Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 05, 2021 | Jun. 30, 2020 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity File Number | 001-35589 | ||
Entity Registrant Name | FS BANCORP, INC. | ||
Entity Incorporation, State or Country Code | WA | ||
Entity Tax Identification Number | 45-4585178 | ||
Entity Address, Address Line One | 6920 220th Street SW | ||
Entity Address, City or Town | Mountlake Terrace | ||
Entity Address, State or Province | WA | ||
Entity Address, Postal Zip Code | 98043 | ||
City Area Code | 425 | ||
Local Phone Number | 771-5299 | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | FSBW | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Common Stock, Shares Outstanding | 4,233,040 | ||
Entity Public Float | $ 147,557,403 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001530249 | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 11,554 | $ 13,175 |
Interest-bearing deposits at other financial institutions | 80,022 | 32,603 |
Total cash and cash equivalents | 91,576 | 45,778 |
Certificates of deposit at other financial institutions | 12,278 | 20,902 |
Securities available-for-sale, at fair value | 178,018 | 126,057 |
Securities held-to-maturity (fair value of $7,556) | 7,500 | 0 |
Loans held for sale, at fair value | 166,448 | 69,699 |
Loans receivable, net | 1,544,981 | 1,336,346 |
Accrued interest receivable | 7,030 | 5,908 |
Premises and equipment, net | 27,343 | 28,770 |
Operating lease right-of-use ("ROU") assets | 4,949 | 5,016 |
Federal Home Loan Bank ("FHLB") stock, at cost | 7,439 | 8,045 |
Other real estate owned ("OREO") | 90 | 168 |
Bank owned life insurance ("BOLI"), net | 36,226 | 35,356 |
Servicing rights, held at the lower of cost or fair value | 12,595 | 11,560 |
Goodwill | 2,312 | 2,312 |
Core deposit intangible, net | 4,751 | 5,457 |
Other assets | 9,705 | 11,682 |
TOTAL ASSETS | 2,113,241 | 1,713,056 |
LIABILITIES | ||
Noninterest-bearing accounts | 362,853 | 273,602 |
Interest-bearing accounts | 1,311,218 | 1,118,806 |
Total deposits | 1,674,071 | 1,392,408 |
Borrowings | 165,809 | 84,864 |
Principal amount | 10,000 | 10,000 |
Unamortized debt issuance costs | (115) | |
Total subordinated note less unamortized debt issuance costs | 10,000 | 9,885 |
Operating lease liabilities | 5,176 | 5,214 |
Deferred tax liability, net | 58 | 1,971 |
Other liabilities | 28,120 | 18,472 |
Total liabilities | 1,883,234 | 1,512,814 |
COMMITMENTS AND CONTINGENCIES (NOTE 12) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $.01 par value; 5,000,000 shares authorized; none issued or outstanding | ||
Common stock, $.01 par value; 45,000,000 shares authorized; 4,237,956 and 4,459,041 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively | 42 | 44 |
Additional paid-in capital | 81,318 | 89,268 |
Retained earnings | 146,405 | 110,715 |
Accumulated other comprehensive income, net of tax | 2,533 | 788 |
Unearned shares - Employee Stock Ownership Plan ("ESOP") | (291) | (573) |
Total stockholders' equity | 230,007 | 200,242 |
Total liabilities and stockholders' equity | $ 2,113,241 | $ 1,713,056 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Items included in Consolidated Statement of Financial Position [Abstract] | ||
Securities held-to-maturity, at fair value | $ 7,556 | |
Preferred stock par value, in dollars per share | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock par value, in dollars per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 45,000,000 | 45,000,000 |
Common stock, shares issued | 4,237,956 | 4,459,041 |
Common stock, shares outstanding | 4,237,956 | 4,459,041 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
INTEREST INCOME | ||
Loans receivable, including fees | $ 84,128,000 | $ 84,706,000 |
Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions | 4,709,000 | 4,919,000 |
Total interest and dividend income | 88,837,000 | 89,625,000 |
INTEREST EXPENSE | ||
Deposits | 11,980,000 | 16,162,000 |
Borrowings | 1,961,000 | 2,476,000 |
Subordinated note | 776,000 | 679,000 |
Total interest expense | 14,717,000 | 19,317,000 |
NET INTEREST INCOME | 74,120,000 | 70,308,000 |
PROVISION FOR LOAN LOSSES | 13,036,000 | 2,880,000 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 61,084,000 | 67,428,000 |
NONINTEREST INCOME | ||
Service charges and fee income | 2,373,000 | 6,554,000 |
Gain on sale of loans | 48,842,000 | 14,248,000 |
Loss on disposed fixed assets | (26,000) | |
Gain on sale of investment securities | 300,000 | 32,000 |
Earnings on cash surrender value of BOLI | 870,000 | 872,000 |
Other noninterest income | 2,974,000 | 1,355,000 |
Total noninterest income | 55,359,000 | 23,035,000 |
NONINTEREST EXPENSE | ||
Salaries and benefits | 38,095,000 | 33,816,000 |
Operations | 10,471,000 | 9,722,000 |
Occupancy | 4,736,000 | 4,640,000 |
Data processing | 4,388,000 | 4,972,000 |
Loss (gain) on sale of OREO | 2,000 | (138,000) |
OREO expenses | 4,000 | 13,000 |
Loan costs | 2,066,000 | 3,238,000 |
Professional and board fees | 2,797,000 | 2,426,000 |
Federal Deposit Insurance Corporation ("FDIC") insurance | 829,000 | 358,000 |
Marketing and advertising | 530,000 | 678,000 |
Acquisition costs | 0 | 1,756,000 |
Amortization of core deposit intangible | 706,000 | 760,000 |
Impairment of servicing rights | 1,969,000 | 92,000 |
Total noninterest expense | 66,593,000 | 62,333,000 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 49,850,000 | 28,130,000 |
PROVISION FOR INCOME TAXES | 10,586,000 | 5,413,000 |
NET INCOME | $ 39,264,000 | $ 22,717,000 |
Basic earnings per share(in dollars per share) | $ 9.14 | $ 5.13 |
Diluted earnings per share(in dollars per share) | $ 8.97 | $ 5.01 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 39,264 | $ 22,717 |
Securities available-for-sale: | ||
Unrealized holding gain during period | 3,754 | 2,920 |
Income tax provision related to unrealized holding gain | (807) | (628) |
Reclassification adjustment for realized gains, net included in net income | (300) | (32) |
Income tax provision related to reclassification for realized gains, net | 65 | 7 |
Cash flow hedges: | ||
Unrealized derivative losses during period | (1,429) | |
Income tax benefit related to unrealized derivative losses | 307 | |
Reclassification adjustment for interest expense, net included in net income | 198 | |
Income tax provision related to reclassification for expense, net | (43) | |
Other comprehensive income, net of tax | 1,745 | 2,267 |
COMPREHENSIVE INCOME | $ 41,009 | $ 24,984 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income, Net of Tax | Unearned ESOP Shares | Total |
Balance at Dec. 31, 2018 | $ 45 | $ 91,466 | $ 90,854 | $ (1,479) | $ (848) | $ 180,038 |
Balance (in shares) at Dec. 31, 2018 | 4,492,478 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 22,717 | 22,717 | ||||
Dividends paid | (2,856) | (2,856) | ||||
Share-based compensation | 869 | 869 | ||||
Restricted stock awards (in shares) | 20,215 | |||||
Common stock repurchased | $ (1) | (4,799) | (4,800) | |||
Common stock repurchased (in shares) | (102,384) | |||||
Common stock repurchased for employee/director taxes paid on restricted stock awards | (204) | (204) | ||||
Common stock repurchased for employee/director taxes paid on restricted stock awards (in shares) | (4,037) | |||||
Stock options exercised, net | 705 | 705 | ||||
Stock options exercised, net (in shares) | 52,769 | |||||
Other comprehensive income, net of tax | 2,267 | 2,267 | ||||
ESOP shares allocated | 1,231 | 275 | 1,506 | |||
Balance at Dec. 31, 2019 | $ 44 | 89,268 | 110,715 | 788 | (573) | 200,242 |
Balance (in shares) at Dec. 31, 2019 | 4,459,041 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 39,264 | 39,264 | ||||
Dividends paid | (3,574) | (3,574) | ||||
Share-based compensation | 1,020 | 1,020 | ||||
Restricted stock awards | $ 1 | 1 | ||||
Restricted stock awards (in shares) | 24,880 | |||||
Common stock repurchased | $ (3) | (9,799) | (9,802) | |||
Common stock repurchased (in shares) | (259,543) | |||||
Common stock repurchased for employee/director taxes paid on restricted stock awards | (35) | (35) | ||||
Common stock repurchased for employee/director taxes paid on restricted stock awards (in shares) | (820) | |||||
Stock options exercised, net | (161) | (161) | ||||
Stock options exercised, net (in shares) | 14,398 | |||||
Other comprehensive income, net of tax | 1,745 | 1,745 | ||||
ESOP shares allocated | 1,025 | 282 | 1,307 | |||
Balance at Dec. 31, 2020 | $ 42 | $ 81,318 | $ 146,405 | $ 2,533 | $ (291) | $ 230,007 |
Balance (in shares) at Dec. 31, 2020 | 4,237,956 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (in dollars per share) | $ 0.84 | $ 0.65 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS (USED BY) FROM OPERATING ACTIVITIES | ||
Net income | $ 39,264 | $ 22,717 |
Adjustments to reconcile net income to net cash from operating activities | ||
Provision for loan losses | 13,036 | 2,880 |
Depreciation, amortization and accretion | 13,618 | 12,003 |
Compensation expense related to stock options and restricted stock awards | 1,020 | 869 |
ESOP compensation expense for allocated shares | 1,307 | 1,506 |
(Benefit) provision for deferred income taxes | (2,390) | 988 |
Increase in cash surrender value of BOLI | (870) | (872) |
Gain on sale of loans held for sale | (48,842) | (14,126) |
Gain on sale of portfolio loans | (122) | |
Gain on sale of investment securities | (300) | (32) |
Loss on disposed fixed assets | 26 | |
Origination of loans held for sale | (1,730,665) | (804,619) |
Proceeds from sale of loans held for sale | 1,670,431 | 795,184 |
Impairment of servicing rights | 1,969 | 92 |
Loss (gain) on sale of OREO | 2 | (138) |
Changes in operating assets and liabilities | ||
Accrued interest receivable | (1,122) | (147) |
Other assets | 5,511 | (4,589) |
Other liabilities | 5,714 | (2,443) |
Net cash (used by) from operating activities | (32,317) | 9,177 |
Activity in securities available-for-sale: | ||
Proceeds from sale of investment securities | 12,214 | 10,554 |
Maturities, prepayments, and calls | 37,964 | 24,293 |
Purchases | (99,390) | (61,282) |
Maturities of certificates of deposit at other financial institutions | 8,624 | 3,650 |
Activity in securities held-to-maturity: | ||
Purchases | 7,500 | |
Purchase of certificates of deposit at other financial institutions | (2,480) | |
Loan originations and principal collections, net | (189,162) | (36,904) |
Purchase of portfolio loans | (32,743) | (1,799) |
Proceeds from sale of portfolio loans | 8,487 | |
Proceeds from sale of OREO, net | 76 | 901 |
Purchase of premises and equipment, net | (1,379) | (2,463) |
Change in FHLB stock, net | 606 | 1,842 |
Net cash used by investing activities | (270,690) | (55,201) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in deposits | 281,431 | 118,714 |
Proceeds from borrowings | 601,158 | 401,447 |
Repayments of borrowings | (520,213) | (453,983) |
Dividends paid on common stock | (3,574) | (2,856) |
(Disbursements) proceeds from stock options exercised, net | (161) | 705 |
Common stock repurchased for employee/director taxes paid on restricted stock awards | (34) | (204) |
Common stock repurchased | (9,802) | (4,800) |
Net cash from financing activities | 348,805 | 59,023 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 45,798 | 12,999 |
CASH AND CASH EQUIVALENTS, beginning of year | 45,778 | 32,779 |
CASH AND CASH EQUIVALENTS, end of year | 91,576 | 45,778 |
Cash paid during the period for: | ||
Interest on deposits and borrowings | 14,584 | 18,709 |
Income taxes | 11,685 | 4,351 |
SUPPLEMENTARY DISCLOSURES OF NONCASH OPERATING, INVESTING AND FINANCING ACTIVITIES | ||
Change in unrealized gain on investment securities, net | 3,454 | 2,888 |
Change in unrealized loss on cash flow hedges, net | (1,231) | |
Retention in gross mortgage servicing rights from loan sales | 11,139 | 5,400 |
Property taken in settlement of loans | 312 | |
Right-of-use assets in exchange for lease liabilities | $ 1,202 | $ 6,232 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Basis of Presentation and Summary of Significant Accounting Policies | |
Basis of Presentation and Summary of Significant Accounting Policies | NOTE 1 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations - a Financial Statement Presentation - Amounts presented in the consolidated financial statements and footnote tables are rounded and presented to the nearest thousands of dollars except per share amounts. If the amounts are above $1.0 million, they are rounded one decimal point, and if they are above $1.0 billion, they are rounded two decimal points. Principles of Consolidation - Segment Reporting - Subsequent Events - Cash and Cash Equivalents - Securities - non-contingently callable debt securities which are amortized to the earliest call date, rather than the contractual maturity date. Unrealized holding gains and losses, net of the related deferred tax effect, are reported as a net amount in a separate component of equity entitled accumulated other comprehensive income (loss). Any declines in the values of these securities that are considered to be other-than-temporary-impairment (“OTTI”) and credit-related are recognized in earnings. Noncredit-related OTTI on securities not expected to be sold is recognized in other comprehensive income (loss). The review for OTTI is conducted on an ongoing basis and takes into account the severity and duration of the impairment, recent events specific to the issuer or industry, fair value in relationship to cost, extent and nature of change in fair value, creditworthiness of the issuer including external credit ratings and recent downgrades, trends and volatility of earnings, current analysts’ evaluations, and other key measures. In addition, the Company does not intend to sell the securities and it is more likely than not that we will not be required to sell the securities before recovery of their amortized cost basis. In doing this, we take into account our balance sheet management strategy and consideration of current and future market conditions. Dividends and interest income are recognized when earned. Federal Home Loan Bank Stock - Management evaluates FHLB stock for impairment as needed. Management’s determination of whether these investments are impaired is based on its assessment of the ultimate recoverability of cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as (1) the significance of any decline in net assets of the FHLB as compared with the capital stock amount for the FHLB and the length of time this situation has persisted; (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; (3) the impact of legislative and regulatory changes on institutions and, accordingly, the customer base of the FHLB; and (4) the liquidity position of the FHLB. Based on its evaluation, management determined that there was no impairment of FHLB stock at December 31, 2020 and 2019, respectively. Loans Held for Sale - Other Real Estate Owned - Derivatives - The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and resulting designation. The Company’s hedging policies permit the use of various derivative financial instruments to manage interest rate risk or to hedge specified assets and liabilities. To qualify for hedge accounting, derivatives must be highly effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the derivative contract. If derivative instruments are designated as fair value hedges, and such hedges are highly effective, both the change in the fair value of the hedge and the hedged item are included in current earnings. If derivative instruments are designated as cash flow hedges, fair value adjustments related to the effective portion are recorded in other comprehensive income and are reclassified to earnings when the hedged transaction is reflected in earnings. Ineffective portions of cash flow hedges are reflected in earnings as they occur. Actual cash receipts and/or payments and related accruals on derivatives related to hedges are recorded as adjustments to the interest income or interest expense associated with the hedged item. During the life of the hedge, the Company formally assesses whether derivatives designated as hedging instruments continue to be highly effective in offsetting changes in the fair value or cash flows of hedged items. If it is determined that a hedge has ceased to be highly effective, the Company will discontinue hedge accounting prospectively. At such time, previous adjustments to the carrying value of the hedged item are reversed into current earnings and the derivative instrument is reclassified to a trading position recorded at fair value. For derivatives not designated as hedges, changes in fair value are recognized in earnings, in noninterest income. Loans Receivable - Interest on loans is accrued daily based on the principal amount outstanding. Generally, the accrual of interest on loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due or when they are past due 90 days as to either principal or interest (based on contractual terms), unless they are well secured and in the process of collection. All interest accrued but not collected for loans that are placed on nonaccrual status or charged off are reversed against interest income. Subsequent collections on a cash basis are applied proportionately to past due principal and interest, unless collectability of principal is in doubt, in which case all payments are applied to principal. Loans are returned to accrual status when the loan is performing according to its contractual terms for at least six months and the collectability of principal and interest is no longer doubtful. The Company did not designate loans with payment deferrals granted due to the novel coronavirus of 2019 (“COVID-19’) pandemic as delinquent in accordance with provisions of The Coronavirus Aid, Relief, and Economic Security Act of 2020 (the “CARES Act”) and the Consolidated Appropriations Act, 2021 (the “CAA 2021”) and related regulatory guidance. Impaired Loans - The categories of nonaccrual loans and impaired loans overlap, although they are not coextensive. The Company considers all circumstances regarding the loan and borrower on an individual basis when determining whether an impaired loan should be placed on nonaccrual status, such as the financial strength of the borrower, the collateral value, reasons for delay, payment record, the amount of past due and the number of days past due. Loans that experience insignificant payment delays and payment shortfalls are generally not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of shortfall in relation to the principal and interest owed. Troubled Debt Restructured Loans the maturity at an interest rate below current market; a reduction in the face amount of the debt; a reduction in the accrued interest; or re-aging, extensions, deferrals and renewals. TDR loans are considered impaired loans and are individually evaluated for impairment and can be classified as either accrual or nonaccrual. TDR loans are classified as nonperforming loans unless they have been performing in accordance with their modified terms for a period of at least six months in which case they are placed on accrual status. See “ Recent Accounting Pronouncements, Recent Events” below for payment deferrals considered to be short-term that are not considered TDRs. Allowance for Loan and Lease Losses (“ALLL”) - When available information confirms that specific loans or portions thereof are uncollectible, these amounts are charged-off against the ALLL. The existence of some or all of the following criteria will generally confirm that a loss has been incurred: the loan is significantly delinquent and the borrower has not evidenced the ability or intent to bring the loan current; the Company has no recourse to the borrower, or if it does, the borrower has insufficient assets to pay the debt; the estimated fair value of the loan collateral is significantly below the current loan balance, and there is little or no near-term prospect for improvement. A provision for loan losses is charged against income and added to the ALLL based on regular assessment of the loan portfolio. The ALLL is allocated to certain loan categories based on the relative risk characteristics, asset classifications, and actual loss experience within the loan portfolio. Although management has allocated the ALLL to various loan portfolio segments, the allowance is general in nature and is available for the loan portfolio in its entirety. The ultimate recovery of all loans is susceptible to future market factors beyond the Company’s control. These factors may result in losses or recoveries differing significantly from those provided for in the financial statements. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s ALLL, and may require the Company to make additions to the allowance based on their judgment about information available to them at the time of their examinations. Reserve for Unfunded Loan Commitments - Premises and Equipment, Net - three Management reviews buildings, improvements and equipment for impairment on an annual basis or whenever events or changes in the circumstances indicate that the undiscounted cash flows for the property are less than its carrying value. If identified, an impairment loss is recognized through a charge to earnings based on the fair value of the property. Right of Use Lease Asset & Lease Liability - The Company leases retail space, office space, storage space, and equipment under operating leases. Most leases require the Company to pay real estate taxes, maintenance, insurance and other similar costs in addition to the base rent. Certain leases also contain lease incentives, such as tenant improvement allowances and rent abatement. Variable lease payments are recognized as lease expense as they are incurred. The Company records an operating lease right of use (ROU) asset and an operating lease liability (lease liability) for operating leases with a lease term greater than 12 months. The ROU asset and lease liability are recorded in other assets and other liabilities, respectively, in the consolidated statement of financial condition. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. Many of the Company’s leases contain various provisions for increases in rental rates, based either on changes in the published Consumer Price Index or a predetermined escalation schedule, which are factored into our determination of lease payments when appropriate. Substantially all of the leases provide the Company with the option to extend the lease term one or more times following expiration of the initial term. The ROU asset and lease liability terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Transfers of Financial Assets - Servicing Rights - Servicing assets are evaluated quarterly for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type, and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranche. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to income. Capitalized servicing rights are stated separately on the Consolidated Balance Sheets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Income Taxes - The Company follows the authoritative guidance issued related to accounting for uncertainty in income taxes. The guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It is the Company’s policy to record any penalties or interest arising from federal or state taxes as a component of income tax expense. Employee Stock Ownership Plan - Earnings Per Share (“EPS”) - Comprehensive Income (Loss) - Financial Instruments - Restricted Assets - Marketing and Advertising Costs - Stock-Based Compensation - Goodwill - Business Combinations In the event that the fair value of net assets acquired exceeds the purchase price, including fair value of liabilities assumed, a bargain purchase gain is recorded on that acquisition. Acquired Loans Application of New Accounting Guidance in 2020 On January 1, 2020, the Company adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU’) No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended by ASU 2018-19, ASU 2019-10, and ASU 2019-11. The Company has selected a third-party vendor to assist in the implementation of this ASU and has run parallel computations as it continues to evaluate the impact of adoption of the new standard. As part of the implementation, management is also evaluating economic variables and forecast time horizons it believes to be most relevant based on the composition of the loan portfolio to develop a reasonable and supportable forecast, likely to include forecasted levels of employment, gross domestic product, and home price index, depending on the nature of the loan segment, as well as various loss methodologies to estimate expected credit losses. In addition, management has kept current on evolving interpretations and industry practices related to ASU 2016-13 via webcasts, publications, and conferences. Once adopted, the Company anticipates the allowance for loan losses to potentially increase through a one-time adjustment to retained earnings, however, until the evaluation is complete the magnitude of the potential increase will be unknown. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments In May 2019, the FASB issued ASU 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20: Receivables – Nonrefundable Fees and Other Costs Recent Events consumer loans of $392,000. The majority of these modifications involved short-term (e.g. less than six months) extensions and/or interest-only periods. On December 27, 2020, the Consolidated Appropriations Act (“CAA 2021”) was signed into law. Among other purposes, this act provides additional coronavirus emergency response and relief, including extending relief offered under the CARES Act related to troubled debt restructurings as a result of COVID-19 through January 1, 2022 or 60 days after the end of the national emergency declared by the President, whichever is earlier. For additional information, see “Note 3 - Loans Receivable and Allowance for Loan Losses.” |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | NOTE 2 - INVESTMENTS The following tables present the amortized costs, unrealized gains, unrealized losses, and estimated fair values of securities available-for-sale and held-to-maturity at December 31, 2020 and 2019: December 31, 2020 Estimated Amortized Unrealized Unrealized Fair SECURITIES AVAILABLE-FOR-SALE Cost Gains Losses Values U.S. agency securities $ 7,940 $ 166 $ (1) $ 8,105 Corporate securities 11,885 54 (939) 11,000 Municipal bonds 69,572 2,435 (150) 71,857 Mortgage-backed securities 65,722 2,541 (76) 68,187 U.S. Small Business Administration securities 18,441 443 (15) 18,869 Total securities available-for-sale 173,560 5,639 (1,181) 178,018 SECURITIES HELD-TO-MATURITY Corporate securities 7,500 77 (21) 7,556 Total securities held-to-maturity 7,500 77 (21) 7,556 Total securities $ 181,060 $ 5,716 $ (1,202) $ 185,574 December 31, 2019 Estimated Amortized Unrealized Unrealized Fair SECURITIES AVAILABLE-FOR-SALE Cost Gains Losses Values U.S. agency securities $ 8,986 $ 95 $ (15) $ 9,066 Corporate securities 10,525 52 (7) 10,570 Municipal bonds 20,516 604 — 21,120 Mortgage-backed securities 62,745 405 (300) 62,850 U.S. Small Business Administration securities 22,281 191 (21) 22,451 Total securities available-for-sale $ 125,053 $ 1,347 $ (343) $ 126,057 There were no securities held-to-maturity at December 31, 2019. At December 31, 2020, the Bank had pledged seven securities held at the FHLB of Des Moines with a carrying value of $8.8 million to secure Washington State public deposits of $13.2 million with a $5.3 million collateral requirement by the Washington Public Deposit Protection Commission. At December 31, 2019, the Bank pledged seven securities held at the FHLB of Des Moines with a carrying value of $7.4 million to secure Washington State public deposits of $10.3 million with a $4.0 million collateral requirement. Investment securities that were in an unrealized loss position at December 31, 2020 and 2019 are presented in the following tables, based on the length of time individual securities have been in an unrealized loss position. Management believes that these securities are only temporarily impaired due to changes in market interest rates or the widening of market spreads subsequent to the initial purchase of the securities, and not due to concerns regarding the underlying credit of the issuers or the underlying collateral. December 31, 2020 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized SECURITIES AVAILABLE-FOR-SALE Value Losses Value Losses Value Losses U.S. agency securities $ 1,986 $ (1) $ — $ — $ 1,986 $ (1) Corporate securities 7,059 (939) — — 7,059 (939) Municipal bonds 8,377 (150) — — 8,377 (150) Mortgage-backed securities 6,903 (65) 3,002 (11) 9,905 (76) U.S. Small Business Administration securities 2,314 (15) — — 2,314 (15) Total securities available-for-sale 26,639 (1,170) 3,002 (11) 29,641 (1,181) SECURITIES HELD-TO-MATURITY Corporate securities 4,979 (21) — — 4,979 (21) Total securities held-to-maturity 4,979 (21) — — 4,979 (21) Total $ 31,618 $ (1,191) $ 3,002 $ (11) $ 34,620 $ (1,202) December 31, 2019 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized SECURITIES AVAILABLE-FOR-SALE Value Losses Value Losses Value Losses U.S. agency securities $ 2,977 $ (15) $ — $ — $ 2,977 $ (15) Corporate securities 1,993 (7) — — 1,993 (7) Mortgage-backed securities 12,345 (154) 11,459 (146) 23,804 (300) U.S. Small Business Administration securities 4,395 (21) — — 4,395 (21) Total $ 21,710 $ (197) $ 11,459 $ (146) $ 33,169 $ (343) There were 21 investments with unrealized losses of less than one year and one investment with unrealized losses of more than one year at December 31, 2020. There were 13 investments with unrealized losses of less than one year and 10 investments with unrealized losses of more than one year at December 31, 2019. The unrealized losses associated with these investments are believed to be caused by changing market conditions that are considered to be temporary and the Company does not intend to sell the securities, and it is not likely to be required to sell these securities prior to maturity. Based on the Company’s evaluation of these securities, no OTTI was recorded for the years ended December 31, 2020 and 2019. Additional deterioration in market and economic conditions related to the COVID-19 pandemic, may have an adverse impact on credit quality in the future and result in other-than-temporary impairment charges. The contractual maturities of securities available-for-sale and held-to-maturity at December 31, 2020 and 2019 are listed below. Expected maturities of mortgage-backed securities may differ from contractual maturities because borrowers may have the right to call or prepay the obligations; therefore, these securities are classified separately with no specific maturity date. December 31, 2020 December 31, 2019 SECURITIES AVAILABLE-FOR-SALE Amortized Fair Amortized Fair U.S. agency securities Cost Value Cost Value Due after one year through five years $ 978 $ 1,060 $ 996 $ 1,036 Due after five years through ten years 1,000 1,036 3,997 4,027 Due after ten years 5,962 6,009 3,993 4,003 Subtotal 7,940 8,105 8,986 9,066 Corporate securities Due in one year or less 2,392 2,433 5,034 5,044 Due after one year through five years 3,493 3,491 3,491 3,532 Due after five years through ten years 4,000 3,676 2,000 1,994 Due after ten years 2,000 1,400 — — Subtotal 11,885 11,000 10,525 10,570 Municipal bonds Due in one year or less 101 101 — — Due after one year through five years 3,749 3,980 3,774 3,833 Due after five years through ten years 7,994 8,321 3,162 3,307 Due after ten years 57,728 59,455 13,580 13,980 Subtotal 69,572 71,857 20,516 21,120 Mortgage-backed securities Federal National Mortgage Association (“FNMA”) 47,675 50,005 42,131 42,333 Federal Home Loan Mortgage Corporation (“FHLMC”) 11,825 11,913 15,250 15,179 Government National Mortgage Association (“GNMA”) 6,222 6,269 5,364 5,338 Subtotal 65,722 68,187 62,745 62,850 U.S. Small Business Administration securities Due after one year through five years 2,266 2,353 1,546 1,555 Due after five years through ten years 8,097 8,333 11,500 11,598 Due after ten years 8,078 8,183 9,235 9,298 Subtotal 18,441 18,869 22,281 22,451 Total securities available-for-sale 173,560 178,018 125,053 126,057 SECURITIES HELD-TO-MATURITY Corporate securities Due after five years through ten years 7,500 7,556 — — Total securities held-to-maturity 7,500 7,556 — — Total securities $ 181,060 $ 185,574 $ 125,053 $ 126,057 The proceeds and resulting gains and losses, computed using specific identification from sales of securities available-for-sale for the years ended December 31, 2020 and 2019 were as follows: December 31, 2020 Proceeds Gross Gains Gross Losses Securities available-for-sale $ 12,214 $ 300 $ — December 31, 2019 Proceeds Gross Gains Gross Losses Securities available-for-sale $ 10,554 $ 91 $ (59) |
Loans Receivable and Allowance
Loans Receivable and Allowance For Loan Losses | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Loans Receivable and Allowance For Loan Losses | NOTE 3 - LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES The composition of the loan portfolio was as follows at December 31: December 31, December 31, REAL ESTATE LOANS 2020 2019 Commercial $ 222,719 $ 210,749 Construction and development 216,975 179,654 Home equity 43,093 38,167 One-to-four-family (excludes loans held for sale) 311,093 261,539 Multi-family 131,601 133,931 Total real estate loans 925,481 824,040 CONSUMER LOANS Indirect home improvement 286,020 254,691 Marine 85,740 67,179 Other consumer 3,418 4,340 Total consumer loans 375,178 326,210 COMMERCIAL BUSINESS LOANS Commercial and industrial 224,476 140,531 Warehouse lending 49,092 61,112 Total commercial business loans 273,568 201,643 Total loans receivable, gross 1,574,227 1,351,893 Allowance for loan losses (26,172) (13,229) Deferred costs and fees, net (4,017) (3,273) Premiums on purchased loans, net 943 955 Total loans receivable, net $ 1,544,981 $ 1,336,346 At December 31, 2020, the Bank held approximately $774.8 million in loans that qualify as collateral for FHLB advances, compared to approximately $646.1 million at December 31, 2019. The Bank held approximately $369.2 million in loans that qualify as collateral for an FRB line of credit at December 31, 2020, compared to approximately $318.8 million at December 31, 2019. During the year ended December 31, 2020, the Bank participated in the U.S. Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”), a guaranteed unsecured loan program enacted under the CARES Act to provide near-term relief to help small businesses impacted by COVID-19 sustain operations. PPP loans included in commercial and industrial business loans totaled $62.1 million, all of which are fully guaranteed by the SBA. The Bank expects that the great majority of PPP borrowers will seek full or partial forgiveness of their loan obligations in accordance with the CARES Act. At December 31, 2020, all of the Bank’s PPP loans were pledged as collateral for non-recourse advances under the FRB’s Paycheck Protection Program Liquidity Facility (“PPPLF”). For additional information, see “Note 9 - Debt.” Included in the carrying value of gross loans are net discounts on loans purchased in the Anchor Bank acquisition in November 2018. The remaining net discount on loans acquired was $1.5 million and $2.7 million, on $132.6 million and $198.5 million of gross loans at December 31, 2020 and December 31, 2019, respectively. The Company has defined its loan portfolio into three segments that reflect the structure of the lending function, the Company’s strategic plan and the manner in which management monitors performance and credit quality. The three loan portfolio segments are: (a) Real Estate Loans, (b) Consumer Loans and (c) Commercial Business Loans. Each of these segments is disaggregated into classes based on the risk characteristics of the borrower and/or the collateral type securing the loan. The following is a summary of each of the Company’s loan portfolio segments and classes: Real Estate Loans Commercial Lending. Loans originated by the Company primarily secured by income producing properties, including retail centers, warehouses, and office buildings located in our market areas. Construction and Development Lending Home Equity Lending One-to-Four-Family Real Estate Lending Multi-family Lending Consumer Loans Indirect Home Improvement Marine. Other Consumer. Commercial Business Loans Commercial and Industrial Lending (“C&I”) Warehouse Lending The following tables detail activity in the allowance for loan losses by loan categories for the years shown: At or For the Year Ended December 31, 2020 Commercial ALLOWANCE FOR LOAN LOSSES Real Estate Consumer Business Unallocated Total Beginning balance $ 6,206 $ 3,766 $ 3,254 $ 3 $ 13,229 Provision for loan losses 7,622 3,372 1,354 688 13,036 Charge-offs — (1,101) (22) — (1,123) Recoveries 18 659 353 — 1,030 Net recoveries (charge-offs) 18 (442) 331 — (93) Ending balance $ 13,846 $ 6,696 $ 4,939 $ 691 $ 26,172 Period end amount allocated to: Loans individually evaluated for impairment $ 15 $ 305 $ 990 $ — $ 1,310 Loans collectively evaluated for impairment 13,831 6,391 3,949 691 24,862 Ending balance $ 13,846 $ 6,696 $ 4,939 $ 691 $ 26,172 LOANS RECEIVABLE Loans individually evaluated for impairment $ 1,280 $ 871 $ 5,610 $ — $ 7,761 Loans collectively evaluated for impairment 924,201 374,307 267,958 — 1,566,466 Ending balance $ 925,481 $ 375,178 $ 273,568 $ — $ 1,574,227 At or For the Year Ended December 31, 2019 Commercial ALLOWANCE FOR LOAN LOSSES Real Estate Consumer Business Unallocated Total Beginning balance $ 5,761 $ 3,351 $ 3,191 $ 46 $ 12,349 Provision (recapture) for loan losses 439 838 1,646 (43) 2,880 Charge-offs (5) (1,040) (1,583) — (2,628) Recoveries 11 617 — — 628 Net recoveries (charge-offs) 6 (423) (1,583) — (2,000) Ending balance $ 6,206 $ 3,766 $ 3,254 $ 3 $ 13,229 Period end amount allocated to: Loans individually evaluated for impairment $ 15 $ 167 $ — $ — $ 182 Loans collectively evaluated for impairment 6,191 3,599 3,254 3 13,047 Ending balance $ 6,206 $ 3,766 $ 3,254 $ 3 $ 13,229 LOANS RECEIVABLE Loans individually evaluated for impairment $ 2,635 $ 493 $ — $ — $ 3,128 Loans collectively evaluated for impairment 821,405 325,717 201,643 — 1,348,765 Ending balance $ 824,040 $ 326,210 $ 201,643 $ — $ 1,351,893 Nonaccrual and Past Due Loans As a result of the negative impact on employment from the COVID-19 pandemic, the Company anticipates higher levels of financial hardship for its customers, which the Company expects will lead to higher levels of forbearance, delinquency and defaults until such time as the economy and employment return to relatively normal levels. The Company has and will continue to assist customers with an array of payment relief programs during periods of financial hardship, including forbearance. Forbearance allows a borrower to temporarily not make scheduled payments or to make smaller than scheduled payments, in each case for a specified period of time. Forbearance does not grant any reduction in the total principal or interest repayment obligation. While a loan is in forbearance status, interest continues to accrue and is repaid over a specified time period when the loan re-enters repayment status. As of December 31, 2020, the amount of loans remaining under payment/relief agreements included commercial real estate loans of $31.2 million, commercial business loans of $12.8 million, a portfolio one-to-four-family loan of $308,000, and consumer loans of $392,000. These loans were classified as current and accruing interest as of December 31, 2020, with the exception of two commercial business loans totaling $4.4 million classified as current and nonaccrual. These modifications were not classified as TDRs at December 31, 2020 in accordance with the CARES Act and related bank agency regulatory guidance. Loan modifications in accordance with the CARES Act and related banking agency regulatory guidance are still subject to an evaluation in regard to determining whether or not a loan is deemed to be impaired. At December 31, 2020 and December 31, 2019, the Company had no TDRs. The following tables provide information pertaining to the aging analysis of contractually past due loans and nonaccrual loans for the years ended December 31, 2020 and 2019: December 31, 2020 30-59 60-89 Days Days 90 Days Total Total Past Past or More Past Loans Non- REAL ESTATE LOANS Due Due Past Due Due Current Receivable Accrual Commercial $ — $ — $ — $ — $ 222,719 $ 222,719 $ — Construction and development 1,850 — — 1,850 215,125 216,975 — Home equity 127 137 219 483 42,610 43,093 636 One-to-four-family 389 404 512 1,305 309,788 311,093 644 Multi-family — — — — 131,601 131,601 — Total real estate loans 2,366 541 731 3,638 921,843 925,481 1,280 CONSUMER LOANS Indirect home improvement 683 331 325 1,339 284,681 286,020 826 Marine 28 77 22 127 85,613 85,740 44 Other consumer 73 22 — 95 3,323 3,418 1 Total consumer loans 784 430 347 1,561 373,617 375,178 871 COMMERCIAL BUSINESS LOANS Commercial and industrial — 1,204 — 1,204 223,272 224,476 5,610 Warehouse lending — — — — 49,092 49,092 — Total commercial business loans — 1,204 — 1,204 272,364 273,568 5,610 Total loans $ 3,150 $ 2,175 $ 1,078 $ 6,403 $ 1,567,824 $ 1,574,227 $ 7,761 December 31, 2019 30-59 60-89 Days Days 90 Days Total Total Past Past or More Past Loans Non- REAL ESTATE LOANS Due Due Past Due Due Current Receivable Accrual Commercial $ — $ — $ — $ — $ 210,749 $ 210,749 $ 1,086 Construction and development 533 — — 533 179,121 179,654 — Home equity 109 — 185 294 37,873 38,167 190 One-to-four-family 894 114 1,150 2,158 259,381 261,539 1,264 Multi-family — — — — 133,931 133,931 — Total real estate loans 1,536 114 1,335 2,985 821,055 824,040 2,540 CONSUMER LOANS Indirect home improvement 692 227 147 1,066 253,625 254,691 468 Marine 15 — — 15 67,164 67,179 — Other consumer 71 2 20 93 4,247 4,340 25 Total consumer loans 778 229 167 1,174 325,036 326,210 493 COMMERCIAL BUSINESS LOANS Commercial and industrial — — — — 140,531 140,531 — Warehouse lending — — — — 61,112 61,112 — Total commercial business loans — — — — 201,643 201,643 — Total loans $ 2,314 $ 343 $ 1,502 $ 4,159 $ 1,347,734 $ 1,351,893 $ 3,033 There were no loans 90 days or more past due and still accruing interest at both December 31, 2020 and December 31, 2019. The following tables provide additional information about our impaired loans that have been segregated to reflect loans for which an allowance for loan losses has been provided and loans for which no allowance was provided for the years ended December 31, 2020 and 2019: December 31, 2020 Unpaid WITH NO RELATED ALLOWANCE RECORDED Principal Recorded Related Real estate loans: Balance Investment Allowance Home equity $ 687 $ 636 $ — One-to-four-family 645 584 — Commercial business loans: Commercial and industrial 1,203 1,203 — 2,535 2,423 — WITH RELATED ALLOWANCE RECORDED Real estate loans: One-to-four-family 61 60 15 Consumer loans: Indirect 826 826 289 Marine 44 44 15 Other consumer 1 1 1 Commercial business loans: Commercial and industrial 4,407 4,407 990 5,339 5,338 1,310 Total $ 7,874 $ 7,761 $ 1,310 December 31, 2019 Unpaid WITH NO RELATED ALLOWANCE RECORDED Principal Recorded Related Real estate loans: Balance Investment Allowance Commercial $ 1,097 $ 1,086 $ — Home equity 278 225 — One-to-four-family 1,293 1,264 — Consumer loans Other consumer 17 17 — 2,685 2,592 — WITH RELATED ALLOWANCE RECORDED Real estate loans: One-to-four-family 61 60 15 Consumer loans: Indirect 468 468 164 Other consumer 8 8 3 537 536 182 Total $ 3,222 $ 3,128 $ 182 The following table presents the average recorded investment in loans individually evaluated for impairment and the interest income recognized and received for the years ended December 31, 2020 and 2019: At or For the Year Ended December 31, 2020 December 31, 2019 WITH NO RELATED ALLOWANCE RECORDED Average Recorded Interest Income Average Recorded Interest Income Real estate loans: Investment Recognized Investment Recognized Commercial $ 996 $ — $ 90 $ 56 Home equity 485 25 206 3 One-to-four-family 954 17 1,500 34 Consumer loans: Other consumer 3 — 4 2 Commercial business loans: Commercial and industrial 100 37 180 — 2,538 79 1,980 95 WITH AN ALLOWANCE RECORDED Real estate loans: One-to-four-family 60 — 5 5 Consumer loans: Indirect 675 60 463 42 Marine 40 3 13 — Other consumer 1 — 5 1 Commercial business loans: Commercial and industrial 2,531 162 96 — 3,307 225 582 48 Total $ 5,845 $ 304 $ 2,562 $ 143 Credit Quality Indicators As part of the Company’s on-going monitoring of credit quality of the loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk grading of loans, (ii) the level of classified loans, (iii) net charge-offs, (iv) nonperforming loans and (v) the general economic conditions in the Company’s markets. All loans modified due to COVID-19 are separately monitored and any request for continuation of relief beyond the initial modification will be reassessed at that time to determine if a further modification should be granted and if a downgrade in risk rating is appropriate. The Company utilizes a risk grading matrix to assign a risk grade to its real estate and commercial business loans. Loans are graded on a scale of 1 to 10, with loans in risk grades 1 to 6 considered “Pass” and loans in risk grades 7 to 10 are reported as classified loans in the Company’s allowance for loan loss analysis. A description of the 10 risk grades is as follows: ● Grades 1 and 2 - These grades include loans to very high quality borrowers with excellent or desirable business credit. ● Grade 3 - This grade includes loans to borrowers of good business credit with moderate risk. ● Grades 4 and 5 - These grades include “Pass” grade loans to borrowers of average credit quality and risk. ● Grade 6 - This grade includes loans on management’s “Watch” list and is intended to be utilized on a temporary basis for “Pass” grade borrowers where frequent and thorough monitoring is required due to credit weaknesses and where significant risk-modifying action is anticipated in the near term. ● Grade 7 - This grade is for “Other Assets Especially Mentioned (OAEM)” in accordance with regulatory guidelines and includes borrowers where performance is poor or significantly less than expected. ● Grade 8 - This grade includes “Substandard” loans in accordance with regulatory guidelines which represent an unacceptable business credit where a loss is possible if loan weakness is not corrected. ● Grade 9 - This grade includes “Doubtful” loans in accordance with regulatory guidelines where a loss is highly probable. ● Grade 10 - This grade includes “Loss” loans in accordance with regulatory guidelines for which total loss is expected and when identified are charged off. Consumer, Home Equity, and One-to-Four-Family Real Estate Loans Homogeneous loans are risk rated based upon the Federal Financial Institutions Examination Council’s Uniform Retail Credit Classification and Account Management Policy. Loans classified under this policy at the Company are consumer loans which include indirect home improvement, solar, marine, other consumer, and one-to-four-family first and second liens. Under the Uniform Retail Credit Classification Policy, loans that are current or less than 90 days past due are graded “Pass” and risk graded “4” or “5” internally. Loans that are past due more than 90 days are classified “Substandard” risk graded “8” internally until the loan has demonstrated consistent performance, typically six months of contractual payments. Closed-end loans that are 120 days past due and open-end loans that are 180 days past due are charged off based on the value of the collateral less cost to sell. Management may more conservatively risk rate credits even if paying in accordance with the loan’s repayment terms. Commercial real estate, construction and development, multi-family and commercial business loans are evaluated individually for their risk classification and may be classified as “Substandard” even if current on their loan payment obligations. The following tables summarize risk rated loan balances by category at the dates indicated: December 31, 2020 Special Pass Watch Mention Substandard Doubtful Loss REAL ESTATE LOANS (1 - 5) (6) (7) (8) (9) (10) Total Commercial $ 157,932 $ 60,834 $ 3,013 $ 940 $ — $ — $ 222,719 Construction and development 212,209 2,917 1,849 — — — 216,975 Home equity 42,457 — — 636 — — 43,093 One-to-four-family 303,610 162 187 7,134 — — 311,093 Multi-family 131,601 — — — — — 131,601 Total real estate loans 847,809 63,913 5,049 8,710 — — 925,481 CONSUMER LOANS Indirect home improvement 285,194 — — 826 — — 286,020 Marine 85,696 — — 44 — — 85,740 Other consumer 3,417 — — 1 — — 3,418 Total consumer loans 374,307 — — 871 — — 375,178 COMMERCIAL BUSINESS LOANS Commercial and industrial 190,392 23,945 2,073 8,066 — — 224,476 Warehouse lending 49,092 — — — — — 49,092 Total commercial business loans 239,484 23,945 2,073 8,066 — — 273,568 Total loans receivable, gross $ 1,461,600 $ 87,858 $ 7,122 $ 17,647 $ — $ — $ 1,574,227 December 31, 2019 Special Pass Watch Mention Substandard Doubtful Loss REAL ESTATE LOANS (1 - 5) (6) (7) (8) (9) (10) Total Commercial $ 203,703 $ 2,274 $ 3,686 $ 1,086 $ — $ — $ 210,749 Construction and development 177,109 2,545 — — — — 179,654 Home equity 37,942 — 35 190 — — 38,167 One-to-four-family 259,580 635 60 1,264 — — 261,539 Multi-family 127,792 6,139 — — — — 133,931 Total real estate loans 806,126 11,593 3,781 2,540 — — 824,040 CONSUMER LOANS Indirect home improvement 254,223 — — 468 — — 254,691 Marine 67,179 — — — — — 67,179 Other consumer 4,315 — — 25 — — 4,340 Total consumer loans 325,717 — — 493 — — 326,210 COMMERCIAL BUSINESS LOANS Commercial and industrial 125,025 10,435 1,442 3,629 — — 140,531 Warehouse lending 61,112 — — — — — 61,112 Total commercial business loans 186,137 10,435 1,442 3,629 — — 201,643 Total loans receivable, gross $ 1,317,980 $ 22,028 $ 5,223 $ 6,662 $ — $ — $ 1,351,893 At December 31, 2020, there were no TDRs that were modified in the previous 12 months that subsequently defaulted in the reporting year. The Company had no TDRs at December 31, 2020 or 2019. Related Party Loans Certain directors and executive officers or their related affiliates are customers of and have had banking transactions with the Company. Total loans to directors, executive officers, and their affiliates are subject to regulatory limitations. Outstanding loan balances were as follows and were within regulatory limitations: At December 31, 2020 2019 Beginning balance $ 3,249 $ 3,325 Additions 581 — Repayments (33) (76) Ending balance $ 3,797 $ 3,249 The aggregate maximum loan balance of extended credit was $4.2 million and $3.6 million at December 31, 2020 and 2019, respectively, and includes the ending balances from the tables above. These loans and lines of credit were made in compliance with applicable laws on substantially the same terms (including interest rates and collateral) as those prevailing at the time for comparable transactions with other persons and do not involve more than the normal risk of collectability. |
Servicing Rights
Servicing Rights | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value, Off-balance Sheet Risk [Abstract] | |
Servicing Rights | NOTE 4 - SERVICING RIGHTS Loans serviced for others are not included on the Consolidated Balance Sheets. The unpaid principal balances of permanent loans serviced for others were $2.17 billion and $1.46 billion at December 31, 2020 and 2019, respectively. The following table summarizes servicing rights activity for the years ended December 31, 2020 and 2019: At or For the Year Ended December 31, 2020 2019 Beginning balance $ 11,560 $ 10,429 Additions 11,139 5,400 Servicing rights amortized (8,135) (4,177) Impairment of servicing rights (1,969) (92) Ending balance $ 12,595 $ 11,560 The fair market value of the servicing rights’ assets was $12.8 million and $13.3 million at December 31, 2020 and December 31, 2019, respectively. Fair value adjustments to servicing rights are mainly due to market-based assumptions associated with discounted cash flows, loan prepayment speeds, and changes in interest rates. A significant change in prepayments of the loans in the servicing portfolio could result in significant changes in the valuation adjustments, thus creating potential volatility in the carrying amount of servicing rights. The following provides valuation assumptions used in determining the fair value of mortgage servicing rights (“MSR”) at the dates indicated: At December 31, At December 31, Key assumptions: 2020 2019 Weighted average discount rate 9.1 % 9.7 % Conditional prepayment rate (“CPR”) 32.6 % 17.1 % Weighted average life in years 3.0 5.1 Key economic assumptions of the current fair value for single family MSR are presented in the table below. Also presented is the sensitivity to market rate changes for the par rate coupon for a conventional one-to-four-family FNMA, FHLMC, GNMA, or FHLB serviced home loan. The table below references a 50 basis point and 100 basis point adverse rate change and the impact on prepayment speeds and discount rates at December 31, 2020 and December 31, 2019: December 31, 2020 December 31, 2019 Aggregate portfolio principal balance (1) $ 2,133,473 $ 1,463,732 Weighted average rate of note 3.5 % 4.2 % At December 31, 2020 Base 0.5% Adverse Rate Change 1.0% Adverse Rate Change Conditional prepayment rate 32.6 % 40.6 % 59.6 % Fair value MSR $ 12,833 $ 10,922 $ 8,286 Percentage of MSR 0.6 % 0.5 % 0.4 % Discount rate 9.1 % 9.6 % 10.1 % Fair value MSR $ 12,833 $ 12,696 $ 12,562 Percentage of MSR 0.6 % 0.6 % 0.6 % At December 31, 2019 Base 0.5% Adverse Rate Change 1.0% Adverse Rate Change Conditional prepayment rate 17.1 % 24.6 % 32.5 % Fair value MSR $ 13,255 $ 10,582 $ 8,674 Percentage of MSR 0.9 % 0.7 % 0.6 % Discount rate 9.7 % 10.2 % 10.7 % Fair value MSR $ 13,255 $ 13,037 $ 12,826 Percentage of MSR 0.9 % 0.9 % 0.9 % _______________________________ (1) Excludes nonperforming serviced loans in forbearance. These sensitivities are hypothetical and should be used with caution as the tables above demonstrate the Company’s methodology for estimating the fair value of MSR which is highly sensitive to changes in key assumptions. For example, actual prepayment experience may differ and any difference may have a material effect on MSR fair value. Changes in fair value resulting from changes in assumptions generally cannot be extrapolated because the relationship of the change in the assumption to the change in fair value may not be linear. Also, in these tables, the effects of a variation in a particular assumption on the fair value of the MSR is calculated without changing any other assumption; in reality, changes in one factor may be associated with changes in another (for example, decreases in market interest rates may provide an incentive to refinance; however, this may also indicate a slowing economy and an increase in the unemployment rate, which reduces the number of borrowers who qualify for refinancing), which may magnify or counteract the sensitivities. Thus, any measurement of MSR fair value is limited by the conditions existing and assumptions made at a particular point in time. Those assumptions may not be appropriate if they are applied to a different point in time. The Company recorded $4.4 million and $3.5 million of gross contractually specified servicing fees, late fees, and other ancillary fees resulting from servicing of loans for the years ended December 31, 2020 and 2019, respectively. The income, net of amortization, or reduction in income, if MSR amortization is greater than servicing fees, is reported in noninterest income on the Consolidated Statements of Income. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | NOTE 5 - PREMISES AND EQUIPMENT Premises and equipment at December 31, 2020 and 2019 were as follows: 2020 2019 Land $ 5,227 $ 5,227 Buildings 16,769 16,769 Furniture, fixtures, and equipment 14,724 13,562 Leasehold improvements 2,859 2,848 Building improvements 6,830 6,572 Projects in process 355 407 Subtotal 46,764 45,385 Less accumulated depreciation and amortization (19,421) (16,615) Total $ 27,343 $ 28,770 Depreciation and amortization expense for these assets totaled $2.8 million for both years ended December 31, 2020 and 2019, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | NOTE 6 - LEASES The Company has operating leases for retail bank and home lending branches, and certain equipment. The Company’s leases have remaining lease terms of five months to nine and a half years The components of lease cost (included in occupancy expense on the Consolidated Statements of Income) are as follows for the years ended December 31, 2020 and 2019: Year Ended Year Ended Lease cost: December 31, 2020 December 31, 2019 Operating lease cost $ 1,393 $ 1,285 Short-term lease cost 11 166 Total lease cost $ 1,404 $ 1,451 The following table provides supplemental information related to operating leases at or for the years ended December 31, 2020 and 2019: At or For the At or For the Cash paid for amounts included in the Year Ended Year Ended measurement of lease liabilities: December 31, 2020 December 31, 2019 Operating cash flows from operating leases $ 1,365 $ 1,331 Weighted average remaining lease term- operating leases 5.4 years 5.3 years Weighted average discount rate- operating leases 2.48 % 3.00 % The Company’s leases typically do not contain a discount rate implicit in the lease contract. As an alternative, the discount rate used in determining the lease liability for each individual lease was the FHLB of Des Moines’ fixed advance rate. Maturities of operating lease liabilities at December 31, 2020 for future periods are as follows: 2021 $ 1,319 2022 1,222 2023 839 2024 787 2025 478 Thereafter 949 Total lease payments 5,594 Less imputed interest (418) Total $ 5,176 |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift [Abstract] | |
Other Real Estate Owned | NOTE 7 - OTHER REAL ESTATE OWNED The following table presents the activity related to OREO at and for the years ended December 31: At or For the Year Ended December 31, 2020 2019 Beginning balance $ 168 $ 689 Additions — 242 Gross proceeds from sale of OREO (76) (901) (Loss) gain on sale of OREO (2) 138 Ending balance $ 90 $ 168 There was one OREO property in the amount of $90,000 at December 31, 2020, and two OREO properties totaling $168,000 at December 31, 2019. Holding costs were $4,000 and $13,000 for the years ended December 31, 2020 and 2019, respectively. There were $662,000 and $1.0 million in mortgage loans collateralized by residential real estate property in the process of foreclosure at December 31, 2020, and 2019, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift [Abstract] | |
Deposits | NOTE 8 - DEPOSITS Deposits are summarized as follows at December 31: December 31, December 31, 2020 2019 Noninterest-bearing checking $ 348,421 $ 260,131 Interest-bearing checking 226,282 177,972 Savings 152,842 118,845 Money market 429,548 270,489 Certificates of deposit less than $100,000 299,157 277,988 Certificates of deposit of $100,000 through $250,000 135,901 181,402 Certificates of deposit of $250,000 and over 67,488 92,110 Escrow accounts related to mortgages serviced 14,432 13,471 Total $ 1,674,071 $ 1,392,408 Scheduled maturities of time deposits at December 31, 2020 for future years ending are as follows: At December 31, 2020 Maturing in 2021 $ 340,867 Maturing in 2022 88,529 Maturing in 2023 19,991 Maturing in 2024 20,131 Maturing in 2025 33,027 Thereafter 1 Total $ 502,546 Interest expense by deposit category for the years ended December 31, 2020 and 2019 is as follows: Year Ended December 31, 2020 2019 Interest-bearing checking $ 388 $ 1,414 Savings and money market 2,458 3,098 Certificates of deposit 9,134 11,650 Total $ 11,980 $ 16,162 The Company had related party deposits of approximately $4.0 million and $3.3 million at December 31, 2020 and 2019, respectively, which includes deposits held for directors and executive officers. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 9 - DEBT Borrowings The Bank is a member of the FHLB of Des Moines, which entitles it to certain benefits including a variety of borrowing options consisting of a secured credit line that allows both fixed and variable rate advances. The FHLB borrowings at December 31, 2020 and 2019, consisted of a warehouse securities credit line (“securities line”), which allows advances with interest rates fixed at the time of borrowing and a warehouse federal funds (“Fed Funds”) advance, which allows daily advances at variable interest rates. Credit capacity is primarily determined by the value of assets collateralized at the FHLB, funds on deposit at the FHLB, and stock owned by the Bank. Credit is limited to 45% of the Company’s total assets and available pledged assets. The Bank entered into an Advances, Pledges and Security Agreement with the FHLB for which specific loans are pledged to secure these credit lines. At December 31, 2020, loans of approximately $774.8 million were pledged to the FHLB. At December 31, 2020, the Bank’s total borrowing capacity was $568.2 million with the FHLB of Des Moines, with unused borrowing capacity of $459.9 million. In addition, all FHLB stock owned by the Company is collateral for credit lines. The Bank maintains a short-term borrowing line with the FRB with total credit based on eligible collateral. The Bank can borrow under the Term Auction or Term Facility at rates published by the San Francisco FRB. At December 31, 2020 and 2019, the Bank had approximately $369.2 million and $318.8 million, respectively, in pledged consumer loans with a Term Auction or Term Facility borrowing capacity of $179.6 million and $156.1 million, respectively, of which none was outstanding at either date. The Bank also had $101.0 million unsecured Fed Funds lines of credit with other financial institutions of which none was outstanding at December 31, 2020. The Company participated in the PPP and has 423 PPP loans totaling $62.1 million at December 31, 2020 for borrowers in the communities we serve. The Company utilized the FRB's PPPLF, pursuant to which it pledged its PPP loans as collateral at face value to obtain FRB non-recourse advances. As of December 31, 2020, the Company has borrowed $63.3 million under the PPPLF, with no additional borrowing capacity. Advances under the PPPLF incur interest at a per annum rate of 0.35%. The maturity date of any PPPLF advance (the “Maturity Date”) will be the maturity date of the PPP loan pledged to secure the PPPLF advance. The Maturity Date of any PPPLF advance will be accelerated on and to the extent of (i) the date of any loan forgiveness reimbursement by the SBA for any PPP loan securing the PPPLF advance; or (ii) the date of purchase by the SBA from the Bank of any PPP loan securing the PPPLF loan advance to realize on the SBA’s guarantee of the PPP loan. PPPLF loans may be prepaid in full or in part, without penalty. The Bank shall prepay PPPLF advances (i) on the date and to the extent of the payment by the SBA for the amount of covered loan forgiveness for any PPP loan securing the PPPLF advance; (ii) on the date of purchase by the SBA from the Bank of a PPP loan securing the PPPLF advances to realize on the SBA’s guarantee of such PPP loans; or (iii) on the date and to the extent a borrower under a PPP loan repays or prepays such PPP loans, in each case, so that the amount of any PPPLF advances outstanding does not exceed the outstanding amount of PPP loans pledged to secure such PPPLF advances. At December 31, 2020, of the $63.3 million of borrowings under PPPLF, $62.0 million were set to mature in 2022 and $1.3 million in 2025. Advances on these lines at December 31, 2020 and 2019 were as follows: 2020 2019 Federal Home Loan Bank $ 102,528 $ 84,864 Paycheck Protection Program Liquidity Facility 63,281 — Total $ 165,809 $ 84,864 Subsequent to December 31, 2020, on February 10, 2021, FS Bancorp, Inc. completed the private placement of $50.0 million of its 3.75% fixed-to-floating rate subordinated notes due 2031 (the “Notes”) at an offering price equal to 100% of the aggregate principal amount of the Notes, resulting in net proceeds, after placement agent fees and offering expenses, of approximately $49.3 million. For regulatory capital purposes, the subordinated notes have been structured to qualify initially as Tier 2 capital for the Company. Subordinated Note On October 15, 2015 (the “Closing Date”), FS Bancorp, Inc. issued an unsecured subordinated term note in the aggregate principal amount of $10.0 million due October 1, 2025 (the “Subordinated Note”) pursuant to a Subordinated Loan Agreement with Community Funding CLO, Ltd. The Subordinated Note bears interest at an annual interest rate of 6.50%, payable by the Company quarterly in arrears on January 1, April 1, July 1 and October 1 of each year, commencing on the first such date following the Closing Date and on the maturity date. The Subordinated Note’s maturity date was October 1, 2025, but the Company prepaid with regulatory approval on January 4, 2021, five years after the Closing Date. The Company contributed $9.0 million of the proceeds from the Subordinated Note as additional capital to the Bank in the fourth quarter of 2015 and used the balance to fund general working capital and operating expenses. The maximum and average balances and weighted average interest rates on debt during the years ended December 31, 2020 and 2019 were as follows: 2020 2019 Maximum balance: Federal Home Loan Bank advances and Fed Funds $ 159,114 $ 186,401 Federal Reserve Bank $ 40,000 $ 5,000 Fed Funds lines of credit $ 865 $ 5,000 Subordinated note $ 10,000 $ 10,000 Paycheck Protection Program Liquidity Facility $ 74,112 $ — Average balance: Federal Home Loan Bank advances and Fed Funds $ 99,773 $ 93,653 Federal Reserve Bank $ 1,096 $ 167 Fed Funds lines of credit $ 3 $ 318 Subordinated note $ 10,000 $ 10,000 Paycheck Protection Program Liquidity Facility $ 46,965 $ — Weighted average interest rates Federal Home Loan Bank advances and Fed Funds 1.80 % 2.61 % Fed Funds 0.25 % 2.96 % Fed Funds lines of credit 0.36 % 2.09 % Subordinated note 6.50 % 6.50 % Paycheck Protection Program Liquidity Facility 0.35 % — % Scheduled maturities of Federal Home Loan Bank advances were as follows: Interest Years Ending December 31, Balances Rates 2021 $ 75,000 1.60 % 2022 13,633 2.03 % 2023 13,895 1.77 % Total $ 102,528 |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefits | NOTE 10 - EMPLOYEE BENEFITS Employee Stock Ownership Plan On January 1, 2012, the Company established an ESOP for eligible employees of the Company and the Bank. Employees of the Company and the Bank are eligible to participate in the ESOP if they have been credited with at least 1,000 1,000 The ESOP borrowed $2.6 million from FS Bancorp, Inc. and used those funds to acquire 259,210 shares of FS Bancorp, Inc. common stock in the open market at an average price of $10.17 per share during the second half of 2012. It is anticipated that the Bank will make contributions to the ESOP in amounts necessary to amortize the ESOP loan payable to FS Bancorp, Inc. over a period of 10 years, bearing interest at 2.30%. Intercompany expenses associated with the ESOP are eliminated in consolidation. Shares purchased by the ESOP with the loan proceeds are held in a suspense account and allocated to ESOP participants on a pro rata basis as principal and interest payments are made by the ESOP to FS Bancorp, Inc. The loan is secured by shares purchased with the loan proceeds and will be repaid by the ESOP with funds from the Bank’s discretionary contributions to the ESOP and earnings on the ESOP assets. Payments of principal and interest are due annually on December 31, the Company’s fiscal year end. On December 31, 2020, the ESOP paid the ninth annual installment of principal in the amount of $282,000, plus accrued interest of $13,000 pursuant to the ESOP loan agreement. As shares are committed to be released from collateral, the Company reports compensation expense equal to the average daily market prices of the shares at December 31, 2020 for the prior 90 days. These shares become outstanding for earnings per share computations. The compensation expense is accrued monthly throughout the year. Dividends on allocated ESOP shares are recorded as a reduction of retained earnings; dividends on unallocated ESOP shares are recorded as a reduction of debt and accrued interest. Compensation expense related to the ESOP for the years ended December 31, 2020 and 2019, was $1.3 million, and $1.5 million, respectively. Shares held by the ESOP at December 31, 2020 and December 31, 2019, were as follows (shown as actual): Balances Balances at December 31, 2020 at December 31, 2019 Allocated shares 213,744 189,511 Committed to be released shares — — Unallocated shares 25,921 51,842 Total ESOP shares 239,665 241,353 Fair value of unallocated shares (in thousands) $ 1,307 $ 3,006 401(k) Plan The Company has a salary deferral 401(k) Plan covering substantially all of its employees. Employees are eligible to participate in the 401(k) plan at the date of hire if they are 18 years of age. Eligible employees may contribute through payroll deductions and are 100% vested at all times in their deferral contributions account. The Company matches 100% for contributions of 1% to 3%, and 50% for contributions of 4% to 5%. There was a $1.5 million and $1.2 million matching contribution for the years ended December 31, 2020 and 2019, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
Income Taxes | NOTE 11 - INCOME TAXES The components of income tax expense for the years ended December 31, 2020 and 2019, were as follows: 2020 2019 Provision for income taxes Current $ 12,976 $ 4,425 Deferred (2,390) 988 Total provision for income taxes $ 10,586 $ 5,413 A reconciliation of the effective income tax rate with the federal statutory tax rates at December 31, 2020 and 2019 was as follows: 2020 2019 Amount Rate Amount Rate Income tax provision at statutory rate $ 10,469 21.0 % $ 5,907 21.0 % Tax exempt income (292) (0.6) (225) (0.8) Nondeductible items resulting in increase in tax 57 0.1 129 0.5 Increase (decrease) in tax resulting from other items 175 0.4 (78) (0.3) Equity compensation (46) (0.1) (691) (2.5) Executive compensation 8 — 112 0.4 ESOP 215 0.4 259 0.9 Total $ 10,586 21.2 % $ 5,413 19.2 % Total deferred tax assets and liabilities at December 31, 2020 and 2019 were as follows: Deferred Tax Assets 2020 2019 Net operating loss carryforward $ 527 $ 864 Allowance for loan losses 5,775 2,844 Purchase accounting adjustments — 466 Other real estate owned 126 126 Nonaccrued loan interest 6 13 Restricted stock awards 97 68 Non-qualified stock options 251 185 Interest rate swaps designated as cash flow hedge 265 — Lease liability 1,113 1,121 Accrued compensation 430 — Other 224 351 Total deferred tax assets 8,814 6,038 Deferred Tax Liabilities Loan origination costs (2,134) (1,341) Servicing rights (2,708) (2,525) Stock dividend - FHLB stock (55) (59) Property, plant, and equipment (1,097) (1,362) Purchase accounting adjustments (830) (1,404) Securities available-for-sale (958) (216) Lease right-of-use assets (1,090) (1,078) Other — (24) Total deferred tax liabilities (8,872) (8,009) Net deferred tax liabilities $ (58) $ (1,971) The Company files a U.S. Federal income tax return and Oregon and Idaho state returns, which are subject to examination by tax authorities for years 2017 and later. At December 31, 2020 and 2019, the Company had no uncertain tax positions. The Company recognizes interest and penalties in tax expense and at December 31, 2020 and 2019, the Company recognized no interest and penalties. In response to the COVID-19 pandemic, the CARES Act, among other things, permits net operating loss (“NOL”) carryforwards and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes, and it provides options for accelerating refunds associated with previously paid alternative minimum taxes. The Company benefited from the alternative minimum tax refund provisions of the CARES Act and submitted accelerated refund claims during the year ended December 31, 2020. At December 31, 2020, the Company had a remaining NOL of approximately $2.4 million, which begins to expire in 2035. On December 27, 2020, the CAA 2021 was signed into law and extends several provisions of the CARES Act. As of December 31, 2020, the Company has determined that neither this act nor changes to income tax laws or regulations in other jurisdictions have a significant impact on its effective tax rate. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 12 - COMMITMENTS AND CONTINGENCIES Commitments - The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The following table provides a summary of the Company’s commitments at December 31, 2020 and 2019: COMMITMENTS TO EXTEND CREDIT December 31, December 31, REAL ESTATE LOANS 2020 2019 Commercial $ 1,293 $ 247 Construction and development 143,666 95,031 One-to-four-family (includes locks for saleable loans) 147,712 39,697 Home equity 52,457 47,880 Multi-family 658 622 Total real estate loans 345,786 183,477 CONSUMER LOANS 23,365 22,176 COMMERCIAL BUSINESS LOANS Commercial and industrial 106,171 72,731 Warehouse lending 52,909 33,888 Total commercial business loans 159,080 106,619 Total commitments to extend credit $ 528,231 $ 312,272 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the amount of the total commitments does not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. Collateral held varies, but may include accounts receivable, inventory, property and equipment, residential real estate, and income-producing commercial properties. Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit are uncollateralized and usually do not contain a specified maturity date and ultimately may not be drawn upon to the total extent to which the Company is committed. The Company has established reserves for estimated losses from unfunded commitments of $407,000 and $293,000 at December 31, 2020 and 2019, respectively. One-to-four-family commitments included in the table above are accounted for as fair value derivatives and do not carry an associated holdback. The Company’s derivative positions are presented with discussion in “Note 17 - Derivatives.” The Company also sells one-to-four-family loans to the FHLB of Des Moines that require a limited level of recourse if the loans default and exceed a certain loss exposure. Specific to that recourse, the FHLB of Des Moines established a first loss account (“FLA”) related to the loans and required a credit enhancement (“CE”) obligation by the Bank to be utilized after the FLA is used. Based on loans sold through December 31, 2020, the total loans sold to the FHLB were $30.0 million with the FLA being $938,000 and the CE obligation at $811,000 or 2.7% of the loans outstanding. Management has established a holdback of 10% of the outstanding CE obligation, or $272,000, which is a part of the off-balance sheet holdback for loans sold. At December 31, 2020, there were $498,000 of loans sold to the FHLB of Des Moines greater than 30 days past their contractual payment due date, compared to none at December 31, 2019. Contingent liabilities for loans held for sale these guarantees for one-to-four-family loans sold into the secondary market at December 31, 2020 and 2019, respectively, which is included in other liabilities in the Consolidated Balance Sheets. The Company has entered into a severance agreement with its Chief Executive Officer (“CEO”). The severance agreement, subject to certain requirements, generally includes a lump sum payment to the CEO equal to 24 months of base compensation in the event their employment is involuntarily terminated, other than for cause or the executive terminates his employment with good reason, as defined in the severance agreement. The Company has entered into change of control agreements with its Chief Financial Officer, Chief Operating Officer, Chief Lending Officer, Chief Credit Officer, Chief Risk Officer, Chief Human Resources Officer, Senior Vice President Compliance Officer, Executive Vice President of Retail Banking and Marketing, and the Executive Vice President of Home Lending. The change of control agreements, subject to certain requirements, generally remain in effect until canceled by either party upon at least 24 months prior written notice. Under the change of control agreements, the executive generally will be entitled to a change of control payment from the Company if the executive is involuntarily terminated within six months preceding or 12 months after a change in control (as defined in the change of control agreements). In such an event, the executives would each be entitled to receive a cash payment in an amount equal to 12 months of their then current salary, subject to certain requirements in the change of control agreements. As a result of the nature of our activities, the Company is subject to various pending and threatened legal actions, which arise in the ordinary course of business. From time to time, subordination liens may create litigation which requires us to defend our lien rights. In the opinion of management, liabilities arising from these claims, if any, will not have a material effect on our financial position. The Company had no material pending legal actions at December 31, 2020. |
Significant Concentration of Cr
Significant Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Significant Concentration of Credit Risk | NOTE 13 - SIGNIFICANT CONCENTRATION OF CREDIT RISK Most of the Company’s commercial and multi-family real estate, construction, residential, and/or commercial business lending activities are with customers located in Western Washington and near the one loan production office located in the Tri-Cities, Washington. The Company originates real estate, consumer, and commercial business loans and has concentrations in these areas, however, indirect home improvement loans, including solar-related home improvement loans are originated through a network of home improvement contractors and dealers located throughout Washington, Oregon, California, Idaho, Colorado, Arizona, Minnesota, and Nevada. Loans are generally secured by collateral and rights to collateral vary and are legally documented to the extent practicable. Local economic conditions may affect borrowers’ ability to meet the stated repayment terms. The concentration on commercial real estate remains below the 300% of Risk Based Capital regulatory threshold and the subset of construction concentration, excluding owner-occupied loans is within Board approved limits. The construction, land development, and other land concentration represents less than 100% of the Bank’s total regulatory capital at 89.6% and is focused on in city, in fill vertical construction financing in King and Snohomish counties. Local economic conditions may affect borrowers’ ability to meet the stated repayment terms. |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital | NOTE 14 - REGULATORY CAPITAL The Bank is subject to various regulatory capital requirements administered by the Federal Reserve and the FDIC. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines of the regulatory framework for prompt corrective action, the Bank must meet specific capital adequacy guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital classification is also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The federal banking agencies jointly issued a final rule that provides for an optional, simplified measure of capital adequacy, the community bank leverage ratio framework, for qualifying community banking organizations, consistent with Section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. This final rule is applicable to all non-advanced approaches FDIC-supervised institutions with less than $10 billion in total consolidated assets. The community bank leverage ratio (“CBLR”) final rule was effective on January 1, 2020, and allows qualifying community banking organizations to calculate a leverage ratio to measure capital adequacy. Banks opting into the CBLR framework are not required to calculate or report risk-based capital. A qualifying community banking organization is defined as having less than $10 billion in total consolidated assets, a leverage ratio greater than 9%, off-balance sheet exposures of 25% or less of total consolidated assets, and trading assets and liabilities of 5% or less of total consolidated assets. The final rule adopted Tier 1 capital and the existing leverage ratio into the community bank leverage ratio framework. A bank electing the framework is not subject to other capital and leverage requirements. A bank electing the framework that ceases to meet any qualifying criteria in a future period and that has a leverage ratio greater than 8% will be allowed a grace period of two reporting periods to satisfy the CBLR qualifying criteria or comply with the generally applicable capital requirements. A bank may opt out of the framework at any time, without restriction, by reverting to the generally applicable risk-based capital rule. In response to the COVID-19 pandemic, the CARES Act was signed into law on March 27, 2020. Among other things, the CARES Act directs federal banking agencies to adopt interim final rules to lower the threshold under the CBLR from 9% to 8% and to provide a reasonable grace period for a community bank that falls below the threshold to regain compliance, in each case until the earlier of the termination date of the national emergency or December 31, 2020. In April 2020, the federal banking agencies issued two interim final rules implementing this directive. One interim final rule provides that, as of the second quarter 2020, banking organizations with leverage ratios of 8% or greater (and that meet the other existing qualifying criteria) may elect to use the CBLR framework. It also establishes a two-quarter grace period for qualifying community banking organizations whose leverage ratios fall below the 8% CBLR requirement, so long as the banking organization maintains a leverage ratio of 7% or greater. The second interim final rule provides a transition from the temporary 8% CBLR requirement to a 9% CBLR requirement. It establishes a minimum CBLR of 8% for the second through fourth quarters of 2020, 8.5% for 2021, and 9% thereafter, and maintains a two-quarter grace period for qualifying community banking organizations whose leverage ratios fall no more than 100 basis points below the applicable CBLR requirement. Effective October 1, 2020, the final rule made no change to the interim final rule issued in April. The FS Bancorp, Inc. is a bank holding company registered with the Federal Reserve. Bank holding companies are subject to capital adequacy requirements of the Federal Reserve under the Bank Holding Company Act of 1956, as amended, and the regulations of the Federal Reserve. Bank holding companies with less than $3.0 billion in assets are generally not subject to compliance with the Federal Reserve’s capital regulations, which are generally the same as the capital regulations applicable to the Bank. The Federal Reserve has a policy that a bank holding company is required to serve as a source of financial and managerial strength to the holding company’s subsidiary bank and expects the holding company’s subsidiary bank to be well capitalized under the prompt corrective action regulations. If FS Bancorp, Inc. was subject to regulatory guidelines for bank holding companies with $3.0 billion or more in assets at December 31, 2020, FS Bancorp, Inc. would have exceeded all regulatory capital requirements. The Tier 1 leverage-based capital ratio calculated for FS Bancorp, Inc. at December 31, 2020 was 11.1%, compared to 11.3% at December 31, 2019. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 15 - FAIR VALUE MEASUREMENTS The Company determines fair value based on the requirements established in Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities, The following definitions describe the levels of inputs that may be used to measure fair value: Level 1 Level 2 Level 3 The following methods were used to estimate the fair value of certain assets and liabilities on a recurring and nonrecurring basis. Securities Mortgage Loans Held for Sale - Derivative Instruments - Impaired Loans - Other Real Estate Owned Servicing Rights The following table presents securities available-for-sale, mortgage loans held for sale, and derivative assets and liabilities measured at fair value on a recurring basis at the dates indicated: Financial Assets At December 31, 2020 Securities available-for-sale: Level 1 Level 2 Level 3 Total U.S. agency securities $ — $ 8,105 $ — $ 8,105 Corporate securities — 10,016 984 11,000 Municipal bonds — 71,730 127 71,857 Mortgage-backed securities — 68,187 — 68,187 U.S. Small Business Administration securities — 18,869 — 18,869 Mortgage loans held for sale, at fair value — 166,448 — 166,448 Derivatives: Interest rate swaps — 21 — 21 Interest rate lock commitments with customers — — 4,024 4,024 Total assets measured at fair value $ — $ 343,376 $ 5,135 $ 348,511 Financial Liabilities Derivatives: Mandatory and best effort forward commitments with investors $ — $ — $ (67) $ (67) Forward TBA mortgage-backed securities — (1,602) — (1,602) Interest rate swaps — (1,252) — (1,252) Total liabilities measured at fair value $ — $ (2,854) $ (67) $ (2,921) Financial Assets At December 31, 2019 Securities available-for-sale: Level 1 Level 2 Level 3 Total U.S. agency securities $ — $ 9,066 $ — $ 9,066 Corporate securities — 9,546 1,024 10,570 Municipal bonds — 20,982 138 21,120 Mortgage-backed securities — 62,850 — 62,850 U.S. Small Business Administration securities — 22,451 — 22,451 Mortgage loans held for sale, at fair value — 69,699 — 69,699 Derivatives: Interest rate lock commitments with customers — — 557 557 Total assets measured at fair value $ — $ 194,594 $ 1,719 $ 196,313 Financial Liabilities Derivatives: Mandatory and best effort forward commitments with investors $ — $ — $ (195) $ (195) Forward TBA mortgage-backed securities — (8) — (8) Total liabilities measured at fair value $ — $ (8) $ (195) $ (203) The following table presents impaired loans, OREO, and servicing rights measured at fair value on a nonrecurring basis for which a nonrecurring change in fair value has been recorded during the reporting periods indicated. The amounts disclosed below represent the fair values at the time the nonrecurring fair value measurements were evaluated. December 31, 2020 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 7,761 $ 7,761 OREO — — 90 90 Servicing rights — — 12,833 12,833 December 31, 2019 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 3,128 $ 3,128 OREO — — 168 168 Servicing rights — — 13,255 13,255 Quantitative Information about Level 3 Fair Value Measurements - Level 3 Significant Weighted Average Fair Value Valuation Unobservable December 31, December 31, Instruments Techniques Inputs Range 2020 2019 RECURRING Interest rate lock commitments with customers Quoted market prices Pull-through expectations 80% - 99% 91.6 % 94.5 % Individual forward sale commitments with investors Quoted market prices Pull-through expectations 80% - 99% 91.6 % 94.5 % Corporate securities Discounted cash flows Discount rate 2.5% 2.5 % 2.1 % Municipal bonds Discounted cash flows Discount rate 6.4% 6.4 % 3.4 % NONRECURRING Impaired loans Fair value of underlying collateral Discount applied to the obtained appraisal 10.0% 10.0 % 10.0 % OREO Fair value of collateral Discount applied to the obtained appraisal 10.0% 10.0 % 10.0 % Servicing rights Industry sources Pre-payment speeds 0% - 50% 32.6 % 17.1 % An increase in the pull-through rate utilized in the fair value measurement of the interest rate lock commitments with customers and forward sale commitments with investors will result in positive fair value adjustments (and an increase in the fair value measurement). Conversely, a decrease in the pull-through rate will result in a negative fair value adjustment (and a decrease in the fair value measurement). The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the years ended December 31, 2020 and 2019. Purchases Net change in Net change in Beginning and Sales and Transfers Ending fair value for fair value for 2020 Balance Issuances Settlements In Balance gains/(losses) (1) gains/(losses) (2) Interest rate lock commitments with customers $ 557 $ 53,281 $ (49,814) $ — $ 4,024 $ 3,467 $ — Individual forward sale commitments with investors (195) (4,857) 4,985 — (67) 128 — Securities available-for-sale, at fair value 1,162 — (51) — 1,111 — (40) 2019 Interest rate lock commitments with customers $ 503 $ 11,063 $ (11,009) $ — $ 557 $ 54 $ — Individual forward sale commitments with investors (34) (1,444) 1,283 — (195) (161) — Securities available-for-sale, at fair value — — — 1,162 1,162 — — _____________________________ (1) Relating to items held at end of period included in income. (2) Relating to items held at end of period included in other comprehensive income. Gains (losses) on interest rate lock commitments carried at fair value are recorded in other noninterest income. Gains (losses) on forward sale commitments with investors carried at fair value are recorded in noninterest income. The following table provides estimated fair values of the Company’s financial instruments at December 31, 2020 and 2019, whether or not recognized at fair value in the Consolidated Balance Sheets: December 31, December 31, 2020 2019 Financial Assets Carrying Fair Carrying Fair Level 1 inputs: Amount Value Amount Value Cash and cash equivalents $ 91,576 $ 91,576 $ 45,778 $ 45,778 Certificates of deposit at other financial institutions 12,278 12,278 20,902 20,902 Level 2 inputs: Securities available-for-sale, at fair value 176,907 176,907 124,895 124,895 Securities held-to-maturity 7,500 7,556 — — Loans held for sale, at fair value 166,448 166,448 69,699 69,699 FHLB stock, at cost 7,439 7,439 8,045 8,045 Interest rate swaps 21 21 — — Accrued interest receivable 7,030 7,030 5,908 5,908 Level 3 inputs: Securities available-for-sale, at fair value 1,111 1,111 1,162 1,162 Loans receivable, gross 1,574,227 1,580,360 1,351,893 1,377,408 Servicing rights, held at lower of cost or fair value 12,595 12,833 11,560 13,255 Fair value interest rate locks with customers 4,024 4,024 557 557 Financial Liabilities Level 2 inputs: Deposits 1,674,071 1,674,328 1,392,408 1,385,658 Borrowings 165,809 167,680 84,864 85,268 Subordinated note 10,000 11,083 9,885 10,599 Accrued interest payable 406 406 273 273 Interest rate swaps 1,252 1,252 — — Forward TBA mortgage-backed securities 1,602 1,602 8 8 Level 3 inputs: Mandatory and best effort forward commitments with investors 67 67 195 195 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 16 - EARNINGS PER SHARE The Company computes earnings per share using the two-class method, which is an earnings allocation method for computing earnings per share that treats a participating security as having rights to earnings that would otherwise have been available to common shareholders. Basic earnings per share are computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Unvested share-based awards containing non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. For earnings per share calculations, the ESOP shares committed to be released are included as outstanding shares for both basic and diluted earnings per share. The following table presents a reconciliation of the components used to compute basic and diluted earnings per share for the years ended December 31, 2020 and 2019: At or For the Year Ended December 31, Numerator (in thousands): 2020 2019 Net income $ 39,264 $ 22,717 Dividends and undistributed earnings allocated to participating securities (192) (73) Net income available to common shareholders $ 39,072 $ 22,644 Denominator (shown as actual): Basic weighted average common shares outstanding 4,273,350 4,414,032 Dilutive shares 81,019 108,992 Diluted weighted average common shares outstanding 4,354,369 4,523,024 Basic earnings per share $ 9.14 $ 5.13 Diluted earnings per share $ 8.97 $ 5.01 Potentially dilutive weighted average share options that were not included in the computation of diluted earnings per share because to do so would be anti-dilutive 66,619 36,337 |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | NOTE 17 - DERIVATIVES The Company regularly enters into commitments to originate and sell loans held for sale. The Company has established a hedging strategy to protect itself against the risk of loss associated with interest rate movements on loan commitments. The Company enters into contracts to sell forward TBA mortgage-backed securities. These commitments and contracts are considered derivatives but have not been designated as hedging instruments for reporting purposes under U.S. GAAP. Rather, they are accounted for as free-standing derivatives, or economic hedges, with changes in the fair value of the derivatives reported in noninterest income or noninterest expense. The Company recognizes all derivative instruments as either other assets or other liabilities on the Consolidated Balance Sheets and measures those instruments at fair value. Derivative instruments not related to mortgage banking activities primarily relate to interest rate swap agreements. The Company's objectives in using certain interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company has entered into interest rate swaps to reduce the exposure to variability in interest-related cash outflows attributable to changes in forecasted LIBOR-based borrowings and brokered deposits. These derivative instruments are designated as cash flow hedges. The hedged item is the LIBOR portion of the series of future adjustable rate borrowings and deposits over the term of the interest rate swap. Accordingly, changes to the amount of interest payment cash flows for the hedged transactions attributable to a change in credit risk are excluded from management’s assessment of hedge effectiveness. The Company tests for hedging effectiveness on a quarterly basis. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The Company has not recorded any hedge ineffectiveness since inception. The Company has master netting agreements with derivative dealers with which it does business, but reflects gross assets and liabilities as other assets and other liabilities, respectively, on the Consolidated Balance Sheets. The net unrealized loss on cash flow hedges recorded in accumulated other comprehensive income was $967,000 , net of tax, at December 31, 2020. The Company reclassified realized losses of $198,000 from accumulated other comprehensive income to interest expense related to these cash flow hedges for the year ended December 31, 2020. The Company had no cash flow hedges in 2019. The Company expects that approximately $492,000 will be reclassified from accumulated other comprehensive income as an increase to interest expense over the next twelve months related to these cash flow hedges. The following tables summarize the Company’s derivative instruments at the dates indicated: December 31, 2020 Fair Value Cash flow hedges: Notional Asset Liability Interest rate swaps $ 90,000 $ 21 $ 1,252 Non-hedging derivatives: Fallout adjusted interest rate lock commitments with customers 136,739 4,024 — Mandatory and best effort forward commitments with investors 25,027 — 67 Forward TBA mortgage-backed securities 232,000 — 1,602 December 31, 2019 Fair Value Non-hedging derivatives: Notional Asset Liability Fallout adjusted interest rate lock commitments with customers $ 33,914 $ 557 $ — Mandatory and best effort forward commitments with investors 43,752 — 195 Forward TBA mortgage-backed securities 46,000 — 8 At December 31, 2020 and 2019, the Company had $232.0 million and $46.0 million of TBA trades with counterparties that required margin collateral of $3.3 million and $1.2 million, respectively. At December 31, 2020, the Bank had pledged two securities with a carrying value of $3.4 million to secure interest rate swaps designated as cash flow hedges. Changes in the fair value of the non-hedging derivatives recognized in noninterest income on the Consolidated Statements of Income and included in gain on sale of loans resulted in a net gain of $6.3 million and $303,000 for the years ended December 31, 2020 and 2019, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | NOTE 18 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following were changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ended December 31, 2020 and 2019: Unrealized Gains Gains and and Losses Losses on on Available Cash Flow for Sale Year Ended December 31, 2020 Hedges Securities Total Beginning balance $ — $ 788 $ 788 Other comprehensive (loss) income before reclassification, net of tax (1,122) 2,947 1,825 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 155 (235) (80) Net current period other comprehensive (loss) income (967) 2,712 1,745 Ending balance $ (967) $ 3,500 $ 2,533 Unrealized Gains Gains and and Losses Losses on on Available Cash Flow for Sale Year Ended December 31, 2019 Hedges Securities Total Beginning balance $ — $ (1,479) $ (1,479) Other comprehensive income before reclassification, net of tax — 2,292 2,292 Amounts reclassified from accumulated other comprehensive loss, net of tax — (25) (25) Net current period other comprehensive income — 2,267 2,267 Ending balance $ — $ 788 $ 788 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock Options and Restricted Stock On May 17, 2018, the shareholders of FS Bancorp, Inc. approved the 2018 Equity Incentive Plan (the “2018 Plan”) that authorizes 650,000 shares of the Company’s common stock to be awarded. The 2018 Plan provides for the grant of incentive stock options, non-qualified stock options, and up to 163,000 restricted stock awards (“RSAs”) to directors, emeritus directors, officers, employees or advisory directors of the Company. On August 15, 2020, the Company awarded grants of 24,880 RSAs and 62,285 stock options with an exercise price equal to the market price of FS Bancorp’s common stock on the grant date of $42.70 per share. At December 31, 2020, there were 274,060 stock option awards and 92,905 RSAs available to be granted under the 2018 Plan. In September 2013, the shareholders of FS Bancorp, Inc. approved the FS Bancorp, Inc. 2013 Equity Incentive Plan (the “2013 Plan”). The Plan provides for the grant of stock options and RSAs. The 2013 Plan authorizes the grant of stock options totaling 324,013 shares of common stock to Company directors and employees of which 322,000 stock options were granted with an exercise price equal to the market price of FS Bancorp’s common stock at the grant date of May 8, 2014, of $16.89 per share. The 2013 Plan authorized the grant of RSAs totaling 129,605 shares to Company directors, advisory directors, emeritus directors, officers, and employees, all of which have been granted. All options and RSAs previously granted have vested at December 31, 2020. At December 31, 2020, there were 6,013 stock option awards available to be granted under the 2013 Plan. Total share-based compensation expense was $1.0 million for the year ended December 31, 2020, and $869,000 for the year ended December 31, 2019. The related income tax benefit was $214,000 and $182,000 for the years ended December 31, 2020 and 2019, respectively. Stock Options Both plans consist of stock option awards that may be granted as incentive stock options or non-qualified stock options. Stock option awards generally vest at one year for independent directors or over a five year period for employees and officers with 20% vesting on the anniversary date of each grant date as long as the award recipient remains in service to the Company. The options are exercisable after vesting for up to the remaining term of the original grant. The maximum term of the options granted is 10 years. Any unexercised stock options will expire 10 years after the grant date or sooner in the event of the award recipient’s termination of service with the Company or the Bank. The fair value of each stock option award is estimated on the grant date using a Black-Scholes Option pricing 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 Company elected to use Staff Accounting Bulletin 107, simplified expected term calculation for 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 5.5 years for one-year vesting and 6.5 years for five-year vesting. The fair value of options granted was determined using the following weighted-average assumptions as of the grant date for the years ended December 31, 2020 and 2019. Year Ended December 31, Year Ended December 31, 2020 2019 Dividend yield 1.97% 1.23% Expected volatility, maximum 26.79% 18.90% Risk-free interest rate, maximum 0.42% 1.45% Expected term in years, maximum 6.5 6.5 Weighted-average grant date fair value per option granted $ 8.00 $ 8.80 The following table presents a summary of the Company’s stock option plan awards during the year ended December 31, 2020 (shown as actual): Weighted-Average Weighted- Remaining Average Contractual Term In Aggregate Shares Exercise Price Years Intrinsic Value Outstanding at January 1, 2020 287,990 $ 36.98 6.77 $ 7,722,369 Granted 62,285 $ 42.70 6.45 — Less exercised 14,398 $ 16.89 — $ 453,674 Forfeited or expired — — — — Outstanding at December 31, 2020 335,877 $ 38.90 6.58 $ 5,721,159 Expected to vest, assuming a 0.31% annual forfeiture rate (1) 334,824 $ 38.87 6.58 $ 5,713,654 Exercisable at December 31, 2020 174,988 $ 28.62 4.69 $ 4,733,571 _________________________ (1) Forfeiture rate has been calculated and estimated to assume a forfeiture of 3.1% of the options forfeited over 10 years. At December 31, 2020, there was $1.5 million of total unrecognized compensation cost related to nonvested stock options granted under the 2018 plan. The cost is expected to be recognized over the remaining weighted-average vesting period of 3.4 years. Restricted Stock Awards The RSAs’ fair value is equal to the value of the stock-based on the market price of FS Bancorp’s common stock on the grant date and compensation expense is recognized over the vesting period of the awards based on the fair value of the restricted stock. Shares for the 2018 Plan generally vest at one year for independent directors or over a five-year period for employees and officers beginning on the grant date. Any unvested RSAs will expire after vesting or sooner in the event of the award recipient’s termination of service with the Company or the Bank. The following table presents a summary of the Company’s nonvested awards during the year ended December 31, 2020 (shown as actual): Weighted-Average Grant-Date Fair Value Nonvested Shares Shares Per Share Nonvested at January 1, 2020 40,215 $ 53.64 Granted 24,880 $ 42.70 Less vested 10,003 $ 53.67 Forfeited or expired — — Nonvested at December 31, 2020 55,092 $ 48.70 At December 31, 2020, there was $2.4 million of total unrecognized compensation costs related to nonvested shares granted under the 2018 plan as RSAs. The cost is expected to be recognized over the remaining weighted-average vesting period of 3.6 years. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | NOTE 20 - BUSINESS SEGMENTS The Company’s business segments are determined based on the products and services provided, as well as the nature of the related business activities, and they reflect the manner in which financial information is currently evaluated by management. This process is dynamic and is based on management’s current view of the Company’s operations and is not necessarily comparable with similar information for other financial institutions. The Company defines its business segments by product type and customer segment which it has organized into two lines of business: commercial and consumer banking and home lending. The Company uses various management accounting methodologies to assign certain income statement items to the responsible operating segment, including: ● a funds transfer pricing (“FTP”) system, which allocates interest income credits and funding charges between the segments, assigning to each segment a funding credit for its liabilities, such as deposits, and a charge to fund its assets; ● a cost per loan serviced allocation based on the number of loans being serviced on the balance sheet and the number of loans serviced for third parties; ● an allocation based upon the approximate square footage utilized by the home lending segment in Company owned locations; ● an allocation of charges for services rendered to the segments by centralized functions, such as corporate overhead, which are generally based on the number of full-time employees (“FTEs”) in each segment; and ● an allocation of the Company’s consolidated income taxes which are based on the effective tax rate applied to the segment’s pretax income or loss. The FTP methodology is based on management’s estimated cost of originating funds including the cost of overhead for deposit generation. A description of the Company’s business segments and the products and services that they provide is as follows: Commercial and Consumer Banking Segment The commercial and consumer banking segment provides diversified financial products and services to our commercial and consumer customers through Bank branches, automated teller machines (“ATM”), online banking platforms, mobile banking apps, and telephone banking. These products and services include deposit products; residential, consumer, business and commercial real estate lending portfolios and cash management services. The Company originates consumer loans, commercial and multi-family real estate loans, construction loans for residential and multi-family construction, and commercial business loans. At December 31, 2020, the Company’s retail deposit branch network consisted of 21 branches in the Pacific Northwest. This segment is also responsible for the management of the investment portfolio and other assets of the Bank. Home Lending Segment The home lending segment originates one-to-four-family residential mortgage loans primarily for sale in the secondary markets as well as originating adjustable rate mortgage (“ARM”) loans held for investment. The majority of mortgage loans are sold to or securitized by FNMA, FHLMC, GNMA or the FHLB of Des Moines, while the Company retains the right to service these loans. Loans originated under the guidelines of the Federal Housing Administration or FHA, US Department of Veterans Affairs or VA, and United States Department of Agriculture or USDA are generally sold servicing released to a correspondent bank or mortgage company. The Company has the option to sell loans on a servicing-released or servicing-retained basis to securitizers and correspondent lenders. A small percentage of loans are brokered to other lenders. On occasion, the Company may sell a portion of its MSR portfolio and may sell small pools of loans initially originated to be held in the loan portfolio. The Company manages the loan funding and the interest rate risk associated with the secondary market loan sales and the retained one-to-four-family mortgage servicing rights within this business segment. One-to-four-family loans originated for investment are allocated to the home lending segment with a corresponding provision expense and FTP for cost of funds. Segment Financial Results The tables below summarize the financial results for each segment based on the factors mentioned above within each segment for the years ended December 31, 2020 and 2019: At or For the Year Ended December 31, 2020 Condensed income statement: Home Lending Commercial and Consumer Banking Total Net interest income (1) $ 5,123 $ 68,997 $ 74,120 Provision for loan losses (2,758) (10,278) (13,036) Noninterest income 44,808 10,551 55,359 Noninterest expense (17,351) (49,242) (66,593) Income before provision for income taxes 29,822 20,028 49,850 Provision for income taxes (6,333) (4,253) (10,586) Net income $ 23,489 $ 15,775 $ 39,264 Total assets $ 460,409 $ 1,652,832 $ 2,113,241 Total average assets for year ended $ 396,367 $ 1,543,681 $ 1,940,048 FTEs 152 354 506 At or For the Year Ended December 31, 2019 Condensed income statement: Home Lending Commercial and Consumer Banking Total Net interest income (1) $ 6,307 $ 64,001 $ 70,308 Provision for loan losses (433) (2,447) (2,880) Noninterest income 13,209 9,826 23,035 Noninterest expense (14,283) (48,050) (62,333) Income before provision for income taxes 4,800 23,330 28,130 Provision for income taxes (924) (4,489) (5,413) Net income $ 3,876 $ 18,841 $ 22,717 Total assets $ 312,404 $ 1,400,652 $ 1,713,056 Total average assets for year ended $ 272,901 $ 1,377,468 $ 1,650,369 FTEs 127 325 452 ___________________________ (1) Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to the other segment. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of assigned liabilities to fund segment assets. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customers | NOTE 21 - REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue Recognition In accordance with Topic 606, revenues are recognized when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services that are promised within each contract and identifies those that contain performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. All of the Company’s revenue from contracts with customers in-scope of ASC 606 is recognized in noninterest income and included in our commercial and consumer banking segment. The following table presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2020 and 2019: (Dollars in thousands): At or For the Year Ended December 31, Noninterest income 2020 2019 In-scope of Topic 606: Debit card interchange fees $ 1,879 $ 1,848 Deposit service and account maintenance fees 786 1,065 Noninterest income (in-scope of Topic 606) 2,665 2,913 Noninterest income (out-of-scope of Topic 606) 52,694 20,122 Total noninterest income $ 55,359 $ 23,035 Deposit Fees The Bank earns fees from its deposit customers for account maintenance, transaction-based services and overdraft charges. Account maintenance fees consist primarily of account fees and analyzed account fees charged on deposit accounts on a monthly basis. The performance obligation is satisfied and the fees are recognized on a monthly basis as the service period is completed. Transaction-based fees on deposits accounts are charged to deposit customers for specific services provided to the customer, such as wire fees, as well as charges against the account, such as fees for non-sufficient funds and overdrafts. The performance obligation is completed as the transaction occurs and the fees are recognized at the time each specific service is provided to the customer. Debit Interchange Income Debit and ATM interchange income represent fees earned when a debit card issued by the Bank is used. The Bank earns interchange fees from debit cardholder transactions through the Visa payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. The performance obligation is satisfied and the fees are earned when the cost of the transaction is charged to the cardholders’ debit card. |
Goodwill and other Intangible A
Goodwill and other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 22 - GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and certain other intangibles generally arise from business combinations accounted for under the acquisition method of accounting. Goodwill totaled $2.3 million at December 31, 2020 and 2019, and represents the excess of the total acquisition price paid over the fair value of the assets acquired, net of the fair values of liabilities assumed as a result of the Branch Purchase in 2016. Goodwill is not amortized but is evaluated for impairment on an annual basis at December 31 of each year or whenever events or changes in circumstances indicate the carrying value may not be recoverable. The Company performed an impairment analysis at December 31, 2020 and determined that no impairment of goodwill existed. However, if adverse economic conditions or the decrease in the Company’s stock price and market capitalization as a result of the COVID-19 pandemic were to be deemed sustained rather than temporary, it may significantly affect the fair value of our goodwill. Accordingly, no assurances can be given that the Company will not record an impairment loss on goodwill in the future. Core deposit intangible (“CDI”) is evaluated for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable, with any changes in estimated useful life accounted for prospectively over the revised remaining life. As of December 31, 2020, management believes that there have been no events or changes in the circumstances that would indicate a potential impairment of CDI. The following table summarizes the changes in the Company’s other intangible assets comprised solely of CDI for the years ended December 31, 2020, and December 31, 2019. Other Intangible Assets Accumulated Gross CDI Amortization Net CDI Balance, December 31, 2018 $ 7,490 $ (1,273) $ 6,217 Amortization — (760) (760) Balance, December 31, 2019 7,490 (2,033) 5,457 Amortization — (706) (706) Balance, December 31, 2020 $ 7,490 $ (2,739) $ 4,751 The CDI represents the fair value of the intangible core deposit base acquired in business combinations. The CDI will be amortized on a straight-line basis over 10 years for the CDI related to the Anchor Acquisition and on an accelerated basis over approximately nine years for the CDI related to the Branch Purchase. Total amortization expense was $706,000 for the year ended December 31, 2020, and $760,000 for the year ended December 31, 2019. Amortization expense for CDI is expected to be as follows for the years ended December 31: 2021 $ 691 2022 691 2023 691 2024 621 2025 525 Thereafter 1,532 Total $ 4,751 |
Parent Company Only Financial I
Parent Company Only Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Financial Information | NOTE 23 - PARENT COMPANY ONLY FINANCIAL INFORMATION The Condensed Balance Sheets, Statements of Income, and Statements of Cash Flows for FS Bancorp, Inc. (Parent Only) are presented below: Condensed Balance Sheets December 31, Assets 2020 2019 Cash and due from banks $ 14,531 $ 5,568 Investment in subsidiary 225,484 204,570 Other assets 202 172 Total assets $ 240,217 $ 210,310 Liabilities and Stockholders' Equity Subordinated note, net 10,000 9,885 Other liabilities 210 183 Total liabilities 10,210 10,068 Stockholders' equity 230,007 200,242 Total liabilities and stockholders' equity $ 240,217 $ 210,310 Condensed Statements of Income Year Ended December 31, 2020 2019 Interest from subsidiary $ — $ 2 Interest expense on subordinated note (776) (679) Dividends received from subsidiary 20,862 3,935 Other expenses (195) (142) Income before income tax benefit and equity in undistributed net income of subsidiary 19,891 3,116 Income tax benefit 204 172 Equity in undistributed earnings of subsidiary 19,169 19,429 Net income $ 39,264 $ 22,717 Condensed Statements of Cash Flows Year Ended December 31, 2020 2019 Cash flows from operating activities: Net income $ 39,264 $ 22,717 Equity in undistributed net income of subsidiary (19,169) (19,429) Amortization 115 20 ESOP compensation expense for allocated shares 1,025 1,231 Share-based compensation expense related to stock options and restricted stock 1,020 869 Other assets (30) 3 Other liabilities 27 11 Net cash from operating activities 22,252 5,422 Cash flows from investing activities: Net proceeds from ESOP 282 275 Net cash from investing activities 282 275 Cash flows used by financing activities: (Disbursements) proceeds from stock options exercised (161) 705 Common stock repurchased for employee/director taxes paid on restricted stock awards (34) (204) Common stock repurchased (9,802) (4,800) Dividends paid on common stock (3,574) (2,856) Net cash used by financing activities (13,571) (7,155) Net increase (decrease) in cash and cash equivalents 8,963 (1,458) Cash and cash equivalents, beginning of year 5,568 7,026 Cash and cash equivalents, end of year $ 14,531 $ 5,568 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Basis of Presentation and Summary of Significant Accounting Policies | |
Financial Statement Presentation | Financial Statement Presentation - Amounts presented in the consolidated financial statements and footnote tables are rounded and presented to the nearest thousands of dollars except per share amounts. If the amounts are above $1.0 million, they are rounded one decimal point, and if they are above $1.0 billion, they are rounded two decimal points. |
Principles of Consolidation | Principles of Consolidation - |
Segment Reporting | Segment Reporting - |
Subsequent Events | Subsequent Events - |
Cash and Cash Equivalents | Cash and Cash Equivalents - |
Securities | Securities - non-contingently callable debt securities which are amortized to the earliest call date, rather than the contractual maturity date. Unrealized holding gains and losses, net of the related deferred tax effect, are reported as a net amount in a separate component of equity entitled accumulated other comprehensive income (loss). Any declines in the values of these securities that are considered to be other-than-temporary-impairment (“OTTI”) and credit-related are recognized in earnings. Noncredit-related OTTI on securities not expected to be sold is recognized in other comprehensive income (loss). The review for OTTI is conducted on an ongoing basis and takes into account the severity and duration of the impairment, recent events specific to the issuer or industry, fair value in relationship to cost, extent and nature of change in fair value, creditworthiness of the issuer including external credit ratings and recent downgrades, trends and volatility of earnings, current analysts’ evaluations, and other key measures. In addition, the Company does not intend to sell the securities and it is more likely than not that we will not be required to sell the securities before recovery of their amortized cost basis. In doing this, we take into account our balance sheet management strategy and consideration of current and future market conditions. Dividends and interest income are recognized when earned. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock - Management evaluates FHLB stock for impairment as needed. Management’s determination of whether these investments are impaired is based on its assessment of the ultimate recoverability of cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as (1) the significance of any decline in net assets of the FHLB as compared with the capital stock amount for the FHLB and the length of time this situation has persisted; (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; (3) the impact of legislative and regulatory changes on institutions and, accordingly, the customer base of the FHLB; and (4) the liquidity position of the FHLB. Based on its evaluation, management determined that there was no impairment of FHLB stock at December 31, 2020 and 2019, respectively. |
Loans Held for Sale | Loans Held for Sale - |
Other Real Estate Owned | Other Real Estate Owned - |
Derivatives | Derivatives - The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and resulting designation. The Company’s hedging policies permit the use of various derivative financial instruments to manage interest rate risk or to hedge specified assets and liabilities. To qualify for hedge accounting, derivatives must be highly effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the derivative contract. If derivative instruments are designated as fair value hedges, and such hedges are highly effective, both the change in the fair value of the hedge and the hedged item are included in current earnings. If derivative instruments are designated as cash flow hedges, fair value adjustments related to the effective portion are recorded in other comprehensive income and are reclassified to earnings when the hedged transaction is reflected in earnings. Ineffective portions of cash flow hedges are reflected in earnings as they occur. Actual cash receipts and/or payments and related accruals on derivatives related to hedges are recorded as adjustments to the interest income or interest expense associated with the hedged item. During the life of the hedge, the Company formally assesses whether derivatives designated as hedging instruments continue to be highly effective in offsetting changes in the fair value or cash flows of hedged items. If it is determined that a hedge has ceased to be highly effective, the Company will discontinue hedge accounting prospectively. At such time, previous adjustments to the carrying value of the hedged item are reversed into current earnings and the derivative instrument is reclassified to a trading position recorded at fair value. For derivatives not designated as hedges, changes in fair value are recognized in earnings, in noninterest income. |
Loans Receivable | Loans Receivable - Interest on loans is accrued daily based on the principal amount outstanding. Generally, the accrual of interest on loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due or when they are past due 90 days as to either principal or interest (based on contractual terms), unless they are well secured and in the process of collection. All interest accrued but not collected for loans that are placed on nonaccrual status or charged off are reversed against interest income. Subsequent collections on a cash basis are applied proportionately to past due principal and interest, unless collectability of principal is in doubt, in which case all payments are applied to principal. Loans are returned to accrual status when the loan is performing according to its contractual terms for at least six months and the collectability of principal and interest is no longer doubtful. The Company did not designate loans with payment deferrals granted due to the novel coronavirus of 2019 (“COVID-19’) pandemic as delinquent in accordance with provisions of The Coronavirus Aid, Relief, and Economic Security Act of 2020 (the “CARES Act”) and the Consolidated Appropriations Act, 2021 (the “CAA 2021”) and related regulatory guidance. |
Impaired Loans | Impaired Loans - The categories of nonaccrual loans and impaired loans overlap, although they are not coextensive. The Company considers all circumstances regarding the loan and borrower on an individual basis when determining whether an impaired loan should be placed on nonaccrual status, such as the financial strength of the borrower, the collateral value, reasons for delay, payment record, the amount of past due and the number of days past due. Loans that experience insignificant payment delays and payment shortfalls are generally not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of shortfall in relation to the principal and interest owed. |
Troubled Debt Restructured Loans | Troubled Debt Restructured Loans the maturity at an interest rate below current market; a reduction in the face amount of the debt; a reduction in the accrued interest; or re-aging, extensions, deferrals and renewals. TDR loans are considered impaired loans and are individually evaluated for impairment and can be classified as either accrual or nonaccrual. TDR loans are classified as nonperforming loans unless they have been performing in accordance with their modified terms for a period of at least six months in which case they are placed on accrual status. See “ Recent Accounting Pronouncements, Recent Events” below for payment deferrals considered to be short-term that are not considered TDRs. |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses (“ALLL”) - When available information confirms that specific loans or portions thereof are uncollectible, these amounts are charged-off against the ALLL. The existence of some or all of the following criteria will generally confirm that a loss has been incurred: the loan is significantly delinquent and the borrower has not evidenced the ability or intent to bring the loan current; the Company has no recourse to the borrower, or if it does, the borrower has insufficient assets to pay the debt; the estimated fair value of the loan collateral is significantly below the current loan balance, and there is little or no near-term prospect for improvement. A provision for loan losses is charged against income and added to the ALLL based on regular assessment of the loan portfolio. The ALLL is allocated to certain loan categories based on the relative risk characteristics, asset classifications, and actual loss experience within the loan portfolio. Although management has allocated the ALLL to various loan portfolio segments, the allowance is general in nature and is available for the loan portfolio in its entirety. The ultimate recovery of all loans is susceptible to future market factors beyond the Company’s control. These factors may result in losses or recoveries differing significantly from those provided for in the financial statements. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s ALLL, and may require the Company to make additions to the allowance based on their judgment about information available to them at the time of their examinations. |
Reserve for Unfunded Loan Commitments | Reserve for Unfunded Loan Commitments - |
Premises and Equipment, Net | Premises and Equipment, Net - three Management reviews buildings, improvements and equipment for impairment on an annual basis or whenever events or changes in the circumstances indicate that the undiscounted cash flows for the property are less than its carrying value. If identified, an impairment loss is recognized through a charge to earnings based on the fair value of the property. |
Right of Use Lease Asset & Lease Liability | Right of Use Lease Asset & Lease Liability - The Company leases retail space, office space, storage space, and equipment under operating leases. Most leases require the Company to pay real estate taxes, maintenance, insurance and other similar costs in addition to the base rent. Certain leases also contain lease incentives, such as tenant improvement allowances and rent abatement. Variable lease payments are recognized as lease expense as they are incurred. The Company records an operating lease right of use (ROU) asset and an operating lease liability (lease liability) for operating leases with a lease term greater than 12 months. The ROU asset and lease liability are recorded in other assets and other liabilities, respectively, in the consolidated statement of financial condition. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. Many of the Company’s leases contain various provisions for increases in rental rates, based either on changes in the published Consumer Price Index or a predetermined escalation schedule, which are factored into our determination of lease payments when appropriate. Substantially all of the leases provide the Company with the option to extend the lease term one or more times following expiration of the initial term. The ROU asset and lease liability terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. |
Transfers of Financial Assets and Servicing Rights | Transfers of Financial Assets - Servicing Rights - Servicing assets are evaluated quarterly for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type, and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranche. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to income. Capitalized servicing rights are stated separately on the Consolidated Balance Sheets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. |
Income Taxes | Income Taxes - The Company follows the authoritative guidance issued related to accounting for uncertainty in income taxes. The guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It is the Company’s policy to record any penalties or interest arising from federal or state taxes as a component of income tax expense. |
Employee Stock Ownership Plan | Employee Stock Ownership Plan - |
Earnings Per Share | Earnings Per Share (“EPS”) - |
Comprehensive Income (Loss) | Comprehensive Income (Loss) - |
Financial Instruments | Financial Instruments - |
Restricted Assets | Restricted Assets - |
Marketing and Advertising Costs | Marketing and Advertising Costs - |
Stock-Based Compensation | Stock-Based Compensation - |
Goodwill | Goodwill - |
Business Combinations | Business Combinations In the event that the fair value of net assets acquired exceeds the purchase price, including fair value of liabilities assumed, a bargain purchase gain is recorded on that acquisition. |
Acquired Loans | Acquired Loans |
Application of New Accounting Guidance in 2020 | Application of New Accounting Guidance in 2020 On January 1, 2020, the Company adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU’) No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended by ASU 2018-19, ASU 2019-10, and ASU 2019-11. The Company has selected a third-party vendor to assist in the implementation of this ASU and has run parallel computations as it continues to evaluate the impact of adoption of the new standard. As part of the implementation, management is also evaluating economic variables and forecast time horizons it believes to be most relevant based on the composition of the loan portfolio to develop a reasonable and supportable forecast, likely to include forecasted levels of employment, gross domestic product, and home price index, depending on the nature of the loan segment, as well as various loss methodologies to estimate expected credit losses. In addition, management has kept current on evolving interpretations and industry practices related to ASU 2016-13 via webcasts, publications, and conferences. Once adopted, the Company anticipates the allowance for loan losses to potentially increase through a one-time adjustment to retained earnings, however, until the evaluation is complete the magnitude of the potential increase will be unknown. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments In May 2019, the FASB issued ASU 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20: Receivables – Nonrefundable Fees and Other Costs |
Recent Events | Recent Events consumer loans of $392,000. The majority of these modifications involved short-term (e.g. less than six months) extensions and/or interest-only periods. On December 27, 2020, the Consolidated Appropriations Act (“CAA 2021”) was signed into law. Among other purposes, this act provides additional coronavirus emergency response and relief, including extending relief offered under the CARES Act related to troubled debt restructurings as a result of COVID-19 through January 1, 2022 or 60 days after the end of the national emergency declared by the President, whichever is earlier. For additional information, see “Note 3 - Loans Receivable and Allowance for Loan Losses.” |
Loan Portfolio Segment | The Company has defined its loan portfolio into three segments that reflect the structure of the lending function, the Company’s strategic plan and the manner in which management monitors performance and credit quality. The three loan portfolio segments are: (a) Real Estate Loans, (b) Consumer Loans and (c) Commercial Business Loans. Each of these segments is disaggregated into classes based on the risk characteristics of the borrower and/or the collateral type securing the loan. The following is a summary of each of the Company’s loan portfolio segments and classes: Real Estate Loans Commercial Lending. Loans originated by the Company primarily secured by income producing properties, including retail centers, warehouses, and office buildings located in our market areas. Construction and Development Lending Home Equity Lending One-to-Four-Family Real Estate Lending Multi-family Lending Consumer Loans Indirect Home Improvement Marine. Other Consumer. Commercial Business Loans Commercial and Industrial Lending (“C&I”) Warehouse Lending |
401 (k) Plan | 401(k) Plan The Company has a salary deferral 401(k) Plan covering substantially all of its employees. Employees are eligible to participate in the 401(k) plan at the date of hire if they are 18 years of age. Eligible employees may contribute through payroll deductions and are 100% vested at all times in their deferral contributions account. The Company matches 100% for contributions of 1% to 3%, and 50% for contributions of 4% to 5%. There was a $1.5 million and $1.2 million matching contribution for the years ended December 31, 2020 and 2019, respectively. |
Determination of Fair Market Values | The following methods were used to estimate the fair value of certain assets and liabilities on a recurring and nonrecurring basis. Securities Mortgage Loans Held for Sale - Derivative Instruments - Impaired Loans - Other Real Estate Owned Servicing Rights |
Nonaccrual and Past Due Loans | Nonaccrual and Past Due Loans As a result of the negative impact on employment from the COVID-19 pandemic, the Company anticipates higher levels of financial hardship for its customers, which the Company expects will lead to higher levels of forbearance, delinquency and defaults until such time as the economy and employment return to relatively normal levels. The Company has and will continue to assist customers with an array of payment relief programs during periods of financial hardship, including forbearance. Forbearance allows a borrower to temporarily not make scheduled payments or to make smaller than scheduled payments, in each case for a specified period of time. Forbearance does not grant any reduction in the total principal or interest repayment obligation. While a loan is in forbearance status, interest continues to accrue and is repaid over a specified time period when the loan re-enters repayment status. |
Loan Commitments | The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | December 31, 2020 Estimated Amortized Unrealized Unrealized Fair SECURITIES AVAILABLE-FOR-SALE Cost Gains Losses Values U.S. agency securities $ 7,940 $ 166 $ (1) $ 8,105 Corporate securities 11,885 54 (939) 11,000 Municipal bonds 69,572 2,435 (150) 71,857 Mortgage-backed securities 65,722 2,541 (76) 68,187 U.S. Small Business Administration securities 18,441 443 (15) 18,869 Total securities available-for-sale 173,560 5,639 (1,181) 178,018 SECURITIES HELD-TO-MATURITY Corporate securities 7,500 77 (21) 7,556 Total securities held-to-maturity 7,500 77 (21) 7,556 Total securities $ 181,060 $ 5,716 $ (1,202) $ 185,574 December 31, 2019 Estimated Amortized Unrealized Unrealized Fair SECURITIES AVAILABLE-FOR-SALE Cost Gains Losses Values U.S. agency securities $ 8,986 $ 95 $ (15) $ 9,066 Corporate securities 10,525 52 (7) 10,570 Municipal bonds 20,516 604 — 21,120 Mortgage-backed securities 62,745 405 (300) 62,850 U.S. Small Business Administration securities 22,281 191 (21) 22,451 Total securities available-for-sale $ 125,053 $ 1,347 $ (343) $ 126,057 |
Schedule of Unrealized Loss on Investments | December 31, 2020 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized SECURITIES AVAILABLE-FOR-SALE Value Losses Value Losses Value Losses U.S. agency securities $ 1,986 $ (1) $ — $ — $ 1,986 $ (1) Corporate securities 7,059 (939) — — 7,059 (939) Municipal bonds 8,377 (150) — — 8,377 (150) Mortgage-backed securities 6,903 (65) 3,002 (11) 9,905 (76) U.S. Small Business Administration securities 2,314 (15) — — 2,314 (15) Total securities available-for-sale 26,639 (1,170) 3,002 (11) 29,641 (1,181) SECURITIES HELD-TO-MATURITY Corporate securities 4,979 (21) — — 4,979 (21) Total securities held-to-maturity 4,979 (21) — — 4,979 (21) Total $ 31,618 $ (1,191) $ 3,002 $ (11) $ 34,620 $ (1,202) December 31, 2019 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized SECURITIES AVAILABLE-FOR-SALE Value Losses Value Losses Value Losses U.S. agency securities $ 2,977 $ (15) $ — $ — $ 2,977 $ (15) Corporate securities 1,993 (7) — — 1,993 (7) Mortgage-backed securities 12,345 (154) 11,459 (146) 23,804 (300) U.S. Small Business Administration securities 4,395 (21) — — 4,395 (21) Total $ 21,710 $ (197) $ 11,459 $ (146) $ 33,169 $ (343) |
Schedule of Available for Sale Securities by Contractual Maturity | December 31, 2020 December 31, 2019 SECURITIES AVAILABLE-FOR-SALE Amortized Fair Amortized Fair U.S. agency securities Cost Value Cost Value Due after one year through five years $ 978 $ 1,060 $ 996 $ 1,036 Due after five years through ten years 1,000 1,036 3,997 4,027 Due after ten years 5,962 6,009 3,993 4,003 Subtotal 7,940 8,105 8,986 9,066 Corporate securities Due in one year or less 2,392 2,433 5,034 5,044 Due after one year through five years 3,493 3,491 3,491 3,532 Due after five years through ten years 4,000 3,676 2,000 1,994 Due after ten years 2,000 1,400 — — Subtotal 11,885 11,000 10,525 10,570 Municipal bonds Due in one year or less 101 101 — — Due after one year through five years 3,749 3,980 3,774 3,833 Due after five years through ten years 7,994 8,321 3,162 3,307 Due after ten years 57,728 59,455 13,580 13,980 Subtotal 69,572 71,857 20,516 21,120 Mortgage-backed securities Federal National Mortgage Association (“FNMA”) 47,675 50,005 42,131 42,333 Federal Home Loan Mortgage Corporation (“FHLMC”) 11,825 11,913 15,250 15,179 Government National Mortgage Association (“GNMA”) 6,222 6,269 5,364 5,338 Subtotal 65,722 68,187 62,745 62,850 U.S. Small Business Administration securities Due after one year through five years 2,266 2,353 1,546 1,555 Due after five years through ten years 8,097 8,333 11,500 11,598 Due after ten years 8,078 8,183 9,235 9,298 Subtotal 18,441 18,869 22,281 22,451 Total securities available-for-sale 173,560 178,018 125,053 126,057 SECURITIES HELD-TO-MATURITY Corporate securities Due after five years through ten years 7,500 7,556 — — Total securities held-to-maturity 7,500 7,556 — — Total securities $ 181,060 $ 185,574 $ 125,053 $ 126,057 |
Schedule of Realized Gain (Loss) | December 31, 2020 Proceeds Gross Gains Gross Losses Securities available-for-sale $ 12,214 $ 300 $ — December 31, 2019 Proceeds Gross Gains Gross Losses Securities available-for-sale $ 10,554 $ 91 $ (59) |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance For Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | December 31, December 31, REAL ESTATE LOANS 2020 2019 Commercial $ 222,719 $ 210,749 Construction and development 216,975 179,654 Home equity 43,093 38,167 One-to-four-family (excludes loans held for sale) 311,093 261,539 Multi-family 131,601 133,931 Total real estate loans 925,481 824,040 CONSUMER LOANS Indirect home improvement 286,020 254,691 Marine 85,740 67,179 Other consumer 3,418 4,340 Total consumer loans 375,178 326,210 COMMERCIAL BUSINESS LOANS Commercial and industrial 224,476 140,531 Warehouse lending 49,092 61,112 Total commercial business loans 273,568 201,643 Total loans receivable, gross 1,574,227 1,351,893 Allowance for loan losses (26,172) (13,229) Deferred costs and fees, net (4,017) (3,273) Premiums on purchased loans, net 943 955 Total loans receivable, net $ 1,544,981 $ 1,336,346 |
Allowance for Credit Losses on Financing Receivables | At or For the Year Ended December 31, 2020 Commercial ALLOWANCE FOR LOAN LOSSES Real Estate Consumer Business Unallocated Total Beginning balance $ 6,206 $ 3,766 $ 3,254 $ 3 $ 13,229 Provision for loan losses 7,622 3,372 1,354 688 13,036 Charge-offs — (1,101) (22) — (1,123) Recoveries 18 659 353 — 1,030 Net recoveries (charge-offs) 18 (442) 331 — (93) Ending balance $ 13,846 $ 6,696 $ 4,939 $ 691 $ 26,172 Period end amount allocated to: Loans individually evaluated for impairment $ 15 $ 305 $ 990 $ — $ 1,310 Loans collectively evaluated for impairment 13,831 6,391 3,949 691 24,862 Ending balance $ 13,846 $ 6,696 $ 4,939 $ 691 $ 26,172 LOANS RECEIVABLE Loans individually evaluated for impairment $ 1,280 $ 871 $ 5,610 $ — $ 7,761 Loans collectively evaluated for impairment 924,201 374,307 267,958 — 1,566,466 Ending balance $ 925,481 $ 375,178 $ 273,568 $ — $ 1,574,227 At or For the Year Ended December 31, 2019 Commercial ALLOWANCE FOR LOAN LOSSES Real Estate Consumer Business Unallocated Total Beginning balance $ 5,761 $ 3,351 $ 3,191 $ 46 $ 12,349 Provision (recapture) for loan losses 439 838 1,646 (43) 2,880 Charge-offs (5) (1,040) (1,583) — (2,628) Recoveries 11 617 — — 628 Net recoveries (charge-offs) 6 (423) (1,583) — (2,000) Ending balance $ 6,206 $ 3,766 $ 3,254 $ 3 $ 13,229 Period end amount allocated to: Loans individually evaluated for impairment $ 15 $ 167 $ — $ — $ 182 Loans collectively evaluated for impairment 6,191 3,599 3,254 3 13,047 Ending balance $ 6,206 $ 3,766 $ 3,254 $ 3 $ 13,229 LOANS RECEIVABLE Loans individually evaluated for impairment $ 2,635 $ 493 $ — $ — $ 3,128 Loans collectively evaluated for impairment 821,405 325,717 201,643 — 1,348,765 Ending balance $ 824,040 $ 326,210 $ 201,643 $ — $ 1,351,893 |
Past Due Financing Receivables | December 31, 2020 30-59 60-89 Days Days 90 Days Total Total Past Past or More Past Loans Non- REAL ESTATE LOANS Due Due Past Due Due Current Receivable Accrual Commercial $ — $ — $ — $ — $ 222,719 $ 222,719 $ — Construction and development 1,850 — — 1,850 215,125 216,975 — Home equity 127 137 219 483 42,610 43,093 636 One-to-four-family 389 404 512 1,305 309,788 311,093 644 Multi-family — — — — 131,601 131,601 — Total real estate loans 2,366 541 731 3,638 921,843 925,481 1,280 CONSUMER LOANS Indirect home improvement 683 331 325 1,339 284,681 286,020 826 Marine 28 77 22 127 85,613 85,740 44 Other consumer 73 22 — 95 3,323 3,418 1 Total consumer loans 784 430 347 1,561 373,617 375,178 871 COMMERCIAL BUSINESS LOANS Commercial and industrial — 1,204 — 1,204 223,272 224,476 5,610 Warehouse lending — — — — 49,092 49,092 — Total commercial business loans — 1,204 — 1,204 272,364 273,568 5,610 Total loans $ 3,150 $ 2,175 $ 1,078 $ 6,403 $ 1,567,824 $ 1,574,227 $ 7,761 December 31, 2019 30-59 60-89 Days Days 90 Days Total Total Past Past or More Past Loans Non- REAL ESTATE LOANS Due Due Past Due Due Current Receivable Accrual Commercial $ — $ — $ — $ — $ 210,749 $ 210,749 $ 1,086 Construction and development 533 — — 533 179,121 179,654 — Home equity 109 — 185 294 37,873 38,167 190 One-to-four-family 894 114 1,150 2,158 259,381 261,539 1,264 Multi-family — — — — 133,931 133,931 — Total real estate loans 1,536 114 1,335 2,985 821,055 824,040 2,540 CONSUMER LOANS Indirect home improvement 692 227 147 1,066 253,625 254,691 468 Marine 15 — — 15 67,164 67,179 — Other consumer 71 2 20 93 4,247 4,340 25 Total consumer loans 778 229 167 1,174 325,036 326,210 493 COMMERCIAL BUSINESS LOANS Commercial and industrial — — — — 140,531 140,531 — Warehouse lending — — — — 61,112 61,112 — Total commercial business loans — — — — 201,643 201,643 — Total loans $ 2,314 $ 343 $ 1,502 $ 4,159 $ 1,347,734 $ 1,351,893 $ 3,033 |
Impaired Financing Receivables | December 31, 2020 Unpaid WITH NO RELATED ALLOWANCE RECORDED Principal Recorded Related Real estate loans: Balance Investment Allowance Home equity $ 687 $ 636 $ — One-to-four-family 645 584 — Commercial business loans: Commercial and industrial 1,203 1,203 — 2,535 2,423 — WITH RELATED ALLOWANCE RECORDED Real estate loans: One-to-four-family 61 60 15 Consumer loans: Indirect 826 826 289 Marine 44 44 15 Other consumer 1 1 1 Commercial business loans: Commercial and industrial 4,407 4,407 990 5,339 5,338 1,310 Total $ 7,874 $ 7,761 $ 1,310 December 31, 2019 Unpaid WITH NO RELATED ALLOWANCE RECORDED Principal Recorded Related Real estate loans: Balance Investment Allowance Commercial $ 1,097 $ 1,086 $ — Home equity 278 225 — One-to-four-family 1,293 1,264 — Consumer loans Other consumer 17 17 — 2,685 2,592 — WITH RELATED ALLOWANCE RECORDED Real estate loans: One-to-four-family 61 60 15 Consumer loans: Indirect 468 468 164 Other consumer 8 8 3 537 536 182 Total $ 3,222 $ 3,128 $ 182 At or For the Year Ended December 31, 2020 December 31, 2019 WITH NO RELATED ALLOWANCE RECORDED Average Recorded Interest Income Average Recorded Interest Income Real estate loans: Investment Recognized Investment Recognized Commercial $ 996 $ — $ 90 $ 56 Home equity 485 25 206 3 One-to-four-family 954 17 1,500 34 Consumer loans: Other consumer 3 — 4 2 Commercial business loans: Commercial and industrial 100 37 180 — 2,538 79 1,980 95 WITH AN ALLOWANCE RECORDED Real estate loans: One-to-four-family 60 — 5 5 Consumer loans: Indirect 675 60 463 42 Marine 40 3 13 — Other consumer 1 — 5 1 Commercial business loans: Commercial and industrial 2,531 162 96 — 3,307 225 582 48 Total $ 5,845 $ 304 $ 2,562 $ 143 |
Financing Receivable Credit Quality Indicators | December 31, 2020 Special Pass Watch Mention Substandard Doubtful Loss REAL ESTATE LOANS (1 - 5) (6) (7) (8) (9) (10) Total Commercial $ 157,932 $ 60,834 $ 3,013 $ 940 $ — $ — $ 222,719 Construction and development 212,209 2,917 1,849 — — — 216,975 Home equity 42,457 — — 636 — — 43,093 One-to-four-family 303,610 162 187 7,134 — — 311,093 Multi-family 131,601 — — — — — 131,601 Total real estate loans 847,809 63,913 5,049 8,710 — — 925,481 CONSUMER LOANS Indirect home improvement 285,194 — — 826 — — 286,020 Marine 85,696 — — 44 — — 85,740 Other consumer 3,417 — — 1 — — 3,418 Total consumer loans 374,307 — — 871 — — 375,178 COMMERCIAL BUSINESS LOANS Commercial and industrial 190,392 23,945 2,073 8,066 — — 224,476 Warehouse lending 49,092 — — — — — 49,092 Total commercial business loans 239,484 23,945 2,073 8,066 — — 273,568 Total loans receivable, gross $ 1,461,600 $ 87,858 $ 7,122 $ 17,647 $ — $ — $ 1,574,227 December 31, 2019 Special Pass Watch Mention Substandard Doubtful Loss REAL ESTATE LOANS (1 - 5) (6) (7) (8) (9) (10) Total Commercial $ 203,703 $ 2,274 $ 3,686 $ 1,086 $ — $ — $ 210,749 Construction and development 177,109 2,545 — — — — 179,654 Home equity 37,942 — 35 190 — — 38,167 One-to-four-family 259,580 635 60 1,264 — — 261,539 Multi-family 127,792 6,139 — — — — 133,931 Total real estate loans 806,126 11,593 3,781 2,540 — — 824,040 CONSUMER LOANS Indirect home improvement 254,223 — — 468 — — 254,691 Marine 67,179 — — — — — 67,179 Other consumer 4,315 — — 25 — — 4,340 Total consumer loans 325,717 — — 493 — — 326,210 COMMERCIAL BUSINESS LOANS Commercial and industrial 125,025 10,435 1,442 3,629 — — 140,531 Warehouse lending 61,112 — — — — — 61,112 Total commercial business loans 186,137 10,435 1,442 3,629 — — 201,643 Total loans receivable, gross $ 1,317,980 $ 22,028 $ 5,223 $ 6,662 $ — $ — $ 1,351,893 |
Schedule of Related Party Loans | At December 31, 2020 2019 Beginning balance $ 3,249 $ 3,325 Additions 581 — Repayments (33) (76) Ending balance $ 3,797 $ 3,249 |
Servicing Rights (Tables)
Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Summary of servicing rights activity | At or For the Year Ended December 31, 2020 2019 Beginning balance $ 11,560 $ 10,429 Additions 11,139 5,400 Servicing rights amortized (8,135) (4,177) Impairment of servicing rights (1,969) (92) Ending balance $ 12,595 $ 11,560 |
Key economic assumptions and the sensitivity of the current fair value for single family mortgage servicing rights | December 31, 2020 December 31, 2019 Aggregate portfolio principal balance (1) $ 2,133,473 $ 1,463,732 Weighted average rate of note 3.5 % 4.2 % At December 31, 2020 Base 0.5% Adverse Rate Change 1.0% Adverse Rate Change Conditional prepayment rate 32.6 % 40.6 % 59.6 % Fair value MSR $ 12,833 $ 10,922 $ 8,286 Percentage of MSR 0.6 % 0.5 % 0.4 % Discount rate 9.1 % 9.6 % 10.1 % Fair value MSR $ 12,833 $ 12,696 $ 12,562 Percentage of MSR 0.6 % 0.6 % 0.6 % At December 31, 2019 Base 0.5% Adverse Rate Change 1.0% Adverse Rate Change Conditional prepayment rate 17.1 % 24.6 % 32.5 % Fair value MSR $ 13,255 $ 10,582 $ 8,674 Percentage of MSR 0.9 % 0.7 % 0.6 % Discount rate 9.7 % 10.2 % 10.7 % Fair value MSR $ 13,255 $ 13,037 $ 12,826 Percentage of MSR 0.9 % 0.9 % 0.9 % _______________________________ (1) Excludes nonperforming serviced loans in forbearance. |
Mortgage servicing rights | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Valuation assumptions | At December 31, At December 31, Key assumptions: 2020 2019 Weighted average discount rate 9.1 % 9.7 % Conditional prepayment rate (“CPR”) 32.6 % 17.1 % Weighted average life in years 3.0 5.1 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | 2020 2019 Land $ 5,227 $ 5,227 Buildings 16,769 16,769 Furniture, fixtures, and equipment 14,724 13,562 Leasehold improvements 2,859 2,848 Building improvements 6,830 6,572 Projects in process 355 407 Subtotal 46,764 45,385 Less accumulated depreciation and amortization (19,421) (16,615) Total $ 27,343 $ 28,770 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Summary of lease cost | Year Ended Year Ended Lease cost: December 31, 2020 December 31, 2019 Operating lease cost $ 1,393 $ 1,285 Short-term lease cost 11 166 Total lease cost $ 1,404 $ 1,451 |
Supplemental information related to operating leases | At or For the At or For the Cash paid for amounts included in the Year Ended Year Ended measurement of lease liabilities: December 31, 2020 December 31, 2019 Operating cash flows from operating leases $ 1,365 $ 1,331 Weighted average remaining lease term- operating leases 5.4 years 5.3 years Weighted average discount rate- operating leases 2.48 % 3.00 % |
Summary of maturities of operating lease liabilities | 2021 $ 1,319 2022 1,222 2023 839 2024 787 2025 478 Thereafter 949 Total lease payments 5,594 Less imputed interest (418) Total $ 5,176 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift [Abstract] | |
Schedule of Other Real Estate Owned | At or For the Year Ended December 31, 2020 2019 Beginning balance $ 168 $ 689 Additions — 242 Gross proceeds from sale of OREO (76) (901) (Loss) gain on sale of OREO (2) 138 Ending balance $ 90 $ 168 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift [Abstract] | |
Schedule of Deposit Liabilities | December 31, December 31, 2020 2019 Noninterest-bearing checking $ 348,421 $ 260,131 Interest-bearing checking 226,282 177,972 Savings 152,842 118,845 Money market 429,548 270,489 Certificates of deposit less than $100,000 299,157 277,988 Certificates of deposit of $100,000 through $250,000 135,901 181,402 Certificates of deposit of $250,000 and over 67,488 92,110 Escrow accounts related to mortgages serviced 14,432 13,471 Total $ 1,674,071 $ 1,392,408 |
Schedule of Maturities of Time Deposits for Future Periods | At December 31, 2020 Maturing in 2021 $ 340,867 Maturing in 2022 88,529 Maturing in 2023 19,991 Maturing in 2024 20,131 Maturing in 2025 33,027 Thereafter 1 Total $ 502,546 |
Schedule of Interest Expense by Deposit Category | Year Ended December 31, 2020 2019 Interest-bearing checking $ 388 $ 1,414 Savings and money market 2,458 3,098 Certificates of deposit 9,134 11,650 Total $ 11,980 $ 16,162 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Advances on Borrowing Line | 2020 2019 Federal Home Loan Bank $ 102,528 $ 84,864 Paycheck Protection Program Liquidity Facility 63,281 — Total $ 165,809 $ 84,864 |
Debt with Maximum and Average Balances | 2020 2019 Maximum balance: Federal Home Loan Bank advances and Fed Funds $ 159,114 $ 186,401 Federal Reserve Bank $ 40,000 $ 5,000 Fed Funds lines of credit $ 865 $ 5,000 Subordinated note $ 10,000 $ 10,000 Paycheck Protection Program Liquidity Facility $ 74,112 $ — Average balance: Federal Home Loan Bank advances and Fed Funds $ 99,773 $ 93,653 Federal Reserve Bank $ 1,096 $ 167 Fed Funds lines of credit $ 3 $ 318 Subordinated note $ 10,000 $ 10,000 Paycheck Protection Program Liquidity Facility $ 46,965 $ — Weighted average interest rates Federal Home Loan Bank advances and Fed Funds 1.80 % 2.61 % Fed Funds 0.25 % 2.96 % Fed Funds lines of credit 0.36 % 2.09 % Subordinated note 6.50 % 6.50 % Paycheck Protection Program Liquidity Facility 0.35 % — % |
Schedule of Federal Home Loan Bank Advances Maturities Summary Due | Interest Years Ending December 31, Balances Rates 2021 $ 75,000 1.60 % 2022 13,633 2.03 % 2023 13,895 1.77 % Total $ 102,528 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Shares Under ESOP | Balances Balances at December 31, 2020 at December 31, 2019 Allocated shares 213,744 189,511 Committed to be released shares — — Unallocated shares 25,921 51,842 Total ESOP shares 239,665 241,353 Fair value of unallocated shares (in thousands) $ 1,307 $ 3,006 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
Schedule of Components of Income Tax Expense (Benefit) | 2020 2019 Provision for income taxes Current $ 12,976 $ 4,425 Deferred (2,390) 988 Total provision for income taxes $ 10,586 $ 5,413 |
Schedule of Effective Income Tax Rate Reconciliation | 2020 2019 Amount Rate Amount Rate Income tax provision at statutory rate $ 10,469 21.0 % $ 5,907 21.0 % Tax exempt income (292) (0.6) (225) (0.8) Nondeductible items resulting in increase in tax 57 0.1 129 0.5 Increase (decrease) in tax resulting from other items 175 0.4 (78) (0.3) Equity compensation (46) (0.1) (691) (2.5) Executive compensation 8 — 112 0.4 ESOP 215 0.4 259 0.9 Total $ 10,586 21.2 % $ 5,413 19.2 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred Tax Assets 2020 2019 Net operating loss carryforward $ 527 $ 864 Allowance for loan losses 5,775 2,844 Purchase accounting adjustments — 466 Other real estate owned 126 126 Nonaccrued loan interest 6 13 Restricted stock awards 97 68 Non-qualified stock options 251 185 Interest rate swaps designated as cash flow hedge 265 — Lease liability 1,113 1,121 Accrued compensation 430 — Other 224 351 Total deferred tax assets 8,814 6,038 Deferred Tax Liabilities Loan origination costs (2,134) (1,341) Servicing rights (2,708) (2,525) Stock dividend - FHLB stock (55) (59) Property, plant, and equipment (1,097) (1,362) Purchase accounting adjustments (830) (1,404) Securities available-for-sale (958) (216) Lease right-of-use assets (1,090) (1,078) Other — (24) Total deferred tax liabilities (8,872) (8,009) Net deferred tax liabilities $ (58) $ (1,971) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments to Extend Credit | COMMITMENTS TO EXTEND CREDIT December 31, December 31, REAL ESTATE LOANS 2020 2019 Commercial $ 1,293 $ 247 Construction and development 143,666 95,031 One-to-four-family (includes locks for saleable loans) 147,712 39,697 Home equity 52,457 47,880 Multi-family 658 622 Total real estate loans 345,786 183,477 CONSUMER LOANS 23,365 22,176 COMMERCIAL BUSINESS LOANS Commercial and industrial 106,171 72,731 Warehouse lending 52,909 33,888 Total commercial business loans 159,080 106,619 Total commitments to extend credit $ 528,231 $ 312,272 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Financial Assets At December 31, 2020 Securities available-for-sale: Level 1 Level 2 Level 3 Total U.S. agency securities $ — $ 8,105 $ — $ 8,105 Corporate securities — 10,016 984 11,000 Municipal bonds — 71,730 127 71,857 Mortgage-backed securities — 68,187 — 68,187 U.S. Small Business Administration securities — 18,869 — 18,869 Mortgage loans held for sale, at fair value — 166,448 — 166,448 Derivatives: Interest rate swaps — 21 — 21 Interest rate lock commitments with customers — — 4,024 4,024 Total assets measured at fair value $ — $ 343,376 $ 5,135 $ 348,511 Financial Liabilities Derivatives: Mandatory and best effort forward commitments with investors $ — $ — $ (67) $ (67) Forward TBA mortgage-backed securities — (1,602) — (1,602) Interest rate swaps — (1,252) — (1,252) Total liabilities measured at fair value $ — $ (2,854) $ (67) $ (2,921) Financial Assets At December 31, 2019 Securities available-for-sale: Level 1 Level 2 Level 3 Total U.S. agency securities $ — $ 9,066 $ — $ 9,066 Corporate securities — 9,546 1,024 10,570 Municipal bonds — 20,982 138 21,120 Mortgage-backed securities — 62,850 — 62,850 U.S. Small Business Administration securities — 22,451 — 22,451 Mortgage loans held for sale, at fair value — 69,699 — 69,699 Derivatives: Interest rate lock commitments with customers — — 557 557 Total assets measured at fair value $ — $ 194,594 $ 1,719 $ 196,313 Financial Liabilities Derivatives: Mandatory and best effort forward commitments with investors $ — $ — $ (195) $ (195) Forward TBA mortgage-backed securities — (8) — (8) Total liabilities measured at fair value $ — $ (8) $ (195) $ (203) |
Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets | December 31, 2020 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 7,761 $ 7,761 OREO — — 90 90 Servicing rights — — 12,833 12,833 December 31, 2019 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 3,128 $ 3,128 OREO — — 168 168 Servicing rights — — 13,255 13,255 |
Fair value reconciliation - Level 3 on recurring basis | Purchases Net change in Net change in Beginning and Sales and Transfers Ending fair value for fair value for 2020 Balance Issuances Settlements In Balance gains/(losses) (1) gains/(losses) (2) Interest rate lock commitments with customers $ 557 $ 53,281 $ (49,814) $ — $ 4,024 $ 3,467 $ — Individual forward sale commitments with investors (195) (4,857) 4,985 — (67) 128 — Securities available-for-sale, at fair value 1,162 — (51) — 1,111 — (40) 2019 Interest rate lock commitments with customers $ 503 $ 11,063 $ (11,009) $ — $ 557 $ 54 $ — Individual forward sale commitments with investors (34) (1,444) 1,283 — (195) (161) — Securities available-for-sale, at fair value — — — 1,162 1,162 — — _____________________________ (1) Relating to items held at end of period included in income. (2) Relating to items held at end of period included in other comprehensive income. |
Fair Value, by Balance Sheet Grouping | December 31, December 31, 2020 2019 Financial Assets Carrying Fair Carrying Fair Level 1 inputs: Amount Value Amount Value Cash and cash equivalents $ 91,576 $ 91,576 $ 45,778 $ 45,778 Certificates of deposit at other financial institutions 12,278 12,278 20,902 20,902 Level 2 inputs: Securities available-for-sale, at fair value 176,907 176,907 124,895 124,895 Securities held-to-maturity 7,500 7,556 — — Loans held for sale, at fair value 166,448 166,448 69,699 69,699 FHLB stock, at cost 7,439 7,439 8,045 8,045 Interest rate swaps 21 21 — — Accrued interest receivable 7,030 7,030 5,908 5,908 Level 3 inputs: Securities available-for-sale, at fair value 1,111 1,111 1,162 1,162 Loans receivable, gross 1,574,227 1,580,360 1,351,893 1,377,408 Servicing rights, held at lower of cost or fair value 12,595 12,833 11,560 13,255 Fair value interest rate locks with customers 4,024 4,024 557 557 Financial Liabilities Level 2 inputs: Deposits 1,674,071 1,674,328 1,392,408 1,385,658 Borrowings 165,809 167,680 84,864 85,268 Subordinated note 10,000 11,083 9,885 10,599 Accrued interest payable 406 406 273 273 Interest rate swaps 1,252 1,252 — — Forward TBA mortgage-backed securities 1,602 1,602 8 8 Level 3 inputs: Mandatory and best effort forward commitments with investors 67 67 195 195 |
Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Valuation assumptions | Level 3 Significant Weighted Average Fair Value Valuation Unobservable December 31, December 31, Instruments Techniques Inputs Range 2020 2019 RECURRING Interest rate lock commitments with customers Quoted market prices Pull-through expectations 80% - 99% 91.6 % 94.5 % Individual forward sale commitments with investors Quoted market prices Pull-through expectations 80% - 99% 91.6 % 94.5 % Corporate securities Discounted cash flows Discount rate 2.5% 2.5 % 2.1 % Municipal bonds Discounted cash flows Discount rate 6.4% 6.4 % 3.4 % NONRECURRING Impaired loans Fair value of underlying collateral Discount applied to the obtained appraisal 10.0% 10.0 % 10.0 % OREO Fair value of collateral Discount applied to the obtained appraisal 10.0% 10.0 % 10.0 % Servicing rights Industry sources Pre-payment speeds 0% - 50% 32.6 % 17.1 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | At or For the Year Ended December 31, Numerator (in thousands): 2020 2019 Net income $ 39,264 $ 22,717 Dividends and undistributed earnings allocated to participating securities (192) (73) Net income available to common shareholders $ 39,072 $ 22,644 Denominator (shown as actual): Basic weighted average common shares outstanding 4,273,350 4,414,032 Dilutive shares 81,019 108,992 Diluted weighted average common shares outstanding 4,354,369 4,523,024 Basic earnings per share $ 9.14 $ 5.13 Diluted earnings per share $ 8.97 $ 5.01 Potentially dilutive weighted average share options that were not included in the computation of diluted earnings per share because to do so would be anti-dilutive 66,619 36,337 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | December 31, 2020 Fair Value Cash flow hedges: Notional Asset Liability Interest rate swaps $ 90,000 $ 21 $ 1,252 Non-hedging derivatives: Fallout adjusted interest rate lock commitments with customers 136,739 4,024 — Mandatory and best effort forward commitments with investors 25,027 — 67 Forward TBA mortgage-backed securities 232,000 — 1,602 December 31, 2019 Fair Value Non-hedging derivatives: Notional Asset Liability Fallout adjusted interest rate lock commitments with customers $ 33,914 $ 557 $ — Mandatory and best effort forward commitments with investors 43,752 — 195 Forward TBA mortgage-backed securities 46,000 — 8 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of changes in accumulated other comprehensive income (loss) by component, net of tax | Unrealized Gains Gains and and Losses Losses on on Available Cash Flow for Sale Year Ended December 31, 2020 Hedges Securities Total Beginning balance $ — $ 788 $ 788 Other comprehensive (loss) income before reclassification, net of tax (1,122) 2,947 1,825 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 155 (235) (80) Net current period other comprehensive (loss) income (967) 2,712 1,745 Ending balance $ (967) $ 3,500 $ 2,533 Unrealized Gains Gains and and Losses Losses on on Available Cash Flow for Sale Year Ended December 31, 2019 Hedges Securities Total Beginning balance $ — $ (1,479) $ (1,479) Other comprehensive income before reclassification, net of tax — 2,292 2,292 Amounts reclassified from accumulated other comprehensive loss, net of tax — (25) (25) Net current period other comprehensive income — 2,267 2,267 Ending balance $ — $ 788 $ 788 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Awards | Year Ended December 31, Year Ended December 31, 2020 2019 Dividend yield 1.97% 1.23% Expected volatility, maximum 26.79% 18.90% Risk-free interest rate, maximum 0.42% 1.45% Expected term in years, maximum 6.5 6.5 Weighted-average grant date fair value per option granted $ 8.00 $ 8.80 |
Summary of Nonvested Awards | Weighted-Average Grant-Date Fair Value Nonvested Shares Shares Per Share Nonvested at January 1, 2020 40,215 $ 53.64 Granted 24,880 $ 42.70 Less vested 10,003 $ 53.67 Forfeited or expired — — Nonvested at December 31, 2020 55,092 $ 48.70 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | At or For the Year Ended December 31, 2020 Condensed income statement: Home Lending Commercial and Consumer Banking Total Net interest income (1) $ 5,123 $ 68,997 $ 74,120 Provision for loan losses (2,758) (10,278) (13,036) Noninterest income 44,808 10,551 55,359 Noninterest expense (17,351) (49,242) (66,593) Income before provision for income taxes 29,822 20,028 49,850 Provision for income taxes (6,333) (4,253) (10,586) Net income $ 23,489 $ 15,775 $ 39,264 Total assets $ 460,409 $ 1,652,832 $ 2,113,241 Total average assets for year ended $ 396,367 $ 1,543,681 $ 1,940,048 FTEs 152 354 506 At or For the Year Ended December 31, 2019 Condensed income statement: Home Lending Commercial and Consumer Banking Total Net interest income (1) $ 6,307 $ 64,001 $ 70,308 Provision for loan losses (433) (2,447) (2,880) Noninterest income 13,209 9,826 23,035 Noninterest expense (14,283) (48,050) (62,333) Income before provision for income taxes 4,800 23,330 28,130 Provision for income taxes (924) (4,489) (5,413) Net income $ 3,876 $ 18,841 $ 22,717 Total assets $ 312,404 $ 1,400,652 $ 1,713,056 Total average assets for year ended $ 272,901 $ 1,377,468 $ 1,650,369 FTEs 127 325 452 ___________________________ (1) Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to the other segment. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of assigned liabilities to fund segment assets. |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606 | (Dollars in thousands): At or For the Year Ended December 31, Noninterest income 2020 2019 In-scope of Topic 606: Debit card interchange fees $ 1,879 $ 1,848 Deposit service and account maintenance fees 786 1,065 Noninterest income (in-scope of Topic 606) 2,665 2,913 Noninterest income (out-of-scope of Topic 606) 52,694 20,122 Total noninterest income $ 55,359 $ 23,035 |
Goodwill and other Intangible_2
Goodwill and other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in other intangible assets | Other Intangible Assets Accumulated Gross CDI Amortization Net CDI Balance, December 31, 2018 $ 7,490 $ (1,273) $ 6,217 Amortization — (760) (760) Balance, December 31, 2019 7,490 (2,033) 5,457 Amortization — (706) (706) Balance, December 31, 2020 $ 7,490 $ (2,739) $ 4,751 |
Schedule of Amortization Expense | 2021 $ 691 2022 691 2023 691 2024 621 2025 525 Thereafter 1,532 Total $ 4,751 |
Parent Company Only Financial_2
Parent Company Only Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | Condensed Balance Sheets December 31, Assets 2020 2019 Cash and due from banks $ 14,531 $ 5,568 Investment in subsidiary 225,484 204,570 Other assets 202 172 Total assets $ 240,217 $ 210,310 Liabilities and Stockholders' Equity Subordinated note, net 10,000 9,885 Other liabilities 210 183 Total liabilities 10,210 10,068 Stockholders' equity 230,007 200,242 Total liabilities and stockholders' equity $ 240,217 $ 210,310 |
Schedule of Condensed Statements of Income | Condensed Statements of Income Year Ended December 31, 2020 2019 Interest from subsidiary $ — $ 2 Interest expense on subordinated note (776) (679) Dividends received from subsidiary 20,862 3,935 Other expenses (195) (142) Income before income tax benefit and equity in undistributed net income of subsidiary 19,891 3,116 Income tax benefit 204 172 Equity in undistributed earnings of subsidiary 19,169 19,429 Net income $ 39,264 $ 22,717 |
Schedule of Condensed Statements of Cash Flows | Condensed Statements of Cash Flows Year Ended December 31, 2020 2019 Cash flows from operating activities: Net income $ 39,264 $ 22,717 Equity in undistributed net income of subsidiary (19,169) (19,429) Amortization 115 20 ESOP compensation expense for allocated shares 1,025 1,231 Share-based compensation expense related to stock options and restricted stock 1,020 869 Other assets (30) 3 Other liabilities 27 11 Net cash from operating activities 22,252 5,422 Cash flows from investing activities: Net proceeds from ESOP 282 275 Net cash from investing activities 282 275 Cash flows used by financing activities: (Disbursements) proceeds from stock options exercised (161) 705 Common stock repurchased for employee/director taxes paid on restricted stock awards (34) (204) Common stock repurchased (9,802) (4,800) Dividends paid on common stock (3,574) (2,856) Net cash used by financing activities (13,571) (7,155) Net increase (decrease) in cash and cash equivalents 8,963 (1,458) Cash and cash equivalents, beginning of year 5,568 7,026 Cash and cash equivalents, end of year $ 14,531 $ 5,568 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)itemsegmentOffice | Dec. 31, 2019USD ($) | Jan. 22, 2016item | |
Schedule of Accounting Policies [Line Items] | |||
Number of operating segments | segment | 2 | ||
Cash and due from banks and interest-bearing deposits in excess of FDIC insured limits | $ 17,000,000 | $ 8,600,000 | |
FHLB investment requirement, capital stock amount | $ 2,100,000 | ||
FHLB investment requirement, percent of advances from FHLB | 4.00% | ||
Federal Home Loan Bank Stock | $ 7,439,000 | 8,045,000 | |
Impairment of FHLB stock | $ 0 | 0 | |
Maximum term to qualify as cash and cash equivalents | 90 days | ||
Minimum term for accrual of interest on loans to be discontinued | 90 days | ||
Minimum term delinquent loan performs under contract terms and returned to accrual status | 6 months | ||
Federal Reserve Bank, Reserve Requirements, Cash and Federal Reserve Bank Deposits | $ 0 | 0 | |
Marketing and advertising | 530,000 | 678,000 | |
Goodwill, Impairment Loss | $ 0 | $ 0 | |
Building and building improvements | Minimum | |||
Schedule of Accounting Policies [Line Items] | |||
Useful life | 25 years | ||
Building and building improvements | Maximum | |||
Schedule of Accounting Policies [Line Items] | |||
Useful life | 40 years | ||
Furniture, fixtures and equipment | Minimum | |||
Schedule of Accounting Policies [Line Items] | |||
Useful life | 3 years | ||
Furniture, fixtures and equipment | Maximum | |||
Schedule of Accounting Policies [Line Items] | |||
Useful life | 10 years | ||
Puget Sound [Member] | |||
Schedule of Accounting Policies [Line Items] | |||
Number of bank branches | item | 21 | ||
Number of administrative offices that accept deposits | Office | 1 | ||
Number of loan production offices | item | 9 | ||
Tri-Cities, Washington [Member] | |||
Schedule of Accounting Policies [Line Items] | |||
Number of loan production offices | item | 1 | ||
Anchor Bancorp | |||
Schedule of Accounting Policies [Line Items] | |||
Minimum term for accrual of interest on loans to be discontinued | 90 days | ||
Bank of America | |||
Schedule of Accounting Policies [Line Items] | |||
Number of bank branches | item | 4 | ||
Commercial Real Estate | Covid 19 [Member] | |||
Schedule of Accounting Policies [Line Items] | |||
Loans restructured or modified | $ 31,200,000 | ||
COMMERCIAL BUSINESS LOANS. | Covid 19 [Member] | |||
Schedule of Accounting Policies [Line Items] | |||
Loans restructured or modified | 12,800,000 | ||
One-to-four-family | Covid 19 [Member] | |||
Schedule of Accounting Policies [Line Items] | |||
Loans restructured or modified | 308,000 | ||
CONSUMER LOANS. | Covid 19 [Member] | |||
Schedule of Accounting Policies [Line Items] | |||
Loans restructured or modified | $ 392,000 |
Investments - Available-for-sal
Investments - Available-for-sale securities reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
SECURITIES AVAILABLE-FOR-SALE | ||
Amortized cost | $ 173,560 | $ 125,053 |
Unrealized gains | 5,639 | 1,347 |
Unrealized losses | (1,181) | (343) |
Securities available-for-sale, at fair value | 178,018 | 126,057 |
SECURITIES HELD-TO-MATURITY | ||
Amortized cost | 7,500 | 0 |
Unrealized gains | 77 | |
Unrealized losses | (21) | |
Securities held-to-maturity, at fair value | 7,556 | |
Total securities | ||
Amortized cost | 181,060 | |
Unrealized gains | 5,716 | |
Unrealized losses | (1,202) | |
Total securities, at fair value | 185,574 | 126,057 |
U.S. agency securities | ||
SECURITIES AVAILABLE-FOR-SALE | ||
Amortized cost | 7,940 | 8,986 |
Unrealized gains | 166 | 95 |
Unrealized losses | (1) | (15) |
Securities available-for-sale, at fair value | 8,105 | 9,066 |
Corporate securities | ||
SECURITIES AVAILABLE-FOR-SALE | ||
Amortized cost | 11,885 | 10,525 |
Unrealized gains | 54 | 52 |
Unrealized losses | (939) | (7) |
Securities available-for-sale, at fair value | 11,000 | 10,570 |
SECURITIES HELD-TO-MATURITY | ||
Amortized cost | 7,500 | |
Unrealized gains | 77 | |
Unrealized losses | (21) | |
Securities held-to-maturity, at fair value | 7,556 | |
Municipal bonds | ||
SECURITIES AVAILABLE-FOR-SALE | ||
Amortized cost | 69,572 | 20,516 |
Unrealized gains | 2,435 | 604 |
Unrealized losses | (150) | |
Securities available-for-sale, at fair value | 71,857 | 21,120 |
Mortgage-backed securities | ||
SECURITIES AVAILABLE-FOR-SALE | ||
Amortized cost | 65,722 | 62,745 |
Unrealized gains | 2,541 | 405 |
Unrealized losses | (76) | (300) |
Securities available-for-sale, at fair value | 68,187 | 62,850 |
U.S. Small Business Administration securities | ||
SECURITIES AVAILABLE-FOR-SALE | ||
Amortized cost | 18,441 | 22,281 |
Unrealized gains | 443 | 191 |
Unrealized losses | (15) | (21) |
Securities available-for-sale, at fair value | $ 18,869 | $ 22,451 |
Investments - Narrative (Detail
Investments - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)securityitem | Dec. 31, 2019USD ($)item | |
Investments, Debt and Equity Securities [Abstract] | ||
Investments with unrealized losses of less than one year | item | 21 | 13 |
Investments with unrealized losses of more than one year | item | 1 | 10 |
Number of securities pledged and held at FHLB | 7 | 7 |
Pledged securities for FHLB | $ 8,800,000 | $ 7,400,000 |
Public deposits | 13,200,000 | 10,300,000 |
Collateral requirement | 5,300,000 | 4,000,000 |
Other than temporary impairment losses, investments | $ 0 | $ 0 |
Investments - Investments with
Investments - Investments with Unrealized Losses Policy (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value | ||
Securities available-for-sale, Unrealized loss position, Fair Value, Less than 12 Months | $ 26,639 | $ 21,710 |
Securities available-for-sale, Unrealized loss position, Fair Value, 12 Months or Longer | 3,002 | 11,459 |
Securities available-for-sale, Unrealized loss position, Fair Value | 29,641 | 33,169 |
Securities held-to-maturity, Unrealized loss position, Fair Value, Less than 12 Months | 4,979 | |
Securities held-to-maturity, Unrealized loss position, Fair Value | 4,979 | |
Total securities, Unrealized loss position, Fair Value, Less than 12 Months | 31,618 | |
Total securities, Unrealized loss position, Fair Value, 12 Months or Longer | 3,002 | |
Total securities, Unrealized loss position, Fair Value | 34,620 | |
Unrealized Losses | ||
Securities available-for-sale, Unrealized loss position, Unrealized losses, Less than 12 Months | (1,170) | (197) |
Securities available-for-sale, Unrealized loss position, Unrealized losses, 12 Months or Longer | (11) | (146) |
Securities available-for-sale, Unrealized losses | (1,181) | (343) |
Securities held-to-maturity, Unrealized loss position, Unrealized losses, Less than 12 Months | (21) | |
Securities held-to-maturity, Unrealized losses | (21) | |
Total securities, Unrealized loss position, Unrealized losses, Less than 12 Months | (1,191) | |
Total securities, Unrealized loss position, Unrealized losses, 12 Months or Longer | (11) | |
Total securities, Unrealized losses | (1,202) | |
U.S. agency securities | ||
Fair Value | ||
Securities available-for-sale, Unrealized loss position, Fair Value, Less than 12 Months | 1,986 | 2,977 |
Securities available-for-sale, Unrealized loss position, Fair Value, 12 Months or Longer | 0 | |
Securities available-for-sale, Unrealized loss position, Fair Value | 1,986 | 2,977 |
Unrealized Losses | ||
Securities available-for-sale, Unrealized loss position, Unrealized losses, Less than 12 Months | (1) | (15) |
Securities available-for-sale, Unrealized loss position, Unrealized losses, 12 Months or Longer | 0 | |
Securities available-for-sale, Unrealized losses | (1) | (15) |
Corporate securities | ||
Fair Value | ||
Securities available-for-sale, Unrealized loss position, Fair Value, Less than 12 Months | 7,059 | 1,993 |
Securities available-for-sale, Unrealized loss position, Fair Value | 7,059 | 1,993 |
Securities held-to-maturity, Unrealized loss position, Fair Value, Less than 12 Months | 4,979 | |
Securities held-to-maturity, Unrealized loss position, Fair Value | 4,979 | |
Unrealized Losses | ||
Securities available-for-sale, Unrealized loss position, Unrealized losses, Less than 12 Months | (939) | (7) |
Securities available-for-sale, Unrealized losses | (939) | (7) |
Securities held-to-maturity, Unrealized loss position, Unrealized losses, Less than 12 Months | (21) | |
Securities held-to-maturity, Unrealized losses | (21) | |
Municipal bonds | ||
Fair Value | ||
Securities available-for-sale, Unrealized loss position, Fair Value, Less than 12 Months | 8,377 | |
Securities available-for-sale, Unrealized loss position, Fair Value | 8,377 | |
Unrealized Losses | ||
Securities available-for-sale, Unrealized loss position, Unrealized losses, Less than 12 Months | (150) | |
Securities available-for-sale, Unrealized losses | (150) | |
Mortgage-backed securities | ||
Fair Value | ||
Securities available-for-sale, Unrealized loss position, Fair Value, Less than 12 Months | 6,903 | 12,345 |
Securities available-for-sale, Unrealized loss position, Fair Value, 12 Months or Longer | 3,002 | 11,459 |
Securities available-for-sale, Unrealized loss position, Fair Value | 9,905 | 23,804 |
Unrealized Losses | ||
Securities available-for-sale, Unrealized loss position, Unrealized losses, Less than 12 Months | (65) | (154) |
Securities available-for-sale, Unrealized loss position, Unrealized losses, 12 Months or Longer | (11) | (146) |
Securities available-for-sale, Unrealized losses | (76) | (300) |
U.S. Small Business Administration securities | ||
Fair Value | ||
Securities available-for-sale, Unrealized loss position, Fair Value, Less than 12 Months | 2,314 | 4,395 |
Securities available-for-sale, Unrealized loss position, Fair Value | 2,314 | 4,395 |
Unrealized Losses | ||
Securities available-for-sale, Unrealized loss position, Unrealized losses, Less than 12 Months | (15) | (21) |
Securities available-for-sale, Unrealized losses | $ (15) | $ (21) |
Investments - Available for Sal
Investments - Available for Sale Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Securities available-for-sale, Total | $ 173,560 | $ 125,053 |
Securities held-to-maturity, Total | 7,500 | |
Total securities | 181,060 | 125,053 |
Fair Value | ||
Securities available-for-sale, Total | 178,018 | 126,057 |
Securities held-to-maturity, Total | 7,556 | |
Total securities | 185,574 | 126,057 |
U.S. agency securities | ||
Amortized Cost | ||
Securities available-for-sale, Due after one year through five years | 978 | 996 |
Securities available-for-sale, Due after five years through ten years | 1,000 | 3,997 |
Securities available-for-sale, Due after ten years | 5,962 | 3,993 |
Securities available-for-sale, Subtotal | 7,940 | 8,986 |
Securities available-for-sale, Total | 7,940 | 8,986 |
Fair Value | ||
Securities available-for-sale, Due after one year through five years | 1,060 | 1,036 |
Securities available-for-sale, Due after five years through ten years | 1,036 | 4,027 |
Securities available-for-sale, Due after ten years | 6,009 | 4,003 |
Securities available-for-sale, Subtotal | 8,105 | 9,066 |
Securities available-for-sale, Total | 8,105 | 9,066 |
Corporate securities | ||
Amortized Cost | ||
Securities available-for-sale, Due in one year or less | 2,392 | 5,034 |
Securities available-for-sale, Due after one year through five years | 3,493 | 3,491 |
Securities available-for-sale, Due after five years through ten years | 4,000 | 2,000 |
Securities available-for-sale, Due after ten years | 2,000 | |
Securities available-for-sale, Subtotal | 11,885 | 10,525 |
Securities available-for-sale, Total | 11,885 | 10,525 |
Securities held-to-maturity, Due after five years through ten years | 7,500 | |
Fair Value | ||
Securities available-for-sale, Due in one year or less | 2,433 | 5,044 |
Securities available-for-sale, Due after one year through five years | 3,491 | 3,532 |
Securities available-for-sale, Due after five years through ten years | 3,676 | 1,994 |
Securities available-for-sale, Due after ten years | 1,400 | |
Securities available-for-sale, Subtotal | 11,000 | 10,570 |
Securities available-for-sale, Total | 11,000 | 10,570 |
Securities held-to-maturity, Due after five years through ten years | 7,556 | |
Municipal bonds | ||
Amortized Cost | ||
Securities available-for-sale, Due in one year or less | 101 | |
Securities available-for-sale, Due after one year through five years | 3,749 | 3,774 |
Securities available-for-sale, Due after five years through ten years | 7,994 | 3,162 |
Securities available-for-sale, Due after ten years | 57,728 | 13,580 |
Securities available-for-sale, Subtotal | 69,572 | 20,516 |
Securities available-for-sale, Total | 69,572 | 20,516 |
Fair Value | ||
Securities available-for-sale, Due in one year or less | 101 | |
Securities available-for-sale, Due after one year through five years | 3,980 | 3,833 |
Securities available-for-sale, Due after five years through ten years | 8,321 | 3,307 |
Securities available-for-sale, Due after ten years | 59,455 | 13,980 |
Securities available-for-sale, Subtotal | 71,857 | 21,120 |
Securities available-for-sale, Total | 71,857 | 21,120 |
Mortgage-backed securities | ||
Amortized Cost | ||
Securities available-for-sale, Mortgage-backed securities | 65,722 | 62,745 |
Securities available-for-sale, Total | 65,722 | 62,745 |
Fair Value | ||
Securities available-for-sale, Mortgage-backed securities | 68,187 | 62,850 |
Securities available-for-sale, Total | 68,187 | 62,850 |
Federal National Mortgage Association ("FNMA") | ||
Amortized Cost | ||
Securities available-for-sale, Mortgage-backed securities | 47,675 | 42,131 |
Fair Value | ||
Securities available-for-sale, Mortgage-backed securities | 50,005 | 42,333 |
Federal Home Loan Mortgage Corporation ("FHLMC") | ||
Amortized Cost | ||
Securities available-for-sale, Mortgage-backed securities | 11,825 | 15,250 |
Fair Value | ||
Securities available-for-sale, Mortgage-backed securities | 11,913 | 15,179 |
Government National Mortgage Association ("GNMA") | ||
Amortized Cost | ||
Securities available-for-sale, Mortgage-backed securities | 6,222 | 5,364 |
Fair Value | ||
Securities available-for-sale, Mortgage-backed securities | 6,269 | 5,338 |
U.S. Small Business Administration securities | ||
Amortized Cost | ||
Securities available-for-sale, Due after one year through five years | 2,266 | 1,546 |
Securities available-for-sale, Due after five years through ten years | 8,097 | 11,500 |
Securities available-for-sale, Due after ten years | 8,078 | 9,235 |
Securities available-for-sale, Subtotal | 18,441 | 22,281 |
Securities available-for-sale, Total | 18,441 | 22,281 |
Fair Value | ||
Securities available-for-sale, Due after one year through five years | 2,353 | 1,555 |
Securities available-for-sale, Due after five years through ten years | 8,333 | 11,598 |
Securities available-for-sale, Due after ten years | 8,183 | 9,298 |
Securities available-for-sale, Subtotal | 18,869 | 22,451 |
Securities available-for-sale, Total | $ 18,869 | $ 22,451 |
Investments - Gains and Losses
Investments - Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds | $ 12,214 | $ 10,554 |
Gross Gains | $ 300 | 91 |
Gross Losses | $ (59) |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance For Loan Losses - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable, gross | $ 1,574,227 | $ 1,351,893 |
Allowance for loan losses | (26,172) | (13,229) |
Deferred costs and fees, net | (4,017) | (3,273) |
Premiums on purchased loans, net | 943 | 955 |
Total loans receivable, net | 1,544,981 | 1,336,346 |
REAL ESTATE LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable, gross | 925,481 | 824,040 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable, gross | 222,719 | 210,749 |
Construction and development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable, gross | 216,975 | 179,654 |
Home equity. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable, gross | 43,093 | 38,167 |
One-to-four-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable, gross | 311,093 | 261,539 |
Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable, gross | 131,601 | 133,931 |
CONSUMER LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable, gross | 375,178 | 326,210 |
Indirect home improvement | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable, gross | 286,020 | 254,691 |
Marine | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable, gross | 85,740 | 67,179 |
Other consumer loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable, gross | 3,418 | 4,340 |
COMMERCIAL BUSINESS LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable, gross | 273,568 | 201,643 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable, gross | 224,476 | 140,531 |
Warehouse lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans receivable, gross | $ 49,092 | $ 61,112 |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance For Loan Losses - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)divisionsegment | Dec. 31, 2019USD ($)segmentdivision | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan portfolio segments | segment | 3 | 3 |
Number of warehouse lending divisions | division | 2 | 2 |
Loans that qualify as collateral for FHLB advances | $ 774,800 | $ 646,100 |
Loans that qualify as collateral for Federal Reserve Bank lines of credit | 369,200 | 318,800 |
Total loans receivable, gross | $ 1,574,227 | 1,351,893 |
Minimum term for accrual of interest on loans to be discontinued | 90 days | |
Multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable, gross | $ 131,601 | 133,931 |
COMMERCIAL BUSINESS LOANS. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable, gross | 273,568 | 201,643 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable, gross | 224,476 | 140,531 |
Small Business Administration (SBA) Cares Act Payment Protection Program [Member] | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable, gross | 62,100 | |
Anchor Bancorp | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Remaining net discount on loans acquired | 1,500 | 2,700 |
Total loans receivable, gross | $ 132,600 | $ 198,500 |
Minimum term for accrual of interest on loans to be discontinued | 90 days |
Loans Receivable and Allowanc_5
Loans Receivable and Allowance For Loan Losses - Allowance for Loan Losses by Loan Categories (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
ALLOWANCE FOR LOAN LOSSES | ||
Beginning balance | $ 13,229 | $ 12,349 |
Provision for loan losses | 13,036 | 2,880 |
Charge-offs | (1,123) | (2,628) |
Recoveries | 1,030 | 628 |
Net recoveries (charge-offs) | (93) | (2,000) |
Ending balance | 26,172 | 13,229 |
Period End Amount Allocated to | ||
Loans individually evaluated for impairment | 1,310 | 182 |
Loans collectively evaluated for impairment | 24,862 | 13,047 |
Ending balance | 26,172 | 13,229 |
LOANS RECEIVABLE | ||
Loans individually evaluated for impairment | 7,761 | 3,128 |
Loans collectively evaluated for impairment | 1,566,466 | 1,348,765 |
Total loans receivable | 1,574,227 | 1,351,893 |
REAL ESTATE LOANS. | ||
ALLOWANCE FOR LOAN LOSSES | ||
Beginning balance | 6,206 | 5,761 |
Provision for loan losses | 7,622 | 439 |
Charge-offs | (5) | |
Recoveries | 18 | 11 |
Net recoveries (charge-offs) | 18 | 6 |
Ending balance | 13,846 | 6,206 |
Period End Amount Allocated to | ||
Loans individually evaluated for impairment | 15 | 15 |
Loans collectively evaluated for impairment | 13,831 | 6,191 |
Ending balance | 13,846 | 6,206 |
LOANS RECEIVABLE | ||
Loans individually evaluated for impairment | 1,280 | 2,635 |
Loans collectively evaluated for impairment | 924,201 | 821,405 |
Total loans receivable | 925,481 | 824,040 |
CONSUMER LOANS. | ||
ALLOWANCE FOR LOAN LOSSES | ||
Beginning balance | 3,766 | 3,351 |
Provision for loan losses | 3,372 | 838 |
Charge-offs | (1,101) | (1,040) |
Recoveries | 659 | 617 |
Net recoveries (charge-offs) | (442) | (423) |
Ending balance | 6,696 | 3,766 |
Period End Amount Allocated to | ||
Loans individually evaluated for impairment | 305 | 167 |
Loans collectively evaluated for impairment | 6,391 | 3,599 |
Ending balance | 6,696 | 3,766 |
LOANS RECEIVABLE | ||
Loans individually evaluated for impairment | 871 | 493 |
Loans collectively evaluated for impairment | 374,307 | 325,717 |
Total loans receivable | 375,178 | 326,210 |
COMMERCIAL BUSINESS LOANS. | ||
ALLOWANCE FOR LOAN LOSSES | ||
Beginning balance | 3,254 | 3,191 |
Provision for loan losses | 1,354 | 1,646 |
Charge-offs | (22) | (1,583) |
Recoveries | 353 | |
Net recoveries (charge-offs) | 331 | (1,583) |
Ending balance | 4,939 | 3,254 |
Period End Amount Allocated to | ||
Loans individually evaluated for impairment | 990 | |
Loans collectively evaluated for impairment | 3,949 | 3,254 |
Ending balance | 4,939 | 3,254 |
LOANS RECEIVABLE | ||
Loans individually evaluated for impairment | 5,610 | |
Loans collectively evaluated for impairment | 267,958 | 201,643 |
Total loans receivable | 273,568 | 201,643 |
Unallocated Financing Receivables [Member] | ||
ALLOWANCE FOR LOAN LOSSES | ||
Beginning balance | 3 | 46 |
Provision for loan losses | 688 | (43) |
Ending balance | 691 | 3 |
Period End Amount Allocated to | ||
Loans collectively evaluated for impairment | 691 | 3 |
Ending balance | $ 691 | $ 3 |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance For Loan Losses - Aging Analysis of Past Due Loans) (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 6,403,000 | $ 4,159,000 |
Current | 1,567,824,000 | 1,347,734,000 |
Total loans receivable | $ 1,574,227,000 | $ 1,351,893,000 |
Number of TDR loans | 0 | 0 |
REAL ESTATE LOANS. | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans receivable | $ 925,481,000 | $ 824,040,000 |
Total real estate loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,638,000 | 2,985,000 |
Current | 921,843,000 | 821,055,000 |
Total loans receivable | 925,481,000 | 824,040,000 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 222,719,000 | 210,749,000 |
Total loans receivable | 222,719,000 | 210,749,000 |
Construction and development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,850,000 | 533,000 |
Current | 215,125,000 | 179,121,000 |
Total loans receivable | 216,975,000 | 179,654,000 |
Home equity. | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 483,000 | 294,000 |
Current | 42,610,000 | 37,873,000 |
Total loans receivable | 43,093,000 | 38,167,000 |
One-to-four-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,305,000 | 2,158,000 |
Current | 309,788,000 | 259,381,000 |
Total loans receivable | 311,093,000 | 261,539,000 |
Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 131,601,000 | 133,931,000 |
Total loans receivable | 131,601,000 | 133,931,000 |
CONSUMER LOANS. | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,561,000 | 1,174,000 |
Current | 373,617,000 | 325,036,000 |
Total loans receivable | 375,178,000 | 326,210,000 |
Indirect home improvement | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,339,000 | 1,066,000 |
Current | 284,681,000 | 253,625,000 |
Total loans receivable | 286,020,000 | 254,691,000 |
Marine | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 127,000 | 15,000 |
Current | 85,613,000 | 67,164,000 |
Total loans receivable | 85,740,000 | 67,179,000 |
Other consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 95,000 | 93,000 |
Current | 3,323,000 | 4,247,000 |
Total loans receivable | 3,418,000 | 4,340,000 |
COMMERCIAL BUSINESS LOANS. | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,204,000 | 0 |
Current | 272,364,000 | 201,643,000 |
Total loans receivable | 273,568,000 | 201,643,000 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,204,000 | 0 |
Current | 223,272,000 | 140,531,000 |
Total loans receivable | 224,476,000 | 140,531,000 |
Warehouse lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 49,092,000 | 61,112,000 |
Total loans receivable | 49,092,000 | 61,112,000 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,150,000 | 2,314,000 |
30-59 Days Past Due | Total real estate loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,366,000 | 1,536,000 |
30-59 Days Past Due | Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
30-59 Days Past Due | Construction and development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,850,000 | 533,000 |
30-59 Days Past Due | Home equity. | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 127,000 | 109,000 |
30-59 Days Past Due | One-to-four-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 389,000 | 894,000 |
30-59 Days Past Due | Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
30-59 Days Past Due | CONSUMER LOANS. | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 784,000 | 778,000 |
30-59 Days Past Due | Indirect home improvement | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 683,000 | 692,000 |
30-59 Days Past Due | Marine | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 28,000 | 15,000 |
30-59 Days Past Due | Other consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 73,000 | 71,000 |
30-59 Days Past Due | COMMERCIAL BUSINESS LOANS. | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
30-59 Days Past Due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
30-59 Days Past Due | Warehouse lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,175,000 | 343,000 |
60-89 Days Past Due | Total real estate loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 541,000 | 114,000 |
60-89 Days Past Due | Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
60-89 Days Past Due | Construction and development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
60-89 Days Past Due | Home equity. | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 137,000 | 0 |
60-89 Days Past Due | One-to-four-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 404,000 | 114,000 |
60-89 Days Past Due | Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
60-89 Days Past Due | CONSUMER LOANS. | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 430,000 | 229,000 |
60-89 Days Past Due | Indirect home improvement | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 331,000 | 227,000 |
60-89 Days Past Due | Marine | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 77,000 | 0 |
60-89 Days Past Due | Other consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 22,000 | 2,000 |
60-89 Days Past Due | COMMERCIAL BUSINESS LOANS. | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,204,000 | 0 |
60-89 Days Past Due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,204,000 | 0 |
60-89 Days Past Due | Warehouse lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 1,078,000 | $ 1,502,000 |
Number Of Loans Accruing Interest | loan | 0 | 0 |
90 Days or More Past Due | Total real estate loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 731,000 | $ 1,335,000 |
90 Days or More Past Due | Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
90 Days or More Past Due | Construction and development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
90 Days or More Past Due | Home equity. | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 219,000 | 185,000 |
90 Days or More Past Due | One-to-four-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 512,000 | 1,150,000 |
90 Days or More Past Due | Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
90 Days or More Past Due | CONSUMER LOANS. | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 347,000 | 167,000 |
90 Days or More Past Due | Indirect home improvement | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 325,000 | 147,000 |
90 Days or More Past Due | Marine | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 22,000 | 0 |
90 Days or More Past Due | Other consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 20,000 | |
90 Days or More Past Due | COMMERCIAL BUSINESS LOANS. | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
90 Days or More Past Due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
90 Days or More Past Due | Warehouse lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Non-Accrual | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | 7,761,000 | 3,033,000 |
Non-Accrual | Total real estate loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | 1,280,000 | 2,540,000 |
Non-Accrual | Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | 0 | 1,086,000 |
Non-Accrual | Construction and development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | 0 | 0 |
Non-Accrual | Home equity. | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | 636,000 | 190,000 |
Non-Accrual | One-to-four-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | 644,000 | 1,264,000 |
Non-Accrual | Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | 0 | 0 |
Non-Accrual | CONSUMER LOANS. | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | 871,000 | 493,000 |
Non-Accrual | Indirect home improvement | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | 826,000 | 468,000 |
Non-Accrual | Marine | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | 44,000 | 0 |
Non-Accrual | Other consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | 1,000 | 25,000 |
Non-Accrual | COMMERCIAL BUSINESS LOANS. | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | 5,610,000 | 0 |
Non-Accrual | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | 5,610,000 | 0 |
Non-Accrual | Warehouse lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | 0 | $ 0 |
Covid 19 [Member] | Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans restructured or modified | 31,200,000 | |
Covid 19 [Member] | One-to-four-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans restructured or modified | 308,000 | |
Covid 19 [Member] | CONSUMER LOANS. | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans restructured or modified | 392,000 | |
Covid 19 [Member] | COMMERCIAL BUSINESS LOANS. | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans restructured or modified | $ 12,800,000 | |
Number of loans classified as current and non-accruing and not classified as TDRs | loan | 2 | |
Amount of loans current and non accruing and not classified as TDRs | $ 4,400,000 |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance For Loan Losses - Financing Receivables, Related Allowance Recorded and No Related Allowance Recorded (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Unpaid Principal Balance, with no related allowance recorded | $ 2,535 | $ 2,685 |
Unpaid Principal Balance, with an allowance recorded | 5,339 | 537 |
Impaired Financing Receivable, Unpaid Principal Balance, Total | 7,874 | 3,222 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Recorded Investment, with no related allowance recorded | 2,423 | 2,592 |
Recorded Investment, with an allowance recorded | 5,338 | 536 |
Recorded Investment | 7,761 | 3,128 |
Impaired Financing Receivable Related Allowance Abstract | ||
Related Allowance, with an allowance recorded | 1,310 | 182 |
Related Allowance | 1,310 | 182 |
Commercial Real Estate | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Unpaid Principal Balance, with no related allowance recorded | 1,097 | |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Recorded Investment, with no related allowance recorded | 1,086 | |
Home equity. | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Unpaid Principal Balance, with no related allowance recorded | 687 | 278 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Recorded Investment, with no related allowance recorded | 636 | 225 |
Impaired Financing Receivable Related Allowance Abstract | ||
Related Allowance, with no related allowance recorded | 0 | |
One-to-four-family | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Unpaid Principal Balance, with no related allowance recorded | 645 | 1,293 |
Unpaid Principal Balance, with an allowance recorded | 61 | 61 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Recorded Investment, with no related allowance recorded | 584 | 1,264 |
Recorded Investment, with an allowance recorded | 60 | 60 |
Impaired Financing Receivable Related Allowance Abstract | ||
Related Allowance, with no related allowance recorded | 0 | |
Related Allowance, with an allowance recorded | 15 | 15 |
Indirect home improvement | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Unpaid Principal Balance, with an allowance recorded | 826 | 468 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Recorded Investment, with an allowance recorded | 826 | 468 |
Impaired Financing Receivable Related Allowance Abstract | ||
Related Allowance, with an allowance recorded | 289 | 164 |
Marine | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Unpaid Principal Balance, with an allowance recorded | 44 | |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Recorded Investment, with an allowance recorded | 44 | |
Impaired Financing Receivable Related Allowance Abstract | ||
Related Allowance, with an allowance recorded | 15 | |
Other consumer loans | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Unpaid Principal Balance, with no related allowance recorded | 17 | |
Unpaid Principal Balance, with an allowance recorded | 1 | 8 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Recorded Investment, with no related allowance recorded | 17 | |
Recorded Investment, with an allowance recorded | 1 | 8 |
Impaired Financing Receivable Related Allowance Abstract | ||
Related Allowance, with an allowance recorded | 1 | |
Related Allowance | $ 3 | |
Commercial and industrial | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Unpaid Principal Balance, with no related allowance recorded | 1,203 | |
Unpaid Principal Balance, with an allowance recorded | 4,407 | |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Recorded Investment, with no related allowance recorded | 1,203 | |
Recorded Investment, with an allowance recorded | 4,407 | |
Impaired Financing Receivable Related Allowance Abstract | ||
Related Allowance, with an allowance recorded | $ 990 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance For Loan Losses - Average Recorded Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Average Recorded Investment, with no related allowance recorded | $ 2,538 | $ 1,980 |
Average Recorded Investment, with an allowance recorded | 3,307 | 582 |
Impaired Financing Receivable, Average Recorded Investment | 5,845 | 2,562 |
Impaired Financing Receivable, Interest Income [Abstract] | ||
Interest Income Recognized, with no related allowance recorded | 79 | 95 |
Interest Income Recognized, with an allowance recorded | 225 | 48 |
Interest Income Recognized | 304 | 143 |
Commercial Real Estate | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Average Recorded Investment, with no related allowance recorded | 996 | 90 |
Impaired Financing Receivable, Interest Income [Abstract] | ||
Interest Income Recognized, with no related allowance recorded | 56 | |
Home equity. | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Average Recorded Investment, with no related allowance recorded | 485 | 206 |
Impaired Financing Receivable, Interest Income [Abstract] | ||
Interest Income Recognized, with no related allowance recorded | 25 | 3 |
One-to-four-family | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Average Recorded Investment, with no related allowance recorded | 954 | 1,500 |
Average Recorded Investment, with an allowance recorded | 60 | 5 |
Impaired Financing Receivable, Interest Income [Abstract] | ||
Interest Income Recognized, with no related allowance recorded | 17 | 34 |
Interest Income Recognized, with an allowance recorded | 5 | |
Indirect home improvement | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Average Recorded Investment, with an allowance recorded | 675 | 463 |
Impaired Financing Receivable, Interest Income [Abstract] | ||
Interest Income Recognized, with an allowance recorded | 60 | 42 |
Marine | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Average Recorded Investment, with an allowance recorded | 40 | 13 |
Impaired Financing Receivable, Interest Income [Abstract] | ||
Interest Income Recognized, with an allowance recorded | 3 | |
Other consumer loans | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Average Recorded Investment, with no related allowance recorded | 3 | 4 |
Average Recorded Investment, with an allowance recorded | 1 | 5 |
Impaired Financing Receivable, Interest Income [Abstract] | ||
Interest Income Recognized, with no related allowance recorded | 2 | |
Interest Income Recognized, with an allowance recorded | 1 | |
Commercial and industrial | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Average Recorded Investment, with no related allowance recorded | 100 | 180 |
Average Recorded Investment, with an allowance recorded | 2,531 | $ 96 |
Impaired Financing Receivable, Interest Income [Abstract] | ||
Interest Income Recognized, with no related allowance recorded | 37 | |
Interest Income Recognized, with an allowance recorded | $ 162 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance For Loan Losses - Loans by Credit Quality Indicator (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 1,574,227 | $ 1,351,893 |
Number of reported TDR loan modified previous 12 months and subsequently defaulted | loan | 0 | |
REAL ESTATE LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 925,481 | 824,040 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 222,719 | 210,749 |
Construction and development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 216,975 | 179,654 |
Home equity. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 43,093 | 38,167 |
One-to-four-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 311,093 | 261,539 |
Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 131,601 | 133,931 |
CONSUMER LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 375,178 | 326,210 |
Indirect home improvement | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 286,020 | 254,691 |
Marine | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 85,740 | 67,179 |
Other consumer loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,418 | 4,340 |
COMMERCIAL BUSINESS LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 273,568 | 201,643 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 224,476 | 140,531 |
Warehouse lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 49,092 | 61,112 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,461,600 | 1,317,980 |
Pass | REAL ESTATE LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 847,809 | 806,126 |
Pass | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 157,932 | 203,703 |
Pass | Construction and development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 212,209 | 177,109 |
Pass | Home equity. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 42,457 | 37,942 |
Pass | One-to-four-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 303,610 | 259,580 |
Pass | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 131,601 | 127,792 |
Pass | CONSUMER LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 374,307 | 325,717 |
Pass | Indirect home improvement | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 285,194 | 254,223 |
Pass | Marine | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 85,696 | 67,179 |
Pass | Other consumer loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,417 | 4,315 |
Pass | COMMERCIAL BUSINESS LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 239,484 | 186,137 |
Pass | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 190,392 | 125,025 |
Pass | Warehouse lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 49,092 | 61,112 |
Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 87,858 | 22,028 |
Watch | REAL ESTATE LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 63,913 | 11,593 |
Watch | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 60,834 | 2,274 |
Watch | Construction and development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,917 | 2,545 |
Watch | Home equity. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Watch | One-to-four-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 162 | 635 |
Watch | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 6,139 |
Watch | CONSUMER LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Watch | Indirect home improvement | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Watch | Marine | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Watch | Other consumer loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Watch | COMMERCIAL BUSINESS LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 23,945 | 10,435 |
Watch | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 23,945 | 10,435 |
Watch | Warehouse lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,122 | 5,223 |
Special Mention | REAL ESTATE LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 5,049 | 3,781 |
Special Mention | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,013 | 3,686 |
Special Mention | Construction and development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,849 | 0 |
Special Mention | Home equity. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 35 |
Special Mention | One-to-four-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 187 | 60 |
Special Mention | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Special Mention | CONSUMER LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Special Mention | Indirect home improvement | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Special Mention | Marine | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Special Mention | Other consumer loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Special Mention | COMMERCIAL BUSINESS LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,073 | 1,442 |
Special Mention | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,073 | 1,442 |
Special Mention | Warehouse lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 17,647 | 6,662 |
Substandard | REAL ESTATE LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 8,710 | 2,540 |
Substandard | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 940 | 1,086 |
Substandard | Construction and development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Substandard | Home equity. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 636 | 190 |
Substandard | One-to-four-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,134 | 1,264 |
Substandard | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Substandard | CONSUMER LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 871 | 493 |
Substandard | Indirect home improvement | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 826 | 468 |
Substandard | Marine | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 44 | 0 |
Substandard | Other consumer loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1 | 25 |
Substandard | COMMERCIAL BUSINESS LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 8,066 | 3,629 |
Substandard | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 8,066 | 3,629 |
Substandard | Warehouse lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful | REAL ESTATE LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful | Construction and development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful | Home equity. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful | One-to-four-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful | CONSUMER LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful | Indirect home improvement | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful | Marine | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful | Other consumer loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful | COMMERCIAL BUSINESS LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful | Warehouse lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Loss | REAL ESTATE LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Loss | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Loss | Construction and development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Loss | Home equity. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Loss | One-to-four-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Loss | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Loss | CONSUMER LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Loss | Indirect home improvement | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Loss | Marine | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Loss | Other consumer loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Loss | COMMERCIAL BUSINESS LOANS. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Loss | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Loss | Warehouse lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans Receivable and Allowan_10
Loans Receivable and Allowance For Loan Losses - Related Party Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Beginning balance | $ 3,249 | $ 3,325 |
Additions | 581 | |
Repayments | (33) | (76) |
Ending balance | 3,797 | 3,249 |
Aggregate loan balances of extended credit | $ 4,200 | $ 3,600 |
Servicing Rights - Narrative (D
Servicing Rights - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractually specified servicing fees, late fees, and other ancillary fees | $ 4.4 | $ 3.5 |
Mortgage servicing rights | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
The unpaid principal balances of mortgage loans serviced | 2,170 | 1,460 |
Fair market value of servicing rights' assets | $ 12.8 | $ 13.3 |
Servicing Rights - Servicing Ri
Servicing Rights - Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Beginning balance | $ 11,560 | $ 10,429 |
Additions | 11,139 | 5,400 |
Servicing rights amortized | (8,135) | (4,177) |
Impairment on servicing rights | (1,969) | (92) |
Ending balance | $ 12,595 | $ 11,560 |
Servicing Rights - Valuation As
Servicing Rights - Valuation Assumptions (Details) - Mortgage servicing rights | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Weighted average discount rate | 9.10% | 9.70% |
Conditional prepayment rate ("CPR") | 32.60% | 17.10% |
Weighted average life in years | 3 years | 5 years 1 month 6 days |
Servicing Rights - Changes in V
Servicing Rights - Changes in Valuation Assumptions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Basis Points Drop in Note Rate, Assumption One | 0.50% | 0.50% |
Basis Points Drop in Note Rate, Assumption Two | 1.00% | 1.00% |
Mortgage servicing rights | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Aggregate portfolio principal balance | $ 2,133,473 | $ 1,463,732 |
Weighted average rate of note | 3.50% | 4.20% |
Conditional prepayment rate | 32.60% | 17.10% |
Conditional prepayment rate, 0.5% Adverse Change | 40.60% | 24.60% |
Conditional prepayment rate, 1.0% Adverse Change | 59.60% | 32.50% |
Fair value MSR | $ 12,833 | $ 13,255 |
Fair value MSR, 0.5% Adverse Change | 10,922 | 10,582 |
Fair value of MSR, 1.0% Adverse Change | $ 8,286 | $ 8,674 |
Percentage of MSR | 0.60% | 0.90% |
Percentage of MSR, 0.5% Adverse Change | 0.50% | 0.70% |
Percentage of MSR, 1.0% Adverse Change | 0.40% | 0.60% |
Discount rate | 9.10% | 9.70% |
Discount rate, 0.5% Adverse Change | 9.60% | 10.20% |
Discount rate, 1.0% Adverse Change | 10.10% | 10.70% |
Fair value MSR, 0.5% Adverse Change | $ 12,696 | $ 13,037 |
Fair value MSR, 1.0% Adverse Change | $ 12,562 | $ 12,826 |
Percentage of MSR, 0.5% Adverse Change | 0.60% | 0.90% |
Percentage of MSR, 1.0% Adverse Change | 0.60% | 0.90% |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 46,764 | $ 45,385 |
Less accumulated depreciation and amortization | (19,421) | (16,615) |
Property, Plant and Equipment, Net, Total | 27,343 | 28,770 |
Depreciation and amortization | 2,800 | 2,800 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 5,227 | 5,227 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 16,769 | 16,769 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 14,724 | 13,562 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 2,859 | 2,848 |
Building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 6,830 | 6,572 |
Projects in process | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 355 | $ 407 |
Leases (Details)
Leases (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |
Options to extend | true |
Renewal term | 5 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 5 months |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 9 years 6 months |
Leases - Components of lease co
Leases - Components of lease cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease cost: | ||
Operating lease cost | $ 1,393 | $ 1,285 |
Short-term lease cost | 11 | 166 |
Total lease cost | 1,404 | 1,451 |
Operating cash flows from operating leases | $ 1,365 | $ 1,331 |
Weighted average remaining lease term- operating leases | 5 years 4 months 24 days | 5 years 3 months 18 days |
Weighted average discount rate- operating leases | 2.48% | 3.00% |
Leases - Maturities of operatin
Leases - Maturities of operating lease liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Maturities of operating lease liabilities | ||
2021 | $ 1,319 | |
2022 | 1,222 | |
2023 | 839 | |
2024 | 787 | |
2025 | 478 | |
Thereafter | 949 | |
Total lease payments | 5,594 | |
Less imputed interest | (418) | |
Operating lease liabilities | $ 5,176 | $ 5,214 |
Other Real Estate Owned - Activ
Other Real Estate Owned - Activity related to OREO (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other Real Estate [Roll Forward] | ||
Beginning balance | $ 168 | $ 689 |
Additions | 0 | 242 |
Gross proceeds from sale of OREO | (76) | (901) |
(Loss) gain on sale of OREO | (2) | 138 |
Ending balance | $ 90 | $ 168 |
Other Real Estate Owned - Narra
Other Real Estate Owned - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)property | Dec. 31, 2019USD ($)property | |
Banking and Thrift [Abstract] | ||
OREO properties | $ 90,000 | $ 168,000 |
Number of OREO Properties | property | 1 | 2 |
Holding costs | $ 4,000 | $ 13,000 |
Mortgage loans in process of foreclosure | $ 662,000 | $ 1,000,000 |
Deposits - Deposit Liabilities
Deposits - Deposit Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Banking and Thrift [Abstract] | ||
Noninterest-bearing checking | $ 348,421 | $ 260,131 |
Interest-bearing checking | 226,282 | 177,972 |
Savings | 152,842 | 118,845 |
Money market | 429,548 | 270,489 |
Certificates of deposit less than $100,000 | 299,157 | 277,988 |
Certificates of deposit of $100,000 through $250,000 | 135,901 | 181,402 |
Certificates of deposit of $250,000 and over | 67,488 | 92,110 |
Escrow accounts related to mortgages serviced | 14,432 | 13,471 |
Total deposits | 1,674,071 | 1,392,408 |
Related-party deposits | 4,000 | 3,300 |
Cash on hand and deposit balances with FRB | $ 0 | $ 0 |
Deposits - Maturities of Time D
Deposits - Maturities of Time Deposits for Future Periods (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Banking and Thrift [Abstract] | |
Maturing in 2021 | $ 340,867 |
Maturing in 2022 | 88,529 |
Maturing in 2023 | 19,991 |
Maturing in 2024 | 20,131 |
Maturing in 2025 | 33,027 |
Thereafter | 1 |
Total | $ 502,546 |
Deposits - Interest Expense by
Deposits - Interest Expense by Deposit Category (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Banking and Thrift [Abstract] | ||
Interest-bearing checking | $ 388 | $ 1,414 |
Savings and money market | 2,458 | 3,098 |
Certificates of deposit | 9,134 | 11,650 |
Total | $ 11,980 | $ 16,162 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Thousands | Feb. 10, 2021USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | Oct. 15, 2015USD ($) |
Debt Instrument [Line Items] | |||||
Federal home loan bank, advances, general debt obligations, maximum amount available, percentage of total assets (as a percent) | 45.00% | ||||
Federal home loan bank, advances, general debt obligations, collateral pledged | $ 774,800 | ||||
Federal home loan bank, borrowing capacity | 568,200 | ||||
Federal home loan bank, unused borrowing capacity | 459,900 | ||||
Unsecured Fed Funds lines of credit | 101,000 | ||||
Unsecured Fed Funds, lines of credit, outstanding balance | 0 | ||||
Total loans receivable, gross | 1,574,227 | $ 1,351,893 | |||
Commercial and industrial | |||||
Debt Instrument [Line Items] | |||||
Total loans receivable, gross | 224,476 | 140,531 | |||
Fixed To Floating Rate Subordinated Note Due 2031 | Private Placement | |||||
Debt Instrument [Line Items] | |||||
Private placement amount | $ 50,000 | ||||
Annual interest rate (as a percent) | 3.75% | ||||
Offering price percentage (as a percent) | 100.00% | ||||
Net proceeds | $ 49,300 | ||||
Subordinated Note | |||||
Debt Instrument [Line Items] | |||||
Principal amount of subordinated debt | $ 10,000 | ||||
Annual interest rate (as a percent) | 6.50% | ||||
Contributions of proceeds from subordinated debt | $ 9,000 | ||||
Federal Reserve Bank | |||||
Debt Instrument [Line Items] | |||||
Warehouse lines of credit | 179,600 | 156,100 | |||
Line of credit, outstanding balance | 0 | 0 | |||
Federal Reserve Bank | |||||
Debt Instrument [Line Items] | |||||
Loans pledged as collateral | 369,200 | $ 318,800 | |||
Small Business Administration (SBA) Cares Act Payment Protection Program [Member] | |||||
Debt Instrument [Line Items] | |||||
Additional unused borrowing capacity | $ 0 | ||||
Number of loans funded | loan | 423 | ||||
Small Business Administration (SBA) Cares Act Payment Protection Program [Member] | Commercial and industrial | |||||
Debt Instrument [Line Items] | |||||
Total loans receivable, gross | $ 62,100 | ||||
Small Business Administration SBA Cares Act Paycheck Protection Program Liquidity Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Annual interest rate (as a percent) | 0.35% | ||||
Borrowings | $ 63,300 | ||||
Maturing in 2022 | 62,000 | ||||
Maturing in 2025 | $ 1,300 |
Debt - Advances on Borrowing Li
Debt - Advances on Borrowing Line (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank and PPP Borrowings [Line Items] | ||
Federal home loan bank, advances, general debt obligations | $ 102,528 | |
Long-term Debt | 165,809 | $ 84,864 |
Paycheck Protection Program Liquidity Facility | ||
Federal Home Loan Bank and PPP Borrowings [Line Items] | ||
Long-term Debt | $ 63,281 | |
Debt Instrument, Interest Rate, Stated Percentage | 0.35% | |
Maximum | Paycheck Protection Program Liquidity Facility | ||
Federal Home Loan Bank and PPP Borrowings [Line Items] | ||
Long-term Debt | $ 74,112 | 0 |
Securities Line | ||
Federal Home Loan Bank and PPP Borrowings [Line Items] | ||
Federal home loan bank, advances, general debt obligations | $ 102,528 | $ 84,864 |
Securities Line | Minimum | ||
Federal Home Loan Bank and PPP Borrowings [Line Items] | ||
Federal Home Loan Bank, interest rates | 1.58% | 1.58% |
Securities Line | Maximum | ||
Federal Home Loan Bank and PPP Borrowings [Line Items] | ||
Federal Home Loan Bank, interest rates | 2.87% | 2.87% |
Debt - Maximum and Average bala
Debt - Maximum and Average balances, Weighted Average Interest Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Maximum balance: | ||
Federal Home Loan Bank advances and Fed Funds | $ 159,114 | $ 186,401 |
Federal Reserve Bank | 40,000 | 5,000 |
Fed funds line of credit | 865 | 5,000 |
Long-term Debt | 165,809 | 84,864 |
Average balance: | ||
Federal Home Loan Bank advances and Fed Funds | 99,773 | 93,653 |
Federal Reserve Bank | 1,096 | 167 |
Fed Funds lines of credit | $ 3 | $ 318 |
Weighted average interest rates | ||
Federal Home Loan Bank advances and Fed Funds (as a percent) | 1.80% | 2.61% |
Fed Funds (as a percent) | 0.25% | 2.96% |
Fed Funds lines of credit (as a percent) | 0.36% | 2.09% |
Subordinated note | ||
Average balance: | ||
Long term debt | $ 10,000 | $ 10,000 |
Weighted average interest rates | ||
Weighted average interest rate (as a percent) | 6.50% | 6.50% |
Subordinated note | Maximum | ||
Maximum balance: | ||
Long-term Debt | $ 10,000 | $ 10,000 |
Paycheck Protection Program Liquidity Facility | ||
Maximum balance: | ||
Long-term Debt | 63,281 | |
Average balance: | ||
Long term debt | $ 46,965 | $ 0 |
Weighted average interest rates | ||
Weighted average interest rate (as a percent) | 0.35% | 0.00% |
Paycheck Protection Program Liquidity Facility | Maximum | ||
Maximum balance: | ||
Long-term Debt | $ 74,112 | $ 0 |
Debt - Schedule of Federal Home
Debt - Schedule of Federal Home Loan Bank Advances Maturities Summary Due (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | |
2021 | $ 75,000 |
2022 | 13,633 |
2023 | 13,895 |
Total | $ 102,528 |
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | |
2021, Interest Rates (percent) | 1.60% |
2022, Interest Rates (percent) | 2.03% |
2023, Interest Rates (percent) | 1.77% |
Employee Benefits - Narrative (
Employee Benefits - Narrative (Details) - USD ($) | Jul. 09, 2012 | Jan. 02, 2012 | Dec. 31, 2020 | Dec. 31, 2019 |
Compensation and Retirement Disclosure [Abstract] | ||||
Number of hours of service required for participation in ESOP, per first 12 month period (in hours) | 1000 hours | |||
Vesting percentage after requisite service period is met (as a percent) | 100.00% | |||
Requisite service period (in years) | 2 years | |||
Number of hours per service period year (in hours) | 1000 hours | |||
ESOP borrowings from FS Bancorp | $ 2,600,000 | |||
Shares acquired (in shares) | 259,210 | 239,665 | 241,353 | |
Employee stock ownership plan (ESOP), weighted average purchase price of shares purchased (in dollars per share) | $ 10.17 | |||
Amortization period of ESOP loan | 10 years | |||
Employee stock ownership plan (ESOP), debt structure, employer loan, interest rate | 2.30% | |||
Employee stock ownership plan (ESOP), periodic installment payments from esop, amount paid | $ 282,000 | |||
Employee stock ownership plan (ESOP), interest payments from esop | 13,000 | |||
ESOP compensation expense for allocated shares | $ 1,307,000 | $ 1,506,000 |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Shares Under ESOP (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 09, 2012 |
Employee Stock Ownership Plan (ESOP), Shares in ESOP [Abstract] | |||
Allocated shares | 213,744 | 189,511 | |
Committed to be released shares | 0 | 0 | |
Unallocated shares | 25,921 | 51,842 | |
Total ESOP shares (in shares) | 239,665 | 241,353 | 259,210 |
Fair value of unallocated shares (in thousands) | $ 1,307 | $ 3,006 |
Employee Benefits - 401(K) Plan
Employee Benefits - 401(K) Plan (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Defined Contribution Plans Disclosures [Line Items] | ||
Defined contribution plan, minimum age requirement | 18 years | |
Percentage vested in deferral contributions account | 100.00% | |
Employer contributions | $ 1.5 | $ 1.2 |
Contributions between 1% to 3% | ||
Schedule of Defined Contribution Plans Disclosures [Line Items] | ||
Employer matching percentage | 100.00% | |
Contributions between 1% to 3% | Minimum | ||
Schedule of Defined Contribution Plans Disclosures [Line Items] | ||
Defined contribution plan, employee contribution (percent) | 1.00% | |
Contributions between 1% to 3% | Maximum | ||
Schedule of Defined Contribution Plans Disclosures [Line Items] | ||
Defined contribution plan, employee contribution (percent) | 3.00% | |
Contributions between 4% and 5% | ||
Schedule of Defined Contribution Plans Disclosures [Line Items] | ||
Employer matching percentage | 50.00% | |
Contributions between 4% and 5% | Minimum | ||
Schedule of Defined Contribution Plans Disclosures [Line Items] | ||
Defined contribution plan, employee contribution (percent) | 4.00% | |
Contributions between 4% and 5% | Maximum | ||
Schedule of Defined Contribution Plans Disclosures [Line Items] | ||
Defined contribution plan, employee contribution (percent) | 5.00% |
Income Taxes - Components of In
Income Taxes - Components of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Provision for income taxes | ||
Current | $ 12,976 | $ 4,425 |
Deferred | (2,390) | 988 |
Income Tax Expense (Benefit), Total | $ 10,586 | $ 5,413 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ||
Income tax provision at statutory rate | $ 10,469 | $ 5,907 |
Tax exempt income | (292) | (225) |
Nondeductible items resulting in increase in tax | 57 | 129 |
Increase (decrease) in tax resulting from other items | 175 | (78) |
Equity compensation | (46) | (691) |
Executive compensation | 8 | 112 |
ESOP | 215 | 259 |
Income Tax Expense (Benefit), Total | $ 10,586 | $ 5,413 |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ||
Income tax provision at statutory rate | 21.00% | 21.00% |
Tax exempt income | (0.60%) | (0.80%) |
Nondeductible items resulting in increase in tax | 0.10% | 0.50% |
Increase (decrease) in tax resulting from other items | 0.40% | (0.30%) |
Equity compensation | (0.10%) | (2.50%) |
Executive compensation | 0.00% | 0.40% |
ESOP | 0.40% | 0.90% |
Total | 21.20% | 19.20% |
Income Taxes - Deferred Assets
Income Taxes - Deferred Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Tax Assets | ||
Net operating loss carryforward | $ 527 | $ 864 |
Allowance for loan losses | 5,775 | 2,844 |
Purchase accounting adjustments | 0 | 466 |
Other real estate owned | 126 | 126 |
Non-accrued loan interest | 6 | 13 |
Restricted stock awards | 97 | 68 |
Non-qualified stock options | 251 | 185 |
Interest rate swap designated as cash flow hedge | 265 | 0 |
Lease liability | 1,113 | 1,121 |
Accrued compensation | 430 | 0 |
Other | 224 | 351 |
Total deferred tax assets | 8,814 | 6,038 |
Deferred Tax Liabilities | ||
Loan origination costs | (2,134) | (1,341) |
Servicing rights | (2,708) | (2,525) |
Stock dividend - FHLB stock | (55) | (59) |
Property, plant, and equipment | (1,097) | (1,362) |
Purchase accounting adjustments | (830) | (1,404) |
Securities available-for-sale | (958) | (216) |
Lease right-of-use assets | (1,090) | (1,078) |
Other | 0 | (24) |
Total deferred tax liabilities | (8,872) | (8,009) |
Net deferred tax liabilities | $ (58) | $ (1,971) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAXES | ||
Uncertain tax liabilities | $ 0 | $ 0 |
Recognized interest and penalties | 0 | $ 0 |
Net operating loss carryforwards | $ 2,400 |
Commitments and Contingencies -
Commitments and Contingencies - Commitment (Details) - Commitments to Extend Credit - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | $ 528,231 | $ 312,272 |
REAL ESTATE LOANS. | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 345,786 | 183,477 |
Commercial Real Estate | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 1,293 | 247 |
Construction and development | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 143,666 | 95,031 |
One-to-four-family | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 147,712 | 39,697 |
Home equity. | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 52,457 | 47,880 |
Multi-family | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 658 | 622 |
CONSUMER LOANS. | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 23,365 | 22,176 |
COMMERCIAL BUSINESS LOANS. | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 159,080 | 106,619 |
Commercial and industrial | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | 106,171 | 72,731 |
Warehouse lending | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments | $ 52,909 | $ 33,888 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | ||
Amount of loans sold to FHLB | $ 30,000,000 | |
Federal Home Loan Bank, First Loss Account Established | 938,000 | |
Bank recourse obligation | $ 811,000 | |
Bank recourse obligation, percentage of loans outstanding | 2.70% | |
Reserve as a percentage of outstanding CE | 10.00% | |
Reserve for loans sold | $ 272,000 | |
Outstanding delinquencies on loans sold to Federal Home Loan Bank | $ 498,000 | $ 0 |
Change of control agreement, executive payment, period following change in control (in months) | 12 months | |
Pending material legal actions | 0 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Change of control agreement, executive payment, period prior to change in control (in months) | 6 months | |
Change of control agreement, period of base compensation disbursed as lump sum payment (in months) | 12 months | |
Minimum | ||
Loss Contingencies [Line Items] | ||
Change of control agreement, notice required to cancel agreement (in months) | 24 months | |
Commitments to Extend Credit | ||
Loss Contingencies [Line Items] | ||
Reserve for estimated losses | $ 407,000 | 293,000 |
Guarantee on loans sold | ||
Loss Contingencies [Line Items] | ||
Reserve for estimated losses | $ 2,000,000 | $ 1,200,000 |
CEO | ||
Loss Contingencies [Line Items] | ||
Severance agreement, period of base compensation disbursed as lump sum payment (in months) | 24 months |
Significant Concentration Of _2
Significant Concentration Of Credit Risk (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Credit Concentration Risk [Member] | Construction Land Development And Other Land Concentration [Member] | Regulatory Capital [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 89.60% |
Regulatory Capital - Regulatory
Regulatory Capital - Regulatory Capital Ratios Policy (Details) $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage capital, Ratio | 11.1 | 11.3 |
1st Security Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage capital, Ratio | 10.9 | 11.6 |
Tier One Leverage Capital | $ 215.9 | $ 196 |
Tier 1 leverage capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 159.1 | $ 84.8 |
Fair Value Measurements - Avail
Fair Value Measurements - Available for Sale Securities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 348,511 | $ 196,313 |
Total liabilities measured at fair value | (2,921) | (203) |
Securities available-for-sale. | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 8,105 | 9,066 |
Securities available-for-sale. | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 11,000 | 10,570 |
Securities available-for-sale. | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 71,857 | 21,120 |
Securities available-for-sale. | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 68,187 | 62,850 |
Securities available-for-sale. | U.S. Small Business Administration securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 18,869 | 22,451 |
Securities available-for-sale. | Mortgage loans held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 166,448 | 69,699 |
Derivative | Interest rate lock commitments with customers | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 4,024 | 557 |
Derivative | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 21 | |
Total liabilities measured at fair value | (1,252) | |
Derivative | Mandatory and best effort forward commitments with investors | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | (67) | (195) |
Derivative | Forward TBA mortgage backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | (1,602) | (8) |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Level 1 | Securities available-for-sale. | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | |
Level 1 | Securities available-for-sale. | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 1 | Securities available-for-sale. | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 1 | Securities available-for-sale. | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 1 | Securities available-for-sale. | U.S. Small Business Administration securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 1 | Securities available-for-sale. | Mortgage loans held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 1 | Derivative | Interest rate lock commitments with customers | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 1 | Derivative | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | |
Total liabilities measured at fair value | 0 | |
Level 1 | Derivative | Mandatory and best effort forward commitments with investors | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 0 | 0 |
Level 1 | Derivative | Forward TBA mortgage backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 343,376 | 194,594 |
Total liabilities measured at fair value | (2,854) | (8) |
Level 2 | Securities available-for-sale. | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 8,105 | 9,066 |
Level 2 | Securities available-for-sale. | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 10,016 | 9,546 |
Level 2 | Securities available-for-sale. | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 71,730 | 20,982 |
Level 2 | Securities available-for-sale. | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 68,187 | 62,850 |
Level 2 | Securities available-for-sale. | U.S. Small Business Administration securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 18,869 | 22,451 |
Level 2 | Securities available-for-sale. | Mortgage loans held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 166,448 | 69,699 |
Level 2 | Derivative | Interest rate lock commitments with customers | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 2 | Derivative | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 21 | |
Total liabilities measured at fair value | (1,252) | |
Level 2 | Derivative | Mandatory and best effort forward commitments with investors | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 0 | 0 |
Level 2 | Derivative | Forward TBA mortgage backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | (1,602) | (8) |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 5,135 | 1,719 |
Total liabilities measured at fair value | (67) | (195) |
Level 3 | Securities available-for-sale. | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | |
Level 3 | Securities available-for-sale. | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 984 | 1,024 |
Level 3 | Securities available-for-sale. | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 127 | 138 |
Level 3 | Securities available-for-sale. | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 3 | Securities available-for-sale. | U.S. Small Business Administration securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 3 | Securities available-for-sale. | Mortgage loans held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 3 | Derivative | Interest rate lock commitments with customers | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 4,024 | 557 |
Level 3 | Derivative | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | |
Total liabilities measured at fair value | 0 | |
Level 3 | Derivative | Mandatory and best effort forward commitments with investors | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | (67) | (195) |
Level 3 | Derivative | Forward TBA mortgage backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | $ 0 | $ 0 |
Fair Value Measurements - Impai
Fair Value Measurements - Impaired Loans and OREO (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OREO | $ 90 | $ 168 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 7,761 | 3,128 |
OREO | 90 | 168 |
Servicing Rights | 12,833 | 13,255 |
Fair Value, Measurements, Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 0 | 0 |
OREO | 0 | 0 |
Servicing Rights | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 0 | 0 |
OREO | 0 | 0 |
Servicing Rights | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 7,761 | 3,128 |
OREO | 90 | 168 |
Servicing Rights | $ 12,833 | $ 13,255 |
Fair Value Measurements - Disco
Fair Value Measurements - Discount Rate (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Measurements, Recurring | Interest rate lock commitments with customers | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input [Extensible List] | fsbw:MeasurementInputPullThroughExpectationsMember | |
Debt Securities, Available-for-sale, Valuation Technique [Extensible List] | fsbw:QuotedMarketPricesMember | |
Fair Value, Measurements, Recurring | Individual forward commitments with investors | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input [Extensible List] | fsbw:MeasurementInputPullThroughExpectationsMember | |
Debt Securities, Available-for-sale, Valuation Technique [Extensible List] | fsbw:QuotedMarketPricesMember | |
Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input [Extensible List] | us-gaap:MeasurementInputDiscountRateMember | |
Debt Securities, Available-for-sale, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | |
Fair Value, Measurements, Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input [Extensible List] | us-gaap:MeasurementInputDiscountRateMember | |
Debt Securities, Available-for-sale, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | |
Fair Value, Measurements, Nonrecurring | Impaired Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input [Extensible List] | Discount applied to the obtained appraisal | |
Debt Securities, Available-for-sale, Valuation Technique [Extensible List] | fsbw:FairValueOfUnderlyingCollateralMember | |
Fair Value, Measurements, Nonrecurring | Other Real Estate Owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input [Extensible List] | Discount applied to the obtained appraisal | |
Debt Securities, Available-for-sale, Valuation Technique [Extensible List] | fsbw:FairValueOfUnderlyingCollateralMember | |
Fair Value, Measurements, Nonrecurring | Servicing rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input [Extensible List] | fsbw:PrepaymentSpeedsMember | |
Debt Securities, Available-for-sale, Valuation Technique [Extensible List] | fsbw:IndustrySourcesMember | |
Level 3 | Fair Value, Measurements, Recurring | Interest rate lock commitments with customers | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 0.80 | 0.80 |
Level 3 | Fair Value, Measurements, Recurring | Interest rate lock commitments with customers | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 0.99 | 0.99 |
Level 3 | Fair Value, Measurements, Recurring | Interest rate lock commitments with customers | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 91.6 | 94.5 |
Level 3 | Fair Value, Measurements, Recurring | Individual forward commitments with investors | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 0.80 | 0.80 |
Level 3 | Fair Value, Measurements, Recurring | Individual forward commitments with investors | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 0.99 | 0.99 |
Level 3 | Fair Value, Measurements, Recurring | Individual forward commitments with investors | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 91.6 | 94.5 |
Level 3 | Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 2.5 | 2.5 |
Level 3 | Fair Value, Measurements, Recurring | Corporate securities | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 2.5 | 2.1 |
Level 3 | Fair Value, Measurements, Recurring | Municipal bonds | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 6.4 | 6.4 |
Level 3 | Fair Value, Measurements, Recurring | Municipal bonds | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 6.4 | 3.4 |
Level 3 | Fair Value, Measurements, Nonrecurring | Impaired Loans | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 10 | 10 |
Level 3 | Fair Value, Measurements, Nonrecurring | Impaired Loans | Discount applied to the obtained appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 10 | 10 |
Level 3 | Fair Value, Measurements, Nonrecurring | Other Real Estate Owned | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 10 | 10 |
Level 3 | Fair Value, Measurements, Nonrecurring | Other Real Estate Owned | Discount applied to the obtained appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 10 | 10 |
Level 3 | Fair Value, Measurements, Nonrecurring | Servicing rights | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 0 | 0 |
Level 3 | Fair Value, Measurements, Nonrecurring | Servicing rights | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 0.50 | 0.50 |
Level 3 | Fair Value, Measurements, Nonrecurring | Servicing rights | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement inputs (as a percent) | 32.6 | 17.1 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Level 3 on recurring basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest rate lock commitments with customers | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 557 | $ 503 |
Purchases and Issuances | 53,281 | 11,063 |
Sales and Settlements | (49,814) | (11,009) |
Ending Balance | 4,024 | 557 |
Net change in fair value for gains/(losses) relating to items held at end of period included in income | 3,467 | 54 |
Individual forward commitments with investors | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | (195) | (34) |
Purchases and Issuances | (4,857) | (1,444) |
Sales and Settlements | 4,985 | 1,283 |
Ending Balance | (67) | (195) |
Net change in fair value for gains/(losses) relating to items held at end of period included in income | 128 | (161) |
Securities available-for-sale. | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 1,162 | |
Sales and Settlements | (51) | |
Transfers In | 1,162 | |
Ending Balance | 1,111 | $ 1,162 |
Net change in fair value for gains/(losses) relating to items held at end of period included in other comprehensive | $ (40) |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value By Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial Assets | ||
Certificates of deposit at other financial institutions | $ 12,278 | $ 20,902 |
Securities available-for-sale, at fair value | 178,018 | 126,057 |
Securities held-to-maturity (fair value of $7,556) | 7,500 | 0 |
Loans held for sale, at fair value | 166,448 | 69,699 |
Fair Value, Measurements, Recurring | ||
Financial Liabilities | ||
Financial Liabilities Fair Value Disclosure | 2,921 | 203 |
Level 1 | Fair Value, Measurements, Recurring | ||
Financial Liabilities | ||
Financial Liabilities Fair Value Disclosure | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | ||
Financial Liabilities | ||
Financial Liabilities Fair Value Disclosure | 2,854 | 8 |
Level 3 | Fair Value, Measurements, Recurring | ||
Financial Liabilities | ||
Financial Liabilities Fair Value Disclosure | 67 | 195 |
Carrying Amount | Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 91,576 | 45,778 |
Certificates of deposit at other financial institutions | 12,278 | 20,902 |
Carrying Amount | Level 2 | ||
Financial Assets | ||
Securities available-for-sale, at fair value | 176,907 | 124,895 |
Securities held-to-maturity (fair value of $7,556) | 7,500 | |
Loans held for sale, at fair value | 166,448 | 69,699 |
FHLB stock, at cost | 7,439 | 8,045 |
Interest rate swaps | 21 | |
Accrued interest receivable | 7,030 | 5,908 |
Financial Liabilities | ||
Deposits | 1,674,071 | 1,392,408 |
Borrowings | 165,809 | 84,864 |
Subordinated note, net | 10,000 | 9,885 |
Accrued interest payable | 406 | 273 |
Interest rate swaps | 1,252 | |
Forward TBA mortgage-backed securities | 1,602 | 8 |
Carrying Amount | Level 3 | ||
Financial Assets | ||
Securities available-for-sale, at fair value | 1,111 | 1,162 |
Loans receivable, gross | 1,574,227 | 1,351,893 |
Servicing rights, held at lower of cost or fair value | 12,595 | 11,560 |
Fair value interest rate locks with customers | 4,024 | 557 |
Financial Liabilities | ||
Mandatory and best effort forward commitments with investors | 67 | 195 |
Fair Value | Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 91,576 | 45,778 |
Certificates of deposit at other financial institutions | 12,278 | 20,902 |
Fair Value | Level 2 | ||
Financial Assets | ||
Securities available-for-sale, at fair value | 176,907 | 124,895 |
Securities held-to-maturity (fair value of $7,556) | 7,556 | |
Loans held for sale, at fair value | 166,448 | 69,699 |
FHLB stock, at cost | 7,439 | 8,045 |
Interest rate swaps | 21 | |
Accrued interest receivable | 7,030 | 5,908 |
Financial Liabilities | ||
Deposits | 1,674,328 | 1,385,658 |
Borrowings | 167,680 | 85,268 |
Subordinated note, net | 11,083 | 10,599 |
Accrued interest payable | 406 | 273 |
Interest rate swaps | 1,252 | |
Forward TBA mortgage-backed securities | 1,602 | 8 |
Fair Value | Level 3 | ||
Financial Assets | ||
Securities available-for-sale, at fair value | 1,111 | 1,162 |
Loans receivable, gross | 1,580,360 | 1,377,408 |
Servicing rights, held at lower of cost or fair value | 12,833 | 13,255 |
Fair value interest rate locks with customers | 4,024 | 557 |
Financial Liabilities | ||
Mandatory and best effort forward commitments with investors | $ 67 | $ 195 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator (in thousands): | ||
Net Income | $ 39,264 | $ 22,717 |
Dividends and undistributed earnings allocated to participating securities | (192) | (73) |
Net income available to common shareholders | $ 39,072 | $ 22,644 |
Denominator (shown as actual): | ||
Basic weighted average common shares outstanding (in shares) | 4,273,350 | 4,414,032 |
Dilutive shares (in shares) | 81,019 | 108,992 |
Diluted weighted average common shares outstanding (in shares) | 4,354,369 | 4,523,024 |
Basic earnings per share(in dollars per share) | $ 9.14 | $ 5.13 |
Diluted earnings per share(in dollars per share) | $ 8.97 | $ 5.01 |
Potentially dilutive weighted average share options that were not included in the computation of diluted earnings per share because to do so would be anti-dilutive | 66,619 | 36,337 |
Derivatives (Details)
Derivatives (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($) | |
Derivative [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ 6,300,000 | $ 303,000 |
Asset pledged as collateral | ||
Derivative [Line Items] | ||
Number of securities pledged | security | 2 | |
Carrying value of assets pledged | $ 3,400,000 | |
Cash Flow Hedges | ||
Derivative [Line Items] | ||
Net unrealized loss on cash flow hedges recorded in accumulated other comprehensive income | (967,000) | |
Reclassification of loss to interest expense related to cash flow hedges | (198,000) | |
Reclassification to interest expense related to cash flow hedges over next 12 months | (492,000) | |
Cash flow hedges | 0 | |
Forward TBA mortgage-backed securities | ||
Derivative [Line Items] | ||
Margin collateral | $ 3,300,000 | $ 1,200,000 |
Derivatives - Derivative instru
Derivatives - Derivative instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Designated as Hedging Instrument | Interest rate lock commitments with customers | Cash Flow Hedges | ||
Derivative [Line Items] | ||
Notional | $ 90,000 | |
Fair Value, Asset | 21 | |
Fair Value, Liability | 1,252 | |
Not Designated as Hedging Instrument | Interest rate lock commitments with customers | ||
Derivative [Line Items] | ||
Notional | 136,739 | $ 33,914 |
Fair Value, Asset | 4,024 | 557 |
Fair Value, Liability | 0 | 0 |
Not Designated as Hedging Instrument | Mandatory and best effort forward commitments with investors | ||
Derivative [Line Items] | ||
Notional | 25,027 | 43,752 |
Fair Value, Asset | 0 | 0 |
Fair Value, Liability | 67 | 195 |
Not Designated as Hedging Instrument | Mortgage-backed securities | ||
Derivative [Line Items] | ||
Notional | 232,000 | 46,000 |
Fair Value, Asset | 0 | 0 |
Fair Value, Liability | 1,602 | 8 |
Not Designated as Hedging Instrument | Forward TBA mortgage-backed securities | ||
Derivative [Line Items] | ||
Notional | $ 232,000 | $ 46,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ 200,242 | $ 180,038 |
Net current period other comprehensive income (loss) | 1,745 | 2,267 |
Balance | 230,007 | 200,242 |
Gains and Losses on Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassification, net of tax | (1,122) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 155 | |
Net current period other comprehensive income (loss) | (967) | |
Balance | (967) | |
Unrealized Gains and Losses on Available for Sale Securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 788 | (1,479) |
Other comprehensive income (loss) before reclassification, net of tax | 2,947 | 2,292 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (235) | (25) |
Net current period other comprehensive income (loss) | 2,712 | 2,267 |
Balance | 3,500 | 788 |
Accumulated Other Comprehensive (Loss) Income, Net of Tax | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 788 | (1,479) |
Other comprehensive income (loss) before reclassification, net of tax | 1,825 | 2,292 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (80) | (25) |
Net current period other comprehensive income (loss) | 1,745 | 2,267 |
Balance | $ 2,533 | $ 788 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) | Aug. 15, 2020 | Sep. 30, 2013 | Dec. 31, 2020 | Dec. 31, 2019 | May 17, 2018 | May 08, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award contractual life | 10 years | |||||
2013 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected forfeiture rate over contractual term | 3.10% | |||||
2013 Equity Incentive Plan | Equity option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | 324,013 | |||||
Market value of stock (in dollars per share) | $ 16.89 | |||||
Granted (in shares) | 322,000 | |||||
Shares available for grant | 6,013 | |||||
2013 Equity Incentive Plan | Restricted stock awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | 129,605 | |||||
2018 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 1,000,000 | $ 869,000 | ||||
2018 Equity Incentive Plan | Equity option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for grant | 274,060 | |||||
Unrecognized compensation cost, nonvested awards | $ 1,500,000 | |||||
Remaining weighted-average vesting period | 3 years 4 months 24 days | |||||
Shares | 62,285 | |||||
2018 Equity Incentive Plan | Restricted stock awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | 163,000 | |||||
Shares available for grant | 92,905 | |||||
Unrecognized compensation cost, nonvested awards | $ 2,400,000 | |||||
Shares | 24,880 | |||||
2018 Equity Incentive Plan | Restricted stock awards | Directors Excluding CEO | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 1 year | |||||
2018 Equity Incentive Plan | Equity option and restricted stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | 650,000 | |||||
Market value of stock (in dollars per share) | $ 42.70 | |||||
2013 and 2018 Equity Incentive Plans | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Income tax benefit from share-based compensation expense | $ 214,000 | $ 182,000 | ||||
Expected term in years | 6 years 9 months 7 days | |||||
Remaining weighted-average vesting period | 6 years 6 months 29 days | |||||
Total intrinsic value of options exercised | $ 453,674 | |||||
2013 and 2018 Equity Incentive Plans | Equity option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award contractual life | 10 years | |||||
Expiration period | 10 years | |||||
2013 and 2018 Equity Incentive Plans | Equity option and restricted stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 62,285 | |||||
Maximum | Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected term in years | 6 years 6 months | 6 years 6 months | ||||
One year vesting | 2013 and 2018 Equity Incentive Plans | Stock Options | Directors Excluding CEO | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 1 year | |||||
One year vesting | 2013 and 2018 Equity Incentive Plans | Equity option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected term in years | 5 years 6 months | |||||
One year vesting | 2013 and 2018 Equity Incentive Plans | Equity option | Directors Excluding CEO | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 1 year | |||||
Five year vesting | 2013 and 2018 Equity Incentive Plans | Equity option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual award vesting percentage | 20.00% | |||||
Expected term in years | 6 years 6 months | |||||
Five year vesting | 2013 and 2018 Equity Incentive Plans | Equity option | Directors Excluding CEO | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 5 years | |||||
Five year vesting | 2013 and 2018 Equity Incentive Plans | Equity option | Officers And Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 5 years |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value of Options (Details) - Stock Options - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 1.97% | 1.23% |
Weighted-average grant date fair value per option granted | $ 8 | $ 8.80 |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 26.79% | 18.90% |
Risk-free interest rate | 0.42% | 1.45% |
Expected term in years | 6 years 6 months | 6 years 6 months |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | ||
Award contractual life | 10 years | |
2013 Equity Incentive Plan | ||
Shares | ||
Annual forfeiture rate | 0.31% | |
Expected forfeiture rate over contractual term | 3.10% | |
2013 and 2018 Equity Incentive Plans | ||
Shares | ||
Outstanding, beginning balance (in shares) | 287,990 | |
Less exercised (in shares) | 14,398 | |
Forfeited or Expired, Shares | 0 | |
Outstanding, ending balance (in shares) | 335,877 | 287,990 |
Expected to vest, assuming a 0.31% annual forfeiture rate (in shares) | 334,824 | |
Exercisable (in shares) | 174,988 | |
Weighted-Average Exercise Price | ||
Outstanding, beginning balance (in dollars per share) | $ 36.98 | |
Granted (in dollars per share) | 42.70 | |
Less exercised (in dollars per share) | 16.89 | |
Forfeited or expired, Weighted-Average Exercise Price (in dollars per share) | 0 | |
Outstanding, ending balance (in dollars per share) | 38.90 | $ 36.98 |
Expected to vest, assuming a 0.31% annual forfeiture rate (in dollars per share) | 38.87 | |
Exercisable (in dollars per share) | $ 28.62 | |
Weighted-Average Remaining Contractual Term In Years | ||
Outstanding, beginning balance | 6 years 9 months 7 days | |
Granted | 6 years 5 months 12 days | |
Outstanding, ending balance | 6 years 6 months 29 days | |
Expected to vest, assuming a 0.31% annual forfeiture rate, Weighted Average Remaining Contractual Term | 6 years 6 months 29 days | |
Exercisable | 4 years 8 months 8 days | |
Aggregate Intrinsic Value | ||
Beginning balance | $ 7,722,369 | |
Less exercised | 453,674 | |
Forfeited or Expired, Aggregate Intrinsic Value | 0 | |
Ending balance | 5,721,159 | $ 7,722,369 |
Expected to vest, assuming a 0.31% annual forfeiture rate | 5,713,654 | |
Exercisable | $ 4,733,571 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Awards (Details) - Restricted stock awards | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Shares | |
Nonvested, Beginning balance (in shares) | shares | 40,215 |
Granted (shares) | shares | 24,880 |
Less vested (in shares) | shares | 10,003 |
Nonvested, Ending balance (in shares) | shares | 55,092 |
Weighted-Average Grant-Date Fair Value Per Share | |
Nonvested, Beginning balance (in dollars per share) | $ / shares | $ 53.64 |
Granted (in dollars per share) | $ / shares | 42.70 |
Less vested (in dollars per share) | $ / shares | 53.67 |
Nonvested, Ending balance (in dollars per share) | $ / shares | $ 48.70 |
2018 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 3 years 7 months 6 days |
2018 Equity Incentive Plan | Directors Excluding CEO | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 1 year |
2018 Equity Incentive Plan | Directors And Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 5 years |
Business Segments - Narrative (
Business Segments - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020itemsegment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | segment | 2 |
Retail Deposit | Pacific Northwest | |
Segment Reporting Information [Line Items] | |
Number of bank branches | item | 21 |
Business Segments - Segment Fin
Business Segments - Segment Financial Results (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)employee | Dec. 31, 2019USD ($)item | |
Segment Reporting Information [Line Items] | ||
Net interest income | $ 74,120 | $ 70,308 |
Provision for loan losses | (13,036) | (2,880) |
Noninterest income | 55,359 | 23,035 |
Noninterest expense | (66,593) | (62,333) |
INCOME BEFORE PROVISION FOR INCOME TAXES | 49,850 | 28,130 |
Provision for income taxes | (10,586) | (5,413) |
NET INCOME | 39,264 | 22,717 |
Total assets | 2,113,241 | 1,713,056 |
Total average assets for year ended | $ 1,940,048 | $ 1,650,369 |
FTEs | 506 | 452 |
Home Lending | ||
Segment Reporting Information [Line Items] | ||
Net interest income | $ 5,123 | $ 6,307 |
Provision for loan losses | (2,758) | (433) |
Noninterest income | 44,808 | 13,209 |
Noninterest expense | (17,351) | (14,283) |
INCOME BEFORE PROVISION FOR INCOME TAXES | 29,822 | 4,800 |
Provision for income taxes | (6,333) | (924) |
NET INCOME | 23,489 | 3,876 |
Total assets | 460,409 | 312,404 |
Total average assets for year ended | $ 396,367 | $ 272,901 |
FTEs | 152 | 127 |
Commercial and Consumer Banking | ||
Segment Reporting Information [Line Items] | ||
Net interest income | $ 68,997 | $ 64,001 |
Provision for loan losses | (10,278) | (2,447) |
Noninterest income | 10,551 | 9,826 |
Noninterest expense | (49,242) | (48,050) |
INCOME BEFORE PROVISION FOR INCOME TAXES | 20,028 | 23,330 |
Provision for income taxes | (4,253) | (4,489) |
NET INCOME | 15,775 | 18,841 |
Total assets | 1,652,832 | 1,400,652 |
Total average assets for year ended | $ 1,543,681 | $ 1,377,468 |
FTEs | 354 | 325 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Noninterest Income | ||
Noninterest Income (in-scope of Topic 606) | $ 2,665 | $ 2,913 |
Noninterest income (out-of-scope of Topic 606) | 52,694 | 20,122 |
Total noninterest income | 55,359 | 23,035 |
Debit Card Interchange Fees | ||
Noninterest Income | ||
Noninterest Income (in-scope of Topic 606) | 1,879 | 1,848 |
Deposit service and account maintenance fees | ||
Noninterest Income | ||
Noninterest Income (in-scope of Topic 606) | $ 786 | $ 1,065 |
Goodwill and other Intangible_3
Goodwill and other Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 2,312,000 | $ 2,312,000 | |
Goodwill, Impairment Loss | 0 | 0 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Finite-Lived Intangible Assets, Gross, Total | 7,490,000 | 7,490,000 | $ 7,490,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (2,739,000) | (2,033,000) | (1,273,000) |
Core deposit intangible, net | 4,751,000 | 5,457,000 | 6,217,000 |
Amortization | (706,000) | (760,000) | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2021 | 691,000 | ||
2022 | 691,000 | ||
2023 | 691,000 | ||
2024 | 621,000 | ||
2025 | 525,000 | ||
Thereafter | 1,532,000 | ||
Total | $ 4,751,000 | 5,457,000 | $ 6,217,000 |
Anchor Bancorp | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Amortization period | 10 years | ||
Bank of America | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 2,300,000 | $ 2,300,000 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Amortization period | 9 years |
Parent Company Only Financial_3
Parent Company Only Financial Information - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | |||
Cash and due from banks | $ 11,554 | $ 13,175 | |
Other assets | 9,705 | 11,682 | |
TOTAL ASSETS | 2,113,241 | 1,713,056 | |
Liabilities and Stockholders' Equity | |||
Subordinated note, net | 10,000 | 9,885 | |
Other liabilities | 28,120 | 18,472 | |
Total liabilities | 1,883,234 | 1,512,814 | |
Total stockholders' equity | 230,007 | 200,242 | $ 180,038 |
Total liabilities and stockholders' equity | 2,113,241 | 1,713,056 | |
FS Bancorp Parent Company | |||
Assets | |||
Cash and due from banks | 14,531 | 5,568 | |
Investment in subsidiary | 225,484 | 204,570 | |
Other assets | 202 | 172 | |
TOTAL ASSETS | 240,217 | 210,310 | |
Liabilities and Stockholders' Equity | |||
Subordinated note, net | 10,000 | 9,885 | |
Other liabilities | 210 | 183 | |
Total liabilities | 10,210 | 10,068 | |
Total stockholders' equity | 230,007 | 200,242 | |
Total liabilities and stockholders' equity | $ 240,217 | $ 210,310 |
Parent Company Only Financial_4
Parent Company Only Financial Information Balance Sheets (Details - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | |||
Cash and due from banks | $ 11,554 | $ 13,175 | |
Total cash and cash equivalents | 91,576 | 45,778 | |
Certificates of deposit at other financial institutions | 12,278 | 20,902 | |
Securities available-for-sale, at fair value | 178,018 | 126,057 | |
Loans held for sale, at fair value | 166,448 | 69,699 | |
Loans receivable, net | 1,544,981 | 1,336,346 | |
Accrued interest receivable | 7,030 | 5,908 | |
Premises and equipment, net | 27,343 | 28,770 | |
Operating lease right-of-use ("ROU") assets | 4,949 | 5,016 | |
Federal Home Loan Bank ("FHLB") stock, at cost | 7,439 | 8,045 | |
Other real estate owned ("OREO") | 90 | 168 | |
Bank owned life insurance ("BOLI"), net | 36,226 | 35,356 | |
Servicing rights, held at the lower of cost or fair value | 12,595 | 11,560 | |
Goodwill | 2,312 | 2,312 | |
Core deposit intangible, net | 4,751 | 5,457 | $ 6,217 |
Other assets | 9,705 | 11,682 | |
TOTAL ASSETS | 2,113,241 | 1,713,056 | |
LIABILITIES | |||
Noninterest-bearing accounts | 362,853 | 273,602 | |
Interest-bearing accounts | 1,311,218 | 1,118,806 | |
Total deposits | 1,674,071 | 1,392,408 | |
Borrowings | 165,809 | 84,864 | |
Principal amount | 10,000 | 10,000 | |
Unamortized debt issuance costs | (115) | ||
Total subordinated note less unamortized debt issuance costs | 10,000 | 9,885 | |
Operating lease liabilities | 5,176 | 5,214 | |
Deferred tax liability, net | 58 | 1,971 | |
Other liabilities | 28,120 | 18,472 | |
Total liabilities | 1,883,234 | 1,512,814 | |
COMMITMENTS AND CONTINGENCIES (NOTE 12) | |||
STOCKHOLDERS' EQUITY | |||
Preferred stock, $.01 par value; 5,000,000 shares authorized; none issued or outstanding | |||
Common stock, $.01 par value; 45,000,000 shares authorized; 4,237,956 and 4,459,041 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively | 42 | 44 | |
Additional paid-in capital | 81,318 | 89,268 | |
Retained earnings | 146,405 | 110,715 | |
Accumulated other comprehensive income, net of tax | 2,533 | 788 | |
Unearned shares - Employee Stock Ownership Plan ("ESOP") | (291) | (573) | |
Total stockholders' equity | 230,007 | 200,242 | $ 180,038 |
Total liabilities and stockholders' equity | $ 2,113,241 | $ 1,713,056 |
Parent Company Only Financial_5
Parent Company Only Financial Information - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Income Statements, Captions [Line Items] | ||
Interest from subsidiary | $ 84,128 | $ 84,706 |
Interest expense on subordinated note | (776) | (679) |
Dividends received from subsidiary | 4,709 | 4,919 |
Income tax benefit | 10,586 | 5,413 |
NET INCOME | 39,264 | 22,717 |
FS Bancorp Parent Company | ||
Condensed Income Statements, Captions [Line Items] | ||
Interest from subsidiary | 2 | |
Interest expense on subordinated note | (776) | (679) |
Dividends received from subsidiary | 20,862 | 3,935 |
Other expenses | (195) | (142) |
Income before income tax benefit and equity in undistributed net income of subsidiary | 19,891 | 3,116 |
Income tax benefit | 204 | 172 |
Equity in undistributed earnings of subsidiary | 19,169 | 19,429 |
NET INCOME | $ 39,264 | $ 22,717 |
Parent Company Only Financial_6
Parent Company Only Financial Information - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 39,264 | $ 22,717 |
ESOP compensation expense for allocated shares | 1,307 | 1,506 |
Other assets | 5,511 | (4,589) |
Other liabilities | 5,714 | (2,443) |
Net cash (used by) from operating activities | (32,317) | 9,177 |
Cash flows from investing activities: | ||
Net cash used by investing activities | (270,690) | (55,201) |
Cash flows used by financing activities: | ||
(Disbursements) proceeds from stock options exercised, net | (161) | 705 |
Common stock repurchased for employee/director taxes paid on restricted stock awards | (34) | (204) |
Common stock repurchased | (9,802) | (4,800) |
Dividends paid on common stock | (3,574) | (2,856) |
Net cash from financing activities | 348,805 | 59,023 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 45,798 | 12,999 |
CASH AND CASH EQUIVALENTS, beginning of year | 45,778 | 32,779 |
CASH AND CASH EQUIVALENTS, end of year | 91,576 | 45,778 |
FS Bancorp Parent Company | ||
Cash flows from operating activities: | ||
Net income | 39,264 | 22,717 |
Equity in undistributed net income of subsidiary | (19,169) | (19,429) |
Amortization | 115 | 20 |
ESOP compensation expense for allocated shares | 1,025 | 1,231 |
Share-based compensation expense related to stock options and restricted stock | 1,020 | 869 |
Other assets | (30) | 3 |
Other liabilities | 27 | 11 |
Net cash (used by) from operating activities | 22,252 | 5,422 |
Cash flows from investing activities: | ||
Net proceeds from ESOP | 282 | 275 |
Net cash used by investing activities | 282 | 275 |
Cash flows used by financing activities: | ||
(Disbursements) proceeds from stock options exercised, net | (161) | 705 |
Common stock repurchased for employee/director taxes paid on restricted stock awards | (34) | (204) |
Common stock repurchased | (9,802) | (4,800) |
Dividends paid on common stock | (3,574) | (2,856) |
Net cash from financing activities | (13,571) | (7,155) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 8,963 | (1,458) |
CASH AND CASH EQUIVALENTS, beginning of year | 5,568 | 7,026 |
CASH AND CASH EQUIVALENTS, end of year | $ 14,531 | $ 5,568 |