UNITED STATES | |||
SECURITIES AND EXCHANGE COMMISSION | |||
Washington, D.C. 20549 | |||
FORM 10-Q | |||
[X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the quarterly period ended September 30, 2017 | |||
or | |||
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the transition period from ____________ to ____________ | |||
Commission File Number: 001-33652 | |||
FIRST FINANCIAL NORTHWEST, INC. | |||
(Exact name of registrant as specified in its charter) | |||
Washington | 26-0610707 | ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | ||
201 Wells Avenue South, Renton, Washington | 98057 | ||
(Address of principal executive offices) | (Zip Code) | ||
Registrant’s telephone number, including area code: | (425) 255-4400 | ||
Large accelerated filer _____ | Accelerated filer X | Non-accelerated filer _____ |
Smaller reporting company _____ | Emerging growth company _____ |
Page | |||
PART I - FINANCIAL INFORMATION | |||
Item 1. | Financial Statements | ||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | ||
Item 4. | Controls and Procedures | ||
PART II - OTHER INFORMATION | |||
Item 1. | Legal Proceedings | ||
Item 1A. | Risk Factors | ||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | ||
Item 3. | Defaults upon Senior Securities | ||
Item 4. | Mine Safety Disclosures | ||
Item 5. | Other Information | ||
Item 6. | Exhibits | ||
SIGNATURES |
September 30, 2017 | December 31, 2016 | ||||||
Assets | |||||||
(Unaudited) | |||||||
Cash on hand and in banks | $ | 7,910 | $ | 5,779 | |||
Interest-earning deposits with banks | 14,093 | 25,573 | |||||
Investments available-for-sale, at fair value | 137,847 | 129,260 | |||||
Loans receivable, net of allowance of $12,110 and $10,951 | 931,862 | 815,043 | |||||
Federal Home Loan Bank ("FHLB") stock, at cost | 8,902 | 8,031 | |||||
Accrued interest receivable | 3,709 | 3,147 | |||||
Deferred tax assets, net | 2,381 | 3,142 | |||||
Other real estate owned ("OREO") | 1,825 | 2,331 | |||||
Premises and equipment, net | 20,568 | 18,461 | |||||
Bank owned life insurance ("BOLI"), net | 28,894 | 24,153 | |||||
Prepaid expenses and other assets | 3,304 | 2,664 | |||||
Goodwill | 979 | — | |||||
Core deposit intangible | 1,304 | — | |||||
Total assets | $ | 1,163,578 | $ | 1,037,584 | |||
Liabilities and Stockholders' Equity | |||||||
Deposits: | |||||||
Noninterest-bearing deposits | $ | 47,652 | $ | 33,422 | |||
Interest-bearing deposits | 768,088 | 684,054 | |||||
Total deposits | 815,740 | 717,476 | |||||
FHLB Advances | 191,500 | 171,500 | |||||
Advance payments from borrowers for taxes and insurance | 4,267 | 2,259 | |||||
Accrued interest payable | 280 | 231 | |||||
Other liabilities | 11,031 | 7,993 | |||||
Total liabilities | 1,022,818 | 899,459 | |||||
Commitments and contingencies | |||||||
Stockholders' Equity | |||||||
Preferred stock, $0.01 par value; authorized 10,000,000 shares; no shares issued or outstanding | — | — | |||||
Common stock, $0.01 par value; authorized 90,000,000 shares; issued and outstanding 10,763,915 shares at September 30, 2017, and 10,938,251 shares at December 31, 2016 | 108 | 109 | |||||
Additional paid-in capital | 94,168 | 96,852 | |||||
Retained earnings, substantially restricted | 52,984 | 48,981 | |||||
Accumulated other comprehensive loss, net of tax | (857 | ) | (1,328 | ) | |||
Unearned Employee Stock Ownership Plan ("ESOP") shares | (5,643 | ) | (6,489 | ) | |||
Total stockholders' equity | 140,760 | 138,125 | |||||
Total liabilities and stockholders' equity | $ | 1,163,578 | $ | 1,037,584 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Interest income | |||||||||||||||
Loans, including fees | $ | 10,959 | $ | 9,967 | $ | 31,338 | $ | 27,742 | |||||||
Investments available-for-sale | 869 | 792 | 2,601 | 2,224 | |||||||||||
Interest-earning deposits with banks | 108 | 38 | 194 | 198 | |||||||||||
Dividends on FHLB stock | 67 | 45 | 211 | 136 | |||||||||||
Total interest income | 12,003 | 10,842 | 34,344 | 30,300 | |||||||||||
Interest expense | |||||||||||||||
Deposits | 1,933 | 1,545 | 5,400 | 4,469 | |||||||||||
FHLB advances and other borrowings | 695 | 363 | 1,710 | 933 | |||||||||||
Total interest expense | 2,628 | 1,908 | 7,110 | 5,402 | |||||||||||
Net interest income | 9,375 | 8,934 | 27,234 | 24,898 | |||||||||||
Provision for loan losses | 500 | 900 | 800 | 1,400 | |||||||||||
Net interest income after provision for loan losses | 8,875 | 8,034 | 26,434 | 23,498 | |||||||||||
Noninterest income | |||||||||||||||
Net gain on sale of investments | 47 | 33 | 103 | 33 | |||||||||||
BOLI income | 173 | 251 | 490 | 641 | |||||||||||
Wealth management revenue | 252 | 165 | 699 | 656 | |||||||||||
Other | 259 | 224 | 705 | 531 | |||||||||||
Total noninterest income | 731 | 673 | 1,997 | 1,861 | |||||||||||
Noninterest expense | |||||||||||||||
Salaries and employee benefits | 4,406 | 3,821 | 13,100 | 11,436 | |||||||||||
Occupancy and equipment | 726 | 467 | 1,785 | 1,463 | |||||||||||
Professional fees | 458 | 458 | 1,379 | 1,487 | |||||||||||
Data processing | 372 | 259 | 1,131 | 700 | |||||||||||
OREO related (reimbursements) expenses, net | (6 | ) | (11 | ) | 14 | 299 | |||||||||
Regulatory assessments | 122 | 82 | 330 | 319 | |||||||||||
Insurance and bond premiums | 105 | 86 | 302 | 260 | |||||||||||
Marketing | 102 | 67 | 202 | 145 | |||||||||||
Other general and administrative | 551 | 25 | 1,497 | 990 | |||||||||||
Total noninterest expense | 6,836 | 5,254 | 19,740 | 17,099 | |||||||||||
Income before federal income tax provision | 2,770 | 3,453 | 8,691 | 8,260 | |||||||||||
Federal income tax provision | 909 | 847 | 2,618 | 2,389 | |||||||||||
Net income | $ | 1,861 | $ | 2,606 | $ | 6,073 | $ | 5,871 | |||||||
Basic earnings per common share | $ | 0.18 | $ | 0.22 | $ | 0.59 | $ | 0.47 | |||||||
Diluted earnings per common share | $ | 0.18 | $ | 0.22 | $ | 0.58 | $ | 0.47 | |||||||
Basic weighted average number of common shares outstanding | 10,287,663 | 11,859,683 | 10,323,459 | 12,329,815 | |||||||||||
Diluted weighted average number of common shares outstanding | 10,427,038 | 12,011,952 | 10,480,061 | 12,481,379 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 1,861 | $ | 2,606 | $ | 6,073 | $ | 5,871 | |||||||
Other comprehensive income, before tax: | |||||||||||||||
Gross unrealized holding gains (losses) on investments available-for-sale | 214 | (509 | ) | 1,043 | 1,800 | ||||||||||
Tax (provision) benefit | (75 | ) | 178 | (365 | ) | (631 | ) | ||||||||
Reclassification adjustment for net gains realized in income | (47 | ) | (33 | ) | (103 | ) | (33 | ) | |||||||
Tax benefit | 17 | 12 | 36 | 12 | |||||||||||
Gain (loss) on cash flow hedge | 28 | — | (215 | ) | — | ||||||||||
Tax (provision) benefit | (10 | ) | — | 75 | — | ||||||||||
Other comprehensive income, net of tax | $ | 127 | $ | (352 | ) | $ | 471 | $ | 1,148 | ||||||
Total comprehensive income | $ | 1,988 | $ | 2,254 | $ | 6,544 | $ | 7,019 |
Shares | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income, net of tax | Unearned ESOP Shares | Total Stockholders’ Equity | ||||||||||||||||||||
Balances at December 31, 2015 | 13,768,814 | $ | 138 | $ | 136,338 | $ | 42,892 | $ | (1,077 | ) | $ | (7,618 | ) | $ | 170,673 | |||||||||||
Net income | — | — | — | 5,871 | — | — | 5,871 | |||||||||||||||||||
Other comprehensive income | — | — | — | — | 1,148 | — | 1,148 | |||||||||||||||||||
Exercise of stock options | 63,173 | 1 | 317 | — | — | — | 318 | |||||||||||||||||||
Issuance of common stock - restricted stock awards | 8,752 | — | (74 | ) | — | — | — | (74 | ) | |||||||||||||||||
Compensation related to stock options and restricted stock awards | — | — | 505 | — | — | — | 505 | |||||||||||||||||||
Allocation of 84,639 ESOP shares | — | — | 298 | — | — | 847 | 1,145 | |||||||||||||||||||
Repurchase and retirement of common stock | (1,868,112 | ) | (19 | ) | (26,319 | ) | — | — | — | (26,338 | ) | |||||||||||||||
Canceled common stock - restricted stock awards | (74,478 | ) | (1 | ) | 1 | — | — | — | — | |||||||||||||||||
Cash dividend declared and paid ($0.18 per share) | — | — | — | (2,194 | ) | — | — | (2,194 | ) | |||||||||||||||||
Balances at September 30, 2016 | 11,898,149 | $ | 119 | $ | 111,066 | $ | 46,569 | $ | 71 | $ | (6,771 | ) | $ | 151,054 |
Shares | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income, net of tax | Unearned ESOP Shares | Total Stockholders' Equity | ||||||||||||||||||||
Balances at December 31, 2016 | 10,938,251 | $ | 109 | $ | 96,852 | $ | 48,981 | $ | (1,328 | ) | $ | (6,489 | ) | $ | 138,125 | |||||||||||
Net income | — | — | — | 6,073 | — | — | 6,073 | |||||||||||||||||||
Other comprehensive income | — | — | — | — | 471 | — | 471 | |||||||||||||||||||
Exercise of stock options | 134,880 | 2 | 1,307 | — | — | — | 1,309 | |||||||||||||||||||
Issuance of common stock - restricted stock awards, net | 3,984 | — | (105 | ) | — | — | — | (105 | ) | |||||||||||||||||
Compensation related to stock options and restricted stock awards | — | — | 505 | — | — | — | 505 | |||||||||||||||||||
Allocation of 84,642 ESOP shares | — | — | 625 | — | — | 846 | 1,471 | |||||||||||||||||||
Repurchase and retirement of common stock | (313,200 | ) | (3 | ) | (5,016 | ) | — | — | — | (5,019 | ) | |||||||||||||||
Cash dividend declared and paid ($0.20 per share) | — | — | — | (2,070 | ) | — | — | (2,070 | ) | |||||||||||||||||
Balances at September 30, 2017 | 10,763,915 | $ | 108 | $ | 94,168 | $ | 52,984 | $ | (857 | ) | $ | (5,643 | ) | $ | 140,760 |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 6,073 | $ | 5,871 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for loan losses | 800 | 1,400 | |||||
OREO market value adjustments | 50 | 257 | |||||
(Gain) loss on sale of OREO property, net | (5 | ) | 87 | ||||
Gain on sale of investments available-for-sale | (103 | ) | (33 | ) | |||
Loss on sale of premises and equipment | 65 | — | |||||
Depreciation of premises and equipment | 883 | 797 | |||||
Amortization of premiums and discounts on investments available-for-sale, net | 500 | 726 | |||||
Deferred federal income taxes | 507 | 884 | |||||
Allocation of ESOP shares | 1,471 | 1,145 | |||||
Stock compensation expense | 505 | 505 | |||||
Increase in cash surrender value of BOLI | (490 | ) | (641 | ) | |||
Changes in operating assets and liabilities: | |||||||
Increase in prepaid expenses and other assets | (840 | ) | (128 | ) | |||
Net (decrease) increase in advance payments from borrowers for taxes and insurance | 2,008 | 1,958 | |||||
Increase in accrued interest receivable | (562 | ) | (410 | ) | |||
Increase (decrease) in accrued interest payable | 49 | (19 | ) | ||||
Increase (decrease) in other liabilities | 3,038 | (299 | ) | ||||
Net cash provided by operating activities | 13,949 | 12,100 | |||||
Cash flows from investing activities: | |||||||
Proceeds from sales of OREO properties | 461 | 988 | |||||
Proceeds from calls and sales of investments available-for-sale | 7,494 | 24,921 | |||||
Principal repayments on investments available-for-sale | 7,980 | 12,375 | |||||
Purchases of investments available-for-sale | (23,518 | ) | (40,522 | ) | |||
Net increase in loans receivable | (117,619 | ) | (162,258 | ) | |||
Purchase of FHLB stock | (871 | ) | (3,894 | ) | |||
Purchase of premises and equipment | (2,399 | ) | (1,386 | ) | |||
Proceeds from sale or disposal of premises and equipment, net | 7 | — | |||||
Surrender of BOLI | — | 10,182 | |||||
Purchase of BOLI | (4,251 | ) | (10,182 | ) | |||
Net cash received from acquisition of branches | 71,568 | — | |||||
Net cash used by investing activities | (61,148 | ) | (169,776 | ) | |||
Continued | |||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Cash flows from financing activities: | |||||||
Net increase in deposits | $ | 23,735 | $ | 16,764 | |||
Advances from the FHLB | 40,000 | 335,000 | |||||
Repayments of advances from the FHLB | (20,000 | ) | (239,000 | ) | |||
Proceeds from stock options exercises | 1,309 | 318 | |||||
Net share settlement of stock awards | (105 | ) | (74 | ) | |||
Repurchase and retirement of common stock | (5,019 | ) | (26,338 | ) | |||
Dividends paid | (2,070 | ) | (2,194 | ) | |||
Net cash provided by financing activities | 37,850 | 84,476 | |||||
Net decrease in cash and cash equivalents | (9,349 | ) | (73,200 | ) | |||
Cash and cash equivalents at beginning of period | 31,352 | 105,711 | |||||
Cash and cash equivalents at end of period | $ | 22,003 | $ | 32,511 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid during the period for: | |||||||
Interest paid | $ | 7,061 | $ | 5,421 | |||
Federal income taxes paid | 2,810 | 2,025 | |||||
Assets acquired in acquisition of branches | 72,239 | — | |||||
Liabilities assumed in acquisition of branches | 74,657 | — | |||||
Noncash items: | |||||||
Change in unrealized loss on investments available-for-sale | $ | 940 | $ | 1,767 | |||
Change in gain on cash flow hedge | $ | (215 | ) | $ | — |
September 30, 2017 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(In thousands) | |||||||||||||||
Mortgage-backed investments: | |||||||||||||||
Fannie Mae | $ | 47,118 | $ | 133 | $ | (590 | ) | $ | 46,661 | ||||||
Freddie Mac | 15,048 | 86 | (45 | ) | 15,089 | ||||||||||
Ginnie Mae | 19,994 | 27 | (602 | ) | 19,419 | ||||||||||
Municipal bonds | 13,987 | 265 | (25 | ) | 14,227 | ||||||||||
U.S. Government agencies | 19,849 | 108 | (165 | ) | 19,792 | ||||||||||
Corporate bonds | 22,503 | 545 | (389 | ) | 22,659 | ||||||||||
Total | $ | 138,499 | $ | 1,164 | $ | (1,816 | ) | $ | 137,847 |
December 31, 2016 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(In thousands) | |||||||||||||||
Mortgage-backed investments: | |||||||||||||||
Fannie Mae | $ | 42,060 | $ | 126 | $ | (854 | ) | $ | 41,332 | ||||||
Freddie Mac | 18,013 | 95 | (99 | ) | 18,009 | ||||||||||
Ginnie Mae | 19,133 | 41 | (540 | ) | 18,634 | ||||||||||
Municipal bonds | 13,203 | 11 | (107 | ) | 13,107 | ||||||||||
U.S. Government agencies | 15,937 | 75 | (155 | ) | 15,857 | ||||||||||
Corporate bonds | 22,506 | 241 | (426 | ) | 22,321 | ||||||||||
Total | $ | 130,852 | $ | 589 | $ | (2,181 | ) | $ | 129,260 |
September 30, 2017 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||
Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Mortgage-backed investments: | |||||||||||||||||||||||
Fannie Mae | $ | 27,950 | $ | (160 | ) | $ | 8,568 | $ | (430 | ) | $ | 36,518 | $ | (590 | ) | ||||||||
Freddie Mac | 6,293 | (45 | ) | — | — | 6,293 | (45 | ) | |||||||||||||||
Ginnie Mae | 1,847 | (33 | ) | 14,444 | (569 | ) | 16,291 | (602 | ) | ||||||||||||||
Municipal bonds | 1,381 | (12 | ) | 433 | (13 | ) | 1,814 | (25 | ) | ||||||||||||||
U.S. Government agencies | 12,127 | (92 | ) | 1,829 | (73 | ) | 13,956 | (165 | ) | ||||||||||||||
Corporate bonds | 1,500 | — | 7,110 | (389 | ) | 8,610 | (389 | ) | |||||||||||||||
Total | $ | 51,098 | $ | (342 | ) | $ | 32,384 | $ | (1,474 | ) | $ | 83,482 | $ | (1,816 | ) |
December 31, 2016 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||
Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Mortgage-backed investments: | |||||||||||||||||||||||
Fannie Mae | $ | 34,763 | $ | (854 | ) | $ | — | $ | — | $ | 34,763 | $ | (854 | ) | |||||||||
Freddie Mac | 8,343 | (99 | ) | — | — | 8,343 | (99 | ) | |||||||||||||||
Ginnie Mae | 16,734 | (540 | ) | — | — | 16,734 | (540 | ) | |||||||||||||||
Municipal bonds | 8,815 | (107 | ) | — | — | 8,815 | (107 | ) | |||||||||||||||
U.S. Government agencies | 9,000 | (153 | ) | 1,426 | (2 | ) | 10,426 | (155 | ) | ||||||||||||||
Corporate bonds | 3,880 | (119 | ) | 4,693 | (307 | ) | 8,573 | (426 | ) | ||||||||||||||
Total | $ | 81,535 | $ | (1,872 | ) | $ | 6,119 | $ | (309 | ) | $ | 87,654 | $ | (2,181 | ) |
September 30, 2017 | |||||||
Amortized Cost | Fair Value | ||||||
(In thousands) | |||||||
Due within one year | $ | 6,562 | $ | 6,572 | |||
Due after one year through five years | 3,953 | 3,963 | |||||
Due after five years through ten years | 23,068 | 23,175 | |||||
Due after ten years | 22,756 | 22,968 | |||||
56,339 | 56,678 | ||||||
Mortgage-backed investments | 82,160 | 81,169 | |||||
Total | $ | 138,499 | $ | 137,847 |
September 30, 2017 | December 31, 2016 | ||||||
(In thousands) | |||||||
One-to-four family residential: | |||||||
Permanent owner occupied | $ | 139,736 | $ | 137,834 | |||
Permanent non-owner occupied | 126,711 | 111,601 | |||||
266,447 | 249,435 | ||||||
Multifamily | 173,681 | 123,250 | |||||
Commercial real estate | 320,416 | 303,694 | |||||
Construction/land: | |||||||
One-to-four family residential | 85,593 | 67,842 | |||||
Multifamily | 115,345 | 111,051 | |||||
Commercial | 5,325 | — | |||||
Land | 38,423 | 30,055 | |||||
244,686 | 208,948 | ||||||
Business | 22,243 | 7,938 | |||||
Consumer | 9,301 | 6,922 | |||||
Total loans | 1,036,774 | 900,187 | |||||
Less: | |||||||
Loans in process ("LIP") | 91,316 | 72,026 | |||||
Deferred loan fees, net | 1,486 | 2,167 | |||||
Allowance for loan and lease losses ("ALLL") | 12,110 | 10,951 | |||||
Loans receivable, net | $ | 931,862 | $ | 815,043 |
At or For the Three Months Ended September 30, 2017 | |||||||||||||||||||||||||||
One-to-Four Family Residential | Multifamily | Commercial Real Estate | Construction/ Land | Business | Consumer | Total | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
ALLL: | |||||||||||||||||||||||||||
Beginning balance | $ | 2,627 | $ | 1,231 | $ | 3,733 | $ | 2,942 | $ | 457 | $ | 295 | $ | 11,285 | |||||||||||||
Charge-offs | — | — | — | — | — | — | — | ||||||||||||||||||||
Recoveries | 247 | — | 78 | — | — | — | 325 | ||||||||||||||||||||
Provision (recapture) | (157 | ) | 472 | (68 | ) | 40 | 211 | 2 | 500 | ||||||||||||||||||
Ending balance | $ | 2,717 | $ | 1,703 | $ | 3,743 | $ | 2,982 | $ | 668 | $ | 297 | $ | 12,110 | |||||||||||||
At or For the Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||||
One-to-Four Family Residential | Multifamily | Commercial Real Estate | Construction/ Land | Business | Consumer | Total | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
ALLL: | |||||||||||||||||||||||||||
Beginning balance | $ | 2,551 | $ | 1,199 | $ | 3,893 | $ | 2,792 | $ | 237 | $ | 279 | $ | 10,951 | |||||||||||||
Charge-offs | — | — | — | — | — | — | — | ||||||||||||||||||||
Recoveries | 280 | — | 78 | — | — | 1 | 359 | ||||||||||||||||||||
Provision (recapture) | (114 | ) | 504 | (228 | ) | 190 | 431 | 17 | 800 | ||||||||||||||||||
Ending balance | $ | 2,717 | $ | 1,703 | $ | 3,743 | $ | 2,982 | $ | 668 | $ | 297 | $ | 12,110 | |||||||||||||
ALLL by category: | |||||||||||||||||||||||||||
General reserve | $ | 2,582 | $ | 1,703 | $ | 3,723 | $ | 2,982 | $ | 668 | $ | 297 | $ | 11,955 | |||||||||||||
Specific reserve | 135 | — | 20 | — | — | — | 155 | ||||||||||||||||||||
Loans: (1) | |||||||||||||||||||||||||||
Total loans | $ | 266,447 | $ | 173,681 | $ | 319,872 | $ | 153,914 | $ | 22,243 | $ | 9,301 | $ | 945,458 | |||||||||||||
Loans collectively evaluated for impairment (2) | 251,141 | 172,541 | 316,656 | 153,914 | 22,243 | 9,205 | 925,700 | ||||||||||||||||||||
Loans individually evaluated for impairment (3) | 15,306 | 1,140 | 3,216 | — | — | 96 | 19,758 |
At or For the Three Months Ended September 30, 2016 | |||||||||||||||||||||||||||
One-to-Four Family Residential | Multifamily | Commercial Real Estate | Construction/ Land | Business | Consumer | Total | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
ALLL: | |||||||||||||||||||||||||||
Beginning balance | $ | 2,747 | $ | 1,194 | $ | 3,771 | $ | 1,880 | $ | 217 | $ | 325 | $ | 10,134 | |||||||||||||
Charge-offs | — | — | — | — | — | (28 | ) | (28 | ) | ||||||||||||||||||
Recoveries | — | — | — | — | — | — | — | ||||||||||||||||||||
Provision (recapture) | (60 | ) | (215 | ) | 486 | 678 | 25 | (14 | ) | 900 | |||||||||||||||||
Ending balance | $ | 2,687 | $ | 979 | $ | 4,257 | $ | 2,558 | $ | 242 | $ | 283 | $ | 11,006 | |||||||||||||
At or For the Nine Months Ended September 30, 2016 | |||||||||||||||||||||||||||
One-to-Four Family Residential | Multifamily | Commercial Real Estate | Construction/ Land | Business | Consumer | Total | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
ALLL: | |||||||||||||||||||||||||||
Beginning balance | $ | 3,028 | $ | 1,193 | $ | 3,395 | $ | 1,193 | $ | 229 | $ | 425 | $ | 9,463 | |||||||||||||
Charge-offs | — | — | — | — | — | (47 | ) | (47 | ) | ||||||||||||||||||
Recoveries | 84 | — | 104 | — | — | 2 | 190 | ||||||||||||||||||||
Provision (recapture) | (425 | ) | (214 | ) | 758 | 1,365 | 13 | (97 | ) | 1,400 | |||||||||||||||||
Ending balance | $ | 2,687 | $ | 979 | $ | 4,257 | $ | 2,558 | $ | 242 | $ | 283 | $ | 11,006 | |||||||||||||
ALLL by category: | |||||||||||||||||||||||||||
General reserve | $ | 2,369 | $ | 979 | $ | 4,150 | $ | 2,477 | $ | 242 | $ | 283 | $ | 10,500 | |||||||||||||
Specific reserve | 318 | — | 107 | 81 | — | — | 506 | ||||||||||||||||||||
Loans: (1) | |||||||||||||||||||||||||||
Total loans | $ | 255,905 | $ | 135,414 | $ | 329,204 | $ | 124,134 | $ | 8,023 | $ | 6,530 | $ | 859,206 | |||||||||||||
Loans collectively evaluated for impairment (2) | 227,650 | 133,839 | 324,782 | 123,638 | 8,023 | 6,400 | 824,332 | ||||||||||||||||||||
Loans individually evaluated for impairment (3) | 28,255 | 1,575 | 4,422 | 496 | — | 130 | 34,874 |
Loans Past Due as of September 30, 2017 | |||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days and Greater | Total Past Due | Current | Total (1) (2) | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
One-to-four family residential: | |||||||||||||||||||||||
Owner occupied | $ | 84 | $ | — | $ | — | $ | 84 | $ | 139,652 | $ | 139,736 | |||||||||||
Non-owner occupied | — | — | — | — | 126,711 | 126,711 | |||||||||||||||||
Multifamily | — | — | — | — | 173,681 | 173,681 | |||||||||||||||||
Commercial real estate | — | — | — | — | 319,872 | 319,872 | |||||||||||||||||
Construction/land | — | — | — | — | 153,914 | 153,914 | |||||||||||||||||
Total real estate | 84 | — | — | 84 | 913,830 | 913,914 | |||||||||||||||||
Business | — | — | — | — | 22,243 | 22,243 | |||||||||||||||||
Consumer | — | — | — | — | 9,301 | 9,301 | |||||||||||||||||
Total loans | $ | 84 | $ | — | $ | — | $ | 84 | $ | 945,374 | $ | 945,458 |
Loans Past Due as of December 31, 2016 | |||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days and Greater | Total Past Due | Current | Total (1) (2) | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
One-to-four family residential: | |||||||||||||||||||||||
Owner occupied | $ | 304 | $ | — | $ | 169 | $ | 473 | $ | 137,361 | $ | 137,834 | |||||||||||
Non-owner occupied | — | — | — | — | 111,601 | 111,601 | |||||||||||||||||
Multifamily | — | — | — | — | 123,250 | 123,250 | |||||||||||||||||
Commercial real estate | — | — | — | — | 303,694 | 303,694 | |||||||||||||||||
Construction/land | — | — | — | — | 136,922 | 136,922 | |||||||||||||||||
Total real estate | 304 | — | 169 | 473 | 812,828 | 813,301 | |||||||||||||||||
Business | — | — | — | — | 7,938 | 7,938 | |||||||||||||||||
Consumer | — | — | — | — | 6,922 | 6,922 | |||||||||||||||||
Total loans | $ | 304 | $ | — | $ | 169 | $ | 473 | $ | 827,688 | $ | 828,161 |
September 30, 2017 | December 31, 2016 | ||||||
(In thousands) | |||||||
One-to-four family residential | $ | 132 | $ | 798 | |||
Consumer | 53 | 60 | |||||
Total nonaccrual loans | $ | 185 | $ | 858 |
September 30, 2017 | |||||||||||||||||||||||||||
One-to-Four Family Residential | Multifamily | Commercial Real Estate | Construction / Land | Business | Consumer | Total (1) | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Performing (2) | $ | 266,315 | $ | 173,681 | $ | 319,872 | $ | 153,914 | $ | 22,243 | $ | 9,248 | $ | 945,273 | |||||||||||||
Nonperforming (3) | 132 | — | — | — | — | 53 | 185 | ||||||||||||||||||||
Total loans | $ | 266,447 | $ | 173,681 | $ | 319,872 | $ | 153,914 | $ | 22,243 | $ | 9,301 | $ | 945,458 |
(1) | Net of LIP. |
(2) | There were $139.6 million of owner-occupied one-to-four family residential loans and $126.7 million of non-owner occupied one-to-four family residential loans classified as performing. |
(3) | The $132,000 of one-to-four family residential loans classified as nonperforming are all owner-occupied. |
December 31, 2016 | |||||||||||||||||||||||||||
One-to-Four Family Residential | Multifamily | Commercial Real Estate | Construction/ Land | Business | Consumer | Total (1) | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Performing (2) | $ | 248,637 | $ | 123,250 | $ | 303,694 | $ | 136,922 | $ | 7,938 | $ | 6,862 | $ | 827,303 | |||||||||||||
Nonperforming (3) | 798 | — | — | — | — | 60 | 858 | ||||||||||||||||||||
Total loans | $ | 249,435 | $ | 123,250 | $ | 303,694 | $ | 136,922 | $ | 7,938 | $ | 6,922 | $ | 828,161 |
September 30, 2017 | |||||||||||
Recorded Investment (1) | Unpaid Principal Balance (2) | Related Allowance | |||||||||
(In thousands) | |||||||||||
Loans with no related allowance: | |||||||||||
One-to-four family residential: | |||||||||||
Owner occupied | $ | 1,334 | $ | 1,527 | $ | — | |||||
Non-owner occupied | 10,125 | 10,125 | — | ||||||||
Multifamily | 1,140 | 1,140 | — | ||||||||
Commercial real estate | 2,473 | 2,473 | — | ||||||||
Consumer | 96 | 144 | — | ||||||||
Total | 15,168 | 15,409 | — | ||||||||
Loans with an allowance: | |||||||||||
One-to-four family residential: | |||||||||||
Owner occupied | 524 | 570 | 8 | ||||||||
Non-owner occupied | 3,323 | 3,345 | 127 | ||||||||
Commercial real estate | 743 | 743 | 20 | ||||||||
Total | 4,590 | 4,658 | 155 | ||||||||
Total impaired loans: | |||||||||||
One-to-four family residential: | |||||||||||
Owner occupied | 1,858 | 2,097 | 8 | ||||||||
Non-owner occupied | 13,448 | 13,470 | 127 | ||||||||
Multifamily | 1,140 | 1,140 | — | ||||||||
Commercial real estate | 3,216 | 3,216 | 20 | ||||||||
Consumer | 96 | 144 | — | ||||||||
Total | $ | 19,758 | $ | 20,067 | $ | 155 |
December 31, 2016 | |||||||||||
Recorded Investment (1) | Unpaid Principal Balance (2) | Related Allowance | |||||||||
(In thousands) | |||||||||||
Loans with no related allowance: | |||||||||||
One-to-four family residential: | |||||||||||
Owner occupied | $ | 2,216 | $ | 2,475 | $ | — | |||||
Non-owner occupied | 16,634 | 16,652 | — | ||||||||
Multifamily | 1,564 | 1,564 | — | ||||||||
Commercial real estate | 2,952 | 3,029 | — | ||||||||
Consumer | 103 | 223 | — | ||||||||
Total | 23,469 | 23,943 | — | ||||||||
Loans with an allowance: | |||||||||||
One-to-four family residential: | |||||||||||
Owner occupied | 1,896 | 1,965 | 51 | ||||||||
Non-owner occupied | 4,326 | 4,347 | 151 | ||||||||
Commercial real estate | 755 | 755 | 26 | ||||||||
Construction/land | 495 | 495 | 81 | ||||||||
Total | 7,472 | 7,562 | 309 | ||||||||
Total impaired loans: | |||||||||||
One-to-four family residential: | |||||||||||
Owner occupied | 4,112 | 4,440 | 51 | ||||||||
Non-owner occupied | 20,960 | 20,999 | 151 | ||||||||
Multifamily | 1,564 | 1,564 | — | ||||||||
Commercial real estate | 3,707 | 3,784 | 26 | ||||||||
Construction/land | 495 | 495 | 81 | ||||||||
Consumer | 103 | 223 | — | ||||||||
Total | $ | 30,941 | $ | 31,505 | $ | 309 |
Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | ||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||
(In thousands) | |||||||||||||||
Loans with no related allowance: | |||||||||||||||
One-to-four family residential: | |||||||||||||||
Owner occupied | $ | 1,658 | $ | 22 | $ | 1,886 | $ | 69 | |||||||
Non-owner occupied | 11,395 | 158 | 13,445 | 485 | |||||||||||
Multifamily | 1,143 | 19 | 1,251 | 56 | |||||||||||
Commercial real estate | 2,693 | 49 | 2,818 | 135 | |||||||||||
Consumer | 97 | 2 | 99 | 6 | |||||||||||
Total | 16,986 | 250 | 19,499 | 751 | |||||||||||
Loans with an allowance: | |||||||||||||||
One-to-four family residential: | |||||||||||||||
Owner occupied | 1,099 | 10 | 1,495 | 22 | |||||||||||
Non-owner occupied | 3,343 | 47 | 3,773 | 128 | |||||||||||
Commercial real estate | 745 | 10 | 749 | 31 | |||||||||||
Construction/land | — | — | 124 | — | |||||||||||
Total | 5,187 | 67 | 6,141 | 181 | |||||||||||
Total impaired loans: | |||||||||||||||
One-to-four family residential: | |||||||||||||||
Owner occupied | 2,757 | 32 | 3,381 | 91 | |||||||||||
Non-owner occupied | 14,738 | 205 | 17,218 | 613 | |||||||||||
Multifamily | 1,143 | 19 | 1,251 | 56 | |||||||||||
Commercial real estate | 3,438 | 59 | 3,567 | 166 | |||||||||||
Construction/land | — | — | 124 | — | |||||||||||
Consumer | 97 | 2 | 99 | 6 | |||||||||||
Total | $ | 22,173 | $ | 317 | $ | 25,640 | $ | 932 |
Three Months Ended September 30, 2016 | Nine Months Ended September 30, 2016 | ||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||
(In thousands) | |||||||||||||||
Loans with no related allowance: | |||||||||||||||
One-to-four family residential: | |||||||||||||||
Owner occupied | $ | 2,434 | $ | 57 | $ | 2,679 | $ | 123 | |||||||
Non-owner occupied | 20,208 | 296 | 21,234 | 878 | |||||||||||
Multifamily | 1,576 | 26 | 1,189 | 79 | |||||||||||
Commercial real estate | 1,796 | 31 | 2,089 | 77 | |||||||||||
Consumer | 119 | 3 | 123 | 8 | |||||||||||
Total | 26,133 | 413 | 27,314 | 1,165 | |||||||||||
Loans with an allowance: | |||||||||||||||
One-to-four family residential: | |||||||||||||||
Owner occupied | 2,003 | 28 | 2,042 | 78 | |||||||||||
Non-owner occupied | 5,050 | 76 | 5,874 | 202 | |||||||||||
Multifamily | — | — | 393 | — | |||||||||||
Commercial real estate | 2,638 | 52 | 2,499 | 152 | |||||||||||
Construction/land | 495 | 5 | 495 | 14 | |||||||||||
Consumer | — | — | 25 | — | |||||||||||
Total | 10,186 | 161 | 11,328 | 446 | |||||||||||
Total impaired loans: | |||||||||||||||
One-to-four family residential: | |||||||||||||||
Owner occupied | 4,437 | 85 | 4,721 | 201 | |||||||||||
Non-owner occupied | 25,258 | 372 | 27,108 | 1,080 | |||||||||||
Multifamily | 1,576 | 26 | 1,582 | 79 | |||||||||||
Commercial real estate | 4,434 | 83 | 4,588 | 229 | |||||||||||
Construction/land | 495 | 5 | 495 | 14 | |||||||||||
Consumer | 119 | 3 | 148 | 8 | |||||||||||
Total | $ | 36,319 | $ | 574 | $ | 38,642 | $ | 1,611 |
Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | ||||||||||||||||||||
Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
One-to-four family residential: | |||||||||||||||||||||
Principal and interest with interest rate concession and advancement of maturity date | 1 | $ | 524 | $ | 524 | 8 | $ | 2,492 | $ | 2,492 | |||||||||||
Total | 1 | $ | 524 | $ | 524 | 8 | $ | 2,492 | $ | 2,492 |
Three Months Ended September 30, 2016 | Nine Months Ended September 30, 2016 | ||||||||||||||||||||
Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
One-to-four family residential: | |||||||||||||||||||||
Principal and interest with interest rate concession | 1 | $ | 316 | $ | 316 | 15 | $ | 3,490 | $ | 3,490 | |||||||||||
Advancement of maturity date | 5 | 1,119 | 1,119 | 5 | 1,119 | 1,119 | |||||||||||||||
Commercial real estate: | |||||||||||||||||||||
Interest-only payments with interest rate concession and advancement of maturity date | — | — | — | 1 | 495 | 495 | |||||||||||||||
Advancement of maturity date | 1 | 434 | 434 | 1 | 434 | 434 | |||||||||||||||
Total | 7 | $ | 1,869 | $ | 1,869 | 22 | $ | 5,538 | $ | 5,538 |
September 30, 2017 | |||||||||||||||||||||||||||
One-to-Four Family Residential | Multifamily | Commercial Real Estate | Construction/ Land | Business | Consumer | Total (1) | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||
Pass | $ | 262,951 | $ | 173,681 | $ | 317,396 | $ | 153,914 | $ | 22,243 | $ | 9,060 | $ | 939,245 | |||||||||||||
Special mention | 2,817 | — | 2,476 | — | — | 188 | 5,481 | ||||||||||||||||||||
Substandard | 679 | — | — | — | — | 53 | 732 | ||||||||||||||||||||
Total loans | $ | 266,447 | $ | 173,681 | $ | 319,872 | $ | 153,914 | $ | 22,243 | $ | 9,301 | $ | 945,458 |
December 31, 2016 | |||||||||||||||||||||||||||
One-to-Four Family Residential | Multifamily | Commercial Real Estate | Construction / Land | Business | Consumer | Total (1) | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||
Pass | $ | 245,237 | $ | 123,250 | $ | 300,655 | $ | 136,427 | $ | 7,938 | $ | 6,674 | $ | 820,181 | |||||||||||||
Special mention | 2,847 | — | 3,039 | — | — | 188 | 6,074 | ||||||||||||||||||||
Substandard | 1,351 | — | — | 495 | — | 60 | 1,906 | ||||||||||||||||||||
Total loans | $ | 249,435 | $ | 123,250 | $ | 303,694 | $ | 136,922 | $ | 7,938 | $ | 6,922 | $ | 828,161 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(In thousands) | |||||||||||||||
Balance at beginning of period | $ | 1,825 | $ | 2,331 | $ | 2,331 | $ | 3,663 | |||||||
Gross proceeds from sale of OREO | — | — | (461 | ) | (988 | ) | |||||||||
Gain on sale of OREO | — | — | 5 | (87 | ) | ||||||||||
Market value adjustments | — | — | (50 | ) | (257 | ) | |||||||||
Balance at end of period | $ | 1,825 | $ | 2,331 | $ | 1,825 | $ | 2,331 |
• | Level 1 - Quoted prices for identical instruments in active markets. |
• | Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable. |
• | Level 3 - Instruments whose significant value drivers are unobservable. |
Fair Value Measurements at September 30, 2017 | |||||||||||||||
Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(In thousands) | |||||||||||||||
Investments available-for-sale: | |||||||||||||||
Mortgage-backed investments: | |||||||||||||||
Fannie Mae | $ | 46,661 | $ | — | $ | 46,661 | $ | — | |||||||
Freddie Mac | 15,089 | — | 15,089 | — | |||||||||||
Ginnie Mae | 19,419 | — | 19,419 | — | |||||||||||
Municipal bonds | 14,227 | — | 14,227 | — | |||||||||||
U.S. Government agencies | 19,792 | — | 19,792 | — | |||||||||||
Corporate bonds | 22,659 | — | 22,659 | — | |||||||||||
Total available-for-sale investments | 137,847 | — | 137,847 | — | |||||||||||
Derivative fair value asset | 1,118 | — | 1,118 | — | |||||||||||
$ | 138,965 | $ | — | $ | 138,965 | $ | — |
Fair Value Measurements at December 31, 2016 | |||||||||||||||
Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(In thousands) | |||||||||||||||
Investments available-for-sale: | |||||||||||||||
Mortgage-backed investments: | |||||||||||||||
Fannie Mae | $ | 41,332 | $ | — | $ | 41,332 | $ | — | |||||||
Freddie Mac | 18,009 | — | 18,009 | — | |||||||||||
Ginnie Mae | 18,634 | — | 18,634 | — | |||||||||||
Municipal bonds | 13,107 | — | 13,107 | — | |||||||||||
U.S. Government agencies | 15,857 | — | 15,857 | — | |||||||||||
Corporate bonds | 22,321 | — | 22,321 | — | |||||||||||
Total available-for-sale investments | 129,260 | — | 129,260 | — | |||||||||||
Derivative fair value asset | 1,333 | — | 1,333 | — | |||||||||||
$ | 130,593 | $ | — | $ | 130,593 | $ | — |
Fair Value Measurements at September 30, 2017 | |||||||||||||||
Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(In thousands) | |||||||||||||||
Impaired loans (included in loans receivable, net) (1) | $ | 19,603 | $ | — | $ | — | $ | 19,603 | |||||||
OREO | 1,825 | — | — | 1,825 | |||||||||||
Total | $ | 21,428 | $ | — | $ | — | $ | 21,428 |
(1) | Total fair value of impaired loans is net of $155,000 of specific reserves on performing TDRs. |
Fair Value Measurements at December 31, 2016 | |||||||||||||||
Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(In thousands) | |||||||||||||||
Impaired loans (included in loans receivable, net) (1) | $ | 30,632 | $ | — | $ | — | $ | 30,632 | |||||||
OREO | 2,331 | — | — | 2,331 | |||||||||||
Total | $ | 32,963 | $ | — | $ | — | $ | 32,963 |
September 30, 2017 | |||||||||
Fair Value | Valuation Technique | Unobservable Input(s) | Range (Weighted Average) | ||||||
(Dollars in thousands) | |||||||||
Impaired Loans | $ | 19,603 | Market approach | Appraised value discounted by market or borrower conditions | 0.0% (0.0%) | ||||
OREO | $ | 1,825 | Market approach | Appraised value less selling costs | 0.0% (0.0%) |
December 31, 2016 | |||||||||
Fair Value | Valuation Technique | Unobservable Input(s) | Range (Weighted Average) | ||||||
(Dollars in thousands) | |||||||||
Impaired Loans | $ | 30,632 | Market approach | Appraised value discounted by market or borrower conditions | 0.0% (0.0%) | ||||
OREO | $ | 2,331 | Market approach | Appraised value less selling costs | 0.0% (0.0%) |
September 30, 2017 | |||||||||||||||||||
Estimated | Fair Value Measurements Using: | ||||||||||||||||||
Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
(In thousands) | |||||||||||||||||||
Financial Assets: | |||||||||||||||||||
Cash on hand and in banks | $ | 7,910 | $ | 7,910 | $ | 7,910 | $ | — | $ | — | |||||||||
Interest-earning deposits with banks | 14,093 | 14,093 | 14,093 | — | — | ||||||||||||||
Investments available-for-sale | 137,847 | 137,847 | — | 137,847 | — | ||||||||||||||
Loans receivable, net | 931,862 | 930,838 | — | — | 930,838 | ||||||||||||||
FHLB stock | 8,902 | 8,902 | — | 8,902 | — | ||||||||||||||
Accrued interest receivable | 3,709 | 3,709 | — | 3,709 | — | ||||||||||||||
Derivative fair value asset | 1,118 | 1,118 | — | 1,118 | — | ||||||||||||||
Financial Liabilities: | |||||||||||||||||||
Deposits | 394,127 | 394,127 | 394,127 | — | — | ||||||||||||||
Certificates of deposit, retail | 346,125 | 345,618 | — | 345,618 | — | ||||||||||||||
Certificates of deposit, brokered | 75,488 | 75,634 | — | 75,634 | — | ||||||||||||||
Advances from the FHLB | 191,500 | 189,805 | — | 189,805 | — | ||||||||||||||
Accrued interest payable | 280 | 280 | — | 280 | — |
December 31, 2016 | |||||||||||||||||||
Estimated | Fair Value Measurements Using: | ||||||||||||||||||
Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
(In thousands) | |||||||||||||||||||
Financial Assets: | |||||||||||||||||||
Cash on hand and in banks | $ | 5,779 | $ | 5,779 | $ | 5,779 | $ | — | $ | — | |||||||||
Interest-earning deposits with banks | 25,573 | 25,573 | 25,573 | — | — | ||||||||||||||
Investments available-for-sale | 129,260 | 129,260 | — | 129,260 | — | ||||||||||||||
Loans receivable, net | 815,043 | 818,054 | — | — | 818,054 | ||||||||||||||
FHLB stock | 8,031 | 8,031 | — | 8,031 | — | ||||||||||||||
Accrued interest receivable | 3,147 | 3,147 | — | 3,147 | — | ||||||||||||||
Derivative fair value asset | 1,333 | 1,333 | — | 1,333 | — | ||||||||||||||
Financial Liabilities: | |||||||||||||||||||
Deposits | 285,335 | 285,335 | 285,335 | — | — | ||||||||||||||
Certificates of deposit, retail | 356,653 | 356,723 | — | 356,723 | — | ||||||||||||||
Certificates of deposit, brokered | 75,488 | 75,431 | — | 75,431 | — | ||||||||||||||
Advances from the FHLB | 171,500 | 170,221 | — | 170,221 | — | ||||||||||||||
Accrued interest payable | 231 | 231 | — | 231 | — |
• | Financial instruments with book value equal to fair value: The fair value of financial instruments that are short-term or reprice frequently and that have little or no risk are considered to have a fair value equal to book value. These instruments include cash on hand and in banks, interest-earning deposits with banks, FHLB stock, accrued interest receivable and accrued interest payable. FHLB stock is not publicly-traded, however it may be redeemed on a dollar-for-dollar basis, for any amount the Bank is not required to hold, subject to the FHLB’s discretion. The fair value is therefore equal to the book value. |
• | Investments available-for-sale: The fair value of all investments, excluding FHLB stock, was based upon quoted market prices for similar investments in active markets, identical or similar investments in markets that are not active and model-derived valuations whose inputs are observable. |
• | Loans receivable: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair value of fixed-rate loans is estimated using discounted cash flow analysis, utilizing interest rates that would be offered for loans with similar terms to borrowers of similar credit quality. As a result of current market conditions, cash flow estimates have been further discounted to include a credit factor. The fair value of nonperforming loans is estimated using the fair value of the underlying collateral. |
• | Derivatives: The fair value of derivatives is based on dealer quotes, pricing models, discounted cash flow methodologies or similar techniques for which the determination of fair value may require significant management judgment or estimation. |
• | Liabilities: The fair value of deposits with no stated maturity, such as statement savings, interest-bearing checking and money market accounts, is equal to the amount payable on demand. The fair value of certificates of deposit is based on the discounted value of contractual cash flows using current interest rates for certificates of deposit with similar remaining maturities. The fair value of FHLB advances is estimated based on discounting the future cash flows using current interest rates for debt with similar remaining maturities. |
• | Off balance sheet commitments: No fair value adjustment is necessary for commitments made to extend credit, which represents commitments for loan originations or for outstanding commitments to purchase loans. These commitments |
Balance Sheet Location | Fair Value at September 30, 2017 | Fair Value at December 31, 2016 | |||||||
(In thousands) | |||||||||
Interest rate swap on FHLB debt designated as cash flow hedge | Other Assets | $ | 1,118 | $ | 1,333 | ||||
Total derivatives | $ | 1,118 | $ | 1,333 |
Balance Sheet Location | Amount Recognized in OCI at September 30, 2017 | Amount Recognized in OCI at December 31, 2016 | |||||||
(In thousands) | |||||||||
Interest rate swap on FHLB debt designated as cash flow hedge | Other assets | $ | 726 | $ | 866 |
For the Three Months Ended September 30, 2017 | ||||||||||||
Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term in Years | Aggregate Intrinsic Value | |||||||||
Outstanding at July 1, 2017 | 487,940 | $ | 10.29 | $ | 2,851,319 | |||||||
Granted | — | |||||||||||
Exercised | (19,000 | ) | 9.23 | |||||||||
Forfeited or expired | (16,000 | ) | 13.80 | |||||||||
Outstanding at September 30, 2017 | 452,940 | 10.21 | 4.73 | 3,072,447 | ||||||||
Vested and expected to vest assuming a 3% forfeiture rate over the vesting term | 449,880 | 10.20 | 4.72 | 3,054,835 | ||||||||
Exercisable at September 30, 2017 | 350,940 | 9.91 | 4.11 | 2,485,367 | ||||||||
For the Nine Months Ended September 30, 2017 | ||||||||||||
Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term in Years | Aggregate Intrinsic Value | |||||||||
Outstanding at January 1, 2017 | 603,820 | $ | 10.19 | $ | 5,766,947 | |||||||
Granted | — | |||||||||||
Exercised | (134,880 | ) | 9.70 | |||||||||
Forfeited or expired | (16,000 | ) | 13.80 | |||||||||
Outstanding at September 30, 2017 | 452,940 | 10.21 | 4.73 | 3,072,447 | ||||||||
Vested and expected to vest assuming a 3% forfeiture rate over the vesting term | 449,880 | 10.20 | 4.72 | 3,054,835 | ||||||||
Exercisable at September 30, 2017 | 350,940 | 9.91 | 4.11 | 2,485,367 |
For the Three Months Ended September 30, 2017 | ||||||
Shares | Weighted-Average Grant Date Fair Value | |||||
Nonvested at July 1, 2017 | 26,400 | $ | 9.13 | |||
Vested | (15,000 | ) | 8.97 | |||
Nonvested at September 30, 2017 | 11,400 | 9.34 | ||||
Expected to vest assuming a 3% forfeiture rate over the vesting term | 11,058 | |||||
For the Nine Months Ended September 30, 2017 | ||||||
Shares | Weighted-Average Grant Date Fair Value | |||||
Nonvested at January 1, 2017 | 26,400 | $ | 9.13 | |||
Granted | 10,434 | |||||
Vested | (25,434 | ) | 9.75 | |||
Nonvested at September 30, 2017 | 11,400 | 9.34 | ||||
Expected to vest assuming a 3% forfeiture rate over the vesting term | 11,058 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(Dollars in thousands, except share data) | ||||||||||||||||
Net income | $ | 1,861 | $ | 2,606 | $ | 6,073 | $ | 5,871 | ||||||||
Less: Earnings allocated to participating securities | (2 | ) | (7 | ) | $ | (6 | ) | $ | (16 | ) | ||||||
Earnings allocated to common shareholders | $ | 1,859 | $ | 2,599 | $ | 6,067 | $ | 5,855 | ||||||||
Basic weighted average common shares outstanding | 10,287,663 | 11,859,683 | 10,323,459 | 12,329,815 | ||||||||||||
Dilutive stock options | 126,044 | 131,919 | 142,755 | 132,711 | ||||||||||||
Dilutive restricted stock grants | 13,331 | 20,350 | 13,847 | 18,853 | ||||||||||||
Diluted weighted average common shares outstanding | 10,427,038 | 12,011,952 | 10,480,061 | 12,481,379 | ||||||||||||
Basic earnings per share | $ | 0.18 | $ | 0.22 | $ | 0.59 | $ | 0.47 | ||||||||
Diluted earnings per share | $ | 0.18 | $ | 0.22 | $ | 0.58 | $ | 0.47 |
At August 25, 2017 | ||||||||||||
Acquired Book Value | Fair Value Adjustments | Amount Recorded | ||||||||||
(In thousands) | ||||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 71,568 | $ | — | $ | 71,568 | ||||||
Premises and equipment, net | 544 | 119 | (1 | ) | 663 | |||||||
Goodwill | — | 979 | (2 | ) | 979 | |||||||
Core deposit intangible | — | 1,319 | (3 | ) | 1,319 | |||||||
Total assets acquired | $ | 72,112 | $ | 2,417 | $ | 74,529 | ||||||
Liabilities | ||||||||||||
Deposits | ||||||||||||
Noninterest-bearing deposits | $ | 11,995 | $ | — | $ | 11,995 | ||||||
Interest-bearing deposits | 62,662 | (128 | ) | (4 | ) | 62,534 | ||||||
Total deposits | 74,657 | (128 | ) | 74,529 | ||||||||
Total liabilities assumed | $ | 74,657 | $ | (128 | ) | $ | 74,529 |
At August 25, 2017 | |||
(In thousands) | |||
Purchase price | $ | 3,089 | |
Recognized amounts of identifiable assets acquired and (liabilities assumed), at fair value | |||
Cash and cash equivalents | 74,657 | ||
Premises and equipment, net | 663 | ||
Core deposit intangible | 1,319 | ||
Deposits | (74,529 | ) | |
Total fair value of identifiable net assets | 2,110 | ||
Goodwill | $ | 979 |
(In thousands) | |||
2017 | $ | 53 | |
2018 | 150 | ||
2019 | 148 | ||
2020 | 144 | ||
2021 | 140 | ||
Thereafter | 684 | ||
Total | $ | 1,319 |
(In thousands) | |||
2017 | $ | 21 | |
2018 | 49 | ||
2019 | 30 | ||
2020 | 16 | ||
2021 | 9 | ||
2022 | 3 | ||
Total | $ | 128 |
Balance at September 30, 2017 | Change from December 31, 2016 | Percent Change | ||||||||
(Dollars in thousands) | ||||||||||
Cash on hand and in banks | $ | 7,910 | $ | 2,131 | 36.9 | % | ||||
Interest-earning deposits with banks | 14,093 | (11,480 | ) | (44.9 | ) | |||||
Investments available-for-sale, at fair value | 137,847 | 8,587 | 6.6 | |||||||
Loans receivable, net | 931,862 | 116,819 | 14.3 | |||||||
Premises and equipment, net | 20,568 | 2,107 | 11.4 | |||||||
FHLB stock, at cost | 8,902 | 871 | 10.8 | |||||||
Accrued interest receivable | 3,709 | 562 | 17.9 | |||||||
Deferred tax assets, net | 2,381 | (761 | ) | (24.2 | ) | |||||
OREO | 1,825 | (506 | ) | (21.7 | ) | |||||
BOLI, net | 28,894 | 4,741 | 19.6 | |||||||
Prepaid expenses and other assets | 3,304 | 640 | 24.0 | |||||||
Goodwill | 979 | 979 | n/a | |||||||
Core deposit intangible | 1,304 | 1,304 | n/a | |||||||
Total assets | $ | 1,163,578 | $ | 125,994 | 12.1 | % |
September 30, 2017 | December 31, 2016 | ||||||
(In thousands) | |||||||
Multifamily real estate: | |||||||
Micro-unit apartments | $ | 7,053 | $ | 7,878 | |||
Other multifamily | 166,628 | 115,372 | |||||
Total multifamily real estate | 173,681 | 123,250 | |||||
Commercial real estate: | |||||||
Office | 99,350 | 101,688 | |||||
Retail | 101,787 | 106,294 | |||||
Mobile home park | 21,344 | 20,689 | |||||
Warehouse | 22,788 | 15,338 | |||||
Storage | 32,365 | 34,816 | |||||
Other non-residential | 42,782 | 24,869 | |||||
Total commercial real estate | 320,416 | 303,694 | |||||
Construction/land: | |||||||
One-to-four family residential | 85,593 | 67,842 | |||||
Multifamily | 115,345 | 111,051 | |||||
Commercial | 5,325 | — | |||||
Land | 38,423 | 30,055 | |||||
Total construction/land | 244,686 | 208,948 | |||||
Total commercial, multifamily and construction/land loans | $ | 738,783 | $ | 635,892 |
At September 30, 2017 | ||||||||||||||||||||||||||||
One-to-four family residential | Multifamily | Commercial real estate | Construction/land | Business | Consumer | Total | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
King County | $ | 199,602 | $ | 94,999 | $ | 167,239 | $ | 133,561 | $ | 11,204 | $ | 7,873 | $ | 614,478 | ||||||||||||||
Pierce County | 35,748 | 14,430 | 26,330 | 6,296 | — | 410 | 83,214 | |||||||||||||||||||||
Snohomish County | 14,231 | 3,239 | 32,790 | 12,702 | 36 | 212 | 63,210 | |||||||||||||||||||||
Kitsap County | 2,308 | 1,529 | 817 | 218 | — | 78 | 4,950 | |||||||||||||||||||||
California | 2,794 | 17,860 | 17,773 | — | 2,222 | — | 40,649 | |||||||||||||||||||||
Oregon | — | 8,885 | 8,581 | — | — | — | 17,466 | |||||||||||||||||||||
Other Washington Counties | 11,184 | 24,315 | 49,886 | 1,137 | 1,351 | 728 | 88,601 | |||||||||||||||||||||
Outside Washington, Oregon and California | 580 | 8,424 | 16,456 | — | 7,430 | — | 32,890 | |||||||||||||||||||||
Total loans, net of LIP | $ | 266,447 | $ | 173,681 | $ | 319,872 | $ | 153,914 | $ | 22,243 | $ | 9,301 | $ | 945,458 |
Borrower (1) | Number of Loans | One-to-Four Family Residential (2) | Multifamily | Commercial Real Estate | Construction/ Land | Business | Aggregate Balance of Loans (3) | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Real estate investor | 2 | $ | 559 | $ | — | $ | — | $ | 22,000 | $ | — | $ | 22,559 | |||||||||||||
Real estate investor | 2 | — | — | — | 15,698 | — | 15,698 | |||||||||||||||||||
Real estate investor | 4 | — | — | — | 4,699 | 10,631 | 15,330 | |||||||||||||||||||
Real estate investor | 5 | 458 | — | 14,312 | — | — | 14,770 | |||||||||||||||||||
Real estate investor | 3 | — | 1,938 | 11,550 | — | — | 13,488 | |||||||||||||||||||
Total | 16 | $ | 1,017 | $ | 1,938 | $ | 25,862 | $ | 42,397 | $ | 10,631 | $ | 81,845 |
(1) | The composition of borrowers represented in the table may change between periods. |
(2) | $458,000 of the one-to-four family residential loans for these borrowers are for owner occupied properties while $559,000 is for non-owner occupied. The commercial real estate loans are for non-owner occupied properties. |
(3) | Net of LIP. |
September 30, 2017 | December 31, 2016 | Nine Month Change | |||||||||
(Dollars in thousands) | |||||||||||
Nonperforming TDRs: | |||||||||||
One-to-four family residential | $ | — | $ | 174 | $ | (174 | ) | ||||
Total nonperforming TDRs | — | 174 | (174 | ) | |||||||
Performing TDRs: | |||||||||||
One-to-four family residential | 15,174 | 24,274 | (9,100 | ) | |||||||
Multifamily | 1,140 | 1,564 | (424 | ) | |||||||
Commercial real estate | 3,216 | 4,202 | (986 | ) | |||||||
Consumer | 43 | 43 | — | ||||||||
Total performing TDRs | 19,573 | 30,083 | (10,510 | ) | |||||||
Total TDRs | $ | 19,573 | $ | 30,257 | $ | (10,684 | ) | ||||
% TDRs classified as performing | 100.0 | % | 99.4 | % |
September 30, 2017 | December 31, 2016 | Nine Month Change | |||||||||
(Dollars in thousands) | |||||||||||
Nonperforming loans: | |||||||||||
One-to-four family residential | $ | 132 | $ | 798 | $ | (666 | ) | ||||
Consumer | 53 | 60 | (7 | ) | |||||||
Total nonperforming loans | 185 | 858 | (673 | ) | |||||||
OREO | 1,825 | 2,331 | (506 | ) | |||||||
Total nonperforming assets (1) | $ | 2,010 | $ | 3,189 | $ | (1,179 | ) | ||||
Nonperforming assets as a percent of total assets | 0.17 | % | 0.31 | % |
County | Total OREO | Number of Properties | Percent of Total OREO | ||||||||||||||
Pierce | Mason | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
OREO: | |||||||||||||||||
Commercial real estate (1) | $ | 1,320 | $ | 505 | $ | 1,825 | 4 | 100.0 | % | ||||||||
Total OREO | $ | 1,320 | $ | 505 | $ | 1,825 | 4 | 100.0 | % |
September 30, 2017 | Change from December 31, 2016 | Percent Change | ||||||||
(Dollars in thousands) | ||||||||||
Noninterest-bearing | $ | 47,652 | $ | 14,230 | 42.6 | % | ||||
Interest-bearing checking | 31,590 | 13,058 | 70.5 | |||||||
Statement savings | 29,425 | 1,042 | 3.7 | |||||||
Money market | 285,460 | 80,462 | 39.3 | |||||||
Certificates of deposit, retail | 346,125 | (10,528 | ) | (3.0 | ) | |||||
Certificates of deposit, brokered | 75,488 | — | — | |||||||
$ | 815,740 | $ | 98,264 | 13.7 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Dividend declared per common share | $ | 0.07 | $ | 0.06 | $ | 0.20 | $ | 0.18 | |||||||
Dividend payout ratio (1) | 38.9 | % | 27.4 | % | 33.9 | % | 37.9 | % |
Three Months Ended September 30, 2017 Compared to September 30, 2016 Net Change | |||||||||||
Rate | Volume | Total | |||||||||
(In thousands) | |||||||||||
Interest-earning assets: | |||||||||||
Loans receivable, net | $ | 62 | $ | 930 | $ | 992 | |||||
Investments available-for-sale | 79 | (2 | ) | 77 | |||||||
Interest-earning deposits with banks | 63 | 7 | 70 | ||||||||
FHLB stock | 19 | 3 | 22 | ||||||||
Total net change in income on interest-earning assets | 223 | 938 | 1,161 | ||||||||
Interest-bearing liabilities: | |||||||||||
Interest-bearing demand | 7 | 4 | 11 | ||||||||
Statement savings | (1 | ) | (1 | ) | (2 | ) | |||||
Money market | 190 | 80 | 270 | ||||||||
Certificates of deposit, retail | 81 | 3 | 84 | ||||||||
Certificates of deposit, brokered | 6 | 19 | 25 | ||||||||
Advances from the FHLB | 304 | 28 | 332 | ||||||||
Total net change in expense on interest-bearing liabilities | 587 | 133 | 720 | ||||||||
Total net change in net interest income | $ | (364 | ) | $ | 805 | $ | 441 |
Three Months Ended September 30, | |||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||
Average Balance | Interest Earned / Paid | Yield / Cost | Average Balance | Interest Earned / Paid | Yield / Cost | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Loans receivable, net | $ | 879,075 | $ | 10,959 | 4.95 | % | $ | 804,014 | $ | 9,967 | 4.92 | % | |||||||||
Investments available-for-sale | 132,959 | 869 | 2.59 | 133,258 | 792 | 2.36 | |||||||||||||||
Interest-earning deposits with banks | 33,854 | 108 | 1.27 | 28,275 | 38 | 0.53 | |||||||||||||||
FHLB stock | 9,126 | 67 | 2.91 | 8,483 | 45 | 2.10 | |||||||||||||||
Total interest-earning assets | 1,055,014 | 12,003 | 4.51 | 974,030 | 10,842 | 4.42 | |||||||||||||||
Noninterest earning assets | 65,162 | 60,781 | |||||||||||||||||||
Total average assets | $ | 1,120,176 | $ | 1,034,811 | |||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||
Interest-bearing demand | $ | 26,280 | $ | 20 | 0.30 | % | $ | 18,018 | $ | 9 | 0.20 | % | |||||||||
Statement savings | 28,238 | 10 | 0.14 | 30,902 | 12 | 0.15 | |||||||||||||||
Money market | 255,097 | 481 | 0.75 | 185,089 | 211 | 0.45 | |||||||||||||||
Certificates of deposit, retail | 342,599 | 1,105 | 1.28 | 341,685 | 1,021 | 1.19 | |||||||||||||||
Certificates of deposit, brokered | 75,488 | 317 | 1.67 | 70,964 | 292 | 1.63 | |||||||||||||||
Total interest-bearing deposits | 727,702 | 1,933 | 1.05 | 646,658 | 1,545 | 0.95 | |||||||||||||||
Advances from the FHLB and other borrowings | 197,098 | 695 | 1.40 | 182,804 | 363 | 0.79 | |||||||||||||||
Total interest-bearing liabilities | 924,800 | 2,628 | 1.13 | 829,462 | 1,908 | 0.91 | |||||||||||||||
Noninterest bearing liabilities | 51,401 | 43,659 | |||||||||||||||||||
Average equity | 143,975 | 161,690 | |||||||||||||||||||
Total average liabilities and equity | $ | 1,120,176 | $ | 1,034,811 | |||||||||||||||||
Net interest income | $ | 9,375 | $ | 8,934 | |||||||||||||||||
Net interest margin | 3.53 | % | 3.64 | % |
At or For the Three Months Ended September 30, | |||||||
2017 | 2016 | ||||||
(Dollars in thousands) | |||||||
Total loans receivable, net of LIP, end of period | $ | 945,458 | $ | 859,205 | |||
Average loans receivable during period | 879,075 | 804,014 | |||||
ALLL balance at beginning of period | 11,285 | 10,134 | |||||
Provision for loan losses | 500 | 900 | |||||
Charge-offs: | |||||||
Consumer | — | (28 | ) | ||||
Total charge-offs | — | (28 | ) | ||||
Recoveries: | |||||||
One-to-four family | 247 | — | |||||
Commercial real estate | 78 | — | |||||
Total recoveries | 325 | — | |||||
Net recovery | 325 | (28 | ) | ||||
ALLL balance at end of period | $ | 12,110 | $ | 11,006 | |||
ALLL as a percent of total loans, net of LIP | 1.28 | % | 1.28 | % | |||
Ratio of net recoveries to average net loans receivable | 0.15 | (0.01 | ) |
Three Months Ended September 30, 2017 | Change from Three Months Ended September 30, 2016 | Percent Change | ||||||||
(Dollars in thousands) | ||||||||||
Service fees on deposit accounts | $ | 34 | $ | 18 | 112.5 | % | ||||
Loan service fees | 61 | 9 | 17.3 | |||||||
Net gain on sale of investments | 47 | 14 | 42.4 | |||||||
BOLI change in cash surrender value | 173 | (78 | ) | (31.1 | ) | |||||
Wealth management revenue | 252 | 87 | 52.7 | |||||||
Other | 164 | 8 | 5.1 | |||||||
Total noninterest income | $ | 731 | $ | 58 | 8.6 |
Three Months Ended September 30, 2017 | Change from Three Months Ended September 30, 2016 | Percent Change | ||||||||
(Dollars in thousands) | ||||||||||
Salaries and employee benefits | $ | 4,406 | $ | 585 | 15.3 | % | ||||
Occupancy and equipment | 726 | 259 | 55.5 | |||||||
Professional fees | 458 | — | — | |||||||
Data processing | 372 | 113 | 43.6 | |||||||
OREO related (reimbursements) expenses, net | (6 | ) | 5 | (45.5 | ) | |||||
Regulatory assessments | 122 | 40 | 48.8 | |||||||
Insurance and bond premiums | 105 | 19 | 22.1 | |||||||
Marketing | 102 | 35 | 52.2 | |||||||
Other general and administrative | 551 | 526 | 2,104.0 | |||||||
Total noninterest expense | $ | 6,836 | $ | 1,582 | 30.1 | % |
Nine Months Ended September 30, 2017 Compared to September 30, 2016 Net Change | |||||||||||
Rate | Volume | Total | |||||||||
(In thousands) | |||||||||||
Interest-earning assets: | |||||||||||
Loans receivable, net | $ | (555 | ) | $ | 4,151 | $ | 3,596 | ||||
Investments available-for-sale | 394 | (17 | ) | 377 | |||||||
Interest-earning deposits with banks | 99 | (103 | ) | (4 | ) | ||||||
FHLB stock | 41 | 34 | 75 | ||||||||
Total net change in income on interest-earning assets | (21 | ) | 4,065 | 4,044 | |||||||
Interest-bearing liabilities: | |||||||||||
Interest-bearing demand | 31 | 5 | 36 | ||||||||
Statement savings | (1 | ) | (2 | ) | (3 | ) | |||||
Money market | 391 | 95 | 486 | ||||||||
Certificates of deposit, retail | 216 | 169 | 385 | ||||||||
Certificates of deposit, brokered | (83 | ) | 110 | 27 | |||||||
Advances from the FHLB | 508 | 269 | 777 | ||||||||
Total net change in expense on interest-bearing liabilities | 1,062 | 646 | 1,708 | ||||||||
Total net change in net interest income | $ | (1,083 | ) | $ | 3,419 | $ | 2,336 |
Nine Months Ended September 30, | |||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||
Average Balance | Interest Earned / Paid | Yield or Cost | Average Balance | Interest Earned / Paid | Yield or Cost | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Loans receivable, net | $ | 849,923 | $ | 31,338 | 4.93 | % | $ | 739,312 | $ | 27,742 | 5.02 | % | |||||||||
Investments available-for-sale | 131,457 | 2,601 | 2.65 | 132,471 | 2,224 | 2.24 | |||||||||||||||
Interest-earning deposits with banks | 25,008 | 194 | 1.04 | 51,855 | 198 | 0.51 | |||||||||||||||
FHLB stock | 8,596 | 211 | 3.28 | 6,878 | 136 | 2.64 | |||||||||||||||
Total interest-earning assets | 1,014,984 | 34,344 | 4.52 | 930,516 | 30,300 | 4.35 | |||||||||||||||
Noninterest earning assets | 62,965 | 59,127 | |||||||||||||||||||
Total average assets | $ | 1,077,949 | $ | 989,643 | |||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||
Interest-bearing demand | $ | 22,087 | $ | 54 | 0.33 | % | $ | 17,534 | $ | 18 | 0.14 | % | |||||||||
Statement savings | 27,893 | 32 | 0.15 | 29,461 | 35 | 0.16 | |||||||||||||||
Money market | 228,559 | 1,122 | 0.66 | 198,958 | 636 | 0.43 | |||||||||||||||
Certificates of deposit, retail | 349,091 | 3,252 | 1.25 | 329,622 | 2,867 | 1.16 | |||||||||||||||
Certificates of deposit, brokered | 75,488 | 940 | 1.66 | 67,345 | 913 | 1.81 | |||||||||||||||
Total interest-bearing deposits | 703,118 | 5,400 | 1.03 | 642,920 | 4,469 | 0.93 | |||||||||||||||
Advances from the FHLB and other borrowings | 184,412 | 1,710 | 1.24 | 143,092 | 933 | 0.87 | |||||||||||||||
Total interest-bearing liabilities | 887,530 | 7,110 | 1.07 | 786,012 | 5,402 | 0.92 | |||||||||||||||
Noninterest bearing liabilities | 47,685 | 36,545 | |||||||||||||||||||
Average equity | 142,734 | 167,086 | |||||||||||||||||||
Total average liabilities and equity | $ | 1,077,949 | $ | 989,643 | |||||||||||||||||
Net interest income | $ | 27,234 | $ | 24,898 | |||||||||||||||||
Net interest margin | 3.59 | % | 3.58 | % |
At or For the Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
(Dollars in thousands) | |||||||
Total loans receivable, net of LIP, end of period | $ | 945,458 | $ | 859,206 | |||
Average loans receivable during period | 849,923 | 739,312 | |||||
ALLL balance at beginning of period | 10,951 | 9,463 | |||||
Provision for loan losses | 800 | 1,400 | |||||
Charge-offs: | |||||||
Consumer | — | (47 | ) | ||||
Total charge-offs | — | (47 | ) | ||||
Recoveries: | |||||||
One-to-four family | 280 | 85 | |||||
Commercial real estate | 78 | 104 | |||||
Consumer | 1 | 1 | |||||
Total recoveries | 359 | 190 | |||||
Net recovery | 359 | 143 | |||||
ALLL balance at end of period | $ | 12,110 | $ | 11,006 | |||
ALLL as a percent of total loans, net of LIP | 1.28 | % | 1.28 | % | |||
Ratio of net recoveries to average net loans receivable (annualized) | 0.06 | 0.03 |
Nine Months Ended September 30, 2017 | Change from Nine Months Ended September 30, 2016 | Percent Change | ||||||||
(Dollars in thousands) | ||||||||||
Service fees on deposit accounts | $ | 96 | $ | 36 | 60.0 | % | ||||
Loan service fees | 215 | 34 | 18.8 | |||||||
Net gain on sale of investments | 103 | 70 | 212.1 | |||||||
BOLI change in cash surrender value | 490 | (151 | ) | (23.6 | ) | |||||
Wealth management revenue | 699 | 43 | 6.6 | |||||||
Other | 394 | 104 | 35.9 | |||||||
Total noninterest income | $ | 1,997 | $ | 136 | 7.3 |
Nine Months Ended September 30, 2017 | Change from Nine Months Ended September 30, 2016 | Percent Change | ||||||||
(Dollars in thousands) | ||||||||||
Salaries and employee benefits | $ | 13,100 | $ | 1,664 | 14.6 | % | ||||
Occupancy and equipment | 1,785 | 322 | 22.0 | |||||||
Professional fees | 1,379 | (108 | ) | (7.3 | ) | |||||
Data processing | 1,131 | 431 | 61.6 | |||||||
OREO-related (reimbursements) expenses, net | 14 | (285 | ) | (95.3 | ) | |||||
Regulatory assessments | 330 | 11 | 3.4 | |||||||
Insurance and bond premiums | 302 | 42 | 16.2 | |||||||
Marketing | 202 | 57 | 39.3 | |||||||
Other general and administrative | 1,497 | 507 | 51.2 | |||||||
Total noninterest expense | $ | 19,740 | $ | 2,641 | 15.4 |
Amount of Commitment Expiration | |||||||||||||||||||
Total Amounts Committed | Through One Year | After One Through Three Years | After Three Through Five Years | After Five Years | |||||||||||||||
(In thousands) | |||||||||||||||||||
Unused portion of lines of credit | $ | 24,782 | $ | 1,934 | $ | 14,187 | $ | 3,570 | $ | 5,091 | |||||||||
Undisbursed portion of construction loans | 91,316 | 40,075 | 51,241 | — | — | ||||||||||||||
Total commitments | $ | 116,098 | $ | 42,009 | $ | 65,428 | $ | 3,570 | $ | 5,091 |
At September 30, 2017 | ||||||||||||||||||||
Actual | For Minimum Capital Adequacy Purposes | To be Categorized as “Well Capitalized” | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Tier I leverage capital (to average assets) | ||||||||||||||||||||
Bank only | $ | 120,665 | 10.80 | % | $ | 44,677 | 4.00 | % | $ | 55,846 | 5.00 | % | ||||||||
Consolidated | 139,594 | 12.48 | 44,734 | 4.00 | 55,918 | 5.00 | ||||||||||||||
Common equity tier I ("CET1") (to risk-weighted assets) | ||||||||||||||||||||
Bank only | 120,665 | 12.94 | 41,969 | 4.50 | 60,622 | 6.50 | ||||||||||||||
Consolidated | 139,594 | 14.93 | 42,062 | 4.50 | 60,756 | 6.50 | ||||||||||||||
Tier I risk-based capital (to risk-weighted assets) | ||||||||||||||||||||
Bank only | 120,665 | 12.94 | 55,959 | 6.00 | 74,612 | 8.00 | ||||||||||||||
Consolidated | 139,594 | 14.93 | 56,082 | 6.00 | 74,776 | 8.00 | ||||||||||||||
Total risk-based capital (to risk-weighted assets) | ||||||||||||||||||||
Bank only | 132,334 | 14.19 | 74,612 | 8.00 | 93,265 | 10.00 | ||||||||||||||
Consolidated | 151,289 | 16.19 | 74,776 | 8.00 | 93,471 | 10.00 |
• | economic conditions; |
• | interest rate outlook; |
• | asset/liability mix; |
• | interest rate risk sensitivity; |
• | current market opportunities to promote specific products; |
• | historical financial results; |
• | projected financial results; and |
• | capital position. |
• | we have attempted, where possible, to extend the maturities of our deposits which typically fund our long-term assets; |
Net Interest Income Change at September 30, 2017 | |||||||
Basis Point Change in Rates | Net Interest Income | % Change | |||||
(Dollars in thousands) | |||||||
+300 | $ | 36,482 | (2.64 | )% | |||
+200 | 36,811 | (1.76 | ) | ||||
+100 | 37,232 | (0.64 | ) | ||||
Base | 37,470 | — | |||||
(100) | 37,400 | (0.19 | ) |
Basis Point | Net Portfolio as % of | Market | |||||||||||||||||||
Change in | Net Portfolio Value (1) | Portfolio Value of Assets | Value of | ||||||||||||||||||
Rates | Amount | $ Change (2) | % Change | NPV Ratio (3) | % Change (4) | Assets (5) | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
+300 | $ | 115,974 | $ | (37,204 | ) | (24.29 | )% | 10.77 | % | (3.21 | )% | $ | 1,077,194 | ||||||||
+200 | 128,008 | (25,170 | ) | (16.43 | ) | 11.60 | (2.17 | ) | 1,103,773 | ||||||||||||
+100 | 142,338 | (10,840 | ) | (7.08 | ) | 12.56 | (0.93 | ) | 1,133,374 | ||||||||||||
Base | 153,178 | — | — | 13.20 | — | 1,160,270 | |||||||||||||||
(100) | 158,870 | 5,692 | 3.72 | 13.41 | 0.49 | 1,184,854 |
(a) | Evaluation of Disclosure Controls and Procedures: An evaluation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) was carried out under the supervision and with the participation of our Chief Executive Officer, Chief Financial Officer (Principal Financial Officer) and several other members of our senior management as of the end of the period covered by this report. Our Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2017, our disclosure controls and procedures were effective in ensuring that the information required to be disclosed by us in the reports we file or submit under the Exchange Act is (i) accumulated and communicated to our management (including the Chief Executive Officer and Chief Financial Officer) in a timely manner and (ii) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. |
(b) | Changes in Internal Controls: In the quarter ended September 30, 2017, there was no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Repurchased as Part of Publicly Announced Plan | Maximum Number of Shares that May Yet Be Repurchased Under the Plan | |||||||||
July 1 - July 31, 2017 | — | — | — | 1,077,300 | |||||||||
August 1 - August 31, 2017 | 71,000 | 16.00 | 71,000 | 1,006,300 | |||||||||
September 1 - September 30, 2017 | 219,500 | $ | 15.99 | 219,500 | 786,800 | ||||||||
290,500 | 290,500 |
3.1 | |||
3.2 | |||
4.0 | |||
10.1 | |||
10.2 | |||
10.3 | |||
10.4 | |||
10.5 | |||
10.6 | |||
10.7 | |||
10.8 | |||
10.9 | |||
31.1 | |||
31.2 | |||
32 | |||
101 | The following materials from First Financial Northwest’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, formatted in Extensible Business Reporting Language (XBRL): (1) Consolidated Balance Sheets; (2) Consolidated Income Statements; (3) Consolidated Statements of Comprehensive Income; (4) Consolidated Statements of Stockholders’ Equity; (5) Consolidated Statements of Cash Flows; and (6) Selected Notes to Consolidated Financial Statements. |
(1) | Filed as an exhibit to First Financial Northwest’s Registration Statement on Form S-1 (333-143539) |
(2) | Filed as an exhibit to First Financial Northwest’s Current Report on Form 8-K dated June 15, 2017. |
(3) | Filed as an exhibit to First Financial Northwest’s Current Report on Form 8-K dated December 5, 2013. |
(4) | Filed as an exhibit to First Financial Northwest’s Current Report on Form 8-K dated September 9, 2014. |
(5) | Filed as an exhibit to First Financial Northwest’s Current Report on Form 8-K dated July 11, 2017. |
(6) | Filed as Appendix A to First Financial Northwest’s definitive proxy statement dated April 15, 2008. |
(7) | Filed as an exhibit to First Financial Northwest’s Current Report on Form 8-K dated June 15, 2016. |
(8) | Filed as an exhibit to First Financial Northwest’s Current Report on Form 8-K dated July 1, 2008. |
(9) | Filed as an exhibit to First Financial Northwest’s Current Report on Form 8-K dated September 8, 2017. |
FIRST FINANCIAL NORTHWEST, INC. | ||
Date: November 7, 2017 | By: | /s/Joseph W. Kiley III |
Joseph W. Kiley III | ||
President and Chief Executive Officer (Principal Executive Officer) |
Date: November 7, 2017 | By: | /s/Richard P. Jacobson |
Richard P. Jacobson | ||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) | ||
Date: November 7, 2017 | By: | /s/Christine A. Huestis |
Christine A. Huestis | ||
Vice President and Controller (Principal Accounting Officer) |
Exhibit No. | Description | ||
31.1 | |||
31.2 | |||
32 | |||
101 | The following materials from First Financial Northwest’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, formatted in Extensible Business Reporting Language (XBRL): (1) Consolidated Balance Sheets; (2) Consolidated Income Statements; (3) Consolidated Statements of Comprehensive Income; (4) Consolidated Statements of Stockholders’ Equity; (5) Consolidated Statements of Cash Flows; and (6) Selected Notes to Consolidated Financial Statements. |
1. | I have reviewed this quarterly report on Form 10-Q of First Financial Northwest, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/Joseph W. Kiley III |
Joseph W. Kiley III President and Chief Executive Officer (Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of First Financial Northwest, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/Richard P. Jacobson |
Richard P. Jacobson Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
1. | the report fully complies with the requirements of Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | the information contained in the report fairly presents, in all material respects, First Financial Northwest's financial condition and results of operations as of the dates and for the periods presented in the financial statements included in this report. |
/s/Joseph W. Kiley III | |
Joseph W. Kiley III President and Chief Executive Officer (Principal Executive Officer) |
/s/Richard P. Jacobson | |
Richard P. Jacobson Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Nov. 03, 2017 |
|
Document and Entity Information | ||
Entity Registrant Name | First Financial Northwest, Inc. | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Entity Central Index Key | 0001401564 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 10,762,037 | |
Entity Filer Category | Accelerated Filer | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q3 |
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Assets | ||
Loans receivable allowance for loan losses | $ 12,110 | $ 10,951 |
Stockholders' Equity | ||
Preferred stock par value per share (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock shares issued (in shares) | 0 | 0 |
Preferred stock shares outstanding (in shares) | 0 | 0 |
Common stock par value per share (in usd per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock shares issued (in shares) | 10,763,915 | 10,938,251 |
Common stock shares outstanding (in shares) | 10,763,915 | 10,938,251 |
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Interest income | ||||
Loans, including fees | $ 10,959,000 | $ 9,967,000 | $ 31,338,000 | $ 27,742,000 |
Investments available-for-sale | 869,000 | 792,000 | 2,601,000 | 2,224,000 |
Interest-earning deposits with banks | 108,000 | 38,000 | 194,000 | 198,000 |
Dividends on FHLB stock | 67,000 | 45,000 | 211,000 | 136,000 |
Total interest income | 12,003,000 | 10,842,000 | 34,344,000 | 30,300,000 |
Interest expense | ||||
Deposits | 1,933,000 | 1,545,000 | 5,400,000 | 4,469,000 |
FHLB advances and other borrowings | 695,000 | 363,000 | 1,710,000 | 933,000 |
Total interest expense | 2,628,000 | 1,908,000 | 7,110,000 | 5,402,000 |
Net interest income | 9,375,000 | 8,934,000 | 27,234,000 | 24,898,000 |
Provision for loan losses | 500,000 | 900,000 | 800,000 | 1,400,000 |
Net interest income after provision for loan losses | 8,875,000 | 8,034,000 | 26,434,000 | 23,498,000 |
Noninterest income | ||||
Net gain on sale of investments | 47,000 | 33,000 | 103,000 | 33,000 |
BOLI income | 173,000 | 251,000 | 490,000 | 641,000 |
Wealth management revenue | 252,000 | 165,000 | 699,000 | 656,000 |
Other | 259,000 | 224,000 | 705,000 | 531,000 |
Total noninterest income | 731,000 | 673,000 | 1,997,000 | 1,861,000 |
Noninterest expense | ||||
Salaries and employee benefits | 4,406,000 | 3,821,000 | 13,100,000 | 11,436,000 |
Occupancy and equipment | 726,000 | 467,000 | 1,785,000 | 1,463,000 |
Professional fees | 458,000 | 458,000 | 1,379,000 | 1,487,000 |
Data processing | 372,000 | 259,000 | 1,131,000 | 700,000 |
OREO related (reimbursements) expenses, net | (6,000) | (11,000) | 14,000 | 299,000 |
Regulatory assessments | 122,000 | 82,000 | 330,000 | 319,000 |
Insurance and bond premiums | 105,000 | 86,000 | 302,000 | 260,000 |
Marketing | 102,000 | 67,000 | 202,000 | 145,000 |
Other general and administrative | 551,000 | 25,000 | 1,497,000 | 990,000 |
Total noninterest expense | 6,836,000 | 5,254,000 | 19,740,000 | 17,099,000 |
Income before federal income tax provision | 2,770,000 | 3,453,000 | 8,691,000 | 8,260,000 |
Federal income tax provision | 909,000 | 847,000 | 2,618,000 | 2,389,000 |
Net income | $ 1,861,000 | $ 2,606,000 | $ 6,073,000 | $ 5,871,000 |
Earnings per common share | ||||
Basic earnings per share (in dollars per share) | $ 0.18 | $ 0.22 | $ 0.59 | $ 0.47 |
Diluted earnings per share (in dollars per share) | $ 0.18 | $ 0.22 | $ 0.58 | $ 0.47 |
Weighted average number of common shares outstanding | ||||
Basic shares outstanding (in shares) | 10,287,663 | 11,859,683 | 10,323,459 | 12,329,815 |
Diluted shares outstanding (in shares) | 10,427,038 | 12,011,952 | 10,480,061 | 12,481,379 |
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMETNS OF STOCKHOLDERS' EQUITY (PARENTHETICALS) - $ / shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Statement of Stockholders' Equity [Abstract] | ||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.20 | $ 0.18 |
Allocated shares | 84,642 | 84,639 |
Description of Business |
9 Months Ended |
---|---|
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business First Financial Northwest, Inc. (“First Financial Northwest”), a Washington corporation, was formed on June 1, 2007 for the purpose of becoming the holding company for First Financial Northwest Bank (the “Bank”) in connection with the conversion from a mutual holding company structure to a stock holding company structure completed on October 9, 2007. First Financial Northwest’s business activities generally are limited to passive investment activities and oversight of its investment in First Financial Northwest Bank. Accordingly, the information presented in the consolidated financial statements and accompanying data, relates primarily to First Financial Northwest Bank. First Financial Northwest is a bank holding company, having converted from a savings and loan holding company on March 31, 2015, and as a bank holding company is subject to regulation by the Federal Reserve Bank of San Francisco. First Financial Northwest Bank is regulated by the Federal Deposit Insurance Corporation (“FDIC”) and the Washington State Department of Financial Institutions (“DFI”). As of September 30, 2017. First Financial Northwest Bank had nine locations in Washington with the headquarters and four additional branch locations in King County and five branch locations in Snohomish County. The Bank acquired four bank branches (one in King and three in Snohomish counties) and $74.7 million in retail deposits from Opus Bank on August 25, 2017. No loans were acquired in this transaction. The Bank has received regulatory approval to open a new branch in Bothell, Washington, which is expected to open in the first quarter of 2018. The Bank’s primary market area consists of King, Snohomish, Pierce and Kitsap counties, Washington. The Bank is a portfolio lender, originating and purchasing one-to-four family residential, multifamily, commercial real estate, construction/land development, business, and consumer loans. Loans are primarily funded by deposits from the general public, supplemented by borrowings from the Federal Home Loan Bank of Des Moines (“FHLB”) and deposits raised in the national brokered deposit market. As used throughout this report, the terms “we,” “our,” “us,” or the “Company” refer to First Financial Northwest, Inc. and its consolidated subsidiary First Financial Northwest Bank, unless the context otherwise requires. |
Basis of Presentation |
9 Months Ended |
---|---|
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by U.S. Generally Accepted Accounting Principles (“GAAP”) for complete financial statements. These unaudited interim consolidated financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the SEC. In our opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of the unaudited interim consolidated financial statements in accordance with GAAP have been included. All significant intercompany balances and transactions between the Company and its subsidiaries have been eliminated in consolidation. Operating results for the nine months ended September 30, 2017, are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. In preparing the unaudited consolidated financial statements, we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the allowance for loan and lease losses (“ALLL”), the valuation of other real estate owned (“OREO”) and the underlying collateral of impaired loans, deferred tax assets, and the fair value of financial instruments. The Company’s activities are considered to be a single industry segment for financial reporting purposes. The Company is engaged in the business of attracting deposits from the general public and originating and purchasing loans for its portfolio. Substantially all income is derived from a diverse base of commercial, multifamily, and residential real estate loans, consumer lending activities, and investments. Certain amounts in the unaudited interim consolidated financial statements for prior periods have been reclassified to conform to the current unaudited financial statement presentation with no effect on consolidated net income or stockholders’ equity. |
Recently Issued Accounting Pronouncements |
9 Months Ended |
---|---|
Sep. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606). In August 2015, FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606) which postponed the effective date of 2014-09. Subsequently, in March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations. This amendment clarifies that an entity should determine if it is the principal or the agent for each specified good or service promised in a contract with a customer. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The core principle of Topic 606 is that an entity must recognize revenue when it has satisfied a performance obligation of transferring promised goods or services to a customer. The standard is effective for public entities for interim and annual periods beginning after December 15, 2017; early adoption is not permitted. The standard allows for full retrospective adoption for all periods presented or modified retrospective adoption to only the most current period presented in the financial statements. The cumulative effect of initially applying the standard is recognized at the date of the initial application. Our primary source of revenue is interest income, which is recognized as it is earned and is deemed to be in compliance with this ASU. With respect to noninterest income, the Company is in process of identifying and evaluating the revenue streams and underlying revenue contracts within the scope of the guidance. The Company is developing processes and procedures to ensure it is fully compliant with these amendments. To date, the Company has not yet identified any significant changes in the timing of revenue recognition when considering the amended accounting guidance; however, the Company’s implementation efforts are ongoing and such assessments may change prior to the January 1, 2018 implementation date. Accordingly, the Company does not expect implementation of this standard to have a material impact on our consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842). ASU No. 2016-02 requires lessees to recognize on the balance sheet the assets and liabilities arising from operating leases. A lessee should recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. A lessee should include payments to be made in an optional period only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. For a finance lease, interest payments should be recognized separately from amortization of the right-of-use asset in the statement of comprehensive income. For operating leases, the lease cost should be allocated over the lease term on a generally straight-line basis. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in the ASU is permitted. The effect of the adoption will depend on leases at the time of adoption. Once adopted, we expect to report higher assets and liabilities as a result of including right-of-use assets and lease liabilities related to certain banking offices and certain equipment under noncancelable operating lease agreements, however, based on current leases, the adoption is expected to increase our consolidated balance sheets by less than 5% and not to have a material impact on our regulatory capital ratios. In January 2016, FASB issued ASU No. 2016-01, Financial Instruments--Overall, Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income. The amendments in this ASU also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in instrument-specific credit risk. In addition, the ASU eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. The ASU also clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted for fiscal years or interim periods that have not yet been issued if adopted at the beginning of the fiscal year. The Company is reviewing our available-for-sale investment portfolio in accordance with the provision of this standard. The adoption of ASU 2016-01 is not expected to have a material impact on the Company’s consolidated financial statements. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments--Credit Losses (Topic 326). This ASU replaces the existing incurred loss impairment methodology that recognizes credit losses when a probable loss has been incurred with new methodology where loss estimates are based upon lifetime expected credit losses. The amendments in this ASU require a financial asset that is measured at amortized cost to be presented at the net amount expected to be collected. The income statement would then reflect the measurement of credit losses for newly recognized financial assets as well as changes to the expected credit losses that have taken place during the reporting period. The measurement of expected credit losses will be based on historical information, current conditions, and reasonable and supportable forecasts that impact the collectability of the reported amount. Available-for-sale securities will bifurcate the fair value mark and establish an allowance for credit losses through the income statement for the credit portion of that mark. The interest portion will continue to be recognized through accumulated other comprehensive income or loss. The change in allowance recognized as a result of adoption will occur through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the ASU is adopted. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2018. The Company is evaluating our current expected loss methodology of our loan and investment portfolios to identify the necessary modifications in accordance with this standard and expects a change in the processes and procedures to calculate the ALLL, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. A valuation adjustment to our ALLL or investment portfolio that is identified in this process will be reflected as a one-time adjustment in equity rather than earnings. We are in the process of compiling historical data that will be used to calculate expected credit losses on our loan portfolio to ensure we are fully compliant with the ASU at the adoption date and are evaluating the potential impact adoption of this ASU will have on our consolidated financial statements. Once adopted, we expect our allowance for loan losses to increase, however, until our evaluation is complete the magnitude of the increase will be unknown. In August 2016, FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU was to address the appropriate classification of eight specific cash flow issues on the cash flow statement. Debt prepayment costs should be classified as an outflow for financing activities. Settlement of zero-coupon debt instruments divides the interest portion as an outflow for operating activities and the principal portion as an outflow for financing activities. Contingent consideration payments made after a business combination should be classified as outflows for financing and operating activities. Proceeds from the settlement of bank-owned life insurance policies should be classified as inflows from investing activities. Other specific areas are identified in the ASU as to the appropriate classification of the cash inflows or outflows. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted and must be applied using a retrospective transition method to each period presented. The Company does not currently have items on its cash flow statement that would be impacted by adoption of this ASU and will evaluate future cash flow statement classifications in accordance with the standard. Adoption of ASU 2016-15 is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, FASB issued ASU 2017-01, Business Combinations (Topic 805). This ASU clarifies the definition of a business to assist in determining whether transactions should be accounted for as acquisitions (or disposals) or assets or businesses. The amendments in this ASU provide a screen to determine when a set of assets and activities is not a business, thereby reducing the number of transactions requiring further evaluation. If the screen is not met, the amendments in this ASU further provide a framework to evaluate if the criteria is present to qualify for a business. This ASU is effective for annual periods beginning after December 15, 2017 and should be applied prospectively on or after the effective date. Adoption of ASU 2017-01 is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, FASB issued ASU No. 2017-04, Intangibles--Goodwill and Other (Topic 350). This ASU simplifies the impairment calculation for subsequent measurement of goodwill by eliminating the step of comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the amendments in this ASU, an entity will evaluate the carrying amount of a reporting unit to its fair value, as if the reporting unit had been acquired in a business combination. An impairment charge should be recognized for the amount that the carrying amount exceeds the fair value, not to exceed the amount of goodwill. The income tax effect should be considered for any tax deductible goodwill when measuring the impairment loss. The amendments in this ASU are effective for goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for reporting periods after January 1, 2017. The Company recognized goodwill from its recent branch acquisition and intends on adopting this ASU in 2018. Adoption of ASU 2017-04 is not expected to have a material impact on the Company’s consolidated financial statements. In March 2017, FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The ASU shortens the amortization period for certain callable debt securities held at a premium. The standard will take effect for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The adoption of ASU No. 2017-08 is not expected to have a material impact on the Company's consolidated financial statements. In May 2017, FASB issued ASU No. 2017-09, Compensation--Stock Compensation (Topic 718): Scope of Modification Accounting. The ASU was issued to provide clarity as to when to apply modification accounting when there is a change in the terms or conditions of a share-based payment award. According to this ASU, an entity should account for the effects of a modification unless the fair value, vesting conditions, and balance sheet classification of the award is the same after the modification as compared to the original award prior to the modification. This ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company has not had any modifications on share-based payment awards. The adoption of ASU No. 2017-09 is not expected to have a material impact on the Company’s consolidated financial statements. In August 2017, FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), This ASU was issued to provide investors better insight to an entity’s risk management hedging strategies by permitting companies to recognize the economic results of its hedging strategies in its financial statements. The amendments in this ASU permit hedge accounting for hedging relationships involving nonfinancial risk and interest rate risk by removing certain limitations in cash flow and fair value hedging relationships. In addition, the ASU requires an entity to present the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported. This ASU is effective for fiscal years beginning after December 15, 2018, and early adoption is permitted. Adoption of ASU 2017-12 is not expected to have a material impact on the Company’s consolidated financial statements. |
Investments |
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Investments | Investments Investments available-for-sale are summarized as follows at the dates indicated:
The tables below summarize the aggregate fair value and gross unrealized loss by length of time those investment securities have been continuously in an unrealized loss position at the dates indicated:
On a quarterly basis, management makes an assessment to determine whether there have been any events or economic circumstances to indicate that a security on which there is an unrealized loss is impaired on an other-than-temporary basis. The Company considers many factors including the severity and duration of the impairment, recent events specific to the issuer or industry, and for debt securities, external credit ratings and recent downgrades. Securities on which there is an unrealized loss that is deemed to be an other-than-temporary impairment (“OTTI”) are written down to fair value. If the Company intends to sell a debt security, or it is likely that the Company will be required to sell the debt security before recovering its cost basis, the entire impairment loss would be recognized in earnings as an OTTI. If the Company does not intend to sell the debt security and it is not likely that it will be required to sell the debt security but does not expect to recover the entire amortized cost basis of the debt security, only the portion of the impairment loss representing credit losses would be recognized in earnings. The credit loss on a debt security is measured as the difference between the amortized cost basis and the present value of the cash flows expected to be collected. Projected cash flows are discounted by the original or current effective interest rate depending on the nature of the debt security being measured for potential OTTI. The remaining impairment related to all other factors, the difference between the present value of the cash flows expected to be collected and fair value, is recognized as a charge to other comprehensive income (“OCI”). Impairment losses related to all other factors are presented as separate categories within OCI. At September 30, 2017 and December 31, 2016, the Company had 45 securities and 53 securities in an unrealized loss position, respectively. At September 30, 2017 and December 31, 2016, the Company had fifteen securities and four securities, respectively, in an unrealized loss position for 12 months or more. Management reviewed the financial condition of the entities issuing municipal or corporate bonds at September 30, 2017 and December 31, 2016, and determined that an OTTI charge was not warranted. The amortized cost and estimated fair value of investments available-for-sale at September 30, 2017, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Investments not due at a single maturity date, primarily mortgage-backed investments, are shown separately.
Under Washington state law, in order to participate in the public funds program the Company is required to pledge eligible securities as collateral in an amount equal to 50% of the public deposits held less the FDIC insured amount. Investment securities with market values of $20.8 million and $22.6 million were pledged as collateral for public deposits at September 30, 2017 and December 31, 2016, respectively, both of which exceeded the collateral requirements established by the Washington Public Deposit Protection Commission. For the three and nine months ended September 30, 2017, we had calls, sales and a maturity on investment securities of $2.8 million, and $7.5 million, respectively, generating a net gain of $47,000 and $103,000, respectively. For the three and nine months ended September 30, 2016, we had calls and sales on investment securities of $24.5 million, and $24.9 million, respectively, generating a net gain of $33,000 for both periods. |
Loans Receivable |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable | Loans Receivable Loans receivable are summarized as follows at the dates indicated:
At September 30, 2017, loans totaling $457.5 million were pledged to secure borrowings from the FHLB of Des Moines compared to $472.1 million at December 31, 2016. ALLL. The Company maintains an ALLL as a reserve against probable and inherent risk of losses in its loan portfolios. The ALLL is comprised of a general reserve component for loans evaluated collectively for loss and a specific reserve component for loans evaluated individually. When an issue is identified and it is determined that the loan needs to be classified as nonperforming and/or impaired, an evaluation of the discounted expected cash flows is done and an appraisal may be obtained on the collateral. Based on this evaluation, additional provision for loan loss or charge-offs is recorded prior to the end of the financial reporting period. The following tables summarize changes in the ALLL and loan portfolio by loan type and impairment method at the dates and for the periods shown:
____________ (1) Net of LIP. (2) Loans collectively evaluated for general reserves. (3) Loans individually evaluated for specific reserves.
_____________ (1) Net of LIP. (2) Loans collectively evaluated for general reserves. (3) Loans individually evaluated for specific reserves. Past Due Loans. Loans are considered past due if a scheduled principal or interest payment is due and unpaid for 30 days or more. At September 30, 2017, past due loans were 0.01% of total loans receivable, net of LIP. In comparison, past due loans were 0.06% of total loans receivable, net of LIP at December 31, 2016. The following tables represent a summary of the aging of loans by type at the dates indicated:
________________ (1) There were no loans 90 days and greater past due and still accruing interest at September 30, 2017. (2) Net of LIP.
_________________ (1) There were no loans 90 days and greater past due and still accruing interest at December 31, 2016. (2) Net of LIP. Nonaccrual Loans. The following table is a summary of nonaccrual loans by loan type at the dates indicated:
During the three and nine months ended September 30, 2017, interest income that would have been recognized had these nonaccrual loans been performing in accordance with their original terms was $3,000 and $21,000, respectively. For the three and nine months ended September 30, 2016, foregone interest on nonaccrual loans was $13,000 and $40,000, respectively. The following tables summarize the loan portfolio by type and payment status at the dates indicated:
_____________
_____________ (1) Net of LIP. (2) There were $137.0 million of owner-occupied one-to-four family residential loans and $111.6 million of non-owner occupied one-to-four family residential loans classified as performing. (3) The $798,000 of one-to-four family residential loans classified as nonperforming are all owner-occupied. Impaired Loans. A loan is considered impaired when we have determined that we may be unable to collect payments of principal or interest when due under the terms of the original loan document. There were no funds committed to be advanced in connection with impaired loans at either September 30, 2017, or December 31, 2016. The following tables present a summary of loans individually evaluated for impairment by loan type at the dates indicated:
_________________ (1) Represents the loan balance less charge-offs. (2) Contractual loan principal balance.
_________________ (1) Represents the loan balance less charge-offs. (2) Contractual loan principal balance. The following table presents the average recorded investment in loans individually evaluated for impairment and the interest income recognized for the three and nine months ended September 30, 2017 and 2016:
Troubled Debt Restructurings. Certain loan modifications are accounted for as troubled debt restructured loans (“TDRs”). At September 30, 2017, the TDR portfolio totaled $19.6 million, all of which were performing in accordance with their restructured payment terms. At December 31, 2016, the TDR portfolio totaled $30.3 million, of which one loan of $174,000 was not performing in accordance with the terms of its restructure and was on nonaccrual status. The following tables present loans that were modified as TDRs during the periods indicated and their recorded investment both before and after the modification:
At September 30, 2017, the Company had no commitments to extend additional credit to borrowers whose loan terms have been modified in TDRs. All TDRs are also classified as impaired loans and are included in the loans individually evaluated for impairment as part of the calculation of the ALLL. The TDRs that occurred during the three and nine months ended September 30, 2017 and September 30, 2016, were all on existing TDRs and included extensions of existing interest rate concessions and advancing maturity dates for a period of time ranging from one to three years. No loans accounted for as TDRs were charged-off to the ALLL for the three and nine months ended September 30, 2017 and 2016. TDRs that default after they have been modified are typically evaluated individually on a collateral basis. Any additional impairment is charged to the ALLL. For the three and nine months ended September 30, 2017, and September 30, 2016, no loans that had been modified in the previous 12 months defaulted. Credit Quality Indicators. The Company utilizes a nine-category risk rating system and assigns a risk rating for all credit exposures. The risk rating system is designed to define the basic characteristics and identify risk elements of each credit extension. Credits risk rated 1 through 5 are considered to be “pass” credits. Pass credits include assets, such as cash secured loans with funds on deposit with the Bank, where there is virtually no credit risk. Pass credits also include credits that are on the Company’s watch list, where the borrower exhibits potential weaknesses, which may, if not checked or corrected, negatively affect the borrower’s financial capacity and threaten their ability to fulfill debt obligations in the future. Credits classified as special mention are risk rated 6 and possess weaknesses that deserve management’s close attention. Special mention assets do not expose the Company to sufficient risk to warrant adverse classification in the substandard, doubtful or loss categories. Substandard credits are risk rated 7. An asset is considered substandard if it is inadequately protected by the current net worth and payment capacity of the borrower or of any collateral pledged. Substandard assets include those characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Assets classified as doubtful are risk rated 8 and have all the weaknesses inherent in those credits classified as substandard with the added characteristic that the weaknesses present make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions, and values. Assets classified as loss are risk rated 9 and are considered uncollectible and cannot be justified as a viable asset for the Company. There were no loans classified as doubtful or loss at September 30, 2017 and December 31, 2016. The following tables represent a summary of loans by type and risk category at the dates indicated:
_____________ (1) Net of LIP.
_____________ (1) Net of LIP. |
Other Real Estate Owned |
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Other Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Real Estate Owned | Other Real Estate Owned OREO includes properties acquired by the Company through foreclosure and deed in lieu of foreclosure. The following table is a summary of OREO activity during the periods shown:
There were no OREO properties sold during the three months ended September 30, 2017. During the nine months ended September 30, 2017, one OREO property sold for $461,000, generating a gain on sale of $5,000. For the three months ended September 30, 2017, there were no market value adjustments taken on OREO properties. During the nine months ended September 30, 2017, a $50,000 market value adjustment was recognized prior to the sale of the one OREO property sold during this period. OREO at September 30, 2017 consisted of $1.8 million in commercial real estate properties. At September 30, 2017, there were no loans secured by residential real estate properties for which formal foreclosure proceedings were in process. |
Fair Value |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company determines the fair values of its financial instruments based on the fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair values. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect its estimate for market assumptions. Valuation inputs refer to the assumptions market participants would use in pricing a given asset or liability using one of the three valuation techniques. Inputs can be observable or unobservable. Observable inputs are those assumptions that market participants would use in pricing the particular asset or liability. These inputs are based on market data and are obtained from an independent source. Unobservable inputs are assumptions based on the Company’s own information or estimate of assumptions used by market participants in pricing the asset or liability. Unobservable inputs are based on the best and most current information available on the measurement date. All inputs, whether observable or unobservable, are ranked in accordance with a prescribed fair value hierarchy:
The tables below present the balances of assets measured at fair value on a recurring basis (there were no transfers between Level 1, Level 2 and Level 3 recurring measurements) at September 30, 2017 and December 31, 2016:
The estimated fair value of Level 2 investments is based on quoted prices for similar investments in active markets, identical or similar investments in markets that are not active and model-derived valuations whose inputs are observable. The tables below present the balances of assets measured at fair value on a nonrecurring basis at September 30, 2017 and December 31, 2016:
_____________
_____________ (1) Total fair value of impaired loans is net of $309,000 of specific reserves on performing TDRs. The fair value of impaired loans is calculated using the collateral value method or on a discounted cash flow basis. Inputs used in the collateral value method include appraised values, less estimated costs to sell. Some of these inputs may not be observable in the marketplace. Appraised values may be discounted based on management’s knowledge of the marketplace, subsequent changes in market conditions, or management’s knowledge of the borrower. OREO properties are measured at the lower of their carrying amount or fair value, less estimated costs to sell. Fair values are generally based on third party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less estimated costs to sell, an impairment loss is recognized. The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at September 30, 2017 and December 31, 2016:
The carrying amounts and estimated fair values of financial instruments were as follows at the dates indicated:
Fair value estimates, methods, and assumptions are set forth below for the Company’s financial instruments:
Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business. The fair value has not been estimated for assets and liabilities that are not considered financial instruments. |
Stock-Based Compensation |
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Share-based Compensation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation In June 2016, First Financial Northwest’s shareholders approved the First Financial Northwest, Inc. 2016 Equity Incentive Plan (“2016 Plan”). This plan provides for the granting of incentive stock options (“ISO”), non-qualified stock options (“NQSO”), restricted stock and restricted stock units until June 2026. The 2016 Plan established 1,400,000 shares available to grant with a maximum of 400,000 of these shares available to grant as restricted stock awards. Each share issued as a restricted stock award counts as two shares towards the total shares available to award. Under the 2016 Plan, the vesting date for each option award or restricted stock award is determined by an award committee and specified in the award agreement. In the case of restricted stock awards granted in lieu of cash payments of directors’ fees, the grant date is used as the vesting date unless the award agreement provides otherwise. As a result of the approval of the 2016 Plan, the First Financial Northwest, Inc. 2008 Equity Incentive Plan (“2008 Plan”) was frozen and no additional awards will be made. As of June 30, 2016, there were 611,756 available stock options and 74,478 available restricted stock awards that are no longer available to be awarded under the 2008 Plan. Restricted stock awards and stock options that were granted under the 2008 Plan will continue to vest and be available for exercise, subject to the 2008 Plan provisions. At September 30, 2017, there were 1,351,028 total shares available for grant under the 2016 Plan, including 375,514 shares available to be granted as restricted stock. For the three months ended September 30, 2017 and 2016, total compensation expense for the Plan was $104,000 and $302,000, respectively, and the related income tax benefit was $36,000 and $106,000, respectively. For both the nine months ended September 30, 2017 and 2016, total compensation expense for the Plan was $505,000, and the related income tax benefit was $177,000. Included in the above compensation for the nine months ended September 30, 2017, directors’ compensation of $180,000 was recognized as a result of the awarding and vesting of restricted shares in lieu of cash payments of directors’ fees, with a related income tax benefit of $63,000. Stock Options Under the 2008 Plan, stock option awards were granted with an exercise price equal to the market price of First Financial Northwest’s common stock at the grant date. These option awards have a vesting period of five years, with 20% vesting on the anniversary date of each grant date, and a contractual life of 10 years. Any unexercised stock options expires ten years after the grant date, or sooner in the event of the award recipient’s death, disability or termination of service with the Company and the Bank. Under the 2016 Plan, the exercise price and vesting period for stock options are determined by the award committee and specified in the award agreement, however, the exercise price shall not be less than the fair market value of a share as of the grant date. Any unexercised stock option will expire 10 years after the award date or sooner in the event of the award recipient’s death, disability, retirement, or termination of service. The fair value of each option award is estimated on the grant date using a Black-Scholes model that uses the following assumptions. The dividend yield is based on the current quarterly dividend in effect at the time of the grant. Historical employment data is used to estimate the forfeiture rate. The historical volatility of the Company’s stock price over a specified period of time is used for the expected volatility assumption. First Financial Northwest bases the risk-free interest rate on the U.S. Treasury Constant Maturity Indices in effect on the date of the grant. First Financial Northwest elected to use the “Share-Based Payments” method permitted by the SEC to calculate the expected term. This method uses the vesting term of an option along with the contractual term, setting the expected life at the midpoint. Under certain conditions, a cashless exercise of vested stock options may occur by the option holder surrendering the number of options valued at the current stock price at the time of exercise to cover the total cost to exercise. The surrendered options are canceled and are unavailable for reissue. A summary of the Company’s stock option plan awards and activity for the three and nine months ended September 30, 2017, follows:
As of September 30, 2017, there was $329,000 of total unrecognized compensation cost related to nonvested stock options granted under the 2008 Plan. The cost is expected to be recognized over the remaining weighted-average vesting period of 2.09 years. There were no stock options granted during the nine months ended September 30, 2017 under either the 2008 Plan or 2016 Plan. Restricted Stock Awards The 2008 Plan authorized the grant of restricted stock awards to directors, advisory directors, officers and employees. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at the grant date. The restricted stock awards’ fair value is equal to the stock price on the grant date. Shares awarded under this plan as restricted stock vest ratably over a five-year period beginning at the grant date with 20% vesting on the anniversary date of each grant date. The 2016 Plan authorizes the grant of restricted stock awards subject to vesting periods or terms as defined by the award committee and specified in the award agreement. Restricted stock awards granted in lieu of cash payments for directors’ fees are subject to immediate vesting on the grant date unless the award agreement provides otherwise. A summary of changes in nonvested restricted stock awards for the three and nine months ended September 30, 2017, follows:
As of September 30, 2017, there was $44,000 of total unrecognized compensation costs related to nonvested shares granted as restricted stock awards. The cost is expected to be recognized over the remaining weighted-average vesting period of 0.75 years. |
Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Per the provisions of FASB ASC 260, Earnings Per Share, nonvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are participating securities and are included in the computation of EPS pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. ESOP shares are considered outstanding for basic and diluted earnings per share when the shares are committed to be released. Certain of the Company’s nonvested restricted stock awards qualify as participating securities. Net income is allocated between the common stock and participating securities pursuant to the two-class method, based on their rights to receive dividends, participate in earnings, or absorb losses. Basic earnings per common shares is computed by dividing net earnings available to common shareholders by the weighted-average number of common shares outstanding during the period, excluding participating nonvested restricted shares. The following table presents a reconciliation of the components used to compute basic and diluted earnings per share for the periods indicated:
Potential dilutive shares are excluded from the computation of earnings per share if their effect is anti-dilutive. For the three and nine months ended September 30, 2017, there were no options to purchase shares of common stock that were omitted from the computation of diluted earnings per share because their effect would be anti-dilutive. For the three and nine months ended September 30, 2016, there were no options and 60,000 options, respectively, to purchase additional shares of common stock excluded from the computation of diluted earnings per share because their effect would be anti-dilutive. |
Branch Acquisition (Notes) |
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Branch Acquisition | Branch Acquisition On August 25, 2017, First Financial Northwest Bank completed the acquisition of four branches from Opus Bank, a California state-chartered commercial bank (“Branch Acquisition”). The Branch Acquisition included four retail branches located in Woodinville, Clearview, Lake Stevens, and Smokey Point, Washington. The Bank acquired $74.7 million of retail deposits, prior to the fair value adjustment, one owned bank branch, three leased branches, and certain fixed assets at these branches. The purchase price of the Branch Acquisition paid by the Bank included a deposit premium of 3.125% of the average daily balance of acquired deposits for 20 days prior to the closing date, or $2.5 million; 80% of the fair market value of the owned branch, or $488,000; the net book value of fixed assets, or $56,000; and $14,000 for other pro rations and adjustments as of the closing date. The transaction was settled with Opus Bank paying the Bank in a preliminary settlement $71.6 million in cash for the difference between these amounts and the total deposits assumed, with a final settlement to occur in the fourth quarter of 2017. The Branch Acquisition was accounted for under the acquisition method of accounting, and accordingly, the assets received and liabilities assumed were recorded at their fair market value as of August 25, 2017. Determining the fair value of assets and liabilities is a complicated process involving significant judgment regarding methods and assumptions used to calculate estimated fair values. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition as additional information regarding the fair values as of the acquisition date become available. The excess cost over fair value of net assets acquired is recorded as goodwill. The application of the acquisition method of accounting resulted in recognition of a core deposit intangible asset (“CDI”) of $1.35 million and goodwill of $979,000. The acquired CDI has been determined to have a useful life of approximately ten years and will be amortized on an accelerated basis. Goodwill is not amortized but will be evaluated for impairment on an annual basis, or more often if circumstances dictate, to determine if the carrying value remains appropriate. The following table presents the estimated fair values of the assets received and liabilities assumed as of the acquisition date:
Fair value estimates for the acquisition are set forth as follows: (1) Premises and equipment: The fair value adjustment to fixed assets was the result of the markup of the building to the appraised value and the immediate disposal of certain fixed assets that were included with the purchase price. (2) Goodwill: The difference of the fair value of liabilities assumed and the fair value of assets acquired was recognized as goodwill and was calculated as of August 25, 2017 as follows:
(3) Core deposit intangible (“CDI”): The CDI represents the fair value of the acquired core deposits. The CDI will be amortized over ten years into noninterest expense, with amortization expense of $15,000 recognized for the three months ended September 30, 2017. Amortization expense of the CDI is expected as follows:
(4) Certificates of deposit: The fair value of acquired certificates of deposit was determined by a third-party valuation and will be amortized into interest expense over 2.25 to 5.25 years as follows:
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Investments (Tables) |
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Available-for-sale Securities | Investments available-for-sale are summarized as follows at the dates indicated:
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Schedule of Available for sale Securities in Continuous Unrealized Loss positions | The tables below summarize the aggregate fair value and gross unrealized loss by length of time those investment securities have been continuously in an unrealized loss position at the dates indicated:
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Schedule of Available for sale Securities, Debt Maturities |
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Loans Receivable: Schedule of Accounts, Notes, Loans and Financing Receivable (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans receivable are summarized as follows at the dates indicated:
At September 30, 2017, loans totaling $457.5 million were pledged to secure borrowings from the FHLB of Des Moines compared to $472.1 million at December 31, 2016. |
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Schedule of Allowance for Loan and Lease Losses, Roll Forward | The following tables summarize changes in the ALLL and loan portfolio by loan type and impairment method at the dates and for the periods shown:
____________ (1) Net of LIP. (2) Loans collectively evaluated for general reserves. (3) Loans individually evaluated for specific reserves.
_____________ (1) Net of LIP. (2) Loans collectively evaluated for general reserves. (3) Loans individually evaluated for specific reserves. |
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Financing Receivables, Aging of loans | The following tables represent a summary of the aging of loans by type at the dates indicated:
________________ (1) There were no loans 90 days and greater past due and still accruing interest at September 30, 2017. (2) Net of LIP.
_________________ (1) There were no loans 90 days and greater past due and still accruing interest at December 31, 2016. (2) Net of LIP. |
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Schedule of non-accrual loans | The following table is a summary of nonaccrual loans by loan type at the dates indicated:
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Financing Receivables, Summary of loans by type and payment activity | The following tables summarize the loan portfolio by type and payment status at the dates indicated:
_____________
_____________ (1) Net of LIP. (2) There were $137.0 million of owner-occupied one-to-four family residential loans and $111.6 million of non-owner occupied one-to-four family residential loans classified as performing. (3) The $798,000 of one-to-four family residential loans classified as nonperforming are all owner-occupied. |
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Schedule Of Impaired Financing Receivables | The following tables present a summary of loans individually evaluated for impairment by loan type at the dates indicated:
_________________ (1) Represents the loan balance less charge-offs. (2) Contractual loan principal balance.
_________________ (1) Represents the loan balance less charge-offs. (2) Contractual loan principal balance. |
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Schedule of Impaired Financing Receivables, Average Recorded Investment and Interest Income | The following table presents the average recorded investment in loans individually evaluated for impairment and the interest income recognized for the three and nine months ended September 30, 2017 and 2016:
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Troubled Debt Restructurings on Financing Receivables | :
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Financing Receivables, Summary of loans by type and risk category | The following tables represent a summary of loans by type and risk category at the dates indicated:
_____________ (1) Net of LIP.
_____________ (1) Net of LIP. |
Other Real Estate Owned (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Other Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Real Estate, Roll Forward | The following table is a summary of OREO activity during the periods shown:
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Fair Value (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | e tables below present the balances of assets measured at fair value on a recurring basis (there were no transfers between Level 1, Level 2 and Level 3 recurring measurements) at September 30, 2017 and December 31, 2016:
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Schedule of balances of assets and liabilities, measured at fair value on a non-recurring basis | e tables below present the balances of assets measured at fair value on a nonrecurring basis at September 30, 2017 and December 31, 2016:
_____________
_____________ (1) Total fair value of impaired loans is net of $309,000 of specific reserves on performing TDRs. |
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Schedule of quantitative information about Level 3 Fair Value Measurements on a nonrecurring basis | e following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at September 30, 2017 and December 31, 2016:
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Fair Value, by Balance Sheet Grouping | e carrying amounts and estimated fair values of financial instruments were as follows at the dates indicated:
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Stock-Based Compensation (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | A summary of changes in nonvested restricted stock awards for the three and nine months ended September 30, 2017, follows:
A summary of the Company’s stock option plan awards and activity for the three and nine months ended September 30, 2017, follows:
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Earnings Per Share: Schedule of Earnings Per Share Reconciliation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share Reconciliation | The following table presents a reconciliation of the components used to compute basic and diluted earnings per share for the periods indicated:
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Branch Acquisition (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | The following table presents the estimated fair values of the assets received and liabilities assumed as of the acquisition date:
Fair value estimates for the acquisition are set forth as follows: (1) Premises and equipment: The fair value adjustment to fixed assets was the result of the markup of the building to the appraised value and the immediate disposal of certain fixed assets that were included with the purchase price. (2) Goodwill: The difference of the fair value of liabilities assumed and the fair value of assets acquired was recognized as goodwill and was calculated as of August 25, 2017 as follows:
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Certificates of deposit: The fair value of acquired certificates of deposit was determined by a third-party valuation and will be amortized into interest expense over 2.25 to 5.25 years as follows:
Amortization expense of the CDI is expected as follows:
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Description of Business (Narrative) (Details) $ in Millions |
Aug. 25, 2017
USD ($)
|
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Opus Bank [Member] | |
Business Acquisition [Line Items] | |
Retail deposits | $ 74.7 |
Investments: Narrative (Details) |
3 Months Ended | 9 Months Ended | |||
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Sep. 30, 2017
USD ($)
securities
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Sep. 30, 2016
USD ($)
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Sep. 30, 2017
USD ($)
securities
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Sep. 30, 2016
USD ($)
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Dec. 31, 2016
USD ($)
securities
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Schedule of Available-for-sale Securities [Line Items] | |||||
Investments pledged as collateral for FHLB advances | 50.00% | 50.00% | |||
Investments pledged as collateral for public deposits | $ 20,800,000 | $ 20,800,000 | $ 22,600,000 | ||
Principal repayments on investments available-for-sale | 2,800,000 | $ 24,500,000 | 7,500,000 | $ 24,900,000 | |
Net gain (loss) on sale of investments | $ (47,000) | $ (33,000) | $ (103,000) | (33,000) | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | securities | 15 | 15 | 4 | ||
Unrealized Loss | securities | 45 | 45 | 53 | ||
Proceeds from Sale of Available-for-sale Securities, Debt | 0 | ||||
Payments to Acquire Marketable Securities | $ 23,518,000 | $ 40,522,000 |
Investments: Schedule of Available for sale Securities, Debt Maturities (Details) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
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Investments [Abstract] | ||
Due within one year, Amortized Cost | $ 6,562 | |
Due after one year through five years, Amortized Cost | 3,953 | |
Due after five years through ten years, Amortized Cost | 23,068 | |
Due after ten years, Amortized Cost | 22,756 | |
Debt maturities, Amortized Cost | 56,339 | |
Mortgage-backed investments, Amortized Cost | 82,160 | |
Amortized Cost | 138,499 | $ 130,852 |
Due within one year, Fair Value | 6,572 | |
Due after one year through five years, Fair Value | 3,963 | |
Due after five years through ten years, Fair Value | 23,175 | |
Due after ten years, Fair Value | 22,968 | |
Debt maturities, Fair Value | 56,678 | |
Mortgage-backed investments, Fair Value | 81,169 | |
Fair Value | $ 137,847 |
Loans Receivable: Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Jun. 30, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Dec. 31, 2015 |
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Loans receivable | $ 1,036,774 | $ 900,187 | |||||||
Loans in process (LIP) | 91,316 | 72,026 | |||||||
Deferred loan fees, net | 1,486 | 2,167 | |||||||
ALLL | 12,110 | 10,951 | |||||||
Loans receivable, net | 931,862 | 815,043 | |||||||
One-to-four family, residential, owner occupied | |||||||||
Loans receivable | 139,736 | 137,834 | |||||||
One to four family residential non owner occupied | |||||||||
Loans receivable | 126,711 | 111,601 | |||||||
One to Four Family | |||||||||
Loans receivable | 266,447 | 249,435 | |||||||
One to four family residential | |||||||||
ALLL | 2,717 | $ 2,627 | 2,551 | $ 2,687 | $ 2,747 | $ 3,028 | |||
Multifamily | |||||||||
Loans receivable | 173,681 | 123,250 | |||||||
ALLL | 1,703 | 1,231 | 1,199 | 979 | 1,194 | 1,193 | |||
Commercial Real Estate | |||||||||
Loans receivable | 320,416 | 303,694 | |||||||
ALLL | 3,743 | 3,733 | 3,893 | 4,257 | 3,771 | 3,395 | |||
Construction/Land Development One-to-four family residential | |||||||||
Loans receivable | 85,593 | 67,842 | |||||||
Construction Land Development Multifamily | |||||||||
Loans receivable | [1] | 115,345 | 111,051 | ||||||
Construction Land Development Commercial [Member] | |||||||||
Loans receivable | [1] | 5,325 | 0 | ||||||
Construction Land Development Land Development | |||||||||
Loans receivable | [1] | 38,423 | 30,055 | ||||||
Construction Land Development | |||||||||
Loans receivable | [1] | 244,686 | 208,948 | ||||||
ALLL | 2,982 | 2,942 | 2,792 | 2,558 | 1,880 | 1,193 | |||
Business | |||||||||
Loans receivable | 22,243 | 7,938 | |||||||
ALLL | 668 | 457 | 237 | 242 | 217 | 229 | |||
Consumer | |||||||||
Loans receivable | 9,301 | 6,922 | |||||||
ALLL | 297 | 295 | 279 | 283 | 325 | 425 | |||
Property total | |||||||||
ALLL | $ 12,110 | $ 11,285 | $ 10,951 | $ 11,006 | $ 10,134 | $ 9,463 | |||
|
Loans Receivable Loans Receivable: Schedule of non accrual loans by type (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 22,173 | $ 36,319 | $ 25,640 | $ 38,642 | |
Nonaccrual Loans, total | 185 | 185 | $ 858 | ||
One to Four Family | |||||
Nonaccrual Loans, total | 132 | 132 | 798 | ||
Consumer | |||||
Nonaccrual Loans, total | $ 53 | $ 53 | $ 60 |
Loans Receivable: Financing Receivables, Summary of loans by type and risk category (Details) - USD ($) |
Sep. 30, 2017 |
Dec. 31, 2016 |
||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
One to four family residential | ||||||||||||||||||||||||||||
Financing Receivable, Net | $ 266,447,000 | $ 249,435,000 | ||||||||||||||||||||||||||
Multifamily | ||||||||||||||||||||||||||||
Financing Receivable, Net | 173,681,000 | [1],[2] | 123,250,000 | [3],[4] | ||||||||||||||||||||||||
Commercial Real Estate | ||||||||||||||||||||||||||||
Financing Receivable, Net | 319,872,000 | [1],[2] | 303,694,000 | [3],[4] | ||||||||||||||||||||||||
Construction Land Development | ||||||||||||||||||||||||||||
Financing Receivable, Net | 153,914,000 | [1],[2] | 136,922,000 | [3],[4] | ||||||||||||||||||||||||
Business | ||||||||||||||||||||||||||||
Financing Receivable, Net | 22,243,000 | [1],[2] | 7,938,000 | [3],[4] | ||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
Financing Receivable, Net | 9,301,000 | [1],[2] | 6,922,000 | [3],[4] | ||||||||||||||||||||||||
Property total | ||||||||||||||||||||||||||||
Financing Receivable, Net | 945,458,000 | [1],[2],[5],[6] | 828,161,000 | [3],[4],[7],[8] | ||||||||||||||||||||||||
One-to-four family, residential, owner occupied | ||||||||||||||||||||||||||||
Financing Receivable, Net | 139,736,000 | [1],[2] | 137,834,000 | [3],[4] | ||||||||||||||||||||||||
One to four family residential non owner occupied | ||||||||||||||||||||||||||||
Financing Receivable, Net | 126,711,000 | [1],[2] | 111,601,000 | [3],[4] | ||||||||||||||||||||||||
Performing Financing Receivable | One to four family residential | ||||||||||||||||||||||||||||
Financing Receivable, Net | 266,315,000 | [9] | 248,637,000 | [10] | ||||||||||||||||||||||||
Performing Financing Receivable | Multifamily | ||||||||||||||||||||||||||||
Financing Receivable, Net | 173,681,000 | [9] | 123,250,000 | [10] | ||||||||||||||||||||||||
Performing Financing Receivable | Commercial Real Estate | ||||||||||||||||||||||||||||
Financing Receivable, Net | 319,872,000 | [9] | 303,694,000 | [10] | ||||||||||||||||||||||||
Performing Financing Receivable | Construction Land Development | ||||||||||||||||||||||||||||
Financing Receivable, Net | 153,914,000 | [9] | 136,922,000 | [10] | ||||||||||||||||||||||||
Performing Financing Receivable | Business | ||||||||||||||||||||||||||||
Financing Receivable, Net | 22,243,000 | [9] | 7,938,000 | [10] | ||||||||||||||||||||||||
Performing Financing Receivable | Consumer | ||||||||||||||||||||||||||||
Financing Receivable, Net | 9,248,000 | [9] | 6,862,000 | [10] | ||||||||||||||||||||||||
Performing Financing Receivable | Property total | ||||||||||||||||||||||||||||
Financing Receivable, Net | 945,273,000 | [5],[9] | 827,303,000 | [8],[10] | ||||||||||||||||||||||||
Performing Financing Receivable | One-to-four family, residential, owner occupied | ||||||||||||||||||||||||||||
Financing Receivable, Net | 139,600,000 | 137,000,000 | ||||||||||||||||||||||||||
Performing Financing Receivable | One to four family residential non owner occupied | ||||||||||||||||||||||||||||
Financing Receivable, Net | 126,700,000 | 111,600,000 | ||||||||||||||||||||||||||
Nonperforming Financing Receivable | One to four family residential | ||||||||||||||||||||||||||||
Financing Receivable, Net | 132,000 | [11] | 798,000 | [12] | ||||||||||||||||||||||||
Nonperforming Financing Receivable | Multifamily | ||||||||||||||||||||||||||||
Financing Receivable, Net | 0 | [11] | 0 | [12] | ||||||||||||||||||||||||
Nonperforming Financing Receivable | Commercial Real Estate | ||||||||||||||||||||||||||||
Financing Receivable, Net | 0 | [11] | 0 | [12] | ||||||||||||||||||||||||
Nonperforming Financing Receivable | Construction Land Development | ||||||||||||||||||||||||||||
Financing Receivable, Net | 0 | [11] | 0 | [12] | ||||||||||||||||||||||||
Nonperforming Financing Receivable | Business | ||||||||||||||||||||||||||||
Financing Receivable, Net | 0 | [11] | 0 | [12] | ||||||||||||||||||||||||
Nonperforming Financing Receivable | Consumer | ||||||||||||||||||||||||||||
Financing Receivable, Net | 53,000 | [11] | 60,000 | [12] | ||||||||||||||||||||||||
Nonperforming Financing Receivable | Property total | ||||||||||||||||||||||||||||
Financing Receivable, Net | 185,000 | [5],[11] | 858,000 | [8],[12] | ||||||||||||||||||||||||
Nonperforming Financing Receivable | One-to-four family, residential, owner occupied | ||||||||||||||||||||||||||||
Financing Receivable, Net | 132,000 | 798,000 | ||||||||||||||||||||||||||
Pass | One to four family residential | ||||||||||||||||||||||||||||
Financing Receivable, Net | 262,951,000 | 245,237,000 | ||||||||||||||||||||||||||
Pass | Multifamily | ||||||||||||||||||||||||||||
Financing Receivable, Net | 173,681,000 | 123,250,000 | ||||||||||||||||||||||||||
Pass | Commercial Real Estate | ||||||||||||||||||||||||||||
Financing Receivable, Net | 317,396,000 | 300,655,000 | ||||||||||||||||||||||||||
Pass | Construction Land Development | ||||||||||||||||||||||||||||
Financing Receivable, Net | 153,914,000 | 136,427,000 | ||||||||||||||||||||||||||
Pass | Business | ||||||||||||||||||||||||||||
Financing Receivable, Net | 22,243,000 | 7,938,000 | ||||||||||||||||||||||||||
Pass | Consumer | ||||||||||||||||||||||||||||
Financing Receivable, Net | 9,060,000 | 6,674,000 | ||||||||||||||||||||||||||
Pass | Property total | ||||||||||||||||||||||||||||
Financing Receivable, Net | 939,245,000 | [6] | 820,181,000 | [7] | ||||||||||||||||||||||||
Special Mention | One to four family residential | ||||||||||||||||||||||||||||
Financing Receivable, Net | 2,817,000 | 2,847,000 | ||||||||||||||||||||||||||
Special Mention | Multifamily | ||||||||||||||||||||||||||||
Financing Receivable, Net | 0 | 0 | ||||||||||||||||||||||||||
Special Mention | Commercial Real Estate | ||||||||||||||||||||||||||||
Financing Receivable, Net | 2,476,000 | 3,039,000 | ||||||||||||||||||||||||||
Special Mention | Construction Land Development | ||||||||||||||||||||||||||||
Financing Receivable, Net | 0 | 0 | ||||||||||||||||||||||||||
Special Mention | Business | ||||||||||||||||||||||||||||
Financing Receivable, Net | 0 | 0 | ||||||||||||||||||||||||||
Special Mention | Consumer | ||||||||||||||||||||||||||||
Financing Receivable, Net | 188,000 | 188,000 | ||||||||||||||||||||||||||
Special Mention | Property total | ||||||||||||||||||||||||||||
Financing Receivable, Net | 5,481,000 | [6] | 6,074,000 | [7] | ||||||||||||||||||||||||
Substandard | One to four family residential | ||||||||||||||||||||||||||||
Financing Receivable, Net | 679,000 | 1,351,000 | ||||||||||||||||||||||||||
Substandard | Multifamily | ||||||||||||||||||||||||||||
Financing Receivable, Net | 0 | 0 | ||||||||||||||||||||||||||
Substandard | Commercial Real Estate | ||||||||||||||||||||||||||||
Financing Receivable, Net | 0 | 0 | ||||||||||||||||||||||||||
Substandard | Construction Land Development | ||||||||||||||||||||||||||||
Financing Receivable, Net | 0 | 495,000 | ||||||||||||||||||||||||||
Substandard | Business | ||||||||||||||||||||||||||||
Financing Receivable, Net | 0 | 0 | ||||||||||||||||||||||||||
Substandard | Consumer | ||||||||||||||||||||||||||||
Financing Receivable, Net | 53,000 | 60,000 | ||||||||||||||||||||||||||
Substandard | Property total | ||||||||||||||||||||||||||||
Financing Receivable, Net | $ 732,000 | [6] | $ 1,906,000 | [7] | ||||||||||||||||||||||||
|
Loans Receivable: Schedule of Impaired Financing Receivables (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
||||||||||||||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | $ 16,986 | $ 26,133 | $ 19,499 | $ 27,314 | ||||||||||||||||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 250 | 413 | 751 | 1,165 | ||||||||||||||||
Impaired Financing Receivable, Recorded Investment | 19,603 | [1] | 19,603 | [1] | $ 30,632 | [2] | ||||||||||||||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 5,187 | 10,186 | 6,141 | 11,328 | ||||||||||||||||
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 67 | 161 | 181 | 446 | ||||||||||||||||
Impaired Financing Receivable, Average Recorded Investment | 22,173 | 36,319 | 25,640 | 38,642 | ||||||||||||||||
Impaired Financing Receivable, Interest Income, Accrual Method | 317 | 574 | 932 | 1,611 | ||||||||||||||||
One-to-four family, residential, owner occupied | ||||||||||||||||||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,334 | [3] | 1,334 | [3] | 2,216 | [4] | ||||||||||||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,527 | [5] | 1,527 | [5] | 2,475 | [6] | ||||||||||||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 524 | [3] | 524 | [3] | 1,896 | [4] | ||||||||||||||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 570 | [5] | 570 | [5] | 1,965 | [6] | ||||||||||||||
Impaired Financing Receivable, Related Allowance | 8 | 8 | 51 | |||||||||||||||||
Impaired Financing Receivable, Recorded Investment | 1,858 | [3] | 1,858 | [3] | 4,112 | [4] | ||||||||||||||
Impaired Financing Receivable, Unpaid Principal Balance | 2,097 | [5] | 2,097 | [5] | 4,440 | [6] | ||||||||||||||
One to four family residential non owner occupied | ||||||||||||||||||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 10,125 | [3] | 10,125 | [3] | 16,634 | [4] | ||||||||||||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 10,125 | [5] | 10,125 | [5] | 16,652 | [6] | ||||||||||||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 3,323 | [3] | 3,323 | [3] | 4,326 | [4] | ||||||||||||||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 3,345 | [5] | 3,345 | [5] | 4,347 | [6] | ||||||||||||||
Impaired Financing Receivable, Related Allowance | 127 | 127 | 151 | |||||||||||||||||
Impaired Financing Receivable, Recorded Investment | 13,448 | [3] | 13,448 | [3] | 20,960 | [4] | ||||||||||||||
Impaired Financing Receivable, Unpaid Principal Balance | 13,470 | [5] | 13,470 | [5] | 20,999 | [6] | ||||||||||||||
Multifamily | ||||||||||||||||||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,140 | 1,140 | 1,564 | [4] | ||||||||||||||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,140 | 1,140 | 1,564 | [4] | ||||||||||||||||
Impaired Financing Receivable, Related Allowance | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Impaired Financing Receivable, Recorded Investment | 1,140 | [3] | 1,140 | [3] | 1,564 | [4] | ||||||||||||||
Impaired Financing Receivable, Unpaid Principal Balance | 1,140 | [5] | 1,140 | [5] | 1,564 | [6] | ||||||||||||||
Commercial Real Estate | ||||||||||||||||||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,473 | [3] | 2,473 | [3] | 2,952 | [4] | ||||||||||||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 2,473 | [5] | 2,473 | [5] | 3,029 | [6] | ||||||||||||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 743 | [3] | 743 | [3] | 755 | [4] | ||||||||||||||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 743 | [5] | 743 | [5] | 755 | [6] | ||||||||||||||
Impaired Financing Receivable, Related Allowance | 20 | 107 | 20 | 107 | 26 | |||||||||||||||
Impaired Financing Receivable, Recorded Investment | 3,216 | [3] | 3,216 | [3] | 3,707 | [4] | ||||||||||||||
Impaired Financing Receivable, Unpaid Principal Balance | 3,216 | [5] | 3,216 | [5] | 3,784 | [6] | ||||||||||||||
Consumer | ||||||||||||||||||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 96 | [3] | 96 | [3] | 103 | [4] | ||||||||||||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 144 | [5] | 144 | [5] | 223 | [6] | ||||||||||||||
Impaired Financing Receivable, Related Allowance | 0 | 0 | 0 | |||||||||||||||||
Impaired Financing Receivable, Recorded Investment | 96 | [3] | 96 | [3] | 103 | [4] | ||||||||||||||
Impaired Financing Receivable, Unpaid Principal Balance | 144 | [5] | 144 | [5] | 223 | [6] | ||||||||||||||
Construction Land Development [Member] | ||||||||||||||||||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 495 | |||||||||||||||||||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 495 | |||||||||||||||||||
Impaired Financing Receivable, Related Allowance | 0 | 81 | 0 | 81 | 81 | |||||||||||||||
Impaired Financing Receivable, Recorded Investment | 495 | |||||||||||||||||||
Impaired Financing Receivable, Unpaid Principal Balance | 495 | |||||||||||||||||||
Property total | ||||||||||||||||||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 15,168 | [3] | 15,168 | [3] | 23,469 | [4] | ||||||||||||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 15,409 | [5] | 15,409 | [5] | 23,943 | [6] | ||||||||||||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 4,590 | [3] | 4,590 | [3] | 7,472 | [4] | ||||||||||||||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 4,658 | [5] | 4,658 | [5] | 7,562 | [6] | ||||||||||||||
Impaired Financing Receivable, Related Allowance | 155 | $ 506 | 155 | $ 506 | 309 | |||||||||||||||
Impaired Financing Receivable, Recorded Investment | 19,758 | [3] | 19,758 | [3] | 30,941 | [4] | ||||||||||||||
Impaired Financing Receivable, Unpaid Principal Balance | $ 20,067 | [5] | $ 20,067 | [5] | $ 31,505 | [6] | ||||||||||||||
|
Loans Receivable: Average Recorded Investment and Interest Income Recognized (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Accounts, Notes, Loans and Financing Receivable | ||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | $ 16,986 | $ 26,133 | $ 19,499 | $ 27,314 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 250 | 413 | 751 | 1,165 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 5,187 | 10,186 | 6,141 | 11,328 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 67 | 161 | 181 | 446 |
Impaired Financing Receivable, Average Recorded Investment | 22,173 | 36,319 | 25,640 | 38,642 |
Impaired Financing Receivable, Interest Income, Accrual Method | 317 | 574 | 932 | 1,611 |
One-to-four family, residential, owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,658 | 2,434 | 1,886 | 2,679 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 22 | 57 | 69 | 123 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,099 | 2,003 | 1,495 | 2,042 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 10 | 28 | 22 | 78 |
Impaired Financing Receivable, Average Recorded Investment | 2,757 | 4,437 | 3,381 | 4,721 |
Impaired Financing Receivable, Interest Income, Accrual Method | 32 | 85 | 91 | 201 |
One to four family residential non owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 11,395 | 20,208 | 13,445 | 21,234 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 158 | 296 | 485 | 878 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 3,343 | 5,050 | 3,773 | 5,874 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 47 | 76 | 128 | 202 |
Impaired Financing Receivable, Average Recorded Investment | 14,738 | 25,258 | 17,218 | 27,108 |
Impaired Financing Receivable, Interest Income, Accrual Method | 205 | 372 | 613 | 1,080 |
Multifamily | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,143 | 1,576 | 1,251 | 1,189 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 19 | 26 | 56 | 79 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 0 | 393 | ||
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 0 | 0 | ||
Impaired Financing Receivable, Average Recorded Investment | 1,143 | 1,576 | 1,251 | 1,582 |
Impaired Financing Receivable, Interest Income, Accrual Method | 19 | 26 | 56 | 79 |
Commercial Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 2,693 | 1,796 | 2,818 | 2,089 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 49 | 31 | 135 | 77 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 745 | 2,638 | 749 | 2,499 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 10 | 52 | 31 | 152 |
Impaired Financing Receivable, Average Recorded Investment | 3,438 | 4,434 | 3,567 | 4,588 |
Impaired Financing Receivable, Interest Income, Accrual Method | 59 | 83 | 166 | 229 |
Consumer Loan | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 97 | 119 | 99 | 123 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 2 | 3 | 6 | 8 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 0 | 25 | ||
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 0 | 0 | ||
Impaired Financing Receivable, Average Recorded Investment | 97 | 119 | 99 | 148 |
Impaired Financing Receivable, Interest Income, Accrual Method | 2 | 3 | 6 | 8 |
Construction Land Development | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 0 | 495 | 124 | 495 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 0 | 5 | 0 | 14 |
Impaired Financing Receivable, Average Recorded Investment | 0 | 495 | 124 | 495 |
Impaired Financing Receivable, Interest Income, Accrual Method | $ 0 | $ 5 | $ 0 | $ 14 |
Loans Receivable: Troubled Debt Restructurings on Financing Receivables (Details) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2017
USD ($)
loan
|
Sep. 30, 2016
USD ($)
loan
|
Sep. 30, 2017
USD ($)
loan
|
Sep. 30, 2016
USD ($)
loan
|
Dec. 31, 2016
USD ($)
|
|
Financing Receivable, Modifications, Recorded Investment | $ 19,600,000 | $ 19,600,000 | $ 30,300,000 | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 174,000 | ||||
Troubled Debt Restructuring Commitment To Extend Additional Credit | $ 0 | $ 0 | $ 0 | $ 0 | |
Number of Loans | loan | 1 | 7 | 8 | 22 | |
Pre-Modifications Outstanding Recorded Investment | $ 524,000 | $ 1,869,000 | $ 2,492 | $ 5,538,000 | |
Post-Modifications Outstanding Recorded Investment | 524,000 | $ 1,869,000 | 2,492 | $ 5,538,000 | |
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 0 | $ 0 | |||
One to four family residential [Member] | Principal and interest with interest rate concession and advancement of maturity date | |||||
Number of Loans | loan | 1 | 1 | 8 | 15 | |
Pre-Modifications Outstanding Recorded Investment | $ 524,000 | $ 316,000 | $ 2,492 | $ 3,490,000 | |
Post-Modifications Outstanding Recorded Investment | $ 524,000 | $ 316,000 | $ 2,492 | $ 3,490,000 | |
One to four family residential [Member] | Advancement of Maturity Date [Member] | |||||
Number of Loans | loan | 5 | ||||
Pre-Modifications Outstanding Recorded Investment | $ 1,119,000 | ||||
Post-Modifications Outstanding Recorded Investment | $ 1,119,000 | ||||
Commercial Real Estate | Advancement of Maturity Date [Member] | |||||
Number of Loans | loan | 1 | ||||
Pre-Modifications Outstanding Recorded Investment | $ 434,000 | ||||
Post-Modifications Outstanding Recorded Investment | $ 434,000 | ||||
Commercial Real Estate | Advancement of maturity date | |||||
Number of Loans | loan | 0 | 1 | |||
Pre-Modifications Outstanding Recorded Investment | $ 0 | $ 495,000 | |||
Post-Modifications Outstanding Recorded Investment | $ 0 | $ 495,000 | |||
Minimum [Member] | |||||
Troubled Debt Restructuring, Interest Rate Concession Period | 1 year | 1 year | 1 year | 1 year | |
Maximum [Member] | |||||
Troubled Debt Restructuring, Interest Rate Concession Period | 3 years | 3 years | 3 years | 3 years |
Other Real Estate Owned - Other Real Estate, Roll Forward (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Other Real Estate [Roll Forward] | ||||
Balance at beginning of period | $ 1,825,000 | $ 2,331,000 | $ 2,331,000 | $ 3,663,000 |
Gross proceeds from sale of OREO | 0 | 0 | (461,000) | (988,000) |
Gain on sale of OREO | 0 | 0 | 5,000 | (87,000) |
Market value adjustments | 0 | 0 | (50,000) | (257,000) |
Balance at end of period | $ 1,825,000 | $ 2,331,000 | $ 1,825,000 | $ 2,331,000 |
Other Real Estate Owned (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Jun. 30, 2017 |
Dec. 31, 2016 |
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Other Real Estate, Disposals | $ 0 | $ 461,000 | ||||||
Gains (Losses) on Sales of Other Real Estate | 0 | $ 0 | 5,000 | $ (87,000) | ||||
Other Real Estate, Valuation Adjustments | 0 | 0 | 50,000 | 257,000 | ||||
Proceeds from sales of OREO properties | 0 | 0 | 461,000 | 988,000 | ||||
Other Real Estate | 1,825,000 | $ 2,331,000 | 1,825,000 | $ 2,331,000 | $ 1,825,000 | $ 2,331,000 | $ 2,331,000 | $ 3,663,000 |
Commercial Real Estate | ||||||||
Other Real Estate | $ 1,800,000 | $ 1,800,000 |
Fair Value (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Dec. 31, 2016 |
|
Specific reserves on performing TDRs | $ 155,000 | $ 309,000 |
Loans Receivable | ||
Fair value, option, methodology and assumptions | The fair value of impaired loans is calculated using the collateral value method or on a discounted cash flow basis. Inputs used in the collateral value method include appraised values, less estimated costs to sell. Some of these inputs may not be observable in the marketplace. |
Fair Value: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Investments, fair value disclosure | $ 137,847 | $ 129,260 |
Derivative Asset, Fair Value, Gross Asset | 1,118 | 1,333 |
Assets, Fair Value Disclosure, Recurring | 138,965 | 130,593 |
Mortgage-backed investments, Fannie Mae | ||
Investments, fair value disclosure | 46,661 | 41,332 |
Mortgage-backed investments, Freddie Mac | ||
Investments, fair value disclosure | 15,089 | 18,009 |
Mortgage-backed investments, Ginnie Mae | ||
Investments, fair value disclosure | 19,419 | 18,634 |
Municipal Bonds | ||
Investments, fair value disclosure | 14,227 | 13,107 |
US Government agencies | ||
Investments, fair value disclosure | 19,792 | 15,857 |
Corporate Bonds | ||
Investments, fair value disclosure | 22,659 | 22,321 |
Derivative Financial Instruments, Assets [Member] | ||
Derivative Asset, Fair Value, Gross Asset | 1,118 | 1,333 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Investments, fair value disclosure | 0 | 0 |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed investments, Fannie Mae | ||
Investments, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed investments, Freddie Mac | ||
Investments, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed investments, Ginnie Mae | ||
Investments, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal Bonds | ||
Investments, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | US Government agencies | ||
Investments, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate Bonds | ||
Investments, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative Financial Instruments, Assets [Member] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Investments, fair value disclosure | 137,847 | 129,260 |
Derivative Asset, Fair Value, Gross Asset | 1,118 | 1,333 |
Assets, Fair Value Disclosure, Recurring | 138,965 | 130,593 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed investments, Fannie Mae | ||
Investments, fair value disclosure | 46,661 | 41,332 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed investments, Freddie Mac | ||
Investments, fair value disclosure | 15,089 | 18,009 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed investments, Ginnie Mae | ||
Investments, fair value disclosure | 19,419 | 18,634 |
Significant Other Observable Inputs (Level 2) | Municipal Bonds | ||
Investments, fair value disclosure | 14,227 | 13,107 |
Significant Other Observable Inputs (Level 2) | US Government agencies | ||
Investments, fair value disclosure | 19,792 | 15,857 |
Significant Other Observable Inputs (Level 2) | Corporate Bonds | ||
Investments, fair value disclosure | 22,659 | 22,321 |
Significant Other Observable Inputs (Level 2) | Derivative Financial Instruments, Assets [Member] | ||
Derivative Asset, Fair Value, Gross Asset | 1,118 | 1,333 |
Significant Unobservable Inputs (Level 3) | ||
Investments, fair value disclosure | 0 | 0 |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mortgage-backed investments, Fannie Mae | ||
Investments, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mortgage-backed investments, Freddie Mac | ||
Investments, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mortgage-backed investments, Ginnie Mae | ||
Investments, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Municipal Bonds | ||
Investments, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | US Government agencies | ||
Investments, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate Bonds | ||
Investments, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Derivative Financial Instruments, Assets [Member] | ||
Derivative Asset, Fair Value, Gross Asset | $ 0 | $ 0 |
Fair Value: Schedule of balances of assets and liabilities, measured at fair value on a non-recurring basis (Details) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Jun. 30, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Dec. 31, 2015 |
||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Derivative Asset, Fair Value, Gross Asset | $ 1,118 | $ 1,333 | ||||||||||
Impaired loans (included in loans receivable, net) | 19,603 | [1] | 30,632 | [2] | ||||||||
OREO | 1,825 | $ 1,825 | 2,331 | $ 2,331 | $ 2,331 | $ 3,663 | ||||||
Total, Fair Value | 21,428 | 32,963 | ||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | ||||||||||
Impaired loans (included in loans receivable, net) | 0 | [1] | 0 | [2] | ||||||||
OREO | 0 | 0 | ||||||||||
Total, Fair Value | 0 | 0 | ||||||||||
Significant Other Observable Inputs (Level 2) | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 1,118 | 1,333 | ||||||||||
Impaired loans (included in loans receivable, net) | 0 | [1] | 0 | [2] | ||||||||
OREO | 0 | 0 | ||||||||||
Total, Fair Value | 0 | 0 | ||||||||||
Significant Unobservable Inputs (Level 3) | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | ||||||||||
Impaired loans (included in loans receivable, net) | 19,603 | [1] | 30,632 | [2] | ||||||||
OREO | 1,825 | 2,331 | ||||||||||
Total, Fair Value | $ 21,428 | $ 32,963 | ||||||||||
|
Fair Value: Schedule of quantitative information about Level 3 Fair Value Measurements on a nonrecurring basis (Details) - Level 3 - Market Approach Valuation Technique - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2017 |
Dec. 31, 2016 |
|
Loans Receivable | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair Value | $ 19,603 | $ 30,632 |
Fair Value Measurements, Valuation Techniques | Market approach | Market approach |
Unobservable Input(s) | Appraised value discounted by market or borrower conditions | Appraised value discounted by market or borrower conditions |
Loans Receivable | Minimum | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair value of financial instruments, range | 0.00% | 0.00% |
Loans Receivable | Maximum | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair value of financial instruments, range | 0.00% | 0.00% |
Loans Receivable | Weighted Average | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair value of financial instruments, range | 0.00% | 0.00% |
Other Real Estate Owned | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair Value | $ 1,825 | $ 2,331 |
Fair Value Measurements, Valuation Techniques | Market approach | Market approach |
Unobservable Input(s) | Appraised value less selling costs | Appraised value less selling costs |
Other Real Estate Owned | Minimum | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair value of financial instruments, range | 0.00% | 0.00% |
Other Real Estate Owned | Maximum | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair value of financial instruments, range | 0.00% | 0.00% |
Other Real Estate Owned | Weighted Average | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair value of financial instruments, range | 0.00% | 0.00% |
Fair Value: Balance Sheet Grouping (Details) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Investments available-for-sale | $ 137,847 | $ 129,260 |
FHLB stock | 8,902 | 8,031 |
Derivative Asset, Fair Value, Gross Asset | 1,118 | 1,333 |
Level 1 | ||
Cash on hand and in banks | 7,910 | 5,779 |
Interest-earning deposits with banks | 14,093 | 25,573 |
Investments available-for-sale | 0 | 0 |
Loans receivable, net | 0 | 0 |
FHLB stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Deposits | 394,127 | 285,335 |
Certificates of deposit, retail | 0 | 0 |
Certificates of deposit, brokered | 0 | 0 |
Advances from the FHLB | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level 2 | ||
Cash on hand and in banks | 0 | 0 |
Interest-earning deposits with banks | 0 | 0 |
Investments available-for-sale | 137,847 | 129,260 |
Loans receivable, net | 0 | 0 |
FHLB stock | 8,902 | 8,031 |
Accrued interest receivable | 3,709 | 3,147 |
Derivative Asset, Fair Value, Gross Asset | 1,118 | 1,333 |
Deposits | 0 | 0 |
Certificates of deposit, retail | 345,618 | 356,723 |
Certificates of deposit, brokered | 75,634 | 75,431 |
Advances from the FHLB | 189,805 | 170,221 |
Accrued interest payable | 280 | 231 |
Level 3 | ||
Cash on hand and in banks | 0 | 0 |
Interest-earning deposits with banks | 0 | 0 |
Investments available-for-sale | 0 | 0 |
Loans receivable, net | 930,838 | 818,054 |
FHLB stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Deposits | 0 | 0 |
Certificates of deposit, retail | 0 | 0 |
Certificates of deposit, brokered | 0 | 0 |
Advances from the FHLB | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Value | ||
Cash on hand and in banks | 7,910 | 5,779 |
Interest-earning deposits with banks | 14,093 | 25,573 |
Investments available-for-sale | 137,847 | 129,260 |
Loans receivable, net | 931,862 | 815,043 |
FHLB stock | 8,902 | 8,031 |
Accrued interest receivable | 3,709 | 3,147 |
Derivative Asset, Fair Value, Gross Asset | 1,118 | 1,333 |
Deposits | 394,127 | 285,335 |
Certificates of deposit, retail | 346,125 | 356,653 |
Certificates of deposit, brokered | 75,488 | 75,488 |
Advances from the FHLB | 191,500 | 171,500 |
Accrued interest payable | 280 | 231 |
Fair Value | ||
Cash on hand and in banks | 7,910 | 5,779 |
Interest-earning deposits with banks | 14,093 | 25,573 |
Investments available-for-sale | 137,847 | 129,260 |
Loans receivable, net | 930,838 | 818,054 |
FHLB stock | 8,902 | 8,031 |
Accrued interest receivable | 3,709 | 3,147 |
Derivative Asset, Fair Value, Gross Asset | 1,118 | 1,333 |
Deposits | 394,127 | 285,335 |
Certificates of deposit, retail | 345,618 | 356,723 |
Certificates of deposit, brokered | 75,634 | 75,431 |
Advances from the FHLB | 189,805 | 170,221 |
Accrued interest payable | $ 280 | $ 231 |
Derivatives (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended |
---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2017 |
Dec. 31, 2016 |
|
Derivative [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ 866,000 | $ 726,000 | $ 726,000 |
Derivative Asset, Fair Value, Gross Asset | 1,333,000 | 1,118,000 | 1,333,000 |
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | 0 | ||
FHLB of Des Moines [Member] | |||
Derivative [Line Items] | |||
Debt Instrument, Face Amount | 50,000,000.0 | 50,000,000.0 | |
Cash Flow Hedging [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 50,000,000 | 50,000,000 | |
Derivative Asset, Fair Value, Gross Asset | $ 1,333,000 | $ 1,118,000 | $ 1,333,000 |
Derivative, Fixed Interest Rate | 1.34% | 1.34% |
Stock-Based Compensation - Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
|
Allocated Share-based Compensation Expense | $ 104,000 | $ 302,000 | $ 505,000 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 36,000 | $ 106,000 | $ 177,000 |
First Financial Northwest Inc 2016 Equity Incentive Plan | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,400,000 | 1,400,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,351,028 | 1,351,028 | |
First Financial Northwest Inc 2016 Equity Incentive Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 400,000 | 400,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 375,514 | 375,514 | |
First Financial Northwest, Inc. 2008 Equity Incentive Plan | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 611,756 | 611,756 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Percentage Vesting Per Annum | 20.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
First Financial Northwest, Inc. 2008 Equity Incentive Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 74,478 | 74,478 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Percentage Vesting Per Annum | 20.00% | ||
Director [Member] | |||
Allocated Share-based Compensation Expense | $ 0 | $ 180,000 | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 0 | ||
Other Tax Expense (Benefit) | $ (63,000) |
Stock-Based Compensation Disclosure of Share-based Compensation Arrangements by Share-based Payment Award (Details) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2017
USD ($)
$ / shares
shares
|
Jun. 30, 2017
USD ($)
$ / shares
shares
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2017
USD ($)
$ / shares
shares
|
Dec. 31, 2016
USD ($)
$ / shares
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Outstanding Beginning Balance, Shares | 487,940 | 603,820 | |||
Exercised, Shares | (19,000) | (134,880) | |||
Outstanding Ending Balance, Shares | 452,940 | 487,940 | 452,940 | 603,820 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||||
Outstanding Beginning Balance, Weighted Average Exercise Price | $ / shares | $ 10.29 | $ 10.19 | |||
Exercised, Weighted Average Exercise Price | $ / shares | 9.23 | 9.70 | |||
Outstanding Ending Balance, Weighted Average Exercise Price | $ / shares | $ 10.21 | $ 10.29 | $ 10.21 | $ 10.19 | |
Share-based Compensations Arrangement by Share-based Payment Award, Options Outstanding, Weighted Average Remaining Contractual Term [Roll Forward] | |||||
Outstanding Beginning Balance, Weighted Average Remaining Contractual Term | 4 years 8 months 23 days | 4 years 8 months 23 days | |||
Outstanding Ending Balance, Weighted Average Remaining Contractual Term | 4 years 8 months 23 days | 4 years 8 months 23 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options Outstanding, Aggregate Intrinsic [Roll Forward] | |||||
Outstanding Beginning Balance, Aggregate Intrinsic Value | $ | $ 2,851,319 | $ 5,766,947 | |||
Exercised, Aggregate Intrinsic Value | $ | |||||
Outstanding Ending Balance, Aggregate Intrinsic Value | $ | $ 3,072,447 | $ 2,851,319 | $ 3,072,447 | $ 5,766,947 | |
Share Based Compensation, Stock Option Plan, Additional Disclosures [Abstract] | |||||
Expected to Vest, Shares | 449,880 | 449,880 | |||
Expected to Vest, Weighted Average Exercise Price | $ / shares | $ 10.20 | $ 10.20 | |||
Expected to Vest, Weighted Average Remaining Contractual Term in Years | 4 years 8 months 20 days | 4 years 8 months 20 days | |||
Expected to Vest, Aggregate Intrinsic Value | $ | $ 3,054,835 | $ 3,054,835 | |||
Exercisable at end of period, Shares | 350,940 | 350,940 | |||
Exercisable at end of period, Weighted Average Exercise Price | $ / shares | 9.91 | 9.91 | |||
Exercisable at end of period, Weighted Average Remaining Contractual Term in Years | 4 years 1 month 9 days | 4 years 1 month 10 days | |||
Exercisable at end of period, Aggregate Intrinsic Value | $ | $ 2,485,367 | $ 2,485,367 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 0 | ||||
Total compensation expense | $ | $ 104,000 | $ 302,000 | $ 505,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Granted in Period, Aggregate Intrinsic Value | $ | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 16,000 | 16,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ / shares | $ 13.80 | $ 13.80 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Aggregate Intrinsic Value | $ | |||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Estimated Forfeiture Rate | 3.00% | 3.00% | |||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Estimated Forfeiture Rate | 3.00% | 3.00% | |||
First Financial Northwest, Inc. 2008 Equity Incentive Plan | Stock Options | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 329,000 | $ 329,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Percentage Vesting Per Annum | 20.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not Yet Recognized, Weighted-Average Vesting Period | 2 years 1 month 3 days | ||||
First Financial Northwest, Inc. 2008 Equity Incentive Plan | Restricted Stock | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 44,000 | $ 44,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Nonvested Beginning Balance | 26,400 | 26,400 | |||
Granted, Shares | 10,434 | ||||
Vested, Shares | (15,000) | (25,434) | |||
Nonvested Ending Balance | 11,400 | 26,400 | 11,400 | 26,400 | |
Expected to vest assuming a 3% forfeiture rate over the vesting term, Shares | 11,058 | 11,058 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Nonvested Beginning Balance, Weighted-Average Grant Date Fair Value | $ / shares | $ 9.13 | $ 9.13 | |||
Granted, Weighted Average Grant Date Fair Value | $ / shares | |||||
Vested, Weighted-Average Grant Date Fair Value | $ / shares | 8.97 | 9.75 | |||
Nonvested Ending Balance, Weighted-Average Grant Date Fair Value | $ / shares | $ 9.34 | $ 9.13 | $ 9.34 | $ 9.13 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Percentage Vesting Per Annum | 20.00% | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not Yet Recognized, Weighted-Average Vesting Period | 9 months |
Earnings Per Share: Schedule of Earnings Per Share Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Earnings Per Share [Abstract] | ||||
Net income | $ 1,861 | $ 2,606 | $ 6,073 | $ 5,871 |
Less: Earnings allocated to participating securities | (2) | (7) | (6) | (16) |
Earnings allocated to common shareholders | $ 1,859 | $ 2,599 | $ 6,067 | $ 5,855 |
Basic weighted average common shares outstanding | 10,287,663 | 11,859,683 | 10,323,459 | 12,329,815 |
Dilutive stock options | 126,044 | 131,919 | 142,755 | 132,711 |
Dilutive restricted stock grants | 13,331 | 20,350 | 13,847 | 18,853 |
Diluted weighted average common shares outstanding | 10,427,038 | 12,011,952 | 10,480,061 | 12,481,379 |
Basic earnings (loss) per share (in dollars per share) | $ 0.18 | $ 0.22 | $ 0.59 | $ 0.47 |
Diluted earnings (loss) per share (in dollars per share) | $ 0.18 | $ 0.22 | $ 0.58 | $ 0.47 |
Earnings Per Share (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 0 | 0 | 60,000 |
Branch Acquisition (Narrative) (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Aug. 25, 2017 |
Sep. 30, 2017 |
Dec. 31, 2016 |
|
Business Acquisition [Line Items] | |||
Goodwill | $ 979,000 | $ 0 | |
Opus Bank [Member] | |||
Business Acquisition [Line Items] | |||
Retail deposits | $ 74,700,000 | ||
Deposit premium rate | 3.125% | ||
Deposit premium, amount | $ 2,500,000 | ||
Fair Value of The Branch Owned | 488,000 | ||
Fixed assets | 56,000 | ||
Adjustments at Closing Date | 14,000 | ||
Cash payment to acquire business | 71,600,000 | ||
Goodwill | 979,000 | ||
Core Deposits Intangible [Member] | Opus Bank [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 1,350,000 | ||
Goodwill | $ 979,000 |
Branch Acquisition (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Aug. 25, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 979 | $ 0 | |
Opus Bank [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 71,568 | ||
Premises and equipment, net | 663 | ||
Goodwill | 979 | ||
Core deposit intangible | 1,319 | ||
Total assets acquired | 74,529 | ||
Noninterest-bearing deposits | 11,995 | ||
Interest-bearing deposits | 62,534 | ||
Total deposits | 74,529 | ||
Total liabilities assumed | 74,529 | ||
Acquired Book Value | Opus Bank [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 71,568 | ||
Premises and equipment, net | 544 | ||
Goodwill | 0 | ||
Core deposit intangible | 0 | ||
Total assets acquired | 72,112 | ||
Noninterest-bearing deposits | 11,995 | ||
Interest-bearing deposits | 62,662 | ||
Total deposits | 74,657 | ||
Total liabilities assumed | 74,657 | ||
Fair Value Adjustments | Opus Bank [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 0 | ||
Premises and equipment, net | 119 | ||
Goodwill | 979 | ||
Core deposit intangible | 1,319 | ||
Total assets acquired | 2,417 | ||
Noninterest-bearing deposits | 0 | ||
Interest-bearing deposits | (128) | ||
Total deposits | (128) | ||
Total liabilities assumed | $ (128) |
Branch Acquisition (Fair Value) (Details) - USD ($) $ in Thousands |
Aug. 25, 2017 |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 979 | $ 0 | |
Opus Bank [Member] | |||
Business Acquisition [Line Items] | |||
Purchase price | $ 3,089 | ||
Cash and cash equivalents | 74,657 | ||
Premises and equipment, net | 663 | ||
Core deposit intangible | 1,319 | ||
Deposits | 74,529 | ||
Total fair value of identifiable net assets | 2,110 | ||
Goodwill | $ 979 |
Branch Acquisition (Amortization Expense) (Details) - Opus Bank [Member] |
Aug. 25, 2017
USD ($)
|
---|---|
Core Deposits Intangible [Member] | |
Business Acquisition [Line Items] | |
2017 | $ 53,000 |
2018 | 150,000 |
2019 | 148,000 |
2020 | 144,000 |
2021 | 140,000 |
Thereafter | 684,000 |
Total | $ 1,319,000 |
Amortization period | 10 years |
Amortization of intangible assets | $ 15,000 |
Certificates of Deposit [Member] | |
Business Acquisition [Line Items] | |
2017 | 21,000 |
2018 | 49,000 |
2019 | 30,000 |
2020 | 16,000 |
2021 | 9,000 |
Thereafter | 3,000 |
Total | $ 128,000 |
Minimum [Member] | Certificates of Deposit [Member] | |
Business Acquisition [Line Items] | |
Amortization period | 2 years 3 months |
Maximum [Member] | Certificates of Deposit [Member] | |
Business Acquisition [Line Items] | |
Amortization period | 5 years 3 months |
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