Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2016 | Jul. 28, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Waterstone Financial, Inc. | ||
Entity Central Index Key | 1,569,994 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 405.3 | ||
Entity Common Stock, Shares Outstanding | 29,164,384 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | Q2 | ||
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2016 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash | $ 40,887 | $ 57,419 |
Federal funds sold | 31,301 | 20,297 |
Interest-earning deposits in other financial institutions and other short term investments | 10,268 | 22,755 |
Cash and cash equivalents | 82,456 | 100,471 |
Securities available for sale (at fair value) | 253,726 | 269,658 |
Loans held for sale (at fair value) | 208,807 | 166,516 |
Loans receivable | 1,130,036 | 1,114,934 |
Less: Allowance for loan losses | 15,705 | 16,185 |
Loans receivable, net | 1,114,331 | 1,098,749 |
Office properties and equipment, net | 24,518 | 25,328 |
Federal Home Loan Bank stock (at cost) | 14,850 | 19,500 |
Cash surrender value of life insurance | 60,454 | 49,562 |
Real estate owned, net | 8,637 | 9,190 |
Prepaid expenses and other assets | 31,487 | 23,755 |
Total assets | 1,799,266 | 1,762,729 |
Liabilities: | ||
Demand deposits | 106,059 | 102,673 |
Money market and savings deposits | 154,550 | 140,631 |
Time deposits | 682,100 | 650,057 |
Total deposits | 942,709 | 893,361 |
Borrowings | 414,745 | 441,203 |
Advance payments by borrowers for taxes | 16,011 | 3,661 |
Other liabilities | 25,220 | 32,574 |
Total liabilities | 1,398,685 | 1,370,799 |
Shareholders' equity: | ||
Preferred stock (par value $.01 per share) Authorized - 50,000,000 shares in 2016 and in 2015, no shares issued | 0 | 0 |
Common stock (par value $.01 per share) Authorized - 100,000,000 shares in 2016 and in 2015, Issued - 29,147,729 in 2016 and 29,407,455 in 2015, Outstanding - 29,147,729 in 2016 and 29,407,455 in 2015 | 292 | 294 |
Additional paid-in capital | 318,187 | 317,022 |
Retained earnings | 176,163 | 168,089 |
Unearned ESOP shares | (20,771) | (21,365) |
Accumulated other comprehensive income, net of taxes | 3,257 | 582 |
Cost of shares repurchased (5,895,932 shares in 2016 and 5,624,415 shares in 2015) | (76,547) | (72,692) |
Total shareholders' equity | 400,581 | 391,930 |
Total liabilities and shareholders' equity | $ 1,799,266 | $ 1,762,729 |
CONSOLIDATED STATEMENTS OF FIN3
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Shareholders' equity: | ||
Preferred stock - par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock - shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock - shares issued (in shares) | 0 | 0 |
Common stock - par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock - shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock - shares issued (in shares) | 29,163,190 | 29,407,455 |
Common stock - shares outstanding (in shares) | 29,163,190 | 29,407,455 |
Treasury shares (in shares) | 5,908,150 | 5,624,415 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest income: | ||||
Loans | $ 14,073,000 | $ 14,065,000 | $ 27,857,000 | $ 27,378,000 |
Mortgage-related securities | 790,000 | 820,000 | 1,628,000 | 1,659,000 |
Debt securities, federal funds sold and short-term investments | 885,000 | 857,000 | 1,859,000 | 1,723,000 |
Total interest income | 15,748,000 | 15,742,000 | 31,344,000 | 30,760,000 |
Interest expense: | ||||
Deposits | 1,835,000 | 1,358,000 | 3,554,000 | 2,711,000 |
Borrowings | 3,748,000 | 4,324,000 | 7,642,000 | 8,553,000 |
Total interest expense | 5,583,000 | 5,682,000 | 11,196,000 | 11,264,000 |
Net interest income | 10,165,000 | 10,060,000 | 20,148,000 | 19,496,000 |
Provision for loan losses | 0 | 805,000 | 205,000 | 1,140,000 |
Net interest income after provision for loan losses | 10,165,000 | 9,255,000 | 19,943,000 | 18,356,000 |
Noninterest income: | ||||
Service charges on loans and deposits | 616,000 | 443,000 | 953,000 | 849,000 |
Increase in cash surrender value of life insurance | 471,000 | 352,000 | 712,000 | 559,000 |
Mortgage banking income | 34,980,000 | 29,577,000 | 55,594,000 | 50,616,000 |
Gain on sale of available for sale securities | 0 | 0 | 0 | 44,000 |
Other | 284,000 | 668,000 | 537,000 | 1,005,000 |
Total noninterest income | 36,351,000 | 31,040,000 | 57,796,000 | 53,073,000 |
Noninterest expenses: | ||||
Compensation, payroll taxes, and other employee benefits | 25,709,000 | 23,272,000 | 43,395,000 | 41,350,000 |
Occupancy, office furniture and equipment | 2,419,000 | 2,269,000 | 4,755,000 | 4,712,000 |
Advertising | 655,000 | 712,000 | 1,313,000 | 1,365,000 |
Data processing | 638,000 | 630,000 | 1,281,000 | 1,205,000 |
Communications | 372,000 | 351,000 | 714,000 | 721,000 |
Professional fees | 489,000 | 632,000 | 1,012,000 | 1,129,000 |
Real estate owned | 163,000 | 686,000 | 307,000 | 1,229,000 |
FDIC insurance premiums | 155,000 | 271,000 | 360,000 | 607,000 |
Other | 3,631,000 | 3,124,000 | 6,316,000 | 6,057,000 |
Total noninterest expenses | 34,231,000 | 31,947,000 | 59,453,000 | 58,375,000 |
Income before income tax | 12,285,000 | 8,348,000 | 18,286,000 | 13,054,000 |
Income tax expense | 4,518,000 | 3,064,000 | 6,658,000 | 4,754,000 |
Net income | $ 7,767,000 | $ 5,284,000 | $ 11,628,000 | $ 8,300,000 |
Loss per share: | ||||
Basic (in dollars per share) | $ 0.29 | $ 0.17 | $ 0.43 | $ 0.26 |
Diluted (in dollars per share) | $ 0.29 | $ 0.17 | $ 0.43 | $ 0.26 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 26,919 | 29,841 | 26,942 | 31,098 |
Diluted (in shares) | 27,204 | 30,191 | 27,243 | 31,413 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||||
Net income | $ 7,767 | $ 5,284 | $ 11,628 | $ 8,300 |
Net unrealized holding (loss) gain on available for sale securities: | ||||
Net unrealized holding (loss) gain arising during the period, net of tax benefit (expense) of $0, $1,557, $0, $714, respectively | 815 | (2,410) | 2,675 | (1,106) |
Reclassification adjustment for net (gain) loss included in net income during the period, net of tax expense (benefit) of $0, $0, $0, $17, respectively | 0 | 0 | 0 | (27) |
Total other comprehensive (loss) income | 815 | (2,410) | 2,675 | (1,133) |
Comprehensive income | $ 8,582 | $ 2,874 | $ 14,303 | $ 7,167 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other comprehensive income (loss), net of tax | ||||
Net unrealized holding gain (loss) on available for sale securities arising during the period, net of tax (expense) benefit | $ (528) | $ 1,557 | $ (1,728) | $ 714 |
Reclassification adjustment for net gains on available for sale securities realized during the period, net of taxes | $ 0 | $ 0 | $ 0 | $ 17 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Unearned ESOP Shares [Member] | Accumulated Other Comprehensive (Loss) [Member] | Cost of Shares Repurchased [Member] | Total |
Balances at Dec. 31, 2014 | $ 344 | $ 313,894 | $ 157,304 | $ (22,552) | $ 1,247 | $ 0 | $ 450,237 |
Balances (in shares) at Dec. 31, 2014 | 34,420,000 | ||||||
Comprehensive income: | |||||||
Net income | $ 0 | 0 | 8,300 | 0 | 0 | 0 | 8,300 |
Other comprehensive income | 0 | 0 | 0 | 0 | (1,133) | 0 | (1,133) |
Total comprehensive income | 7,167 | ||||||
ESOP shares committed to be released to Plan participants | 0 | 88 | 0 | 594 | 0 | 0 | 682 |
Cash dividend | 0 | 0 | (3,029) | 0 | 0 | 0 | (3,029) |
Stock compensation activity, net of tax | $ 6 | 89 | 0 | 0 | 0 | 0 | 95 |
Stock compensation activity, net of tax (in shares) | 594,000 | ||||||
Stock compensation expense | $ 0 | 1,851 | 0 | 0 | 0 | 0 | 1,851 |
Purchase of common stock returned to authorized but unissued | $ (43) | 0 | 0 | 0 | 0 | (55,522) | (55,565) |
Purchase of common stock returned to authorized but unissued (in shares) | (4,307,000) | ||||||
Balances at Jun. 30, 2015 | $ 307 | 315,922 | 162,575 | (21,958) | 114 | (55,522) | 401,438 |
Balances (in shares) at Jun. 30, 2015 | 30,707,000 | ||||||
Balances at Dec. 31, 2015 | $ 294 | 317,022 | 168,089 | (21,365) | 582 | (72,692) | $ 391,930 |
Balances (in shares) at Dec. 31, 2015 | 29,407,000 | 29,407,455 | |||||
Comprehensive income: | |||||||
Net income | $ 0 | 0 | 11,628 | 0 | 0 | 0 | $ 11,628 |
Other comprehensive income | 0 | 0 | 0 | 0 | 2,675 | 0 | 2,675 |
Total comprehensive income | 14,303 | ||||||
ESOP shares committed to be released to Plan participants | 0 | 145 | 0 | 594 | 0 | 0 | 739 |
Cash dividend | 0 | 0 | (3,554) | 0 | 0 | 0 | (3,554) |
Stock compensation activity, net of tax | $ 0 | 78 | 0 | 0 | 0 | 0 | 78 |
Stock compensation activity, net of tax (in shares) | 40,000 | ||||||
Stock compensation expense | $ 0 | 942 | 0 | 0 | 0 | 0 | 942 |
Purchase of common stock returned to authorized but unissued | $ (2) | 0 | 0 | 0 | 0 | (3,855) | (3,857) |
Purchase of common stock returned to authorized but unissued (in shares) | (284,000) | ||||||
Balances at Jun. 30, 2016 | $ 292 | $ 318,187 | $ 176,163 | $ (20,771) | $ 3,257 | $ (76,547) | $ 400,581 |
Balances (in shares) at Jun. 30, 2016 | 29,163,000 | 29,163,190 |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) [Abstract] | ||
Cash dividends (in dollars per share) | $ 0.13 | $ 0.10 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating activities: | ||
Net income | $ 11,628,000 | $ 8,300,000 |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Provision for loan losses | 205,000 | 1,140,000 |
Provision for depreciation | 1,447,000 | 1,571,000 |
Stock based compensation | 942,000 | 1,851,000 |
Net amortization of premium/discount on debt and mortgage related securities | 510,000 | 685,000 |
Amortization of unearned ESOP shares | 739,000 | 682,000 |
Amortization and impairment of mortgage servicing rights | 389,000 | 385,000 |
Gain on sale of loans held for sale | (54,929,000) | (48,472,000) |
Loans originated for sale | (1,046,354,000) | (995,131,000) |
Proceeds on sales of loans originated for sale | 1,058,992,000 | 960,756,000 |
Increase in accrued interest receivable | (21,000) | 39,000 |
Increase in cash surrender value of life insurance | (712,000) | (559,000) |
Decrease in accrued interest on deposits and borrowings | (211,000) | (41,000) |
Decrease in other liabilities | 4,149,000 | 4,490,000 |
(Increase) decrease in accrued tax receivable | (367,000) | 2,402,000 |
Gain on sale of available for sale securities | 0 | (44,000) |
Net (gain) loss related to real estate owned | 3,000 | 379,000 |
Gain on sale of mortgage servicing rights | 0 | (262,000) |
Other | (9,447,000) | (4,225,000) |
Net cash provided by (used in) operating activities | (33,037,000) | (66,054,000) |
Investing activities: | ||
Net decrease in loans receivable | (18,910,000) | (10,151,000) |
Purchases of: | ||
Purchase of Debt Securities | 0 | (10,000,000) |
Mortgage related securities | (5,236,000) | (15,933,000) |
Premises and equipment, net | (689,000) | (931,000) |
Bank owned life insurance | (10,180,000) | (180,000) |
Payments to Acquire Federal Home Loan Bank Stock | (2,250,000) | (2,000,000) |
Proceeds from: | ||
Principal repayments on mortgage-related securities | 19,115,000 | 20,652,000 |
Maturities of debt securities | 5,945,000 | 5,690,000 |
Sales of debt securities | 0 | 1,034,000 |
Proceeds from Sale of Federal Home Loan Bank Stock | 6,900,000 | 0 |
Sales of real estate owned | 3,712,000 | 13,475,000 |
Net cash (used in) provided by investing activities | (1,593,000) | 1,656,000 |
Financing activities: | ||
Net increase (decrease) in deposits | 49,348,000 | (13,646,000) |
Net change in short-term borrowings | (6,458,000) | 10,000,000 |
Repayment of long term debt | (70,000,000) | 0 |
Proceeds from long term debt | 50,000,000 | 0 |
Net change in advance payments by borrowers for taxes | 175,000 | 1,924,000 |
Cash dividends on common stock | (2,671,000) | (3,113,000) |
Purchase of common stock returned to authorized but unissued | (3,857,000) | (55,565,000) |
Proceeds from stock option exercises | 78,000 | 89,000 |
Net cash used in financing activities | 16,615,000 | (60,311,000) |
Increase (decrease) in cash and cash equivalents | (18,015,000) | (124,709,000) |
Cash and cash equivalents at beginning of year | 100,471,000 | 172,820,000 |
Cash and cash equivalents at end of year | 82,456,000 | 48,111,000 |
Cash paid or credited during the period for: | ||
Income tax payments | 6,545,000 | 2,303,000 |
Interest payments | 11,407,000 | 11,305,000 |
Noncash activities: | ||
Loans receivable transferred to real estate owned | 3,123,000 | 9,066,000 |
Dividends declared but not paid in other liabilities | $ 2,304,000 | $ 1,536,000 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | The unaudited interim consolidated financial statements include the accounts of Waterstone Financial, Inc. (the "Company") and the Company's subsidiaries. WaterStone Bank (the "Bank") is a community bank that has served the banking needs of its customers since 1921. WaterStone Bank also has an active mortgage banking subsidiary, Waterstone Mortgage Corporation. WaterStone Bank conducts its community banking business from 11 banking offices located in Milwaukee, Washington and Waukesha Counties, Wisconsin, as well as a loan production office in Minneapolis, Minnesota. WaterStone Bank's principal lending activity is originating one- to four-family and multi-family residential real estate loans for retention in its portfolio. WaterStone Bank also offers home equity loans and lines of credit, construction and land loans, commercial real estate and commercial business loans, and consumer loans. WaterStone Bank funds its loan production primarily with retail deposits and Federal Home Loan Bank advances. Our deposit offerings include: certificates of deposit, money market savings accounts, transaction deposit accounts, non-interest bearing demand accounts and individual retirement accounts. Our investment securities portfolio is comprised principally of mortgage-backed securities, government-sponsored enterprise bonds and municipal obligations. WaterStone Bank's mortgage banking operations are conducted through its wholly-owned subsidiary, Waterstone Mortgage Corporation. Waterstone Mortgage Corporation originates single-family residential real estate loans for sale into the secondary market. Waterstone Mortgage Corporation utilizes lines of credit provided by WaterStone Bank as a primary source of funds, and also utilizes a line of credit with another financial institution as needed. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles ("GAAP") for interim financial information, Rule 10-01 of Regulation S-X and the instructions to Form 10-Q. The financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position, results of operations, changes in shareholders' equity, and cash flows of the Company for the periods presented. The accompanying unaudited consolidated financial statements and related notes should be read in conjunction with the Company's December 31, 2015 Annual Report on Form 10-K. Operating results for the six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 or for any other period. The preparation of the unaudited consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include the allowance for loan losses, deferred income taxes and real estate owned. Actual results could differ from those estimates. Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications did not result in any changes to previously reported net income or shareholders' equity. Impact of Recent Accounting Pronouncements ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326)" ASU 2016-02 "Lease (Topic 842)" |
Securities Available for Sale
Securities Available for Sale | 6 Months Ended |
Jun. 30, 2016 | |
Securities Available for Sale [Abstract] | |
Securities Available for Sale | Note 2— Securities Available for Sale The amortized cost and fair values of the Company's investment in securities available for sale follow: June 30, 2016 Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In Thousands) Mortgage-backed securities $ 84,445 $ 2,388 $ (3 ) $ 86,830 Collateralized mortgage obligations: Government sponsored enterprise issued 67,855 1,112 - 68,967 Mortgage-related securities 152,300 3,500 (3 ) 155,797 Government sponsored enterprise bonds 3,750 28 - 3,778 Municipal securities 72,371 3,155 (6 ) 75,520 Other debt securities 17,400 128 (628 ) 16,900 Debt securities 93,521 3,311 (634 ) 96,198 Certificates of deposit 1,715 16 - 1,731 $ 247,536 $ 6,827 $ (637 ) $ 253,726 December 31, 2015 Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In Thousands) Mortgage-backed securities $ 95,911 $ 1,004 $ (248 ) $ 96,667 Collateralized mortgage obligations: Government sponsored enterprise issued 70,605 123 (300 ) 70,428 Mortgage-related securities 166,516 1,127 (548 ) 167,095 Government sponsored enterprise bonds 3,750 - (4 ) 3,746 Municipal securities 77,509 1,730 (80 ) 79,159 Other debt securities 17,401 209 (647 ) 16,963 Debt securities 98,660 1,939 (731 ) 99,868 Certificates of deposit 2,695 4 (4 ) 2,695 $ 267,871 $ 3,070 $ (1,283 ) $ 269,658 The Company's mortgage-backed securities and collateralized mortgage obligations issued by government sponsored enterprises are guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. At June 30, 2016, $93.0 million of the Company's mortgage related securities were pledged as collateral to secure repurchase agreement obligations of the Company. As of June 30, 2016, $2.2 million of the Company's mortgage related securities were pledged as collateral to secure At December 31, 2015, $94.1 million of the Company's government sponsored enterprise bonds and $2.5 million of the Company's mortgage related securities were pledged as collateral to secure . The amortized cost and fair values of investment securities by contractual maturity at June 30, 2016 are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value (In Thousands) Debt and other securities Due within one year $ 10,945 $ 11,026 Due after one year through five years 19,526 19,799 Due after five years through ten years 42,011 44,103 Due after ten years 22,754 23,001 Mortgage-related securities 152,300 155,797 $ 247,536 $ 253,726 Gross unrealized losses on securities available for sale and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows: June 30, 2016 Less than 12 months 12 months or longer Total Fair value Unrealized loss Fair value Unrealized loss Fair value Unrealized loss (In Thousands) Mortgage-backed securities $ - $ - $ 2,177 $ (3 ) $ 2,177 $ (3 ) Collateralized mortgage obligations: Government sponsored enterprise issued - - - - - - Municipal securities 6,603 (6 ) - - 6,603 (6 ) Other debt securities - - 9,372 (628 ) 9,372 (628 ) Certificates of deposit - - - - - - $ 6,603 $ (6 ) $ 11,549 $ (631 ) $ 18,152 $ (637 ) December 31, 2015 Less than 12 months 12 months or longer Total Fair value Unrealized loss Fair value Unrealized loss Fair value Unrealized loss (In Thousands) Mortgage-backed securities $ 18,488 $ (163 ) $ 5,577 $ (85 ) $ 24,065 $ (248 ) Collateralized mortgage obligations: Government sponsored enterprise issued 48,281 (300 ) - - 48,281 (300 ) Government sponsored enterprise bonds 3,246 (4 ) - - 3,246 (4 ) Municipal securities 9,409 (18 ) 5,555 (62 ) 14,964 (80 ) Other debt securities 14,363 (647 ) - - 14,363 (647 ) Certificates of deposit 976 (4 ) - - 976 (4 ) $ 94,763 $ (1,136 ) $ 11,132 $ (147 ) $ 105,895 $ (1,283 ) The Company reviews the investment securities portfolio on a quarterly basis to monitor its exposure to other-than-temporary impairment. In evaluating whether a security's decline in market value is other-than-temporary, management considers the length of time and extent to which the fair value has been less than cost, the financial condition of the issuer and the underlying obligors, quality of credit enhancements, volatility of the fair value of the security, the expected recovery period of the security and ratings agency evaluations. In addition, the Company may also evaluate payment structure, whether there are defaulted payments or expected defaults, prepayment speeds and the value of any underlying collateral. As of June 30, 2016, the Company held two municipal securities that had previously been deemed to be other-than-temporarily impaired. Both securities were issued by a tax incremental district in a municipality located in Wisconsin. During the year ended December 31, 2012, the Company received audited financial statements with respect to the municipal issuer that called into question the ability of the underlying taxing district that issued the securities to operate as a going concern. During the year ended December 31, 2012, the Company's analysis of these securities resulted in $100,000 in credit losses charged to earnings with respect to these two municipal securities. During the year ended December 31, 2014, there were sales in the market of municipal issuer bonds at a discounted price that resulted in the Company recording additional credit losses. An additional $17,000 credit loss was charged to earnings during the year ended December 31, 2014 for these municipal bonds. As of June 30, 2016, these securities had a combined amortized cost of $198,000 and total life-to-date impairment of $117,000. As of June 30, 2016, the Company had two mortgage-backed securities and one other debt security which had been in an unrealized loss position for twelve months or longer. These securities were determined not to be other-than-temporarily impaired as of June 30, 2016. The Company has determined that the decline in fair value of these securities is primarily attributable to an increase in market interest rates compared to the stated rates on these securities and is not attributable to credit deterioration. As the Company does not intend to sell nor is it more likely than not that it will be required to sell these securities before recovery of the amortized cost basis, these securities are not considered other-than-temporarily impaired. Deterioration of general economic market conditions could result in the recognition of future other than temporary impairment losses within the investment portfolio and such amounts could be material to our consolidated financial statements. There were no sales of securities during the six months ended June 30, 2016. During the six months ended June 30, 2015, proceeds from the sale of securities totaled $1.0 million and resulted in gains totaling $44,000. The $44,000 included in gain on sale of available for sale securities in the consolidated statements of income during the six months ended June 30, 2015 was reclassified from accumulated other comprehensive income. |
Loans Receivable
Loans Receivable | 6 Months Ended |
Jun. 30, 2016 | |
Loan Receivable [Abstract] | |
Loans Receivable | Note 3 - Loans Receivable Loans receivable at June 30, 2016 and December 31, 2015 are summarized as follows: June 30, 2016 December 31, 2015 (In Thousands) Mortgage loans: Residential real estate: One- to four-family $ 383,029 $ 381,992 Multi-family 544,753 547,250 Home equity 23,173 24,326 Construction and land 16,842 19,148 Commercial real estate 134,537 118,820 Consumer 342 361 Commercial loans 27,360 23,037 $ 1,130,036 $ 1,114,934 The Company provides several types of loans to its customers, including residential, construction, commercial and consumer loans. Significant loan concentrations are considered to exist for a financial institution when there are amounts loaned to one borrower or to multiple borrowers engaged in similar activities that would cause them to be similarly impacted by economic or other conditions. While the Company's credit risks are geographically concentrated in the Milwaukee metropolitan area, there are no concentrations with individual or groups of related borrowers. Qualifying loans receivable totaling $885.2 million and $872.8 million at June 30, 2016 and December 31, 2015, respectively, are pledged as collateral against $330.0 million in outstanding Federal Home Loan Bank of Chicago (FHLBC) advances under a blanket security agreement. As of June 30, 2016 and December 31, 2015, there were no loans 90 or more days past due and still accruing interest. An analysis of past due loans receivable as of June 30, 2016 and December 31, 2015 follows: As of June 30, 2016 1-59 Days Past Due (1) 60-89 Days Past Due (2) 90 Days or Greater Total Past Due Current (3) Total Loans (In Thousands) Mortgage loans: Residential real estate: One- to four-family $ 1,064 $ 99 $ 5,441 $ 6,604 $ 376,425 $ 383,029 Multi-family 379 - 700 1,079 543,674 544,753 Home equity 30 - 58 88 23,085 23,173 Construction and land - - 66 66 16,776 16,842 Commercial real estate - - 209 209 134,328 134,537 Consumer - - - - 342 342 Commercial loans - 2 26 28 27,332 27,360 Total $ 1,473 $ 101 $ 6,500 $ 8,074 $ 1,121,962 $ 1,130,036 As of December 31, 2015 1-59 Days Past Due (1) 60-89 Days Past Due (2) 90 Days or Greater Total Past Due Current (3) Total Loans (In Thousands) Mortgage loans: Residential real estate: One- to four-family $ 851 $ 1,133 $ 6,503 $ 8,487 $ 373,505 $ 381,992 Multi-family — 207 1,858 2,065 545,185 547,250 Home equity 255 96 110 461 23,865 24,326 Construction and land - - 238 238 18,910 19,148 Commercial real estate 57 - 223 280 118,540 118,820 Consumer - - - - 361 361 Commercial loans - - - - 23,037 23,037 Total $ 1,163 $ 1,436 $ 8,932 $ 11,531 $ 1,103,403 $ 1,114,934 (1) Includes $447,000 and $315,000 at June 30, 2016 and December 31, 2015, respectively, which are on non-accrual status. (2) Includes $32,000 and $467,000 at June 30, 2016 and December 31, 2015, respectively, which are on non-accrual status. (3) Includes $4.4 million and $7.9 million at June 30, 2016 and December 31, 2015, respectively, which are on non-accrual status. A summary of the activity for the six months ended June 30, 2016 and 2015 in the allowance for loan losses follows: One- to Four- Family Multi-Family Home Equity Construction and Land Commercial Real Estate Consumer Commercial Total (In Thousands) Six months ended June 30, 2016 Balance at beginning of period $ 7,763 $ 5,000 $ 433 $ 904 $ 1,680 $ 9 $ 396 $ 16,185 Provision (credit) for loan losses (103 ) (5 ) (2 ) (13 ) 52 1 275 205 Charge-offs (464 ) (445 ) (62 ) (3 ) - - - (974 ) Recoveries 178 59 19 33 - - - 289 Balance at end of period $ 7,374 $ 4,609 $ 388 $ 921 $ 1,732 $ 10 $ 671 $ 15,705 Six months ended June 30, 2015 Balance at beginning of period $ 9,877 $ 5,358 $ 422 $ 687 $ 1,951 $ 8 $ 403 $ 18,706 Provision (credit) for loan losses 1,402 (147 ) (54 ) 47 (115 ) (2 ) 9 1,140 Charge-offs (1,220 ) (1,304 ) (48 ) (47 ) (45 ) - - (2,664 ) Recoveries 289 753 95 33 5 3 - 1,178 Balance at end of period $ 10,348 $ 4,660 $ 415 $ 720 $ 1,796 $ 9 $ 412 $ 18,360 A summary of the allowance for loan loss for loans evaluated individually and collectively for impairment by collateral class as of June 30, 2016 follows: One- to Four- Family Multi- Family Home Equity Construction and Land Commercial Real Estate Consumer Commercial Total (In Thousands) Allowance related to loans individually evaluated for impairment $ 605 $ - $ 75 $ - $ 88 $ - $ 2 $ 770 Allowance related to loans collectively evaluated for impairment 6,769 4,609 313 921 1,644 10 669 14,935 Balance at end of period $ 7,374 $ 4,609 $ 388 $ 921 $ 1,732 $ 10 $ 671 $ 15,705 Loans individually evaluated for impairment $ 12,124 $ 4,287 $ 319 $ 504 $ 1,631 $ - $ 48 $ 18,913 Loans collectively evaluated for impairment 370,905 540,466 22,854 16,338 132,906 342 27,312 1,111,123 Total gross loans $ 383,029 $ 544,753 $ 23,173 $ 16,842 $ 134,537 $ 342 $ 27,360 $ 1,130,036 A summary of the allowance for loan loss for loans evaluated individually and collectively for impairment by collateral class as of December 31, 2015 follows: One- to Four-Family Multi- Family Home Equity Construction and Land Commercial Real Estate Consumer Commercial Total (In Thousands) Allowance related to loans individually evaluated for impairment $ 1,114 $ 242 $ 108 $ 3 $ 106 $ - $ 3 $ 1,576 Allowance related to loans collectively evaluated for impairment 6,649 4,758 325 901 1,574 9 393 14,609 Balance at end of period $ 7,763 $ 5,000 $ 433 $ 904 $ 1,680 $ 9 $ 396 $ 16,185 Loans individually evaluated for impairment $ 18,385 $ 5,100 $ 472 $ 1,795 $ 1,766 $ - $ 27 $ 27,545 Loans collectively evaluated for impairment 363,607 542,150 23,854 17,353 117,054 361 23,010 1,087,389 Total gross loans $ 381,992 $ 547,250 $ 24,326 $ 19,148 $ 118,820 $ 361 $ 23,037 $ 1,114,934 The following table presents information relating to the Company's internal risk ratings of its loans receivable as of June 30, 2016 and December 31, 2015: One to Four- Family Multi-Family Home Equity Construction and Land Commercial Real Estate Consumer Commercial Total (In Thousands) At June 30, 2016 Substandard $ 14,271 $ 1,757 $ 406 $ 66 $ 1,631 $ - $ 47 $ 18,178 Watch 9,800 2,931 113 874 1,465 - 3,070 18,253 Pass 358,958 540,065 22,654 15,902 131,441 342 24,243 1,093,605 $ 383,029 $ 544,753 $ 23,173 $ 16,842 $ 134,537 $ 342 $ 27,360 $ 1,130,036 At December 31, 2015 Substandard $ 19,148 $ 2,553 $ 684 $ 1,794 $ 1,766 $ - $ 55 $ 26,000 Watch 11,352 3,634 128 - 1,161 - 402 16,677 Pass 351,492 541,063 23,514 17,354 115,893 361 22,580 1,072,257 $ 381,992 $ 547,250 $ 24,326 $ 19,148 $ 118,820 $ 361 $ 23,037 $ 1,114,934 Factors that are important to managing overall credit quality include sound loan underwriting and administration, systematic monitoring of existing loans and commitments, effective loan review on an ongoing basis, early identification of potential problems, an allowance for loan losses, and sound non-accrual and charge-off policies. Our underwriting policies require an officers' loan committee review and approval of all loans in excess of $500,000. In addition, we utilize an independent loan review function for all loans. Our ability to manage credit risk depends in large part on our ability to properly identify and manage problem loans. To do so, we maintain a loan review system under which our credit management personnel review non-owner occupied one- to four-family, multi-family, construction and land, commercial real estate and commercial loans that individually, or as part of an overall borrower relationship exceed $1.0 million in potential exposure. Loans meeting these criteria are reviewed on an annual basis, or more frequently, if the loan renewal is less than one year. With respect to this review process, management has determined that pass loans include loans that exhibit acceptable financial statements, cash flow and leverage. Watch loans have potential weaknesses that deserve management's attention, and if left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the credit. Substandard loans are considered inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged. These loans generally have a well-defined weakness that may jeopardize liquidation of the debt and are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Finally, a loan is considered to be impaired when it is probable that the Bank will not be able to collect all amounts due according to the contractual terms of the loan agreement. Management has determined that all non-accrual loans and loans modified under troubled debt restructurings meet the definition of an impaired loan. The Company's procedures dictate that an updated valuation must be obtained with respect to underlying collateral at the time a loan is deemed impaired. Updated valuations may also be obtained upon transfer from loans receivable to real estate owned based upon the age of the prior appraisal, changes in market conditions or known changes to the physical condition of the property. Estimated fair values are reduced to account for sales commissions, broker fees, unpaid property taxes and additional selling expenses to arrive at an estimated net realizable value. The adjustment factor is based upon the Company's actual experience with respect to sales of real estate owned over the prior two years. In situations in which we are placing reliance on an appraisal that is more than one year old, an additional adjustment factor is applied to account for downward market pressure since the date of appraisal. The additional adjustment factor is based upon relevant sales data available for our general operating market as well as company-specific historical net realizable values as compared to the most recent appraisal prior to disposition. With respect to multi-family income-producing real estate, appraisals are reviewed and estimated collateral values are adjusted by updating significant appraisal assumptions to reflect current real estate market conditions. Significant assumptions reviewed and updated include the capitalization rate, rental income and operating expenses. These adjusted assumptions are based upon recent appraisals received on similar properties as well as on actual experience related to real estate owned and currently under Company management. The following tables present data on impaired loans at June 30, 2016 and December 31, 2015. As of or for the Six Months Ended June 30, 2016 Recorded Investment Unpaid Principal Reserve Cumulative Charge-Offs Average Recorded Investment Interest Paid (In Thousands) Total Impaired with Reserve One- to four-family $ 3,040 $ 3,080 $ 605 $ 40 $ 3,066 $ 69 Multi-family - - - - - - Home equity 163 163 75 - 167 7 Construction and land - - - - - - Commercial real estate 296 705 88 409 303 6 Consumer - - - - - - Commercial 2 2 2 - 3 - 3,501 3,950 770 449 3,539 82 Total Impaired with no Reserve One- to four-family 9,084 10,509 - 1,425 9,340 179 Multi-family 4,287 5,315 - 1,028 4,313 118 Home equity 156 156 - - 156 2 Construction and land 504 504 - - 780 12 Commercial real estate 1,335 1,335 - - 1,397 31 Consumer - - - - - - Commercial 46 46 - - 48 1 15,412 17,865 - 2,453 16,034 343 Total Impaired One- to four-family 12,124 13,589 605 1,465 12,406 248 Multi-family 4,287 5,315 - 1,028 4,313 118 Home equity 319 319 75 - 323 9 Construction and land 504 504 - - 780 12 Commercial real estate 1,631 2,040 88 409 1,700 37 Consumer - - - - - - Commercial 48 48 2 - 51 1 $ 18,913 $ 21,815 $ 770 $ 2,902 $ 19,573 $ 425 As of or for the Year Ended December 31, 2015 Recorded Investment Unpaid Principal Reserve Cumulative Charge-Offs Average Recorded Investment Interest Paid (In Thousands) Total Impaired with Reserve One- to four-family $ 7,903 $ 8,923 $ 1,114 $ 1,020 $ 8,113 $ 393 Multi-family 1,055 1,055 242 - 1,044 42 Home equity 169 169 108 - 174 10 Construction and land 156 269 3 113 155 - Commercial real estate 314 723 106 409 367 23 Consumer - - - - - - Commercial 3 3 3 - 5 1 9,600 11,142 1,576 1,542 9,858 469 Total Impaired with no Reserve One- to four-family 10,482 11,991 - 1,509 10,676 500 Multi-family 4,045 5,090 - 1,045 4,106 245 Home equity 303 303 - - 307 13 Construction and land 1,639 1,639 - - 1,827 62 Commercial real estate 1,452 1,452 - - 1,458 72 Consumer - - - - - - Commercial 24 24 - - 29 2 17,945 20,499 - 2,554 18,403 894 Total Impaired One- to four-family 18,385 20,914 1,114 2,529 18,789 893 Multi-family 5,100 6,145 242 1,045 5,150 287 Home equity 472 472 108 - 481 23 Construction and land 1,795 1,908 3 113 1,982 62 Commercial real estate 1,766 2,175 106 409 1,825 95 Consumer - - - - - - Commercial 27 27 3 - 34 3 $ 27,545 $ 31,641 $ 1,576 $ 4,096 $ 28,261 $ 1,363 The difference between a loan's recorded investment and the unpaid principal balance represents a partial charge-off resulting from a confirmed loss when the value of the collateral securing the loan is below the loan balance and management's assessment that the full collection of the loan balance is not likely. When a loan is considered impaired, interest payments received are treated as interest income on a cash basis as long as the remaining book value of the loan (i.e., after charge-off of all identified losses) is deemed to be fully collectible. If the remaining book value is not deemed to be fully collectible, all payments received are applied to unpaid principal. Determination as to the ultimate collectability of the remaining book value is supported by an updated credit department evaluation of the borrower's financial condition and prospects for repayment, including consideration of the borrower's sustained historical repayment performance and other relevant factors. The determination as to whether an allowance is required with respect to impaired loans is based upon an analysis of the value of the underlying collateral and/or the borrower's intent and ability to make all principal and interest payments in accordance with contractual terms. The evaluation process is subject to the use of significant estimates and actual results could differ from estimates. This analysis is primarily based upon third party appraisals and/or a discounted cash flow analysis. In those cases in which no allowance has been provided for an impaired loan, the Company has determined that the estimated value of the underlying collateral exceeds the remaining outstanding balance of the loan. Of the total $15.4 million of impaired loans as of June 30, 2016 for which no allowance has been provided, $2.5 million in charge-offs have been recorded to reduce the unpaid principal balance to an amount that is commensurate with the loans' net realizable value, using the estimated fair value of the underlying collateral. To the extent that further deterioration in property values continues, the Company may have to reevaluate the sufficiency of the collateral servicing these impaired loans resulting in additional provisions to the allowance for loans losses or charge-offs. At June 30, 2016, total impaired loans included $11.6 million of troubled debt restructurings. Troubled debt restructurings involve granting concessions to a borrower experiencing financial difficulty by modifying the terms of the loan in an effort to avoid foreclosure. The vast majority of debt restructurings include a modification of terms to allow for an interest only payment and/or reduction in interest rate. The restructured terms are typically in place for six to twelve months. At December 31, 2015, total impaired loans included $17.5 million of troubled debt restructurings. The following presents data on troubled debt restructurings: As of June 30, 2016 Accruing Non-accruing Total Amount Number Amount Number Amount Number (dollars in thousands) One- to four-family $ 3,308 3 $ 2,502 34 $ 5,810 37 Multi-family 2,530 1 1,464 5 3,994 6 Home equity - - 98 1 98 1 Construction and land 437 1 - - 437 1 Commercial real estate 1,192 2 65 1 1,257 3 $ 7,467 7 $ 4,129 41 $ 11,596 48 As of December 31, 2015 Accruing Non-accruing Total Amount Number Amount Number Amount Number (dollars in thousands) One- to four-family $ 3,900 4 $ 5,739 45 $ 9,639 49 Multi-family 2,546 1 2,317 7 4,863 8 Home equity - - 98 1 98 1 Construction and land 1,556 2 - - 1,556 2 Commercial real estate 1,306 1 77 1 1,383 2 $ 9,308 8 $ 8,231 54 $ 17,539 62 At June 30, 2016, $11.6 million in loans had been modified in troubled debt restructurings and $4.1 million of these loans were included in the non-accrual loan total. The remaining $7.5 million, while meeting the internal requirements for modification in a troubled debt restructuring, were current with respect to payments under their original loan terms at the time of the restructuring and, therefore, continued to be included with accruing loans. Provided these loans perform in accordance with the modified terms, they will continue to be accounted for on an accrual basis. All loans that have been modified in a troubled debt restructuring are considered to be impaired. As such, an analysis has been performed with respect to all of these loans to determine the need for a valuation reserve. When a loan is expected to perform in accordance with the restructured terms and ultimately return to and perform under contract terms, a valuation allowance is established for an amount equal to the excess of the present value of the expected future cash flows under the original contract terms as compared with the modified terms, including an estimated default rate. When there is doubt as to the borrower's ability to perform under the restructured terms or ultimately return to and perform under market terms, a valuation allowance is established equal to the impairment when the carrying amount exceeds fair value of the underlying collateral. As a result of the impairment analysis, a $442,000 valuation allowance has been established as of June 30, 2016 with respect to the $11.6 million in troubled debt restructurings. As of December 31, 2015, a $996,000 valuation allowance had been established with respect to the $17.5 million in troubled debt restructurings. After a troubled debt restructuring reverts to market terms, a minimum of six consecutive contractual payments must be received prior to consideration for a return to accrual status. If an updated credit department review indicates no other evidence of elevated credit risk, the loan is returned to accrual status at that time. The following presents troubled debt restructurings by concession type: As of June 30, 2016 Performing in accordance with modified terms In Default Total Amount Number Amount Number Amount Number (dollars in thousands) Interest reduction and principal forbearance $ 9,666 24 $ 800 2 $ 10,466 26 Interest reduction 1,130 22 - - 1,130 22 $ 10,796 46 $ 800 2 $ 11,596 48 As of December 31, 2015 Performing in accordance with modified terms In Default Total Amount Number Amount Number Amount Number (dollars in thousands) Interest reduction and principal forbearance $ 13,971 30 $ 1,012 5 $ 14,983 35 Principal forbearance 97 1 - - 97 1 Interest reduction 2,459 26 - - 2,459 26 $ 16,527 57 $ 1,012 5 $ 17,539 62 There were no loans modified as troubled debt restructurings for the three or six months ended June 30, 2016 and June 30, 2015. There were no troubled debt restructurings within the past twelve months for which there was a default during the three or six months ended June 30, 2016 and June 30, 2015. The following table presents data on non-accrual loans as of June 30, 2016 and December 31, 2015: June 30, 2016 December 31, 2015 (Dollars in Thousands) Non-accrual loans: Residential One- to four-family $ 8,765 $ 13,888 Multi-family 1,757 2,553 Home equity 304 437 Construction and land 66 239 Commercial real estate 439 460 Commercial 48 27 Consumer - - Total non-accrual loans $ 11,379 $ 17,604 Total non-accrual loans to total loans receivable 1.01 % 1.58 % Total non-accrual loans to total assets 0.63 % 1.00 % |
Real Estate Owned
Real Estate Owned | 6 Months Ended |
Jun. 30, 2016 | |
Real Estate Owned [Abstract] | |
Real Estate Owned [Text Block] | Note 4— Real Estate Owned Real estate owned is summarized as follows: June 30, 2016 December 31, 2015 (In Thousands) One- to four-family $ 3,834 $ 4,610 Multi-family 402 209 Construction and land 5,346 5,262 Commercial real estate 300 300 Total real estate owned 9,882 10,381 Valuation allowance at end of period (1,245 ) (1,191 ) Total real estate owned, net $ 8,637 $ 9,190 The following table presents the activity in the Company's real estate owned: Six months ended June 30, 2016 2015 (In Thousands) Real estate owned at beginning of the period $ 9,190 $ 18,706 Transferred from loans receivable 3,123 9,066 Sales (net of gains / losses) (3,325 ) (12,484 ) Write downs (351 ) (1,244 ) Other - 282 Real estate owned at the end of the period $ 8,637 $ 14,326 Residential one- to four-family mortgage loans that were in the process of foreclosure were $3.4 million and $5.1 million at June 30, 2016 and December 31, 2015, respectively. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 6 Months Ended |
Jun. 30, 2016 | |
Mortgage Servicing Rights [Abstract] | |
Mortgage Servicing Rights | Note 5— Mortgage Servicing Rights The following table presents the activity in the Company's mortgage servicing rights: Six months ended June 30, 2016 2015 (In Thousands) Mortgage servicing rights at beginning of the period $ 1,422 $ 2,521 Additions 972 1,999 Amortization (239 ) (375 ) Sales - (614 ) Mortgage servicing rights at end of the period 2,155 3,531 Valuation allowance at end of period (150 ) (20 ) Mortgage servicing rights at end of the period, net $ 2,005 $ 3,511 During the six months ended June 30, 2016, $1.0 billion in residential loans were originated for sale. During the same period, sales of loans held for sale totaled $1.1 billion, generating mortgage banking income of $55.6 million. The unpaid principal balance of loans serviced for others was $291.6 million and $176.4 million at June 30, 2016 and December 31, 2015, respectively. These loans are not reflected in the consolidated statements of financial condition. During the six months ended June 30, 2016, the Company did not sell any mortgage servicing rights. During the six months ended June 30, 2015, the Company sold mortgage servicing rights related to $87.3 million in loans receivable with a book value of $614,000 for $876,000 resulting in a gain on sale of $262,000. The following table shows the estimated future amortization expense for mortgage servicing rights for the periods indicated: Estimate for the period ended December 31: (In Thousands) 2016 $ 204 2017 348 2018 304 2019 260 2020 218 Thereafter 671 Total $ 2,005 |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2016 | |
Deposits [Abstract] | |
Deposits | Note 6— Deposits At June 30, 2016 and December 31, 2015, time deposits with balances greater than $250,000 amounted to $45.4 million and $37.7 million, respectively. A summary of the contractual maturities of time deposits at June 30, 2016 is as follows: (In Thousands) Within one year $ 479,358 More than one to two years 192,580 More than two to three years 4,311 More than three to four years 3,986 More than four through five years 1,865 $ 682,100 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2016 | |
Borrowings [Abstract] | |
Borrowings | Note 7— Borrowings Borrowings consist of the following: June 30, 2016 December 31, 2015 Balance Weighted Average Rate Balance Weighted Average Rate (Dollars in Thousands) Short-term repurchase agreement $ 745 3.22 % $ 7,203 3.19 % Long term: Federal Home Loan Bank, Chicago advances maturing: 2016 150,000 4.44 % 220,000 4.34 % 2017 65,000 3.19 % 65,000 3.19 % 2018 65,000 2.97 % 65,000 2.97 % 2021 50,000 0.70 % - 0.00 % Repurchase agreements maturing 2017 84,000 3.96 % 84,000 3.96 % $ 414,745 3.46 % $ 441,203 3.88 % The short-term repurchase agreement represents the outstanding portion of a total $35.0 million commitment with one unrelated bank. The short-term repurchase agreement is utilized by Waterstone Mortgage Corporation to finance loans originated for sale. This agreement is secured by the underlying loans being financed. Related interest rates are based upon the note rate associated with the loans being financed. The short-term repurchase agreement had a $745,000 balance at June 30, 2016 and a $7.2 million balance at December 31, 2015. The $150.0 million in advances due in 2016 consists of five advances with fixed rates ranging from 4.25% to 4.82% callable quarterly until maturity. The $65.0 million in advances due in 2017 consists of three advances with fixed rates ranging from 3.09% to 3.46% callable quarterly until maturity. The $65.0 million in advances due in 2018 consists of three advances with fixed rates ranging from 2.73% to 3.11% callable quarterly until maturity. The $50.0 million in advances due in 2021 consists of two advances with fixed rates ranging from 0.67% to 0.73% with a FHLB call option in June 2018. The $84.0 million in repurchase agreements have fixed rates ranging from 2.89% to 4.31% callable quarterly until their maturity in 2017. The repurchase agreements are collateralized by securities available for sale with an estimated fair value of $93.0 million at June 30, 2016 and $94.1 million at December 31, 2015. The Company selects loans that meet underwriting criteria established by the FHLBC as collateral for outstanding advances. The Company's borrowings from the FHLBC are limited to 80% of the carrying value of unencumbered one- to four-family mortgage loans, 51% of the carrying value of home equity loans and 75% of the carrying value of multi-family loans. In addition, these advances are collateralized by FHLBC stock of $14.9 million at June 30, 2016 and $19.5 million at December 31, 2015. In the event of prepayment, the Company is obligated to pay all remaining contractual interest on the advance. |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2016 | |
Regulatory Capital [Abstract] | |
Regulatory Capital | Note 8 – Regulatory Capital The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements, or overall financial performance deemed by the regulators to be inadequate, can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Company's and Bank's assets, liabilities, and certain off-balance-sheet items, as calculated under regulatory accounting practices. The Company's and Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The Federal Reserve Board and the FDIC issued final rules implementing the Basel III regulatory capital framework and related Dodd-Frank Wall Street Reform and Consumer Protection Act changes. The rules revise minimum capital requirements and adjust prompt corrective action thresholds. The final rules revise the regulatory capital elements, add a new common equity Tier I capital ratio, increase the minimum Tier 1 capital ratio requirements and implement a new capital conservation buffer. The rules also permit certain banking organizations to retain, through a one-time election, the existing treatment for accumulated other comprehensive income. The Company and the Bank have made the election to retain the existing treatment for accumulated other comprehensive income. The final rules took effect for the Company and the Bank on January 1, 2015, subject to a transition period for certain parts of the rules. The table below includes the new regulatory capital ratio requirements that became effective on January 1, 2015. Beginning in 2016, an additional capital conservation buffer was added to the minimum requirements for capital adequacy purposes, subject to a three year phase-in period. The capital conservation buffer will be fully phased-in on January 1, 2019 at 2.5 percent. A banking organization with a conservation buffer of less than 2.5 percent (or the required phase-in amount in years prior to 2019) will be subject to limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. At the present time, the ratios for the Company and the Bank are sufficient to meet the fully phased-in conservation buffer. The actual and required capital amounts and ratios for the Bank as of June 30, 2016 and December 31, 2015 are presented in the table below: June 30, 2016 Actual For Capital Adequacy Purposes Minimum Capital Adequacy with Capital Buffer To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars In Thousands) Total Capital (to risk-weighted assets) Consolidated Waterstone Financial, Inc. $ 412,262 33.17 % $ 99,442 8.00 % $ 107,211 8.625 % $ N/A N/A WaterStone Bank 383,720 30.91 % 99,307 8.00 % 107,065 8.625 % 124,133 10.00 % Tier 1 Capital (to risk-weighted assets) Consolidated Waterstone Financial, Inc. 396,723 31.92 % 74,581 6.00 % 82,350 6.625 % N/A N/A WaterStone Bank 368,202 29.66 % 74,480 6.00 % 82,238 6.625 % 99,307 8.00 % Common Equity Tier 1 Capital (to risk-weighted assets) Consolidated Waterstone Financial, Inc. 396,723 31.92 % 55,936 4.50 % 63,705 5.125 % N/A N/A WaterStone Bank 368,202 29.66 % 55,860 4.50 % 63,618 5.125 % 80,687 6.50 % Tier 1 Capital (to average assets) Consolidated Waterstone Financial, Inc. 396,723 22.63 % 70,112 4.00 % N/A N/A N/A N/A WaterStone Bank 368,202 21.06 % 69,919 4.00 % N/A N/A 87,399 5.00 % State of Wisconsin (to total assets) WaterStone Bank 368,202 20.52 % 107,654 6.00 % N/A N/A N/A N/A December 31, 2015 (Dollars In Thousands) Total Capital (to risk-weighted assets) Consolidated Waterstone Financial, Inc. $ 405,947 33.41 % $ 97,207 8.00 % $ N/A N/A $ N/A N/A WaterStone Bank 374,435 30.92 % 96,885 8.00 % N/A N/A 121,106 10.00 % Tier 1 Capital (to risk-weighted assets) Consolidated Waterstone Financial, Inc. 390,747 32.16 % 72,905 6.00 % N/A N/A N/A N/A WaterStone Bank 359,284 29.67 % 72,664 6.00 % N/A N/A 96,885 8.00 % Common Equity Tier 1 Capital (to risk-weighted assets) Consolidated Waterstone Financial, Inc. 390,747 32.16 % 54,679 4.50 % N/A N/A N/A N/A WaterStone Bank 359,284 29.67 % 54,498 4.50 % N/A N/A 78,719 6.50 % Tier 1 Capital (to average assets) Consolidated Waterstone Financial, Inc. 390,747 22.20 % 70,417 4.00 % N/A N/A N/A N/A WaterStone Bank 359,284 20.45 % 70,286 4.00 % N/A N/A 87,857 5.00 % State of Wisconsin (to total assets) WaterStone Bank 359,284 20.43 % 105,493 6.00 % N/A N/A N/A N/A |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Note 9 – Income Taxes Income tax expense increased from $4.8 million during the six months ended June 30, 2015 to $6.7 million for the six months ended June 30, 2016. This increase was due to the increase in our income before income taxes, which increased from $13.1 million during the six months ended June 30, 2015 to $18.3 million during the six months ended June 30, 2016. Income tax expense is recognized on the statement of income during the six months ended June 30, 2016 at an effective rate of 36.4% of pretax income consistent with 36.4% during the six months ended June 30, 2015. The Company has a deferred tax asset of $857,000 related to stock options awarded in 2007. The stock options awarded in 2007 expire in January 2017. If these awards are not exercised, the Company will have to recognize additional tax expense equal to the amount of the deferred tax asset upon expiration. In the event that these options are exercised, the Company's tax deduction would be limited to the amount by which the fair market value of the stock, on the exercise date, exceeds the options strike price. Per ASC 718, the determination of a need for a valuation allowance against stock-based compensation awards by a company should not consider the current fair market value of its stock. Therefore, no valuation allowance has been recorded against these awards, even though these awards are currently out-of-the-money and may not be exercised. |
Offsetting of Assets and Liabil
Offsetting of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Offsetting of Assets and Liabilities [Abstract] | |
Offsetting of Assets and Liabilities | Note 10 – Offsetting of Assets and Liabilities The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. In addition, the Company enters into agreements under which it sells loans held for sale subject to an obligation to repurchase the same loans. Under these arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. As a result, these repurchase agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of assets. The obligation to repurchase the assets is reflected as a liability in the Company's consolidated statements of condition, while the securities and loans held for sale underlying the repurchase agreements remain in the respective investment securities and loans held for sale asset accounts. In other words, there is no offsetting or netting of the investment securities or loans held for sale assets with the repurchase agreement liabilities. One of the Company's two short-term repurchase agreements and all of the Company's long-term repurchase agreements are subject to master netting agreements, which set forth the rights and obligations for repurchase and offset. Under the master netting agreement, the Company is entitled to set off the collateral placed with a single counterparty against obligations owed to that counterparty. The following table presents the liabilities subject to an enforceable master netting agreement as of June 30, 2016 and December 31, 2015. Gross Recognized Liabilities Gross Amounts Offset Net Amounts Presented Gross Amounts Not Offset Net Amount (In Thousands) June 30, 2016 Repurchase Agreements Short-term $ 745 $ - $ 745 $ 745 $ - Long-term 84,000 - 84,000 84,000 - $ 84,745 $ - $ 84,745 $ 84,745 $ - December 31, 2015 Repurchase Agreements Short-term $ 7,203 $ - $ 7,203 $ 7,203 $ - Long-term 84,000 - 84,000 84,000 - $ 91,203 $ - $ 91,203 $ 91,203 $ - |
Commitments, Off-Balance Sheet
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities [Abstract] | |
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities | Note 11– Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. June 30, 2016 December 31, 2015 (In Thousands) Financial instruments whose contract amounts represent potential credit risk: Commitments to extend credit under amortizing loans (1) $ 27,130 $ 10,307 Commitments to extend credit under home equity lines of credit (2) 13,736 14,173 Unused portion of construction loans (3) 32,725 25,545 Unused portion of business lines of credit 15,134 16,392 Standby letters of credit 392 566 (1) (2) (3) Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements of the Company. The Company evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management's credit evaluation of the counter-party. Collateral obtained generally consists of mortgages on the underlying real estate. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company holds mortgages on the underlying real estate as collateral supporting those commitments for which collateral is deemed necessary. The Company has determined that there are no probable losses related to commitments to extend credit or the standby letters of credit as of June 30, 2016 and December 31, 2015. In the normal course of business, the Company, or it's subsidiaries, are involved in various legal proceedings. In the opinion of management, any liability resulting from pending proceedings would not be expected to have a material adverse effect on the Company's consolidated financial statements. Herrington, et al. v. Waterstone Mortgage Corporation Waterstone Mortgage Corporation is a defendant in a lawsuit that was filed in the Federal District Court for the Western District of Wisconsin and has been transferred to arbitration, alleging that Waterstone Mortgage Corporation violated the Fair Labor Standards Act and failed to pay loan officers consistent with their various contracts. Waterstone Mortgage Corporation is and will continue to vigorously defend its interests in this matter. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | Note 12 – Derivative Financial Instruments In connection with its mortgage banking activities, the Company enters into derivative financial instruments as part of its strategy to manage its exposure to changes in interest rates. Mortgage banking derivatives include interest rate lock commitments provided to customers to fund mortgage loans to be sold in the secondary market and forward commitments for the future delivery of such loans to third party investors. It is the Company's practice to enter into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of future changes in interest rates on its commitments to fund the loans as well as on its portfolio of mortgage loans held for sale. The Company's mortgage banking derivatives have not been designated as hedge relationships. These instruments are used to manage the Company's exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of ASC 815. Changes in the fair value of derivatives not designated in hedging relationships are recorded as a component of mortgage banking income in the Company's consolidated statements of operations. The Company does not use derivatives for speculative purposes. Forward commitments to sell mortgage loans represent commitments obtained by the Company from a secondary market agency to purchase mortgages from the Company at specified interest rates and within specified periods of time. Commitments to sell loans are made to mitigate interest rate risk on interest rate lock commitments to originate loans and loans held for sale. At June 30, 2016, the Company had forward commitments to sell mortgage loans with an aggregate notional amount of approximately $476.0 million and interest rate lock commitments with an aggregate notional amount of approximately $273.8 million. The fair value of the forward commitments to sell mortgage loans at June 30, 2016 included a loss of $2.9 million that is reported as a component of other liabilities on the Company's consolidated statement of financial condition. The fair value of the interest rate locks at June 30, 2016 included a gain of $5.5 million that is reported as a component of other assets on the Company's consolidated statements of financial condition. In determining the fair value of its derivative loan commitments, the Company considers the value that would be generated by the loan arising from exercise of the loan commitment when sold in the secondary mortgage market. That value includes the price that the loan is expected to be sold for in the secondary mortgage market. The fair value of these commitments is recorded on the consolidated statements of financial condition with the changes in fair value recorded as a component of mortgage banking income. Residential mortgage loans sold to others are predominantly conventional residential first lien mortgages. The Company's agreements to sell residential mortgage loans in the normal course of business usually require certain representations and warranties on the underlying loans sold related to credit information, loan documentation and collateral, which if subsequently are untrue or breached, could require the Company to repurchase certain loans affected. The Company has only been required to make insignificant repurchases as a result of breaches of these representations and warranties. The Company's agreements to sell residential mortgage loans also contain limited recourse provisions. The recourse provisions are limited in that the recourse provision ends after certain payment criteria have been met. With respect to these loans, repurchase could be required if defined delinquency issues arose during the limited recourse period. Given that the underlying loans delivered to buyers are predominantly conventional first lien mortgages and that historical experience shows negligible losses and insignificant repurchase activity, management believes that losses and repurchases under the limited recourse provisions will continue to be insignificant. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings (loss) per share | Note 13 – Earnings Per Share Earnings per share are computed using the two-class method. Basic earnings per share is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include unvested restricted stock awards. Unvested restricted stock awards issued in 2012 are considered participating securities because holders of these securities have the right to receive dividends at the same rate as holders of the Company's common stock. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding adjusted for the dilutive effect of all potential common shares. Presented below are the calculations for basic and diluted earnings per share: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 (In Thousands, except per share amounts) Net income $ 7,767 $ 5,284 $ 11,628 $ 8,300 Net income available to unvested restricted shares 5 83 7 126 Net income available to common stockholders $ 7,762 $ 5,201 $ 11,621 $ 8,174 Weighted average shares outstanding 26,919 29,841 26,942 31,098 Effect of dilutive potential common shares 285 350 301 315 Diluted weighted average shares outstanding 27,204 30,191 27,243 31,413 Basic earnings per share $ 0.29 $ 0.17 $ 0.43 $ 0.26 Diluted earnings per share $ 0.29 $ 0.17 $ 0.43 $ 0.26 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 14 – Fair Value Measurements ASC Topic 820, "Fair Value Measurements and Disclosures" defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. This accounting standard applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements. The standard also emphasizes that fair value (i.e., the price that would be received in an orderly transaction that is not a forced liquidation or distressed sale at the measurement date), among other things, is based on exit price versus entry price, should include assumptions about risk such as nonperformance risk in liability fair values, and is a market-based measurement, not an entity-specific measurement. When considering the assumptions that market participants would use in pricing the asset or liability, this accounting standard establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity's own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). The fair value hierarchy prioritizes inputs used to measure fair value into three broad levels. Level 1 inputs Level 2 inputs Level 3 inputs In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The following table presents information about our assets recorded in our consolidated statement of financial position at their fair value on a recurring basis as of June 30, 2016 and December 31, 2015, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. Fair Value Measurements Using June 30, 2016 Level 1 Level 2 Level 3 (In Thousands) Available for sale securities Mortgage-backed securities $ 86,830 $ - $ 86,830 $ - Collateralized mortgage obligations Government sponsored enterprise issued 68,967 - 68,967 - Government sponsored enterprise bonds 3,778 - 3,778 - Municipal securities 75,520 - 75,520 - Other debt securities 16,900 2,467 14,433 - Certificates of deposit 1,731 - 1,731 - Loans held for sale 208,807 - 208,807 - Mortgage banking derivative assets 5,488 - - 5,488 Mortgage banking derivative liabilities 2,917 - - 2,917 Fair Value Measurements Using December 31, 2015 Level 1 Level 2 Level 3 (In Thousands) Available for sale securities Mortgage-backed securities $ 96,667 $ - $ 96,667 $ - Collateralized mortgage obligations Government sponsored enterprise issued 70,428 - 70,428 - Government sponsored enterprise bonds 3,746 - 3,746 - Municipal securities 79,159 - 79,159 - Other debt securities 16,963 2,600 14,363 - Certificates of deposit 2,695 - 2,695 - Loans held for sale 166,516 - 166,516 - Mortgage banking derivative assets 2,313 - - 2,313 Mortgage banking derivative liabilities 125 - - 125 The following summarizes the valuation techniques for assets recorded in our consolidated statements of financial condition at their fair value on a recurring basis: Available for sale securities – The Company's investment securities classified as available for sale include: mortgage-backed securities, collateralized mortgage obligations, government sponsored enterprise bonds, municipal securities and other debt securities. The fair value of mortgage-backed securities, collateralized mortgage obligations and government sponsored enterprise bonds are determined by a third party valuation source using observable market data utilizing a matrix or multi-dimensional relational pricing model. Standard inputs to these models include observable market data such as benchmark yields, reported trades, broker quotes, issuer spreads, benchmark securities, prepayment models and bid/offer market data. For securities with an early redemption feature, an option adjusted spread model is utilized to adjust the issuer spread. These model and matrix measurements are classified as Level 2 in the fair value hierarchy. The fair value of municipal securities is determined by a third party valuation source using observable market data utilizing a multi-dimensional relational pricing model. Standard inputs to this model include observable market data such as benchmark yields, reported trades, broker quotes, rating updates and issuer spreads. These model measurements are classified as Level 2 in the fair value hierarchy. The fair value of other debt securities, which includes a trust preferred security issued by a financial institution, is determined through quoted prices in active markets and is classified as Level 1 in the fair value hierarchy. Loans held for sale – The Company carries loans held for sale at fair value under the fair value option model. Fair value is generally determined by estimating a gross premium or discount, which is derived from pricing currently observable in the secondary market, principally from observable prices for forward sale commitments. Loans held-for-sale are considered to be Level 2 in the fair value hierarchy of valuation techniques. Mortgage banking derivatives - Mortgage banking derivatives include interest rate lock commitments to originate residential loans held for sale to individual customers and forward commitments to sell residential mortgage loans to various investors. The Company utilizes a valuation model to estimate the fair value of its interest rate lock commitments to originate residential mortgage loans held for sale, which includes applying a pull through rate based upon historical experience and the current interest rate environment and then multiplying by quoted investor prices. The Company also utilizes a valuation model to estimate the fair value of its forward commitments to sell residential loans, which includes matching specific terms and maturities of the forward commitments against applicable investor pricing available. While there are Level 2 and 3 inputs used in the valuation models, the Company has determined that one or more of the inputs significant in the valuation of both of the mortgage banking derivatives fall within Level 3 of the fair value hierarchy. The table below presents reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during 2016 and 2015. Mortgage banking derivatives, net (In Thousands) Balance at December 31, 2014 $ 999 Mortgage derivative gain, net 1,189 Balance at December 31, 2015 $ 2,188 Mortgage derivative gain, net 383 Balance at June 30, 2016 $ 2,571 There were no transfers in or out of Level 1, 2 or 3 measurements during the periods. Assets Recorded at Fair Value on a Non-recurring Basis The following tables present information about our assets recorded in our consolidated statement of financial position at their fair value on a non-recurring basis as of June 30, 2016 and December 31, 2015, and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value. Fair Value Measurements Using June 30, 2016 Level 1 Level 2 Level 3 (In Thousands) Impaired loans, net (1) $ 2,731 $ - $ - $ 2,731 Real estate owned 8,637 - - 8,637 Impaired mortgage servicing rights 1,564 - - 1,564 Fair Value Measurements Using December 31, 2015 Level 1 Level 2 Level 3 (In Thousands) Impaired loans, net (1) $ 8,024 $ - $ - $ 8,024 Real estate owned 9,190 - - 9,190 (1) Represents collateral-dependent impaired loans, net, which are included in loans. Loans – We do not record loans at fair value on a recurring basis. On a non-recurring basis, loans determined to be impaired are analyzed to determine whether a collateral shortfall exists, and if such a shortfall exists, are recorded on our consolidated statements of financial condition at net realizable value of the underlying collateral. Fair value is determined based on third party appraisals. Appraised values are adjusted to consider disposition costs and also to take into consideration the age of the most recent appraisal. Given the significance of the adjustments made to appraised values necessary to estimate the fair value of impaired loans, loans that have been deemed to be impaired are considered to be Level 3 in the fair value hierarchy of valuation techniques. At June 30, 2016, loans determined to be impaired with an outstanding balance of $3.5 million were carried net of specific reserves of $0.8 million for a fair value of $2.7 million. At December 31, 2015, loans determined to be impaired with an outstanding balance of $9.6 million were carried net of specific reserves of $1.6 million for a fair value of $8.0 million. Impaired loans collateralized by assets which are valued in excess of the net investment in the loan do not require any specific reserves. Real estate owned – On a non-recurring basis, real estate owned, is recorded in our consolidated statements of financial condition at the lower of cost or fair value. Fair value is determined based on third party appraisals and, if less than the carrying value of the foreclosed loan, the carrying value of the real estate owned is adjusted to the fair value. Appraised values are adjusted to consider disposition costs and also to take into consideration the age of the most recent appraisal. Given the significance of the adjustments made to appraised values necessary to estimate the fair value of the properties, real estate owned is considered to be Level 3 in the fair value hierarchy of valuation techniques. Changes in the value of real estate owned totaled $351,000 and $1.2 million during the six months ended June 30, 2016 and 2015, respectively and are recorded in real estate owned expense. At June 30, 2016 and December 31, 2015, real estate owned totaled $8.6 million and $9.2 million, respectively. Mortgage servicing rights - The Company utilizes an independent valuation from a third party which uses a discounted cash flow model to estimate the fair value of mortgage servicing rights. The model utilizes prepayment assumptions to project cash flows related to the mortgage servicing rights based upon the current interest rate environment, which is then discounted to estimate an expected fair value of the mortgage servicing rights. The model considers characteristics specific to the underlying mortgage portfolio, such as: contractually specified servicing fees, prepayment assumptions, delinquency rates, late charges and costs to service. Given the significance of the unobservable inputs utilized in the estimation process, mortgage servicing rights are classified as Level 3 within the fair value hierarchy. The Company records the mortgage servicing rights at the lower of amortized cost or fair value. At June 30, 2016, the Company determined that $1.6 million of mortgage servicing rights were temporarily impaired, and as a result, recorded an impairment valuation allowance of $150,000. At , there was no impairment identified for mortgage servicing rights. For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of June 30, 2016, the significant unobservable inputs used in the fair value measurements were as follows: Significant Unobservable Input Value Fair Value at June 30, 2016 Valuation Technique Significant Unobservable Inputs Minimum Value Maximum Value Mortgage banking derivatives $ 2,571 Pricing models Pull through rate 38.0 % 100.0 % Impaired loans 2,731 Market approach Discount rates applied to appraisals 15.0 % 30.0 % Real estate owned 8,637 Market approach Discount rates applied to appraisals 0.0 % 85.7 % Impaired mortgage servicing rights 1,564 Pricing models Prepayment rate 7.8 % 37.5 % Discount rate 10.0 % 11.0 % Cost to service $ 75.76 $ 571.60 The significant unobservable input used in the fair value measurement of the Company's mortgage banking derivatives, including interest rate lock commitments, is the loan pull through rate. This represents the percentage of loans currently in a lock position which the Company estimates will ultimately close. Generally, the fair value of an interest rate lock commitment will be positively (negatively) impacted when the prevailing interest rate is lower (higher) than the interest rate lock commitment. Generally, an increase in the pull through rate will result in the fair value of the interest rate lock increasing when in a gain position, or decreasing when in a loss position. The pull through rate is largely dependent on the loan processing stage that a loan is currently in and the change in prevailing interest rates from the time of the rate lock. The pull through rate is computed using historical data and the ratio is periodically reviewed by the Company. The significant unobservable inputs used in the fair value measurement of collateral for collateral-dependent impaired loans and real estate owned included in the above table primarily relate to discounting criteria applied to independent appraisals received with respect to the collateral. Discounts applied to the appraisals are dependent on the vintage of the appraisal as well as the marketability of the property. The discount factor is computed using actual realization rates on properties that have been foreclosed upon and liquidated in the open market. The significant unobservable inputs used in the fair value measurement of mortgage servicing rights include the prepayment rate, discount rate and cost to service. The prepayment rate represents the assumed rate of prepayment of the outstanding principal balance of the underlying mortgage notes. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. Although the prepayment rate and discount rate are not directly interrelated, they will generally move in opposite directions. Fair value information about financial instruments follows, whether or not recognized in the consolidated statements of financial condition, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. Certain financial instruments and all nonfinancial instruments are excluded from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The carrying amounts and fair values of the Company's financial instruments consist of the following: June 30, 2016 December 31, 2015 Carrying amount Fair Value Carrying amount Fair Value Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In Thousands) Financial Assets Cash and cash equivalents $ 82,456 $ 82,456 $ 72,456 $ 10,000 $ - $ 100,471 $ 100,471 $ 100,471 $ - $ - Securities available-for-sale 253,726 253,726 2,467 251,259 - 269,658 269,658 2,600 267,058 - Loans held for sale 208,807 208,807 - 208,807 - 166,516 166,516 - 166,516 - Loans receivable 1,130,036 1,172,946 - - 1,172,946 1,114,934 1,165,370 - - 1,165,370 FHLB stock 14,850 14,850 - 14,850 - 19,500 19,500 - 19,500 - Accrued interest receivable 4,129 4,129 4,129 - - 4,108 4,108 4,108 - - Mortgage servicing rights 2,005 2,058 - - 2,058 1,422 1,658 - - 1,658 Mortgage banking derivative assets 5,488 5,488 - - 5,488 2,313 2,313 - - 2,313 Financial Liabilities Deposits 942,709 943,154 260,609 682,545 - 893,361 894,015 243,304 650,711 - Advance payments by borrowers for taxes 16,011 16,011 16,011 - - 3,661 3,661 3,661 - - Borrowings 414,745 423,122 - 423,122 - 441,203 463,238 - 463,238 - Accrued interest payable 1,431 1,431 1,431 - - 1,642 1,642 1,642 - - Mortgage banking derivative liabilities 2,917 2,917 - - 2,917 125 125 - - 125 The following methods and assumptions were used by the Company in determining its fair value disclosures for financial instruments. Cash and Cash Equivalents The carrying amount reported in the consolidated statements of financial condition for cash and cash equivalents is a reasonable estimate of fair value. Securities The fair value of securities is generally determined by a third party valuation source using observable market data utilizing a matrix or multi-dimensional relational pricing model. Standard inputs to these models include observable market data such as benchmark yields, reported trades, broker quotes, issuer spreads, benchmark securities and bid/offer market data. For securities with an early redemption feature, an option adjusted spread model is utilized to adjust the issuer spread. Prepayment models are used for mortgage related securities with prepayment features. Loans Held for Sale Fair value is estimated using the prices of the Company's existing commitments to sell such loans and/or the quoted market price for commitments to sell similar loans. Loans Receivable Loans determined to be impaired are analyzed to determine whether a collateral shortfall exists, and if such a shortfall exists, are recorded on our consolidated statements of financial condition at fair value. Fair value is determined based on third party appraisals. Appraised values are adjusted to consider disposition costs and also to take into consideration the age of the most recent appraisal. With respect to loans that are not considered to be impaired, fair value is estimated by discounting the future contractual cash flows using discount rates that reflect a current rate offered to borrowers of similar credit standing for the remaining term to maturity. This method of estimating fair value does not incorporate the exit-price concept of fair value prescribed by ASC 820-10 and generally produces a higher fair value. FHLB Stock For FHLB stock, the carrying amount is the amount at which shares can be redeemed with the FHLB and is a reasonable estimate of fair value. Deposits and Advance Payments by Borrowers for Taxes The fair values for interest-bearing and noninterest-bearing negotiable order of withdrawal accounts, savings accounts, and money market accounts are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). The fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates of similar remaining maturities to a schedule of aggregated expected monthly maturities of the outstanding certificates of deposit. The advance payments by borrowers for taxes are equal to their carrying amounts at the reporting date. Borrowings Fair values for borrowings are estimated using a discounted cash flow calculation that applies current interest rates to estimated future cash flows of the borrowings. Accrued Interest Payable and Accrued Interest Receivable For accrued interest payable and accrued interest receivable, the carrying amount is a reasonable estimate of fair value. Commitments to Extend Credit and Standby Letters of Credit Commitments to extend credit and standby letters of credit are generally not marketable. Furthermore, interest rates on any amounts drawn under such commitments would be generally established at market rates at the time of the draw. Fair values for the Company's commitments to extend credit and standby letters of credit are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the counterparty's credit standing, and discounted cash flow analyses. The fair value of the Company's commitments to extend credit was not material at June 30, 2016 and December 31, 2015. Mortgage Banking Derivative Assets and Liabilities Mortgage banking derivatives include interest rate lock commitments to originate residential loans held for sale to individual customers and forward commitments to sell residential mortgage loans to various investors. The Company relies on a valuation model to estimate the fair value of its interest rate lock commitments to originate residential mortgage loans held for sale, which includes applying a pull through rate based upon historical experience and the current interest rate environment, and then multiplying by quoted investor prices. The Company also relies on a valuation model to estimate the fair value of its forward commitments to sell residential loans, which includes matching specific terms and maturities of the forward commitments against applicable investor pricing available. On the Company's Consolidated Statements of Condition, instruments that have a positive fair value are included in prepaid expenses and other assets, and those instruments that have a negative fair value are included in other liabilities. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segments and Related Information | Note 15 – Segment Reporting Selected financial and descriptive information is required to be provided about reportable operating segments, considering a "management approach" concept as the basis for identifying reportable segments. The management approach is based on the way that management organizes the segments within the enterprise for making operating decisions, allocating resources, and assessing performance. Consequently, the segments are evident from the structure of the enterprise's internal organization, focusing on financial information that an enterprise's chief operating decision-makers use to make decisions about the enterprise's operating matters. The Company has determined that it has two reportable segments: community banking and mortgage banking. The Company's operating segments are presented based on its management structure and management accounting practices. The structure and practices are specific to the Company and therefore, the financial results of the Company's business segments are not necessarily comparable with similar information for other financial institutions. Community Banking The Community Banking segment provides consumer and business banking products and services to customers primarily within Southeastern Wisconsin along with a loan production office in Minneapolis, Minnesota. Within this segment, the following products and services are provided: (1) lending solutions such as residential mortgages, home equity loans and lines of credit, personal and installment loans, real estate financing, business loans, and business lines of credit; (2) deposit and transactional solutions such as checking, credit, debit and pre-paid cards, online banking and bill pay, and money transfer services; (3) investable funds solutions such as savings, money market deposit accounts, IRA accounts, certificates of deposit, and (4) fixed and variable annuities, insurance as well as trust and investment management accounts. Consumer products include loan and deposit products: mortgage, home equity loans and lines, personal term loans, demand deposit accounts, interest bearing transaction accounts and time deposits. Consumer products also include personal investment services. Business banking products include secured and unsecured lines and term loans for working capital, inventory and general corporate use, commercial real estate construction loans, demand deposit accounts, interest bearing transaction accounts and time deposits. Mortgage Banking The Mortgage Banking segment provides residential mortgage loans for the primary purpose of sale on the secondary market. Mortgage banking products and services are provided by offices in 21 states. As of or for the three months ended June 30, 2016 Community Banking Mortgage Banking Holding Company and Other Consolidated (In Thousands) Net interest income $ 9,962 $ 132 $ 71 $ 10,165 Provision for loan losses - - - - Net interest income after provision for loan losses 9,962 132 71 10,165 Noninterest income 1,203 35,400 (252 ) 36,351 Noninterest expenses: Compensation, payroll taxes, and other employee benefits 4,037 21,787 (115 ) 25,709 Occupancy, office furniture and equipment 816 1,603 - 2,419 FDIC insurance premiums 155 - - 155 Real estate owned 163 - - 163 Other 1,264 4,615 (94 ) 5,785 Total noninterest expenses 6,435 28,005 (209 ) 34,231 Income before income taxes 4,730 7,527 28 12,285 Income tax expense 1,421 3,087 10 4,518 Net income $ 3,309 $ 4,440 $ 18 $ 7,767 Total assets $ 1,793,197 $ 246,295 $ (240,226 ) $ 1,799,266 As of or for the three months ended June 30, 2015 Community Banking Mortgage Banking Holding Company and Other Consolidated (In Thousands) Net interest income $ 9,742 $ 230 $ 88 $ 10,060 Provision for loan losses 650 155 - 805 Net interest income after provision for loan losses 9,092 75 88 9,255 Noninterest income 920 30,231 (111 ) 31,040 Noninterest expenses: Compensation, payroll taxes, and other employee benefits 3,807 19,572 (107 ) 23,272 Occupancy, office furniture and equipment 801 1,468 - 2,269 FDIC insurance premiums 271 - - 271 Real estate owned 687 (1 ) - 686 Other 1,135 4,220 94 5,449 Total noninterest expenses 6,701 25,259 (13 ) 31,947 Income before income taxes 3,311 5,047 (10 ) 8,348 Income tax expense 917 2,112 35 3,064 Net income (loss) $ 2,394 $ 2,935 $ (45 ) $ 5,284 Total assets $ 1,706,005 $ 231,948 $ (200,730 ) $ 1,737,223 As of or for the six months ended June 30, 2016 Community Banking Mortgage Banking Holding Company and Other Consolidated (In Thousands) Net interest income $ 19,733 $ 277 $ 138 $ 20,148 Provision for loan losses 100 105 - 205 Net interest income after provision for loan losses 19,633 172 138 19,943 Noninterest income 1,925 56,333 (462 ) 57,796 Noninterest expenses: Compensation, payroll taxes, and other employee benefits 8,392 35,231 (228 ) 43,395 Occupancy, office furniture and equipment 1,648 3,107 - 4,755 FDIC insurance premiums 360 - - 360 Real estate owned 307 - - 307 Other 2,453 8,337 (154 ) 10,636 Total noninterest expenses 13,160 46,675 (382 ) 59,453 Income before income taxes 8,398 9,830 58 18,286 Income tax expense 2,604 4,030 24 6,658 Net income $ 5,794 $ 5,800 $ 34 $ 11,628 As of or for the six months ended June 30, 2015 Community Banking Mortgage Banking Holding Company and Other Consolidated (In Thousands) Net interest income $ 18,975 $ 350 $ 171 $ 19,496 Provision for loan losses 950 190 - 1,140 Net interest income after provision for loan losses 18,025 160 171 18,356 Noninterest income 1,678 51,557 (162 ) 53,073 Noninterest expenses: Compensation, payroll taxes, and other employee benefits 8,535 33,027 (212 ) 41,350 Occupancy, office furniture and equipment 1,647 3,065 - 4,712 FDIC insurance premiums 607 - - 607 Real estate owned 1,214 15 - 1,229 Other 2,104 8,199 174 10,477 Total noninterest expenses 14,107 44,306 (38 ) 58,375 Income before income taxes 5,596 7,411 47 13,054 Income tax expense 1,582 3,101 71 4,754 Net income (loss) $ 4,014 $ 4,310 $ (24 ) $ 8,300 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Basis of Presentation [Abstract] | |
Basis of presentation | The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles ("GAAP") for interim financial information, Rule 10-01 of Regulation S-X and the instructions to Form 10-Q. The financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position, results of operations, changes in shareholders' equity, and cash flows of the Company for the periods presented. |
Use of estimates | The preparation of the unaudited consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include the allowance for loan losses, deferred income taxes and real estate owned. Actual results could differ from those estimates. Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications did not result in any changes to previously reported net income or shareholders' equity. Impact of Recent Accounting Pronouncements ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326)" ASU 2016-02 "Lease (Topic 842)" |
Securities Available for Sale (
Securities Available for Sale (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Securities Available for Sale [Abstract] | |
Impairment of investment securities | The Company reviews the investment securities portfolio on a quarterly basis to monitor its exposure to other-than-temporary impairment. In evaluating whether a security's decline in market value is other-than-temporary, management considers the length of time and extent to which the fair value has been less than cost, the financial condition of the issuer and the underlying obligors, quality of credit enhancements, volatility of the fair value of the security, the expected recovery period of the security and ratings agency evaluations. In addition, the Company may also evaluate payment structure, whether there are defaulted payments or expected defaults, prepayment speeds and the value of any underlying collateral. |
Derivative Financial Instrume27
Derivative Financial Instruments (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Financial Instruments [Abstract] | |
Derivative financial instruments | In connection with its mortgage banking activities, the Company enters into derivative financial instruments as part of its strategy to manage its exposure to changes in interest rates. Mortgage banking derivatives include interest rate lock commitments provided to customers to fund mortgage loans to be sold in the secondary market and forward commitments for the future delivery of such loans to third party investors. It is the Company's practice to enter into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of future changes in interest rates on its commitments to fund the loans as well as on its portfolio of mortgage loans held for sale. The Company's mortgage banking derivatives have not been designated as hedge relationships. These instruments are used to manage the Company's exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of ASC 815. Changes in the fair value of derivatives not designated in hedging relationships are recorded as a component of mortgage banking income in the Company's consolidated statements of operations. The Company does not use derivatives for speculative purposes. Forward commitments to sell mortgage loans represent commitments obtained by the Company from a secondary market agency to purchase mortgages from the Company at specified interest rates and within specified periods of time. Commitments to sell loans are made to mitigate interest rate risk on interest rate lock commitments to originate loans and loans held for sale. At June 30, 2016, the Company had forward commitments to sell mortgage loans with an aggregate notional amount of approximately $476.0 million and interest rate lock commitments with an aggregate notional amount of approximately $273.8 million. The fair value of the forward commitments to sell mortgage loans at June 30, 2016 included a loss of $2.9 million that is reported as a component of other liabilities on the Company's consolidated statement of financial condition. The fair value of the interest rate locks at June 30, 2016 included a gain of $5.5 million that is reported as a component of other assets on the Company's consolidated statements of financial condition. In determining the fair value of its derivative loan commitments, the Company considers the value that would be generated by the loan arising from exercise of the loan commitment when sold in the secondary mortgage market. That value includes the price that the loan is expected to be sold for in the secondary mortgage market. The fair value of these commitments is recorded on the consolidated statements of financial condition with the changes in fair value recorded as a component of mortgage banking income. Residential mortgage loans sold to others are predominantly conventional residential first lien mortgages. The Company's agreements to sell residential mortgage loans in the normal course of business usually require certain representations and warranties on the underlying loans sold related to credit information, loan documentation and collateral, which if subsequently are untrue or breached, could require the Company to repurchase certain loans affected. The Company has only been required to make insignificant repurchases as a result of breaches of these representations and warranties. The Company's agreements to sell residential mortgage loans also contain limited recourse provisions. The recourse provisions are limited in that the recourse provision ends after certain payment criteria have been met. With respect to these loans, repurchase could be required if defined delinquency issues arose during the limited recourse period. Given that the underlying loans delivered to buyers are predominantly conventional first lien mortgages and that historical experience shows negligible losses and insignificant repurchase activity, management believes that losses and repurchases under the limited recourse provisions will continue to be insignificant. |
Securities Available for Sale28
Securities Available for Sale (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Securities Available for Sale [Abstract] | |
Amortized cost and fair values of investment in securities available for sale | The amortized cost and fair values of the Company's investment in securities available for sale follow: June 30, 2016 Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In Thousands) Mortgage-backed securities $ 84,445 $ 2,388 $ (3 ) $ 86,830 Collateralized mortgage obligations: Government sponsored enterprise issued 67,855 1,112 - 68,967 Mortgage-related securities 152,300 3,500 (3 ) 155,797 Government sponsored enterprise bonds 3,750 28 - 3,778 Municipal securities 72,371 3,155 (6 ) 75,520 Other debt securities 17,400 128 (628 ) 16,900 Debt securities 93,521 3,311 (634 ) 96,198 Certificates of deposit 1,715 16 - 1,731 $ 247,536 $ 6,827 $ (637 ) $ 253,726 December 31, 2015 Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In Thousands) Mortgage-backed securities $ 95,911 $ 1,004 $ (248 ) $ 96,667 Collateralized mortgage obligations: Government sponsored enterprise issued 70,605 123 (300 ) 70,428 Mortgage-related securities 166,516 1,127 (548 ) 167,095 Government sponsored enterprise bonds 3,750 - (4 ) 3,746 Municipal securities 77,509 1,730 (80 ) 79,159 Other debt securities 17,401 209 (647 ) 16,963 Debt securities 98,660 1,939 (731 ) 99,868 Certificates of deposit 2,695 4 (4 ) 2,695 $ 267,871 $ 3,070 $ (1,283 ) $ 269,658 |
Amortized cost and fair values of investment securities by contractual maturity | The amortized cost and fair values of investment securities by contractual maturity at June 30, 2016 are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value (In Thousands) Debt and other securities Due within one year $ 10,945 $ 11,026 Due after one year through five years 19,526 19,799 Due after five years through ten years 42,011 44,103 Due after ten years 22,754 23,001 Mortgage-related securities 152,300 155,797 $ 247,536 $ 253,726 |
Total proceeds and gross gains and losses from sales of investment securities available for sale | Gross unrealized losses on securities available for sale and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows: June 30, 2016 Less than 12 months 12 months or longer Total Fair value Unrealized loss Fair value Unrealized loss Fair value Unrealized loss (In Thousands) Mortgage-backed securities $ - $ - $ 2,177 $ (3 ) $ 2,177 $ (3 ) Collateralized mortgage obligations: Government sponsored enterprise issued - - - - - - Municipal securities 6,603 (6 ) - - 6,603 (6 ) Other debt securities - - 9,372 (628 ) 9,372 (628 ) Certificates of deposit - - - - - - $ 6,603 $ (6 ) $ 11,549 $ (631 ) $ 18,152 $ (637 ) December 31, 2015 Less than 12 months 12 months or longer Total Fair value Unrealized loss Fair value Unrealized loss Fair value Unrealized loss (In Thousands) Mortgage-backed securities $ 18,488 $ (163 ) $ 5,577 $ (85 ) $ 24,065 $ (248 ) Collateralized mortgage obligations: Government sponsored enterprise issued 48,281 (300 ) - - 48,281 (300 ) Government sponsored enterprise bonds 3,246 (4 ) - - 3,246 (4 ) Municipal securities 9,409 (18 ) 5,555 (62 ) 14,964 (80 ) Other debt securities 14,363 (647 ) - - 14,363 (647 ) Certificates of deposit 976 (4 ) - - 976 (4 ) $ 94,763 $ (1,136 ) $ 11,132 $ (147 ) $ 105,895 $ (1,283 ) |
Loans Receivable (Tables)
Loans Receivable (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Loan Receivable [Abstract] | |
Schedule of Components of Loans Receivable | Loans receivable at June 30, 2016 and December 31, 2015 are summarized as follows: June 30, 2016 December 31, 2015 (In Thousands) Mortgage loans: Residential real estate: One- to four-family $ 383,029 $ 381,992 Multi-family 544,753 547,250 Home equity 23,173 24,326 Construction and land 16,842 19,148 Commercial real estate 134,537 118,820 Consumer 342 361 Commercial loans 27,360 23,037 $ 1,130,036 $ 1,114,934 The Company provides several types of loans to its customers, including residential, construction, commercial and consumer loans. Significant loan concentrations are considered to exist for a financial institution when there are amounts loaned to one borrower or to multiple borrowers engaged in similar activities that would cause them to be similarly impacted by economic or other conditions. While the Company's credit risks are geographically concentrated in the Milwaukee metropolitan area, there are no concentrations with individual or groups of related borrowers. Qualifying loans receivable totaling $885.2 million and $872.8 million at June 30, 2016 and December 31, 2015, respectively, are pledged as collateral against $330.0 million in outstanding Federal Home Loan Bank of Chicago (FHLBC) advances under a blanket security agreement. As of June 30, 2016 and December 31, 2015, there were no loans 90 or more days past due and still accruing interest. |
Analysis of Past Due Loans Receivable | An analysis of past due loans receivable as of June 30, 2016 and December 31, 2015 follows: As of June 30, 2016 1-59 Days Past Due (1) 60-89 Days Past Due (2) 90 Days or Greater Total Past Due Current (3) Total Loans (In Thousands) Mortgage loans: Residential real estate: One- to four-family $ 1,064 $ 99 $ 5,441 $ 6,604 $ 376,425 $ 383,029 Multi-family 379 - 700 1,079 543,674 544,753 Home equity 30 - 58 88 23,085 23,173 Construction and land - - 66 66 16,776 16,842 Commercial real estate - - 209 209 134,328 134,537 Consumer - - - - 342 342 Commercial loans - 2 26 28 27,332 27,360 Total $ 1,473 $ 101 $ 6,500 $ 8,074 $ 1,121,962 $ 1,130,036 As of December 31, 2015 1-59 Days Past Due (1) 60-89 Days Past Due (2) 90 Days or Greater Total Past Due Current (3) Total Loans (In Thousands) Mortgage loans: Residential real estate: One- to four-family $ 851 $ 1,133 $ 6,503 $ 8,487 $ 373,505 $ 381,992 Multi-family — 207 1,858 2,065 545,185 547,250 Home equity 255 96 110 461 23,865 24,326 Construction and land - - 238 238 18,910 19,148 Commercial real estate 57 - 223 280 118,540 118,820 Consumer - - - - 361 361 Commercial loans - - - - 23,037 23,037 Total $ 1,163 $ 1,436 $ 8,932 $ 11,531 $ 1,103,403 $ 1,114,934 (1) Includes $447,000 and $315,000 at June 30, 2016 and December 31, 2015, respectively, which are on non-accrual status. (2) Includes $32,000 and $467,000 at June 30, 2016 and December 31, 2015, respectively, which are on non-accrual status. (3) Includes $4.4 million and $7.9 million at June 30, 2016 and December 31, 2015, respectively, which are on non-accrual status. |
Allowance for Loan Losses | A summary of the activity for the six months ended June 30, 2016 and 2015 in the allowance for loan losses follows: One- to Four- Family Multi-Family Home Equity Construction and Land Commercial Real Estate Consumer Commercial Total (In Thousands) Six months ended June 30, 2016 Balance at beginning of period $ 7,763 $ 5,000 $ 433 $ 904 $ 1,680 $ 9 $ 396 $ 16,185 Provision (credit) for loan losses (103 ) (5 ) (2 ) (13 ) 52 1 275 205 Charge-offs (464 ) (445 ) (62 ) (3 ) - - - (974 ) Recoveries 178 59 19 33 - - - 289 Balance at end of period $ 7,374 $ 4,609 $ 388 $ 921 $ 1,732 $ 10 $ 671 $ 15,705 Six months ended June 30, 2015 Balance at beginning of period $ 9,877 $ 5,358 $ 422 $ 687 $ 1,951 $ 8 $ 403 $ 18,706 Provision (credit) for loan losses 1,402 (147 ) (54 ) 47 (115 ) (2 ) 9 1,140 Charge-offs (1,220 ) (1,304 ) (48 ) (47 ) (45 ) - - (2,664 ) Recoveries 289 753 95 33 5 3 - 1,178 Balance at end of period $ 10,348 $ 4,660 $ 415 $ 720 $ 1,796 $ 9 $ 412 $ 18,360 |
Schedule of Allowance for Loan Loss for Loans Evaluated Individually and Collectively For Impairment | A summary of the allowance for loan loss for loans evaluated individually and collectively for impairment by collateral class as of June 30, 2016 follows: One- to Four- Family Multi- Family Home Equity Construction and Land Commercial Real Estate Consumer Commercial Total (In Thousands) Allowance related to loans individually evaluated for impairment $ 605 $ - $ 75 $ - $ 88 $ - $ 2 $ 770 Allowance related to loans collectively evaluated for impairment 6,769 4,609 313 921 1,644 10 669 14,935 Balance at end of period $ 7,374 $ 4,609 $ 388 $ 921 $ 1,732 $ 10 $ 671 $ 15,705 Loans individually evaluated for impairment $ 12,124 $ 4,287 $ 319 $ 504 $ 1,631 $ - $ 48 $ 18,913 Loans collectively evaluated for impairment 370,905 540,466 22,854 16,338 132,906 342 27,312 1,111,123 Total gross loans $ 383,029 $ 544,753 $ 23,173 $ 16,842 $ 134,537 $ 342 $ 27,360 $ 1,130,036 A summary of the allowance for loan loss for loans evaluated individually and collectively for impairment by collateral class as of December 31, 2015 follows: One- to Four-Family Multi- Family Home Equity Construction and Land Commercial Real Estate Consumer Commercial Total (In Thousands) Allowance related to loans individually evaluated for impairment $ 1,114 $ 242 $ 108 $ 3 $ 106 $ - $ 3 $ 1,576 Allowance related to loans collectively evaluated for impairment 6,649 4,758 325 901 1,574 9 393 14,609 Balance at end of period $ 7,763 $ 5,000 $ 433 $ 904 $ 1,680 $ 9 $ 396 $ 16,185 Loans individually evaluated for impairment $ 18,385 $ 5,100 $ 472 $ 1,795 $ 1,766 $ - $ 27 $ 27,545 Loans collectively evaluated for impairment 363,607 542,150 23,854 17,353 117,054 361 23,010 1,087,389 Total gross loans $ 381,992 $ 547,250 $ 24,326 $ 19,148 $ 118,820 $ 361 $ 23,037 $ 1,114,934 |
Internal Risk Rating of Loans Receivable | The following table presents information relating to the Company's internal risk ratings of its loans receivable as of June 30, 2016 and December 31, 2015: One to Four- Family Multi-Family Home Equity Construction and Land Commercial Real Estate Consumer Commercial Total (In Thousands) At June 30, 2016 Substandard $ 14,271 $ 1,757 $ 406 $ 66 $ 1,631 $ - $ 47 $ 18,178 Watch 9,800 2,931 113 874 1,465 - 3,070 18,253 Pass 358,958 540,065 22,654 15,902 131,441 342 24,243 1,093,605 $ 383,029 $ 544,753 $ 23,173 $ 16,842 $ 134,537 $ 342 $ 27,360 $ 1,130,036 At December 31, 2015 Substandard $ 19,148 $ 2,553 $ 684 $ 1,794 $ 1,766 $ - $ 55 $ 26,000 Watch 11,352 3,634 128 - 1,161 - 402 16,677 Pass 351,492 541,063 23,514 17,354 115,893 361 22,580 1,072,257 $ 381,992 $ 547,250 $ 24,326 $ 19,148 $ 118,820 $ 361 $ 23,037 $ 1,114,934 |
Impaired Loan Receivables | The following tables present data on impaired loans at June 30, 2016 and December 31, 2015. As of or for the Six Months Ended June 30, 2016 Recorded Investment Unpaid Principal Reserve Cumulative Charge-Offs Average Recorded Investment Interest Paid (In Thousands) Total Impaired with Reserve One- to four-family $ 3,040 $ 3,080 $ 605 $ 40 $ 3,066 $ 69 Multi-family - - - - - - Home equity 163 163 75 - 167 7 Construction and land - - - - - - Commercial real estate 296 705 88 409 303 6 Consumer - - - - - - Commercial 2 2 2 - 3 - 3,501 3,950 770 449 3,539 82 Total Impaired with no Reserve One- to four-family 9,084 10,509 - 1,425 9,340 179 Multi-family 4,287 5,315 - 1,028 4,313 118 Home equity 156 156 - - 156 2 Construction and land 504 504 - - 780 12 Commercial real estate 1,335 1,335 - - 1,397 31 Consumer - - - - - - Commercial 46 46 - - 48 1 15,412 17,865 - 2,453 16,034 343 Total Impaired One- to four-family 12,124 13,589 605 1,465 12,406 248 Multi-family 4,287 5,315 - 1,028 4,313 118 Home equity 319 319 75 - 323 9 Construction and land 504 504 - - 780 12 Commercial real estate 1,631 2,040 88 409 1,700 37 Consumer - - - - - - Commercial 48 48 2 - 51 1 $ 18,913 $ 21,815 $ 770 $ 2,902 $ 19,573 $ 425 As of or for the Year Ended December 31, 2015 Recorded Investment Unpaid Principal Reserve Cumulative Charge-Offs Average Recorded Investment Interest Paid (In Thousands) Total Impaired with Reserve One- to four-family $ 7,903 $ 8,923 $ 1,114 $ 1,020 $ 8,113 $ 393 Multi-family 1,055 1,055 242 - 1,044 42 Home equity 169 169 108 - 174 10 Construction and land 156 269 3 113 155 - Commercial real estate 314 723 106 409 367 23 Consumer - - - - - - Commercial 3 3 3 - 5 1 9,600 11,142 1,576 1,542 9,858 469 Total Impaired with no Reserve One- to four-family 10,482 11,991 - 1,509 10,676 500 Multi-family 4,045 5,090 - 1,045 4,106 245 Home equity 303 303 - - 307 13 Construction and land 1,639 1,639 - - 1,827 62 Commercial real estate 1,452 1,452 - - 1,458 72 Consumer - - - - - - Commercial 24 24 - - 29 2 17,945 20,499 - 2,554 18,403 894 Total Impaired One- to four-family 18,385 20,914 1,114 2,529 18,789 893 Multi-family 5,100 6,145 242 1,045 5,150 287 Home equity 472 472 108 - 481 23 Construction and land 1,795 1,908 3 113 1,982 62 Commercial real estate 1,766 2,175 106 409 1,825 95 Consumer - - - - - - Commercial 27 27 3 - 34 3 $ 27,545 $ 31,641 $ 1,576 $ 4,096 $ 28,261 $ 1,363 |
Troubled Debt Restructurings on Loan Receivables | The following presents data on troubled debt restructurings: As of June 30, 2016 Accruing Non-accruing Total Amount Number Amount Number Amount Number (dollars in thousands) One- to four-family $ 3,308 3 $ 2,502 34 $ 5,810 37 Multi-family 2,530 1 1,464 5 3,994 6 Home equity - - 98 1 98 1 Construction and land 437 1 - - 437 1 Commercial real estate 1,192 2 65 1 1,257 3 $ 7,467 7 $ 4,129 41 $ 11,596 48 As of December 31, 2015 Accruing Non-accruing Total Amount Number Amount Number Amount Number (dollars in thousands) One- to four-family $ 3,900 4 $ 5,739 45 $ 9,639 49 Multi-family 2,546 1 2,317 7 4,863 8 Home equity - - 98 1 98 1 Construction and land 1,556 2 - - 1,556 2 Commercial real estate 1,306 1 77 1 1,383 2 $ 9,308 8 $ 8,231 54 $ 17,539 62 |
Schedule of Troubled Debt Restructurings by Concession Type | The following presents troubled debt restructurings by concession type: As of June 30, 2016 Performing in accordance with modified terms In Default Total Amount Number Amount Number Amount Number (dollars in thousands) Interest reduction and principal forbearance $ 9,666 24 $ 800 2 $ 10,466 26 Interest reduction 1,130 22 - - 1,130 22 $ 10,796 46 $ 800 2 $ 11,596 48 As of December 31, 2015 Performing in accordance with modified terms In Default Total Amount Number Amount Number Amount Number (dollars in thousands) Interest reduction and principal forbearance $ 13,971 30 $ 1,012 5 $ 14,983 35 Principal forbearance 97 1 - - 97 1 Interest reduction 2,459 26 - - 2,459 26 $ 16,527 57 $ 1,012 5 $ 17,539 62 There were no loans modified as troubled debt restructurings for the three or six months ended June 30, 2016 and June 30, 2015. There were no troubled debt restructurings within the past twelve months for which there was a default during the three or six months ended June 30, 2016 and June 30, 2015. |
Schedule of Loans Receivables, Non Accrual Status | The following table presents data on non-accrual loans as of June 30, 2016 and December 31, 2015: June 30, 2016 December 31, 2015 (Dollars in Thousands) Non-accrual loans: Residential One- to four-family $ 8,765 $ 13,888 Multi-family 1,757 2,553 Home equity 304 437 Construction and land 66 239 Commercial real estate 439 460 Commercial 48 27 Consumer - - Total non-accrual loans $ 11,379 $ 17,604 Total non-accrual loans to total loans receivable 1.01 % 1.58 % Total non-accrual loans to total assets 0.63 % 1.00 % |
Real Estate Owned (Tables)
Real Estate Owned (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Real Estate Owned [Abstract] | |
Summary of real estate owned | Real estate owned is summarized as follows: June 30, 2016 December 31, 2015 (In Thousands) One- to four-family $ 3,834 $ 4,610 Multi-family 402 209 Construction and land 5,346 5,262 Commercial real estate 300 300 Total real estate owned 9,882 10,381 Valuation allowance at end of period (1,245 ) (1,191 ) Total real estate owned, net $ 8,637 $ 9,190 The following table presents the activity in the Company's real estate owned: Six months ended June 30, 2016 2015 (In Thousands) Real estate owned at beginning of the period $ 9,190 $ 18,706 Transferred from loans receivable 3,123 9,066 Sales (net of gains / losses) (3,325 ) (12,484 ) Write downs (351 ) (1,244 ) Other - 282 Real estate owned at the end of the period $ 8,637 $ 14,326 Residential one- to four-family mortgage loans that were in the process of foreclosure were $3.4 million and $5.1 million at June 30, 2016 and December 31, 2015, respectively. |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Mortgage Servicing Rights [Abstract] | |
Mortgage Servicing Rights Activity | The following table presents the activity in the Company's mortgage servicing rights: Six months ended June 30, 2016 2015 (In Thousands) Mortgage servicing rights at beginning of the period $ 1,422 $ 2,521 Additions 972 1,999 Amortization (239 ) (375 ) Sales - (614 ) Mortgage servicing rights at end of the period 2,155 3,531 Valuation allowance at end of period (150 ) (20 ) Mortgage servicing rights at end of the period, net $ 2,005 $ 3,511 |
Estimated Amortization Expense of Mortgage Servicing Rights | The following table shows the estimated future amortization expense for mortgage servicing rights for the periods indicated: Estimate for the period ended December 31: (In Thousands) 2016 $ 204 2017 348 2018 304 2019 260 2020 218 Thereafter 671 Total $ 2,005 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Deposits [Abstract] | |
Contractual maturities of time deposits | At June 30, 2016 and December 31, 2015, time deposits with balances greater than $250,000 amounted to $45.4 million and $37.7 million, respectively. A summary of the contractual maturities of time deposits at June 30, 2016 is as follows: (In Thousands) Within one year $ 479,358 More than one to two years 192,580 More than two to three years 4,311 More than three to four years 3,986 More than four through five years 1,865 $ 682,100 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Borrowings [Abstract] | |
Borrowings | Borrowings consist of the following: June 30, 2016 December 31, 2015 Balance Weighted Average Rate Balance Weighted Average Rate (Dollars in Thousands) Short-term repurchase agreement $ 745 3.22 % $ 7,203 3.19 % Long term: Federal Home Loan Bank, Chicago advances maturing: 2016 150,000 4.44 % 220,000 4.34 % 2017 65,000 3.19 % 65,000 3.19 % 2018 65,000 2.97 % 65,000 2.97 % 2021 50,000 0.70 % - 0.00 % Repurchase agreements maturing 2017 84,000 3.96 % 84,000 3.96 % $ 414,745 3.46 % $ 441,203 3.88 % |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Regulatory Capital [Abstract] | |
Actual and required capital amounts and ratios | The actual and required capital amounts and ratios for the Bank as of June 30, 2016 and December 31, 2015 are presented in the table below: June 30, 2016 Actual For Capital Adequacy Purposes Minimum Capital Adequacy with Capital Buffer To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars In Thousands) Total Capital (to risk-weighted assets) Consolidated Waterstone Financial, Inc. $ 412,262 33.17 % $ 99,442 8.00 % $ 107,211 8.625 % $ N/A N/A WaterStone Bank 383,720 30.91 % 99,307 8.00 % 107,065 8.625 % 124,133 10.00 % Tier 1 Capital (to risk-weighted assets) Consolidated Waterstone Financial, Inc. 396,723 31.92 % 74,581 6.00 % 82,350 6.625 % N/A N/A WaterStone Bank 368,202 29.66 % 74,480 6.00 % 82,238 6.625 % 99,307 8.00 % Common Equity Tier 1 Capital (to risk-weighted assets) Consolidated Waterstone Financial, Inc. 396,723 31.92 % 55,936 4.50 % 63,705 5.125 % N/A N/A WaterStone Bank 368,202 29.66 % 55,860 4.50 % 63,618 5.125 % 80,687 6.50 % Tier 1 Capital (to average assets) Consolidated Waterstone Financial, Inc. 396,723 22.63 % 70,112 4.00 % N/A N/A N/A N/A WaterStone Bank 368,202 21.06 % 69,919 4.00 % N/A N/A 87,399 5.00 % State of Wisconsin (to total assets) WaterStone Bank 368,202 20.52 % 107,654 6.00 % N/A N/A N/A N/A December 31, 2015 (Dollars In Thousands) Total Capital (to risk-weighted assets) Consolidated Waterstone Financial, Inc. $ 405,947 33.41 % $ 97,207 8.00 % $ N/A N/A $ N/A N/A WaterStone Bank 374,435 30.92 % 96,885 8.00 % N/A N/A 121,106 10.00 % Tier 1 Capital (to risk-weighted assets) Consolidated Waterstone Financial, Inc. 390,747 32.16 % 72,905 6.00 % N/A N/A N/A N/A WaterStone Bank 359,284 29.67 % 72,664 6.00 % N/A N/A 96,885 8.00 % Common Equity Tier 1 Capital (to risk-weighted assets) Consolidated Waterstone Financial, Inc. 390,747 32.16 % 54,679 4.50 % N/A N/A N/A N/A WaterStone Bank 359,284 29.67 % 54,498 4.50 % N/A N/A 78,719 6.50 % Tier 1 Capital (to average assets) Consolidated Waterstone Financial, Inc. 390,747 22.20 % 70,417 4.00 % N/A N/A N/A N/A WaterStone Bank 359,284 20.45 % 70,286 4.00 % N/A N/A 87,857 5.00 % State of Wisconsin (to total assets) WaterStone Bank 359,284 20.43 % 105,493 6.00 % N/A N/A N/A N/A |
Offsetting of Assets and Liab35
Offsetting of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Offsetting of Assets and Liabilities [Abstract] | |
Repurchase liabilities | The following table presents the liabilities subject to an enforceable master netting agreement as of June 30, 2016 and December 31, 2015. Gross Recognized Liabilities Gross Amounts Offset Net Amounts Presented Gross Amounts Not Offset Net Amount (In Thousands) June 30, 2016 Repurchase Agreements Short-term $ 745 $ - $ 745 $ 745 $ - Long-term 84,000 - 84,000 84,000 - $ 84,745 $ - $ 84,745 $ 84,745 $ - December 31, 2015 Repurchase Agreements Short-term $ 7,203 $ - $ 7,203 $ 7,203 $ - Long-term 84,000 - 84,000 84,000 - $ 91,203 $ - $ 91,203 $ 91,203 $ - |
Commitments, Off-Balance Shee36
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk | The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. June 30, 2016 December 31, 2015 (In Thousands) Financial instruments whose contract amounts represent potential credit risk: Commitments to extend credit under amortizing loans (1) $ 27,130 $ 10,307 Commitments to extend credit under home equity lines of credit (2) 13,736 14,173 Unused portion of construction loans (3) 32,725 25,545 Unused portion of business lines of credit 15,134 16,392 Standby letters of credit 392 566 (1) (2) (3) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Calculations for basic and diluted earnings loss per share | Presented below are the calculations for basic and diluted earnings per share: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 (In Thousands, except per share amounts) Net income $ 7,767 $ 5,284 $ 11,628 $ 8,300 Net income available to unvested restricted shares 5 83 7 126 Net income available to common stockholders $ 7,762 $ 5,201 $ 11,621 $ 8,174 Weighted average shares outstanding 26,919 29,841 26,942 31,098 Effect of dilutive potential common shares 285 350 301 315 Diluted weighted average shares outstanding 27,204 30,191 27,243 31,413 Basic earnings per share $ 0.29 $ 0.17 $ 0.43 $ 0.26 Diluted earnings per share $ 0.29 $ 0.17 $ 0.43 $ 0.26 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Measurements [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured On Recurring Basis [Table Text Block] | The following table presents information about our assets recorded in our consolidated statement of financial position at their fair value on a recurring basis as of June 30, 2016 and December 31, 2015, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. Fair Value Measurements Using June 30, 2016 Level 1 Level 2 Level 3 (In Thousands) Available for sale securities Mortgage-backed securities $ 86,830 $ - $ 86,830 $ - Collateralized mortgage obligations Government sponsored enterprise issued 68,967 - 68,967 - Government sponsored enterprise bonds 3,778 - 3,778 - Municipal securities 75,520 - 75,520 - Other debt securities 16,900 2,467 14,433 - Certificates of deposit 1,731 - 1,731 - Loans held for sale 208,807 - 208,807 - Mortgage banking derivative assets 5,488 - - 5,488 Mortgage banking derivative liabilities 2,917 - - 2,917 Fair Value Measurements Using December 31, 2015 Level 1 Level 2 Level 3 (In Thousands) Available for sale securities Mortgage-backed securities $ 96,667 $ - $ 96,667 $ - Collateralized mortgage obligations Government sponsored enterprise issued 70,428 - 70,428 - Government sponsored enterprise bonds 3,746 - 3,746 - Municipal securities 79,159 - 79,159 - Other debt securities 16,963 2,600 14,363 - Certificates of deposit 2,695 - 2,695 - Loans held for sale 166,516 - 166,516 - Mortgage banking derivative assets 2,313 - - 2,313 Mortgage banking derivative liabilities 125 - - 125 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The table below presents reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during 2016 and 2015. Mortgage banking derivatives, net (In Thousands) Balance at December 31, 2014 $ 999 Mortgage derivative gain, net 1,189 Balance at December 31, 2015 $ 2,188 Mortgage derivative gain, net 383 Balance at June 30, 2016 $ 2,571 |
Fair Value Measurements, Nonrecurring [Table Text Block] | The following tables present information about our assets recorded in our consolidated statement of financial position at their fair value on a non-recurring basis as of June 30, 2016 and December 31, 2015, and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value. Fair Value Measurements Using June 30, 2016 Level 1 Level 2 Level 3 (In Thousands) Impaired loans, net (1) $ 2,731 $ - $ - $ 2,731 Real estate owned 8,637 - - 8,637 Impaired mortgage servicing rights 1,564 - - 1,564 Fair Value Measurements Using December 31, 2015 Level 1 Level 2 Level 3 (In Thousands) Impaired loans, net (1) $ 8,024 $ - $ - $ 8,024 Real estate owned 9,190 - - 9,190 (1) Represents collateral-dependent impaired loans, net, which are included in loans. |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of June 30, 2016, the significant unobservable inputs used in the fair value measurements were as follows: Significant Unobservable Input Value Fair Value at June 30, 2016 Valuation Technique Significant Unobservable Inputs Minimum Value Maximum Value Mortgage banking derivatives $ 2,571 Pricing models Pull through rate 38.0 % 100.0 % Impaired loans 2,731 Market approach Discount rates applied to appraisals 15.0 % 30.0 % Real estate owned 8,637 Market approach Discount rates applied to appraisals 0.0 % 85.7 % Impaired mortgage servicing rights 1,564 Pricing models Prepayment rate 7.8 % 37.5 % Discount rate 10.0 % 11.0 % Cost to service $ 75.76 $ 571.60 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The carrying amounts and fair values of the Company's financial instruments consist of the following: June 30, 2016 December 31, 2015 Carrying amount Fair Value Carrying amount Fair Value Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In Thousands) Financial Assets Cash and cash equivalents $ 82,456 $ 82,456 $ 72,456 $ 10,000 $ - $ 100,471 $ 100,471 $ 100,471 $ - $ - Securities available-for-sale 253,726 253,726 2,467 251,259 - 269,658 269,658 2,600 267,058 - Loans held for sale 208,807 208,807 - 208,807 - 166,516 166,516 - 166,516 - Loans receivable 1,130,036 1,172,946 - - 1,172,946 1,114,934 1,165,370 - - 1,165,370 FHLB stock 14,850 14,850 - 14,850 - 19,500 19,500 - 19,500 - Accrued interest receivable 4,129 4,129 4,129 - - 4,108 4,108 4,108 - - Mortgage servicing rights 2,005 2,058 - - 2,058 1,422 1,658 - - 1,658 Mortgage banking derivative assets 5,488 5,488 - - 5,488 2,313 2,313 - - 2,313 Financial Liabilities Deposits 942,709 943,154 260,609 682,545 - 893,361 894,015 243,304 650,711 - Advance payments by borrowers for taxes 16,011 16,011 16,011 - - 3,661 3,661 3,661 - - Borrowings 414,745 423,122 - 423,122 - 441,203 463,238 - 463,238 - Accrued interest payable 1,431 1,431 1,431 - - 1,642 1,642 1,642 - - Mortgage banking derivative liabilities 2,917 2,917 - - 2,917 125 125 - - 125 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | As of or for the three months ended June 30, 2016 Community Banking Mortgage Banking Holding Company and Other Consolidated (In Thousands) Net interest income $ 9,962 $ 132 $ 71 $ 10,165 Provision for loan losses - - - - Net interest income after provision for loan losses 9,962 132 71 10,165 Noninterest income 1,203 35,400 (252 ) 36,351 Noninterest expenses: Compensation, payroll taxes, and other employee benefits 4,037 21,787 (115 ) 25,709 Occupancy, office furniture and equipment 816 1,603 - 2,419 FDIC insurance premiums 155 - - 155 Real estate owned 163 - - 163 Other 1,264 4,615 (94 ) 5,785 Total noninterest expenses 6,435 28,005 (209 ) 34,231 Income before income taxes 4,730 7,527 28 12,285 Income tax expense 1,421 3,087 10 4,518 Net income $ 3,309 $ 4,440 $ 18 $ 7,767 Total assets $ 1,793,197 $ 246,295 $ (240,226 ) $ 1,799,266 As of or for the three months ended June 30, 2015 Community Banking Mortgage Banking Holding Company and Other Consolidated (In Thousands) Net interest income $ 9,742 $ 230 $ 88 $ 10,060 Provision for loan losses 650 155 - 805 Net interest income after provision for loan losses 9,092 75 88 9,255 Noninterest income 920 30,231 (111 ) 31,040 Noninterest expenses: Compensation, payroll taxes, and other employee benefits 3,807 19,572 (107 ) 23,272 Occupancy, office furniture and equipment 801 1,468 - 2,269 FDIC insurance premiums 271 - - 271 Real estate owned 687 (1 ) - 686 Other 1,135 4,220 94 5,449 Total noninterest expenses 6,701 25,259 (13 ) 31,947 Income before income taxes 3,311 5,047 (10 ) 8,348 Income tax expense 917 2,112 35 3,064 Net income (loss) $ 2,394 $ 2,935 $ (45 ) $ 5,284 Total assets $ 1,706,005 $ 231,948 $ (200,730 ) $ 1,737,223 As of or for the six months ended June 30, 2016 Community Banking Mortgage Banking Holding Company and Other Consolidated (In Thousands) Net interest income $ 19,733 $ 277 $ 138 $ 20,148 Provision for loan losses 100 105 - 205 Net interest income after provision for loan losses 19,633 172 138 19,943 Noninterest income 1,925 56,333 (462 ) 57,796 Noninterest expenses: Compensation, payroll taxes, and other employee benefits 8,392 35,231 (228 ) 43,395 Occupancy, office furniture and equipment 1,648 3,107 - 4,755 FDIC insurance premiums 360 - - 360 Real estate owned 307 - - 307 Other 2,453 8,337 (154 ) 10,636 Total noninterest expenses 13,160 46,675 (382 ) 59,453 Income before income taxes 8,398 9,830 58 18,286 Income tax expense 2,604 4,030 24 6,658 Net income $ 5,794 $ 5,800 $ 34 $ 11,628 As of or for the six months ended June 30, 2015 Community Banking Mortgage Banking Holding Company and Other Consolidated (In Thousands) Net interest income $ 18,975 $ 350 $ 171 $ 19,496 Provision for loan losses 950 190 - 1,140 Net interest income after provision for loan losses 18,025 160 171 18,356 Noninterest income 1,678 51,557 (162 ) 53,073 Noninterest expenses: Compensation, payroll taxes, and other employee benefits 8,535 33,027 (212 ) 41,350 Occupancy, office furniture and equipment 1,647 3,065 - 4,712 FDIC insurance premiums 607 - - 607 Real estate owned 1,214 15 - 1,229 Other 2,104 8,199 174 10,477 Total noninterest expenses 14,107 44,306 (38 ) 58,375 Income before income taxes 5,596 7,411 47 13,054 Income tax expense 1,582 3,101 71 4,754 Net income (loss) $ 4,014 $ 4,310 $ (24 ) $ 8,300 |
Securities Available for Sale40
Securities Available for Sale (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016USD ($)Security | Jun. 30, 2015USD ($)Security | Jun. 30, 2016USD ($)Security | Jun. 30, 2015USD ($)Security | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||||||
Amortized cost | $ 247,536,000 | $ 247,536,000 | $ 267,871,000 | |||
Gross unrealized gains | 6,827,000 | 6,827,000 | 3,070,000 | |||
Gross unrealized losses | (637,000) | (637,000) | (1,283,000) | |||
Fair Value | 253,726,000 | 253,726,000 | 269,658,000 | |||
Proceeds from sale of securities | 0 | $ 1,000,000 | ||||
Gain on sale of securities | 0 | $ 0 | 0 | 44,000 | ||
Amortized cost of investment securities by contractual maturity [Abstract] | ||||||
Due within one year | 10,945,000 | 10,945,000 | ||||
Due after one year through five years | 19,526,000 | 19,526,000 | ||||
Due after five years through ten years | 42,011,000 | 42,011,000 | ||||
Due after ten years | 22,754,000 | 22,754,000 | ||||
Mortgage-related securities | 152,300,000 | 152,300,000 | ||||
Amortized cost | 247,536,000 | 247,536,000 | 267,871,000 | |||
Fair value of investment securities by contractual maturity [Abstract] | ||||||
Due within one year | 11,026,000 | 11,026,000 | ||||
Due after one year through five years | 19,799,000 | 19,799,000 | ||||
Due after five years through ten years | 44,103,000 | 44,103,000 | ||||
Due after ten years | 23,001,000 | 23,001,000 | ||||
Mortgage-related securities | 155,797,000 | 155,797,000 | ||||
Fair Value of Debt and Other Securities | 253,726,000 | 253,726,000 | 269,658,000 | |||
Fair value of securities available for sale in a continuous unrealized loss position [Abstract] | ||||||
Less than 12 months | 6,603,000 | 6,603,000 | 94,763,000 | |||
12 months or longer | 11,549,000 | 11,549,000 | 11,132,000 | |||
Fair value | 18,152,000 | 18,152,000 | 105,895,000 | |||
Unrealized loss on securities available for sale in a continuous unrealized loss position [Abstract] | ||||||
Less than 12 months | (6,000) | (1,136,000) | ||||
12 months or longer | (631,000) | (147,000) | ||||
Unrealized loss | (637,000) | (1,283,000) | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||||
Amortized Cost | 198,000 | 202,000,000 | 198,000 | 202,000,000 | ||
Fair Value Securities Other Than Temp | 279,000 | $ 264,000,000 | 279,000 | $ 264,000,000 | ||
Mortgage-backed securities [Member] | ||||||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||||||
Amortized cost | 84,445,000 | 84,445,000 | 95,911,000 | |||
Gross unrealized gains | 2,388,000 | 2,388,000 | 1,004,000 | |||
Gross unrealized losses | (3,000) | (3,000) | (248,000) | |||
Fair Value | $ 86,830,000 | $ 86,830,000 | 96,667,000 | |||
Number of securities that were in unrealized loss position twelve months or longer | Security | 2 | 2 | ||||
Number of securities that were other-than-temporarily impaired | Security | ||||||
Amortized cost of investment securities by contractual maturity [Abstract] | ||||||
Amortized cost | $ 84,445,000 | $ 84,445,000 | 95,911,000 | |||
Fair value of investment securities by contractual maturity [Abstract] | ||||||
Fair Value of Debt and Other Securities | 86,830,000 | 86,830,000 | 96,667,000 | |||
Fair value of securities available for sale in a continuous unrealized loss position [Abstract] | ||||||
Less than 12 months | 0 | 0 | 18,488,000 | |||
12 months or longer | 2,177,000 | 2,177,000 | 5,577,000 | |||
Fair value | 2,177,000 | 2,177,000 | 24,065,000 | |||
Unrealized loss on securities available for sale in a continuous unrealized loss position [Abstract] | ||||||
Less than 12 months | 0 | (163,000) | ||||
12 months or longer | (3,000) | (85,000) | ||||
Unrealized loss | (3,000) | (248,000) | ||||
Collateralized mortgage obligations, government sponsored enterprise issued [Member] | ||||||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||||||
Amortized cost | 67,855,000 | 67,855,000 | 70,605,000 | |||
Gross unrealized gains | 1,112,000 | 1,112,000 | 123,000 | |||
Gross unrealized losses | 0 | 0 | (300,000) | |||
Fair Value | 68,967,000 | 68,967,000 | 70,428,000 | |||
Amortized cost of investment securities by contractual maturity [Abstract] | ||||||
Amortized cost | 67,855,000 | 67,855,000 | 70,605,000 | |||
Fair value of investment securities by contractual maturity [Abstract] | ||||||
Fair Value of Debt and Other Securities | 68,967,000 | 68,967,000 | 70,428,000 | |||
Fair value of securities available for sale in a continuous unrealized loss position [Abstract] | ||||||
Less than 12 months | 0 | 0 | 48,281,000 | |||
12 months or longer | 0 | 0 | 0 | |||
Fair value | 0 | 0 | 48,281,000 | |||
Unrealized loss on securities available for sale in a continuous unrealized loss position [Abstract] | ||||||
Less than 12 months | 0 | (300,000) | ||||
12 months or longer | 0 | 0 | ||||
Unrealized loss | 0 | (300,000) | ||||
Mortgage-related securities [Member] | ||||||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||||||
Amortized cost | 152,300,000 | 152,300,000 | 166,516,000 | |||
Gross unrealized gains | 3,500,000 | 3,500,000 | 1,127,000 | |||
Gross unrealized losses | (3,000) | (3,000) | (548,000) | |||
Fair Value | 155,797,000 | 155,797,000 | 167,095,000 | |||
Securities pledged as collateral to secure repurchase agreements or related to mortgage banking activities | 93,000,000 | 93,000,000 | 95,800,000 | |||
Amortized cost of investment securities by contractual maturity [Abstract] | ||||||
Amortized cost | 152,300,000 | 152,300,000 | 166,516,000 | |||
Fair value of investment securities by contractual maturity [Abstract] | ||||||
Fair Value of Debt and Other Securities | 155,797,000 | 155,797,000 | 167,095,000 | |||
Government-sponsored enterprise bonds [Member] | ||||||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||||||
Amortized cost | 3,750,000 | 3,750,000 | 3,750,000 | |||
Gross unrealized gains | 28,000 | 28,000 | 0 | |||
Gross unrealized losses | 0 | 0 | (4,000) | |||
Fair Value | 3,778,000 | 3,778,000 | 3,746,000 | |||
Amortized cost of investment securities by contractual maturity [Abstract] | ||||||
Amortized cost | 3,750,000 | 3,750,000 | 3,750,000 | |||
Fair value of investment securities by contractual maturity [Abstract] | ||||||
Fair Value of Debt and Other Securities | 3,778,000 | 3,778,000 | 3,746,000 | |||
Fair value of securities available for sale in a continuous unrealized loss position [Abstract] | ||||||
Less than 12 months | 3,246,000 | |||||
12 months or longer | 0 | |||||
Fair value | 3,246,000 | |||||
Unrealized loss on securities available for sale in a continuous unrealized loss position [Abstract] | ||||||
Less than 12 months | (4,000) | |||||
12 months or longer | 0 | |||||
Unrealized loss | (4,000) | |||||
Municipal securities [Member] | ||||||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||||||
Amortized cost | 72,371,000 | 72,371,000 | 77,509,000 | |||
Gross unrealized gains | 3,155,000 | 3,155,000 | 1,730,000 | |||
Gross unrealized losses | (6,000) | (6,000) | (80,000) | |||
Fair Value | $ 75,520,000 | $ 75,520,000 | 79,159,000 | |||
Number of securities that were in unrealized loss position twelve months or longer | Security | 0 | 14 | 0 | 14 | ||
Securities pledged as collateral to secure repurchase agreements or related to mortgage banking activities | $ 2,200,000 | $ 2,200,000 | 2,800,000 | |||
Credit losses and impairments related to securities for which an other-than-temporary impairment was previously recognized | $ 0 | |||||
Amortized cost of investment securities by contractual maturity [Abstract] | ||||||
Amortized cost | 72,371,000 | 72,371,000 | 77,509,000 | |||
Fair value of investment securities by contractual maturity [Abstract] | ||||||
Fair Value of Debt and Other Securities | 75,520,000 | 75,520,000 | 79,159,000 | |||
Fair value of securities available for sale in a continuous unrealized loss position [Abstract] | ||||||
Less than 12 months | 6,603,000 | 6,603,000 | 9,409,000 | |||
12 months or longer | 0 | 0 | 5,555,000 | |||
Fair value | 6,603,000 | 6,603,000 | 14,964,000 | |||
Unrealized loss on securities available for sale in a continuous unrealized loss position [Abstract] | ||||||
Less than 12 months | (6,000) | (18,000) | ||||
12 months or longer | 0 | (62,000) | ||||
Unrealized loss | (6,000) | (80,000) | ||||
Other debt securities [Member] | ||||||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||||||
Amortized cost | 17,400,000 | 17,400,000 | 17,401,000 | |||
Gross unrealized gains | 128,000 | 128,000 | 209,000 | |||
Gross unrealized losses | (628,000) | (628,000) | (647,000) | |||
Fair Value | $ 16,900,000 | $ 16,900,000 | 16,963,000 | |||
Number of securities that were in unrealized loss position twelve months or longer | Security | 1 | 1 | ||||
Amortized cost of investment securities by contractual maturity [Abstract] | ||||||
Amortized cost | $ 17,400,000 | $ 17,400,000 | 17,401,000 | |||
Fair value of investment securities by contractual maturity [Abstract] | ||||||
Fair Value of Debt and Other Securities | 16,900,000 | 16,900,000 | 16,963,000 | |||
Fair value of securities available for sale in a continuous unrealized loss position [Abstract] | ||||||
Less than 12 months | 0 | 0 | ||||
12 months or longer | 9,372,000 | 9,372,000 | ||||
Fair value | 9,372,000 | 9,372,000 | ||||
Unrealized loss on securities available for sale in a continuous unrealized loss position [Abstract] | ||||||
Less than 12 months | 0 | |||||
12 months or longer | (628,000) | |||||
Unrealized loss | (628,000) | |||||
Debt securities [Member] | ||||||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||||||
Amortized cost | 93,521,000 | 93,521,000 | 98,660,000 | |||
Gross unrealized gains | 3,311,000 | 3,311,000 | 1,939,000 | |||
Gross unrealized losses | (634,000) | (634,000) | (731,000) | |||
Fair Value | 96,198,000 | 96,198,000 | 99,868,000 | |||
Amortized cost of investment securities by contractual maturity [Abstract] | ||||||
Amortized cost | 93,521,000 | 93,521,000 | 98,660,000 | |||
Fair value of investment securities by contractual maturity [Abstract] | ||||||
Fair Value of Debt and Other Securities | 96,198,000 | 96,198,000 | 99,868,000 | |||
Fair value of securities available for sale in a continuous unrealized loss position [Abstract] | ||||||
Less than 12 months | 14,363,000 | |||||
12 months or longer | 0 | $ 0 | ||||
Fair value | 14,363,000 | |||||
Unrealized loss on securities available for sale in a continuous unrealized loss position [Abstract] | ||||||
Less than 12 months | (647,000) | |||||
Unrealized loss | (647,000) | |||||
Certificates of Deposit [Member] | ||||||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||||||
Amortized cost | 1,715,000 | 1,715,000 | 2,695,000 | |||
Gross unrealized gains | 16,000 | 16,000 | 4,000 | |||
Gross unrealized losses | 0 | 0 | (4,000) | |||
Fair Value | 1,731,000 | 1,731,000 | 2,695,000 | |||
Amortized cost of investment securities by contractual maturity [Abstract] | ||||||
Amortized cost | 1,715,000 | 1,715,000 | 2,695,000 | |||
Fair value of investment securities by contractual maturity [Abstract] | ||||||
Fair Value of Debt and Other Securities | 1,731,000 | 1,731,000 | 2,695,000 | |||
Fair value of securities available for sale in a continuous unrealized loss position [Abstract] | ||||||
Less than 12 months | 0 | 0 | 976,000 | |||
12 months or longer | 0 | 0 | 0 | |||
Fair value | $ 0 | 0 | 976,000 | |||
Unrealized loss on securities available for sale in a continuous unrealized loss position [Abstract] | ||||||
Less than 12 months | 0 | (4,000) | ||||
12 months or longer | 0 | 0 | ||||
Unrealized loss | $ 0 | $ (4,000) |
Loans Receivable, Part I (Detai
Loans Receivable, Part I (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Mortgage Loans [Abstract] | ||
Loans receivable | $ 1,130,036 | $ 1,114,934 |
Loans receivable pledged as collateral | 885,200 | 872,800 |
Advances by Federal Home Loan Bank | 330,000 | |
Residential Real Estate [Member] | One- to four-family [Member] | ||
Mortgage Loans [Abstract] | ||
Loans receivable | 383,029 | 381,992 |
Residential Real Estate [Member] | Multi Family [Member] | ||
Mortgage Loans [Abstract] | ||
Loans receivable | 544,753 | 547,250 |
Residential Real Estate [Member] | Home Equity [Member] | ||
Mortgage Loans [Abstract] | ||
Loans receivable | 23,173 | 24,326 |
Construction and Land [Member] | ||
Mortgage Loans [Abstract] | ||
Loans receivable | 16,842 | 19,148 |
Commercial Real Estate [Member] | ||
Mortgage Loans [Abstract] | ||
Loans receivable | 134,537 | 118,820 |
Consumer [Member] | ||
Mortgage Loans [Abstract] | ||
Loans receivable | 342 | 361 |
Commercial Loans [Member] | ||
Mortgage Loans [Abstract] | ||
Loans receivable | $ 27,360 | $ 23,037 |
Loans Receivable, Part II (Deta
Loans Receivable, Part II (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | |
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | $ 8,074,000 | $ 11,531,000 | |
Current | [1] | 1,121,962,000 | 1,103,403,000 |
Total Loans | 1,130,036,000 | 1,114,934,000 | |
Loan Receivable, Nonaccrual Status | 4,400,000 | 7,900,000 | |
90 or more days past due | 0 | 0 | |
1 to 59 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | [2] | 1,473,000 | 1,163,000 |
Loan Receivable, Nonaccrual Status | 447,000,000 | 315,000 | |
60 to 89 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | [3] | 101,000 | 1,436,000 |
Loan Receivable, Nonaccrual Status | 32,000 | 467,000 | |
Greater than 90 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | 6,500,000 | 8,932,000 | |
Residential Real Estate [Member] | One- to four-family [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | 6,604,000 | 8,487,000 | |
Current | [1] | 376,425,000 | 373,505,000 |
Total Loans | 383,029,000 | 381,992,000 | |
Residential Real Estate [Member] | One- to four-family [Member] | 1 to 59 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | [2] | 1,064,000 | 851,000 |
Residential Real Estate [Member] | One- to four-family [Member] | 60 to 89 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | [3] | 99,000 | 1,133,000 |
Residential Real Estate [Member] | One- to four-family [Member] | Greater than 90 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | 5,441,000 | 6,503,000 | |
Residential Real Estate [Member] | Multi Family [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | 1,079,000 | 2,065,000 | |
Current | [1] | 543,674,000 | 545,185,000 |
Total Loans | 544,753,000 | 547,250,000 | |
Residential Real Estate [Member] | Multi Family [Member] | 1 to 59 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | [2] | 379,000 | 0 |
Residential Real Estate [Member] | Multi Family [Member] | 60 to 89 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | [3] | 0 | 207,000 |
Residential Real Estate [Member] | Multi Family [Member] | Greater than 90 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | 700,000 | 1,858,000 | |
Residential Real Estate [Member] | Home Equity [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | 88,000 | 461,000 | |
Current | [1] | 23,085,000 | 23,865,000 |
Total Loans | 23,173,000 | 24,326,000 | |
Residential Real Estate [Member] | Home Equity [Member] | 1 to 59 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | [2] | 30,000 | 255,000 |
Residential Real Estate [Member] | Home Equity [Member] | 60 to 89 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | [3] | 0 | 96,000 |
Residential Real Estate [Member] | Home Equity [Member] | Greater than 90 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | 58,000 | 110,000 | |
Construction and Land [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | 66,000 | 238,000 | |
Current | [1] | 16,776,000 | 18,910,000 |
Total Loans | 16,842,000 | 19,148,000 | |
Construction and Land [Member] | 1 to 59 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | [2] | 0 | 0 |
Construction and Land [Member] | 60 to 89 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | [3] | 0 | 0 |
Construction and Land [Member] | Greater than 90 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | 66,000 | 238,000 | |
Commercial Real Estate [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | 209,000 | 280,000 | |
Current | [1] | 134,328,000 | 118,540,000 |
Total Loans | 134,537,000 | 118,820,000 | |
Commercial Real Estate [Member] | 1 to 59 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | [2] | 0 | 57,000 |
Commercial Real Estate [Member] | 60 to 89 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | [3] | 0 | 0 |
Commercial Real Estate [Member] | Greater than 90 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | 209,000 | 223,000 | |
Consumer [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | 0 | 0 | |
Current | [1] | 342,000 | 361,000 |
Total Loans | 342,000 | 361,000 | |
Consumer [Member] | 1 to 59 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | [2] | 0 | 0 |
Consumer [Member] | 60 to 89 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | [3] | 0 | 0 |
Consumer [Member] | Greater than 90 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | 0 | 0 | |
Commercial Loans [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | 28,000 | 0 | |
Current | [1] | 27,332,000 | 23,037,000 |
Total Loans | 27,360,000 | 23,037,000 | |
Commercial Loans [Member] | 1 to 59 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | [2] | 0 | 0 |
Commercial Loans [Member] | 60 to 89 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | [3] | 2,000 | 0 |
Commercial Loans [Member] | Greater than 90 Days Past Due [Member] | |||
Financing receivable, recorded investment, aging [Abstract] | |||
Total Past Due | $ 26,000 | $ 0 | |
[1] | Includes $6.5 million and $7.9 million at June 30, 2016 and December 31, 2015, respectively, which are on non-accrual status. | ||
[2] | Includes $1.1 million and $315,000 at June 30, 2016 and December 31, 2015, respectively, which are on non-accrual status. | ||
[3] | Includes $60,000 and $467,000 at June 30, 2016 and December 31, 2015, respectively, which are on non-accrual status. |
Loans Receivable, Part III (Det
Loans Receivable, Part III (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | |
Allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | $ 16,185 | $ 18,706 | ||||
Provision (credit) for loan losses | $ 0 | $ 805 | 205 | 1,140 | ||
Charge-offs | (974) | (2,664) | ||||
Recoveries | 289 | 1,178 | ||||
Balance at end of period | 15,705 | 18,360 | 15,705 | 18,360 | ||
Summary of the allowance for loan loss for loans evaluated individually and collectively for impairment by collateral class [Abstract] | ||||||
Allowance related to loans individually evaluated for impairment | $ 770 | $ 1,576 | ||||
Allowance related to loans collectively evaluated for impairment | 14,935 | 14,609 | ||||
Provision for loan losses | 15,705 | 18,360 | 16,185 | 18,706 | 15,705 | 16,185 |
Loans individually evaluated for impairment | 18,913 | 27,545 | ||||
Loans collectively evaluated for impairment | 1,111,123 | 1,087,389 | ||||
Total gross loans | 1,130,036 | 1,114,934 | ||||
Total loans | 1,130,036 | 1,114,934 | ||||
Residential Real Estate [Member] | One- to-Four Family [Member] | ||||||
Allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | 7,763 | 9,877 | ||||
Provision (credit) for loan losses | (103) | 1,402 | ||||
Charge-offs | (464) | (1,220) | ||||
Recoveries | 178 | 289 | ||||
Balance at end of period | 7,374 | 10,348 | 7,374 | 10,348 | ||
Summary of the allowance for loan loss for loans evaluated individually and collectively for impairment by collateral class [Abstract] | ||||||
Allowance related to loans individually evaluated for impairment | 605 | 1,114 | ||||
Allowance related to loans collectively evaluated for impairment | 6,769 | 6,649 | ||||
Provision for loan losses | 7,374 | 10,348 | 7,763 | 9,877 | 7,374 | 7,763 |
Loans individually evaluated for impairment | 12,124 | 18,385 | ||||
Loans collectively evaluated for impairment | 370,905 | 363,607 | ||||
Total gross loans | 383,029 | 381,992 | ||||
Total loans | 383,029 | 381,992 | ||||
Residential Real Estate [Member] | Multi Family [Member] | ||||||
Allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | 5,000 | 5,358 | ||||
Provision (credit) for loan losses | (5) | (147) | ||||
Charge-offs | (445) | (1,304) | ||||
Recoveries | 59 | 753 | ||||
Balance at end of period | 4,609 | 4,660 | 4,609 | 4,660 | ||
Summary of the allowance for loan loss for loans evaluated individually and collectively for impairment by collateral class [Abstract] | ||||||
Allowance related to loans individually evaluated for impairment | 0 | 242 | ||||
Allowance related to loans collectively evaluated for impairment | 4,609 | 4,758 | ||||
Provision for loan losses | 4,609 | 4,660 | 5,000 | 5,358 | 4,609 | 5,000 |
Loans individually evaluated for impairment | 4,287 | 5,100 | ||||
Loans collectively evaluated for impairment | 540,466 | 542,150 | ||||
Total gross loans | 544,753 | 547,250 | ||||
Total loans | 544,753 | 547,250 | ||||
Residential Real Estate [Member] | Home Equity [Member] | ||||||
Allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | 433 | 422 | ||||
Provision (credit) for loan losses | (2) | (54) | ||||
Charge-offs | (62) | (48) | ||||
Recoveries | 19 | 95 | ||||
Balance at end of period | 388 | 415 | 388 | 415 | ||
Summary of the allowance for loan loss for loans evaluated individually and collectively for impairment by collateral class [Abstract] | ||||||
Allowance related to loans individually evaluated for impairment | 75 | 108 | ||||
Allowance related to loans collectively evaluated for impairment | 313 | 325 | ||||
Provision for loan losses | 388 | 415 | 433 | 422 | 388 | 433 |
Loans individually evaluated for impairment | 319 | 472 | ||||
Loans collectively evaluated for impairment | 22,854 | 23,854 | ||||
Total gross loans | 23,173 | 24,326 | ||||
Total loans | 23,173 | 24,326 | ||||
Construction and Land [Member] | ||||||
Allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | 904 | 687 | ||||
Provision (credit) for loan losses | (13) | 47 | ||||
Charge-offs | (3) | (47) | ||||
Recoveries | 33 | 33 | ||||
Balance at end of period | 921 | 720 | 921 | 720 | ||
Summary of the allowance for loan loss for loans evaluated individually and collectively for impairment by collateral class [Abstract] | ||||||
Allowance related to loans individually evaluated for impairment | 0 | 3 | ||||
Allowance related to loans collectively evaluated for impairment | 921 | 901 | ||||
Provision for loan losses | 921 | 720 | 904 | 687 | 921 | 904 |
Loans individually evaluated for impairment | 504 | 1,795 | ||||
Loans collectively evaluated for impairment | 16,338 | 17,353 | ||||
Total gross loans | 16,842 | 19,148 | ||||
Total loans | 16,842 | 19,148 | ||||
Commercial Real Estate [Member] | ||||||
Allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | 1,680 | 1,951 | ||||
Provision (credit) for loan losses | 52 | (115) | ||||
Charge-offs | 0 | (45) | ||||
Recoveries | 0 | 5 | ||||
Balance at end of period | 1,732 | 1,796 | 1,732 | 1,796 | ||
Summary of the allowance for loan loss for loans evaluated individually and collectively for impairment by collateral class [Abstract] | ||||||
Allowance related to loans individually evaluated for impairment | 88 | 106 | ||||
Allowance related to loans collectively evaluated for impairment | 1,644 | 1,574 | ||||
Provision for loan losses | 1,732 | 1,796 | 1,680 | 1,951 | 1,732 | 1,680 |
Loans individually evaluated for impairment | 1,631 | 1,766 | ||||
Loans collectively evaluated for impairment | 132,906 | 117,054 | ||||
Total gross loans | 134,537 | 118,820 | ||||
Total loans | 134,537 | 118,820 | ||||
Consumer [Member] | ||||||
Allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | 9 | 8 | ||||
Provision (credit) for loan losses | 1 | (2) | ||||
Charge-offs | 0 | 0 | ||||
Recoveries | 0 | 3 | ||||
Balance at end of period | 10 | 9 | 10 | 9 | ||
Summary of the allowance for loan loss for loans evaluated individually and collectively for impairment by collateral class [Abstract] | ||||||
Allowance related to loans individually evaluated for impairment | 0 | 0 | ||||
Allowance related to loans collectively evaluated for impairment | 10 | 9 | ||||
Provision for loan losses | 10 | 9 | 9 | 8 | 10 | 9 |
Loans individually evaluated for impairment | 0 | 0 | ||||
Loans collectively evaluated for impairment | 342 | 361 | ||||
Total gross loans | 342 | 361 | ||||
Total loans | 342 | 361 | ||||
Commercial Loans [Member] | ||||||
Allowance for loan losses [Roll Forward] | ||||||
Balance at beginning of period | 396 | 403 | ||||
Provision (credit) for loan losses | 275 | 9 | ||||
Charge-offs | 0 | 0 | ||||
Recoveries | 0 | 0 | ||||
Balance at end of period | 671 | 412 | 671 | 412 | ||
Summary of the allowance for loan loss for loans evaluated individually and collectively for impairment by collateral class [Abstract] | ||||||
Allowance related to loans individually evaluated for impairment | 2 | 3 | ||||
Allowance related to loans collectively evaluated for impairment | 669 | 393 | ||||
Provision for loan losses | $ 671 | $ 412 | $ 396 | $ 403 | 671 | 396 |
Loans individually evaluated for impairment | 48 | 27 | ||||
Loans collectively evaluated for impairment | 27,312 | 23,010 | ||||
Total gross loans | 27,360 | 23,037 | ||||
Total loans | $ 27,360 | $ 23,037 |
Loans Receivable, Part IV (Deta
Loans Receivable, Part IV (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | $ 1,130,036,000 | $ 1,114,934,000 |
Loans requiring an officers' loans committee review and approval, minimum | 500,000 | |
Minimum amount of potential loan exposure to be reviewed by credit management personnel | $ 1,000,000 | |
Maximum period of time loan is reviewed if renewed | 1 year | |
Period of time sales of real estate owned fair value is based | 2 years | |
Impaired Loans Receivable, Recorded Investment [Abstract] | ||
Total Impaired, with Reserve, Recorded Investment | $ 3,501,000 | 9,600,000 |
Total Impaired, with no Reserve, Recorded Investment | 15,412,000 | 17,945,000 |
Total Impaired, Recorded Investment | 18,913,000 | 27,545,000 |
Impaired Loans Receivable, Unpaid Principal Balance [Abstract] | ||
Total Impaired with Reserve, Unpaid Principal Balance | 3,950,000 | 11,142,000 |
Total Impaired with no Reserve, Unpaid Principal Balance | 17,865,000 | 20,499,000 |
Total Impaired, Unpaid Principal Balance, Total | 21,815,000 | 31,641,000 |
Impaired Loans Receivable, Reserve [Abstract] | ||
Total Impaired with Reserve, Reserve | 770,000 | 1,576,000 |
Total Impaired with no Reserve, Reserve | 0 | 0 |
Impaired Loans, Reserve | 770,000 | 1,576,000 |
Impaired Loans Receivable, Cumulative Charge Offs [Abstract] | ||
Total Impaired with Reserve, Cumulative Charge-offs | 449,000 | 1,542,000 |
Total Impaired with no Reserve, Cumulative Charge-offs | 2,453,000 | 2,554,000 |
Total Impaired, Cumulative Charge-offs | 2,902,000 | 4,096,000 |
Impaired Loans Receivable, Average Recorded Investment [Abstract] | ||
Total Impaired with Reserve, Average Recorded Investment | 3,539,000 | 9,858,000 |
Total Impaired with no Reserve, Average Recorded Investment | 16,034,000 | 18,403,000 |
Total Impaired, Average Recorded Investment, Total | 19,573,000 | 28,261,000 |
Impaired Loans Receivable, Interest Paid YTD [Abstract] | ||
Total Impaired with Reserve, Interest Paid YTD | 82,000 | 469,000 |
Total Impaired with no Reserve, Interest Paid YTD | 343,000 | 894,000 |
Total Impaired, Interest Paid YTD | 425,000 | 1,363,000 |
Charge-offs recorded to reduce the unpaid principal balance | 2,500,000 | |
Total impaired loans including troubled debt restructurings | 11,596,000 | 17,539,000 |
Substandard [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 18,178,000 | 26,000,000 |
Watch [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 18,253,000 | 16,677,000 |
Pass [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 1,093,605,000 | 1,072,257,000 |
Residential Real Estate [Member] | One- to four-family [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 383,029,000 | 381,992,000 |
Impaired Loans Receivable, Recorded Investment [Abstract] | ||
Total Impaired, with Reserve, Recorded Investment | 3,040,000 | 7,903,000 |
Total Impaired, with no Reserve, Recorded Investment | 9,084,000 | 10,482,000 |
Total Impaired, Recorded Investment | 12,124,000 | 18,385,000 |
Impaired Loans Receivable, Unpaid Principal Balance [Abstract] | ||
Total Impaired with Reserve, Unpaid Principal Balance | 3,080,000 | 8,923,000 |
Total Impaired with no Reserve, Unpaid Principal Balance | 10,509,000 | 11,991,000 |
Total Impaired, Unpaid Principal Balance, Total | 13,589,000 | 20,914,000 |
Impaired Loans Receivable, Reserve [Abstract] | ||
Total Impaired with Reserve, Reserve | 605,000 | 1,114,000 |
Total Impaired with no Reserve, Reserve | 0 | 0 |
Impaired Loans, Reserve | 605,000 | 1,114,000 |
Impaired Loans Receivable, Cumulative Charge Offs [Abstract] | ||
Total Impaired with Reserve, Cumulative Charge-offs | 40,000 | 1,020,000 |
Total Impaired with no Reserve, Cumulative Charge-offs | 1,425,000 | 1,509,000 |
Total Impaired, Cumulative Charge-offs | 1,465,000 | 2,529,000 |
Impaired Loans Receivable, Average Recorded Investment [Abstract] | ||
Total Impaired with Reserve, Average Recorded Investment | 3,066,000 | 8,113,000 |
Total Impaired with no Reserve, Average Recorded Investment | 9,340,000 | 10,676,000 |
Total Impaired, Average Recorded Investment, Total | 12,406,000 | 18,789,000 |
Impaired Loans Receivable, Interest Paid YTD [Abstract] | ||
Total Impaired with Reserve, Interest Paid YTD | 69,000 | 393,000 |
Total Impaired with no Reserve, Interest Paid YTD | 179,000 | 500,000 |
Total Impaired, Interest Paid YTD | 248,000 | 893,000 |
Total impaired loans including troubled debt restructurings | 5,810,000 | 9,639,000 |
Residential Real Estate [Member] | One- to four-family [Member] | Substandard [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 14,271,000 | 19,148,000 |
Residential Real Estate [Member] | One- to four-family [Member] | Watch [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 9,800,000 | 11,352,000 |
Residential Real Estate [Member] | One- to four-family [Member] | Pass [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 358,958,000 | 351,492,000 |
Residential Real Estate [Member] | Multi Family [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 544,753,000 | 547,250,000 |
Impaired Loans Receivable, Recorded Investment [Abstract] | ||
Total Impaired, with Reserve, Recorded Investment | 0 | 1,055,000 |
Total Impaired, with no Reserve, Recorded Investment | 4,287,000 | 4,045,000 |
Total Impaired, Recorded Investment | 4,287,000 | 5,100,000 |
Impaired Loans Receivable, Unpaid Principal Balance [Abstract] | ||
Total Impaired with Reserve, Unpaid Principal Balance | 0 | 1,055,000 |
Total Impaired with no Reserve, Unpaid Principal Balance | 5,315,000 | 5,090,000 |
Total Impaired, Unpaid Principal Balance, Total | 5,315,000 | 6,145,000 |
Impaired Loans Receivable, Reserve [Abstract] | ||
Total Impaired with Reserve, Reserve | 0 | 242,000 |
Total Impaired with no Reserve, Reserve | 0 | 0 |
Impaired Loans, Reserve | 0 | 242,000 |
Impaired Loans Receivable, Cumulative Charge Offs [Abstract] | ||
Total Impaired with Reserve, Cumulative Charge-offs | 0 | 0 |
Total Impaired with no Reserve, Cumulative Charge-offs | 1,028,000 | 1,045,000 |
Total Impaired, Cumulative Charge-offs | 1,028,000 | 1,045,000 |
Impaired Loans Receivable, Average Recorded Investment [Abstract] | ||
Total Impaired with Reserve, Average Recorded Investment | 0 | 1,044,000 |
Total Impaired with no Reserve, Average Recorded Investment | 4,313,000 | 4,106,000 |
Total Impaired, Average Recorded Investment, Total | 4,313,000 | 5,150,000 |
Impaired Loans Receivable, Interest Paid YTD [Abstract] | ||
Total Impaired with Reserve, Interest Paid YTD | 0 | 42,000 |
Total Impaired with no Reserve, Interest Paid YTD | 118,000 | 245,000 |
Total Impaired, Interest Paid YTD | 118,000 | 287,000 |
Total impaired loans including troubled debt restructurings | 3,994,000 | 4,863,000 |
Residential Real Estate [Member] | Multi Family [Member] | Substandard [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 1,757,000 | 2,553,000 |
Residential Real Estate [Member] | Multi Family [Member] | Watch [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 2,931,000 | 3,634,000 |
Residential Real Estate [Member] | Multi Family [Member] | Pass [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 540,065,000 | 541,063,000 |
Residential Real Estate [Member] | Home Equity [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 23,173,000 | 24,326,000 |
Impaired Loans Receivable, Recorded Investment [Abstract] | ||
Total Impaired, with Reserve, Recorded Investment | 163,000 | 169,000 |
Total Impaired, with no Reserve, Recorded Investment | 156,000 | 303,000 |
Total Impaired, Recorded Investment | 319,000 | 472,000 |
Impaired Loans Receivable, Unpaid Principal Balance [Abstract] | ||
Total Impaired with Reserve, Unpaid Principal Balance | 163,000 | 169,000 |
Total Impaired with no Reserve, Unpaid Principal Balance | 156,000 | 303,000 |
Total Impaired, Unpaid Principal Balance, Total | 319,000 | 472,000 |
Impaired Loans Receivable, Reserve [Abstract] | ||
Total Impaired with Reserve, Reserve | 75,000 | 108,000 |
Total Impaired with no Reserve, Reserve | 0 | 0 |
Impaired Loans, Reserve | 75,000 | 108,000 |
Impaired Loans Receivable, Cumulative Charge Offs [Abstract] | ||
Total Impaired with Reserve, Cumulative Charge-offs | 0 | 0 |
Total Impaired with no Reserve, Cumulative Charge-offs | 0 | 0 |
Total Impaired, Cumulative Charge-offs | 0 | 0 |
Impaired Loans Receivable, Average Recorded Investment [Abstract] | ||
Total Impaired with Reserve, Average Recorded Investment | 167,000 | 174,000 |
Total Impaired with no Reserve, Average Recorded Investment | 156,000 | 307,000 |
Total Impaired, Average Recorded Investment, Total | 323,000 | 481,000 |
Impaired Loans Receivable, Interest Paid YTD [Abstract] | ||
Total Impaired with Reserve, Interest Paid YTD | 7,000 | 10,000 |
Total Impaired with no Reserve, Interest Paid YTD | 2,000 | 13,000 |
Total Impaired, Interest Paid YTD | 9,000 | 23,000 |
Total impaired loans including troubled debt restructurings | 98,000 | 98,000 |
Residential Real Estate [Member] | Home Equity [Member] | Substandard [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 406,000 | 684,000 |
Residential Real Estate [Member] | Home Equity [Member] | Watch [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 113,000 | 128,000 |
Residential Real Estate [Member] | Home Equity [Member] | Pass [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 22,654,000 | 23,514,000 |
Construction and Land [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 16,842,000 | 19,148,000 |
Impaired Loans Receivable, Recorded Investment [Abstract] | ||
Total Impaired, with Reserve, Recorded Investment | 0 | 156,000 |
Total Impaired, with no Reserve, Recorded Investment | 504,000 | 1,639,000 |
Total Impaired, Recorded Investment | 504,000 | 1,795,000 |
Impaired Loans Receivable, Unpaid Principal Balance [Abstract] | ||
Total Impaired with Reserve, Unpaid Principal Balance | 0 | 269,000 |
Total Impaired with no Reserve, Unpaid Principal Balance | 504,000 | 1,639,000 |
Total Impaired, Unpaid Principal Balance, Total | 504,000 | 1,908,000 |
Impaired Loans Receivable, Reserve [Abstract] | ||
Total Impaired with Reserve, Reserve | 0 | 3,000 |
Total Impaired with no Reserve, Reserve | 0 | 0 |
Impaired Loans, Reserve | 0 | 3,000 |
Impaired Loans Receivable, Cumulative Charge Offs [Abstract] | ||
Total Impaired with Reserve, Cumulative Charge-offs | 0 | 113,000 |
Total Impaired with no Reserve, Cumulative Charge-offs | 0 | 0 |
Total Impaired, Cumulative Charge-offs | 0 | 113,000 |
Impaired Loans Receivable, Average Recorded Investment [Abstract] | ||
Total Impaired with Reserve, Average Recorded Investment | 0 | 155,000 |
Total Impaired with no Reserve, Average Recorded Investment | 780,000 | 1,827,000 |
Total Impaired, Average Recorded Investment, Total | 780,000 | 1,982,000 |
Impaired Loans Receivable, Interest Paid YTD [Abstract] | ||
Total Impaired with Reserve, Interest Paid YTD | 0 | 0 |
Total Impaired with no Reserve, Interest Paid YTD | 12,000 | 62,000 |
Total Impaired, Interest Paid YTD | 12,000 | 62,000 |
Total impaired loans including troubled debt restructurings | 437,000 | 1,556,000 |
Construction and Land [Member] | Substandard [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 66,000 | 1,794,000 |
Construction and Land [Member] | Watch [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 874,000 | 0 |
Construction and Land [Member] | Pass [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 15,902,000 | 17,354,000 |
Commercial Real Estate [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 134,537,000 | 118,820,000 |
Impaired Loans Receivable, Recorded Investment [Abstract] | ||
Total Impaired, with Reserve, Recorded Investment | 296,000 | 314,000 |
Total Impaired, with no Reserve, Recorded Investment | 1,335,000 | 1,452,000 |
Total Impaired, Recorded Investment | 1,631,000 | 1,766,000 |
Impaired Loans Receivable, Unpaid Principal Balance [Abstract] | ||
Total Impaired with Reserve, Unpaid Principal Balance | 705,000 | 723,000 |
Total Impaired with no Reserve, Unpaid Principal Balance | 1,335,000 | 1,452,000 |
Total Impaired, Unpaid Principal Balance, Total | 2,040,000 | 2,175,000 |
Impaired Loans Receivable, Reserve [Abstract] | ||
Total Impaired with Reserve, Reserve | 88,000 | 106,000 |
Total Impaired with no Reserve, Reserve | 0 | 0 |
Impaired Loans, Reserve | 88,000 | 106,000 |
Impaired Loans Receivable, Cumulative Charge Offs [Abstract] | ||
Total Impaired with Reserve, Cumulative Charge-offs | 409,000 | 409,000 |
Total Impaired with no Reserve, Cumulative Charge-offs | 0 | 0 |
Total Impaired, Cumulative Charge-offs | 409,000 | 409,000 |
Impaired Loans Receivable, Average Recorded Investment [Abstract] | ||
Total Impaired with Reserve, Average Recorded Investment | 303,000 | 367,000 |
Total Impaired with no Reserve, Average Recorded Investment | 1,397,000 | 1,458,000 |
Total Impaired, Average Recorded Investment, Total | 1,700,000 | 1,825,000 |
Impaired Loans Receivable, Interest Paid YTD [Abstract] | ||
Total Impaired with Reserve, Interest Paid YTD | 6,000 | 23,000 |
Total Impaired with no Reserve, Interest Paid YTD | 31,000 | 72,000 |
Total Impaired, Interest Paid YTD | 37,000 | 95,000 |
Total impaired loans including troubled debt restructurings | 1,257,000 | 1,383,000 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 1,631,000 | 1,766,000 |
Commercial Real Estate [Member] | Watch [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 1,465,000 | 1,161,000 |
Commercial Real Estate [Member] | Pass [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 131,441,000 | 115,893,000 |
Consumer [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 342,000 | 361,000 |
Impaired Loans Receivable, Recorded Investment [Abstract] | ||
Total Impaired, with Reserve, Recorded Investment | 0 | 0 |
Total Impaired, with no Reserve, Recorded Investment | 0 | 0 |
Total Impaired, Recorded Investment | 0 | 0 |
Impaired Loans Receivable, Unpaid Principal Balance [Abstract] | ||
Total Impaired with Reserve, Unpaid Principal Balance | 0 | 0 |
Total Impaired with no Reserve, Unpaid Principal Balance | 0 | 0 |
Total Impaired, Unpaid Principal Balance, Total | 0 | 0 |
Impaired Loans Receivable, Reserve [Abstract] | ||
Total Impaired with Reserve, Reserve | 0 | 0 |
Total Impaired with no Reserve, Reserve | 0 | 0 |
Impaired Loans, Reserve | 0 | 0 |
Impaired Loans Receivable, Cumulative Charge Offs [Abstract] | ||
Total Impaired with Reserve, Cumulative Charge-offs | 0 | 0 |
Total Impaired with no Reserve, Cumulative Charge-offs | 0 | 0 |
Total Impaired, Cumulative Charge-offs | 0 | 0 |
Impaired Loans Receivable, Average Recorded Investment [Abstract] | ||
Total Impaired with Reserve, Average Recorded Investment | 0 | 0 |
Total Impaired with no Reserve, Average Recorded Investment | 0 | 0 |
Total Impaired, Average Recorded Investment, Total | 0 | 0 |
Impaired Loans Receivable, Interest Paid YTD [Abstract] | ||
Total Impaired with Reserve, Interest Paid YTD | 0 | 0 |
Total Impaired with no Reserve, Interest Paid YTD | 0 | 0 |
Total Impaired, Interest Paid YTD | 0 | 0 |
Consumer [Member] | Substandard [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 0 | 0 |
Consumer [Member] | Watch [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 0 | 0 |
Consumer [Member] | Pass [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 342,000 | 361,000 |
Commercial Loans [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 27,360,000 | 23,037,000 |
Impaired Loans Receivable, Recorded Investment [Abstract] | ||
Total Impaired, with Reserve, Recorded Investment | 2,000 | 3,000 |
Total Impaired, with no Reserve, Recorded Investment | 46,000 | 24,000 |
Total Impaired, Recorded Investment | 48,000 | 27,000 |
Impaired Loans Receivable, Unpaid Principal Balance [Abstract] | ||
Total Impaired with Reserve, Unpaid Principal Balance | 2,000 | 3,000 |
Total Impaired with no Reserve, Unpaid Principal Balance | 46,000 | 24,000 |
Total Impaired, Unpaid Principal Balance, Total | 48,000 | 27,000 |
Impaired Loans Receivable, Reserve [Abstract] | ||
Total Impaired with Reserve, Reserve | 2,000 | 3,000 |
Total Impaired with no Reserve, Reserve | 0 | 0 |
Impaired Loans, Reserve | 2,000 | 3,000 |
Impaired Loans Receivable, Cumulative Charge Offs [Abstract] | ||
Total Impaired with Reserve, Cumulative Charge-offs | 0 | 0 |
Total Impaired with no Reserve, Cumulative Charge-offs | 0 | 0 |
Total Impaired, Cumulative Charge-offs | 0 | 0 |
Impaired Loans Receivable, Average Recorded Investment [Abstract] | ||
Total Impaired with Reserve, Average Recorded Investment | 3,000 | 5,000 |
Total Impaired with no Reserve, Average Recorded Investment | 48,000 | 29,000 |
Total Impaired, Average Recorded Investment, Total | 51,000 | 34,000 |
Impaired Loans Receivable, Interest Paid YTD [Abstract] | ||
Total Impaired with Reserve, Interest Paid YTD | 0 | 1,000 |
Total Impaired with no Reserve, Interest Paid YTD | 1,000 | 2,000 |
Total Impaired, Interest Paid YTD | 1,000 | 3,000 |
Commercial Loans [Member] | Substandard [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 47,000 | 55,000 |
Commercial Loans [Member] | Watch [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | 3,070,000 | 402,000 |
Commercial Loans [Member] | Pass [Member] | ||
Loans Receivable, Recorded Investment [Line Items] | ||
Loans receivable, net | $ 24,243,000 | $ 22,580,000 |
Loans Receivable, Part V (Detai
Loans Receivable, Part V (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016USD ($)Loan | Jun. 30, 2015USD ($)Loan | Jun. 30, 2016USD ($)LoanPayment | Dec. 31, 2015USD ($)Loan | |
Troubled Debt Restructuring Note, Debtor [Abstract] | ||||
Amount of troubled debt restructuring | $ 11,596,000 | $ 11,596,000 | $ 17,539,000 | |
Total number of troubled debt restructurings | Loan | 48 | 62 | ||
Period of principal forbearance, reduction in interest rate or both included in typical restructured terms | 0 months | |||
Valuation allowance with respect to troubled debt restructurings | 442,000 | $ 442,000 | $ 996,000 | |
Minimum number of consecutive contractual payments received prior to consideration for a return to accrual status | Payment | 6 | |||
Troubled Debt Restructurings by Concession Type [Abstract] | ||||
Loans Receivable, Modifications, Loans Performing in Accordance with Modified Terms | $ 10,796,000 | $ 10,796,000 | $ 16,527,000 | |
Number of loans performing in accordance with modified terms | Loan | 46 | 46 | 57 | |
Loans Receivable, Modifications, Loans in Default | $ 800,000 | $ 800,000 | $ 1,012,000 | |
Number of Loans in Default | Loan | 2 | 2 | 5 | |
Loans Receivable, Modifications, Total | $ 11,596,000 | $ 11,596,000 | $ 17,539,000 | |
Number of Loans, Total | Loan | 48 | 48 | 62 | |
Data on Troubled Debt Restructuring [Abstract] | ||||
Loans modified as a troubled debt restructure | ||||
Number of loans modified as a troubled debt restructuring | Loan | ||||
Non accrual Loans [Abstract] | ||||
Total non-accrual loans | $ 11,379,000 | $ 11,379,000 | $ 17,604,000 | |
Ratio of total non-accrual loans to total loans, net of allowance | 1.01% | 1.58% | ||
Ratio of total non-accrual loans to total assets | 0.63% | 1.00% | ||
Accruing [Member] | ||||
Troubled Debt Restructuring Note, Debtor [Abstract] | ||||
Amount of troubled debt restructuring | 7,467,000 | $ 7,467,000 | $ 9,308,000 | |
Total number of troubled debt restructurings | Loan | 7 | 8 | ||
Non-accruing [Member] | ||||
Troubled Debt Restructuring Note, Debtor [Abstract] | ||||
Amount of troubled debt restructuring | 4,129,000 | $ 4,129,000 | $ 8,231,000 | |
Total number of troubled debt restructurings | Loan | 41 | 54 | ||
Interest Reduction and Principal Forbearance [Member] | ||||
Troubled Debt Restructurings by Concession Type [Abstract] | ||||
Loans Receivable, Modifications, Loans Performing in Accordance with Modified Terms | $ 9,666,000 | $ 9,666,000 | $ 13,971,000 | |
Number of loans performing in accordance with modified terms | Loan | 24 | 24 | 30 | |
Loans Receivable, Modifications, Loans in Default | $ 800,000 | $ 800,000 | $ 1,012,000 | |
Number of Loans in Default | Loan | 2 | 2 | 5 | |
Loans Receivable, Modifications, Total | $ 10,466,000 | $ 10,466,000 | $ 14,983,000 | |
Number of Loans, Total | Loan | 26 | 26 | 35 | |
Interest Reduction [Member] | ||||
Troubled Debt Restructurings by Concession Type [Abstract] | ||||
Loans Receivable, Modifications, Loans Performing in Accordance with Modified Terms | $ 1,130,000 | $ 1,130,000 | $ 2,459,000 | |
Number of loans performing in accordance with modified terms | Loan | 22 | 22 | 26 | |
Loans Receivable, Modifications, Loans in Default | $ 0 | $ 0 | $ 0 | |
Number of Loans in Default | Loan | 0 | 0 | 0 | |
Loans Receivable, Modifications, Total | $ 1,130,000 | $ 1,130,000 | $ 2,459,000 | |
Number of Loans, Total | Loan | 22 | 22 | 26 | |
Principal Forbearance [Member] | ||||
Troubled Debt Restructurings by Concession Type [Abstract] | ||||
Loans Receivable, Modifications, Loans Performing in Accordance with Modified Terms | $ 97,000 | |||
Number of loans performing in accordance with modified terms | Loan | 1 | |||
Loans Receivable, Modifications, Loans in Default | $ 0 | |||
Number of Loans in Default | Loan | 0 | |||
Loans Receivable, Modifications, Total | $ 97,000 | |||
Number of Loans, Total | Loan | 1 | |||
Residential Real Estate [Member] | One- to four-family [Member] | ||||
Troubled Debt Restructuring Note, Debtor [Abstract] | ||||
Amount of troubled debt restructuring | $ 5,810,000 | $ 5,810,000 | $ 9,639,000 | |
Total number of troubled debt restructurings | Loan | 37 | 49 | ||
Non accrual Loans [Abstract] | ||||
Total non-accrual loans | 8,765,000 | $ 8,765,000 | $ 13,888,000 | |
Residential Real Estate [Member] | One- to four-family [Member] | Accruing [Member] | ||||
Troubled Debt Restructuring Note, Debtor [Abstract] | ||||
Amount of troubled debt restructuring | 3,308,000 | $ 3,308,000 | $ 3,900,000 | |
Total number of troubled debt restructurings | Loan | 3 | 4 | ||
Residential Real Estate [Member] | One- to four-family [Member] | Non-accruing [Member] | ||||
Troubled Debt Restructuring Note, Debtor [Abstract] | ||||
Amount of troubled debt restructuring | 2,502,000 | $ 2,502,000 | $ 5,739,000 | |
Total number of troubled debt restructurings | Loan | 34 | 45 | ||
Residential Real Estate [Member] | Multi Family [Member] | ||||
Troubled Debt Restructuring Note, Debtor [Abstract] | ||||
Amount of troubled debt restructuring | 3,994,000 | $ 3,994,000 | $ 4,863,000 | |
Total number of troubled debt restructurings | Loan | 6 | 8 | ||
Non accrual Loans [Abstract] | ||||
Total non-accrual loans | 1,757,000 | $ 1,757,000 | $ 2,553,000 | |
Residential Real Estate [Member] | Multi Family [Member] | Accruing [Member] | ||||
Troubled Debt Restructuring Note, Debtor [Abstract] | ||||
Amount of troubled debt restructuring | 2,530,000 | $ 2,530,000 | $ 2,546,000 | |
Total number of troubled debt restructurings | Loan | 1 | 1 | ||
Residential Real Estate [Member] | Multi Family [Member] | Non-accruing [Member] | ||||
Troubled Debt Restructuring Note, Debtor [Abstract] | ||||
Amount of troubled debt restructuring | 1,464,000 | $ 1,464,000 | $ 2,317,000 | |
Total number of troubled debt restructurings | Loan | 5 | 7 | ||
Residential Real Estate [Member] | Home Equity [Member] | ||||
Troubled Debt Restructuring Note, Debtor [Abstract] | ||||
Amount of troubled debt restructuring | 98,000 | $ 98,000 | $ 98,000 | |
Total number of troubled debt restructurings | Loan | 1 | 1 | ||
Non accrual Loans [Abstract] | ||||
Total non-accrual loans | 304,000 | $ 304,000 | $ 437,000 | |
Residential Real Estate [Member] | Home Equity [Member] | Accruing [Member] | ||||
Troubled Debt Restructuring Note, Debtor [Abstract] | ||||
Amount of troubled debt restructuring | 0 | $ 0 | $ 0 | |
Total number of troubled debt restructurings | Loan | 0 | 0 | ||
Residential Real Estate [Member] | Home Equity [Member] | Non-accruing [Member] | ||||
Troubled Debt Restructuring Note, Debtor [Abstract] | ||||
Amount of troubled debt restructuring | 98,000 | $ 98,000 | $ 98,000 | |
Total number of troubled debt restructurings | Loan | 1 | 1 | ||
Construction and Land [Member] | ||||
Troubled Debt Restructuring Note, Debtor [Abstract] | ||||
Amount of troubled debt restructuring | 437,000 | $ 437,000 | $ 1,556,000 | |
Total number of troubled debt restructurings | Loan | 1 | 2 | ||
Non accrual Loans [Abstract] | ||||
Total non-accrual loans | 66,000 | $ 66,000 | $ 239,000 | |
Construction and Land [Member] | Accruing [Member] | ||||
Troubled Debt Restructuring Note, Debtor [Abstract] | ||||
Amount of troubled debt restructuring | 437,000 | $ 437,000 | $ 1,556,000 | |
Total number of troubled debt restructurings | Loan | 1 | 2 | ||
Construction and Land [Member] | Non-accruing [Member] | ||||
Troubled Debt Restructuring Note, Debtor [Abstract] | ||||
Amount of troubled debt restructuring | 0 | $ 0 | $ 0 | |
Total number of troubled debt restructurings | Loan | 0 | 0 | ||
Commercial Real Estate [Member] | ||||
Troubled Debt Restructuring Note, Debtor [Abstract] | ||||
Amount of troubled debt restructuring | 1,257,000 | $ 1,257,000 | $ 1,383,000 | |
Total number of troubled debt restructurings | Loan | 3 | 2 | ||
Non accrual Loans [Abstract] | ||||
Total non-accrual loans | 439,000 | $ 439,000 | $ 460,000 | |
Commercial Real Estate [Member] | Accruing [Member] | ||||
Troubled Debt Restructuring Note, Debtor [Abstract] | ||||
Amount of troubled debt restructuring | 1,192,000 | $ 1,192,000 | $ 1,306,000 | |
Total number of troubled debt restructurings | Loan | 2 | 1 | ||
Commercial Real Estate [Member] | Non-accruing [Member] | ||||
Troubled Debt Restructuring Note, Debtor [Abstract] | ||||
Amount of troubled debt restructuring | 65,000 | $ 65,000 | $ 77,000 | |
Total number of troubled debt restructurings | Loan | 1 | 1 | ||
Consumer [Member] | ||||
Non accrual Loans [Abstract] | ||||
Total non-accrual loans | 0 | $ 0 | $ 0 | |
Commercial Loans [Member] | ||||
Non accrual Loans [Abstract] | ||||
Total non-accrual loans | $ 48,000 | $ 48,000 | $ 27,000 |
Real Estate Owned (Details)
Real Estate Owned (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Real Estate [Line Items] | |||||
Real estate owned, net | $ 8,637 | $ 14,326 | $ 9,190 | $ 18,706 | |
Transferred from loans receivable | 3,123 | 9,066 | |||
Sales | (3,325) | (12,484) | |||
Write downs | (351) | (1,244) | |||
Other | 0 | $ 282 | |||
Mortgage loans in process of foreclosure | $ 3,400 | 5,100 | |||
One- to four-family [Member] | |||||
Real Estate [Line Items] | |||||
Real estate owned, net | 3,834 | 4,610 | |||
Multi Family [Member] | |||||
Real Estate [Line Items] | |||||
Real estate owned, net | 402 | 209 | |||
Construction and land [Member] | |||||
Real Estate [Line Items] | |||||
Real estate owned, net | 5,346 | 5,262 | |||
Commercial Real Estate [Member] | |||||
Real Estate [Line Items] | |||||
Real estate owned, net | 300 | 300 | |||
Real Estate Owned Prior To Valuation Allowance [Member] | |||||
Real Estate [Line Items] | |||||
Real estate owned, net | 9,882 | 10,381 | |||
Valuation Allowance, Real Estate Owned [Member] | |||||
Real Estate [Line Items] | |||||
Real estate owned, net | $ (1,245) | $ (1,191) |
Mortgage Servicing Rights (Deta
Mortgage Servicing Rights (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Mortgage servicing rights [Roll Forward] | |||
Mortgage servicing rights at beginning of the period | $ 1,422,000 | $ 2,521,000 | |
Additions | 972,000 | 1,999,000 | |
Amortization | (239,000) | (375,000) | |
Sales | 0 | (614,000) | |
Mortgage servicing rights at end of the period | 2,155,000 | 3,531,000 | |
Valuation allowance at end of period | (150,000) | (20,000) | |
Mortgage servicing rights at end of the period, net | 2,005,000 | 3,511,000 | |
Estimated future servicing rights amortization expense by period [Abstract] | |||
2,016 | 204,000 | ||
2,017 | 348,000 | ||
2,018 | 304,000 | ||
2,019 | 260,000 | ||
2,020 | 218,000 | ||
Thereafter | 671,000 | ||
Total | 2,005,000 | ||
MSR Sales [Abstract] | |||
Loans originated for sale | 1,000,000 | 995,100,000 | |
Sales of loans held for sale | 1,100,000 | 960,800,000 | |
Generated mortgage banking income | 55,600,000 | 50,600,000 | |
Loans sold on a servicing retained basis | 291,600,000 | 443,600,000 | $ 176,400,000 |
Sold mortgage servicing rights | 0 | 87,300,000 | |
Mortgage servicing rights book value | 0 | 614,000 | |
Mortgage servicing rights sold | 0 | 876,000 | |
Gain on sale of MSR | $ 0 | $ 262,000 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Deposits [Abstract] | |||||
Time deposits, greater than $250,000 | $ 45,400 | $ 45,400 | $ 37,700 | ||
Summary of interest expense on deposits [Abstract] | |||||
Interest expense on deposits | 1,835 | $ 1,358 | 3,554 | $ 2,711 | |
Summary of the contractual maturities of time deposits [Abstract] | |||||
Within one year | 479,358 | 479,358 | |||
More than one to two years | 192,580 | 192,580 | |||
More than two to three years | 4,311 | 4,311 | |||
More than three to four years | 3,986 | 3,986 | |||
More than four through five years | 1,865 | 1,865 | |||
Time deposits | $ 682,100 | $ 682,100 | $ 650,057 |
Borrowings (Details)
Borrowings (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016USD ($)Loan | Dec. 31, 2015USD ($) | |
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 745 | $ 7,203 |
Weighted average rate | 3.22% | 3.19% |
Short-term repurchase agreements, outstanding | $ 35,000 | |
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 414,745 | $ 441,203 |
Weighted average rate | 3.46% | 3.88% |
Total debt | $ 414,745 | $ 441,203 |
FHLB, year of maturity | 2,016 | |
Year of maturity | 2,017 | |
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | $ 93,000 | 94,100 |
Percentage of carrying value of qualifying unencumbered mortgage loans | 80.00% | |
Percentage of carrying value of qualifying of over four-family loans | 51.00% | |
Percentage of carrying value of qualifying home equity loans | 75.00% | |
FHLBC stock as collateral | $ 14,900 | 19,500 |
FHLB, Chicago, Advances, Maturing 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 150,000 | $ 220,000 |
Number of Federal Home Loan Bank Advances | Loan | 5 | |
FHLB, Chicago, Advances, Maturing 2016 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
FHLB, interest rate | 4.25% | |
FHLB, Chicago, Advances, Maturing 2016 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
FHLB, interest rate | 4.82% | |
FHLB, Chicago, Advances, Maturing 2016 [Member] | Weighted Average [Member] | ||
Debt Instrument [Line Items] | ||
FHLB, interest rate | 4.44% | 4.34% |
FHLB, Chicago, Advances, Maturing 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 65,000 | $ 65,000 |
Number of Federal Home Loan Bank Advances | Loan | 3 | |
FHLB, Chicago, Advances, Maturing 2017 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
FHLB, interest rate | 3.09% | |
FHLB, Chicago, Advances, Maturing 2017 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
FHLB, interest rate | 3.46% | |
FHLB, Chicago, Advances, Maturing 2017 [Member] | Weighted Average [Member] | ||
Debt Instrument [Line Items] | ||
FHLB, interest rate | 3.19% | 3.19% |
FHLB, Chicago, Advances, Maturing 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 65,000 | $ 65,000 |
Number of Federal Home Loan Bank Advances | Loan | 3 | |
FHLB, Chicago, Advances, Maturing 2018 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
FHLB, interest rate | 2.73% | |
FHLB, Chicago, Advances, Maturing 2018 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
FHLB, interest rate | 3.11% | |
FHLB, Chicago, Advances, Maturing 2018 [Member] | Weighted Average [Member] | ||
Debt Instrument [Line Items] | ||
FHLB, interest rate | 2.97% | 2.97% |
Federal Home Loan Bank Advances, Maturing 2021 Member [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 50,000 | $ 0 |
FHLB, interest rate | 0.70% | 0.00% |
Number of Federal Home Loan Bank Advances | Loan | 2 | |
Federal Home Loan Bank Advances, Maturing 2021 Member [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
FHLB, interest rate | 0.67% | |
Federal Home Loan Bank Advances, Maturing 2021 Member [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
FHLB, interest rate | 0.73% | |
Repurchase Agreements Maturing 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 84,000 | $ 84,000 |
Weighted average rate | 3.96% | 3.96% |
Repurchase Agreements Maturing 2018 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.89% | |
Repurchase Agreements Maturing 2018 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.31% |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets) | $ 412,262 | $ 405,947 |
Tier I capital (to risk-weighted assets) | 396,723 | 390,747 |
Common Equity Tier 1 Capital (to risk-weighted assets) | 396,723 | 390,747 |
Tier I capital (to average assets) | $ 396,723 | $ 390,747 |
Total capital (to risk-weighted assets) Ratio | 33.17% | 33.41% |
Tier I capital (to risk-weighted assets) Ratio | 31.92% | 32.16% |
Common Equity Tier 1 capital (to risk-weighted assets) Ratio | 31.92% | 32.16% |
Tier I capital (to average assets) Ratio | 22.63% | 22.20% |
Total capital (to risk-weighted assets), For Capital Adequacy | $ 99,442 | $ 97,207 |
Tier I capital (to risk-weighted assets), For Capital Adequacy | 74,581 | 72,905 |
Common Equity Tier I capital (to risk weighted assets), For Capital Adequacy | 55,936 | 54,679 |
Tier I capital (to average assets), For Capital Adequacy | $ 70,112 | $ 70,417 |
Total capital (to risk-weighted assets), For Capital Adequacy Ratio | 8.00% | 8.00% |
Tier I capital (to risk-weighted assets), For Capital Adequacy Ratio | 6.00% | 6.00% |
Common Equity Tier I capital ( to risk-weighted), For Capital Adequacy Ratio | 4.50% | 4.50% |
Tier I capital (to average assets), For Capital Adequacy Ratio | 4.00% | 4.00% |
Total capital (to risk-weighted assets), Minimum Capital Adequacy with Capital Buffer | $ 107,211 | |
Tier I capital (to risk weighted assets), Minimum Capital Adequacy with Capital Buffer | 82,350 | |
Common Equity Tier I capital (to risk weighted assets) Minimum Capital Adequacy with Capital Buffer | $ 63,705 | |
Total capital (to risk-weighted assets), Minimum Capital Adequacy with Capital Buffer Ratio | 8.625% | |
Tier I capital (to risk weighted assets), Minimum Capital Adequacy with Capital Buffer Ratio | 6.625% | |
Common Equity Tier I capital (to risk weighted), Minimum Capital Adequacy with Capital Buffer Ratio | 5.125% | |
Waterstone Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets) | $ 383,720 | $ 374,435 |
Tier I capital (to risk-weighted assets) | 368,202 | 359,284 |
Common Equity Tier 1 Capital (to risk-weighted assets) | 368,202 | 359,284 |
Tier I capital (to average assets) | 368,202 | 359,284 |
State of Wisconsin (to total assets) | $ 368,202 | $ 359,284 |
Total capital (to risk-weighted assets) Ratio | 30.91% | 30.92% |
Tier I capital (to risk-weighted assets) Ratio | 29.66% | 29.67% |
Common Equity Tier 1 capital (to risk-weighted assets) Ratio | 29.66% | 29.67% |
Tier I capital (to average assets) Ratio | 21.06% | 20.45% |
State of Wisconsin (to total assets) Ratio | 20.52% | 20.43% |
Total capital (to risk-weighted assets), For Capital Adequacy | $ 99,307 | $ 96,885 |
Tier I capital (to risk-weighted assets), For Capital Adequacy | 74,480 | 72,664 |
Common Equity Tier I capital (to risk weighted assets), For Capital Adequacy | 55,860 | 54,498 |
Tier I capital (to average assets), For Capital Adequacy | 69,919 | 70,286 |
State of Wisconsin (to total assets), For Capital Adequacy | $ 107,654 | $ 105,493 |
Total capital (to risk-weighted assets), For Capital Adequacy Ratio | 8.00% | 8.00% |
Tier I capital (to risk-weighted assets), For Capital Adequacy Ratio | 6.00% | 6.00% |
Common Equity Tier I capital ( to risk-weighted), For Capital Adequacy Ratio | 4.50% | 4.50% |
Tier I capital (to average assets), For Capital Adequacy Ratio | 4.00% | 4.00% |
State of Wisconsin (to total assets), For Capital Adequacy Ratio | 6.00% | 6.00% |
Total capital (to risk-weighted assets), Minimum Capital Adequacy with Capital Buffer | $ 107,065 | |
Tier I capital (to risk weighted assets), Minimum Capital Adequacy with Capital Buffer | 82,238 | |
Common Equity Tier I capital (to risk weighted assets) Minimum Capital Adequacy with Capital Buffer | $ 63,618 | |
Total capital (to risk-weighted assets), Minimum Capital Adequacy with Capital Buffer Ratio | 8.625% | |
Tier I capital (to risk weighted assets), Minimum Capital Adequacy with Capital Buffer Ratio | 6.625% | |
Common Equity Tier I capital (to risk weighted), Minimum Capital Adequacy with Capital Buffer Ratio | 5.125% | |
Total capital (to risk-weighted assets), To Be Well-Capitalized Under Prompt Corrective Action Provisions | $ 124,133 | $ 121,106 |
Tier I capital (to risk-weighted assets), To Be Well-Capitalized Under Prompt Corrective Action Provisions | 99,307 | 96,885 |
Tier I capital (to average assets), To Be Well-Capitalized Under Prompt Corrective Action Provisions | 80,687 | 78,719 |
Common Equity Tier I capital (to risk-weighted assets), To Be Well-Capitalized Under Prompt Corrective Action Provisions | $ 87,399 | $ 87,857 |
Total capital (to risk-weighted assets), To Be Well-Capitalized Under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% |
Tier I capital (to risk-weighted assets), To Be Well-Capitalized Under Prompt Corrective Action Provisions Ratio | 8.00% | 8.00% |
Common Equity Tier I capital (to risk-weighted) , To Be Well-Capitalized Under Prompt Corrective Action Provisions Ratio | 6.50% | 6.50% |
Tier I capital (to average assets), To Be Well-Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Taxes [Abstract] | ||||
Income tax expense | $ 4,518 | $ 3,064 | $ 6,658 | $ 4,754 |
Income before income taxes | 12,285 | $ 8,348 | $ 18,286 | $ 13,054 |
Effective tax rate | 36.40% | 36.40% | ||
Net deferred tax assets | $ 6,700 | $ 6,700 |
Offsetting of Assets and Liab52
Offsetting of Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Repo-Net Amount [Member] | ||
Schedule of Liabilities subject to netting agreement [Line Items] | ||
Short-term repurchase Agreements | $ 0 | $ 0 |
Long term repurchase agreements | 0 | 0 |
Repurchase Agreement | 0 | 0 |
Repo-Gross Recognized Liabilities [Member] | ||
Schedule of Liabilities subject to netting agreement [Line Items] | ||
Short-term repurchase Agreements | 745 | 7,203 |
Long term repurchase agreements | 84,000 | 84,000 |
Repurchase Agreement | 84,745 | 91,203 |
Gross Amounts Offset [Member] | ||
Schedule of Liabilities subject to netting agreement [Line Items] | ||
Short-term repurchase Agreements | 0 | 0 |
Long term repurchase agreements | 0 | 0 |
Repurchase Agreement | 0 | 0 |
Net Amounts Presented [Member] | ||
Schedule of Liabilities subject to netting agreement [Line Items] | ||
Short-term repurchase Agreements | 745 | 7,203 |
Long term repurchase agreements | 84,000 | 84,000 |
Repurchase Agreement | 84,745 | 91,203 |
Gross Amounts Not Offset [Member] | ||
Schedule of Liabilities subject to netting agreement [Line Items] | ||
Short-term repurchase Agreements | 745 | 7,203 |
Long term repurchase agreements | 84,000 | 84,000 |
Repurchase Agreement | $ 84,745 | $ 91,203 |
Commitments, Off-Balance Shee53
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2015 | ||
Maximum [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Period of commitments for loans extended to customers | 90 days | ||
Period of home equity loans available to the borrower | 10 years | ||
Period of construction loans available to the borrower | 1 year | ||
Commitments to Extend Credit Under Amortizing Loans [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet risks asset amount | [1] | $ 27,130 | $ 10,307 |
Commitments to Extend Credit Under Home Equity Lines of Credit [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet risks asset amount | [2] | 13,736 | 14,173 |
Unused Portion of Construction Loans [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet risks asset amount | [3] | 32,725 | 25,545 |
Unused Portion of Business Lines of Credit [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet risks asset amount | 15,134 | 16,392 | |
Standby Letters of Credit [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet risks liability amount | 392 | 566 | |
Probable losses | $ 0 | $ 0 | |
[1] | Commitments for loans are extended to customers for up to 90 days after which they expire. Excludes commitments to originate loans held for sale, which are discussed in the following footnote. | ||
[2] | Unused portions of home equity loans are available to the borrower for up to 10 years. | ||
[3] | Unused portions of construction loans are available to the borrower for up to one year. |
Derivative Financial Instrume54
Derivative Financial Instruments (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Forward commitments to sell mortgage loans [Member] | |
Derivative [Line Items] | |
Aggregate notional amount of derivatives | $ 476 |
Cumulative net gain (loss) reported as a component of other assets and liabilities | 2.9 |
Interest rate lock commitments [Member] | |
Derivative [Line Items] | |
Aggregate notional amount of derivatives | 273.8 |
Cumulative net gain (loss) reported as a component of other assets and liabilities | $ 5.5 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Basic and diluted earnings per share calculations [Abstract] | ||||
Net income | $ 7,767 | $ 5,284 | $ 11,628 | $ 8,300 |
Net income available to unvested restricted shares | 5 | 83 | 7 | 126 |
Net income available to common stockholders | $ 7,762 | $ 5,201 | $ 11,621 | $ 8,174 |
Weighted average shares outstanding (in shares) | 26,919 | 29,841 | 26,942 | 31,098 |
Effect of dilutive potential common shares (in shares) | 285 | 350 | 301 | 315 |
Diluted weighted average shares outstanding (in shares) | 27,204 | 30,191 | 27,243 | 31,413 |
Basic earnings per share (in dollars per share) | $ 0.29 | $ 0.17 | $ 0.43 | $ 0.26 |
Diluted earnings per share (in dollars per share) | $ 0.29 | $ 0.17 | $ 0.43 | $ 0.26 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held for sale | $ 208,807,000 | $ 166,516,000 | ||
Unrealized holding losses arising during the period [Abstract] | ||||
Loans, impaired, outstanding balance | 3,500,000 | 9,600,000 | ||
Loans, impaired, specific reserve | 800,000 | 1,600,000 | ||
Real estate owned, change in fair value | 351,000 | $ 1.2 | ||
Mortgage servicing rights, impaired, valuation allowance | 150,000 | |||
Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage-backed securities | 86,830,000 | 96,667,000 | ||
Collateralized mortgage obligations, Government sponsored enterprise issued | 68,967,000 | 70,428,000 | ||
Government sponsored enterprise bonds | 3,778,000 | 3,746,000 | ||
Municipal securities | 75,520,000 | 79,159,000 | ||
Other debt securities | 16,900,000 | 16,963,000 | ||
Certificates of deposit | 1,731,000 | 2,695,000 | ||
Loans held for sale | 208,807,000 | 166,516,000 | ||
Mortgage banking derivative assets | 5,488,000 | 2,313,000 | ||
Mortgage banking derivatives liabilities | 2,917,000 | 125,000 | ||
Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage-backed securities | 0 | 0 | ||
Collateralized mortgage obligations, Government sponsored enterprise issued | 0 | 0 | ||
Government sponsored enterprise bonds | 0 | 0 | ||
Municipal securities | 0 | 0 | ||
Other debt securities | 2,467,000 | 2,600,000 | ||
Certificates of deposit | 0 | 0 | ||
Loans held for sale | 0 | 0 | ||
Mortgage banking derivative assets | 0 | 0 | ||
Mortgage banking derivatives liabilities | 0 | 0 | ||
Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage-backed securities | 86,830,000 | 96,667,000 | ||
Collateralized mortgage obligations, Government sponsored enterprise issued | 68,967,000 | 70,428,000 | ||
Government sponsored enterprise bonds | 3,778,000 | 3,746,000 | ||
Municipal securities | 75,520,000 | 79,159,000 | ||
Other debt securities | 14,433,000 | 14,363,000 | ||
Certificates of deposit | 1,731,000 | 2,695,000 | ||
Loans held for sale | 208,807,000 | 166,516,000 | ||
Mortgage banking derivative assets | 0 | 0 | ||
Mortgage banking derivatives liabilities | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage-backed securities | 0 | 0 | ||
Collateralized mortgage obligations, Government sponsored enterprise issued | 0 | 0 | ||
Government sponsored enterprise bonds | 0 | 0 | ||
Municipal securities | 0 | 0 | ||
Other debt securities | 0 | 0 | ||
Certificates of deposit | 0 | 0 | ||
Loans held for sale | 0 | 0 | ||
Mortgage banking derivative assets | 5,488,000 | 2,313,000 | ||
Mortgage banking derivatives liabilities | 2,917,000 | 125,000 | ||
Non-recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans, net | [1] | 2,731,000 | 8,024,000 | |
Real estate owned | 8,637,000 | 9,190,000 | ||
Impaired mortgage servicing rights | 1,564,000 | |||
Non-recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans, net | [1] | 0 | 0 | |
Real estate owned | 0 | 0 | ||
Impaired mortgage servicing rights | 0 | |||
Non-recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans, net | [1] | 0 | 0 | |
Real estate owned | 0 | 0 | ||
Impaired mortgage servicing rights | 0 | |||
Non-recurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans, net | [1] | 2,731,000 | 8,024,000 | |
Real estate owned | 8,637,000 | 9,190,000 | ||
Impaired mortgage servicing rights | 1,564,000 | |||
Mortgage Banking Derivatives [Member] | ||||
Assets measured on recurring basis, unobservable input reconciliation [Roll Forward] | ||||
Beginning balance | 2,188,000 | $ 999,000 | 999,000 | |
Unrealized holding losses arising during the period [Abstract] | ||||
Mortgage derivative gain, net | 383,000 | 1,189,000 | ||
Ending balance | $ 2,571,000 | $ 2,188,000 | ||
[1] | Represents collateral-dependent impaired loans, net, which are included in loans. |
Fair Value Measurements, Valuat
Fair Value Measurements, Valuation Techniques (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Mortgage Banking Derivatives [Member] | Pricing Models [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair value | $ 2,571,000 |
Mortgage Banking Derivatives [Member] | Pricing Models [Member] | Minimum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Pull through rate | 38.00% |
Mortgage Banking Derivatives [Member] | Pricing Models [Member] | Maximum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Pull through rate | 100.00% |
Impaired Loans [Member] | Market Approach [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair value | $ 2,731,000 |
Impaired Loans [Member] | Market Approach [Member] | Minimum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Discount rates applied to appraisals | 15.00% |
Impaired Loans [Member] | Market Approach [Member] | Maximum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Discount rates applied to appraisals | 30.00% |
Real Estate Owned [Member] | Market Approach [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair value | $ 8,637,000 |
Real Estate Owned [Member] | Market Approach [Member] | Minimum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Discount rates applied to appraisals | 0.00% |
Real Estate Owned [Member] | Market Approach [Member] | Maximum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Discount rates applied to appraisals | 85.70% |
Mortgage Servicing Rights [Member] | Pricing Models [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair value | $ 1,564,000 |
Mortgage Servicing Rights [Member] | Pricing Models [Member] | Minimum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Prepayment rate | 7.80% |
Discount rate | 10.00% |
Cost to service | $ 75.76 |
Mortgage Servicing Rights [Member] | Pricing Models [Member] | Maximum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Prepayment rate | 37.50% |
Discount rate | 11.00% |
Cost to service | $ 571.60 |
Fair Value Measurements, Balanc
Fair Value Measurements, Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financial Assets [Abstract] | ||
Securities available-for-sale | $ 253,726 | $ 269,658 |
Loans held for sale | 208,807 | 166,516 |
Carrying Amount [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 82,456 | 100,471 |
Securities available-for-sale | 253,726 | 269,658 |
Loans held for sale | 208,807 | 166,516 |
Loans receivable | 1,130,036 | 1,114,934 |
FHLB stock | 14,850 | 19,500 |
Accrued interest receivable | 4,129 | 4,108 |
Mortgage servicing rights | 2,005 | 1,422 |
Mortgage banking derivative assets | 5,488 | 2,313 |
Financial Liabilities [Abstract] | ||
Deposits | 942,709 | 893,361 |
Advance payments by borrowers for taxes | 16,011 | 3,661 |
Borrowings | 414,745 | 441,203 |
Accrued interest payable | 1,431 | 1,642 |
Mortgage banking derivative liabilities | 2,917 | 125 |
Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 82,456 | 100,471 |
Securities available-for-sale | 253,726 | 269,658 |
Loans held for sale | 208,807 | 166,516 |
Loans receivable | 1,172,946 | 1,165,370 |
FHLB stock | 14,850 | 19,500 |
Accrued interest receivable | 4,129 | 4,108 |
Mortgage servicing rights | 2,058 | 1,658 |
Mortgage banking derivative assets | 5,488 | 2,313 |
Financial Liabilities [Abstract] | ||
Deposits | 943,154 | 894,015 |
Advance payments by borrowers for taxes | 16,011 | 3,661 |
Borrowings | 423,122 | 463,238 |
Accrued interest payable | 1,431 | 1,642 |
Mortgage banking derivative liabilities | 2,917 | 125 |
Fair Value [Member] | Level 1 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 72,456 | 100,471 |
Securities available-for-sale | 2,467 | 2,600 |
Loans held for sale | 0 | 0 |
Loans receivable | 0 | 0 |
FHLB stock | 0 | 0 |
Accrued interest receivable | 4,129 | 4,108 |
Mortgage servicing rights | 0 | 0 |
Mortgage banking derivative assets | 0 | 0 |
Financial Liabilities [Abstract] | ||
Deposits | 260,609 | 243,304 |
Advance payments by borrowers for taxes | 16,011 | 3,661 |
Borrowings | 0 | 0 |
Accrued interest payable | 1,431 | 1,642 |
Mortgage banking derivative liabilities | 0 | 0 |
Fair Value [Member] | Level 2 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 10,000 | 0 |
Securities available-for-sale | 251,259 | 267,058 |
Loans held for sale | 208,807 | 166,516 |
Loans receivable | 0 | 0 |
FHLB stock | 14,850 | 19,500 |
Accrued interest receivable | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Mortgage banking derivative assets | 0 | 0 |
Financial Liabilities [Abstract] | ||
Deposits | 682,545 | 650,711 |
Advance payments by borrowers for taxes | 0 | 0 |
Borrowings | 423,122 | 463,238 |
Accrued interest payable | 0 | 0 |
Mortgage banking derivative liabilities | 0 | 0 |
Fair Value [Member] | Level 3 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans receivable | 1,172,946 | 1,165,370 |
FHLB stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Mortgage servicing rights | 2,058 | 1,658 |
Mortgage banking derivative assets | 5,488 | 2,313 |
Financial Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Advance payments by borrowers for taxes | 0 | 0 |
Borrowings | 0 | 0 |
Accrued interest payable | 0 | 0 |
Mortgage banking derivative liabilities | $ 2,917 | $ 125 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Segment | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting [Abstract] | |||||
Number of reportable segments | Segment | 2 | ||||
Segment Reporting Information [Line Items] | |||||
Net interest income | $ 10,165 | $ 10,060 | $ 20,148 | $ 19,496 | |
Provision for loan losses | 0 | 805 | 205 | 1,140 | |
Net interest income after provision for loan losses | 10,165 | 9,255 | 19,943 | 18,356 | |
Noninterest income | 36,351 | 31,040 | 57,796 | 53,073 | |
Noninterest expenses [Abstract] | |||||
Compensation, payroll taxes, and other employee benefits | 25,709 | 23,272 | 43,395 | 41,350 | |
Occupancy, office furniture and equipment | 2,419 | 2,269 | 4,755 | 4,712 | |
FDIC insurance premiums | 155 | 271 | 360 | 607 | |
Real estate owned | 163 | 686 | 307 | 1,229 | |
Other | 3,631 | 3,124 | 6,316 | 6,057 | |
Total noninterest expenses | 34,231 | 31,947 | 59,453 | 58,375 | |
Income before income taxes | 12,285 | 8,348 | 18,286 | 13,054 | |
Income tax expense | 4,518 | 3,064 | 6,658 | 4,754 | |
Net income | 7,767 | 5,284 | 11,628 | 8,300 | |
Total assets | 1,799,266 | 1,737,223 | 1,799,266 | 1,737,223 | $ 1,762,729 |
Holding Company and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 71 | 88 | 138 | 171 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Net interest income after provision for loan losses | 71 | 88 | 138 | 171 | |
Noninterest income | (252) | (111) | (462) | (162) | |
Noninterest expenses [Abstract] | |||||
Compensation, payroll taxes, and other employee benefits | (115) | (107) | (228) | (212) | |
Occupancy, office furniture and equipment | 0 | 0 | 0 | 0 | |
FDIC insurance premiums | 0 | 0 | 0 | 0 | |
Real estate owned | 0 | 0 | 0 | 0 | |
Other | (94) | 94 | (154) | 174 | |
Total noninterest expenses | (209) | (13) | (382) | (38) | |
Income before income taxes | 28 | (10) | 58 | 47 | |
Income tax expense | 10 | 35 | 24 | 71 | |
Net income | 18 | (45) | 34 | (24) | |
Total assets | (240,226) | (200,730) | (240,226) | (200,730) | |
Operating Segments [Member] | |||||
Noninterest expenses [Abstract] | |||||
Other | 5,785 | 5,449 | 10,636 | 10,477 | |
Operating Segments [Member] | Community Banking [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 9,962 | 9,742 | 19,733 | 18,975 | |
Provision for loan losses | 0 | 650 | 100 | 950 | |
Net interest income after provision for loan losses | 9,962 | 9,092 | 19,633 | 18,025 | |
Noninterest income | 1,203 | 920 | 1,925 | 1,678 | |
Noninterest expenses [Abstract] | |||||
Compensation, payroll taxes, and other employee benefits | 4,037 | 3,807 | 8,392 | 8,535 | |
Occupancy, office furniture and equipment | 816 | 801 | 1,648 | 1,647 | |
FDIC insurance premiums | 155 | 271 | 360 | 607 | |
Real estate owned | 163 | 687 | 307 | 1,214 | |
Other | 1,264 | 1,135 | 2,453 | 2,104 | |
Total noninterest expenses | 6,435 | 6,701 | 13,160 | 14,107 | |
Income before income taxes | 4,730 | 3,311 | 8,398 | 5,596 | |
Income tax expense | 1,421 | 917 | 2,604 | 1,582 | |
Net income | 3,309 | 2,394 | 5,794 | 4,014 | |
Total assets | 1,793,197 | 1,706,005 | 1,793,197 | 1,706,005 | |
Operating Segments [Member] | Mortgage Banking [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 132 | 230 | 277 | 350 | |
Provision for loan losses | 0 | 155 | 105 | 190 | |
Net interest income after provision for loan losses | 132 | 75 | 172 | 160 | |
Noninterest income | 35,400 | 30,231 | 56,333 | 51,557 | |
Noninterest expenses [Abstract] | |||||
Compensation, payroll taxes, and other employee benefits | 21,787 | 19,572 | 35,231 | 33,027 | |
Occupancy, office furniture and equipment | 1,603 | 1,468 | 3,107 | 3,065 | |
FDIC insurance premiums | 0 | 0 | 0 | 0 | |
Real estate owned | 0 | (1) | 0 | 15 | |
Other | 4,615 | 4,220 | 8,337 | 8,199 | |
Total noninterest expenses | 28,005 | 25,259 | 46,675 | 44,306 | |
Income before income taxes | 7,527 | 5,047 | 9,830 | 7,411 | |
Income tax expense | 3,087 | 2,112 | 4,030 | 3,101 | |
Net income | 4,440 | 2,935 | 5,800 | 4,310 | |
Total assets | $ 246,295 | $ 231,948 | $ 246,295 | $ 231,948 |