Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 09, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Sound Financial Bancorp, Inc. | |
Entity Central Index Key | 1,541,119 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 2,498,604 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 55,275 | $ 48,264 |
Available-for-sale securities, at fair value | 6,996 | 6,696 |
Loans held for sale | 2,424 | 2,091 |
Loans | 477,066 | 459,469 |
Allowance for loan losses | (4,859) | (4,636) |
Total loans, net | 472,207 | 454,833 |
Accrued interest receivable | 1,630 | 1,608 |
Bank-owned life insurance ("BOLI"), net | 11,998 | 11,746 |
Other real estate owned ("OREO") and repossessed assets, net | 884 | 769 |
Mortgage servicing rights, at fair value | 3,039 | 3,249 |
Federal Home Loan Bank ("FHLB") stock, at cost | 2,146 | 2,212 |
Premises and equipment, net | 5,274 | 5,335 |
Other assets | 4,333 | 3,957 |
Total assets | 566,206 | 540,760 |
Deposits | ||
Interest-bearing | 395,114 | 389,151 |
Noninterest-bearing demand | 68,369 | 50,873 |
Total deposits | 463,483 | 440,024 |
Borrowings | 37,453 | 40,435 |
Accrued interest payable | 62 | 72 |
Other liabilities | 5,859 | 5,140 |
Advance payments from borrowers for taxes and insurance | 1,032 | 569 |
Total liabilities | 507,889 | 486,240 |
COMMITMENTS AND CONTINGENCIES (NOTE 7) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.01 par value, 1,000,000 shares authorized, none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value, 40,000,000 shares authorized, 2,498,604 and 2,469,206 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively | 25 | 25 |
Additional paid-in capital | 23,520 | 23,002 |
Unearned shares - Employee Stock Ownership Plan ("ESOP") | (911) | (911) |
Retained earnings | 35,496 | 32,240 |
Accumulated other comprehensive income, net of tax | 187 | 164 |
Total stockholders' equity | 58,317 | 54,520 |
Total liabilities and stockholders' equity | $ 566,206 | $ 540,760 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 2,498,604 | 2,469,206 |
Common stock, shares outstanding (in shares) | 2,498,604 | 2,469,206 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
INTEREST INCOME | ||||
Loans, including fees | $ 6,050 | $ 5,537 | $ 18,053 | $ 16,222 |
Interest and dividends on investments, cash and cash equivalents | 98 | 39 | 279 | 141 |
Total interest income | 6,148 | 5,576 | 18,332 | 16,363 |
INTEREST EXPENSE | ||||
Deposits | 678 | 662 | 2,020 | 1,985 |
Borrowings | 52 | 23 | 136 | 70 |
Total interest expense | 730 | 685 | 2,156 | 2,055 |
Net interest income | 5,418 | 4,891 | 16,176 | 14,308 |
PROVISION FOR LOAN LOSSES | 0 | 100 | 250 | 400 |
Net interest income after provision for loan losses | 5,418 | 4,791 | 15,926 | 13,908 |
NONINTEREST INCOME | ||||
Service charges and fee income | 743 | 641 | 1,988 | 1,958 |
Earnings on cash surrender value of bank-owned life insurance | 84 | 85 | 252 | 253 |
Mortgage servicing income | 223 | 202 | 636 | 671 |
Fair value adjustment on mortgage servicing rights | 16 | (22) | (174) | 147 |
Loss on sale of securities | 0 | 0 | 0 | (31) |
Net gain on sale of loans | 477 | 360 | 1,028 | 1,146 |
Total noninterest income | 1,543 | 1,266 | 3,730 | 4,144 |
NONINTEREST EXPENSE | ||||
Salaries and benefits | 2,632 | 2,251 | 7,813 | 6,711 |
Operations | 1,181 | 1,064 | 3,237 | 3,021 |
Regulatory assessments | 124 | 180 | 404 | 476 |
Occupancy | 376 | 413 | 1,141 | 1,186 |
Data processing | 434 | 378 | 1,264 | 1,233 |
Net loss on OREO and repossessed assets | 3 | 96 | 9 | 178 |
Total noninterest expense | 4,750 | 4,382 | 13,868 | 12,805 |
Income before provision for income taxes | 2,211 | 1,675 | 5,788 | 5,247 |
Provision for income taxes | 757 | 560 | 1,974 | 1,677 |
Net income | $ 1,454 | $ 1,115 | $ 3,814 | $ 3,570 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.58 | $ 0.45 | $ 1.54 | $ 1.43 |
Diluted (in dollars per share) | $ 0.57 | $ 0.44 | $ 1.48 | $ 1.38 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 2,490,089 | 2,465,371 | 2,483,004 | 2,500,088 |
Diluted (in shares) | 2,568,457 | 2,552,229 | 2,556,949 | 2,585,736 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Consolidated Statements of Comprehensive Income (unaudited) [Abstract] | ||||
Net income | $ 1,454 | $ 1,115 | $ 3,814 | $ 3,570 |
Available for sale securities: | ||||
Unrealized gains (losses) arising during the period, net of tax provision (benefits) of $(19), $(10), $13 and $(19), respectively | (35) | (19) | 23 | (36) |
Reclassification adjustments for the net losses realized in earnings, net of tax benefit of $0, $0, $0 and $11 | 0 | 0 | 0 | 20 |
Other comprehensive income (loss), net of tax | (35) | (19) | 23 | (16) |
Comprehensive income | $ 1,419 | $ 1,096 | $ 3,837 | $ 3,554 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Available for sale securities: | ||||
Unrealized gains (losses) arising during the period, tax provision (benefits) | $ (19) | $ (10) | $ 13 | $ (19) |
Reclassification adjustments for the net losses realized in earnings, tax benefit | $ 0 | $ 0 | $ 0 | $ 11 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Unearned ESOP Shares [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income, Net of Tax [Member] | Total |
Balances at Dec. 31, 2014 | $ 25 | $ 23,552 | $ (1,140) | $ 28,024 | $ 183 | $ 50,644 |
Balances (in shares) at Dec. 31, 2014 | 2,524,645 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 3,570 | 3,570 | ||||
Other comprehensive income (loss), net of tax | (16) | (16) | ||||
Share-based compensation | 322 | 322 | ||||
Cash dividends paid on common stock | (426) | (426) | ||||
Restricted stock awards issued (in shares) | 10,208 | |||||
Restricted stock forfeited and retired common stock (in shares) | (8,981) | |||||
Common stock repurchased | (1,261) | (1,261) | ||||
Common Stock repurchased (in shares) | (63,371) | |||||
Exercise of options | 30 | 30 | ||||
Exercise of options (in shares) | 3,406 | |||||
Balances at Sep. 30, 2015 | $ 25 | 22,643 | (1,140) | 31,168 | 167 | 52,863 |
Balances (in shares) at Sep. 30, 2015 | 2,465,907 | |||||
Balances at Dec. 31, 2015 | $ 25 | 23,002 | (911) | 32,240 | 164 | $ 54,520 |
Balances (in shares) at Dec. 31, 2015 | 2,469,206 | 2,469,206 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 3,814 | $ 3,814 | ||||
Other comprehensive income (loss), net of tax | 23 | 23 | ||||
Share-based compensation | 354 | 354 | ||||
Cash dividends paid on common stock | (558) | (558) | ||||
Common Stock repurchase in conjunction with stock option exercise | 0 | |||||
Common Stock repurchase in conjunction with stock option exercise (in shares) | (2,805) | |||||
Restricted stock awards issued | 0 | |||||
Restricted stock awards issued (in shares) | 11,606 | |||||
Restricted stock forfeited and retired common stock (in shares) | (1,059) | |||||
Exercise of options | 164 | 164 | ||||
Exercise of options (in shares) | 21,656 | |||||
Balances at Sep. 30, 2016 | $ 25 | $ 23,520 | $ (911) | $ 35,496 | $ 187 | $ 58,317 |
Balances (in shares) at Sep. 30, 2016 | 2,498,604 | 2,498,604 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Stockholders' Equity (unaudited) (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Consolidated Statements of Stockholders' Equity (unaudited) [Abstract] | ||
Cash dividends paid on common stock ( in dollars per share) | $ 0.23 | $ 0.11 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 3,814 | $ 3,570 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Accretion of net discounts on investments | 32 | 96 |
Loss on sale of securities | 0 | 31 |
Provision for loan losses | 250 | 400 |
Depreciation and amortization | 593 | 515 |
Compensation expense related to stock options and restricted stock | 354 | 322 |
Net change to mortgage servicing rights | 210 | (198) |
Increase in cash surrender value of BOLI | (252) | (253) |
Gain on sale of loans | (1,028) | (1,146) |
Proceeds from sale of loans held for sale | 58,464 | 60,280 |
Originations of loans held-for-sale | (57,769) | (59,096) |
Net loss on sale and write-downs of OREO and repossessed assets | 3 | 95 |
Change in operating assets and liabilities: | ||
Accrued interest receivable | (22) | 44 |
Other assets | (330) | 926 |
Accrued interest payable | (10) | (15) |
Other liabilities | 719 | (1,075) |
Net cash from operating activities | 5,028 | 4,496 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from principal payments, maturities and sales of available for sale securities | 1,008 | 4,233 |
Purchases of available for sale securities | (1,363) | 0 |
FHLB stock redeemed | 66 | 666 |
Net increase in loans | (17,873) | (6,024) |
Proceeds from sale of OREO and other repossessed assets | 131 | 501 |
Purchases of premises and equipment, net | (532) | (540) |
Net cash used by investing activities | (18,563) | (1,164) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in deposits | 23,459 | 11,766 |
Proceeds from borrowings | 106,000 | 64,000 |
Repayment of borrowings | (108,982) | (70,482) |
Dividends paid on common stock | (558) | (426) |
Net change in advances from borrowers for taxes and insurance | 463 | 421 |
Proceeds from stock option exercises | 164 | 30 |
Repurchase of common stock | 0 | (1,261) |
Net cash from financing activities | 20,546 | 4,048 |
Net change in cash and cash equivalents | 7,011 | 7,380 |
Cash and cash equivalents, beginning of period | 48,264 | 29,289 |
Cash and cash equivalents, end of period | 55,275 | 36,669 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for income taxes | 2,290 | 2,325 |
Interest paid on deposits and borrowings | 2,166 | 2,070 |
Noncash net transfer from loans to OREO and repossessed assets | $ 249 | $ 450 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1 – Basis of Presentation The accompanying financial information is unaudited and has been prepared from the consolidated financial statements of Sound Financial Bancorp, Inc., and its wholly owned subsidiary, Sound Community Bank. References in this document to Sound Financial Bancorp refer to Sound Financial Bancorp, Inc. and its predecessor, Sound Financial, Inc., a federal corporation, and references to the “Bank” refer to Sound Community Bank. References to “we,” “us,” and “our” or the “Company” means Sound Financial Bancorp and its wholly-owned subsidiary, Sound Community Bank unless the context otherwise requires. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“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”). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. These unaudited financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, as filed with the SEC on March 30, 2016 (“2015 Form 10-K”). The results for the interim periods are not necessarily indicative of results for a full year. For further information, refer to the consolidated financial statements and footnotes for the year ended December 31, 2015, included in the 2015 Form 10-K. Certain amounts in the prior quarters’ consolidated financial statements have been reclassified to conform to the current presentation. These classifications do not have an impact on previously reported consolidated net income, retained earnings, stockholders’ equity or earnings per share. |
Accounting Pronouncements Recen
Accounting Pronouncements Recently Issued or Adopted | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Pronouncements Recently Issued or Adopted [Abstract] | |
Accounting Pronouncements Recently Issued or Adopted | Note 2 – Accounting Pronouncements Recently Issued or Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which creates Topic 606 and supersedes Topic 605, Revenue Recognition. In August 2015, FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606), which postponed the effective date of 2014-09. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net, which amended the principal versus agent implementation guidance set for in ASU 2014-09. Among other things, ASU 2016-08 clarifies that an entity should evaluate whether it is the principal or the agent for each specified good or service promised in a contract with a customer. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The ASU amends certain aspects of the guidance set forth in the FASB's new revenue standard related to identifying performance obligations and licensing implementation. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In general, the new ASU requires companies to use more judgment and make more estimates than under current guidance, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which provides clarifying guidance in certain narrow areas and adds some practical expedients, but does not change the core revenue recognition principle in Topic 606. This ASU is effective for for interim and annual periods beginning after December 15, 2017; early adoption is not permitted. For financial reporting purposes, the ASU allows for either full retrospective adoption, meaning this ASU is applied to all of the periods presented, or modified retrospective adoption, meaning the ASU is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the ASU is recognized at the date of initial application. The Company is currently evaluating the provisions to determine the potential impact the new standard will have on the Company's consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance is intended to improve the recognition and measurement of financial instruments. This ASU requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. In addition, the ASU requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes and requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. This ASU also eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. The ASU also requires a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. ASU No. 2016-01 is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for certain provisions. The Company is currently evaluating the impact of this ASU on the Company's consolidated financial statements In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842). ASU No. 2016-02 requires lessees to recognize, on the balance sheet, the assets and liabilities arising from operating leases. A lessee should recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. A lessee should include payments to be made in an optional period only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. For a finance lease, interest payments should be recognized separately from amortization of the right-of-use asset in the statement of comprehensive income. For operating leases, the lease cost should be allocated over the lease term on a generally straight-line basis. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in the ASU is permitted. The adoption of ASU 2016-02 is not expected to have a material impact on the Company's consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-06, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. A contract novation refers to replacing one of the parties to a derivative instrument with a new party. This ASU clarifies that a change in counterparty in a derivative instrument does not, in and of itself, require dedesignation of that hedging relationship and therefore discontinue the application of hedge accounting. ASU 2016-05 is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted in any interim or annual period. The adoption of ASU 2016-05 is not expected to have a material impact on the Company's consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. The ASU eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an adjustment must be made to the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The ASU is effective for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption of the update is permitted. The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC Topic 718, Compensation - Stock Compensation. The ASU includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The ASU is effective for annual and interim periods beginning after December 15, 2016. The adoption of ASU is being reviewed for any material impact there may be on the Company's consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU replaces the existing incurred loss impairment methodology that recognizes credit losses when a probable loss has been incurred with new methodology where loss estimates are based upon lifetime expected credit losses. The amendments in this ASU require a financial asset that is measured at amortized cost to be presented at the net amount expected to be collected. The income statement would then reflect the measurement of credit losses for newly recognized financial assets as well as changes to the expected credit losses that have taken place during the reporting period. The measurement of expected credit losses will be based on historical information, current conditions, and reasonable and supportable forecasts that impact the collectability of the reported amount. Available-for-sale securities will bifurcate the fair value mark and establish an allowance for credit losses through the income statement for the credit portion of that mark. The interest portion will continue to be recognized through accumulated other comprehensive income or loss. The change in allowance recognized as a result of adoption will occur through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the ASU is adopted. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019 with early adoption permitted after December 15, 2018. The Company is currently evaluating the impact of this ASU on the Company's consolidated financial statements. In August 2016, FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU addresses the appropriate classification of eight specific cash flow issues on the cash flow statement. Debt prepayment costs should be classified as an outflow for financing activities. Settlement of zero-coupon debt instruments divides the interest portion as an outflow for operating activities and the principal portion as an outflow for financing activities. Contingent consideration payments made after a business combination should be classified as outflows for financing and operating activities. Proceeds from the settlement of bank-owned life insurance policies should be classified as inflows from investing activities. Other specific areas are identified in the ASU as to the appropriate classification of the cash inflows or outflows. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted and must be applied using a retrospective transition method to each period presented. The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2016 | |
Investments [Abstract] | |
Investments | Note 3 – Investments The amortized cost and fair value of our available-for-sale (“AFS”) securities and the corresponding amounts of gross unrealized gains and losses at the dates indicated were as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value September 30, 2016 Municipal bonds $ 3,267 $ 235 $ (1 ) $ 3,501 Agency mortgage-backed securities 3,074 80 (14 ) 3,140 Non-agency mortgage-backed securities 372 - (17 ) 355 Total $ 6,713 $ 315 $ (32 ) $ 6,996 December 31, 2015 Municipal bonds $ 1,912 $ 184 $ - $ 2,096 Agency mortgage-backed securities 4,088 102 (18 ) 4,172 Non-agency mortgage-backed securities 449 - (21 ) 428 Total $ 6,449 $ 286 $ (39 ) $ 6,696 The amortized cost and fair value of AFS securities at September 30, 2016, by contractual maturity, are shown below (in thousands). Expected maturities of AFS securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. At September 30, 2016 Amortized Cost Fair Value Due within five years $ 1,111 $ 1,111 Due in five to ten years 504 529 Due after ten years 5,098 5,356 Total $ 6,713 $ 6,996 No securities were pledged to secure Washington State Public Funds as of September 30, 2016 and December 31, 2015 . There were no sales of AFS securities during the three or nine months ended September 30, 2016. There were no sales of AFS securities during the three months ended September 30, 2015. We sold $1.7 million of non-agency mortgage-backed securities generating gross losses of $31,000 and no gross gains during the nine months ended September 30, 2015. The following tables summarize at the dates indicated the aggregate fair value and gross unrealized loss by length of time of those investments that have been continuously in an unrealized loss position (in thousands): September 30, 2016 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ 890 $ (1 ) $ - $ - $ 890 $ (1 ) Agency mortgage-backed securities $ 1,169 $ (14 ) $ - $ - $ 1,169 $ (14 ) Non-agency mortgage-backed securities $ - $ - $ 355 $ (17 ) $ 355 $ (17 ) Total $ 2,059 $ (15 ) $ 355 $ (17 ) $ 2,414 $ (32 ) December 31, 2015 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Agency mortgage-backed securities $ - $ - $ 1,370 $ (18 ) $ 1,370 $ (18 ) Non-agency mortgage-backed securities - - 428 (21 ) 428 (21 ) Total $ $ $ 1,798 $ (39 ) $ 1,798 $ (39 ) The following table presents the cumulative roll forward of credit losses recognized in earnings during the three and nine months ended September 30, 2016 and 2015 relating to the Company’s non-U.S. agency mortgage-backed securities (in thousands): Three Months Ended September 30, Nine months Ended September 30, 2016 2015 2016 2015 Estimated credit losses, beginning balance $ - $ - $ - $ 450 Additions for credit losses not previously recognized - - - - Reduction for increases in cash flows - - - - Reduction of related OTTI due to sales - - - (450 ) Reduction for realized losses - - - - Estimated credit losses, ending balance $ - $ - $ - $ - |
Loans
Loans | 9 Months Ended |
Sep. 30, 2016 | |
Loans [Abstract] | |
Loans | Note 4 – Loans The composition of the loan portfolio at the dates indicated, excluding loans held for sale, was as follows (in thousands): At September 30, 2016 At December 31, 2015 Real estate loans: One- to four- family $ 151,992 $ 141,125 Home equity 30,297 31,573 Commercial and multifamily 170,258 175,312 Construction and land 58,902 57,043 Total real estate loans $ 411,449 $ 405,053 Consumer loans: Manufactured homes 15,525 13,798 Other consumer 25,570 23,030 Total consumer loans 41,095 36,828 Commercial business loans 26,439 19,295 Total loans 478,983 461,176 Deferred fees (1,917 ) (1,707 ) Total loans, gross 477,066 459,469 Allowance for loan losses (4,859 ) (4,636 ) Total loans, net $ 472,207 $ 454,833 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2016 (in thousands): One- to four- family Home equity Commercial and multifamily Construction and land Manufactured homes Other consumer Commercial business Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ 629 $ 97 $ 389 $ 23 $ 53 $ 23 $ 30 $ - $ 1,244 Collectively evaluated for impairment $ 1,029 $ 327 $ 971 $ 350 $ 124 $ 175 $ 151 $ 488 $ 3,615 Ending balance $ 1,658 $ 424 $ 1,360 $ 373 $ 177 $ 198 $ 181 $ 488 $ 4,859 Loans receivable: Individually evaluated for impairment $ 5,278 $ 885 $ 3,869 $ 85 $ 372 $ 23 $ 633 $ - $ 11,145 Collectively evaluated for impairment $ 146,714 $ 29,412 $ 166,389 $ 58,817 $ 15,153 $ 25,547 $ 25,806 $ - $ 467,838 Ending balance $ 151,992 $ 30,297 $ 170,258 $ 58,902 $ 15,525 $ 25,570 $ 26,439 $ - $ 478,983 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2015 (in thousands): One-to- four family Home equity Commercial and multifamily Construction and land Manufactured homes Other consumer Commercial business Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ 647 $ 110 $ 36 $ 18 $ 63 $ - $ 8 $ - $ 882 Collectively evaluated for impairment 1,192 497 885 364 238 188 149 241 3,754 Ending balance $ 1,839 $ 607 $ 921 $ 382 $ 301 $ 188 $ 157 $ 241 $ 4,636 Loans receivable: Individually evaluated for impairment $ 5,779 $ 904 $ 1,966 $ 91 $ 361 $ 5 $ 114 $ - $ 9,220 Collectively evaluated for impairment 135,346 30,669 173,346 56,952 13,437 23,025 19,181 - 451,956 Ending balance $ 141,125 $ 31,573 $ 175,312 $ 57,043 $ 13,798 $ 23,030 $ 19,295 $ - $ 461,176 The following table summarizes the activity in the allowance for loan losses for the three months ended September 30, 2016 (in thousands): Beginning Allowance Charge-offs Recoveries Provision Ending Allowance One-to four- family $ 1,713 $ - $ - $ (55 ) $ 1,658 Home equity 501 (14 ) 10 (73 ) 424 Commercial and multifamily 1,377 - - (17 ) 1,360 Construction and land 388 - 18 (33 ) 373 Manufactured homes 189 - 2 (14 ) 177 Other consumer 221 (10 ) 15 (28 ) 198 Commercial business 171 - - 10 181 Unallocated 278 - - 210 488 Total $ 4,838 $ (24 ) $ 45 $ 0 $ 4,859 The following table summarizes the activity in the allowance for loan losses for the nine months ended September 30, 2016 (in thousands): Beginning Allowance Charge-offs Recoveries Provision Ending Allowance One-to four- family $ 1,839 $ (72 ) $ - $ (109 ) $ 1,658 Home equity 607 (14 ) - (169 ) 424 Commercial and multifamily 921 - - 439 1,360 Construction and land 382 - 18 (27 ) 373 Manufactured homes 301 - 75 (199 ) 177 Other consumer 188 (31 ) 7 34 198 Commercial business 157 (29 ) 19 34 181 Unallocated 241 - - 247 488 Total $ 4,636 $ (146 ) $ 119 $ 250 $ 4,859 The following table summarizes the activity in the allowance for loan losses for the three months ended September 30, 2015 (in thousands): Beginning Allowance Charge-offs Recoveries Provision Ending Allowance One-to four- family $ 1,594 $ - $ - $ 174 $ 1,768 Home equity 509 - 25 (15 ) 519 Commercial and multifamily 1,507 - - (166 ) 1,341 Construction and land 345 - 1 (229 ) 117 Manufactured homes 193 - - (1 ) 192 Other consumer 183 (18 ) 2 2 169 Commercial business 145 - - (11 ) 134 Unallocated 96 - - 346 442 Total $ 4,572 $ (18 ) $ 28 $ 100 $ 4,682 The following table summarizes the activity in the allowance for loan losses for the nine months ended September 30, 2015 (in thousands): Beginning Allowance Charge-offs Recoveries Provision Ending Allowance One-to four- family $ 1,442 $ (21 ) $ - $ 347 $ 1,768 Home equity 601 (19 ) 35 (98 ) 519 Commercial and multifamily 1,244 - - 97 1,341 Construction and land 399 (40 ) 1 (242 ) 117 Manufactured homes 193 (32 ) 5 24 192 Other consumer 167 (45 ) 11 37 169 Commercial business 108 - - 26 134 Unallocated 233 - - 209 442 Total $ 4,387 $ (157 ) $ 52 $ 400 $ 4,682 Credit Quality Indicators. When we classify problem loans as either substandard or doubtful, we may establish a specific allowance in an amount we deem prudent to address the risk specifically (if the loan is impaired) or we may allow the loss to be addressed in the general allowance (if the loan is not impaired). General allowances represent loss reserves which have been established to recognize the inherent risk associated with lending activities, but which, unlike specific allowances, have not been specifically allocated to particular problem loans. When the Company classifies problem loans as a loss, we charge off such assets in the period in which they are deemed uncollectible. Assets that do not currently expose us to sufficient risk to warrant classification as substandard, doubtful or loss but possess identified weaknesses are classified as either watch or special mention assets. Our determination as to the classification of our assets and the amount of our valuation allowances is subject to review by the Federal Deposit Insurance Corporation (“FDIC”), the Bank’s federal regulatory, and the Washington Department of Financial Institutions, the Bank’s state banking regulator, which can order the establishment of additional loss allowances. Pass rated loans are loans that are not otherwise classified or criticized. The following table represents the internally assigned grades as of September 30, 2016 by type of loan (in thousands): One- to four- family Home equity Commercial and multifamily Construction and land Manufactured homes Other consumer Commercial business Total Grade: Pass $ 148,008 $ 29,106 $ 164,970 $ 58,057 $ 15,277 $ 25,496 $ 26,037 $ 466,951 Watch 1,167 537 1,943 845 77 51 22 4,642 Special Mention 1,408 - - - 31 - - 1,439 Substandard 1,409 654 3,345 - 140 23 380 5,951 Doubtful - - - - - - - - Loss - - - - - - - - Total $ 151,992 $ 30,297 $ 170,258 $ 58,902 $ 15,525 $ 25,570 $ 26,439 $ 478,983 The following table represents the internally assigned grades as of December 31, 2015 by type of loan (in thousands): One- to four- family Home equity Commercial and multifamily Construction and land Manufactured homes Other consumer Commercial business Total Grade: Pass $ 136,879 $ 30,310 $ 169,072 $ 55,984 $ 13,621 $ 22,967 $ 18,449 $ 447,282 Watch 1,015 609 4,810 1,059 96 58 846 8,493 Special Mention 1,409 - 1,430 - 33 - - 2,872 Substandard 1,822 654 - - 48 5 - 2,529 Doubtful - - - - - - - - Loss - - - - - - - - Total $ 141,125 $ 31,573 $ 175,312 $ 57,043 $ 13,798 $ 23,030 $ 19,295 $ 461,176 Nonaccrual and Past Due Loans The following table presents the recorded investment in nonaccrual loans as of September 30, 2016 and December 31, 2015, by type of loan (in thousands): September 30, 2016 December 31, 2015 One- to four- family $ 1,189 $ 1,157 Home equity 427 344 Commercial and multifamily 2,337 - Construction and land - - Manufactured homes 112 27 Other consumer 154 - Total $ 4,219 $ 1,528 The following table represents the aging of the recorded investment in past due loans as of September 30, 2016 by type of loan (in thousands): 30-59 Days Past Due 60-89 Days Past Due 90 Days and Greater Past Due 90 Days and Greater Past Due and Still Accruing Total Past Due Current Total Loans One-to four- family $ - $ 459 $ 977 $ - $ 1,436 $ 150,556 $ 151,992 Home equity 348 153 231 - 732 29,565 30,297 Commercial and multifamily - - 228 - 228 170,030 170,258 Construction and land - - - - - 58,902 58,902 Manufactured homes 177 - 112 - 289 15,236 15,525 Other consumer 1 28 - - 29 25,541 25,570 Commercial business 147 - - - 147 26,292 26,439 Total $ 673 $ 640 $ 1,548 $ - $ 2,861 $ 476,122 $ 478,983 The following table represents the aging of the recorded investment in past due loans as of December 31, 2015 by type of loan (in thousands): 30-59 Days Past Due 60-89 Days Past Due 90 Days and Greater Past Due 90 Days and Greater Past Due and Still Accruing Total Past Due Current Total Loans One-to four- family $ 2,453 $ 265 $ 881 $ 117 $ 3,716 $ 137,409 $ 141,125 Home equity 352 60 296 - 708 30,865 31,573 Commercial and multifamily 203 - - - 203 175,109 175,312 Construction and land 65 - - - 65 56,978 57,043 Manufactured homes 103 27 - - 130 13,668 13,798 Other consumer 17 26 - - 43 22,987 23,030 Commercial business 154 8 - - 162 19,133 19,295 Total $ 3,347 $ 386 $ 1,177 $ 117 $ 5,027 $ 456,149 $ 461,176 Nonperforming Loans. The following table represents the credit risk profile of our loan portfolio based on payment activity as of September 30, 2016 by type of loan (in thousands): One- to four- family Home equity Commercial and multifamily Construction and land Manufactured homes Other consumer Commercial business Total Performing $ 150,437 $ 29,717 $ 167,921 $ 58,902 $ 15,377 $ 25,570 $ 26,190 $ 474,114 Nonperforming 1,555 580 2,337 - 148 - 249 4,869 Total $ 151,992 $ 30,297 $ 170,258 $ 58,902 $ 15,525 $ 25,570 $ 26,439 $ 478,983 The following table represents the credit risk profile of our loan portfolio based on payment activity as of December 31, 2015 by type of loan (in thousands): One- to four- family Home equity Commercial and multifamily Construction and land Manufactured homes Other consumer Commercial business Total Performing $ 139,484 $ 31,146 $ 175,312 $ 57,043 $ 13,736 $ 23,030 $ 19,295 $ 459,046 Nonperforming 1,641 427 - - 62 - - 2,130 Total $ 141,125 $ 31,573 $ 175,312 $ 57,043 $ 13,798 $ 23,030 $ 19,295 $ 461,176 Impaired Loans. Impaired loans at September 30, 2016 and December 31, 2015 by type of loan were as follows (in thousands): September 30, 2016 Recorded Investment Unpaid Principal Balance Without Allowance With Allowance Related Allowance One- to four- family $ 5,617 $ 2,405 $ 2,873 $ 629 Home equity 985 445 440 97 Commercial and multifamily 3,871 1,237 2,632 389 Construction and land 85 - 85 23 Manufactured homes 387 112 260 53 Other consumer 23 - 23 23 Commercial business 638 146 487 30 Total $ 11,606 $ 4,345 $ 6,800 $ 1,244 December 31, 2015 Recorded Investment Unpaid Principal Balance Without Allowance With Allowance Related Allowance One- to four- family $ 6,011 $ 499 $ 5,280 $ 647 Home equity 994 162 742 110 Commercial and multifamily 1,966 1,430 536 36 Construction and land 91 - 91 18 Manufactured homes 366 - 361 63 Other consumer 5 - 5 - Commercial business 114 - 114 8 Total $ 9,547 $ 2,091 $ 7,129 $ 882 Income on impaired loans for the three and nine months ended September 30, 2016 and September 30, 2015 by type of loan were as follows (in thousands): Three Months Ended Three Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized One- to four- family $ 5,445 $ 58 $ 5,760 $ 70 Home equity 968 4 1,006 10 Commercial and multifamily 4,365 19 2,388 30 Construction and land 86 1 135 2 Manufactured homes 383 6 366 7 Other consumer 24 - 93 2 Commercial business 640 9 138 2 Total $ 11,911 $ 97 $ 9,886 $ 123 Nine months Ended Nine months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized One- to four- family $ 5,533 $ 197 $ 4,957 $ 198 Home equity 944 31 1,115 28 Commercial and multifamily 3,902 152 2,616 78 Construction and land 88 3 157 4 Manufactured homes 377 23 385 20 Other consumer 20 2 63 2 Commercial business 474 27 151 5 Total $ 11,338 $ 435 $ 9,444 $ 335 Forgone interest on nonaccrual loans was $95,000 and Troubled debt restructurings. Rate Modification Term Modification Payment Modification Combination Modification There were no new TDRs that occurred during the nine months ended September 30, 2016 and 2015. There were no loans modified as TDRs within the previous 12 months. For the three and nine months ended September 30, 2016 and 2015, no TDR loans defaulted in the reporting period for which the default occurred within 12 months of the restructure date. There were no post-modification changes for the recorded investment in TDR loans during the three and nine months ended September 30, 2016 and 2015, respectively. The allowance for loan losses allocated to TDRs at September 30, 2016 and December 31, 2015 was $630,000 and $599,000, respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 5 – Fair Value Measurements The following tables present information about the level in the fair value hierarchy for the Company’s financial assets and liabilities, whether or not recognized or recorded at fair value as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Fair Value Measurements Using: Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 FINANCIAL ASSETS: Cash and cash equivalents $ 55,275 $ 55,275 $ 55,275 $ - $ - Available-for-sale securities 6,996 6,996 - 6,641 355 Loans held for sale 2,424 2,424 - 2,424 - Loans, net 472,207 471,170 - - 471,170 Accrued interest receivable 1,630 1,630 1,630 - - Mortgage servicing rights 3,039 3,039 - - 3,039 FHLB stock 2,146 2,146 - - 2,146 FINANCIAL LIABILITIES: Non-maturity deposits $ 303,478 303,022 - 303,022 - Time deposits 160,005 160,042 - 160,042 - Borrowings 37,453 37,451 - 37,451 - Accrued interest payable 62 62 - 62 - December 31, 2015 Fair Value Measurements Using: Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 FINANCIAL ASSETS: Cash and cash equivalents $ 48,264 $ 48,264 $ 48,264 $ - $ - Available-for-sale securities 6,696 6,696 - 6,268 428 Loans held for sale 2,091 2,091 - 2,091 - Loans, net 454,833 454,854 - - 454,854 Accrued interest receivable 1,608 1,608 1,608 - - Mortgage servicing rights 3,249 3,249 - - 3,249 FHLB Stock 2,212 2,212 - - 2,212 FINANCIAL LIABILITIES: Non-maturity deposits 271,144 271,144 - 271,144 - Time deposits 168,880 168,091 - 168,091 - Borrowings 40,435 40,421 - 40,421 - Accrued interest payable 72 72 - 72 - The following table presents the balance of assets measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015 (in thousands): Fair Value at September 30, 2016 Description Total Level 1 Level 2 Level 3 Municipal bonds $ 3,501 $ - $ 3,501 $ - Agency mortgage-backed securities 3,140 - 3,140 - Non-agency mortgage-backed securities 355 - - 355 Mortgage servicing rights 3,039 - - 3,039 Fair Value at December 31, 2015 Description Total Level 1 Level 2 Level 3 Municipal bonds $ 2,096 $ - $ 2,096 $ - Agency mortgage-backed securities 4,172 - 4,172 - Non-agency mortgage-backed securities 428 - - 428 Mortgage servicing rights 3,249 - - 3,249 For the three and nine months ended September 30, 2016 and 2015 there were no transfers between Level 1 and Level 2 nor between Level 2 and Level 3. The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring basis at September 30, 2016: Financial Instrument Valuation Technique Unobservable Input(s) Range (Weighted Average) Mortgage Servicing Rights Discounted cash flow Prepayment speed assumption 106-329% (216%) Discount rate 8-12% (10%) Non-agency mortgage-backed securities Discounted cash flow Discount rate (8%) Generally, any significant increases in the constant prepayment rate and discount rate utilized in the fair value measurement of the mortgage servicing rights will result in a negative fair value adjustment (and decrease in the fair value measurement). Conversely, a decrease in the constant prepayment rate and discount rate will result in a positive fair value adjustment (and increase in the fair value measurement). An increase in the weighted average life assumptions will result in a decrease in the constant prepayment rate and conversely, a decrease in the weighted average life will result in an increase of the constant prepayment rate. The following table provides a reconciliation of non-agency mortgage backed securities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended September 30, Nine months Ended September 30, 2016 2015 2016 2015 Beginning balance, at fair value $ 379 $ 483 $ 428 $ 2,345 OTTI impairment losses - - - - Principal payments (29 ) (14 ) (90 ) (149 ) Sales - - (1,702 ) Change in unrealized loss 5 (1 ) 17 (26 ) Ending balance, at fair value $ 355 $ 468 $ 355 $ 468 Mortgage servicing rights are measured at fair value using significant unobservable input (Level 3) on a recurring basis and a reconciliation of this asset can be found in Note 6 – Mortgage Servicing Rights. The following tables present the balance of assets measured at fair value on a nonrecurring basis at the dates indicated (in thousands): Fair Value at September 30, 2016 Total Level 1 Level 2 Level 3 OREO and repossessed assets $ 884 $ - $ - $ 884 Impaired loans 11,145 - - 11,145 Fair Value at December 31, 2015 Total Level 1 Level 2 Level 3 OREO and repossessed assets $ 769 $ - $ - $ 769 Impaired loans 9,220 - - 9,220 There were no liabilities carried at fair value, measured on a recurring or nonrecurring basis, at September 30, 2016 or December 31, 2015. The following table provides a description of the valuation technique, observable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a nonrecurring basis at September 30, 2016: Financial Instrument Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) OREO Market approach Adjustment for differences between comparable sales 0-8.0% (5.4%) Impaired loans Market approach Adjustment for differences between comparable sales 0-100% (9.3%) A description of the valuation methodologies used for impaired loans and OREO is as follows: Impaired Loans OREO and Repossessed Assets The following methods and assumptions were used to estimate the fair value of other financial instruments: Cash and cash equivalents, accrued interest receivable and payable, and advance payments from borrowers for taxes and insurance Available-for-sale (“AFS”) Securities Loans Held for Sale Loans Mortgage Servicing Rights FHLB stock Deposits Borrowings Off-balance-sheet financial instruments We assume interest rate risk (the risk that general interest rate levels will change) as a result of our normal operations. As a result, the fair values of our financial instruments will change when interest rate levels change, which may be favorable or unfavorable to us. Management attempts to match maturities of assets and liabilities to the extent necessary or possible to minimize interest rate risk. However, borrowers with fixed-rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by establishing early withdrawal penalties for certificates of deposit, creating interest rate floors for certain variable rate loans, adjusting terms of new loans and deposits, by borrowing at fixed rates for fixed terms and investing in securities with terms that mitigate our overall interest rate risk. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 9 Months Ended |
Sep. 30, 2016 | |
Mortgage Servicing Rights [Abstract] | |
Mortgage Servicing Rights | Note 6 – Mortgage Servicing Rights The unpaid principal balances of loans serviced for Fannie Mae at September 30, 2016 and December 31, 2015, totaled approximately $356.9 million and $360.4 million, respectively, and was not included in the Company’s financial statements. We also service loans for other financial institutions totaling $13.7 million. A summary of the change in the balance of mortgage servicing rights during the three and nine months ended September 30, 2016 and 2015 were as follows (in thousands): Three Months Ended September 30, Nine months Ended September 30, 2016 2015 2016 2015 Beginning balance, at fair value $ 3,026 $ 3,271 $ 3,249 $ 3,028 Servicing rights that result from transfers of financial assets 205 151 464 582 Changes in fair value: Due to changes in model inputs or assumptions (1) 17 (22 ) (174 ) 152 Other (2) (209 ) (174 ) (500 ) (536 ) Ending balance, at fair value $ 3,039 $ 3,226 $ 3,039 $ 3,226 (1) (2) The key economic assumptions used in determining the fair value of mortgage servicing rights at the dates indicated are as follows: At September 30, 2016 2015 Prepayment speed (Public Securities Association “PSA” model) 216 % 192 % Weighted-average life (years) 5.86 6.43 Yield to maturity discount rate 10.0 % 10.0 % The amount of contractually specified servicing, late and ancillary fees earned and recorded in mortgage servicing income on the Condensed Consolidated Statements of Income was $223,000 and $636,000 for the three and nine months ended September 30, 2016, respectively and $202,000 and $671,000 for the three and nine months ended September 30, 2015, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 7 – Commitments and Contingencies In the normal course of operations, the Company engages in a variety of financial transactions that are not recorded in our financial statements. These transactions involve varying degrees of off-balance sheet credit, interest rate and liquidity risks. These transactions are used primarily to manage customers’ requests for funding and take the form of loan commitments and lines of credit. |
Borrowings and FHLB Stock
Borrowings and FHLB Stock | 9 Months Ended |
Sep. 30, 2016 | |
Borrowings and FHLB Stock [Abstract] | |
Borrowings and FHLB Stock | Note 8 – Borrowings and FHLB Stock The Company utilizes a loan agreement with the FHLB of Seattle. The terms of the agreement call for a blanket pledge of a portion of the Company’s mortgage and commercial and multifamily portfolio based on the outstanding balance. At September 30, 2016 and December 31, 2015, the amount available to borrow As a member of the FHLB system, the Bank is required to maintain a minimum level of investment in FHLB stock based on specific percentages of its outstanding FHLB advances . The Company participates in the Federal Reserve Bank Borrower-in-Custody program, which gives the Company access to the discount window. The terms of the program call for a pledge of specific assets. The Company had unused borrowing capacity of $33.2 million and $25.9 million and no outstanding borrowings under this program at September 30, 2016 and December 31, 2015, respectively. The Company has access to a Fed Funds line of credit from the Pacific Coast Banker's Bank. The line has a one-year term maturing on September 30, 2017 and is renewable annually. The Company had unused borrowing capacity of $2.0 million and no outstanding borrowings under this agreement at September 30, 2016 and December 31, 2015. The Company has access to a Fed Funds line of credit from Zions Bank under a Fed Funds Sweep and Line Agreement dated September 26, 2014. The agreement allows access to a Fed Funds line of up to $9.0 million and requires the Company to maintain cash balances with Zions Bank of $250,000. The agreement has no maturity date. There were no outstanding borrowings on this line of credit at September 30, 2016 or December 31, 2015. The Company has access to a Fed Funds line of credit from the TIB-The Independent BankersBank. The agreement has no maturity date. The Company had unused borrowing capacity of $10.0 million and no outstanding borrowings under this agreement at September 30, 2016 and December 31, 2015. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Common Share [Abstract] | |
Earnings Per Common Share | Note 9 – Earnings Per Common Share Basic earnings per common share is computed by dividing net income (which has been adjusted for distributed and undistributed earnings to participating securities) by the weighted-average number of common shares outstanding for the period, reduced for average unallocated ESOP shares and average unvested restricted stock awards. Unvested share-based awards contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) at the same rate as common stockholders. Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock (such as stock awards and options) were exercised or converted to common stock, or resulted in the issuance of common stock that then shared in the Company's earnings. Diluted earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding for the period increased for the dilutive effect of unexercised stock options and unvested restricted stock awards. The dilutive effect of the unexercised stock options and unvested restricted stock awards is calculated under the treasury stock method utilizing the average market value of the Company's stock for the period. Earnings per common share are summarized for the periods presented in the following table (dollars in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net income $ 1,454 $ 1,115 $ 3,814 $ 3,570 Weighted average number of shares outstanding, basic 2,490 2,465 2,483 2,500 Effect of potentially dilutive common shares 78 87 74 86 Weighted average number of shares outstanding, diluted 2,568 2,552 2,557 2,586 Earnings per share, basic $ 0.58 $ 0.45 $ 1.54 $ 1.43 Earnings per share, diluted $ 0.57 $ 0.44 $ 1.48 $ 1.38 There were no shares considered anti-dilutive for the three and nine months ended September 30, 2016 or 2015. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Stock-based Compensation [Abstract] | |
Stock-based Compensation | Note 10 – Stock-based Compensation Stock Options and Restricted Stock The Company currently has two existing Equity Incentive Plans, a 2008 Equity Inventive Plan (the"2008 Plan") and a 2013 Equity Incentive Plan (the "2013 Plan" and together with the 2008 Plan, the "Plans"), both of which were approved by shareholders. The Plans permit the grant of restricted stock, restricted stock units, stock options, and stock appreciation rights. Under the 2008 Plan, 126,287 shares of common stock were approved for awards for stock options and stock appreciation rights and 50,514 shares of common stock were approved for awards for restricted stock and restricted stock units. Under the 2013 Plan, 141,750 shares of common stock were approved for awards for stock options and stock appreciation rights and 56,700 shares of common stock were approved for awards for restricted stock and restricted stock units. As of September 30, 2016, awards for stock options totaling 233,532 shares and awards for restricted stock totaling 106,630 shares of Company common stock have been granted, net of any forfeitures, to participants in the Plans. During the three months ended September 30, 2016 and September 30, 2015, share-based compensation expense 2015, share-based compensation expense Stock Option Awards The stock option awards granted to date under the 2008 Plan vest in 20 percent annual increments commencing one year from the grant date in accordance with the requirements of the 2008 Plan. The stock option awards granted to date under the 2013 Plan vest in equal annual installments over two to four years. All of the options granted are exercisable for a period of 10 years from the date of grant, subject to vesting. The following is a summary of the Company's stock option awards during the nine months ended September 30, 2016: Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term In Years Aggregate Intrinsic Value Outstanding at the beginning of the year 184,407 $ 14.47 6.97 $ 1,490,009 Granted 10,993 $ 22.31 Exercised (21,656 ) $ 10.68 Forfeited (3,487 ) $ 17.23 Expired - - Outstanding at September 30, 2016 170,257 $ 15.40 6.69 $ 1,545,296 Exercisable 90,193 $ 13.67 5.80 $ 974,685 Expected to vest, assuming a 0% forfeiture rate over the vesting term 80,064 $ 17.35 7.70 $ 570,610 As of September 30, 2016, there was $378,000 of total unrecognized compensation cost related to non-vested stock options granted under the Plans. The cost is expected to be recognized over the remaining weighted-average vesting period of 2.5 years. The fair value of each option award granted is estimated on the date of grant using a Black-Scholes model. The assumptions used for the nine months ended September 30, 2016 are presented in the table below: Annual dividend yield 1.03 % Expected volatility 25.48 % Risk-free interest rate 1.64 % Expected term 6.92 years Weighted-average grant date fair value per option granted $ 5.78 Restricted Stock Awards The fair value of the restricted stock awards is equal to the fair value of the Company’s stock at the date of grant. Compensation expense is recognized over the vesting period that the awards are based. The restricted stock awards granted under the 2008 Plan vest in 20 percent annual increments commencing one year from the grant date in accordance with the requirements of the 2008 plan. The restricted stock awards granted to date under the 2013 Plan vest in equal annual installments over two to four years. The following is a summary of the Company’s outstanding restricted stock awards during the nine months ended September 30, 2016: Non-vested Shares Shares Weighted-Average Grant-Date Fair Value Per Share Non-vested at January 1, 2016 31,553 $ 16.32 Granted 11,606 22.31 Vested (15,962 ) 17.59 Forfeited (1,059 ) 17.36 Expired - - Non-vested at September 30, 2016 26,138 $ 18.08 Expected to vest assuming a 0% forfeiture rate over the vesting term 26,138 $ 18.08 As of September 30, 2016, there was $408,000 of total unrecognized compensation cost related to non-vested restricted stock granted under the Plans. The cost is expected to be recognized over the weighted-average vesting period of 1.28 years. The total fair value of shares vested for the nine months ended September 30, 2016 and 2015 was $272,000 and $240,000, respectively. Employee Stock Ownership Plan In January 2008, the ESOP borrowed $1.2 million from the Company to purchase common stock of the Company. In August 2012, in conjunction with the Company’s “second step” conversion to become a fully converted public company, the ESOP borrowed $1.1 million from the Company to purchase additional common stock of the Company. Both loans are being repaid principally by the Bank through contributions to the ESOP over a period of ten years. The interest rate on the loans is fixed at 4.0% and 2.25%, per annum, respectively. As of September 30, 2016, the remaining balances of the ESOP loans were $270,000 and $701,000, respectively. Neither the loan balances nor the related interest expense are reflected on the condensed consolidated financial statements. At September 30, 2016, the ESOP was committed to release 21,443 shares of the Company’s common stock to participants and held 88,243 unallocated shares remaining to be released in future years. The fair value of the 188,981 shares of Company common stock held by the ESOP trust was $4.5 million at September 30, 2016. ESOP compensation expense included in salaries and benefits was $155,000 and $426,000 for the three and nine months ended September 30, 2016 and $110,000 and $313,000 for the three and nine months ended September 30, 2015, respectively. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Event [Abstract] | |
Subsequent Event | Note 11 – Subsequent Event On October 25, 2016, the Company declared a quarterly cash dividend of $0.075 per common share, payable November 25, 2016 to shareholders of record at the close of business November 11, 2016. On October 28, 2016, the Company announced that the Bank has entered into an agreement to purchase from Sunwest Bank a branch located at 4922 Bridgeport Way West, University Place, Washington (the “University Place Branch”). The Bank expects to acquire approximately $17.7 million of deposits for a core deposit premium of 3.35%. The Bank is not acquiring any loans as part of the transaction. The cost of funds from the University Place Branch is approximately 17 basis points and the cash received is expected to be used to pay down FHLB borrowings. The Bank expects to retain the current branch staff at the University Place Branch. The transaction is expected to close in the first calendar quarter of 2017, following approval by regulators and satisfaction of customary closing conditions. |
Accounting Pronouncements Rec21
Accounting Pronouncements Recently Issued or Adopted (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Pronouncements Recently Issued or Adopted [Abstract] | |
New Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which creates Topic 606 and supersedes Topic 605, Revenue Recognition. In August 2015, FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606), which postponed the effective date of 2014-09. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net, which amended the principal versus agent implementation guidance set for in ASU 2014-09. Among other things, ASU 2016-08 clarifies that an entity should evaluate whether it is the principal or the agent for each specified good or service promised in a contract with a customer. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The ASU amends certain aspects of the guidance set forth in the FASB's new revenue standard related to identifying performance obligations and licensing implementation. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In general, the new ASU requires companies to use more judgment and make more estimates than under current guidance, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which provides clarifying guidance in certain narrow areas and adds some practical expedients, but does not change the core revenue recognition principle in Topic 606. This ASU is effective for for interim and annual periods beginning after December 15, 2017; early adoption is not permitted. For financial reporting purposes, the ASU allows for either full retrospective adoption, meaning this ASU is applied to all of the periods presented, or modified retrospective adoption, meaning the ASU is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the ASU is recognized at the date of initial application. The Company is currently evaluating the provisions to determine the potential impact the new standard will have on the Company's consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance is intended to improve the recognition and measurement of financial instruments. This ASU requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. In addition, the ASU requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes and requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. This ASU also eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. The ASU also requires a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. ASU No. 2016-01 is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for certain provisions. The Company is currently evaluating the impact of this ASU on the Company's consolidated financial statements In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842). ASU No. 2016-02 requires lessees to recognize, on the balance sheet, the assets and liabilities arising from operating leases. A lessee should recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. A lessee should include payments to be made in an optional period only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. For a finance lease, interest payments should be recognized separately from amortization of the right-of-use asset in the statement of comprehensive income. For operating leases, the lease cost should be allocated over the lease term on a generally straight-line basis. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in the ASU is permitted. The adoption of ASU 2016-02 is not expected to have a material impact on the Company's consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-06, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. A contract novation refers to replacing one of the parties to a derivative instrument with a new party. This ASU clarifies that a change in counterparty in a derivative instrument does not, in and of itself, require dedesignation of that hedging relationship and therefore discontinue the application of hedge accounting. ASU 2016-05 is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted in any interim or annual period. The adoption of ASU 2016-05 is not expected to have a material impact on the Company's consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. The ASU eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an adjustment must be made to the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The ASU is effective for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption of the update is permitted. The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC Topic 718, Compensation - Stock Compensation. The ASU includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The ASU is effective for annual and interim periods beginning after December 15, 2016. The adoption of ASU is being reviewed for any material impact there may be on the Company's consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU replaces the existing incurred loss impairment methodology that recognizes credit losses when a probable loss has been incurred with new methodology where loss estimates are based upon lifetime expected credit losses. The amendments in this ASU require a financial asset that is measured at amortized cost to be presented at the net amount expected to be collected. The income statement would then reflect the measurement of credit losses for newly recognized financial assets as well as changes to the expected credit losses that have taken place during the reporting period. The measurement of expected credit losses will be based on historical information, current conditions, and reasonable and supportable forecasts that impact the collectability of the reported amount. Available-for-sale securities will bifurcate the fair value mark and establish an allowance for credit losses through the income statement for the credit portion of that mark. The interest portion will continue to be recognized through accumulated other comprehensive income or loss. The change in allowance recognized as a result of adoption will occur through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the ASU is adopted. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019 with early adoption permitted after December 15, 2018. The Company is currently evaluating the impact of this ASU on the Company's consolidated financial statements. In August 2016, FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU addresses the appropriate classification of eight specific cash flow issues on the cash flow statement. Debt prepayment costs should be classified as an outflow for financing activities. Settlement of zero-coupon debt instruments divides the interest portion as an outflow for operating activities and the principal portion as an outflow for financing activities. Contingent consideration payments made after a business combination should be classified as outflows for financing and operating activities. Proceeds from the settlement of bank-owned life insurance policies should be classified as inflows from investing activities. Other specific areas are identified in the ASU as to the appropriate classification of the cash inflows or outflows. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted and must be applied using a retrospective transition method to each period presented. The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments [Abstract] | |
Amortized Cost and Fair Value of AFS Securities and Corresponding Amounts of Gross Unrealized Gains And Losses | The amortized cost and fair value of our available-for-sale (“AFS”) securities and the corresponding amounts of gross unrealized gains and losses at the dates indicated were as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value September 30, 2016 Municipal bonds $ 3,267 $ 235 $ (1 ) $ 3,501 Agency mortgage-backed securities 3,074 80 (14 ) 3,140 Non-agency mortgage-backed securities 372 - (17 ) 355 Total $ 6,713 $ 315 $ (32 ) $ 6,996 December 31, 2015 Municipal bonds $ 1,912 $ 184 $ - $ 2,096 Agency mortgage-backed securities 4,088 102 (18 ) 4,172 Non-agency mortgage-backed securities 449 - (21 ) 428 Total $ 6,449 $ 286 $ (39 ) $ 6,696 |
Amortized Cost and Fair Value of Investments Available-for-Sale by Contractual Maturity | The amortized cost and fair value of AFS securities at September 30, 2016, by contractual maturity, are shown below (in thousands). Expected maturities of AFS securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. At September 30, 2016 Amortized Cost Fair Value Due within five years $ 1,111 $ 1,111 Due in five to ten years 504 529 Due after ten years 5,098 5,356 Total $ 6,713 $ 6,996 |
Aggregate Fair Value and Gross Unrealized Loss in Continuous Unrealized Loss Position | The following tables summarize at the dates indicated the aggregate fair value and gross unrealized loss by length of time of those investments that have been continuously in an unrealized loss position (in thousands): September 30, 2016 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ 890 $ (1 ) $ - $ - $ 890 $ (1 ) Agency mortgage-backed securities $ 1,169 $ (14 ) $ - $ - $ 1,169 $ (14 ) Non-agency mortgage-backed securities $ - $ - $ 355 $ (17 ) $ 355 $ (17 ) Total $ 2,059 $ (15 ) $ 355 $ (17 ) $ 2,414 $ (32 ) December 31, 2015 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Agency mortgage-backed securities $ - $ - $ 1,370 $ (18 ) $ 1,370 $ (18 ) Non-agency mortgage-backed securities - - 428 (21 ) 428 (21 ) Total $ $ $ 1,798 $ (39 ) $ 1,798 $ (39 ) |
Cumulative Roll Forward of Credit Losses Recognized in Earnings | The following table presents the cumulative roll forward of credit losses recognized in earnings during the three and nine months ended September 30, 2016 and 2015 relating to the Company’s non-U.S. agency mortgage-backed securities (in thousands): Three Months Ended September 30, Nine months Ended September 30, 2016 2015 2016 2015 Estimated credit losses, beginning balance $ - $ - $ - $ 450 Additions for credit losses not previously recognized - - - - Reduction for increases in cash flows - - - - Reduction of related OTTI due to sales - - - (450 ) Reduction for realized losses - - - - Estimated credit losses, ending balance $ - $ - $ - $ - |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Loans [Abstract] | |
Composition of Loan Portfolio, Excluding Loans Held for Sale | The composition of the loan portfolio at the dates indicated, excluding loans held for sale, was as follows (in thousands): At September 30, 2016 At December 31, 2015 Real estate loans: One- to four- family $ 151,992 $ 141,125 Home equity 30,297 31,573 Commercial and multifamily 170,258 175,312 Construction and land 58,902 57,043 Total real estate loans $ 411,449 $ 405,053 Consumer loans: Manufactured homes 15,525 13,798 Other consumer 25,570 23,030 Total consumer loans 41,095 36,828 Commercial business loans 26,439 19,295 Total loans 478,983 461,176 Deferred fees (1,917 ) (1,707 ) Total loans, gross 477,066 459,469 Allowance for loan losses (4,859 ) (4,636 ) Total loans, net $ 472,207 $ 454,833 |
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method | The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2016 (in thousands): One- to four- family Home equity Commercial and multifamily Construction and land Manufactured homes Other consumer Commercial business Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ 629 $ 97 $ 389 $ 23 $ 53 $ 23 $ 30 $ - $ 1,244 Collectively evaluated for impairment $ 1,029 $ 327 $ 971 $ 350 $ 124 $ 175 $ 151 $ 488 $ 3,615 Ending balance $ 1,658 $ 424 $ 1,360 $ 373 $ 177 $ 198 $ 181 $ 488 $ 4,859 Loans receivable: Individually evaluated for impairment $ 5,278 $ 885 $ 3,869 $ 85 $ 372 $ 23 $ 633 $ - $ 11,145 Collectively evaluated for impairment $ 146,714 $ 29,412 $ 166,389 $ 58,817 $ 15,153 $ 25,547 $ 25,806 $ - $ 467,838 Ending balance $ 151,992 $ 30,297 $ 170,258 $ 58,902 $ 15,525 $ 25,570 $ 26,439 $ - $ 478,983 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2015 (in thousands): One-to- four family Home equity Commercial and multifamily Construction and land Manufactured homes Other consumer Commercial business Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ 647 $ 110 $ 36 $ 18 $ 63 $ - $ 8 $ - $ 882 Collectively evaluated for impairment 1,192 497 885 364 238 188 149 241 3,754 Ending balance $ 1,839 $ 607 $ 921 $ 382 $ 301 $ 188 $ 157 $ 241 $ 4,636 Loans receivable: Individually evaluated for impairment $ 5,779 $ 904 $ 1,966 $ 91 $ 361 $ 5 $ 114 $ - $ 9,220 Collectively evaluated for impairment 135,346 30,669 173,346 56,952 13,437 23,025 19,181 - 451,956 Ending balance $ 141,125 $ 31,573 $ 175,312 $ 57,043 $ 13,798 $ 23,030 $ 19,295 $ - $ 461,176 |
Activity in Allowance for Loan Losses | The following table summarizes the activity in the allowance for loan losses for the three months ended September 30, 2016 (in thousands): Beginning Allowance Charge-offs Recoveries Provision Ending Allowance One-to four- family $ 1,713 $ - $ - $ (55 ) $ 1,658 Home equity 501 (14 ) 10 (73 ) 424 Commercial and multifamily 1,377 - - (17 ) 1,360 Construction and land 388 - 18 (33 ) 373 Manufactured homes 189 - 2 (14 ) 177 Other consumer 221 (10 ) 15 (28 ) 198 Commercial business 171 - - 10 181 Unallocated 278 - - 210 488 Total $ 4,838 $ (24 ) $ 45 $ 0 $ 4,859 The following table summarizes the activity in the allowance for loan losses for the nine months ended September 30, 2016 (in thousands): Beginning Allowance Charge-offs Recoveries Provision Ending Allowance One-to four- family $ 1,839 $ (72 ) $ - $ (109 ) $ 1,658 Home equity 607 (14 ) - (169 ) 424 Commercial and multifamily 921 - - 439 1,360 Construction and land 382 - 18 (27 ) 373 Manufactured homes 301 - 75 (199 ) 177 Other consumer 188 (31 ) 7 34 198 Commercial business 157 (29 ) 19 34 181 Unallocated 241 - - 247 488 Total $ 4,636 $ (146 ) $ 119 $ 250 $ 4,859 The following table summarizes the activity in the allowance for loan losses for the three months ended September 30, 2015 (in thousands): Beginning Allowance Charge-offs Recoveries Provision Ending Allowance One-to four- family $ 1,594 $ - $ - $ 174 $ 1,768 Home equity 509 - 25 (15 ) 519 Commercial and multifamily 1,507 - - (166 ) 1,341 Construction and land 345 - 1 (229 ) 117 Manufactured homes 193 - - (1 ) 192 Other consumer 183 (18 ) 2 2 169 Commercial business 145 - - (11 ) 134 Unallocated 96 - - 346 442 Total $ 4,572 $ (18 ) $ 28 $ 100 $ 4,682 The following table summarizes the activity in the allowance for loan losses for the nine months ended September 30, 2015 (in thousands): Beginning Allowance Charge-offs Recoveries Provision Ending Allowance One-to four- family $ 1,442 $ (21 ) $ - $ 347 $ 1,768 Home equity 601 (19 ) 35 (98 ) 519 Commercial and multifamily 1,244 - - 97 1,341 Construction and land 399 (40 ) 1 (242 ) 117 Manufactured homes 193 (32 ) 5 24 192 Other consumer 167 (45 ) 11 37 169 Commercial business 108 - - 26 134 Unallocated 233 - - 209 442 Total $ 4,387 $ (157 ) $ 52 $ 400 $ 4,682 |
Credit Quality Indicators | The following table represents the internally assigned grades as of September 30, 2016 by type of loan (in thousands): One- to four- family Home equity Commercial and multifamily Construction and land Manufactured homes Other consumer Commercial business Total Grade: Pass $ 148,008 $ 29,106 $ 164,970 $ 58,057 $ 15,277 $ 25,496 $ 26,037 $ 466,951 Watch 1,167 537 1,943 845 77 51 22 4,642 Special Mention 1,408 - - - 31 - - 1,439 Substandard 1,409 654 3,345 - 140 23 380 5,951 Doubtful - - - - - - - - Loss - - - - - - - - Total $ 151,992 $ 30,297 $ 170,258 $ 58,902 $ 15,525 $ 25,570 $ 26,439 $ 478,983 The following table represents the internally assigned grades as of December 31, 2015 by type of loan (in thousands): One- to four- family Home equity Commercial and multifamily Construction and land Manufactured homes Other consumer Commercial business Total Grade: Pass $ 136,879 $ 30,310 $ 169,072 $ 55,984 $ 13,621 $ 22,967 $ 18,449 $ 447,282 Watch 1,015 609 4,810 1,059 96 58 846 8,493 Special Mention 1,409 - 1,430 - 33 - - 2,872 Substandard 1,822 654 - - 48 5 - 2,529 Doubtful - - - - - - - - Loss - - - - - - - - Total $ 141,125 $ 31,573 $ 175,312 $ 57,043 $ 13,798 $ 23,030 $ 19,295 $ 461,176 |
Nonaccrual Loans | The following table presents the recorded investment in nonaccrual loans as of September 30, 2016 and December 31, 2015, by type of loan (in thousands): September 30, 2016 December 31, 2015 One- to four- family $ 1,189 $ 1,157 Home equity 427 344 Commercial and multifamily 2,337 - Construction and land - - Manufactured homes 112 27 Other consumer 154 - Total $ 4,219 $ 1,528 |
Aging of Recorded Investment in Past Due Loans | The following table represents the aging of the recorded investment in past due loans as of September 30, 2016 by type of loan (in thousands): 30-59 Days Past Due 60-89 Days Past Due 90 Days and Greater Past Due 90 Days and Greater Past Due and Still Accruing Total Past Due Current Total Loans One-to four- family $ - $ 459 $ 977 $ - $ 1,436 $ 150,556 $ 151,992 Home equity 348 153 231 - 732 29,565 30,297 Commercial and multifamily - - 228 - 228 170,030 170,258 Construction and land - - - - - 58,902 58,902 Manufactured homes 177 - 112 - 289 15,236 15,525 Other consumer 1 28 - - 29 25,541 25,570 Commercial business 147 - - - 147 26,292 26,439 Total $ 673 $ 640 $ 1,548 $ - $ 2,861 $ 476,122 $ 478,983 The following table represents the aging of the recorded investment in past due loans as of December 31, 2015 by type of loan (in thousands): 30-59 Days Past Due 60-89 Days Past Due 90 Days and Greater Past Due 90 Days and Greater Past Due and Still Accruing Total Past Due Current Total Loans One-to four- family $ 2,453 $ 265 $ 881 $ 117 $ 3,716 $ 137,409 $ 141,125 Home equity 352 60 296 - 708 30,865 31,573 Commercial and multifamily 203 - - - 203 175,109 175,312 Construction and land 65 - - - 65 56,978 57,043 Manufactured homes 103 27 - - 130 13,668 13,798 Other consumer 17 26 - - 43 22,987 23,030 Commercial business 154 8 - - 162 19,133 19,295 Total $ 3,347 $ 386 $ 1,177 $ 117 $ 5,027 $ 456,149 $ 461,176 |
Credit Risk Profile of Loan Portfolio Based on Payment Activity by Type of Loan | The following table represents the credit risk profile of our loan portfolio based on payment activity as of September 30, 2016 by type of loan (in thousands): One- to four- family Home equity Commercial and multifamily Construction and land Manufactured homes Other consumer Commercial business Total Performing $ 150,437 $ 29,717 $ 167,921 $ 58,902 $ 15,377 $ 25,570 $ 26,190 $ 474,114 Nonperforming 1,555 580 2,337 - 148 - 249 4,869 Total $ 151,992 $ 30,297 $ 170,258 $ 58,902 $ 15,525 $ 25,570 $ 26,439 $ 478,983 The following table represents the credit risk profile of our loan portfolio based on payment activity as of December 31, 2015 by type of loan (in thousands): One- to four- family Home equity Commercial and multifamily Construction and land Manufactured homes Other consumer Commercial business Total Performing $ 139,484 $ 31,146 $ 175,312 $ 57,043 $ 13,736 $ 23,030 $ 19,295 $ 459,046 Nonperforming 1,641 427 - - 62 - - 2,130 Total $ 141,125 $ 31,573 $ 175,312 $ 57,043 $ 13,798 $ 23,030 $ 19,295 $ 461,176 |
Schedule of Impaired Loans, Individually Evaluated | Impaired loans at September 30, 2016 and December 31, 2015 by type of loan were as follows (in thousands): September 30, 2016 Recorded Investment Unpaid Principal Balance Without Allowance With Allowance Related Allowance One- to four- family $ 5,617 $ 2,405 $ 2,873 $ 629 Home equity 985 445 440 97 Commercial and multifamily 3,871 1,237 2,632 389 Construction and land 85 - 85 23 Manufactured homes 387 112 260 53 Other consumer 23 - 23 23 Commercial business 638 146 487 30 Total $ 11,606 $ 4,345 $ 6,800 $ 1,244 December 31, 2015 Recorded Investment Unpaid Principal Balance Without Allowance With Allowance Related Allowance One- to four- family $ 6,011 $ 499 $ 5,280 $ 647 Home equity 994 162 742 110 Commercial and multifamily 1,966 1,430 536 36 Construction and land 91 - 91 18 Manufactured homes 366 - 361 63 Other consumer 5 - 5 - Commercial business 114 - 114 8 Total $ 9,547 $ 2,091 $ 7,129 $ 882 Income on impaired loans for the three and nine months ended September 30, 2016 and September 30, 2015 by type of loan were as follows (in thousands): Three Months Ended Three Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized One- to four- family $ 5,445 $ 58 $ 5,760 $ 70 Home equity 968 4 1,006 10 Commercial and multifamily 4,365 19 2,388 30 Construction and land 86 1 135 2 Manufactured homes 383 6 366 7 Other consumer 24 - 93 2 Commercial business 640 9 138 2 Total $ 11,911 $ 97 $ 9,886 $ 123 Nine months Ended Nine months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized One- to four- family $ 5,533 $ 197 $ 4,957 $ 198 Home equity 944 31 1,115 28 Commercial and multifamily 3,902 152 2,616 78 Construction and land 88 3 157 4 Manufactured homes 377 23 385 20 Other consumer 20 2 63 2 Commercial business 474 27 151 5 Total $ 11,338 $ 435 $ 9,444 $ 335 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Measurements [Abstract] | |
Information about Level in Fair Value Hierarchy for Financial Instruments | The following tables present information about the level in the fair value hierarchy for the Company’s financial assets and liabilities, whether or not recognized or recorded at fair value as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Fair Value Measurements Using: Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 FINANCIAL ASSETS: Cash and cash equivalents $ 55,275 $ 55,275 $ 55,275 $ - $ - Available-for-sale securities 6,996 6,996 - 6,641 355 Loans held for sale 2,424 2,424 - 2,424 - Loans, net 472,207 471,170 - - 471,170 Accrued interest receivable 1,630 1,630 1,630 - - Mortgage servicing rights 3,039 3,039 - - 3,039 FHLB stock 2,146 2,146 - - 2,146 FINANCIAL LIABILITIES: Non-maturity deposits $ 303,478 303,022 - 303,022 - Time deposits 160,005 160,042 - 160,042 - Borrowings 37,453 37,451 - 37,451 - Accrued interest payable 62 62 - 62 - December 31, 2015 Fair Value Measurements Using: Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 FINANCIAL ASSETS: Cash and cash equivalents $ 48,264 $ 48,264 $ 48,264 $ - $ - Available-for-sale securities 6,696 6,696 - 6,268 428 Loans held for sale 2,091 2,091 - 2,091 - Loans, net 454,833 454,854 - - 454,854 Accrued interest receivable 1,608 1,608 1,608 - - Mortgage servicing rights 3,249 3,249 - - 3,249 FHLB Stock 2,212 2,212 - - 2,212 FINANCIAL LIABILITIES: Non-maturity deposits 271,144 271,144 - 271,144 - Time deposits 168,880 168,091 - 168,091 - Borrowings 40,435 40,421 - 40,421 - Accrued interest payable 72 72 - 72 - |
Fair Value of Assets Measured on Recurring Basis | The following table presents the balance of assets measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015 (in thousands): Fair Value at September 30, 2016 Description Total Level 1 Level 2 Level 3 Municipal bonds $ 3,501 $ - $ 3,501 $ - Agency mortgage-backed securities 3,140 - 3,140 - Non-agency mortgage-backed securities 355 - - 355 Mortgage servicing rights 3,039 - - 3,039 Fair Value at December 31, 2015 Description Total Level 1 Level 2 Level 3 Municipal bonds $ 2,096 $ - $ 2,096 $ - Agency mortgage-backed securities 4,172 - 4,172 - Non-agency mortgage-backed securities 428 - - 428 Mortgage servicing rights 3,249 - - 3,249 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Reconciliation of Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) | The following table provides a reconciliation of non-agency mortgage backed securities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended September 30, Nine months Ended September 30, 2016 2015 2016 2015 Beginning balance, at fair value $ 379 $ 483 $ 428 $ 2,345 OTTI impairment losses - - - - Principal payments (29 ) (14 ) (90 ) (149 ) Sales - - (1,702 ) Change in unrealized loss 5 (1 ) 17 (26 ) Ending balance, at fair value $ 355 $ 468 $ 355 $ 468 |
Fair Value of Assets Measured on Nonrecurring Basis | The following tables present the balance of assets measured at fair value on a nonrecurring basis at the dates indicated (in thousands): Fair Value at September 30, 2016 Total Level 1 Level 2 Level 3 OREO and repossessed assets $ 884 $ - $ - $ 884 Impaired loans 11,145 - - 11,145 Fair Value at December 31, 2015 Total Level 1 Level 2 Level 3 OREO and repossessed assets $ 769 $ - $ - $ 769 Impaired loans 9,220 - - 9,220 |
Recurring [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value of Assets, Quantitative Information | The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring basis at September 30, 2016: Financial Instrument Valuation Technique Unobservable Input(s) Range (Weighted Average) Mortgage Servicing Rights Discounted cash flow Prepayment speed assumption 106-329% (216%) Discount rate 8-12% (10%) Non-agency mortgage-backed securities Discounted cash flow Discount rate (8%) |
Nonrecurring [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value of Assets, Quantitative Information | The following table provides a description of the valuation technique, observable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a nonrecurring basis at September 30, 2016: Financial Instrument Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) OREO Market approach Adjustment for differences between comparable sales 0-8.0% (5.4%) Impaired loans Market approach Adjustment for differences between comparable sales 0-100% (9.3%) |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Mortgage Servicing Rights [Abstract] | |
Mortgage Service Rights | A summary of the change in the balance of mortgage servicing rights during the three and nine months ended September 30, 2016 and 2015 were as follows (in thousands): Three Months Ended September 30, Nine months Ended September 30, 2016 2015 2016 2015 Beginning balance, at fair value $ 3,026 $ 3,271 $ 3,249 $ 3,028 Servicing rights that result from transfers of financial assets 205 151 464 582 Changes in fair value: Due to changes in model inputs or assumptions (1) 17 (22 ) (174 ) 152 Other (2) (209 ) (174 ) (500 ) (536 ) Ending balance, at fair value $ 3,039 $ 3,226 $ 3,039 $ 3,226 (1) (2) |
Mortgage Service Rights Assumptions | The key economic assumptions used in determining the fair value of mortgage servicing rights at the dates indicated are as follows: At September 30, 2016 2015 Prepayment speed (Public Securities Association “PSA” model) 216 % 192 % Weighted-average life (years) 5.86 6.43 Yield to maturity discount rate 10.0 % 10.0 % |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Common Share [Abstract] | |
Earnings per Common Share | Earnings per common share are summarized for the periods presented in the following table (dollars in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net income $ 1,454 $ 1,115 $ 3,814 $ 3,570 Weighted average number of shares outstanding, basic 2,490 2,465 2,483 2,500 Effect of potentially dilutive common shares 78 87 74 86 Weighted average number of shares outstanding, diluted 2,568 2,552 2,557 2,586 Earnings per share, basic $ 0.58 $ 0.45 $ 1.54 $ 1.43 Earnings per share, diluted $ 0.57 $ 0.44 $ 1.48 $ 1.38 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stock-based Compensation [Abstract] | |
Stock Option Plan Awards | The following is a summary of the Company's stock option awards during the nine months ended September 30, 2016: Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term In Years Aggregate Intrinsic Value Outstanding at the beginning of the year 184,407 $ 14.47 6.97 $ 1,490,009 Granted 10,993 $ 22.31 Exercised (21,656 ) $ 10.68 Forfeited (3,487 ) $ 17.23 Expired - - Outstanding at September 30, 2016 170,257 $ 15.40 6.69 $ 1,545,296 Exercisable 90,193 $ 13.67 5.80 $ 974,685 Expected to vest, assuming a 0% forfeiture rate over the vesting term 80,064 $ 17.35 7.70 $ 570,610 |
Valuation Assumptions Used in Estimating Fair Value of Option Awards | The fair value of each option award granted is estimated on the date of grant using a Black-Scholes model. The assumptions used for the nine months ended September 30, 2016 are presented in the table below: Annual dividend yield 1.03 % Expected volatility 25.48 % Risk-free interest rate 1.64 % Expected term 6.92 years Weighted-average grant date fair value per option granted $ 5.78 |
Summary of Outstanding Restricted Stock Awards | The following is a summary of the Company’s outstanding restricted stock awards during the nine months ended September 30, 2016: Non-vested Shares Shares Weighted-Average Grant-Date Fair Value Per Share Non-vested at January 1, 2016 31,553 $ 16.32 Granted 11,606 22.31 Vested (15,962 ) 17.59 Forfeited (1,059 ) 17.36 Expired - - Non-vested at September 30, 2016 26,138 $ 18.08 Expected to vest assuming a 0% forfeiture rate over the vesting term 26,138 $ 18.08 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 6,713 | $ 6,449 |
Gross unrealized gains | 315 | 286 |
Gross unrealized losses | (32) | (39) |
Estimated fair value | 6,996 | 6,696 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 3,267 | 1,912 |
Gross unrealized gains | 235 | 184 |
Gross unrealized losses | (1) | 0 |
Estimated fair value | 3,501 | 2,096 |
Agency Mortgage-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 3,074 | 4,088 |
Gross unrealized gains | 80 | 102 |
Gross unrealized losses | (14) | (18) |
Estimated fair value | 3,140 | 4,172 |
Non-agency Mortgage-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 372 | 449 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (17) | (21) |
Estimated fair value | $ 355 | $ 428 |
Investments, Mortgage-backed Se
Investments, Mortgage-backed Securities by Contractual Maturity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Available-for-sale Securities by Contractual Maturity, Amortized Cost [Abstract] | |||||
Due within five years | $ 1,111,000 | $ 1,111,000 | |||
Due in five to ten years | 504,000 | 504,000 | |||
Due after ten years | 5,098,000 | 5,098,000 | |||
Total | 6,713,000 | 6,713,000 | |||
Available-for-sale Securities by Contractual Maturity, Fair Value [Abstract] | |||||
Due within five years | 1,111,000 | 1,111,000 | |||
Due in five to ten years | 529,000 | 529,000 | |||
Due after ten years | 5,356,000 | 5,356,000 | |||
Total | 6,996,000 | 6,996,000 | |||
Securities pledged to secure Washington state public funds | 0 | 0 | $ 0 | ||
Sales of available for sale securities | $ 0 | $ 0 | $ 0 | ||
Non-agency Mortgage-backed Securities [Member] | |||||
Available-for-sale Securities by Contractual Maturity, Fair Value [Abstract] | |||||
Sales of available for sale securities | $ 1,700,000 | ||||
Gross losses on sale of securities | 31,000 | ||||
Gross gains on sale of securities | $ 0 |
Investments, Securities in Cont
Investments, Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 2,059 | $ 0 |
12 months or longer | 355 | 1,798 |
Total | 2,414 | 1,798 |
Continuous Unrealized Loss Position, Unrealized Loss [Abstract] | ||
Less than 12 months | (15) | 0 |
12 months or longer | (17) | (39) |
Total | (32) | (39) |
Municipal Bonds [Member] | ||
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | 890 | |
12 months or longer | 0 | |
Total | 890 | |
Continuous Unrealized Loss Position, Unrealized Loss [Abstract] | ||
Less than 12 months | (1) | |
12 months or longer | 0 | |
Total | (1) | |
Agency Mortgage-backed Securities [Member] | ||
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | 1,169 | 0 |
12 months or longer | 0 | 1,370 |
Total | 1,169 | 1,370 |
Continuous Unrealized Loss Position, Unrealized Loss [Abstract] | ||
Less than 12 months | (14) | 0 |
12 months or longer | 0 | (18) |
Total | (14) | (18) |
Non-agency Mortgage-backed Securities [Member] | ||
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | 0 | 0 |
12 months or longer | 355 | 428 |
Total | 355 | 428 |
Continuous Unrealized Loss Position, Unrealized Loss [Abstract] | ||
Less than 12 months | 0 | 0 |
12 months or longer | (17) | (21) |
Total | $ (17) | $ (21) |
Investments, Other Than Tempora
Investments, Other Than Temporary Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other than temporary impairment, credit losses recognized in earnings [Roll Forward] | ||||
Estimated credit losses, beginning balance | $ 0 | $ 0 | $ 0 | $ 450 |
Additions for credit losses not previously recognized | 0 | 0 | 0 | 0 |
Reduction for increases in cash flows | 0 | 0 | 0 | 0 |
Reduction of related OTTI due to sales | 0 | 0 | 0 | (450) |
Reduction for realized losses | 0 | 0 | 0 | 0 |
Estimated credit losses, ending balance | $ 0 | $ 0 | $ 0 | $ 0 |
Loans, Composition of Loan Port
Loans, Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Composition of Loan Portfolio [Abstract] | ||||||
Total loans | $ 478,983 | $ 461,176 | ||||
Deferred fees | (1,917) | (1,707) | ||||
Total loans, gross | 477,066 | 459,469 | ||||
Allowance for loan losses | (4,859) | $ (4,838) | (4,636) | $ (4,682) | $ (4,572) | $ (4,387) |
Total loans, net | 472,207 | 454,833 | ||||
One-to Four- Family [Member] | ||||||
Composition of Loan Portfolio [Abstract] | ||||||
Total loans | 151,992 | 141,125 | ||||
Allowance for loan losses | (1,658) | (1,713) | (1,839) | (1,768) | (1,594) | (1,442) |
Home Equity [Member] | ||||||
Composition of Loan Portfolio [Abstract] | ||||||
Total loans | 30,297 | 31,573 | ||||
Allowance for loan losses | (424) | (501) | (607) | (519) | (509) | (601) |
Commercial and Multifamily [Member] | ||||||
Composition of Loan Portfolio [Abstract] | ||||||
Total loans | 170,258 | 175,312 | ||||
Allowance for loan losses | (1,360) | (1,377) | (921) | (1,341) | (1,507) | (1,244) |
Construction and Land [Member] | ||||||
Composition of Loan Portfolio [Abstract] | ||||||
Total loans | 58,902 | 57,043 | ||||
Allowance for loan losses | (373) | (388) | (382) | (117) | (345) | (399) |
Manufactured Homes [Member] | ||||||
Composition of Loan Portfolio [Abstract] | ||||||
Total loans | 15,525 | 13,798 | ||||
Allowance for loan losses | (177) | (189) | (301) | (192) | (193) | (193) |
Other Consumer [Member] | ||||||
Composition of Loan Portfolio [Abstract] | ||||||
Total loans | 25,570 | 23,030 | ||||
Allowance for loan losses | (198) | (221) | (188) | (169) | (183) | (167) |
Real Estate Loans [Member] | ||||||
Composition of Loan Portfolio [Abstract] | ||||||
Total loans | 411,449 | 405,053 | ||||
Real Estate Loans [Member] | One-to Four- Family [Member] | ||||||
Composition of Loan Portfolio [Abstract] | ||||||
Total loans | 151,992 | 141,125 | ||||
Real Estate Loans [Member] | Home Equity [Member] | ||||||
Composition of Loan Portfolio [Abstract] | ||||||
Total loans | 30,297 | 31,573 | ||||
Real Estate Loans [Member] | Commercial and Multifamily [Member] | ||||||
Composition of Loan Portfolio [Abstract] | ||||||
Total loans | 170,258 | 175,312 | ||||
Real Estate Loans [Member] | Construction and Land [Member] | ||||||
Composition of Loan Portfolio [Abstract] | ||||||
Total loans | 58,902 | 57,043 | ||||
Consumer Loans [Member] | ||||||
Composition of Loan Portfolio [Abstract] | ||||||
Total loans | 41,095 | 36,828 | ||||
Consumer Loans [Member] | Manufactured Homes [Member] | ||||||
Composition of Loan Portfolio [Abstract] | ||||||
Total loans | 15,525 | 13,798 | ||||
Consumer Loans [Member] | Other Consumer [Member] | ||||||
Composition of Loan Portfolio [Abstract] | ||||||
Total loans | 25,570 | 23,030 | ||||
Commercial Business Loans [Member] | ||||||
Composition of Loan Portfolio [Abstract] | ||||||
Total loans | 26,439 | 19,295 | ||||
Allowance for loan losses | $ (181) | $ (171) | $ (157) | $ (134) | $ (145) | $ (108) |
Loans, Allowance for Loan Losse
Loans, Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Allowance for loan losses [Abstract] | ||||||
Individually evaluated for impairment | $ 1,244 | $ 882 | ||||
Collectively evaluated for impairment | 3,615 | 3,754 | ||||
Ending balance | 4,859 | $ 4,838 | 4,636 | $ 4,682 | $ 4,572 | $ 4,387 |
Loans receivable [Abstract] | ||||||
Individually evaluated for impairment | 11,145 | 9,220 | ||||
Collectively evaluated for impairment | 467,838 | 451,956 | ||||
Total loans | 478,983 | 461,176 | ||||
One-to Four- Family [Member] | ||||||
Allowance for loan losses [Abstract] | ||||||
Individually evaluated for impairment | 629 | 647 | ||||
Collectively evaluated for impairment | 1,029 | 1,192 | ||||
Ending balance | 1,658 | 1,713 | 1,839 | 1,768 | 1,594 | 1,442 |
Loans receivable [Abstract] | ||||||
Individually evaluated for impairment | 5,278 | 5,779 | ||||
Collectively evaluated for impairment | 146,714 | 135,346 | ||||
Total loans | 151,992 | 141,125 | ||||
Home Equity [Member] | ||||||
Allowance for loan losses [Abstract] | ||||||
Individually evaluated for impairment | 97 | 110 | ||||
Collectively evaluated for impairment | 327 | 497 | ||||
Ending balance | 424 | 501 | 607 | 519 | 509 | 601 |
Loans receivable [Abstract] | ||||||
Individually evaluated for impairment | 885 | 904 | ||||
Collectively evaluated for impairment | 29,412 | 30,669 | ||||
Total loans | 30,297 | 31,573 | ||||
Commercial and Multifamily [Member] | ||||||
Allowance for loan losses [Abstract] | ||||||
Individually evaluated for impairment | 389 | 36 | ||||
Collectively evaluated for impairment | 971 | 885 | ||||
Ending balance | 1,360 | 1,377 | 921 | 1,341 | 1,507 | 1,244 |
Loans receivable [Abstract] | ||||||
Individually evaluated for impairment | 3,869 | 1,966 | ||||
Collectively evaluated for impairment | 166,389 | 173,346 | ||||
Total loans | 170,258 | 175,312 | ||||
Construction and Land [Member] | ||||||
Allowance for loan losses [Abstract] | ||||||
Individually evaluated for impairment | 23 | 18 | ||||
Collectively evaluated for impairment | 350 | 364 | ||||
Ending balance | 373 | 388 | 382 | 117 | 345 | 399 |
Loans receivable [Abstract] | ||||||
Individually evaluated for impairment | 85 | 91 | ||||
Collectively evaluated for impairment | 58,817 | 56,952 | ||||
Total loans | 58,902 | 57,043 | ||||
Manufactured Homes [Member] | ||||||
Allowance for loan losses [Abstract] | ||||||
Individually evaluated for impairment | 53 | 63 | ||||
Collectively evaluated for impairment | 124 | 238 | ||||
Ending balance | 177 | 189 | 301 | 192 | 193 | 193 |
Loans receivable [Abstract] | ||||||
Individually evaluated for impairment | 372 | 361 | ||||
Collectively evaluated for impairment | 15,153 | 13,437 | ||||
Total loans | 15,525 | 13,798 | ||||
Other Consumer [Member] | ||||||
Allowance for loan losses [Abstract] | ||||||
Individually evaluated for impairment | 23 | 0 | ||||
Collectively evaluated for impairment | 175 | 188 | ||||
Ending balance | 198 | 221 | 188 | 169 | 183 | 167 |
Loans receivable [Abstract] | ||||||
Individually evaluated for impairment | 23 | 5 | ||||
Collectively evaluated for impairment | 25,547 | 23,025 | ||||
Total loans | 25,570 | 23,030 | ||||
Commercial Business [Member] | ||||||
Allowance for loan losses [Abstract] | ||||||
Individually evaluated for impairment | 30 | 8 | ||||
Collectively evaluated for impairment | 151 | 149 | ||||
Ending balance | 181 | 171 | 157 | 134 | 145 | 108 |
Loans receivable [Abstract] | ||||||
Individually evaluated for impairment | 633 | 114 | ||||
Collectively evaluated for impairment | 25,806 | 19,181 | ||||
Total loans | 26,439 | 19,295 | ||||
Unallocated [Member] | ||||||
Allowance for loan losses [Abstract] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 488 | 241 | ||||
Ending balance | 488 | $ 278 | 241 | $ 442 | $ 96 | $ 233 |
Loans receivable [Abstract] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Total loans | $ 0 | $ 0 |
Loans, Activity in Allowance fo
Loans, Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Summary of activity in allowance for loan losses [Roll Forward] | ||||
Beginning allowance | $ 4,838 | $ 4,572 | $ 4,636 | $ 4,387 |
Charge-offs | (24) | (18) | (146) | (157) |
Recoveries | 45 | 28 | 119 | 52 |
Provision | 0 | 100 | 250 | 400 |
Ending allowance | 4,859 | 4,682 | 4,859 | 4,682 |
One-to Four- Family [Member] | ||||
Summary of activity in allowance for loan losses [Roll Forward] | ||||
Beginning allowance | 1,713 | 1,594 | 1,839 | 1,442 |
Charge-offs | 0 | 0 | (72) | (21) |
Recoveries | 0 | 0 | 0 | 0 |
Provision | (55) | 174 | (109) | 347 |
Ending allowance | 1,658 | 1,768 | 1,658 | 1,768 |
Home Equity [Member] | ||||
Summary of activity in allowance for loan losses [Roll Forward] | ||||
Beginning allowance | 501 | 509 | 607 | 601 |
Charge-offs | (14) | 0 | (14) | (19) |
Recoveries | 10 | 25 | 0 | 35 |
Provision | (73) | (15) | (169) | (98) |
Ending allowance | 424 | 519 | 424 | 519 |
Commercial and Multifamily [Member] | ||||
Summary of activity in allowance for loan losses [Roll Forward] | ||||
Beginning allowance | 1,377 | 1,507 | 921 | 1,244 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | (17) | (166) | 439 | 97 |
Ending allowance | 1,360 | 1,341 | 1,360 | 1,341 |
Construction and Land [Member] | ||||
Summary of activity in allowance for loan losses [Roll Forward] | ||||
Beginning allowance | 388 | 345 | 382 | 399 |
Charge-offs | 0 | 0 | 0 | (40) |
Recoveries | 18 | 1 | 18 | 1 |
Provision | (33) | (229) | (27) | (242) |
Ending allowance | 373 | 117 | 373 | 117 |
Manufactured Homes [Member] | ||||
Summary of activity in allowance for loan losses [Roll Forward] | ||||
Beginning allowance | 189 | 193 | 301 | 193 |
Charge-offs | 0 | 0 | 0 | (32) |
Recoveries | 2 | 0 | 75 | 5 |
Provision | (14) | (1) | (199) | 24 |
Ending allowance | 177 | 192 | 177 | 192 |
Other Consumer [Member] | ||||
Summary of activity in allowance for loan losses [Roll Forward] | ||||
Beginning allowance | 221 | 183 | 188 | 167 |
Charge-offs | (10) | (18) | (31) | (45) |
Recoveries | 15 | 2 | 7 | 11 |
Provision | (28) | 2 | 34 | 37 |
Ending allowance | 198 | 169 | 198 | 169 |
Commercial Business [Member] | ||||
Summary of activity in allowance for loan losses [Roll Forward] | ||||
Beginning allowance | 171 | 145 | 157 | 108 |
Charge-offs | 0 | 0 | (29) | 0 |
Recoveries | 0 | 0 | 19 | 0 |
Provision | 10 | (11) | 34 | 26 |
Ending allowance | 181 | 134 | 181 | 134 |
Unallocated [Member] | ||||
Summary of activity in allowance for loan losses [Roll Forward] | ||||
Beginning allowance | 278 | 96 | 241 | 233 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 210 | 346 | 247 | 209 |
Ending allowance | $ 488 | $ 442 | $ 488 | $ 442 |
Loans, Credit Quality (Details)
Loans, Credit Quality (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 478,983 | $ 461,176 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 466,951 | 447,282 |
Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,642 | 8,493 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,439 | 2,872 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 5,951 | 2,529 |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
One-to Four- Family [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 151,992 | 141,125 |
One-to Four- Family [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 148,008 | 136,879 |
One-to Four- Family [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,167 | 1,015 |
One-to Four- Family [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,408 | 1,409 |
One-to Four- Family [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,409 | 1,822 |
One-to Four- Family [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
One-to Four- Family [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Home Equity [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 30,297 | 31,573 |
Home Equity [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 29,106 | 30,310 |
Home Equity [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 537 | 609 |
Home Equity [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Home Equity [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 654 | 654 |
Home Equity [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Home Equity [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial and Multifamily [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 170,258 | 175,312 |
Commercial and Multifamily [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 164,970 | 169,072 |
Commercial and Multifamily [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,943 | 4,810 |
Commercial and Multifamily [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 1,430 |
Commercial and Multifamily [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,345 | 0 |
Commercial and Multifamily [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial and Multifamily [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Construction and Land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 58,902 | 57,043 |
Construction and Land [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 58,057 | 55,984 |
Construction and Land [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 845 | 1,059 |
Construction and Land [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Construction and Land [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Construction and Land [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Construction and Land [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Manufactured Homes [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 15,525 | 13,798 |
Manufactured Homes [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 15,277 | 13,621 |
Manufactured Homes [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 77 | 96 |
Manufactured Homes [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 31 | 33 |
Manufactured Homes [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 140 | 48 |
Manufactured Homes [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Manufactured Homes [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Other Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 25,570 | 23,030 |
Other Consumer [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 25,496 | 22,967 |
Other Consumer [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 51 | 58 |
Other Consumer [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Other Consumer [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 23 | 5 |
Other Consumer [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Other Consumer [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Business [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 26,439 | 19,295 |
Commercial Business [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 26,037 | 18,449 |
Commercial Business [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 22 | 846 |
Commercial Business [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Business [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 380 | 0 |
Commercial Business [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Business [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans, Nonaccrual and Past Due
Loans, Nonaccrual and Past Due Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 4,219 | $ 1,528 |
Past Due | 2,861 | 5,027 |
90 Days and Greater Past Due and Still Accruing | 0 | 117 |
Current | 476,122 | 456,149 |
Total loans | $ 478,983 | 461,176 |
Maximum [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Period past due for loans to be automatically placed on nonaccrual | 90 days | |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 673 | 3,347 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 640 | 386 |
90 Days and Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,548 | 1,177 |
One-to Four- Family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 1,189 | 1,157 |
Past Due | 1,436 | 3,716 |
90 Days and Greater Past Due and Still Accruing | 0 | 117 |
Current | 150,556 | 137,409 |
Total loans | 151,992 | 141,125 |
One-to Four- Family [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 2,453 |
One-to Four- Family [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 459 | 265 |
One-to Four- Family [Member] | 90 Days and Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 977 | 881 |
Home Equity [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 427 | 344 |
Past Due | 732 | 708 |
90 Days and Greater Past Due and Still Accruing | 0 | 0 |
Current | 29,565 | 30,865 |
Total loans | 30,297 | 31,573 |
Home Equity [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 348 | 352 |
Home Equity [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 153 | 60 |
Home Equity [Member] | 90 Days and Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 231 | 296 |
Commercial and Multifamily [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 2,337 | 0 |
Past Due | 228 | 203 |
90 Days and Greater Past Due and Still Accruing | 0 | 0 |
Current | 170,030 | 175,109 |
Total loans | 170,258 | 175,312 |
Commercial and Multifamily [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 203 |
Commercial and Multifamily [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial and Multifamily [Member] | 90 Days and Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 228 | 0 |
Construction and Land [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 0 | 0 |
Past Due | 0 | 65 |
90 Days and Greater Past Due and Still Accruing | 0 | 0 |
Current | 58,902 | 56,978 |
Total loans | 58,902 | 57,043 |
Construction and Land [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 65 |
Construction and Land [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Construction and Land [Member] | 90 Days and Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Manufactured Homes [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 112 | 27 |
Past Due | 289 | 130 |
90 Days and Greater Past Due and Still Accruing | 0 | 0 |
Current | 15,236 | 13,668 |
Total loans | 15,525 | 13,798 |
Manufactured Homes [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 177 | 103 |
Manufactured Homes [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 27 |
Manufactured Homes [Member] | 90 Days and Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 112 | 0 |
Other Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 154 | 0 |
Past Due | 29 | 43 |
90 Days and Greater Past Due and Still Accruing | 0 | 0 |
Current | 25,541 | 22,987 |
Total loans | 25,570 | 23,030 |
Other Consumer [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1 | 17 |
Other Consumer [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 28 | 26 |
Other Consumer [Member] | 90 Days and Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial Business [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 147 | 162 |
90 Days and Greater Past Due and Still Accruing | 0 | 0 |
Current | 26,292 | 19,133 |
Total loans | 26,439 | 19,295 |
Commercial Business [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 147 | 154 |
Commercial Business [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 8 |
Commercial Business [Member] | 90 Days and Greater Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 0 | $ 0 |
Loans, Credit Risk Profile Base
Loans, Credit Risk Profile Based on Payment Activity (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | $ 478,983 | $ 461,176 |
Minimum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Period past due for loans still accruing interest to be considered nonperforming | 90 days | |
Period of performance according to modified terms for TDR to be removed from nonperforming status | 9 months | |
Period past due for TDRs loans to be considered nonperforming | 30 days | |
Performing [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | $ 474,114 | 459,046 |
Nonperforming [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 4,869 | 2,130 |
One-to Four- Family [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 151,992 | 141,125 |
One-to Four- Family [Member] | Performing [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 150,437 | 139,484 |
One-to Four- Family [Member] | Nonperforming [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 1,555 | 1,641 |
Home Equity [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 30,297 | 31,573 |
Home Equity [Member] | Performing [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 29,717 | 31,146 |
Home Equity [Member] | Nonperforming [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 580 | 427 |
Commercial and Multifamily [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 170,258 | 175,312 |
Commercial and Multifamily [Member] | Performing [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 167,921 | 175,312 |
Commercial and Multifamily [Member] | Nonperforming [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 2,337 | 0 |
Construction and Land [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 58,902 | 57,043 |
Construction and Land [Member] | Performing [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 58,902 | 57,043 |
Construction and Land [Member] | Nonperforming [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 0 | 0 |
Manufactured Homes [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 15,525 | 13,798 |
Manufactured Homes [Member] | Performing [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 15,377 | 13,736 |
Manufactured Homes [Member] | Nonperforming [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 148 | 62 |
Other Consumer [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 25,570 | 23,030 |
Other Consumer [Member] | Performing [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 25,570 | 23,030 |
Other Consumer [Member] | Nonperforming [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 0 | 0 |
Commercial Business [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 26,439 | 19,295 |
Commercial Business [Member] | Performing [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 26,190 | 19,295 |
Commercial Business [Member] | Nonperforming [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | $ 249 | $ 0 |
Loans, Loans Individually Evalu
Loans, Loans Individually Evaluated for Impairment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||||
Unpaid principal balance | $ 11,606,000 | $ 11,606,000 | $ 9,547,000 | ||
Recorded investment, without allowance | 4,345,000 | 4,345,000 | 2,091,000 | ||
Recorded investment, with allowance | 6,800,000 | 6,800,000 | 7,129,000 | ||
Related allowance | 1,244,000 | 1,244,000 | 882,000 | ||
Average recorded investment | 11,911,000 | $ 9,886,000 | 11,338,000 | $ 9,444,000 | |
Interest income recognized | 97,000 | 123,000 | 435,000 | 335,000 | |
Impaired loans, interest income forgone | 95,000 | 72,000 | |||
Commitments to lend additional funds to borrowers whose loans were classified as nonaccrual, TDR or impaired | 0 | 0 | 0 | ||
One-to Four- Family [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid principal balance | 5,617,000 | 5,617,000 | 6,011,000 | ||
Recorded investment, without allowance | 2,405,000 | 2,405,000 | 499,000 | ||
Recorded investment, with allowance | 2,873,000 | 2,873,000 | 5,280,000 | ||
Related allowance | 629,000 | 629,000 | 647,000 | ||
Average recorded investment | 5,445,000 | 5,760,000 | 5,533,000 | 4,957,000 | |
Interest income recognized | 58,000 | 70,000 | 197,000 | 198,000 | |
Home Equity [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid principal balance | 985,000 | 985,000 | 994,000 | ||
Recorded investment, without allowance | 445,000 | 445,000 | 162,000 | ||
Recorded investment, with allowance | 440,000 | 440,000 | 742,000 | ||
Related allowance | 97,000 | 97,000 | 110,000 | ||
Average recorded investment | 968,000 | 1,006,000 | 944,000 | 1,115,000 | |
Interest income recognized | 4,000 | 10,000 | 31,000 | 28,000 | |
Commercial and Multifamily [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid principal balance | 3,871,000 | 3,871,000 | 1,966,000 | ||
Recorded investment, without allowance | 1,237,000 | 1,237,000 | 1,430,000 | ||
Recorded investment, with allowance | 2,632,000 | 2,632,000 | 536,000 | ||
Related allowance | 389,000 | 389,000 | 36,000 | ||
Average recorded investment | 4,365,000 | 2,388,000 | 3,902,000 | 2,616,000 | |
Interest income recognized | 19,000 | 30,000 | 152,000 | 78,000 | |
Construction and Land [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid principal balance | 85,000 | 85,000 | 91,000 | ||
Recorded investment, without allowance | 0 | 0 | 0 | ||
Recorded investment, with allowance | 85,000 | 85,000 | 91,000 | ||
Related allowance | 23,000 | 23,000 | 18,000 | ||
Average recorded investment | 86,000 | 135,000 | 88,000 | 157,000 | |
Interest income recognized | 1,000 | 2,000 | 3,000 | 4,000 | |
Manufactured Homes [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid principal balance | 387,000 | 387,000 | 366,000 | ||
Recorded investment, without allowance | 112,000 | 112,000 | 0 | ||
Recorded investment, with allowance | 260,000 | 260,000 | 361,000 | ||
Related allowance | 53,000 | 53,000 | 63,000 | ||
Average recorded investment | 383,000 | 366,000 | 377,000 | 385,000 | |
Interest income recognized | 6,000 | 7,000 | 23,000 | 20,000 | |
Other Consumer [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid principal balance | 23,000 | 23,000 | 5,000 | ||
Recorded investment, without allowance | 0 | 0 | 0 | ||
Recorded investment, with allowance | 23,000 | 23,000 | 5,000 | ||
Related allowance | 23,000 | 23,000 | 0 | ||
Average recorded investment | 24,000 | 93,000 | 20,000 | 63,000 | |
Interest income recognized | 0 | 2,000 | 2,000 | 2,000 | |
Commercial Business [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid principal balance | 638,000 | 638,000 | 114,000 | ||
Recorded investment, without allowance | 146,000 | 146,000 | 0 | ||
Recorded investment, with allowance | 487,000 | 487,000 | 114,000 | ||
Related allowance | 30,000 | 30,000 | $ 8,000 | ||
Average recorded investment | 640,000 | 138,000 | 474,000 | 151,000 | |
Interest income recognized | $ 9,000 | $ 2,000 | $ 27,000 | $ 5,000 |
Loans, Troubled Debt Restructur
Loans, Troubled Debt Restructurings (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($)Loan | Sep. 30, 2015Loan | Sep. 30, 2016USD ($)Loan | Sep. 30, 2015Loan | Dec. 31, 2015USD ($) | |
Loans [Abstract] | |||||
Loans classified as TDRs | $ | $ 3,800,000 | $ 3,800,000 | $ 6,000,000 | ||
Number of contracts | 0 | 0 | |||
Loans modified as TDRs within the previous 12 months | 0 | 0 | 0 | 0 | |
TDR loans for which default occurred within 12 months of restructure date | 0 | 0 | 0 | 0 | |
Allowance for loan losses allocated to TDRs | $ | $ 630,000 | $ 630,000 | $ 599,000 |
Fair Value Measurements, Fair V
Fair Value Measurements, Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
FINANCIAL ASSETS [Abstract] | ||||||
Available-for-sale securities | $ 6,996 | $ 6,696 | ||||
Mortgage servicing rights | 3,039 | $ 3,026 | 3,249 | $ 3,226 | $ 3,271 | $ 3,028 |
Carrying Value [Member] | ||||||
FINANCIAL ASSETS [Abstract] | ||||||
Cash and cash equivalents | 55,275 | 48,264 | ||||
Available-for-sale securities | 6,996 | 6,696 | ||||
Loans held for sale | 2,424 | 2,091 | ||||
Loans, net | 472,207 | 454,833 | ||||
Accrued interest receivable | 1,630 | 1,608 | ||||
Mortgage servicing rights | 3,039 | 3,249 | ||||
FHLB Stock | 2,146 | 2,212 | ||||
FINANCIAL LIABILITIES [Abstract] | ||||||
Non-maturity deposits | 303,478 | 271,144 | ||||
Time deposits | 160,005 | 168,880 | ||||
Borrowings | 37,453 | 40,435 | ||||
Accrued interest payable | 62 | 72 | ||||
Estimated Fair Value [Member] | ||||||
FINANCIAL ASSETS [Abstract] | ||||||
Cash and cash equivalents | 55,275 | 48,264 | ||||
Available-for-sale securities | 6,996 | 6,696 | ||||
Loans held for sale | 2,424 | 2,091 | ||||
Loans, net | 471,170 | 454,854 | ||||
Accrued interest receivable | 1,630 | 1,608 | ||||
Mortgage servicing rights | 3,039 | 3,249 | ||||
FHLB Stock | 2,146 | 2,212 | ||||
FINANCIAL LIABILITIES [Abstract] | ||||||
Non-maturity deposits | 303,022 | 271,144 | ||||
Time deposits | 160,042 | 168,091 | ||||
Borrowings | 37,451 | 40,421 | ||||
Accrued interest payable | 62 | 72 | ||||
Estimated Fair Value [Member] | Level 1 [Member] | ||||||
FINANCIAL ASSETS [Abstract] | ||||||
Cash and cash equivalents | 55,275 | 48,264 | ||||
Available-for-sale securities | 0 | 0 | ||||
Loans held for sale | 0 | 0 | ||||
Loans, net | 0 | 0 | ||||
Accrued interest receivable | 1,630 | 1,608 | ||||
Mortgage servicing rights | 0 | 0 | ||||
FHLB Stock | 0 | 0 | ||||
FINANCIAL LIABILITIES [Abstract] | ||||||
Non-maturity deposits | 0 | 0 | ||||
Time deposits | 0 | 0 | ||||
Borrowings | 0 | 0 | ||||
Accrued interest payable | 0 | 0 | ||||
Estimated Fair Value [Member] | Level 2 [Member] | ||||||
FINANCIAL ASSETS [Abstract] | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Available-for-sale securities | 6,641 | 6,268 | ||||
Loans held for sale | 2,424 | 2,091 | ||||
Loans, net | 0 | 0 | ||||
Accrued interest receivable | 0 | 0 | ||||
Mortgage servicing rights | 0 | 0 | ||||
FHLB Stock | 0 | 0 | ||||
FINANCIAL LIABILITIES [Abstract] | ||||||
Non-maturity deposits | 303,022 | 271,144 | ||||
Time deposits | 160,042 | 168,091 | ||||
Borrowings | 37,451 | 40,421 | ||||
Accrued interest payable | 62 | 72 | ||||
Estimated Fair Value [Member] | Level 3 [Member] | ||||||
FINANCIAL ASSETS [Abstract] | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Available-for-sale securities | 355 | 428 | ||||
Loans held for sale | 0 | 0 | ||||
Loans, net | 471,170 | 454,854 | ||||
Accrued interest receivable | 0 | 0 | ||||
Mortgage servicing rights | 3,039 | 3,249 | ||||
FHLB Stock | 2,146 | 2,212 | ||||
FINANCIAL LIABILITIES [Abstract] | ||||||
Non-maturity deposits | 0 | 0 | ||||
Time deposits | 0 | 0 | ||||
Borrowings | 0 | 0 | ||||
Accrued interest payable | $ 0 | $ 0 |
Fair Value Measurements, Recurr
Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset transfers from Level 1 to Level 2 | $ 0 | $ 0 | $ 0 | $ 0 | |
Asset transfers from Level 2 into Level 3 | 0 | $ 0 | 0 | $ 0 | |
Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Municipal bonds | 3,501 | 3,501 | $ 2,096 | ||
Agency mortgage-backed securities | 3,140 | 3,140 | 4,172 | ||
Non-agency mortgage-backed securities | 355 | 355 | 428 | ||
Mortgage servicing rights | 3,039 | 3,039 | 3,249 | ||
Liabilities carried at fair value | 0 | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Municipal bonds | 0 | 0 | 0 | ||
Agency mortgage-backed securities | 0 | 0 | 0 | ||
Non-agency mortgage-backed securities | 0 | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | 0 | ||
Recurring [Member] | Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Municipal bonds | 3,501 | 3,501 | 2,096 | ||
Agency mortgage-backed securities | 3,140 | 3,140 | 4,172 | ||
Non-agency mortgage-backed securities | 0 | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Municipal bonds | 0 | 0 | 0 | ||
Agency mortgage-backed securities | 0 | 0 | 0 | ||
Non-agency mortgage-backed securities | 355 | 355 | 428 | ||
Mortgage servicing rights | 3,039 | 3,039 | 3,249 | ||
Nonrecurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
OREO and repossessed assets | 884 | 884 | 769 | ||
Impaired loans | 11,145 | 11,145 | 9,220 | ||
Liabilities carried at fair value | 0 | 0 | 0 | ||
Nonrecurring [Member] | Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
OREO and repossessed assets | 0 | 0 | 0 | ||
Impaired loans | 0 | 0 | 0 | ||
Nonrecurring [Member] | Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
OREO and repossessed assets | 0 | 0 | 0 | ||
Impaired loans | 0 | 0 | 0 | ||
Nonrecurring [Member] | Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
OREO and repossessed assets | 884 | 884 | 769 | ||
Impaired loans | $ 11,145 | $ 11,145 | $ 9,220 |
Fair Value Measurements, Quanti
Fair Value Measurements, Quantitative Information (Details) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Prepayment speed assumption | 216.00% | 192.00% |
Recurring [Member] | Level 3 [Member] | Mortgage Servicing Rights [Member] | Discounted Cash Flow [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Prepayment speed assumption | 106.00% | |
Discount rate | 8.00% | |
Recurring [Member] | Level 3 [Member] | Mortgage Servicing Rights [Member] | Discounted Cash Flow [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Prepayment speed assumption | 329.00% | |
Discount rate | 12.00% | |
Recurring [Member] | Level 3 [Member] | Mortgage Servicing Rights [Member] | Discounted Cash Flow [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Prepayment speed assumption | 216.00% | |
Discount rate | 10.00% | |
Recurring [Member] | Level 3 [Member] | Non-agency Mortgage-backed Securities [Member] | Discounted Cash Flow [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | 8.00% | |
Nonrecurring [Member] | Level 3 [Member] | OREO [Member] | Market Approach [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences between comparable sales | 0.00% | |
Nonrecurring [Member] | Level 3 [Member] | OREO [Member] | Market Approach [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences between comparable sales | 8.00% | |
Nonrecurring [Member] | Level 3 [Member] | OREO [Member] | Market Approach [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences between comparable sales | 5.40% | |
Nonrecurring [Member] | Level 3 [Member] | Impaired Loans [Member] | Market Approach [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences between comparable sales | 0.00% | |
Nonrecurring [Member] | Level 3 [Member] | Impaired Loans [Member] | Market Approach [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences between comparable sales | 100.00% | |
Nonrecurring [Member] | Level 3 [Member] | Impaired Loans [Member] | Market Approach [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences between comparable sales | 9.30% |
Fair Value Measurements, Level
Fair Value Measurements, Level 3 Unobservable Inputs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) [Roll Forward] | ||||
Beginning balance, at fair value | $ 379 | $ 483 | $ 428 | $ 2,345 |
OTTI impairment losses | 0 | 0 | 0 | 0 |
Principal payments | (29) | (14) | (90) | (149) |
Sales | 0 | 0 | 0 | (1,702) |
Change in unrealized loss | 5 | (1) | 17 | (26) |
Ending balance, at fair value | $ 355 | $ 468 | $ 355 | $ 468 |
Mortgage Servicing Rights (Deta
Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | ||
Mortgage Servicing Rights [Abstract] | ||||||
Unpaid principal balances of loans serviced for FNMA | $ 356,900 | $ 356,900 | $ 360,400 | |||
Unpaid principal balances of loans serviced for other financial institutions | 13,700 | 13,700 | ||||
Summary of the Change in the Balance of Mortgage Service Rights Assets [Roll Forward] | ||||||
Beginning balance, at fair value | 3,026 | $ 3,271 | 3,249 | $ 3,028 | ||
Servicing rights that result from transfers of financial assets | 205 | 151 | 464 | 582 | ||
Changes in fair value [Abstract] | ||||||
Due to changes in model inputs or assumptions | [1] | 17 | (22) | (174) | 152 | |
Other | [2] | (209) | (174) | (500) | (536) | |
Ending balance, at fair value | 3,039 | 3,226 | $ 3,039 | $ 3,226 | ||
Mortgage Servicing Rights, Key Economic Assumptions [Abstract] | ||||||
Prepayment speed (Public Securities Association "PSA" model) | 216.00% | 192.00% | ||||
Weighted-average life | 5 years 10 months 10 days | 6 years 5 months 5 days | ||||
Yield to maturity discount rate | 10.00% | 10.00% | ||||
Mortgage servicing income | $ 223 | $ 202 | $ 636 | $ 671 | ||
[1] | Represents changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates | |||||
[2] | Represents changes due to collection or realization of expected cash flows over time. |
Borrowings and FHLB Stock (Deta
Borrowings and FHLB Stock (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Short-term Debt [Line Items] | ||
Investment in FHLB stock | $ 2,146,000 | $ 2,212,000 |
Federal Home Loan Bank of Seattle [Member] | ||
Short-term Debt [Line Items] | ||
Amount available to borrow under loan agreement | 189,400,000 | 174,000,000 |
Outstanding borrowings | 37,500,000 | 40,400,000 |
Pacific Coast Banker's Bank [Member] | ||
Short-term Debt [Line Items] | ||
Outstanding borrowings | 0 | 0 |
Unused borrowing capacity | $ 2,000,000 | |
Term period | 1 year | |
Maturity date | Sep. 30, 2017 | |
Zions Bank [Member] | ||
Short-term Debt [Line Items] | ||
Outstanding borrowings | $ 0 | 0 |
Line of credit facility, maximum borrowing capacity | 9,000,000 | |
Line of credit facility, minimum cash balance required | 250,000 | |
One-to Four- Family [Member] | Federal Home Loan Bank of Seattle [Member] | ||
Short-term Debt [Line Items] | ||
Loans used as collateral for credit facility | 130,400,000 | |
Commercial and Multifamily [Member] | Federal Home Loan Bank of Seattle [Member] | ||
Short-term Debt [Line Items] | ||
Loans used as collateral for credit facility | 130,800,000 | |
Home Equity [Member] | Federal Home Loan Bank of Seattle [Member] | ||
Short-term Debt [Line Items] | ||
Loans used as collateral for credit facility | 24,400,000 | |
Line of Credit [Member] | TIB-The Independent BankersBank [Member] | ||
Short-term Debt [Line Items] | ||
Outstanding borrowings | 0 | 0 |
Unused borrowing capacity | 10,000,000 | 10,000,000 |
Letter of Credit [Member] | Federal Home Loan Bank of Seattle [Member] | ||
Short-term Debt [Line Items] | ||
Letters of credit to secure public deposits | 38,500,000 | 47,500,000 |
Net remaining amount available | 113,400,000 | 86,100,000 |
Federal Reserve Bank Advances [Member] | ||
Short-term Debt [Line Items] | ||
Outstanding borrowings | 0 | 0 |
Unused borrowing capacity | $ 33,200,000 | $ 25,900,000 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Common Share [Abstract] | ||||
Net income | $ 1,454 | $ 1,115 | $ 3,814 | $ 3,570 |
Weighted average number of shares outstanding, basic (in shares) | 2,490,089 | 2,465,371 | 2,483,004 | 2,500,088 |
Effect of potentially dilutive common shares (in shares) | 78,000 | 87,000 | 74,000 | 86,000 |
Weighted average number of shares outstanding, diluted (in shares) | 2,568,457 | 2,552,229 | 2,556,949 | 2,585,736 |
Earnings per share, basic (in dollars per share) | $ 0.58 | $ 0.45 | $ 1.54 | $ 1.43 |
Earnings per share, diluted (in dollars per share) | $ 0.57 | $ 0.44 | $ 1.48 | $ 1.38 |
Anti-dilutive securities not included in computation of diluted earnings per common share (in shares) | 0 | 0 | 0 | 0 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($)shares | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)Planshares | Sep. 30, 2015USD ($) | |
Stock-based Compensation [Line Items] | ||||
Number of equity incentive plans | Plan | 2 | |||
Share-based compensation expense | $ | $ 126,000 | $ 115,000 | $ 354,000 | $ 322,000 |
Stock Options [Member] | ||||
Stock-based Compensation [Line Items] | ||||
Cumulative number of shares issued (in shares) | 233,532 | 233,532 | ||
Restricted Stock [Member] | ||||
Stock-based Compensation [Line Items] | ||||
Cumulative number of shares issued (in shares) | 106,630 | 106,630 | ||
2008 Plan [Member] | Stock Options and Stock Appreciation Rights [Member] | ||||
Stock-based Compensation [Line Items] | ||||
Shares authorized (in shares) | 126,287 | 126,287 | ||
2008 Plan [Member] | Restricted Stock and Restricted Stock Units [Member] | ||||
Stock-based Compensation [Line Items] | ||||
Shares authorized (in shares) | 50,514 | 50,514 | ||
2013 Plan [Member] | Stock Options and Stock Appreciation Rights [Member] | ||||
Stock-based Compensation [Line Items] | ||||
Shares authorized (in shares) | 141,750 | 141,750 | ||
2013 Plan [Member] | Restricted Stock and Restricted Stock Units [Member] | ||||
Stock-based Compensation [Line Items] | ||||
Shares authorized (in shares) | 56,700 | 56,700 |
Stock-based Compensation, Stock
Stock-based Compensation, Stock Option Awards (Details) - Stock Options [Member] - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Stock-based Compensation [Line Items] | ||
Term of awards | 10 years | |
Options, Outstanding [Roll Forward] | ||
Outstanding at the beginning of the year (in shares) | 184,407 | |
Granted (in shares) | 10,993 | |
Exercised (in shares) | (21,656) | |
Forfeited (in shares) | (3,487) | |
Expired (in shares) | 0 | |
Outstanding at end of the period (in shares) | 170,257 | 184,407 |
Exercisable (in shares) | 90,193 | |
Expected to vest, assuming a 0% forfeiture rate over the vesting term (in shares) | 80,064 | |
Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Outstanding at the beginning of the year (in dollars per share) | $ 14.47 | |
Granted (in dollars per share) | 22.31 | |
Exercised (in dollars per share) | 10.68 | |
Forfeited (in dollars per share) | 17.23 | |
Expired (in dollars per share) | 0 | |
Outstanding at end of the period (in dollars per share) | 15.40 | $ 14.47 |
Exercisable (in dollars per share) | 13.67 | |
Expected to vest, assuming a 0% forfeiture rate over the vesting term (in dollars per share) | $ 17.35 | |
Options, Additional Disclosures [Abstract] | ||
Outstanding, weighted-average remaining contractual term | 6 years 8 months 8 days | 6 years 11 months 19 days |
Exercisable, weighted-average remaining contractual term | 5 years 9 months 18 days | |
Expected to vest, assuming a 0% forfeiture rate over the vesting term, weighted-average remaining contractual term | 7 years 8 months 12 days | |
Outstanding, aggregate intrinsic value | $ 1,545,296 | $ 1,490,009 |
Exercisable, aggregate intrinsic value | 974,685 | |
Expected to vest, assuming a 0% forfeiture rate over the vesting term, aggregate intrinsic value | $ 570,610 | |
Forfeiture rate | 0.00% | |
Unrecognized compensation cost | $ 378,000 | |
Weighted-average vesting period | 2 years 6 months | |
Valuation assumptions used in estimating fair value of option awards [Abstract] | ||
Annual dividend yield | 1.03% | |
Expected volatility | 25.48% | |
Risk-free interest rate | 1.64% | |
Expected term | 6 years 11 months 1 day | |
Weighted-average grant date fair value per option granted (in dollars per share) | $ 5.78 | |
2008 Plan [Member] | ||
Stock-based Compensation [Line Items] | ||
Annual vesting | 20.00% | |
Vesting commencement period from grant date | 1 year | |
2013 Plan [Member] | Minimum [Member] | ||
Stock-based Compensation [Line Items] | ||
Award vesting period | 2 years | |
2013 Plan [Member] | Maximum [Member] | ||
Stock-based Compensation [Line Items] | ||
Award vesting period | 4 years |
Stock-based Compensation, Restr
Stock-based Compensation, Restricted Stock Awards (Details) - Restricted Stock Awards [Member] - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Nonvested Restricted Stock Awards [Roll Forward] | ||
Non-vested at the beginning of the period (in shares) | 31,553 | |
Granted (in shares) | 11,606 | |
Vested (in shares) | (15,962) | |
Forfeited (in shares) | (1,059) | |
Expired (in shares) | 0 | |
Non-vested at the end of the period (in shares) | 26,138 | |
Nonvested Restricted Stock Awards, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Non-vested at beginning of the period (in dollars per share) | $ 16.32 | |
Granted (in dollars per share) | 22.31 | |
Vested (in dollars per share) | 17.59 | |
Forfeited (in dollars per share) | 17.36 | |
Expired (in dollars per share) | 0 | |
Non-vested at the end of the period (in dollars per share) | $ 18.08 | |
Nonvested Restricted Stock Awards, Additional Disclosures [Abstract] | ||
Expected to vest assuming a 0% forfeiture rate over the vesting term (in shares) | 26,138 | |
Expected to vest assuming a 0% forfeiture rate over the vesting term, weighted average grant date fair value (in dollars per share) | $ 18.08 | |
Forfeiture rate | 0.00% | |
Unrecognized compensation cost | $ 408,000 | |
Weighted-average vesting period | 1 year 3 months 11 days | |
Total fair value of shares vested | $ 272,000 | $ 240,000 |
2008 Plan [Member] | ||
Stock-based Compensation [Line Items] | ||
Annual vesting | 20.00% | |
Vesting commencement period from grant date | 1 year | |
2013 Plan [Member] | Minimum [Member] | ||
Stock-based Compensation [Line Items] | ||
Award vesting period | 2 years | |
2013 Plan [Member] | Maximum [Member] | ||
Stock-based Compensation [Line Items] | ||
Award vesting period | 4 years |
Stock-based Compensation, Emplo
Stock-based Compensation, Employee Stock Ownership Plan (Details) - Employee Stock Ownership Plan [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Aug. 31, 2012 | Jan. 31, 2008 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Repayment period | 10 years | |||||
Committed to release (in shares) | 21,443 | 21,443 | ||||
Unallocated shares (in shares) | 88,243 | 88,243 | ||||
Number of common shares hold by the trust (in shares) | 188,981 | 188,981 | ||||
Fair value of shares held by ESOP trust | $ 4,500,000 | $ 4,500,000 | ||||
ESOP compensation expense | 155,000 | $ 110,000 | 426,000 | $ 313,000 | ||
ESOP Borrowing in 2008 [Member] | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Amount borrowed by ESOP to purchase common stock | $ 1,200,000 | |||||
ESOP loan interest rate loan to purchase company stock | 4.00% | |||||
ESOP remaining loan balance from shares purchased | 270,000 | 270,000 | ||||
ESOP Borrowing in 2012 [Member] | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Amount borrowed by ESOP to purchase common stock | $ 1,100,000 | |||||
ESOP loan interest rate loan to purchase company stock | 2.25% | |||||
ESOP remaining loan balance from shares purchased | $ 701,000 | $ 701,000 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Millions | Oct. 28, 2016 | Oct. 25, 2016 |
University Place Branch [Member] | ||
Subsequent Event [Line Items] | ||
Deposits acquired | $ 17.7 | |
Core deposit premium rate | 3.35% | |
Cost of funds rate | 0.17% | |
Common Stock Dividend Declared [Member] | ||
Subsequent Event [Line Items] | ||
Dividends payable, date declared | Oct. 25, 2016 | |
Cash dividend declared (in dollars per share) | $ 0.075 | |
Dividends payable, payment date | Nov. 25, 2016 | |
Dividends payable, record date | Nov. 11, 2016 |