Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 8-May-14 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Coastway Bancorp, Inc. | ' |
Entity Central Index Key | '0001585023 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 4,949,179 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cash and cash equivalents: | ' | ' |
Cash and due from banks | $2,041 | $2,621 |
Interest-earning deposits | 21,265 | 48,898 |
Total cash and cash equivalents | 23,306 | 51,519 |
Certificates of deposit | 3,000 | ' |
Federal Home Loan Bank stock, at cost | 2,694 | 2,694 |
Loans, net of allowance for loan losses of $1,821 and $1,656, respectively | 340,379 | 328,576 |
Loans held for sale | 7,785 | 8,648 |
Premises and equipment, net | 25,513 | 25,584 |
Accrued interest receivable | 1,089 | 1,094 |
Real estate held for sale | 3,515 | 3,515 |
Foreclosed real estate | 1,542 | 1,580 |
Bank-owned life insurance | 4,090 | 4,059 |
Net deferred tax asset | 985 | 440 |
Other assets | 4,291 | 4,969 |
Total assets | 418,189 | 432,678 |
Deposits: | ' | ' |
Interest-bearing | 275,375 | 266,165 |
Non-interest-bearing | 67,775 | 63,751 |
Total deposits | 343,150 | 329,916 |
Borrowed funds | 1,300 | 28,000 |
Stock subscriptions | ' | 43,398 |
Accrued expenses and other liabilities | 3,134 | 3,525 |
Total liabilities | 347,584 | 404,839 |
Commitments and contingencies (Note 5) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.01 par value; 20,000,000 shares authorized, none issued or outstanding | ' | ' |
Common stock, $0.01 par value; 50,000,000 shares authorized; 4,949,179 issued and outstanding at March 31, 2014 | 49 | ' |
Additional paid-in capital | 47,518 | ' |
Retained earnings | 27,152 | 28,034 |
Unearned compensation - Employee Stock Ownership Plan (ESOP) | -3,919 | ' |
Accumulated other comprehensive loss | -195 | -195 |
Total stockholders' equity | 70,605 | 27,839 |
Total liabilities and stockholders' equity | $418,189 | $432,678 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets | ' | ' |
Loans, allowance for loan losses | $1,821 | $1,656 |
Preferred stock, par value (in dollars per share) | $0.01 | ' |
Preferred stock, shares authorized | 20,000,000 | ' |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | ' |
Common stock, shares authorized | 50,000,000 | ' |
Common stock, shares issued | 4,949,179 | ' |
Common stock, shares outstanding | 4,949,179 | ' |
Consolidated_Statements_of_Net
Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest income: | ' | ' |
Interest and fees on loans | $3,670 | $3,443 |
Other interest income | 32 | 5 |
Total interest income | 3,702 | 3,448 |
Interest expense: | ' | ' |
Interest on deposits | 584 | 634 |
Interest on borrowed funds | 22 | 42 |
Total interest expense | 606 | 676 |
Net interest income | 3,096 | 2,772 |
Provision for loan losses | 167 | 82 |
Net interest income after provision for loan losses | 2,929 | 2,690 |
Non-interest income: | ' | ' |
Customer service fees | 730 | 706 |
Gain on sales of loans, net | 358 | 1,105 |
Bank-owned life insurance income | 31 | ' |
Other income | 31 | 73 |
Total non-interest income | 1,150 | 1,884 |
Non-interest expenses: | ' | ' |
Salary and employee benefits | 2,182 | 1,985 |
Occupancy and equipment | 626 | 566 |
Data processing | 395 | 367 |
Professional fees | 202 | 110 |
Deposit servicing | 178 | 115 |
Foreclosed real estate | 52 | 47 |
FDIC insurance assessment | 88 | 86 |
Advertising | 43 | 36 |
Contribution to Coastway Cares Charitable Foundation II | 1,521 | ' |
Other general and administrative | 325 | 376 |
Total non-interest expenses | 5,612 | 3,688 |
Income (loss) before income taxes | -1,533 | 886 |
Income tax expense (benefit) | -651 | 332 |
Net income (loss) and comprehensive income (loss) | ($882) | $554 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Unearned Compensation-ESOP | Accumulated Other Comprehensive Loss |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Dec. 31, 2013 | $27,839 | ' | ' | $28,034 | ' | ($195) |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net loss and comprehensive loss | -882 | ' | ' | -882 | ' | ' |
Issuance of common stock for initial public offering, net of expenses of $1,926 | 46,345 | 48 | 46,297 | ' | ' | ' |
Issuance of common stock for initial public offering, net of expenses (in shares) | ' | 4,827,125 | ' | ' | ' | ' |
Issuance of common stock to Coastway Cares Charitable Foundation II | 1,221 | 1 | 1,220 | ' | ' | ' |
Issuance of common stock to Coastway Cares Charitable Foundation II (in shares) | ' | 122,054 | ' | ' | ' | ' |
Common stock purchased by the ESOP (395,934 shares) | -3,959 | ' | ' | ' | -3,959 | ' |
ESOP shares committed to be allocated (3,959 shares) | 41 | ' | 1 | ' | 40 | ' |
Balance at Mar. 31, 2014 | $70,605 | $49 | $47,518 | $27,152 | ($3,919) | ($195) |
Balance (in shares) at Mar. 31, 2014 | ' | 4,949,179 | ' | ' | ' | ' |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 |
Consolidated Statement of Changes in Stockholders' Equity | ' |
Issuance of common stock for initial public offering, expenses (in dollars) | $1,926 |
ESOP shares issued | 395,934 |
ESOP shares committed to be allocated, number of shares | 3,959 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net (loss) income | ($882) | $554 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Provision for loan losses | 167 | 82 |
Loans originated for sale | -23,500 | -37,115 |
Principal balance of loans sold | 24,363 | 38,022 |
Gain on sale of portfolio loans, net | ' | -107 |
Amortization of deferred loan costs | 151 | 115 |
Loss (gain) on foreclosed real estate | 38 | 6 |
Depreciation and amortization expense | 250 | 233 |
Bank-owned life insurance income | -31 | ' |
Deferred income tax expense (benefit) | -545 | 68 |
Issuance of common stock to Coastway Cares Charitable Foundation II | 1,221 | ' |
ESOP expense | 41 | ' |
Net change in: | ' | ' |
Accrued interest receivable | 5 | -27 |
Prepaid FDIC insurance assessment | ' | 80 |
Other, net | 287 | -388 |
Net cash provided by operating activities | 1,565 | 1,523 |
Cash flows from investing activities: | ' | ' |
Purchase of certificates of deposit | -3,000 | ' |
Proceeds from redemption of FHLB stock | ' | 342 |
Loan originations, net of principal payments | -12,121 | -13,627 |
Proceeds from portfolio loans sold | ' | 3,724 |
Proceeds from sale of foreclosed real estate | ' | 736 |
Purchases of premises and equipment | -179 | -560 |
Net cash used by investing activities | -15,300 | -9,385 |
Cash flows from financing activities: | ' | ' |
Net increase in deposits | 13,234 | 16,452 |
Net change in short-term borrowed funds | -26,000 | -9,000 |
Repayments of long-term borrowed funds | -700 | -1,332 |
Issuance of common stock for initial public offering | 46,345 | ' |
Conversion of stock subscriptions to common stock | -43,398 | ' |
Purchase of common stock by ESOP | -3,959 | ' |
Net cash provided (used) by financing activities | -14,478 | 6,120 |
Net change in cash and cash equivalents | -28,213 | -1,742 |
Cash and cash equivalents at beginning of period | 51,519 | 7,020 |
Cash and cash equivalents at end of period | 23,306 | 5,278 |
Supplemental cash flow information: | ' | ' |
Interest paid on deposits | 587 | 633 |
Interest paid on borrowed funds | 25 | 46 |
Income taxes paid | 76 | 150 |
Supplemental non-cash information: | ' | ' |
Loans transferred to foreclosed real estate | ' | $270 |
Basis_of_Presentation_and_Cons
Basis of Presentation and Consolidation | 3 Months Ended |
Mar. 31, 2014 | |
Basis of Presentation and Consolidation | ' |
Basis of Presentation and Consolidation | ' |
(1) Basis of Presentation and Consolidation | |
General information | |
Coastway Community Bank (the “Bank”) is a Rhode Island-chartered savings bank. The Bank provides a variety of financial services to individuals and small businesses throughout Rhode Island. Its primary deposit products are savings, demand, money market and term certificate accounts and its primary lending products are one-to four-family residential mortgage loans, home equity loans and lines of credit, commercial real estate and SBA loans. Prior to January 14, 2014, the Bank was 100% owned by Coastway Bancorp, LLC (the “LLC”) and the LLC was 100% owned by Coastway Bancorp, MHC (“Company”). The Company, a Rhode Island chartered mutual holding company and its wholly-owned subsidiary, the LLC, a Rhode Island limited liability company, were formed on February 1, 2013. | |
Stock Conversion | |
On August 22, 2013, the Board of Directors of the Company, LLC and the Bank adopted the Plan of Conversion and Reorganization (“Conversion”) to convert the Company from the mutual holding company form of organization to a stock holding company form of organization with a new Maryland-chartered stock corporation, Coastway Bancorp, Inc. (“Corporation”). | |
At December 31, 2013, stock subscriptions received aggregated $43.4 million and were included in liabilities in the accompanying consolidated balance sheets. Conversion costs had been capitalized and reduced the proceeds from the stock sold in the Conversion. At December 31, 2013, conversion costs amounting to $888,000 were included in other assets in the accompanying consolidated balance sheets. | |
On January 14, 2014, the Conversion was completed and Coastway Bancorp, Inc. became the parent holding company for Coastway Community Bank. A total of 4,827,125 shares of Corporation common stock were sold to depositors and to the general public, including those issued to the Corporation’s tax-qualified employee benefit plans, at $10.00 per share through which the Corporation received net offering proceeds of approximately $46.3 million. Also, on January 14, 2014, the Corporation contributed $300,000 in cash and 122,054 shares of common stock to Coastway Cares Charitable Foundation II which together totaled 3.15% of the gross proceeds of the offering totaling $1.5 million which was recorded as a component of non-interest expense during the three months ended March 31, 2014. The total number of shares of common stock outstanding upon completion of the Conversion was 4,949,179 shares. | |
As part of the Conversion, Coastway Bancorp, Inc. established a liquidation account in an amount equal to the net worth of Coastway Bancorp, MHC as of the date of the latest consolidated balance sheet appearing in the final prospectus distributed in connection with the Conversion, or $27.5 million. The liquidation account will be maintained for the benefit of eligible account holders and supplemental eligible account holders who maintain their accounts at Coastway Community Bank after the Conversion. The liquidation account will be reduced annually to the extent that such account holders have reduced their qualifying deposits as of each anniversary date. Subsequent increases will not restore an account holder’s interest in the liquidation account. In the event of a complete liquidation of the Corporation or the Bank, each eligible account holder will be entitled to receive balances for accounts then held. | |
Subsequent to the Conversion, the Corporation may not declare or pay dividends on, and may not repurchase, any of its shares of common stock if the effect thereof would cause stockholders’ equity to be reduced below the liquidation account balance, applicable regulatory capital maintenance requirements, or if such declaration, payment or repurchase would otherwise violate regulatory requirements. | |
Earnings (loss) per share is not presented herein as common stock has not been outstanding during the entire three months ended March 31, 2014. At March 31, 2014, there are no common stock equivalents. | |
Basis of Presentation | |
The consolidated financial statements include the accounts of the Corporation and its subsidiaries. All significant intercompany transactions have been eliminated. | |
The unaudited consolidated financial statements of the Corporation presented herein have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information and pursuant to the rules of the SEC for quarterly reports on Form 10-Q and Article 8 of Regulation S-X and do not include all of the information and note disclosures required by GAAP for a complete set of financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures necessary for the fair presentation of the accompanying consolidated financial statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying unaudited financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2013, included in the Corporation’s annual report on Form 10-K. | |
In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses and the valuation of deferred tax assets. | |
Recent Accounting Pronouncements | |
As an “emerging growth company” as defined in Title 1 of the Jumpstart Our Business Startups (JOBS) Act, the Corporation has elected to use the extended transition period to delay the adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. As of March 31, 2014, there is no significant difference in the comparability of the financial statements as a result of this extended transition period. | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02, Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income. This update requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. This ASU is effective prospectively for public entities for reporting periods beginning after December 15, 2012 and for nonpublic entities for reporting periods beginning after December 15, 2013. Under the extended transition period for an emerging growth company, the Corporation adopted this ASU on January 1, 2014. The impact of adoption of this ASU was not material to the presentation of comprehensive income in the Corporation’s consolidated financial statements. | |
In January 2014, the FASB issued ASU 2014-04, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40) which is intended to reduce diversity by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU also provides guidance on disclosures of the amount of foreclosed residential real estate properties and of the recorded investment in consumer mortgage loans that are in process of foreclosure. Under the extended transition period for an emerging growth company, the Corporation will adopt this standard for annual periods beginning after December 15, 2014 and interim periods within annual periods beginning after December 15, 2015. |
Certificates_of_Deposit
Certificates of Deposit | 3 Months Ended |
Mar. 31, 2014 | |
Certificates of Deposit | ' |
Certificates of Deposit | ' |
(2) Certificates of Deposit | |
At March 31, 2014, certificates of deposit amounting to $3.0 million with an interest rate of 0.65% mature on September 13, 2015. Certificates of deposit are carried at cost which approximates fair value. |
Loans
Loans | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||
Loans | ' | |||||||||||||||||||||||||
Loans | ' | |||||||||||||||||||||||||
(3) Loans | ||||||||||||||||||||||||||
Major classifications of loans at the dates indicated, are as follows: | ||||||||||||||||||||||||||
(Dollars in thousands) | March 31, | December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Residential real estate mortgage loans: | ||||||||||||||||||||||||||
1-4 family | $ | 99,743 | $ | 98,180 | ||||||||||||||||||||||
Home equity loans and lines of credit | 82,801 | 83,334 | ||||||||||||||||||||||||
Total residential real estate mortgage loans | 182,544 | 181,514 | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Commercial real estate | 95,538 | 91,609 | ||||||||||||||||||||||||
Commercial business | 7,455 | 8,301 | ||||||||||||||||||||||||
Commercial construction | 9,388 | 7,099 | ||||||||||||||||||||||||
SBA | 43,626 | 38,004 | ||||||||||||||||||||||||
Total commercial loans | 156,007 | 145,013 | ||||||||||||||||||||||||
Consumer | 1,548 | 1,672 | ||||||||||||||||||||||||
Total loans | 340,099 | 328,199 | ||||||||||||||||||||||||
Allowance for loan losses | (1,821 | ) | (1,656 | ) | ||||||||||||||||||||||
Net deferred loan costs | 2,101 | 2,033 | ||||||||||||||||||||||||
Loans, net | $ | 340,379 | $ | 328,576 | ||||||||||||||||||||||
Loan Segments | ||||||||||||||||||||||||||
One-to four-family residential real estate and home equity — Loans in these segments are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The Bank generally has first liens on one-to four-family residential real estate loans and first or second liens on property securing home equity loans and equity lines-of-credit. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in these segments. | ||||||||||||||||||||||||||
Commercial — Commercial loan segments include commercial real estate, commercial and industrial loans for businesses and construction financing for business/properties located principally in Rhode Island. For commercial real estate loans, the underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Non-real estate commercial loans are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. Commercial construction generally represent loans to finance construction of retail and office space. Commercial loans also include loans made under the SBA 504 program which is an economic development program that finances the expansion of small businesses. The Bank generally provides 50% of the projected costs, and the loan is secured by a first lien on the commercial property. The SBA does not provide a guarantee on loans made under the SBA 504 program. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Management monitors the cash flows of these loans. | ||||||||||||||||||||||||||
SBA — Loans in this segment include commercial loans underwritten using SBA guidelines for the SBA’s 7(a) program and include both guaranteed and unguaranteed portions of the same loans. Currently, under the SBA 7(a) program, loans may qualify for guarantees up to 85% of principal and accrued interest up to a maximum SBA guarantee of $3.75 million per borrower and related entities. The Bank does not treat the SBA guarantee as a substitute for a borrower meeting reasonable credit standards. SBA guarantees are generally sought on loans that exhibit minimum capital levels, a short time in business, lower collateral coverage or maximum loan terms beyond the Bank’s normal underwriting criteria. For a number of SBA loans, the Bank has sold portions of certain loans and retains the unguaranteed portion while continuing to service the entire loan. The guaranteed portion of SBA loans in the Bank’s portfolio is not allocated a general reserve because the Bank has not experienced losses on such loans and management expects the guarantees will be effective, if necessary. | ||||||||||||||||||||||||||
Consumer — This segment includes unsecured and vehicle loans and repayment is dependent on the credit quality of the individual borrower. | ||||||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||
Allowance for Loan Loss Methodology | ||||||||||||||||||||||||||
The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. For impaired loans that are deemed collateral dependent, the recorded balance of the loan is reduced by charge-off to fair value of the collateral net of estimated selling costs. | ||||||||||||||||||||||||||
The allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general and specific components as described below. | ||||||||||||||||||||||||||
The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by loan segments. Management uses a ten year historical loss period to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies; charge-off trends over the past three year period; weighted average risk weightings; loan concentrations; management’s assessment of internal factors; and management’s assessment of external factors such as interest rates, real estate markets and local and national economic factors. There were no changes in the Bank’s policies or methodology pertaining to the general component of the allowance for loan losses during the three months ended March 31, 2014 and the year ended December 31, 2013. | ||||||||||||||||||||||||||
The Corporation evaluates the need for a specific allowance when loans are determined to be impaired. Loss is measured by determining the present value of expected future cash flows or, for collateral-dependent loans, the fair value of the collateral less estimated selling expenses. Factors in identifying a specific problem loan include: (1) the strength of the customer’s personal or business cash flows; (2) the availability of other sources of repayment; (3) the amount due or past due; (4) the type and value of collateral; (5) the strength of the collateral position; (6) the estimated cost to sell the collateral; and (7) the borrower’s effort to cure the delinquency. In addition, for loans secured by real estate, the Corporation considers the extent of any past due and unpaid property taxes applicable to the property serving as collateral on the mortgage. | ||||||||||||||||||||||||||
Credit Quality Indicators | ||||||||||||||||||||||||||
Commercial and SBA loans are risk rated based on key factors such as management ability, financial condition, debt repayment ability, collateral, industry conditions and loan structure. Risk ratings 1 through 5 are considered “pass” rated, risk rating 5.5 is considered “watch list”, risk rating 6 is considered “special mention”, while risk ratings 7, 8 and 9 are considered “classified” ratings. | ||||||||||||||||||||||||||
Risk Ratings 1-5: Loans in this category are pass rated loans with low to average risk. | ||||||||||||||||||||||||||
Risk rating 5.5 — Watch List: loans in this category exhibit the characteristics associated with 5 risk-rated loans, but possess negative factors that warrant increased oversight yet do not warrant a negative risk rating. Factors may include short-term negative operating trends, temporary liquidity shortfalls, modest delinquency, missing or incomplete financial information, or negative balance sheet trends. | ||||||||||||||||||||||||||
Risk Rating 6 — Special Mention: these loans have potential weaknesses and require management’s close attention. If these weaknesses are not addressed, they may weaken the prospects for repayment at a future date. Special mention assets do not expose the institution to sufficient risk to warrant a classified rating. | ||||||||||||||||||||||||||
Risk Rating 7 — Substandard: loans in this category are inadequately protected by the current financial condition and repayment ability of the borrower or pledged collateral, if any. These assets have a well-defined weakness(es) that jeopardizes the repayment of the debt in full, and are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. | ||||||||||||||||||||||||||
Risk Rating 8 — Doubtful: loans have all the weaknesses of those classified substandard. In addition, it is highly unlikely that a doubtful asset can be collected or liquidated in full. The possibility of loss is extremely high. However, because of certain important and reasonably specific pending factors, which may work to strengthen the asset, its classification as a loss is deferred until the asset’s status can be better determined. | ||||||||||||||||||||||||||
Risk Rating 9 — Loss: loans classified as loss are considered uncollectible and of such little value that they are no longer considered bankable. This classification does not mean that the asset has no recovery or salvage value. However, it is not practical or desirable to defer writing off the asset even though partial recovery may occur in the future. | ||||||||||||||||||||||||||
On an annual basis, or more often if needed, the Bank formally reviews the ratings on commercial and SBA loans. On an annual basis, the Bank engages an independent third-party to review a significant portion of loans within these segments. Management uses the results of these reviews as part of its annual review process. Credit quality for residential real estate mortgage and consumer loans is determined by monitoring loan payment history and on-going communications with borrowers. | ||||||||||||||||||||||||||
The following table presents the credit risk profile by internally assigned risk rating category at the dates indicated: | ||||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||
Commercial | Commercial | Commercial | ||||||||||||||||||||||||
(Dollars in thousands) | Real Estate | Business | Construction | SBA | Total | |||||||||||||||||||||
Loans rated 1-5 | $ | 91,785 | $ | 7,246 | $ | 9,388 | $ | 37,609 | $ | 146,028 | ||||||||||||||||
Loans rated 5.5 | 2,627 | — | — | 2,144 | 4,771 | |||||||||||||||||||||
Loans rated 6 | 277 | — | — | 541 | 818 | |||||||||||||||||||||
Loans rated 7 | 849 | 209 | — | 3,006 | 4,064 | |||||||||||||||||||||
Loans rated 8 | — | — | — | 326 | 326 | |||||||||||||||||||||
$ | 95,538 | $ | 7,455 | $ | 9,388 | $ | 43,626 | $ | 156,007 | |||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
Commercial | Commercial | Commercial | ||||||||||||||||||||||||
(Dollars in thousands) | Real Estate | Business | Construction | SBA | Total | |||||||||||||||||||||
Loans rated 1-5 | $ | 88,578 | $ | 7,898 | $ | 5,926 | $ | 30,723 | $ | 133,125 | ||||||||||||||||
Loans rated 5.5 | 2,858 | 168 | — | 2,493 | 5,519 | |||||||||||||||||||||
Loans rated 6 | — | — | — | 1,007 | 1,007 | |||||||||||||||||||||
Loans rated 7 | 173 | 235 | 1,173 | 3,622 | 5,203 | |||||||||||||||||||||
Loans rated 8 | — | — | — | 159 | 159 | |||||||||||||||||||||
$ | 91,609 | $ | 8,301 | $ | 7,099 | $ | 38,004 | $ | 145,013 | |||||||||||||||||
Past Due and Non-Accrual Loans | ||||||||||||||||||||||||||
The accrual of interest on loans is discontinued at the time the loan is 90 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on non-accrual at an earlier date if collection of principal or interest is considered doubtful. All interest accrued, but not collected for loans that are placed on non-accrual, is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | ||||||||||||||||||||||||||
The following table presents past due loans as of the dates indicated. | ||||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||
(Dollars in thousands) | 30-59 Days | 60-89 Days | 90 Days | Total | Past Due > 90 | Loans on | ||||||||||||||||||||
Past Due | Past Due | or More | Past Due | Days and Still | Non-accrual | |||||||||||||||||||||
Past Due | Accruing | |||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
Residential 1-4 family | $ | 1,239 | $ | 634 | $ | 1,704 | $ | 3,577 | $ | — | $ | 5,760 | ||||||||||||||
Home equity loans and lines of credit | 131 | 187 | 23 | 341 | — | 138 | ||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | ||||||||||||||||||||
Commercial business | — | — | — | — | — | — | ||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | ||||||||||||||||||||
SBA | 84 | — | 980 | 1,064 | — | 1,064 | ||||||||||||||||||||
Consumer | 4 | — | — | 4 | — | — | ||||||||||||||||||||
Total gross loans | $ | 1,458 | $ | 821 | $ | 2,707 | $ | 4,986 | $ | — | $ | 6,962 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
(Dollars in thousands) | 30-59 Days | 60-89 Days | 90 Days | Total | Past Due > 90 | Loans on | ||||||||||||||||||||
Past Due | Past Due | or More | Past Due | Days and Still | Non-accrual | |||||||||||||||||||||
Past Due | Accruing | |||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
Residential 1-4 family | $ | 925 | $ | 1,573 | $ | 1,035 | $ | 3,533 | $ | — | $ | 4,790 | ||||||||||||||
Home equity loans and lines of credit | 294 | — | 53 | 347 | — | 158 | ||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | ||||||||||||||||||||
Commercial business | — | — | — | — | — | — | ||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | ||||||||||||||||||||
SBA | 1,131 | 81 | 977 | 2,189 | — | 1,508 | ||||||||||||||||||||
Consumer | 19 | — | — | 19 | — | 3 | ||||||||||||||||||||
Total gross loans | $ | 2,369 | $ | 1,654 | $ | 2,065 | $ | 6,088 | $ | — | $ | 6,459 | ||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||
A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. | ||||||||||||||||||||||||||
The Bank periodically may agree to modify the contractual terms of loans, such as a reduction in interest rate of the loan for some period of time, an extension of the maturity date or an extension of time to make payments with the delinquent payments added to the end of the loan term. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring (“TDR”). All TDRs are initially classified as impaired. Loans on non-accrual status at the date of modification are initially classified as non-accruing troubled debt restructurings. TDRs may be returned to accrual status after a period of satisfactory payment performance according to the terms of the restructuring, generally six months of current payments. | ||||||||||||||||||||||||||
The following table sets forth the recorded investment in impaired loans and the related specific allowance allocated as of the dates indicated. | ||||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||
(Dollars in thousands) | Unpaid | Total recorded | Recorded | Recorded | Related | |||||||||||||||||||||
contractual | investment in | investment | investment | allowance | ||||||||||||||||||||||
principal balance | impaired loans | with no | with | |||||||||||||||||||||||
allowance | allowance | |||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
Residential 1-4 family | $ | 6,956 | $ | 6,794 | $ | 2,351 | $ | 4,443 | $ | 179 | ||||||||||||||||
Home equity loans & lines of credit | 390 | 338 | 80 | 258 | 64 | |||||||||||||||||||||
SBA | 2,145 | 2,139 | 1,381 | 758 | 40 | |||||||||||||||||||||
Consumer | 28 | 28 | 11 | 17 | 5 | |||||||||||||||||||||
Total | $ | 9,519 | $ | 9,299 | $ | 3,823 | $ | 5,476 | $ | 288 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
(Dollars in thousands) | Unpaid | Total recorded | Recorded | Recorded | Related | |||||||||||||||||||||
contractual | investment in | investment | investment | allowance | ||||||||||||||||||||||
principal balance | impaired loans | with no | with | |||||||||||||||||||||||
allowance | allowance | |||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
Residential 1-4 family | $ | 6,660 | $ | 6,499 | $ | 3,689 | $ | 2,810 | $ | 94 | ||||||||||||||||
Home equity loans & lines of credit | 548 | 359 | 104 | 255 | 66 | |||||||||||||||||||||
SBA | 2,755 | 2,681 | 1,764 | 917 | 34 | |||||||||||||||||||||
Consumer | 33 | 33 | 12 | 20 | 7 | |||||||||||||||||||||
Total | $ | 9,996 | $ | 9,572 | $ | 5,569 | $ | 4,002 | $ | 201 | ||||||||||||||||
Of the $2.1 million and $2.7 million of impaired SBA loans at March 31, 2014 and at December 31, 2013, guaranteed portions of such loans amounted to $1.8 million and $2.3 million, respectively. | ||||||||||||||||||||||||||
The following tables present the average recorded investment in impaired loans and the related interest recognized during the periods indicated. | ||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
March 31, 2014 | March 31, 2013 | |||||||||||||||||||||||||
(Dollars in thousands) | Average recorded | Interest income | Average recorded | Interest income | ||||||||||||||||||||||
investment | recognized | investment | recognized | |||||||||||||||||||||||
Residential 1-4 family | $ | 6,684 | $ | 36 | $ | 6,708 | $ | 97 | ||||||||||||||||||
Home equity loans & lines of credit | 342 | 3 | 872 | 6 | ||||||||||||||||||||||
Commercial real estate | — | — | — | — | ||||||||||||||||||||||
SBA | 2,464 | 88 | 2,054 | 15 | ||||||||||||||||||||||
Consumer | 31 | 1 | 41 | — | ||||||||||||||||||||||
Total | $ | 9,521 | $ | 128 | $ | 9,675 | $ | 118 | ||||||||||||||||||
Troubled Debt Restructurings (TDRs) | ||||||||||||||||||||||||||
Loans are designated as a TDR when, as part of an agreement to modify the original contractual terms of the loan, the Bank grants a concession on the terms, that would not otherwise be considered, as a result of financial difficulties of the borrower. Typically, such concessions may consist of a reduction in interest rate to a below market rate, taking into account the credit quality of the note, or a deferment or reduction of payments, principal or interest, which materially alters the Bank’s position or significantly extends the note’s maturity date, such that the present value of cash flows to be received is materially less than those contractually established at the loan’s origination. All loans that are modified are reviewed by the Bank to identify if a TDR has occurred. TDR’s are included in the impaired loan category and as such, these loans are individually evaluated for impairment and a specific reserve is assigned for the amount of the estimated credit loss. | ||||||||||||||||||||||||||
Total TDR loans, included in impaired loans as of March 31, 2014 and December 31, 2013 were $6.2 million and $6.6 million, respectively. TDR loans on accrual status amounted to $2.4 million and $3.1 million at March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||
Troubled debt restructuring agreements entered into during the period indicated are as follows: | ||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Pre-modification | Post-modification | |||||||||||||||||||||||
restructurings | outstanding | outstanding | ||||||||||||||||||||||||
recorded | recorded | |||||||||||||||||||||||||
investment | investment | |||||||||||||||||||||||||
Residential 1-4 family | 3 | $ | 834 | $ | 834 | |||||||||||||||||||||
Total | 3 | $ | 834 | $ | 834 | |||||||||||||||||||||
Troubled debt restructurings that subsequently defaulted within 12 months of restructuring are as follows during the period indicated: | ||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||
(Dollars in thousands) | Number of TDR’s | Post-modification | ||||||||||||||||||||||||
that defaulted | outstanding | |||||||||||||||||||||||||
recorded investment | ||||||||||||||||||||||||||
Residential 1-4 family | 4 | $ | 878 | |||||||||||||||||||||||
Total | 4 | $ | 878 | |||||||||||||||||||||||
Troubled debt restructuring agreements entered into during the period indicated are as follows: | ||||||||||||||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Pre-modification | Post-modification | |||||||||||||||||||||||
restructurings | outstanding | outstanding | ||||||||||||||||||||||||
recorded | recorded | |||||||||||||||||||||||||
investment | investment | |||||||||||||||||||||||||
Residential 1-4 family | 1 | $ | 289 | $ | 289 | |||||||||||||||||||||
Consumer | 1 | 12 | 12 | |||||||||||||||||||||||
Total | 2 | $ | 301 | $ | 301 | |||||||||||||||||||||
Troubled debt restructurings that subsequently defaulted within 12 months of restructuring are as follows during the period indicated: | ||||||||||||||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||||||||
(Dollars in thousands) | Number of TDR’s | Post-modification | ||||||||||||||||||||||||
that defaulted | outstanding | |||||||||||||||||||||||||
recorded investment | ||||||||||||||||||||||||||
Residential 1-4 family | 1 | $ | 175 | |||||||||||||||||||||||
SBA | 1 | 39 | ||||||||||||||||||||||||
Consumer | 1 | 13 | ||||||||||||||||||||||||
Total | 3 | $ | 227 | |||||||||||||||||||||||
Allowance for loan loss activity | ||||||||||||||||||||||||||
Changes in the allowance for loan losses by segment are presented below: | ||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||
(Dollars in thousands) | Residential | Home | Commercial | Commercial | Commercial | SBA | Consumer | Total | ||||||||||||||||||
1-4 family | Equity | Real Estate | Business | Construction | ||||||||||||||||||||||
Allowance at December 31, 2013 | $ | 462 | $ | 605 | $ | 321 | $ | 29 | $ | 24 | $ | 197 | $ | 18 | $ | 1,656 | ||||||||||
Provision (credit) | 86 | 6 | 13 | (3 | ) | 9 | 62 | (6 | ) | 167 | ||||||||||||||||
Loans charged-off | — | (22 | ) | — | — | — | — | — | (22 | ) | ||||||||||||||||
Recoveries | 4 | 11 | — | — | — | 2 | 3 | 20 | ||||||||||||||||||
Allowance at March 31, 2014 | $ | 552 | $ | 600 | $ | 334 | $ | 26 | $ | 33 | $ | 261 | $ | 15 | $ | 1,821 | ||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||||||||
(Dollars in thousands) | Residential | Home | Commercial | Commercial | Commercial | SBA | Consumer | Total | ||||||||||||||||||
1-4 family | Equity | Real Estate | Business | Construction | ||||||||||||||||||||||
Allowance at December 31, 2012 | $ | 393 | $ | 674 | $ | 261 | $ | 25 | $ | 11 | $ | 185 | $ | 20 | $ | 1,569 | ||||||||||
Provision (credit) | (5 | ) | 86 | 11 | 1 | 1 | (11 | ) | (1 | ) | 82 | |||||||||||||||
Loans charged-off | — | (110 | ) | — | — | — | (5 | ) | — | (115 | ) | |||||||||||||||
Recoveries | 4 | 4 | — | — | — | 15 | 7 | 30 | ||||||||||||||||||
Allowance at March 31, 2013 | $ | 392 | $ | 654 | $ | 272 | $ | 26 | $ | 12 | $ | 184 | $ | 26 | $ | 1,566 | ||||||||||
The allowance for loan losses and loan balances by impaired and non-impaired components are as follows at the dates indicated: | ||||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||
(Dollars in thousands) | Residential | Home | Commercial | Commercial | Commercial | SBA | Consumer | Total | ||||||||||||||||||
1-4 family | Equity | Real Estate | Business | Construction | ||||||||||||||||||||||
Allowance for impaired loans | $ | 179 | $ | 64 | $ | — | $ | — | $ | — | $ | 40 | $ | 5 | $ | 288 | ||||||||||
Allowance for non-impaired loans | 373 | 536 | 334 | 26 | 33 | 221 | 10 | 1,533 | ||||||||||||||||||
Total | $ | 552 | $ | 600 | $ | 334 | $ | 26 | $ | 33 | $ | 261 | $ | 15 | $ | 1,821 | ||||||||||
Impaired loans | $ | 6,794 | $ | 338 | $ | — | $ | — | $ | — | $ | 2,139 | $ | 28 | $ | 9,299 | ||||||||||
Non-impaired loans | 92,949 | 82,463 | 95,538 | 7,455 | 9,388 | 41,487 | 1,520 | 330,800 | ||||||||||||||||||
Total loans | $ | 99,743 | $ | 82,801 | $ | 95,538 | $ | 7,455 | $ | 9,388 | $ | 43,626 | $ | 1,548 | $ | 340,099 | ||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
(Dollars in thousands) | Residential | Home | Commercial | Commercial | Commercial | SBA | Consumer | Total | ||||||||||||||||||
1-4 family | Equity | Real Estate | Business | Construction | ||||||||||||||||||||||
Allowance for impaired loans | $ | 94 | $ | 66 | $ | — | $ | — | $ | — | $ | 34 | $ | 7 | $ | 201 | ||||||||||
Allowance for non-impaired loans | 368 | 539 | 321 | 29 | 24 | 163 | 11 | 1,455 | ||||||||||||||||||
Total | $ | 462 | $ | 605 | $ | 321 | $ | 29 | $ | 24 | $ | 197 | $ | 18 | $ | 1,656 | ||||||||||
Impaired loans | $ | 6,499 | $ | 359 | $ | — | $ | — | $ | — | $ | 2,681 | $ | 33 | $ | 9,572 | ||||||||||
Non-impaired loans | 91,681 | 82,975 | 91,609 | 8,301 | 7,099 | 35,323 | 1,639 | 318,627 | ||||||||||||||||||
Total loans | $ | 98,180 | $ | 83,334 | $ | 91,609 | $ | 8,301 | $ | 7,099 | $ | 38,004 | $ | 1,672 | $ | 328,199 |
Employee_Benefits
Employee Benefits | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Employee Benefits | ' | |||
Employee Benefits | ' | |||
(4) Employee Benefits | ||||
Supplemental Retirement Agreements | ||||
Effective July 1, 2013, the Bank entered into supplemental retirement agreements (“SERP”) with six executive officers, which provide for payments upon attaining the retirement age specified in the agreements. The present value of these future payments is accrued over the remaining service or vesting term. Supplemental retirement benefits generally vest as they are accrued; however a termination of employment subsequent to a change in control will result in the vesting of all benefits that would have accrued to the officer’s normal retirement date. During the three months ended March 31, 2014, SERP expense totaled $102,000. | ||||
Defined Benefit Pension Plan | ||||
Pension expense (income) totaled $(6,600) and $12,000 for the three months ended March 31, 2014 and 2013, respectively. The Bank expects to contribute $78,000 for the plan year ending December 31, 2014. | ||||
Employee Stock Ownership Plan | ||||
The Corporation maintains an Employee Stock Ownership Plan (“ESOP”) to provide eligible employees the opportunity to own Corporation stock. This plan is a tax-qualified retirement plan for the benefit of all Corporation employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal tax limits. | ||||
The Corporation granted a loan to the ESOP for the purchase of shares of the Corporation’s common stock at the Conversion date. As of March 31, 2014, the ESOP holds 395,934 shares, or 8% of the common stock outstanding on that date. The loan obtained by the ESOP from the Corporation to purchase common stock is payable annually over 25 years at the rate of the prime rate, as published in The Wall Street Journal, which is currently 3.25% per annum. The loan is secured by the shares purchased, which are held in a suspense account for allocation among participants as the loan is repaid. Any cash dividends paid on allocated shares will, at the direction of the Corporation, be credited to the participant accounts and invested in the Investment Fund; be distributed to the participants in proportion with the participants’ stock fund account balance; be distributed to the participants within 90 days of the calendar year in which paid in proportion with the participants’ stock fund account balance; or be used to make payments on the outstanding debt of the ESOP. Cash dividends paid on unallocated shares will be used to repay the outstanding debt of the ESOP then due. If the amount of dividends exceeds the outstanding debt of the ESOP, then, in the sole discretion of the Corporation, cash dividends may be allocated to active participants on a non-discriminatory basis, or be deemed to be general earnings of the ESOP. Shares used as collateral to secure the loan are released and available for allocation to eligible employees as the principal and interest on the loan is paid. | ||||
Shares held by the ESOP include the following: | ||||
March 31, | ||||
2014 | ||||
Allocated | — | |||
Committed to be allocated | 3,959 | |||
Unallocated | 391,975 | |||
395,934 | ||||
The fair value of unallocated shares was approximately $4.0 million at March 31, 2014. | ||||
Total compensation expense recognized in connection with the ESOP for the three month period ended March 31, 2014 was $41,000. | ||||
Change in Control Severance Plan | ||||
The Corporation entered into an Executive Change in Control Severance Plan (“Severance Plan”) effective upon the closing of the conversion and stock offering in January 2014 (see note 1), with certain officers. The participants in the Severance Plan will be paid two times the participants’ base salaries plus their highest bonus in the two calendar years immediately prior to termination, upon a change in control, if the participant is not offered a comparable employment position in a similar geographic location. |
OffBalance_Sheets_Activities_a
Off-Balance Sheets Activities and Derivatives | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Off-Balance Sheets Activities and Derivatives | ' | |||||||||||
Off-Balance Sheets Activities and Derivatives | ' | |||||||||||
(5) Off-Balance Sheets Activities and Derivatives | ||||||||||||
In the normal course of business, there are outstanding commitments and contingencies which are not reflected in the accompanying consolidated financial statements. | ||||||||||||
Loan Commitments | ||||||||||||
The Bank is a party to conditional commitments to lend funds in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit which include commercial lines of credit and home equity lines that involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The Bank’s exposure to credit loss is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments as it does for on-balance-sheet instruments. | ||||||||||||
The following financial instruments were outstanding whose contract amounts represent credit risk: | ||||||||||||
March 31, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Commitments to grant loans | $ | 9,681 | $ | 12,858 | ||||||||
Commitments to originate loans to be sold | 9,079 | 7,150 | ||||||||||
Unfunded commitments under home equity lines of credit | 47,605 | 46,456 | ||||||||||
Unfunded commitments under commercial lines of credit | 12,023 | 11,315 | ||||||||||
Unfunded commitments under SBA lines of credit | 3,238 | 3,601 | ||||||||||
Unadvanced funds on construction loans | 4,652 | 3,812 | ||||||||||
The 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. The commitments for lines-of-credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Bank upon extension of credit is based upon management’s credit evaluation of the counterparty. Collateral held generally consists of real estate. | ||||||||||||
Interest Rate Risk Management — Derivative Instruments Not Designated As Hedging Instruments | ||||||||||||
Certain derivative instruments do not meet the requirements to be accounted for as hedging instruments. These undesignated derivative instruments are recognized on the balance sheet at fair value, with changes in fair value recorded in other non-interest income. | ||||||||||||
Derivative Loan Commitments | ||||||||||||
Mortgage loan commitments are considered derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. The Bank enters into commitments to fund residential mortgage loans at specified times in the future, with the intention that these loans will subsequently be sold in the secondary market. | ||||||||||||
Outstanding derivative loan commitments expose the Bank to the risk that the price of the loans arising from exercise of the loan commitment might decline from inception of the rate lock to funding of the loan due to increases in mortgage interest rates. If interest rates increase, the value of these loan commitments decreases. Conversely, if interest rates decrease, the value of these loan commitments increases. | ||||||||||||
Forward Loan Sale Commitments | ||||||||||||
To protect against the price risk inherent in derivative loan commitments, the Bank utilizes best efforts forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. | ||||||||||||
With a best efforts contract, the Bank commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. Generally, the price the investor will pay the seller for an individual loan is specified prior to the loan being funded (e.g., on the same day the lender commits to lend funds to a potential borrower). Forward commitments to sell loans totaled $16.9 million and $15.7 million at March 31, 2014 and December 31, 2013, respectively. | ||||||||||||
The following table presents the fair values of derivative instruments in the consolidated balance sheets: | ||||||||||||
Assets | Liabilities | |||||||||||
Balance | Balance | |||||||||||
Sheet | Fair | Sheet | Fair | |||||||||
(In thousands) | Location | Value | Location | Value | ||||||||
March 31, 2014 | ||||||||||||
Derivative loan commitments | Other assets | $ | 55 | N/A | $ | — | ||||||
Forward loan sale commitments | Other assets | 251 | N/A | — | ||||||||
Total derivatives not designated as hedging instruments | $ | 306 | $ | — | ||||||||
December 31, 2013 | ||||||||||||
Derivative loan commitments | N/A | $ | — | Other liabilities | $ | 4 | ||||||
Forward loan sale commitments | Other assets | 248 | N/A | — | ||||||||
Total derivatives not designated as hedging instruments | $ | 248 | $ | 4 | ||||||||
The following table presents information pertaining to the gains and losses on Bank’s derivative instruments not designated as hedging instruments: | ||||||||||||
Derivatives Not | Location of | Three Months Ended | ||||||||||
Designated As | March 31, | |||||||||||
Hedging | ||||||||||||
Instruments | Gain/(Loss) | 2014 | 2013 | |||||||||
(In thousands) | ||||||||||||
Derivative loan commitments | Gain (loss) on sales of loans, net | $ | (14 | ) | $ | 135 | ||||||
Forward loan sale commitments | Gain on sales of loans, net | 3 | 126 | |||||||||
$ | (11 | ) | $ | 261 | ||||||||
Premises and Equipment | ||||||||||||
In June 2013, the Bank entered into a Purchase and Sale (“P&S”) Agreement to purchase its new corporate headquarters for $8.8 million which is currently under construction. Additional costs related to the new corporate headquarters building in excess of what had been agreed to in the P&S total $1.7 million at March 31, 2014. The purchase is expected to close in the summer of 2014, at which point the Bank will hold for sale and subsequently relocate from its current headquarters, which has a carrying value of $3.3 million at March 31, 2014. | ||||||||||||
Loss Contingencies | ||||||||||||
In October 2013, management was notified of a claim made related to a loan application management services contract pertaining to monthly user fees which had not been invoiced over the term of such contract. The company making the claim acquired the application provider in early 2013. The claim was for $178,000, covering a multi-year period of fees, though invoices and other communications from such company and/or its predecessor indicated balances due from the Bank, which did not include the fees in question, represented all open invoices or all amounts past due. Based on the advice of legal counsel, management believes a loss is not probable at this time and the amount of reasonably possible loss or range of loss, if any, is not estimable. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
(6) Fair Value Measurements | |||||||||||||||||
The Bank uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The fair value of an asset or liability is the price which a seller would receive in an orderly transaction between market participants (an exit price). Assets and liabilities are placed in a fair value hierarchy based on fair value measurements using three levels of inputs: (Level 1) quoted market prices in active markets for identical assets or liabilities; (Level 2) significant other observable inputs, including quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs such as interest rates and yield curves, volatilities, prepayment speeds, credit risks and default rates which provide a reasonable basis for fair value determination or inputs derived principally from observed market data; (Level 3) significant unobservable inputs for situations in which there is little, if any, market activity for the asset or liability. Unobservable inputs must reflect reasonable assumptions that market participants would use in pricing the asset or liability, which are developed on the basis of the best information available under the circumstances. | |||||||||||||||||
The following tables summarize significant assets and liabilities carried at fair value and placement in the fair value hierarchy at the dates specified: | |||||||||||||||||
March 31, 2014 | |||||||||||||||||
(Dollars in thousands) | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||
Derivative loan commitments | $ | — | $ | — | $ | 55 | |||||||||||
Forward loan sale commitments | — | — | 251 | ||||||||||||||
Assets measured on a non-recurring basis: | |||||||||||||||||
Impaired loans (collateral dependent) | — | — | 1,848 | ||||||||||||||
Foreclosed real estate | — | — | 372 | ||||||||||||||
December 31, 2013 | |||||||||||||||||
(Dollars in thousands) | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||
Forward loan sale commitments | $ | — | $ | — | $ | 248 | |||||||||||
Liabilities measured on a recurring basis: | |||||||||||||||||
Derivative loan commitments | — | — | 4 | ||||||||||||||
Assets measured on a non-recurring basis: | |||||||||||||||||
Impaired loans (collateral dependent) | — | — | 987 | ||||||||||||||
Foreclosed real estate | — | — | 1,170 | ||||||||||||||
Real estate held for sale | — | — | 3,515 | ||||||||||||||
The Bank did not have cause to transfer any assets between the fair value measurement levels during the three months ended March 31, 2014 or the year ended December 31, 2013. There were no liabilities measured at a fair value on a non-recurring basis at March 31, 2014. | |||||||||||||||||
Impaired loan balances in the table above represent those collateral dependent impaired loans where management has estimated the credit loss by comparing the loan’s carrying value against the expected realizable fair value of the collateral (appraised value or internal analysis less estimated cost to sell, adjusted as necessary for changes in relevant valuation factors subsequent to the measurement date). Certain inputs used in these assessments, and possible subsequent adjustments, are not always observable, and therefore, collateral dependent impaired loans are categorized as Level 3 within the fair value hierarchy. A specific allowance or partial charge-off is recorded to the collateral dependent impaired loan for the amount of management’s estimated credit loss. Losses on collateral dependent impaired loans for the three months ended March 31, 2014 and 2013, totaled $123,000 and $28,000, respectively. The losses represent the amount of write-downs during the three month period on assets held at period end. | |||||||||||||||||
Real estate acquired by the Bank through foreclosure proceedings or the acceptance of a deed in lieu of foreclosure is classified as foreclosed real estate. When property is acquired, it is generally recorded at the lesser of the loan’s remaining principal balance, net of unamortized deferred fees, or the estimated fair value of the property acquired, less estimated costs to sell. The estimated fair value is based on market appraisals and the Bank’s internal analysis. Certain inputs used in appraisals or the Bank’s internal analysis, are not always observable, and therefore, foreclosed real estate may be categorized as Level 3 within the fair value hierarchy. Losses on foreclosed real estate for assets held at period end for the three months ended March 31, 2014 and 2013 totaled $38,000 and $0, respectively. | |||||||||||||||||
There were no write-downs on real estate held for sale during the three months ended March 31, 2014 and 2013. | |||||||||||||||||
Derivatives fair value methodology | |||||||||||||||||
Fair value changes in mortgage banking derivatives (interest rate lock commitments and commitments to sell fixed-rate residential mortgages) subsequent to inception are estimated using anticipated market prices based on pricing indications provided from syndicate banks and consideration of pull-through and fallout rates. The fair value of the mortgage banking derivatives are considered to be Level 3 assets. | |||||||||||||||||
The table below presents for the three months ended March 31, 2014 and 2013, the change in Level 3 assets and liabilities that are measured on a recurring basis: | |||||||||||||||||
Derivative Loan Commitments and Forward | |||||||||||||||||
Loan Sale Commitments | |||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||
Balance at beginning of period | $ | 244 | $ | 201 | |||||||||||||
Total realized and unrealized gains (losses) included in net income | (11 | ) | 261 | ||||||||||||||
Settlements and closed loans | 73 | 99 | |||||||||||||||
Balance at end of period | $ | 306 | $ | 561 | |||||||||||||
Total unrealized gains (losses) relating to instruments still held at period end | $ | (11 | ) | $ | 261 | ||||||||||||
The following tables present additional quantitative information about assets and liabilities measured at fair value on a recurring and non-recurring basis for which the Bank utilized Level 3 inputs (significant unobservable inputs for situations in which there is little, if any, market activity for the asset or liability) to determine fair value: | |||||||||||||||||
March 31, 2014 | |||||||||||||||||
(Dollars in thousands) | Fair | Valuation Technique | Unobservable Input | Unobservable | |||||||||||||
Value | Input Value or | ||||||||||||||||
Range | |||||||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||
Derivative loan commitments | $ | 55 | Investor pricing | Pull-through rate | 82.5-100% | ||||||||||||
Pricing spreads | 99.08-105.27% | ||||||||||||||||
Forward loan sale commitments | 251 | Investor pricing | Pull-through rate | 82.5-100% | |||||||||||||
Pricing spreads | 96.66-105.27% | ||||||||||||||||
Assets measured on a non-recurring basis: | |||||||||||||||||
Impaired loans (collateral dependent) | 1,848 | Appraisal of collateral | Collateral discounts/selling costs | 5% - 30% | |||||||||||||
Foreclosed real estate | 372 | Appraisal of collateral | Collateral discounts/selling costs | 5% - 30% | |||||||||||||
December 31, 2013 | |||||||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||
Forward loan sale commitments | $ | 248 | Investor pricing | Pull-through rate | 82.5-100% | ||||||||||||
Pricing spreads | 94.55-106.16% | ||||||||||||||||
Liabilities measured on a recurring basis: | |||||||||||||||||
Derivative loan commitments | 4 | Investor pricing | Pull-through rate | 82.5-100% | |||||||||||||
Pricing spreads | 95.28-106.16% | ||||||||||||||||
Assets measured on a non-recurring basis: | |||||||||||||||||
Impaired loans (collateral dependent) | 987 | Appraisal of collateral | Collateral discounts/selling costs | 5% - 30% | |||||||||||||
Foreclosed real estate | 1,170 | Appraisal of collateral | Collateral discounts/selling costs | 5% - 30% | |||||||||||||
Real estate held for sale | 3,515 | Appraisal of collateral | Selling costs | 5% | |||||||||||||
Estimated Fair Values of Assets and Liabilities | |||||||||||||||||
In addition to disclosures regarding the measurement of assets and liabilities carried at fair value on the balance sheet, the Corporation is also required to disclose fair value information about financial instruments for which it is practicable to estimate that value, whether or not recognized on the balance sheet. In cases where quoted fair values are not available, fair values are based upon estimates using various valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The following methods and assumptions were used by the Corporation in estimating fair values of its financial instruments. | |||||||||||||||||
The following methods and assumptions were used by the Corporation in estimating fair value disclosures: | |||||||||||||||||
Cash and cash equivalents — The carrying amounts of cash and cash equivalents approximate fair values based on the short-term nature of the assets. | |||||||||||||||||
Certificates of deposit — The carrying value of certificates of deposit is deemed to approximate fair value, based on both the current interest rate and the maturity date. | |||||||||||||||||
Federal Home Loan Bank stock— The carrying value of Federal Home Loan Bank stock is deemed to approximate fair value, based on the redemption provisions of the Federal Home Loan Bank. | |||||||||||||||||
Loans, net — For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Fair values for other loans are estimated using discounted cash flow analyses, using market interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Fair values for non-performing loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. | |||||||||||||||||
Loans held for sale— Fair values of loans held for sale are based on prevailing market rates for loans with similar characteristics. | |||||||||||||||||
Deposits — The fair values of deposits with no stated maturity, such as demand deposits, savings, club and money market accounts, are equal to the amount payable on demand at the reporting date. Fair values for term certificates are estimated using a discounted cash flow calculation that applies market interest rates currently being offered for deposits of similar remaining maturities. | |||||||||||||||||
Borrowed funds — The fair values of the Bank’s FHLB advances are estimated using discounted cash flow analyses based on the current incremental borrowing rates in the market for similar types of borrowing arrangements. | |||||||||||||||||
Accrued interest — The carrying amounts of accrued interest approximate fair value. | |||||||||||||||||
Off-balance sheet credit-related instruments — Fair values for off-balance-sheet, credit related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. | |||||||||||||||||
The estimates of fair value of financial instruments were based on information available at March 31, 2014 and December 31, 2013 and are not indicative of the fair market value of those instruments as of the date of this report. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Corporation’s entire holdings of a particular financial instrument. The fair value of the Corporation’s time deposit liabilities do not take into consideration the value of the Corporation’s long-term relationships with depositors, which may have significant value. | |||||||||||||||||
Because no active market exists for a portion of the Corporation’s financial instruments, fair value estimates were based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. | |||||||||||||||||
Fair value estimates were based on existing on- and off-balance sheet financial instruments without an attempt to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments, including premises and equipment and foreclosed real estate, and real estate held for sale. | |||||||||||||||||
The carrying values, estimated fair values and placement in the fair value hierarchy of the Corporation’s financial instruments(1) for which fair value is only disclosed but not recognized on the balance sheet at the dates indicated are summarized as follows: | |||||||||||||||||
March 31, 2014 | Fair value measurement | ||||||||||||||||
(unaudited) | |||||||||||||||||
Carrying | |||||||||||||||||
(Dollars in thousands) | Amount | Fair Value | Level 1 inputs | Level 2 Inputs | Level 3 Inputs | ||||||||||||
Financial assets: | |||||||||||||||||
Loans, net | $ | 340,379 | $ | 343,023 | $ | — | $ | — | $ | 343,023 | |||||||
Loans held for sale | 7,785 | 7,846 | — | — | 7,846 | ||||||||||||
FHLB stock | 2,694 | 2,694 | — | — | 2,694 | ||||||||||||
Financial liabilities: | |||||||||||||||||
Certificates of deposit | 123,775 | 125,820 | — | 125,820 | — | ||||||||||||
Borrowed funds | 1,300 | 1,314 | — | 1,314 | — | ||||||||||||
December 31, 2013 | Fair value measurement | ||||||||||||||||
Carrying | |||||||||||||||||
(Dollars in thousands) | Amount | Fair Value | Level 1 inputs | Level 2 Inputs | Level 3 Inputs | ||||||||||||
Financial assets: | |||||||||||||||||
Loans, net | $ | 328,576 | $ | 327,618 | $ | — | $ | — | $ | 327,618 | |||||||
Loans held for sale | 8,648 | 8,690 | — | — | 8,690 | ||||||||||||
FHLB stock | 2,694 | 2,694 | — | — | 2,694 | ||||||||||||
Financial liabilities: | |||||||||||||||||
Certificates of deposit | 125,410 | 127,528 | — | 127,528 | — | ||||||||||||
Borrowed funds | 28,000 | 28,021 | — | 28,021 | — | ||||||||||||
(1) Excluded from this table are certain financial instruments that approximate fair value, as they were short-term in nature or payable on demand. These include cash and cash equivalents, certificates of deposit, accrued interest receivable, non-term deposit accounts, and accrued interest payable. The respective carrying values of these instruments would all be considered to be classified within Level 1 of their fair value hierarchy. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events | ' |
Subsequent Events | ' |
(7) Subsequent Events | |
In April, 2014, the Corporation offered termination benefits amounting to $111,000 to certain employees who were involuntarily terminated. The expense related to the termination benefits will be recorded in accordance with FASB Accounting Standards Codification Topic 420 Exit or Disposal Cost Obligations. The affected employees are not required to render any additional services to receive termination benefits. The benefits will be paid weekly over varying periods up to 20 weeks. |
Basis_of_Presentation_and_Cons1
Basis of Presentation and Consolidation (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Basis of Presentation and Consolidation | ' |
Stock Conversion | ' |
Stock Conversion | |
On August 22, 2013, the Board of Directors of the Company, LLC and the Bank adopted the Plan of Conversion and Reorganization (“Conversion”) to convert the Company from the mutual holding company form of organization to a stock holding company form of organization with a new Maryland-chartered stock corporation, Coastway Bancorp, Inc. (“Corporation”). | |
At December 31, 2013, stock subscriptions received aggregated $43.4 million and were included in liabilities in the accompanying consolidated balance sheets. Conversion costs had been capitalized and reduced the proceeds from the stock sold in the Conversion. At December 31, 2013, conversion costs amounting to $888,000 were included in other assets in the accompanying consolidated balance sheets. | |
On January 14, 2014, the Conversion was completed and Coastway Bancorp, Inc. became the parent holding company for Coastway Community Bank. A total of 4,827,125 shares of Corporation common stock were sold to depositors and to the general public, including those issued to the Corporation’s tax-qualified employee benefit plans, at $10.00 per share through which the Corporation received net offering proceeds of approximately $46.3 million. Also, on January 14, 2014, the Corporation contributed $300,000 in cash and 122,054 shares of common stock to Coastway Cares Charitable Foundation II which together totaled 3.15% of the gross proceeds of the offering totaling $1.5 million which was recorded as a component of non-interest expense during the three months ended March 31, 2014. The total number of shares of common stock outstanding upon completion of the Conversion was 4,949,179 shares. | |
As part of the Conversion, Coastway Bancorp, Inc. established a liquidation account in an amount equal to the net worth of Coastway Bancorp, MHC as of the date of the latest consolidated balance sheet appearing in the final prospectus distributed in connection with the Conversion, or $27.5 million. The liquidation account will be maintained for the benefit of eligible account holders and supplemental eligible account holders who maintain their accounts at Coastway Community Bank after the Conversion. The liquidation account will be reduced annually to the extent that such account holders have reduced their qualifying deposits as of each anniversary date. Subsequent increases will not restore an account holder’s interest in the liquidation account. In the event of a complete liquidation of the Corporation or the Bank, each eligible account holder will be entitled to receive balances for accounts then held. | |
Subsequent to the Conversion, the Corporation may not declare or pay dividends on, and may not repurchase, any of its shares of common stock if the effect thereof would cause stockholders’ equity to be reduced below the liquidation account balance, applicable regulatory capital maintenance requirements, or if such declaration, payment or repurchase would otherwise violate regulatory requirements. | |
Earnings (loss) per share is not presented herein as common stock has not been outstanding during the entire three months ended March 31, 2014. At March 31, 2014, there are no common stock equivalents. | |
Basis of Presentation | ' |
Basis of Presentation | |
The consolidated financial statements include the accounts of the Corporation and its subsidiaries. All significant intercompany transactions have been eliminated. | |
The unaudited consolidated financial statements of the Corporation presented herein have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information and pursuant to the rules of the SEC for quarterly reports on Form 10-Q and Article 8 of Regulation S-X and do not include all of the information and note disclosures required by GAAP for a complete set of financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures necessary for the fair presentation of the accompanying consolidated financial statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying unaudited financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2013, included in the Corporation’s annual report on Form 10-K. | |
In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses and the valuation of deferred tax assets. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
As an “emerging growth company” as defined in Title 1 of the Jumpstart Our Business Startups (JOBS) Act, the Corporation has elected to use the extended transition period to delay the adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. As of March 31, 2014, there is no significant difference in the comparability of the financial statements as a result of this extended transition period. | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02, Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income. This update requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. This ASU is effective prospectively for public entities for reporting periods beginning after December 15, 2012 and for nonpublic entities for reporting periods beginning after December 15, 2013. Under the extended transition period for an emerging growth company, the Corporation adopted this ASU on January 1, 2014. The impact of adoption of this ASU was not material to the presentation of comprehensive income in the Corporation’s consolidated financial statements. | |
In January 2014, the FASB issued ASU 2014-04, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40) which is intended to reduce diversity by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU also provides guidance on disclosures of the amount of foreclosed residential real estate properties and of the recorded investment in consumer mortgage loans that are in process of foreclosure. Under the extended transition period for an emerging growth company, the Corporation will adopt this standard for annual periods beginning after December 15, 2014 and interim periods within annual periods beginning after December 15, 2015. |
Loans_Tables
Loans (Tables) | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||
Loans | ' | |||||||||||||||||||||||||
Schedule of major classifications of loans | ' | |||||||||||||||||||||||||
(Dollars in thousands) | March 31, | December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Residential real estate mortgage loans: | ||||||||||||||||||||||||||
1-4 family | $ | 99,743 | $ | 98,180 | ||||||||||||||||||||||
Home equity loans and lines of credit | 82,801 | 83,334 | ||||||||||||||||||||||||
Total residential real estate mortgage loans | 182,544 | 181,514 | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||
Commercial real estate | 95,538 | 91,609 | ||||||||||||||||||||||||
Commercial business | 7,455 | 8,301 | ||||||||||||||||||||||||
Commercial construction | 9,388 | 7,099 | ||||||||||||||||||||||||
SBA | 43,626 | 38,004 | ||||||||||||||||||||||||
Total commercial loans | 156,007 | 145,013 | ||||||||||||||||||||||||
Consumer | 1,548 | 1,672 | ||||||||||||||||||||||||
Total loans | 340,099 | 328,199 | ||||||||||||||||||||||||
Allowance for loan losses | (1,821 | ) | (1,656 | ) | ||||||||||||||||||||||
Net deferred loan costs | 2,101 | 2,033 | ||||||||||||||||||||||||
Loans, net | $ | 340,379 | $ | 328,576 | ||||||||||||||||||||||
Schedule of the credit risk profile by internally assigned risk rating category | ' | |||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||
Commercial | Commercial | Commercial | ||||||||||||||||||||||||
(Dollars in thousands) | Real Estate | Business | Construction | SBA | Total | |||||||||||||||||||||
Loans rated 1-5 | $ | 91,785 | $ | 7,246 | $ | 9,388 | $ | 37,609 | $ | 146,028 | ||||||||||||||||
Loans rated 5.5 | 2,627 | — | — | 2,144 | 4,771 | |||||||||||||||||||||
Loans rated 6 | 277 | — | — | 541 | 818 | |||||||||||||||||||||
Loans rated 7 | 849 | 209 | — | 3,006 | 4,064 | |||||||||||||||||||||
Loans rated 8 | — | — | — | 326 | 326 | |||||||||||||||||||||
$ | 95,538 | $ | 7,455 | $ | 9,388 | $ | 43,626 | $ | 156,007 | |||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
Commercial | Commercial | Commercial | ||||||||||||||||||||||||
(Dollars in thousands) | Real Estate | Business | Construction | SBA | Total | |||||||||||||||||||||
Loans rated 1-5 | $ | 88,578 | $ | 7,898 | $ | 5,926 | $ | 30,723 | $ | 133,125 | ||||||||||||||||
Loans rated 5.5 | 2,858 | 168 | — | 2,493 | 5,519 | |||||||||||||||||||||
Loans rated 6 | — | — | — | 1,007 | 1,007 | |||||||||||||||||||||
Loans rated 7 | 173 | 235 | 1,173 | 3,622 | 5,203 | |||||||||||||||||||||
Loans rated 8 | — | — | — | 159 | 159 | |||||||||||||||||||||
$ | 91,609 | $ | 8,301 | $ | 7,099 | $ | 38,004 | $ | 145,013 | |||||||||||||||||
Schedule of past due loans | ' | |||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||
(Dollars in thousands) | 30-59 Days | 60-89 Days | 90 Days | Total | Past Due > 90 | Loans on | ||||||||||||||||||||
Past Due | Past Due | or More | Past Due | Days and Still | Non-accrual | |||||||||||||||||||||
Past Due | Accruing | |||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
Residential 1-4 family | $ | 1,239 | $ | 634 | $ | 1,704 | $ | 3,577 | $ | — | $ | 5,760 | ||||||||||||||
Home equity loans and lines of credit | 131 | 187 | 23 | 341 | — | 138 | ||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | ||||||||||||||||||||
Commercial business | — | — | — | — | — | — | ||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | ||||||||||||||||||||
SBA | 84 | — | 980 | 1,064 | — | 1,064 | ||||||||||||||||||||
Consumer | 4 | — | — | 4 | — | — | ||||||||||||||||||||
Total gross loans | $ | 1,458 | $ | 821 | $ | 2,707 | $ | 4,986 | $ | — | $ | 6,962 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
(Dollars in thousands) | 30-59 Days | 60-89 Days | 90 Days | Total | Past Due > 90 | Loans on | ||||||||||||||||||||
Past Due | Past Due | or More | Past Due | Days and Still | Non-accrual | |||||||||||||||||||||
Past Due | Accruing | |||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
Residential 1-4 family | $ | 925 | $ | 1,573 | $ | 1,035 | $ | 3,533 | $ | — | $ | 4,790 | ||||||||||||||
Home equity loans and lines of credit | 294 | — | 53 | 347 | — | 158 | ||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | ||||||||||||||||||||
Commercial business | — | — | — | — | — | — | ||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | ||||||||||||||||||||
SBA | 1,131 | 81 | 977 | 2,189 | — | 1,508 | ||||||||||||||||||||
Consumer | 19 | — | — | 19 | — | 3 | ||||||||||||||||||||
Total gross loans | $ | 2,369 | $ | 1,654 | $ | 2,065 | $ | 6,088 | $ | — | $ | 6,459 | ||||||||||||||
Schedule of the recorded investment in impaired loans and the related specific allowance allocated | ' | |||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||
(Dollars in thousands) | Unpaid | Total recorded | Recorded | Recorded | Related | |||||||||||||||||||||
contractual | investment in | investment | investment | allowance | ||||||||||||||||||||||
principal balance | impaired loans | with no | with | |||||||||||||||||||||||
allowance | allowance | |||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
Residential 1-4 family | $ | 6,956 | $ | 6,794 | $ | 2,351 | $ | 4,443 | $ | 179 | ||||||||||||||||
Home equity loans & lines of credit | 390 | 338 | 80 | 258 | 64 | |||||||||||||||||||||
SBA | 2,145 | 2,139 | 1,381 | 758 | 40 | |||||||||||||||||||||
Consumer | 28 | 28 | 11 | 17 | 5 | |||||||||||||||||||||
Total | $ | 9,519 | $ | 9,299 | $ | 3,823 | $ | 5,476 | $ | 288 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
(Dollars in thousands) | Unpaid | Total recorded | Recorded | Recorded | Related | |||||||||||||||||||||
contractual | investment in | investment | investment | allowance | ||||||||||||||||||||||
principal balance | impaired loans | with no | with | |||||||||||||||||||||||
allowance | allowance | |||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
Residential 1-4 family | $ | 6,660 | $ | 6,499 | $ | 3,689 | $ | 2,810 | $ | 94 | ||||||||||||||||
Home equity loans & lines of credit | 548 | 359 | 104 | 255 | 66 | |||||||||||||||||||||
SBA | 2,755 | 2,681 | 1,764 | 917 | 34 | |||||||||||||||||||||
Consumer | 33 | 33 | 12 | 20 | 7 | |||||||||||||||||||||
Total | $ | 9,996 | $ | 9,572 | $ | 5,569 | $ | 4,002 | $ | 201 | ||||||||||||||||
Schedule of the average recorded investment in impaired loans and the related interest recognized | ' | |||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
March 31, 2014 | March 31, 2013 | |||||||||||||||||||||||||
(Dollars in thousands) | Average recorded | Interest income | Average recorded | Interest income | ||||||||||||||||||||||
investment | recognized | investment | recognized | |||||||||||||||||||||||
Residential 1-4 family | $ | 6,684 | $ | 36 | $ | 6,708 | $ | 97 | ||||||||||||||||||
Home equity loans & lines of credit | 342 | 3 | 872 | 6 | ||||||||||||||||||||||
Commercial real estate | — | — | — | — | ||||||||||||||||||||||
SBA | 2,464 | 88 | 2,054 | 15 | ||||||||||||||||||||||
Consumer | 31 | 1 | 41 | — | ||||||||||||||||||||||
Total | $ | 9,521 | $ | 128 | $ | 9,675 | $ | 118 | ||||||||||||||||||
Schedule of troubled debt restructuring agreements entered into during the period | ' | |||||||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Pre-modification | Post-modification | |||||||||||||||||||||||
restructurings | outstanding | outstanding | ||||||||||||||||||||||||
recorded | recorded | |||||||||||||||||||||||||
investment | investment | |||||||||||||||||||||||||
Residential 1-4 family | 3 | $ | 834 | $ | 834 | |||||||||||||||||||||
Total | 3 | $ | 834 | $ | 834 | |||||||||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Pre-modification | Post-modification | |||||||||||||||||||||||
restructurings | outstanding | outstanding | ||||||||||||||||||||||||
recorded | recorded | |||||||||||||||||||||||||
investment | investment | |||||||||||||||||||||||||
Residential 1-4 family | 1 | $ | 289 | $ | 289 | |||||||||||||||||||||
Consumer | 1 | 12 | 12 | |||||||||||||||||||||||
Total | 2 | $ | 301 | $ | 301 | |||||||||||||||||||||
Schedule of troubled debt restructurings that subsequently defaulted within 12 months of restructuring | ' | |||||||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||
(Dollars in thousands) | Number of TDR’s | Post-modification | ||||||||||||||||||||||||
that defaulted | outstanding | |||||||||||||||||||||||||
recorded investment | ||||||||||||||||||||||||||
Residential 1-4 family | 4 | $ | 878 | |||||||||||||||||||||||
Total | 4 | $ | 878 | |||||||||||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||||||||
(Dollars in thousands) | Number of TDR’s | Post-modification | ||||||||||||||||||||||||
that defaulted | outstanding | |||||||||||||||||||||||||
recorded investment | ||||||||||||||||||||||||||
Residential 1-4 family | 1 | $ | 175 | |||||||||||||||||||||||
SBA | 1 | 39 | ||||||||||||||||||||||||
Consumer | 1 | 13 | ||||||||||||||||||||||||
Total | 3 | $ | 227 | |||||||||||||||||||||||
Schedule of changes in the allowance for loan losses by segment | ' | |||||||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||
(Dollars in thousands) | Residential | Home | Commercial | Commercial | Commercial | SBA | Consumer | Total | ||||||||||||||||||
1-4 family | Equity | Real Estate | Business | Construction | ||||||||||||||||||||||
Allowance at December 31, 2013 | $ | 462 | $ | 605 | $ | 321 | $ | 29 | $ | 24 | $ | 197 | $ | 18 | $ | 1,656 | ||||||||||
Provision (credit) | 86 | 6 | 13 | (3 | ) | 9 | 62 | (6 | ) | 167 | ||||||||||||||||
Loans charged-off | — | (22 | ) | — | — | — | — | — | (22 | ) | ||||||||||||||||
Recoveries | 4 | 11 | — | — | — | 2 | 3 | 20 | ||||||||||||||||||
Allowance at March 31, 2014 | $ | 552 | $ | 600 | $ | 334 | $ | 26 | $ | 33 | $ | 261 | $ | 15 | $ | 1,821 | ||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||||||||
(Dollars in thousands) | Residential | Home | Commercial | Commercial | Commercial | SBA | Consumer | Total | ||||||||||||||||||
1-4 family | Equity | Real Estate | Business | Construction | ||||||||||||||||||||||
Allowance at December 31, 2012 | $ | 393 | $ | 674 | $ | 261 | $ | 25 | $ | 11 | $ | 185 | $ | 20 | $ | 1,569 | ||||||||||
Provision (credit) | (5 | ) | 86 | 11 | 1 | 1 | (11 | ) | (1 | ) | 82 | |||||||||||||||
Loans charged-off | — | (110 | ) | — | — | — | (5 | ) | — | (115 | ) | |||||||||||||||
Recoveries | 4 | 4 | — | — | — | 15 | 7 | 30 | ||||||||||||||||||
Allowance at March 31, 2013 | $ | 392 | $ | 654 | $ | 272 | $ | 26 | $ | 12 | $ | 184 | $ | 26 | $ | 1,566 | ||||||||||
Schedule of allowance for loan losses and loan balances by impaired and non-impaired components | ' | |||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||
(Dollars in thousands) | Residential | Home | Commercial | Commercial | Commercial | SBA | Consumer | Total | ||||||||||||||||||
1-4 family | Equity | Real Estate | Business | Construction | ||||||||||||||||||||||
Allowance for impaired loans | $ | 179 | $ | 64 | $ | — | $ | — | $ | — | $ | 40 | $ | 5 | $ | 288 | ||||||||||
Allowance for non-impaired loans | 373 | 536 | 334 | 26 | 33 | 221 | 10 | 1,533 | ||||||||||||||||||
Total | $ | 552 | $ | 600 | $ | 334 | $ | 26 | $ | 33 | $ | 261 | $ | 15 | $ | 1,821 | ||||||||||
Impaired loans | $ | 6,794 | $ | 338 | $ | — | $ | — | $ | — | $ | 2,139 | $ | 28 | $ | 9,299 | ||||||||||
Non-impaired loans | 92,949 | 82,463 | 95,538 | 7,455 | 9,388 | 41,487 | 1,520 | 330,800 | ||||||||||||||||||
Total loans | $ | 99,743 | $ | 82,801 | $ | 95,538 | $ | 7,455 | $ | 9,388 | $ | 43,626 | $ | 1,548 | $ | 340,099 | ||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
(Dollars in thousands) | Residential | Home | Commercial | Commercial | Commercial | SBA | Consumer | Total | ||||||||||||||||||
1-4 family | Equity | Real Estate | Business | Construction | ||||||||||||||||||||||
Allowance for impaired loans | $ | 94 | $ | 66 | $ | — | $ | — | $ | — | $ | 34 | $ | 7 | $ | 201 | ||||||||||
Allowance for non-impaired loans | 368 | 539 | 321 | 29 | 24 | 163 | 11 | 1,455 | ||||||||||||||||||
Total | $ | 462 | $ | 605 | $ | 321 | $ | 29 | $ | 24 | $ | 197 | $ | 18 | $ | 1,656 | ||||||||||
Impaired loans | $ | 6,499 | $ | 359 | $ | — | $ | — | $ | — | $ | 2,681 | $ | 33 | $ | 9,572 | ||||||||||
Non-impaired loans | 91,681 | 82,975 | 91,609 | 8,301 | 7,099 | 35,323 | 1,639 | 318,627 | ||||||||||||||||||
Total loans | $ | 98,180 | $ | 83,334 | $ | 91,609 | $ | 8,301 | $ | 7,099 | $ | 38,004 | $ | 1,672 | $ | 328,199 |
Employee_Benefits_Tables
Employee Benefits (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Employee Benefits | ' | |||
Schedule of shares held by the ESOP | ' | |||
March 31, | ||||
2014 | ||||
Allocated | — | |||
Committed to be allocated | 3,959 | |||
Unallocated | 391,975 | |||
395,934 |
OffBalance_Sheets_Activities_a1
Off-Balance Sheets Activities and Derivatives (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Off-Balance Sheets Activities and Derivatives | ' | |||||||||||
Schedule of financial instruments outstanding whose contract amounts represent credit risk | ' | |||||||||||
March 31, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Commitments to grant loans | $ | 9,681 | $ | 12,858 | ||||||||
Commitments to originate loans to be sold | 9,079 | 7,150 | ||||||||||
Unfunded commitments under home equity lines of credit | 47,605 | 46,456 | ||||||||||
Unfunded commitments under commercial lines of credit | 12,023 | 11,315 | ||||||||||
Unfunded commitments under SBA lines of credit | 3,238 | 3,601 | ||||||||||
Unadvanced funds on construction loans | 4,652 | 3,812 | ||||||||||
Schedule of the fair values of derivative instruments in the balance sheet | ' | |||||||||||
Assets | Liabilities | |||||||||||
Balance | Balance | |||||||||||
Sheet | Fair | Sheet | Fair | |||||||||
(In thousands) | Location | Value | Location | Value | ||||||||
March 31, 2014 | ||||||||||||
Derivative loan commitments | Other assets | $ | 55 | N/A | $ | — | ||||||
Forward loan sale commitments | Other assets | 251 | N/A | — | ||||||||
Total derivatives not designated as hedging instruments | $ | 306 | $ | — | ||||||||
December 31, 2013 | ||||||||||||
Derivative loan commitments | N/A | $ | — | Other liabilities | $ | 4 | ||||||
Forward loan sale commitments | Other assets | 248 | N/A | — | ||||||||
Total derivatives not designated as hedging instruments | $ | 248 | $ | 4 | ||||||||
Schedule of information pertaining to the gains and losses on Bank's derivative instruments not designated as hedging instruments | ' | |||||||||||
Derivatives Not | Location of | Three Months Ended | ||||||||||
Designated As | March 31, | |||||||||||
Hedging | ||||||||||||
Instruments | Gain/(Loss) | 2014 | 2013 | |||||||||
(In thousands) | ||||||||||||
Derivative loan commitments | Gain (loss) on sales of loans, net | $ | (14 | ) | $ | 135 | ||||||
Forward loan sale commitments | Gain on sales of loans, net | 3 | 126 | |||||||||
$ | (11 | ) | $ | 261 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Summary of significant assets and liabilities carried at fair value and placement in the fair value hierarchy | ' | ||||||||||||||||
March 31, 2014 | |||||||||||||||||
(Dollars in thousands) | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||
Derivative loan commitments | $ | — | $ | — | $ | 55 | |||||||||||
Forward loan sale commitments | — | — | 251 | ||||||||||||||
Assets measured on a non-recurring basis: | |||||||||||||||||
Impaired loans (collateral dependent) | — | — | 1,848 | ||||||||||||||
Foreclosed real estate | — | — | 372 | ||||||||||||||
December 31, 2013 | |||||||||||||||||
(Dollars in thousands) | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||
Forward loan sale commitments | $ | — | $ | — | $ | 248 | |||||||||||
Liabilities measured on a recurring basis: | |||||||||||||||||
Derivative loan commitments | — | — | 4 | ||||||||||||||
Assets measured on a non-recurring basis: | |||||||||||||||||
Impaired loans (collateral dependent) | — | — | 987 | ||||||||||||||
Foreclosed real estate | — | — | 1,170 | ||||||||||||||
Real estate held for sale | — | — | 3,515 | ||||||||||||||
Schedule of change in Level 3 assets and liabilities that are measured on a recurring basis | ' | ||||||||||||||||
Derivative Loan Commitments and Forward | |||||||||||||||||
Loan Sale Commitments | |||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||
Balance at beginning of period | $ | 244 | $ | 201 | |||||||||||||
Total realized and unrealized gains (losses) included in net income | (11 | ) | 261 | ||||||||||||||
Settlements and closed loans | 73 | 99 | |||||||||||||||
Balance at end of period | $ | 306 | $ | 561 | |||||||||||||
Total unrealized gains (losses) relating to instruments still held at period end | $ | (11 | ) | $ | 261 | ||||||||||||
Schedule of additional quantitative information about assets and liabilities measured at fair value on a recurring and non-recurring basis for which the bank utilized Level 3 inputs to determine fair value | ' | ||||||||||||||||
March 31, 2014 | |||||||||||||||||
(Dollars in thousands) | Fair | Valuation Technique | Unobservable Input | Unobservable | |||||||||||||
Value | Input Value or | ||||||||||||||||
Range | |||||||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||
Derivative loan commitments | $ | 55 | Investor pricing | Pull-through rate | 82.5-100% | ||||||||||||
Pricing spreads | 99.08-105.27% | ||||||||||||||||
Forward loan sale commitments | 251 | Investor pricing | Pull-through rate | 82.5-100% | |||||||||||||
Pricing spreads | 96.66-105.27% | ||||||||||||||||
Assets measured on a non-recurring basis: | |||||||||||||||||
Impaired loans (collateral dependent) | 1,848 | Appraisal of collateral | Collateral discounts/selling costs | 5% - 30% | |||||||||||||
Foreclosed real estate | 372 | Appraisal of collateral | Collateral discounts/selling costs | 5% - 30% | |||||||||||||
December 31, 2013 | |||||||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||
Forward loan sale commitments | $ | 248 | Investor pricing | Pull-through rate | 82.5-100% | ||||||||||||
Pricing spreads | 94.55-106.16% | ||||||||||||||||
Liabilities measured on a recurring basis: | |||||||||||||||||
Derivative loan commitments | 4 | Investor pricing | Pull-through rate | 82.5-100% | |||||||||||||
Pricing spreads | 95.28-106.16% | ||||||||||||||||
Assets measured on a non-recurring basis: | |||||||||||||||||
Impaired loans (collateral dependent) | 987 | Appraisal of collateral | Collateral discounts/selling costs | 5% - 30% | |||||||||||||
Foreclosed real estate | 1,170 | Appraisal of collateral | Collateral discounts/selling costs | 5% - 30% | |||||||||||||
Real estate held for sale | 3,515 | Appraisal of collateral | Selling costs | 5% | |||||||||||||
Summary of carrying values, estimated fair values and placement in the fair value hierarchy of the Company's financial instruments | ' | ||||||||||||||||
March 31, 2014 | Fair value measurement | ||||||||||||||||
(unaudited) | |||||||||||||||||
Carrying | |||||||||||||||||
(Dollars in thousands) | Amount | Fair Value | Level 1 inputs | Level 2 Inputs | Level 3 Inputs | ||||||||||||
Financial assets: | |||||||||||||||||
Loans, net | $ | 340,379 | $ | 343,023 | $ | — | $ | — | $ | 343,023 | |||||||
Loans held for sale | 7,785 | 7,846 | — | — | 7,846 | ||||||||||||
FHLB stock | 2,694 | 2,694 | — | — | 2,694 | ||||||||||||
Financial liabilities: | |||||||||||||||||
Certificates of deposit | 123,775 | 125,820 | — | 125,820 | — | ||||||||||||
Borrowed funds | 1,300 | 1,314 | — | 1,314 | — | ||||||||||||
December 31, 2013 | Fair value measurement | ||||||||||||||||
Carrying | |||||||||||||||||
(Dollars in thousands) | Amount | Fair Value | Level 1 inputs | Level 2 Inputs | Level 3 Inputs | ||||||||||||
Financial assets: | |||||||||||||||||
Loans, net | $ | 328,576 | $ | 327,618 | $ | — | $ | — | $ | 327,618 | |||||||
Loans held for sale | 8,648 | 8,690 | — | — | 8,690 | ||||||||||||
FHLB stock | 2,694 | 2,694 | — | — | 2,694 | ||||||||||||
Financial liabilities: | |||||||||||||||||
Certificates of deposit | 125,410 | 127,528 | — | 127,528 | — | ||||||||||||
Borrowed funds | 28,000 | 28,021 | — | 28,021 | — | ||||||||||||
(1) Excluded from this table are certain financial instruments that approximate fair value, as they were short-term in nature or payable on demand. These include cash and cash equivalents, certificates of deposit, accrued interest receivable, non-term deposit accounts, and accrued interest payable. The respective carrying values of these instruments would all be considered to be classified within Level 1 of their fair value hierarchy. |
Basis_of_Presentation_and_Cons2
Basis of Presentation and Consolidation (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended |
Jan. 14, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Summary Of Significant Accounting Policies | ' | ' | ' |
Amount of stock subscriptions received | ' | ' | $43,398,000 |
Conversion costs | ' | ' | 888,000 |
Number of shares of common stock offering on a priority basis to qualifying depositors and to the general public, including those issued to tax qualified employee benefit plans | 4,827,125 | ' | ' |
Share price (in dollars per share) | $10 | ' | ' |
Net proceeds from common stock offering on a priority basis to qualifying depositors and to the general public, including those issued to tax qualified employee benefit plans | 46,300,000 | ' | ' |
Amount of cash contribution to Coastway Cares Charitable Foundation II | 300,000 | ' | ' |
Number of common stock shares contribution to Coastway Cares Charitable Foundation II | 122,054 | ' | ' |
Total contribution to Coastway Cares Charitable Foundation II as a percentage of gross proceeds of offering | 3.15% | ' | ' |
Gross proceeds of the offering | 1,500,000 | 1,521,000 | ' |
Total number of shares of common stock outstanding upon completion of the Conversion | 4,949,179 | ' | ' |
Liquidation amount | $27,500,000 | ' | ' |
Bancorp | ' | ' | ' |
Summary Of Significant Accounting Policies | ' | ' | ' |
Ownership percentage | 100.00% | ' | ' |
Coastway Bancorp, MHC | ' | ' | ' |
Summary Of Significant Accounting Policies | ' | ' | ' |
Ownership percentage | ' | 100.00% | ' |
Certificates_of_Deposit_Detail
Certificates of Deposit (Details) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Certificates of Deposit | ' |
Certificates of deposit | $3,000 |
Interest rate on certificates of deposit (as a percent) | 0.65% |
Loans_Details
Loans (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | |
Loans | ' | ' | ' | ' |
Total loans | $340,099,000 | $328,199,000 | ' | ' |
Allowance for loan losses | -1,821,000 | -1,656,000 | -1,566,000 | -1,569,000 |
Net deferred loan costs | 2,101,000 | 2,033,000 | ' | ' |
Loans, net | 340,379,000 | 328,576,000 | ' | ' |
Historical loss period used to capture relevant loss data for each loan segment | '10 years | ' | ' | ' |
Period of charge-off trends to be considered for adjustment to historical loss factor | '3 years | ' | ' | ' |
1-4 family | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Allowance for loan losses | -552,000 | -462,000 | -392,000 | -393,000 |
Home equity loans and lines of credit | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Allowance for loan losses | -600,000 | -605,000 | -654,000 | -674,000 |
Commercial real estate | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Allowance for loan losses | -334,000 | -321,000 | -272,000 | -261,000 |
Commercial business | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Allowance for loan losses | -26,000 | -29,000 | -26,000 | -25,000 |
Commercial construction | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Allowance for loan losses | -33,000 | -24,000 | -12,000 | -11,000 |
SBA | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Allowance for loan losses | -261,000 | -197,000 | -184,000 | -185,000 |
Consumer | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total loans | 1,548,000 | 1,672,000 | ' | ' |
Residential real estate mortgage loans | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total loans | 182,544,000 | 181,514,000 | ' | ' |
Residential real estate mortgage loans | 1-4 family | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total loans | 99,743,000 | 98,180,000 | ' | ' |
Residential real estate mortgage loans | Home equity loans and lines of credit | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total loans | 82,801,000 | 83,334,000 | ' | ' |
Commercial loans | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total loans | 156,007,000 | 145,013,000 | ' | ' |
Commercial loans | Commercial real estate | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total loans | 95,538,000 | 91,609,000 | ' | ' |
Period of FHLB rate above which margin will be added to compute adjustable-rate | '5 years | ' | ' | ' |
Commercial loans | Commercial business | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total loans | 7,455,000 | 8,301,000 | ' | ' |
Commercial loans | Commercial construction | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total loans | 9,388,000 | 7,099,000 | ' | ' |
Loans provided as a percentage of projected costs | 50.00% | ' | ' | ' |
Commercial loans | SBA | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total loans | 43,626,000 | 38,004,000 | ' | ' |
Commercial loans | SBA | Maximum | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Percentage of principal and accrued interest that may qualify for guarantees | 85.00% | ' | ' | ' |
Guaranteed portions | $3,750,000 | ' | ' | ' |
Loans_Details_2
Loans (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Credit Quality Indicators | ' | ' |
Total loans | $340,099 | $328,199 |
Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | 156,007 | 145,013 |
Commercial Real Estate | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | 95,538 | 91,609 |
Commercial Business | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | 7,455 | 8,301 |
Commercial Construction | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | 9,388 | 7,099 |
SBA | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | 43,626 | 38,004 |
Loans rated 1 -5 | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | 146,028 | 133,125 |
Loans rated 1 -5 | Commercial Real Estate | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | 91,785 | 88,578 |
Loans rated 1 -5 | Commercial Business | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | 7,246 | 7,898 |
Loans rated 1 -5 | Commercial Construction | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | 9,388 | 5,926 |
Loans rated 1 -5 | SBA | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | 37,609 | 30,723 |
Loans rated 5.5 | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | 4,771 | 5,519 |
Loans rated 5.5 | Commercial Real Estate | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | 2,627 | 2,858 |
Loans rated 5.5 | Commercial Business | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | ' | 168 |
Loans rated 5.5 | SBA | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | 2,144 | 2,493 |
Loans rated 6 | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | 818 | 1,007 |
Loans rated 6 | Commercial Real Estate | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | 277 | ' |
Loans rated 6 | SBA | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | 541 | 1,007 |
Loans rated 7 | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | 4,064 | 5,203 |
Loans rated 7 | Commercial Real Estate | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | 849 | 173 |
Loans rated 7 | Commercial Business | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | 209 | 235 |
Loans rated 7 | Commercial Construction | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | ' | 1,173 |
Loans rated 7 | SBA | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | 3,006 | 3,622 |
Loans rated 8 | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | 326 | 159 |
Loans rated 8 | SBA | Commercial loans | ' | ' |
Credit Quality Indicators | ' | ' |
Total loans | $326 | $159 |
Loans_Details_3
Loans (Details 3) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Past due loans | ' | ' |
30-59 Days Past Due | $1,458 | $2,369 |
60-89 Days Past Due | 821 | 1,654 |
90 Days or More Past Due | 2,707 | 2,065 |
Total Past Due | 4,986 | 6,088 |
Loans on Non-accrual | 6,962 | 6,459 |
Consumer | ' | ' |
Past due loans | ' | ' |
30-59 Days Past Due | 4 | 19 |
Total Past Due | 4 | 19 |
Loans on Non-accrual | ' | 3 |
Residential 1-4 family | ' | ' |
Past due loans | ' | ' |
30-59 Days Past Due | 1,239 | 925 |
60-89 Days Past Due | 634 | 1,573 |
90 Days or More Past Due | 1,704 | 1,035 |
Total Past Due | 3,577 | 3,533 |
Loans on Non-accrual | 5,760 | 4,790 |
Home equity loans and lines of credit | ' | ' |
Past due loans | ' | ' |
30-59 Days Past Due | 131 | 294 |
60-89 Days Past Due | 187 | ' |
90 Days or More Past Due | 23 | 53 |
Total Past Due | 341 | 347 |
Loans on Non-accrual | 138 | 158 |
SBA | ' | ' |
Past due loans | ' | ' |
30-59 Days Past Due | 84 | 1,131 |
60-89 Days Past Due | ' | 81 |
90 Days or More Past Due | 980 | 977 |
Total Past Due | 1,064 | 2,189 |
Loans on Non-accrual | $1,064 | $1,508 |
Loans_Details_4
Loans (Details 4) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Recorded investment in impaired loans and the related specific allowance allocated | ' | ' | ' |
Period of current payments after which loans are returned to accrual status after a period of satisfactory payment performance | '6 months | ' | ' |
Unpaid contractual principal balance | $9,519,000 | ' | $9,996,000 |
Total recorded investment in impaired loans | 9,299,000 | ' | 9,572,000 |
Recorded investment with no allowance | 3,823,000 | ' | 5,569,000 |
Recorded investment with allowance | 5,476,000 | ' | 4,002,000 |
Related allowance | 288,000 | ' | 201,000 |
Average recorded investment | 9,521,000 | 9,675,000 | ' |
Interest income recognized | 128,000 | 118,000 | ' |
Consumer | ' | ' | ' |
Recorded investment in impaired loans and the related specific allowance allocated | ' | ' | ' |
Unpaid contractual principal balance | 28,000 | ' | 33,000 |
Total recorded investment in impaired loans | 28,000 | ' | 33,000 |
Recorded investment with no allowance | 11,000 | ' | 12,000 |
Recorded investment with allowance | 17,000 | ' | 20,000 |
Related allowance | 5,000 | ' | 7,000 |
Average recorded investment | 31,000 | 41,000 | ' |
Interest income recognized | 1,000 | ' | ' |
Residential 1-4 family | ' | ' | ' |
Recorded investment in impaired loans and the related specific allowance allocated | ' | ' | ' |
Unpaid contractual principal balance | 6,956,000 | ' | 6,660,000 |
Total recorded investment in impaired loans | 6,794,000 | ' | 6,499,000 |
Recorded investment with no allowance | 2,351,000 | ' | 3,689,000 |
Recorded investment with allowance | 4,443,000 | ' | 2,810,000 |
Related allowance | 179,000 | ' | 94,000 |
Average recorded investment | 6,684,000 | 6,708,000 | ' |
Interest income recognized | 36,000 | 97,000 | ' |
Home equity loans and lines of credit | ' | ' | ' |
Recorded investment in impaired loans and the related specific allowance allocated | ' | ' | ' |
Unpaid contractual principal balance | 390,000 | ' | 548,000 |
Total recorded investment in impaired loans | 338,000 | ' | 359,000 |
Recorded investment with no allowance | 80,000 | ' | 104,000 |
Recorded investment with allowance | 258,000 | ' | 255,000 |
Related allowance | 64,000 | ' | 66,000 |
Average recorded investment | 342,000 | 872,000 | ' |
Interest income recognized | 3,000 | 6,000 | ' |
SBA | ' | ' | ' |
Recorded investment in impaired loans and the related specific allowance allocated | ' | ' | ' |
Unpaid contractual principal balance | 2,145,000 | ' | 2,755,000 |
Total recorded investment in impaired loans | 2,139,000 | ' | 2,681,000 |
Recorded investment with no allowance | 1,381,000 | ' | 1,764,000 |
Recorded investment with allowance | 758,000 | ' | 917,000 |
Related allowance | 40,000 | ' | 34,000 |
Guaranteed portions of impaired loans | 1,800,000 | ' | 2,300,000 |
Average recorded investment | 2,464,000 | 2,054,000 | ' |
Interest income recognized | $88,000 | $15,000 | ' |
Loans_Details_5
Loans (Details 5) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
item | item | ||
Troubled Debt Restructurings (TDRs) | ' | ' | ' |
Total TDR loans | $6,200,000 | ' | $6,600,000 |
Number of restructurings | 3 | 2 | ' |
Pre-modification outstanding recorded investment | 834,000 | 301,000 | ' |
Post-modification outstanding recorded investment | 834,000 | 301,000 | ' |
Troubled debt restructurings that subsequently defaulted within 12 months of restructuring | ' | ' | ' |
Number of TDR's that defaulted | 4 | 3 | ' |
Post-modification outstanding recorded investment | 878,000 | 227,000 | ' |
Accrual status | ' | ' | ' |
Troubled Debt Restructurings (TDRs) | ' | ' | ' |
Total TDR loans | 2,400,000 | ' | 3,100,000 |
Residential 1-4 family | ' | ' | ' |
Troubled Debt Restructurings (TDRs) | ' | ' | ' |
Number of restructurings | 3 | 1 | ' |
Pre-modification outstanding recorded investment | 834,000 | 289,000 | ' |
Post-modification outstanding recorded investment | 834,000 | 289,000 | ' |
Troubled debt restructurings that subsequently defaulted within 12 months of restructuring | ' | ' | ' |
Number of TDR's that defaulted | 4 | 1 | ' |
Post-modification outstanding recorded investment | 878,000 | 175,000 | ' |
SBA | ' | ' | ' |
Troubled debt restructurings that subsequently defaulted within 12 months of restructuring | ' | ' | ' |
Number of TDR's that defaulted | ' | 1 | ' |
Post-modification outstanding recorded investment | ' | 39,000 | ' |
Consumer | ' | ' | ' |
Troubled Debt Restructurings (TDRs) | ' | ' | ' |
Number of restructurings | ' | 1 | ' |
Pre-modification outstanding recorded investment | ' | 12,000 | ' |
Post-modification outstanding recorded investment | ' | 12,000 | ' |
Troubled debt restructurings that subsequently defaulted within 12 months of restructuring | ' | ' | ' |
Number of TDR's that defaulted | ' | 1 | ' |
Post-modification outstanding recorded investment | ' | $13,000 | ' |
Loans_Details_6
Loans (Details 6) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Changes in the allowance for loan losses by segment | ' | ' | ' |
Allowance at beginning of the period | $1,656 | $1,569 | ' |
Provisions (credit) | 167 | 82 | ' |
Loans charged-off | -22 | -115 | ' |
Recoveries | 20 | 30 | ' |
Allowance at the end of the period | 1,821 | 1,566 | ' |
Allowance for loan losses | ' | ' | ' |
Allowance for impaired loans | 288 | ' | 201 |
Allowance for non-impaired loans | 1,533 | ' | 1,455 |
Total | 1,821 | 1,566 | ' |
Loans | ' | ' | ' |
Impaired loans | 9,299 | ' | 9,572 |
Non-impaired loans | 330,800 | ' | 318,627 |
Total Loans | 340,099 | ' | 328,199 |
Consumer | ' | ' | ' |
Changes in the allowance for loan losses by segment | ' | ' | ' |
Allowance at beginning of the period | 18 | 20 | ' |
Provisions (credit) | -6 | -1 | ' |
Recoveries | 3 | 7 | ' |
Allowance at the end of the period | 15 | 26 | ' |
Allowance for loan losses | ' | ' | ' |
Allowance for impaired loans | 5 | ' | 7 |
Allowance for non-impaired loans | 10 | ' | 11 |
Total | 15 | 26 | ' |
Loans | ' | ' | ' |
Impaired loans | 28 | ' | 33 |
Non-impaired loans | 1,520 | ' | 1,639 |
Total Loans | 1,548 | ' | 1,672 |
Residential 1-4 family | ' | ' | ' |
Changes in the allowance for loan losses by segment | ' | ' | ' |
Allowance at beginning of the period | 462 | 393 | ' |
Provisions (credit) | 86 | -5 | ' |
Recoveries | 4 | 4 | ' |
Allowance at the end of the period | 552 | 392 | ' |
Allowance for loan losses | ' | ' | ' |
Allowance for impaired loans | 179 | ' | 94 |
Allowance for non-impaired loans | 373 | ' | 368 |
Total | 552 | 392 | ' |
Loans | ' | ' | ' |
Impaired loans | 6,794 | ' | 6,499 |
Non-impaired loans | 92,949 | ' | 91,681 |
Total Loans | 99,743 | ' | 98,180 |
Home Equity | ' | ' | ' |
Changes in the allowance for loan losses by segment | ' | ' | ' |
Allowance at beginning of the period | 605 | 674 | ' |
Provisions (credit) | 6 | 86 | ' |
Loans charged-off | -22 | -110 | ' |
Recoveries | 11 | 4 | ' |
Allowance at the end of the period | 600 | 654 | ' |
Allowance for loan losses | ' | ' | ' |
Allowance for impaired loans | 64 | ' | 66 |
Allowance for non-impaired loans | 536 | ' | 539 |
Total | 600 | 654 | ' |
Loans | ' | ' | ' |
Impaired loans | 338 | ' | 359 |
Non-impaired loans | 82,463 | ' | 82,975 |
Total Loans | 82,801 | ' | 83,334 |
Commercial Real Estate | ' | ' | ' |
Changes in the allowance for loan losses by segment | ' | ' | ' |
Allowance at beginning of the period | 321 | 261 | ' |
Provisions (credit) | 13 | 11 | ' |
Allowance at the end of the period | 334 | 272 | ' |
Allowance for loan losses | ' | ' | ' |
Allowance for non-impaired loans | 334 | ' | 321 |
Total | 334 | 272 | ' |
Loans | ' | ' | ' |
Non-impaired loans | 95,538 | ' | 91,609 |
Total Loans | 95,538 | ' | 91,609 |
Commercial Business | ' | ' | ' |
Changes in the allowance for loan losses by segment | ' | ' | ' |
Allowance at beginning of the period | 29 | 25 | ' |
Provisions (credit) | -3 | 1 | ' |
Allowance at the end of the period | 26 | 26 | ' |
Allowance for loan losses | ' | ' | ' |
Allowance for non-impaired loans | 26 | ' | 29 |
Total | 26 | 26 | ' |
Loans | ' | ' | ' |
Non-impaired loans | 7,455 | ' | 8,301 |
Total Loans | 7,455 | ' | 8,301 |
Commercial Construction | ' | ' | ' |
Changes in the allowance for loan losses by segment | ' | ' | ' |
Allowance at beginning of the period | 24 | 11 | ' |
Provisions (credit) | 9 | 1 | ' |
Allowance at the end of the period | 33 | 12 | ' |
Allowance for loan losses | ' | ' | ' |
Allowance for non-impaired loans | 33 | ' | 24 |
Total | 33 | 12 | ' |
Loans | ' | ' | ' |
Non-impaired loans | 9,388 | ' | 7,099 |
Total Loans | 9,388 | ' | 7,099 |
SBA | ' | ' | ' |
Changes in the allowance for loan losses by segment | ' | ' | ' |
Allowance at beginning of the period | 197 | 185 | ' |
Provisions (credit) | 62 | -11 | ' |
Loans charged-off | ' | -5 | ' |
Recoveries | 2 | 15 | ' |
Allowance at the end of the period | 261 | 184 | ' |
Allowance for loan losses | ' | ' | ' |
Allowance for impaired loans | 40 | ' | 34 |
Allowance for non-impaired loans | 221 | ' | 163 |
Total | 261 | 184 | ' |
Loans | ' | ' | ' |
Impaired loans | 2,139 | ' | 2,681 |
Non-impaired loans | 41,487 | ' | 35,323 |
Total Loans | $43,626 | ' | $38,004 |
Employee_Benefits_Details
Employee Benefits (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2014 | Jul. 02, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
item | SERP | SERP | Defined Benefit Pension Plan | Defined Benefit Pension Plan | |
Executive officers | |||||
item | |||||
Employee benefits | ' | ' | ' | ' | ' |
Number of employees with whom the entity entered into agreements | ' | ' | 6 | ' | ' |
Expense (income) | ' | $102,000 | ' | ($6,600) | $12,000 |
Expected contribution for the current plan year | ' | ' | ' | 78,000 | ' |
Employee Stock Ownership Plan | ' | ' | ' | ' | ' |
Percentage of common stock outstanding, held in ESOP | 8.00% | ' | ' | ' | ' |
Term of loan payable | '25 years | ' | ' | ' | ' |
Interest rate (as a percent) | 3.25% | ' | ' | ' | ' |
Maximum period for payments of cash dividends | '90 days | ' | ' | ' | ' |
Shares held by the ESOP | ' | ' | ' | ' | ' |
Allocated | 0 | ' | ' | ' | ' |
Committed to be allocated | 3,959 | ' | ' | ' | ' |
Unallocated | 391,975 | ' | ' | ' | ' |
Total | 395,934 | ' | ' | ' | ' |
Fair value of unallocated shares | 4,000,000 | ' | ' | ' | ' |
Compensation expense | $41,000 | ' | ' | ' | ' |
Change in Control Severance Plan | ' | ' | ' | ' | ' |
Number of times base salary plus highest bonus will be paid immediately prior to termination of participants | 2 | ' | ' | ' | ' |
Period considered for payment of highest bonus immediately prior to termination of participants in the Severance Plan | '2 years | ' | ' | ' | ' |
OffBalance_Sheets_Activities_a2
Off-Balance Sheets Activities and Derivatives (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commitments to grant loans | ' | ' |
Loan Commitments | ' | ' |
Outstanding financial instruments whose contract amounts represent credit risk | $9,681 | $12,858 |
Commitments to originate loans to be sold | ' | ' |
Loan Commitments | ' | ' |
Outstanding financial instruments whose contract amounts represent credit risk | 9,079 | 7,150 |
Unfunded commitments under home equity lines of credit | ' | ' |
Loan Commitments | ' | ' |
Outstanding financial instruments whose contract amounts represent credit risk | 47,605 | 46,456 |
Unfunded commitments under commercial lines of credit | ' | ' |
Loan Commitments | ' | ' |
Outstanding financial instruments whose contract amounts represent credit risk | 12,023 | 11,315 |
Unfunded commitments under SBA lines of credit | ' | ' |
Loan Commitments | ' | ' |
Outstanding financial instruments whose contract amounts represent credit risk | 3,238 | 3,601 |
Unadvanced funds on construction loans | ' | ' |
Loan Commitments | ' | ' |
Outstanding financial instruments whose contract amounts represent credit risk | $4,652 | $3,812 |
OffBalance_Sheets_Activities_a3
Off-Balance Sheets Activities and Derivatives (Details 2) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Forward loan sale commitments | ' | ' |
Fair values of derivative instruments in the balance sheet | ' | ' |
Commitments to sell loans | $16,900,000 | $15,700,000 |
Not Designated As Hedging Instruments | ' | ' |
Fair values of derivative instruments in the balance sheet | ' | ' |
Assets, Fair Value | 306,000 | 248,000 |
Liabilities, Fair Value | ' | 4,000 |
Not Designated As Hedging Instruments | Derivative loan commitments | Other assets | ' | ' |
Fair values of derivative instruments in the balance sheet | ' | ' |
Assets, Fair Value | 55,000 | ' |
Not Designated As Hedging Instruments | Derivative loan commitments | Other liabilities | ' | ' |
Fair values of derivative instruments in the balance sheet | ' | ' |
Liabilities, Fair Value | ' | 4,000 |
Not Designated As Hedging Instruments | Forward loan sale commitments | Other assets | ' | ' |
Fair values of derivative instruments in the balance sheet | ' | ' |
Assets, Fair Value | $251,000 | $248,000 |
OffBalance_Sheets_Activities_a4
Off-Balance Sheets Activities and Derivatives (Details 3) (Not Designated As Hedging Instruments, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Gains and losses on derivative instruments | ' | ' |
Gains (losses) on derivative instruments | ($11) | $261 |
Derivative loan commitments | Gain (loss) on sale of loans, net | ' | ' |
Gains and losses on derivative instruments | ' | ' |
Gains (losses) on derivative instruments | -14 | 135 |
Forward loan sale commitments | Gain (loss) on sale of loans, net | ' | ' |
Gains and losses on derivative instruments | ' | ' |
Gains (losses) on derivative instruments | $3 | $126 |
OffBalance_Sheets_Activities_a5
Off-Balance Sheets Activities and Derivatives (Details 4) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2014 |
New corporate headquarters currently under construction | New corporate headquarters currently under construction | Current headquarters | |||
Premises and Equipment | ' | ' | ' | ' | ' |
Purchase price | ' | ' | ' | $8,800,000 | ' |
Additional cost | ' | ' | 1,700,000 | ' | ' |
Carrying value | $25,513,000 | $25,584,000 | ' | ' | $3,300,000 |
OffBalance_Sheets_Activities_a6
Off-Balance Sheets Activities and Derivatives (Details 5) (Loan application management services contract, USD $) | 1 Months Ended |
Oct. 31, 2013 | |
Loan application management services contract | ' |
Legal and Other Loss Contingencies | ' |
Claim amount | $178,000 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Fair value measurements | ' | ' | ' |
Fair value, Foreclosed real estate | $1,542,000 | ' | $1,580,000 |
Fair value, Real estate held for sale | 3,515,000 | ' | 3,515,000 |
Losses on collateral dependent impaired loans | 123,000 | 28,000 | ' |
Losses on foreclosed real estate | 38,000 | 0 | ' |
Total write-downs losses on real estate held for sale | 0 | 0 | ' |
Non-recurring | ' | ' | ' |
Fair value measurements | ' | ' | ' |
Liabilities measured at fair value | 0 | ' | ' |
Non-recurring | (level 3) | ' | ' | ' |
Fair value measurements | ' | ' | ' |
Fair value, Impaired loans (collateral dependent) | 1,848,000 | ' | 987,000 |
Fair value, Foreclosed real estate | 372,000 | ' | 1,170,000 |
Fair value, Real estate held for sale | ' | ' | 3,515,000 |
Recurring | (level 3) | Derivative loan commitments | ' | ' | ' |
Fair value measurements | ' | ' | ' |
Assets, Fair Value | 55,000 | ' | ' |
Liabilities, Fair Value | ' | ' | 4,000 |
Recurring | (level 3) | Forward loan sale commitments | ' | ' | ' |
Fair value measurements | ' | ' | ' |
Assets, Fair Value | $251,000 | ' | $248,000 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Loan Commitments and Forward Loan Sale Commitments, change in Level 3 assets and liabilities that are measured on a recurring basis | ' | ' |
Balance at the beginning of period | $244 | $201 |
Total realized and unrealized gains (losses) included in net income | -11 | 261 |
Settlements and closed loans | 73 | 99 |
Balance at the end of period | 306 | 561 |
Derivative Loan Commitments and Forward Loan Sale Commitments, total unrealized gains (losses) relating to instruments still held at period end | ($11) | $261 |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Additional quantitative information about assets and liabilities measured at fair value on a recurring and non-recurring basis | ' | ' |
Fair value, Foreclosed real estate | 1,542 | 1,580 |
Fair value, Real estate held for sale | 3,515 | 3,515 |
Recurring | Level 3 Inputs | Derivative loan commitments | ' | ' |
Additional quantitative information about assets and liabilities measured at fair value on a recurring and non-recurring basis | ' | ' |
Fair Value, Assets | 55 | ' |
Fair Value, Liabilities | ' | 4 |
Recurring | Level 3 Inputs | Derivative loan commitments | Investor pricing | Minimum | ' | ' |
Additional quantitative information about assets and liabilities measured at fair value on a recurring and non-recurring basis | ' | ' |
Pull-through rate (as a percent) | 82.50% | 82.50% |
Pricing spreads (as a percent) | 99.08% | 95.28% |
Recurring | Level 3 Inputs | Derivative loan commitments | Investor pricing | Maximum | ' | ' |
Additional quantitative information about assets and liabilities measured at fair value on a recurring and non-recurring basis | ' | ' |
Pull-through rate (as a percent) | 100.00% | 100.00% |
Pricing spreads (as a percent) | 105.27% | 106.16% |
Recurring | Level 3 Inputs | Forward loan sale commitments | ' | ' |
Additional quantitative information about assets and liabilities measured at fair value on a recurring and non-recurring basis | ' | ' |
Fair Value, Assets | 251 | 248 |
Recurring | Level 3 Inputs | Forward loan sale commitments | Investor pricing | Minimum | ' | ' |
Additional quantitative information about assets and liabilities measured at fair value on a recurring and non-recurring basis | ' | ' |
Pull-through rate (as a percent) | 82.50% | 82.50% |
Pricing spreads (as a percent) | 96.66% | 94.55% |
Recurring | Level 3 Inputs | Forward loan sale commitments | Investor pricing | Maximum | ' | ' |
Additional quantitative information about assets and liabilities measured at fair value on a recurring and non-recurring basis | ' | ' |
Pull-through rate (as a percent) | 100.00% | 100.00% |
Pricing spreads (as a percent) | 105.27% | 106.16% |
Non-recurring | Level 3 Inputs | ' | ' |
Additional quantitative information about assets and liabilities measured at fair value on a recurring and non-recurring basis | ' | ' |
Fair value, Impaired loans (collateral dependent) | 1,848 | 987 |
Fair value, Foreclosed real estate | 372 | 1,170 |
Fair value, Real estate held for sale | ' | 3,515 |
Non-recurring | Level 3 Inputs | Impaired loans (collateral dependent) | Appraisal of collateral | Minimum | ' | ' |
Additional quantitative information about assets and liabilities measured at fair value on a recurring and non-recurring basis | ' | ' |
Collateral discounts/selling costs (as a percent) | 5.00% | 5.00% |
Non-recurring | Level 3 Inputs | Impaired loans (collateral dependent) | Appraisal of collateral | Maximum | ' | ' |
Additional quantitative information about assets and liabilities measured at fair value on a recurring and non-recurring basis | ' | ' |
Collateral discounts/selling costs (as a percent) | 30.00% | 30.00% |
Non-recurring | Level 3 Inputs | Foreclosed real estate | Appraisal of collateral | Minimum | ' | ' |
Additional quantitative information about assets and liabilities measured at fair value on a recurring and non-recurring basis | ' | ' |
Collateral discounts/selling costs (as a percent) | 5.00% | 5.00% |
Non-recurring | Level 3 Inputs | Foreclosed real estate | Appraisal of collateral | Maximum | ' | ' |
Additional quantitative information about assets and liabilities measured at fair value on a recurring and non-recurring basis | ' | ' |
Collateral discounts/selling costs (as a percent) | 30.00% | 30.00% |
Non-recurring | Level 3 Inputs | Real estate held for sale | Appraisal of collateral | ' | ' |
Additional quantitative information about assets and liabilities measured at fair value on a recurring and non-recurring basis | ' | ' |
Selling costs (as a percent) | ' | 5.00% |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details 4) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial liabilities: | ' | ' |
Borrowed funds | $1,300 | $28,000 |
Level 2 Inputs | ' | ' |
Financial liabilities: | ' | ' |
Certificates of deposit | 125,820 | 127,528 |
Borrowed funds | 1,314 | 28,021 |
Level 3 Inputs | ' | ' |
Financial assets: | ' | ' |
Loans, net | 343,023 | 327,618 |
Loans held for sale | 7,846 | 8,690 |
FHLB stock | 2,694 | 2,694 |
Carrying Amount | ' | ' |
Financial assets: | ' | ' |
Loans, net | 340,379 | 328,576 |
Loans held for sale | 7,785 | 8,648 |
FHLB stock | 2,694 | 2,694 |
Financial liabilities: | ' | ' |
Certificates of deposit | 123,775 | 125,410 |
Borrowed funds | 1,300 | 28,000 |
Fair Value | ' | ' |
Financial assets: | ' | ' |
Loans, net | 343,023 | 327,618 |
Loans held for sale | 7,846 | 8,690 |
FHLB stock | 2,694 | 2,694 |
Financial liabilities: | ' | ' |
Certificates of deposit | 125,820 | 127,528 |
Borrowed funds | $1,314 | $28,021 |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent event, USD $) | 1 Months Ended |
Apr. 30, 2014 | |
Subsequent event | ' |
Subsequent events | ' |
Termination benefits | $111,000 |
Period over which benefits will be paid | '140 days |