Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | May 12, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-35633 | |
Entity Registrant Name | Sound Financial Bancorp, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 45-5188530 | |
Entity Address, Address Line One | 2400 3rd Avenue, | |
Entity Address, Address Line Two | Suite 150, | |
Entity Address, City or Town | Seattle, | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98121 | |
City Area Code | 206 | |
Local Phone Number | 448-0884 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | SFBC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,614,219 | |
Entity Central Index Key | 0001541119 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 269,593 | $ 193,828 |
Available-for-sale securities, at fair value | 9,078 | 10,218 |
Loans held-for-sale | 10,713 | 11,604 |
Loans held-for-portfolio | 614,377 | 613,363 |
Allowance for loan losses | (5,935) | (6,000) |
Total loans held-for-portfolio, net | 608,442 | 607,363 |
Accrued interest receivable | 2,160 | 2,254 |
Bank-owned life insurance (“BOLI”), net | 14,690 | 14,588 |
Other real estate owned (“OREO”) and repossessed assets, net | 575 | 594 |
Mortgage servicing rights, at fair value | 4,109 | 3,780 |
Federal Home Loan Bank (“FHLB”) stock, at cost | 1,052 | 877 |
Premises and equipment, net | 6,123 | 6,270 |
Right of use assets | 6,475 | 6,722 |
Other assets | 3,641 | 3,304 |
Total assets | 936,651 | 861,402 |
Deposits | ||
Interest-bearing | 628,009 | 615,491 |
Noninterest-bearing demand | 188,684 | 132,490 |
Total deposits | 816,693 | 747,981 |
Accrued interest payable | 133 | 369 |
Lease liabilities | 6,894 | 7,134 |
Other liabilities | 12,027 | 7,674 |
Advance payments from borrowers for taxes and insurance | 1,746 | 1,168 |
Subordinated debt, net | 11,602 | 11,592 |
Total liabilities | 849,095 | 775,918 |
COMMITMENTS AND CONTINGENCIES (NOTE 7) | ||
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, 2,609,806 and 2,592,587 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | 26 | 25 |
Additional paid-in capital | 27,447 | 27,106 |
Unearned shares - Employee Stock Ownership Plan (“ESOP”) | (85) | (113) |
Retained earnings | 59,975 | 58,226 |
Accumulated other comprehensive income, net of tax | 193 | 240 |
Total stockholders’ equity | 87,556 | 85,484 |
Total liabilities and stockholders’ equity | $ 936,651 | $ 861,402 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 2,609,806 | 2,592,587 |
Common stock, shares outstanding | 2,609,806 | 2,592,587 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
INTEREST INCOME | ||
Loans, including fees | $ 7,886 | $ 8,408 |
Interest and dividends on investments, cash and cash equivalents | 113 | 238 |
Total interest income | 7,999 | 8,646 |
INTEREST EXPENSE | ||
Deposits | 1,295 | 1,859 |
Borrowings | 0 | 59 |
Subordinated notes | 168 | 0 |
Total interest expense | 1,463 | 1,918 |
Net interest income | 6,536 | 6,728 |
PROVISION FOR LOAN LOSSES | 0 | 250 |
Net interest income after provision for loan losses | 6,536 | 6,478 |
NONINTEREST INCOME | ||
Service charges and fee income | 532 | 494 |
Earnings on cash surrender value of bank-owned life insurance | 82 | 15 |
Mortgage servicing income | 312 | 244 |
Fair value adjustment on mortgage servicing rights | (275) | (362) |
Net gain on sale of loans | 2,053 | 318 |
Total noninterest income | 2,704 | 709 |
NONINTEREST EXPENSE | ||
Salaries and benefits | 3,644 | 3,235 |
Operations | 1,206 | 1,394 |
Regulatory assessments | 101 | 250 |
Occupancy | 448 | 497 |
Data processing | 779 | 570 |
Net gain on OREO and repossessed assets | (16) | 0 |
Total noninterest expense | 6,162 | 5,946 |
Income before provision for income taxes | 3,078 | 1,241 |
Provision for income taxes | 627 | 260 |
Net income | $ 2,451 | $ 981 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.95 | $ 0.38 |
Diluted (in dollars per share) | $ 0.93 | $ 0.38 |
Weighted-average number of common shares outstanding: | ||
Basic (in shares) | 2,571,726 | 2,542,514 |
Diluted (in shares) | 2,610,986 | 2,587,716 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 2,451 | $ 981 |
Available for sale securities: | ||
Unrealized holding losses arising during the period | (59) | (23) |
Income tax expense related to unrealized gains/losses | 12 | 4 |
Other comprehensive loss, net of tax | (47) | (19) |
Comprehensive income | $ 2,404 | $ 962 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid -in Capital | Unearned ESOP Shares | Retained Earnings | Accumulated Other Comprehensive Income, net of tax |
Beginning balance (in shares) at Dec. 31, 2019 | 2,567,389 | |||||
Beginning balance at Dec. 31, 2019 | $ 77,726 | $ 25 | $ 26,343 | $ (227) | $ 51,410 | $ 175 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 981 | 981 | ||||
Other comprehensive income (loss), net of tax | (19) | (19) | ||||
Share-based compensation | 185 | 185 | ||||
Restricted stock awards issued (in shares) | 13,600 | |||||
Cash dividends paid on common stock | (903) | (903) | ||||
Restricted shares forfeited (in shares) | (180) | |||||
Common stock options exercised (in shares) | 10,685 | |||||
Common stock options exercised | 182 | 182 | ||||
Allocation of ESOP shares | 95 | 66 | 29 | |||
Ending balance (in shares) at Mar. 31, 2020 | 2,591,494 | |||||
Ending balance at Mar. 31, 2020 | $ 78,247 | $ 25 | 26,776 | (198) | 51,488 | 156 |
Beginning balance (in shares) at Dec. 31, 2020 | 2,592,587 | 2,592,587 | ||||
Beginning balance at Dec. 31, 2020 | $ 85,484 | $ 25 | 27,106 | (113) | 58,226 | 240 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 2,451 | 2,451 | ||||
Other comprehensive income (loss), net of tax | (47) | (47) | ||||
Share-based compensation | 166 | 166 | ||||
Restricted stock awards issued (in shares) | 10,168 | |||||
Cash dividends paid on common stock | (702) | (702) | ||||
Common stock surrendered (in shares) | (3,029) | |||||
Restricted shares forfeited (in shares) | (1,470) | |||||
Common stock options exercised (in shares) | 11,550 | |||||
Common stock options exercised | 104 | $ 1 | 103 | |||
Allocation of ESOP shares | $ 100 | 72 | 28 | |||
Ending balance (in shares) at Mar. 31, 2021 | 2,609,806 | 2,609,806 | ||||
Ending balance at Mar. 31, 2021 | $ 87,556 | $ 26 | $ 27,447 | $ (85) | $ 59,975 | $ 193 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends paid on common stock (in dollars per share) | $ 0.27 | $ 0.35 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 2,451 | $ 981 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Amortization of net discounts on investments | 56 | 22 |
Provision for loan losses | 0 | 250 |
Depreciation and amortization | 176 | 245 |
Compensation expense related to stock options and restricted stock | 166 | 185 |
Fair value adjustment on mortgage servicing rights | 275 | 362 |
Right of use assets amortization | 247 | 257 |
Change in lease liabilities | (240) | (244) |
Increase in cash surrender value of BOLI | (74) | (15) |
Net change in advances from borrowers for taxes and insurance | 578 | 546 |
Net gain on sale of loans | (2,053) | (318) |
Proceeds from sale of loans held-for-sale | 69,741 | 19,003 |
Originations of loans held-for-sale | (67,401) | (23,721) |
Net gain on OREO and repossessed assets | (16) | 0 |
Change in operating assets and liabilities: | ||
Accrued interest receivable | 94 | 1 |
Other assets | (337) | 45 |
Accrued interest payable | (236) | (2) |
Other liabilities | 4,353 | (878) |
Net cash provided by (used in) operating activities | 7,780 | (3,281) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of available-for-sale securities | 0 | (2,489) |
Proceeds from principal payments, maturities and sales of available-for-sale securities | 1,047 | 514 |
Net (increase) decrease in loans | (1,079) | (5,485) |
Reduction in (purchase of) BOLI | (28) | 113 |
Purchases of premises and equipment, net | (29) | (355) |
Proceeds from sale of OREO and other repossessed assets | 35 | 0 |
Net cash used in investing activities | (54) | (7,702) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in deposits | 68,712 | 17,840 |
Proceeds from borrowings | 0 | 15,650 |
Repayment of borrowings | 0 | (15,650) |
FHLB stock purchased | (175) | (5) |
Allocation of ESOP shares | 100 | 95 |
Dividends paid on common stock | (702) | (903) |
Proceeds from common stock option exercises | 104 | 182 |
Net cash provided by financing activities | 68,039 | 17,209 |
Net change in cash and cash equivalents | 75,765 | 6,226 |
Cash and cash equivalents, beginning of period | 193,828 | 55,770 |
Cash and cash equivalents, end of period | 269,593 | 61,996 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for income taxes | 0 | 0 |
Interest paid on deposits and borrowings | $ 1,699 | $ 1,920 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial information is unaudited and has been prepared from the consolidated financial statements of Sound Financial Bancorp, Inc., and its wholly owned subsidiaries, Sound Community Bank and Sound Community Insurance Agency, Inc. References in this document to Sound Financial Bancorp refer to Sound Financial Bancorp, Inc. and references to the “Bank” refer to Sound Community Bank. References to “we,” “us,” and “our” or the “Company” refers to Sound Financial Bancorp and its wholly-owned subsidiaries, Sound Community Bank and Sound Community Insurance Agency, Inc., unless the context otherwise requires. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. These unaudited financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC on March 30, 2021 (“2020 Form 10-K”). The results for the interim periods are not necessarily indicative of results for a full year. Certain amounts in the prior period’s consolidated financial statements have been reclassified to conform to the current presentation. These classifications do not have an impact on previously reported consolidated net income, stockholders’ equity or earnings per share. |
Accounting Pronouncements Recen
Accounting Pronouncements Recently Issued or Adopted | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Pronouncements Recently Issued or Adopted | Accounting Pronouncements Recently Issued or Adopted The Coronavirus Aid, Relief and Economic Security Act ("CARES Act"), signed into law on March 27, 2020, provides relief from certain accounting and financial reporting requirements under U.S. GAAP. Section 4013 of the CARES Act provides temporary relief from the accounting and reporting requirements for troubled debt restructurings (“TDRs”) under Accounting Standards Codification ("ASC") 310-40 for loan modifications related to the novel coronavirus disease 2019 ("COVID-19") pandemic. In addition, on April 7, 2020, a group of banking agencies issued an interagency statement (“Interagency Statement”) for evaluating whether loan modifications that occur in response to the COVID-19 pandemic are TDRs. The Interagency Statement was originally issued on March 22, 2020, but the banking agencies revised it to address the relationship between their TDR accounting and disclosure guidance and the TDR guidance in Section 4013 of the CARES Act. Section 4013 of the CARES Act permits the suspension of ASC 310-40 for loan modifications that are made by financial institutions in response to the COVID-19 pandemic if (1) the borrower was not more than 30 days past due as of December 31, 2019, and (2) the modifications are related to arrangements that defer or delay the payment of principal or interest, or change the interest rate on the loan. The Interagency Statement indicates that a lender can conclude that a borrower is not experiencing financial difficulty if either (1) short-term (e.g., six months) modifications are made in response to COVID-19, such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant related to loans in which the borrower is less than 30 days past due on its contractual payments at the time a modification program is implemented, or (2) the modification or deferral program is mandated by the federal government or a state government. Accordingly, any loan modification made in response to the COVID-19 pandemic that meets either of these practical expedients would not be considered a TDR. The Company adopted this guidance effective March 27, 2020. On December 27, 2020, the Consolidated Appropriations Act 2021 (“CAA 2021”) was signed into law. Among other purposes, CAA 2021 provides coronavirus emergency response and relief, including extending relief offered under the CARES Act related to restructured loans as a result of COVID-19 through January 1, 2022 or 60 days after the end of the national emergency declared by the President, whichever is earlier. In October 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-08, “ Receivables – Nonrefundable Fees and Other Costs ” (“ASU 2020-08”). ASU 2020-08 clarifies that the Company should reevaluate whether a callable debt security is within the scope of paragraph 310-20-35-33 for each reporting period. ASU 2020-08 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The adoption of ASU 2018-13 did not have a material impact on the Company's consolidated financial statements. On March 2020, the FASB issued ASU No. 2020-04, " Reference Rate Reform" ("Topic 848"). This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this update apply to contract modifications that replace a reference rate affected by reference rate reform (including rates referenced in fallback provisions) and contemporaneous modifications of other contract terms related to the replacement of the reference rate (including contract modifications to add or change fallback provisions). The following optional expedients for applying the requirements of certain Topics or Industry Subtopics in the Codification are permitted for contracts that are modified because of reference rate reform and that meet certain scope guidance: 1) Modifications of contracts within the scope of Topics 310, Receivables, and 470, Debt, should be accounted for by prospectively adjusting the effective interest rate; 2) Modifications of contracts within the scope of Topics 840, Leases, and 842, Leases, should be accounted for as a continuation of the existing contracts with no reassessments of the lease classification and the discount rate (for example, the incremental borrowing rate) or remeasurements of lease payments that otherwise would be required under those Topics for modifications not accounted for as separate contracts; and 3) Modifications of contracts do not require an entity to reassess its original conclusion about whether that contract contains an embedded derivative that is clearly and closely related to the economic characteristics and risks of the host contract under Subtopic 815-15, Derivatives and Hedging— Embedded Derivatives. In January 2021, ASU 2021-01 updated amendments in the new ASU to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification. The amendments in this ASU have differing effective dates, beginning with interim period including and subsequent to March 12, 2020 through December 31, 2022. The Company does not expect the adoption of ASU 2020-04 to have a material impact on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU simplifies the accounting for income taxes by removing the exception to the incremental approach for intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items, removing the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, and removing the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The adoption of ASU 2019-12 did not have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. This ASU modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Disclosure requirements removed from FASB Subtopic 715-20 include the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, the amount and timing of plan assets expected to be returned to the employer, related party disclosures about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan, and, for public entities, the effects of a one-percentage-point change in assumed health care cost trend rates on the aggregate of the service and interest cost components of net periodic benefit costs and benefit obligation for postretirement health care benefits. Disclosure requirements added to FASB Subtopic 715-20 include the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates, and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This ASU is effective for fiscal years ending after December 15, 2020. The adoption of ASU No. 2018-14 did not 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 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 new guidance may result in an increase in the allowance for loan losses; however, the Company is still in the process of determining the magnitude of the change and its impact on the Company's consolidated financial statements. The FASB issued ASU No. 2019-10, Financial Instruments - Credit Losses (Topic 326) , delaying implementation of ASU No. 2016-13 for SEC smaller reporting company filers until fiscal year beginning after December 15, 2022. The Bank meets the requirements of a smaller reporting company and will delay implementation of ASU No. 2016-13. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2021 | |
Investments [Abstract] | |
Investments | Investments The amortized cost and fair value of our available-for-sale (“AFS”) securities and the corresponding amounts of gross unrealized gains and losses at the dates indicated were as follows (in thousands): Amortized Gross Gross Estimated March 31, 2021 Municipal bonds $ 5,192 $ 187 $ (20) $ 5,359 Agency mortgage-backed securities 3,642 90 (13) 3,719 Total $ 8,834 $ 277 $ (33) $ 9,078 December 31, 2020 Municipal bonds $ 5,209 $ 204 $ — $ 5,413 Agency mortgage-backed securities 4,706 105 (6) 4,805 Total $ 9,915 $ 309 $ (6) $ 10,218 The amortized cost and fair value of AFS securities at March 31, 2021, 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. March 31, 2021 Amortized Fair Due within one year $ 1,182 $ 1,188 Due after one year through five years 260 271 Due after five years through ten years 458 499 Due after ten years 3,292 3,401 Mortgage-backed securities 3,642 3,719 Total $ 8,834 $ 9,078 There were no pledged securities at March 31, 2021 or December 31, 2020. There were no sales of AFS securities during the three months ended March 31, 2021 or 2020. The following table summarizes 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 the dates indicated (in thousands): March 31, 2021 Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Municipal bonds $ 2,076 $ (20) $ — $ — $ 2,076 $ (20) Agency mortgage-backed securities 552 (13) — — 552 (13) Total $ 2,628 $ (33) $ — $ — $ 2,628 $ (33) December 31, 2020 Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Agency mortgage-backed securities $ 1,618 $ (6) $ — $ — $ 1,618 $ (6) Total $ 1,618 $ (6) $ — $ — $ 1,618 $ (6) There were no credit losses recognized in earnings related to other than temporary impairments during the three months ended March 31, 2021 or 2020. At March 31, 2021, the securities portfolio consisted of 12 agency mortgage-backed securities and ten municipal bonds with a total portfolio fair value of $9.1 million. At December 31, 2020, the securities portfolio consisted of 16 agency mortgage-backed securities and ten municipal bonds with a fair value of $10.2 million. At March 31, 2021, there were five securities in an unrealized loss position for less than 12 months, and there were no securities in an unrealized loss position for more than 12 months. At December 31, 2020, there were six securities in an unrealized loss position for less than 12 months, and there were no securities in an unrealized loss position for more than 12 months. 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. The unrealized losses on these investments are not considered other-than-temporary impairment ("OTTI") as of March 31, 2021, because the decline in fair value is not attributable to credit quality and because we do not intend, and it is not likely that we will be required, to sell these securities before recovery of their amortized cost basis . Deterioration in market and economic conditions related to the COVID-19 pandemic may, however, have an adverse impact on credit quality in the future and result in OTTI charges. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Loans | 90 Days and Accruing Total Past Current Total Loans One-to-four family $ 2,120 $ 160 $ 1,353 $ — $ 3,633 $ 126,362 $ 129,995 Home equity 169 191 102 — 462 13,301 13,763 Commercial and multifamily 1,467 — 353 — 1,820 249,639 251,459 Construction and land 1,166 — 40 — 1,206 61,906 63,112 Manufactured homes 133 — 146 — 279 20,502 20,781 Floating homes 46 — 249 — 295 39,573 39,868 Other consumer 1 2 — — 3 14,939 14,942 Commercial business — — — — — 83,669 83,669 Total $ 5,102 $ 353 $ 2,243 $ — $ 7,698 $ 609,891 $ 617,589 December 31, 2020 30-59 Days 60-89 Days 90 Days and Greater Past Due > 90 Days and Accruing Total Past Current Total Loans One-to-four family $ 498 $ 362 $ 1,407 $ — $ 2,267 $ 128,390 $ 130,657 Home equity 102 — 112 — 214 16,051 16,265 Commercial and multifamily — — 353 — 353 265,421 265,774 Construction and land 690 — 40 — 730 62,022 62,752 Manufactured homes 159 74 149 — 382 20,559 20,941 Floating homes — 269 249 — 518 39,350 39,868 Other consumer 15 1 — — 16 15,008 15,024 Commercial business 583 — — — 583 63,634 64,217 Total $ 2,047 $ 706 $ 2,310 $ — $ 5,063 $ 610,435 $ 615,498 Nonperforming Loans. Loans are considered nonperforming when they are placed on nonaccrual. The following tables present the credit risk profile of our loan portfolio based on payment activity as of the dates indicated, by type of loan (in thousands): March 31, 2021 One-to-four Home Commercial Construction Manufactured Floating Other Commercial Total Performing $ 128,488 $ 13,612 $ 251,106 $ 63,072 $ 20,635 $ 39,354 $ 14,942 $ 83,669 $ 614,878 Nonperforming 1,507 151 353 40 146 514 — — 2,711 Total $ 129,995 $ 13,763 $ 251,459 $ 63,112 $ 20,781 $ 39,868 $ 14,942 $ 83,669 $ 617,589 December 31, 2020 One-to-four Home Commercial Construction Manufactured Floating Other Commercial Total Performing $ 128,989 $ 16,109 $ 265,421 $ 62,712 $ 20,792 $ 39,350 $ 15,024 $ 64,217 $ 612,614 Nonperforming 1,668 156 353 40 149 518 — — 2,884 Total $ 130,657 $ 16,265 $ 265,774 $ 62,752 $ 20,941 $ 39,868 $ 15,024 $ 64,217 $ 615,498 Impaired Loans. A loan is considered impaired when we determine that we may be unable to collect payments of principal or interest when due under the terms of the loan. In the process of identifying loans as impaired, we take into consideration factors which include payment history and status, collateral value, financial condition of the borrower, and the probability of collecting scheduled payments in the future. Minor payment delays and insignificant payment shortfalls typically do not result in a loan being classified as impaired. The significance of payment delays and shortfalls is considered on a case by case basis, after taking into consideration the totality of circumstances surrounding the loan and the borrower, including payment history. Impairment is measured on a loan by loan basis for all loans in the portfolio. 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. Impaired loans at the dates indicated, by type of loan were as follows (in thousands): March 31, 2021 Recorded Investment Unpaid Principal Without With Total Related One-to-four family $ 3,565 $ 2,516 $ 902 $ 3,418 $ 126 Home equity 375 151 135 286 14 Commercial and multifamily 353 353 — 353 — Construction and land 76 40 36 76 5 Manufactured homes 260 46 211 257 160 Floating homes 514 514 — 514 — Other consumer 112 — 113 113 29 Commercial business 613 613 — 613 — Total $ 5,868 $ 4,233 $ 1,397 $ 5,630 $ 334 December 31, 2020 Recorded Investment Unpaid Principal Without With Total Related One-to-four family $ 3,791 $ 2,392 $ 1,313 $ 3,705 $ 165 Home equity 293 156 137 293 14 Commercial and multifamily 353 353 — 353 — Construction and land 77 40 37 77 6 Manufactured homes 268 47 218 265 163 Floating homes 518 518 — 518 — Other consumer 114 — 114 114 30 Commercial business 615 615 — 615 — Total $ 6,029 $ 4,121 $ 1,819 $ 5,940 $ 378 The following table presents the average recorded investment and interest income recognized on impaired loans for the periods indicated, by loan types (in thousands): Three Months Ended March 31, 2021 2020 Average Interest Income Average Interest Income One-to-four family $ 3,575 $ 29 $ 7,274 $ 72 Home equity 290 5 347 5 Commercial and multifamily 353 — 353 5 Construction and land 76 — 844 14 Manufactured homes 262 5 434 9 Floating homes 516 3 407 8 Other consumer 114 1 141 2 Commercial business 614 5 1,273 23 Total $ 5,800 $ 48 $ 11,073 $ 138 Forgone interest on nonaccrual loans was $40,000 and $62,000 for the three months ended March 31, 2021 and 2020, respectively. There were no commitments to lend additional funds to borrowers whose loans were classified as nonaccrual or impaired at March 31, 2021 and December 31, 2020. Troubled debt restructurings. TDRs are accounted for under ASC 310-40, are loans which have renegotiated loan terms to assist borrowers who are unable to meet the original terms of their loans. Such modifications to loan terms may include a lower interest rate, a reduction in principal, or a longer term to maturity. Once a TDR has performed according to its modified terms for six months and the collection of principal and interest under the revised terms is deemed probable, we remove the TDR from nonperforming status. Loans classified as TDRs totaled $3.2 million at both March 31, 2021 and December 31, 2020, and are included in impaired loans. The Company has granted, in its TDRs, a variety of concessions to borrowers in the form of loan modifications. The modifications granted can generally be described in the following categories: Rate Modification : A modification in which the interest rate is changed. Term Modification : A modification in which the maturity date, timing of payments or frequency of payments is changed. Payment Modification : A modification in which the dollar amount of the payment is changed. Interest only modifications in which a loan is converted to interest only payments for a period of time are included in this category. Combination Modification : Any other type of modification, including the use of multiple categories above. There were no loans modified as a TDR during the three months ended March 31, 2021 and two loans totaling $218,000 modified as TDRs during the three months ended March 31, 2020. No TDR loans totaling were paid off during the three months ended March 31, 2021 and one TDR loan totaling $2.8 million was paid off during the three months ended March 31, 2020. 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 three months ended March 31, 2021 and 2020. There were no loans modified as a TDR for which there was a payment default within the first 12 months of modification and no charge-offs relating to TDRs during the three months ended March 31, 2021 and 2020. The Company had no commitments to extend additional credit to borrowers owing receivables whose terms have been modified into TDRs. In March 2020, the Company began offering short-term loan modifications to assist borrowers during the COVID-19 pandemic. The CARES Act, and the Interagency Statement provides that a short-term modification made to a loan in response to COVID-19 which meets certain criteria does not need to be placed on nonaccrual status or accounted for as a TDR pursuant to applicable accounting and regulatory guidance until the earlier of 60 days after the national emergency termination date or January 1, 2022. The majority of these borrowers had resumed making payments as of March 31, 2021, and as of that date, only seven commercial loans totaling $9.1 million and 21 residential loans totaling $3.6 million, remained on deferral status under COVID-19 loan modification forbearance agreements. We continue to monitor these loans through our normal credit risk " id="sjs-B4" xml:space="preserve">Loans The composition of the loans-held-for portfolio at the dates indicated, excluding loans held-for-sale, was as follows (in thousands): March 31, December 31, Real estate loans: One-to-four family $ 129,995 $ 130,657 Home equity 13,763 16,265 Commercial and multifamily 251,459 265,774 Construction and land 63,112 62,752 Total real estate loans 458,329 475,448 Consumer loans: Manufactured homes 20,781 20,941 Floating homes 39,868 39,868 Other consumer 14,942 15,024 Total consumer loans 75,591 75,833 Commercial business loans 83,669 64,217 Total loans held-for-portfolio 617,589 615,498 Deferred fees, net (3,212) (2,135) Total loans held-for-portfolio, gross 614,377 613,363 Allowance for loan losses (5,935) (6,000) Total loans held-for-portfolio, net $ 608,442 $ 607,363 The Company was automatically authorized to participate in the U.S. Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”), as a qualified lender since the inception of the program. As of March 31, 2021, the Bank had funded PPP loans totaling $113.9 million, $61.2 million of which remained outstanding and are included in commercial business loans above. PPP loans are 100% guaranteed by the SBA The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of the dates indicated (in thousands): March 31, 2021 Allowance: Individually evaluated for impairment Allowance: Collectively evaluated for impairment Allowance: Loans held for investment: Individually evaluated for impairment Loans held for investment: Collectively evaluated for impairment Loans held for investment: One-to-four family $ 126 $ 854 $ 980 $ 3,418 $ 126,577 $ 129,995 Home equity 14 97 111 286 13,477 13,763 Commercial and multifamily — 2,109 2,109 353 251,106 251,459 Construction and land 5 590 595 76 63,036 63,112 Manufactured homes 160 211 371 257 20,524 20,781 Floating homes — 291 291 514 39,354 39,868 Other consumer 29 158 187 113 14,829 14,942 Commercial business — 720 720 613 83,056 83,669 Unallocated — 571 571 — — — Total $ 334 $ 5,601 $ 5,935 $ 5,630 $ 611,959 $ 617,589 December 31, 2020 Allowance: Individually evaluated for impairment Allowance: Collectively evaluated for impairment Allowance: Loans held for investment: Individually evaluated for impairment Loans held for investment: Collectively evaluated for impairment Loans held for investment: One-to-four family $ 165 $ 898 $ 1,063 $ 3,705 $ 126,952 $ 130,657 Home equity 14 133 147 293 15,972 16,265 Commercial and multifamily — 2,370 2,370 353 265,421 265,774 Construction and land 6 572 578 77 62,675 62,752 Manufactured homes 163 366 529 265 20,676 20,941 Floating homes — 328 328 518 39,350 39,868 Other consumer 30 258 288 114 14,910 15,024 Commercial business — 291 291 615 63,602 64,217 Unallocated — 406 406 — — — Total $ 378 $ 5,622 $ 6,000 $ 5,940 $ 609,558 $ 615,498 The following tables summarize the activity in the allowance for loan losses for the periods indicated (in thousands): Three Months Ended March 31, 2021 Beginning Charge-offs Recoveries Provision (Recapture) Ending One-to-four family $ 1,063 $ (62) $ — $ (21) $ 980 Home equity 147 — — (36) 111 Commercial and multifamily 2,370 — — (261) 2,109 Construction and land 578 — — 17 595 Manufactured homes 529 — 1 (159) 371 Floating homes 328 — — (37) 291 Other consumer 288 (9) 3 (95) 187 Commercial business 291 — 2 427 720 Unallocated 406 — — 165 571 Total $ 6,000 $ (71) $ 6 $ — $ 5,935 Three Months Ended March 31, 2020 Beginning Charge-offs Recoveries (Recapture) Provision Ending One-to-four family $ 1,120 $ — $ 4 $ 5 $ 1,129 Home equity 178 — 2 (14) 166 Commercial and multifamily 1,696 — — 222 1,918 Construction and land 492 — — 7 499 Manufactured homes 480 — — 2 482 Floating homes 283 — — 35 318 Other consumer 112 (6) 3 12 121 Commercial business 331 — — 64 395 Unallocated 948 — — (83) 865 Total $ 5,640 $ (6) $ 9 $ 250 $ 5,893 Credit Quality Indicators. Federal regulations provide for the classification of lower quality loans and other assets (such as OREO and repossessed assets), debt and equity securities considered as "substandard," "doubtful" or "loss." An asset is considered "substandard" if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. "Substandard" assets include those characterized by the "distinct possibility" that the insured institution will sustain "some loss" if the deficiencies are not corrected. Assets classified as "doubtful" have all of the weaknesses in those classified "substandard," with the added characteristic that the weaknesses present make "collection or liquidation in full," on the basis of currently existing facts, conditions and values, "highly questionable and improbable." Assets classified as "loss" are those considered "uncollectible" and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted. When we classify problem assets as either substandard or doubtful, we may establish a specific allowance in an amount we deem prudent to address specific impairments. General allowances represent loss allowances 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 an insured institution classifies problem assets as a loss, it is required to charge off those assets in the period in which they are deemed uncollectible. Our determination as to the classification of our assets and the amount of our valuation allowances is subject to review by the Federal Deposit Insurance Corporation (“FDIC”), the Bank's federal regulator, and, since our conversion to a Washington-chartered commercial bank, the Washington Department of Financial Institutions, the Bank's state banking regulator, which can order the establishment of additional loss allowances. Assets which do not currently expose us to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses are required to be designated as special mention. The following tables present the internally assigned grades as of the dates indicated, by type of loan (in thousands): March 31, 2021 One-to- Home Commercial Construction Manufactured Floating Other Commercial Total Grade: Pass $ 123,661 $ 13,152 $ 208,405 $ 45,293 $ 20,063 $ 38,750 $ 14,917 $ 77,199 $ 541,440 Watch 4,221 178 30,369 13,511 518 604 2 4,392 53,795 Special Mention — — 10,062 3,543 — — — 465 14,070 Substandard 2,113 433 2,623 765 200 514 23 1,613 8,284 Doubtful — — — — — — — — — Loss — — — — — — — — — Total $ 129,995 $ 13,763 $ 251,459 $ 63,112 $ 20,781 $ 39,868 $ 14,942 $ 83,669 $ 617,589 December 31, 2020 One-to- Home Commercial Construction Manufactured Floating Other Commercial Total Grade: Pass $ 113,185 $ 15,556 $ 228,652 $ 44,360 $ 19,606 $ 38,746 $ 15,000 $ 56,743 $ 531,848 Watch 15,142 245 22,945 13,808 1,115 604 — 5,202 59,061 Special Mention — — 10,813 3,939 — — — 310 15,062 Substandard 2,330 464 3,364 645 220 518 24 1,962 9,527 Doubtful — — — — — — — — — Loss — — — — — — — — — Total $ 130,657 $ 16,265 $ 265,774 $ 62,752 $ 20,941 $ 39,868 $ 15,024 $ 64,217 $ 615,498 Nonaccrual and Past Due Loans . Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on nonaccrual once the loan is 90 days past due or sooner if, in management’s opinion, the borrower may be unable to meet payment of obligations as they become due, as well as when required by regulatory provisions. The following table presents the recorded investment in nonaccrual loans as of the dates indicated, by type of loan (in thousands): March 31, 2021 December 31, 2020 One-to-four family $ 1,507 $ 1,668 Home equity 151 156 Commercial and multifamily 353 353 Construction and land 40 40 Manufactured homes 146 149 Floating homes 514 518 Total $ 2,711 $ 2,884 The following tables present the aging of the recorded investment in past due loans as of the dates indicated, by type of loan (in thousands): March 31, 2021 30-59 Days 60-89 Days 90 Days and Greater Past Due > 90 Days and Accruing Total Past Current Total Loans One-to-four family $ 2,120 $ 160 $ 1,353 $ — $ 3,633 $ 126,362 $ 129,995 Home equity 169 191 102 — 462 13,301 13,763 Commercial and multifamily 1,467 — 353 — 1,820 249,639 251,459 Construction and land 1,166 — 40 — 1,206 61,906 63,112 Manufactured homes 133 — 146 — 279 20,502 20,781 Floating homes 46 — 249 — 295 39,573 39,868 Other consumer 1 2 — — 3 14,939 14,942 Commercial business — — — — — 83,669 83,669 Total $ 5,102 $ 353 $ 2,243 $ — $ 7,698 $ 609,891 $ 617,589 December 31, 2020 30-59 Days 60-89 Days 90 Days and Greater Past Due > 90 Days and Accruing Total Past Current Total Loans One-to-four family $ 498 $ 362 $ 1,407 $ — $ 2,267 $ 128,390 $ 130,657 Home equity 102 — 112 — 214 16,051 16,265 Commercial and multifamily — — 353 — 353 265,421 265,774 Construction and land 690 — 40 — 730 62,022 62,752 Manufactured homes 159 74 149 — 382 20,559 20,941 Floating homes — 269 249 — 518 39,350 39,868 Other consumer 15 1 — — 16 15,008 15,024 Commercial business 583 — — — 583 63,634 64,217 Total $ 2,047 $ 706 $ 2,310 $ — $ 5,063 $ 610,435 $ 615,498 Nonperforming Loans. Loans are considered nonperforming when they are placed on nonaccrual. The following tables present the credit risk profile of our loan portfolio based on payment activity as of the dates indicated, by type of loan (in thousands): March 31, 2021 One-to-four Home Commercial Construction Manufactured Floating Other Commercial Total Performing $ 128,488 $ 13,612 $ 251,106 $ 63,072 $ 20,635 $ 39,354 $ 14,942 $ 83,669 $ 614,878 Nonperforming 1,507 151 353 40 146 514 — — 2,711 Total $ 129,995 $ 13,763 $ 251,459 $ 63,112 $ 20,781 $ 39,868 $ 14,942 $ 83,669 $ 617,589 December 31, 2020 One-to-four Home Commercial Construction Manufactured Floating Other Commercial Total Performing $ 128,989 $ 16,109 $ 265,421 $ 62,712 $ 20,792 $ 39,350 $ 15,024 $ 64,217 $ 612,614 Nonperforming 1,668 156 353 40 149 518 — — 2,884 Total $ 130,657 $ 16,265 $ 265,774 $ 62,752 $ 20,941 $ 39,868 $ 15,024 $ 64,217 $ 615,498 Impaired Loans. A loan is considered impaired when we determine that we may be unable to collect payments of principal or interest when due under the terms of the loan. In the process of identifying loans as impaired, we take into consideration factors which include payment history and status, collateral value, financial condition of the borrower, and the probability of collecting scheduled payments in the future. Minor payment delays and insignificant payment shortfalls typically do not result in a loan being classified as impaired. The significance of payment delays and shortfalls is considered on a case by case basis, after taking into consideration the totality of circumstances surrounding the loan and the borrower, including payment history. Impairment is measured on a loan by loan basis for all loans in the portfolio. 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. Impaired loans at the dates indicated, by type of loan were as follows (in thousands): March 31, 2021 Recorded Investment Unpaid Principal Without With Total Related One-to-four family $ 3,565 $ 2,516 $ 902 $ 3,418 $ 126 Home equity 375 151 135 286 14 Commercial and multifamily 353 353 — 353 — Construction and land 76 40 36 76 5 Manufactured homes 260 46 211 257 160 Floating homes 514 514 — 514 — Other consumer 112 — 113 113 29 Commercial business 613 613 — 613 — Total $ 5,868 $ 4,233 $ 1,397 $ 5,630 $ 334 December 31, 2020 Recorded Investment Unpaid Principal Without With Total Related One-to-four family $ 3,791 $ 2,392 $ 1,313 $ 3,705 $ 165 Home equity 293 156 137 293 14 Commercial and multifamily 353 353 — 353 — Construction and land 77 40 37 77 6 Manufactured homes 268 47 218 265 163 Floating homes 518 518 — 518 — Other consumer 114 — 114 114 30 Commercial business 615 615 — 615 — Total $ 6,029 $ 4,121 $ 1,819 $ 5,940 $ 378 The following table presents the average recorded investment and interest income recognized on impaired loans for the periods indicated, by loan types (in thousands): Three Months Ended March 31, 2021 2020 Average Interest Income Average Interest Income One-to-four family $ 3,575 $ 29 $ 7,274 $ 72 Home equity 290 5 347 5 Commercial and multifamily 353 — 353 5 Construction and land 76 — 844 14 Manufactured homes 262 5 434 9 Floating homes 516 3 407 8 Other consumer 114 1 141 2 Commercial business 614 5 1,273 23 Total $ 5,800 $ 48 $ 11,073 $ 138 Forgone interest on nonaccrual loans was $40,000 and $62,000 for the three months ended March 31, 2021 and 2020, respectively. There were no commitments to lend additional funds to borrowers whose loans were classified as nonaccrual or impaired at March 31, 2021 and December 31, 2020. Troubled debt restructurings. TDRs are accounted for under ASC 310-40, are loans which have renegotiated loan terms to assist borrowers who are unable to meet the original terms of their loans. Such modifications to loan terms may include a lower interest rate, a reduction in principal, or a longer term to maturity. Once a TDR has performed according to its modified terms for six months and the collection of principal and interest under the revised terms is deemed probable, we remove the TDR from nonperforming status. Loans classified as TDRs totaled $3.2 million at both March 31, 2021 and December 31, 2020, and are included in impaired loans. The Company has granted, in its TDRs, a variety of concessions to borrowers in the form of loan modifications. The modifications granted can generally be described in the following categories: Rate Modification : A modification in which the interest rate is changed. Term Modification : A modification in which the maturity date, timing of payments or frequency of payments is changed. Payment Modification : A modification in which the dollar amount of the payment is changed. Interest only modifications in which a loan is converted to interest only payments for a period of time are included in this category. Combination Modification : Any other type of modification, including the use of multiple categories above. There were no loans modified as a TDR during the three months ended March 31, 2021 and two loans totaling $218,000 modified as TDRs during the three months ended March 31, 2020. No TDR loans totaling were paid off during the three months ended March 31, 2021 and one TDR loan totaling $2.8 million was paid off during the three months ended March 31, 2020. 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 three months ended March 31, 2021 and 2020. There were no loans modified as a TDR for which there was a payment default within the first 12 months of modification and no charge-offs relating to TDRs during the three months ended March 31, 2021 and 2020. The Company had no commitments to extend additional credit to borrowers owing receivables whose terms have been modified into TDRs. In March 2020, the Company began offering short-term loan modifications to assist borrowers during the COVID-19 pandemic. The CARES Act, and the Interagency Statement provides that a short-term modification made to a loan in response to COVID-19 which meets certain criteria does not need to be placed on nonaccrual status or accounted for as a TDR pursuant to applicable accounting and regulatory guidance until the earlier of 60 days after the national emergency termination date or January 1, 2022. The majority of these borrowers had resumed making payments as of March 31, 2021, and as of that date, only seven commercial loans totaling $9.1 million and 21 residential loans totaling $3.6 million, remained on deferral status under COVID-19 loan modification forbearance agreements. We continue to monitor these loans through our normal credit risk |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company determines the fair values of its financial instruments based on the requirements established in ASC 820 , Fair Value Measurements (“ASC 820”), which provides a framework for measuring fair value in accordance with U.S. GAAP and requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 defines fair values for financial instruments as the exit price, the price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date under current market conditions. The Company’s fair values for financial instruments at March 31, 2021 were determined based on these requirements. The following methods and assumptions were used to estimate the fair value of other financial instruments: Cash and cash equivalents - The estimated fair value is equal to the carrying amount. Available-for-Sale Securities – Available-for-sale securities are recorded at fair value based on quoted market prices, if available. If quoted market prices are not available, management utilizes third-party pricing services or broker quotations from dealers in the specific instruments. Level 2 securities include those traded on an active exchange, as well as U.S. government securities. Loans Held-for-Sale - Residential mortgage loans held-for-sale are recorded at the lower of cost or fair value. The fair value of fixed-rate residential loans is based on whole loan forward prices obtained from government sponsored enterprises. At March 31, 2021 and December 31, 2020, loans held-for-sale were carried at cost, as no impairment was required. Loans Held-for-Portfolio - The estimated fair value of loans-held-for portfolio consists of a credit adjustment to reflect the estimated adjustment to the carrying value of the loans due to credit-related factors and a yield adjustment, to reflect the estimated adjustment to the carrying value of the loans due to a differential in yield between the portfolio loan yields and estimated current market rate yields on loans with similar characteristics. The estimated fair values of loans held for portfolio reflect exit price assumptions. The liquidity premium/discounts are part of the valuation for exit pricing. Mortgage Servicing Rights –The fair value of mortgage servicing rights is determined through a discounted cash flow analysis, which uses interest rates, prepayment speeds, discount rates, and delinquency rate assumptions as inputs. FHLB stock - The estimated fair value is equal to the par value of the stock. Non-maturity deposits - The estimated fair value is equal to the carrying amount. Time deposits - The estimated fair value of time deposits is based on the difference between interest costs paid on the Company’s time deposits and current market rates for time deposits with comparable characteristics. Borrowings - The fair value of borrowings are estimated using the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Subordinated Debt - The fair value of subordinated debt is estimated using discounted cash flows based on current lending rates for similar long-term debt instruments with similar terms and remaining time to maturity. A description of the valuation methodologies used for impaired loans and OREO is as follows: Impaired Loans - The fair value of collateral dependent loans is based on the current appraised value of the collateral less estimated costs to sell, or internally developed models utilizing a calculation of expected discounted cash flows which contain management’s assumptions. OREO and Repossessed Assets – The fair value of OREO and repossessed assets is based on the current appraised value of the collateral less estimated costs to sell. Off-balance sheet financial instruments - The fair value for the Company’s off-balance sheet loan commitments are estimated based on fees charged to others to enter into similar agreements taking into account the remaining terms of the agreements and credit standing of the Company’s clients. The estimated fair value of these commitments is not significant. In certain cases, the inputs used to measure fair value may fall into different levels of the hierarchy. In such cases, the lowest level of inputs that is significant to the measurement is used to determine the hierarchy for the entire asset or liability. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s quarterly valuation process. There were no transfers between levels during the three months ended March 31, 2021 and 2020. The following tables present information about the level in the fair value hierarchy for the Company’s financial assets and liabilities, whether or not recognized or recorded at fair value as of the dates indicated (in thousands): March 31, 2021 Fair Value Measurements Using: Carrying Estimated Level 1 Level 2 Level 3 FINANCIAL ASSETS: Cash and cash equivalents $ 269,593 $ 269,593 $ 269,593 $ — $ — Available-for-sale securities 9,078 9,078 — 9,078 — Loans held-for-sale 10,713 10,713 — 10,713 — Loans held-for-portfolio, net 608,442 609,134 — — 609,134 Mortgage servicing rights 4,109 4,109 — — 4,109 FHLB stock 1,052 1,052 — 1,052 — FINANCIAL LIABILITIES: Non-maturity deposits 624,941 624,941 — 624,941 — Time deposits 191,752 194,056 — 194,056 — Subordinated notes $ 11,602 $ 11,602 $ — $ 11,602 $ — December 31, 2020 Fair Value Measurements Using: Carrying Estimated Level 1 Level 2 Level 3 FINANCIAL ASSETS: Cash and cash equivalents $ 193,828 $ 193,828 $ 193,828 $ — $ — Available-for-sale securities 10,218 10,218 — 10,218 — Loans held-for-sale 11,604 11,604 — 11,604 — Loans held-for-portfolio, net 607,363 608,575 — — 608,575 Mortgage servicing rights 3,780 3,780 — — 3,780 FHLB stock 877 877 — 877 — FINANCIAL LIABILITIES: Non-maturity deposits 512,507 512,507 — 512,507 — Time deposits 235,474 238,629 — 238,629 — Subordinated notes 11,592 11,592 — 11,592 — The following tables present the balance of assets measured at fair value on a recurring basis as of the dates indicated (in thousands): Fair Value at March 31, 2021 Description Total Level 1 Level 2 Level 3 Municipal bonds 5,359 — 5,359 — Agency mortgage-backed securities 3,719 — 3,719 — Mortgage servicing rights 4,109 — — 4,109 Fair Value at December 31, 2020 Description Total Level 1 Level 2 Level 3 Municipal bonds $ 5,413 $ — $ 5,413 $ — Agency mortgage-backed securities 4,805 — 4,805 — Mortgage servicing rights 3,780 — — 3,780 The following tables provide 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 as of the dates indicated: March 31, 2021 Financial Instrument Valuation Technique Unobservable Input(s) Range Mortgage Servicing Rights Discounted cash flow Prepayment speed assumption 202%-392% (224%) Discount rate 12.5%-13.5% (12.5%) December 31, 2020 Financial Instrument Valuation Technique Unobservable Input(s) Range Mortgage Servicing Rights Discounted cash flow Prepayment speed assumption 178%-276% (247%) Discount rate 10.0%-12.0% (10.0%) 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. There were no assets or liabilities (excluding mortgage servicing rights) measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three months ended March 31, 2021 and 2020. Mortgage servicing rights are measured at fair value using a significant unobservable input (Level 3) on a recurring basis - additional information is included in “Note 6—Mortgage Servicing Rights.” The following tables present the balance of assets measured at fair value on a nonrecurring basis at the dates indicated (in thousands): Fair Value at March 31, 2021 Total Level 1 Level 2 Level 3 OREO and repossessed assets $ 575 $ — $ — $ 575 Impaired loans 5,630 — — 5,630 Fair Value at December 31, 2020 Total Level 1 Level 2 Level 3 OREO and repossessed assets $ 594 $ — $ — $ 594 Impaired loans 5,940 — — 5,940 There were no liabilities carried at fair value, measured on a recurring or nonrecurring basis, at March 31, 2021 and December 31, 2020. The following tables provide 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 the dates indicated: March 31, 2021 Financial Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) OREO Market approach Adjustment for differences 0-0% (0%) Impaired loans Market approach Adjustment for differences 0-100% (6%) December 31, 2020 Financial Valuation Technique(s) Unobservable Input(s) Range OREO Market approach Adjusted for difference 0-0% (0%) Impaired loans Market approach Adjusted for difference 0-100% (6%) |
Mortgage Servicing Rights
Mortgage Servicing Rights | 3 Months Ended |
Mar. 31, 2021 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights | Mortgage Servicing RightsThe Company’s mortgage servicing rights portfolio totaled $509.8 million at March 31, 2021 compared to $488.7 million at December 31, 2020. Of this total balance, the unpaid principal balance of loans serviced for Federal National Mortgage Association (“Fannie Mae”) at March 31, 2021 and December 31, 2020 were $502.8 million and $481.6 million, respectively. The unpaid principal balance of loans serviced for other financial institutions at March 31, 2021 and December 31, 2020, totaled $7.0 million and $7.1 million, respectively. Loans serviced for others are not included in the Company’s financial statements as they are not assets of the Company. A summary of the change in the balance of mortgage servicing assets during the periods indicated were as follows (in thousands): Three Months Ended March 31, 2021 2020 Beginning balance, at fair value $ 3,780 $ 3,239 Servicing rights that result from transfers and sale of financial assets 603 119 Changes in fair value: Due to changes in model inputs or assumptions and other (1) (274) (362) Ending balance, at fair value $ 4,109 $ 2,996 (1) Represents changes due to collection/realization of expected cash flows and curtailments. The key economic assumptions used in determining the fair value of mortgage servicing rights at the dates indicated are as follows: March 31, 2021 December 31, 2020 Prepayment speed (Public Securities Association “PSA” model) 224 % 247 % Weighted-average life 5.5 years 5.2 years Discount rate 12.5 % 10.0 % The amount of contractually specified servicing, late and ancillary fees earned on the mortgage servicing rights are included in mortgage servicing income on the Condensed Consolidated Statements of Income and totaled $312,000 and $244,000 for the three months ended March 31, 2021 and 2020 respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesIn the normal course of operations, the Company engages in a variety of financial transactions that are not recorded in our financial statements. These transactions involve varying degrees of off-balance sheet credit, interest rate and liquidity risks. These transactions are used primarily to manage clients’ requests for funding and take the form of loan commitments and lines of credit. |
Borrowings, FHLB Stock and Subo
Borrowings, FHLB Stock and Subordinated Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings, FHLB Stock and Subordinated Debt | Borrowings, FHLB Stock and Subordinated Debt The Company utilizes a loan agreement with the FHLB of Des Moines. The terms of the agreement call for a blanket pledge of a portion of the Company’s mortgage and commercial and multifamily loan portfolio based on the outstanding balance. At March 31, 2021 and December 31, 2020, the amount available to borrow under this credit facility was $387.7 million and $390.5 million, respectively, subject to eligible pledged collateral. At March 31, 2021, the credit facility was collateralized as follows: one-to-four family mortgage loans with an advance equivalent of $97.9 million, commercial and multifamily mortgage loans with an advance equivalent of $126.2 million and home equity loans with an advance equivalent of $2.4 million. At December 31, 2020, the credit facility was collateralized as follows: one-to-four family mortgage loans with an advance equivalent of $103.6 million, commercial and multifamily mortgage loans with an advance equivalent of $128.9 million and home equity loans with an advance equivalent of $2.8 million. The Company had no outstanding borrowings under this arrangement at both March 31, 2021 and December 31, 2020. The weighted-average interest rate of the Company’s borrowings under this agreement was zero at March 31, 2021 and 3.10% at December 31, 2020. Additionally, the Company had outstanding letters of credit from the FHLB of Des Moines with a notional amount of $21.6 million at both March 31, 2021 and December 31, 2020, to secure public deposits. The remaining amount available to borrow as of March 31, 2021 and December 31, 2020, was $204.8 million and $213.7 million, respectively. As a member of the FHLB, the Company is required to maintain a minimum level of investment in FHLB of Des Moines stock based on specific percentages of its outstanding FHLB advances. At March 31, 2021 and December 31, 2020, the Company had an investment of $1.1 million and $877,000, respectively in FHLB of Des Moines stock. The Company participates in the Federal Reserve Bank Borrower-in-Custody program, which gives the Company access to the discount window and the Paycheck Protection Program Liquidity Facility (“PPPLF”). The terms of both programs call for a pledge of specific assets. The Company pledges commercial and consumer loans as collateral for this borrower-in-custody line of credit and PPP loans for the PPPLF. The Company had unused borrowing capacity of $23.7 million and $23.6 million and no outstanding borrowings under these programs at both March 31, 2021 and December 31, 2020. The Company has access to an unsecured Fed Funds line of credit from Pacific Coast Banker’s Bank. The line has a one year term maturing on June 30, 2021 and is renewable annually. As of March 31, 2021, the amount available under this line of credit was $10.0 million. There was no balance on this line of credit as of March 31, 2021 and December 31, 2020, respectively. The Company has access to an unsecured Fed Funds line of credit from The Independent Bank. As of March 31, 2021, 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 both March 31, 2021 and December 31, 2020. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share is computed by dividing net income available to common shareholders 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 containing non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share. Diluted earnings per common share reflect 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. The following table summarizes the calculation of earnings per share for the periods indicated (in thousands, except per share data): Three Months Ended March 31, 2021 2020 Net income available to common shareholders $ 2,451 $ 981 Weighted-average number of shares outstanding, basic 2,572 2,543 Effect of potentially dilutive common shares 39 45 Weighted-average number of shares outstanding, diluted 2,611 2,588 Earnings per share, basic $ 0.95 $ 0.38 Earnings per share, diluted $ 0.93 $ 0.38 There were 2,793 anti-dilutive securities at March 31, 2021 and 6,809 anti-dilutive securities at March 31, 2020. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation Stock Options and Restricted Stock The Company currently has one active shareholder approved Equity Incentive Plan, the Amended and Restated 2013 Equity Incentive Plan (the "2013 Plan"). The 2013 Plan permits the grant of restricted stock, restricted stock units, stock options, and stock appreciation rights. The equity incentive plan approved by stockholders in 2008 (the"2008 Plan") expired in November 2018 and no further awards may be made under the 2008 Plan; provided, however, all awards outstanding under the 2008 Plan remain outstanding in accordance with their terms. Under the 2013 Plan, 181,750 shares of common stock were approved for awards for stock options and stock appreciation rights and 116,700 shares of common stock were approved for awards for restricted stock and restricted stock units. As of March 31, 2021, on an adjusted basis, awards for stock options totaling 272,124 shares and awards for restricted stock totaling 142,621 shares of Company common stock have been granted, net of any forfeitures, to participants in the 2013 Plan and the 2008 Plan. Share-based compensation expense was $166,000 and $185,000 for the three months ended March 31, 2021 and March 31, 2020, respectively. Stock Option Awards All stock option awards granted under the 2008 Plan vest in 20 percent annual increments commencing one year from the grant date in accordance with the requirements of the 2008 Plan. The stock option awards granted to date under the 2013 Plan provide for immediate vesting of a portion of the award with the balance of the award vesting on the anniversary date of each grant date in equal annual installments over periods of one Company. All of the options granted under the 2008 Plan and the 2013 Plan 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 award activity during the three months ended March 31, 2021: Shares Weighted- Weighted-Average Aggregate Outstanding at January 1, 2021 100,979 $ 22.00 4.71 $ 1,045,041 Granted 12,248 32.46 Exercised (11,550) 18.28 Forfeited (920) 35.30 Expired (70) 34.29 Outstanding at March 31, 2021 100,687 23.57 5.21 1,818,387 Exercisable 81,944 21.26 4.33 1,669,256 Expected to vest, assuming a 0% forfeiture rate over the vesting term 18,743 $ 33.67 9.07 $ 149,131 As of March 31, 2021, there was $113,000 of total unrecognized compensation cost related to non-vested stock options granted under the Plans. The cost is expected to be recognized over the remaining weighted-average vesting period of approximately 3.03 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 for the three months ended March 31, 2021 were determined using the following weighted-average assumptions as of the grant date. March 31, 2021 Annual dividend yield 1.60 % Expected volatility 21.67 % Risk-free interest rate 0.60 % Expected term 6.50 years Weighted-average grant date fair value per option granted $ 5.64 Restricted Stock Awards The fair value of the restricted stock awards is equal to the fair value of the Company's stock at the date of grant. Compensation expense is recognized over the vesting period that the awards are based. The restricted stock awards granted under the 2008 Plan vest in 20% 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 a portion of the award with the balance of the award vesting on the anniversary date of each of the grant date in equal annual installments over periods of one The following is a summary of the Company’s non-vested restricted stock award activity during the period indicated: Shares Weighted-Average Aggregate Intrinsic Value Per Share Non-Vested at January 1, 2021 17,114 $ 35.03 Granted 10,168 32.46 Vested (7,762) 33.99 Forfeited (1,470) 35.36 Non-Vested at March 31, 2021 18,050 $ 34.00 $ 41.63 Expected to vest assuming a 0% forfeiture rate over the vesting term 18,050 $ 34.00 $ 41.63 As of March 31, 2021, there was $576,000 of unrecognized compensation cost related to non-vested restricted stock granted under the Plans. The cost is expected to be recognized over the weighted-average vesting period of 2.90 years. The total fair value of shares vested for the three months ended March 31, 2021 and 2020 was $264,000 and $236,000, respectively. Employee Stock Ownership Plan In January 2008, the ESOP borrowed $1.2 million from the Company to purchase common stock of the Company which was paid in full in 2017. 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 loan 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 March 31, 2021, the remaining balance of the ESOP loan was $123,000. Neither the loan balance nor the related interest expense is reflected on the condensed consolidated financial statements. At March 31, 2021, the ESOP held and is committed to release 11,340 shares of the Company’s common stock to participants during 2021. The fair value of the 149,182 shares held by the ESOP trust was $6.2 million at March 31, 2021. ESOP compensation expense included in salaries and benefits was $170,000 and $174,000 for the three months ended March 31, 2021 and March 31, 2020, respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | LeasesWe have operating leases for branch locations, a loan production office, our corporate office and in the past, for certain equipment. The lease term for our leases begins on the date we become legally obligated for the rent payments or we take possession of the building, whichever is earlier. Generally, our real estate leases have initial terms of three The following table presents the lease right-of-use assets and lease liabilities recorded on the condensed consolidated balance sheet at the dates indicated (in thousands): March 31, 2021 December 31, 2020 Operating lease right-of-use assets $ 6,475 $ 6,722 Operating lease liabilities $ 6,894 $ 7,134 The following table presents the components of lease expense for the periods indicated (in thousands): Three Months Ended March 31, 2021 2020 Operating lease expense Office leases $ 273 $ 307 Equipment leases — 5 Sublease income (3) (3) Net lease expense $ 270 $ 309 The following table presents the maturity of lease liabilities at the date indicated: March 31, 2021 Office Leases Operating Lease Commitments Remainder of 2021 $ 784 2022 1,016 2023 989 2024 968 2025 885 Thereafter 3,012 Total lease payments 7,654 Less: Present value discount 760 Present value of lease liabilities $ 6,894 Lease term and discount rate by lease type consist of the following at the dates indicated: March 31, 2021 March 31, 2020 Weighted-average remaining lease term: Office leases 7.67 years 8.53 years Equipment leases — 0.17 years Weighted-average discount rate (annualized): Office leases 2.66 % 2.65 % Equipment leases — % 1.62 % Supplemental cash flow information related to leases was as follows for the periods indicated (in thousands): Three Months Ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities for operating leases: Operating cash flows Office leases $ 258 $ 291 Equipment leases $ — $ 5 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Events On April 27, 2021, the Board of Directors of the Company declared a quarterly cash dividend of $0.17 per common share, payable on May 24, 2021 to stockholders of record at the close of business on May 10, 2021. On April 28, 2021, the Board of Directors adopted a new stock repurchase program to be effective on April 29, 2021, immediately following the expiration of the Company’s current stock repurchase program. Under this new repurchase program, the Company may repurchase its outstanding shares in the open market in an amount up to $2.0 million, based on prevailing market prices, or in privately negotiated transactions, over a period beginning on April 29, 2021, continuing until the earlier of the completion of the repurchase or the next six months, depending upon market conditions. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying financial information is unaudited and has been prepared from the consolidated financial statements of Sound Financial Bancorp, Inc., and its wholly owned subsidiaries, Sound Community Bank and Sound Community Insurance Agency, Inc. References in this document to Sound Financial Bancorp refer to Sound Financial Bancorp, Inc. and references to the “Bank” refer to Sound Community Bank. References to “we,” “us,” and “our” or the “Company” refers to Sound Financial Bancorp and its wholly-owned subsidiaries, Sound Community Bank and Sound Community Insurance Agency, Inc., unless the context otherwise requires. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. These unaudited financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC on March 30, 2021 (“2020 Form 10-K”). The results for the interim periods are not necessarily indicative of results for a full year. Certain amounts in the prior period’s consolidated financial statements have been reclassified to conform to the current presentation. These classifications do not have an impact on previously reported consolidated net income, stockholders’ equity or earnings per share. |
Accounting Pronouncements Recently Issued or Adopted | Accounting Pronouncements Recently Issued or Adopted The Coronavirus Aid, Relief and Economic Security Act ("CARES Act"), signed into law on March 27, 2020, provides relief from certain accounting and financial reporting requirements under U.S. GAAP. Section 4013 of the CARES Act provides temporary relief from the accounting and reporting requirements for troubled debt restructurings (“TDRs”) under Accounting Standards Codification ("ASC") 310-40 for loan modifications related to the novel coronavirus disease 2019 ("COVID-19") pandemic. In addition, on April 7, 2020, a group of banking agencies issued an interagency statement (“Interagency Statement”) for evaluating whether loan modifications that occur in response to the COVID-19 pandemic are TDRs. The Interagency Statement was originally issued on March 22, 2020, but the banking agencies revised it to address the relationship between their TDR accounting and disclosure guidance and the TDR guidance in Section 4013 of the CARES Act. Section 4013 of the CARES Act permits the suspension of ASC 310-40 for loan modifications that are made by financial institutions in response to the COVID-19 pandemic if (1) the borrower was not more than 30 days past due as of December 31, 2019, and (2) the modifications are related to arrangements that defer or delay the payment of principal or interest, or change the interest rate on the loan. The Interagency Statement indicates that a lender can conclude that a borrower is not experiencing financial difficulty if either (1) short-term (e.g., six months) modifications are made in response to COVID-19, such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant related to loans in which the borrower is less than 30 days past due on its contractual payments at the time a modification program is implemented, or (2) the modification or deferral program is mandated by the federal government or a state government. Accordingly, any loan modification made in response to the COVID-19 pandemic that meets either of these practical expedients would not be considered a TDR. The Company adopted this guidance effective March 27, 2020. On December 27, 2020, the Consolidated Appropriations Act 2021 (“CAA 2021”) was signed into law. Among other purposes, CAA 2021 provides coronavirus emergency response and relief, including extending relief offered under the CARES Act related to restructured loans as a result of COVID-19 through January 1, 2022 or 60 days after the end of the national emergency declared by the President, whichever is earlier. In October 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-08, “ Receivables – Nonrefundable Fees and Other Costs ” (“ASU 2020-08”). ASU 2020-08 clarifies that the Company should reevaluate whether a callable debt security is within the scope of paragraph 310-20-35-33 for each reporting period. ASU 2020-08 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The adoption of ASU 2018-13 did not have a material impact on the Company's consolidated financial statements. On March 2020, the FASB issued ASU No. 2020-04, " Reference Rate Reform" ("Topic 848"). This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this update apply to contract modifications that replace a reference rate affected by reference rate reform (including rates referenced in fallback provisions) and contemporaneous modifications of other contract terms related to the replacement of the reference rate (including contract modifications to add or change fallback provisions). The following optional expedients for applying the requirements of certain Topics or Industry Subtopics in the Codification are permitted for contracts that are modified because of reference rate reform and that meet certain scope guidance: 1) Modifications of contracts within the scope of Topics 310, Receivables, and 470, Debt, should be accounted for by prospectively adjusting the effective interest rate; 2) Modifications of contracts within the scope of Topics 840, Leases, and 842, Leases, should be accounted for as a continuation of the existing contracts with no reassessments of the lease classification and the discount rate (for example, the incremental borrowing rate) or remeasurements of lease payments that otherwise would be required under those Topics for modifications not accounted for as separate contracts; and 3) Modifications of contracts do not require an entity to reassess its original conclusion about whether that contract contains an embedded derivative that is clearly and closely related to the economic characteristics and risks of the host contract under Subtopic 815-15, Derivatives and Hedging— Embedded Derivatives. In January 2021, ASU 2021-01 updated amendments in the new ASU to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification. The amendments in this ASU have differing effective dates, beginning with interim period including and subsequent to March 12, 2020 through December 31, 2022. The Company does not expect the adoption of ASU 2020-04 to have a material impact on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU simplifies the accounting for income taxes by removing the exception to the incremental approach for intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items, removing the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, and removing the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The adoption of ASU 2019-12 did not have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. This ASU modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Disclosure requirements removed from FASB Subtopic 715-20 include the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, the amount and timing of plan assets expected to be returned to the employer, related party disclosures about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan, and, for public entities, the effects of a one-percentage-point change in assumed health care cost trend rates on the aggregate of the service and interest cost components of net periodic benefit costs and benefit obligation for postretirement health care benefits. Disclosure requirements added to FASB Subtopic 715-20 include the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates, and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This ASU is effective for fiscal years ending after December 15, 2020. The adoption of ASU No. 2018-14 did not 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 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 new guidance may result in an increase in the allowance for loan losses; however, the Company is still in the process of determining the magnitude of the change and its impact on the Company's consolidated financial statements. The FASB issued ASU No. 2019-10, Financial Instruments - Credit Losses (Topic 326) |
Fair Value Measurements | The Company determines the fair values of its financial instruments based on the requirements established in ASC 820 , Fair Value Measurements (“ASC 820”), which provides a framework for measuring fair value in accordance with U.S. GAAP and requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 defines fair values for financial instruments as the exit price, the price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date under current market conditions. The Company’s fair values for financial instruments at March 31, 2021 were determined based on these requirements. The following methods and assumptions were used to estimate the fair value of other financial instruments: Cash and cash equivalents - The estimated fair value is equal to the carrying amount. Available-for-Sale Securities – Available-for-sale securities are recorded at fair value based on quoted market prices, if available. If quoted market prices are not available, management utilizes third-party pricing services or broker quotations from dealers in the specific instruments. Level 2 securities include those traded on an active exchange, as well as U.S. government securities. Loans Held-for-Sale - Residential mortgage loans held-for-sale are recorded at the lower of cost or fair value. The fair value of fixed-rate residential loans is based on whole loan forward prices obtained from government sponsored enterprises. At March 31, 2021 and December 31, 2020, loans held-for-sale were carried at cost, as no impairment was required. Loans Held-for-Portfolio - The estimated fair value of loans-held-for portfolio consists of a credit adjustment to reflect the estimated adjustment to the carrying value of the loans due to credit-related factors and a yield adjustment, to reflect the estimated adjustment to the carrying value of the loans due to a differential in yield between the portfolio loan yields and estimated current market rate yields on loans with similar characteristics. The estimated fair values of loans held for portfolio reflect exit price assumptions. The liquidity premium/discounts are part of the valuation for exit pricing. Mortgage Servicing Rights –The fair value of mortgage servicing rights is determined through a discounted cash flow analysis, which uses interest rates, prepayment speeds, discount rates, and delinquency rate assumptions as inputs. FHLB stock - The estimated fair value is equal to the par value of the stock. Non-maturity deposits - The estimated fair value is equal to the carrying amount. Time deposits - The estimated fair value of time deposits is based on the difference between interest costs paid on the Company’s time deposits and current market rates for time deposits with comparable characteristics. Borrowings - The fair value of borrowings are estimated using the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Subordinated Debt - The fair value of subordinated debt is estimated using discounted cash flows based on current lending rates for similar long-term debt instruments with similar terms and remaining time to maturity. A description of the valuation methodologies used for impaired loans and OREO is as follows: Impaired Loans - The fair value of collateral dependent loans is based on the current appraised value of the collateral less estimated costs to sell, or internally developed models utilizing a calculation of expected discounted cash flows which contain management’s assumptions. OREO and Repossessed Assets – The fair value of OREO and repossessed assets is based on the current appraised value of the collateral less estimated costs to sell. Off-balance sheet financial instruments - The fair value for the Company’s off-balance sheet loan commitments are estimated based on fees charged to others to enter into similar agreements taking into account the remaining terms of the agreements and credit standing of the Company’s clients. The estimated fair value of these commitments is not significant. In certain cases, the inputs used to measure fair value may fall into different levels of the hierarchy. In such cases, the lowest level of inputs that is significant to the measurement is used to determine the hierarchy for the entire asset or liability. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments [Abstract] | |
Amortized Cost and Fair Value of AFS Securities and Corresponding Amounts of Gross Unrealized Gains and Losses | The amortized cost and fair value of our available-for-sale (“AFS”) securities and the corresponding amounts of gross unrealized gains and losses at the dates indicated were as follows (in thousands): Amortized Gross Gross Estimated March 31, 2021 Municipal bonds $ 5,192 $ 187 $ (20) $ 5,359 Agency mortgage-backed securities 3,642 90 (13) 3,719 Total $ 8,834 $ 277 $ (33) $ 9,078 December 31, 2020 Municipal bonds $ 5,209 $ 204 $ — $ 5,413 Agency mortgage-backed securities 4,706 105 (6) 4,805 Total $ 9,915 $ 309 $ (6) $ 10,218 |
Amortized Cost and Fair Value of Investments Available-for-Sale by Contractual Maturity | The amortized cost and fair value of AFS securities at March 31, 2021, 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. March 31, 2021 Amortized Fair Due within one year $ 1,182 $ 1,188 Due after one year through five years 260 271 Due after five years through ten years 458 499 Due after ten years 3,292 3,401 Mortgage-backed securities 3,642 3,719 Total $ 8,834 $ 9,078 |
Aggregate Fair Value and Gross Unrealized Loss in Continuous Unrealized Loss Position | The following table summarizes 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 the dates indicated (in thousands): March 31, 2021 Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Municipal bonds $ 2,076 $ (20) $ — $ — $ 2,076 $ (20) Agency mortgage-backed securities 552 (13) — — 552 (13) Total $ 2,628 $ (33) $ — $ — $ 2,628 $ (33) December 31, 2020 Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Agency mortgage-backed securities $ 1,618 $ (6) $ — $ — $ 1,618 $ (6) Total $ 1,618 $ (6) $ — $ — $ 1,618 $ (6) |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Composition of Loans | The composition of the loans-held-for portfolio at the dates indicated, excluding loans held-for-sale, was as follows (in thousands): March 31, December 31, Real estate loans: One-to-four family $ 129,995 $ 130,657 Home equity 13,763 16,265 Commercial and multifamily 251,459 265,774 Construction and land 63,112 62,752 Total real estate loans 458,329 475,448 Consumer loans: Manufactured homes 20,781 20,941 Floating homes 39,868 39,868 Other consumer 14,942 15,024 Total consumer loans 75,591 75,833 Commercial business loans 83,669 64,217 Total loans held-for-portfolio 617,589 615,498 Deferred fees, net (3,212) (2,135) Total loans held-for-portfolio, gross 614,377 613,363 Allowance for loan losses (5,935) (6,000) Total loans held-for-portfolio, net $ 608,442 $ 607,363 |
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method | The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of the dates indicated (in thousands): March 31, 2021 Allowance: Individually evaluated for impairment Allowance: Collectively evaluated for impairment Allowance: Loans held for investment: Individually evaluated for impairment Loans held for investment: Collectively evaluated for impairment Loans held for investment: One-to-four family $ 126 $ 854 $ 980 $ 3,418 $ 126,577 $ 129,995 Home equity 14 97 111 286 13,477 13,763 Commercial and multifamily — 2,109 2,109 353 251,106 251,459 Construction and land 5 590 595 76 63,036 63,112 Manufactured homes 160 211 371 257 20,524 20,781 Floating homes — 291 291 514 39,354 39,868 Other consumer 29 158 187 113 14,829 14,942 Commercial business — 720 720 613 83,056 83,669 Unallocated — 571 571 — — — Total $ 334 $ 5,601 $ 5,935 $ 5,630 $ 611,959 $ 617,589 December 31, 2020 Allowance: Individually evaluated for impairment Allowance: Collectively evaluated for impairment Allowance: Loans held for investment: Individually evaluated for impairment Loans held for investment: Collectively evaluated for impairment Loans held for investment: One-to-four family $ 165 $ 898 $ 1,063 $ 3,705 $ 126,952 $ 130,657 Home equity 14 133 147 293 15,972 16,265 Commercial and multifamily — 2,370 2,370 353 265,421 265,774 Construction and land 6 572 578 77 62,675 62,752 Manufactured homes 163 366 529 265 20,676 20,941 Floating homes — 328 328 518 39,350 39,868 Other consumer 30 258 288 114 14,910 15,024 Commercial business — 291 291 615 63,602 64,217 Unallocated — 406 406 — — — Total $ 378 $ 5,622 $ 6,000 $ 5,940 $ 609,558 $ 615,498 The following tables summarize the activity in the allowance for loan losses for the periods indicated (in thousands): Three Months Ended March 31, 2021 Beginning Charge-offs Recoveries Provision (Recapture) Ending One-to-four family $ 1,063 $ (62) $ — $ (21) $ 980 Home equity 147 — — (36) 111 Commercial and multifamily 2,370 — — (261) 2,109 Construction and land 578 — — 17 595 Manufactured homes 529 — 1 (159) 371 Floating homes 328 — — (37) 291 Other consumer 288 (9) 3 (95) 187 Commercial business 291 — 2 427 720 Unallocated 406 — — 165 571 Total $ 6,000 $ (71) $ 6 $ — $ 5,935 Three Months Ended March 31, 2020 Beginning Charge-offs Recoveries (Recapture) Provision Ending One-to-four family $ 1,120 $ — $ 4 $ 5 $ 1,129 Home equity 178 — 2 (14) 166 Commercial and multifamily 1,696 — — 222 1,918 Construction and land 492 — — 7 499 Manufactured homes 480 — — 2 482 Floating homes 283 — — 35 318 Other consumer 112 (6) 3 12 121 Commercial business 331 — — 64 395 Unallocated 948 — — (83) 865 Total $ 5,640 $ (6) $ 9 $ 250 $ 5,893 |
Credit Quality Indicators | The following tables present the internally assigned grades as of the dates indicated, by type of loan (in thousands): March 31, 2021 One-to- Home Commercial Construction Manufactured Floating Other Commercial Total Grade: Pass $ 123,661 $ 13,152 $ 208,405 $ 45,293 $ 20,063 $ 38,750 $ 14,917 $ 77,199 $ 541,440 Watch 4,221 178 30,369 13,511 518 604 2 4,392 53,795 Special Mention — — 10,062 3,543 — — — 465 14,070 Substandard 2,113 433 2,623 765 200 514 23 1,613 8,284 Doubtful — — — — — — — — — Loss — — — — — — — — — Total $ 129,995 $ 13,763 $ 251,459 $ 63,112 $ 20,781 $ 39,868 $ 14,942 $ 83,669 $ 617,589 December 31, 2020 One-to- Home Commercial Construction Manufactured Floating Other Commercial Total Grade: Pass $ 113,185 $ 15,556 $ 228,652 $ 44,360 $ 19,606 $ 38,746 $ 15,000 $ 56,743 $ 531,848 Watch 15,142 245 22,945 13,808 1,115 604 — 5,202 59,061 Special Mention — — 10,813 3,939 — — — 310 15,062 Substandard 2,330 464 3,364 645 220 518 24 1,962 9,527 Doubtful — — — — — — — — — Loss — — — — — — — — — Total $ 130,657 $ 16,265 $ 265,774 $ 62,752 $ 20,941 $ 39,868 $ 15,024 $ 64,217 $ 615,498 |
Nonaccrual Loans | The following table presents the recorded investment in nonaccrual loans as of the dates indicated, by type of loan (in thousands): March 31, 2021 December 31, 2020 One-to-four family $ 1,507 $ 1,668 Home equity 151 156 Commercial and multifamily 353 353 Construction and land 40 40 Manufactured homes 146 149 Floating homes 514 518 Total $ 2,711 $ 2,884 |
Aging of Recorded Investment in Past Due Loans | The following tables present the aging of the recorded investment in past due loans as of the dates indicated, by type of loan (in thousands): March 31, 2021 30-59 Days 60-89 Days 90 Days and Greater Past Due > 90 Days and Accruing Total Past Current Total Loans One-to-four family $ 2,120 $ 160 $ 1,353 $ — $ 3,633 $ 126,362 $ 129,995 Home equity 169 191 102 — 462 13,301 13,763 Commercial and multifamily 1,467 — 353 — 1,820 249,639 251,459 Construction and land 1,166 — 40 — 1,206 61,906 63,112 Manufactured homes 133 — 146 — 279 20,502 20,781 Floating homes 46 — 249 — 295 39,573 39,868 Other consumer 1 2 — — 3 14,939 14,942 Commercial business — — — — — 83,669 83,669 Total $ 5,102 $ 353 $ 2,243 $ — $ 7,698 $ 609,891 $ 617,589 December 31, 2020 30-59 Days 60-89 Days 90 Days and Greater Past Due > 90 Days and Accruing Total Past Current Total Loans One-to-four family $ 498 $ 362 $ 1,407 $ — $ 2,267 $ 128,390 $ 130,657 Home equity 102 — 112 — 214 16,051 16,265 Commercial and multifamily — — 353 — 353 265,421 265,774 Construction and land 690 — 40 — 730 62,022 62,752 Manufactured homes 159 74 149 — 382 20,559 20,941 Floating homes — 269 249 — 518 39,350 39,868 Other consumer 15 1 — — 16 15,008 15,024 Commercial business 583 — — — 583 63,634 64,217 Total $ 2,047 $ 706 $ 2,310 $ — $ 5,063 $ 610,435 $ 615,498 |
Credit Risk Profile of Loan Portfolio Based on Payment Activity by Type of Loan | The following tables present the credit risk profile of our loan portfolio based on payment activity as of the dates indicated, by type of loan (in thousands): March 31, 2021 One-to-four Home Commercial Construction Manufactured Floating Other Commercial Total Performing $ 128,488 $ 13,612 $ 251,106 $ 63,072 $ 20,635 $ 39,354 $ 14,942 $ 83,669 $ 614,878 Nonperforming 1,507 151 353 40 146 514 — — 2,711 Total $ 129,995 $ 13,763 $ 251,459 $ 63,112 $ 20,781 $ 39,868 $ 14,942 $ 83,669 $ 617,589 December 31, 2020 One-to-four Home Commercial Construction Manufactured Floating Other Commercial Total Performing $ 128,989 $ 16,109 $ 265,421 $ 62,712 $ 20,792 $ 39,350 $ 15,024 $ 64,217 $ 612,614 Nonperforming 1,668 156 353 40 149 518 — — 2,884 Total $ 130,657 $ 16,265 $ 265,774 $ 62,752 $ 20,941 $ 39,868 $ 15,024 $ 64,217 $ 615,498 |
Impaired Loans, Individually Evaluated | Impaired loans at the dates indicated, by type of loan were as follows (in thousands): March 31, 2021 Recorded Investment Unpaid Principal Without With Total Related One-to-four family $ 3,565 $ 2,516 $ 902 $ 3,418 $ 126 Home equity 375 151 135 286 14 Commercial and multifamily 353 353 — 353 — Construction and land 76 40 36 76 5 Manufactured homes 260 46 211 257 160 Floating homes 514 514 — 514 — Other consumer 112 — 113 113 29 Commercial business 613 613 — 613 — Total $ 5,868 $ 4,233 $ 1,397 $ 5,630 $ 334 December 31, 2020 Recorded Investment Unpaid Principal Without With Total Related One-to-four family $ 3,791 $ 2,392 $ 1,313 $ 3,705 $ 165 Home equity 293 156 137 293 14 Commercial and multifamily 353 353 — 353 — Construction and land 77 40 37 77 6 Manufactured homes 268 47 218 265 163 Floating homes 518 518 — 518 — Other consumer 114 — 114 114 30 Commercial business 615 615 — 615 — Total $ 6,029 $ 4,121 $ 1,819 $ 5,940 $ 378 The following table presents the average recorded investment and interest income recognized on impaired loans for the periods indicated, by loan types (in thousands): Three Months Ended March 31, 2021 2020 Average Interest Income Average Interest Income One-to-four family $ 3,575 $ 29 $ 7,274 $ 72 Home equity 290 5 347 5 Commercial and multifamily 353 — 353 5 Construction and land 76 — 844 14 Manufactured homes 262 5 434 9 Floating homes 516 3 407 8 Other consumer 114 1 141 2 Commercial business 614 5 1,273 23 Total $ 5,800 $ 48 $ 11,073 $ 138 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Information about Level in Fair Value Hierarchy for Financial Instruments | The following tables present information about the level in the fair value hierarchy for the Company’s financial assets and liabilities, whether or not recognized or recorded at fair value as of the dates indicated (in thousands): March 31, 2021 Fair Value Measurements Using: Carrying Estimated Level 1 Level 2 Level 3 FINANCIAL ASSETS: Cash and cash equivalents $ 269,593 $ 269,593 $ 269,593 $ — $ — Available-for-sale securities 9,078 9,078 — 9,078 — Loans held-for-sale 10,713 10,713 — 10,713 — Loans held-for-portfolio, net 608,442 609,134 — — 609,134 Mortgage servicing rights 4,109 4,109 — — 4,109 FHLB stock 1,052 1,052 — 1,052 — FINANCIAL LIABILITIES: Non-maturity deposits 624,941 624,941 — 624,941 — Time deposits 191,752 194,056 — 194,056 — Subordinated notes $ 11,602 $ 11,602 $ — $ 11,602 $ — December 31, 2020 Fair Value Measurements Using: Carrying Estimated Level 1 Level 2 Level 3 FINANCIAL ASSETS: Cash and cash equivalents $ 193,828 $ 193,828 $ 193,828 $ — $ — Available-for-sale securities 10,218 10,218 — 10,218 — Loans held-for-sale 11,604 11,604 — 11,604 — Loans held-for-portfolio, net 607,363 608,575 — — 608,575 Mortgage servicing rights 3,780 3,780 — — 3,780 FHLB stock 877 877 — 877 — FINANCIAL LIABILITIES: Non-maturity deposits 512,507 512,507 — 512,507 — Time deposits 235,474 238,629 — 238,629 — Subordinated notes 11,592 11,592 — 11,592 — |
Schedule of Fair Value Measured on Recurring Basis | The following tables present the balance of assets measured at fair value on a recurring basis as of the dates indicated (in thousands): Fair Value at March 31, 2021 Description Total Level 1 Level 2 Level 3 Municipal bonds 5,359 — 5,359 — Agency mortgage-backed securities 3,719 — 3,719 — Mortgage servicing rights 4,109 — — 4,109 Fair Value at December 31, 2020 Description Total Level 1 Level 2 Level 3 Municipal bonds $ 5,413 $ — $ 5,413 $ — Agency mortgage-backed securities 4,805 — 4,805 — Mortgage servicing rights 3,780 — — 3,780 |
Quantitative Information | The following tables provide 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 as of the dates indicated: March 31, 2021 Financial Instrument Valuation Technique Unobservable Input(s) Range Mortgage Servicing Rights Discounted cash flow Prepayment speed assumption 202%-392% (224%) Discount rate 12.5%-13.5% (12.5%) December 31, 2020 Financial Instrument Valuation Technique Unobservable Input(s) Range Mortgage Servicing Rights Discounted cash flow Prepayment speed assumption 178%-276% (247%) Discount rate 10.0%-12.0% (10.0%) The following tables provide 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 the dates indicated: March 31, 2021 Financial Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) OREO Market approach Adjustment for differences 0-0% (0%) Impaired loans Market approach Adjustment for differences 0-100% (6%) December 31, 2020 Financial Valuation Technique(s) Unobservable Input(s) Range OREO Market approach Adjusted for difference 0-0% (0%) Impaired loans Market approach Adjusted for difference 0-100% (6%) |
Schedule of Fair Value Measured on Nonrecurring Basis | The following tables present the balance of assets measured at fair value on a nonrecurring basis at the dates indicated (in thousands): Fair Value at March 31, 2021 Total Level 1 Level 2 Level 3 OREO and repossessed assets $ 575 $ — $ — $ 575 Impaired loans 5,630 — — 5,630 Fair Value at December 31, 2020 Total Level 1 Level 2 Level 3 OREO and repossessed assets $ 594 $ — $ — $ 594 Impaired loans 5,940 — — 5,940 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Transfers and Servicing [Abstract] | |
Summary of Change in Balance of Mortgage Servicing Assets | A summary of the change in the balance of mortgage servicing assets during the periods indicated were as follows (in thousands): Three Months Ended March 31, 2021 2020 Beginning balance, at fair value $ 3,780 $ 3,239 Servicing rights that result from transfers and sale of financial assets 603 119 Changes in fair value: Due to changes in model inputs or assumptions and other (1) (274) (362) Ending balance, at fair value $ 4,109 $ 2,996 (1) Represents changes due to collection/realization of expected cash flows and curtailments. |
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: March 31, 2021 December 31, 2020 Prepayment speed (Public Securities Association “PSA” model) 224 % 247 % Weighted-average life 5.5 years 5.2 years Discount rate 12.5 % 10.0 % |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | The following table summarizes the calculation of earnings per share for the periods indicated (in thousands, except per share data): Three Months Ended March 31, 2021 2020 Net income available to common shareholders $ 2,451 $ 981 Weighted-average number of shares outstanding, basic 2,572 2,543 Effect of potentially dilutive common shares 39 45 Weighted-average number of shares outstanding, diluted 2,611 2,588 Earnings per share, basic $ 0.95 $ 0.38 Earnings per share, diluted $ 0.93 $ 0.38 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Option Plan Award Activity | The following is a summary of the Company’s stock option award activity during the three months ended March 31, 2021: Shares Weighted- Weighted-Average Aggregate Outstanding at January 1, 2021 100,979 $ 22.00 4.71 $ 1,045,041 Granted 12,248 32.46 Exercised (11,550) 18.28 Forfeited (920) 35.30 Expired (70) 34.29 Outstanding at March 31, 2021 100,687 23.57 5.21 1,818,387 Exercisable 81,944 21.26 4.33 1,669,256 Expected to vest, assuming a 0% forfeiture rate over the vesting term 18,743 $ 33.67 9.07 $ 149,131 |
Weighted-Average Assumptions Used in Determining Fair Value of Options Granted | The fair value of options granted for the three months ended March 31, 2021 were determined using the following weighted-average assumptions as of the grant date. March 31, 2021 Annual dividend yield 1.60 % Expected volatility 21.67 % Risk-free interest rate 0.60 % Expected term 6.50 years Weighted-average grant date fair value per option granted $ 5.64 |
Restricted Stock Award Activity | The following is a summary of the Company’s non-vested restricted stock award activity during the period indicated: Shares Weighted-Average Aggregate Intrinsic Value Per Share Non-Vested at January 1, 2021 17,114 $ 35.03 Granted 10,168 32.46 Vested (7,762) 33.99 Forfeited (1,470) 35.36 Non-Vested at March 31, 2021 18,050 $ 34.00 $ 41.63 Expected to vest assuming a 0% forfeiture rate over the vesting term 18,050 $ 34.00 $ 41.63 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Summary of Balance Sheet Information Related to Leases | The following table presents the lease right-of-use assets and lease liabilities recorded on the condensed consolidated balance sheet at the dates indicated (in thousands): March 31, 2021 December 31, 2020 Operating lease right-of-use assets $ 6,475 $ 6,722 Operating lease liabilities $ 6,894 $ 7,134 |
Summary of Components of the Leases and Supplemental Cash Flow Information | The following table presents the components of lease expense for the periods indicated (in thousands): Three Months Ended March 31, 2021 2020 Operating lease expense Office leases $ 273 $ 307 Equipment leases — 5 Sublease income (3) (3) Net lease expense $ 270 $ 309 Lease term and discount rate by lease type consist of the following at the dates indicated: March 31, 2021 March 31, 2020 Weighted-average remaining lease term: Office leases 7.67 years 8.53 years Equipment leases — 0.17 years Weighted-average discount rate (annualized): Office leases 2.66 % 2.65 % Equipment leases — % 1.62 % Supplemental cash flow information related to leases was as follows for the periods indicated (in thousands): Three Months Ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities for operating leases: Operating cash flows Office leases $ 258 $ 291 Equipment leases $ — $ 5 |
Schedule of Lease Liability Maturities | The following table presents the maturity of lease liabilities at the date indicated: March 31, 2021 Office Leases Operating Lease Commitments Remainder of 2021 $ 784 2022 1,016 2023 989 2024 968 2025 885 Thereafter 3,012 Total lease payments 7,654 Less: Present value discount 760 Present value of lease liabilities $ 6,894 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of AFS Securities and Corresponding Amounts of Gross Unrealized Gains And Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Amortized cost and fair value of available-for-sale securities and gross unrealized gains and losses [Abstract] | ||
Amortized Cost | $ 8,834 | $ 9,915 |
Gross Unrealized Gains | 277 | 309 |
Gross Unrealized Losses | (33) | (6) |
Estimated Fair Value | 9,078 | 10,218 |
Municipal bonds | ||
Amortized cost and fair value of available-for-sale securities and gross unrealized gains and losses [Abstract] | ||
Amortized Cost | 5,192 | 5,209 |
Gross Unrealized Gains | 187 | 204 |
Gross Unrealized Losses | (20) | 0 |
Estimated Fair Value | 5,359 | 5,413 |
Agency mortgage-backed securities | ||
Amortized cost and fair value of available-for-sale securities and gross unrealized gains and losses [Abstract] | ||
Amortized Cost | 3,642 | 4,706 |
Gross Unrealized Gains | 90 | 105 |
Gross Unrealized Losses | (13) | (6) |
Estimated Fair Value | $ 3,719 | $ 4,805 |
Investments - Amortized Cost _2
Investments - Amortized Cost and Fair Value of Investments Available-for-Sale by Contractual Maturity (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Amortized Cost | |||
Due within one year | $ 1,182,000 | ||
Due after one year through five years | 260,000 | ||
Due after five years through ten years | 458,000 | ||
Due after ten years | 3,292,000 | ||
Mortgage-backed securities | 3,642,000 | ||
Amortized Cost | 8,834,000 | $ 9,915,000 | |
Fair Value | |||
Due within one year | 1,188,000 | ||
Due after one year through five years | 271,000 | ||
Due after five years through ten years | 499,000 | ||
Due after ten years | 3,401,000 | ||
Mortgage-backed securities | 3,719,000 | ||
Estimated Fair Value | 9,078,000 | 10,218,000 | |
Pledged securities | 0 | $ 0 | |
Sales of available for sale securities | $ 0 | $ 0 |
Investments - Aggregate Fair Va
Investments - Aggregate Fair Value and Gross Unrealized Loss in Continuous Unrealized Loss Position (Details) | Mar. 31, 2021USD ($)security | Dec. 31, 2020USD ($)security | Mar. 31, 2020USD ($) |
Fair Value | |||
Less Than 12 Months | $ 2,628,000 | $ 1,618,000 | |
12 Months or Longer | 0 | 0 | |
Total | 2,628,000 | 1,618,000 | |
Unrealized Loss | |||
Less Than 12 Months | (33,000) | (6,000) | |
12 Months or Longer | 0 | 0 | |
Total | (33,000) | (6,000) | |
Credit losses recognized in earnings | 0 | $ 0 | |
Available-for-sale securities | $ 9,078,000 | $ 10,218,000 | |
Number of securities in unrealized loss position for less than 12 months | security | 5 | 6 | |
Number of securities in unrealized loss position for more than 12 months | security | 0 | 0 | |
Municipal bonds | |||
Fair Value | |||
Less Than 12 Months | $ 2,076,000 | ||
12 Months or Longer | 0 | ||
Total | 2,076,000 | ||
Unrealized Loss | |||
Less Than 12 Months | (20,000) | ||
12 Months or Longer | 0 | ||
Total | $ (20,000) | ||
Number of portfolio securities | security | 10 | 10 | |
Available-for-sale securities | $ 5,359,000 | $ 5,413,000 | |
Agency mortgage-backed securities | |||
Fair Value | |||
Less Than 12 Months | 552,000 | 1,618,000 | |
12 Months or Longer | 0 | 0 | |
Total | 552,000 | 1,618,000 | |
Unrealized Loss | |||
Less Than 12 Months | (13,000) | (6,000) | |
12 Months or Longer | 0 | 0 | |
Total | $ (13,000) | $ (6,000) | |
Number of portfolio securities | security | 12 | 16 | |
Available-for-sale securities | $ 3,719,000 | $ 4,805,000 |
Loans - Composition of Loans (D
Loans - Composition of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held-for-portfolio | $ 617,589 | $ 615,498 | ||
Deferred fees, net | (3,212) | (2,135) | ||
Loans held-for-portfolio | 614,377 | 613,363 | ||
Allowance for loan losses | (5,935) | (6,000) | $ (5,893) | $ (5,640) |
Total loans held-for-portfolio, net | 608,442 | 607,363 | ||
CARES Act, PPP Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount of loans funded | 113,900 | |||
Real estate loans: | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held-for-portfolio | 458,329 | 475,448 | ||
Consumer loans: | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held-for-portfolio | 75,591 | 75,833 | ||
Commercial business loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held-for-portfolio | 83,669 | 64,217 | ||
Allowance for loan losses | (720) | (291) | (395) | (331) |
Commercial business loans | CARES Act, PPP Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held-for-portfolio | 61,200 | |||
Loans held-for-portfolio | 9,100 | |||
One-to-four family | Real estate loans: | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held-for-portfolio | 129,995 | 130,657 | ||
Allowance for loan losses | (980) | (1,063) | (1,129) | (1,120) |
One-to-four family | Real estate loans: | CARES Act, PPP Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-portfolio | 3,600 | |||
Home equity | Real estate loans: | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held-for-portfolio | 13,763 | 16,265 | ||
Allowance for loan losses | (111) | (147) | (166) | (178) |
Commercial and multifamily | Real estate loans: | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held-for-portfolio | 251,459 | 265,774 | ||
Allowance for loan losses | (2,109) | (2,370) | (1,918) | (1,696) |
Construction and land | Real estate loans: | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held-for-portfolio | 63,112 | 62,752 | ||
Allowance for loan losses | (595) | (578) | (499) | (492) |
Manufactured homes | Consumer loans: | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held-for-portfolio | 20,781 | 20,941 | ||
Allowance for loan losses | (371) | (529) | (482) | (480) |
Floating homes | Consumer loans: | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held-for-portfolio | 39,868 | 39,868 | ||
Allowance for loan losses | (291) | (328) | (318) | (283) |
Other consumer | Consumer loans: | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held-for-portfolio | 14,942 | 15,024 | ||
Allowance for loan losses | $ (187) | $ (288) | $ (121) | $ (112) |
Loans - Allowance for Loan Loss
Loans - Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Allowance for loan losses: | ||||
Allowance: Individually evaluated for impairment | $ 334 | $ 378 | ||
Allowance: Collectively evaluated for impairment | 5,601 | 5,622 | ||
Allowance: Ending balance | 5,935 | 6,000 | $ 5,893 | $ 5,640 |
Loans held-for-portfolio: | ||||
Loans held for investment: Individually evaluated for impairment | 5,630 | 5,940 | ||
Loans held for investment: Collectively evaluated for impairment | 611,959 | 609,558 | ||
Loans held for investment: Ending balance | 617,589 | 615,498 | ||
Real estate loans: | ||||
Loans held-for-portfolio: | ||||
Loans held for investment: Ending balance | 458,329 | 475,448 | ||
Consumer loans: | ||||
Loans held-for-portfolio: | ||||
Loans held for investment: Ending balance | 75,591 | 75,833 | ||
Commercial business | ||||
Allowance for loan losses: | ||||
Allowance: Individually evaluated for impairment | 0 | 0 | ||
Allowance: Collectively evaluated for impairment | 720 | 291 | ||
Allowance: Ending balance | 720 | 291 | 395 | 331 |
Loans held-for-portfolio: | ||||
Loans held for investment: Individually evaluated for impairment | 613 | 615 | ||
Loans held for investment: Collectively evaluated for impairment | 83,056 | 63,602 | ||
Loans held for investment: Ending balance | 83,669 | 64,217 | ||
Unallocated | ||||
Allowance for loan losses: | ||||
Allowance: Individually evaluated for impairment | 0 | 0 | ||
Allowance: Collectively evaluated for impairment | 571 | 406 | ||
Allowance: Ending balance | 571 | 406 | 865 | 948 |
Loans held-for-portfolio: | ||||
Loans held for investment: Individually evaluated for impairment | 0 | 0 | ||
Loans held for investment: Collectively evaluated for impairment | 0 | 0 | ||
Loans held for investment: Ending balance | 0 | 0 | ||
One-to-four family | Real estate loans: | ||||
Allowance for loan losses: | ||||
Allowance: Individually evaluated for impairment | 126 | 165 | ||
Allowance: Collectively evaluated for impairment | 854 | 898 | ||
Allowance: Ending balance | 980 | 1,063 | 1,129 | 1,120 |
Loans held-for-portfolio: | ||||
Loans held for investment: Individually evaluated for impairment | 3,418 | 3,705 | ||
Loans held for investment: Collectively evaluated for impairment | 126,577 | 126,952 | ||
Loans held for investment: Ending balance | 129,995 | 130,657 | ||
Home equity | Real estate loans: | ||||
Allowance for loan losses: | ||||
Allowance: Individually evaluated for impairment | 14 | 14 | ||
Allowance: Collectively evaluated for impairment | 97 | 133 | ||
Allowance: Ending balance | 111 | 147 | 166 | 178 |
Loans held-for-portfolio: | ||||
Loans held for investment: Individually evaluated for impairment | 286 | 293 | ||
Loans held for investment: Collectively evaluated for impairment | 13,477 | 15,972 | ||
Loans held for investment: Ending balance | 13,763 | 16,265 | ||
Commercial and multifamily | Real estate loans: | ||||
Allowance for loan losses: | ||||
Allowance: Individually evaluated for impairment | 0 | 0 | ||
Allowance: Collectively evaluated for impairment | 2,109 | 2,370 | ||
Allowance: Ending balance | 2,109 | 2,370 | 1,918 | 1,696 |
Loans held-for-portfolio: | ||||
Loans held for investment: Individually evaluated for impairment | 353 | 353 | ||
Loans held for investment: Collectively evaluated for impairment | 251,106 | 265,421 | ||
Loans held for investment: Ending balance | 251,459 | 265,774 | ||
Construction and land | Real estate loans: | ||||
Allowance for loan losses: | ||||
Allowance: Individually evaluated for impairment | 5 | 6 | ||
Allowance: Collectively evaluated for impairment | 590 | 572 | ||
Allowance: Ending balance | 595 | 578 | 499 | 492 |
Loans held-for-portfolio: | ||||
Loans held for investment: Individually evaluated for impairment | 76 | 77 | ||
Loans held for investment: Collectively evaluated for impairment | 63,036 | 62,675 | ||
Loans held for investment: Ending balance | 63,112 | 62,752 | ||
Manufactured homes | Consumer loans: | ||||
Allowance for loan losses: | ||||
Allowance: Individually evaluated for impairment | 160 | 163 | ||
Allowance: Collectively evaluated for impairment | 211 | 366 | ||
Allowance: Ending balance | 371 | 529 | 482 | 480 |
Loans held-for-portfolio: | ||||
Loans held for investment: Individually evaluated for impairment | 257 | 265 | ||
Loans held for investment: Collectively evaluated for impairment | 20,524 | 20,676 | ||
Loans held for investment: Ending balance | 20,781 | 20,941 | ||
Floating homes | Consumer loans: | ||||
Allowance for loan losses: | ||||
Allowance: Individually evaluated for impairment | 0 | 0 | ||
Allowance: Collectively evaluated for impairment | 291 | 328 | ||
Allowance: Ending balance | 291 | 328 | 318 | 283 |
Loans held-for-portfolio: | ||||
Loans held for investment: Individually evaluated for impairment | 514 | 518 | ||
Loans held for investment: Collectively evaluated for impairment | 39,354 | 39,350 | ||
Loans held for investment: Ending balance | 39,868 | 39,868 | ||
Other consumer | Consumer loans: | ||||
Allowance for loan losses: | ||||
Allowance: Individually evaluated for impairment | 29 | 30 | ||
Allowance: Collectively evaluated for impairment | 158 | 258 | ||
Allowance: Ending balance | 187 | 288 | $ 121 | $ 112 |
Loans held-for-portfolio: | ||||
Loans held for investment: Individually evaluated for impairment | 113 | 114 | ||
Loans held for investment: Collectively evaluated for impairment | 14,829 | 14,910 | ||
Loans held for investment: Ending balance | $ 14,942 | $ 15,024 |
Loans - Activity in Allowance f
Loans - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Allowance | $ 6,000 | $ 5,640 |
Charge-offs | (71) | (6) |
Recoveries | 6 | 9 |
Provision (Recapture) | 0 | 250 |
Ending Allowance | 5,935 | 5,893 |
Commercial business | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Allowance | 291 | 331 |
Charge-offs | 0 | 0 |
Recoveries | 2 | 0 |
Provision (Recapture) | 427 | 64 |
Ending Allowance | 720 | 395 |
Unallocated | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Allowance | 406 | 948 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (Recapture) | 165 | (83) |
Ending Allowance | 571 | 865 |
One-to-four family | Real estate loans: | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Allowance | 1,063 | 1,120 |
Charge-offs | (62) | 0 |
Recoveries | 0 | 4 |
Provision (Recapture) | (21) | 5 |
Ending Allowance | 980 | 1,129 |
Home equity | Real estate loans: | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Allowance | 147 | 178 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 2 |
Provision (Recapture) | (36) | (14) |
Ending Allowance | 111 | 166 |
Commercial and multifamily | Real estate loans: | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Allowance | 2,370 | 1,696 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (Recapture) | (261) | 222 |
Ending Allowance | 2,109 | 1,918 |
Construction and land | Real estate loans: | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Allowance | 578 | 492 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (Recapture) | 17 | 7 |
Ending Allowance | 595 | 499 |
Manufactured homes | Consumer loans: | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Allowance | 529 | 480 |
Charge-offs | 0 | 0 |
Recoveries | 1 | 0 |
Provision (Recapture) | (159) | 2 |
Ending Allowance | 371 | 482 |
Floating homes | Consumer loans: | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Allowance | 328 | 283 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (Recapture) | (37) | 35 |
Ending Allowance | 291 | 318 |
Other consumer | Consumer loans: | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Allowance | 288 | 112 |
Charge-offs | (9) | (6) |
Recoveries | 3 | 3 |
Provision (Recapture) | (95) | 12 |
Ending Allowance | $ 187 | $ 121 |
Loans - Credit Quality Indicato
Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | $ 617,589 | $ 615,498 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 541,440 | 531,848 |
Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 53,795 | 59,061 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 14,070 | 15,062 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 8,284 | 9,527 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
Real estate loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 458,329 | 475,448 |
Consumer loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 75,591 | 75,833 |
Commercial business | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 83,669 | 64,217 |
Commercial business | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 77,199 | 56,743 |
Commercial business | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 4,392 | 5,202 |
Commercial business | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 465 | 310 |
Commercial business | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 1,613 | 1,962 |
Commercial business | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
Commercial business | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
One-to-four family | Real estate loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 129,995 | 130,657 |
One-to-four family | Real estate loans: | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 123,661 | 113,185 |
One-to-four family | Real estate loans: | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 4,221 | 15,142 |
One-to-four family | Real estate loans: | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
One-to-four family | Real estate loans: | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 2,113 | 2,330 |
One-to-four family | Real estate loans: | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
One-to-four family | Real estate loans: | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
Home equity | Real estate loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 13,763 | 16,265 |
Home equity | Real estate loans: | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 13,152 | 15,556 |
Home equity | Real estate loans: | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 178 | 245 |
Home equity | Real estate loans: | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
Home equity | Real estate loans: | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 433 | 464 |
Home equity | Real estate loans: | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
Home equity | Real estate loans: | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
Commercial and multifamily | Real estate loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 251,459 | 265,774 |
Commercial and multifamily | Real estate loans: | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 208,405 | 228,652 |
Commercial and multifamily | Real estate loans: | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 30,369 | 22,945 |
Commercial and multifamily | Real estate loans: | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 10,062 | 10,813 |
Commercial and multifamily | Real estate loans: | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 2,623 | 3,364 |
Commercial and multifamily | Real estate loans: | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
Commercial and multifamily | Real estate loans: | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
Construction and land | Real estate loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 63,112 | 62,752 |
Construction and land | Real estate loans: | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 45,293 | 44,360 |
Construction and land | Real estate loans: | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 13,511 | 13,808 |
Construction and land | Real estate loans: | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 3,543 | 3,939 |
Construction and land | Real estate loans: | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 765 | 645 |
Construction and land | Real estate loans: | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
Construction and land | Real estate loans: | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
Manufactured homes | Consumer loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 20,781 | 20,941 |
Manufactured homes | Consumer loans: | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 20,063 | 19,606 |
Manufactured homes | Consumer loans: | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 518 | 1,115 |
Manufactured homes | Consumer loans: | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
Manufactured homes | Consumer loans: | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 200 | 220 |
Manufactured homes | Consumer loans: | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
Manufactured homes | Consumer loans: | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
Floating homes | Consumer loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 39,868 | 39,868 |
Floating homes | Consumer loans: | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 38,750 | 38,746 |
Floating homes | Consumer loans: | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 604 | 604 |
Floating homes | Consumer loans: | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
Floating homes | Consumer loans: | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 514 | 518 |
Floating homes | Consumer loans: | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
Floating homes | Consumer loans: | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
Other consumer | Consumer loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 14,942 | 15,024 |
Other consumer | Consumer loans: | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 14,917 | 15,000 |
Other consumer | Consumer loans: | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 2 | 0 |
Other consumer | Consumer loans: | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
Other consumer | Consumer loans: | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 23 | 24 |
Other consumer | Consumer loans: | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
Other consumer | Consumer loans: | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | $ 0 | $ 0 |
Loans - Nonaccrual Loans and Ag
Loans - Nonaccrual Loans and Aging of Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Nonaccrual and Past Due Loans [Abstract] | ||
Nonaccrual loans | $ 2,711 | $ 2,884 |
Total Past Due | 7,698 | 5,063 |
90 Days and Accruing | 0 | 0 |
Current | 609,891 | 610,435 |
Loans held for investment: Ending balance | $ 617,589 | 615,498 |
Maximum | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Period past due for loans to be automatically placed on nonaccrual | 90 days | |
30-59 Days Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | $ 5,102 | 2,047 |
60-89 Days Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 353 | 706 |
90 Days and Greater Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 2,243 | 2,310 |
Real estate loans: | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Loans held for investment: Ending balance | 458,329 | 475,448 |
Consumer loans: | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Loans held for investment: Ending balance | 75,591 | 75,833 |
Commercial business | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 0 | 583 |
90 Days and Accruing | 0 | 0 |
Current | 83,669 | 63,634 |
Loans held for investment: Ending balance | 83,669 | 64,217 |
Commercial business | 30-59 Days Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 0 | 583 |
Commercial business | 60-89 Days Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 0 | 0 |
Commercial business | 90 Days and Greater Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 0 | 0 |
One-to-four family | Real estate loans: | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Nonaccrual loans | 1,507 | 1,668 |
Total Past Due | 3,633 | 2,267 |
90 Days and Accruing | 0 | 0 |
Current | 126,362 | 128,390 |
Loans held for investment: Ending balance | 129,995 | 130,657 |
One-to-four family | Real estate loans: | 30-59 Days Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 2,120 | 498 |
One-to-four family | Real estate loans: | 60-89 Days Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 160 | 362 |
One-to-four family | Real estate loans: | 90 Days and Greater Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 1,353 | 1,407 |
Home equity | Real estate loans: | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Nonaccrual loans | 151 | 156 |
Total Past Due | 462 | 214 |
90 Days and Accruing | 0 | 0 |
Current | 13,301 | 16,051 |
Loans held for investment: Ending balance | 13,763 | 16,265 |
Home equity | Real estate loans: | 30-59 Days Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 169 | 102 |
Home equity | Real estate loans: | 60-89 Days Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 191 | 0 |
Home equity | Real estate loans: | 90 Days and Greater Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 102 | 112 |
Commercial and multifamily | Real estate loans: | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Nonaccrual loans | 353 | 353 |
Total Past Due | 1,820 | 353 |
90 Days and Accruing | 0 | 0 |
Current | 249,639 | 265,421 |
Loans held for investment: Ending balance | 251,459 | 265,774 |
Commercial and multifamily | Real estate loans: | 30-59 Days Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 1,467 | 0 |
Commercial and multifamily | Real estate loans: | 60-89 Days Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 0 | 0 |
Commercial and multifamily | Real estate loans: | 90 Days and Greater Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 353 | 353 |
Construction and land | Real estate loans: | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Nonaccrual loans | 40 | 40 |
Total Past Due | 1,206 | 730 |
90 Days and Accruing | 0 | 0 |
Current | 61,906 | 62,022 |
Loans held for investment: Ending balance | 63,112 | 62,752 |
Construction and land | Real estate loans: | 30-59 Days Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 1,166 | 690 |
Construction and land | Real estate loans: | 60-89 Days Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 0 | 0 |
Construction and land | Real estate loans: | 90 Days and Greater Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 40 | 40 |
Manufactured homes | Consumer loans: | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Nonaccrual loans | 146 | 149 |
Total Past Due | 279 | 382 |
90 Days and Accruing | 0 | 0 |
Current | 20,502 | 20,559 |
Loans held for investment: Ending balance | 20,781 | 20,941 |
Manufactured homes | Consumer loans: | 30-59 Days Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 133 | 159 |
Manufactured homes | Consumer loans: | 60-89 Days Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 0 | 74 |
Manufactured homes | Consumer loans: | 90 Days and Greater Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 146 | 149 |
Floating homes | Consumer loans: | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Nonaccrual loans | 514 | 518 |
Total Past Due | 295 | 518 |
90 Days and Accruing | 0 | 0 |
Current | 39,573 | 39,350 |
Loans held for investment: Ending balance | 39,868 | 39,868 |
Floating homes | Consumer loans: | 30-59 Days Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 46 | 0 |
Floating homes | Consumer loans: | 60-89 Days Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 0 | 269 |
Floating homes | Consumer loans: | 90 Days and Greater Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 249 | 249 |
Other consumer | Consumer loans: | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 3 | 16 |
90 Days and Accruing | 0 | 0 |
Current | 14,939 | 15,008 |
Loans held for investment: Ending balance | 14,942 | 15,024 |
Other consumer | Consumer loans: | 30-59 Days Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 1 | 15 |
Other consumer | Consumer loans: | 60-89 Days Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | 2 | 1 |
Other consumer | Consumer loans: | 90 Days and Greater Past Due | ||
Nonaccrual and Past Due Loans [Abstract] | ||
Total Past Due | $ 0 | $ 0 |
Loans - Credit Risk Profile of
Loans - Credit Risk Profile of Loan Portfolio Based on Payment Activity by Type of Loan (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | $ 617,589 | $ 615,498 |
Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 614,878 | 612,614 |
Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 2,711 | 2,884 |
Real estate loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 458,329 | 475,448 |
Consumer loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 75,591 | 75,833 |
Commercial business | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 83,669 | 64,217 |
Commercial business | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 83,669 | 64,217 |
Commercial business | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 0 | 0 |
One-to-four family | Real estate loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 129,995 | 130,657 |
One-to-four family | Real estate loans: | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 128,488 | 128,989 |
One-to-four family | Real estate loans: | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 1,507 | 1,668 |
Home equity | Real estate loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 13,763 | 16,265 |
Home equity | Real estate loans: | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 13,612 | 16,109 |
Home equity | Real estate loans: | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 151 | 156 |
Commercial and multifamily | Real estate loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 251,459 | 265,774 |
Commercial and multifamily | Real estate loans: | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 251,106 | 265,421 |
Commercial and multifamily | Real estate loans: | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 353 | 353 |
Construction and land | Real estate loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 63,112 | 62,752 |
Construction and land | Real estate loans: | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 63,072 | 62,712 |
Construction and land | Real estate loans: | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 40 | 40 |
Manufactured homes | Consumer loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 20,781 | 20,941 |
Manufactured homes | Consumer loans: | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 20,635 | 20,792 |
Manufactured homes | Consumer loans: | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 146 | 149 |
Floating homes | Consumer loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 39,868 | 39,868 |
Floating homes | Consumer loans: | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 39,354 | 39,350 |
Floating homes | Consumer loans: | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 514 | 518 |
Other consumer | Consumer loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 14,942 | 15,024 |
Other consumer | Consumer loans: | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | 14,942 | 15,024 |
Other consumer | Consumer loans: | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held-for-portfolio | $ 0 | $ 0 |
Loans - Impaired Loans, Individ
Loans - Impaired Loans, Individually Evaluated (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Impaired Loans [Abstract] | |||
Unpaid Principal Balance | $ 5,868 | $ 6,029 | |
Recorder Investment - Without Allowance | 4,233 | 4,121 | |
Recorder Investment - With Allowance | 1,397 | 1,819 | |
Total Recorded Investment | 5,630 | 5,940 | |
Related Allowance | 334 | 378 | |
Average Recorded Investment | 5,800 | $ 11,073 | |
Interest Income Recognized | 48 | 138 | |
Forgone interest on nonaccrual loans | 40 | 62 | |
Commercial business | |||
Impaired Loans [Abstract] | |||
Unpaid Principal Balance | 613 | 615 | |
Recorder Investment - Without Allowance | 613 | 615 | |
Recorder Investment - With Allowance | 0 | 0 | |
Total Recorded Investment | 613 | 615 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 614 | 1,273 | |
Interest Income Recognized | 5 | 23 | |
One-to-four family | Real estate loans: | |||
Impaired Loans [Abstract] | |||
Unpaid Principal Balance | 3,565 | 3,791 | |
Recorder Investment - Without Allowance | 2,516 | 2,392 | |
Recorder Investment - With Allowance | 902 | 1,313 | |
Total Recorded Investment | 3,418 | 3,705 | |
Related Allowance | 126 | 165 | |
Average Recorded Investment | 3,575 | 7,274 | |
Interest Income Recognized | 29 | 72 | |
Home equity | Real estate loans: | |||
Impaired Loans [Abstract] | |||
Unpaid Principal Balance | 375 | 293 | |
Recorder Investment - Without Allowance | 151 | 156 | |
Recorder Investment - With Allowance | 135 | 137 | |
Total Recorded Investment | 286 | 293 | |
Related Allowance | 14 | 14 | |
Average Recorded Investment | 290 | 347 | |
Interest Income Recognized | 5 | 5 | |
Commercial and multifamily | Real estate loans: | |||
Impaired Loans [Abstract] | |||
Unpaid Principal Balance | 353 | 353 | |
Recorder Investment - Without Allowance | 353 | 353 | |
Recorder Investment - With Allowance | 0 | 0 | |
Total Recorded Investment | 353 | 353 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 353 | 353 | |
Interest Income Recognized | 0 | 5 | |
Construction and land | Real estate loans: | |||
Impaired Loans [Abstract] | |||
Unpaid Principal Balance | 76 | 77 | |
Recorder Investment - Without Allowance | 40 | 40 | |
Recorder Investment - With Allowance | 36 | 37 | |
Total Recorded Investment | 76 | 77 | |
Related Allowance | 5 | 6 | |
Average Recorded Investment | 76 | 844 | |
Interest Income Recognized | 0 | 14 | |
Manufactured homes | Consumer loans: | |||
Impaired Loans [Abstract] | |||
Unpaid Principal Balance | 260 | 268 | |
Recorder Investment - Without Allowance | 46 | 47 | |
Recorder Investment - With Allowance | 211 | 218 | |
Total Recorded Investment | 257 | 265 | |
Related Allowance | 160 | 163 | |
Average Recorded Investment | 262 | 434 | |
Interest Income Recognized | 5 | 9 | |
Floating homes | Consumer loans: | |||
Impaired Loans [Abstract] | |||
Unpaid Principal Balance | 514 | 518 | |
Recorder Investment - Without Allowance | 514 | 518 | |
Recorder Investment - With Allowance | 0 | 0 | |
Total Recorded Investment | 514 | 518 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 516 | 407 | |
Interest Income Recognized | 3 | 8 | |
Other consumer | Consumer loans: | |||
Impaired Loans [Abstract] | |||
Unpaid Principal Balance | 112 | 114 | |
Recorder Investment - Without Allowance | 0 | 0 | |
Recorder Investment - With Allowance | 113 | 114 | |
Total Recorded Investment | 113 | 114 | |
Related Allowance | 29 | $ 30 | |
Average Recorded Investment | 114 | 141 | |
Interest Income Recognized | $ 1 | $ 2 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructurings and COVID-19 (Details) | 3 Months Ended | ||
Mar. 31, 2021USD ($)loan | Mar. 31, 2020USD ($)loan | Dec. 31, 2020USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans classified as TDRs | $ | $ 3,200,000 | $ 3,200,000 | |
Number of loans modified as TDRs | loan | 0 | 2 | |
Total modifications | $ | $ 218,000 | ||
Number of TDR loans paid off | loan | 0 | 1 | |
TDR loans paid off | $ | $ 2,800,000 | ||
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 | |
Number of TDR loans charged off | loan | 0 | 0 | |
Commitments to extend additional credit to borrowers whose loan terms have been modified in TDRs | $ | $ 0 | ||
Loans held-for-portfolio | $ | $ 614,377,000 | $ 613,363,000 | |
Commercial business loans | CARES Act, PPP Loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans authorized | loan | 7 | ||
Loans held-for-portfolio | $ | $ 9,100,000 | ||
Real estate loans: | One-to-four family | CARES Act, PPP Loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans authorized | loan | 21 | ||
Loans held-for-portfolio | $ | $ 3,600,000 |
Fair Value Measurements - Infor
Fair Value Measurements - Information about Level in Fair Value Hierarchy for Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
FINANCIAL ASSETS: | ||||
Available-for-sale securities | $ 9,078 | $ 10,218 | ||
Mortgage servicing rights | 4,109 | 3,780 | $ 2,996 | $ 3,239 |
Level 1 | ||||
FINANCIAL ASSETS: | ||||
Cash and cash equivalents | 269,593 | 193,828 | ||
Available-for-sale securities | 0 | 0 | ||
Loans held-for-sale | 0 | 0 | ||
Loans held-for-portfolio, net | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
FHLB stock | 0 | 0 | ||
FINANCIAL LIABILITIES: | ||||
Non-maturity deposits | 0 | 0 | ||
Time deposits | 0 | 0 | ||
Subordinated notes | 0 | 0 | ||
Level 2 | ||||
FINANCIAL ASSETS: | ||||
Cash and cash equivalents | 0 | 0 | ||
Available-for-sale securities | 9,078 | 10,218 | ||
Loans held-for-sale | 10,713 | 11,604 | ||
Loans held-for-portfolio, net | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
FHLB stock | 1,052 | 877 | ||
FINANCIAL LIABILITIES: | ||||
Non-maturity deposits | 624,941 | 512,507 | ||
Time deposits | 194,056 | 238,629 | ||
Subordinated notes | 11,602 | 11,592 | ||
Level 3 | ||||
FINANCIAL ASSETS: | ||||
Cash and cash equivalents | 0 | 0 | ||
Available-for-sale securities | 0 | 0 | ||
Loans held-for-sale | 0 | 0 | ||
Loans held-for-portfolio, net | 609,134 | 608,575 | ||
Mortgage servicing rights | 4,109 | 3,780 | ||
FHLB stock | 0 | 0 | ||
FINANCIAL LIABILITIES: | ||||
Non-maturity deposits | 0 | 0 | ||
Time deposits | 0 | 0 | ||
Subordinated notes | 0 | 0 | ||
Carrying Value | ||||
FINANCIAL ASSETS: | ||||
Cash and cash equivalents | 269,593 | 193,828 | ||
Available-for-sale securities | 9,078 | 10,218 | ||
Loans held-for-sale | 10,713 | 11,604 | ||
Loans held-for-portfolio, net | 608,442 | 607,363 | ||
Mortgage servicing rights | 4,109 | 3,780 | ||
FHLB stock | 1,052 | 877 | ||
FINANCIAL LIABILITIES: | ||||
Non-maturity deposits | 624,941 | 512,507 | ||
Time deposits | 191,752 | 235,474 | ||
Subordinated notes | 11,602 | 11,592 | ||
Estimated Fair Value | ||||
FINANCIAL ASSETS: | ||||
Cash and cash equivalents | 269,593 | 193,828 | ||
Available-for-sale securities | 9,078 | 10,218 | ||
Loans held-for-sale | 10,713 | 11,604 | ||
Loans held-for-portfolio, net | 609,134 | 608,575 | ||
Mortgage servicing rights | 4,109 | 3,780 | ||
FHLB stock | 1,052 | 877 | ||
FINANCIAL LIABILITIES: | ||||
Non-maturity deposits | 624,941 | 512,507 | ||
Time deposits | 194,056 | 238,629 | ||
Subordinated notes | $ 11,602 | $ 11,592 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measured on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Recurring | ||
Balance of Assets Measured at Fair Value on Recurring or Nonrecurring Basis [Abstract] | ||
Municipal bonds | $ 5,359 | $ 5,413 |
Agency mortgage-backed securities | 3,719 | 4,805 |
Mortgage servicing rights | 4,109 | 3,780 |
Recurring | Level 1 | ||
Balance of Assets Measured at Fair Value on Recurring or Nonrecurring Basis [Abstract] | ||
Municipal bonds | 0 | 0 |
Agency mortgage-backed securities | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Recurring | Level 2 | ||
Balance of Assets Measured at Fair Value on Recurring or Nonrecurring Basis [Abstract] | ||
Municipal bonds | 5,359 | 5,413 |
Agency mortgage-backed securities | 3,719 | 4,805 |
Mortgage servicing rights | 0 | 0 |
Recurring | Level 3 | ||
Balance of Assets Measured at Fair Value on Recurring or Nonrecurring Basis [Abstract] | ||
Municipal bonds | 0 | 0 |
Agency mortgage-backed securities | 0 | 0 |
Mortgage servicing rights | 4,109 | 3,780 |
Nonrecurring | ||
Balance of Assets Measured at Fair Value on Recurring or Nonrecurring Basis [Abstract] | ||
OREO and repossessed assets | 575 | 594 |
Impaired loans | 5,630 | 5,940 |
Nonrecurring | Level 1 | ||
Balance of Assets Measured at Fair Value on Recurring or Nonrecurring Basis [Abstract] | ||
OREO and repossessed assets | 0 | 0 |
Impaired loans | 0 | 0 |
Nonrecurring | Level 2 | ||
Balance of Assets Measured at Fair Value on Recurring or Nonrecurring Basis [Abstract] | ||
OREO and repossessed assets | 0 | 0 |
Impaired loans | 0 | 0 |
Nonrecurring | Level 3 | ||
Balance of Assets Measured at Fair Value on Recurring or Nonrecurring Basis [Abstract] | ||
OREO and repossessed assets | 575 | 594 |
Impaired loans | $ 5,630 | $ 5,940 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information (Details) - Level 3 | Mar. 31, 2021 | Dec. 31, 2020 |
Recurring | Mortgage Servicing Rights | Discounted cash flow | Minimum | Prepayment speed assumption | ||
Valuation Technique, Unobservable Input, and Qualitative Information about Unobservable Inputs [Abstract] | ||
Mortgage servicing rights, unobservable input(s) | 2.02 | 1.78 |
Recurring | Mortgage Servicing Rights | Discounted cash flow | Minimum | Discount rate | ||
Valuation Technique, Unobservable Input, and Qualitative Information about Unobservable Inputs [Abstract] | ||
Mortgage servicing rights, unobservable input(s) | 0.125 | 0.100 |
Recurring | Mortgage Servicing Rights | Discounted cash flow | Maximum | Prepayment speed assumption | ||
Valuation Technique, Unobservable Input, and Qualitative Information about Unobservable Inputs [Abstract] | ||
Mortgage servicing rights, unobservable input(s) | 3.92 | 2.76 |
Recurring | Mortgage Servicing Rights | Discounted cash flow | Maximum | Discount rate | ||
Valuation Technique, Unobservable Input, and Qualitative Information about Unobservable Inputs [Abstract] | ||
Mortgage servicing rights, unobservable input(s) | 0.135 | 0.120 |
Recurring | Mortgage Servicing Rights | Discounted cash flow | Weighted Average | Prepayment speed assumption | ||
Valuation Technique, Unobservable Input, and Qualitative Information about Unobservable Inputs [Abstract] | ||
Mortgage servicing rights, unobservable input(s) | 2.24 | 2.47 |
Recurring | Mortgage Servicing Rights | Discounted cash flow | Weighted Average | Discount rate | ||
Valuation Technique, Unobservable Input, and Qualitative Information about Unobservable Inputs [Abstract] | ||
Mortgage servicing rights, unobservable input(s) | 0.125 | 0.100 |
Nonrecurring | OREO | Market approach | Minimum | Adjustment for differences between comparable sales | ||
Valuation Technique, Unobservable Input, and Qualitative Information about Unobservable Inputs [Abstract] | ||
OREO, unobservable input(s) | 0 | 0 |
Nonrecurring | OREO | Market approach | Maximum | Adjustment for differences between comparable sales | ||
Valuation Technique, Unobservable Input, and Qualitative Information about Unobservable Inputs [Abstract] | ||
OREO, unobservable input(s) | 0 | 0 |
Nonrecurring | OREO | Market approach | Weighted Average | Adjustment for differences between comparable sales | ||
Valuation Technique, Unobservable Input, and Qualitative Information about Unobservable Inputs [Abstract] | ||
OREO, unobservable input(s) | 0 | 0 |
Nonrecurring | Impaired loans | Market approach | Minimum | Adjustment for differences between comparable sales | ||
Valuation Technique, Unobservable Input, and Qualitative Information about Unobservable Inputs [Abstract] | ||
Impaired loans, unobservable input(s) | 0 | 0 |
Nonrecurring | Impaired loans | Market approach | Maximum | Adjustment for differences between comparable sales | ||
Valuation Technique, Unobservable Input, and Qualitative Information about Unobservable Inputs [Abstract] | ||
Impaired loans, unobservable input(s) | 1 | 1 |
Nonrecurring | Impaired loans | Market approach | Weighted Average | Adjustment for differences between comparable sales | ||
Valuation Technique, Unobservable Input, and Qualitative Information about Unobservable Inputs [Abstract] | ||
Impaired loans, unobservable input(s) | 0.06 | 0.06 |
Mortgage Servicing Rights -Narr
Mortgage Servicing Rights -Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Servicing Assets at Fair Value [Line Items] | |||
Mortgage servicing rights portfolio | $ 509,800 | $ 488,700 | |
Contractually specified servicing, late and ancillary fees earned on the mortgage servicing rights | 312 | $ 244 | |
Federal National Mortgage Association | |||
Servicing Assets at Fair Value [Line Items] | |||
Loans serviced for others | 502,800 | 481,600 | |
Other financial institutions | |||
Servicing Assets at Fair Value [Line Items] | |||
Loans serviced for others | $ 7,000 | $ 7,100 |
Mortgage Servicing Rights - Sum
Mortgage Servicing Rights - Summary of Change in Balance of Mortgage Servicing Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Beginning balance, at fair value | $ 3,780 | $ 3,239 |
Servicing rights that result from transfers and sale of financial assets | 603 | 119 |
Changes in fair value: | ||
Due to changes in model inputs or assumptions and other | (274) | (362) |
Ending balance, at fair value | $ 4,109 | $ 2,996 |
Mortgage Servicing Rights -Mort
Mortgage Servicing Rights -Mortgage Service Rights Assumptions (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Transfers and Servicing [Abstract] | ||
Prepayment speed (Public Securities Association “PSA” model) | 224.00% | 247.00% |
Weighted-average life | 5 years 6 months | 5 years 2 months 12 days |
Discount rate | 12.50% | 10.00% |
Borrowings, FHLB Stock and Su_2
Borrowings, FHLB Stock and Subordinated Debt (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Sep. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | |
Short-term Debt [Line Items] | |||
Weighted average interest rate on borrowings due within one year | 0.00% | 3.10% | |
Investment in FHLB stock | $ 1,052,000 | $ 877,000 | |
Subordinated debt, net | 11,602,000 | 11,592,000 | |
Subordinated Debt | |||
Short-term Debt [Line Items] | |||
Aggregate principal amount | $ 12,000,000 | ||
Subordinated debt, net | 11,600,000 | ||
Subordinated Debt | Period before October 1, 2025 | |||
Short-term Debt [Line Items] | |||
Interest rate | 5.25% | ||
Subordinated Debt | Period after October 1, 2025 | |||
Short-term Debt [Line Items] | |||
Incremental term | 3 months | ||
Subordinated Debt | Period after October 1, 2025 | SOFR | |||
Short-term Debt [Line Items] | |||
Basis spread on variable rate | 5.13% | ||
Federal Home Loan Bank of Des Moines | |||
Short-term Debt [Line Items] | |||
Amount available to borrow under loan agreement | 387,700,000 | 390,500,000 | |
Outstanding borrowings | 0 | 0 | |
Net remaining amount available | 204,800,000 | 213,700,000 | |
One-to-four family | Federal Home Loan Bank of Des Moines | |||
Short-term Debt [Line Items] | |||
Loans used as collateral for credit facility | 97,900,000 | 103,600,000 | |
Commercial and multifamily | Federal Home Loan Bank of Des Moines | |||
Short-term Debt [Line Items] | |||
Loans used as collateral for credit facility | 126,200,000 | 128,900,000 | |
Home equity | Federal Home Loan Bank of Des Moines | |||
Short-term Debt [Line Items] | |||
Loans used as collateral for credit facility | 2,400,000 | 2,800,000 | |
Line of Credit | Pacific Coast Banker's Bank | |||
Short-term Debt [Line Items] | |||
Amount available to borrow under loan agreement | 10,000,000 | ||
Outstanding borrowings | $ 0 | 0 | |
Term period | 1 year | ||
Line of Credit | The Independent Bank | |||
Short-term Debt [Line Items] | |||
Amount available to borrow under loan agreement | $ 10,000,000 | ||
Outstanding borrowings | 0 | 0 | |
Letter of Credit | Federal Home Loan Bank of Des Moines | |||
Short-term Debt [Line Items] | |||
Letters of credit to secure public deposits | 21,600,000 | 21,600,000 | |
Federal Reserve Bank | |||
Short-term Debt [Line Items] | |||
Outstanding borrowings | 0 | 0 | |
Unused borrowing capacity | $ 23,700,000 | $ 23,600,000 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net income available to common shareholders | $ 2,451 | $ 981 |
Weighted-average number of shares outstanding, basic | 2,571,726 | 2,542,514 |
Effect of potentially dilutive common shares (in shares) | 39,000 | 45,000 |
Weighted-average number of shares outstanding, diluted | 2,610,986 | 2,587,716 |
Earnings per share, basic (in dollars per share) | $ 0.95 | $ 0.38 |
Earnings per share, diluted (in dollars per share) | $ 0.93 | $ 0.38 |
Anti-dilutive securities not included in computation of diluted earnings per common share (in shares) | 2,793 | 6,809 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Options and Restricted Stock (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)loanshares | Mar. 31, 2020USD ($) | |
Restricted Stock Awards [Abstract] | ||
Share-based compensation arrangement by share-based payment award, number of existing equity incentive plans | loan | 1 | |
Share-based compensation expense | $ | $ 166 | $ 185 |
Stock Options | ||
Restricted Stock Awards [Abstract] | ||
Cumulative number of shares issued (in shares) | 272,124 | |
Restricted Stock | ||
Restricted Stock Awards [Abstract] | ||
Cumulative number of shares issued (in shares) | 142,621 | |
2013 Plan | Stock Options and Stock Appreciation Rights | ||
Restricted Stock Awards [Abstract] | ||
Common stock approved (in shares) | 181,750 | |
2013 Plan | Restricted Stock and Restricted Stock Units | ||
Restricted Stock Awards [Abstract] | ||
Common stock approved (in shares) | 116,700 |
Stock-based Compensation - St_2
Stock-based Compensation - Stock Option Awards (Details) - Stock Options - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Stock Option Awards [Abstract] | ||
Term of awards | 10 years | |
Shares | ||
Outstanding, beginning of period (in shares) | 100,979 | |
Granted (in shares) | 12,248 | |
Exercised (in shares) | (11,550) | |
Forfeited (in shares) | (920) | |
Expired (in shares) | (70) | |
Outstanding, end of period (in shares) | 100,687 | 100,979 |
Exercisable (in shares) | 81,944 | |
Expected to vest (in shares) | 18,743 | |
Weighted- Average Exercise Price | ||
Outstanding, beginning of period (in dollars per share) | $ 22 | |
Granted (in dollars per share) | 32.46 | |
Exercised (in dollars per share) | 18.28 | |
Forfeited (in dollars per share) | 35.30 | |
Expired (in dollars per share) | 34.29 | |
Outstanding, end of period (in dollars per share) | 23.57 | $ 22 |
Exercisable (in dollars per share) | 21.26 | |
Expected to vest (in dollars per share) | $ 33.67 | |
Additional Disclosures | ||
Forfeiture rate | 0.00% | |
Outstanding, weighted-average remaining contractual term | 5 years 2 months 15 days | 4 years 8 months 15 days |
Exercisable, weighted-average remaining contractual term | 4 years 3 months 29 days | |
Expected to vest, assuming a 0% forfeiture rate over the vesting term, weighted-average remaining contractual term | 9 years 25 days | |
Outstanding, aggregate intrinsic value | $ 1,818,387 | $ 1,045,041 |
Exercisable, aggregate intrinsic value | 1,669,256 | |
Expected to vest, assuming a 0% forfeiture rate over the vesting term, aggregate intrinsic value | 149,131 | |
Unrecognized compensation cost | $ 113,000 | |
Share-based compensation arrangement, fair value assumptions and methodology [Abstract] | ||
Annual dividend yield | 1.60% | |
Expected volatility | 21.67% | |
Risk-free interest rate | 0.60% | |
Expected term | 6 years 6 months | |
Weighted-average grant date fair value per option granted (in dollars per share) | $ 5.64 | |
Maximum | ||
Additional Disclosures | ||
Remaining weighted-average vesting period | 3 years 10 days | |
2008 Plan | ||
Stock Option Awards [Abstract] | ||
Annual vesting percentage | 20.00% | |
Vesting commencement period from grant date | 1 year | |
2013 Plan | Minimum | ||
Stock Option Awards [Abstract] | ||
Award vesting period | 1 year | |
2013 Plan | Maximum | ||
Stock Option Awards [Abstract] | ||
Award vesting period | 4 years |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Awards (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Shares | ||
Non-vested, beginning of period (in shares) | 17,114 | |
Granted (in shares) | 10,168 | |
Vested (in shares) | (7,762) | |
Forfeited (in shares) | (1,470) | |
Non-vested, end of period (in shares) | 18,050 | |
Expected to vest (in shares) | 18,050 | |
Weighted-Average Grant-Date Fair Value Per Share | ||
Non-vested, beginning of period (in dollars per share) | $ 35.03 | |
Granted (in dollars per share) | 32.46 | |
Vested (in dollars per share) | 33.99 | |
Forfeited (in dollars per share) | 35.36 | |
Non-vested, end of period (in dollars per share) | 34 | |
Expected to vest (in dollars per share) | 34 | |
Aggregate Intrinsic Value Per Share | ||
Aggregate intrinsic value per share (in dollars per share) | 41.63 | |
Expected to vest (in dollars per share) | $ 41.63 | |
Forfeiture rate | 0.00% | |
Unrecognized compensation cost | $ 576 | |
Remaining weighted-average vesting period | 2 years 10 months 24 days | |
Total fair value of shares vested | $ 264 | $ 236 |
2008 Plan | ||
Restricted Stock Awards [Abstract] | ||
Annual vesting percentage | 20.00% | |
Vesting commencement period from grant date | 1 year | |
2013 Plan | Minimum | ||
Restricted Stock Awards [Abstract] | ||
Award vesting period | 1 year | |
2013 Plan | Maximum | ||
Restricted Stock Awards [Abstract] | ||
Award vesting period | 4 years |
Stock-based Compensation - Empl
Stock-based Compensation - Employee Stock Ownership Plan (Details) - Employee Stock Ownership Plan - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Aug. 31, 2012 | Jan. 31, 2008 | |
Employee Stock Ownership Plan [Abstract] | ||||
Repayment period | 10 years | |||
Committed to release (in shares) | 11,340 | |||
Number of common shares held by the trust (in shares) | 149,182 | |||
Fair value of shares held by ESOP trust | $ 6,200 | |||
ESOP compensation expense | 170 | $ 174 | ||
ESOP Borrowing in 2008 | ||||
Employee Stock Ownership Plan [Abstract] | ||||
Amount borrowed by ESOP to purchase common stock | $ 1,200 | |||
ESOP Borrowing in 2012 | ||||
Employee Stock Ownership Plan [Abstract] | ||||
Amount borrowed by ESOP to purchase common stock | $ 1,100 | |||
ESOP loan interest rate | 2.25% | |||
ESOP remaining loan balance from shares purchased | $ 123,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended |
Mar. 31, 2021renewalOption | |
Lessee, Lease, Description [Line Items] | |
Number of renewal options | 1 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Initial lease term | 3 years |
Remaining lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Initial lease term | 10 years |
Remaining lease term | 8 years |
Leases - Summary of Balance She
Leases - Summary of Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Right of use assets | $ 6,475 | $ 6,722 |
Lease liabilities | $ 6,894 | $ 7,134 |
Leases - Summary of Components
Leases - Summary of Components of the Leases and Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Sublease income | $ (3) | $ (3) |
Net lease expense | 270 | 309 |
Office leases | ||
Property, Plant and Equipment [Line Items] | ||
Operating lease expense | $ 273 | $ 307 |
Weighted-average remaining lease term | 7 years 8 months 1 day | 8 years 6 months 10 days |
Weighted-average discount rate | 2.66% | 2.65% |
Operating cash flows | $ 258 | $ 291 |
Equipment leases | ||
Property, Plant and Equipment [Line Items] | ||
Operating lease expense | $ 0 | $ 5 |
Weighted-average remaining lease term | 0 years | 2 months 1 day |
Weighted-average discount rate | 0.00% | 1.62% |
Operating cash flows | $ 0 | $ 5 |
Leases - Schedule of Lease Liab
Leases - Schedule of Lease Liability Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Present value of lease liabilities | $ 6,894 | $ 7,134 |
Office leases | ||
Property, Plant and Equipment [Line Items] | ||
Remainder of 2021 | 784 | |
2022 | 1,016 | |
2023 | 989 | |
2024 | 968 | |
2025 | 885 | |
Thereafter | 3,012 | |
Total lease payments | 7,654 | |
Less: Present value discount | 760 | |
Present value of lease liabilities | $ 6,894 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event - USD ($) $ / shares in Units, $ in Millions | Apr. 27, 2021 | Apr. 29, 2021 |
Subsequent Event [Line Items] | ||
Dividends declared (in dollars per share) | $ 0.17 | |
Stock repurchase program, authorized amount | $ 2 |