Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 05, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | First Financial Northwest, Inc. | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Entity Central Index Key | 1,401,564 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 11,035,791 | |
Entity Filer Category | Accelerated Filer | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
FIRST FINANCIAL NORTHWEST, INC.
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash on hand and in banks | $ 6,066 | $ 5,779 |
Interest-earning deposits with banks | 20,007 | 25,573 |
Investments available-for-sale, at fair value | 129,662 | 129,260 |
Loans receivable, net of allowance of $11,158 and $10,951 | 838,768 | 815,043 |
Federal Home Loan Bank (FHLB) stock, at cost | 8,102 | 8,031 |
Accrued interest receivable | 3,389 | 3,147 |
Deferred tax assets, net | 2,907 | 3,142 |
Other real estate owned (OREO) | 2,281 | 2,331 |
Premises and equipment, net | 18,912 | 18,461 |
Bank owned life insurance (BOLI), net | 27,534 | 24,153 |
Prepaid expenses and other assets | 2,892 | 2,664 |
Total assets | 1,060,520 | 1,037,584 |
Liabilities and Stockholders' Equity | ||
Noninterest-bearing deposits | 698,517 | 684,054 |
Interest-bearing deposits | 36,190 | 33,422 |
Total deposits | 734,707 | 717,476 |
FHLB Advances | 171,500 | 171,500 |
Advance payments from borrowers for taxes and insurance | 4,092 | 2,259 |
Accrued interest payable | 237 | 231 |
Other liabilities | 8,235 | 7,993 |
Total liabilities | 918,771 | 899,459 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Preferred stock, $0.01 par value; authorized 10,000,000 shares; no shares issued or outstanding | 0 | 0 |
Common stock, $0.01 par value; authorized 90,000,000 shares; issued and outstanding 11,035,791 shares at March 31, 2017, and 10,938,251 shares at December 31, 2016 | 110 | 109 |
Additional paid-in capital | 98,186 | 96,852 |
Retained earnings, substantially restricted | 50,702 | 48,981 |
Accumulated other comprehensive loss, net of tax | (1,042) | (1,328) |
Unearned Employee Stock Ownership Plan (ESOP) shares | (6,207) | (6,489) |
Total stockholders' equity | 141,749 | 138,125 |
Total liabilities and stockholders' equity | $ 1,060,520 | $ 1,037,584 |
FIRST FINANCIAL NORTHWEST, INC3
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Loans receivable allowance for loan losses | $ 11,158 | $ 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) | 11,035,791 | 10,938,251 |
Common stock shares outstanding (in shares) | 11,035,791 | 10,938,251 |
FIRST FINANCIAL NORTHWEST, INC4
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Interest income | ||
Loans, including fees | $ 10,027 | $ 8,727 |
Investments available-for-sale | 845 | 675 |
Interest-earning deposits with banks | 44 | 113 |
Dividends on FHLB stock | 82 | 47 |
Total interest income | 10,998 | 9,562 |
Interest expense | ||
Deposits | 1,691 | 1,483 |
FHLB advances | 445 | 298 |
Total interest expense | 2,136 | 1,781 |
Net interest income | 8,862 | 7,781 |
Provision (recapture of provision) for loan losses | 200 | (100) |
Net interest income after provision (recapture of provision) for loan losses | 8,662 | 7,881 |
Noninterest income | ||
BOLI income | 201 | 165 |
Wealth management revenue | 140 | 210 |
Other | 194 | 105 |
Total noninterest income | 535 | 480 |
Noninterest expense | ||
Salaries and employee benefits | 4,285 | 3,774 |
Occupancy and equipment | 480 | 508 |
Professional fees | 439 | 468 |
Data processing | 240 | 190 |
Gain on sale of OREO property, net | 0 | (1) |
OREO market value adjustments | 50 | 258 |
OREO related reimbursements, net | (10) | (20) |
Regulatory assessments | 96 | 120 |
Insurance and bond premiums | 99 | 88 |
Marketing | 48 | 36 |
Other general and administrative | 341 | 352 |
Total noninterest expense | 6,068 | 5,773 |
Income before federal income tax provision | 3,129 | 2,588 |
Federal income tax provision | 785 | 763 |
Net income | $ 2,344 | $ 1,825 |
Earnings per common share | ||
Basic earnings per share (in dollars per share) | $ 0.23 | $ 0.14 |
Diluted earnings per share (in dollars per share) | $ 0.22 | $ 0.14 |
Weighted average number of common shares outstanding | ||
Basic shares outstanding (in shares) | 10,319,722 | 12,744,694 |
Diluted shares outstanding (in shares) | 10,504,046 | 12,905,527 |
FIRST FINANCIAL NORTHWEST, INC5
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net income | $ 2,344 | $ 1,825 |
Other comprehensive income, before tax: | ||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | 377 | 1,443 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | (132) | (506) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 63 | 0 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | (22) | 0 |
Other comprehensive income, net of tax | 286 | 937 |
Total comprehensive income | $ 2,630 | $ 2,762 |
FIRST FINANCIAL NORTHWEST, INC6
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), net of tax | Unearned ESOP Shares |
Balances at beginning of period (in shares) at Dec. 31, 2015 | 13,768,814 | |||||
Balances at beginning of period at Dec. 31, 2015 | $ 170,673 | $ 138 | $ 136,338 | $ 42,892 | $ (1,077) | $ (7,618) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,825 | |||||
Other comprehensive income | $ 2,762 | 1,825 | 937 | |||
Exercise of stock options (in shares) | 55,673 | |||||
Exercise of stock options | $ 1,348 | 1,348 | ||||
Compensation related to stock options and restricted stock awards | 93 | 93 | ||||
Allocation of ESOP shares | $ 378 | 95 | 283 | |||
Repurchase and retirement of common stock (in shares) | (314,087) | |||||
Repurchase and retirement of common stock | $ (5,313) | (3) | (5,310) | |||
Cash dividend declared and paid | $ (763) | (763) | ||||
Balances at end of period (in shares) at Mar. 31, 2016 | 13,510,400 | |||||
Balances at end of period at Mar. 31, 2016 | $ 169,178 | 135 | 132,564 | 43,954 | (140) | (7,335) |
Balances at beginning of period (in shares) at Dec. 31, 2016 | 10,938,251 | |||||
Balances at beginning of period at Dec. 31, 2016 | $ 138,125 | 109 | 96,852 | 48,981 | (1,328) | (6,489) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 2,344 | 2,344 | ||||
Other comprehensive income | $ 286 | 286 | ||||
Exercise of stock options (in shares) | 97,540 | |||||
Exercise of stock options | $ 954 | 1 | 953 | |||
Compensation related to stock options and restricted stock awards | 110 | 110 | ||||
Allocation of ESOP shares | 553 | 271 | 282 | |||
Cash dividend declared and paid | $ (623) | (623) | ||||
Balances at end of period (in shares) at Mar. 31, 2017 | 11,035,791 | |||||
Balances at end of period at Mar. 31, 2017 | $ 141,749 | $ 110 | $ 98,186 | $ 50,702 | $ (1,042) | $ (6,207) |
FIRST FINANCIAL NORTHWEST, INC7
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMETNS OF STOCKHOLDERS' EQUITY (PARENTHETICALS) - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.06 | $ 0.06 |
Allocated shares | 28,214 | 28,213 |
FIRST FINANCIAL NORTHWEST, INC8
FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities | ||
Net income | $ 2,344 | $ 1,825 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision (recapture of provision) for loan losses | 200 | (100) |
OREO market value adjustments | 50 | 258 |
Gain on sale of OREO property, net | 0 | (1) |
Depreciation of premises and equipment | 260 | 251 |
Amortization of premiums and discounts on investments available-for-sale, net | 167 | 250 |
Deferred federal income taxes | 81 | 133 |
Allocation of ESOP shares | 553 | 378 |
Stock compensation expense | 110 | 93 |
Change in cash surrender value of BOLI | (201) | (165) |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | (165) | (237) |
Net increase in advance payments from borrowers for taxes and insurance | 1,833 | 1,830 |
Accrued interest receivable | (242) | (146) |
Accrued interest payable | 6 | (29) |
Other liabilities | 242 | (125) |
Net cash provided by operating activities | 5,238 | 4,215 |
Cash flows from investing activities: | ||
Proceeds from sales of OREO properties | 0 | 1 |
Proceeds from calls and sales of investments available-for-sale | 26 | 45 |
Principal repayments on investments available-for-sale | 2,790 | 3,864 |
Purchases of investments available-for-sale | (3,008) | (8,285) |
Net increase in loans receivable | (23,925) | (32,311) |
(Purchase) redemption of FHLB stock | (71) | 1,306 |
Purchases of premises and equipment | (711) | (709) |
Purchase of BOLI | (3,180) | 0 |
Net cash used by investing activities | (28,079) | (36,089) |
Cash flows from financing activities: | ||
Net increase (decrease) in deposits | 17,231 | (6,851) |
Repayments of advances from the FHLB | 0 | (34,000) |
Proceeds from stock options exercises | 954 | 1,348 |
Repurchase and retirement of common stock | 0 | (5,313) |
Dividends paid | (623) | (763) |
Net cash provided (used) by financing activities | 17,562 | (45,579) |
Cash and cash equivalents: | ||
Net decrease in cash and cash equivalents | (5,279) | (77,453) |
Cash and cash equivalents at beginning of period | 31,352 | 105,711 |
Cash and cash equivalents at end of period | 26,073 | 28,258 |
Cash paid during the period for: | ||
Interest paid | 2,130 | 1,810 |
Federal income taxes paid | 0 | 500 |
Noncash transactions: | ||
Change in unrealized loss on investments available-for-sale | 377 | 1,443 |
Change in gain on cash flow hedge | $ 63 | $ 0 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 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”). First Financial Northwest Bank is headquartered in Renton, Washington, where it has a full-service retail branch as well as a smaller branch located in a commercial development known as the “Landing”. Two additional, smaller branches are located in Mill Creek and Edmonds, both in Snohomish County, Washington. The Bank has received regulatory approval to open two new branches in King County. The first is expected to open in the second quarter of 2017 in the community of Crossroads in Bellevue, Washington, and the second is expected to open in the fourth quarter of 2017 in Bothell, Washington. The Bank’s primary market area consists of King, Snohomish, Pierce and Kitsap counties, Washington. The Bank is a portfolio lender, originating 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
Basis of Presentation | 3 Months Ended |
Mar. 31, 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 three months ended March 31, 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 Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 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 its preliminary stages of identifying and evaluating the revenue streams and underlying revenue contracts within the scope of the guidance. The Company is expecting to begin developing processes and procedures during 2017 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 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 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 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 evaluating the potential impact adoption of this standard will have on our consolidated financial statements and expect to shortly begin developing and implementing processes and procedures to ensure we are fully compliant with the amendments at the adoption date. 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 is evaluating our current 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 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments-Equity Method and Joint Ventures (Topic 323) . The ASU amends the Codification for SEC staff announcements made at recent Emerging Issues Task Force (EITF) meetings. The SEC guidance that specifically relates to the Company’s consolidated financial statements was from the September 2016 meeting, where the SEC staff expressed their expectations about the extent of disclosures registrants should make about the effects of the new FASB guidance as well as any amendments issued prior to adoption, in particular on revenue (ASU 2014-09), leases (ASU 2016-02) and credit losses on financial instruments (ASU 2016-13) in accordance with Staff Accounting Bulletin Topic 11.M. Registrants are required to disclose the effect that recently issued accounting standards will have on their financial statements when adopted in a future period. In cases where a registrant cannot reasonably estimate the impact of the adoption, then additional qualitative disclosures should be considered. The ASU incorporates these SEC staff views into Topic 250 and adds references to that guidance in the transition paragraphs of each of the three new standards. The Company has adopted the amendments in this ASU and appropriate disclosures have been included in this Note for each recently issued accounting standard. 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. While the Company does not have any goodwill to recognize from any previous transaction, this ASU will apply to the impairment analysis of goodwill recognized in future transactions. 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. Adoption of ASU 2017-04 is not expected to have a material impact on the Company’s consolidated financial statements. In March 2017, the 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. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2017 | |
Investments [Abstract] | |
Investments | Investments Investments available-for-sale are summarized as follows at the dates indicated: March 31, 2017 Amortized Gross Gross Fair Value (In thousands) Mortgage-backed investments: Fannie Mae $ 41,858 $ 118 $ (757 ) $ 41,219 Freddie Mac 17,126 86 (58 ) 17,154 Ginnie Mae 18,705 36 (591 ) 18,150 Municipal bonds 13,163 52 (64 ) 13,151 U.S. Government agencies 15,521 85 (148 ) 15,458 Corporate bonds 24,505 422 (397 ) 24,530 Total $ 130,878 $ 799 $ (2,015 ) $ 129,662 December 31, 2016 Amortized Gross Gross 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 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: March 31, 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 $ 32,840 $ (757 ) $ — $ — $ 32,840 $ (757 ) Freddie Mac 8,013 (58 ) — — 8,013 (58 ) Ginnie Mae 16,400 (591 ) — — 16,400 (591 ) Municipal bonds 4,019 (64 ) — — 4,019 (64 ) U.S. Government agencies 8,440 (148 ) — — 8,440 (148 ) Corporate bonds 2,462 (38 ) 6,141 (359 ) 8,603 (397 ) Total $ 72,174 $ (1,656 ) $ 6,141 $ (359 ) $ 78,315 $ (2,015 ) 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 ) 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 March 31, 2017 and December 31, 2016 , the Company had 46 securities and 53 securities in an unrealized loss position, respectively. At both March 31, 2017 and December 31, 2016, the Company had four securities in an unrealized loss position for 12 months or more. Management reviewed the financial condition of the entities issuing municipal or corporate bonds at March 31, 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 March 31, 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. March 31, 2017 Amortized Cost Fair Value (In thousands) Due within one year $ 2,507 $ 2,520 Due after one year through five years 6,841 6,843 Due after five years through ten years 26,016 26,085 Due after ten years 17,825 17,691 53,189 53,139 Mortgage-backed investments 77,689 76,523 Total $ 130,878 $ 129,662 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 $22.0 million and $22.6 million were pledged as collateral for public deposits at March 31, 2017 and December 31, 2016 , respectively, both of which exceeded the collateral requirements established by the Washington Public Deposit Protection Commission. For the three months ended March 31, 2017 , and March 31, 2016 , we had calls on investment securities of $26,000 , and $45,000 , respectively, with no gains or losses. There were no sales of investment securities during the first quarter of 2017 or 2016. During the three months ended March 31, 2017 , we purchased $3.0 million of investment securities, consisting of a $1.0 million fixed rate mortgage-backed security, and a $2.0 million variable rate corporate bond. During the three months ended March 31, 2016 , we purchased $8.3 million of investment securities, consisting of a $5.0 million variable rate corporate bond, $1.5 million of fixed rate municipal bonds, and a $1.8 million fixed rate mortgage-backed security. |
Loans Receivable
Loans Receivable | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Loans Receivable | Loans Receivable Loans receivable are summarized as follows at the dates indicated: March 31, 2017 December 31, 2016 (In thousands) One-to-four family residential: Permanent owner occupied $ 135,743 $ 137,834 Permanent non-owner occupied 113,476 111,601 249,219 249,435 Multifamily 121,718 123,250 Commercial real estate 317,719 303,694 Construction/land: One-to-four family residential 58,447 67,842 Multifamily 108,801 111,051 Land 39,687 30,055 206,935 208,948 Business 10,370 7,938 Consumer 7,878 6,922 Total loans 913,839 900,187 Less: Loans in process ("LIP") 61,735 72,026 Deferred loan fees, net 2,178 2,167 Allowance for loan and lease losses ("ALLL") 11,158 10,951 Loans receivable, net $ 838,768 $ 815,043 At March 31, 2017 , loans totaling $445.2 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: At or For the Three Months Ended March 31, 2017 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (In thousands) ALLL: Beginning balance $ 2,551 $ 1,199 $ 3,893 $ 2,792 $ 237 $ 279 $ 10,951 Charge-offs — — — — — — — Recoveries 7 — — — — — 7 (Recapture) Provision (16 ) (11 ) 134 (1 ) 74 20 200 Ending balance $ 2,542 $ 1,188 $ 4,027 $ 2,791 $ 311 $ 299 $ 11,158 ALLL by category: General reserve $ 2,357 $ 1,188 $ 4,003 $ 2,791 $ 311 $ 299 $ 10,949 Specific reserve 185 — 24 — — — 209 Loans: (1) Total loans $ 249,219 $ 121,718 $ 317,719 $ 145,200 $ 10,370 $ 7,878 $ 852,104 Loans collectively evaluated for impairment (2) 226,884 120,566 314,036 145,200 10,370 7,778 824,834 Loans individually evaluated for impairment (3) 22,335 1,152 3,683 — — 100 27,270 ____________ (1) Net of LIP. (2) Loans collectively evaluated for general reserves. (3) Loans individually evaluated for specific reserves. At or For the Three Months Ended March 31, 2016 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (In thousands) ALLL: Beginning balance $ 3,028 $ 1,193 $ 3,395 $ 1,193 $ 229 $ 425 $ 9,463 Charge-offs — — — — — (19 ) (19 ) Recoveries 22 — 104 — — 1 127 (Recapture) Provision (210 ) (9 ) (2 ) 199 (32 ) (46 ) (100 ) Ending balance $ 2,840 $ 1,184 $ 3,497 $ 1,392 $ 197 $ 361 $ 9,471 ALLL by category: General reserve $ 2,389 $ 1,184 $ 3,383 $ 1,336 $ 197 $ 323 $ 8,812 Specific reserve 451 — 114 56 — 38 659 Loans: (1) Total loans $ 256,817 $ 129,553 $ 258,946 $ 71,362 $ 6,548 $ 5,972 $ 729,198 Loans collectively evaluated for impairment (2) 223,549 127,966 254,477 70,867 6,548 5,785 689,192 Loans individually evaluated for impairment (3) 33,268 1,587 4,469 495 — 187 40,006 _____________ (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 March 31, 2017 , there were no past due loans. In comparison, past due loans comprised 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: Loans Past Due as of March 31, 2017 30-59 Days 60-89 Days 90 Days and Total Past Current Total (1) (2) (In thousands) Real estate: One-to-four family residential: Owner occupied $ — $ — $ — $ — $ 135,743 $ 135,743 Non-owner occupied — — — — 113,476 113,476 Multifamily — — — — 121,718 121,718 Commercial real estate — — — — 317,719 317,719 Construction/land — — — — 145,200 145,200 Total real estate — — — — 833,856 833,856 Business — — — — 10,370 10,370 Consumer — — — — 7,878 7,878 Total loans $ — $ — $ — $ — $ 852,104 $ 852,104 ________________ (1) There were no loans 90 days and greater past due and still accruing interest at March 31, 2017 . (2) Net of LIP. Loans Past Due as of December 31, 2016 30-59 Days 60-89 Days 90 Days and Total Past 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 _________________ (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: March 31, 2017 December 31, 2016 (In thousands) One-to-four family residential $ 545 $ 798 Consumer 57 60 Total nonaccrual loans $ 602 $ 858 During the three months ended March 31, 2017 , interest income that would have been recognized had these nonaccrual loans been performing in accordance with their original terms was $9,000 . For the three months ended March 31, 2016 , foregone interest on nonaccrual loans was $14,000 . The following tables summarize the loan portfolio by type and payment status at the dates indicated: March 31, 2017 One-to-Four Multifamily Commercial Construction / Business Consumer Total (1) (In thousands) Performing (2) $ 248,674 $ 121,718 $ 317,719 $ 145,200 $ 10,370 $ 7,821 $ 851,502 Nonperforming (3) 545 — — — — 57 602 Total loans $ 249,219 $ 121,718 $ 317,719 $ 145,200 $ 10,370 $ 7,878 $ 852,104 _____________ (1) Net of LIP. (2) There were $135.2 million of owner-occupied one-to-four family residential loans and $113.5 million of non-owner occupied one-to-four family residential loans classified as performing. (3) The $545,000 of one-to-four family residential loans classified as nonperforming are all owner-occupied. December 31, 2016 One-to-Four Multifamily Commercial Construction/ 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 _____________ (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 March 31, 2017 , or December 31, 2016 . The following tables present a summary of loans individually evaluated for impairment by loan type at the dates indicated: March 31, 2017 Recorded Investment (1) Unpaid Principal Balance (2) Related Allowance (In thousands) Loans with no related allowance: One-to-four family residential: Owner occupied $ 2,012 $ 2,284 $ — Non-owner occupied 14,356 14,374 — Multifamily 1,152 1,152 — Commercial real estate 2,932 2,997 — Consumer 100 146 — Total 20,552 20,953 — Loans with an allowance: One-to-four family residential: Owner occupied 1,888 1,958 48 Non-owner occupied 4,079 4,101 137 Commercial real estate 751 751 24 Total 6,718 6,810 209 Total impaired loans: One-to-four family residential: Owner occupied 3,900 4,242 48 Non-owner occupied 18,435 18,475 137 Multifamily 1,152 1,152 — Commercial real estate 3,683 3,748 24 Consumer 100 146 — Total $ 27,270 $ 27,763 $ 209 _________________ (1) Represents the loan balance less charge-offs. (2) Contractual loan principal balance. 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 3,012 — Consumer 103 148 — Total 23,469 23,851 — 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 3,767 26 Construction/land 495 495 81 Consumer 103 148 — Total $ 30,941 $ 31,413 $ 309 _________________ (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 months ended March 31, 2017 and 2016 : Three Months Ended March 31, 2017 Three Months Ended March 31, 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 $ 2,114 $ 31 $ 2,872 $ 60 Non-owner occupied 15,495 211 23,108 321 Multifamily 1,358 19 1,001 27 Commercial real estate 2,942 53 2,466 39 Consumer 102 2 122 2 Total 22,011 316 29,569 449 Loans with an allowance: One-to-four family residential: Owner occupied 1,892 26 2,116 29 Non-owner occupied 4,203 55 6,587 78 Multifamily — — 590 — Commercial real estate 753 10 2,217 35 Construction/land 248 — 495 5 Consumer — — 76 1 Total 7,096 91 12,081 148 Total impaired loans: One-to-four family residential: Owner occupied 4,006 57 4,988 89 Non-owner occupied 19,698 266 29,695 399 Multifamily 1,358 19 1,591 27 Commercial real estate 3,695 63 4,683 74 Construction/land 248 — 495 5 Consumer 102 2 198 3 Total $ 29,107 $ 407 $ 41,650 $ 597 Troubled Debt Restructurings. Certain loan modifications are accounted for as troubled debt restructured loans (“TDRs”). At March 31, 2017 , the TDR portfolio totaled $26.8 million , of which one loan of $109,000 was on nonaccrual status because it had previously not performed in accordance with the terms of its restructure. As of March 31, 2017 , it was current, however it will remain on nonaccrual status until it has performed for six months and is expected to continue to perform. 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. During the three months ended March 31, 2017, there were no loans modified as TDRs. In comparison, the following table presents loans that were modified as TDRs during the three months ended March 31, 2016, and their recorded investment both before and after the modification: Three Months Ended March 31, 2016 Number of Loans Pre-Modification Outstanding Post-Modification Outstanding (Dollars in thousands) One-to-four family residential: Principal and interest with interest rate concession 1 $ 558 $ 558 Commercial real estate: Interest-only payments with interest rate concession and advancement of maturity date 1 495 495 Total 2 $ 1,053 $ 1,053 At March 31, 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 months ended March 31, 2016 , included granting the borrower interest rate concessions and advancing the maturity date 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 months ended March 31, 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 months ended March 31, 2017 , and the three months ended March 31, 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 March 31, 2017 and December 31, 2016 . The following tables represent a summary of loans by type and risk category at the dates indicated: March 31, 2017 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (1) (In thousands) Risk Rating: Pass $ 245,299 $ 121,718 $ 314,698 $ 145,200 $ 10,370 $ 7,633 $ 844,918 Special mention 2,824 — 3,021 — — 188 6,033 Substandard 1,096 — — — — 57 1,153 Total loans $ 249,219 $ 121,718 $ 317,719 $ 145,200 $ 10,370 $ 7,878 $ 852,104 _____________ (1) Net of LIP. 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 _____________ (1) Net of LIP. |
Other Real Estate Owned
Other Real Estate Owned | 3 Months Ended |
Mar. 31, 2017 | |
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: Three Months Ended March 31, 2017 2016 (In thousands) Balance at beginning of period $ 2,331 $ 3,663 Loans transferred to OREO — — Gross proceeds from sale of OREO — (1 ) Gain on sale of OREO — 1 Market value adjustments (50 ) (258 ) Balance at end of period $ 2,281 $ 3,405 There were no sales of OREO properties during the three months ended March 31, 2017. During this period, the Bank recognized a $50,000 market value adjustment on a property in Kitsap County that had a book value of $506,000 prior to the valuation adjustment as a result of signing a sale contract on this property. The sale subsequently closed in April 2017. OREO at March 31, 2017 consisted of $2.3 million in commercial real estate properties. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2017 | |
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: • 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. 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 March 31, 2017 and December 31, 2016: Fair Value Measurements at March 31, 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 $ 41,219 $ — $ 41,219 $ — Freddie Mac 17,154 — 17,154 — Ginnie Mae 18,150 — 18,150 — Municipal bonds 13,151 — 13,151 — U.S. Government agencies 15,458 — 15,458 — Corporate bonds 24,530 — 24,530 — Total available-for-sale 129,662 — 129,662 — Derivative fair value asset 1,396 — 1,396 — $ 131,058 $ — $ 131,058 $ — 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 129,260 — 129,260 — Derivative fair value asset 1,333 — 1,333 — $ 130,593 $ — $ 130,593 $ — 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 March 31, 2017 and December 31, 2016 : Fair Value Measurements at March 31, 2017 Fair Value Quoted Prices in Significant Significant (In thousands) Impaired loans (included in loans (1) $ 27,061 $ — $ — $ 27,061 OREO 2,281 — — 2,281 Total $ 29,342 $ — $ — $ 29,342 _____________ (1) Total fair value of impaired loans is net of $209,000 of specific reserves on performing TDRs. Fair Value Measurements at December 31, 2016 Fair Value Quoted Prices in Significant Significant (In thousands) Impaired loans (included in loans (1) $ 30,632 $ — $ — $ 30,632 OREO 2,331 — — 2,331 Total $ 32,963 $ — $ — $ 32,963 _____________ (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 March 31, 2017 and December 31, 2016 : March 31, 2017 Fair Value Valuation Technique Unobservable Input(s) Range (Weighted Average) (Dollars in thousands) Impaired Loans $ 27,061 Market approach Appraised value discounted by market or borrower conditions 0.0% OREO $ 2,281 Market approach Appraised value less selling costs 0.0% - 9.94% (2.16%) 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% OREO $ 2,331 Market approach Appraised value less selling costs 0.0% The carrying amounts and estimated fair values of financial instruments were as follows at the dates indicated: March 31, 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 $ 6,066 $ 6,066 $ 6,066 $ — $ — Interest-earning deposits with banks 20,007 20,007 20,007 — — Investments available-for-sale 129,662 12,662 — 12,662 — Loans receivable, net 838,768 840,069 — — 840,069 FHLB stock 8,102 8,102 — 8,102 — Accrued interest receivable 3,389 3,389 — 3,389 — Derivative fair value asset 1,396 1,396 — 1,396 — Financial Liabilities: Deposits 303,767 303,767 303,767 — — Certificates of deposit, retail 355,452 355,411 — 355,411 — Certificates of deposit, brokered 75,488 75,747 — 75,747 — Advances from the FHLB 171,500 168,491 — 168,491 — Accrued interest payable 237 237 — 237 — 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 — Fair value estimates, methods, and assumptions are set forth below for the Company’s financial instruments: • 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, accrued interest payable, and investment transactions 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 are at variable rates, are for loans with terms of less than one year and have interest rates which approximate prevailing market rates, or are set at the time of loan closing. 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
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 , there were 1,371,896 total shares available for grant under the 2016 Plan, including 385,948 shares available to be granted as restricted stock. For the three months ended March 31, 2017 and 2016 , total compensation expense for the Plan was $110,000 , and $93,000 , respectively, and the related income tax benefit was $39,000 and $32,000 , respectively. 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 will expire 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 or 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 months ended March 31, 2017 , follows: For the Three Months Ended March 31, 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 $ — Exercised (97,540 ) 9.78 — Outstanding at March 31, 2017 506,280 10.27 5.24 3,747,449 Vested and expected to vest assuming a 3% forfeiture 501,210 10.26 5.21 3,714,537 Exercisable at March 31, 2017 337,280 9.81 4.22 2,650,359 As of March 31, 2017 , there was $524,791 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 2.57 years. There were no stock options granted during the three months ended March 31, 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 months ended March 31, 2017 , follows: For the Three Months Ended March 31, 2017 Shares Weighted-Average Nonvested at January 1, 2017 26,400 $ 9.13 Granted — Vested — Canceled — Forfeited — Nonvested at March 31, 2017 26,400 9.13 Expected to vest assuming a 3% forfeiture rate over the vesting term 25,608 As of March 31, 2017 , there was $132,188 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 0.91 years. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
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: Three Months Ended March 31, 2017 2016 (Dollars in thousands, except share data) Net income $ 2,344 $ 1,825 Less: Earnings allocated to participating (5 ) (6 ) Earnings allocated to common shareholders $ 2,339 $ 1,819 Basic weighted average common shares 10,319,722 12,744,694 Dilutive stock options 171,028 144,521 Dilutive restricted stock grants 13,296 16,312 Diluted weighted average common shares 10,504,046 12,905,527 Basic earnings per share $ 0.23 $ 0.14 Diluted earnings per share $ 0.22 $ 0.14 Potential dilutive shares are excluded from the computation of earnings per share if their effect is anti-dilutive. For the three months ended March 31, 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 months ended March 31, 2016 , options to purchase an additional 60,000 shares of common stock, respectively, were excluded as their effect would be anti-dilutive. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Branch Acquisition On April 10, 2017, the Company announced that the Bank had entered into a definitive agreement to purchase four bank branches in King and Snohomish counties. The Bank will assume approximately $102 million in deposits associated with the branches, based on deposits as of December 31, 2016, for a deposit premium of 3.125% , based on the deposit balance at the time the transaction closes. The agreement does not include the purchase of any loans. At the closing of the proposed transaction, the Bank will take ownership of a building and land for one branch and assume the leases for three other branches. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Investments [Abstract] | |
Available-for-sale Securities | Investments available-for-sale are summarized as follows at the dates indicated: March 31, 2017 Amortized Gross Gross Fair Value (In thousands) Mortgage-backed investments: Fannie Mae $ 41,858 $ 118 $ (757 ) $ 41,219 Freddie Mac 17,126 86 (58 ) 17,154 Ginnie Mae 18,705 36 (591 ) 18,150 Municipal bonds 13,163 52 (64 ) 13,151 U.S. Government agencies 15,521 85 (148 ) 15,458 Corporate bonds 24,505 422 (397 ) 24,530 Total $ 130,878 $ 799 $ (2,015 ) $ 129,662 December 31, 2016 Amortized Gross Gross 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 |
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: March 31, 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 $ 32,840 $ (757 ) $ — $ — $ 32,840 $ (757 ) Freddie Mac 8,013 (58 ) — — 8,013 (58 ) Ginnie Mae 16,400 (591 ) — — 16,400 (591 ) Municipal bonds 4,019 (64 ) — — 4,019 (64 ) U.S. Government agencies 8,440 (148 ) — — 8,440 (148 ) Corporate bonds 2,462 (38 ) 6,141 (359 ) 8,603 (397 ) Total $ 72,174 $ (1,656 ) $ 6,141 $ (359 ) $ 78,315 $ (2,015 ) 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 ) |
Schedule of Available for sale Securities, Debt Maturities | March 31, 2017 Amortized Cost Fair Value (In thousands) Due within one year $ 2,507 $ 2,520 Due after one year through five years 6,841 6,843 Due after five years through ten years 26,016 26,085 Due after ten years 17,825 17,691 53,189 53,139 Mortgage-backed investments 77,689 76,523 Total $ 130,878 $ 129,662 |
Loans Receivable_ Schedule of A
Loans Receivable: Schedule of Accounts, Notes, Loans and Financing Receivable (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans receivable are summarized as follows at the dates indicated: March 31, 2017 December 31, 2016 (In thousands) One-to-four family residential: Permanent owner occupied $ 135,743 $ 137,834 Permanent non-owner occupied 113,476 111,601 249,219 249,435 Multifamily 121,718 123,250 Commercial real estate 317,719 303,694 Construction/land: One-to-four family residential 58,447 67,842 Multifamily 108,801 111,051 Land 39,687 30,055 206,935 208,948 Business 10,370 7,938 Consumer 7,878 6,922 Total loans 913,839 900,187 Less: Loans in process ("LIP") 61,735 72,026 Deferred loan fees, net 2,178 2,167 Allowance for loan and lease losses ("ALLL") 11,158 10,951 Loans receivable, net $ 838,768 $ 815,043 At March 31, 2017 , loans totaling $445.2 million were pledged to secure borrowings from the FHLB of Des Moines compared to $472.1 million at December 31, 2016 . |
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: At or For the Three Months Ended March 31, 2017 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (In thousands) ALLL: Beginning balance $ 2,551 $ 1,199 $ 3,893 $ 2,792 $ 237 $ 279 $ 10,951 Charge-offs — — — — — — — Recoveries 7 — — — — — 7 (Recapture) Provision (16 ) (11 ) 134 (1 ) 74 20 200 Ending balance $ 2,542 $ 1,188 $ 4,027 $ 2,791 $ 311 $ 299 $ 11,158 ALLL by category: General reserve $ 2,357 $ 1,188 $ 4,003 $ 2,791 $ 311 $ 299 $ 10,949 Specific reserve 185 — 24 — — — 209 Loans: (1) Total loans $ 249,219 $ 121,718 $ 317,719 $ 145,200 $ 10,370 $ 7,878 $ 852,104 Loans collectively evaluated for impairment (2) 226,884 120,566 314,036 145,200 10,370 7,778 824,834 Loans individually evaluated for impairment (3) 22,335 1,152 3,683 — — 100 27,270 ____________ (1) Net of LIP. (2) Loans collectively evaluated for general reserves. (3) Loans individually evaluated for specific reserves. At or For the Three Months Ended March 31, 2016 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (In thousands) ALLL: Beginning balance $ 3,028 $ 1,193 $ 3,395 $ 1,193 $ 229 $ 425 $ 9,463 Charge-offs — — — — — (19 ) (19 ) Recoveries 22 — 104 — — 1 127 (Recapture) Provision (210 ) (9 ) (2 ) 199 (32 ) (46 ) (100 ) Ending balance $ 2,840 $ 1,184 $ 3,497 $ 1,392 $ 197 $ 361 $ 9,471 ALLL by category: General reserve $ 2,389 $ 1,184 $ 3,383 $ 1,336 $ 197 $ 323 $ 8,812 Specific reserve 451 — 114 56 — 38 659 Loans: (1) Total loans $ 256,817 $ 129,553 $ 258,946 $ 71,362 $ 6,548 $ 5,972 $ 729,198 Loans collectively evaluated for impairment (2) 223,549 127,966 254,477 70,867 6,548 5,785 689,192 Loans individually evaluated for impairment (3) 33,268 1,587 4,469 495 — 187 40,006 _____________ (1) Net of LIP. (2) Loans collectively evaluated for general reserves. (3) Loans individually evaluated for specific reserves. |
Financing Receivables, Aging of loans | The following tables represent a summary of the aging of loans by type at the dates indicated: Loans Past Due as of March 31, 2017 30-59 Days 60-89 Days 90 Days and Total Past Current Total (1) (2) (In thousands) Real estate: One-to-four family residential: Owner occupied $ — $ — $ — $ — $ 135,743 $ 135,743 Non-owner occupied — — — — 113,476 113,476 Multifamily — — — — 121,718 121,718 Commercial real estate — — — — 317,719 317,719 Construction/land — — — — 145,200 145,200 Total real estate — — — — 833,856 833,856 Business — — — — 10,370 10,370 Consumer — — — — 7,878 7,878 Total loans $ — $ — $ — $ — $ 852,104 $ 852,104 ________________ (1) There were no loans 90 days and greater past due and still accruing interest at March 31, 2017 . (2) Net of LIP. Loans Past Due as of December 31, 2016 30-59 Days 60-89 Days 90 Days and Total Past 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 _________________ (1) There were no loans 90 days and greater past due and still accruing interest at December 31, 2016 . (2) Net of LIP. |
Schedule of non-accrual loans | The following table is a summary of nonaccrual loans by loan type at the dates indicated: March 31, 2017 December 31, 2016 (In thousands) One-to-four family residential $ 545 $ 798 Consumer 57 60 Total nonaccrual loans $ 602 $ 858 |
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: March 31, 2017 One-to-Four Multifamily Commercial Construction / Business Consumer Total (1) (In thousands) Performing (2) $ 248,674 $ 121,718 $ 317,719 $ 145,200 $ 10,370 $ 7,821 $ 851,502 Nonperforming (3) 545 — — — — 57 602 Total loans $ 249,219 $ 121,718 $ 317,719 $ 145,200 $ 10,370 $ 7,878 $ 852,104 _____________ (1) Net of LIP. (2) There were $135.2 million of owner-occupied one-to-four family residential loans and $113.5 million of non-owner occupied one-to-four family residential loans classified as performing. (3) The $545,000 of one-to-four family residential loans classified as nonperforming are all owner-occupied. December 31, 2016 One-to-Four Multifamily Commercial Construction/ 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 _____________ (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. |
Schedule Of Impaired Financing Receivables | The following tables present a summary of loans individually evaluated for impairment by loan type at the dates indicated: March 31, 2017 Recorded Investment (1) Unpaid Principal Balance (2) Related Allowance (In thousands) Loans with no related allowance: One-to-four family residential: Owner occupied $ 2,012 $ 2,284 $ — Non-owner occupied 14,356 14,374 — Multifamily 1,152 1,152 — Commercial real estate 2,932 2,997 — Consumer 100 146 — Total 20,552 20,953 — Loans with an allowance: One-to-four family residential: Owner occupied 1,888 1,958 48 Non-owner occupied 4,079 4,101 137 Commercial real estate 751 751 24 Total 6,718 6,810 209 Total impaired loans: One-to-four family residential: Owner occupied 3,900 4,242 48 Non-owner occupied 18,435 18,475 137 Multifamily 1,152 1,152 — Commercial real estate 3,683 3,748 24 Consumer 100 146 — Total $ 27,270 $ 27,763 $ 209 _________________ (1) Represents the loan balance less charge-offs. (2) Contractual loan principal balance. 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 3,012 — Consumer 103 148 — Total 23,469 23,851 — 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 3,767 26 Construction/land 495 495 81 Consumer 103 148 — Total $ 30,941 $ 31,413 $ 309 _________________ (1) Represents the loan balance less charge-offs. (2) Contractual loan principal balance. |
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 months ended March 31, 2017 and 2016 : Three Months Ended March 31, 2017 Three Months Ended March 31, 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 $ 2,114 $ 31 $ 2,872 $ 60 Non-owner occupied 15,495 211 23,108 321 Multifamily 1,358 19 1,001 27 Commercial real estate 2,942 53 2,466 39 Consumer 102 2 122 2 Total 22,011 316 29,569 449 Loans with an allowance: One-to-four family residential: Owner occupied 1,892 26 2,116 29 Non-owner occupied 4,203 55 6,587 78 Multifamily — — 590 — Commercial real estate 753 10 2,217 35 Construction/land 248 — 495 5 Consumer — — 76 1 Total 7,096 91 12,081 148 Total impaired loans: One-to-four family residential: Owner occupied 4,006 57 4,988 89 Non-owner occupied 19,698 266 29,695 399 Multifamily 1,358 19 1,591 27 Commercial real estate 3,695 63 4,683 74 Construction/land 248 — 495 5 Consumer 102 2 198 3 Total $ 29,107 $ 407 $ 41,650 $ 597 |
Troubled Debt Restructurings on Financing Receivables | the following table presents loans that were modified as TDRs during the three months ended March 31, 2016, and their recorded investment both before and after the modification: Three Months Ended March 31, 2016 Number of Loans Pre-Modification Outstanding Post-Modification Outstanding (Dollars in thousands) One-to-four family residential: Principal and interest with interest rate concession 1 $ 558 $ 558 Commercial real estate: Interest-only payments with interest rate concession and advancement of maturity date 1 495 495 Total 2 $ 1,053 $ 1,053 |
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: March 31, 2017 One-to-Four Multifamily Commercial Construction/ Business Consumer Total (1) (In thousands) Risk Rating: Pass $ 245,299 $ 121,718 $ 314,698 $ 145,200 $ 10,370 $ 7,633 $ 844,918 Special mention 2,824 — 3,021 — — 188 6,033 Substandard 1,096 — — — — 57 1,153 Total loans $ 249,219 $ 121,718 $ 317,719 $ 145,200 $ 10,370 $ 7,878 $ 852,104 _____________ (1) Net of LIP. 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 _____________ (1) Net of LIP. |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Real Estate [Abstract] | |
Other Real Estate, Roll Forward | The following table is a summary of OREO activity during the periods shown: Three Months Ended March 31, 2017 2016 (In thousands) Balance at beginning of period $ 2,331 $ 3,663 Loans transferred to OREO — — Gross proceeds from sale of OREO — (1 ) Gain on sale of OREO — 1 Market value adjustments (50 ) (258 ) Balance at end of period $ 2,281 $ 3,405 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 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 March 31, 2017 and December 31, 2016: Fair Value Measurements at March 31, 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 $ 41,219 $ — $ 41,219 $ — Freddie Mac 17,154 — 17,154 — Ginnie Mae 18,150 — 18,150 — Municipal bonds 13,151 — 13,151 — U.S. Government agencies 15,458 — 15,458 — Corporate bonds 24,530 — 24,530 — Total available-for-sale 129,662 — 129,662 — Derivative fair value asset 1,396 — 1,396 — $ 131,058 $ — $ 131,058 $ — 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 129,260 — 129,260 — Derivative fair value asset 1,333 — 1,333 — $ 130,593 $ — $ 130,593 $ — |
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 March 31, 2017 and December 31, 2016 : Fair Value Measurements at March 31, 2017 Fair Value Quoted Prices in Significant Significant (In thousands) Impaired loans (included in loans (1) $ 27,061 $ — $ — $ 27,061 OREO 2,281 — — 2,281 Total $ 29,342 $ — $ — $ 29,342 _____________ (1) Total fair value of impaired loans is net of $209,000 of specific reserves on performing TDRs. Fair Value Measurements at December 31, 2016 Fair Value Quoted Prices in Significant Significant (In thousands) Impaired loans (included in loans (1) $ 30,632 $ — $ — $ 30,632 OREO 2,331 — — 2,331 Total $ 32,963 $ — $ — $ 32,963 _____________ (1) Total fair value of impaired loans is net of $309,000 of specific reserves on performing TDRs. |
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 March 31, 2017 and December 31, 2016 : March 31, 2017 Fair Value Valuation Technique Unobservable Input(s) Range (Weighted Average) (Dollars in thousands) Impaired Loans $ 27,061 Market approach Appraised value discounted by market or borrower conditions 0.0% OREO $ 2,281 Market approach Appraised value less selling costs 0.0% - 9.94% (2.16%) 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% OREO $ 2,331 Market approach Appraised value less selling costs 0.0% |
Fair Value, by Balance Sheet Grouping | e carrying amounts and estimated fair values of financial instruments were as follows at the dates indicated: March 31, 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 $ 6,066 $ 6,066 $ 6,066 $ — $ — Interest-earning deposits with banks 20,007 20,007 20,007 — — Investments available-for-sale 129,662 12,662 — 12,662 — Loans receivable, net 838,768 840,069 — — 840,069 FHLB stock 8,102 8,102 — 8,102 — Accrued interest receivable 3,389 3,389 — 3,389 — Derivative fair value asset 1,396 1,396 — 1,396 — Financial Liabilities: Deposits 303,767 303,767 303,767 — — Certificates of deposit, retail 355,452 355,411 — 355,411 — Certificates of deposit, brokered 75,488 75,747 — 75,747 — Advances from the FHLB 171,500 168,491 — 168,491 — Accrued interest payable 237 237 — 237 — 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 — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Share-based Compensation [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | A summary of the Company’s stock option plan awards and activity for the three months ended March 31, 2017 , follows: For the Three Months Ended March 31, 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 $ — Exercised (97,540 ) 9.78 — Outstanding at March 31, 2017 506,280 10.27 5.24 3,747,449 Vested and expected to vest assuming a 3% forfeiture 501,210 10.26 5.21 3,714,537 Exercisable at March 31, 2017 337,280 9.81 4.22 2,650,359 A summary of changes in nonvested restricted stock awards for the three months ended March 31, 2017 , follows: For the Three Months Ended March 31, 2017 Shares Weighted-Average Nonvested at January 1, 2017 26,400 $ 9.13 Granted — Vested — Canceled — Forfeited — Nonvested at March 31, 2017 26,400 9.13 Expected to vest assuming a 3% forfeiture rate over the vesting term 25,608 |
Earnings Per Share_ Schedule of
Earnings Per Share: Schedule of Earnings Per Share Reconciliation (Tables) | 3 Months Ended |
Mar. 31, 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: Three Months Ended March 31, 2017 2016 (Dollars in thousands, except share data) Net income $ 2,344 $ 1,825 Less: Earnings allocated to participating (5 ) (6 ) Earnings allocated to common shareholders $ 2,339 $ 1,819 Basic weighted average common shares 10,319,722 12,744,694 Dilutive stock options 171,028 144,521 Dilutive restricted stock grants 13,296 16,312 Diluted weighted average common shares 10,504,046 12,905,527 Basic earnings per share $ 0.23 $ 0.14 Diluted earnings per share $ 0.22 $ 0.14 |
Investments_ Available-for-sale
Investments: Available-for-sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Amortized Cost | $ 130,878 | $ 130,852 |
Gross Unrealized Gains | 799 | 589 |
Gross Unrealized Losses | (2,015) | (2,181) |
Fair Value | 129,662 | 129,260 |
Mortgage-backed investments, Fannie Mae | ||
Amortized Cost | 41,858 | 42,060 |
Gross Unrealized Gains | 118 | 126 |
Gross Unrealized Losses | (757) | (854) |
Fair Value | 41,219 | 41,332 |
Mortgage-backed investments, Freddie Mac | ||
Amortized Cost | 17,126 | 18,013 |
Gross Unrealized Gains | 86 | 95 |
Gross Unrealized Losses | (58) | (99) |
Fair Value | 17,154 | 18,009 |
Mortgage-backed investments, Ginnie Mae | ||
Amortized Cost | 18,705 | 19,133 |
Gross Unrealized Gains | 36 | 41 |
Gross Unrealized Losses | (591) | (540) |
Fair Value | 18,150 | 18,634 |
Municipal Bonds | ||
Amortized Cost | 13,163 | 13,203 |
Gross Unrealized Gains | 52 | 11 |
Gross Unrealized Losses | (64) | (107) |
Fair Value | 13,151 | 13,107 |
US Government agencies | ||
Amortized Cost | 15,521 | 15,937 |
Gross Unrealized Gains | 85 | 75 |
Gross Unrealized Losses | (148) | (155) |
Fair Value | 15,458 | 15,857 |
Corporate Bonds | ||
Amortized Cost | 24,505 | 22,506 |
Gross Unrealized Gains | 422 | 241 |
Gross Unrealized Losses | (397) | (426) |
Fair Value | $ 24,530 | $ 22,321 |
Investments_ Schedule of Availa
Investments: Schedule of Available for sale Securities in Continuous Unrealized Loss positions (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value | $ 72,174 | $ 81,535 |
Unrealized Loss | (1,656) | (1,872) |
Fair Value | 6,141 | 6,119 |
Unrealized Loss | (359) | (309) |
Fair Value | 78,315 | 87,654 |
Gross Unrealized Loss | (2,015) | (2,181) |
Mortgage-backed investments, Fannie Mae | ||
Fair Value | 32,840 | 34,763 |
Unrealized Loss | (757) | (854) |
Fair Value | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 32,840 | 34,763 |
Gross Unrealized Loss | (757) | (854) |
Mortgage-backed investments, Freddie Mac | ||
Fair Value | 8,013 | 8,343 |
Unrealized Loss | (58) | (99) |
Fair Value | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 8,013 | 8,343 |
Gross Unrealized Loss | (58) | (99) |
Mortgage backed investments Ginnie Mae | ||
Fair Value | 16,400 | 16,734 |
Unrealized Loss | (591) | (540) |
Fair Value | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 16,400 | 16,734 |
Gross Unrealized Loss | (591) | (540) |
Municipal Bonds | ||
Fair Value | 4,019 | 8,815 |
Unrealized Loss | (64) | (107) |
Fair Value | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 4,019 | 8,815 |
Gross Unrealized Loss | (64) | (107) |
US Government agencies | ||
Fair Value | 8,440 | 9,000 |
Unrealized Loss | (148) | (153) |
Fair Value | 0 | 1,426 |
Unrealized Loss | 0 | (2) |
Fair Value | 8,440 | 10,426 |
Gross Unrealized Loss | (148) | (155) |
Corporate Bonds | ||
Fair Value | 2,462 | 3,880 |
Unrealized Loss | (38) | (119) |
Fair Value | 6,141 | 4,693 |
Unrealized Loss | (359) | (307) |
Fair Value | 8,603 | 8,573 |
Gross Unrealized Loss | $ (397) | $ (426) |
Investments_ Narrative (Details
Investments: Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2017USD ($)securities | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)securities | |
Schedule of Available-for-sale Securities [Line Items] | |||
Investments pledged as collateral for FHLB advances | 50.00% | ||
Investments pledged as collateral for public deposits | $ 22,000,000 | $ 22,600,000 | |
Principal repayments on investments available-for-sale | $ 26,000 | $ 45,000 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | securities | 4 | 4 | |
Unrealized Loss | securities | 46 | 53 | |
Proceeds from Sale of Available-for-sale Securities, Debt | $ 0 | 0 | |
Payments to Acquire Marketable Securities | 3,008,000 | 8,285,000 | |
Call Option [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Net gain (loss) on sale of investments | 0 | ||
Collateralized Mortgage Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Marketable Securities, Equity Securities | 1,000,000 | 1,800,000 | |
Corporate Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Marketable Securities, Equity Securities | $ 2,000,000 | 5,000,000 | |
Municipal Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Marketable Securities, Equity Securities | $ 1,500,000 |
Investments_ Schedule of Avai28
Investments: Schedule of Available for sale Securities, Debt Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Investments [Abstract] | ||
Due within one year, Amortized Cost | $ 2,507 | |
Due after one year through five years, Amortized Cost | 6,841 | |
Due after five years through ten years, Amortized Cost | 26,016 | |
Due after ten years, Amortized Cost | 17,825 | |
Debt maturities, Amortized Cost | 53,189 | |
Mortgage-backed investments, Amortized Cost | 77,689 | |
Amortized Cost | 130,878 | $ 130,852 |
Due within one year, Fair Value | 2,520 | |
Due after one year through five years, Fair Value | 6,843 | |
Due after five years through ten years, Fair Value | 26,085 | |
Due after ten years, Fair Value | 17,691 | |
Debt maturities, Fair Value | 53,139 | |
Mortgage-backed investments, Fair Value | 76,523 | |
Fair Value | $ 129,662 |
Loans Receivable_ Schedule of29
Loans Receivable: Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Loans receivable | $ 913,839 | $ 900,187 | |||
Loans in process (LIP) | 61,735 | 72,026 | |||
Deferred loan fees, net | 2,178 | 2,167 | |||
ALLL | 11,158 | 10,951 | |||
Loans receivable, net | 838,768 | 815,043 | |||
One-to-four family, residential, owner occupied | |||||
Loans receivable | 135,743 | 137,834 | |||
One to four family residential non owner occupied | |||||
Loans receivable | 113,476 | 111,601 | |||
One to Four Family | |||||
Loans receivable | 249,219 | 249,435 | |||
One to four family residential | |||||
ALLL | 2,542 | 2,551 | $ 2,840 | $ 3,028 | |
Multifamily | |||||
Loans receivable | 121,718 | 123,250 | |||
ALLL | 1,188 | 1,199 | 1,184 | 1,193 | |
Commercial Real Estate | |||||
Loans receivable | 317,719 | 303,694 | |||
ALLL | 4,027 | 3,893 | 3,497 | 3,395 | |
Construction/Land Development One-to-four family residential | |||||
Loans receivable | 58,447 | 67,842 | |||
Construction Land Development Multifamily | |||||
Loans receivable | [1] | 108,801 | 111,051 | ||
Construction Land Development Land Development | |||||
Loans receivable | [1] | 39,687 | 30,055 | ||
Construction Land Development | |||||
Loans receivable | [1] | 206,935 | 208,948 | ||
ALLL | 2,791 | 2,792 | 1,392 | 1,193 | |
Business | |||||
Loans receivable | 10,370 | 7,938 | |||
ALLL | 311 | 237 | 197 | 229 | |
Consumer | |||||
Loans receivable | 7,878 | 6,922 | |||
ALLL | 299 | 279 | 361 | 425 | |
Property total | |||||
ALLL | $ 11,158 | $ 10,951 | $ 9,471 | $ 9,463 | |
[1] | At March 31, 2017, loans totaling $445.2 million were pledged to secure borrowings from the FHLB of Des Moines compared to $472.1 million at December 31, 2016. |
Loans Receivable_ Schedule of30
Loans Receivable: Schedule of Allowance for Loan and Lease Losses, Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | |
Loans receivable allowance for loan losses | $ 10,951 | $ 11,158 | $ 10,951 | ||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 10,951 | ||||
(Recapture) Provision | 200 | $ (100) | |||
Loans and Leases Receivable, Allowance, Ending Balance | 11,158 | ||||
One to four family residential | |||||
Impaired Financing Receivable, Related Allowance | 185 | $ 451 | |||
Loans receivable allowance for loan losses | 2,551 | 3,028 | 2,542 | 2,551 | 2,840 |
Total Loans | 249,219 | 256,817 | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 2,551 | 3,028 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 7 | 22 | |||
(Recapture) Provision | (16) | (210) | |||
Loans and Leases Receivable, Allowance, Ending Balance | 2,542 | 2,840 | |||
Financing Receivable, Collectively Evaluated for Impairment | 226,884 | 223,549 | |||
Financing Receivable, Individually Evaluated for Impairment | 22,335 | 33,268 | |||
One to four family residential | General Reserve | |||||
Loans receivable allowance for loan losses | 2,357 | 2,389 | 2,357 | 2,389 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Ending Balance | 2,357 | 2,389 | |||
Multifamily | |||||
Impaired Financing Receivable, Related Allowance | 0 | 0 | 0 | ||
Loans receivable allowance for loan losses | 1,199 | 1,193 | 1,188 | 1,199 | 1,184 |
Total Loans | 121,718 | 129,553 | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 1,199 | 1,193 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
(Recapture) Provision | (11) | (9) | |||
Loans and Leases Receivable, Allowance, Ending Balance | 1,188 | 1,184 | |||
Financing Receivable, Collectively Evaluated for Impairment | 120,566 | 127,966 | |||
Financing Receivable, Individually Evaluated for Impairment | 1,152 | 1,587 | |||
Multifamily | General Reserve | |||||
Loans receivable allowance for loan losses | 1,188 | 1,184 | 1,188 | 1,184 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Ending Balance | 1,188 | 1,184 | |||
Commercial Real Estate | |||||
Impaired Financing Receivable, Related Allowance | 24 | 26 | 114 | ||
Loans receivable allowance for loan losses | 3,893 | 3,395 | 4,027 | 3,893 | 3,497 |
Total Loans | 317,719 | 258,946 | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 3,893 | 3,395 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 104 | |||
(Recapture) Provision | 134 | (2) | |||
Loans and Leases Receivable, Allowance, Ending Balance | 4,027 | 3,497 | |||
Financing Receivable, Collectively Evaluated for Impairment | 314,036 | 254,477 | |||
Financing Receivable, Individually Evaluated for Impairment | 3,683 | 4,469 | |||
Commercial Real Estate | General Reserve | |||||
Loans receivable allowance for loan losses | 4,003 | 3,383 | 4,003 | 3,383 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Ending Balance | 4,003 | 3,383 | |||
Construction Land Development | |||||
Impaired Financing Receivable, Related Allowance | 0 | 81 | 56 | ||
Loans receivable allowance for loan losses | 2,792 | 1,193 | 2,791 | 2,792 | 1,392 |
Total Loans | 145,200 | 71,362 | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 2,792 | 1,193 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
(Recapture) Provision | (1) | 199 | |||
Loans and Leases Receivable, Allowance, Ending Balance | 2,791 | 1,392 | |||
Financing Receivable, Collectively Evaluated for Impairment | 145,200 | 70,867 | |||
Financing Receivable, Individually Evaluated for Impairment | 0 | 495 | |||
Construction Land Development | General Reserve | |||||
Loans receivable allowance for loan losses | 2,791 | 1,336 | 2,791 | 1,336 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Ending Balance | 2,791 | 1,336 | |||
Business | |||||
Impaired Financing Receivable, Related Allowance | 0 | 0 | |||
Loans receivable allowance for loan losses | 237 | 229 | 311 | 237 | 197 |
Total Loans | 10,370 | 6,548 | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 237 | 229 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
(Recapture) Provision | 74 | (32) | |||
Loans and Leases Receivable, Allowance, Ending Balance | 311 | 197 | |||
Financing Receivable, Collectively Evaluated for Impairment | 10,370 | 6,548 | |||
Financing Receivable, Individually Evaluated for Impairment | 0 | 0 | |||
Business | General Reserve | |||||
Loans receivable allowance for loan losses | 311 | 197 | 311 | 197 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Ending Balance | 311 | 197 | |||
Consumer | |||||
Impaired Financing Receivable, Related Allowance | 0 | 38 | |||
Loans receivable allowance for loan losses | 279 | 425 | 299 | 279 | 361 |
Total Loans | 7,878 | 5,972 | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 279 | 425 | |||
Charge-offs | 0 | (19) | |||
Recoveries | 0 | 1 | |||
(Recapture) Provision | 20 | (46) | |||
Loans and Leases Receivable, Allowance, Ending Balance | 299 | 361 | |||
Financing Receivable, Collectively Evaluated for Impairment | 7,778 | 5,785 | |||
Financing Receivable, Individually Evaluated for Impairment | 100 | 187 | |||
Consumer | General Reserve | |||||
Loans receivable allowance for loan losses | 299 | 323 | 299 | 323 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Ending Balance | 299 | 323 | |||
Property total | |||||
Impaired Financing Receivable, Related Allowance | 209 | 309 | 659 | ||
Loans receivable allowance for loan losses | 10,951 | 9,463 | 11,158 | $ 10,951 | 9,471 |
Total Loans | 852,104 | 729,198 | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 10,951 | 9,463 | |||
Charge-offs | 0 | (19) | |||
Recoveries | 7 | 127 | |||
(Recapture) Provision | 200 | (100) | |||
Loans and Leases Receivable, Allowance, Ending Balance | 11,158 | 9,471 | |||
Financing Receivable, Collectively Evaluated for Impairment | 824,834 | 689,192 | |||
Financing Receivable, Individually Evaluated for Impairment | 27,270 | 40,006 | |||
Property total | General Reserve | |||||
Loans receivable allowance for loan losses | 10,949 | 8,812 | $ 10,949 | $ 8,812 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Loans and Leases Receivable, Allowance, Ending Balance | $ 10,949 | $ 8,812 |
Loans Receivable_ Narratives (D
Loans Receivable: Narratives (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Loans Pledged as Collateral | $ 445,200,000 | $ 472,100,000 | |
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | $ 9,000 | $ 14,000 | |
Loans and Leases Receivable, Ratio of Nonperforming Loans to All Loans | 0.00% | 0.06% | |
Loans and Leases Receivable, Impaired, Commitment to Lend | $ 0 | $ 0 | |
Troubled Debt Restructuring Loans | 26,800,000 | 30,300,000 | |
Troubled Debt Restructuring Commitment To Extend Additional Credit | 0 | $ 0 | |
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 0 | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 109,000 | $ 174,000 | |
Minimum | |||
Troubled Debt Restructuring, Interest Rate Concession Period | 1 year | 1 year | 1 year |
Maximum | |||
Troubled Debt Restructuring, Interest Rate Concession Period | 3 years | 3 years | 3 years |
Loans Receivable_ Financing Rec
Loans Receivable: Financing Receivables, Aging of loans (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 0 | $ 0 | ||
One-to-four family, residential, owner occupied | ||||
Total | 0 | 473,000 | ||
Current | 135,743,000 | 137,361,000 | ||
Total Loans | 135,743,000 | [1],[2] | 137,834,000 | [3],[4] |
One to four family residential non owner occupied | ||||
Total | 0 | 0 | ||
Current | 113,476,000 | 111,601,000 | ||
Total Loans | 113,476,000 | [1],[2] | 111,601,000 | [3],[4] |
Multifamily | ||||
Total | 0 | 0 | ||
Current | 121,718,000 | 123,250,000 | ||
Total Loans | 121,718,000 | [1],[2] | 123,250,000 | [3],[4] |
Commercial Real Estate | ||||
Total | 0 | 0 | ||
Current | 317,719,000 | 303,694,000 | ||
Total Loans | 317,719,000 | [1],[2] | 303,694,000 | [3],[4] |
Construction Land Development | ||||
Total | 0 | 0 | ||
Current | 145,200,000 | 136,922,000 | ||
Total Loans | 145,200,000 | [1],[2] | 136,922,000 | [3],[4] |
Real Estate, Total | ||||
Total | 0 | 473,000 | ||
Current | 833,856,000 | 812,828,000 | ||
Total Loans | 833,856,000 | [1],[2] | 813,301,000 | [3],[4] |
Business | ||||
Total | 0 | 0 | ||
Current | 10,370,000 | 7,938,000 | ||
Total Loans | 10,370,000 | [1],[2] | 7,938,000 | [3],[4] |
Consumer | ||||
Total | 0 | 0 | ||
Current | 7,878,000 | 6,922,000 | ||
Total Loans | 7,878,000 | [1],[2] | 6,922,000 | [3],[4] |
Property total | ||||
Total | 0 | 473,000 | ||
Current | 852,104,000 | 827,688,000 | ||
Total Loans | 852,104,000 | [1],[2],[5],[6] | 828,161,000 | [3],[4],[7],[8] |
Financing Receivables, 30 to 59 Days Past Due [Member] | One-to-four family, residential, owner occupied | ||||
Total | 0 | 304,000 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | One to four family residential non owner occupied | ||||
Total | 0 | 0 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Multifamily | ||||
Total | 0 | 0 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Real Estate | ||||
Total | 0 | 0 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Construction Land Development | ||||
Total | 0 | 0 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Real Estate, Total | ||||
Total | 0 | 304,000 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Business | ||||
Total | 0 | 0 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer | ||||
Total | 0 | 0 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Property total | ||||
Total | 0 | 304,000 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | One-to-four family, residential, owner occupied | ||||
Total | 0 | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | One to four family residential non owner occupied | ||||
Total | 0 | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Multifamily | ||||
Total | 0 | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Real Estate | ||||
Total | 0 | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Construction Land Development | ||||
Total | 0 | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Real Estate, Total | ||||
Total | 0 | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Business | ||||
Total | 0 | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer | ||||
Total | 0 | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Property total | ||||
Total | 0 | 0 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | One-to-four family, residential, owner occupied | ||||
Total | 0 | 169,000 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | One to four family residential non owner occupied | ||||
Total | 0 | 0 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Multifamily | ||||
Total | 0 | 0 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Real Estate | ||||
Total | 0 | 0 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Construction Land Development | ||||
Total | 0 | 0 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Real Estate, Total | ||||
Total | 0 | 169,000 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Business | ||||
Total | 0 | 0 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer | ||||
Total | 0 | 0 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Property total | ||||
Total | $ 0 | $ 169,000 | ||
[1] | Net of LIP. | |||
[2] | There were no loans 90 days and greater past due and still accruing interest at March 31, 2017. | |||
[3] | Net of LIP. | |||
[4] | There were no loans 90 days and greater past due and still accruing interest at December 31, 2016. | |||
[5] | Net of LIP. | |||
[6] | Net of LIP. | |||
[7] | Net of LIP. | |||
[8] | Net of LIP. |
Loans Receivable Loans Receivab
Loans Receivable Loans Receivable: Schedule of non accrual loans by type (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 29,107 | $ 41,650 | |
Nonaccrual Loans, total | 602 | $ 858 | |
One to Four Family | |||
Nonaccrual Loans, total | 545 | 798 | |
Consumer | |||
Nonaccrual Loans, total | $ 57 | $ 60 |
Loans Receivable_ Financing R34
Loans Receivable: Financing Receivables, Summary of loans by type and risk category (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | ||
One to four family residential | ||||
Financing Receivable, Net | $ 249,219,000 | $ 249,435,000 | ||
Multifamily | ||||
Financing Receivable, Net | 121,718,000 | [1],[2] | 123,250,000 | [3],[4] |
Commercial Real Estate | ||||
Financing Receivable, Net | 317,719,000 | [1],[2] | 303,694,000 | [3],[4] |
Construction Land Development | ||||
Financing Receivable, Net | 145,200,000 | [1],[2] | 136,922,000 | [3],[4] |
Business | ||||
Financing Receivable, Net | 10,370,000 | [1],[2] | 7,938,000 | [3],[4] |
Consumer | ||||
Financing Receivable, Net | 7,878,000 | [1],[2] | 6,922,000 | [3],[4] |
Property total | ||||
Financing Receivable, Net | 852,104,000 | [1],[2],[5],[6] | 828,161,000 | [3],[4],[7],[8] |
One-to-four family, residential, owner occupied | ||||
Financing Receivable, Net | 135,743,000 | [1],[2] | 137,834,000 | [3],[4] |
One to four family residential non owner occupied | ||||
Financing Receivable, Net | 113,476,000 | [1],[2] | 111,601,000 | [3],[4] |
Performing Financing Receivable | One to four family residential | ||||
Financing Receivable, Net | 248,674,000 | [9] | 248,637,000 | [10] |
Performing Financing Receivable | Multifamily | ||||
Financing Receivable, Net | 121,718,000 | [9] | 123,250,000 | [10] |
Performing Financing Receivable | Commercial Real Estate | ||||
Financing Receivable, Net | 317,719,000 | [9] | 303,694,000 | [10] |
Performing Financing Receivable | Construction Land Development | ||||
Financing Receivable, Net | 145,200,000 | [9] | 136,922,000 | [10] |
Performing Financing Receivable | Business | ||||
Financing Receivable, Net | 10,370,000 | [9] | 7,938,000 | [10] |
Performing Financing Receivable | Consumer | ||||
Financing Receivable, Net | 7,821,000 | [9] | 6,862,000 | [10] |
Performing Financing Receivable | Property total | ||||
Financing Receivable, Net | 851,502,000 | [6],[9] | 827,303,000 | [7],[10] |
Performing Financing Receivable | One-to-four family, residential, owner occupied | ||||
Financing Receivable, Net | 135,200,000 | 137,000,000 | ||
Performing Financing Receivable | One to four family residential non owner occupied | ||||
Financing Receivable, Net | 113,500,000 | 111,600,000 | ||
Nonperforming Financing Receivable | One to four family residential | ||||
Financing Receivable, Net | 545,000 | [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 | 57,000 | [11] | 60,000 | [12] |
Nonperforming Financing Receivable | Property total | ||||
Financing Receivable, Net | 602,000 | [6],[11] | 858,000 | [7],[12] |
Nonperforming Financing Receivable | One-to-four family, residential, owner occupied | ||||
Financing Receivable, Net | 545,000 | 798,000 | ||
Pass | One to four family residential | ||||
Financing Receivable, Net | 245,299,000 | 245,237,000 | ||
Pass | Multifamily | ||||
Financing Receivable, Net | 121,718,000 | 123,250,000 | ||
Pass | Commercial Real Estate | ||||
Financing Receivable, Net | 314,698,000 | 300,655,000 | ||
Pass | Construction Land Development | ||||
Financing Receivable, Net | 145,200,000 | 136,427,000 | ||
Pass | Business | ||||
Financing Receivable, Net | 10,370,000 | 7,938,000 | ||
Pass | Consumer | ||||
Financing Receivable, Net | 7,633,000 | 6,674,000 | ||
Pass | Property total | ||||
Financing Receivable, Net | 844,918,000 | [5] | 820,181,000 | [8] |
Special Mention | One to four family residential | ||||
Financing Receivable, Net | 2,824,000 | 2,847,000 | ||
Special Mention | Multifamily | ||||
Financing Receivable, Net | 0 | 0 | ||
Special Mention | Commercial Real Estate | ||||
Financing Receivable, Net | 3,021,000 | 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 | 6,033,000 | [5] | 6,074,000 | [8] |
Substandard | One to four family residential | ||||
Financing Receivable, Net | 1,096,000 | 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 | 57,000 | 60,000 | ||
Substandard | Property total | ||||
Financing Receivable, Net | $ 1,153,000 | [5] | $ 1,906,000 | [8] |
[1] | Net of LIP. | |||
[2] | There were no loans 90 days and greater past due and still accruing interest at March 31, 2017. | |||
[3] | Net of LIP. | |||
[4] | There were no loans 90 days and greater past due and still accruing interest at December 31, 2016. | |||
[5] | Net of LIP. | |||
[6] | Net of LIP. | |||
[7] | Net of LIP. | |||
[8] | Net of LIP. | |||
[9] | There were $135.2 million of owner-occupied one-to-four family residential loans and $113.5 million of non-owner occupied one-to-four family residential loans classified as performing. | |||
[10] | 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. | |||
[11] | The $545,000 of one-to-four family residential loans classified as nonperforming are all owner-occupied. December 31, 2016 One-to-FourFamilyResidential Multifamily CommercialReal Estate Construction/Land Business Consumer Total (1) (In thousands)Performing (2)$248,637 $123,250 $303,694 $136,922 $7,938 $6,862 $827,303Nonperforming (3)798 — — — — 60 858Total loans$249,435 $123,250 $303,694 $136,922 $7,938 $6,922 $828,161 | |||
[12] | The $798,000 of one-to-four family residential loans classified as nonperforming are all owner-occupied. |
Loans Receivable_ Schedule of I
Loans Receivable: Schedule of Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | $ 22,011 | $ 29,569 | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 316 | 449 | |||
Impaired Financing Receivable, Recorded Investment | 27,061 | [1] | $ 30,632 | [2] | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 7,096 | 12,081 | |||
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 91 | 148 | |||
Impaired Financing Receivable, Average Recorded Investment | 29,107 | 41,650 | |||
Impaired Financing Receivable, Interest Income, Accrual Method | 407 | 597 | |||
One-to-four family, residential, owner occupied | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,012 | [3] | 2,216 | [4] | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 2,284 | [5] | 2,475 | [6] | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,888 | [3] | 1,896 | [4] | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 1,958 | [5] | 1,965 | [6] | |
Impaired Financing Receivable, Related Allowance | 48 | 51 | |||
Impaired Financing Receivable, Recorded Investment | 3,900 | [3] | 4,112 | [4] | |
Impaired Financing Receivable, Unpaid Principal Balance | 4,242 | [5] | 4,440 | [6] | |
One to four family residential non owner occupied | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 14,356 | [3] | 16,634 | [4] | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 14,374 | [5] | 16,652 | [6] | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 4,079 | [3] | 4,326 | [4] | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 4,101 | [5] | 4,347 | [6] | |
Impaired Financing Receivable, Related Allowance | 137 | 151 | |||
Impaired Financing Receivable, Recorded Investment | 18,435 | [3] | 20,960 | [4] | |
Impaired Financing Receivable, Unpaid Principal Balance | 18,475 | [5] | 20,999 | [6] | |
Multifamily | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,152 | 1,564 | [4] | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,152 | 1,564 | [4] | ||
Impaired Financing Receivable, Related Allowance | 0 | 0 | 0 | ||
Impaired Financing Receivable, Recorded Investment | 1,152 | [3] | 1,564 | [4] | |
Impaired Financing Receivable, Unpaid Principal Balance | 1,152 | [5] | 1,564 | [6] | |
Commercial Real Estate | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,932 | [3] | 2,952 | [4] | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 2,997 | [5] | 3,012 | [6] | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 751 | [3] | 755 | [4] | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 751 | [5] | 755 | [6] | |
Impaired Financing Receivable, Related Allowance | 24 | 114 | 26 | ||
Impaired Financing Receivable, Recorded Investment | 3,683 | [3] | 3,707 | [4] | |
Impaired Financing Receivable, Unpaid Principal Balance | 3,748 | [5] | 3,767 | [6] | |
Consumer | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 100 | [3] | 103 | [4] | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 146 | [5] | 148 | [6] | |
Impaired Financing Receivable, Related Allowance | 0 | 0 | |||
Impaired Financing Receivable, Recorded Investment | 100 | [3] | 103 | [4] | |
Impaired Financing Receivable, Unpaid Principal Balance | 146 | [5] | 148 | [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 | 56 | 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 | 20,552 | [3] | 23,469 | [4] | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 20,953 | [5] | 23,851 | [6] | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 6,718 | [3] | 7,472 | [4] | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 6,810 | [5] | 7,562 | [6] | |
Impaired Financing Receivable, Related Allowance | 209 | $ 659 | 309 | ||
Impaired Financing Receivable, Recorded Investment | 27,270 | [3] | 30,941 | [4] | |
Impaired Financing Receivable, Unpaid Principal Balance | $ 27,763 | [5] | $ 31,413 | [6] | |
[1] | tal fair value of impaired loans is net of $209,000 of specific reserves on performing TDRs. Fair Value Measurements at December 31, 2016 Fair ValueMeasurements Quoted Prices inActive Marketsfor IdenticalAssets (Level 1) SignificantOtherObservableInputs (Level 2) SignificantUnobservableInputs(Level 3) (In thousands)Impaired loans (included in loans receivable, net) (1)$30,632 $— $— $30,632OREO 2,331 — — 2,331Total$32,963 $— $— $32,963 | ||||
[2] | tal fair value of impaired loans is net of $309,000 of specific reserves on performing TDRs. | ||||
[3] | Represents the loan balance less charge-offs. | ||||
[4] | Represents the loan balance less charge-offs. | ||||
[5] | Contractual loan principal balance. | ||||
[6] | Contractual loan principal balance. |
Loans Receivable_ Average Recor
Loans Receivable: Average Recorded Investment and Interest Income Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | $ 22,011 | $ 29,569 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 316 | 449 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 7,096 | 12,081 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 91 | 148 |
Impaired Financing Receivable, Average Recorded Investment | 29,107 | 41,650 |
Impaired Financing Receivable, Interest Income, Accrual Method | 407 | 597 |
One-to-four family, residential, owner occupied | ||
Accounts, Notes, Loans and Financing Receivable | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 2,114 | 2,872 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 31 | 60 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,892 | 2,116 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 26 | 29 |
Impaired Financing Receivable, Average Recorded Investment | 4,006 | 4,988 |
Impaired Financing Receivable, Interest Income, Accrual Method | 57 | 89 |
One to four family residential non owner occupied | ||
Accounts, Notes, Loans and Financing Receivable | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 15,495 | 23,108 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 211 | 321 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 4,203 | 6,587 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 55 | 78 |
Impaired Financing Receivable, Average Recorded Investment | 19,698 | 29,695 |
Impaired Financing Receivable, Interest Income, Accrual Method | 266 | 399 |
Multifamily | ||
Accounts, Notes, Loans and Financing Receivable | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,358 | 1,001 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 19 | 27 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 0 | 590 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 1,358 | 1,591 |
Impaired Financing Receivable, Interest Income, Accrual Method | 19 | 27 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 2,942 | 2,466 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 53 | 39 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 753 | 2,217 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 10 | 35 |
Impaired Financing Receivable, Average Recorded Investment | 3,695 | 4,683 |
Impaired Financing Receivable, Interest Income, Accrual Method | 63 | 74 |
Consumer Loan | ||
Accounts, Notes, Loans and Financing Receivable | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 102 | 122 |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 2 | 2 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 0 | 76 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 0 | 1 |
Impaired Financing Receivable, Average Recorded Investment | 102 | 198 |
Impaired Financing Receivable, Interest Income, Accrual Method | 2 | 3 |
Construction Land Development | ||
Accounts, Notes, Loans and Financing Receivable | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 248 | 495 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 0 | 5 |
Impaired Financing Receivable, Average Recorded Investment | 248 | 495 |
Impaired Financing Receivable, Interest Income, Accrual Method | $ 0 | $ 5 |
Loans Receivable_ Troubled Debt
Loans Receivable: Troubled Debt Restructurings on Financing Receivables (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($)loan | Dec. 31, 2016USD ($) | |
Financing Receivable, Modifications, Recorded Investment | $ 26,800,000 | $ 30,300,000 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 109,000 | $ 174,000 | |
Troubled Debt Restructuring Commitment To Extend Additional Credit | 0 | $ 0 | |
Number of Loans | loan | 2 | ||
Pre-Modifications Outstanding Recorded Investment | $ 1,053,000 | ||
Post-Modifications Outstanding Recorded Investment | $ 1,053,000 | ||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 0 | ||
One to four family residential [Member] | Principal and interest with interest rate concession and advancement of maturity date | |||
Number of Loans | loan | 1 | ||
Pre-Modifications Outstanding Recorded Investment | $ 558,000 | ||
Post-Modifications Outstanding Recorded Investment | $ 558,000 | ||
Commercial Real Estate | Advancement of maturity date | |||
Number of Loans | loan | 1 | ||
Pre-Modifications Outstanding Recorded Investment | $ 495,000 | ||
Post-Modifications Outstanding Recorded Investment | $ 495,000 | ||
Minimum [Member] | |||
Troubled Debt Restructuring, Interest Rate Concession Period | 1 year | 1 year | 1 year |
Maximum [Member] | |||
Troubled Debt Restructuring, Interest Rate Concession Period | 3 years | 3 years | 3 years |
Other Real Estate Owned - Other
Other Real Estate Owned - Other Real Estate, Roll Forward (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other Real Estate [Roll Forward] | ||
Balance at beginning of period | $ 2,331,000 | $ 3,663,000 |
Loans transferred to OREO | 0 | 0 |
Gross proceeds from sale of OREO | 0 | (1,000) |
Gain on sale of OREO | 0 | 1,000 |
Market value adjustments | (50,000) | (258,000) |
Balance at end of period | $ 2,281,000 | $ 3,405,000 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) | 3 Months Ended | |||
Mar. 31, 2017USD ($)property | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Other Real Estate Disposal Properties | property | 0 | |||
Other Real Estate, Valuation Adjustments | $ 50,000 | $ 258,000 | ||
Proceeds from sales of OREO properties | 0 | 1,000 | ||
Other Real Estate | 2,281,000 | $ 3,405,000 | $ 2,331,000 | $ 3,663,000 |
Kitsap Property [Member] | ||||
Other Real Estate | 506,000 | |||
Commercial Real Estate | ||||
Other Real Estate | $ 2,300,000 |
Fair Value (Details)
Fair Value (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Specific reserves on performing TDRs | $ 209,000 | $ 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 Va
Fair Value: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Investments, fair value disclosure | $ 129,662 | $ 129,260 |
Derivative Asset, Fair Value, Gross Asset | 1,396 | 1,333 |
Assets, Fair Value Disclosure, Recurring | 131,058 | 130,593 |
Mortgage-backed investments, Fannie Mae | ||
Investments, fair value disclosure | 41,219 | 41,332 |
Mortgage-backed investments, Freddie Mac | ||
Investments, fair value disclosure | 17,154 | 18,009 |
Mortgage-backed investments, Ginnie Mae | ||
Investments, fair value disclosure | 18,150 | 18,634 |
Municipal Bonds | ||
Investments, fair value disclosure | 13,151 | 13,107 |
US Government agencies | ||
Investments, fair value disclosure | 15,458 | 15,857 |
Corporate Bonds | ||
Investments, fair value disclosure | 24,530 | 22,321 |
Derivative Financial Instruments, Assets [Member] | ||
Derivative Asset, Fair Value, Gross Asset | 1,396 | 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 | 129,662 | 129,260 |
Derivative Asset, Fair Value, Gross Asset | 1,396 | 1,333 |
Assets, Fair Value Disclosure, Recurring | 131,058 | 130,593 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed investments, Fannie Mae | ||
Investments, fair value disclosure | 41,219 | 41,332 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed investments, Freddie Mac | ||
Investments, fair value disclosure | 17,154 | 18,009 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed investments, Ginnie Mae | ||
Investments, fair value disclosure | 18,150 | 18,634 |
Significant Other Observable Inputs (Level 2) | Municipal Bonds | ||
Investments, fair value disclosure | 13,151 | 13,107 |
Significant Other Observable Inputs (Level 2) | US Government agencies | ||
Investments, fair value disclosure | 15,458 | 15,857 |
Significant Other Observable Inputs (Level 2) | Corporate Bonds | ||
Investments, fair value disclosure | 24,530 | 22,321 |
Significant Other Observable Inputs (Level 2) | Derivative Financial Instruments, Assets [Member] | ||
Derivative Asset, Fair Value, Gross Asset | 1,396 | 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 balance
Fair Value: Schedule of balances of assets and liabilities, measured at fair value on a non-recurring basis (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | ||
Derivative Asset, Fair Value, Gross Asset | $ 1,396 | $ 1,333 | ||||
Impaired loans (included in loans receivable, net) | 27,061 | [1] | 30,632 | [2] | ||
OREO | 2,281 | 2,331 | $ 3,405 | $ 3,663 | ||
Total, Fair Value | 29,342 | 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 | 1,396 | 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) | 27,061 | [1] | 30,632 | [2] | ||
OREO | 2,281 | 2,331 | ||||
Total, Fair Value | $ 29,342 | $ 32,963 | ||||
[1] | tal fair value of impaired loans is net of $209,000 of specific reserves on performing TDRs. Fair Value Measurements at December 31, 2016 Fair ValueMeasurements Quoted Prices inActive Marketsfor IdenticalAssets (Level 1) SignificantOtherObservableInputs (Level 2) SignificantUnobservableInputs(Level 3) (In thousands)Impaired loans (included in loans receivable, net) (1)$30,632 $— $— $30,632OREO 2,331 — — 2,331Total$32,963 $— $— $32,963 | |||||
[2] | tal fair value of impaired loans is net of $309,000 of specific reserves on performing TDRs. |
Fair Value_ Schedule of quantit
Fair Value: Schedule of quantitative information about Level 3 Fair Value Measurements on a nonrecurring basis (Details) - Level 3 - Market Approach Valuation Technique - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Loans Receivable | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair Value | $ 27,061 | $ 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 | $ 2,281 | $ 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 | 9.94% | 0.00% |
Other Real Estate Owned | Weighted Average | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair value of financial instruments, range | 2.16% | 0.00% |
Fair Value_ Balance Sheet Group
Fair Value: Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Investments available-for-sale | $ 129,662 | $ 129,260 |
FHLB stock | 8,102 | 8,031 |
Derivative Asset, Fair Value, Gross Asset | 1,396 | 1,333 |
Level 1 | ||
Cash on hand and in banks | 6,066 | 5,779 |
Interest-earning deposits with banks | 20,007 | 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 | 303,767 | 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 | 12,662 | 129,260 |
Loans receivable, net | 0 | 0 |
FHLB stock | 8,102 | 8,031 |
Accrued interest receivable | 3,389 | 3,147 |
Derivative Asset, Fair Value, Gross Asset | 1,396 | 1,333 |
Deposits | 0 | 0 |
Certificates of deposit, retail | 355,411 | 356,723 |
Certificates of deposit, brokered | 75,747 | 75,431 |
Advances from the FHLB | 168,491 | 170,221 |
Accrued interest payable | 237 | 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 | 840,069 | 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 | 6,066 | 5,779 |
Interest-earning deposits with banks | 20,007 | 25,573 |
Investments available-for-sale | 129,662 | 129,260 |
Loans receivable, net | 838,768 | 815,043 |
FHLB stock | 8,102 | 8,031 |
Accrued interest receivable | 3,389 | 3,147 |
Derivative Asset, Fair Value, Gross Asset | 1,396 | 1,333 |
Deposits | 303,767 | 285,335 |
Certificates of deposit, retail | 355,452 | 356,653 |
Certificates of deposit, brokered | 75,488 | 75,488 |
Advances from the FHLB | 171,500 | 171,500 |
Accrued interest payable | 237 | 231 |
Fair Value | ||
Cash on hand and in banks | 6,066 | 5,779 |
Interest-earning deposits with banks | 20,007 | 25,573 |
Investments available-for-sale | 12,662 | 129,260 |
Loans receivable, net | 840,069 | 818,054 |
FHLB stock | 8,102 | 8,031 |
Accrued interest receivable | 3,389 | 3,147 |
Derivative Asset, Fair Value, Gross Asset | 1,396 | 1,333 |
Deposits | 303,767 | 285,335 |
Certificates of deposit, retail | 355,411 | 356,723 |
Certificates of deposit, brokered | 75,747 | 75,431 |
Advances from the FHLB | 168,491 | 170,221 |
Accrued interest payable | $ 237 | $ 231 |
Derivatives (Details)
Derivatives (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ 908,000 | $ 866,000 | $ 908,000 |
Derivative Asset, Fair Value, Gross Asset | 1,396,000 | 1,333,000 | 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 | 50,000,000 | |
Cash Flow Hedging [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 50,000,000 | 50,000,000 | |
Derivative Asset, Fair Value, Gross Asset | $ 1,396,000 | $ 1,333,000 | $ 1,333,000 |
Derivative, Fixed Interest Rate | 1.34% | 1.34% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Allocated Share-based Compensation Expense | $ 110,000 | $ 93,000 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 39,000 | $ 32,000 |
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 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,371,896 | |
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 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 385,948 | |
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 | |
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 | |
Director [Member] | ||
Allocated Share-based Compensation Expense | $ 0 | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 0 |
Stock-Based Compensation Disclo
Stock-Based Compensation Disclosure of Share-based Compensation Arrangements by Share-based Payment Award (Details) | 3 Months Ended | ||
Mar. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Mar. 31, 2016USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding Beginning Balance, Shares | 603,820 | ||
Exercised, Shares | (97,540) | ||
Outstanding Ending Balance, Shares | 506,280 | 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 | $ 10.19 | ||
Exercised, Weighted Average Exercise Price | $ / shares | 9.78 | ||
Outstanding Ending Balance, Weighted Average Exercise Price | $ / shares | $ 10.27 | $ 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 | 5 years 2 months 25 days | ||
Outstanding Ending Balance, Weighted Average Remaining Contractual Term | 5 years 2 months 25 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options Outstanding, Aggregate Intrinsic [Roll Forward] | |||
Outstanding Beginning Balance, Aggregate Intrinsic Value | $ | $ 0 | ||
Exercised, Aggregate Intrinsic Value | $ | 0 | ||
Outstanding Ending Balance, Aggregate Intrinsic Value | $ | $ 3,747,449 | $ 0 | |
Share Based Compensation, Stock Option Plan, Additional Disclosures [Abstract] | |||
Expected to Vest, Shares | 501,210 | ||
Expected to Vest, Weighted Average Exercise Price | $ / shares | $ 10.26 | ||
Expected to Vest, Weighted Average Remaining Contractual Term in Years | 5 years 2 months 15 days | ||
Expected to Vest, Aggregate Intrinsic Value | $ | $ 3,714,537 | ||
Exercisable at end of period, Shares | 337,280 | ||
Exercisable at end of period, Weighted Average Exercise Price | $ / shares | 9.81 | ||
Exercisable at end of period, Weighted Average Remaining Contractual Term in Years | 4 years 2 months 18 days | ||
Exercisable at end of period, Aggregate Intrinsic Value | $ | $ 2,650,359 | ||
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 | $ | $ 110,000 | $ 93,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ||
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% | ||
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% | ||
First Financial Northwest, Inc. 2008 Equity Incentive Plan | Stock Options | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 524,791 | ||
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 6 months 24 days | ||
First Financial Northwest, Inc. 2008 Equity Incentive Plan | Restricted Stock | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 132,188 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | |||
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 | ||
Granted, Shares | 0 | ||
Vested, Shares | 0 | ||
Nonvested Ending Balance | 26,400 | 26,400 | |
Expected to vest assuming a 3% forfeiture rate over the vesting term, Shares | 25,608 | ||
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 | ||
Granted, Weighted Average Grant Date Fair Value | $ / shares | |||
Vested, Weighted-Average Grant Date Fair Value | $ / shares | |||
Nonvested Ending Balance, Weighted-Average Grant Date Fair Value | $ / shares | $ 9.13 | $ 9.13 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Canceled in Period | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instrument Other than Options, Canceled in Period, Weighted Average Grant Date Fair Value | $ / shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | ||
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 | 10 months 29 days |
Earnings Per Share_ Schedule 48
Earnings Per Share: Schedule of Earnings Per Share Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net income | $ 2,344 | $ 1,825 |
Less: Earnings allocated to participating securities | (5) | (6) |
Earnings allocated to common shareholders | $ 2,339 | $ 1,819 |
Basic weighted average common shares outstanding | 10,319,722 | 12,744,694 |
Dilutive stock options | 171,028 | 144,521 |
Dilutive restricted stock grants | 13,296 | 16,312 |
Diluted weighted average common shares outstanding | 10,504,046 | 12,905,527 |
Basic earnings (loss) per share (in dollars per share) | $ 0.23 | $ 0.14 |
Diluted earnings (loss) per share (in dollars per share) | $ 0.22 | $ 0.14 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 60,000 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Apr. 10, 2017branch | Mar. 31, 2017 | Dec. 31, 2016USD ($) |
Subsequent Event [Line Items] | |||
Deposits | $ | $ 102 | ||
Percentage of Interest-bearing Domestic Deposits to Deposits, Time Deposits | 3.125% | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Bank Branches to be Purchased, Agreement | branch | 4 |