Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 27, 2018 | Jun. 30, 2017 | |
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 Public Float | $ 64.2 | ||
Entity Common Stock, Shares Outstanding | 2,524,346 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 60,680 | $ 54,582 |
Available-for-sale securities, at fair value | 5,435 | 6,604 |
Loans held-for-sale | 1,777 | 871 |
Loans | 548,595 | 500,001 |
Allowance for loan losses | (5,241) | (4,822) |
Total loans, net | 543,354 | 495,179 |
Accrued interest receivable | 1,977 | 1,816 |
Bank-owned life insurance, net | 12,750 | 12,082 |
Other real estate owned ("OREO") and repossessed assets, net | 610 | 1,172 |
Mortgage servicing rights, at fair value | 3,426 | 3,561 |
Federal Home Loan Bank ("FHLB") stock, at cost | 3,065 | 2,840 |
Premises and equipment, net | 7,392 | 5,549 |
Other assets | 4,778 | 4,127 |
Total assets | 645,244 | 588,383 |
Deposits | ||
Interest-bearing | 442,277 | 403,990 |
Noninterest-bearing demand | 72,123 | 63,741 |
Total deposits | 514,400 | 467,731 |
Borrowings | 59,000 | 54,792 |
Accrued interest payable | 77 | 73 |
Other liabilities | 5,972 | 4,874 |
Advance payments from borrowers for taxes and insurance | 635 | 638 |
Total liabilities | 580,084 | 528,108 |
COMMITMENTS AND CONTINGENCIES (NOTE 7 and 17) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value, 40,000,000 shares authorized, 2,511,127 and 2,498,804 issued and outstanding as of December 31, 2017 and 2016, respectively | 25 | 25 |
Additional paid-in capital | 24,986 | 23,979 |
Unearned shares - Employee Stock Ownership Plan ("ESOP") | (453) | (683) |
Retained earnings | 40,493 | 36,873 |
Accumulated other comprehensive income, net of tax | 109 | 81 |
Total stockholders' equity | 65,160 | 60,275 |
Total liabilities and stockholders' equity | $ 645,244 | $ 588,383 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
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) | 2,511,127 | 2,498,804 |
Common stock, shares outstanding (in shares) | 2,511,127 | 2,498,804 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
INTEREST INCOME | ||
Loans, including fees | $ 26,707 | $ 24,608 |
Interest and dividends on investments, cash and cash equivalents | 742 | 442 |
Total interest income | 27,449 | 25,050 |
INTEREST EXPENSE | ||
Deposits | 3,021 | 2,708 |
Borrowings | 347 | 211 |
Total interest expense | 3,368 | 2,919 |
Net interest income | 24,081 | 22,131 |
PROVISION FOR LOAN LOSSES | 500 | 454 |
Net interest income after provision for loan losses | 23,581 | 21,677 |
NONINTEREST INCOME | ||
Service charges and fee income | 1,895 | 2,508 |
Earnings on cash surrender value of bank-owned life insurance | 327 | 336 |
Mortgage servicing income | 566 | 907 |
Net gain on sale of loans | 1,071 | 1,366 |
Total noninterest income | 3,859 | 5,117 |
NONINTEREST EXPENSE | ||
Salaries and benefits | 10,733 | 10,505 |
Operations | 4,348 | 4,361 |
Occupancy | 1,889 | 1,526 |
Data processing | 1,736 | 1,784 |
Regulatory assessments | 431 | 539 |
Net loss and expenses on OREO and repossessed assets | 110 | 6 |
Total noninterest expense | 19,247 | 18,721 |
Income before provision for income taxes | 8,193 | 8,073 |
Provision for income taxes | 3,068 | 2,695 |
Net income | $ 5,125 | $ 5,378 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 2.05 | $ 2.16 |
Diluted (in dollars per share) | $ 2 | $ 2.09 |
Weighted-average number of common shares outstanding: | ||
Basic (in shares) | 2,504,430 | 2,486,936 |
Diluted (in shares) | 2,568,082 | 2,566,980 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||
Net income | $ 5,125 | $ 5,378 |
Available for sale securities: | ||
Unrealized gain (loss) arising during the year | 43 | (111) |
Income tax expense related to unrealized gains | (15) | 28 |
Other comprehensive income (loss), net of tax | 28 | (83) |
Comprehensive income | $ 5,153 | $ 5,295 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - 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, 2015 | $ 25 | $ 23,002 | $ (911) | $ 32,240 | $ 164 | $ 54,520 |
Balances (in shares) at Dec. 31, 2015 | 2,469,206 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 5,378 | 5,378 | ||||
Other comprehensive income (loss), net of tax | (83) | (83) | ||||
Share-based compensation | 525 | 525 | ||||
Restricted stock awards | 0 | |||||
Restricted stock awards (in shares) | 11,606 | |||||
Cash dividends on common stock | (745) | (745) | ||||
Common stock repurchased | 0 | |||||
Common stock repurchased (in shares) | (2,805) | |||||
Restricted shares forfeited | 0 | |||||
Restricted shares forfeited (in shares) | (1,059) | |||||
Stock options exercised | 165 | 165 | ||||
Stock options exercised (in shares) | 21,856 | |||||
Allocation of ESOP shares | 287 | 228 | 515 | |||
Balances at Dec. 31, 2016 | $ 25 | 23,979 | (683) | 36,873 | 81 | $ 60,275 |
Balances (in shares) at Dec. 31, 2016 | 2,498,804 | 2,498,804 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 5,125 | $ 5,125 | ||||
Other comprehensive income (loss), net of tax | 28 | 28 | ||||
Share-based compensation | 523 | 523 | ||||
Restricted stock awards | 0 | |||||
Restricted stock awards (in shares) | 576 | |||||
Cash dividends on common stock | (1,505) | (1,505) | ||||
Common stock repurchased | 0 | |||||
Common stock repurchased (in shares) | (3,353) | |||||
Stock options exercised | 43 | 43 | ||||
Stock options exercised (in shares) | 15,100 | |||||
Allocation of ESOP shares | 441 | 230 | 671 | |||
Balances at Dec. 31, 2017 | $ 25 | $ 24,986 | $ (453) | $ 40,493 | $ 109 | $ 65,160 |
Balances (in shares) at Dec. 31, 2017 | 2,511,127 | 2,511,127 |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cash dividends on common stock (in dollars per share) | $ 0.60 | $ 0.30 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 5,125 | $ 5,378 |
Adjustments to reconcile net income to net cash from operating activities: | ||
(Accretion) amortization of net premium on investments | (2) | 48 |
Provision for loan losses | 500 | 454 |
Depreciation and amortization | 943 | 793 |
Compensation expense related to stock options and restricted stock | 523 | 525 |
Net change to mortgage servicing rights | 135 | (312) |
Increase in cash surrender value of bank-owned life insurance | (327) | (336) |
Deferred income tax | 106 | (23) |
Net gain on sale of loans | (1,071) | (1,366) |
Proceeds from sale of loans held-for-sale | 51,959 | 88,926 |
Originations of loans held-for-sale | (51,794) | (86,340) |
(Gain) loss on sale of other real estate owned and repossessed assets | 94 | (21) |
Change in operating assets and liabilities: | ||
Accrued interest receivable | (161) | (208) |
Other assets | (305) | (105) |
Accrued interest payable | 4 | 1 |
Other liabilities | 1,098 | (266) |
Net cash from operating activities | 6,827 | 7,148 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from principal payments, maturities and sales of available-for-sale securities | 1,214 | 1,282 |
Purchases of available for sale securities | 0 | (1,363) |
FHLB stock purchased | (225) | (628) |
Net increase in loans | (48,651) | (41,434) |
Purchase of BOLI | (341) | 0 |
Proceeds from sale of OREO and other repossessed assets | 468 | 252 |
Purchases of premises and equipment, net | (2,474) | (1,007) |
Net cash received from branch acquisition | 13,671 | 0 |
Net cash used by investing activities | (36,338) | (42,898) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in deposits | 32,195 | 27,707 |
Proceeds from borrowings | 229,000 | 151,500 |
Repayment of borrowings | (224,792) | (137,143) |
Net change in advances from borrowers for taxes and insurance | (3) | 69 |
ESOP shares released | 671 | 515 |
Proceeds from exercise of common stock options | 43 | 165 |
Dividends paid | (1,505) | (745) |
Net cash from financing activities | 35,609 | 42,068 |
Net increase in cash and cash equivalents | 6,098 | 6,318 |
Cash and cash equivalents, beginning of year | 54,582 | 48,264 |
Cash and cash equivalents, end of year | 60,680 | 54,582 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for income taxes | 2,460 | 3,040 |
Interest paid on deposits and borrowings | 3,364 | 2,918 |
Noncash net transfer from loans to OREO and repossessed assets | 0 | 634 |
Acquired assets | 803 | 0 |
Assumed liabilities | $ 14,474 | $ 0 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Organization and Significant Accounting Policies [Abstract] | |
Organization and Significant Accounting Policies | Note 1 - Organization and significant accounting policies Sound Financial Bancorp, a Maryland corporation ("Sound Financial Bancorp" or the "Company"), is a bank holding company for its wholly owned subsidiary, Sound Community Bank (the "Bank"). Substantially all of Sound Financial Bancorp's business is conducted through Sound Community Bank, a Washington state-chartered commercial bank. As a Washington commercial bank, the Bank's regulators are the Washington State Department of Financial Institutions ("WDFI") and the Federal Deposit Insurance Corporation ("FDIC"). The Board of Governors of the Federal Reserve System ("Federal Reserve") is the primary federal regulator for Sound Financial Bancorp. Subsequent events – Basis of Presentation and Use of Estimates The accompanying consolidated financial statements include the accounts of Sound Financial Bancorp and its wholly-owned subsidiary Sound Community Bank. All significant intercompany balances and transactions between Sound Financial Bancorp and its subsidiary have been eliminated in consolidation. Cash and cash equivalents Investment securities Unrealized gains and losses, net of the related deferred tax effect, are reported as a net amount in accumulated other comprehensive income (loss) on AFS securities in the consolidated balance sheets. Realized gains and losses on AFS securities, determined using the specific identification method, are included in earnings. Amortization of premiums and accretion of discounts are recognized as adjustments to interest income using the interest method over the period to maturity. The Company reviews investment securities on an ongoing basis for the presence of other-than-temporary impairment ("OTTI") or permanent impairment, taking into consideration current market conditions, fair value in relation to cost, extent and nature of the change in fair value, issuer rating changes and trends, whether the Company intends to sell a security or if it is likely that the Company will be required to sell the security before recovery of its amortized cost basis of the investment, which may be maturity, and other factors. For debt securities, if the Company intends to sell the security or it is likely that it will be required to sell the security before recovering its cost basis, the entire impairment loss would be recognized in earnings as an OTTI. If the Company does not intend to sell the security and it is not likely that we will be required to sell the security but we do not expect to recover the entire amortized cost basis of the security, only the portion of the impairment loss representing credit losses would be recognized in earnings. The credit loss on a security is measured as the difference between the amortized cost basis and the present value of the cash flows expected to be collected. Projected cash flows are discounted by the original or current effective interest rate depending on the nature of the security being measured for potential OTTI. The remaining impairment related to all other factors, the difference between the present value of the cash flows expected to be collected and the fair value, is recognized as a charge to other comprehensive income ("OCI"). The Company does not intend to sell these securities and it is more likely than not that it will not be required to sell the securities before anticipated recovery of the remaining amortized cost basis. The Company closely monitors its investment securities for changes in credit risk. The current market environment significantly limits the Company's ability to mitigate its exposure to valuation changes in these securities by selling them. Accordingly, if market conditions deteriorate further and the Company determines its holdings of these or other investment securities are OTTI, its future earnings, stockholders' equity, regulatory capital and continuing operations could be materially adversely affected. Loans held-for-sale Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balance adjusted for any charge-offs, allowance for loan losses, and any deferred fees or costs on origination of loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method over the contractual life of the loan for term loans or the straight-line method for open ended loans. The accrual of interest is discontinued at the time the loan is 90 days past due or if, in management's opinion, the borrower may be unable to meet payment of obligations as they become due, as well as when required by regulatory provisions. Loans are typically charged off no later than 120 days past due, unless secured by collateral. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all of the principal and interest amounts contractually due are brought current, future payments are reasonably assured and payments have been received for twelve consecutive months. A loan is considered impaired when it is probable that the Company will be unable to collect all amounts (principal and interest) due according to the contractual terms of the original loan agreement. When a loan has been identified as being impaired, the amount of the impairment is measured by using discounted cash flows, except when, as a practical expedient, the current fair value of the collateral, reduced by costs to sell, is used. When the measurement of the impaired loan is less than the recorded investment in the loan (including accrued interest), impairment is recognized by charging off the impaired portion or creating or adjusting a specific allocation of the allowance for loan losses. A loan is classified as a troubled debt restructuring ("TDR") when certain concessions have been made to the contractual terms, such as reductions of interest rates or deferrals of interest or principal payments due to the borrower's deteriorated financial condition. All TDRs are reported and accounted for as impaired loans. Allowance for loan losses The allowance for loan losses is maintained at a level sufficient to provide for probable credit losses based upon evaluating known and inherent risks in the loan portfolio. The allowance is provided based upon management's continuing analysis of the pertinent factors underlying the quality of the loan portfolio. These factors include changes in the size and composition of the loan portfolio, delinquency levels, actual loan loss experience, current economic conditions, and detailed analysis of individual loans for which full collectability may not be assured. The detailed analysis includes techniques to estimate the fair value of loan collateral and the existence of potential alternative sources of repayment. The allowance consists of specific, general, and unallocated components. The specific component relates to loans that are classified as doubtful, substandard, or special mention. The Company considers installment loans to be pools of smaller balance, homogenous loans that are collectively evaluated for impairment, unless such loans are subject to a TDR agreement. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan are lower than the carrying value of that loan. The general component covers non-classified loans and is based upon historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. The appropriateness of the allowance for loan losses is estimated based upon those factors and trends identified by management at the time consolidated financial statements are prepared. When available information confirms that specific loans or portions thereof are uncollectible, identified amounts are charged against the allowance for loan losses. The existence of some or all of the following criteria will generally confirm that a loss has been incurred: the loan is significantly delinquent and the borrower has not demonstrated the ability or intent to bring the loan current; the Company has no recourse to the borrower, or if it does, the borrower has insufficient assets to pay the debt; the estimated fair value of the loan collateral is significantly below the current loan balance, and there is little or no near-term prospect for improvement. The ultimate recovery of all loans is susceptible to future market factors beyond the Company's control. These factors may result in losses or recoveries differing significantly from those provided in the consolidated financial statements. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company's allowance for loan losses, and may require the Company to make additions to the allowance based on their judgment about information available to them at the time of their examinations. Transfers of financial assets Mortgage servicing rights ("MSR") Premises and equipment Bank-owned life insurance, net Federal Home Loan Bank stock Other real estate owned and repossessed assets In some instances, the Company may make loans to facilitate the sales of OREO. Management reviews all sales for which it is the lending institution. Any gains related to sales of other real estate owned may be deferred until the buyer has a sufficient investment in the property. Income Taxes Segment reporting Off-balance-sheet credit-related financial instruments Advertising costs Comprehensive income Intangible assets Employee stock ownership plan Unearned ESOP shares are shown as a reduction of stockholders' equity. When the shares are released, unearned common shares held by the ESOP are reduced by the cost of the ESOP shares released and the differential between the fair value and the cost is charged to additional paid in capital. The loan receivable from the ESOP to the Company is not reported as an asset nor is the debt of the ESOP reported as a liability on the Company's Consolidated Statements of Condition. Earnings Per Common Share Fair value Fair values of the Company's financial instruments are based on the fair value hierarchy which requires an entity to maximize the use of observable inputs, typically market data obtained from third parties, and minimize the use of unobservable inputs, which reflects its estimates for market assumptions, when measuring fair value. Three levels of valuation inputs are ranked in accordance with the prescribed fair value hierarchy as follows: Level 1: Level 2: Level 3: In determining the appropriate levels, the Company performs a detailed analysis of the assets and liabilities that are subject to fair value measurements. In certain cases, the inputs used to measure fair value of an asset or liability may fall into different levels of the fair value hierarchy. The level within which the fair value measurement is categorized is based on the lowest level unobservable input that is significant to the fair value measurement in its entirety. Therefore, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable. Share-Based Compensation Reclassifications |
Accounting Pronouncements Recen
Accounting Pronouncements Recently Issued or Adopted | 12 Months Ended |
Dec. 31, 2017 | |
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 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 recognized at the date of initial application. As a financial institution, the Company's largest component of revenue, interest income, is excluded from the scope of this ASU. Accordingly, the adoption of ASU No. 2014-09 is not expected to have a material impact 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 adoption of ASU No. 2016-01 is not expected to have a material impact on the Company's consolidated financial statements. Management is in the planning stages of developing processes and procedures to comply with the disclosure requirements of this ASU, which could impact the disclosures the Company makes related to the fair value of its financial instruments. 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. Although an estimate of the impact of the new leasing standard has not yet been determined, once adopted, the Company expects to report higher assets and liabilities as a result of including right-of-use assets and lease liabilities related to certain banking offices and certain equipment under non-cancelable operating lease agreements, however, based on current leases the adoption is not expected to have a material impact on the Company's consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. 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 has begun the process to implement this new standard by working with a vendor that specializes in this area. While the Company has not quantified the impact of this ASU, it does expect changing from the current incurred loss model to an expected loss model will result in an earlier recognition of losses. The Company also expects that once adopted the allowance for loan losses will increase, however, until its evaluation is complete the magnitude of the increase is unknown. 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. In March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20). ASU 2017-08 is intended to amend the amortization period for certain purchased callable debt securities held at a premium. Under ASU 2017-08, the FASB is shortening the amortization period for the premium to the earliest call date. Under current GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. ASU 2017-08 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. The Company is reviewing its securities portfolio to assess the impact the adoption of this ASU will have on the Company's consolidated financial statements but does not expect this ASU to have a material impact on the Company's consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation--Stock Compensation (Topic 718): Scope of Modification Accounting. The ASU was issued to provide clarity as to when to apply modification accounting when there is a change in the terms or conditions of a share-based payment award. According to this ASU, an entity should account for the effects of a modification unless the fair value, vesting conditions, and balance sheet classification of the award is the same after the modification as compared to the original award prior to the modification. The standard is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The adoption of ASU No. 2017-09 is not expected to have a material impact on the Company's consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This ASU amends the hedge accounting recognition and presentation requirements in ASC 815 to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity's risk management activities by better aligning the entity's financial reporting for hedging relationships with those risk management activities and (2) reduce the complexity of and simplify the application of hedge accounting by preparers. The amendments in this ASU permit hedge accounting for hedging relationships involving nonfinancial risk and interest rate risk by removing certain limitations in cash flow and fair value hedging relationships. In addition, the ASU requires an entity to present the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported. The amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018 and early adoption is permitted. The adoption of ASU No. 2017-12 is not expected to have a material impact on the Company's consolidated financial statements. In February 2018, FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220). This ASU was issued to allow a reclassification from accumulated other comprehensive income to retained earnings from stranded tax effects resulting from the revaluation of the net deferred tax asset ("DTA") to the new corporate tax rate of 21% as a result of the Tax Act. The ASU is effective for reporting periods beginning after December 15, 2018 with early adoption permitted. The adoption of ASU No. 2018-02 is not expected to have a material impact on the Company's consolidated financial statements. Application of US GAAP in Accounting for the Tax Cuts and Jobs Act On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118) to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the U.S. Tax Cuts and Jobs Act of 2017 (the "Tax Act"). SAB 118 provides guidance to registrants under three scenarios: (1) Measurement of certain income tax effects is complete, (2) Measurement of certain income tax effects can be reasonably estimated and (3) Measurement of certain income tax effects cannot be reasonably estimated. SAB 118 provides a one year measurement period for the registrant to complete its accounting for certain income tax effects that are considered provisional or for which reasonable estimates cannot be made. The Company recognized the income tax effects of the 2017 Tax Act in its 2017 financial statements in accordance with SAB 118. |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2017 | |
Restricted Cash [Abstract] | |
Restricted Cash | Note 3 – Restricted Cash Federal Reserve Board regulations require that the Company maintain certain minimum reserve balances either as cash on hand or on deposit with the Federal Reserve Bank, based on a percentage of deposits. The reserve balances were $12.2 million and $7.7 million at December 31, 2017 and 2016, respectively. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments [Abstract] | |
Investments | Note 4 – Investments The amortized cost and fair value of AFS securities and the corresponding amounts of gross unrealized gains and losses at December 31, 2017 and 2016 were as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2017 Municipal bonds $ 3,240 $ 155 $ (26 ) $ 3,369 Agency mortgage-backed securities 2,030 36 — 2,066 Total $ 5,270 $ 191 $ (26 ) $ 5,435 December 31, 2016 Municipal bonds $ 3,262 $ 127 $ (36 ) $ 3,353 Agency mortgage-backed securities 2,858 49 (3 ) 2,904 Non-agency mortgage-backed securities 362 — (15 ) 347 Total $ 6,482 $ 176 $ (54 ) $ 6,604 The amortized cost and fair value of AFS securities at December 31, 2017, 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. Investments not due at a single maturity date, primarily mortgage-backed investments, are shown separately. December 31, 2017 Amortized Cost Fair Value Weighted-Average Yield Due in one to five years $ 1,587 $ 1,573 1.51 % Due after five to ten years 154 165 3.53 Due after ten years 1,499 1,631 4.22 Mortgage-backed securities 2,030 2,066 3.56 Total $ 5,270 $ 5,435 3.16 % There were no pledged securities at December 31, 2017 and 2016. There were no sales of AFS securities during the years ended December 31, 2017 and 2016. The following tables summarize the aggregate fair value and gross unrealized loss by length of time of those investments that have been in a continuous unrealized loss position at December 31, 2017 and 2016 (in thousands): December 31, 2017 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ — $ — $ 1,302 $ (26 ) $ 1,302 $ (26 ) Total $ — $ — $ 1,302 $ (26 ) $ 1,302 $ (26 ) December 31, 2016 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ 1,313 $ (36 ) $ — $ — $ 1,313 $ (36 ) Agency mortgage-backed securities — — 1,125 (3 ) 1,125 (3 ) Non-agency mortgage-backed securities — — 347 (15 ) 347 (15 ) Total $ 1,313 $ (36 ) $ 1,472 $ (18 ) $ 2,785 $ (54 ) There were no credit losses recognized in earnings during the years ended December 31, 2017 2016 At December 31, 2017, the securities portfolio consisted of seven agency mortgage-backed securities and eight municipal securities with a fair value of $5.4 million. At December 31, 2016, the securities portfolio consisted of nine agency mortgage-backed securities, one non-agency mortgage-backed security and eight municipal bonds with a fair value of $6.6 million. At December 31, 2017, there were no securities in an unrealized loss position for less than 12 months and there were three municipal securities in an unrealized loss position for more than 12 months. At December 31, 2016, three municipal securities were in an unrealized loss position for less than 12 months and one agency security and one non-agency mortgage-backed security were in an unrealized loss position for over 12 months. The agency mortgage-backed securities in unrealized loss positions at December 31, 2017 and 2016 were guaranteed by U.S. governmental agencies. For both the 2017 and 2016 periods, the unrealized losses were caused by changes in market interest rates or the widening of market spreads subsequent to the initial purchase of these securities, and not related to the underlying credit of the issuers or the underlying collateral. It is expected that these securities will not be settled at a price less than the amortized cost of each investment. Because the decline in fair value is attributable to changes in interest rates or widening market spreads and not credit quality, and because we do not intend to sell the securities in this class and it is not likely that we will be required to sell these securities before recovery of their amortized cost basis, which may include holding each security until contractual maturity. The unrealized losses on these investments are not considered other-than-temporary impairment ("OTTI") during the years ended December 31, 2017 and 2016. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2017 | |
Loans [Abstract] | |
Loans | Note 5 – Loans The composition of the loan portfolio, excluding loans held-for-sale, at December 31, 2017 and 2016 is as follows (in thousands): At December 31, 2017 2016 Real estate loans: One- to four- family $ 157,417 $ 152,386 Home equity 28,379 27,771 Commercial and multifamily 211,269 181,004 Construction and land 61,482 70,915 Total real estate loans 458,547 432,076 Consumer loans: Manufactured homes 17,111 15,494 Floating homes 29,120 23,996 Other consumer 4,902 3,932 Total consumer loans 51,133 43,422 Commercial business loans 40,829 26,331 Total loans 550,509 501,829 Deferred fees (1,914 ) (1,828 ) Total loans, gross 548,595 500,001 Allowance for loan losses (5,241 ) (4,822 ) Total loans, net $ 543,354 $ 495,179 The following table presents the balance in the allowance for loan losses and the unpaid principal balance in loans, net of partial charge-offs by portfolio segment and based on impairment method as of December 31, 2017 (in thousands): One-to-four family Home equity Commercial and multifamily Construction and land Manufactured homes Floating homes Other consumer Commercial business Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ 360 $ 109 $ — $ 10 $ 247 $ — $ 40 $ 130 $ — $ 896 Collectively evaluated for impairment 881 173 1,250 365 97 169 37 237 1,136 4,345 Ending balance $ 1,241 $ 282 $ 1,250 $ 375 $ 344 $ 169 $ 77 $ 367 $ 1,136 $ 5,241 Loans receivable: Individually evaluated for impairment $ 6,256 $ 1,028 $ 1,699 $ 141 $ 385 $ — $ 194 $ 1,000 $ — $ 10,703 Collectively evaluated for impairment 151,161 27,351 209,570 61,341 16,726 29,120 4,708 39,829 — 539,806 Ending balance $ 157,417 $ 28,379 $ 211,269 $ 61,482 $ 17,111 $ 29,120 $ 4,902 $ 40,829 $ — $ 550,509 The following table presents the balance in the allowance for loan losses and the unpaid principal balance in loans, net of partial charge-offs by portfolio segment and based on impairment method as of December 31, 2016 (in thousands): One-to-four family Home equity Commercial and multifamily Construction and land Manufactured homes Floating homes Other consumer Commercial business Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ 536 $ 121 $ 24 $ 35 $ 59 $ — $ 65 $ 23 $ — $ 863 Collectively evaluated for impairment 1,006 257 1,120 424 109 132 47 152 712 3,959 Ending balance $ 1,542 $ 378 $ 1,144 $ 459 $ 168 $ 132 $ 112 $ 175 $ 712 $ 4,822 Loans receivable: Individually evaluated for impairment $ 4,749 $ 832 $ 1,582 $ 83 $ 312 $ — $ 62 $ 616 $ — $ 8,236 Collectively evaluated for impairment 147,637 26,939 179,422 70,832 15,182 23,996 3,870 25,715 — 493,593 Ending balance $ 152,386 $ 27,771 $ 181,004 $ 70,915 $ 15,494 $ 23,996 $ 3,932 $ 26,331 $ — $ 501,829 The following table summarizes the activity in the allowance for loan losses for the year ended December 31, 2017 (in thousands): Beginning Allowance Charge-offs Recoveries Provision Ending Allowance One-to-four family $ 1,542 $ — $ — $ (301 ) $ 1,241 Home equity 378 (89 ) 33 (40 ) 282 Commercial and multifamily 1,144 (24 ) 1 129 1,250 Construction and land 459 — — (84 ) 375 Manufactured homes 168 (12 ) 8 180 344 Floating homes 132 — — 37 169 Other consumer 112 (18 ) 20 (37 ) 77 Commercial business 175 — — 192 367 Unallocated 712 — — 424 1,136 $ 4,822 $ (143 ) $ 62 $ 500 $ 5,241 The following table summarizes the activity in the allowance for loan losses for the year ended December 31, 2016 (in thousands): Beginning Allowance Charge-offs Recoveries Provision Ending Allowance One-to-four family $ 1,839 $ (72 ) $ 47 $ (272 ) $ 1,542 Home equity 607 (15 ) 78 (292 ) 378 Commercial and multifamily 921 (314 ) — 537 1,144 Construction and land 382 — 18 59 459 Manufactured homes 301 — 8 (141 ) 168 Floating homes 111 — — 21 132 Other consumer 77 (42 ) 53 24 112 Commercial business 157 (29 ) — 47 175 Unallocated 241 — — 471 712 $ 4,636 $ (472 ) $ 204 $ 454 $ 4,822 Credit Quality Indicators. When the Company classifies problem loans as either substandard or doubtful, it may establish a specific allowance in an amount it deems prudent to address the risk specifically (if the loan is impaired) or it 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 assets. When the Company classifies problem loans as a loss, it charges off such assets in the period in which they are deemed uncollectible. Assets that do not currently expose the Company to sufficient risk to warrant classification as substandard or doubtful but possess identified weaknesses are classified as either watch or special mention assets. The Company's determination as the classification of its assets and the amount of its valuation allowances is subject to review by the FDIC, 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 December 31, 2017, by type of loan (in thousands): One-to-four family Home equity Commercial and multifamily Construction and land Manufactured homes Floating homes Other consumer Commercial business Total Grade: Pass $ 153,793 $ 27,493 $ 199,887 $ 61,390 $ 16,877 $ 29,120 $ 4,708 $ 39,089 $ 532,357 Watch 244 — 9,683 — — — — 827 10,754 Special Mention 137 — 357 — — — — 784 1,278 Substandard 3,243 886 1,342 92 234 — 194 129 6,120 Doubtful — — — — — — — — — Loss — — — — — — — — — Total $ 157,417 $ 28,379 $ 211,269 $ 61,482 $ 17,111 $ 29,120 $ 4,902 $ 40,829 $ 550,509 The following table represents the internally assigned grades as of December 31, 2016, by type of loan (in thousands): One-to-four family Home equity Commercial and multifamily Construction and land Manufactured homes Floating homes Other consumer Commercial business Total Grade: Pass $ 148,617 $ 26,547 $ 171,678 $ 67,539 $ 15,288 $ 23,996 $ 3,821 $ 25,625 $ 483,111 Watch 998 536 8,105 3,376 78 — 49 326 13,468 Special Mention 139 — — — 30 — — — 169 Substandard 2,632 688 1,221 — 98 — 62 380 5,081 Doubtful — — — — — — — — — Loss — — — — — — — — — Total $ 152,386 $ 27,771 $ 181,004 $ 70,915 $ 15,494 $ 23,996 $ 3,932 $ 26,331 $ 501,829 Nonaccrual and Past Due Loans The following table presents the recorded investment in nonaccrual loans as of December 31, 2017 and 2016, by type of loan (in thousands): 2017 2016 One- to four- family $ 791 $ 2,169 Home equity 722 536 Other consumer 8 — Commercial and multifamily 201 218 Construction and land 92 — Manufactured homes 206 72 Commercial 129 149 Total $ 2,149 $ 3,144 The following table represents the aging of the recorded investment in past due loans as of December 31, 2017, by type of loan (in thousands): 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Recorded Investment > 90 Days and Accruing Total Past Due Current Total Loans One-to-four family $ 2,092 $ 1,819 $ 727 $ — $ 4,638 $ 152,779 $ 157,417 Home equity 521 5 633 — 1,159 27,220 28,379 Commercial and multifamily 313 — — — 313 210,956 211,269 Construction and land 51 — 92 — 143 61,339 61,482 Manufactured homes 185 50 197 — 432 16,679 17,111 Floating homes — — — — — 29,120 29,120 Other consumer 15 — — — 15 4,887 4,902 Commercial business 400 — — — 400 40,429 40,829 Total $ 3,577 $ 1,874 $ 1,649 $ — $ 7,100 $ 543,409 $ 550,509 The following table represents the aging of the recorded investment in past due loans as of December 31, 2016, by type of loan (in thousands): 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Past Due Recorded Investment > 90 Days and Accruing Total Past Due Current Total Loans One-to-four family $ 2,476 $ 161 $ 1,787 $ — $ 4,424 $ 147,962 $ 152,386 Home equity 460 — 494 — 954 26,817 27,771 Commercial and multifamily — — — — — 181,004 181,004 Construction and land 440 — — — 440 70,475 70,915 Manufactured homes 321 28 62 — 411 15,083 15,494 Floating homes — — — — — 23,996 23,996 Other consumer 26 1 — — 27 3,905 3,932 Commercial business 149 — — — 149 26,182 26,331 Total $ 3,872 $ 190 $ 2,343 $ — $ 6,405 $ 495,424 $ 501,829 Nonperforming Loans. The following table represents the credit risk profile based on payment activity as of December 31, 2017, by type of loan (in thousands): One-to-four family Home equity Commercial and multifamily Construction and land Manufactured homes Floating homes Other consumer Commercial business Total Performing $ 156,580 $ 27,657 $ 211,068 $ 61,390 $ 16,905 $ 29,120 $ 4,894 $ 40,612 $ 548,226 Nonperforming 837 722 201 92 206 — 8 217 2,283 Total $ 157,417 $ 28,379 $ 211,269 $ 61,482 $ 17,111 $ 29,120 $ 4,902 $ 40,829 $ 550,509 The following table represents the credit risk profile based on payment activity as of December 31, 2016, by type of loan (in thousands): One-to-four family Home equity Commercial and multifamily Construction and land Manufactured homes Floating homes Other consumer Commercial business Total Performing $ 150,170 $ 27,218 $ 180,786 $ 70,915 $ 15,374 $ 23,996 $ 3,932 $ 26,089 $ 498,480 Nonperforming 2,216 553 218 — 120 — — 242 3,349 Total $ 152,386 $ 27,771 $ 181,004 $ 70,915 $ 15,494 $ 23,996 $ 3,932 $ 26,331 $ 501,829 Impaired Loans Impaired loans at December 31, 2017 and 2016, by type of loan were as follows (in thousands): December 31, 2017 Recorded Investment Unpaid Principal Balance Without Allowance With Allowance Total Recorded Investment Related Allowance One- to four- family $ 6,562 $ 3,197 $ 3,059 $ 6,256 $ 360 Home equity 1,149 677 351 1,028 109 Commercial and multifamily 1,722 1,699 — 1,699 — Construction and land 141 100 41 141 10 Manufactured homes 409 23 362 385 247 Other consumer 194 125 69 194 40 Commercial business 1,017 784 216 1,000 130 Total $ 11,194 $ 6,605 $ 4,098 $ 10,703 $ 896 December 31, 2016 Recorded Investment Unpaid Principal Balance Without Allowance With Allowance Total Recorded Investment Related Allowance One- to four- family $ 5,010 $ 2,454 $ 2,295 $ 4,749 $ 536 Home equity 913 446 386 832 121 Commercial and multifamily 1,582 1,221 361 1,582 24 Construction and land 83 — 83 83 35 Manufactured homes 326 91 221 312 59 Other consumer 62 — 62 62 65 Commercial business 616 143 473 616 23 Total $ 8,592 $ 4,355 $ 3,881 $ 8,236 $ 863 Income on impaired loans for the year ended December 31, 2017 and 2016, by type of loan were as follows (in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized One- to four- family $ 5,514 $ 320 $ 5,264 $ 231 Home equity 931 38 868 37 Commercial and multifamily 1,643 96 1,775 87 Construction and land 112 4 87 4 Manufactured homes 349 29 337 25 Other consumer 129 10 34 4 Commercial business 809 62 365 36 Total $ 9,487 $ 559 $ 8,730 $ 424 Forgone interest on nonaccrual loans was $33,000 and $54,000 at December 31, 2017 and 2016, respectively. There were no commitments to lend additional funds to borrowers whose loans were classified as nonaccrual, TDR or impaired at December 31, 2017 and 2016. Troubled debt restructurings. Rate Modification Term Modification Payment Modifications: Combination Modification There was one $1.3 million one- to four-family residential combination loan modified as a TDR during the year ended December 31, 2017. The following TDR loans paid off during the year ended December 31, 2017: three one- to four-family residential loans totaling $403,000, one $14,000 manufactured home loan, one $86,000 home equity loan, one $29,000 land loan, and one $361,000 commercial/multifamily loan. There were no post-modification changes for the unpaid principal balance in loans, net of partial charge-offs, that were recorded as a result of the TDRs for the years ended December 31, 2017 and 2016. There were no TDRs for which there was a payment default within the first 12 months of modification during the years ended December 31, 2017 and 2016. The Company had no commitments to extend additional credit to borrowers owing receivables whose terms have been modified in TDRs. All TDRs are also classified as impaired loans and are included in the loans individually evaluated for impairment in the calculation of the allowance for loan losses. In the ordinary course of business, the Company makes loans to its directors and officers. Certain loans to directors, officers, and employees are offered at discounted rates as compared to other clients as permitted by federal regulations. Employees, officers, and directors are eligible for mortgage loans with an adjustable rate that resets annually to 1% over the rolling cost of funds. Employees and officers are eligible for consumer loans that are 1% below the market loan rate at the time of origination. Director and officer loans are summarized as follows (in thousands): December 31, 2017 2016 Balance, beginning of period $ 3,180 $ 4,093 Advances 248 115 New / (retired) loans, net 1,387 (897 ) Repayments (803 ) (131 ) Balance, end of period $ 4,012 $ 3,180 At December 31, 2017 and 2016, loans totaling $8.1 million and $5.8 million, respectively, represented real estate secured loans that had current loan-to-value ratios above supervisory guidelines. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2017 | |
Mortgage Servicing Rights [Abstract] | |
Mortgage Servicing Rights | Note 6 – Mortgage Servicing Rights The unpaid principal balances of loans serviced for Federal National Mortgage Association ("Fannie Mae") at December 31, 2017 and 2016, totaled $392.6 million and $410.1 million, respectively, and are not included in the Company's consolidated financial statements. We also service loans for other financial institutions for which a servicing fee is received. The unpaid principal balances of loans serviced for other financial institutions at December 31, 2017 and 2016, totaled $19.9 million and $13.8 million, respectively, and are not included in the Company's financial statements. The key economic assumptions used in determining the fair value of mortgage servicing rights at the dates indicated are as follows: At December 31, 2017 2016 Prepayment speed (PSA) 160% 152% Weighted-average life (years) 6.9 7.2 Yield to maturity discount rate 13.0% 13.0% The amounts of contractually specified servicing, late and ancillary fees earned and recorded, net of fair value market adjustments to the mortgage servicing rights, are included in mortgage servicing income on the Consolidated Statements of Income which were $566,000 and $907,000, for the years ended December 31, 2017 and 2016, respectively. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | Note 7 – Premises and Equipment Premises and equipment at December 31, 2017 and 2016 are summarized as follows (in thousands): At December 31, 2017 2016 Land $ 920 $ 653 Buildings and improvements 6,302 4,742 Furniture and equipment 4,715 3,756 Less: Accumulated depreciation and amortization (4,545 ) (3,602 ) Premises and equipment, net $ 7,392 $ 5,549 Depreciation and amortization expense was $943,000 and $793,000, for the years ended December 31, 2017 and 2016, respectively. The Company leases office space in several buildings. Generally, operating leases contain renewal options and provisions requiring the Company to pay property taxes and operating expenses over base period amounts. All rental payments are dependent only upon the lapse of time. Minimum rental payments under non-cancelable operating leases with initial or remaining terms of one year or more are as follows (in thousands): Year ending December 31, Amount 2018 $ 1,147 2019 1,119 2020 998 2021 939 2022 958 Thereafter 5,826 $ 10,987 The total rental expense for the years ended December 31, 2017 and 2016 for all facilities leased under operating leases was approximately $1.1 million and $1,000.0 million, respectively. |
Other Real Estate Owned and Rep
Other Real Estate Owned and Repossessed Assets | 12 Months Ended |
Dec. 31, 2017 | |
Other Real Estate Owned and Repossessed Assets [Abstract] | |
Other Real Estate Owned and Repossessed Assets | Note 8 – Other Real Estate Owned and Repossessed Assets The following table presents activity related to OREO and other repossessed assets for the periods shown (in thousands): Year Ended December 31, 2017 2016 Beginning balance $ 1,172 $ 769 Additions to OREO and repossessed assets — 634 Pay downs/Sales (468 ) (252 ) Write-ups/Gains (Write-downs/Losses) (94 ) 21 $ 610 $ 1,172 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Deposits | Note 9 – Deposits A summary of deposit accounts with the corresponding weighted average cost of funds at December 31, 2017 and 2016, are presented below (dollars in thousands): As of December 31, 2017 As of December 31, 2016 Deposit Balance Wtd. Avg Rate Deposit Balance Wtd. Avg Rate Noninterest-bearing demand $ 69,094 — % $ 60,566 — % Interest-bearing demand 173,413 0.43 150,327 0.34 Savings 49,450 0.21 44,879 0.21 Money market 54,860 0.21 49,042 0.17 Certificates 164,554 1.33 159,742 1.12 Escrow (1) 3,029 — 3,175 — Total $ 514,400 0.61 % $ 467,731 0.53 % (1) Escrow balances shown in noninterest-bearing deposits on the consolidated balance sheets. Scheduled maturities of time deposits at December 31, 2017, are as follows (in thousands): Year Ending December 31, Amount 2018 $ 66,758 2019 68,157 2020 7,827 2021 14,677 Thereafter 7,135 $ 164,554 Savings, demand, and money market accounts have no contractual maturity. Certificates of deposit have maturities of five years or less. The aggregate amount of time deposits in denominations of $250,000 or more at December 31, 2017 and 2016, was approximately $47.1 million and $56.7 million, respectively. Deposits in excess of $250,000 are not federally insured. There were $512,000 and $3.6 million of brokered deposits at December 31, 2017 and 2016, respectively. Deposits from related parties held by the Company were $1.7 million and $1.3 million at December 31, 2017 and 2016, respectively. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Borrowings [Abstract] | |
Borrowings | Note 10 – Borrowings The Company utilizes a loan agreement with the FHLB. 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 December 31, 2017 and 2016, the amount available to borrow under this credit facility was $217.6 million and $197.9 million, respectively. At December 31, 2017, the credit facility was collateralized as follows: one- to four- family mortgage loans with an advance equivalent of $111.5 million, commercial and multifamily mortgage loans with an advance equivalent of $103.0 million and home equity loans with an advance equivalent of $15.2 million. At December 31, 2016, the credit facility was collateralized as follows: one- to four-family mortgage loans with an advance equivalent of $107.2 million, commercial and multifamily mortgage loans with an advance equivalent of $94.4 million and home equity loans with an advance equivalent of $15.9 million. The Company had outstanding borrowings under this arrangement of $59,000.0 million and $54.8 million at December 31, 2017 and 2016, respectively. Additionally, the Company had outstanding letters of credit from the FHLB of Des Moines with a notional amount of $14.5 million and $21.0 million at December 31, 2017 and 2016, respectively, to secure public deposits. The remaining amount available to borrow as of December 31, 2017 and 2016, was $144.1 million and $122.2 million, respectively. All contractual principal repayments of $59,000.0 million, with a weighted-average interest rate of 1.63%, at December 31, 2017 are due within one year. The maximum amount outstanding from the FHLB under term advances at month end during 2017 was $61.5 million and during 2016 was $59.8 million. The average balance outstanding during 2017 was $29.8 million and during 2016 was $36.6 million. The weighted-average interest rate on the borrowings was 1.16% in 2017 and 0.58% in 2016. As a member of the FHLB system, the Bank is required to maintain a minimum level of investment in the FHLB of Des Moines stock based on specific percentages of its outstanding FHLB advances. At December 31, 2017 and 2016, the Company had an investment of $3.1 million and $2.8 million, respectively, in FHLB of Des Moines stock. The Company participates in the Federal Reserve Bank ("FRB") 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 pledges commercial and consumer loans as collateral for this line of credit. The Company had unused borrowing capacity of $51.2 million and $42.0 million and no outstanding borrowings under this program at December 31, 2017 and 2016, respectively. The Company has access to an unsecured Fed Funds line of credit from the Pacific Coast Banker's Bank. The line has a one-year term maturing on June 30, 2018 and is renewable annually. As of December 31, 2017, the amount available under this line of credit was $2.0 million. There was no balance on this line of credit as of December 31, 2017 and 2016, respectively. The Company has access to a Fed Funds line of credit from Zions Bank under a Fed Funds Sweep and Line Agreement. 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 may be terminated by either party. There was no balance on this line of credit as of December 31, 2017 and 2016, respectively. The Company has access to an unsecured Fed Funds line of credit from The Independent Bank (TIB). As of December 31, 2017, the amount available under this line of credit was $10.0 million. The agreement may be terminated by either party. There was no balance on this line of credit as of December 31, 2017 and 2016, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 11 – Fair Value Measurements The following tables present information about the level in the fair value hierarchy for the Company's financial instruments as of December 31, 2017 and 2016 (in thousands): December 31, 2017 Fair Value Measurements Using: Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 FINANCIAL ASSETS: Cash and cash equivalents $ 60,680 $ 60,680 $ 60,680 $ — $ — Available for sale securities 5,435 5,435 — 5,435 — Loans held-for-sale 1,777 1,777 — 1,777 — Loans, net 543,354 543,400 — — 543,400 Accrued interest receivable 1,977 1,977 1,977 — — Mortgage servicing rights 3,426 3,426 — — 3,426 FHLB Stock 3,065 3,065 — — 3,065 FINANCIAL LIABILITIES: Non-maturity deposits 349,846 349,846 — 349,846 — Time deposits 164,554 163,485 — 163,485 — Borrowings 59,000 59,000 — 59,000 — Accrued interest payable 77 77 — 77 — December 31, 2016 Fair Value Measurements Using: Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 FINANCIAL ASSETS: Cash and cash equivalents $ 54,582 $ 54,582 $ 54,582 $ — $ — Available for sale securities 6,604 6,604 — 6,257 347 Loans held-for-sale 871 871 — 871 — Loans, net 495,179 494,289 — — 494,289 Accrued interest receivable 1,816 1,816 1,816 — — Mortgage servicing rights 3,561 3,561 — — 3,561 FHLB Stock 2,840 2,840 — — 2,840 FINANCIAL LIABILITIES: Non-maturity deposits 307,989 307,989 — 307,989 — Time deposits 159,742 159,333 — 159,333 — Borrowings 54,792 54,805 — 54,805 — Accrued interest payable 73 73 — 73 — The following tables present the balance of assets measured at fair value on a recurring basis as of December 31, 2017 and 2016 (in thousands): Fair Value at December 31, 2017 Description Total Level 1 Level 2 Level 3 Municipal bonds $ 3,369 $ — $ 3,369 $ — Agency mortgage-backed securities 2,066 — 2,066 — Mortgage servicing rights 3,426 — — 3,426 Fair Value at December 31, 2016 Description Total Level 1 Level 2 Level 3 Municipal bonds $ 3,353 $ — $ 3,353 $ — Agency mortgage-backed securities 2,904 — 2,904 — Non-agency mortgage-backed securities 347 — — 347 Mortgage servicing rights 3,561 — — 3,561 For the years ended December 31, 2017 and 2016, there were no transfers between Level 1 and Level 2 or 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 December 31, 2017: Financial Instrument Valuation Technique Unobservable Input(s) Range (Weighted Average) Mortgage Servicing Rights Discounted cash flow Prepayment speed assumption 103-412% (160%) Discount rate 13%-15% (13%) 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 December 31, 2016: Financial Instrument Valuation Technique Unobservable Input(s) Range (Weighted Average) Mortgage Servicing Rights Discounted cash flow Prepayment speed assumption 104-396% (152%) Discount rate 13%-15% (13%) Non-agency mortgage-backed securities Discounted cash flow Discount rate 7%-9% (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 assets and liabilities (excluding mortgage servicing rights) measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the years ended December 31, 2017 and 2016 (in thousands): Year Ended December 31, 2017 2016 Beginning balance, at fair value $ 347 $ 428 Principal payments (347 ) (87 ) Change in unrealized loss — 6 Ending balance, at fair value $ — $ 347 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 7 – Mortgage Servicing Rights. The following table presents the balance of assets measured at fair value on a nonrecurring basis and the total losses resulting from these fair value adjustments (in thousands): Fair Value at December 31, 2017 Description Total Level 1 Level 2 Level 3 OREO and repossessed assets $ 610 $ — $ — $ 610 Impaired loans 10,703 — — 10,703 Fair Value at December 31, 2016 Description Total Level 1 Level 2 Level 3 OREO and repossessed assets $ 1,172 $ — $ — $ 1,172 Impaired loans 8,236 — — 8,236 There were no liabilities carried at fair value, measured on a recurring or nonrecurring basis, at December 31, 2017 or December 31, 2016. 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 December 31, 2017: Financial Instrument Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) OREO Market approach Adjusted for difference between comparable sales 0-0% (0%) Impaired loans Market approach Adjusted for difference between comparable sales 0-100% (8%) 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 December 31, 2016: Financial Instrument Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) OREO Market approach Adjusted for difference between comparable sales 0-0% (0%) Impaired loans Market approach Adjusted for difference between comparable sales 0-100% (11%) 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 financial instruments: Cash and cash equivalents, accrued interest receivable and payable AFS Securities Loans Held-for-Sale Loans Mortgage Servicing Rights FHLB stock Bank-owned Life Insurance Deposits Borrowings Off-balance-sheet financial instruments The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company's financial instruments will change when interest rate levels change, which may be favorable or unfavorable to it. 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 the Company's overall interest rate risk. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 12 – Earnings Per 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 that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method described in ASC 260-10-45-60B. 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. If calculated under the two-class method, which assumes the participating securities are not exercised, the difference in EPS is not significant. Earnings per share are summarized in the following table (all figures in thousands except earnings per share): Year Ended December 31, 2017 2016 Net income $ 5,125 $ 5,378 Weighted average number of shares outstanding, basic 2,504 2,487 Effect of potentially dilutive common shares (1) 64 80 Weighted average number of shares outstanding, diluted 2,568 2,567 Earnings per share, basic $ 2.05 $ 2.16 Earnings per share, diluted $ 2.00 $ 2.09 (1) Represents the effect of the assumed exercise of stock options and vesting of non-participating restricted shares, based on the treasury stock method. There were no anti-dilutive securities at December 31, 2017 or 2016. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefits [Abstract] | |
Employee Benefits | Note 13 – Employee Benefits The Company has a 401(k) pension plan that allows employees to defer a portion of their salary into the 401(k) plan. The Company matches a portion of employees' salary deferrals. Pension costs are accrued and funded on a current basis. The Company contributed $132,000 and $139,000 to the plan for the years ended December 31, 2017 and 2016, respectively. The Company also offers a deferred compensation plan for designated senior managers, which provides benefits payable at age 65. Under certain circumstances, benefits are payable to designated beneficiaries. Contributions to the plan are discretionary, and monies set aside to fund the plan are currently held in certificate of deposit accounts at the Company and at December 31, 2017 and 2016 approximated $103,000 and $102,000, respectively. The Company made no contributions to the plan for the years ended December 31, 2017 and 2016. During 2016, the board of directors of the Bank adopted a new nonqualified deferred compensation plan (the "2017 NQDC Plan"), which was effective on January 1, 2017. The 2017 NQDC Plan complies with the deferred compensation rules set forth in Section 409A of the Internal Revenue Code. The purpose of the 2017 NQDC Plan is to provide a select group of management or highly-compensated employees of the Bank with an opportunity to defer the receipt of up to eighty percent (80%) of their annual compensation and to assist the Bank in attracting, retaining and motivating employees of high caliber and experience. In addition to elective deferrals, the Bank may make discretionary contributions to be credited to the account of any or all participants, subject to the vesting requirements set forth in the 2017 NQDC Plan. Participant are credited with an investment return determined as if the account were invested in one or more investment funds made available by the Compensation Committee and as elected by the participant. Distributions of vested account balances are made upon death or after certain payment events including disability, separation from service or separation from service upon a change in control. Distributions are be made in a single cash payment or at the election of the participant in the case of separation from service in annual installments for a period of up to ten (10) years. The obligations of the Bank under the 2017 NQDC Plan are general unsecured obligations of the Bank to pay deferred compensation in the future to eligible participants in accordance with the terms of the 2017 NQDC Plan from the general assets of the Bank, although the Bank may establish a trust to hold amounts which the Bank may use to satisfy 2017 NQDC Plan distributions from time to time. Distributions from the 2017 NQDC Plan are governed by the Internal Revenue Code and the 2017 NQDC Plan. The Bank may, at any time, in its sole discretion, terminate the 2017 NQDC Plan or amend or modify the 2017 NQDC Plan, in whole or in part, except that no such termination, amendment or modification shall have any retroactive effect to reduce any amounts deemed to be accrued and vested prior to such amendment. During the year ended December 31, 2017, the Bank made discretionary contributions to the 2017 NQDC Plan in the amount of $. Supplemental Executive Retirement Plans. The Company maintains two supplemental executive retirement plans for the benefit of Ms. Stewart, which are intended to be unfunded, non-contributory defined benefit plans maintained primarily to provide her with supplemental retirement income. The first supplemental executive retirement plan ("SERP 1") was effective as of August 2007. The second supplemental executive retirement plan ("SERP 2") was effective as of December 30, 2011, at which time the benefits under SERP 1 were frozen. At that time, the Company also entered into a Confidentiality, Non-Competition, and Non-Solicitation Agreement with Ms. Stewart, which is discussed below. Under the terms of SERP 1, as amended, Ms. Stewart is entitled to receive $53,320 per year for life commencing on the first day of the month following her separation from service (as defined in SERP 1) for any reason from Sound Community Bank. No payments will be made under SERP 1 in the event of Ms. Stewart's death and any payments that have commenced will cease upon death. In the event Ms. Stewart is involuntarily terminated in connection with a change in control (as defined in SERP 1), she will be entitled to receive the annual benefit described in the first sentence of this paragraph commencing upon such termination (subject to any applicable cutback for payments after a change in control as required by Section 280G of the Internal Revenue Code). Under the terms of SERP 2, as amended, upon Ms. Stewart's termination of employment with Sound Community Bank for any reason other than death, she will be entitled to receive additional retirement benefits of $78,030 per year for life commencing on the first day of the month following the later of age 70 or her separation from service (as defined in SERP 2) from Sound Community Bank. In the event of Ms. Stewart's death, her beneficiary will be entitled to a single lump sum payment within 90 days thereafter in an amount equal to the account value as of the death benefit valuation date, or approximately $1.1 million at December 31, 2017. If a change in control occurs (as defined in SERP 2), Ms. Stewart will receive her full retirement benefit under SERP 2 commencing upon the first day of the month following her separation from service from Sound Community Bank. Confidentiality, Non-Competition, and Non-Solicitation Agreement. Effective December 30, 2011, Sound Community Bank entered into a Confidentiality, Non-competition, and Non-solicitation Agreement (the "Non-compete Agreement") with Ms. Stewart. The Non-compete Agreement commences upon Ms. Stewart's termination of employment with us and expires upon the earlier of (a) 36 months from the date of Ms. Stewart's separation from service (as defined in the Non-compete Agreement") or (b) the date she begins receiving retirement benefits under the SERP 2, which time frame is referred to as the "Restricted Period." In consideration of Ms. Stewart's non-competition and non-solicitation obligations under the Non-compete Agreement, Ms. Stewart will be entitled to receive a bi-monthly payment, in an amount equal to $3,541.67, which amount shall be paid in equal bi-monthly payments during the Restricted Period beginning on the fifth day of the month following her separation from service with Sound Community Bank, except if her termination of employment occurs for good reason (as defined in the Non-compete Agreement). In the event Ms. Stewart employment terminates for good reason, she will be entitled to receive an amount equal to 150 percent of her then-base salary plus the average of her past three years short term bonus pay, or approximately $755,000 at December 31, 2017, payable in 12 monthly installments beginning on the first day of the month following her termination. If Ms. Stewart terminates her employment with us for good reason within 24 months following a change in control (as defined in the Non-compete Agreement), Ms. Stewart will be entitled to receive the amount described in the preceding sentence, but payable in a lump sum. Ms. Stewart's benefits under the Non-compete Agreement are forfeited if she breaches the terms of the agreement. No payments will be made under the agreement if Ms. Stewart's employment ceases on account of her disability or death (and payments that have commenced will cease upon death), or if she is otherwise ineligible to work in the financial product or services industry. Stock Options and Restricted Stock The Company currently has two existing Equity Incentive Plans, a 2008 Equity Incentive 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 December 31, 2017, on an adjusted basis, awards for stock options totaling 265,797 shares and awards for restricted stock totaling 107,213 shares of Company common stock have been granted, net of any forfeitures, to participants in the Plan. During the years ended December 31, 2017 and 2016, share-based compensation expense totaled $523,000 and $525,000, respectively. 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 of either two or 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 plan award activity during the period ended December 31, 2017: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term In Years Aggregate Intrinsic Value Outstanding at the beginning of the year 170,057 $ 15.41 6.44 $ 2,141,018 Granted 32,010 28.34 Exercised (15,100 ) 9.82 Forfeited (604 ) 28.21 Expired — Outstanding at December 31, 2017 186,363 18.04 6.26 2,977,279 Exercisable 118,803 16.34 5.66 2,100,970 Expected to vest, assuming a 0% forfeiture rate over the vesting term 67,560 $ 21.05 7.32 $ 876,309 As of December 31, 2017, there was $523,000 of total unrecognized compensation cost related to non-vested stock options granted under the Plan. The cost is expected to be recognized over the remaining weighted-average vesting period of 1.30 years. The fair value of each option grant is estimated as of the grant date using the Black-Scholes option-pricing model. The fair value of options granted in 2017 was determined using the following weighted-average assumptions as of the grant date. 2017 2016 Annual dividend yield 1.28 % 1.03 % Expected volatility 22.99 % 25.48 % Risk-free interest rate 2.20 % 1.64 % Expected term 6.50 years 6.92 years Weighted-average grant date fair value per option granted $ 6.62 $ 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 to date under the 2008 Plan provide for vesting in 20 percent annual increments commencing one year from the grant date. The restricted stock awards granted to date under the 2013 Plan provide for immediate vesting of 33.33% of a recipient's award with the balance of an individual's award under the 2013 Plan vesting in two equal annual installments commencing one year from the grant date. The following is a summary of the Company's non-vested restricted stock awards for the year ended December 31, 2017: Non-vested Shares Shares Weighted-Average Grant-Date Fair Value Per Share Aggregate Intrinsic Value Per Share Non-vested at January 1, 2017 26,138 $ 18.08 Granted 576 28.34 Vested (14,929 ) 17.61 Forfeited — — Expired — Non-vested at December 31, 2017 11,785 19.05 14.97 Expected to vest assuming a 0% forfeiture rate over the vesting term 11,785 $ 19.05 $ 14.97 As of December 31, 2017, there was $329,000 of unrecognized compensation cost related to non-vested restricted stock granted under the Plan. The cost is expected to be recognized over the weighted-average vesting period of 0.28 years. The total fair value of shares vested for the years ended December 31, 2017 and 2016 was $263,000 and $272,000, 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 conversion to a full stock company from the mutual holding company structure, the ESOP borrowed an additional $1.1 million from the Company to purchase common stock of the Company. The first loan for $1.2 million was paid off in 2017. The remaining loan for $1.1 million is being repaid principally by the Bank through contributions to the ESOP over a period of ten years. The interest rate on the loan is fixed at 2.25%, per annum. As of December 31, 2017, the remaining balance of the ESOP loan was $477,000. Neither the loan balance nor the related interest expense is reflected on the consolidated financial statements. At December 31, 2017, the ESOP was committed to release 21,440 shares of the Company's common stock to participants and held 45,360 unallocated shares remaining to be released in future years. The fair value of the 176,964 restricted shares held by the ESOP trust was $6.0 million at December 31, 2017. ESOP compensation expense included in salaries and benefits was $640,000 and $491,000 for the years ended December 31, 2017 and 2016, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | Note 14 – Income Taxes The provision for income taxes at December 31, 2017 and 2016 was as follows (in thousands): At December 31, 2017 2016 Current $ 2,962 $ 2,718 Deferred (203 ) (23 ) Rate change 309 — Total tax expense $ 3,068 $ 2,695 On December 22, 2017, the U.S. Government enacted the Tax Act. The Tax Act amends the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. For businesses, the Tax Act reduces the corporate federal income tax rate from a maximum of 34% to a flat 21% rate. The corporate income tax rate reduction was effective January 1, 2018. The Tax Act required a revaluation of the Company's deferred tax assets and liabilities to account for the future impact of lower corporate tax rates and other provisions of the legislation. As a result of the Company's revaluation, the Company's deferred tax asset was reduced through an increase to the provision for income tax. A reconciliation of the provision for income taxes for the years ended December 31, 2017 and 2016, with amounts determined by applying the statutory U.S. federal income tax rate to income before income taxes, is as follows (dollars in thousands): Year Ended December 31, 2017 2016 Provision at statutory rate $ 2,786 $ 2,745 Tax-exempt income (79 ) (76 ) Rate change 309 — Other 52 26 3,068 2,695 Federal Tax Rate 34.0 % 34.0 % Tax exempt rate (1.0 ) (0.9 ) Rate change 3.8 — Other 0.6 0.3 Effective tax rate 37.4 % 33.4 % The following table reflects the temporary differences that gave rise to the components of the Company's deferred tax assets at December 31, 2017 and 2016 (in thousands): At December 31, 2017 2016 Deferred tax assets Deferred compensation and supplemental retirement $ 342 $ 444 Other, net 66 182 Equity based compensation 84 117 Intangible assets 53 — Allowance for loan losses 844 912 Total deferred tax assets 1,389 1,655 Deferred tax liabilities Prepaid expenses (62 ) (86 ) FHLB stock dividends (87 ) (141 ) Unrealized gain on securities (35 ) (42 ) Depreciation (258 ) (128 ) Intangible assets — (4 ) Mortgage servicing rights (67 ) (114 ) Deferred loan costs (380 ) (539 ) Total deferred tax liabilities (889 ) (1,054 ) Net deferred tax asset $ 500 $ 601 As of December 31, 2017 and 2016, the Company had no unrecognized tax benefits. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in "Provision for income taxes" in the Consolidated Statements of Income. During the years ended December 31, 2017 and 2016, the Company recognized no interest and penalties. The Company or its subsidiary files an income tax return in the U.S. federal jurisdiction. With few exceptions, the Company is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2014. |
Minimum Regulatory Capital Requ
Minimum Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2017 | |
Minimum Regulatory Capital Requirements [Abstract] | |
Minimum Regulatory Capital Requirements | Note 15 – Minimum Regulatory Capital Requirements The Federal Reserve and the FDIC approved final capital rules in July 2013 that substantially amended the existing capital rules for banks. These rules reflect, in part, certain standards initially adopted by the Basel Committee on Banking Supervision in December 2010 (which standards are commonly referred to as "Basel III") as well as requirements contemplated by the Dodd-Frank Wall Street Reform and Consumer Protection Act. Under the amended capital rules, there is a capital ratio of common equity Tier 1 ("CET1") capital to risk-weighted assets ratio. CET1 capital generally consists of retained earnings and common stock (subject to certain adjustments). In March 2015, the Bank exercised a one-time irrevocable option to exclude investment components of accumulated other comprehensive income. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined in the regulations) and Tier 1 capital to average assets (as defined in the regulations). The Bank's actual capital amounts (in thousands) and ratios as of December 31, 2017 and 2016 are presented in the following table: Actual Minimum Capital Requirements Minimum Required to be Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio As of December 31, 2017 Tier 1 Capital to total adjusted assets (1) $ 62,432 10.10 % $ 24,721 ≥ 4.0 % $ 30,902 ≥ 5.0 % Common Equity Tier 1 risk-based capital ratio (2) 62,432 12.03 23,354 ≥ 4.5 33,733 ≥ 6.5 Tier 1 Capital to risk-weighted assets (2) 62,432 12.03 31,138 ≥ 6.0 41,518 ≥ 8.0 Total Capital to risk-weighted assets (2) $ 67,868 13.08 % $ 41,518 ≥ 8.0 % $ 51,897 ≥ 10.0 % As of December 31, 2016 Tier 1 Capital to total adjusted assets (3) $ 57,406 9.99 % $ 22,992 ≥ 4.0 % $ 28,740 ≥ 5.0 % Common Equity Tier 1 risk-based capital ratio (4) 57,406 12.02 21,490 ≥ 4.5 31,041 ≥ 6.5 Tier 1 Capital to risk-weighted assets (4) 57,406 12.02 28,653 ≥ 6.0 38,204 ≥ 8.0 Total Capital to risk-weighted assets (4) $ 62,423 13.07 % $ 38,204 ≥ 8.0 % $ 47,755 ≥ 10.0 % (1) Based on total adjusted assets of $618,035 at December 31, 2017. (2) Based on risk-weighted assets of $518,970 at December 31, 2017. (3) Based on total adjusted assets of $574,792 at December 31, 2016. (4) Based on risk-weighted assets of $477,548 at December 31, 2016. In addition to the minimum CET1, Tier 1 total capital and leverage ratios, the Bank now has to maintain a capital conservation buffer consisting of additional CET1 capital above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses based on percentages of eligible retained income that could be utilized for such actions. The capital conservation buffer requirement began to be phased on January 1, 2016 when more than 0.625% of risk-weighted assets was required, and increases by 0.625% on each subsequent January 1, until fully implemented to an amount equal to 2.5% of risk-weighted assets in January 2019. As of December 31, 2017, the conservation buffer requirement was 1.25% and the Bank's actual conservation buffer was 5.08%. For a bank holding company with less than $1.0 billion in assets, the capital guidelines apply on a bank only basis and the Federal Reserve expects the holding company's subsidiary banks to be well capitalized. If Sound Financial Bancorp was subject to regulatory guidelines for bank holding companies with $1.0 billion or more in assets, at December 31, 2017 Sound Financial Bancorp would have exceeded all regulatory capital requirements. The estimated regulatory capital ratios calculated for Sound Financial Bancorp as of December 31, 2017 were 10.35% for Tier 1 leverage-based capital, 12.33% for both Common Equity Tier 1 risk-based capital, Tier 1 Capital to risk-based assets and 13.37% for total risk-based capital. |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2017 | |
Concentrations of Credit Risk [Abstract] | |
Concentrations of Credit Risk | Note 16 – Concentrations of Credit Risk Most of the Company's business activity is with clients located in the state of Washington. A substantial portion of the loan portfolio is represented by real estate loans throughout western Washington. The ability of the Company's debtors to honor their contracts is dependent upon the real estate and general economic conditions in the area. Loans to one borrower are generally limited by federal banking regulations to 15% of the Company's unimpaired capital and surplus. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 17 – Commitments and Contingencies The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its clients. These financial instruments generally represent a commitment to extend credit in the form of loans. The instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Company's exposure to credit loss, in the event of nonperformance by the other party to the financial instrument for commitments to extend credit, is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance-sheet instruments. Commitments to extend credit are agreements to lend to a client as long as there is no violation of any condition established by the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each client's creditworthiness on a case-by-case basis. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management's credit evaluation of the client. Financial instruments whose contract amount represents credit risk were as follow (in thousands): At December 31, 2017 2016 Commitments to make loans $ 1,689 $ 3,942 Unfunded construction commitments 39,400 33,916 Unused lines of credit 32,440 24,753 Irrevocable letters of credit 1,400 185 Total loan commitments $ 74,929 $ 62,796 At December 31, 2017, fixed rate loan commitments totaled $3.4 million and had a weighted-average interest rate of 4.29%. At December 31, 2016, fixed rate loan commitments totaled $5.8 million and had a weighted-average interest rate of 4.02%. Commitments for credit may expire without being drawn upon. Therefore, the total commitment amount does not necessarily represent future cash requirements of the Company. These commitments are not reflected in the financial statements. At December 31, 2017, the Company had letters of credit issued by the FHLB with a notional amount of $14.5 million in order to secure Washington State Public Funds. In the ordinary course of business, the Company sells loans without recourse that may have to be subsequently repurchased due to defects that occurred during the origination of the loan. The defects are categorized as documentation errors, underwriting errors, early payment defaults, and fraud. When a loan sold to an investor without recourse fails to perform, the investor will typically review the loan file to determine whether defects in the origination process occurred. If a defect is identified, the Company may be required to either repurchase the loan or indemnify the investor for losses sustained. If there are no defects, the Company has no commitment to repurchase the loan. As of December 31, 2017 and 2016, the maximum amount of these guarantees totaled $392.6 million and $410.1 million, respectively. These amounts represent the unpaid principal balances of the Company's loans serviced for others' portfolios. We repurchased one loan from Fannie Mae during the year ended December 31, 2017 totaling $135,000. There were no loans repurchased during the year ended December 31, 2016. The Company pays certain medical, dental, prescription, and vision claims for its employees, on a self-insured basis. The Company has purchased stop-loss insurance to cover claims that exceed stated limits and has recorded estimated reserves for the ultimate costs for both reported claims and claims incurred but not reported, which are not considered significant at December 31, 2017 or 2016. At various times, the Company may be the defendant in various legal proceedings arising in connection with its business. It is the opinion of management that the financial position and the results of operations of the Company will not be materially adversely affected by the outcome of these legal proceedings and that adequate provision has been made in the accompanying consolidated financial statements. |
Parent Company Financial Inform
Parent Company Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Parent Company Financial Information [Abstract] | |
Parent Company Financial Information | Note 18 – Parent Company Financial Information The Balance Sheets, Statements of Income, and Statements of Cash Flows for Sound Financial Bancorp (Parent Only) are presented below (dollars in thousands): Balance sheets December 31, 2017 2016 Assets Cash and cash equivalents $ 882 $ 1,916 Investment in Sound Community Bank 63,535 57,699 Other assets 743 660 Total assets $ 65,160 $ 60,275 Liabilities and Stockholders' Equity Other liabilities — — Total liabilities — — Stockholders' equity 65,160 60,275 Total liabilities and stockholders' equity $ 65,160 $ 60,275 Statements of Income Year Ended December 31, 2017 2016 Dividend from subsidiary $ — $ 1,750 Other expenses (243 ) (220 ) Income before income tax benefit and equity in undistributed net Income of subsidiary (243 ) 1,530 Income tax benefit 83 75 Equity in undistributed earnings of subsidiary 5,285 3,773 Net income $ 5,125 $ 5,378 Statements of Cash Flows Year Ended December 31, 2017 2016 Cash flows from operating activities: Net income $ 5,125 $ 5,378 Adjustments to reconcile net income to net cash provided by operating activities Other, net (83 ) (75 ) Change in undistributed equity of subsidiary (5,285 ) (3,773 ) Net cash used by operating activities (243 ) 1,530 Cash flows from investing activities: ESOP shares released 671 515 Net cash provided by investing activities 671 515 Cash flows from financing activities: Dividends paid (1,505 ) (745 ) Stock options exercised 43 165 Net cash used by financing activities (1,462 ) (580 ) Net increase in cash (1,034 ) 1,465 Cash and cash equivalents at beginning of year 1,916 451 Cash and cash equivalents at end of year $ 882 $ 1,916 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Event [Abstract] | |
Subsequent Event | Note 19 – Subsequent Events On January 25, 2018, the Company declared a quarterly cash dividend of $0.12 per common share, payable February 26, 2018 to shareholders of record at the close of business February 12, 2018. |
Organization and Significant 28
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Organization and Significant Accounting Policies [Abstract] | |
Subsequent events | Subsequent events – |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The accompanying consolidated financial statements include the accounts of Sound Financial Bancorp and its wholly-owned subsidiary Sound Community Bank. All significant intercompany balances and transactions between Sound Financial Bancorp and its subsidiary have been eliminated in consolidation. |
Cash and cash equivalents | Cash and cash equivalents |
Investment securities | Investment securities Unrealized gains and losses, net of the related deferred tax effect, are reported as a net amount in accumulated other comprehensive income (loss) on AFS securities in the consolidated balance sheets. Realized gains and losses on AFS securities, determined using the specific identification method, are included in earnings. Amortization of premiums and accretion of discounts are recognized as adjustments to interest income using the interest method over the period to maturity. The Company reviews investment securities on an ongoing basis for the presence of other-than-temporary impairment ("OTTI") or permanent impairment, taking into consideration current market conditions, fair value in relation to cost, extent and nature of the change in fair value, issuer rating changes and trends, whether the Company intends to sell a security or if it is likely that the Company will be required to sell the security before recovery of its amortized cost basis of the investment, which may be maturity, and other factors. For debt securities, if the Company intends to sell the security or it is likely that it will be required to sell the security before recovering its cost basis, the entire impairment loss would be recognized in earnings as an OTTI. If the Company does not intend to sell the security and it is not likely that we will be required to sell the security but we do not expect to recover the entire amortized cost basis of the security, only the portion of the impairment loss representing credit losses would be recognized in earnings. The credit loss on a security is measured as the difference between the amortized cost basis and the present value of the cash flows expected to be collected. Projected cash flows are discounted by the original or current effective interest rate depending on the nature of the security being measured for potential OTTI. The remaining impairment related to all other factors, the difference between the present value of the cash flows expected to be collected and the fair value, is recognized as a charge to other comprehensive income ("OCI"). The Company does not intend to sell these securities and it is more likely than not that it will not be required to sell the securities before anticipated recovery of the remaining amortized cost basis. The Company closely monitors its investment securities for changes in credit risk. The current market environment significantly limits the Company's ability to mitigate its exposure to valuation changes in these securities by selling them. Accordingly, if market conditions deteriorate further and the Company determines its holdings of these or other investment securities are OTTI, its future earnings, stockholders' equity, regulatory capital and continuing operations could be materially adversely affected. |
Loans held-for-sale | Loans held-for-sale |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balance adjusted for any charge-offs, allowance for loan losses, and any deferred fees or costs on origination of loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method over the contractual life of the loan for term loans or the straight-line method for open ended loans. The accrual of interest is discontinued at the time the loan is 90 days past due or if, in management's opinion, the borrower may be unable to meet payment of obligations as they become due, as well as when required by regulatory provisions. Loans are typically charged off no later than 120 days past due, unless secured by collateral. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all of the principal and interest amounts contractually due are brought current, future payments are reasonably assured and payments have been received for twelve consecutive months. A loan is considered impaired when it is probable that the Company will be unable to collect all amounts (principal and interest) due according to the contractual terms of the original loan agreement. When a loan has been identified as being impaired, the amount of the impairment is measured by using discounted cash flows, except when, as a practical expedient, the current fair value of the collateral, reduced by costs to sell, is used. When the measurement of the impaired loan is less than the recorded investment in the loan (including accrued interest), impairment is recognized by charging off the impaired portion or creating or adjusting a specific allocation of the allowance for loan losses. A loan is classified as a troubled debt restructuring ("TDR") when certain concessions have been made to the contractual terms, such as reductions of interest rates or deferrals of interest or principal payments due to the borrower's deteriorated financial condition. All TDRs are reported and accounted for as impaired loans. |
Allowance for loan losses | Allowance for loan losses The allowance for loan losses is maintained at a level sufficient to provide for probable credit losses based upon evaluating known and inherent risks in the loan portfolio. The allowance is provided based upon management's continuing analysis of the pertinent factors underlying the quality of the loan portfolio. These factors include changes in the size and composition of the loan portfolio, delinquency levels, actual loan loss experience, current economic conditions, and detailed analysis of individual loans for which full collectability may not be assured. The detailed analysis includes techniques to estimate the fair value of loan collateral and the existence of potential alternative sources of repayment. The allowance consists of specific, general, and unallocated components. The specific component relates to loans that are classified as doubtful, substandard, or special mention. The Company considers installment loans to be pools of smaller balance, homogenous loans that are collectively evaluated for impairment, unless such loans are subject to a TDR agreement. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan are lower than the carrying value of that loan. The general component covers non-classified loans and is based upon historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. The appropriateness of the allowance for loan losses is estimated based upon those factors and trends identified by management at the time consolidated financial statements are prepared. When available information confirms that specific loans or portions thereof are uncollectible, identified amounts are charged against the allowance for loan losses. The existence of some or all of the following criteria will generally confirm that a loss has been incurred: the loan is significantly delinquent and the borrower has not demonstrated the ability or intent to bring the loan current; the Company has no recourse to the borrower, or if it does, the borrower has insufficient assets to pay the debt; the estimated fair value of the loan collateral is significantly below the current loan balance, and there is little or no near-term prospect for improvement. The ultimate recovery of all loans is susceptible to future market factors beyond the Company's control. These factors may result in losses or recoveries differing significantly from those provided in the consolidated financial statements. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company's allowance for loan losses, and may require the Company to make additions to the allowance based on their judgment about information available to them at the time of their examinations. |
Transfers of financial assets | Transfers of financial assets |
Mortgage servicing rights ("MSR") | Mortgage servicing rights ("MSR") |
Premises and equipment | Premises and equipment |
Bank-owned life insurance, net | Bank-owned life insurance, net |
Federal Home Loan Bank stock | Federal Home Loan Bank stock |
Other real estate owned and repossessed assets | Other real estate owned and repossessed assets In some instances, the Company may make loans to facilitate the sales of OREO. Management reviews all sales for which it is the lending institution. Any gains related to sales of other real estate owned may be deferred until the buyer has a sufficient investment in the property. |
Income Taxes | Income Taxes |
Segment reporting | Segment reporting |
Off-balance-sheet credit-related financial instruments | Off-balance-sheet credit-related financial instruments |
Advertising costs | Advertising costs |
Comprehensive income | Comprehensive income |
Intangible assets | Intangible assets |
Employee stock ownership plan | Employee stock ownership plan Unearned ESOP shares are shown as a reduction of stockholders' equity. When the shares are released, unearned common shares held by the ESOP are reduced by the cost of the ESOP shares released and the differential between the fair value and the cost is charged to additional paid in capital. The loan receivable from the ESOP to the Company is not reported as an asset nor is the debt of the ESOP reported as a liability on the Company's Consolidated Statements of Condition. |
Earnings Per Common Share | Earnings Per Common Share |
Fair value | Fair value Fair values of the Company's financial instruments are based on the fair value hierarchy which requires an entity to maximize the use of observable inputs, typically market data obtained from third parties, and minimize the use of unobservable inputs, which reflects its estimates for market assumptions, when measuring fair value. Three levels of valuation inputs are ranked in accordance with the prescribed fair value hierarchy as follows: Level 1: Level 2: Level 3: In determining the appropriate levels, the Company performs a detailed analysis of the assets and liabilities that are subject to fair value measurements. In certain cases, the inputs used to measure fair value of an asset or liability may fall into different levels of the fair value hierarchy. The level within which the fair value measurement is categorized is based on the lowest level unobservable input that is significant to the fair value measurement in its entirety. Therefore, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable. |
Share-Based Compensation | Share-Based Compensation |
Reclassifications | Reclassifications |
Accounting Pronouncements Rec29
Accounting Pronouncements Recently Issued or Adopted (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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 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 recognized at the date of initial application. As a financial institution, the Company's largest component of revenue, interest income, is excluded from the scope of this ASU. Accordingly, the adoption of ASU No. 2014-09 is not expected to have a material impact 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 adoption of ASU No. 2016-01 is not expected to have a material impact on the Company's consolidated financial statements. Management is in the planning stages of developing processes and procedures to comply with the disclosure requirements of this ASU, which could impact the disclosures the Company makes related to the fair value of its financial instruments. 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. Although an estimate of the impact of the new leasing standard has not yet been determined, once adopted, the Company expects to report higher assets and liabilities as a result of including right-of-use assets and lease liabilities related to certain banking offices and certain equipment under non-cancelable operating lease agreements, however, based on current leases the adoption is not expected to have a material impact on the Company's consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. 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 has begun the process to implement this new standard by working with a vendor that specializes in this area. While the Company has not quantified the impact of this ASU, it does expect changing from the current incurred loss model to an expected loss model will result in an earlier recognition of losses. The Company also expects that once adopted the allowance for loan losses will increase, however, until its evaluation is complete the magnitude of the increase is unknown. 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. In March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20). ASU 2017-08 is intended to amend the amortization period for certain purchased callable debt securities held at a premium. Under ASU 2017-08, the FASB is shortening the amortization period for the premium to the earliest call date. Under current GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. ASU 2017-08 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. The Company is reviewing its securities portfolio to assess the impact the adoption of this ASU will have on the Company's consolidated financial statements but does not expect this ASU to have a material impact on the Company's consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation--Stock Compensation (Topic 718): Scope of Modification Accounting. The ASU was issued to provide clarity as to when to apply modification accounting when there is a change in the terms or conditions of a share-based payment award. According to this ASU, an entity should account for the effects of a modification unless the fair value, vesting conditions, and balance sheet classification of the award is the same after the modification as compared to the original award prior to the modification. The standard is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The adoption of ASU No. 2017-09 is not expected to have a material impact on the Company's consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This ASU amends the hedge accounting recognition and presentation requirements in ASC 815 to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity's risk management activities by better aligning the entity's financial reporting for hedging relationships with those risk management activities and (2) reduce the complexity of and simplify the application of hedge accounting by preparers. The amendments in this ASU permit hedge accounting for hedging relationships involving nonfinancial risk and interest rate risk by removing certain limitations in cash flow and fair value hedging relationships. In addition, the ASU requires an entity to present the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported. The amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018 and early adoption is permitted. The adoption of ASU No. 2017-12 is not expected to have a material impact on the Company's consolidated financial statements. In February 2018, FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220). This ASU was issued to allow a reclassification from accumulated other comprehensive income to retained earnings from stranded tax effects resulting from the revaluation of the net deferred tax asset ("DTA") to the new corporate tax rate of 21% as a result of the Tax Act. The ASU is effective for reporting periods beginning after December 15, 2018 with early adoption permitted. The adoption of ASU No. 2018-02 is not expected to have a material impact on the Company's consolidated financial statements. Application of US GAAP in Accounting for the Tax Cuts and Jobs Act On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118) to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the U.S. Tax Cuts and Jobs Act of 2017 (the "Tax Act"). SAB 118 provides guidance to registrants under three scenarios: (1) Measurement of certain income tax effects is complete, (2) Measurement of certain income tax effects can be reasonably estimated and (3) Measurement of certain income tax effects cannot be reasonably estimated. SAB 118 provides a one year measurement period for the registrant to complete its accounting for certain income tax effects that are considered provisional or for which reasonable estimates cannot be made. The Company recognized the income tax effects of the 2017 Tax Act in its 2017 financial statements in accordance with SAB 118. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 AFS securities and the corresponding amounts of gross unrealized gains and losses at December 31, 2017 and 2016 were as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2017 Municipal bonds $ 3,240 $ 155 $ (26 ) $ 3,369 Agency mortgage-backed securities 2,030 36 — 2,066 Total $ 5,270 $ 191 $ (26 ) $ 5,435 December 31, 2016 Municipal bonds $ 3,262 $ 127 $ (36 ) $ 3,353 Agency mortgage-backed securities 2,858 49 (3 ) 2,904 Non-agency mortgage-backed securities 362 — (15 ) 347 Total $ 6,482 $ 176 $ (54 ) $ 6,604 |
Amortized Cost and Fair Value of Mortgage-backed Securities by Contractual Maturity | The amortized cost and fair value of AFS securities at December 31, 2017, 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. Investments not due at a single maturity date, primarily mortgage-backed investments, are shown separately. December 31, 2017 Amortized Cost Fair Value Weighted-Average Yield Due in one to five years $ 1,587 $ 1,573 1.51 % Due after five to ten years 154 165 3.53 Due after ten years 1,499 1,631 4.22 Mortgage-backed securities 2,030 2,066 3.56 Total $ 5,270 $ 5,435 3.16 % |
Aggregate Fair Value and Gross Unrealized Loss in Continuous Unrealized Loss Position | The following tables summarize the aggregate fair value and gross unrealized loss by length of time of those investments that have been in a continuous unrealized loss position at December 31, 2017 and 2016 (in thousands): December 31, 2017 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ — $ — $ 1,302 $ (26 ) $ 1,302 $ (26 ) Total $ — $ — $ 1,302 $ (26 ) $ 1,302 $ (26 ) December 31, 2016 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ 1,313 $ (36 ) $ — $ — $ 1,313 $ (36 ) Agency mortgage-backed securities — — 1,125 (3 ) 1,125 (3 ) Non-agency mortgage-backed securities — — 347 (15 ) 347 (15 ) Total $ 1,313 $ (36 ) $ 1,472 $ (18 ) $ 2,785 $ (54 ) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Loans [Abstract] | |
Composition of Loan Portfolio, Excluding Loans Held for Sale | The composition of the loan portfolio, excluding loans held-for-sale, at December 31, 2017 and 2016 is as follows (in thousands): At December 31, 2017 2016 Real estate loans: One- to four- family $ 157,417 $ 152,386 Home equity 28,379 27,771 Commercial and multifamily 211,269 181,004 Construction and land 61,482 70,915 Total real estate loans 458,547 432,076 Consumer loans: Manufactured homes 17,111 15,494 Floating homes 29,120 23,996 Other consumer 4,902 3,932 Total consumer loans 51,133 43,422 Commercial business loans 40,829 26,331 Total loans 550,509 501,829 Deferred fees (1,914 ) (1,828 ) Total loans, gross 548,595 500,001 Allowance for loan losses (5,241 ) (4,822 ) Total loans, net $ 543,354 $ 495,179 |
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 unpaid principal balance in loans, net of partial charge-offs by portfolio segment and based on impairment method as of December 31, 2017 (in thousands): One-to-four family Home equity Commercial and multifamily Construction and land Manufactured homes Floating homes Other consumer Commercial business Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ 360 $ 109 $ — $ 10 $ 247 $ — $ 40 $ 130 $ — $ 896 Collectively evaluated for impairment 881 173 1,250 365 97 169 37 237 1,136 4,345 Ending balance $ 1,241 $ 282 $ 1,250 $ 375 $ 344 $ 169 $ 77 $ 367 $ 1,136 $ 5,241 Loans receivable: Individually evaluated for impairment $ 6,256 $ 1,028 $ 1,699 $ 141 $ 385 $ — $ 194 $ 1,000 $ — $ 10,703 Collectively evaluated for impairment 151,161 27,351 209,570 61,341 16,726 29,120 4,708 39,829 — 539,806 Ending balance $ 157,417 $ 28,379 $ 211,269 $ 61,482 $ 17,111 $ 29,120 $ 4,902 $ 40,829 $ — $ 550,509 The following table presents the balance in the allowance for loan losses and the unpaid principal balance in loans, net of partial charge-offs by portfolio segment and based on impairment method as of December 31, 2016 (in thousands): One-to-four family Home equity Commercial and multifamily Construction and land Manufactured homes Floating homes Other consumer Commercial business Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ 536 $ 121 $ 24 $ 35 $ 59 $ — $ 65 $ 23 $ — $ 863 Collectively evaluated for impairment 1,006 257 1,120 424 109 132 47 152 712 3,959 Ending balance $ 1,542 $ 378 $ 1,144 $ 459 $ 168 $ 132 $ 112 $ 175 $ 712 $ 4,822 Loans receivable: Individually evaluated for impairment $ 4,749 $ 832 $ 1,582 $ 83 $ 312 $ — $ 62 $ 616 $ — $ 8,236 Collectively evaluated for impairment 147,637 26,939 179,422 70,832 15,182 23,996 3,870 25,715 — 493,593 Ending balance $ 152,386 $ 27,771 $ 181,004 $ 70,915 $ 15,494 $ 23,996 $ 3,932 $ 26,331 $ — $ 501,829 |
Activity in Allowance for Loan Losses | The following table summarizes the activity in the allowance for loan losses for the year ended December 31, 2017 (in thousands): Beginning Allowance Charge-offs Recoveries Provision Ending Allowance One-to-four family $ 1,542 $ — $ — $ (301 ) $ 1,241 Home equity 378 (89 ) 33 (40 ) 282 Commercial and multifamily 1,144 (24 ) 1 129 1,250 Construction and land 459 — — (84 ) 375 Manufactured homes 168 (12 ) 8 180 344 Floating homes 132 — — 37 169 Other consumer 112 (18 ) 20 (37 ) 77 Commercial business 175 — — 192 367 Unallocated 712 — — 424 1,136 $ 4,822 $ (143 ) $ 62 $ 500 $ 5,241 The following table summarizes the activity in the allowance for loan losses for the year ended December 31, 2016 (in thousands): Beginning Allowance Charge-offs Recoveries Provision Ending Allowance One-to-four family $ 1,839 $ (72 ) $ 47 $ (272 ) $ 1,542 Home equity 607 (15 ) 78 (292 ) 378 Commercial and multifamily 921 (314 ) — 537 1,144 Construction and land 382 — 18 59 459 Manufactured homes 301 — 8 (141 ) 168 Floating homes 111 — — 21 132 Other consumer 77 (42 ) 53 24 112 Commercial business 157 (29 ) — 47 175 Unallocated 241 — — 471 712 $ 4,636 $ (472 ) $ 204 $ 454 $ 4,822 |
Credit Quality Indicators | The following table represents the internally assigned grades as of December 31, 2017, by type of loan (in thousands): One-to-four family Home equity Commercial and multifamily Construction and land Manufactured homes Floating homes Other consumer Commercial business Total Grade: Pass $ 153,793 $ 27,493 $ 199,887 $ 61,390 $ 16,877 $ 29,120 $ 4,708 $ 39,089 $ 532,357 Watch 244 — 9,683 — — — — 827 10,754 Special Mention 137 — 357 — — — — 784 1,278 Substandard 3,243 886 1,342 92 234 — 194 129 6,120 Doubtful — — — — — — — — — Loss — — — — — — — — — Total $ 157,417 $ 28,379 $ 211,269 $ 61,482 $ 17,111 $ 29,120 $ 4,902 $ 40,829 $ 550,509 The following table represents the internally assigned grades as of December 31, 2016, by type of loan (in thousands): One-to-four family Home equity Commercial and multifamily Construction and land Manufactured homes Floating homes Other consumer Commercial business Total Grade: Pass $ 148,617 $ 26,547 $ 171,678 $ 67,539 $ 15,288 $ 23,996 $ 3,821 $ 25,625 $ 483,111 Watch 998 536 8,105 3,376 78 — 49 326 13,468 Special Mention 139 — — — 30 — — — 169 Substandard 2,632 688 1,221 — 98 — 62 380 5,081 Doubtful — — — — — — — — — Loss — — — — — — — — — Total $ 152,386 $ 27,771 $ 181,004 $ 70,915 $ 15,494 $ 23,996 $ 3,932 $ 26,331 $ 501,829 |
Nonaccrual Loans | The following table presents the recorded investment in nonaccrual loans as of December 31, 2017 and 2016, by type of loan (in thousands): 2017 2016 One- to four- family $ 791 $ 2,169 Home equity 722 536 Other consumer 8 — Commercial and multifamily 201 218 Construction and land 92 — Manufactured homes 206 72 Commercial 129 149 Total $ 2,149 $ 3,144 |
Aging of Recorded Investment in Past Due Loans | The following table represents the aging of the recorded investment in past due loans as of December 31, 2017, by type of loan (in thousands): 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Recorded Investment > 90 Days and Accruing Total Past Due Current Total Loans One-to-four family $ 2,092 $ 1,819 $ 727 $ — $ 4,638 $ 152,779 $ 157,417 Home equity 521 5 633 — 1,159 27,220 28,379 Commercial and multifamily 313 — — — 313 210,956 211,269 Construction and land 51 — 92 — 143 61,339 61,482 Manufactured homes 185 50 197 — 432 16,679 17,111 Floating homes — — — — — 29,120 29,120 Other consumer 15 — — — 15 4,887 4,902 Commercial business 400 — — — 400 40,429 40,829 Total $ 3,577 $ 1,874 $ 1,649 $ — $ 7,100 $ 543,409 $ 550,509 The following table represents the aging of the recorded investment in past due loans as of December 31, 2016, by type of loan (in thousands): 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Past Due Recorded Investment > 90 Days and Accruing Total Past Due Current Total Loans One-to-four family $ 2,476 $ 161 $ 1,787 $ — $ 4,424 $ 147,962 $ 152,386 Home equity 460 — 494 — 954 26,817 27,771 Commercial and multifamily — — — — — 181,004 181,004 Construction and land 440 — — — 440 70,475 70,915 Manufactured homes 321 28 62 — 411 15,083 15,494 Floating homes — — — — — 23,996 23,996 Other consumer 26 1 — — 27 3,905 3,932 Commercial business 149 — — — 149 26,182 26,331 Total $ 3,872 $ 190 $ 2,343 $ — $ 6,405 $ 495,424 $ 501,829 |
Credit Risk Profile of Loan Portfolio Based on Payment Activity by Type of Loan | The following table represents the credit risk profile based on payment activity as of December 31, 2017, by type of loan (in thousands): One-to-four family Home equity Commercial and multifamily Construction and land Manufactured homes Floating homes Other consumer Commercial business Total Performing $ 156,580 $ 27,657 $ 211,068 $ 61,390 $ 16,905 $ 29,120 $ 4,894 $ 40,612 $ 548,226 Nonperforming 837 722 201 92 206 — 8 217 2,283 Total $ 157,417 $ 28,379 $ 211,269 $ 61,482 $ 17,111 $ 29,120 $ 4,902 $ 40,829 $ 550,509 The following table represents the credit risk profile based on payment activity as of December 31, 2016, by type of loan (in thousands): One-to-four family Home equity Commercial and multifamily Construction and land Manufactured homes Floating homes Other consumer Commercial business Total Performing $ 150,170 $ 27,218 $ 180,786 $ 70,915 $ 15,374 $ 23,996 $ 3,932 $ 26,089 $ 498,480 Nonperforming 2,216 553 218 — 120 — — 242 3,349 Total $ 152,386 $ 27,771 $ 181,004 $ 70,915 $ 15,494 $ 23,996 $ 3,932 $ 26,331 $ 501,829 |
Schedule of Impaired Loans, Individually Evaluated | Impaired loans at December 31, 2017 and 2016, by type of loan were as follows (in thousands): December 31, 2017 Recorded Investment Unpaid Principal Balance Without Allowance With Allowance Total Recorded Investment Related Allowance One- to four- family $ 6,562 $ 3,197 $ 3,059 $ 6,256 $ 360 Home equity 1,149 677 351 1,028 109 Commercial and multifamily 1,722 1,699 — 1,699 — Construction and land 141 100 41 141 10 Manufactured homes 409 23 362 385 247 Other consumer 194 125 69 194 40 Commercial business 1,017 784 216 1,000 130 Total $ 11,194 $ 6,605 $ 4,098 $ 10,703 $ 896 December 31, 2016 Recorded Investment Unpaid Principal Balance Without Allowance With Allowance Total Recorded Investment Related Allowance One- to four- family $ 5,010 $ 2,454 $ 2,295 $ 4,749 $ 536 Home equity 913 446 386 832 121 Commercial and multifamily 1,582 1,221 361 1,582 24 Construction and land 83 — 83 83 35 Manufactured homes 326 91 221 312 59 Other consumer 62 — 62 62 65 Commercial business 616 143 473 616 23 Total $ 8,592 $ 4,355 $ 3,881 $ 8,236 $ 863 Income on impaired loans for the year ended December 31, 2017 and 2016, by type of loan were as follows (in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized One- to four- family $ 5,514 $ 320 $ 5,264 $ 231 Home equity 931 38 868 37 Commercial and multifamily 1,643 96 1,775 87 Construction and land 112 4 87 4 Manufactured homes 349 29 337 25 Other consumer 129 10 34 4 Commercial business 809 62 365 36 Total $ 9,487 $ 559 $ 8,730 $ 424 |
Related Party Loans | In the ordinary course of business, the Company makes loans to its directors and officers. Certain loans to directors, officers, and employees are offered at discounted rates as compared to other clients as permitted by federal regulations. Employees, officers, and directors are eligible for mortgage loans with an adjustable rate that resets annually to 1% over the rolling cost of funds. Employees and officers are eligible for consumer loans that are 1% below the market loan rate at the time of origination. Director and officer loans are summarized as follows (in thousands): December 31, 2017 2016 Balance, beginning of period $ 3,180 $ 4,093 Advances 248 115 New / (retired) loans, net 1,387 (897 ) Repayments (803 ) (131 ) Balance, end of period $ 4,012 $ 3,180 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Mortgage Servicing Rights [Abstract] | |
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 December 31, 2017 2016 Prepayment speed (PSA) 160% 152% Weighted-average life (years) 6.9 7.2 Yield to maturity discount rate 13.0% 13.0% |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | Premises and equipment at December 31, 2017 and 2016 are summarized as follows (in thousands): At December 31, 2017 2016 Land $ 920 $ 653 Buildings and improvements 6,302 4,742 Furniture and equipment 4,715 3,756 Less: Accumulated depreciation and amortization (4,545 ) (3,602 ) Premises and equipment, net $ 7,392 $ 5,549 |
Minimum Future Rental Payments under Non-cancelable Operating Leases | Minimum rental payments under non-cancelable operating leases with initial or remaining terms of one year or more are as follows (in thousands): Year ending December 31, Amount 2018 $ 1,147 2019 1,119 2020 998 2021 939 2022 958 Thereafter 5,826 $ 10,987 |
Other Real Estate Owned and R34
Other Real Estate Owned and Repossessed Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Real Estate Owned and Repossessed Assets [Abstract] | |
Activity Related to OREO and Repossessed Assets | The following table presents activity related to OREO and other repossessed assets for the periods shown (in thousands): Year Ended December 31, 2017 2016 Beginning balance $ 1,172 $ 769 Additions to OREO and repossessed assets — 634 Pay downs/Sales (468 ) (252 ) Write-ups/Gains (Write-downs/Losses) (94 ) 21 $ 610 $ 1,172 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Summary of Deposits Accounts with the Corresponding Weighted Average Cost of Funds | A summary of deposit accounts with the corresponding weighted average cost of funds at December 31, 2017 and 2016, are presented below (dollars in thousands): As of December 31, 2017 As of December 31, 2016 Deposit Balance Wtd. Avg Rate Deposit Balance Wtd. Avg Rate Noninterest-bearing demand $ 69,094 — % $ 60,566 — % Interest-bearing demand 173,413 0.43 150,327 0.34 Savings 49,450 0.21 44,879 0.21 Money market 54,860 0.21 49,042 0.17 Certificates 164,554 1.33 159,742 1.12 Escrow (1) 3,029 — 3,175 — Total $ 514,400 0.61 % $ 467,731 0.53 % (1) Escrow balances shown in noninterest-bearing deposits on the consolidated balance sheets. |
Maturities of Time Deposits | Scheduled maturities of time deposits at December 31, 2017, are as follows (in thousands): Year Ending December 31, Amount 2018 $ 66,758 2019 68,157 2020 7,827 2021 14,677 Thereafter 7,135 $ 164,554 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
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 instruments as of December 31, 2017 and 2016 (in thousands): December 31, 2017 Fair Value Measurements Using: Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 FINANCIAL ASSETS: Cash and cash equivalents $ 60,680 $ 60,680 $ 60,680 $ — $ — Available for sale securities 5,435 5,435 — 5,435 — Loans held-for-sale 1,777 1,777 — 1,777 — Loans, net 543,354 543,400 — — 543,400 Accrued interest receivable 1,977 1,977 1,977 — — Mortgage servicing rights 3,426 3,426 — — 3,426 FHLB Stock 3,065 3,065 — — 3,065 FINANCIAL LIABILITIES: Non-maturity deposits 349,846 349,846 — 349,846 — Time deposits 164,554 163,485 — 163,485 — Borrowings 59,000 59,000 — 59,000 — Accrued interest payable 77 77 — 77 — December 31, 2016 Fair Value Measurements Using: Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 FINANCIAL ASSETS: Cash and cash equivalents $ 54,582 $ 54,582 $ 54,582 $ — $ — Available for sale securities 6,604 6,604 — 6,257 347 Loans held-for-sale 871 871 — 871 — Loans, net 495,179 494,289 — — 494,289 Accrued interest receivable 1,816 1,816 1,816 — — Mortgage servicing rights 3,561 3,561 — — 3,561 FHLB Stock 2,840 2,840 — — 2,840 FINANCIAL LIABILITIES: Non-maturity deposits 307,989 307,989 — 307,989 — Time deposits 159,742 159,333 — 159,333 — Borrowings 54,792 54,805 — 54,805 — Accrued interest payable 73 73 — 73 — |
Fair value of Assets Measured on Recurring Basis | The following tables present the balance of assets measured at fair value on a recurring basis as of December 31, 2017 and 2016 (in thousands): Fair Value at December 31, 2017 Description Total Level 1 Level 2 Level 3 Municipal bonds $ 3,369 $ — $ 3,369 $ — Agency mortgage-backed securities 2,066 — 2,066 — Mortgage servicing rights 3,426 — — 3,426 Fair Value at December 31, 2016 Description Total Level 1 Level 2 Level 3 Municipal bonds $ 3,353 $ — $ 3,353 $ — Agency mortgage-backed securities 2,904 — 2,904 — Non-agency mortgage-backed securities 347 — — 347 Mortgage servicing rights 3,561 — — 3,561 |
Reconciliation of Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) | The following table provides a reconciliation of assets and liabilities (excluding mortgage servicing rights) measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the years ended December 31, 2017 and 2016 (in thousands): Year Ended December 31, 2017 2016 Beginning balance, at fair value $ 347 $ 428 Principal payments (347 ) (87 ) Change in unrealized loss — 6 Ending balance, at fair value $ — $ 347 |
Fair value of Assets Measured on Nonrecurring Basis | The following table presents the balance of assets measured at fair value on a nonrecurring basis and the total losses resulting from these fair value adjustments (in thousands): Fair Value at December 31, 2017 Description Total Level 1 Level 2 Level 3 OREO and repossessed assets $ 610 $ — $ — $ 610 Impaired loans 10,703 — — 10,703 Fair Value at December 31, 2016 Description Total Level 1 Level 2 Level 3 OREO and repossessed assets $ 1,172 $ — $ — $ 1,172 Impaired loans 8,236 — — 8,236 |
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 December 31, 2017: Financial Instrument Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) OREO Market approach Adjusted for difference between comparable sales 0-0% (0%) Impaired loans Market approach Adjusted for difference between comparable sales 0-100% (8%) 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 December 31, 2016: Financial Instrument Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) OREO Market approach Adjusted for difference between comparable sales 0-0% (0%) Impaired loans Market approach Adjusted for difference between comparable sales 0-100% (11%) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per share are summarized in the following table (all figures in thousands except earnings per share): Year Ended December 31, 2017 2016 Net income $ 5,125 $ 5,378 Weighted average number of shares outstanding, basic 2,504 2,487 Effect of potentially dilutive common shares (1) 64 80 Weighted average number of shares outstanding, diluted 2,568 2,567 Earnings per share, basic $ 2.05 $ 2.16 Earnings per share, diluted $ 2.00 $ 2.09 (1) Represents the effect of the assumed exercise of stock options and vesting of non-participating restricted shares, based on the treasury stock method. |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefits [Abstract] | |
Summary of Stock Option Plan Award Activity | The following is a summary of the Company's stock option plan award activity during the period ended December 31, 2017: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term In Years Aggregate Intrinsic Value Outstanding at the beginning of the year 170,057 $ 15.41 6.44 $ 2,141,018 Granted 32,010 28.34 Exercised (15,100 ) 9.82 Forfeited (604 ) 28.21 Expired — Outstanding at December 31, 2017 186,363 18.04 6.26 2,977,279 Exercisable 118,803 16.34 5.66 2,100,970 Expected to vest, assuming a 0% forfeiture rate over the vesting term 67,560 $ 21.05 7.32 $ 876,309 |
Weighted-average Assumptions Used in Determining Fair Value of Options Granted | The fair value of each option grant is estimated as of the grant date using the Black-Scholes option-pricing model. The fair value of options granted in 2017 was determined using the following weighted-average assumptions as of the grant date. 2017 2016 Annual dividend yield 1.28 % 1.03 % Expected volatility 22.99 % 25.48 % Risk-free interest rate 2.20 % 1.64 % Expected term 6.50 years 6.92 years Weighted-average grant date fair value per option granted $ 6.62 $ 5.78 |
Summary of Nonvested Restricted Stock Awards | The following is a summary of the Company's non-vested restricted stock awards for the year ended December 31, 2017: Non-vested Shares Shares Weighted-Average Grant-Date Fair Value Per Share Aggregate Intrinsic Value Per Share Non-vested at January 1, 2017 26,138 $ 18.08 Granted 576 28.34 Vested (14,929 ) 17.61 Forfeited — — Expired — Non-vested at December 31, 2017 11,785 19.05 14.97 Expected to vest assuming a 0% forfeiture rate over the vesting term 11,785 $ 19.05 $ 14.97 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Provision for Income Taxes | The provision for income taxes at December 31, 2017 and 2016 was as follows (in thousands): At December 31, 2017 2016 Current $ 2,962 $ 2,718 Deferred (203 ) (23 ) Rate change 309 — Total tax expense $ 3,068 $ 2,695 |
Reconciliation of Provision for Income Taxes | A reconciliation of the provision for income taxes for the years ended December 31, 2017 and 2016, with amounts determined by applying the statutory U.S. federal income tax rate to income before income taxes, is as follows (dollars in thousands): Year Ended December 31, 2017 2016 Provision at statutory rate $ 2,786 $ 2,745 Tax-exempt income (79 ) (76 ) Rate change 309 — Other 52 26 3,068 2,695 Federal Tax Rate 34.0 % 34.0 % Tax exempt rate (1.0 ) (0.9 ) Rate change 3.8 — Other 0.6 0.3 Effective tax rate 37.4 % 33.4 % |
Components of Deferred Tax Assets | The following table reflects the temporary differences that gave rise to the components of the Company's deferred tax assets at December 31, 2017 and 2016 (in thousands): At December 31, 2017 2016 Deferred tax assets Deferred compensation and supplemental retirement $ 342 $ 444 Other, net 66 182 Equity based compensation 84 117 Intangible assets 53 — Allowance for loan losses 844 912 Total deferred tax assets 1,389 1,655 Deferred tax liabilities Prepaid expenses (62 ) (86 ) FHLB stock dividends (87 ) (141 ) Unrealized gain on securities (35 ) (42 ) Depreciation (258 ) (128 ) Intangible assets — (4 ) Mortgage servicing rights (67 ) (114 ) Deferred loan costs (380 ) (539 ) Total deferred tax liabilities (889 ) (1,054 ) Net deferred tax asset $ 500 $ 601 |
Minimum Regulatory Capital Re40
Minimum Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum Regulatory Capital Requirements [Abstract] | |
Actual Capital Amounts and Ratios | The Bank's actual capital amounts (in thousands) and ratios as of December 31, 2017 and 2016 are presented in the following table: Actual Minimum Capital Requirements Minimum Required to be Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio As of December 31, 2017 Tier 1 Capital to total adjusted assets (1) $ 62,432 10.10 % $ 24,721 ≥ 4.0 % $ 30,902 ≥ 5.0 % Common Equity Tier 1 risk-based capital ratio (2) 62,432 12.03 23,354 ≥ 4.5 33,733 ≥ 6.5 Tier 1 Capital to risk-weighted assets (2) 62,432 12.03 31,138 ≥ 6.0 41,518 ≥ 8.0 Total Capital to risk-weighted assets (2) $ 67,868 13.08 % $ 41,518 ≥ 8.0 % $ 51,897 ≥ 10.0 % As of December 31, 2016 Tier 1 Capital to total adjusted assets (3) $ 57,406 9.99 % $ 22,992 ≥ 4.0 % $ 28,740 ≥ 5.0 % Common Equity Tier 1 risk-based capital ratio (4) 57,406 12.02 21,490 ≥ 4.5 31,041 ≥ 6.5 Tier 1 Capital to risk-weighted assets (4) 57,406 12.02 28,653 ≥ 6.0 38,204 ≥ 8.0 Total Capital to risk-weighted assets (4) $ 62,423 13.07 % $ 38,204 ≥ 8.0 % $ 47,755 ≥ 10.0 % (1) Based on total adjusted assets of $618,035 at December 31, 2017. (2) Based on risk-weighted assets of $518,970 at December 31, 2017. (3) Based on total adjusted assets of $574,792 at December 31, 2016. (4) Based on risk-weighted assets of $477,548 at December 31, 2016. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Financial Instruments whose Contract Amount Represents Credit Risk | Financial instruments whose contract amount represents credit risk were as follow (in thousands): At December 31, 2017 2016 Commitments to make loans $ 1,689 $ 3,942 Unfunded construction commitments 39,400 33,916 Unused lines of credit 32,440 24,753 Irrevocable letters of credit 1,400 185 Total loan commitments $ 74,929 $ 62,796 |
Parent Company Financial Info42
Parent Company Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Parent Company Financial Information [Abstract] | |
Balance Sheets | Balance sheets December 31, 2017 2016 Assets Cash and cash equivalents $ 882 $ 1,916 Investment in Sound Community Bank 63,535 57,699 Other assets 743 660 Total assets $ 65,160 $ 60,275 Liabilities and Stockholders' Equity Other liabilities — — Total liabilities — — Stockholders' equity 65,160 60,275 Total liabilities and stockholders' equity $ 65,160 $ 60,275 |
Statements of Income | Statements of Income Year Ended December 31, 2017 2016 Dividend from subsidiary $ — $ 1,750 Other expenses (243 ) (220 ) Income before income tax benefit and equity in undistributed net Income of subsidiary (243 ) 1,530 Income tax benefit 83 75 Equity in undistributed earnings of subsidiary 5,285 3,773 Net income $ 5,125 $ 5,378 |
Statements of Cash Flows | Statements of Cash Flows Year Ended December 31, 2017 2016 Cash flows from operating activities: Net income $ 5,125 $ 5,378 Adjustments to reconcile net income to net cash provided by operating activities Other, net (83 ) (75 ) Change in undistributed equity of subsidiary (5,285 ) (3,773 ) Net cash used by operating activities (243 ) 1,530 Cash flows from investing activities: ESOP shares released 671 515 Net cash provided by investing activities 671 515 Cash flows from financing activities: Dividends paid (1,505 ) (745 ) Stock options exercised 43 165 Net cash used by financing activities (1,462 ) (580 ) Net increase in cash (1,034 ) 1,465 Cash and cash equivalents at beginning of year 1,916 451 Cash and cash equivalents at end of year $ 882 $ 1,916 |
Organization and Significant 43
Organization and Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)Segmentshares | Dec. 31, 2016USD ($) | |
Loans [Abstract] | ||
Minimum past due period after which accrual of interest is discontinued | 90 months | |
Loans charge off period, maximum | 120 days | |
Period of consecutive monthly loan payments for loan to return to accrual status | 12 months | |
Federal Home Loan Bank Stock [Abstract] | ||
Minimum required investment in Federal Home Loan Bank Stock | $ 3,100,000 | $ 2,800,000 |
Segment reporting [Abstract] | ||
Number of operating segments | Segment | 1 | |
Advertising costs [Abstract] | ||
Advertising costs | $ 204,000 | 201,000 |
Employee stock ownership plan [Abstract] | ||
Unallocated shares (in shares) | shares | 45,360 | |
Shares released (in shares) | shares | 21,440 | |
Furniture and Equipment [Member] | Minimum [Member] | ||
Premises and equipment [Abstract] | ||
Useful life | 1 year | |
Furniture and Equipment [Member] | Maximum [Member] | ||
Premises and equipment [Abstract] | ||
Useful life | 10 years | |
Building [Member] | Maximum [Member] | ||
Premises and equipment [Abstract] | ||
Useful life | 39 years | |
Core Deposits [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset | $ 362,000 | 352,000 |
Remaining weighted average life | 4 years 9 months 18 days | |
Impairment loss on intangible assets | $ 0 | $ 0 |
Core Deposits [Member] | Minimum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | 8 years | |
Core Deposits [Member] | Maximum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | 10 years |
Accounting Pronouncements Rec44
Accounting Pronouncements Recently Issued or Adopted (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Corporate tax rate | 34.00% | 34.00% | |
Plan [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Corporate tax rate | 21.00% |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Restricted Cash [Abstract] | ||
Reserve balances with Federal Reserve Bank | $ 12.2 | $ 7.7 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 5,270 | $ 6,482 |
Gross unrealized gains | 191 | 176 |
Gross unrealized losses | (26) | (54) |
Estimated fair value | 5,435 | 6,604 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 3,240 | 3,262 |
Gross unrealized gains | 155 | 127 |
Gross unrealized losses | (26) | (36) |
Estimated fair value | 3,369 | 3,353 |
Agency Mortgage-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 2,030 | 2,858 |
Gross unrealized gains | 36 | 49 |
Gross unrealized losses | 0 | (3) |
Estimated fair value | $ 2,066 | 2,904 |
Non-agency Mortgage-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 362 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | (15) | |
Estimated fair value | $ 347 |
Investments, Mortgage-backed Se
Investments, Mortgage-backed Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Available-for-sale Securities by Contractual Maturity, Amortized Cost [Abstract] | ||
Due in one to five years | $ 1,587 | |
Due after five to ten years | 154 | |
Due after ten years | 1,499 | |
Mortgage-backed securities | 2,030 | |
Total | 5,270 | |
Available-for-sale Securities by Contractual Maturity, Fair Value [Abstract] | ||
Due in one to five years | 1,573 | |
Due after five to ten years | 165 | |
Due after ten years | 1,631 | |
Mortgage-backed securities | 2,066 | |
Total | $ 5,435 | |
Available-for-sale Securities by Contractual Maturity, Weighted Average Yield [Abstract] | ||
Due in one to five years | 1.51% | |
Due after five to ten years | 3.53% | |
Due after ten years | 4.22% | |
Mortgage-backed securities | 3.56% | |
Weighted-average yield | 3.16% | |
Pledged securities | $ 0 | $ 0 |
Sales of available for sale securities | $ 0 | $ 0 |
Investments, Securities in Cont
Investments, Securities in Continuous Unrealized Loss Position (Details) $ in Thousands | Dec. 31, 2017USD ($)Security | Dec. 31, 2016USD ($)Security |
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 0 | $ 1,313 |
12 months or longer | 1,302 | 1,472 |
Total | 1,302 | 2,785 |
Continuous Unrealized Loss Position, Unrealized Loss [Abstract] | ||
Less than 12 months | 0 | (36) |
12 months or longer | (26) | (18) |
Total | (26) | (54) |
Credit losses recognized in earnings | $ 0 | 0 |
Number of securities in unrealized loss position for less than 12 months | Security | 0 | |
Municipal Bonds [Member] | ||
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 0 | 1,313 |
12 months or longer | 1,302 | 0 |
Total | 1,302 | 1,313 |
Continuous Unrealized Loss Position, Unrealized Loss [Abstract] | ||
Less than 12 months | 0 | (36) |
12 months or longer | (26) | 0 |
Total | $ (26) | $ (36) |
Number of portfolio securities | Security | 8 | 8 |
Number of securities in unrealized loss position for less than 12 months | Security | 3 | |
Number of securities in unrealized loss position for over 12 months | Security | 3 | |
Agency Mortgage-backed Securities [Member] | ||
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 0 | |
12 months or longer | 1,125 | |
Total | 1,125 | |
Continuous Unrealized Loss Position, Unrealized Loss [Abstract] | ||
Less than 12 months | 0 | |
12 months or longer | (3) | |
Total | $ (3) | |
Number of portfolio securities | Security | 7 | 9 |
Number of securities in unrealized loss position for over 12 months | Security | 1 | |
Non-agency Mortgage-backed Securities [Member] | ||
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 0 | |
12 months or longer | 347 | |
Total | 347 | |
Continuous Unrealized Loss Position, Unrealized Loss [Abstract] | ||
Less than 12 months | 0 | |
12 months or longer | (15) | |
Total | $ (15) | |
Number of portfolio securities | Security | 1 | |
Number of securities in unrealized loss position for over 12 months | Security | 1 |
Loans, Composition of Loan Port
Loans, Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Composition of Loan Portfolio [Abstract] | ||||
Total loans | $ 550,509 | $ 501,829 | ||
Deferred fees | (1,914) | (1,828) | ||
Total loans, gross | 548,595 | 500,001 | ||
Allowance for loan losses | (5,241) | (4,822) | $ (4,636) | |
Total loans, net | 543,354 | 495,179 | ||
One-to Four- Family [Member] | ||||
Composition of Loan Portfolio [Abstract] | ||||
Total loans | 157,417 | 152,386 | ||
Allowance for loan losses | (1,241) | (1,542) | (1,839) | |
Home Equity [Member] | ||||
Composition of Loan Portfolio [Abstract] | ||||
Total loans | 28,379 | 27,771 | ||
Allowance for loan losses | (282) | (378) | (607) | |
Commercial and Multifamily [Member] | ||||
Composition of Loan Portfolio [Abstract] | ||||
Total loans | 211,269 | 181,004 | ||
Allowance for loan losses | (1,250) | (1,144) | (921) | |
Construction and Land [Member] | ||||
Composition of Loan Portfolio [Abstract] | ||||
Total loans | 61,482 | 70,915 | ||
Allowance for loan losses | (375) | (459) | (382) | |
Manufactured Homes [Member] | ||||
Composition of Loan Portfolio [Abstract] | ||||
Total loans | 17,111 | 15,494 | ||
Allowance for loan losses | (344) | (168) | (301) | |
Floating Homes [Member] | ||||
Composition of Loan Portfolio [Abstract] | ||||
Total loans | 29,120 | 23,996 | ||
Allowance for loan losses | (169) | (132) | (111) | |
Other Consumer [Member] | ||||
Composition of Loan Portfolio [Abstract] | ||||
Total loans | 4,902 | 3,932 | ||
Allowance for loan losses | (77) | (112) | (77) | |
Real Estate Loans [Member] | ||||
Composition of Loan Portfolio [Abstract] | ||||
Total loans | 458,547 | 432,076 | ||
Real Estate Loans [Member] | One-to Four- Family [Member] | ||||
Composition of Loan Portfolio [Abstract] | ||||
Total loans | 157,417 | 152,386 | ||
Real Estate Loans [Member] | Home Equity [Member] | ||||
Composition of Loan Portfolio [Abstract] | ||||
Total loans | 28,379 | 27,771 | ||
Real Estate Loans [Member] | Commercial and Multifamily [Member] | ||||
Composition of Loan Portfolio [Abstract] | ||||
Total loans | 211,269 | 181,004 | ||
Real Estate Loans [Member] | Construction and Land [Member] | ||||
Composition of Loan Portfolio [Abstract] | ||||
Total loans | 61,482 | 70,915 | ||
Consumer Loans [Member] | ||||
Composition of Loan Portfolio [Abstract] | ||||
Total loans | 51,133 | 43,422 | ||
Consumer Loans [Member] | Manufactured Homes [Member] | ||||
Composition of Loan Portfolio [Abstract] | ||||
Total loans | 17,111 | 15,494 | ||
Consumer Loans [Member] | Floating Homes [Member] | ||||
Composition of Loan Portfolio [Abstract] | ||||
Total loans | 29,120 | 23,996 | ||
Consumer Loans [Member] | Other Consumer [Member] | ||||
Composition of Loan Portfolio [Abstract] | ||||
Total loans | [1] | 4,902 | 3,932 | |
Commercial Business Loans [Member] | ||||
Composition of Loan Portfolio [Abstract] | ||||
Total loans | 40,829 | 26,331 | ||
Allowance for loan losses | $ (367) | $ (175) | $ (157) | |
[1] | Included in other consumer loans are floating home loans totaling $24.0 million and $18.2 million as of December 31, 2016 and 2015, respectively. |
Loans, Allowance for Loan Losse
Loans, Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Allowance for loan losses [Abstract] | |||
Individually evaluated for impairment | $ 896 | $ 863 | |
Collectively evaluated for impairment | 4,345 | 3,959 | |
Ending balance | 5,241 | 4,822 | $ 4,636 |
Loans receivable [Abstract] | |||
Individually evaluated for impairment | 10,703 | 8,236 | |
Collectively evaluated for impairment | 539,806 | 493,593 | |
Total loans | 550,509 | 501,829 | |
One-to Four- Family [Member] | |||
Allowance for loan losses [Abstract] | |||
Individually evaluated for impairment | 360 | 536 | |
Collectively evaluated for impairment | 881 | 1,006 | |
Ending balance | 1,241 | 1,542 | 1,839 |
Loans receivable [Abstract] | |||
Individually evaluated for impairment | 6,256 | 4,749 | |
Collectively evaluated for impairment | 151,161 | 147,637 | |
Total loans | 157,417 | 152,386 | |
Home Equity [Member] | |||
Allowance for loan losses [Abstract] | |||
Individually evaluated for impairment | 109 | 121 | |
Collectively evaluated for impairment | 173 | 257 | |
Ending balance | 282 | 378 | 607 |
Loans receivable [Abstract] | |||
Individually evaluated for impairment | 1,028 | 832 | |
Collectively evaluated for impairment | 27,351 | 26,939 | |
Total loans | 28,379 | 27,771 | |
Commercial and Multifamily [Member] | |||
Allowance for loan losses [Abstract] | |||
Individually evaluated for impairment | 0 | 24 | |
Collectively evaluated for impairment | 1,250 | 1,120 | |
Ending balance | 1,250 | 1,144 | 921 |
Loans receivable [Abstract] | |||
Individually evaluated for impairment | 1,699 | 1,582 | |
Collectively evaluated for impairment | 209,570 | 179,422 | |
Total loans | 211,269 | 181,004 | |
Construction and Land [Member] | |||
Allowance for loan losses [Abstract] | |||
Individually evaluated for impairment | 10 | 35 | |
Collectively evaluated for impairment | 365 | 424 | |
Ending balance | 375 | 459 | 382 |
Loans receivable [Abstract] | |||
Individually evaluated for impairment | 141 | 83 | |
Collectively evaluated for impairment | 61,341 | 70,832 | |
Total loans | 61,482 | 70,915 | |
Manufactured Homes [Member] | |||
Allowance for loan losses [Abstract] | |||
Individually evaluated for impairment | 247 | 59 | |
Collectively evaluated for impairment | 97 | 109 | |
Ending balance | 344 | 168 | 301 |
Loans receivable [Abstract] | |||
Individually evaluated for impairment | 385 | 312 | |
Collectively evaluated for impairment | 16,726 | 15,182 | |
Total loans | 17,111 | 15,494 | |
Floating Homes [Member] | |||
Allowance for loan losses [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 169 | 132 | |
Ending balance | 169 | 132 | 111 |
Loans receivable [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 29,120 | 23,996 | |
Total loans | 29,120 | 23,996 | |
Other Consumer [Member] | |||
Allowance for loan losses [Abstract] | |||
Individually evaluated for impairment | 40 | 65 | |
Collectively evaluated for impairment | 37 | 47 | |
Ending balance | 77 | 112 | 77 |
Loans receivable [Abstract] | |||
Individually evaluated for impairment | 194 | 62 | |
Collectively evaluated for impairment | 4,708 | 3,870 | |
Total loans | 4,902 | 3,932 | |
Commercial Business [Member] | |||
Allowance for loan losses [Abstract] | |||
Individually evaluated for impairment | 130 | 23 | |
Collectively evaluated for impairment | 237 | 152 | |
Ending balance | 367 | 175 | 157 |
Loans receivable [Abstract] | |||
Individually evaluated for impairment | 1,000 | 616 | |
Collectively evaluated for impairment | 39,829 | 25,715 | |
Total loans | 40,829 | 26,331 | |
Unallocated [Member] | |||
Allowance for loan losses [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 1,136 | 712 | |
Ending balance | 1,136 | 712 | $ 241 |
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 | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of activity in allowance for loan losses [Roll Forward] | ||
Beginning allowance | $ 4,822 | $ 4,636 |
Charge-offs | (143) | (472) |
Recoveries | 62 | 204 |
Provision | 500 | 454 |
Ending allowance | 5,241 | 4,822 |
One-to Four- Family [Member] | ||
Summary of activity in allowance for loan losses [Roll Forward] | ||
Beginning allowance | 1,542 | 1,839 |
Charge-offs | 0 | (72) |
Recoveries | 0 | 47 |
Provision | (301) | (272) |
Ending allowance | 1,241 | 1,542 |
Home Equity [Member] | ||
Summary of activity in allowance for loan losses [Roll Forward] | ||
Beginning allowance | 378 | 607 |
Charge-offs | (89) | (15) |
Recoveries | 33 | 78 |
Provision | (40) | (292) |
Ending allowance | 282 | 378 |
Commercial and Multifamily [Member] | ||
Summary of activity in allowance for loan losses [Roll Forward] | ||
Beginning allowance | 1,144 | 921 |
Charge-offs | (24) | (314) |
Recoveries | 1 | 0 |
Provision | 129 | 537 |
Ending allowance | 1,250 | 1,144 |
Construction and Land [Member] | ||
Summary of activity in allowance for loan losses [Roll Forward] | ||
Beginning allowance | 459 | 382 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 18 |
Provision | (84) | 59 |
Ending allowance | 375 | 459 |
Manufactured Homes [Member] | ||
Summary of activity in allowance for loan losses [Roll Forward] | ||
Beginning allowance | 168 | 301 |
Charge-offs | (12) | 0 |
Recoveries | 8 | 8 |
Provision | 180 | (141) |
Ending allowance | 344 | 168 |
Floating Homes [Member] | ||
Summary of activity in allowance for loan losses [Roll Forward] | ||
Beginning allowance | 132 | 111 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | 37 | 21 |
Ending allowance | 169 | 132 |
Other Consumer [Member] | ||
Summary of activity in allowance for loan losses [Roll Forward] | ||
Beginning allowance | 112 | 77 |
Charge-offs | (18) | (42) |
Recoveries | 20 | 53 |
Provision | (37) | 24 |
Ending allowance | 77 | 112 |
Commercial Business [Member] | ||
Summary of activity in allowance for loan losses [Roll Forward] | ||
Beginning allowance | 175 | 157 |
Charge-offs | 0 | (29) |
Recoveries | 0 | 0 |
Provision | 192 | 47 |
Ending allowance | 367 | 175 |
Unallocated [Member] | ||
Summary of activity in allowance for loan losses [Roll Forward] | ||
Beginning allowance | 712 | 241 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | 424 | 471 |
Ending allowance | $ 1,136 | $ 712 |
Loans, Credit Quality (Details)
Loans, Credit Quality (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 550,509 | $ 501,829 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 532,357 | 483,111 |
Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 10,754 | 13,468 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,278 | 169 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 6,120 | 5,081 |
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 | 157,417 | 152,386 |
One-to Four- Family [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 153,793 | 148,617 |
One-to Four- Family [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 244 | 998 |
One-to Four- Family [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 137 | 139 |
One-to Four- Family [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,243 | 2,632 |
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 | 28,379 | 27,771 |
Home Equity [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 27,493 | 26,547 |
Home Equity [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 536 |
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 | 886 | 688 |
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 | 211,269 | 181,004 |
Commercial and Multifamily [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 199,887 | 171,678 |
Commercial and Multifamily [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 9,683 | 8,105 |
Commercial and Multifamily [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 357 | 0 |
Commercial and Multifamily [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,342 | 1,221 |
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 | 61,482 | 70,915 |
Construction and Land [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 61,390 | 67,539 |
Construction and Land [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 3,376 |
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 | 92 | 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 | 17,111 | 15,494 |
Manufactured Homes [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 16,877 | 15,288 |
Manufactured Homes [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 78 |
Manufactured Homes [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 30 |
Manufactured Homes [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 234 | 98 |
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 |
Floating Homes [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 29,120 | 23,996 |
Floating Homes [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 29,120 | 23,996 |
Floating Homes [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Floating Homes [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Floating Homes [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Floating Homes [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Floating 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 | 4,902 | 3,932 |
Other Consumer [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,708 | 3,821 |
Other Consumer [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 49 |
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 | 194 | 62 |
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 | 40,829 | 26,331 |
Commercial Business [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 39,089 | 25,625 |
Commercial Business [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 827 | 326 |
Commercial Business [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 784 | 0 |
Commercial Business [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 129 | 380 |
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 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 2,149 | $ 3,144 |
Recorded Investment > 90 days and accruing | 0 | 0 |
Total past due | 7,100 | 6,405 |
Current | 543,409 | 495,424 |
Total loans | 550,509 | 501,829 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 3,577 | 3,872 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,874 | 190 |
Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,649 | 2,343 |
One-to Four- Family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 791 | 2,169 |
Recorded Investment > 90 days and accruing | 0 | 0 |
Total past due | 4,638 | 4,424 |
Current | 152,779 | 147,962 |
Total loans | 157,417 | 152,386 |
One-to Four- Family [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 2,092 | 2,476 |
One-to Four- Family [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,819 | 161 |
One-to Four- Family [Member] | Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 727 | 1,787 |
Home Equity [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 722 | 536 |
Recorded Investment > 90 days and accruing | 0 | 0 |
Total past due | 1,159 | 954 |
Current | 27,220 | 26,817 |
Total loans | 28,379 | 27,771 |
Home Equity [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 521 | 460 |
Home Equity [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 5 | 0 |
Home Equity [Member] | Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 633 | 494 |
Commercial and Multifamily [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 201 | 218 |
Recorded Investment > 90 days and accruing | 0 | 0 |
Total past due | 313 | 0 |
Current | 210,956 | 181,004 |
Total loans | 211,269 | 181,004 |
Commercial and Multifamily [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 313 | 0 |
Commercial and Multifamily [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial and Multifamily [Member] | Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Construction and Land [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 92 | 0 |
Recorded Investment > 90 days and accruing | 0 | 0 |
Total past due | 143 | 440 |
Current | 61,339 | 70,475 |
Total loans | 61,482 | 70,915 |
Construction and Land [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 51 | 440 |
Construction and Land [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Construction and Land [Member] | Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 92 | 0 |
Manufactured Homes [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 206 | 72 |
Recorded Investment > 90 days and accruing | 0 | 0 |
Total past due | 432 | 411 |
Current | 16,679 | 15,083 |
Total loans | 17,111 | 15,494 |
Manufactured Homes [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 185 | 321 |
Manufactured Homes [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 50 | 28 |
Manufactured Homes [Member] | Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 197 | 62 |
Floating Homes [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment > 90 days and accruing | 0 | 0 |
Total past due | 0 | 0 |
Current | 29,120 | 23,996 |
Total loans | 29,120 | 23,996 |
Floating Homes [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Floating Homes [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Floating Homes [Member] | Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Other Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 8 | 0 |
Recorded Investment > 90 days and accruing | 0 | 0 |
Total past due | 15 | 27 |
Current | 4,887 | 3,905 |
Total loans | 4,902 | 3,932 |
Other Consumer [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 15 | 26 |
Other Consumer [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 1 |
Other Consumer [Member] | Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial Business [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 129 | 149 |
Recorded Investment > 90 days and accruing | 0 | 0 |
Total past due | 400 | 149 |
Current | 40,429 | 26,182 |
Total loans | 40,829 | 26,331 |
Commercial Business [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 400 | 149 |
Commercial Business [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial Business [Member] | Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 0 | $ 0 |
Loans, Credit Risk Profile Base
Loans, Credit Risk Profile Based on Payment Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | $ 550,509 | $ 501,829 |
Minimum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Period past due for loans still accruing interest to be considered nonperforming | 90 days | |
Period of sufficient payment history for TDR to be considered performing | 6 months | |
Period past due for TDRs loans to be considered nonperforming | 31 days | |
Performing [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | $ 548,226 | 498,480 |
Nonperforming [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 2,283 | 3,349 |
One-to Four- Family [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 157,417 | 152,386 |
One-to Four- Family [Member] | Performing [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 156,580 | 150,170 |
One-to Four- Family [Member] | Nonperforming [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 837 | 2,216 |
Home Equity [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 28,379 | 27,771 |
Home Equity [Member] | Performing [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 27,657 | 27,218 |
Home Equity [Member] | Nonperforming [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 722 | 553 |
Commercial and Multifamily [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 211,269 | 181,004 |
Commercial and Multifamily [Member] | Performing [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 211,068 | 180,786 |
Commercial and Multifamily [Member] | Nonperforming [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 201 | 218 |
Construction and Land [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 61,482 | 70,915 |
Construction and Land [Member] | Performing [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 61,390 | 70,915 |
Construction and Land [Member] | Nonperforming [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 92 | 0 |
Manufactured Homes [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 17,111 | 15,494 |
Manufactured Homes [Member] | Performing [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 16,905 | 15,374 |
Manufactured Homes [Member] | Nonperforming [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 206 | 120 |
Floating Homes [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 29,120 | 23,996 |
Floating Homes [Member] | Performing [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 29,120 | 23,996 |
Floating Homes [Member] | Nonperforming [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 0 | 0 |
Other Consumer [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 4,902 | 3,932 |
Other Consumer [Member] | Performing [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 4,894 | 3,932 |
Other Consumer [Member] | Nonperforming [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 8 | 0 |
Commercial Business [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 40,829 | 26,331 |
Commercial Business [Member] | Performing [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | 40,612 | 26,089 |
Commercial Business [Member] | Nonperforming [Member] | ||
Credit Risk Profile by Type of Loan [Abstract] | ||
Total loans | $ 217 | $ 242 |
Loans, Loans Individually Evalu
Loans, Loans Individually Evaluated for Impairment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | ||
Unpaid principal balance | $ 11,194 | $ 8,592 |
Recorded investment, without allowance | 6,605 | 4,355 |
Recorded investment, with allowance | 4,098 | 3,881 |
Total recorded investment | 10,703 | 8,236 |
Related allowance | 896 | 863 |
Average recorded investment | 9,487 | 8,730 |
Interest income recognized | 559 | 424 |
Impaired loans, interest income forgone | 33 | 54 |
Commitments to lend additional funds to borrowers whose loans were classified as nonaccrual, TDR or impaired | 0 | 0 |
One-to Four- Family [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid principal balance | 6,562 | 5,010 |
Recorded investment, without allowance | 3,197 | 2,454 |
Recorded investment, with allowance | 3,059 | 2,295 |
Total recorded investment | 6,256 | 4,749 |
Related allowance | 360 | 536 |
Average recorded investment | 5,514 | 5,264 |
Interest income recognized | 320 | 231 |
Home Equity [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid principal balance | 1,149 | 913 |
Recorded investment, without allowance | 677 | 446 |
Recorded investment, with allowance | 351 | 386 |
Total recorded investment | 1,028 | 832 |
Related allowance | 109 | 121 |
Average recorded investment | 931 | 868 |
Interest income recognized | 38 | 37 |
Commercial and Multifamily [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid principal balance | 1,722 | 1,582 |
Recorded investment, without allowance | 1,699 | 1,221 |
Recorded investment, with allowance | 0 | 361 |
Total recorded investment | 1,699 | 1,582 |
Related allowance | 0 | 24 |
Average recorded investment | 1,643 | 1,775 |
Interest income recognized | 96 | 87 |
Construction and Land [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid principal balance | 141 | 83 |
Recorded investment, without allowance | 100 | 0 |
Recorded investment, with allowance | 41 | 83 |
Total recorded investment | 141 | 83 |
Related allowance | 10 | 35 |
Average recorded investment | 112 | 87 |
Interest income recognized | 4 | 4 |
Manufactured Homes [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid principal balance | 409 | 326 |
Recorded investment, without allowance | 23 | 91 |
Recorded investment, with allowance | 362 | 221 |
Total recorded investment | 385 | 312 |
Related allowance | 247 | 59 |
Average recorded investment | 349 | 337 |
Interest income recognized | 29 | 25 |
Other Consumer [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid principal balance | 194 | 62 |
Recorded investment, without allowance | 125 | 0 |
Recorded investment, with allowance | 69 | 62 |
Total recorded investment | 194 | 62 |
Related allowance | 40 | 65 |
Average recorded investment | 129 | 34 |
Interest income recognized | 10 | 4 |
Commercial Business [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid principal balance | 1,017 | 616 |
Recorded investment, without allowance | 784 | 143 |
Recorded investment, with allowance | 216 | 473 |
Total recorded investment | 1,000 | 616 |
Related allowance | 130 | 23 |
Average recorded investment | 809 | 365 |
Interest income recognized | $ 62 | $ 36 |
Loans, Troubled Debt Restructur
Loans, Troubled Debt Restructurings (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan | |
Financing Receivable, Modifications [Line Items] | ||
Loans classified as TDRs | $ | $ 3,700,000 | $ 3,400,000 |
Number of loans with post-modification changes for unpaid principal balance in loans modified as TDRs | Loan | 0 | 0 |
Number of loans for which there was payment default within first 12 months of modification | Loan | 0 | 0 |
Commitments to extend additional credit to borrowers whose loan terms have been modified in TDRs | $ | $ 0 | $ 0 |
One-to Four- Family [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | Loan | 1 | |
Total modifications | $ | $ 1,300,000 | |
Number of contracts paid off during the period | Loan | 3 | |
TDR loans paid off during the period | $ | $ 403,000 | |
Manufactured Home Loan [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts paid off during the period | Loan | 1 | |
TDR loans paid off during the period | $ | $ 14,000 | |
Home Equity Loan [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts paid off during the period | Loan | 1 | |
TDR loans paid off during the period | $ | $ 86,000 | |
Land Loan [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts paid off during the period | Loan | 1 | |
TDR loans paid off during the period | $ | $ 29,000 | |
Commercial/Multifamily Loan [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts paid off during the period | Loan | 1 | |
TDR loans paid off during the period | $ | $ 361,000 |
Loans, Loans to Related Parties
Loans, Loans to Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Loans [Abstract] | ||
Annual adjustable rate over rolling cost of funds | 1.00% | |
Discount on market loan rate for consumer loans to employees and officers | 1.00% | |
Director and Officer Loans [Roll Forward] | ||
Balance, beginning of period | $ 3,180 | $ 4,093 |
Advances | 248 | 115 |
New / (retired) loans, net | 1,387 | (897) |
Repayments | (803) | (131) |
Balance, end of period | 4,012 | 3,180 |
Secured real estate loans that have loan-to-value ratios above supervisory guidelines | $ 8,100 | $ 5,800 |
Mortgage Servicing Rights (Deta
Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Mortgage Servicing Right, Key Economic Assumptions [Abstract] | ||
Prepayment speed (PSA) | 160.00% | 152.00% |
Weighted-average life | 6 years 10 months 24 days | 7 years 2 months 12 days |
Yield to maturity discount rate | 13.00% | 13.00% |
Contractually specified servicing, late and ancillary fees earned and recorded in mortgage servicing income, net of fair value market adjustments to the mortgage servicing rights | $ 566 | $ 907 |
Federal National Mortgage Association (Fannie Mae) [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Loans serviced for others | 392,600 | 410,100 |
Other Financial Institutions [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Loans serviced for others | $ 19,900 | $ 13,800 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Less: Accumulated depreciation and amortization | $ (4,545) | $ (3,602) |
Premises and equipment, net | 7,392 | 5,549 |
Depreciation and amortization expense | 943 | 793 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 920 | 653 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 6,302 | 4,742 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 4,715 | $ 3,756 |
Premises and Equipment, Operati
Premises and Equipment, Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Minimum Rental Payments under Non-Cancelable Operating Leases [Abstract] | ||
2,018 | $ 1,147 | |
2,019 | 1,119 | |
2,020 | 998 | |
2,021 | 939 | |
2,022 | 958 | |
Thereafter | 5,826 | |
Total | 10,987 | |
Rental expense | $ 1,100 | $ 1,000 |
Other Real Estate Owned and R61
Other Real Estate Owned and Repossessed Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other Real Estate [Roll Forward] | ||
Beginning balance | $ 1,172 | $ 769 |
Additions to OREO and repossessed assets | 0 | 634 |
Pay downs/Sales | (468) | (252) |
Write-ups/Gains (Write-downs/Losses) | (94) | 21 |
Ending balance | $ 610 | $ 1,172 |
Deposits (Details)
Deposits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Summary of Deposit Accounts with the Corresponding Weighted Average Cost of Funds [Abstract] | |||
Noninterest-bearing demand | $ 69,094,000 | $ 60,566,000 | |
Interest-bearing demand | 173,413,000 | 150,327,000 | |
Savings | 49,450,000 | 44,879,000 | |
Money market | 54,860,000 | 49,042,000 | |
Certificates | 164,554,000 | 159,742,000 | |
Escrow | [1] | 3,029,000 | 3,175,000 |
Total deposits | $ 514,400,000 | $ 467,731,000 | |
Weighted Average Interest Rate [Abstract] | |||
Noninterest-bearing demand | 0.00% | 0.00% | |
Interest-bearing demand | 0.43% | 0.34% | |
Savings | 0.21% | 0.21% | |
Money market | 0.21% | 0.17% | |
Certificates | 1.33% | 1.12% | |
Escrow | [1] | 0.00% | 0.00% |
Total deposits | 0.61% | 0.53% | |
Stated Maturities of Time Deposits [Abstract] | |||
2,018 | $ 66,758,000 | ||
2,019 | 68,157,000 | ||
2,020 | 7,827,000 | ||
2,021 | 14,677,000 | ||
Thereafter | 7,135,000 | ||
Total time deposits | $ 164,554,000 | ||
Maximum time to maturity of certificate accounts | 5 years | ||
Time deposits in denominations of $250,000 or more | $ 47,100,000 | $ 56,700,000 | |
Maximum federal insurability of time deposits | 250,000 | ||
Brokered deposits | 512,000,000 | 3,600,000 | |
Related party deposits | $ 1,700,000 | $ 1,300,000 | |
[1] | Escrow balances shown in noninterest-bearing deposits on the consolidated balance sheets |
Borrowings (Details)
Borrowings (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Short-term Debt [Line Items] | ||
Contractual principal repayments due within one year | $ 59,000,000 | |
Weighted average interest rate on borrowings due within one year | 1.63% | |
Minimum Required Investment in Federal Home Loan Bank Stock | $ 3,100,000 | $ 2,800,000 |
Federal Home Loan Bank of Des Moines [Member] | ||
Short-term Debt [Line Items] | ||
Amount available to borrow under loan agreement | 217,600,000 | 197,900,000 |
Outstanding borrowings | 59,000,000 | 54,792,000 |
Maximum amount outstanding from FHLB under term advances | 61,500,000 | 59,800,000 |
Average balance outstanding | $ 29,800,000 | $ 36,600,000 |
Weighted average interest rate on borrowings | 1.16% | 0.58% |
Minimum Required Investment in Federal Home Loan Bank Stock | $ 3,100,000 | $ 2,800,000 |
One-to Four- Family [Member] | Federal Home Loan Bank of Des Moines [Member] | ||
Short-term Debt [Line Items] | ||
Loans used as collateral for credit facility | 111,500,000 | 107,200,000 |
Home Equity [Member] | Federal Home Loan Bank of Des Moines [Member] | ||
Short-term Debt [Line Items] | ||
Loans used as collateral for credit facility | 15,200,000 | 15,900,000 |
Commercial and Multifamily [Member] | Federal Home Loan Bank of Des Moines [Member] | ||
Short-term Debt [Line Items] | ||
Loans used as collateral for credit facility | 103,000,000 | 94,400,000 |
Line of Credit [Member] | Pacific Coast Banker's Bank [Member] | ||
Short-term Debt [Line Items] | ||
Amount available to borrow under loan agreement | 2,000,000 | |
Outstanding borrowings | $ 0 | 0 |
Term period | 1 year | |
Maturity date | Jun. 30, 2018 | |
Line of Credit [Member] | Zions Bank [Member] | ||
Short-term Debt [Line Items] | ||
Outstanding borrowings | $ 0 | 0 |
Line of credit, maximum borrowing capacity | 9,000,000 | |
Line of credit facility, minimum cash balance required | 250,000 | |
Line of Credit [Member] | The Independent Bank [Member] | ||
Short-term Debt [Line Items] | ||
Amount available to borrow under loan agreement | 10,000,000 | |
Outstanding borrowings | 0 | 0 |
Federal Reserve Bank [Member] | ||
Short-term Debt [Line Items] | ||
Outstanding borrowings | 0 | 0 |
Unused borrowing capacity | 51,200,000 | 42,000,000 |
Letters of Credit [Member] | Federal Home Loan Bank of Des Moines [Member] | ||
Short-term Debt [Line Items] | ||
Letters of credit to secure public deposits | 14,500,000 | 21,000,000 |
Net remaining amount available | $ 144,100,000 | $ 122,200,000 |
Fair Value Measurements, Fair V
Fair Value Measurements, Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
FINANCIAL ASSETS [Abstract] | ||
Available-for-sale securities | $ 5,435 | $ 6,604 |
Mortgage servicing rights | 3,426 | 3,561 |
Level 1 [Member] | ||
FINANCIAL ASSETS [Abstract] | ||
Cash and cash equivalents | 60,680 | 54,582 |
Available-for-sale securities | 0 | 0 |
Loans held-for-sale | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 1,977 | 1,816 |
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 |
Level 2 [Member] | ||
FINANCIAL ASSETS [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Available-for-sale securities | 5,435 | 6,257 |
Loans held-for-sale | 1,777 | 871 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
FHLB Stock | 0 | 0 |
FINANCIAL LIABILITIES [Abstract] | ||
Non-maturity deposits | 349,846 | 307,989 |
Time deposits | 163,485 | 159,333 |
Borrowings | 59,000 | 54,805 |
Accrued interest payable | 77 | 73 |
Level 3 [Member] | ||
FINANCIAL ASSETS [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Available-for-sale securities | 0 | 347 |
Loans held-for-sale | 0 | 0 |
Loans, net | 543,400 | 494,289 |
Accrued interest receivable | 0 | 0 |
Mortgage servicing rights | 3,426 | 3,561 |
FHLB Stock | 3,065 | 2,840 |
FINANCIAL LIABILITIES [Abstract] | ||
Non-maturity deposits | 0 | 0 |
Time deposits | 0 | 0 |
Borrowings | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Value [Member] | ||
FINANCIAL ASSETS [Abstract] | ||
Cash and cash equivalents | 60,680 | 54,582 |
Available-for-sale securities | 5,435 | 6,604 |
Loans held-for-sale | 1,777 | 871 |
Loans, net | 543,354 | 495,179 |
Accrued interest receivable | 1,977 | 1,816 |
Mortgage servicing rights | 3,426 | 3,561 |
FHLB Stock | 3,065 | 2,840 |
FINANCIAL LIABILITIES [Abstract] | ||
Non-maturity deposits | 349,846 | 307,989 |
Time deposits | 164,554 | 159,742 |
Borrowings | 59,000 | 54,792 |
Accrued interest payable | 77 | 73 |
Estimated Fair Value [Member] | ||
FINANCIAL ASSETS [Abstract] | ||
Cash and cash equivalents | 60,680 | 54,582 |
Available-for-sale securities | 5,435 | 6,604 |
Loans held-for-sale | 1,777 | 871 |
Loans, net | 543,400 | 494,289 |
Accrued interest receivable | 1,977 | 1,816 |
Mortgage servicing rights | 3,426 | 3,561 |
FHLB Stock | 3,065 | 2,840 |
FINANCIAL LIABILITIES [Abstract] | ||
Non-maturity deposits | 349,846 | 307,989 |
Time deposits | 163,485 | 159,333 |
Borrowings | 59,000 | 54,805 |
Accrued interest payable | $ 77 | $ 73 |
Fair Value Measurements, Recurr
Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset transfers from Level 1 to Level 2 | $ 0 | |
Asset transfers from Level 2 into Level 3 | 0 | |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Municipal bonds | 3,369 | $ 3,353 |
Agency mortgage-backed securities | 2,066 | 2,904 |
Non-agency mortgage-backed securities | 347 | |
Mortgage servicing rights | 3,426 | 3,561 |
Liabilities carried at fair value | 0 | 0 |
Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Municipal bonds | 0 | 0 |
Agency mortgage-backed securities | 0 | 0 |
Non-agency mortgage-backed securities | 0 | |
Mortgage servicing rights | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Municipal bonds | 3,369 | 3,353 |
Agency mortgage-backed securities | 2,066 | 2,904 |
Non-agency mortgage-backed securities | 0 | |
Mortgage servicing rights | 0 | 0 |
Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Municipal bonds | 0 | 0 |
Agency mortgage-backed securities | 0 | 0 |
Non-agency mortgage-backed securities | 347 | |
Mortgage servicing rights | 3,426 | 3,561 |
Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OREO and repossessed assets | 610 | 1,172 |
Impaired loans | 10,703 | 8,236 |
Liabilities carried at fair value | 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 |
Impaired loans | 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 |
Impaired loans | 0 | 0 |
Nonrecurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OREO and repossessed assets | 610 | 1,172 |
Impaired loans | $ 10,703 | $ 8,236 |
Fair Value Measurements, Quanti
Fair Value Measurements, Quantitative Information (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Prepayment speed assumption | 160.00% | 152.00% |
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 | 103.00% | 104.00% |
Discount rate | 13.00% | 13.00% |
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 | 412.00% | 396.00% |
Discount rate | 15.00% | 15.00% |
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 | 160.00% | 152.00% |
Discount rate | 13.00% | 13.00% |
Recurring [Member] | Level 3 [Member] | Non-agency Mortgage-backed Securities [Member] | Discounted Cash Flow [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | 7.00% | |
Recurring [Member] | Level 3 [Member] | Non-agency Mortgage-backed Securities [Member] | Discounted Cash Flow [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | 9.00% | |
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] | ||
Adjusted for difference between comparable sales | 0.00% | 0.00% |
Nonrecurring [Member] | Level 3 [Member] | OREO [Member] | Market Approach [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjusted for difference between comparable sales | 0.00% | 0.00% |
Nonrecurring [Member] | Level 3 [Member] | OREO [Member] | Market Approach [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjusted for difference between comparable sales | 0.00% | 0.00% |
Nonrecurring [Member] | Level 3 [Member] | Impaired Loans [Member] | Market Approach [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjusted for difference between comparable sales | 0.00% | 0.00% |
Nonrecurring [Member] | Level 3 [Member] | Impaired Loans [Member] | Market Approach [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjusted for difference between comparable sales | 100.00% | 100.00% |
Nonrecurring [Member] | Level 3 [Member] | Impaired Loans [Member] | Market Approach [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjusted for difference between comparable sales | 8.00% | 11.00% |
Fair Value Measurements, Level
Fair Value Measurements, Level 3 Unobservable Inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) [Roll Forward] | ||
Beginning balance, at fair value | $ 347 | $ 428 |
Principal payments | (347) | (87) |
Change in unrealized loss | 0 | 6 |
Ending balance, at fair value | $ 0 | $ 347 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Earnings Per Share [Abstract] | |||
Net income | $ 5,125 | $ 5,378 | |
Weighted average number of shares outstanding, basic (in shares) | 2,504,430 | 2,486,936 | |
Effect of potentially dilutive common shares (in shares) | [1] | 64,000 | 80,000 |
Weighted average number of shares outstanding, diluted (in shares) | 2,568,082 | 2,566,980 | |
Earnings per share, basic (in dollars per share) | $ 2.05 | $ 2.16 | |
Earnings per share, diluted (in dollars per share) | $ 2 | $ 2.09 | |
Anti-dilutive securities not included in computation of diluted earnings per common share (in shares) | 0 | 0 | |
[1] | Represents the effect of the assumed exercise of stock options and vesting of non-participating restricted shares, based on the treasury stock method. |
Employee Benefits, 401(K) Plan
Employee Benefits, 401(K) Plan and Deferred Compensation Plan (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Contribution Plan [Abstract] | ||
Employer contribution amount | $ 132,000 | $ 139,000 |
Deferred Compensation [Abstract] | ||
Age of employee when benefit becomes payable | 65 years | |
Deferred compensation liability | $ 103,000 | 102,000 |
Employer discretionary contribution | 0 | $ 0 |
NQDC Plan [Member] | ||
Deferred Compensation [Abstract] | ||
Employer discretionary contribution | $ 75,000 | |
NQDC Plan [Member] | Maximum [Member] | ||
Deferred Compensation [Abstract] | ||
Percentage of annual compensation to be deferred | 80.00% | |
Period of distribution in case of separation from service in annual installments | 10 years |
Employee Benefits, Supplemental
Employee Benefits, Supplemental Executive Retirement Plans (Details) - Ms. Stewart [Member] | 12 Months Ended |
Dec. 31, 2017USD ($)Plan | |
SERP [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Number of supplemental executive retirement plans | Plan | 2 |
SERP 1 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Annual benefit payment related to supplemental executive retirement benefit plans | $ 53,320 |
SERP 2 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Annual benefit payment related to supplemental executive retirement benefit plans | $ 78,030 |
Age for commencing additional retirement benefits | 70 years |
Period to pay single lump sum amount | 90 days |
Lump sum amount eligible for beneficiary | $ 1,100,000 |
Employee Benefits, Confidential
Employee Benefits, Confidentiality, Non-Competition, and Non-Solicitation Agreement (Details) - Non-compete Agreement [Member] - Ms. Stewart [Member] | 12 Months Ended |
Dec. 31, 2017USD ($)Installment | |
Finite-Lived Intangible Assets [Line Items] | |
Expiration period | 36 months |
Supplemental retirement benefit payable to employee on bi-monthly basis during Restricted Period | $ 3,541.67 |
Percentage of retirement benefits payable to employee upon termination for good reason | 150.00% |
Period of average short term bonus pay | 3 years |
Lump sum amount of benefit payable to employee | $ 755,000 |
Number of monthly installments on termination benefits | Installment | 12 |
Period of termination following change in control to be entitled to lump sum benefit | 24 months |
Employee Benefits, Stock Option
Employee Benefits, Stock Options and Restricted Stock (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)Planshares | Dec. 31, 2016USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of existing Equity Incentive Plans | Plan | 2 | |
Share-based compensation | $ | $ 523 | $ 525 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cumulative number of shares issued (in shares) | 265,797 | |
Restricted Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cumulative number of shares issued (in shares) | 107,213 | |
2008 Plan [Member] | Stock Options and Stock Appreciation Rights [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized (in shares) | 126,287 | |
2008 Plan [Member] | Restricted Stock and Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized (in shares) | 50,514 | |
2013 Plan [Member] | Stock Options and Stock Appreciation Rights [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized (in shares) | 141,750 | |
2013 Plan [Member] | Restricted Stock and Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized (in shares) | 56,700 |
Employee Benefits, Stock Opti73
Employee Benefits, Stock Option Awards (Details) - Stock Options [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Term of awards | 10 years | |
Options, Outstanding [Roll Forward] | ||
Outstanding, beginning of period (in shares) | 170,057 | |
Granted (in shares) | 32,010 | |
Exercised (in shares) | (15,100) | |
Forfeited (in shares) | (604) | |
Expired (in shares) | 0 | |
Outstanding, end of period (in shares) | 186,363 | 170,057 |
Exercisable (in shares) | 118,803 | |
Expected to vest, assuming a 0% forfeiture rate over the vesting term (in shares) | 67,560 | |
Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Outstanding, beginning of period (in dollars per share) | $ 15.41 | |
Granted (in dollars per share) | 28.34 | |
Exercised (in dollars per share) | 9.82 | |
Forfeited (in dollars per share) | 28.21 | |
Outstanding, end of period (in dollars per share) | 18.04 | $ 15.41 |
Exercisable (in dollars per share) | 16.34 | |
Expected to vest, assuming a 0% forfeiture rate over the vesting term (in dollars per share) | $ 21.05 | |
Options, Additional Disclosures [Abstract] | ||
Outstanding, weighted-average remaining contractual term | 6 years 3 months 4 days | 6 years 5 months 8 days |
Exercisable, weighted-average remaining contractual term | 5 years 7 months 28 days | |
Expected to vest, assuming a 0% forfeiture rate over the vesting term, weighted-average remaining contractual term | 7 years 3 months 25 days | |
Outstanding, aggregate intrinsic value | $ 2,977,279 | $ 2,141,018 |
Exercisable, aggregate intrinsic value | 2,100,970 | |
Expected to vest, assuming a 0% forfeiture rate over the vesting term, aggregate intrinsic value | $ 876,309 | |
Forfeiture rate | 0.00% | |
Unrecognized compensation cost | $ 523,000 | |
Remaining weighted-average vesting period | 1 year 3 months 18 days | |
Share-based compensation arrangement, fair value assumptions and methodology [Abstract] | ||
Annual dividend yield | 1.28% | 1.03% |
Expected volatility | 22.99% | 25.48% |
Risk-free interest rate | 2.20% | 1.64% |
Expected term | 6 years 6 months | 6 years 11 months 1 day |
Weighted-average grant date fair value per option granted (in dollars per share) | $ 6.62 | $ 5.78 |
2008 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual vesting percentage | 20.00% | |
Vesting commencement period from grant date | 1 year | |
2013 Plan [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 2 years | |
2013 Plan [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 4 years |
Employee Benefits, Restricted S
Employee Benefits, Restricted Stock Awards (Details) - Restricted Stock Awards [Member] $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)Installment$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | |
Non-vested Restricted Stock Awards, Shares [Roll Forward] | ||
Non-vested, beginning of period (in shares) | shares | 26,138 | |
Granted (in shares) | shares | 576 | |
Vested (in shares) | shares | (14,929) | |
Forfeited (in shares) | shares | 0 | |
Expired (in shares) | shares | 0 | |
Non-vested, end of period (in shares) | shares | 11,785 | 26,138 |
Expected to vest assuming a 0% forfeiture rate over the vesting term (in shares) | shares | 11,785 | |
Nonvested Restricted Stock Awards, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Non-vested, beginning of period (in dollars per share) | $ 18.08 | |
Granted (in dollars per share) | 28.34 | |
Vested (in dollars per share) | 17.61 | |
Forfeited (in dollars per share) | 0 | |
Non-vested, end of period (in dollars per share) | 19.05 | $ 18.08 |
Expected to vest assuming a 0% forfeiture rate over the vesting term, weighted average grant date fair value (in dollars per share) | 19.05 | |
Nonvested Restricted Stock Awards, Additional Disclosures [Abstract] | ||
Aggregate intrinsic value per share (in dollars per share) | 14.97 | |
Expected to vest assuming a 0% forfeiture rate over the vesting term, aggregate intrinsic value per share (in dollars per share) | $ 14.97 | |
Forfeiture rate | 0.00% | |
Unrecognized compensation cost | $ | $ 329 | |
Remaining weighted-average vesting period | 3 months 11 days | |
Total fair value of shares vested | $ | $ 263 | $ 272 |
2008 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual vesting percentage | 20.00% | |
Vesting commencement period from grant date | 1 year | |
2013 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting commencement period from grant date | 1 year | |
Immediate vesting percentage | 33.33% | |
Number of annual installments | Installment | 2 |
Employee Benefits, Employee Sto
Employee Benefits, Employee Stock Ownership Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Aug. 31, 2012 | Jan. 31, 2008 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Shares released (in shares) | 21,440 | |||
Unallocated shares (in shares) | 45,360 | |||
Employee Stock Ownership Plan [Member] | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Repayment period | 10 years | |||
Shares released (in shares) | 21,440 | |||
Unallocated shares (in shares) | 45,360 | |||
Number of restricted shares held by the trust (in shares) | 176,964 | |||
Fair value of shares held by ESOP trust | $ 6,000 | |||
ESOP compensation expense | 640 | $ 491 | ||
Employee Stock Ownership Plan [Member] | ESOP Borrowing 2008 [Member] | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Amount borrowed by ESOP to purchase common stock | $ 1,200 | |||
Loan repayment from ESOP | 1,200 | |||
ESOP loan interest rate | 2.25% | |||
Employee Stock Ownership Plan [Member] | ESOP Borrowing 2012 [Member] | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Amount borrowed by ESOP to purchase common stock | $ 1,100 | |||
ESOP loan interest rate | 2.25% | |||
ESOP remaining loan balance from shares purchased | $ 477 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Provision for income taxes [Abstract] | |||
Current | $ 2,962 | $ 2,718 | |
Deferred | (203) | (23) | |
Rate change | 309 | 0 | |
Total tax expense | 3,068 | 2,695 | |
Reconciliation of provision for income taxes from U.S. federal income tax rate [Abstract] | |||
Provision at statutory rate | 2,786 | 2,745 | |
Tax-exempt income | (79) | (76) | |
Rate change | 309 | 0 | |
Other | 52 | 26 | |
Total tax expense | $ 3,068 | $ 2,695 | |
Federal Tax Rate | 34.00% | 34.00% | |
Tax exempt rate | (1.00%) | (0.90%) | |
Rate change | 3.80% | 0.00% | |
Other | 0.60% | 0.30% | |
Effective tax rate | 37.40% | 33.40% | |
Deferred tax assets [Abstract] | |||
Deferred compensation and supplemental retirement | $ 342 | $ 444 | |
Other, net | 66 | 182 | |
Equity based compensation | 84 | 117 | |
Intangible assets | 53 | 0 | |
Allowance for loan losses | 844 | 912 | |
Total deferred tax assets | 1,389 | 1,655 | |
Deferred tax liabilities [Abstract] | |||
Prepaid expenses | (62) | (86) | |
FHLB stock dividends | (87) | (141) | |
Unrealized gain on securities | (35) | (42) | |
Depreciation | (258) | (128) | |
Intangible assets | 0 | (4) | |
Mortgage servicing rights | (67) | (114) | |
Deferred loan costs | (380) | (539) | |
Total deferred tax liabilities | (889) | (1,054) | |
Net deferred tax asset | 500 | 601 | |
Unrecognized tax benefits | 0 | 0 | |
Unrecognized tax benefits, income tax penalties and interest expense | $ 0 | $ 0 | |
Plan [Member] | |||
Reconciliation of provision for income taxes from U.S. federal income tax rate [Abstract] | |||
Federal Tax Rate | 21.00% |
Minimum Regulatory Capital Re77
Minimum Regulatory Capital Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | ||
Actual, Amount [Abstract] | ||||
Tier I capital to total adjusted assets | $ 62,432 | [1] | $ 57,406 | [2] |
Common Equity Tier 1 risk-based capital ratio | 62,432 | [3] | 57,406 | [4] |
Tier I capital to risk-weighted assets | 62,432 | [3] | 57,406 | [4] |
Total capital to risk-weighted assets | $ 67,868 | [3] | $ 62,423 | [4] |
Actual, Ratio [Abstract] | ||||
Tier I capital to total adjusted assets | 10.10% | [1] | 9.99% | [2] |
Common Equity Tier 1 risk-based capital ratio | 12.03% | [3] | 12.02% | [4] |
Tier I capital to risk-weighted asset | 12.03% | [3] | 12.02% | [4] |
Total capital to risk-weighted assets | 13.08% | [3] | 13.07% | [4] |
Minimum Capital Requirements, Amount [Abstract] | ||||
Tier I capital to total adjusted assets | $ 24,721 | [1] | $ 22,992 | [2] |
Common Equity Tier I risk-based capital ratio | 23,354 | [3] | 21,490 | [4] |
Tier I capital to risk-weighted assets | 31,138 | [3] | 28,653 | [4] |
Total capital to risk-weighted assets | $ 41,518 | [3] | $ 38,204 | [4] |
Minimum Capital Requirements, Ratio [Abstract] | ||||
Tier I capital to total adjusted assets | 4.00% | [1] | 4.00% | [2] |
Common Equity Tier I risk-based capital ratio | 4.50% | [3] | 4.50% | [4] |
Tier I capital to risk-weighted assets | 6.00% | [3] | 6.00% | [4] |
Total capital to risk-weighted assets | 8.00% | [3] | 8.00% | [4] |
Minimum Required to be Well-Capitalized Under Prompt Corrective Action Provisions, Amount [Abstract] | ||||
Tier I capital to total adjusted assets | $ 30,902 | [1] | $ 28,740 | [2] |
Common Equity Tier I risk-based capital ratio | 33,733 | [3] | 31,041 | [4] |
Tier I capital to risk-weighted assets | 41,518 | [3] | 38,204 | [4] |
Total capital to risk weighted assets | $ 51,897 | [3] | $ 47,755 | [4] |
Minimum Required to be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio [Abstract] | ||||
Tier I capital to total adjusted assets | 5.00% | [1] | 5.00% | [2] |
Common Equity Tier I risk-based capital ratio | 6.50% | [3] | 6.50% | [4] |
Tier I capital to risk-weighted assets | 8.00% | [3] | 8.00% | [4] |
Total capital to risk-weighted assets | 10.00% | [3] | 10.00% | [4] |
Total adjusted assets | $ 618,035 | $ 574,792 | ||
Total risk-weighted assets | $ 518,970 | $ 477,548 | ||
Percentage of conversation buffer | 5.08% | |||
Sound Financial Bancorp [Member] | ||||
Actual, Ratio [Abstract] | ||||
Tier I capital to total adjusted assets | 10.35% | |||
Common Equity Tier 1 risk-based capital ratio | 12.33% | |||
Tier I capital to risk-weighted asset | 12.33% | |||
Total capital to risk-weighted assets | 13.37% | |||
[1] | Based on total adjusted assets of $618,035 at December 31, 2017. | |||
[2] | Based on total adjusted assets of $574,792 at December 31, 2016. | |||
[3] | Based on risk-weighted assets of $518,970 at December 31, 2017. | |||
[4] | Based on risk-weighted assets of $477,548 at December 31, 2016. |
Concentrations of Credit Risk (
Concentrations of Credit Risk (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Loans to Borrowers [Member] | Customer Concentration Risk [Member] | Maximum [Member] | |
Concentration Risk [Line Items] | |
Loans to any borrower as a percent of unimpaired capital and surplus | 15.00% |
Commitments and Contingencies79
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments whose contract amount represents a credit risk | $ 74,929 | $ 62,796 |
Fixed rate loan commitments | $ 3,400 | $ 5,800 |
Weighted average interest rate on fixed rate loan commitments | 4.29% | 4.02% |
Notional amount on letters of credit issued by FHLB of Seattle | $ 14,500 | |
Loan Repurchase Guarantee [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum amounts of guarantees on loans sold without recourse | $ 392,600 | $ 410,100 |
Number of loans repurchased | Loan | 1 | 0 |
Loans repurchased | $ 135 | |
Commitments to Make Loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments whose contract amount represents a credit risk | 1,689 | $ 3,942 |
Unfunded Construction Commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments whose contract amount represents a credit risk | 39,400 | 33,916 |
Unused Lines of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments whose contract amount represents a credit risk | 32,440 | 24,753 |
Irrevocable Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments whose contract amount represents a credit risk | $ 1,400 | $ 185 |
Parent Company Financial Info80
Parent Company Financial Information, Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets [Abstract] | |||
Cash and cash equivalents | $ 60,680 | $ 54,582 | $ 48,264 |
Other assets | 4,778 | 4,127 | |
Total assets | 645,244 | 588,383 | |
Liabilities and Stockholders' Equity [Abstract] | |||
Other liabilities | 5,972 | 4,874 | |
Total liabilities | 580,084 | 528,108 | |
Stockholders' equity | 65,160 | 60,275 | 54,520 |
Total liabilities and stockholders' equity | 645,244 | 588,383 | |
Sound Financial Bancorp (Parent Only) [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | 882 | 1,916 | $ 451 |
Investment in Sound Community Bank | 63,535 | 57,699 | |
Other assets | 743 | 660 | |
Total assets | 65,160 | 60,275 | |
Liabilities and Stockholders' Equity [Abstract] | |||
Other liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Stockholders' equity | 65,160 | 60,275 | |
Total liabilities and stockholders' equity | $ 65,160 | $ 60,275 |
Parent Company Financial Info81
Parent Company Financial Information, Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Income Statements Captions [Line Items] | ||
Income before provision for income taxes | $ 8,193 | $ 8,073 |
Income tax benefit | (3,068) | (2,695) |
Net income | 5,125 | 5,378 |
Sound Financial Bancorp (Parent Only) [Member] | ||
Condensed Income Statements Captions [Line Items] | ||
Dividend from subsidiary | 0 | 1,750 |
Other expenses | (243) | (220) |
Income before provision for income taxes | (243) | 1,530 |
Income tax benefit | 83 | 75 |
Equity in undistributed earnings of subsidiary | 5,285 | 3,773 |
Net income | $ 5,125 | $ 5,378 |
Parent Company Financial Info82
Parent Company Financial Information, Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities [Abstract] | ||
Net income | $ 5,125 | $ 5,378 |
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | ||
Net cash from operating activities | 6,827 | 7,148 |
Cash flows from investing activities [Abstract] | ||
ESOP shares released | 671 | 515 |
Net cash used by investing activities | (36,338) | (42,898) |
Cash flows from financing activities [Abstract] | ||
Dividends paid | (1,505) | (745) |
Stock options exercised | 43 | 165 |
Net cash from financing activities | 35,609 | 42,068 |
Net increase in cash and cash equivalents | 6,098 | 6,318 |
Cash and cash equivalents, beginning of year | 54,582 | 48,264 |
Cash and cash equivalents, end of year | 60,680 | 54,582 |
Sound Financial Bancorp (Parent Only) [Member] | ||
Cash flows from operating activities [Abstract] | ||
Net income | 5,125 | 5,378 |
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | ||
Other, net | (83) | (75) |
Change in undistributed equity of subsidiary | (5,285) | (3,773) |
Net cash from operating activities | (243) | 1,530 |
Cash flows from investing activities [Abstract] | ||
ESOP shares released | 671 | 515 |
Net cash used by investing activities | 671 | 515 |
Cash flows from financing activities [Abstract] | ||
Dividends paid | (1,505) | (745) |
Stock options exercised | 43 | 165 |
Net cash from financing activities | (1,462) | (580) |
Net increase in cash and cash equivalents | (1,034) | 1,465 |
Cash and cash equivalents, beginning of year | 1,916 | 451 |
Cash and cash equivalents, end of year | $ 882 | $ 1,916 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - Dividend Declared [Member] | Jan. 25, 2018$ / shares |
Subsequent Event [Line Items] | |
Dividends payable, date declared | Jan. 25, 2018 |
Dividends declared (in dollars per share) | $ 0.12 |
Dividends payable, date to be paid | Feb. 26, 2018 |
Dividends payable, date of record | Feb. 12, 2018 |