7 years 8 months 12 days |
Mortgage, commercial and consumer servicing rights | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Weighted average discount rate | 9.70% | 9.60% |
Conditional prepayment rate ("CPR") | 19.40% | 8.80% |
Servicing Rights - Changes in V
Servicing Rights - Changes in Valuation Assumptions (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
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 | 19.40% | 9.40% |
Discount rate | 9.50% | 9.50% |
Mortgage, commercial and consumer servicing rights | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Aggregate portfolio principal balance | $ 1,302,598 | $ 1,186,858 |
Weighted average rate of note | 4.30% | 4.30% |
Conditional prepayment rate | 19.40% | 8.80% |
Conditional prepayment rate, 0.5% Adverse Change | 27.40% | 11.60% |
Conditional prepayment rate, 1.0% Adverse Change | 35.60% | 17.70% |
Fair value MSR | $ 11,209 | $ 14,218 |
Fair value MSR, 0.5% Adverse Change | 9,001 | 12,723 |
Fair value of MSR, 1.0% Adverse Change | $ 7,369 | $ 10,358 |
Percentage of MSR | 0.90% | 1.20% |
Percentage of MSR, 0.5% Adverse Change | 0.70% | 1.10% |
Percentage of MSR, 1.0% Adverse Change | 0.60% | 0.90% |
Discount rate | 9.70% | 9.60% |
Discount rate, 0.5% Adverse Change | 10.20% | 10.10% |
Discount rate, 1.0% Adverse Change | 10.70% | 10.60% |
Fair value MSR, 0.5% Adverse Change | $ 11,033 | $ 13,912 |
Fair value MSR, 1.0% Adverse Change | $ 10,863 | $ 13,617 |
Percentage of MSR, 0.5% Adverse Change | 0.80% | 1.20% |
Percentage of MSR, 1.0% Adverse Change | 0.80% | 1.20% |
Derivatives (Details)
Derivatives (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | |||||
Margin collateral | $ 910,000 | $ 910,000 | $ 460,000 | ||
Derivative instruments, gain (loss) on sale of loans | (7,000) | $ 403,000 | 292,000 | $ 484,000 | |
Not Designated as Hedging Instrument | Fallout adjusted interest rate lock commitments with customers | |||||
Derivative [Line Items] | |||||
Notional | 74,370,000 | 74,370,000 | 29,432,000 | ||
Asset | 1,047,000 | 1,047,000 | 503,000 | ||
Liability | 0 | 0 | 0 | ||
Not Designated as Hedging Instrument | Mandatory and best effort forward commitments with investors | |||||
Derivative [Line Items] | |||||
Notional | 35,442,000 | 35,442,000 | 24,776,000 | ||
Asset | 0 | 0 | 0 | ||
Liability | 0 | 0 | 34,000 | ||
Not Designated as Hedging Instrument | Mortgage-backed securities | |||||
Derivative [Line Items] | |||||
Notional | 132,000,000 | 132,000,000 | 51,500,000 | ||
Asset | 0 | 0 | 0 | ||
Liability | $ 411,000 | $ 411,000 | $ 540,000 |
Leases (Details)
Leases (Details) $ in Millions | Jan. 01, 2019USD ($) | Jun. 30, 2019lease |
Lessee, Lease, Description [Line Items] | ||
Number of leases secured | lease | 2 | |
ROU assets obtained in exchange for operating lease obligations | $ | $ 5.2 | |
Options to extend | true | true |
Renewal term | 5 years | 5 years |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 5 months | 64 months |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 8 years | 65 months |
Leases - Components of lease co
Leases - Components of lease cost (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Lease cost: | ||
Operating lease cost | $ 308 | $ 616 |
Short-term lease cost | 38 | 84 |
Total lease cost | 346 | 700 |
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases | $ 334 | $ 676 |
Weighted average remaining lease term- operating leases | 5 years 8 months 12 days | 5 years 8 months 12 days |
Weighted average discount rate- operating leases | 3.11% | 3.11% |
Leases - Maturities of operatin
Leases - Maturities of operating lease liabilities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Maturities of operating lease liabilities | |
Remainder of 2019 | $ 631 |
2020 | 1,082 |
2021 | 947 |
2022 | 841 |
2023 | 482 |
Thereafter | 1,282 |
Total lease payments | 5,265 |
Less imputed interest | (544) |
Operating lease liabilities | $ 4,721 |
Other Real Estate Owned - Activ
Other Real Estate Owned - Activity related to OREO (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Real Estate [Roll Forward] | ||||
Beginning balance | $ 167 | $ 0 | $ 689 | $ 0 |
Capitalized costs | 87 | 0 | 164 | 0 |
Gross proceeds from sale of OREO | 0 | 0 | (684) | 0 |
Gain on sale of OREO | 0 | 0 | 85 | 0 |
Ending balance | $ 254 | $ 0 | $ 254 | $ 0 |
Other Real Estate Owned - Narra
Other Real Estate Owned - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Banking and Thrift [Abstract] | ||||
OREO Properties acquired | $ 254,000 | $ 0 | $ 254,000 | $ 0 |
Other real estate owned holding costs (recovery) | 7,000 | $ 0 | 11,000 | $ 0 |
Mortgage loans in process of foreclosure | $ 225,000 | $ 225,000 |
Deposits - Deposit Liabilities
Deposits - Deposit Liabilities (Details) $ in Thousands | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 15, 2018USD ($) | Jan. 22, 2016item |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Noninterest-bearing checking | $ 268,113 | $ 221,107 | ||
Interest-bearing checking | 180,498 | 151,103 | ||
Savings | 117,687 | 122,344 | ||
Money market (4) | 247,854 | 282,595 | ||
Certificates of deposit less than $100,000 | 251,280 | 243,193 | ||
Certificates of deposit of $100,000 through $250,000 | 177,718 | 154,095 | ||
Certificates of deposit of $250,000 and over | 79,959 | 86,357 | ||
Escrow accounts related to mortgages serviced | 11,108 | 13,425 | ||
Total deposits | 1,334,217 | 1,274,219 | ||
Interest-bearing Domestic Deposit, Brokered | 114,600 | 116,700 | ||
Federal Reserve Bank required deposit reserves | 0 | 17,400 | ||
Number of Bank Branches | item | 4 | |||
Anchor Bancorp | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Remaining Branch Purchase Deposits | 345,100 | 321,100 | $ 356,811 | |
Bank of America | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Remaining Branch Purchase Deposits | $ 113,900 | $ 120,000 |
Deposits - Maturities of Time D
Deposits - Maturities of Time Deposits for Future Periods (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Banking and Thrift [Abstract] | |
Maturing in 2019 | $ 183,730 |
Maturing in 2020 | 220,783 |
Maturing in 2021 | 57,153 |
Maturing in 2022 | 30,327 |
Maturing in 2023 | 9,745 |
Thereafter | 7,219 |
Total | $ 508,957 |
Deposits - Interest Expense by
Deposits - Interest Expense by Deposit Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Banking and Thrift [Abstract] | ||||
Interest-bearing checking | $ 386 | $ 63 | $ 582 | $ 130 |
Savings and money market | 741 | 393 | 1,504 | 712 |
Certificates of deposit | 2,929 | 976 | 5,680 | 1,833 |
Total | $ 4,056 | $ 1,432 | $ 7,766 | $ 2,675 |
Commitments and Contingencies -
Commitments and Contingencies - Commitment (Details) - Commitments to Extend Credit - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | $ 340,192 | $ 295,841 |
REAL ESTATE LOANS. | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 198,182 | 160,158 |
Commercial | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 2,154 | 5,836 |
Construction and development | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 70,506 | 76,889 |
One-to-four-family (1) | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 81,963 | 35,714 |
Home equity. | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 43,049 | 41,204 |
Commercial/Multi-family | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 510 | 515 |
Other Consumer | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 21,234 | 18,560 |
COMMERCIAL BUSINESS LOANS. | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 120,776 | 117,123 |
Commercial and industrial | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 75,304 | 72,880 |
Warehouse lending | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | $ 45,472 | $ 44,243 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) | 1 Months Ended | 6 Months Ended | |
Mar. 31, 2008shares | Jun. 30, 2019USD ($)action$ / shares | Dec. 31, 2018USD ($)$ / shares | |
Loss Contingencies [Line Items] | |||
Amount of loans sold to FHLB | $ 74,600,000 | ||
Federal Home Loan Bank, First Loss Account Established | 875,000 | ||
Bank recourse obligation | $ 680,000 | ||
Bank recourse obligation, percentage of loans outstanding | 0.89% | ||
Reserve as a percentage of outstanding CE | 10.00% | ||
Reserve for loans sold | $ 68,000 | ||
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 | $ 173.55 | $ 131.94 | |
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 | $ 285,000 | $ 299,000 | |
Guarantee on loans sold | |||
Loss Contingencies [Line Items] | |||
Reserve for estimated losses | $ 1,200,000 | $ 1,000,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Available for Sale Securities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | $ 96,252 | $ 97,205 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 96,252 | 97,205 |
Fair Value, Measurements, Recurring | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 11,063 | 15,887 |
Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 8,608 | 6,865 |
Fair Value, Measurements, Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 12,482 | 14,194 |
Fair Value, Measurements, Recurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 44,553 | 44,836 |
Fair Value, Measurements, Recurring | U.S. Small Business Administration securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 19,546 | 15,423 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Small Business Administration securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 96,252 | 97,205 |
Fair Value, Measurements, Recurring | Level 2 | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 11,063 | 15,887 |
Fair Value, Measurements, Recurring | Level 2 | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 8,608 | 6,865 |
Fair Value, Measurements, Recurring | Level 2 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 12,482 | 14,194 |
Fair Value, Measurements, Recurring | Level 2 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 44,553 | 44,836 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Small Business Administration securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 19,546 | 15,423 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 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 Instr_4
Fair Value of Financial Instruments - Mortgage loans held for sale (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale, at fair value | $ 66,508 | $ 51,195 |
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 | 66,508 | 51,195 |
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 Instr_5
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, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Lock Commitments with Customers | $ 1,047 | $ 503 |
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 | $ 1,047 | $ 503 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Forward Sale Commitments with Investors (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individual Forward Sale Commitments with Investors | $ (411) | $ (574) |
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 | (411) | (540) |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individual Forward Sale Commitments with Investors | $ 0 | $ (34) |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Impaired Loans and OREO (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OREO | $ 254 | $ 689 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 1,593 | 3,894 |
OREO | 254 | 689 |
Servicing Rights | 11,209 | 14,593 |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 1,593 | 3,894 |
OREO | 254 | 689 |
Servicing Rights | $ 11,209 | $ 14,593 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Discount Rate (Details) - item | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Measurements, Recurring | 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 | |
Fair Value, Measurements, Recurring | 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 | |
Fair Value, Measurements, Nonrecurring | 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:MeasurementInputPullThroughExpectationsMember | |
Fair Value, Measurements, Nonrecurring | Other Real Estate Owned | ||
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:FairValueOfCollateralMember | |
Fair Value, Measurements, Nonrecurring | Servicing rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input [Extensible List] | fsbw:PrepaymentSpeedsMember | |
Debt Securities, Available-for-sale, Valuation Technique [Extensible List] | fsbw:IndustrySourcesMember | |
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 | 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 | 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) | 0.949 | 0.952 |
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 | 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 | 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) | 0.949 | 0.952 |
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 | 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) | 0.50 | 0.50 |
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) | 0.098 | 0.250 |
Level 3 | Fair Value, Measurements, Nonrecurring | Other Real Estate Owned | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 0 | 0 |
Level 3 | Fair Value, Measurements, Nonrecurring | Other Real Estate Owned | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 0.75 | 0.75 |
Level 3 | Fair Value, Measurements, Nonrecurring | Other Real Estate Owned | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 0.358 | 0.711 |
Level 3 | Fair Value, Measurements, Nonrecurring | Servicing rights | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 0 | 0 |
Level 3 | Fair Value, Measurements, Nonrecurring | Servicing rights | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 0.50 | 0.50 |
Level 3 | Fair Value, Measurements, Nonrecurring | Servicing rights | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 0.194 | 0.094 |
Fair Value of Financial Instr_9
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fallout adjusted interest rate lock commitments with customers | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | $ 686 | $ 815 | $ 503 | $ 726 |
Purchases and Issuances | 3,163 | 3,140 | 5,095 | 5,575 |
Sales and Settlements | (2,802) | (2,817) | (4,551) | (5,163) |
Ending Balance | 1,047 | 1,138 | 1,047 | 1,138 |
Net change in fair value for gains/(losses) relating to items held at end of period | 361 | 323 | 544 | 412 |
Mandatory and best effort forward commitments with investors | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | (96) | 4 | (34) | 51 |
Purchases and Issuances | (425) | 84 | (587) | 656 |
Sales and Settlements | 521 | (106) | 621 | (725) |
Ending Balance | 0 | (18) | 0 | (18) |
Net change in fair value for gains/(losses) relating to items held at end of period | $ 96 | $ (22) | $ 34 | $ (69) |
Fair Value of Financial Inst_10
Fair Value of Financial Instruments - Fair Value By Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financial Assets | ||
Certificates of deposit at other financial institutions | $ 24,297 | $ 22,074 |
Securities available-for-sale, at fair value | 96,252 | 97,205 |
Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available-for-sale, at fair value | 96,252 | 97,205 |
Loans held for sale, at fair value | 66,508 | 51,195 |
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 |
Level 2 | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available-for-sale, at fair value | 96,252 | 97,205 |
Loans held for sale, at fair value | 66,508 | 51,195 |
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 |
Carrying Amount | Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 59,594 | 32,779 |
Certificates of deposit at other financial institutions | 24,297 | 22,074 |
Carrying Amount | Level 2 | ||
Financial Assets | ||
Securities available-for-sale, at fair value | 96,252 | 97,205 |
Loans held for sale, at fair value | 66,508 | 51,195 |
FHLB stock, at cost | 8,329 | 9,887 |
Accrued interest receivable | 5,779 | 5,761 |
Financial Liabilities | ||
Deposits | 1,334,217 | 1,274,219 |
Borrowings | 83,211 | 137,149 |
Subordinated note, net | 9,875 | 9,865 |
Accrued interest payable | 268 | 344 |
Paired off commitments with investors, liability | 518 | 64 |
Individual forward sale commitments with investors, financial liability | 411 | 540 |
Carrying Amount | Level 3 | ||
Financial Assets | ||
Loans receivable, gross | 1,296,121 | 1,326,238 |
Servicing rights, held at lower of cost or fair value | 10,849 | 10,429 |
Fair value interest rate locks with customers | 1,047 | 503 |
Financial Liabilities | ||
Individual forward sale commitments with investors, financial liability | 0 | 34 |
Fair Value | Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 59,594 | 32,779 |
Certificates of deposit at other financial institutions | 24,297 | 22,074 |
Fair Value | Level 2 | ||
Financial Assets | ||
Securities available-for-sale, at fair value | 96,252 | 97,205 |
Loans held for sale, at fair value | 66,508 | 51,195 |
FHLB stock, at cost | 8,329 | 9,887 |
Accrued interest receivable | 5,779 | 5,761 |
Financial Liabilities | ||
Deposits | 1,325,620 | 1,261,096 |
Borrowings | 83,707 | 136,873 |
Subordinated note, net | 10,242 | 10,242 |
Accrued interest payable | 268 | 344 |
Paired off commitments with investors, liability | 518 | 64 |
Individual forward sale commitments with investors, financial liability | 411 | 540 |
Fair Value | Level 3 | ||
Financial Assets | ||
Loans receivable, gross | 1,298,097 | 1,320,341 |
Servicing rights, held at lower of cost or fair value | 11,209 | 14,593 |
Fair value interest rate locks with customers | 1,047 | 503 |
Financial Liabilities | ||
Individual forward sale commitments with investors, financial liability | $ 0 | $ 34 |
Employee Benefits - Narrative (
Employee Benefits - Narrative (Details) - USD ($) | Jul. 09, 2012 | Jan. 02, 2012 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
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 | $ 269,000 | ||||||
Employee stock ownership plan (ESOP), interest payments from esop | $ 26,000 | ||||||
ESOP compensation expense for allocated shares | $ 327,000 | $ 393,000 | $ 647,000 | $ 752,000 |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Shares Under ESOP (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Employee Stock Ownership Plan (ESOP), Shares in ESOP [Abstract] | ||
Allocated shares | 176,809 | 153,049 |
Committed to be released shares | 12,960 | 12,960 |
Unallocated shares | 64,803 | 90,724 |
Total ESOP shares | 254,572 | 256,733 |
Fair value of unallocated shares (in thousands) | $ 3,241 | $ 5,262 |
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator (in thousands): | ||||
Net Income | $ 4,463 | $ 4,257 | $ 9,655 | $ 8,579 |
Dividends and undistributed earnings allocated to participating securities | (29) | (62) | ||
Net income available to common shareholders | $ 4,434 | $ 4,257 | $ 9,593 | $ 8,579 |
Denominator (shown as actual): | ||||
Basic weighted average common shares outstanding | 4,418,397 | 3,583,927 | 4,415,111 | 3,573,560 |
Dilutive shares (in shares) | 112,472 | 181,797 | 117,873 | 188,519 |
Diluted weighted average common shares outstanding | 4,530,869 | 3,765,724 | 4,532,984 | 3,762,079 |
Basic earnings per share (in dollars per share) | $ 1 | $ 1.19 | $ 2.17 | $ 2.40 |
Diluted earnings per share (in dollars per share) | $ 0.98 | $ 1.13 | $ 2.12 | $ 2.28 |
Potentially dilutive securities excluded from EPS | 39,668 | 41,195 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) | Aug. 15, 2018 | Jan. 01, 2016 | May 08, 2014 | Sep. 30, 2013 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | May 17, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award contractual life | 10 years | |||||||||
Restricted stock awards | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Total fair value of shares vested | $ 948,000 | $ 1,100,000 | ||||||||
2013 Equity Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation expense | $ 150,000 | $ 285,000 | ||||||||
Granted (in shares) | 0 | |||||||||
Shares available for grant | 6,013 | 6,013 | ||||||||
Stock option, fair value assumption, expected life | 6 years 9 months 29 days | |||||||||
Remaining weighted-average vesting period | 6 years 6 months 26 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) | $ 16.89 | |||||||||
Award vesting period | 5 years | |||||||||
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) | $ 26 | $ 16.89 | ||||||||
Unrecognized compensation cost, nonvested awards | $ 1,200,000 | $ 1,200,000 | ||||||||
Weighted-average vesting period | 4 years 1 month 6 days | |||||||||
2013 Equity Incentive Plan | Restricted stock awards | Director | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 3 years | |||||||||
2013 Equity Incentive Plan | Restricted stock awards | Employees | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 5 years | |||||||||
2018 Equity Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares available for grant | 387,000 | 387,000 | ||||||||
2018 Equity Incentive Plan | Equity option | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares | 100,000 | |||||||||
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 | |||||||||
Shares | 25,000 | |||||||||
2018 Equity Incentive Plan | Restricted stock awards | Directors And Employees | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 5 years | |||||||||
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 | |||||||||
Market price per share (in dollars per share) | $ 58.60 | |||||||||
2013 and 2018 Equity Incentive Plans | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation expense | $ 190,000 | $ 452,000 | ||||||||
2013 and 2018 Equity Incentive Plans | Equity option | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
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 | $ 1,100,000 | $ 1,100,000 | ||||||||
Remaining weighted-average vesting period | 4 years 1 month 6 days |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | |
Shares | ||||
Less exercised (in shares) | 37,800 | 17,433 | ||
Award contractual life | 10 years | |||
2013 Equity Incentive Plan | ||||
Shares | ||||
Outstanding, beginning balance (in shares) | 290,104 | |||
Granted, Shares | 0 | |||
Less exercised (in shares) | 40,400 | |||
Forfeited or Expired, Shares | 0 | |||
Outstanding, ending balance (in shares) | 249,704 | 249,704 | 290,104 | |
Expected to vest, assuming a 0.31% annual forfeiture rate (in shares) | 249,046 | 249,046 | ||
Exercisable (in shares) | 149,704 | 149,704 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expected Forfeiture Rate | 0.31% | |||
Expected forfeiture rate over contractual term | 3.10% | |||
Weighted-Average Exercise Price | ||||
Outstanding, beginning balance (in dollars per share) | $ 31.27 | |||
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) | $ 33.59 | 33.59 | $ 31.27 | |
Expected to vest, assuming a 0.31% annual forfeiture rate (in dollars per share) | 33.53 | 33.53 | ||
Exercisable (in dollars per share) | $ 16.89 | $ 16.89 | ||
Weighted-Average Remaining Contractual Term In Years | ||||
Outstanding, beginning balance | 6 years 9 months 29 days | |||
Outstanding, ending balance | 6 years 6 months 26 days | |||
Expected to vest, assuming a 0.31% annual forfeiture rate, Weighted Average Remaining Contractual Term | 6 years 6 months 26 days | |||
Exercisable | 4 years 10 months 10 days | |||
Aggregate Intrinsic Value | ||||
Beginning balance | $ 4,940,803 | |||
Granted | $ 0 | |||
Less exercised | $ 1,289,224 | |||
Forfeited or Expired, Aggregate Intrinsic Value | 0 | |||
Ending balance | $ 5,236,646 | 5,236,646 | $ 4,940,803 | |
Expected to vest, assuming a 0.31% annual forfeiture rate | 5,236,646 | 5,236,646 | ||
Exercisable | $ 5,236,646 | $ 5,236,646 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Awards (Details) - Restricted stock awards | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Shares | |
Nonvested, Beginning balance (in shares) | shares | 43,421 |
Granted (shares) | shares | 0 |
Less vested (in shares) | shares | 18,421 |
Forfeited or expired ( in shares) | shares | 0 |
Nonvested, Ending balance (in shares) | shares | 25,000 |
Weighted-Average Grant-Date Fair Value Per Share | |
Nonvested, Beginning balance (in dollars per share) | $ / shares | $ 41.22 |
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 | $ 58.60 |
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 | 4 years 1 month 6 days |
Regulatory Capital - Compliance
Regulatory Capital - Compliance with Regulatory Capital Requirements under Banking Regulations (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Total risk-based capital, Ratio | 14.40% | 15.20% | |
Tier 1 risk-based capital, Ratio | 13.50% | 13.90% | |
Tier 1 leverage capital, Ratio | 11.10% | 11.90% | |
CET 1 capital, Ratio | 13.50% | 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 | 6.70% | ||
Total risk-based capital, Amount | $ 197,531 | $ 188,472 | |
Total risk-based capital, Ratio | 14.73% | 13.52% | |
Total risk-based capital, For Capital Adequacy Purposes, Amount | $ 107,314 | $ 111,493 | |
Total risk-based capital, For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% | |
Total risk-based capital, For Capital Adequacy with Capital Buffer, Amount | $ 140,850 | $ 137,694 | |
Total risk-based capital, For Capital Adequacy with Capital Buffer, Ratio | 10.50% | 9.88% | |
Total risk-based capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 134,143 | $ 139,366 | |
Total risk-based capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% | |
Tier 1 risk-based capital, Amount | $ 184,907 | $ 175,824 | |
Tier 1 risk-based capital, Ratio | 13.78% | 12.62% | |
Tier 1 risk-based capital, For Capital Adequacy Purposes, Amount | $ 80,486 | $ 83,620 | |
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 | $ 114,021 | $ 109,820 | |
Tier 1 risk-based capital, For Capital Adequacy with Capital Buffer, Ratio | 8.50% | 7.88% | |
Tier 1 risk-based capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 107,314 | $ 111,493 | |
Tier 1 risk-based capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% | |
Tier 1 leverage capital | $ 184,907 | $ 175,824 | |
Tier 1 leverage capital, Ratio | 11.38% | 10.67% | |
Tier 1 leverage capital, For Capital Adequacy Purposes, Amount | $ 64,979 | $ 65,884 | |
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 | $ 81,224 | $ 82,355 | |
Tier 1 leverage capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% | |
CET 1 capital, Amount | $ 184,907 | $ 175,824 | |
CET 1 capital, Ratio | 13.78% | 12.62% | |
CET 1 capital, For Capital Adequacy Purposes, Amount | $ 60,364 | $ 62,715 | |
CET 1 capital, For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% | |
CET 1 capital, For Capital Adequacy with Capital Buffer, Amount | $ 93,900 | $ 88,846 | |
CET 1 capital, For Capital Adequacy with Capital Buffer, Ratio | 7.00% | 6.38% | |
CET 1 capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 87,193 | $ 90,588 | |
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, 2019USD ($)segmentitem | Dec. 31, 2018USD ($) | Jan. 22, 2016item | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | segment | 2 | ||
Number of bank branches | item | 4 | ||
Commercial and Consumer Banking | fsbw:CommercialAndConsumerBankingMember | ||
Total deposits | $ | $ 1,334,217 | $ 1,274,219 | |
Retail Deposit | Pacific Northwest | |||
Segment Reporting Information [Line Items] | |||
Number of bank branches | item | 21 | ||
Anchor Bancorp | |||
Segment Reporting Information [Line Items] | |||
Increase in loans | $ | $ 59,700 |
Business Segments - Segment Fin
Business Segments - Segment Financial Results (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019employee | Jun. 30, 2018employee | |
Segment Reporting Information [Line Items] | ||||||
Net interest income | $ 17,534 | $ 11,925 | $ 35,223 | $ 23,422 | ||
Provision for loan losses | (910) | (450) | (1,660) | (800) | ||
Noninterest income | 6,083 | 5,614 | 10,638 | 10,638 | ||
Noninterest expense | (17,071) | (12,144) | (31,868) | (23,179) | ||
INCOME BEFORE PROVISION FOR INCOME TAXES | 5,636 | 4,945 | 12,333 | 10,081 | ||
Provision for income taxes | (1,173) | (688) | (2,678) | (1,502) | ||
NET INCOME | 4,463 | 4,257 | 9,655 | 8,579 | ||
Total average assets at quarter end | $ 1,627,684 | $ 1,082,862 | $ 1,621,308 | $ 1,049,972 | ||
FTEs | 432 | 336 | 432 | 336 | 432 | 336 |
Home Lending | ||||||
Segment Reporting Information [Line Items] | ||||||
Net interest income | $ 1,141 | $ 764 | $ 2,212 | $ 1,479 | ||
Provision for loan losses | (304) | (149) | (363) | (145) | ||
Noninterest income | 3,511 | 4,447 | 5,930 | 8,213 | ||
Noninterest expense | (3,944) | (4,508) | (7,248) | (8,564) | ||
INCOME BEFORE PROVISION FOR INCOME TAXES | 404 | 554 | 531 | 983 | ||
Provision for income taxes | (86) | (78) | (115) | (146) | ||
NET INCOME | 318 | 476 | 416 | 837 | ||
Total average assets at quarter end | $ 253,394 | $ 222,687 | $ 246,379 | $ 219,553 | ||
FTEs | 116 | 117 | 116 | 117 | 116 | 117 |
Commercial and Consumer Banking | ||||||
Segment Reporting Information [Line Items] | ||||||
Net interest income | $ 16,393 | $ 11,161 | $ 33,011 | $ 21,943 | ||
Provision for loan losses | (606) | (301) | (1,297) | (655) | ||
Noninterest income | 2,572 | 1,167 | 4,708 | 2,425 | ||
Noninterest expense | (13,127) | (7,636) | (24,620) | (14,615) | ||
INCOME BEFORE PROVISION FOR INCOME TAXES | 5,232 | 4,391 | 11,802 | 9,098 | ||
Provision for income taxes | (1,087) | (610) | (2,563) | (1,356) | ||
NET INCOME | 4,145 | 3,781 | 9,239 | 7,742 | ||
Total average assets at quarter end | $ 1,374,290 | $ 860,175 | $ 1,374,929 | $ 830,419 | ||
FTEs | 316 | 219 | 316 | 219 | 316 | 219 |
Goodwill And Other Intangible_3
Goodwill And Other Intangible Assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
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 | 7,490,000 | 7,490,000 | 7,490,000 | $ 2,239,000 | ||
FiniteLivedIntangibleAssetsAccumulatedAmortization | (1,653,000) | (1,653,000) | (1,273,000) | (922,000) | ||
Amortization of Intangible Assets | 190,000 | $ 77,000 | 380,000 | $ 153,000 | 351,000 | |
Finite-Lived Intangible Assets, Net | 5,837,000 | 5,837,000 | 6,217,000 | 1,317,000 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Remainder of 2019 | 380,000 | 380,000 | ||||
2020 | 706,000 | 706,000 | ||||
2021 | 691,000 | 691,000 | ||||
2022 | 691,000 | 691,000 | ||||
2023 | 691,000 | 691,000 | ||||
Thereafter | 2,678,000 | 2,678,000 | ||||
Total | 5,837,000 | $ 5,837,000 | 6,217,000 | $ 1,317,000 | ||
Anchor Bancorp | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Finite-Lived Intangible Assets, Gross | 5,251,000 | |||||
Finite-Lived Intangible Assets, Net | 5,251,000 | |||||
Amortization period | 10 years | |||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Total | 5,251,000 | |||||
Bank of America | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 2,300,000 | $ 2,300,000 | $ 2,300,000 | |||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Amortization period | 9 years |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Not in scope noninterest income. | $ 5,300,000 | $ 5,200,000 | $ 9,200,000 | $ 9,900,000 |
Commercial and Consumer Banking | Deposit Fees [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 1,200,000 | 574,000 | 2,300,000 | 1,100,000 |
Commercial and Consumer Banking | Debit Card Interchange Fees [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 469,000 | 280,000 | 892,000 | 540,000 |
Commercial and Consumer Banking | Non Sufficient Funds Fees [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ 280,000 | $ 116,000 | $ 551,000 | $ 236,000 |