x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland | 75-3199276 |
(State or Other Jurisdiction of Incorporation) | (I.R.S. Employer Identification No.) |
15W060 North Frontage Road, Burr Ridge, Illinois 60527 | |
(Address of Principal Executive Offices) |
Large accelerated filer | ¨ | Accelerated filer | x | |||
Non-accelerated filer | ¨ | Smaller reporting company | ¨ | |||
Emerging growth company | ¨ |
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March 31, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Cash and due from other financial institutions | $ | 10,613 | $ | 13,572 | |||
Interest-bearing deposits in other financial institutions | 81,963 | 114,020 | |||||
Cash and cash equivalents | 92,576 | 127,592 | |||||
Securities, at fair value | 102,170 | 93,383 | |||||
Equity securities, at fair value | 491 | — | |||||
Loans receivable, net of allowance for loan losses: March 31, 2018, $8,341 and December 31, 2017, $8,366 | 1,277,553 | 1,314,651 | |||||
Other real estate owned, net | 1,802 | 2,351 | |||||
Stock in Federal Home Loan Bank ("FHLB") and Federal Reserve Bank ("FRB"), at cost | 8,290 | 8,290 | |||||
Premises held-for-sale | 5,581 | 5,667 | |||||
Premises and equipment, net | 24,628 | 24,856 | |||||
Accrued interest receivable | 4,900 | 4,619 | |||||
Core deposit intangible | 164 | 286 | |||||
Bank owned life insurance | 22,925 | 22,859 | |||||
Deferred taxes | 11,363 | 12,563 | |||||
Other assets | 7,486 | 8,441 | |||||
Total assets | $ | 1,559,929 | $ | 1,625,558 | |||
Liabilities | |||||||
Deposits | |||||||
Noninterest-bearing | $ | 232,593 | $ | 234,354 | |||
Interest-bearing | 1,045,414 | 1,105,697 | |||||
Total deposits | 1,278,007 | 1,340,051 | |||||
Borrowings | 60,983 | 60,768 | |||||
Advance payments by borrowers for taxes and insurance | 9,558 | 11,645 | |||||
Accrued interest payable and other liabilities | 13,029 | 15,460 | |||||
Total liabilities | 1,361,577 | 1,427,924 | |||||
Stockholders’ equity | |||||||
Preferred Stock, $0.01 par value, 25,000,000 shares authorized, none issued or outstanding | — | — | |||||
Common Stock, $0.01 par value, 100,000,000 shares authorized; 17,877,223 shares issued at March 31, 2018 and 17,958,723 issued at December 31, 2017 | 178 | 179 | |||||
Additional paid-in capital | 152,489 | 153,811 | |||||
Retained earnings | 45,397 | 43,274 | |||||
Accumulated other comprehensive income | 288 | 370 | |||||
Total stockholders’ equity | 198,352 | 197,634 | |||||
Total liabilities and stockholders’ equity | $ | 1,559,929 | $ | 1,625,558 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Interest and dividend income | |||||||
Loans, including fees | $ | 13,820 | $ | 12,760 | |||
Securities | 464 | 349 | |||||
Other | 464 | 253 | |||||
Total interest income | 14,748 | 13,362 | |||||
Interest expense | |||||||
Deposits | 1,525 | 1,180 | |||||
Borrowings | 202 | 96 | |||||
Total interest expense | 1,727 | 1,276 | |||||
Net interest income | 13,021 | 12,086 | |||||
Provision for (recovery of) loan losses | (258 | ) | 161 | ||||
Net interest income after provision for (recovery of) loan losses | 13,279 | 11,925 | |||||
Noninterest income | |||||||
Deposit service charges and fees | 978 | 950 | |||||
Loan fee income | 70 | 60 | |||||
Commercial mortgage brokerage fees | 41 | — | |||||
Residential mortgage banking fees | 30 | 44 | |||||
Trust and insurance commissions and annuities income | 213 | 249 | |||||
Earnings on bank owned life insurance | 66 | 63 | |||||
Other | 141 | 178 | |||||
Total noninterest income | 1,539 | 1,544 | |||||
Noninterest expense | |||||||
Compensation and benefits | 5,322 | 6,352 | |||||
Office occupancy and equipment | 1,731 | 1,622 | |||||
Advertising and public relations | 143 | 381 | |||||
Information technology | 641 | 753 | |||||
Supplies, telephone, and postage | 333 | 332 | |||||
Amortization of intangibles | 122 | 129 | |||||
Nonperforming asset management | 202 | 104 | |||||
Operations of other real estate owned | 161 | 213 | |||||
FDIC insurance premiums | 119 | 187 | |||||
Other | 1,185 | 1,193 | |||||
Total noninterest expense | 9,959 | 11,266 | |||||
Income before income taxes | 4,859 | 2,203 | |||||
Income tax expense | 1,300 | 322 | |||||
Net income | $ | 3,559 | $ | 1,881 | |||
Basic earnings per common share | $ | 0.20 | $ | 0.10 | |||
Diluted earnings per common share | $ | 0.20 | $ | 0.10 | |||
Weighted average common shares outstanding | 17,930,639 | 18,642,054 | |||||
Diluted weighted average common shares outstanding | 17,931,100 | 18,647,516 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Net income | $ | 3,559 | $ | 1,881 | |||
Unrealized holding loss arising during the period | (104 | ) | (20 | ) | |||
Tax effect | 22 | 7 | |||||
Net of tax | (82 | ) | (13 | ) | |||
Comprehensive income | $ | 3,477 | $ | 1,868 |
Common Stock | Additional Paid-in Capital | Retained Earnings | Unearned Employee Stock Ownership Plan Shares | Accumulated Other Comprehen-sive Income | Total | ||||||||||||||||||
Balance at January 1, 2017 | $ | 192 | $ | 173,047 | $ | 39,483 | $ | (8,318 | ) | $ | 376 | $ | 204,780 | ||||||||||
Net income | — | — | 1,881 | — | — | 1,881 | |||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (13 | ) | (13 | ) | |||||||||||||||
Net exercise of stock options (192,215 shares) | 2 | (1,220 | ) | — | — | — | (1,218 | ) | |||||||||||||||
Prepayment of ESOP Share Acquisition Loan | (8 | ) | (7,185 | ) | 8,318 | — | 1,125 | ||||||||||||||||
Repurchase and retirement of common stock (232,045 shares) | (2 | ) | (3,377 | ) | — | — | — | (3,379 | ) | ||||||||||||||
Cash dividends declared on common stock ($0.06 per share) | — | — | (1,155 | ) | — | — | (1,155 | ) | |||||||||||||||
Balance at March 31, 2017 | $ | 184 | $ | 161,265 | $ | 40,209 | $ | — | $ | 363 | $ | 202,021 | |||||||||||
Balance at January 1, 2018 | $ | 179 | $ | 153,811 | $ | 43,274 | $ | — | $ | 370 | $ | 197,634 | |||||||||||
Net income | — | — | 3,559 | — | — | 3,559 | |||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (82 | ) | (82 | ) | |||||||||||||||
Repurchase and retirement of common stock (81,500 shares) | (1 | ) | (1,322 | ) | — | — | — | (1,323 | ) | ||||||||||||||
Cash dividends declared on common stock ($0.08 per share) | — | — | (1,436 | ) | — | — | (1,436 | ) | |||||||||||||||
Balance at March 31, 2018 | $ | 178 | $ | 152,489 | $ | 45,397 | $ | — | $ | 288 | $ | 198,352 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Cash flows from operating activities | |||||||
Net income | $ | 3,559 | $ | 1,881 | |||
Adjustments to reconcile to net income to net cash from operating activities | |||||||
Provision for (recovery of) loan losses | (258 | ) | 161 | ||||
Prepayment of ESOP Share Acquisition Loan | — | 1,125 | |||||
Depreciation and amortization | 916 | 958 | |||||
Amortization of premiums and discounts on securities and loans | 3 | (65 | ) | ||||
Amortization of core deposit intangible | 122 | 129 | |||||
Amortization of servicing assets | 27 | 31 | |||||
Net change in net deferred loan origination costs | 36 | 129 | |||||
Loss on sale of other real estate owned | 21 | 16 | |||||
Net gain on sale of loans | — | (7 | ) | ||||
Loans originated for sale | — | (239 | ) | ||||
Proceeds from sale of loans | — | 246 | |||||
Other real estate owned valuation adjustments | 25 | 20 | |||||
Net change in: | |||||||
Accrued interest receivable | (281 | ) | (97 | ) | |||
Earnings on bank owned life insurance | (66 | ) | (63 | ) | |||
Other assets | 2,037 | 1,834 | |||||
Accrued interest payable and other liabilities | (2,431 | ) | (2,701 | ) | |||
Net cash from operating activities | 3,710 | 3,358 | |||||
Cash flows from investing activities | |||||||
Securities | |||||||
Proceeds from maturities | 27,499 | 13,623 | |||||
Proceeds from principal repayments | 1,030 | 637 | |||||
Purchases of securities | (37,923 | ) | (17,302 | ) | |||
Loans receivable | |||||||
Loan participations sold | — | 1,615 | |||||
Principal payments on loans receivable | 226,439 | 136,090 | |||||
Purchase of loans | — | (20,406 | ) | ||||
Originated for investment | (189,659 | ) | (125,813 | ) | |||
Proceeds of redemption of FHLB stock | — | 3,514 | |||||
Purchase of FHLB and FRB stock | — | (11 | ) | ||||
Proceeds from sale of other real estate owned | 713 | 494 | |||||
Purchase of premises and equipment, net | (150 | ) | (179 | ) | |||
Net cash from (used in) investing activities | 27,949 | (7,738 | ) |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Cash flows from financing activities | |||||||
Net change in deposits | $ | (62,044 | ) | $ | (10,108 | ) | |
Net change in borrowings | 215 | 977 | |||||
Net change in advance payments by borrowers for taxes and insurance | (2,087 | ) | (1,973 | ) | |||
Repurchase and retirement of common stock | (1,323 | ) | (3,379 | ) | |||
Cash dividends paid on common stock | (1,436 | ) | (1,155 | ) | |||
Shares retired for tax liability | — | (1,200 | ) | ||||
Net cash used in financing activities | (66,675 | ) | (16,838 | ) | |||
Net change in cash and cash equivalents | (35,016 | ) | (21,218 | ) | |||
Beginning cash and cash equivalents | 127,592 | 96,684 | |||||
Ending cash and cash equivalents | $ | 92,576 | $ | 75,466 | |||
Supplemental disclosures of cash flow information: | |||||||
Interest paid | $ | 1,694 | $ | 1,243 | |||
Income taxes paid | 43 | 1 | |||||
Loans transferred to other real estate owned | 562 | 1,936 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Net income available to common stockholders | $ | 3,559 | $ | 1,881 | |||
Average common shares outstanding | 17,931,579 | 19,243,941 | |||||
Less: | |||||||
Unearned ESOP shares | — | (600,947 | ) | ||||
Unvested restricted stock shares | (940 | ) | (940 | ) | |||
Weighted average common shares outstanding | 17,930,639 | 18,642,054 | |||||
Add - Net effect of dilutive unvested restricted stock | 461 | 5,462 | |||||
Diluted weighted average common shares outstanding | 17,931,100 | 18,647,516 | |||||
Basic earnings per common share | $ | 0.20 | $ | 0.10 | |||
Diluted earnings per common share | $ | 0.20 | $ | 0.10 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
March 31, 2018 | |||||||||||||||
Certificates of deposit | $ | 86,340 | $ | — | $ | — | $ | 86,340 | |||||||
Mortgage-backed securities - residential | 11,146 | 441 | (43 | ) | 11,544 | ||||||||||
Collateralized mortgage obligations - residential | 4,272 | 16 | (11 | ) | 4,277 | ||||||||||
SBA-guaranteed loan participation certificates | 9 | — | — | 9 | |||||||||||
$ | 101,767 | $ | 457 | $ | (54 | ) | $ | 102,170 | |||||||
December 31, 2017 | |||||||||||||||
Certificates of deposit | $ | 75,916 | $ | — | $ | — | $ | 75,916 | |||||||
Equity mutual fund | 500 | — | (1 | ) | 499 | ||||||||||
Mortgage-backed securities - residential | 11,969 | 520 | (17 | ) | 12,472 | ||||||||||
Collateralized mortgage obligations - residential | 4,481 | 16 | (11 | ) | 4,486 | ||||||||||
SBA-guaranteed loan participation certificates | 10 | — | — | 10 | |||||||||||
$ | 92,876 | $ | 536 | $ | (29 | ) | $ | 93,383 |
March 31, 2018 | |||||||
Amortized Cost | Fair Value | ||||||
Due in one year or less | $ | 86,340 | $ | 86,340 | |||
Mortgage-backed securities - residential | 11,146 | 11,544 | |||||
Collateralized mortgage obligations - residential | 4,272 | 4,277 | |||||
SBA-guaranteed loan participation certificates | 9 | 9 | |||||
$ | 101,767 | $ | 102,170 |
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
March 31, 2018 | |||||||||||||||||||||||
Mortgage-backed securities - residential | $ | — | $ | — | $ | 1,111 | $ | (43 | ) | $ | 1,111 | $ | (43 | ) | |||||||||
Collateralized mortgage obligations - residential | — | — | 1,983 | (11 | ) | 1,983 | (11 | ) | |||||||||||||||
$ | — | $ | — | $ | 3,094 | $ | (54 | ) | $ | 3,094 | $ | (54 | ) | ||||||||||
December 31, 2017 | |||||||||||||||||||||||
Equity mutual fund | $ | 499 | $ | (1 | ) | $ | — | $ | — | $ | 499 | $ | (1 | ) | |||||||||
Mortgage-backed securities - residential | — | — | 1,149 | (17 | ) | 1,149 | (17 | ) | |||||||||||||||
Collateralized mortgage obligations - residential | — | — | 2,083 | (11 | ) | 2,083 | (11 | ) | |||||||||||||||
$ | 499 | $ | (1 | ) | $ | 3,232 | $ | (28 | ) | $ | 3,731 | $ | (29 | ) |
March 31, 2018 | December 31, 2017 | ||||||
One-to-four family residential real estate | $ | 92,056 | $ | 97,814 | |||
Multi-family mortgage | 578,144 | 588,383 | |||||
Nonresidential real estate | 163,856 | 169,971 | |||||
Construction and land | 1,328 | 1,358 | |||||
Commercial loans | 162,564 | 152,552 | |||||
Commercial leases | 285,222 | 310,076 | |||||
Consumer | 1,494 | 1,597 | |||||
1,284,664 | 1,321,751 | ||||||
Net deferred loan origination costs | 1,230 | 1,266 | |||||
Allowance for loan losses | (8,341 | ) | (8,366 | ) | |||
Loans, net | $ | 1,277,553 | $ | 1,314,651 |
Allowance for loan losses | Loan Balances | ||||||||||||||||||||||
Individually evaluated for impairment | Collectively evaluated for impairment | Total | Individually evaluated for impairment | Collectively evaluated for impairment | Total | ||||||||||||||||||
March 31, 2018 | |||||||||||||||||||||||
One-to-four family residential real estate | $ | — | $ | 765 | $ | 765 | $ | 3,576 | $ | 88,480 | $ | 92,056 | |||||||||||
Multi-family mortgage | — | 3,866 | 3,866 | 947 | 577,197 | 578,144 | |||||||||||||||||
Nonresidential real estate | — | 1,577 | 1,577 | — | 163,856 | 163,856 | |||||||||||||||||
Construction and land | — | 32 | 32 | — | 1,328 | 1,328 | |||||||||||||||||
Commercial loans | — | 1,441 | 1,441 | — | 162,564 | 162,564 | |||||||||||||||||
Commercial leases | — | 650 | 650 | — | 285,222 | 285,222 | |||||||||||||||||
Consumer | — | 10 | 10 | — | 1,494 | 1,494 | |||||||||||||||||
$ | — | $ | 8,341 | $ | 8,341 | $ | 4,523 | $ | 1,280,141 | 1,284,664 | |||||||||||||
Net deferred loan origination costs | 1,230 | ||||||||||||||||||||||
Allowance for loan losses | (8,341 | ) | |||||||||||||||||||||
Loans, net | $ | 1,277,553 |
Allowance for loan losses | Loan Balances | ||||||||||||||||||||||
Individually evaluated for impairment | Collectively evaluated for impairment | Total | Individually evaluated for impairment | Collectively evaluated for impairment | Total | ||||||||||||||||||
December 31, 2017 | |||||||||||||||||||||||
One-to-four family residential real estate | $ | — | $ | 850 | $ | 850 | $ | 4,265 | $ | 93,549 | $ | 97,814 | |||||||||||
Multi-family mortgage | — | 3,849 | 3,849 | 949 | 587,434 | 588,383 | |||||||||||||||||
Nonresidential real estate | — | 1,605 | 1,605 | — | 169,971 | 169,971 | |||||||||||||||||
Construction and land | — | 32 | 32 | — | 1,358 | 1,358 | |||||||||||||||||
Commercial loans | — | 1,357 | 1,357 | — | 152,552 | 152,552 | |||||||||||||||||
Commercial leases | — | 655 | 655 | — | 310,076 | 310,076 | |||||||||||||||||
Consumer | — | 18 | 18 | — | 1,597 | 1,597 | |||||||||||||||||
$ | — | $ | 8,366 | $ | 8,366 | $ | 5,214 | $ | 1,316,537 | 1,321,751 | |||||||||||||
Net deferred loan origination costs | 1,266 | ||||||||||||||||||||||
Allowance for loan losses | (8,366 | ) | |||||||||||||||||||||
Loans, net | $ | 1,314,651 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Beginning balance | $ | 8,366 | $ | 8,127 | |||
Loans charged off: | |||||||
One-to-four family residential real estate | (97 | ) | (171 | ) | |||
Multi-family mortgage | — | (3 | ) | ||||
Nonresidential real estate | — | (165 | ) | ||||
(97 | ) | (339 | ) | ||||
Recoveries: | |||||||
One-to-four family residential real estate | 99 | 6 | |||||
Multi-family mortgage | 8 | 11 | |||||
Commercial loans | 223 | 5 | |||||
330 | 22 | ||||||
Net recoveries (charge-offs) | 233 | (317 | ) | ||||
Provision for (recovery of) loan losses | (258 | ) | 161 | ||||
Ending balance | $ | 8,341 | $ | 7,971 |
Three months ended March 31, 2018 | |||||||||||||||||||||||
Loan Balance | Recorded Investment | Partial Charge-off | Allowance for Loan Losses Allocated | Average Investment in Impaired Loans | Interest Income Recognized | ||||||||||||||||||
March 31, 2018 | |||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||
One-to-four family residential real estate | $ | 4,211 | $ | 3,556 | $ | 651 | $ | — | $ | 4,002 | $ | 15 | |||||||||||
Multi-family mortgage - Illinois | 952 | 950 | — | — | 952 | 11 | |||||||||||||||||
$ | 5,163 | $ | 4,506 | $ | 651 | $ | — | $ | 4,954 | $ | 26 |
Year ended December 31, 2017 | |||||||||||||||||||||||
Loan Balance | Recorded Investment | Partial Charge-off | Allowance for Loan Losses Allocated | Average Investment in Impaired Loans | Interest Income Recognized | ||||||||||||||||||
December 31, 2017 | |||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||
One-to-four family residential real estate | $ | 5,049 | $ | 4,248 | $ | 806 | $ | — | $ | 4,212 | $ | 197 | |||||||||||
Multi-family mortgage - Illinois | 958 | 948 | — | — | 847 | 41 | |||||||||||||||||
$ | 6,007 | $ | 5,196 | $ | 806 | $ | — | $ | 5,059 | $ | 238 |
Loan Balance | Recorded Investment | Loans Past Due Over 90 Days, Still Accruing | |||||||||
March 31, 2018 | |||||||||||
One-to-four family residential real estate | $ | 1,675 | $ | 1,543 | $ | — | |||||
One-to-four family residential real estate – non-owner occupied | 86 | 46 | — | ||||||||
Multi-family mortgage - Illinois | 375 | 369 | — | ||||||||
$ | 2,136 | $ | 1,958 | $ | — | ||||||
December 31, 2017 | |||||||||||
One-to-four family residential real estate | $ | 3,413 | $ | 1,918 | $ | — | |||||
One-to-four family residential real estate – non-owner occupied | 308 | 109 | — | ||||||||
Multi-family mortgage - Illinois | 376 | 363 | — | ||||||||
$ | 4,097 | $ | 2,390 | $ | — |
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or Greater Past Due | Total Past Due | Loans Not Past Due | Total | ||||||||||||||||||
One-to-four family residential real estate loans | $ | 1,875 | $ | 58 | $ | 1,398 | $ | 3,331 | $ | 68,216 | $ | 71,547 | |||||||||||
One-to-four family residential real estate loans – non-owner occupied | 368 | 10 | 46 | 424 | 19,676 | 20,100 | |||||||||||||||||
Multi-family mortgage - Illinois | 268 | — | 271 | 539 | 273,950 | 274,489 | |||||||||||||||||
Multi-family mortgage - Other | — | — | — | — | 299,725 | 299,725 | |||||||||||||||||
Nonresidential real estate | 940 | — | — | 940 | 161,265 | 162,205 | |||||||||||||||||
Construction | — | — | — | — | 1,096 | 1,096 | |||||||||||||||||
Land | — | — | — | — | 234 | 234 | |||||||||||||||||
Commercial loans: | |||||||||||||||||||||||
Regional commercial banking | — | — | — | — | 48,160 | 48,160 | |||||||||||||||||
Health care | — | — | — | — | 69,980 | 69,980 | |||||||||||||||||
Direct commercial lessor | — | — | — | — | 44,939 | 44,939 | |||||||||||||||||
Commercial leases: | |||||||||||||||||||||||
Investment rated commercial leases | 1,727 | 152 | — | 1,879 | 185,386 | 187,265 | |||||||||||||||||
Other commercial leases | 572 | 255 | — | 827 | 98,900 | 99,727 | |||||||||||||||||
Consumer | — | 22 | — | 22 | 1,481 | 1,503 | |||||||||||||||||
$ | 5,750 | $ | 497 | $ | 1,715 | $ | 7,962 | $ | 1,273,008 | $ | 1,280,970 |
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or Greater Past Due | Total Past Due | Loans Not Past Due | Total | ||||||||||||||||||
One-to-four family residential real estate loans | $ | 86 | $ | 99 | $ | 1,801 | $ | 1,986 | $ | 74,216 | $ | 76,202 | |||||||||||
One-to-four family residential real estate loans – non-owner occupied | 10 | 3 | 86 | 99 | 20,944 | 21,043 | |||||||||||||||||
Multi-family mortgage - Illinois | 172 | — | 364 | 536 | 287,171 | 287,707 | |||||||||||||||||
Multi-family mortgage - Other | — | — | — | — | 296,440 | 296,440 | |||||||||||||||||
Nonresidential real estate | 608 | — | — | 608 | 166,071 | 166,679 | |||||||||||||||||
Construction | — | — | — | — | 1,103 | 1,103 | |||||||||||||||||
Land | — | — | — | — | 259 | 259 | |||||||||||||||||
Commercial loans: | |||||||||||||||||||||||
Regional commercial banking | — | — | — | — | 40,935 | 40,935 | |||||||||||||||||
Health care | — | — | — | — | 71,738 | 71,738 | |||||||||||||||||
Direct commercial lessor | — | — | — | — | 40,237 | 40,237 | |||||||||||||||||
Commercial leases: | |||||||||||||||||||||||
Investment rated commercial leases | 934 | — | — | 934 | 207,747 | 208,681 | |||||||||||||||||
Other commercial leases | 288 | — | — | 288 | 102,873 | 103,161 | |||||||||||||||||
Consumer | — | — | — | — | 1,605 | 1,605 | |||||||||||||||||
$ | 2,098 | $ | 102 | $ | 2,251 | $ | 4,451 | $ | 1,311,339 | $ | 1,315,790 |
March 31, 2018 | December 31, 2017 | ||||||
One-to-four family residential real estate - nonaccrual | $ | 17 | $ | 17 |
Pass | Special Mention | Substandard | Nonaccrual | Total | |||||||||||||||
One-to-four family residential real estate loans | $ | 70,004 | $ | — | $ | 323 | $ | 1,539 | $ | 71,866 | |||||||||
One-to-four family residential real estate loans – non-owner occupied | 20,105 | — | 39 | 46 | 20,190 | ||||||||||||||
Multi-family mortgage loans - Illinois | 275,552 | — | 222 | 370 | 276,144 | ||||||||||||||
Multi-family mortgage loans - Other | 302,000 | — | — | — | 302,000 | ||||||||||||||
Nonresidential real estate loans | 163,707 | — | 149 | — | 163,856 | ||||||||||||||
Construction loans | 1,093 | — | — | — | 1,093 | ||||||||||||||
Land loans | 235 | — | — | — | 235 | ||||||||||||||
Commercial loans: | |||||||||||||||||||
Regional commercial banking | 43,467 | 4,644 | — | — | 48,111 | ||||||||||||||
Health care | 67,669 | — | 2,258 | — | 69,927 | ||||||||||||||
Direct commercial lessor | 44,526 | — | — | — | 44,526 | ||||||||||||||
Commercial leases: | |||||||||||||||||||
Investment rated commercial leases | 186,052 | — | — | — | 186,052 | ||||||||||||||
Other commercial leases | 99,170 | — | — | — | 99,170 | ||||||||||||||
Consumer | 1,494 | — | — | — | 1,494 | ||||||||||||||
$ | 1,275,074 | $ | 4,644 | $ | 2,991 | $ | 1,955 | $ | 1,284,664 |
Pass | Special Mention | Substandard | Nonaccrual | Total | |||||||||||||||
One-to-four family residential real estate loans | $ | 74,437 | $ | — | $ | 255 | $ | 1,914 | $ | 76,606 | |||||||||
One-to-four family residential real estate loans – non-owner occupied | 21,059 | — | 40 | 109 | 21,208 | ||||||||||||||
Multi-family mortgage loans - Illinois | 290,765 | — | 225 | 368 | 291,358 | ||||||||||||||
Multi-family mortgage loans - Other | 297,025 | — | — | — | 297,025 | ||||||||||||||
Nonresidential real estate loans | 169,817 | — | 154 | — | 169,971 | ||||||||||||||
Construction loans | 1,099 | — | — | — | 1,099 | ||||||||||||||
Land loans | 259 | — | — | — | 259 | ||||||||||||||
Commercial loans: | |||||||||||||||||||
Regional commercial banking | 36,373 | 4,528 | — | — | 40,901 | ||||||||||||||
Health care | 69,480 | — | 2,248 | — | 71,728 | ||||||||||||||
Direct commercial lessor | 39,923 | — | — | — | 39,923 | ||||||||||||||
Commercial leases: | |||||||||||||||||||
Investment rated commercial leases | 207,460 | — | — | — | 207,460 | ||||||||||||||
Other commercial leases | 102,616 | — | — | — | 102,616 | ||||||||||||||
Consumer | 1,597 | — | — | — | 1,597 | ||||||||||||||
$ | 1,311,910 | $ | 4,528 | $ | 2,922 | $ | 2,391 | $ | 1,321,751 |
March 31, 2018 | December 31, 2017 | ||||||||||||||||||||||
Balance | Valuation Allowance | Net OREO Balance | Balance | Valuation Allowance | Net OREO Balance | ||||||||||||||||||
One–to–four family residential | $ | 935 | $ | — | $ | 935 | $ | 836 | $ | (9 | ) | $ | 827 | ||||||||||
Nonresidential real estate | 1,140 | (277 | ) | 863 | 1,772 | (252 | ) | 1,520 | |||||||||||||||
Land | 48 | (44 | ) | 4 | 48 | (44 | ) | 4 | |||||||||||||||
$ | 2,123 | $ | (321 | ) | $ | 1,802 | $ | 2,656 | $ | (305 | ) | $ | 2,351 |
For the Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Beginning balance | $ | 2,351 | $ | 3,895 | |||
New foreclosed properties | 562 | 1,936 | |||||
Valuation adjustments | (25 | ) | (20 | ) | |||
Sales and payments | (1,086 | ) | (510 | ) | |||
Ending balance | $ | 1,802 | $ | 5,301 |
For the Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Beginning balance | $ | 305 | $ | 449 | |||
Additions charged to expense | 25 | 20 | |||||
Reductions from sales of OREO | (9 | ) | (59 | ) | |||
Ending balance | $ | 321 | $ | 410 |
Overnight and Continuous | Up to 30 days | 30 - 90 days | Greater Than 90 days | Total | ||||||||||||||||
March 31, 2018 | ||||||||||||||||||||
Repurchase agreements and repurchase-to-maturity transactions | $ | 983 | $ | — | $ | — | $ | — | $ | 983 | ||||||||||
Gross amount of recognized liabilities for repurchase agreements in Statement of Condition | $ | 983 | ||||||||||||||||||
December 31, 2017 | ||||||||||||||||||||
Repurchase agreements and repurchase-to-maturity transactions | $ | 768 | $ | — | $ | — | $ | — | $ | 768 | ||||||||||
Gross amount of recognized liabilities for repurchase agreements in Statement of Condition | $ | 768 |
• | Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. |
• | Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. |
• | Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. |
Fair Value Measurements Using | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value | ||||||||||||
March 31, 2018 | |||||||||||||||
Securities: | |||||||||||||||
Certificates of deposit | $ | — | $ | 86,340 | $ | — | $ | 86,340 | |||||||
Equity mutual fund | 491 | — | — | 491 | |||||||||||
Mortgage-backed securities – residential | — | 11,544 | — | 11,544 | |||||||||||
Collateralized mortgage obligations – residential | — | 4,277 | — | 4,277 | |||||||||||
SBA-guaranteed loan participation certificates | — | 9 | — | 9 | |||||||||||
$ | 491 | $ | 102,170 | $ | — | $ | 102,661 | ||||||||
December 31, 2017 | |||||||||||||||
Securities: | |||||||||||||||
Certificates of deposit | $ | — | $ | 75,916 | $ | — | $ | 75,916 | |||||||
Equity mutual fund | 499 | — | — | 499 | |||||||||||
Mortgage-backed securities - residential | — | 12,472 | — | 12,472 | |||||||||||
Collateralized mortgage obligations – residential | — | 4,486 | — | 4,486 | |||||||||||
SBA-guaranteed loan participation certificates | — | 10 | — | 10 | |||||||||||
$ | 499 | $ | 92,884 | $ | — | $ | 93,383 |
Fair Value Measurement Using | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value | ||||||||||||
March 31, 2018 | |||||||||||||||
Other real estate owned - nonresidential real estate | $ | — | $ | — | $ | 409 | $ | 409 | |||||||
December 31, 2017 | |||||||||||||||
Other real estate owned: | |||||||||||||||
One-to-four family residential real estate | $ | — | $ | — | $ | 102 | $ | 102 | |||||||
Nonresidential real estate | — | — | 814 | 814 | |||||||||||
$ | — | $ | — | $ | 916 | $ | 916 |
Fair Value | Valuation Technique(s) | Significant Unobservable Input(s) | Range (Weighted Average) | ||||||
March 31, 2018 | |||||||||
Other real estate owned - nonresidential real estate loans | $ | 409 | Sales comparison | Comparison between sales and income approaches | 12.70% to 26.77% (13.7%) | ||||
December 31, 2017 | |||||||||
Other real estate owned | |||||||||
One-to-four family residential real estate | $ | 102 | Sales comparison | Discount applied to valuation | 5.6% | ||||
Nonresidential real estate | 814 | Sales comparison | Comparison between sales and income approaches | -3.66% to 15.22% (11.0%) | |||||
$ | 916 |
Fair Value Measurements at March 31, 2018 Using: | |||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Financial assets | |||||||||||||||||||
Cash and cash equivalents | $ | 92,576 | $ | 10,613 | $ | 81,963 | $ | — | $ | 92,576 | |||||||||
Securities | 102,661 | 491 | 102,170 | — | 102,661 | ||||||||||||||
Loans receivable, net of allowance for loan losses | 1,277,553 | — | — | 1,276,635 | 1,276,635 | ||||||||||||||
FHLB and FRB stock | 8,290 | — | — | — | N/A | ||||||||||||||
Accrued interest receivable | 4,900 | — | 4,900 | — | 4,900 | ||||||||||||||
Financial liabilities | |||||||||||||||||||
Noninterest-bearing demand deposits | $ | 232,593 | $ | — | $ | 232,593 | $ | — | $ | 232,593 | |||||||||
NOW and money market accounts | 573,886 | — | 573,886 | — | 573,886 | ||||||||||||||
Savings deposits | 160,093 | — | 160,093 | — | 160,093 | ||||||||||||||
Certificates of deposit | 311,435 | — | 308,904 | — | 308,904 | ||||||||||||||
Borrowings | 60,983 | — | 60,832 | — | 60,832 | ||||||||||||||
Accrued interest payable | 180 | — | 180 | — | 180 |
Fair Value Measurements at December 31, 2017 Using: | |||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Financial assets | |||||||||||||||||||
Cash and cash equivalents | $ | 127,592 | $ | 13,572 | $ | 114,020 | $ | — | $ | 127,592 | |||||||||
Securities | 93,383 | 499 | 92,884 | — | 93,383 | ||||||||||||||
Loans receivable, net of allowance for loan losses | 1,314,651 | — | 1,323,139 | — | 1,323,139 | ||||||||||||||
FHLB and FRB stock | 8,290 | — | — | — | N/A | ||||||||||||||
Accrued interest receivable | 4,619 | — | 4,619 | — | 4,619 | ||||||||||||||
Financial liabilities | |||||||||||||||||||
Noninterest-bearing demand deposits | $ | 234,354 | $ | — | $ | 234,354 | $ | — | $ | 234,354 | |||||||||
NOW and money market accounts | 589,238 | — | 589,238 | — | 589,238 | ||||||||||||||
Savings deposits | 160,501 | — | 160,501 | — | 160,501 | ||||||||||||||
Certificates of deposit | 355,958 | — | 353,969 | — | 353,969 | ||||||||||||||
Borrowings | 60,768 | — | 60,627 | — | 60,627 | ||||||||||||||
Accrued interest payable | 147 | — | 147 | — | 147 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Deposit service charges and fees | $ | 978 | $ | 950 | |||
Loan fee income (1) | 70 | 60 | |||||
Commercial mortgage brokerage fees (1) | 41 | — | |||||
Residential mortgage banking fees (1) | 30 | 44 | |||||
Trust and insurance commissions and annuities income | 213 | 249 | |||||
Earnings on bank owned life insurance (1) | 66 | 63 | |||||
Other (1) | 141 | 178 | |||||
Total noninterest income | $ | 1,539 | $ | 1,544 |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
March 31, 2018 | December 31, 2017 | Change | |||||||||
(Dollars in thousands) | |||||||||||
Selected Financial Condition Data: | |||||||||||
Total assets | $ | 1,559,929 | $ | 1,625,558 | $ | (65,629 | ) | ||||
Loans, net | 1,277,553 | 1,314,651 | (37,098 | ) | |||||||
Securities, at fair value | 102,661 | 93,383 | 9,278 | ||||||||
Other real estate owned, net | 1,802 | 2,351 | (549 | ) | |||||||
Deposits | 1,278,007 | 1,340,051 | (62,044 | ) | |||||||
Borrowings | 60,983 | 60,768 | 215 | ||||||||
Equity | 198,352 | 197,634 | 718 |
Three Months Ended March 31, | |||||||||||
2018 | 2017 | Change | |||||||||
(Dollars in thousands) | |||||||||||
Selected Operating Data: | |||||||||||
Interest income | $ | 14,748 | $ | 13,362 | $ | 1,386 | |||||
Interest expense | 1,727 | 1,276 | 451 | ||||||||
Net interest income | 13,021 | 12,086 | 935 | ||||||||
Provision for (recovery of) loan losses | (258 | ) | 161 | (419 | ) | ||||||
Net interest income after provision for (recovery of) loan losses | 13,279 | 11,925 | 1,354 | ||||||||
Noninterest income | 1,539 | 1,544 | (5 | ) | |||||||
Noninterest expense | 9,959 | 11,266 | (1,307 | ) | |||||||
Income before income tax expense | 4,859 | 2,203 | 2,656 | ||||||||
Income tax expense | 1,300 | 322 | 978 | ||||||||
Net income | $ | 3,559 | $ | 1,881 | $ | 1,678 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Selected Financial Ratios and Other Data: | |||||||
Performance Ratios: | |||||||
Return on assets (ratio of net income to average total assets) (1) | 0.90 | % | 0.47 | % | |||
Return on equity (ratio of net income to average equity) (1) | 7.13 | 3.66 | |||||
Average equity to average assets | 12.62 | 12.87 | |||||
Net interest rate spread (1) (2) | 3.38 | 3.15 | |||||
Net interest margin (1) (3) | 3.53 | 3.26 | |||||
Efficiency ratio (4) | 68.40 | 82.66 | |||||
Noninterest expense to average total assets (1) | 2.52 | 2.82 | |||||
Average interest-earning assets to average interest-bearing liabilities | 132.29 | 132.57 | |||||
Dividends declared per share | $ | 0.08 | $ | 0.06 | |||
Dividend payout ratio | 40.35 | % | 61.42 | % |
At March 31, 2018 | At December 31, 2017 | ||||
Asset Quality Ratios: | |||||
Nonperforming assets to total assets (5) | 0.24 | % | 0.29 | % | |
Nonperforming loans to total loans | 0.15 | 0.18 | |||
Allowance for loan losses to nonperforming loans | 426.00 | 350.04 | |||
Allowance for loan losses to total loans | 0.65 | 0.63 | |||
Capital Ratios: | |||||
Equity to total assets at end of period | 12.72 | % | 12.16 | % | |
Tier 1 leverage ratio (Bank only) | 11.60 | % | 11.08 | % | |
Other Data: | |||||
Number of full-service offices | 19 | 19 | |||
Employees (full-time equivalents) | 237 | 236 |
(1) | Ratios annualized. |
(2) | The net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities for the period. |
(3) | The net interest margin represents net interest income divided by average total interest-earning assets for the period. |
(4) | The efficiency ratio represents noninterest expense, divided by the sum of net interest income and noninterest income. |
(5) | Nonperforming assets include nonperforming loans and other real estate owned. |
For the Three Months Ended March 31, | |||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||
Average Outstanding Balance | Interest | Yield/Rate (1) | Average Outstanding Balance | Interest | Yield/Rate (1) | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans | $ | 1,294,387 | $ | 13,820 | 4.33 | % | $ | 1,313,299 | $ | 12,760 | 3.94 | % | |||||||||
Securities | 103,928 | 464 | 1.81 | 113,756 | 349 | 1.24 | |||||||||||||||
Stock in FHLB and FRB | 8,289 | 105 | 5.14 | 9,158 | 99 | 4.38 | |||||||||||||||
Other | 90,078 | 359 | 1.62 | 65,933 | 154 | 0.95 | |||||||||||||||
Total interest-earning assets | 1,496,682 | 14,748 | 4.00 | 1,502,146 | 13,362 | 3.61 | |||||||||||||||
Noninterest-earning assets | 85,151 | 93,045 | |||||||||||||||||||
Total assets | $ | 1,581,833 | $ | 1,595,191 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Savings deposits | $ | 160,148 | 47 | 0.12 | $ | 160,456 | 43 | 0.11 | |||||||||||||
Money market accounts | 294,504 | 379 | 0.52 | 307,121 | 273 | 0.36 | |||||||||||||||
NOW accounts | 282,005 | 140 | 0.20 | 263,286 | 121 | 0.19 | |||||||||||||||
Certificates of deposit | 333,978 | 959 | 1.16 | 352,929 | 743 | 0.85 | |||||||||||||||
Total deposits | 1,070,635 | 1,525 | 0.58 | 1,083,792 | 1,180 | 0.44 | |||||||||||||||
Borrowings | 60,737 | 202 | 1.35 | 49,306 | 96 | 0.79 | |||||||||||||||
Total interest-bearing liabilities | 1,131,372 | 1,727 | 0.62 | 1,133,098 | 1,276 | 0.46 | |||||||||||||||
Noninterest-bearing deposits | 226,936 | 235,167 | |||||||||||||||||||
Noninterest-bearing liabilities | 23,853 | 21,547 | |||||||||||||||||||
Total liabilities | 1,382,161 | 1,389,812 | |||||||||||||||||||
Equity | 199,672 | 205,379 | |||||||||||||||||||
Total liabilities and equity | $ | 1,581,833 | $ | 1,595,191 | |||||||||||||||||
Net interest income | $ | 13,021 | $ | 12,086 | |||||||||||||||||
Net interest rate spread (2) | 3.38 | % | 3.15 | % | |||||||||||||||||
Net interest-earning assets (3) | $ | 365,310 | $ | 369,048 | |||||||||||||||||
Net interest margin (4) | 3.53 | % | 3.26 | % | |||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 132.29 | % | 132.57 | % |
(1) | Annualized. |
(2) | Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
(3) | Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. |
(4) | Net interest margin represents net interest income divided by average total interest-earning assets. |
Three Months Ended March 31, | |||||||||||
2018 | 2017 | Change | |||||||||
(Dollars in thousands) | |||||||||||
Deposit service charges and fees | $ | 978 | $ | 950 | $ | 28 | |||||
Loan fee income | 70 | 60 | 10 | ||||||||
Commercial mortgage brokerage fees | 41 | — | 41 | ||||||||
Residential mortgage banking fees | 30 | 44 | (14 | ) | |||||||
Trust and insurance commissions and annuities income | 213 | 249 | (36 | ) | |||||||
Earnings on bank owned life insurance | 66 | 63 | 3 | ||||||||
Other | 141 | 178 | (37 | ) | |||||||
Total noninterest income | $ | 1,539 | $ | 1,544 | $ | (5 | ) |
Three Months Ended March 31, | |||||||||||
2018 | 2017 | Change | |||||||||
(Dollars in thousands) | |||||||||||
Compensation and benefits | $ | 5,322 | $ | 6,352 | $ | (1,030 | ) | ||||
Office occupancy and equipment | 1,731 | 1,622 | 109 | ||||||||
Advertising and public relations | 143 | 381 | (238 | ) | |||||||
Information technology | 641 | 753 | (112 | ) | |||||||
Supplies, telephone and postage | 333 | 332 | 1 | ||||||||
Amortization of intangibles | 122 | 129 | (7 | ) | |||||||
Nonperforming asset management | 202 | 104 | 98 | ||||||||
Loss on sale other real estate owned | 21 | 16 | 5 | ||||||||
Valuation adjustments of other real estate owned | 25 | 20 | 5 | ||||||||
Operations of other real estate owned | 115 | 177 | (62 | ) | |||||||
FDIC insurance premiums | 119 | 187 | (68 | ) | |||||||
Other | 1,185 | 1,193 | (8 | ) | |||||||
Total noninterest expense | $ | 9,959 | $ | 11,266 | $ | (1,307 | ) |
March 31, 2018 | December 31, 2017 | Quarter Change | |||||||||
(Dollars in thousands) | |||||||||||
Nonaccrual loans: | |||||||||||
One-to-four family residential real estate | $ | 1,589 | $ | 2,027 | $ | (438 | ) | ||||
Multi-family mortgage | 369 | 363 | 6 | ||||||||
1,958 | 2,390 | (432 | ) | ||||||||
Other real estate owned: | |||||||||||
One-to-four family residential | 935 | 827 | 108 | ||||||||
Nonresidential real estate | 863 | 1,520 | (657 | ) | |||||||
Land | 4 | 4 | — | ||||||||
1,802 | 2,351 | (549 | ) | ||||||||
Total nonperforming assets | $ | 3,760 | $ | 4,741 | $ | (981 | ) | ||||
Ratios: | |||||||||||
Nonperforming loans to total loans | 0.15 | % | 0.18 | % | |||||||
Nonperforming assets to total assets | 0.24 | 0.29 |
Actual | Required for Capital Adequacy Purposes | To be Well-Capitalized under Prompt Corrective Action Provisions | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
March 31, 2018 | ||||||||||||||||||||
Total capital (to risk-weighted assets): | ||||||||||||||||||||
Consolidated | $ | 197,493 | 17.72 | % | $ | 89,139 | 8.00 | % | N/A | N/A | ||||||||||
BankFinancial, NA | 190,805 | 17.13 | 89,115 | 8.00 | $ | 111,394 | 10.00 | % | ||||||||||||
Tier 1 (core) capital (to risk-weighted assets): | ||||||||||||||||||||
Consolidated | 189,152 | 16.98 | 66,854 | 6.00 | N/A | N/A | ||||||||||||||
BankFinancial, NA | 182,464 | 16.38 | 66,836 | 6.00 | 89,115 | 8.00 | ||||||||||||||
Common Tier 1 (CET1) | ||||||||||||||||||||
Consolidated | 189,152 | 16.98 | 50,141 | 4.50 | N/A | N/A | ||||||||||||||
BankFinancial, NA | 182,464 | 16.38 | 50,127 | 4.50 | 72,406 | 6.50 | ||||||||||||||
Tier 1 (core) capital (to adjusted average total assets): | ||||||||||||||||||||
Consolidated | 189,152 | 12.03 | 62,918 | 4.00 | N/A | N/A | ||||||||||||||
BankFinancial, NA | 182,464 | 11.60 | 62,911 | 4.00 | 78,639 | 5.00 |
December 31, 2017 | ||||||||||||||||||||
Total capital (to risk-weighted assets): | ||||||||||||||||||||
Consolidated | $ | 195,371 | 17.06 | % | $ | 91,590 | 8.00 | % | N/A | N/A | ||||||||||
BankFinancial, NA | 188,582 | 16.48 | 91,572 | 8.00 | $ | 114,466 | 10.00 | % | ||||||||||||
Tier 1 (core) capital (to risk-weighted assets): | ||||||||||||||||||||
Consolidated | 187,005 | 16.33 | 68,692 | 6.00 | N/A | N/A | ||||||||||||||
BankFinancial, NA | 180,216 | 15.74 | 68,679 | 6.00 | 91,572 | 8.00 | ||||||||||||||
Common Tier 1 (CET1) | ||||||||||||||||||||
Consolidated | 187,005 | 16.33 | 51,519 | 4.50 | N/A | N/A | ||||||||||||||
BankFinancial, NA | 180,216 | 15.74 | 51,509 | 4.50 | 74,403 | 6.50 | ||||||||||||||
Tier 1 (core) capital (to adjusted average total assets): | ||||||||||||||||||||
Consolidated | 187,005 | 11.49 | 65,085 | 4.00 | N/A | N/A | ||||||||||||||
BankFinancial, NA | 180,216 | 11.08 | 65,045 | 4.00 | 81,307 | 5.00 |
Estimated Decrease in NPV | Increase (Decrease) in Estimated Net Interest Income | ||||||||||||
Change in Interest Rates (basis points) | Amount | Percent | Amount | Percent | |||||||||
(Dollars in thousands) | |||||||||||||
+400 | $ | (40,663 | ) | (14.98 | )% | $ | (999 | ) | (1.91 | )% | |||
+300 | (26,165 | ) | (9.64 | ) | (608 | ) | (1.16 | ) | |||||
+200 | (14,758 | ) | (5.44 | ) | (270 | ) | (0.52 | ) | |||||
+100 | (5,669 | ) | (2.09 | ) | 21 | 0.04 | |||||||
0 | |||||||||||||
-100 | (16,356 | ) | (6.02 | ) | (3,454 | ) | (6.60 | ) |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
(a) | Unregistered Sale of Equity Securities. Not applicable. |
(b) | Use of Proceeds. Not applicable. |
(c) | Repurchases of Equity Securities. |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet be Purchased under the Plans or Programs (1) | |||||||
January 1, 2018 through January 31, 2018 | — | $ | — | — | 242,976 | ||||||
February 1, 2018 through February 28, 2018 | 39,500 | 15.81 | 39,500 | 203,476 | |||||||
March 1, 2018 through March 31, 2018 | 42,000 | 16.52 | 42,000 | 661,476 | |||||||
81,500 | 81,500 |
(1) | On March 28, 2018, the Board extended the expiration date of the Company's share repurchase authorization from June 30, 2018 to April 30, 2019, and increased the total number of shares authorized for repurchase by 500,000 shares. As of March 31, 2018, the Company had repurchased 2,669,279 shares of its common stock out of the 3,330,755 shares of common stock authorized under the share repurchase authorizations. Pursuant to the share repurchase authorization, there are 661,476 shares of common stock authorized for repurchase through April 30, 2019. |
ITEM 3. | MINE SAFETY DISCLOSURES |
ITEM 4. | OTHER INFORMATION |
ITEM 5. | EXHIBITS |
Exhibit Number | Description | |
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002* | ||
101 | The following financial statements from the BankFinancial Corporation Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, formatted in Extensive Business Reporting Language (XBRL): (i) consolidated statement of conditions, (ii) consolidated statements of operations, (iii) consolidated statements of cash flows and (iv) the notes to consolidated financial statements. |
* | A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. |
BANKFINANCIAL CORPORATION | |||||
Dated: | April 30, 2018 | By: | /s/ F. Morgan Gasior | ||
F. Morgan Gasior | |||||
Chairman of the Board, Chief Executive Officer and President | |||||
/s/ Paul A. Cloutier | |||||
Paul A. Cloutier | |||||
Executive Vice President and Chief Financial Officer |
1) | I have reviewed this quarterly report on Form 10-Q of BankFinancial Corporation; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5) | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Dated: | April 30, 2018 | By: | /s/ F. Morgan Gasior | ||
F. Morgan Gasior | |||||
Chairman of the Board, Chief Executive Officer and President |
1) | I have reviewed this quarterly report on Form 10-Q of BankFinancial Corporation; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5) | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Dated: | April 30, 2018 | By: | /s/ Paul A. Cloutier | ||
Paul A. Cloutier | |||||
Executive Vice President and Chief Financial Officer |
1. | the Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
BANKFINANCIAL CORPORATION | |||||
Dated: | April 30, 2018 | By: | /s/ F. Morgan Gasior | ||
F. Morgan Gasior | |||||
Chairman of the Board and Chief Executive Officer | |||||
/s/ Paul A. Cloutier | |||||
Paul A. Cloutier | |||||
Chief Financial Officer |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Apr. 27, 2018 |
|
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2018 | |
Entity Registrant Name | BankFinancial CORP | |
Entity Central Index Key | 0001303942 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 17,739,054 | |
Entity Well-known Seasoned Issuer | No | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No |
Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $ 8,341 | $ 8,366 |
Preferred Stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 17,877,223 | 17,958,723 |
Consolidated Statements Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Net income | $ 3,559 | $ 1,881 |
Unrealized holding loss arising during the period | 104 | 20 |
Tax effect | 22 | 7 |
Net of tax | (82) | (13) |
Comprehensive income | $ 3,477 | $ 1,868 |
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared on common stock (in dollars per share) | $ 0.08 | $ 0.06 |
Repurchase and retirement of common stock (in shares) | 81,500 | 232,045,000 |
Summary of Significant Accounting Policies (Notes) |
3 Months Ended |
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Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Basis of Presentation: BankFinancial Corporation, a Maryland corporation headquartered in Burr Ridge, Illinois (the “Company”), is the owner of all of the issued and outstanding capital stock of BankFinancial, NA (the “Bank”). The interim unaudited consolidated financial statements include the accounts and transactions of BankFinancial Corporation, the Bank, and the Bank’s wholly-owned subsidiaries, Financial Assurance Services, Inc. and BFIN Asset Recovery Company, LLC (collectively, “the Company”), and reflect all normal and recurring adjustments that are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. Such adjustments are the only adjustments reflected in the accompanying financial statements. All significant intercompany accounts and transactions have been eliminated. The results of operations for the three-month period ended March 31, 2018 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2018 or for any other period. Certain information and note disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. Use of Estimates: To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ. Reclassifications: Certain reclassifications have been made in the prior period’s financial statements to conform them to the current period’s presentation. These unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission. Recent Accounti |
Earnings Per Share (Notes) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] | ngs per share reflect earnings available to common stockholders for the period divided by the weighted average number of shares of common stock outstanding during the period, exclusive of unearned BankFinancial, NA Employee Stock Ownership Plan (the "ESOP") shares in 2017 and unvested restricted stock shares. Stock options and restricted stock are regarded as potential common stock and are considered in the diluted earnings per share calculations to the extent that they would have a dilutive effect if converted to common stock.
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Securities (Notes) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SECURITIES | The fair value of securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income are shown below.
The mortgage-backed securities and collateralized mortgage obligations reflected in the preceding table were issued by U.S. government-sponsored entities or agencies, Freddie Mac, Fannie Mae and Ginnie Mae, and are obligations which the government has affirmed its commitment to support. All securities reflected in the preceding table were classified as available-for-sale at March 31, 2018 and December 31, 2017. The amortized cost and fair values of securities by contractual maturity are shown below. Securities not due at a single maturity date are shown separately. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
There were no sales of securities for the periods ended March 31, 2018 and 2017. Securities with unrealized losses not recognized in income are as follows:
The Company evaluates marketable investment securities with significant declines in fair value on a quarterly basis to determine whether they should be considered other-than-temporarily impaired under current accounting guidance, which generally provides that if a marketable security is in an unrealized loss position, whether due to general market conditions or industry or issuer-specific factors, the holder of the securities must assess whether the impairment is other-than-temporary. Certain mortgage-backed securities and collateralized mortgage obligations that the Company holds in its investment portfolio were in an unrealized loss position at March 31, 2018, but the unrealized losses were not considered significant under the Company’s impairment testing methodology. In addition, the Company does not intend to sell these securities, and it is likely that the Company will not be required to sell these securities before their anticipated recovery occurs. |
Loans Receivable (Notes) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Loans receivable are as follows:
The following tables present the balance in the allowance for loan losses and the loans receivable by portfolio segment and based on impairment method:
Activity in the allowance for loan losses is as follows:
The following tables present the recorded investment in nonaccrual loans and loans past due over 90 days still on accrual by class of loans:
Nonaccrual loans and impaired loans are defined differently. Some loans may be included in both categories, and some loans may only be included in one category. Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The Company’s reserve for uncollected loan interest was $76,000 and $103,000 at March 31, 2018 and December 31, 2017, respectively. When a loan is on nonaccrual status and the ultimate collectability of the total principal of an impaired loan is in doubt, all payments are applied to principal under the cost recovery method. Alternatively, when a loan is on non-accrual status but there is doubt concerning only the ultimate collectability of interest, contractual interest is credited to interest income only when received, under the cash basis method pursuant to the provisions of FASB ASC 310–10, as applicable. In all cases, the average balances are calculated based on the month–end balances of the financing receivables within the period reported pursuant to the provisions of FASB ASC 310–10, as applicable. The following tables present the aging of the recorded investment of loans at March 31, 2018 by class of loans:
The following tables present the aging of the recorded investment of loans at December 31, 2017 by class of loans:
The Company evaluates loan extensions or modifications in accordance with FASB ASC 310–40 with respect to the classification of the loan as a Troubled Debt Restructuring ("TDR"). In general, if the Company grants a loan extension or modification to a borrower for other than an insignificant period of time that includes a below–market interest rate, principal forgiveness, payment forbearance or other concession intended to minimize the economic loss to the Company, the loan extension or loan modification is classified as a TDR. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal then due and payable, management measures any impairment on the restructured loan in the same manner as for impaired loans as noted above. The Company had $17,000 of TDRs at March 31, 2018 and December 31, 2017. No specific valuation reserves were allocated to those loans at March 31, 2018 and December 31, 2017. The Company had no outstanding commitments to borrowers whose loans were classified as TDRs at either date. The following table presents loans classified as TDRs:
During the three months ended March 31, 2018 and 2017, there were no loans modified and classified as TDRs. A TDR is considered to be in payment default once it is 90 days contractually past due under the modified terms. There were no payment defaults on TDRs during the three months ended March 31, 2018 and 2017 within twelve months following the modification. There were no loan modifications during the three months ended March 31, 2018. There were certain loan modifications during the three months ended March 31, 2017 that did not meet the definition of a TDR. These loans had a total recorded investment of $133,000 at March 31, 2017. The modification of these loans involved either a modification of the terms of a loan to borrowers who were not experiencing financial difficulties or a delay in a payment that was considered to be insignificant. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans based on credit risk. This analysis includes non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a monthly basis. The Company uses the following definitions for risk ratings: Special Mention. A Special Mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special Mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Substandard. Loans categorized as Substandard continue to accrue interest, but exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. The loans continue to accrue interest because they are well secured and collection of principal and interest is expected within a reasonable time. The risk rating guidance published by the Office of the Comptroller of the Currency clarifies that a loan with a well-defined weakness does not have to present a probability of default for the loan to be rated Substandard, and that an individual loan’s loss potential does not have to be distinct for the loan to be rated Substandard. Nonaccrual. An asset classified Nonaccrual has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered “Pass” rated loans. As of March 31, 2018, based on the most recent analysis performed, the risk categories of loans by class of loans are as follows:
As of December 31, 2017, the risk categories of loans by class of loans are as follows:
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Other Real Estate Owned (Notes) |
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Other Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Owned [Text Block] | eal estate that is acquired through foreclosure or a deed in lieu of foreclosure is classified as other real estate owned ("OREO") until it is sold. When real estate is acquired through foreclosure or by deed in lieu of foreclosure, it is recorded at its fair value, less the estimated costs of disposal. If the fair value of the property is less than the loan balance, the difference is charged against the allowance for loan losses.
The following represents the roll forward of OREO and the composition of OREO properties:
Activity in the valuation allowance is as follows:
At March 31, 2018, the balance of OREO included no foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property without title. At December 31, 2017 the balance of OREO included $352,000 foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property without title. At March 31, 2018 and December 31, 2017, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process was $1.3 million and $1.5 million, respectively. |
Employee Benefit Plans |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Stock Ownership Plan. On March 29, 2017, the ESOP was terminated and the ESOP repaid all amounts owing under the ESOP’s Term Loan Agreement with the Company (the “Share Acquisition Loan”). The ESOP repaid the Share Acquisition Loan by transferring 753,490 unallocated shares of the Company’s common stock to the Company in exchange for the full satisfaction of the Share Acquisition Loan, using the valuation method provided for in the ESOP. A total of 78,362 unallocated shares remained in the ESOP after the Share Acquisition Loan was repaid, and these shares were released and will be allocated to the accounts of eligible ESOP participants who were actively employed by the Bank as of March 29, 2017, based on their account balances, subject to the receipt of a favorable IRS determination letter. These transactions resulted in the recording of one-time, non-cash, non-tax deductible equity compensation expense of $1.1 million in the first quarter of 2017. The Share Acquisition Loan had no outstanding principal balance at March 31, 2018 and an outstanding principal balance of $10.8 million at December 31, 2017. The Company made the Share Acquisition Loan to the ESOP in the original principal amount of $19.6 million in connection with the Company’s mutual to stock conversion in June of 2005. The proceeds of the Share Acquisition Loan were used by the ESOP to purchase 1,957,300 shares of the Company’s common stock issued in the subscription offering at a price of $10.00 per share. The Share Acquisition Loan was secured by a pledge of the acquired shares and the ESOP made annual loan payments with funds it received from the Bank’s discretionary contributions to the ESOP in subsequent years and dividends it received on unallocated shares. As loan payments were made, the Company recorded compensation expense based on the allocation of shares released. ESOP benefit expense was recorded based upon the fair value of the awarded shares, net of dividends and interest received on unallocated ESOP shares. ESOP benefit expense totaled $1.3 million for the year ended December 31, 2017. Shares held by the ESOP were as follows:
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Equity Incentive Plans (Notes) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Incentive Plans | EQUITY INCENTIVE PLAN On June 27, 2006, the Company’s stockholders approved the BankFinancial Corporation 2006 Equity Incentive Plan, which authorized the Human Resources Committee of the Board of Directors of the Company to grant a variety of cash- and equity-based incentive awards, including stock options, stock appreciation rights, restricted stock, performance shares and other incentive awards, to employees and directors aggregating up to 3,425,275 shares of the Company’s common stock. The Plan provides that no awards may be granted under the Plan after the ten-year anniversary of the Effective Date. Consequently, no further awards will be granted under this Plan. As of December 31, 2017, there were 1,752,156 stock options outstanding. The Company recognized $979,000 of equity-based compensation expense relating to the granting of stock options for the year ended December 31, 2017. There was no equity-based compensation expense for the three months ended March 31, 2018. A summary of the activity in the stock option plan for 2018 and 2016 follows:
During the nine months ended March 31, 2018, 1,752,156 stock options were exercised. All stock options were exercised on a net settlement basis, using a portion of the shares obtained upon exercise to pay the exercise price of the stock option. The net settlements resulted in the issuance of 280,554 shares of the Company's common stock. Certain employees also chose to use a portion of the net shares received upon the exercise to pay required tax withholdings. This reduced the net shares issued by 82,528 shares to 198,026 shares. |
Fair Value (Notes) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:
The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Securities: The fair values of marketable equity securities are generally determined by quoted prices, in active markets, for each specific security (Level 1). If Level 1 measurement inputs are not available for a marketable equity security, we determine its fair value based on the quoted price of a similar security traded in an active market (Level 2). The fair values of debt securities are generally determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2). Impaired Loans: The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available for similar loans and collateral underlying such loans. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy. Other Real Estate Owned: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach with data from comparable properties. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly. The following table sets forth the Company’s financial assets that were accounted for at fair value and are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
The following table sets forth the Company’s assets that were measured at fair value on a non-recurring basis:
At March 31, 2018 and December 31, 2017 there were no impaired loans that were measured for impairment using the fair value of the collateral for collateral–dependent loans and which had specific valuation allowances. OREO, which is carried at the lower of cost or fair value less costs to sell, had a carrying value of $494,000 less a valuation allowance of $85,000, or $409,000, at March 31, 2018, compared to a carrying value of $1.2 million less a valuation allowance of $261,000, or $916,000, at December 31, 2017. There were $25,000 and $20,000 of valuation adjustments of OREO recorded for the three months ended March 31, 2018 and 2017, respectively. The following table presents quantitative information, based on certain empirical data with respect to Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis:
The carrying amount and estimated fair value of financial instruments are as follows:
For purposes of the above, the following assumptions were used: Cash and Cash Equivalents: The estimated fair values for cash and cash equivalents are based on their carrying value due to the short-term nature of these assets. Loans: At March 31, 2018, the exit price observations are obtained from an independent third-party using its proprietary valuation model and methodology and may not reflect actual or prospective market valuations. The valuation is based on the probability of default, loss given default, recovery delay, prepayment, and discount rate assumptions. The new methodology is a result of the adoption of ASU 2016-01. At December 31, 2017, the estimated fair value for loans has been determined by calculating the present value of future cash flows based on the current rate the Company would charge for similar loans with similar maturities, applied for an estimated time period until the loan is assumed to be repriced or repaid. The methods utilized to estimate fair value of loans do not necessarily represent an exit price. FHLB and FRB Stock: It is not practicable to determine the fair value of FHLB and FRB stock due to the restrictions placed on their transferability. Deposit Liabilities: The estimated fair value for certificates of deposit has been determined by calculating the present value of future cash flows based on estimates of rates the Company would pay on such deposits, applied for the time period until maturity. The estimated fair values of noninterest-bearing demand, NOW, money market, and savings deposits are assumed to approximate their carrying values as management establishes rates on these deposits at a level that approximates the local market area. Additionally, these deposits can be withdrawn on demand. Borrowings: The estimated fair values of advances from the FHLB and notes payable are based on current market rates for similar financing. The estimated fair value of securities sold under agreements to repurchase is assumed to equal its carrying value due to the short-term nature of the liability. Accrued Interest: The estimated fair values of accrued interest receivable and payable are assumed to equal their carrying value. Off-Balance-Sheet Instruments: Off-balance-sheet items consist principally of unfunded loan commitments, standby letters of credit, and unused lines of credit. The estimated fair values of unfunded loan commitments, standby letters of credit, and unused lines of credit are not material. While the above estimates are based on management’s judgment of the most appropriate factors, as of the balance sheet date, there is no assurance that the estimated fair values would have been realized if the assets were disposed of or the liabilities settled at that date, since market values may differ depending on the various circumstances. The estimated fair values would also not apply to subsequent dates. In addition, other assets and liabilities that are not financial instruments, such as premises and equipment, are not included in the above disclosures. |
Revenue From Contracts With Customers |
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue From Contracts With Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS All of the Company's revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. The following table presents the Company's sources of noninterest income for the three months ended March 31, 2018 and 2017. Items outside of the scope of the ASC 606 are noted as such.
(1) Not within the scope of ASC 606 A description of the Company's revenue streams accounted for under ASC 606 follows: Deposit service charges and fees: The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer's account balance. Interchange Income: The Company earns interchange fees from debit cardholder transactions conducted 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. Interchange income for the three months ended March 31, 2018 and 2017 were $361,000 and $350,000, respectively. These are included in deposit service charges and fees. Trust and insurance commissions and annuities income: The Company earns trust, insurance commissions and annuities income from its contracts with trust customers to manage assets for investment, and/or to transact on their accounts. These fees are primarily earned over time as the Company provides the contracted monthly or quarterly services and are generally assessed based on a tiered scale of the market value of assets under management (AUM) at month-end. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed, i.e., the trade date. Other related services provided include fees the Company earns, which are based on a fixed fee schedule, are recognized when the services are rendered. Gains/Losses on Sales of OREO: The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. OREO sales for the three months ended March 31, 2018 and March 31, 2017 were not financed by the Bank. |
Subsequent Events |
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Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS In April 2018, the Bank recorded income from a death benefit on BOLI of $1.4 million related to the death of a former Bank executive. On April 23, 2018, the Bank sold its office building located at 15W060 North Frontage Road, Burr Ridge, Illinois, for a purchase price of $6 million. A net gain in the approximate amount $100,000will be recorded in the second quarter of 2018 in connection with the sale. Concurrently with the sale, the Bank entered into a six-month lease of the office building with the purchaser, and intends to lease space in a different building following the expiration of the lease with the purchaser. The Company shares space with the Bank in the office building pursuant to an expense allocation agreement. |
Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Basis of Presentation: BankFinancial Corporation, a Maryland corporation headquartered in Burr Ridge, Illinois (the “Company”), is the owner of all of the issued and outstanding capital stock of BankFinancial, NA (the “Bank”). The interim unaudited consolidated financial statements include the accounts and transactions of BankFinancial Corporation, the Bank, and the Bank’s wholly-owned subsidiaries, Financial Assurance Services, Inc. and BFIN Asset Recovery Company, LLC (collectively, “the Company”), and reflect all normal and recurring adjustments that are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. Such adjustments are the only adjustments reflected in the accompanying financial statements. All significant intercompany accounts and transactions have been eliminated. The results of operations for the three-month period ended March 31, 2018 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2018 or for any other period. Certain information and note disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. Use of Estimates: To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ. Reclassifications: Certain reclassifications have been made in the prior period’s financial statements to conform them to the current period’s presentation. These unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission. Recent Accounti |
Basis of Presentation | Basis of Presentation: BankFinancial Corporation, a Maryland corporation headquartered in Burr Ridge, Illinois (the “Company”), is the owner of all of the issued and outstanding capital stock of BankFinancial, NA (the “Bank”). |
Principles of Consolidation | The interim unaudited consolidated financial statements include the accounts and transactions of BankFinancial Corporation, the Bank, and the Bank’s wholly-owned subsidiaries, Financial Assurance Services, Inc. and BFIN Asset Recovery Company, LLC (collectively, “the Company”), and reflect all normal and recurring adjustments that are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. Such adjustments are the only adjustments reflected in the accompanying financial statements. All significant intercompany accounts and transactions have been eliminated. The results of operations for the three-month period ended March 31, 2018 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2018 or for any other period. Certain information and note disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. Use of Estimate |
Use of Estimates | Use of Estimates: To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ. |
Uncollected Interest Policy | The Company’s reserve for uncollected loan interest was $76,000 and $103,000 at March 31, 2018 and December 31, 2017, respectively. When a loan is on nonaccrual status and the ultimate collectability of the total principal of an impaired loan is in doubt, all payments are applied to principal under the cost recovery method. Alternatively, when a loan is on non-accrual status but there is doubt concerning only the ultimate collectability of interest, contractual interest is credited to interest income only when received, under the cash basis method pursuant to the provisions of FASB ASC 310–10, as applicable. In all cases, the average balances are calculated based on the month–end balances of the financing receivables within the period reported pursuant to the provisions of FASB ASC 310–10, as applicable. |
Reclassifications | Reclassifications: Certain reclassifications have been made in the prior period’s financial statements to conform them to the current period’s presentation. These unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued an update (ASU No. 2014-09, Revenue from Contracts with Customers) creating FASB Topic 606, Revenue from Contracts with Customers. The guidance in this update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides steps to follow to achieve the core principle. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The amendments in this update became effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. We have evaluated the impact of adopting the update and have concluded that it does not have a significant impact to our consolidated financial statements. The Company’s revenue streams that are in-scope from the update include: financed OREO sales; deposit fees, including ATM fees, overdraft fees, maintenance fees and dormancy fees; debit card fees, and trust fees. For the in-scope revenue streams, our current revenue recognition is not different than our prior revenue recognition under the update. The Company has infrequently financed an OREO sale. Our customer contracts generally do not have performance obligations and fees are assessed and collected as the transaction occurs. The Company’s fee income is not material for any individual income streams. The adoption of ASC 606 did not result in a change to the accounting for any of the in-scope revenue stream; as such, no cumulative effect adjustment was recorded. Refer to Note 8 - Revenue for Contracts with Customers for further discussion on the Company's accounting policies for revenue sources within the scope of ASC 606. In January 2016, the FASB issued an update (ASU No. 2016-01, Financial Instruments - Recognition and Measurement of Financial Assets and Liabilities). The new guidance is intended to improve the recognition and measurement of financial instruments by requiring: equity investments (other than equity method or consolidation) to be measured at fair value with changes in fair value recognized in net income; public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; separate presentation of financial assets and financial liabilities by measurement category and form of financial assets (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost for organizations that are not public business entities; eliminating the requirement for non-public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is to be required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and requiring a reporting organization to present separately in other comprehensive income the portion of the total change in fair value of a liability resulting from the change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The new guidance became effective for public business entities for fiscal years beginning after December 15, 2017. The new pronouncement does not have a significant impact on our Statement of Operations, as we only have one equity security that was valued at $491,000 and $499,000 at March 31, 2018 and December 31, 2017, respectively. The equity security is reported separately on the Statement of Condition as a result the adoption of this pronouncement. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). The standard requires a lessee to recognize assets and liabilities on the balance sheet for leases with lease terms greater than 12 months. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. We are currently evaluating the impact that the standard will have on our consolidated financial statements. Our preliminary finding is that the new pronouncement will not have a significant impact on our consolidated financial statements as the projected minimum lease payments under existing leases subject to the new pronouncement are less than one percent of our current total assets. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). These amendments require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 (i.e., January 1, 2020, for calendar year entities). Early application will be permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are currently evaluating the impact that the standard will have on our consolidated financial statements. Our initial review indicates that we have maintained sufficient historical loan data to support the requirements of this pronouncement. In addition, we have begun tracking the average life of the various segments of our loan portfolio. We are currently evaluating various loss methodologies to determine their correlation to our various loan categories' historical performance. In March of 2017, the FASB issued ASU No. 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities” (“ASU 2017-08”). This guidance shortens the amortization period for premiums on certain callable debt securities to the earliest call date (with an explicit, noncontingent call feature that is callable at a fixed price and on a preset dates), rather than contractual maturity date as currently required under GAAP. The ASU does not impact instruments without preset call dates such as mortgage-backed securities. For instruments with contingent call features, once the contingency is resolved and the security is callable at a fixed price and preset date, the security is within the scope of the ASU. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, and early adoption is permitted. Effective January 2017, we early adopted the pronouncement. Adoption of the new pronouncement was immaterial to the consolidated financial statements. |
Summary of Significant Accounting Policies New Accounting Pronouncements (Policies) |
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Mar. 31, 2018 | |
Text Block [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued an update (ASU No. 2014-09, Revenue from Contracts with Customers) creating FASB Topic 606, Revenue from Contracts with Customers. The guidance in this update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides steps to follow to achieve the core principle. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The amendments in this update became effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. We have evaluated the impact of adopting the update and have concluded that it does not have a significant impact to our consolidated financial statements. The Company’s revenue streams that are in-scope from the update include: financed OREO sales; deposit fees, including ATM fees, overdraft fees, maintenance fees and dormancy fees; debit card fees, and trust fees. For the in-scope revenue streams, our current revenue recognition is not different than our prior revenue recognition under the update. The Company has infrequently financed an OREO sale. Our customer contracts generally do not have performance obligations and fees are assessed and collected as the transaction occurs. The Company’s fee income is not material for any individual income streams. The adoption of ASC 606 did not result in a change to the accounting for any of the in-scope revenue stream; as such, no cumulative effect adjustment was recorded. Refer to Note 8 - Revenue for Contracts with Customers for further discussion on the Company's accounting policies for revenue sources within the scope of ASC 606. In January 2016, the FASB issued an update (ASU No. 2016-01, Financial Instruments - Recognition and Measurement of Financial Assets and Liabilities). The new guidance is intended to improve the recognition and measurement of financial instruments by requiring: equity investments (other than equity method or consolidation) to be measured at fair value with changes in fair value recognized in net income; public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; separate presentation of financial assets and financial liabilities by measurement category and form of financial assets (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost for organizations that are not public business entities; eliminating the requirement for non-public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is to be required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and requiring a reporting organization to present separately in other comprehensive income the portion of the total change in fair value of a liability resulting from the change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The new guidance became effective for public business entities for fiscal years beginning after December 15, 2017. The new pronouncement does not have a significant impact on our Statement of Operations, as we only have one equity security that was valued at $491,000 and $499,000 at March 31, 2018 and December 31, 2017, respectively. The equity security is reported separately on the Statement of Condition as a result the adoption of this pronouncement. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). The standard requires a lessee to recognize assets and liabilities on the balance sheet for leases with lease terms greater than 12 months. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. We are currently evaluating the impact that the standard will have on our consolidated financial statements. Our preliminary finding is that the new pronouncement will not have a significant impact on our consolidated financial statements as the projected minimum lease payments under existing leases subject to the new pronouncement are less than one percent of our current total assets. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). These amendments require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 (i.e., January 1, 2020, for calendar year entities). Early application will be permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are currently evaluating the impact that the standard will have on our consolidated financial statements. Our initial review indicates that we have maintained sufficient historical loan data to support the requirements of this pronouncement. In addition, we have begun tracking the average life of the various segments of our loan portfolio. We are currently evaluating various loss methodologies to determine their correlation to our various loan categories' historical performance. In March of 2017, the FASB issued ASU No. 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities” (“ASU 2017-08”). This guidance shortens the amortization period for premiums on certain callable debt securities to the earliest call date (with an explicit, noncontingent call feature that is callable at a fixed price and on a preset dates), rather than contractual maturity date as currently required under GAAP. The ASU does not impact instruments without preset call dates such as mortgage-backed securities. For instruments with contingent call features, once the contingency is resolved and the security is callable at a fixed price and preset date, the security is within the scope of the ASU. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, and early adoption is permitted. Effective January 2017, we early adopted the pronouncement. Adoption of the new pronouncement was immaterial to the consolidated financial statements. |
Earnings Per Share (Tables) |
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Earnings Per Share [Text Block] | ngs per share reflect earnings available to common stockholders for the period divided by the weighted average number of shares of common stock outstanding during the period, exclusive of unearned BankFinancial, NA Employee Stock Ownership Plan (the "ESOP") shares in 2017 and unvested restricted stock shares. Stock options and restricted stock are regarded as potential common stock and are considered in the diluted earnings per share calculations to the extent that they would have a dilutive effect if converted to common stock.
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Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | The fair value of securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income are shown below.
The mortgage-backed securities and collateralized mortgage obligations reflected in the preceding table were issued by U.S. government-sponsored entities or agencies, Freddie Mac, Fannie Mae and Ginnie Mae, and are obligations which the government has affirmed its commitment to support. All securities reflected in the preceding table were classified as available-for-sale at March 31, 2018 and December 31, 2017. The amortized cost and fair values of securities by contractual maturity are shown below. Securities not due at a single maturity date are shown separately. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
There were no sales of securities for the periods ended March 31, 2018 and 2017. Securities with unrealized losses not recognized in income are as follows:
The Company evaluates marketable investment securities with significant declines in fair value on a quarterly basis to determine whether they should be considered other-than-temporarily impaired under current accounting guidance, which generally provides that if a marketable security is in an unrealized loss position, whether due to general market conditions or industry or issuer-specific factors, the holder of the securities must assess whether the impairment is other-than-temporary. Certain mortgage-backed securities and collateralized mortgage obligations that the Company holds in its investment portfolio were in an unrealized loss position at March 31, 2018, but the unrealized losses were not considered significant under the Company’s impairment testing methodology. In addition, the Company does not intend to sell these securities, and it is likely that the Company will not be required to sell these securities before their anticipated recovery occurs. |
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Unrealized gains and losses recognized in accumulated other comprehensive income (loss) | The fair value of securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income are shown below.
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Amortized cost and fair values of securities | The amortized cost and fair values of securities by contractual maturity are shown below. Securities not due at a single maturity date are shown separately. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
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Securities with unrealized losses | Securities with unrealized losses not recognized in income are as follows:
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Loans Receivable (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans By Class Modified As Troubled Debt Restructurings With Payment Default [Table Text Block] | TDRs during the three months ended March 31, 2018 and 2017 within twelve months following the modification. |
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Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Loans receivable are as follows:
The following tables present the balance in the allowance for loan losses and the loans receivable by portfolio segment and based on impairment method:
Activity in the allowance for loan losses is as follows:
The following tables present the recorded investment in nonaccrual loans and loans past due over 90 days still on accrual by class of loans:
Nonaccrual loans and impaired loans are defined differently. Some loans may be included in both categories, and some loans may only be included in one category. Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The Company’s reserve for uncollected loan interest was $76,000 and $103,000 at March 31, 2018 and December 31, 2017, respectively. When a loan is on nonaccrual status and the ultimate collectability of the total principal of an impaired loan is in doubt, all payments are applied to principal under the cost recovery method. Alternatively, when a loan is on non-accrual status but there is doubt concerning only the ultimate collectability of interest, contractual interest is credited to interest income only when received, under the cash basis method pursuant to the provisions of FASB ASC 310–10, as applicable. In all cases, the average balances are calculated based on the month–end balances of the financing receivables within the period reported pursuant to the provisions of FASB ASC 310–10, as applicable. The following tables present the aging of the recorded investment of loans at March 31, 2018 by class of loans:
The following tables present the aging of the recorded investment of loans at December 31, 2017 by class of loans:
The Company evaluates loan extensions or modifications in accordance with FASB ASC 310–40 with respect to the classification of the loan as a Troubled Debt Restructuring ("TDR"). In general, if the Company grants a loan extension or modification to a borrower for other than an insignificant period of time that includes a below–market interest rate, principal forgiveness, payment forbearance or other concession intended to minimize the economic loss to the Company, the loan extension or loan modification is classified as a TDR. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal then due and payable, management measures any impairment on the restructured loan in the same manner as for impaired loans as noted above. The Company had $17,000 of TDRs at March 31, 2018 and December 31, 2017. No specific valuation reserves were allocated to those loans at March 31, 2018 and December 31, 2017. The Company had no outstanding commitments to borrowers whose loans were classified as TDRs at either date. The following table presents loans classified as TDRs:
During the three months ended March 31, 2018 and 2017, there were no loans modified and classified as TDRs. A TDR is considered to be in payment default once it is 90 days contractually past due under the modified terms. There were no payment defaults on TDRs during the three months ended March 31, 2018 and 2017 within twelve months following the modification. There were no loan modifications during the three months ended March 31, 2018. There were certain loan modifications during the three months ended March 31, 2017 that did not meet the definition of a TDR. These loans had a total recorded investment of $133,000 at March 31, 2017. The modification of these loans involved either a modification of the terms of a loan to borrowers who were not experiencing financial difficulties or a delay in a payment that was considered to be insignificant. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans based on credit risk. This analysis includes non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a monthly basis. The Company uses the following definitions for risk ratings: Special Mention. A Special Mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special Mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Substandard. Loans categorized as Substandard continue to accrue interest, but exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. The loans continue to accrue interest because they are well secured and collection of principal and interest is expected within a reasonable time. The risk rating guidance published by the Office of the Comptroller of the Currency clarifies that a loan with a well-defined weakness does not have to present a probability of default for the loan to be rated Substandard, and that an individual loan’s loss potential does not have to be distinct for the loan to be rated Substandard. Nonaccrual. An asset classified Nonaccrual has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered “Pass” rated loans. As of March 31, 2018, based on the most recent analysis performed, the risk categories of loans by class of loans are as follows:
As of December 31, 2017, the risk categories of loans by class of loans are as follows:
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Loans receivable | Loans receivable are as follows:
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Loans Receivable Based On Impairment Method [Table Text Block] | The following tables present the balance in the allowance for loan losses and the loans receivable by portfolio segment and based on impairment method:
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Allowance for loan losses | ctivity in the allowance for loan losses is as follows:
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Schedule of Financing Receivables, Non Accrual Status | The following tables present the recorded investment in nonaccrual loans and loans past due over 90 days still on accrual by class of loans:
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Past Due Financing Receivables | The following tables present the aging of the recorded investment of loans at March 31, 2018 by class of loans:
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Troubled Debt Restructurings on Financing Receivables | The following table presents loans classified as TDRs:
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Financing Receivable Credit Quality Indicators | As of March 31, 2018, based on the most recent analysis performed, the risk categories of loans by class of loans are as follows:
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Loans By Class Modified As Troubled Debt Restructuring On Financing Receivables [Table Text Block] |
Other Real Estate Owned (Tables) |
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Other Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Real Estate Properties [Table Text Block] |
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Real Estate Owned, rollforward [Table Text Block] |
The following represents the roll forward of OREO and the composition of OREO properties:
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OREO valuation allowance, rollforward [Table Text Block] | Activity in the valuation allowance is as follows:
At March 31, 2018, the balance of OREO included no foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property without title. At December 31, 2017 the balance of OREO included $352,000 foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property without title. At March 31, 2018 and December 31, 2017, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process was $1.3 million and $1.5 million, respectively. |
Employee Benefit Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Employee Stock Ownership Plan (ESOP) Disclosures | Shares held by the ESOP were as follows:
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Equity Incentive Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option Activity | A summary of the activity in the stock option plan for 2018 and 2016 follows:
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Fair Value (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Company's financial instruments measured at fair values | The following table sets forth the Company’s financial assets that were accounted for at fair value and are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
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Schedule of Company's financial instruments measured on non recurring at fair values | The following table sets forth the Company’s assets that were measured at fair value on a non-recurring basis:
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Schedule of fair value quantitative information | The following table presents quantitative information, based on certain empirical data with respect to Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis:
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Carrying amount and estimated fair value of financial instruments | The carrying amount and estimated fair value of financial instruments are as follows:
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Revenue From Contracts With Customers (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest Income Outside the Scope of ASC 606 | The following table presents the Company's sources of noninterest income for the three months ended March 31, 2018 and 2017. Items outside of the scope of the ASC 606 are noted as such.
(1) Not within the scope of ASC 606 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
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Earnings Per Share, Basic and Diluted [Abstract] | ||
Net income available to common stockholders | $ 3,559 | $ 1,881 |
Average common shares outstanding (shares) | 17,931,579 | 19,243,941 |
Less: | ||
Unearned ESOP shares (shares) | 0 | (600,947) |
Unvested restricted stock shares (shares) | (940) | (940) |
Weighted average common shares outstanding (shares) | 17,930,639 | 18,642,054 |
Add - Net effect of dilutive stock options and unvested restricted stock | 461 | 5,462 |
Weighted average diluted common shares outstanding (shares) | 17,931,100 | 18,647,516 |
Basic earnings per common share (usd per share) | $ 0.20 | $ 0.10 |
Diluted earnings per common share (usd per share) | $ 0.20 | $ 0.10 |
Securities - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Amortized cost and fair values of securities | ||
Due in one year or less, amortized cost | $ 86,340 | |
Due in one year or less, fair value | 86,340 | |
Total amortized cost | 101,767 | $ 92,876 |
Total Fair value | 102,170 | 93,383 |
Equity mutual fund [Member] | ||
Amortized cost and fair values of securities | ||
Total amortized cost | 500 | |
Total Fair value | 491 | 499 |
Mortgage - backed securities - residential [Member] | ||
Amortized cost and fair values of securities | ||
Total amortized cost | 11,146 | 11,969 |
Total Fair value | 11,544 | 12,472 |
Collateralized mortgage obligations - residential [Member] | ||
Amortized cost and fair values of securities | ||
Total amortized cost | 4,272 | 4,481 |
Total Fair value | 4,277 | 4,486 |
SBA-guaranteed loan participation certificates [Member] | ||
Amortized cost and fair values of securities | ||
Total amortized cost | 9 | 10 |
Total Fair value | $ 9 | $ 10 |
Securities - Proceeds and Gross Gains (Losses) From Sale of Securities (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2018
USD ($)
| |
Proceeds and Gross Gains (Losses) from Sale of Securities [Abstract] | |
Gain on Sale of Securities, Net | $ 0 |
Loans Receivable - Loan Origination and Risk Management (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases, amount | $ 1,284,664 | $ 1,321,751 |
Multi-family mortgage loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases, amount | 578,144 | 588,383 |
Nonresidential Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases, amount | 163,856 | 169,971 |
Commercial leases [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases, amount | $ 285,222 | $ 310,076 |
Loans Receivable - Allowance for Loan Losses (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Allowance for loan losses and the loans receivable by portfolio segment | ||
Net deferred loan origination costs | $ 1,230 | $ 1,266 |
Loans, net | $ 1,277,553 | $ 1,314,651 |
Loans Receivable - Troubled Debt Restructuring (Details) - USD ($) |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
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Financing Receivable, Modifications [Line Items] | ||
Outstanding Commitments To Borrowers Loans Classified As Troubled Debt Restructurings | $ 0 | $ 0 |
Troubled Debt Restructurings | ||
Financing receivable modifications | 17,000 | |
One-to-four family residential real estate loans - non-owner occupied loans [Member] | Non Accrual Loans [Member] | ||
Troubled Debt Restructurings | ||
Financing receivable modifications | 17,000 | 17,000 |
Allowance for Loan and Lease Losses [Member] | ||
Troubled Debt Restructurings | ||
Valuation Allowances and Reserves, Balance | $ 0 | $ 0 |
Loans Receivable - Modified Troubled Debt Restructuring (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Financing Receivable, Modifications [Line Items] | ||
Loans modified | $ 0 | $ 133 |
Loans Receivable - Narrative (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Dec. 31, 2017 |
|
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Reserve For Uncollected Loan Interest | $ 76,000 | $ 103,000 | |
Financing receivable modifications | 17,000 | ||
Outstanding Commitments To Borrowers Loans Classified As Troubled Debt Restructurings | 0 | 0 | |
Loans modified | 0 | $ 133,000 | |
Allowance for Loan and Lease Losses [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation of reserves allocation | $ 0 | $ 0 |
Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | ||
Available-for-sale Securities Pledged as Collateral | $ 3,300 | $ 3,700 |
Carrying Value of Federal Funds Purchased, Securities Sold under Agreements to Repurchase, and Deposits Received for Securities Loaned | 983 | 768 |
Federal Home Loan Bank Advances [Member] | Period One [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Debt, Long-term and Short-term, Combined Amount | $ 60,000 | $ 60,000 |
Equity Incentive Plans - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 27, 2006 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Options Outstanding | 0 | 1,752,156 | 1,752,156 | |
Share-based compensation expense | $ 0 | $ 979 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,752,156 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Net Settlement Share Issuance | 280,554 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 198,026 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Withheld For Taxes | 82,528 | |||
2006 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (shares) | 3,425,275 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years |
Revenue From Contracts With Customers (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Revenue Recognition [Abstract] | ||
Deposit service charges and fees | $ 978 | $ 950 |
Loan fee income | 70 | 60 |
Commercial mortgage brokerage fees | 41 | 0 |
Residential mortgage banking fees | 30 | 44 |
Trust and insurance commissions and annuities income | 213 | 249 |
Earnings on bank owned life insurance | 66 | 63 |
Other | 141 | 178 |
Total noninterest income | 1,539 | 1,544 |
Interchange income | $ 361 | $ 350 |
Subsequent Events (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Apr. 23, 2018 |
Jun. 30, 2018 |
Apr. 01, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Subsequent Event [Line Items] | |||||
Bank owned life insurance | $ 22,925 | $ 22,859 | |||
Scenario, Forecast [Member] | 15W060 North Frontage Road, Burr Ridge, Illinois [Member] | |||||
Subsequent Event [Line Items] | |||||
Gain (loss) on disposition of real estate | $ 100 | ||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Bank owned life insurance | $ 1,400 | ||||
Subsequent Event [Member] | 15W060 North Frontage Road, Burr Ridge, Illinois [Member] | |||||
Subsequent Event [Line Items] | |||||
Sales price | $ 6,000 |
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