Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 29, 2020 | Jun. 29, 2019 | |
Cover [Abstract] | |||
Entity Registrant Name | COMMUNITY WEST BANCSHARES / | ||
Entity Central Index Key | 0001051343 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 51,258,204 | ||
Entity Common Stock, Shares Outstanding | 8,472,463 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Address, State or Province | CA |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and due from banks | $ 2,536 | $ 2,975 |
Federal funds sold | 3 | 8 |
Interest-earning demand in other financial institutions | 80,122 | 53,932 |
Cash and cash equivalents | 82,661 | 56,915 |
Investment securities - available-for-sale, at fair value; amortized cost of $19,382 at December 31, 2019 and $25,156 at December 31, 2018 | 19,264 | 24,931 |
Investment securities - held-to-maturity, at amortized cost; fair value of $6,302 at December 31, 2019 and $7,269 at December 31, 2018 | 6,132 | 7,301 |
Investment securities - measured at fair value | 167 | 121 |
Federal Home Loan Bank stock, at cost | 2,714 | 2,714 |
Federal Reserve Bank stock, at cost | 1,373 | 1,373 |
Loans: | ||
Held for sale, at lower of cost or fair value | 42,046 | 48,355 |
Held for investment, net of allowance for loan losses of $8,717 at December 31, 2019 and $8,691 at December 31, 2018 | 724,800 | 711,197 |
Total loans | 766,846 | 759,552 |
Other assets acquired through foreclosure, net | 2,524 | 0 |
Premises and equipment, net | 7,655 | 6,381 |
Other assets | 24,534 | 18,003 |
Total assets | 913,870 | 877,291 |
Deposits: | ||
Non-interest-bearing demand | 110,843 | 108,161 |
Interest-bearing demand | 314,278 | 270,431 |
Savings | 15,689 | 14,641 |
Certificates of deposit ($250,000 or more) | 96,431 | 93,439 |
Other certificates of deposit | 213,693 | 229,334 |
Total deposits | 750,934 | 716,006 |
Other borrowings | 65,000 | 75,000 |
Other liabilities | 15,958 | 10,134 |
Total liabilities | 831,892 | 801,140 |
Stockholders equity: | ||
Common stock - no par value, 60,000,000 shares authorized; 8,472,463 shares issued and outstanding at December 31, 2019 and 8,533,346 at December 31, 2018 | 42,586 | 42,964 |
Retained earnings | 39,470 | 33,328 |
Accumulated other comprehensive (loss) | (78) | (141) |
Total stockholders' equity | 81,978 | 76,151 |
Total liabilities and stockholders' equity | $ 913,870 | $ 877,291 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Investment securities available-for-sale, amortized cost | $ 19,382 | $ 25,156 |
Investment securities held-to-maturity, fair value | 6,302 | 7,269 |
Loans: | ||
Held for investment, allowance for loan losses | $ 8,717 | $ 8,691 |
Stockholders equity: | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, shares issued (in shares) | 8,472,463 | 8,533,346 |
Common stock, shares outstanding (in shares) | 8,472,463 | 8,533,346 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income: | |||
Loans, including fees | $ 43,890 | $ 40,865 | $ 36,192 |
Investment securities and other | 1,849 | 1,766 | 1,199 |
Total interest income | 45,739 | 42,631 | 37,391 |
Interest expense: | |||
Deposits | 10,055 | 7,702 | 4,283 |
Other borrowings | 1,327 | 1,286 | 446 |
Total interest expense | 11,382 | 8,988 | 4,729 |
Net interest income | 34,357 | 33,643 | 32,662 |
Provision (credit) for loan losses | (165) | 14 | 411 |
Net interest income after provision for loan losses | 34,522 | 33,629 | 32,251 |
Non-interest income: | |||
Other loan fees | 1,383 | 1,348 | 1,300 |
Gains from loan sales, net | 765 | 0 | 53 |
Service charges | 567 | 459 | 458 |
Document processing fees | 423 | 489 | 558 |
Other | 469 | 332 | 388 |
Total non-interest income | 3,607 | 2,628 | 2,757 |
Non-interest expenses: | |||
Salaries and employee benefits | 17,094 | 16,329 | 15,339 |
Occupancy, net | 3,088 | 3,132 | 2,862 |
Professional services | 1,679 | 1,356 | 1,069 |
Advertising and marketing | 774 | 685 | 750 |
Data processing | 876 | 852 | 725 |
Depreciation | 864 | 764 | 685 |
FDIC assessment | 427 | 770 | 664 |
Stock based compensation | 382 | 478 | 537 |
Other | 1,571 | 1,673 | 1,914 |
Total non-interest expenses | 26,755 | 26,039 | 24,545 |
Income before provision for income taxes | 11,374 | 10,218 | 10,463 |
Provision for income taxes | 3,411 | 2,809 | 5,548 |
Net income | $ 7,963 | $ 7,409 | $ 4,915 |
Earnings per share: | |||
Basic (in dollars per share) | $ 0.94 | $ 0.89 | $ 0.60 |
Diluted (in dollars per share) | $ 0.93 | $ 0.88 | $ 0.57 |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 8,470 | 8,288 | 8,146 |
Diluted (in shares) | 8,579 | 8,451 | 8,589 |
Dividends declared per common share (in dollars per share) | $ 0.215 | $ 0.190 | $ 0.155 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net income | $ 7,963 | $ 7,409 | $ 4,915 |
Other comprehensive income (loss), net: | |||
Unrealized income (loss) on securities available-for-sale (AFS), net (tax effect of ($44), $70, ($32) for each respective period presented) | 63 | (107) | 54 |
Net other comprehensive income (loss) | 63 | (107) | 54 |
Comprehensive income | $ 8,026 | $ 7,302 | $ 4,969 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other comprehensive income (loss), net: | |||
Unrealized income (loss) on securities available-for-sale (AFS), tax effect | $ (44) | $ 70 | $ (32) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2016 | $ 41,575 | $ (29) | $ 23,790 | $ 65,336 |
Balances (in shares) at Dec. 31, 2016 | 8,096,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | $ 0 | 0 | 4,915 | 4,915 |
Exercise of stock options | $ 492 | 0 | 0 | 492 |
Exercise of stock options (in shares) | 97,000 | |||
Stock based compensation | $ 537 | 0 | 0 | 537 |
Stock based compensation (in shares) | 0 | |||
Common stock repurchase | $ 0 | 0 | 0 | 0 |
Common stock repurchase (in shares) | 0 | |||
Dividends on common stock | $ 0 | 0 | (1,264) | (1,264) |
Dividends on common stock (in shares) | 0 | |||
Other comprehensive income (loss), net | $ 0 | 54 | 0 | 54 |
Balance at Dec. 31, 2017 | 42,604 | 25 | 27,441 | 70,070 |
Balance (ASU 2016-01 and ASU 2018-02 [Member]) at Dec. 31, 2017 | $ 0 | (59) | 59 | 0 |
Balances (in shares) at Dec. 31, 2017 | 8,193,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | $ 0 | 0 | 7,409 | 7,409 |
Exercise of stock options | $ 551 | 0 | 0 | 551 |
Exercise of stock options (in shares) | 102,000 | |||
Stock based compensation | $ 478 | 0 | 0 | 478 |
Stock based compensation (in shares) | 0 | |||
Common stock repurchase | $ (669) | 0 | 0 | (669) |
Common stock repurchase (in shares) | (63,000) | |||
Dividends on common stock | $ 0 | 0 | (1,581) | (1,581) |
Dividends on common stock (in shares) | 0 | |||
Other comprehensive income (loss), net | $ 0 | (107) | 0 | (107) |
Conversion of common stock warrants | $ 0 | 0 | 0 | 0 |
Conversion of common stock warrants (in shares) | 301,000 | |||
Balance at Dec. 31, 2018 | $ 42,964 | (141) | 33,328 | $ 76,151 |
Balances (in shares) at Dec. 31, 2018 | 8,533,000 | 8,533,346 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | $ 0 | 0 | 7,963 | $ 7,963 |
Exercise of stock options | $ 270 | 0 | 0 | 270 |
Exercise of stock options (in shares) | 39,000 | |||
Stock based compensation | $ 382 | 0 | 0 | 382 |
Stock based compensation (in shares) | 0 | |||
Common stock repurchase | $ (1,030) | 0 | 0 | (1,030) |
Common stock repurchase (in shares) | (100,000) | |||
Dividends on common stock | $ 0 | 0 | (1,821) | (1,821) |
Dividends on common stock (in shares) | 0 | |||
Other comprehensive income (loss), net | $ 0 | 63 | 0 | 63 |
Balance at Dec. 31, 2019 | $ 42,586 | $ (78) | $ 39,470 | $ 81,978 |
Balances (in shares) at Dec. 31, 2019 | 8,472,000 | 8,472,463 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 7,963 | $ 7,409 | $ 4,915 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Provision (credit) for loan losses | (165) | 14 | 411 |
Depreciation | 864 | 764 | 685 |
Stock-based compensation | 382 | 478 | 537 |
Deferred income taxes | (328) | (529) | 528 |
Net amortization of discounts and premiums for investment securities | 107 | 100 | 80 |
(Gains) losses on: | |||
Sale of repossessed assets, net | 33 | 62 | (150) |
Sale of loans, net | (765) | 0 | (53) |
Sale of assets, net | 7 | 0 | 0 |
Loans originated for sale and principal collections, net | 6,309 | 6,739 | 6,375 |
Changes in: | |||
Other assets | 1,641 | (2,210) | (1,882) |
Other liabilities | (1,366) | 3,416 | 2,719 |
Servicing assets, net | (745) | 78 | 78 |
Net cash provided by operating activities | 13,937 | 16,321 | 14,243 |
Cash flows from investing activities: | |||
Principal pay downs and maturities of available-for-sale securities | 5,686 | 3,436 | 3,256 |
Purchase of available-for-sale securities | 0 | 0 | (9,413) |
Principal pay downs and maturities of held-to-maturity securities | 1,151 | 1,040 | 1,413 |
Purchases of held-to-maturity securities | 0 | (794) | 0 |
Loan originations and principal collections, net | (16,074) | (40,290) | (110,069) |
Purchase of bank owned life insurance | 0 | 0 | 0 |
Purchase of restricted stock, net | 0 | (367) | (277) |
Net increase in interest-bearing deposits in other financial institutions | 0 | 0 | 0 |
Purchase of premises and equipment, net | (2,145) | (1,564) | (2,335) |
Proceeds from sale of other real estate owned and repossessed assets, net | 844 | 484 | 416 |
Net cash used in investing activities | (10,538) | (38,055) | (117,009) |
Cash flows from financing activities: | |||
Net increase in deposits | 34,928 | 16,322 | 87,448 |
Net (decrease) increase in borrowings | (10,000) | 18,157 | 27,843 |
Exercise of stock options | 270 | 551 | 492 |
Cash dividends paid on common stock | (1,821) | (1,581) | (1,264) |
Common stock repurchase | (1,030) | (669) | 0 |
Net cash provided by financing activities | 22,347 | 32,780 | 114,519 |
Net increase (decrease) in cash and cash equivalents | 25,746 | 11,046 | 11,753 |
Cash and cash equivalents at beginning of year | 56,915 | 45,869 | 34,116 |
Cash and cash equivalents at end of year | 82,661 | 56,915 | 45,869 |
Cash paid during the period for: | |||
Interest | 11,675 | 8,321 | 4,357 |
Income taxes | 2,526 | 3,360 | 4,830 |
Non-cash investing and financing activity: | |||
Transfers to other assets acquired through foreclosure, net | 3,401 | 174 | 501 |
Operating lease right-of-use asset | 7,190 | 0 | 0 |
Operating lease liability | $ 6,316 | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Community West Bancshares (“CWBC”), incorporated under the laws of the state of California, is a bank holding company providing full service banking through its wholly-owned subsidiary Community West Bank, N.A. (“CWB” or the “Bank”). These entities are collectively referred to herein as the “Company”. Basis of Presentation The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States (“GAAP”) and conform to practices within the financial services industry. The accounts of the Company and its consolidated subsidiary are included in these Consolidated Financial Statements. All significant intercompany balances and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses and fair value of investment securities available for sale. Although Management believes these estimates to be reasonably accurate, actual amounts may differ. In the opinion of Management, all adjustments considered necessary have been reflected in the financial statements during their preparation. Reclassifications Certain amounts in the consolidated financial statements as of and for the years ended December 31, 2018 and 2017 have been reclassified to conform to the current presentation. The reclassifications have no effect on net income or stockholders’ equity as previously reported. Business Segments Reportable business segments are determined using the “management approach” and are intended to present reportable segments consistent with how the chief operating decision maker organizes segments within the company for making operating decisions and assessing performance. As of December 31, 2019, 2018 and 2017, the Company had only one reportable business segment. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks (including cash items in process of clearing), and federal funds sold. Cash flows from loans originated by the Company and deposits are reported net. The Company maintains amounts due from banks, which at times may exceed federally insured limits. The Company has not experienced any losses in such accounts. Cash Reserve Requirement Depository institutions are required by law to maintain reserves against their transaction deposits. The reserves must be held in cash or with the Federal Reserve Bank (“FRB”). The amount of the reserve varies by bank as the bank is permitted to meet this requirement by maintaining the specified amount as an average balance over a two-week period. The total reserve balance requirement was approximately $3.0 million and $2.9 million as of December 31, 2019 and 2018. Investment Securities Investment securities may be classified as held-to-maturity (“HTM”), available-for-sale (“AFS”) or trading. The appropriate classification is initially decided at the time of purchase. Securities classified as held-to-maturity are those debt securities the Company has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs or general economic conditions. These securities are carried at amortized cost. The sale of a security within three months of its maturity date or after the majority of the principal outstanding has been collected is considered a maturity for purposes of classification and disclosure. Securities classified as AFS or trading are reported as an asset on the Consolidated Balance Sheets at their estimated fair value. As the fair value of AFS securities changes, the changes are reported net of income tax as an element of other comprehensive income (“OCI”), except for impaired securities. When AFS securities are sold, the unrealized gain or loss is reclassified from OCI to non-interest income. The changes in the fair values of trading securities are reported in non-interest income. Securities classified as AFS are debt securities the Company intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as AFS would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, decline in credit quality, and regulatory capital considerations. The Company has its AGM Stock securities classified as measured at fair value. The fair value changes are adjusted through non-interest income monthly. Interest income is recognized based on the coupon rate and increased by accretion of discounts earned or decreased by the amortization of premiums paid over the contractual life of the security using the interest method. For mortgage-backed securities, estimates of prepayments are considered in the constant yield calculations. In estimating whether there are any other than temporary impairment losses, management considers 1) the length of time and the extent to which the fair value has been less than amortized cost, 2) the financial condition and near term prospects of the issuer, 3) the impact of changes in market interest rates, and 4) the intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value and it is not more likely than not the Company would be required to sell the security. Declines in the fair value of individual debt securities available for sale that are deemed to be other than temporary are reflected in earnings when identified. The fair value of the debt security then becomes the new cost basis. For individual debt securities where the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, the other than temporary decline in fair value of the debt security related to 1) credit loss is recognized in earnings, and 2) market or other factors is recognized in other comprehensive income or loss. Credit loss is recorded if the present value of cash flows is less than amortized cost. For individual debt securities where the Company intends to sell the security or more likely than not will not recover all of its amortized cost, the other than temporary impairment is recognized in earnings equal to the entire difference between the securities cost basis and its fair value at the balance sheet date. For individual debt securities for which a credit loss has been recognized in earnings, interest accruals and amortization and accretion of premiums and discounts are suspended when the credit loss is recognized. Interest received after accruals have been suspended is recognized on a cash basis. Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) Stock The Company’s subsidiary bank is a member of the Federal Home Loan Bank (“FHLB”) system and maintains an investment in capital stock of the FHLB. The bank also maintains an investment in FRB stock. These investments are considered equity securities with no actively traded market. These investments are carried at cost, which is equal to the value at which they may be redeemed. The dividend income received from the stock is reported in interest income. We conduct a periodic review and evaluation of our FHLB stock to determine if any impairment exists. No impairment existed in the years ended December 31, 2019 or 2018. Servicing Assets The guaranteed portion of certain Small Business Administration (“SBA”) loans can be sold into the secondary market. Servicing assets are recognized as separate assets when loans are sold with servicing retained. Servicing assets are amortized in proportion to, and over the period of, estimated future net servicing income. The Company uses industry prepayment statistics and its own prepayment experience in estimating the expected life of the loans. Management evaluates its servicing assets for impairment quarterly. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Fair value is determined using discounted future cash flows calculated on a loan-by-loan basis and aggregated by predominate risk characteristics. The initial servicing asset and resulting gain on sale are calculated based on the difference between the best actual par and premium bids on an individual loan basis. CWB is an approved Federal Agricultural Mortgage Corporation ("Farmer Mac") seller/servicer. Servicing assets/liabilities are recognized as separate assets/liabilities as certain servicing requirements are retained. Servicing assets are amortized over the period of, estimated net servicing income. CWB uses Farmer Mac prepayment statistics in estimating the expected life of the loans. Management evaluates its servicing assets for impairment quarterly. Servicing assets are evaluated for impairment based on the fair value of the rights as compared to amortized cost. Fair value is determined using discounted future cash flows calculated on a loan-by-loan basis. The initial servicing asset and resulting gain or calculated based on the contractual net servicing fees. Loans Held For Sale Loans which are originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value determined on an aggregate basis. Valuation adjustments, if any are recognized through a valuation allowance by charges to lower of cost or fair value provision. Loans held for sale are mostly comprised of SBA and commercial agriculture. In 2015, the Company exited from originating single family residential loans for sale. The Company did not incur any lower of cost or fair value provision in the years ended December 31, 2019, 2018 and 2017. Loans Held for Investment and Interest and Fees from Loans Loans are recognized at the principal amount outstanding, net of unearned income, loan participations and amounts charged off. Unearned income includes deferred loan origination fees reduced by loan origination costs. Unearned income on loans is amortized to interest income over the life of the related loan using the level yield method. Interest income on loans is accrued daily using the effective interest method and recognized over the terms of the loans. Loan fees collected for the origination of loans less direct loan origination costs (net deferred loan fees) are amortized over the contractual life of the loan through interest income. If the loan has scheduled payments, the amortization of the net deferred loan fee is calculated using the interest method over the contractual life of the loan. If the loan does not have scheduled payments, such as a line of credit, the net deferred loan fee is recognized as interest income on a straight-line basis over the contractual life of the loan commitment. Commitment fees based on a percentage of a customer’s unused line of credit and fees related to standby letters of credit are recognized over the commitment period. When loans are repaid, any remaining unamortized balances of unearned fees, deferred fees and costs and premiums and discounts paid on purchased loans are accounted for though interest income. Nonaccrual loans: For all loan types, when a loan is placed on nonaccrual status, all interest accrued but uncollected is reversed against interest income in the period in which the status is changed. Subsequent payments received from the customer are applied to principal and no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required. The Company occasionally recognizes income on a cash basis for non-accrual loans in which the collection of the remaining principal balance is not in doubt. Impaired loans: Troubled debt restructured loan (“TDR”): Allowance for Loan Losses and Provision for Loan Losses The Company maintains a detailed, systematic analysis and procedural discipline to determine the amount of the allowance for loan losses (“ALL”). The ALL is based on estimates and is intended to be appropriate to provide for probable losses inherent in the loan portfolio. This process involves deriving probable loss estimates that are based on migration analysis and historical loss rates, in addition to qualitative factors that are based on management’s judgment. The migration analysis and historical loss rate calculations are based on the annualized loss rates and the Company extended its time horizon for the ALL methodology in 2019. Migration analysis is utilized for the Commercial Real Estate (“CRE”), Commercial, Commercial Agriculture, Small Business Administration (“SBA”), Home Equity Line of Credit (“HELOC”), Single Family Residential, and Consumer portfolios. The historical loss rate method is utilized primarily for the Manufactured Housing portfolio. The migration analysis takes into account the risk rating of loans that are charged off in each loan category. Loans that are considered Doubtful are typically charged off. The following is a description of the characteristics of loan ratings. Loan ratings are reviewed as part of our normal loan monitoring process, but, at a minimum, updated on an annual basis. Substantially Risk Free – These borrowers have virtually no of default or loss given default and present no identifiable or potential adverse risk to the Company. Documented repayment is either backed by the full faith and credit of the United States Government, or secured by cash collateral at a ratio of 115% of the principal borrowed. The collateral must be in the possession of the Company and free from potential claim. In addition, these credits will conform in all aspects to established loan policies and procedures, laws, rules, and regulations. Nominal Risk – Pass/Management Attention Risk Special Mention - Substandard - Doubtful - Loss - The Company’s ALL is maintained at a level believed appropriate by management to absorb known and inherent probable losses on existing loans. The allowance is charged for losses when management believes that full recovery on the loan is unlikely. The following is the Company’s policy regarding charging off loans. Commercial, CRE and SBA Loans Charge-offs on these loan categories are taken as soon as all or a portion of any loan balance is deemed to be uncollectible. A loan is considered impaired when, based on current information, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest under the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and/or interest payments. Loans that experience insignificant payment delays or payment shortfalls generally are not classified as impaired. Generally, loan balances are charged-down to the fair value of the collateral, if, based on a current assessment of the value, an apparent deficiency exists. In the event there is no perceived equity, the loan is charged-off in full. Unsecured loans which are delinquent over 90 days are also charged-off in full. Single Family Real Estate, HELOC’s and Manufactured Housing Loans Consumer loans and residential mortgages secured by one-to-four family residential properties, HELOC and manufactured housing loans in which principal or interest is due and unpaid for 90 days, are evaluated for impairment. Loan balances are charged-off to the fair value of the property, less estimated selling costs, if, based on a current appraisal, an apparent deficiency exists. In the event there is no perceived equity, the loan is generally fully charged-off. Consumer Loans All consumer loans (excluding real estate mortgages, HELOCs and savings secured loans) are charged-off or charged-down to net recoverable value before becoming 120 days or five payments delinquent. The ALL calculation for the different loan portfolios is as follows: • Commercial Real Estate, Commercial, Commercial Agriculture, SBA, HELOC, Single Family Residential, and Consumer – Migration analysis combined with risk rating is used to determine the required ALL for all non-impaired loans. In addition, the migration results are adjusted based upon qualitative factors that affect the specific portfolio category. Reserves on impaired loans are determined based upon the individual characteristics of the loan. • Manufactured Housing – The ALL is calculated on the basis of loss history and risk rating, which is primarily a function of delinquency. In addition, the loss results are adjusted based upon qualitative factors that affect this specific portfolio. The Company evaluates and individually assesses for impairment loans classified as substandard or doubtful in addition to loans either on nonaccrual, considered a TDR or when other conditions exist which lead management to review for possible impairment. Measurement of impairment on impaired loans is determined on a loan-by-loan basis and in total establishes a specific reserve for impaired loans. The amount of impairment is determined by comparing the recorded investment in each loan with its value measured by one of three methods: • The expected future cash flows are estimated and then discounted at the effective interest rate. • The value of the underlying collateral net of selling costs. Selling costs are estimated based on industry standards, the Company’s actual experience or actual costs incurred as appropriate. When evaluating real estate collateral, the Company typically uses appraisals or valuations, no more than twelve months old at time of evaluation. When evaluating non-real estate collateral securing the loan, the Company will use audited financial statements or appraisals no more than twelve months old at time of evaluation. Additionally, for both real estate and non-real estate collateral, the Company may use other sources to determine value as deemed appropriate. • The loan’s observable market price. Interest income is not recognized on impaired loans except for limited circumstances in which a loan, although impaired, continues to perform in accordance with the loan contract and the borrower provides financial information to support maintaining the loan on accrual. The Company determines the appropriate ALL on a monthly basis. Any differences between estimated and actual observed losses from the prior month are reflected in the current period in determining the appropriate ALL and adjusted as deemed necessary. The review of the appropriateness of the allowance takes into consideration such factors as concentrations of credit, changes in the growth, size and composition of the loan portfolio, overall and individual portfolio quality, review of specific problem loans, collateral, guarantees and economic and environmental conditions that may affect the borrowers' ability to pay and/or the value of the underlying collateral. Additional factors considered include: geographic location of borrowers, changes in the Company’s product-specific credit policy and lending staff experience. These estimates depend on the outcome of future events and, therefore, contain inherent uncertainties. Another component of the ALL considers qualitative factors related to non-impaired loans. The qualitative portion of the allowance on each of the loan pools is based on changes in any of the following factors: • Concentrations of credit • International risk • Trends in volume, maturity, and composition of loans • Volume and trend in delinquency, nonaccrual, and classified assets • Economic conditions • Geographic distance • Policy and procedures or underwriting standards • Staff experience and ability • Value of underlying collateral • Competition, legal, or regulatory environment • Quality of loan review and Board oversight Off Balance Sheet and Credit Exposure In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the consolidated financial statements when they are funded. They involve, to varying degrees, elements of credit risk in excess of amounts recognized in the consolidated balance sheets. Losses would be experienced when the Company is contractually obligated to make a payment under these instruments and must seek repayment from the borrower, which may not be as financially sound in the current period as they were when the commitment was originally made. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company enters into credit arrangements that generally provide for the termination of advances in the event of a covenant violation or other event of default. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. The commitments are collateralized by the same types of assets used as loan collateral. As with outstanding loans, the Company applies qualitative factors and utilization rates to its off-balance sheet obligations in determining an estimate of losses inherent in these contractual obligations. The estimate for loan losses on off-balance sheet instruments is included within other liabilities and the charge to income that establishes this liability is included in non-interest expense. Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the terms of the leases or the estimated useful lives of the improvements, whichever is shorter. Generally, the estimated useful lives of other items of premises and equipment are as follows: Years Building and improvements 31.5 Furniture and equipment 5 – 10 Electronic equipment and software 3 – 5 Leases At inception, contracts are evaluated to determine whether the contract constitutes a lease agreement. For contracts that are determined to be an operating lease, a corresponding Right of Use ("ROU") asset and operating lease liability are recorded in separate line items on the Consolidated Balance Sheet. ROU assets represent the Company's right to use an underlying asset during the lease term and a lease liability represents the Company's commitment to make contractually obligated lease payments. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease and are based on the present value of lease payments over the lease term. The measurement of the operating lease ROU asset includes any lease payments made and is reduced by lease incentive that are paid or are payable to the Company. Variable lease payments that depend on an index are included in lease payments based on the rate in effect at the commencement date of the lease. Lease payments are recognized on a straight-line basis as part of occupancy expense over the lease term. As the rate implicit in the lease is not readily determinable, the Company's incremental borrowing rate is used to determine the present value of lease payments. This rate gives consideration to the applicable FHLB collateralized borrowing rates and is based on the information available at the commencement date. The Company has elected to apply the short-term lease measurement and recognition exemption to leases with an initial term of 12 months or less, therefore, these leases are not recorded on the Company's Balance Sheet. Lease expense of these leases is recognized over the lease term on a straight-line basis. The Company's lease agreements may include options to extend or terminate the lease. These options are included in the lease term when it is reasonably certain that the option will be exercised. In addition to the package of practical expedients, the Company also elected the practical expedient that allows lessees to make an accounting policy election to not separate non-lease components from the associated lease component, and instead account for them all together as part of the applicable lease component. The majority of the Company's non-lease components, such as common area maintenance and taxes, are variable and expensed as incurred. Variable payment amounts are determined in arrears by the landlord depending on actual costs incurred. See ''Note 14. Leases" of these Notes to Consolidated Financial Statements for further disclosures required under the standard. Foreclosed Real Estate and Repossessed Assets Foreclosed real estate and other repossessed assets are recorded at fair value at the time of foreclosure less estimated costs to sell. Any excess of loan balance over the fair value less estimated costs to sell of the other assets is charged-off against the allowance for loan losses. Any excess of the fair value less estimated costs to sell over the loan balance is recorded as a loan loss recovery to the extent of the loan loss previously charged-off against the allowance for loan losses; and, if greater, recorded as a gain on foreclosed assets. Subsequent to the legal ownership date, the Company periodically performs a new valuation and the asset is carried at the lower of carrying amount or fair value less estimated costs to sell. Operating expenses or income, and gains or losses on disposition of such properties, are recorded in current operations. Income Taxes The Company uses the asset and liability method, which recognizes an asset or liability representing the tax effects of future deductible or taxable amounts that have been recognized in the consolidated financial statements. Due to tax regulations, certain items of income and expense are recognized in different periods for tax return purposes than for financial statement reporting. These items represent “temporary differences.” Deferred income taxes are recognized for the tax effect of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is established for deferred tax assets if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets may not be realized. Any interest or penalties assessed by the taxing authorities is classified in the financial statements as income tax expense. Deferred tax assets are included in other assets on the consolidated balance sheets. Management evaluates the Company’s deferred tax asset for recoverability using a consistent approach which considers the relative impact of negative and positive evidence, including the Company’s historical profitability and projections of future taxable income. The Company is required to establish a valuation allowance for deferred tax assets and record a charge to income if management determines, based on available evidence at the time the determination is made, that it is more likely than not that some portion or all of the deferred tax assets may not be realized. The Company is subject to the provisions of ASC 740, Income Taxes Bank Owned Life Insurance Bank owned life insurance is stated at its cash surrender value with changes recorded in other non-interest income in the consolidated income statements. The cash surrender value of the underlying policies was $6.9 million and $6.7 million as of December 31, 2019 and 2018, respectively. There are no loans offset against cash surrender values, and there are no restrictions as to the use of proceeds. Fair Value of Financial Instruments The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities. FASB ASC 820, Fair Value Measurements and Disclosures • Level 1— Observable quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2— Observable quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, matrix pricing or model-based valuation techniques where all significant assumptions are observable, either directly or indirectly in the market. • Level 3— Model-based techniques where all significant assumptions are not observable, either directly or indirectly, in the market. These unobservable assumptions reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques may include use of discounted cash flow models and similar techniques. The availability of observable inputs varies based on the nature of the specific financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Fair value is a market-based measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. When market assumptions are available, ASC 820 requires the Company to make assumptions regarding the assumptions that market participants would use to estimate the fair value of the financial instrument at the measurement date. FASB ASC 825, Financial Instruments Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction at December 31, 2019 or 2018. The estimated fair value amounts for December 31, 2019 and 2018 have been measured as of period-end, and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those dates. As such, the estimated fair values of these financial instruments subsequent to the reporting date may be different than the amounts reported at the period-end. The information presented in Note 16, “Fair Value Measurement,” should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only required for a limited portion of the Company’s assets and liabilities. Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimate, comparisons between the Company’s disclosures and those of other companies or banks may not be meaningful. The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments: Cash and cash equivalents The carrying amounts reported in the consolidated balance sheets for cash and due from banks approximate their fair value. Money market investments The carrying amounts reported in the consolidated balance sheets for money market investments approximate their fair value. Investmen |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2019 | |
INVESTMENT SECURITIES [Abstract] | |
INVESTMENT SECURITIES | 2. INVESTMENT SECURITIES The amortized cost and estimated fair value of investment securities are as follows: December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Securities available-for-sale (in thousands) U.S. government agency notes $ 8,112 $ — $ (64 ) $ 8,048 U.S. government agency collateralized mortgage obligations ("CMO") 11,270 23 (77 ) 11,216 Total $ 19,382 $ 23 $ (141 ) $ 19,264 Securities held-to-maturity U.S. government agency mortgage backed securities ("MBS") $ 6,132 $ 189 $ (19 ) $ 6,302 Total $ 6,132 $ 189 $ (19 ) $ 6,302 Securities measured at fair value Equity securities: Farmer Mac class A stock $ 66 $ 101 $ — $ 167 Total $ 66 $ 101 $ — $ 167 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Securities available-for-sale (in thousands) U.S. government agency notes $ 12,225 $ — $ (155 ) $ 12,070 U.S. government agency collateralized mortgage obligations ("CMO") 12,931 9 (79 ) 12,861 Total 25,156 9 (234 ) 24,931 Securities held-to-maturity U.S. government agency mortgage backed securities ("MBS") $ 7,301 $ 118 $ (150 ) $ 7,269 Total $ 7,301 $ 118 $ (150 ) $ 7,269 Securities measured at fair value Equity securities: Farmer Mac class A stock $ 66 $ 55 $ — $ 121 Total $ 66 $ 55 $ — $ 121 At December 31, 2019 and 2018, $25.6 million and $32.2 million of securities at carrying value, respectively, were pledged to the Federal Home Loan Bank (“FHLB”), as collateral for current and future advances. The Company had no investment security sales in 2019 or 2018. The maturity periods and weighted average yields of investment securities at December 31, 2019 and 2018 were as follows: December 31, 2019 Less than One Year One to Five Years Five to Ten Years Over Ten Years Total Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield Securities available-for-sale (dollars in thousands) U.S. government agency notes $ — — $ 1,094 2.3 % $ 6,955 2.8 % $ — — $ 8,049 2.8 % U.S. government agency CMO — — 3,766 2.1 % 6,120 2.3 % 1,329 2.4 % 11,215 2.3 % Total $ — — $ 4,860 2.2 % $ 13,075 2.6 % $ 1,329 2.4 % $ 19,264 2.5 % Securities held-to-maturity U.S. government agency MBS $ — — $ 2,465 4.2 % $ 2,887 2.9 % $ 780 3.6 % $ 6,132 3.5 % Total $ — — $ 2,465 4.2 % $ 2,887 2.9 % $ 780 3.6 % $ 6,132 3.5 % Securities measured at fair value Farmer Mac class A stock — — — — — — — — 167 — Total — — — — — — — — 167 — December 31, 2018 Less than One Year One to Five Years Five to Ten Years Over Ten Years Total Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield Securities available-for-sale (dollars in thousands) U.S. government agency notes $ 1,946 2.6 % $ 1,388 2.6 % $ 8,736 3.1 % $ — — $ 12,070 2.0 % U.S. government agency CMO — — 2,717 2.5 % 7,284 2.8 % 2,860 3.2 % 12,861 1.9 % Total $ 1,946 2.6 % $ 4,105 2.5 % $ 16,020 3.0 % $ 2,860 3.2 % $ 24,931 2.0 % Securities held-to-maturity U.S. government agency MBS $ — — $ 2,058 4.7 % $ 4,449 3.2 % $ 794 3.6 % $ 7,301 3.3 % Total $ — — $ 2,058 4.7 % $ 4,449 3.2 % $ 794 3.6 % $ 7,301 3.3 % Securities measured at fair value Farmer Mac class A stock — — — — — — — — 121 — Total — — — — — — — — 121 — The amortized cost and fair value of investment securities by contractual maturities as of the periods presented were as shown below: December 31, 2019 2018 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Securities available for sale (in thousands) Due in one year or less $ — $ — $ 1,998 $ 1,946 After one year through five years 4,884 4,860 4,138 4,105 After five years through ten years 13,121 13,075 16,107 16,020 After ten years 1,377 1,329 2,913 2,860 Farmer Mac class A stock — — — — Total $ 19,382 $ 19,264 $ 25,156 $ 24,931 Securities held to maturity Due in one year or less $ — $ — $ — $ — After one year through five years 2,465 2,565 2,058 2,153 After five years through ten years 2,887 2,892 4,449 4,323 After ten years 780 845 794 793 Total $ 6,132 $ 6,302 $ 7,301 $ 7,269 Securities measured at fair value Farmer Mac class A stock $ 66 $ 167 $ 66 $ 121 Total $ 66 $ 167 $ 66 $ 121 Actual maturities may differ from contractual maturities as borrowers or issuers have the right to prepay or call the investment securities. Changes in interest rates may also impact prepayments. The following tables show all securities that are in an unrealized loss position: December 31, 2019 Less Than Twelve Months More Than Twelve Months Total Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Securities available-for-sale (in thousands) U.S. government agency notes $ 3 $ 1,126 $ 61 $ 6,922 $ 64 $ 8,048 U.S. government agency CMO 25 5,275 52 2,264 77 7,539 Total $ 28 $ 6,401 $ 113 $ 9,186 $ 141 $ 15,587 Securities held-to-maturity U.S. Government-agency MBS $ — $ — $ 19 $ 2,139 $ 19 $ 2,139 Total $ — $ — $ 19 $ 2,139 $ 19 $ 2,139 Securities measured at fair value Equity securities: Farmer Mac class A stock $ — $ — $ — $ — $ — $ — Total $ — $ — $ — $ — $ — $ — December 31, 2018 Less Than Twelve Months More Than Twelve Months Total Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Securities available-for-sale (in thousands) U.S. government agency notes $ 21 $ 4,001 $ 134 $ 8,070 $ 155 $ 12,071 U.S. government agency CMO 2 4,749 77 3,289 79 8,038 Total $ 23 $ 8,750 $ 211 $ 11,359 $ 234 $ 20,109 Securities held-to-maturity U.S. Government-agency MBS $ 10 $ 1,706 $ 140 $ 2,094 $ 150 $ 3,800 Total $ 10 $ 1,706 $ 140 $ 2,094 $ 150 $ 3,800 Securities measured at fair value Equity securities: Farmer Mac class A stock $ — $ — $ — $ — $ — $ — Total $ — $ — $ — $ — $ — $ — As of December 31, 2019 and 2018, there were 20 and 21 securities, respectively, in an unrealized loss position. Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other than temporary impairment losses, management considers, among other things (i) the length of time and the extent to which the fair value has been less than cost (ii) the financial condition and near-term prospects of the issuer and (iii) the Company’s intent to sell an impaired security and if it is not more likely than not it will be required to sell the security before the recovery of its amortized basis. The unrealized losses are primarily due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the bonds approach their maturity date, repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of December 31, 2019 and 2018, management believes the impairments detailed in the table above are temporary and no other than temporary impairment loss has been realized in the Company’s consolidated income statements. |
LOANS HELD FOR SALE
LOANS HELD FOR SALE | 12 Months Ended |
Dec. 31, 2019 | |
LOANS HELD FOR SALE [Abstract] | |
LOANS HELD FOR SALE | 3. LOANS HELD FOR SALE SBA and Agriculture Loans As of December 31, 2019 and 2018, the Company had approximately $10.4 million and $13.6 million, respectively, of SBA loans included in loans held for sale. As of December 31, 2019 and 2018, the principal balance of SBA loans serviced for others was $5.2 million and $7.2 million, respectively. The Company’s agricultural lending program includes loans for agricultural land, agricultural operational lines, and agricultural term loans for crops, equipment and livestock. The primary products are supported by guarantees issued from the USDA, FSA, and the USDA Business and Industry loan program. As of December 31, 2019 and 2018, the Company had $31.6 million and $34.8 million of USDA loans included in loans held for sale, respectively. As of December 31, 2019 and 2018, the principal balance of USDA loans serviced for others was $1.9 million and $2.0 million, respectively. |
LOANS HELD FOR INVESTMENT
LOANS HELD FOR INVESTMENT | 12 Months Ended |
Dec. 31, 2019 | |
LOANS HELD FOR INVESTMENT [Abstract] | |
LOANS HELD FOR INVESTMENT | 4. LOANS HELD FOR INVESTMENT The composition of the Company’s loans held for investment loan portfolio follows: December 31, 2019 2018 (in thousands) Manufactured housing $ 257,247 $ 247,114 Commercial real estate 385,642 365,809 Commercial 69,843 83,753 SBA 4,429 5,557 HELOC 4,531 6,756 Single family real estate 11,845 11,261 Consumer 94 46 733,631 720,296 Allowance for loan losses (8,717 ) (8,691 ) Deferred fees, net (58 ) (337 ) Discount on SBA loans (56 ) (71 ) Total loans held for investment, net $ 724,800 $ 711,197 The following tables present the contractual aging of the recorded investment in past due held for investment loans by class of loans: December 31, 2019 Current 30-59 Days Past Due 60-89 Days Past Due Over 90 Days Past Due Total Past Due Nonaccrual Total Recorded Investment Over 90 Days and Accruing (in thousands) Manufactured housing $ 256,251 $ 156 $ 246 $ — $ 402 $ 594 $ 257,247 $ — Commercial real estate: Commercial real estate 327,255 — — — — 84 327,339 — SBA 504 1st trust deed 17,151 1,401 — — 1,401 — 18,552 — Land 4,457 — — — — — 4,457 — Construction 35,294 — — — — — 35,294 — Commercial 68,224 — — — — 1,619 69,843 — SBA 3,935 112 — — 112 382 4,429 — HELOC 4,531 — — — — — 4,531 — Single family real estate 11,813 32 — — 32 — 11,845 — Consumer 94 — — — — — 94 — Total $ 729,005 $ 1,701 $ 246 $ — $ 1,947 $ 2,679 $ 733,631 $ — December 31, 2018 Current 30-59 Days Past Due 60-89 Days Past Due Over 90 Days Past Due Total Past Due Nonaccrual Total Recorded Investment Over 90 Days and Accruing (in thousands) Manufactured housing $ 246,456 $ 285 $ 144 $ — $ 429 $ 229 $ 247,114 $ — Commercial real estate: Commercial real estate 267,377 2,478 — — 2,478 102 269,957 — SBA 504 1st trust deed 20,835 — 322 — 322 — 21,157 — Land 6,381 — — — — — 6,381 — Construction 67,835 479 — — 479 — 68,314 — Commercial 78,857 15 — — 15 4,881 83,753 — SBA 4,741 — — — — 816 5,557 — HELOC 6,558 — — — — 198 6,756 — Single family real estate 11,221 16 — 24 40 — 11,261 — Consumer 46 — — — — — 46 — Total $ 710,307 $ 3,273 $ 466 $ 24 $ 3,763 $ 6,226 $ 720,296 $ — Allowance for Loan Losses The following table summarizes the changes in the allowance for loan losses: December 31, 2019 2018 2017 (in thousands) Beginning balance $ 8,691 $ 8,420 $ 7,464 Charge-offs (31 ) (133 ) (203 ) Recoveries 222 390 748 Net recoveries 191 257 545 Provision (credit) (165 ) 14 411 Ending balance $ 8,717 $ 8,691 $ 8,420 As of December 31, 2019 and 2018, the Company had reserves for credit losses on undisbursed loans of $85,000 and $73,000 which were included in Other liabilities. The following tables summarize the changes in the allowance for loan losses by portfolio type: For the Year Ended December 31, Manufactured Housing Commercial Real Estate Commercial SBA HELOC Single Family Real Estate Consumer Total 2019 (in thousands) Beginning balance $ 2,196 $ 5,028 $ 1,210 $ 79 $ 90 $ 88 $ — $ 8,691 Charge-offs — — (31 ) — — — — (31 ) Recoveries 54 52 60 50 5 1 — 222 Net (charge-offs) recoveries 54 52 29 50 5 1 — 191 Provision (credit) (66 ) 137 (77 ) (97 ) (68 ) 3 3 (165 ) Ending balance $ 2,184 $ 5,217 $ 1,162 $ 32 $ 27 $ 92 $ 3 $ 8,717 2018 Beginning balance $ 2,180 $ 4,844 $ 1,133 $ 73 $ 92 $ 98 $ — $ 8,420 Charge-offs (6 ) — (127 ) — — — — (133 ) Recoveries 120 15 66 133 55 1 — 390 Net (charge-offs) recoveries 114 15 (61 ) 133 55 1 — 257 Provision (credit) (98 ) 169 138 (127 ) (57 ) (11 ) — 14 Ending balance $ 2,196 $ 5,028 $ 1,210 $ 79 $ 90 $ 88 $ — $ 8,691 2017 Beginning balance $ 2,201 $ 3,707 $ 1,241 $ 106 $ 100 $ 109 $ — $ 7,464 Charge-offs (119 ) — — (30 ) — (54 ) — (203 ) Recoveries 142 249 161 177 18 1 — 748 Net (charge-offs) recoveries 23 249 161 147 18 (53 ) — 545 Provision (credit) (44 ) 888 (269 ) (180 ) (26 ) 42 — 411 Ending balance $ 2,180 $ 4,844 $ 1,133 $ 73 $ 92 $ 98 $ — $ 8,420 The following tables present impairment method information related to loans and allowance for loan losses by loan portfolio segment: Manufactured Housing Commercial Real Estate Commercial SBA HELOC Single Family Real Estate Consumer Total Loans Loans Held for Investment as of December 31, 2019: (in thousands) Recorded Investment: Impaired loans with an allowance recorded $ 5,702 $ — $ — $ — $ — $ 470 $ — $ 6,172 Impaired loans with no allowance recorded 2,296 318 1,802 382 — 1,858 — 6,656 Total loans individually evaluated for impairment 7,998 318 1,802 382 — 2,328 — 12,828 Loans collectively evaluated for impairment 249,249 385,324 68,041 4,047 4,531 9,517 94 720,803 Total loans held for investment $ 257,247 $ 385,642 $ 69,843 $ 4,429 $ 4,531 $ 11,845 $ 94 $ 733,631 Unpaid Principal Balance Impaired loans with an allowance recorded $ 5,702 $ — $ — $ — $ — $ 470 $ — $ 6,172 Impaired loans with no allowance recorded 3,134 384 2,156 736 — 1,858 — 8,268 Total loans individually evaluated for impairment 8,836 384 2,156 736 — 2,328 — 14,440 Loans collectively evaluated for impairment 249,249 385,324 68,041 4,047 4,531 9,517 94 720,803 Total loans held for investment $ 258,085 $ 385,708 $ 70,197 $ 4,783 $ 4,531 $ 11,845 $ 94 $ 735,243 Related Allowance for Loan Losses Impaired loans with an allowance recorded $ 334 $ — $ — $ — $ — $ 18 $ — $ 352 Impaired loans with no allowance recorded — — — — — — — — Total loans individually evaluated for impairment 334 — — — — 18 — 352 Loans collectively evaluated for impairment 1,850 5,217 1,162 32 27 74 3 8,365 Total loans held for investment $ 2,184 $ 5,217 $ 1,162 $ 32 $ 27 $ 92 $ 3 $ 8,717 Manufactured Housing Commercial Real Estate Commercial SBA HELOC Single Family Real Estate Consumer Total Loans Loans Held for Investment as of December 31, 2018: (in thousands) Recorded Investment: Impaired loans with an allowance recorded $ 8,726 $ 243 $ — $ — $ — $ 775 $ — $ 9,744 Impaired loans with no allowance recorded 3,269 102 7,811 815 198 1,964 — 14,159 Total loans individually evaluated for impairment 11,995 345 7,811 815 198 2,739 — 23,903 Loans collectively evaluated for impairment 235,119 365,464 75,942 4,742 6,558 8,522 46 696,393 Total loans held for investment $ 247,114 $ 365,809 $ 83,753 $ 5,557 $ 6,756 $ 11,261 $ 46 $ 720,296 Unpaid Principal Balance Impaired loans with an allowance recorded $ 8,726 $ 243 $ — $ — $ — $ 775 $ — $ 9,744 Impaired loans with no allowance recorded 4,321 160 8,078 1,211 249 1,963 — 15,982 Total loans individually evaluated for impairment 13,047 403 8,078 1,211 249 2,738 — 25,726 Loans collectively evaluated for impairment 235,119 365,464 75,942 4,742 6,558 8,522 46 696,393 Total loans held for investment $ 248,166 $ 365,867 $ 84,020 $ 5,953 $ 6,807 $ 11,260 $ 46 $ 722,119 Related Allowance for Loan Losses Impaired loans with an allowance recorded $ 432 $ 9 $ — $ — $ — $ 24 $ — $ 465 Impaired loans with no allowance recorded — — — — — — — — Total loans individually evaluated for impairment 432 9 — — — 24 — 465 Loans collectively evaluated for impairment 1,764 5,019 1,210 79 90 64 — 8,226 Total loans held for investment $ 2,196 $ 5,028 $ 1,210 $ 79 $ 90 $ 88 $ — $ 8,691 Included in impaired loans are $0.6 million and $3.1 million of loans guaranteed by government agencies at December 31, 2019 and 2018, respectively. A valuation allowance is established for an impaired loan when the fair value of the loan is less than the recorded investment. In certain cases, portions of impaired loans are charged-off to realizable value instead of establishing a valuation allowance and are included, when applicable in the table above as “Impaired loans without specific valuation allowance under ASC 310.” The valuation allowance disclosed above is included in the allowance for loan losses reported in the consolidated balance sheets as of December 31, 2019 and 2018. The table below reflects recorded investment in loans classified as impaired: December 31, 2019 2018 (in thousands) Impaired loans with a specific valuation allowance under ASC 310 $ 6,172 $ 9,744 Impaired loans without a specific valuation allowance under ASC 310 6,656 14,159 Total impaired loans $ 12,828 $ 23,903 Valuation allowance related to impaired loans $ 352 $ 465 The following table presents impaired loans by class: December 31, 2019 2018 (in thousands) Manufactured housing $ 7,998 $ 11,995 Commercial real estate : Commercial real estate 84 102 SBA 504 1st trust deed 234 243 Land — — Construction — — Commercial 1,802 7,811 SBA 382 815 HELOC — 198 Single family real estate 2,328 2,739 Consumer — — Total $ 12,828 $ 23,903 The following table summarizes the average investment in impaired loans by class and the related interest income recognized: 2019 2018 2017 Average Investment in Impaired Loans Interest Income Average Investment in Impaired Loans Interest Income Average Investment in Impaired Loans Interest Income Manufactured housing $ 9,171 $ 640 $ 8,709 $ 887 $ 7,616 $ 659 Commercial real estate: Commercial real estate 104 — 108 — 121 1 SBA 504 1st 190 27 341 19 502 19 Land — — — — — — Construction — — — — — — Commercial 5,491 164 7,520 245 5,176 339 SBA 970 32 874 18 797 21 HELOC 127 11 199 11 259 — Single family real estate 2,451 127 2,298 144 2,013 103 Consumer — — — — — — Total $ 18,504 $ 1,001 $ 20,049 $ 1,324 $ 16,484 $ 1,142 The Company is not committed to lend significant additional funds on these impaired loans. The following table reflects the recorded investment in certain types of loans at the periods indicated: December 31, 2019 2018 2017 (in thousands) Nonaccrual loans $ 2,679 $ 6,226 $ 6,844 SBA guaranteed portion of loans included above $ 290 $ 2,848 $ 2,372 Troubled debt restructured loans, gross $ 10,774 $ 16,749 $ 16,603 Loans 30 through 89 days past due with interest accruing $ 1,947 $ — $ — Interest income recognized on impaired loans $ 1,001 $ 1,324 $ 1,142 Foregone interest on nonaccrual and troubled debt restructured loans $ 512 $ 454 $ 379 Allowance for loan losses to gross loans held for investment 1.19 % 1.21 % 1.24 % The accrual of interest is discontinued when substantial doubt exists as to collectability of the loan; generally at the time the loan is 90 days delinquent. Any unpaid but accrued interest is reversed at that time. Thereafter, interest income is no longer recognized on the loan. Interest income may be recognized on impaired loans to the extent they are not past due by 90 days. Interest on nonaccrual loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The following table presents the composition of nonaccrual loans by class of loans: December 31, 2019 2018 (in thousands) Manufactured housing $ 594 $ 229 Commercial real estate: Commercial real estate 84 102 SBA 504 1st trust deed — — Land — — Construction — — Commercial 1,619 4,881 SBA 382 816 HELOC — 198 Single family real estate — — Consumer — — Total $ 2,679 $ 6,226 Included in nonaccrual loans are $0.3 million and $2.8 million of loans guaranteed by government agencies at December 31, 2019 and 2018, respectively. The guaranteed portion of each SBA loan is repurchased from investors when those loans become past due 120 days by either CWB or the SBA directly. After the foreclosure and collection process is complete, the principal balance of loans repurchased by CWB are reimbursed by the SBA. Although these balances do not earn interest during this period, they generally do not result in a loss of principal to CWB; therefore a repurchase reserve has not been established related to these loans. The Company utilizes an internal asset classification system as a means of reporting problem and potential problem loans. Under the Company’s risk rating system, the Company classifies problem and potential problem loans as “Special Mention,” “Substandard,” “Doubtful” and “Loss”. For a detailed discussion on these risk classifications see “Note 1 Summary of Significant Accounting Policies – Allowance for Loan Losses and Provision for Loan Losses” of this Form 10-K. Loans that do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses that deserve management’s close attention are deemed to be Special Mention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan 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. Risk rates are updated as part of the normal loan monitoring process, at a minimum, annually. The following tables present gross loans by risk rating: December 31, 2019 Pass Special Mention Substandard Doubtful Total (in thousands) Manufactured housing $ 256,430 $ — $ 817 $ — $ 257,247 Commercial real estate: Commercial real estate 323,748 3,507 84 — 327,339 SBA 504 1st trust deed 18,250 — 302 — 18,552 Land 4,457 — — — 4,457 Construction 33,280 — 2,014 — 35,294 Commercial 66,525 170 1,619 — 68,314 SBA 2,379 28 1,154 3,561 HELOC 4,531 — — — 4,531 Single family real estate 11,840 — 5 — 11,845 Consumer 94 — — — 94 Total, net $ 721,534 $ 3,705 $ 5,995 $ — $ 731,234 Government guarantee — 1,530 867 — 2,397 Total $ 721,534 $ 5,235 $ 6,862 $ — $ 733,631 December 31, 2018 Pass Special Mention Substandard Doubtful Total (in thousands) Manufactured housing $ 246,884 $ — $ 230 $ — $ 247,114 Commercial real estate: Commercial real estate 269,855 — 102 — 269,957 SBA 504 1st trust deed 20,109 — 1,048 — 21,157 Land 6,381 — — — 6,381 Construction 66,683 1,631 — — 68,314 Commercial 73,580 — 7,771 — 81,351 SBA 2,770 34 1,557 — 4,361 HELOC 6,558 — 198 — 6,756 Single family real estate 11,256 — 5 — 11,261 Consumer 46 — — — 46 Total, net $ 704,122 $ 1,665 $ 10,911 $ — $ 716,698 Government guarantee — — 3,598 — 3,598 Total $ 704,122 $ 1,665 $ 14,509 $ — $ 720,296 Troubled Debt Restructured Loan (TDR) A TDR is a loan on which the bank, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the bank would not otherwise consider. The loan terms that have been modified or restructured due to a borrower’s financial situation include, but are not limited to, a reduction in the stated interest rate, an extension of the maturity or renewal of the loan at an interest rate below current market, a reduction in the face amount of the debt, a reduction in the accrued interest, extensions, deferrals, renewals and rewrites. The majority of the bank’s modifications are extensions in terms or deferral of payments which result in no lost principal or interest followed by reductions in interest rates or accrued interest. A TDR is also considered impaired. Generally, a loan that is modified at an effective market rate of interest may no longer be disclosed as a troubled debt restructuring in years subsequent to the restructuring if it is not impaired based on the terms specified by the restructuring agreement. The following tables summarize the financial effects of TDR loans by class for the periods presented: For the Year Ended December 31, 2019 Number of Loans Pre- Modification Recorded Investment Post Modification Recorded Investment Balance of Loans with Rate Reduction Balance of Loans with Term Extension Effect on Allowance for Loan Losses (dollars in thousands) Manufactured housing 1 $ 25 $ 25 $ 25 $ 25 $ 2 Commercial — — — — — — SBA 1 48 48 48 — — Total 2 $ 73 $ 73 $ 73 $ 25 $ 2 For the Year Ended December 31, 2018 Number of Loans Pre- Modification Recorded Investment Post Modification Recorded Investment Balance of Loans with Rate Reduction Balance of Loans with Term Extension Effect on Allowance for Loan Losses (dollars in thousands) Manufactured housing 12 $ 1,047 $ 1,213 $ 1,100 $ 1,213 $ 66 Commercial 3 1,780 1,780 — 1,780 — SBA — — — — — — HELOC — — — — — — Single family real estate — — — — — — Total 15 $ 2,827 $ 2,993 $ 1,100 $ 2,993 $ 66 For the Year Ended December 31, 2017 Number of Loans Pre- Modification Recorded Investment Post Modification Recorded Investment Balance of Loans with Rate Reduction Balance of Loans with Term Extension Effect on Allowance for Loan Losses (dollars in thousands) Manufactured housing 11 $ 894 $ 894 $ 894 $ 894 $ 48 Commercial real estate 3 3,052 3,052 - 3,052 41 SBA 2 298 298 — 298 1 HELOC - - - - - — Single family real estate - - - - - - Total 16 $ 4,244 $ 4,244 $ 894 $ 4,244 $ 90 The average rate concession was 82 basis points and 73 basis points for the twelve months ended December 31, 2019 and 2018, respectively. The average term extension in months was 147 and 151 for the twelve months ended December 31, 2019 and 2018, respectively. A TDR loan is deemed to have a payment default when the borrower fails to make two consecutive payments or the collateral is transferred to repossessed assets. The Company had no TDR’s with payment defaults for the twelve months ended December 31, 2019 or 2018. At December 31, 2019, there were no material loan commitments outstanding on TDR loans. Related Parties Principal stockholders, directors, and executive officers of the Company, together with companies they control and family members, are considered to be related parties. In the ordinary course of business, the Company has extended credit to these related parties. Federal banking regulations require that any such extensions of credit not be offered on terms more favorable than would be offered to non-related party borrowers of similar creditworthiness. The following table summarizes the aggregate activity in such loans: Year Ended December 31, 2019 2018 (in thousands) Balance, beginning $ 3,505 $ 3,505 New loans — 160 Repayments and other (343 ) (160 ) Balance, ending $ 3,162 $ 3,505 None of these loans are past due, on nonaccrual status or have been restructured to provide a reduction or deferral of interest or principal because of deterioration in the financial position of the borrower. There were no loans to a related party that were considered classified loans at December 31, 2019 or 2018. Unfunded loan commitments outstanding with related parties total approximately $0.3 million at December 31, 2019 and $1.0 million at December 31 2018. |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
PREMISES AND EQUIPMENT [Abstract] | |
PREMISES AND EQUIPMENT | 5. PREMISES AND EQUIPMENT Year Ended December 31, 2019 2018 (in thousands) Bank premises and land $ 3,959 $ 1,355 Furniture, fixtures and equipment 11,077 10,956 Leasehold improvements 5,106 5,747 Construction in progress 7 5 20,149 18,063 Accumulated depreciation (12,494 ) (11,682 ) Premises and equipment, net $ 7,655 $ 6,381 Lease Obligations The Company leases certain premises under non-cancelable operating leases expiring through 2028. The following is a schedule of future minimum rental payments under these leases at December 31, 2019: (in thousands) 2020 $ 1,015 2021 884 2022 779 2023 705 2024 713 Thereafter 3,291 Total $ 7,387 The Company leases the majority of its office locations and many of these leases contain multiple renewal options and provisions for increased rents. Total rent expense of $1.3 million, $1.2 million and $1.2 million is included in occupancy expenses for the years ended December 31, 2019, 2018 and 2017, respectively. Total depreciation expense of $0.9 million, $0.8 million, and $0.7 million is included in occupancy expenses for the each of the years ended December 31, 2019, 2018 and 2017, respectively. |
OTHER ASSETS ACQUIRED THROUGH F
OTHER ASSETS ACQUIRED THROUGH FORECLOSURE | 12 Months Ended |
Dec. 31, 2019 | |
OTHER ASSETS ACQUIRED THROUGH FORECLOSURE [Abstract] | |
OTHER ASSETS ACQUIRED THROUGH FORECLOSURE | 6. OTHER ASSETS ACQUIRED THROUGH FORECLOSURE The following table summarizes the changes in other assets acquired through foreclosure: December 31, 2019 2018 2017 (in thousands) Balance, beginning of period $ — $ 372 $ 137 Additions 3,401 174 501 Proceeds from dispositions (844 ) (484 ) (416 ) Gains (losses) on sales, net (33 ) (62 ) 150 Balance, end of period $ 2,524 $ — $ 372 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 7. INCOME TAXES The provision for income taxes consisted of the following: December 31, 2019 2018 2017 Current: (in thousands) Federal $ 2,402 $ 2,130 $ 3,722 State 1,337 1,208 1,298 3,739 3,338 5,020 Deferred: Federal (242 ) (421 ) 701 State (86 ) (108 ) (173 ) (328 ) (529 ) 528 Total provision for income taxes $ 3,411 $ 2,809 $ 5,548 The reconciliation between the statutory income tax rate and the Company’s effective tax rate follows: December 31, 2019 2018 2017 Federal income tax at statutory rate 21.0 % 21.0 % 34.0 % State franchise tax, net of federal benefit 8.6 % 8.6 % 7.2 % Other 0.4 % (2.1 )% (0.4 )% Tax law change 0.0 % 0.0 % 12.2 % Total provision for income taxes 30.0 % 27.5 % 53.0 % The cumulative tax effects of the primary temporary differences are as shown in the following table: December 31, 2019 2018 Deferred Tax Assets: (in thousands) Allowance for loan losses $ 2,663 $ 2,619 Unrealized loss on AFS securities 14 58 Other 2,446 2,028 Total gross deferred tax assets 5,123 4,705 Deferred tax asset valuation allowance — — Total deferred tax assets 5,123 4,705 Deferred Tax Liabilities: Deferred state taxes (266 ) (248 ) Depreciation (653 ) (446 ) Unrealized gain on AFS securities — — Other (1,032 ) (786 ) Total deferred tax liabilities (1,951 ) (1,480 ) Net deferred tax asset $ 3,172 $ 3,225 Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts and their respective tax basis including operating losses and tax credit carryforwards. Net deferred tax assets of $3.2 million at December 31, 2019 are reported in the consolidated balance sheet as a component of total assets. On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act tax reform legislation. This legislation makes significant change in U.S. tax law including a reduction in the corporate tax rates, changes to net operating loss carryforwards and carrybacks, and a repeal of the corporate alternative minimum tax. The legislation reduced the U.S. corporate tax rate from the current rate of 34% to 21%. As a result of the enacted law, the Company was required to revalue deferred tax assets and liabilities at the 21% rate. The revaluation resulted in $1.3 million income tax expense and a corresponding reduction in the net deferred tax asset. The other provisions of the Tax Cuts and Jobs Act did not have a material impact on the fiscal 2017 consolidated financial statements. Accounting standards Codification Topic 740, Income Taxes There was no valuation allowance on deferred tax assets at December 31, 2019 or December 31, 2018. The Company is subject to the provisions of ASC 740, Income Taxes The Company is subject to income taxation in the United States and certain state jurisdictions. The Company’s federal and state income tax returns are filed on a consolidated basis. The Company is generally open to examination by tax authorities for the years 2014 and later. Although the Company is unable to determine the outcome under examination, it has evaluated whether there are any uncertain tax positions in accordance with ASC 740-10 and concluded that there are no significant uncertain tax positions requiring recognition in the financial statements. When tax returns are filed, it is highly certain that most positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the Consolidated Financial Statements in the period in which, based on all available evidence, management believes it is more-likely-than-not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. As of December 31, 2019, the Company does not have any uncertain tax positions. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2019 | |
DEPOSITS [Abstract] | |
DEPOSITS | 8. DEPOSITS The table below summarizes deposits by type: December 31, 2019 2018 (in thousands) Non-interest bearing demand deposits $ 110,843 $ 108,161 Interest-bearing deposits: NOW accounts 25,523 23,085 Money market deposit account 288,755 247,346 Savings accounts 15,689 14,641 Time deposits of $250,000 or more 96,431 93,439 Other time deposits 213,693 229,334 Total deposits $ 750,934 $ 716,006 Of the total deposits at December 31, 2019 $440.8 million may be immediately withdrawn. Time certificates of deposit are the only deposits which have a specified maturity. The summary of the contractual maturities for all time deposits is as follows: (in thousands) 2020 $ 272,257 2021 25,028 2022 8,375 2023 2,647 2024 1,817 Thereafter — Total $ 310,124 The Company through the bank is a member of the Certificate of Deposit Account Registry Service (“CDARS”), which provides Federal Deposit Insurance Corporation (“FDIC”) insurance for large deposits. Federal banking law and regulation place restrictions on depository institutions regarding brokered deposits as they pose increased liquidity risk for institutions that gather significant amounts of brokered deposits. At December 31, 2019 and 2018, the Company had $28.7 million and $35.2 million, respectively, of reciprocal CDARS deposits. The Company also accepts deposits from related parties which totaled $27.1 million at December 31, 2019 and $12.5 million at December 31, 2018. |
OTHER BORROWINGS
OTHER BORROWINGS | 12 Months Ended |
Dec. 31, 2019 | |
OTHER BORROWINGS [Abstract] | |
OTHER BORROWINGS | 9. OTHER BORROWINGS The following table summarizes the Company’s FHLB advances by maturity date: December 31, 2019 2018 Contractual Maturity Date Amount Rate Amount Rate (dollars in thousands) January 2, 2019 $ — — $ 25,000 2.56 % March 21, 2019 — — 5,000 2.34 % April 3, 2019 — — 5,000 2.29 % May 31, 2019 — — 5,000 2.41 % March 30, 2020 5,000 2.56 % 5,000 2.56 % April 3, 2020 15,000 2.54 % 15,000 2.54 % April 27, 2020 5,000 2.49 % — — May 29, 2020 5,000 2.35 % — — October 2, 2020 20,000 1.74 % — — April 5, 2021 10,000 2.65 % 10,000 2.65 % May 10, 2021 5,000 2.44 % — — Total FHLB advances $ 65,000 $ 70,000 Weighted average rate 2.29 % 2.52 % The Company through the bank has a blanket lien credit line with the FHLB. FHLB advances are collateralized in the aggregate by the Company’s eligible loans and securities. Total FHLB advances were $65.0 million and $70.0 million at December 31, 2019 and 2018, respectively, borrowed at fixed rates. The Company also had $114.3 million of letters of credit with FHLB at December 31, 2019 to secure public funds. At December 31, 2019, the Company had pledged to the FHLB, $25.6 million of securities and $324.2 million of loans. At December 31, 2019, the Company had $60.5 million available for additional borrowing. At December 31, 2018, the Company had pledged to the FHLB, $32.2 million of securities and $269.4 million of loans. At December 31, 2018, CWB had $35.9 million available for additional borrowing. Total FHLB interest expense for the years ended December 31, 2019, 2018 and 2017 was $1.2 million, $1.0 million and $0.3 million, respectively. Other Borrowing – Federal Reserve Bank – Federal Funds Purchased Lines– |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 10. COMMITMENTS AND CONTINGENCIES Unfunded Commitments and Letters of Credit The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. They involve, to varying degrees, elements of credit risk in excess of amounts recognized in the consolidated balance sheets. Lines of credit are obligations to lend money to a borrower. Credit risk arises when the borrowers’ current financial condition may indicate less ability to pay than when the commitment was originally made. In the case of standby letters of credit, the risk arises from the possibility of the failure of the customer to perform according to the terms of a contract. In such a situation, the third party might draw on the standby letter of credit to pay for completion of the contract and the Company would look to its customer to repay these funds with interest. To minimize the risk, the Company uses the same credit policies in making commitments and conditional obligations as it would for a loan to that customer. Standby letters of credit are commitments issued by the Company to guarantee the performance of a customer to a third party in borrowing arrangements. Typically, letters of credit issued have expiration dates within one year. A summary of the contractual amounts for unfunded commitments and letters of credit are as follows: Year Ended December 31, 2019 2018 (in thousands) Commitments to extend credit $ 67,538 $ 57,450 Standby letters of credit 655 — Total $ 68,193 $ 57,450 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company enters into credit arrangements that generally provide for the termination of advances in the event of a covenant violation or other event of default. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. The commitments are collateralized by the same types of assets used as loan collateral. The Company has exposure to credit losses from unfunded commitments and letters of credit. As funds have not been disbursed on these commitments, they are not reported as loans outstanding. Credit losses related to these commitments are not included in the allowance for credit losses reported in Note 4, “Loans Held For Investment” of these Consolidated Financial Statements and are accounted for as a separate loss contingency as a liability. This loss contingency for unfunded loan commitments and letters of credit was $85,000 and $73,000 as of December 31, 2019 and 2018, respectively. Changes to this liability are adjusted through other non-interest expense. Concentrations of Lending Activities The Company’s lending activities are primarily driven by the customers served in the market areas where the Company has branch offices in the Central Coast of California. The Company monitors concentrations within selected categories such as geography and product. The Company makes manufactured housing, commercial, SBA, construction, commercial real estate and consumer loans to customers through branch offices located in the Company’s primary markets. The Company’s business is concentrated in these areas and the loan portfolio includes significant credit exposure to the manufactured housing and commercial real estate markets of these areas. As of December 31, 2019 and 2018, manufactured housing loans comprised 33.2% and 32.2%, respectively of total loans. As of December 31, 2019 and 2018, commercial real estate loans accounted for approximately 49.7% and 47.6% of total loans, respectively. Approximately 31.9% and 33.8% of these commercial real estate loans were owner occupied at December 31, 2019 and 2018, respectively. Substantially all of these loans are secured by first liens with an average loan to value ratios of 54.3% and 57.9% at December 31, 2019 and 2018, respectively. The Company was within established policy limits at December 31, 2019 and 2018. Loan Sales and Servicing The Company retains a certain level of risk relating to the servicing activities and retained interest in sold loans. In addition, during the period of time that the loans are held for sale, the Company is subject to various business risks associated with the lending business, including borrower default, foreclosure and the risk that a rapid increase in interest rates would result in a decline of the value of loans held for sale to potential purchasers. In connection with certain loan sales, the Company enters agreements which generally require the company to repurchase or substitute loans in the event of a breach of a representation or warranty made by the Company to the loan purchaser, any misrepresentation during the loan origination process or, in some cases, upon any fraud or early default on such loans. The Company has sold loans that are guaranteed or insured by government agencies for which the Company retained all servicing rights and responsibilities. The Company is required to perform certain monitoring functions in connection with these loans to preserve the guarantee by the government agency and prevent loss to the Company in the event of nonperformance by the borrower. Management believes that the Company is in compliance with these requirements. The outstanding balance of the loans serviced for others was approximately $76.3. million and $9.2 million at December 31, 2019 and 2018, respectively. Salary Continuation The Company has agreements with certain key officers, which provide for a monthly cash payment to the officers or beneficiaries in the event of death, disability or retirement, beginning in the month after the retirement date or death and extending for a period of fifteen years subject to vesting. The Company purchased life insurance policies of $5.0 million as an investment. The income from the policy investments will help fund this liability. At December 31, 2019 and 2018, the Company had accrued salary continuation liability for these agreements of $0.8 million and $0.6 million, respectively. The cash surrender value of the life insurance policies was $6.9 million at December 31, 2019, and is included in other assets. Other The Company is involved in various other litigation matters of a routine nature that are being handled and defended in the ordinary course of the Company’s business. In the opinion of Management, based in part on consultation with legal counsel, the resolution of these litigation matters will not have a material impact on the Company’s financial position or results of operations. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
STOCKHOLDERS' EQUITY [Abstract] | |
STOCKHOLDERS' EQUITY | 11. STOCKHOLDERS’ EQUITY Common Stock Warrant The Warrant issued as part of the TARP provided for the purchase of up to 521,158 shares of the common stock, at an exercise price of $4.49 per share (“Warrant Shares”). The Warrants were exercised for 300,401 shares of common stock prior to expiration in the fourth quarter of 2018. Common Stock During the years ended December 31, 2019 and 2018, the Company recorded $1.8 million and $1.6 million, respectively of dividends on common stock. On February 28, 2019, the Board of Directors extended the repurchase program and increased the common stock repurchases to $4.5 million until August 31, 2021. Under this program the Company has repurchased 350,189 common stock shares for $3.1 million at an average price of $8.75 per share. Stock Option Plans The Company has one stock option plan available for option grants. Stock options granted in 2019 generally have a vesting period of 5 years and a contractual life of 10 years. The Company recognizes compensation cost for options ratably over the requisite service period for all awards. As of December 31, 2019, 55,100 options were available for future grant. The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. The expected volatility is based on the historical volatility of the stock of the Company over the expected life of the options. The risk-free rate for the periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The dividend rate assumption was the dividend yield at grant date. A summary of the assumptions used in calculating the fair value of option awards during the years ended December 31, 2019, 2018 and 2017 are as follows: December 31, 2019 2018 2017 Expected life in years 6.2 6.3 6.4 Risk-free interest rate 2.41 % 2.85 % 2.04 % Expected volatility 27.6 % 34.7 % 44.1 % Annual dividend rate 2.00 % 1.64 % 1.49 % A summary of option activity under the plan is presented below: Year ended December 31, 2019 Option Shares Weighted Average Exercise Price Weighted Average Remaining Term Aggregate Intrinsic Value (in thousands, except exercise price and contractual terms) Outstanding options, beginning of period 679 $ 8.32 Granted 126 10.19 Exercised (39 ) 6.92 Forfeited or expired (35 ) 7.81 Outstanding options, end of period 731 $ 8.74 6.9 $ 1,805 Options exercisable, end of period 394 $ 7.77 5.9 $ 1,337 Options expected to vest, end of period 644 $ 8.52 6.7 $ 1,721 Year Ended December 31, 2018 Option Shares Weighted Average Exercise Price Weighted Average Remaining Term Aggregate Intrinsic Value (in thousands, except exercise price and contractual terms) Outstanding options, beginning of period 680 $ 7.21 Granted 136 11.61 Exercised (102 ) 5.39 Forfeited or expired (35 ) 8.16 Outstanding options, end of period 679 $ 8.32 7.4 $ 1,400 Options exercisable, end of period 340 $ 7.39 6.6 $ 945 Options expected to vest, end of period 588 $ 8.08 7.2 $ 1,318 Year Ended December 31, 2017 Option Shares Weighted Average Exercise Price Weighted Average Remaining Term Aggregate Intrinsic Value (in thousands, except exercise price and contractual terms) Outstanding options, beginning of period 705 $ 6.41 Granted 159 10.15 Exercised (97 ) 5.05 Forfeited or expired (87 ) 8.57 Outstanding options, end of period 680 $ 7.21 7.5 $ 2,342 Options exercisable, end of period 319 $ 6.35 6.6 $ 1,371 Options expected to vest, end of period 576 $ 7.03 7.3 $ 719 As of December 31, 2019, 2018 and 2017, there was $0.6 million, $0.7 million and $0.7 million, respectively, of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Company’s plan. That cost is expected to be recognized over a weighted average period of 3.0 years, 3.2 years, and 3.3 years, respectively. The total intrinsic value of options exercised during the years ended December 31, 2019, 2018 and 2017, was $0.1 million, $0.6 million, and $0.5 million, respectively. The following table summarizes the change in unvested stock option shares during the year ended December 31, 2019: Number of Option Shares Weighted Average Grant-Date Fair Value (in thousands, except per share data) Unvested options, beginning of period 339 $ 3.70 Granted 126 2.51 Vested (105 ) 3.71 Forfeited (23 ) 3.14 Unvested options, end of period 337 $ 3.29 |
CAPITAL REQUIREMENTS
CAPITAL REQUIREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
CAPITAL REQUIREMENTS [Abstract] | |
CAPITAL REQUIREMENTS | 12. CAPITAL REQUIREMENTS The Federal Reserve has adopted capital adequacy guidelines that are used to assess the adequacy of capital in supervising a bank holding company. In July 2013, the federal banking agencies approved the final rules (“Final Rules”) to establish a new comprehensive regulatory capital framework with a phase-in period beginning January 1, 2015 and ending January 1, 2019. The Final Rules implement the third installment of the Basel Accords (“Basel III”) regulatory capital reforms and changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) and substantially amend the regulatory risk-based capital rules applicable to the Company. Basel III redefines the regulatory capital elements and minimum capital ratios, introduces regulatory capital buffers above those minimums, revises rules for calculating risk-weighted assets and adds a new component of Tier 1 capital called Common Equity Tier 1, which includes common equity and retained earnings and excludes preferred equity. The following tables illustrates the Bank’s regulatory ratios and the Federal Reserve’s current adequacy guidelines as of December 31, 2019 and 2018. The Federal Reserve’s fully phased-in guidelines applicable in 2019 are also summarized. Total Capital (To Risk- Weighted Tier 1 Capital (To Risk- Weighted Assets) Common Equity Tier 1 (To Risk- Weighted Assets) Leverage Ratio/Tier1 Capital (To Average Assets) December 31, 2019 CWB's actual regulatory ratios 11.41 % 10.28 % 10.28 % 9.06 % Minimum capital requirements 8.00 % 6.00 % 4.50 % 4.00 % Well-capitalized requirements 10.00 % 8.00 % 6.50 % N/A Minimum capital requirements including fully-phased in capital conservation buffer (2019) 10.50 % 8.50 % 7.00 % N/A Total Capital (To Risk- Weighted Assets) Tier 1 Capital (To Risk- Weighted Assets) Common Equity Tier 1 (To Risk- Weighted Assets) Leverage Ratio/Tier1 Capital (To Average Assets) December 31, 2018 CWB's actual regulatory ratios 10.83 % 9.68 % 9.68 % 8.57 % Minimum capital requirements 8.00 % 6.00 % 4.50 % 4.00 % Well-capitalized requirements 10.00 % 8.00 % 6.50 % 5.00 % Minimum capital requirements including fully-phased in capital conservation buffer (2019) 10.50 % 8.50 % 7.00 % N/A |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2019 | |
REVENUE RECOGNITION [Abstract] | |
REVENUE RECOGNITION | 13. REVENUE RECOGNITION The Company adopted ASU No, 2014-09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606 on January 1, 2018. The implementation of the new standard did not have a material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain non-interest income streams such as servicing rights, financial guarantees and certain credit card fees are also not in scope of the new guidance. Topic 606 is applicable to non-interest income streams such as deposit related fees, interchange fees and merchant income. However the recognition of these income streams did not change upon the adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Non-interest revenue streams in-scope of Topic 606 are discussed below. Service Charges on Deposit Accounts Service charges on deposit accounts consist of monthly service fees, check orders, account analysis fees, and other deposit account related fees. The Company’s performance obligation for monthly service fees and account analysis fees is generally satisfied, and the related income recognized, over the period in which the service is provided. Check orders and other deposit related fees are largely transactional based and, therefore, the Company’s performance obligation is satisfied and related income recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Exchange Fees and Other Service Charges Exchange fees and other service charges are primarily comprised of debit and credit card income, merchant services income, ATM fees and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa or MasterCard. Merchant services income is primarily fees charged to merchants to process their debit and credit card transactions. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Other service charges include fees from processing wire transfers, cashier’s checks and other services. The Company’s performance obligation for exchange and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for periods indicated. Non-interest income Twelve Months Ended December 31, In-scope of Topic 606: 2019 2018 2017 Service charges on deposit accounts $ 507 $ 369 $ — Exchange fees and other service charges 159 186 — Non-interest income (in-scope of Topic 606) 666 555 — Non-interest income (out-of-scope of Topic 606) 2,941 2,073 — Total $ 3,607 $ 2,628 $ — Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s non-interest income streams are largely based on transactional activity. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and income is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of December 31, 2019 and December 31, 2018, the Company did not have any signficant contract balances. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained. The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
LEASES [Abstract] | |
LEASES | 14. LEASES As described in Note 1 – Summary of Significant Accounting Policies – Recent Accounting Pronouncements, effective January 1, 2019, we adopted Topic 842. We have operating leases for office space. Our office leases are typically for terms of between 2 and 10 years. Rents usually increase annually in accordance with defined rent steps or based on current year consumer price index adjustments. When renewal options exist, we generally do not deem them to be reasonably certain to be exercised, and therefore the amounts are not recognized as part of our lease liability nor our right-of-use asset. As part of the adoption, we elected the package of practical expedients permitted under the transition guidance, but not the hindsight practical expedient. As of December 31, 2019, the balance of the right-of-use assets was $6.3 million and the lease liabilities were $6.3 million. The right-of-use assets are included in other assets and the lease liabilities are included in other liabilities in the accompanying Consolidated Balance Sheets. Twelve Months Ended December 31, 2019 2018 Lease cost: (in thousands) Operating lease cost 1,137 — Sublease income — — Total lease cost 1,137 — Other information Cash paid for amounts included in the measurement of lease liabilities — — Operating cash flows from operating leases 1,117 — Weighted average remaining lease term in years - operating leases 9.62 — Weighted average discount rate - operating leases 3.23 % — Future minimum operating lease payments: December 31, 2019 2018 (in thousands) 2020 $ 1,015 $ — 2021 884 — 2022 779 — 2023 705 — 2024 713 — Thereafter 3,291 — Total future minimum lease payments $ 7,387 $ — Less remaining imputed interest 1,071 — Total lease liabilities $ 6,316 $ — |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |
EMPLOYEE BENEFIT PLANS | 15. EMPLOYEE BENEFIT PLANS 401(k) Plan: The Company has a qualified 401(k) employee benefit plan for all eligible employees. Participants are able to defer up to a maximum of $19,000 (for those under 50 years of age in 2019) of their annual compensation. The Company may elect to match a discretionary amount each year, which was 3% of the participant’s eligible compensation. The Company’s total contribution was $0.3 million for the years ended December 31, 2019, 2018 and 2017, respectively. Deferred Compensation Plans A deferred compensation plan covers the executive officers. Under the plan, the Company pays each participant a percentage of their base salary plus interest. Vesting occurs at age 65. A liability is accrued for the obligation under these plans. The expense incurred for the deferred compensation for each of the last three years was $0.1 million resulting in a deferred compensation liability of $1.3 million and $1.1 million as of the year-end 2019 and 2018. The Company also provides an unfunded nonqualified deferred compensation arrangement to provide supplemental retirement benefits for the Participants which are a select group of management or highly compensated employees of the Company. The Participants may defer up to 30% of their base salary and bonus each plan year. The 36 month certificate of deposit rate is paid on the vested balance. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENT [Abstract] | |
FAIR VALUE MEASUREMENT | 16. FAIR VALUE MEASUREMENT The fair value of an asset or liability is the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction occurring in the principal market for such asset or liability. ASC 820 establishes a fair value hierarchy that prioritizes the inputs and valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (“Level 1”) and the lowest priority to unobservable inputs (“Level 3”). The three levels of the fair value hierarchy under ASC 820 and the methods and assumptions used by the Company in estimating the fair value of its financial instruments are described in “Note 1. Summary of Significant Accounting Policies – Fair Value of Financial Instruments” of these Notes to the Consolidated Financial Statements. The following tables summarize the fair value of assets measured on a recurring basis: Fair Value Measurements at the End of the Reporting Period Using: December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Assets: (in thousands) Investment securities measured at fair value $ 167 $ - $ - $ 167 Investment securities available-for-sale - 19,264 - 19,264 Interest only strips - - 41 41 Servicing assets - - 846 846 $ 167 $ 19,264 $ 887 $ 20,318 Fair Value Measurements at the End of the Reporting Period Using: December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Assets: (in thousands) Investment securities measured at fair value $ 121 $ - $ - $ 121 Investment securities available-for-sale - 24,931 - 24,931 Interest only strips - - 63 63 Servicing assets - - 101 101 $ 121 $ 24,931 $ 164 $ 25,216 Market valuations of our investment securities which are classified as level 2 are provided by an independent third party. The fair values are determined by using several sources for valuing fixed income securities. Their techniques include pricing models that vary based on the type of asset being valued and incorporate available trade, bid and other market information. In accordance with the fair value hierarchy, the market valuation sources include observable market inputs and are therefore considered Level 2 inputs for purposes of determining the fair values. On certain SBA loan sales, the Company retained interest only strips (“I/O strips”), which represent the present value of excess net cash flows generated by the difference between (a) interest at the stated rate paid by borrowers and (b) the sum of (i) pass-through interest paid to third-party investors and (ii) contractual servicing fees. I/O strips are classified as level 3 in the fair value hierarchy. The fair value is determined on a quarterly basis through a discounted cash flow analysis prepared by an independent third party using industry prepayment speeds. I/O strip valuation adjustments are recorded as additions or offsets to loan servicing income. Historically, the Company has elected to use the amortizing method for the treatment of servicing assets and has measured for impairment on a quarterly basis through a discounted cash flow analysis prepared by an independent third party using industry prepayment speeds. In connection with the sale of certain SBA and USDA loans the Company recorded servicing assets and elected to measure those assets at fair value in accordance with ASC 825-10. Significant assumptions in the valuation of servicing assets include estimated loan repayment rates, the discount rate, and servicing costs, among others. Servicing assets are classified as Level 3 measurements due to the use of significant unobservable inputs, as well as significant management judgment and estimation. The Company also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets include loans held for sale, foreclosed real estate and repossessed assets and loans that are considered impaired per generally accepted accounting principles. The following summarizes the fair value measurements of assets measured on a non-recurring basis: Fair Value Measurements at the End of the Reporting Period Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Active Markets for Similar Assets (Level 2) Unobservable Inputs (Level 3) (in thousands) As of December 31, 2019: Impaired loans $ 2,334 $ — $ 2,334 $ — Loans held for sale 42,900 — 42,900 — Foreclosed real estate and repossessed assets 2,524 — 2,524 — $ 47,758 $ — $ 47,758 $ — As of December 31, 2018: Impaired loans $ 5,592 $ — $ 5,592 $ — Loans held for sale 49,050 — 49,050 — Foreclosed real estate and repossessed assets — — — — $ 54,642 $ — $ 54,642 $ — The Company records certain loans at fair value on a non-recurring basis. When a loan is considered impaired an allowance for a loan loss is established. The fair value measurement and disclosure requirement applies to loans measured for impairment using the practical expedients method permitted by accounting guidance for impaired loans. Impaired loans are measured at an observable market price, if available or at the fair value of the loan’s collateral, if the loan is collateral dependent. The fair value of the loan’s collateral is determined by appraisals or independent valuation. When the fair value of the loan’s collateral is based on an observable market price or current appraised value, given the current real estate markets, the appraisals may contain a wide range of values and accordingly, the Company classifies the fair value of the impaired loans as a non-recurring valuation within Level 2 of the valuation hierarchy. For loans in which impairment is determined based on the net present value of cash flows, the Company classifies these as a non-recurring valuation within Level 3 of the valuation hierarchy. Loans held for sale are carried at the lower of cost or fair value. The fair value of loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics or based on the agreed-upon sale price. As such, the Company classifies the fair value of loans held for sale as a non-recurring valuation within Level 2 of the fair value hierarchy. At December 31, 2019 and 2018, the Company had loans held for sale with an aggregate carrying value of $42.0 million and $48.4 million respectively. Foreclosed real estate and repossessed assets are carried at the lower of book value or fair value less estimated costs to sell. Fair value is based upon independent market prices obtained from certified appraisers or the current listing price, if lower. When the fair value of the collateral is based on a current appraised value, the Company reports the fair value of the foreclosed collateral as non-recurring Level 2. When a current appraised value is not available or if management determines the fair value of the collateral is further impaired, the Company reports the foreclosed collateral as non-recurring Level 3. FAIR VALUES OF FINANCIAL INSTRUMENTS The estimated fair values of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. The estimated fair value of the Company’s financial instruments are as follows: December 31, 2019 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total Financial assets: (in thousands) Cash and cash equivalents $ 82,661 $ 82,661 $ — $ — $ 82,661 FRB and FHLB stock 4,087 — 4,087 — 4,087 Investment securities 25,563 167 25,399 — 25,566 Loans, net 766,846 — 752,287 9,907 762,194 Financial liabilities: Deposits 750,934 — 751,398 — 751,398 Other borrowings 65,000 — 65,236 — 65,236 December 31, 2018 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total Financial assets: (in thousands) Cash and cash equivalents $ 56,915 $ 56,915 $ — $ — $ 56,915 FRB and FHLB stock 4,087 — 4,087 — 4,087 Investment securities 32,353 121 32,079 — 32,200 Loans, net 759,552 — 735,377 17,846 753,223 Financial liabilities: Deposits 716,006 — 712,900 — 712,900 Other borrowings 75,000 — 74,930 — 74,930 Interest rate risk The Company assumes interest rate risk (the risk to the Company’s earnings and capital from changes in interest rate levels) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments as well as its future net interest income will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Interest rate risk exposure is measured using interest rate sensitivity analysis to determine the change in the net portfolio value and net interest income resulting from hypothetical changes in interest rates. If potential changes to net portfolio value and net interest income resulting from hypothetical interest rate changes are not within the limits established by the Board of Directors, the Board of Directors may direct management to adjust the asset and liability mix to bring interest rate risk within board-approved limits. As of December 31, 2019, the Company’s interest rate risk profile was within Board-approved limits. The Company’s subsidiary bank has an Asset and Liability Management Committee charged with managing interest rate risk within Board approved limits. Such limits are structured to prohibit an interest rate risk profile that is significantly asset or liability sensitive. Fair value of commitments Loan commitments on which the committed interest rates were less than the current market rate are insignificant at December 31, 2019 and 2018. The estimated fair value of standby letters of credit outstanding at December 31, 2018 was also insignificant. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | 17. ACCUMULATED OTHER COMPREHENSIVE INCOME The following table summarizes the changes in other comprehensive income by component, net of tax for the period indicated: Year Ended December 31, 2019 2018 2017 Unrealized holding gains (losses ) on AFS (in thousands) Beginning balance $ (141 ) $ 25 $ (29 ) Other comprehensive income (loss) before reclassifications 63 (107 ) 54 Amounts reclassified from accumulated other comprehensive income — (59 ) — Net current-period other comprehensive income 63 (166 ) 54 Ending Balance $ (78 ) $ (141 ) $ 25 There were no reclassifications out of accumulated other comprehensive income for the years ended December 31, 2019, 2018 and 2017. |
PARENT COMPANY FINANCIAL INFORM
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
PARENT COMPANY FINANCIAL INFORMATION [Abstract] | |
PARENT COMPANY FINANCIAL INFORMATION | 18. PARENT COMPANY FINANCIAL INFORMATION The condensed financial statements of the holding company are presented in the following tables: COMMUNITY WEST BANCSHARES Condensed Balance Sheets December 31, 2019 2018 (in thousands) Assets: Cash and cash equivalents (including interest-bearing deposits in other financial institutions) $ 972 $ 299 Investment in subsidiary 81,171 72,429 Total loans — 8,355 Other assets 168 240 Total assets $ 82,311 $ 81,323 Liabilities and Stockholders' Equity: Other borrowings $ — $ 5,000 Other liabilities 333 172 Total liabilities 333 5,172 Total stockholders' equity 81,978 76,151 Total liabilities and stockholders' equity $ 82,311 $ 81,323 COMMUNITY WEST BANCSHARES Condensed Income Statements December 31, 2019 2018 2017 (in thousands) Interest income $ 227 $ 264 $ 60 Interest expense 111 329 196 Net interest expense 116 (65 ) (136 ) Provision for loan losses (145 ) 60 — Net interest income after provision for loan losses 261 (125 ) (136 ) Income from consolidated subsidiary 8,145 7,844 5,441 Total income 8,406 7,719 5,305 Total non-interest expenses 405 516 669 Income before income tax benefit 8,001 7,203 4,636 Income tax benefit 38 (206 ) (279 ) Net income $ 7,963 $ 7,409 $ 4,915 COMMUNITY WEST BANCSHARES Condensed Statements of Cash Flows December 31, 2019 2018 2017 (in thousands) Cash Flows from Operating Activities: Net income $ 7,963 $ 7,409 $ 4,915 Adjustments to reconcile net income to cash provided by operating activities: — — — Equity in undistributed income from subsidiary (8,145 ) (7,844 ) (5,441 ) Stock-based compensation 382 478 537 Changes in: — — — Other assets 72 (50 ) 129 Other liabilities 161 157 (99 ) Net cash provided by operating activities 433 150 41 Cash Flows from Investing Activities: — — — Loan originations and principal collections, net 8,355 (3,440 ) (4,915 ) Net dividends from and investment in subsidiary (534 ) 6,158 3,201 Net cash provided by (used in) investing activities 7,821 2,718 (1,714 ) Cash Flows from Financing Activities: Net increase (decrease) from other borrowings (5,000 ) (1,843 ) 2,843 Common stock dividends paid (1,821 ) (1,581 ) (1,264 ) Common stock repurchase (1,030 ) (669 ) — Proceeds from issuance of common stock 270 551 492 Net cash used in financing activities (7,581 ) (3,542 ) 2,071 Net (decrease) increase in cash and cash equivalents 673 (674 ) 398 Cash and cash equivalents at beginning of year 299 973 575 Cash and cash equivalents at end of year $ 972 $ 299 $ 973 |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | 19. QUARTERLY FINANCIAL DATA (UNAUDITED) December 31, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total (in thousands, except per share amounts) Interest income $ 11,025 $ 11,367 $ 11,719 $ 11,628 $ 45,739 Interest expense 2,802 2,869 2,921 2,790 11,382 Net interest income 8,223 8,498 8,798 8,838 34,357 Provision (credit) for loan losses (57 ) 177 (75 ) (210 ) (165 ) Net interest income after provision for loan losses 8,280 8,321 8,873 9,048 34,522 Non-interest income 604 692 647 1,664 3,607 Non-interest expenses 6,717 6,760 6,464 6,814 26,755 Income before income taxes 2,167 2,253 3,056 3,898 11,374 Provision for income taxes 657 673 902 1,179 3,411 Net income $ 1,510 $ 1,580 $ 2,154 $ 2,719 $ 7,963 Earnings per share: Income per common share - basic $ 0.18 $ 0.19 $ 0.25 $ 0.32 $ 0.94 Income per common share - diluted $ 0.18 $ 0.18 $ 0.25 $ 0.32 $ 0.93 December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Total (in thousands, except per share amounts) Interest income $ 9,988 $ 10,401 $ 11,201 $ 11,041 $ 42,631 Interest expense 1,638 2,090 2,573 2,687 8,988 Net interest income 8,350 8,311 8,628 8,354 33,643 (Credit) provision for loan losses (144 ) 117 (197 ) 238 14 Net interest income after provision for loan losses 8,494 8,194 8,825 8,116 33,629 Non-interest income 639 688 641 660 2,628 Non-interest expenses 6,533 6,257 6,402 6,847 26,039 Income before income taxes 2,600 2,625 3,064 1,929 10,218 Provision for income taxes 786 758 695 570 2,809 Net income $ 1,814 $ 1,867 $ 2,369 $ 1,359 $ 7,409 Earnings per share: Income per common share - basic $ 0.22 $ 0.23 $ 0.29 $ 0.16 $ 0.89 Income per common share - diluted $ 0.21 $ 0.21 $ 0.27 $ 0.16 $ 0.88 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Nature of Operations | Nature of Operations Community West Bancshares (“CWBC”), incorporated under the laws of the state of California, is a bank holding company providing full service banking through its wholly-owned subsidiary Community West Bank, N.A. (“CWB” or the “Bank”). These entities are collectively referred to herein as the “Company”. |
Basis of Presentation | Basis of Presentation The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States (“GAAP”) and conform to practices within the financial services industry. The accounts of the Company and its consolidated subsidiary are included in these Consolidated Financial Statements. All significant intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses and fair value of investment securities available for sale. Although Management believes these estimates to be reasonably accurate, actual amounts may differ. In the opinion of Management, all adjustments considered necessary have been reflected in the financial statements during their preparation. |
Reclassifications | Reclassifications Certain amounts in the consolidated financial statements as of and for the years ended December 31, 2018 and 2017 have been reclassified to conform to the current presentation. The reclassifications have no effect on net income or stockholders’ equity as previously reported. |
Business Segments | Business Segments Reportable business segments are determined using the “management approach” and are intended to present reportable segments consistent with how the chief operating decision maker organizes segments within the company for making operating decisions and assessing performance. As of December 31, 2019, 2018 and 2017, the Company had only one reportable business segment. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks (including cash items in process of clearing), and federal funds sold. Cash flows from loans originated by the Company and deposits are reported net. The Company maintains amounts due from banks, which at times may exceed federally insured limits. The Company has not experienced any losses in such accounts. |
Cash Reserve Requirement | Cash Reserve Requirement Depository institutions are required by law to maintain reserves against their transaction deposits. The reserves must be held in cash or with the Federal Reserve Bank (“FRB”). The amount of the reserve varies by bank as the bank is permitted to meet this requirement by maintaining the specified amount as an average balance over a two-week period. The total reserve balance requirement was approximately $3.0 million and $2.9 million as of December 31, 2019 and 2018. |
Investment Securities | Investment Securities Investment securities may be classified as held-to-maturity (“HTM”), available-for-sale (“AFS”) or trading. The appropriate classification is initially decided at the time of purchase. Securities classified as held-to-maturity are those debt securities the Company has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs or general economic conditions. These securities are carried at amortized cost. The sale of a security within three months of its maturity date or after the majority of the principal outstanding has been collected is considered a maturity for purposes of classification and disclosure. Securities classified as AFS or trading are reported as an asset on the Consolidated Balance Sheets at their estimated fair value. As the fair value of AFS securities changes, the changes are reported net of income tax as an element of other comprehensive income (“OCI”), except for impaired securities. When AFS securities are sold, the unrealized gain or loss is reclassified from OCI to non-interest income. The changes in the fair values of trading securities are reported in non-interest income. Securities classified as AFS are debt securities the Company intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as AFS would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, decline in credit quality, and regulatory capital considerations. The Company has its AGM Stock securities classified as measured at fair value. The fair value changes are adjusted through non-interest income monthly. Interest income is recognized based on the coupon rate and increased by accretion of discounts earned or decreased by the amortization of premiums paid over the contractual life of the security using the interest method. For mortgage-backed securities, estimates of prepayments are considered in the constant yield calculations. In estimating whether there are any other than temporary impairment losses, management considers 1) the length of time and the extent to which the fair value has been less than amortized cost, 2) the financial condition and near term prospects of the issuer, 3) the impact of changes in market interest rates, and 4) the intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value and it is not more likely than not the Company would be required to sell the security. Declines in the fair value of individual debt securities available for sale that are deemed to be other than temporary are reflected in earnings when identified. The fair value of the debt security then becomes the new cost basis. For individual debt securities where the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, the other than temporary decline in fair value of the debt security related to 1) credit loss is recognized in earnings, and 2) market or other factors is recognized in other comprehensive income or loss. Credit loss is recorded if the present value of cash flows is less than amortized cost. For individual debt securities where the Company intends to sell the security or more likely than not will not recover all of its amortized cost, the other than temporary impairment is recognized in earnings equal to the entire difference between the securities cost basis and its fair value at the balance sheet date. For individual debt securities for which a credit loss has been recognized in earnings, interest accruals and amortization and accretion of premiums and discounts are suspended when the credit loss is recognized. Interest received after accruals have been suspended is recognized on a cash basis. |
Federal Home Loan Bank ("FHLB") and Federal Reserve Bank ("FRB") Stock | Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) Stock The Company’s subsidiary bank is a member of the Federal Home Loan Bank (“FHLB”) system and maintains an investment in capital stock of the FHLB. The bank also maintains an investment in FRB stock. These investments are considered equity securities with no actively traded market. These investments are carried at cost, which is equal to the value at which they may be redeemed. The dividend income received from the stock is reported in interest income. We conduct a periodic review and evaluation of our FHLB stock to determine if any impairment exists. No impairment existed in the years ended December 31, 2019 or 2018. |
Servicing Assets | Servicing Assets The guaranteed portion of certain Small Business Administration (“SBA”) loans can be sold into the secondary market. Servicing assets are recognized as separate assets when loans are sold with servicing retained. Servicing assets are amortized in proportion to, and over the period of, estimated future net servicing income. The Company uses industry prepayment statistics and its own prepayment experience in estimating the expected life of the loans. Management evaluates its servicing assets for impairment quarterly. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Fair value is determined using discounted future cash flows calculated on a loan-by-loan basis and aggregated by predominate risk characteristics. The initial servicing asset and resulting gain on sale are calculated based on the difference between the best actual par and premium bids on an individual loan basis. CWB is an approved Federal Agricultural Mortgage Corporation ("Farmer Mac") seller/servicer. Servicing assets/liabilities are recognized as separate assets/liabilities as certain servicing requirements are retained. Servicing assets are amortized over the period of, estimated net servicing income. CWB uses Farmer Mac prepayment statistics in estimating the expected life of the loans. Management evaluates its servicing assets for impairment quarterly. Servicing assets are evaluated for impairment based on the fair value of the rights as compared to amortized cost. Fair value is determined using discounted future cash flows calculated on a loan-by-loan basis. The initial servicing asset and resulting gain or calculated based on the contractual net servicing fees. |
Loans Held for Sale | Loans Held For Sale Loans which are originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value determined on an aggregate basis. Valuation adjustments, if any are recognized through a valuation allowance by charges to lower of cost or fair value provision. Loans held for sale are mostly comprised of SBA and commercial agriculture. In 2015, the Company exited from originating single family residential loans for sale. The Company did not incur any lower of cost or fair value provision in the years ended December 31, 2019, 2018 and 2017. |
Loans Held for Investment and Interest and Fees From Loans | Loans Held for Investment and Interest and Fees from Loans Loans are recognized at the principal amount outstanding, net of unearned income, loan participations and amounts charged off. Unearned income includes deferred loan origination fees reduced by loan origination costs. Unearned income on loans is amortized to interest income over the life of the related loan using the level yield method. Interest income on loans is accrued daily using the effective interest method and recognized over the terms of the loans. Loan fees collected for the origination of loans less direct loan origination costs (net deferred loan fees) are amortized over the contractual life of the loan through interest income. If the loan has scheduled payments, the amortization of the net deferred loan fee is calculated using the interest method over the contractual life of the loan. If the loan does not have scheduled payments, such as a line of credit, the net deferred loan fee is recognized as interest income on a straight-line basis over the contractual life of the loan commitment. Commitment fees based on a percentage of a customer’s unused line of credit and fees related to standby letters of credit are recognized over the commitment period. When loans are repaid, any remaining unamortized balances of unearned fees, deferred fees and costs and premiums and discounts paid on purchased loans are accounted for though interest income. Nonaccrual loans: For all loan types, when a loan is placed on nonaccrual status, all interest accrued but uncollected is reversed against interest income in the period in which the status is changed. Subsequent payments received from the customer are applied to principal and no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required. The Company occasionally recognizes income on a cash basis for non-accrual loans in which the collection of the remaining principal balance is not in doubt. Impaired loans: Troubled debt restructured loan (“TDR”): |
Allowance for Loan Losses and Provision for Loan Losses | Allowance for Loan Losses and Provision for Loan Losses The Company maintains a detailed, systematic analysis and procedural discipline to determine the amount of the allowance for loan losses (“ALL”). The ALL is based on estimates and is intended to be appropriate to provide for probable losses inherent in the loan portfolio. This process involves deriving probable loss estimates that are based on migration analysis and historical loss rates, in addition to qualitative factors that are based on management’s judgment. The migration analysis and historical loss rate calculations are based on the annualized loss rates and the Company extended its time horizon for the ALL methodology in 2019. Migration analysis is utilized for the Commercial Real Estate (“CRE”), Commercial, Commercial Agriculture, Small Business Administration (“SBA”), Home Equity Line of Credit (“HELOC”), Single Family Residential, and Consumer portfolios. The historical loss rate method is utilized primarily for the Manufactured Housing portfolio. The migration analysis takes into account the risk rating of loans that are charged off in each loan category. Loans that are considered Doubtful are typically charged off. The following is a description of the characteristics of loan ratings. Loan ratings are reviewed as part of our normal loan monitoring process, but, at a minimum, updated on an annual basis. Substantially Risk Free – These borrowers have virtually no of default or loss given default and present no identifiable or potential adverse risk to the Company. Documented repayment is either backed by the full faith and credit of the United States Government, or secured by cash collateral at a ratio of 115% of the principal borrowed. The collateral must be in the possession of the Company and free from potential claim. In addition, these credits will conform in all aspects to established loan policies and procedures, laws, rules, and regulations. Nominal Risk – Pass/Management Attention Risk Special Mention - Substandard - Doubtful - Loss - The Company’s ALL is maintained at a level believed appropriate by management to absorb known and inherent probable losses on existing loans. The allowance is charged for losses when management believes that full recovery on the loan is unlikely. The following is the Company’s policy regarding charging off loans. Commercial, CRE and SBA Loans Charge-offs on these loan categories are taken as soon as all or a portion of any loan balance is deemed to be uncollectible. A loan is considered impaired when, based on current information, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest under the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and/or interest payments. Loans that experience insignificant payment delays or payment shortfalls generally are not classified as impaired. Generally, loan balances are charged-down to the fair value of the collateral, if, based on a current assessment of the value, an apparent deficiency exists. In the event there is no perceived equity, the loan is charged-off in full. Unsecured loans which are delinquent over 90 days are also charged-off in full. Single Family Real Estate, HELOC’s and Manufactured Housing Loans Consumer loans and residential mortgages secured by one-to-four family residential properties, HELOC and manufactured housing loans in which principal or interest is due and unpaid for 90 days, are evaluated for impairment. Loan balances are charged-off to the fair value of the property, less estimated selling costs, if, based on a current appraisal, an apparent deficiency exists. In the event there is no perceived equity, the loan is generally fully charged-off. Consumer Loans All consumer loans (excluding real estate mortgages, HELOCs and savings secured loans) are charged-off or charged-down to net recoverable value before becoming 120 days or five payments delinquent. The ALL calculation for the different loan portfolios is as follows: • Commercial Real Estate, Commercial, Commercial Agriculture, SBA, HELOC, Single Family Residential, and Consumer – Migration analysis combined with risk rating is used to determine the required ALL for all non-impaired loans. In addition, the migration results are adjusted based upon qualitative factors that affect the specific portfolio category. Reserves on impaired loans are determined based upon the individual characteristics of the loan. • Manufactured Housing – The ALL is calculated on the basis of loss history and risk rating, which is primarily a function of delinquency. In addition, the loss results are adjusted based upon qualitative factors that affect this specific portfolio. The Company evaluates and individually assesses for impairment loans classified as substandard or doubtful in addition to loans either on nonaccrual, considered a TDR or when other conditions exist which lead management to review for possible impairment. Measurement of impairment on impaired loans is determined on a loan-by-loan basis and in total establishes a specific reserve for impaired loans. The amount of impairment is determined by comparing the recorded investment in each loan with its value measured by one of three methods: • The expected future cash flows are estimated and then discounted at the effective interest rate. • The value of the underlying collateral net of selling costs. Selling costs are estimated based on industry standards, the Company’s actual experience or actual costs incurred as appropriate. When evaluating real estate collateral, the Company typically uses appraisals or valuations, no more than twelve months old at time of evaluation. When evaluating non-real estate collateral securing the loan, the Company will use audited financial statements or appraisals no more than twelve months old at time of evaluation. Additionally, for both real estate and non-real estate collateral, the Company may use other sources to determine value as deemed appropriate. • The loan’s observable market price. Interest income is not recognized on impaired loans except for limited circumstances in which a loan, although impaired, continues to perform in accordance with the loan contract and the borrower provides financial information to support maintaining the loan on accrual. The Company determines the appropriate ALL on a monthly basis. Any differences between estimated and actual observed losses from the prior month are reflected in the current period in determining the appropriate ALL and adjusted as deemed necessary. The review of the appropriateness of the allowance takes into consideration such factors as concentrations of credit, changes in the growth, size and composition of the loan portfolio, overall and individual portfolio quality, review of specific problem loans, collateral, guarantees and economic and environmental conditions that may affect the borrowers' ability to pay and/or the value of the underlying collateral. Additional factors considered include: geographic location of borrowers, changes in the Company’s product-specific credit policy and lending staff experience. These estimates depend on the outcome of future events and, therefore, contain inherent uncertainties. Another component of the ALL considers qualitative factors related to non-impaired loans. The qualitative portion of the allowance on each of the loan pools is based on changes in any of the following factors: • Concentrations of credit • International risk • Trends in volume, maturity, and composition of loans • Volume and trend in delinquency, nonaccrual, and classified assets • Economic conditions • Geographic distance • Policy and procedures or underwriting standards • Staff experience and ability • Value of underlying collateral • Competition, legal, or regulatory environment • Quality of loan review and Board oversight |
Off Balance Sheet and Credit Exposure | Off Balance Sheet and Credit Exposure In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the consolidated financial statements when they are funded. They involve, to varying degrees, elements of credit risk in excess of amounts recognized in the consolidated balance sheets. Losses would be experienced when the Company is contractually obligated to make a payment under these instruments and must seek repayment from the borrower, which may not be as financially sound in the current period as they were when the commitment was originally made. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company enters into credit arrangements that generally provide for the termination of advances in the event of a covenant violation or other event of default. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. The commitments are collateralized by the same types of assets used as loan collateral. As with outstanding loans, the Company applies qualitative factors and utilization rates to its off-balance sheet obligations in determining an estimate of losses inherent in these contractual obligations. The estimate for loan losses on off-balance sheet instruments is included within other liabilities and the charge to income that establishes this liability is included in non-interest expense. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the terms of the leases or the estimated useful lives of the improvements, whichever is shorter. Generally, the estimated useful lives of other items of premises and equipment are as follows: Years Building and improvements 31.5 Furniture and equipment 5 – 10 Electronic equipment and software 3 – 5 |
Leases | Leases At inception, contracts are evaluated to determine whether the contract constitutes a lease agreement. For contracts that are determined to be an operating lease, a corresponding Right of Use ("ROU") asset and operating lease liability are recorded in separate line items on the Consolidated Balance Sheet. ROU assets represent the Company's right to use an underlying asset during the lease term and a lease liability represents the Company's commitment to make contractually obligated lease payments. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease and are based on the present value of lease payments over the lease term. The measurement of the operating lease ROU asset includes any lease payments made and is reduced by lease incentive that are paid or are payable to the Company. Variable lease payments that depend on an index are included in lease payments based on the rate in effect at the commencement date of the lease. Lease payments are recognized on a straight-line basis as part of occupancy expense over the lease term. As the rate implicit in the lease is not readily determinable, the Company's incremental borrowing rate is used to determine the present value of lease payments. This rate gives consideration to the applicable FHLB collateralized borrowing rates and is based on the information available at the commencement date. The Company has elected to apply the short-term lease measurement and recognition exemption to leases with an initial term of 12 months or less, therefore, these leases are not recorded on the Company's Balance Sheet. Lease expense of these leases is recognized over the lease term on a straight-line basis. The Company's lease agreements may include options to extend or terminate the lease. These options are included in the lease term when it is reasonably certain that the option will be exercised. In addition to the package of practical expedients, the Company also elected the practical expedient that allows lessees to make an accounting policy election to not separate non-lease components from the associated lease component, and instead account for them all together as part of the applicable lease component. The majority of the Company's non-lease components, such as common area maintenance and taxes, are variable and expensed as incurred. Variable payment amounts are determined in arrears by the landlord depending on actual costs incurred. See ''Note 14. Leases" of these Notes to Consolidated Financial Statements for further disclosures required under the standard. |
Foreclosed Real Estate and Repossessed Assets | Foreclosed Real Estate and Repossessed Assets Foreclosed real estate and other repossessed assets are recorded at fair value at the time of foreclosure less estimated costs to sell. Any excess of loan balance over the fair value less estimated costs to sell of the other assets is charged-off against the allowance for loan losses. Any excess of the fair value less estimated costs to sell over the loan balance is recorded as a loan loss recovery to the extent of the loan loss previously charged-off against the allowance for loan losses; and, if greater, recorded as a gain on foreclosed assets. Subsequent to the legal ownership date, the Company periodically performs a new valuation and the asset is carried at the lower of carrying amount or fair value less estimated costs to sell. Operating expenses or income, and gains or losses on disposition of such properties, are recorded in current operations. |
Income Taxes | Income Taxes The Company uses the asset and liability method, which recognizes an asset or liability representing the tax effects of future deductible or taxable amounts that have been recognized in the consolidated financial statements. Due to tax regulations, certain items of income and expense are recognized in different periods for tax return purposes than for financial statement reporting. These items represent “temporary differences.” Deferred income taxes are recognized for the tax effect of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is established for deferred tax assets if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets may not be realized. Any interest or penalties assessed by the taxing authorities is classified in the financial statements as income tax expense. Deferred tax assets are included in other assets on the consolidated balance sheets. Management evaluates the Company’s deferred tax asset for recoverability using a consistent approach which considers the relative impact of negative and positive evidence, including the Company’s historical profitability and projections of future taxable income. The Company is required to establish a valuation allowance for deferred tax assets and record a charge to income if management determines, based on available evidence at the time the determination is made, that it is more likely than not that some portion or all of the deferred tax assets may not be realized. The Company is subject to the provisions of ASC 740, Income Taxes |
Bank Owned Life Insurance | Bank Owned Life Insurance Bank owned life insurance is stated at its cash surrender value with changes recorded in other non-interest income in the consolidated income statements. The cash surrender value of the underlying policies was $6.9 million and $6.7 million as of December 31, 2019 and 2018, respectively. There are no loans offset against cash surrender values, and there are no restrictions as to the use of proceeds. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities. FASB ASC 820, Fair Value Measurements and Disclosures • Level 1— Observable quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2— Observable quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, matrix pricing or model-based valuation techniques where all significant assumptions are observable, either directly or indirectly in the market. • Level 3— Model-based techniques where all significant assumptions are not observable, either directly or indirectly, in the market. These unobservable assumptions reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques may include use of discounted cash flow models and similar techniques. The availability of observable inputs varies based on the nature of the specific financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Fair value is a market-based measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. When market assumptions are available, ASC 820 requires the Company to make assumptions regarding the assumptions that market participants would use to estimate the fair value of the financial instrument at the measurement date. FASB ASC 825, Financial Instruments Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction at December 31, 2019 or 2018. The estimated fair value amounts for December 31, 2019 and 2018 have been measured as of period-end, and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those dates. As such, the estimated fair values of these financial instruments subsequent to the reporting date may be different than the amounts reported at the period-end. The information presented in Note 16, “Fair Value Measurement,” should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only required for a limited portion of the Company’s assets and liabilities. Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimate, comparisons between the Company’s disclosures and those of other companies or banks may not be meaningful. The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments: Cash and cash equivalents The carrying amounts reported in the consolidated balance sheets for cash and due from banks approximate their fair value. Money market investments The carrying amounts reported in the consolidated balance sheets for money market investments approximate their fair value. Investment securities The fair value of Farmer Mac class A stock is based on quoted market prices and are categorized as Level 1 of the fair value hierarchy. The fair value of other investment securities were determined based on matrix pricing. Matrix pricing is a mathematical technique that utilizes observable market inputs including, for example, yield curves, credit ratings and prepayment speeds. Fair values determined using matrix pricing are generally categorized as Level 2 in the fair value hierarchy. FRB and FHLB stock CWB is a member of the FHLB system and maintains an investment in capital stock of the FHLB. CWB also maintain an investment in FRB stock. These investments are carried at cost since no ready market exists for them, and they have no quoted market value. The Company conducts a periodic review and evaluation of our FHLB stock to determine if any impairment exists. The fair values have been categorized as Level 2 in the fair value hierarchy. Loans Fair value for loans is estimated based on exit-pricing discounted cash flows using interest rates currently being offered for loans with similar terms to borrowers with similar credit quality with adjustments that the Company believes a market participant would consider in determining fair value based on a third party independent valuation. As a result, the fair value for loans is categorized as Level 2 in the fair value hierarchy. Fair values of impaired loans using a discounted cash flow method to measure impairment have been categorized as Level 3. Deposit liabilities The amount payable at demand at report date is used to estimate the fair value of demand and savings deposits. The estimated fair values of fixed-rate time deposits are determined by discounting the cash flows of segments of deposits that have similar maturities and rates, utilizing a discount rate that approximates the prevailing rates offered to depositors as of the measurement date. The fair value measurement of deposit liabilities is categorized as Level 2 in the fair value hierarchy. Federal Home Loan Bank advances and other borrowings The fair values of the Company’s borrowings are estimated using discounted cash flow analyses, based on the market rates for similar types of borrowing arrangements. The other borrowings have been categorized as Level 3 in the fair value hierarchy. The FHLB advances have been categorized as Level 2 in the fair value hierarchy. Off-balance sheet instruments Fair values for the Company’s off-balance sheet instruments (lending commitments and standby letters of credit) are based on quoted fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. |
Earnings Per Share | Earnings Per Share Basic earnings per common share is computed using the weighted average number of common shares outstanding for the period divided into the net income (loss) available to common shareholders. Diluted earnings per share include the effect of all dilutive potential common shares for the period. Potentially dilutive common shares include stock options and warrants. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued guidance codified within ASU 2014-09, “Revenue Recognition - Revenue from Contracts with Customers,” which amends the guidance in former Topic 605, Revenue Recognition. The new revenue recognition standard will In January 2016, the FASB issued guidance codified within ASU 2016-01, “Financial Instruments – Overall, Subtopic 825-10: Recognition and Measurement of Financial Assets and Financial Liabilities,” which amends certain guidance on classification and measurement of financial instruments. The update is intended to enhance the reporting model for financial instruments to provide users of financial instruments with more decision-useful information and addresses certain aspects of the recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for the Company for annual reporting periods beginning after December 15, 2017. The Company has evaluated the impact of the provisions in this standard on the Company's Consolidated Financial Statements. The Company's adoption of this guidance did not have a material impact on the Company's Consolidated Financial Statements. In February 2016, the FASB amended its standards with respect to the accounting for leases. The amended guidance serves to replace all current U.S. GAAP guidance on this topic and requires that an operating lease be recognized on the statement of financial condition as a “right-to-use” asset along with a corresponding liability representing the rent obligation. Key aspects of current lessor accounting remain unchanged from existing guidance. This standard is expected to result in an increase to assets and liabilities recognized and, therefore, increase risk-weighted assets for regulatory capital purposes. The guidance requires the use of the modified retrospective transition approach for existing leases that have not expired before the date of initial application and will become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The standard is effective for the Company as of January 1, 2019. Upon adoption of the guidance on January 1, 2019, the Company recorded a ROU asset and lease liability of $8.4 million and $8.4 million respectively, on the consolidating balance. No cumulative effect adjustment to retained earnings resulted from the adoption of this guidance. The new standard did not have a material impact in the Company's result of operations or cash flows. In March 2016, the FASB issued update guidance codified within ASU-2016-09, “Compensation – Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting,” which amends the guidance on certain aspects of share-based payments to employees. The new guidance will require entities to recognize all income tax effects of awards in the income statement when the awards vest or are settled. The guidance requires the use of the modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. The standard was effective for the Company as of January 1, 2017. The adoption of this standard did not have a material impact on the Company’s Consolidated Financial Statements. In June of 2016, the FASB issued update guidance codified within ASU-2016-13, “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments,” which amends the guidance for recognizing credit losses from an “incurred loss” methodology that delays recognition of credit losses until it is probable a loss has been incurred to an expected credit loss methodology. The guidance requires the use of the modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. The standard is effective for the Company as of January 1, 2023. The Company is currently evaluating the impact of the amended guidance and has not yet determined the effect of the standard on its ongoing financial reporting. In March 2017, the FASB issued updated guidance codified within ASU-2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20),” which is intended to enhance the accounting for the amortization of premiums for purchased callable debt securities. The standard is effective for the Company as of January 1, 2019. The adoption of this standard did not have a material impact on the Company’s financials. In February 2018, the FASB issued guidance codified within ASU-2018-02, "Income Statement – Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," to address the income tax accounting treatment of the standard tax effects within other comprehensive income due to the prohibition of backward tracing due to an income tax rate change that was initially recorded in other comprehensive income. This issue came about from the enactment of the Tax Cuts and Jobs Act on December 22, 2017 that changed the Company's income tax rate from 34% to 21%. The ASU changed current accounting whereby an entity may elect to reclassify the stranded tax effect from accumulated other comprehensive income to retained earnings. The ASU is effective for periods beginning after December 15, 2018 although early adoption is permitted. The Company adopted ASU-2018-02 in the first quarter of 2018 and reclassified its stranded tax credit of $53,000 within accumulated other comprehensive income to retained earnings at January 1, 2018. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Estimated Useful Lives of Other Items of Premises and Equipment | Generally, the estimated useful lives of other items of premises and equipment are as follows: Years Building and improvements 31.5 Furniture and equipment 5 – 10 Electronic equipment and software 3 – 5 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INVESTMENT SECURITIES [Abstract] | |
Amortized Cost and Estimated Fair Value of Investment Securities | The amortized cost and estimated fair value of investment securities are as follows: December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Securities available-for-sale (in thousands) U.S. government agency notes $ 8,112 $ — $ (64 ) $ 8,048 U.S. government agency collateralized mortgage obligations ("CMO") 11,270 23 (77 ) 11,216 Total $ 19,382 $ 23 $ (141 ) $ 19,264 Securities held-to-maturity U.S. government agency mortgage backed securities ("MBS") $ 6,132 $ 189 $ (19 ) $ 6,302 Total $ 6,132 $ 189 $ (19 ) $ 6,302 Securities measured at fair value Equity securities: Farmer Mac class A stock $ 66 $ 101 $ — $ 167 Total $ 66 $ 101 $ — $ 167 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Securities available-for-sale (in thousands) U.S. government agency notes $ 12,225 $ — $ (155 ) $ 12,070 U.S. government agency collateralized mortgage obligations ("CMO") 12,931 9 (79 ) 12,861 Total 25,156 9 (234 ) 24,931 Securities held-to-maturity U.S. government agency mortgage backed securities ("MBS") $ 7,301 $ 118 $ (150 ) $ 7,269 Total $ 7,301 $ 118 $ (150 ) $ 7,269 Securities measured at fair value Equity securities: Farmer Mac class A stock $ 66 $ 55 $ — $ 121 Total $ 66 $ 55 $ — $ 121 |
Maturity Periods and Weighted Average Yields of Investment Securities | The maturity periods and weighted average yields of investment securities at December 31, 2019 and 2018 were as follows: December 31, 2019 Less than One Year One to Five Years Five to Ten Years Over Ten Years Total Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield Securities available-for-sale (dollars in thousands) U.S. government agency notes $ — — $ 1,094 2.3 % $ 6,955 2.8 % $ — — $ 8,049 2.8 % U.S. government agency CMO — — 3,766 2.1 % 6,120 2.3 % 1,329 2.4 % 11,215 2.3 % Total $ — — $ 4,860 2.2 % $ 13,075 2.6 % $ 1,329 2.4 % $ 19,264 2.5 % Securities held-to-maturity U.S. government agency MBS $ — — $ 2,465 4.2 % $ 2,887 2.9 % $ 780 3.6 % $ 6,132 3.5 % Total $ — — $ 2,465 4.2 % $ 2,887 2.9 % $ 780 3.6 % $ 6,132 3.5 % Securities measured at fair value Farmer Mac class A stock — — — — — — — — 167 — Total — — — — — — — — 167 — December 31, 2018 Less than One Year One to Five Years Five to Ten Years Over Ten Years Total Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield Securities available-for-sale (dollars in thousands) U.S. government agency notes $ 1,946 2.6 % $ 1,388 2.6 % $ 8,736 3.1 % $ — — $ 12,070 2.0 % U.S. government agency CMO — — 2,717 2.5 % 7,284 2.8 % 2,860 3.2 % 12,861 1.9 % Total $ 1,946 2.6 % $ 4,105 2.5 % $ 16,020 3.0 % $ 2,860 3.2 % $ 24,931 2.0 % Securities held-to-maturity U.S. government agency MBS $ — — $ 2,058 4.7 % $ 4,449 3.2 % $ 794 3.6 % $ 7,301 3.3 % Total $ — — $ 2,058 4.7 % $ 4,449 3.2 % $ 794 3.6 % $ 7,301 3.3 % Securities measured at fair value Farmer Mac class A stock — — — — — — — — 121 — Total — — — — — — — — 121 — |
Amortized Cost and Fair Value of Investment Securities by Contractual Maturities | The amortized cost and fair value of investment securities by contractual maturities as of the periods presented were as shown below: December 31, 2019 2018 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Securities available for sale (in thousands) Due in one year or less $ — $ — $ 1,998 $ 1,946 After one year through five years 4,884 4,860 4,138 4,105 After five years through ten years 13,121 13,075 16,107 16,020 After ten years 1,377 1,329 2,913 2,860 Farmer Mac class A stock — — — — Total $ 19,382 $ 19,264 $ 25,156 $ 24,931 Securities held to maturity Due in one year or less $ — $ — $ — $ — After one year through five years 2,465 2,565 2,058 2,153 After five years through ten years 2,887 2,892 4,449 4,323 After ten years 780 845 794 793 Total $ 6,132 $ 6,302 $ 7,301 $ 7,269 Securities measured at fair value Farmer Mac class A stock $ 66 $ 167 $ 66 $ 121 Total $ 66 $ 167 $ 66 $ 121 |
Fair Value and Unrealized Losses of Securities in Unrealized Loss Position | The following tables show all securities that are in an unrealized loss position: December 31, 2019 Less Than Twelve Months More Than Twelve Months Total Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Securities available-for-sale (in thousands) U.S. government agency notes $ 3 $ 1,126 $ 61 $ 6,922 $ 64 $ 8,048 U.S. government agency CMO 25 5,275 52 2,264 77 7,539 Total $ 28 $ 6,401 $ 113 $ 9,186 $ 141 $ 15,587 Securities held-to-maturity U.S. Government-agency MBS $ — $ — $ 19 $ 2,139 $ 19 $ 2,139 Total $ — $ — $ 19 $ 2,139 $ 19 $ 2,139 Securities measured at fair value Equity securities: Farmer Mac class A stock $ — $ — $ — $ — $ — $ — Total $ — $ — $ — $ — $ — $ — December 31, 2018 Less Than Twelve Months More Than Twelve Months Total Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Securities available-for-sale (in thousands) U.S. government agency notes $ 21 $ 4,001 $ 134 $ 8,070 $ 155 $ 12,071 U.S. government agency CMO 2 4,749 77 3,289 79 8,038 Total $ 23 $ 8,750 $ 211 $ 11,359 $ 234 $ 20,109 Securities held-to-maturity U.S. Government-agency MBS $ 10 $ 1,706 $ 140 $ 2,094 $ 150 $ 3,800 Total $ 10 $ 1,706 $ 140 $ 2,094 $ 150 $ 3,800 Securities measured at fair value Equity securities: Farmer Mac class A stock $ — $ — $ — $ — $ — $ — Total $ — $ — $ — $ — $ — $ — |
LOANS HELD FOR INVESTMENT (Tabl
LOANS HELD FOR INVESTMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LOANS HELD FOR INVESTMENT [Abstract] | |
Composition of Loans Held for Investment Loan Portfolio | The composition of the Company’s loans held for investment loan portfolio follows: December 31, 2019 2018 (in thousands) Manufactured housing $ 257,247 $ 247,114 Commercial real estate 385,642 365,809 Commercial 69,843 83,753 SBA 4,429 5,557 HELOC 4,531 6,756 Single family real estate 11,845 11,261 Consumer 94 46 733,631 720,296 Allowance for loan losses (8,717 ) (8,691 ) Deferred fees, net (58 ) (337 ) Discount on SBA loans (56 ) (71 ) Total loans held for investment, net $ 724,800 $ 711,197 |
Contractual Aging of Recorded Investment in Past Due Held for Investment Loans by Class of Loans | The following tables present the contractual aging of the recorded investment in past due held for investment loans by class of loans: December 31, 2019 Current 30-59 Days Past Due 60-89 Days Past Due Over 90 Days Past Due Total Past Due Nonaccrual Total Recorded Investment Over 90 Days and Accruing (in thousands) Manufactured housing $ 256,251 $ 156 $ 246 $ — $ 402 $ 594 $ 257,247 $ — Commercial real estate: Commercial real estate 327,255 — — — — 84 327,339 — SBA 504 1st trust deed 17,151 1,401 — — 1,401 — 18,552 — Land 4,457 — — — — — 4,457 — Construction 35,294 — — — — — 35,294 — Commercial 68,224 — — — — 1,619 69,843 — SBA 3,935 112 — — 112 382 4,429 — HELOC 4,531 — — — — — 4,531 — Single family real estate 11,813 32 — — 32 — 11,845 — Consumer 94 — — — — — 94 — Total $ 729,005 $ 1,701 $ 246 $ — $ 1,947 $ 2,679 $ 733,631 $ — December 31, 2018 Current 30-59 Days Past Due 60-89 Days Past Due Over 90 Days Past Due Total Past Due Nonaccrual Total Recorded Investment Over 90 Days and Accruing (in thousands) Manufactured housing $ 246,456 $ 285 $ 144 $ — $ 429 $ 229 $ 247,114 $ — Commercial real estate: Commercial real estate 267,377 2,478 — — 2,478 102 269,957 — SBA 504 1st trust deed 20,835 — 322 — 322 — 21,157 — Land 6,381 — — — — — 6,381 — Construction 67,835 479 — — 479 — 68,314 — Commercial 78,857 15 — — 15 4,881 83,753 — SBA 4,741 — — — — 816 5,557 — HELOC 6,558 — — — — 198 6,756 — Single family real estate 11,221 16 — 24 40 — 11,261 — Consumer 46 — — — — — 46 — Total $ 710,307 $ 3,273 $ 466 $ 24 $ 3,763 $ 6,226 $ 720,296 $ — |
Analysis of Allowance for Loan Losses for Loans Held for Investment | The following table summarizes the changes in the allowance for loan losses: December 31, 2019 2018 2017 (in thousands) Beginning balance $ 8,691 $ 8,420 $ 7,464 Charge-offs (31 ) (133 ) (203 ) Recoveries 222 390 748 Net recoveries 191 257 545 Provision (credit) (165 ) 14 411 Ending balance $ 8,717 $ 8,691 $ 8,420 As of December 31, 2019 and 2018, the Company had reserves for credit losses on undisbursed loans of $85,000 and $73,000 which were included in Other liabilities. The following tables summarize the changes in the allowance for loan losses by portfolio type: For the Year Ended December 31, Manufactured Housing Commercial Real Estate Commercial SBA HELOC Single Family Real Estate Consumer Total 2019 (in thousands) Beginning balance $ 2,196 $ 5,028 $ 1,210 $ 79 $ 90 $ 88 $ — $ 8,691 Charge-offs — — (31 ) — — — — (31 ) Recoveries 54 52 60 50 5 1 — 222 Net (charge-offs) recoveries 54 52 29 50 5 1 — 191 Provision (credit) (66 ) 137 (77 ) (97 ) (68 ) 3 3 (165 ) Ending balance $ 2,184 $ 5,217 $ 1,162 $ 32 $ 27 $ 92 $ 3 $ 8,717 2018 Beginning balance $ 2,180 $ 4,844 $ 1,133 $ 73 $ 92 $ 98 $ — $ 8,420 Charge-offs (6 ) — (127 ) — — — — (133 ) Recoveries 120 15 66 133 55 1 — 390 Net (charge-offs) recoveries 114 15 (61 ) 133 55 1 — 257 Provision (credit) (98 ) 169 138 (127 ) (57 ) (11 ) — 14 Ending balance $ 2,196 $ 5,028 $ 1,210 $ 79 $ 90 $ 88 $ — $ 8,691 2017 Beginning balance $ 2,201 $ 3,707 $ 1,241 $ 106 $ 100 $ 109 $ — $ 7,464 Charge-offs (119 ) — — (30 ) — (54 ) — (203 ) Recoveries 142 249 161 177 18 1 — 748 Net (charge-offs) recoveries 23 249 161 147 18 (53 ) — 545 Provision (credit) (44 ) 888 (269 ) (180 ) (26 ) 42 — 411 Ending balance $ 2,180 $ 4,844 $ 1,133 $ 73 $ 92 $ 98 $ — $ 8,420 |
Impairment Method Information Related to Loans and Allowance for Loan Losses by Loan Portfolio Segment | The following tables present impairment method information related to loans and allowance for loan losses by loan portfolio segment: Manufactured Housing Commercial Real Estate Commercial SBA HELOC Single Family Real Estate Consumer Total Loans Loans Held for Investment as of December 31, 2019: (in thousands) Recorded Investment: Impaired loans with an allowance recorded $ 5,702 $ — $ — $ — $ — $ 470 $ — $ 6,172 Impaired loans with no allowance recorded 2,296 318 1,802 382 — 1,858 — 6,656 Total loans individually evaluated for impairment 7,998 318 1,802 382 — 2,328 — 12,828 Loans collectively evaluated for impairment 249,249 385,324 68,041 4,047 4,531 9,517 94 720,803 Total loans held for investment $ 257,247 $ 385,642 $ 69,843 $ 4,429 $ 4,531 $ 11,845 $ 94 $ 733,631 Unpaid Principal Balance Impaired loans with an allowance recorded $ 5,702 $ — $ — $ — $ — $ 470 $ — $ 6,172 Impaired loans with no allowance recorded 3,134 384 2,156 736 — 1,858 — 8,268 Total loans individually evaluated for impairment 8,836 384 2,156 736 — 2,328 — 14,440 Loans collectively evaluated for impairment 249,249 385,324 68,041 4,047 4,531 9,517 94 720,803 Total loans held for investment $ 258,085 $ 385,708 $ 70,197 $ 4,783 $ 4,531 $ 11,845 $ 94 $ 735,243 Related Allowance for Loan Losses Impaired loans with an allowance recorded $ 334 $ — $ — $ — $ — $ 18 $ — $ 352 Impaired loans with no allowance recorded — — — — — — — — Total loans individually evaluated for impairment 334 — — — — 18 — 352 Loans collectively evaluated for impairment 1,850 5,217 1,162 32 27 74 3 8,365 Total loans held for investment $ 2,184 $ 5,217 $ 1,162 $ 32 $ 27 $ 92 $ 3 $ 8,717 Manufactured Housing Commercial Real Estate Commercial SBA HELOC Single Family Real Estate Consumer Total Loans Loans Held for Investment as of December 31, 2018: (in thousands) Recorded Investment: Impaired loans with an allowance recorded $ 8,726 $ 243 $ — $ — $ — $ 775 $ — $ 9,744 Impaired loans with no allowance recorded 3,269 102 7,811 815 198 1,964 — 14,159 Total loans individually evaluated for impairment 11,995 345 7,811 815 198 2,739 — 23,903 Loans collectively evaluated for impairment 235,119 365,464 75,942 4,742 6,558 8,522 46 696,393 Total loans held for investment $ 247,114 $ 365,809 $ 83,753 $ 5,557 $ 6,756 $ 11,261 $ 46 $ 720,296 Unpaid Principal Balance Impaired loans with an allowance recorded $ 8,726 $ 243 $ — $ — $ — $ 775 $ — $ 9,744 Impaired loans with no allowance recorded 4,321 160 8,078 1,211 249 1,963 — 15,982 Total loans individually evaluated for impairment 13,047 403 8,078 1,211 249 2,738 — 25,726 Loans collectively evaluated for impairment 235,119 365,464 75,942 4,742 6,558 8,522 46 696,393 Total loans held for investment $ 248,166 $ 365,867 $ 84,020 $ 5,953 $ 6,807 $ 11,260 $ 46 $ 722,119 Related Allowance for Loan Losses Impaired loans with an allowance recorded $ 432 $ 9 $ — $ — $ — $ 24 $ — $ 465 Impaired loans with no allowance recorded — — — — — — — — Total loans individually evaluated for impairment 432 9 — — — 24 — 465 Loans collectively evaluated for impairment 1,764 5,019 1,210 79 90 64 — 8,226 Total loans held for investment $ 2,196 $ 5,028 $ 1,210 $ 79 $ 90 $ 88 $ — $ 8,691 |
Recorded Investment in Loans Classified as Impaired | The table below reflects recorded investment in loans classified as impaired: December 31, 2019 2018 (in thousands) Impaired loans with a specific valuation allowance under ASC 310 $ 6,172 $ 9,744 Impaired loans without a specific valuation allowance under ASC 310 6,656 14,159 Total impaired loans $ 12,828 $ 23,903 Valuation allowance related to impaired loans $ 352 $ 465 |
Impaired Loans by Class | The following table presents impaired loans by class: December 31, 2019 2018 (in thousands) Manufactured housing $ 7,998 $ 11,995 Commercial real estate : Commercial real estate 84 102 SBA 504 1st trust deed 234 243 Land — — Construction — — Commercial 1,802 7,811 SBA 382 815 HELOC — 198 Single family real estate 2,328 2,739 Consumer — — Total $ 12,828 $ 23,903 |
Average Investment in Impaired Loans by Class and Related Interest Income Recognized | The following table summarizes the average investment in impaired loans by class and the related interest income recognized: 2019 2018 2017 Average Investment in Impaired Loans Interest Income Average Investment in Impaired Loans Interest Income Average Investment in Impaired Loans Interest Income Manufactured housing $ 9,171 $ 640 $ 8,709 $ 887 $ 7,616 $ 659 Commercial real estate: Commercial real estate 104 — 108 — 121 1 SBA 504 1st 190 27 341 19 502 19 Land — — — — — — Construction — — — — — — Commercial 5,491 164 7,520 245 5,176 339 SBA 970 32 874 18 797 21 HELOC 127 11 199 11 259 — Single family real estate 2,451 127 2,298 144 2,013 103 Consumer — — — — — — Total $ 18,504 $ 1,001 $ 20,049 $ 1,324 $ 16,484 $ 1,142 |
Recorded Investment in Certain Types of Loans | The following table reflects the recorded investment in certain types of loans at the periods indicated: December 31, 2019 2018 2017 (in thousands) Nonaccrual loans $ 2,679 $ 6,226 $ 6,844 SBA guaranteed portion of loans included above $ 290 $ 2,848 $ 2,372 Troubled debt restructured loans, gross $ 10,774 $ 16,749 $ 16,603 Loans 30 through 89 days past due with interest accruing $ 1,947 $ — $ — Interest income recognized on impaired loans $ 1,001 $ 1,324 $ 1,142 Foregone interest on nonaccrual and troubled debt restructured loans $ 512 $ 454 $ 379 Allowance for loan losses to gross loans held for investment 1.19 % 1.21 % 1.24 % |
Composition of Net Nonaccrual Loans | The following table presents the composition of nonaccrual loans by class of loans: December 31, 2019 2018 (in thousands) Manufactured housing $ 594 $ 229 Commercial real estate: Commercial real estate 84 102 SBA 504 1st trust deed — — Land — — Construction — — Commercial 1,619 4,881 SBA 382 816 HELOC — 198 Single family real estate — — Consumer — — Total $ 2,679 $ 6,226 |
Gross Loans by Risk Rating | The following tables present gross loans by risk rating: December 31, 2019 Pass Special Mention Substandard Doubtful Total (in thousands) Manufactured housing $ 256,430 $ — $ 817 $ — $ 257,247 Commercial real estate: Commercial real estate 323,748 3,507 84 — 327,339 SBA 504 1st trust deed 18,250 — 302 — 18,552 Land 4,457 — — — 4,457 Construction 33,280 — 2,014 — 35,294 Commercial 66,525 170 1,619 — 68,314 SBA 2,379 28 1,154 3,561 HELOC 4,531 — — — 4,531 Single family real estate 11,840 — 5 — 11,845 Consumer 94 — — — 94 Total, net $ 721,534 $ 3,705 $ 5,995 $ — $ 731,234 Government guarantee — 1,530 867 — 2,397 Total $ 721,534 $ 5,235 $ 6,862 $ — $ 733,631 December 31, 2018 Pass Special Mention Substandard Doubtful Total (in thousands) Manufactured housing $ 246,884 $ — $ 230 $ — $ 247,114 Commercial real estate: Commercial real estate 269,855 — 102 — 269,957 SBA 504 1st trust deed 20,109 — 1,048 — 21,157 Land 6,381 — — — 6,381 Construction 66,683 1,631 — — 68,314 Commercial 73,580 — 7,771 — 81,351 SBA 2,770 34 1,557 — 4,361 HELOC 6,558 — 198 — 6,756 Single family real estate 11,256 — 5 — 11,261 Consumer 46 — — — 46 Total, net $ 704,122 $ 1,665 $ 10,911 $ — $ 716,698 Government guarantee — — 3,598 — 3,598 Total $ 704,122 $ 1,665 $ 14,509 $ — $ 720,296 |
Troubled Debt Restructurings | The following tables summarize the financial effects of TDR loans by class for the periods presented: For the Year Ended December 31, 2019 Number of Loans Pre- Modification Recorded Investment Post Modification Recorded Investment Balance of Loans with Rate Reduction Balance of Loans with Term Extension Effect on Allowance for Loan Losses (dollars in thousands) Manufactured housing 1 $ 25 $ 25 $ 25 $ 25 $ 2 Commercial — — — — — — SBA 1 48 48 48 — — Total 2 $ 73 $ 73 $ 73 $ 25 $ 2 For the Year Ended December 31, 2018 Number of Loans Pre- Modification Recorded Investment Post Modification Recorded Investment Balance of Loans with Rate Reduction Balance of Loans with Term Extension Effect on Allowance for Loan Losses (dollars in thousands) Manufactured housing 12 $ 1,047 $ 1,213 $ 1,100 $ 1,213 $ 66 Commercial 3 1,780 1,780 — 1,780 — SBA — — — — — — HELOC — — — — — — Single family real estate — — — — — — Total 15 $ 2,827 $ 2,993 $ 1,100 $ 2,993 $ 66 For the Year Ended December 31, 2017 Number of Loans Pre- Modification Recorded Investment Post Modification Recorded Investment Balance of Loans with Rate Reduction Balance of Loans with Term Extension Effect on Allowance for Loan Losses (dollars in thousands) Manufactured housing 11 $ 894 $ 894 $ 894 $ 894 $ 48 Commercial real estate 3 3,052 3,052 - 3,052 41 SBA 2 298 298 — 298 1 HELOC - - - - - — Single family real estate - - - - - - Total 16 $ 4,244 $ 4,244 $ 894 $ 4,244 $ 90 |
Aggregate Activity with Related Parties | The following table summarizes the aggregate activity in such loans: Year Ended December 31, 2019 2018 (in thousands) Balance, beginning $ 3,505 $ 3,505 New loans — 160 Repayments and other (343 ) (160 ) Balance, ending $ 3,162 $ 3,505 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PREMISES AND EQUIPMENT [Abstract] | |
Premises and Equipment | Year Ended December 31, 2019 2018 (in thousands) Bank premises and land $ 3,959 $ 1,355 Furniture, fixtures and equipment 11,077 10,956 Leasehold improvements 5,106 5,747 Construction in progress 7 5 20,149 18,063 Accumulated depreciation (12,494 ) (11,682 ) Premises and equipment, net $ 7,655 $ 6,381 |
Future Minimum Rental Payments under Non-Cancelable Leases | The Company leases certain premises under non-cancelable operating leases expiring through 2028. The following is a schedule of future minimum rental payments under these leases at December 31, 2019: (in thousands) 2020 $ 1,015 2021 884 2022 779 2023 705 2024 713 Thereafter 3,291 Total $ 7,387 |
OTHER ASSETS ACQUIRED THROUGH_2
OTHER ASSETS ACQUIRED THROUGH FORECLOSURE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER ASSETS ACQUIRED THROUGH FORECLOSURE [Abstract] | |
Other Assets Acquired through Foreclosure | The following table summarizes the changes in other assets acquired through foreclosure: December 31, 2019 2018 2017 (in thousands) Balance, beginning of period $ — $ 372 $ 137 Additions 3,401 174 501 Proceeds from dispositions (844 ) (484 ) (416 ) Gains (losses) on sales, net (33 ) (62 ) 150 Balance, end of period $ 2,524 $ — $ 372 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES [Abstract] | |
Provision for Income Taxes | The provision for income taxes consisted of the following: December 31, 2019 2018 2017 Current: (in thousands) Federal $ 2,402 $ 2,130 $ 3,722 State 1,337 1,208 1,298 3,739 3,338 5,020 Deferred: Federal (242 ) (421 ) 701 State (86 ) (108 ) (173 ) (328 ) (529 ) 528 Total provision for income taxes $ 3,411 $ 2,809 $ 5,548 |
Reconciliation between Statutory Income Tax Rate and Effective Tax Rate | The reconciliation between the statutory income tax rate and the Company’s effective tax rate follows: December 31, 2019 2018 2017 Federal income tax at statutory rate 21.0 % 21.0 % 34.0 % State franchise tax, net of federal benefit 8.6 % 8.6 % 7.2 % Other 0.4 % (2.1 )% (0.4 )% Tax law change 0.0 % 0.0 % 12.2 % Total provision for income taxes 30.0 % 27.5 % 53.0 % |
Cumulative Tax Effects of Primary Temporary Differences | The cumulative tax effects of the primary temporary differences are as shown in the following table: December 31, 2019 2018 Deferred Tax Assets: (in thousands) Allowance for loan losses $ 2,663 $ 2,619 Unrealized loss on AFS securities 14 58 Other 2,446 2,028 Total gross deferred tax assets 5,123 4,705 Deferred tax asset valuation allowance — — Total deferred tax assets 5,123 4,705 Deferred Tax Liabilities: Deferred state taxes (266 ) (248 ) Depreciation (653 ) (446 ) Unrealized gain on AFS securities — — Other (1,032 ) (786 ) Total deferred tax liabilities (1,951 ) (1,480 ) Net deferred tax asset $ 3,172 $ 3,225 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
DEPOSITS [Abstract] | |
Summary of Deposits | The table below summarizes deposits by type: December 31, 2019 2018 (in thousands) Non-interest bearing demand deposits $ 110,843 $ 108,161 Interest-bearing deposits: NOW accounts 25,523 23,085 Money market deposit account 288,755 247,346 Savings accounts 15,689 14,641 Time deposits of $250,000 or more 96,431 93,439 Other time deposits 213,693 229,334 Total deposits $ 750,934 $ 716,006 |
Summary of Contractual Maturities for All Time Deposits | The summary of the contractual maturities for all time deposits is as follows: (in thousands) 2020 $ 272,257 2021 25,028 2022 8,375 2023 2,647 2024 1,817 Thereafter — Total $ 310,124 |
OTHER BORROWINGS (Tables)
OTHER BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER BORROWINGS [Abstract] | |
Summary of FHLB Advances by Maturity Date | The following table summarizes the Company’s FHLB advances by maturity date: December 31, 2019 2018 Contractual Maturity Date Amount Rate Amount Rate (dollars in thousands) January 2, 2019 $ — — $ 25,000 2.56 % March 21, 2019 — — 5,000 2.34 % April 3, 2019 — — 5,000 2.29 % May 31, 2019 — — 5,000 2.41 % March 30, 2020 5,000 2.56 % 5,000 2.56 % April 3, 2020 15,000 2.54 % 15,000 2.54 % April 27, 2020 5,000 2.49 % — — May 29, 2020 5,000 2.35 % — — October 2, 2020 20,000 1.74 % — — April 5, 2021 10,000 2.65 % 10,000 2.65 % May 10, 2021 5,000 2.44 % — — Total FHLB advances $ 65,000 $ 70,000 Weighted average rate 2.29 % 2.52 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Summary of Contractual Amounts for Unfunded Commitments and Letters of Credit | A summary of the contractual amounts for unfunded commitments and letters of credit are as follows: Year Ended December 31, 2019 2018 (in thousands) Commitments to extend credit $ 67,538 $ 57,450 Standby letters of credit 655 — Total $ 68,193 $ 57,450 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
STOCKHOLDERS' EQUITY [Abstract] | |
Summary of Assumptions Used in Calculating Fair Value of Option Awards | A summary of the assumptions used in calculating the fair value of option awards during the years ended December 31, 2019, 2018 and 2017 are as follows: December 31, 2019 2018 2017 Expected life in years 6.2 6.3 6.4 Risk-free interest rate 2.41 % 2.85 % 2.04 % Expected volatility 27.6 % 34.7 % 44.1 % Annual dividend rate 2.00 % 1.64 % 1.49 % |
Summary of Option Activity | A summary of option activity under the plan is presented below: Year ended December 31, 2019 Option Shares Weighted Average Exercise Price Weighted Average Remaining Term Aggregate Intrinsic Value (in thousands, except exercise price and contractual terms) Outstanding options, beginning of period 679 $ 8.32 Granted 126 10.19 Exercised (39 ) 6.92 Forfeited or expired (35 ) 7.81 Outstanding options, end of period 731 $ 8.74 6.9 $ 1,805 Options exercisable, end of period 394 $ 7.77 5.9 $ 1,337 Options expected to vest, end of period 644 $ 8.52 6.7 $ 1,721 Year Ended December 31, 2018 Option Shares Weighted Average Exercise Price Weighted Average Remaining Term Aggregate Intrinsic Value (in thousands, except exercise price and contractual terms) Outstanding options, beginning of period 680 $ 7.21 Granted 136 11.61 Exercised (102 ) 5.39 Forfeited or expired (35 ) 8.16 Outstanding options, end of period 679 $ 8.32 7.4 $ 1,400 Options exercisable, end of period 340 $ 7.39 6.6 $ 945 Options expected to vest, end of period 588 $ 8.08 7.2 $ 1,318 Year Ended December 31, 2017 Option Shares Weighted Average Exercise Price Weighted Average Remaining Term Aggregate Intrinsic Value (in thousands, except exercise price and contractual terms) Outstanding options, beginning of period 705 $ 6.41 Granted 159 10.15 Exercised (97 ) 5.05 Forfeited or expired (87 ) 8.57 Outstanding options, end of period 680 $ 7.21 7.5 $ 2,342 Options exercisable, end of period 319 $ 6.35 6.6 $ 1,371 Options expected to vest, end of period 576 $ 7.03 7.3 $ 719 |
Summary of Change in Unvested Stock Option Share | The following table summarizes the change in unvested stock option shares during the year ended December 31, 2019: Number of Option Shares Weighted Average Grant-Date Fair Value (in thousands, except per share data) Unvested options, beginning of period 339 $ 3.70 Granted 126 2.51 Vested (105 ) 3.71 Forfeited (23 ) 3.14 Unvested options, end of period 337 $ 3.29 |
CAPITAL REQUIREMENTS (Tables)
CAPITAL REQUIREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
CAPITAL REQUIREMENTS [Abstract] | |
Bank's Regulatory Ratios and Federal Reserve's Current Adequacy Guidelines | The following tables illustrates the Bank’s regulatory ratios and the Federal Reserve’s current adequacy guidelines as of December 31, 2019 and 2018. The Federal Reserve’s fully phased-in guidelines applicable in 2019 are also summarized. Total Capital (To Risk- Weighted Tier 1 Capital (To Risk- Weighted Assets) Common Equity Tier 1 (To Risk- Weighted Assets) Leverage Ratio/Tier1 Capital (To Average Assets) December 31, 2019 CWB's actual regulatory ratios 11.41 % 10.28 % 10.28 % 9.06 % Minimum capital requirements 8.00 % 6.00 % 4.50 % 4.00 % Well-capitalized requirements 10.00 % 8.00 % 6.50 % N/A Minimum capital requirements including fully-phased in capital conservation buffer (2019) 10.50 % 8.50 % 7.00 % N/A Total Capital (To Risk- Weighted Assets) Tier 1 Capital (To Risk- Weighted Assets) Common Equity Tier 1 (To Risk- Weighted Assets) Leverage Ratio/Tier1 Capital (To Average Assets) December 31, 2018 CWB's actual regulatory ratios 10.83 % 9.68 % 9.68 % 8.57 % Minimum capital requirements 8.00 % 6.00 % 4.50 % 4.00 % Well-capitalized requirements 10.00 % 8.00 % 6.50 % 5.00 % Minimum capital requirements including fully-phased in capital conservation buffer (2019) 10.50 % 8.50 % 7.00 % N/A |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
REVENUE RECOGNITION [Abstract] | |
Non-Interest Income | The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for periods indicated. Non-interest income Twelve Months Ended December 31, In-scope of Topic 606: 2019 2018 2017 Service charges on deposit accounts $ 507 $ 369 $ — Exchange fees and other service charges 159 186 — Non-interest income (in-scope of Topic 606) 666 555 — Non-interest income (out-of-scope of Topic 606) 2,941 2,073 — Total $ 3,607 $ 2,628 $ — |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LEASES [Abstract] | |
Lease Cost and Other Information | Twelve Months Ended December 31, 2019 2018 Lease cost: (in thousands) Operating lease cost 1,137 — Sublease income — — Total lease cost 1,137 — Other information Cash paid for amounts included in the measurement of lease liabilities — — Operating cash flows from operating leases 1,117 — Weighted average remaining lease term in years - operating leases 9.62 — Weighted average discount rate - operating leases 3.23 % — |
Future Minimum Operating Lease Payments | Future minimum operating lease payments: December 31, 2019 2018 (in thousands) 2020 $ 1,015 $ — 2021 884 — 2022 779 — 2023 705 — 2024 713 — Thereafter 3,291 — Total future minimum lease payments $ 7,387 $ — Less remaining imputed interest 1,071 — Total lease liabilities $ 6,316 $ — |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENT [Abstract] | |
Fair Value Measurements of Assets Measured on a Recurring Basis | The following tables summarize the fair value of assets measured on a recurring basis: Fair Value Measurements at the End of the Reporting Period Using: December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Assets: (in thousands) Investment securities measured at fair value $ 167 $ - $ - $ 167 Investment securities available-for-sale - 19,264 - 19,264 Interest only strips - - 41 41 Servicing assets - - 846 846 $ 167 $ 19,264 $ 887 $ 20,318 Fair Value Measurements at the End of the Reporting Period Using: December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Assets: (in thousands) Investment securities measured at fair value $ 121 $ - $ - $ 121 Investment securities available-for-sale - 24,931 - 24,931 Interest only strips - - 63 63 Servicing assets - - 101 101 $ 121 $ 24,931 $ 164 $ 25,216 |
Fair Value Measurements of Assets Measured on a Non-recurring Basis | The following summarizes the fair value measurements of assets measured on a non-recurring basis: Fair Value Measurements at the End of the Reporting Period Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Active Markets for Similar Assets (Level 2) Unobservable Inputs (Level 3) (in thousands) As of December 31, 2019: Impaired loans $ 2,334 $ — $ 2,334 $ — Loans held for sale 42,900 — 42,900 — Foreclosed real estate and repossessed assets 2,524 — 2,524 — $ 47,758 $ — $ 47,758 $ — As of December 31, 2018: Impaired loans $ 5,592 $ — $ 5,592 $ — Loans held for sale 49,050 — 49,050 — Foreclosed real estate and repossessed assets — — — — $ 54,642 $ — $ 54,642 $ — |
Estimated Fair Values and Carrying Values of Financial Instruments | The estimated fair value of the Company’s financial instruments are as follows: December 31, 2019 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total Financial assets: (in thousands) Cash and cash equivalents $ 82,661 $ 82,661 $ — $ — $ 82,661 FRB and FHLB stock 4,087 — 4,087 — 4,087 Investment securities 25,563 167 25,399 — 25,566 Loans, net 766,846 — 752,287 9,907 762,194 Financial liabilities: Deposits 750,934 — 751,398 — 751,398 Other borrowings 65,000 — 65,236 — 65,236 December 31, 2018 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total Financial assets: (in thousands) Cash and cash equivalents $ 56,915 $ 56,915 $ — $ — $ 56,915 FRB and FHLB stock 4,087 — 4,087 — 4,087 Investment securities 32,353 121 32,079 — 32,200 Loans, net 759,552 — 735,377 17,846 753,223 Financial liabilities: Deposits 716,006 — 712,900 — 712,900 Other borrowings 75,000 — 74,930 — 74,930 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME [Abstract] | |
Changes in Other Comprehensive Income (Loss) by Component, Net of Tax | The following table summarizes the changes in other comprehensive income by component, net of tax for the period indicated: Year Ended December 31, 2019 2018 2017 Unrealized holding gains (losses ) on AFS (in thousands) Beginning balance $ (141 ) $ 25 $ (29 ) Other comprehensive income (loss) before reclassifications 63 (107 ) 54 Amounts reclassified from accumulated other comprehensive income — (59 ) — Net current-period other comprehensive income 63 (166 ) 54 Ending Balance $ (78 ) $ (141 ) $ 25 |
PARENT COMPANY FINANCIAL INFO_2
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PARENT COMPANY FINANCIAL INFORMATION [Abstract] | |
Condensed Balance Sheets | COMMUNITY WEST BANCSHARES Condensed Balance Sheets December 31, 2019 2018 (in thousands) Assets: Cash and cash equivalents (including interest-bearing deposits in other financial institutions) $ 972 $ 299 Investment in subsidiary 81,171 72,429 Total loans — 8,355 Other assets 168 240 Total assets $ 82,311 $ 81,323 Liabilities and Stockholders' Equity: Other borrowings $ — $ 5,000 Other liabilities 333 172 Total liabilities 333 5,172 Total stockholders' equity 81,978 76,151 Total liabilities and stockholders' equity $ 82,311 $ 81,323 |
Condensed Income Statements | COMMUNITY WEST BANCSHARES Condensed Income Statements December 31, 2019 2018 2017 (in thousands) Interest income $ 227 $ 264 $ 60 Interest expense 111 329 196 Net interest expense 116 (65 ) (136 ) Provision for loan losses (145 ) 60 — Net interest income after provision for loan losses 261 (125 ) (136 ) Income from consolidated subsidiary 8,145 7,844 5,441 Total income 8,406 7,719 5,305 Total non-interest expenses 405 516 669 Income before income tax benefit 8,001 7,203 4,636 Income tax benefit 38 (206 ) (279 ) Net income $ 7,963 $ 7,409 $ 4,915 |
Condensed Statements of Cash Flows | COMMUNITY WEST BANCSHARES Condensed Statements of Cash Flows December 31, 2019 2018 2017 (in thousands) Cash Flows from Operating Activities: Net income $ 7,963 $ 7,409 $ 4,915 Adjustments to reconcile net income to cash provided by operating activities: — — — Equity in undistributed income from subsidiary (8,145 ) (7,844 ) (5,441 ) Stock-based compensation 382 478 537 Changes in: — — — Other assets 72 (50 ) 129 Other liabilities 161 157 (99 ) Net cash provided by operating activities 433 150 41 Cash Flows from Investing Activities: — — — Loan originations and principal collections, net 8,355 (3,440 ) (4,915 ) Net dividends from and investment in subsidiary (534 ) 6,158 3,201 Net cash provided by (used in) investing activities 7,821 2,718 (1,714 ) Cash Flows from Financing Activities: Net increase (decrease) from other borrowings (5,000 ) (1,843 ) 2,843 Common stock dividends paid (1,821 ) (1,581 ) (1,264 ) Common stock repurchase (1,030 ) (669 ) — Proceeds from issuance of common stock 270 551 492 Net cash used in financing activities (7,581 ) (3,542 ) 2,071 Net (decrease) increase in cash and cash equivalents 673 (674 ) 398 Cash and cash equivalents at beginning of year 299 973 575 Cash and cash equivalents at end of year $ 972 $ 299 $ 973 |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | |
Quarterly Statement of Operations | December 31, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total (in thousands, except per share amounts) Interest income $ 11,025 $ 11,367 $ 11,719 $ 11,628 $ 45,739 Interest expense 2,802 2,869 2,921 2,790 11,382 Net interest income 8,223 8,498 8,798 8,838 34,357 Provision (credit) for loan losses (57 ) 177 (75 ) (210 ) (165 ) Net interest income after provision for loan losses 8,280 8,321 8,873 9,048 34,522 Non-interest income 604 692 647 1,664 3,607 Non-interest expenses 6,717 6,760 6,464 6,814 26,755 Income before income taxes 2,167 2,253 3,056 3,898 11,374 Provision for income taxes 657 673 902 1,179 3,411 Net income $ 1,510 $ 1,580 $ 2,154 $ 2,719 $ 7,963 Earnings per share: Income per common share - basic $ 0.18 $ 0.19 $ 0.25 $ 0.32 $ 0.94 Income per common share - diluted $ 0.18 $ 0.18 $ 0.25 $ 0.32 $ 0.93 December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Total (in thousands, except per share amounts) Interest income $ 9,988 $ 10,401 $ 11,201 $ 11,041 $ 42,631 Interest expense 1,638 2,090 2,573 2,687 8,988 Net interest income 8,350 8,311 8,628 8,354 33,643 (Credit) provision for loan losses (144 ) 117 (197 ) 238 14 Net interest income after provision for loan losses 8,494 8,194 8,825 8,116 33,629 Non-interest income 639 688 641 660 2,628 Non-interest expenses 6,533 6,257 6,402 6,847 26,039 Income before income taxes 2,600 2,625 3,064 1,929 10,218 Provision for income taxes 786 758 695 570 2,809 Net income $ 1,814 $ 1,867 $ 2,369 $ 1,359 $ 7,409 Earnings per share: Income per common share - basic $ 0.22 $ 0.23 $ 0.29 $ 0.16 $ 0.89 Income per common share - diluted $ 0.21 $ 0.21 $ 0.27 $ 0.16 $ 0.88 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)SegmentQuarterPayment | Dec. 31, 2018USD ($)Segment | Dec. 31, 2017Segment | |
Business Segments [Abstract] | ||||
Number of reportable segments | Segment | 1 | 1 | 1 | |
Cash Reserve Requirement [Abstract] | ||||
Total reserve balance | $ 3,000 | $ 2,900 | ||
Federal Home Loan Bank ("FHLB") and Federal Reserve Bank ("FRB") Stock [Abstract] | ||||
Impairment charge on equity securities with no actively traded market | $ 0 | 0 | ||
Loans Held for Investment and Interest and Fees from Loans [Abstract] | ||||
Period of delinquency after which a loan is placed in a nonaccrual status | 90 days | |||
Allowance for Loan Losses and Provision for Loan Losses [Abstract] | ||||
Period of loss history used for determining the amount of allowance of loan losses | Quarter | 28 | |||
Bank Owned Life Insurance [Abstract] | ||||
Cash surrender value of life insurance | $ 6,900 | 6,700 | ||
Recent Accounting Pronouncements [Abstract] | ||||
ROU asset | 6,300 | |||
Lease liability | 6,316 | 0 | ||
Retained earnings | $ 39,470 | $ 33,328 | ||
Corporate income tax rate | 21.00% | 21.00% | 34.00% | |
Minimum [Member] | ||||
Loans Held for Investment and Interest and Fees from Loans [Abstract] | ||||
Period of delinquency after which a loan is placed in a nonaccrual status | 90 days | |||
Substantially Risk Free [Member] | ||||
Allowance for Loan Losses and Provision for Loan Losses [Abstract] | ||||
Percentage of cash collateral ratio of borrowed principal | 115.00% | |||
ASU 2016-02 [Member] | ||||
Recent Accounting Pronouncements [Abstract] | ||||
ROU asset | $ 8,400 | |||
Lease liability | 8,400 | |||
ASU 2016-02 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||
Recent Accounting Pronouncements [Abstract] | ||||
Retained earnings | $ 0 | |||
ASU 2018-02 [Member] | ||||
Recent Accounting Pronouncements [Abstract] | ||||
Reclassification of stranded tax credit within accumulated other comprehensive income to retained earnings | $ 53 | |||
Building and Improvements [Member] | ||||
Premises and Equipment [Abstract] | ||||
Estimated useful life of assets | 31 years 6 months | |||
Furniture and Equipment [Member] | Minimum [Member] | ||||
Premises and Equipment [Abstract] | ||||
Estimated useful life of assets | 5 years | |||
Furniture and Equipment [Member] | Maximum [Member] | ||||
Premises and Equipment [Abstract] | ||||
Estimated useful life of assets | 10 years | |||
Electronic Equipment and Software [Member] | Minimum [Member] | ||||
Premises and Equipment [Abstract] | ||||
Estimated useful life of assets | 3 years | |||
Electronic Equipment and Software [Member] | Maximum [Member] | ||||
Premises and Equipment [Abstract] | ||||
Estimated useful life of assets | 5 years | |||
Other Personal Loans [Member] | Maximum [Member] | ||||
Loans Held for Investment and Interest and Fees from Loans [Abstract] | ||||
Threshold period past due for write-off of loans | 120 days | |||
Commercial [Member] | ||||
Allowance for Loan Losses and Provision for Loan Losses [Abstract] | ||||
Period past due for unsecured loans to be charged off | 90 days | |||
Commercial Real Estate [Member] | ||||
Allowance for Loan Losses and Provision for Loan Losses [Abstract] | ||||
Period past due for unsecured loans to be charged off | 90 days | |||
SBA [Member] | ||||
Allowance for Loan Losses and Provision for Loan Losses [Abstract] | ||||
Period past due for unsecured loans to be charged off | 90 days | |||
Consumer [Member] | ||||
Allowance for Loan Losses and Provision for Loan Losses [Abstract] | ||||
Period past due for unsecured loans to be charged off | 120 days | |||
Number of delinquent payments for unsecured loans to be charged off | Payment | 5 | |||
Single Family Real Estate [Member] | ||||
Allowance for Loan Losses and Provision for Loan Losses [Abstract] | ||||
Period past due after which loans are evaluated for impairment | 90 days | |||
HELOC [Member] | ||||
Allowance for Loan Losses and Provision for Loan Losses [Abstract] | ||||
Period past due after which loans are evaluated for impairment | 90 days | |||
Manufactured Housing [Member] | ||||
Allowance for Loan Losses and Provision for Loan Losses [Abstract] | ||||
Period past due after which loans are evaluated for impairment | 90 days |
INVESTMENT SECURITIES, Securiti
INVESTMENT SECURITIES, Securities Available-for-Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Securities available-for-sale [Abstract] | ||
Amortized cost | $ 19,382 | $ 25,156 |
Gross unrealized gains | 23 | 9 |
Gross unrealized (losses) | (141) | (234) |
Fair value | 19,264 | 24,931 |
U.S. Government Agency Notes [Member] | ||
Securities available-for-sale [Abstract] | ||
Amortized cost | 8,112 | 12,225 |
Gross unrealized gains | 0 | 0 |
Gross unrealized (losses) | (64) | (155) |
Fair value | 8,048 | 12,070 |
U.S. Government Agency Collateralized Mortgage Obligations ("CMO") [Member] | ||
Securities available-for-sale [Abstract] | ||
Amortized cost | 11,270 | 12,931 |
Gross unrealized gains | 23 | 9 |
Gross unrealized (losses) | (77) | (79) |
Fair value | $ 11,216 | $ 12,861 |
INVESTMENT SECURITIES, Securi_2
INVESTMENT SECURITIES, Securities Held-to-Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Securities held-to-maturity [Abstract] | ||
Amortized cost | $ 6,132 | $ 7,301 |
Gross unrealized gains | 189 | 118 |
Gross unrealized (losses) | (19) | (150) |
Fair value | 6,302 | 7,269 |
U.S. Government Agency Mortgage Backed Securities ("MBS") [Member] | ||
Securities held-to-maturity [Abstract] | ||
Amortized cost | 6,132 | 7,301 |
Gross unrealized gains | 189 | 118 |
Gross unrealized (losses) | (19) | (150) |
Fair value | $ 6,302 | $ 7,269 |
INVESTMENT SECURITIES, Securi_3
INVESTMENT SECURITIES, Securities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Securities measured at fair value [Abstract] | ||
Amortized cost | $ 66 | $ 66 |
Gross unrealized gains | 101 | 55 |
Gross unrealized (losses) | 0 | 0 |
Fair value | 167 | 121 |
Farmer Mac Class A Stock [Member] | ||
Securities measured at fair value [Abstract] | ||
Amortized cost | 66 | 66 |
Gross unrealized gains | 101 | 55 |
Gross unrealized losses | 0 | 0 |
Fair value | 167 | 121 |
Fair value | $ 167 | $ 121 |
INVESTMENT SECURITIES, Securi_4
INVESTMENT SECURITIES, Securities Pledged as Collateral (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
INVESTMENT SECURITIES [Abstract] | ||
Securities pledged as collateral to the Federal Home Loan Bank ("FHLB") | $ 25.6 | $ 32.2 |
INVESTMENT SECURITIES, Maturity
INVESTMENT SECURITIES, Maturity Periods and Weighted Average Yields (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Maturity periods and weighted average yields of investment securities available-for-sale [Abstract] | ||
Less than one year, amount | $ 0 | $ 1,946 |
Less than one year, yield | 0.00% | 2.60% |
One to five years, amount | $ 4,860 | $ 4,105 |
One to five years, yield | 2.20% | 2.50% |
Five to ten years, amount | $ 13,075 | $ 16,020 |
Five to ten years, yield | 2.60% | 3.00% |
Over ten years, amount | $ 1,329 | $ 2,860 |
Over ten years, yield | 2.40% | 3.20% |
Securities measured at fair value, amount | $ 167 | $ 121 |
Securities measured at fair value, yield | 0.00% | 0.00% |
Total amount | $ 19,264 | $ 24,931 |
Total yield | 2.50% | 2.00% |
Maturity periods and weighted average yields of investment securities held-to-maturity [Abstract] | ||
Less than one year, amount | $ 0 | $ 0 |
Less than one year, yield | 0.00% | 0.00% |
One to five years, amount | $ 2,465 | $ 2,058 |
One to five years, yield | 4.20% | 4.70% |
Five to ten years, amount | $ 2,887 | $ 4,449 |
Five to ten years, yield | 2.90% | 3.20% |
Over ten years, amount | $ 780 | $ 794 |
Over ten years, yield | 3.60% | 3.60% |
Total amount | $ 6,132 | $ 7,301 |
Total yield | 3.50% | 3.30% |
U.S. Government Agency Notes [Member] | ||
Maturity periods and weighted average yields of investment securities available-for-sale [Abstract] | ||
Less than one year, amount | $ 0 | $ 1,946 |
Less than one year, yield | 0.00% | 2.60% |
One to five years, amount | $ 1,094 | $ 1,388 |
One to five years, yield | 2.30% | 2.60% |
Five to ten years, amount | $ 6,955 | $ 8,736 |
Five to ten years, yield | 2.80% | 3.10% |
Over ten years, amount | $ 0 | $ 0 |
Over ten years, yield | 0.00% | 0.00% |
Total amount | $ 8,049 | $ 12,070 |
Total yield | 2.80% | 2.00% |
U.S. Government Agency CMO [Member] | ||
Maturity periods and weighted average yields of investment securities available-for-sale [Abstract] | ||
Less than one year, amount | $ 0 | $ 0 |
Less than one year, yield | 0.00% | 0.00% |
One to five years, amount | $ 3,766 | $ 2,717 |
One to five years, yield | 2.10% | 2.50% |
Five to ten years, amount | $ 6,120 | $ 7,284 |
Five to ten years, yield | 2.30% | 2.80% |
Over ten years, amount | $ 1,329 | $ 2,860 |
Over ten years, yield | 2.40% | 3.20% |
Total amount | $ 11,215 | $ 12,861 |
Total yield | 2.30% | 1.90% |
Farmer Mac Class A Stock [Member] | ||
Maturity periods and weighted average yields of investment securities available-for-sale [Abstract] | ||
Securities measured at fair value, amount | $ 167 | $ 121 |
Securities measured at fair value, yield | 0.00% | 0.00% |
U.S. Government Agency MBS [Member] | ||
Maturity periods and weighted average yields of investment securities held-to-maturity [Abstract] | ||
Less than one year, amount | $ 0 | $ 0 |
Less than one year, yield | 0.00% | 0.00% |
One to five years, amount | $ 2,465 | $ 2,058 |
One to five years, yield | 4.20% | 4.70% |
Five to ten years, amount | $ 2,887 | $ 4,449 |
Five to ten years, yield | 2.90% | 3.20% |
Over ten years, amount | $ 780 | $ 794 |
Over ten years, yield | 3.60% | 3.60% |
Total amount | $ 6,132 | $ 7,301 |
Total yield | 3.50% | 3.30% |
INVESTMENT SECURITIES, Investme
INVESTMENT SECURITIES, Investment Securities by Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Securities available-for-sale, Amortized Cost [Abstract] | ||
Due in one year or less | $ 0 | $ 1,998 |
After one year through five years | 4,884 | 4,138 |
After five years through ten years | 13,121 | 16,107 |
After ten years | 1,377 | 2,913 |
Farmer Mac class A stock | 0 | 0 |
Amortized cost | 19,382 | 25,156 |
Securities available for sale, Estimated Fair Value [Abstract] | ||
Due in one year or less | 0 | 1,946 |
After one year through five years | 4,860 | 4,105 |
After five years through ten years | 13,075 | 16,020 |
After ten years | 1,329 | 2,860 |
Farmer Mac class A stock | 0 | 0 |
Estimated fair value | 19,264 | 24,931 |
Securities held to maturity, Amortized Cost [Abstract] | ||
Due in one year or less | 0 | 0 |
After one year through five years | 2,465 | 2,058 |
After five years through ten years | 2,887 | 4,449 |
After ten years | 780 | 794 |
Amortized cost | 6,132 | 7,301 |
Securities held to maturity, Estimated Fair Value [Abstract] | ||
Due in one year or less | 0 | 0 |
After one year through five years | 2,565 | 2,153 |
After five years through ten years | 2,892 | 4,323 |
After ten years | 845 | 793 |
Estimated fair value | 6,302 | 7,269 |
Securities measured at fair value [Abstract] | ||
Amortized cost | 66 | 66 |
Fair value | $ 167 | $ 121 |
INVESTMENT SECURITIES, Unrealiz
INVESTMENT SECURITIES, Unrealized Loss Positions (Details) $ in Thousands | Dec. 31, 2019USD ($)Security | Dec. 31, 2018USD ($)Security |
Securities available-for-sale, continuous unrealized loss position [Abstract] | ||
Less than twelve months, gross unrealized losses | $ 28 | $ 23 |
Less than twelve months, fair value | 6,401 | 8,750 |
More than twelve months, gross unrealized losses | 113 | 211 |
More than twelve months, fair value | 9,186 | 11,359 |
Total, gross unrealized losses | 141 | 234 |
Total, fair value | 15,587 | 20,109 |
Securities held-to-maturity, continuous unrealized loss position [Abstract] | ||
Less than twelve months, gross unrealized losses | 0 | 10 |
Less than twelve months, fair value | 0 | 1,706 |
More than twelve months, gross unrealized losses | 19 | 140 |
More than twelve months, fair value | 2,139 | 2,094 |
Total, gross unrealized losses | 19 | 150 |
Total, fair value | 2,139 | 3,800 |
Securities measured at fair value [Abstract] | ||
Less than twelve months, gross unrealized losses | 0 | 0 |
Less than twelve months, fair value | 0 | 0 |
More than twelve months, gross unrealized losses | 0 | 0 |
More than twelve months, fair value | 0 | 0 |
Total, gross unrealized losses | 0 | 0 |
Total, fair value | $ 0 | $ 0 |
Securities in unrealized loss positions | Security | 20 | 21 |
U.S. Government Agency Notes [Member] | ||
Securities available-for-sale, continuous unrealized loss position [Abstract] | ||
Less than twelve months, gross unrealized losses | $ 3 | $ 21 |
Less than twelve months, fair value | 1,126 | 4,001 |
More than twelve months, gross unrealized losses | 61 | 134 |
More than twelve months, fair value | 6,922 | 8,070 |
Total, gross unrealized losses | 64 | 155 |
Total, fair value | 8,048 | 12,071 |
U.S. Government Agency CMO [Member] | ||
Securities available-for-sale, continuous unrealized loss position [Abstract] | ||
Less than twelve months, gross unrealized losses | 25 | 2 |
Less than twelve months, fair value | 5,275 | 4,749 |
More than twelve months, gross unrealized losses | 52 | 77 |
More than twelve months, fair value | 2,264 | 3,289 |
Total, gross unrealized losses | 77 | 79 |
Total, fair value | 7,539 | 8,038 |
U.S. Government Agency MBS [Member] | ||
Securities held-to-maturity, continuous unrealized loss position [Abstract] | ||
Less than twelve months, gross unrealized losses | 0 | 10 |
Less than twelve months, fair value | 0 | 1,706 |
More than twelve months, gross unrealized losses | 19 | 140 |
More than twelve months, fair value | 2,139 | 2,094 |
Total, gross unrealized losses | 19 | 150 |
Total, fair value | 2,139 | 3,800 |
Equity Securities: Farmer Mac Class A Stock [Member] | ||
Securities measured at fair value [Abstract] | ||
Less than twelve months, gross unrealized losses | 0 | 0 |
Less than twelve months, fair value | 0 | 0 |
More than twelve months, gross unrealized losses | 0 | 0 |
More than twelve months, fair value | 0 | 0 |
Total, gross unrealized losses | 0 | 0 |
Total, fair value | $ 0 | $ 0 |
LOANS HELD FOR SALE (Details)
LOANS HELD FOR SALE (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans Held for Sale [Abstract] | ||
Loans included in loans held for sale | $ 42,046 | $ 48,355 |
SBA [Member] | ||
Loans Held for Sale [Abstract] | ||
Loans included in loans held for sale | 10,400 | 13,600 |
Principal balance of loan serviced | 5,200 | 7,200 |
US Department of Agriculture [Member] | ||
Loans Held for Sale [Abstract] | ||
Loans included in loans held for sale | 31,600 | 34,800 |
Principal balance of loan serviced | $ 1,900 | $ 2,000 |
LOANS HELD FOR INVESTMENT (Deta
LOANS HELD FOR INVESTMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loans held for investment [Abstract] | ||||
Loan held for investment, gross | $ 733,631 | $ 720,296 | ||
Allowance for loan losses | (8,717) | (8,691) | $ (8,420) | $ (7,464) |
Deferred fees, net | (58) | (337) | ||
Discount on SBA loans | (56) | (71) | ||
Total loans held for investment, net | 724,800 | 711,197 | ||
Manufactured Housing [Member] | ||||
Loans held for investment [Abstract] | ||||
Loan held for investment, gross | 257,247 | 247,114 | ||
Allowance for loan losses | (2,184) | (2,196) | (2,180) | (2,201) |
Commercial Real Estate [Member] | ||||
Loans held for investment [Abstract] | ||||
Loan held for investment, gross | 385,642 | 365,809 | ||
Allowance for loan losses | (5,217) | (5,028) | (4,844) | (3,707) |
Commercial [Member] | ||||
Loans held for investment [Abstract] | ||||
Loan held for investment, gross | 69,843 | 83,753 | ||
Allowance for loan losses | (1,162) | (1,210) | (1,133) | (1,241) |
SBA [Member] | ||||
Loans held for investment [Abstract] | ||||
Loan held for investment, gross | 4,429 | 5,557 | ||
Allowance for loan losses | (32) | (79) | (73) | (106) |
HELOC [Member] | ||||
Loans held for investment [Abstract] | ||||
Loan held for investment, gross | 4,531 | 6,756 | ||
Allowance for loan losses | (27) | (90) | (92) | (100) |
Single Family Real Estate [Member] | ||||
Loans held for investment [Abstract] | ||||
Loan held for investment, gross | 11,845 | 11,261 | ||
Allowance for loan losses | (92) | (88) | (98) | (109) |
Consumer [Member] | ||||
Loans held for investment [Abstract] | ||||
Loan held for investment, gross | 94 | 46 | ||
Allowance for loan losses | $ (3) | $ 0 | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Fina
LOANS HELD FOR INVESTMENT, Financing Receivables Past Due (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Aging of loans held for investment [Abstract] | |||
Current | $ 729,005 | $ 710,307 | |
Total past due | 1,947 | 3,763 | |
Nonaccrual | 2,679 | 6,226 | $ 6,844 |
Total loans held for investment | 733,631 | 720,296 | |
Recorded investment over 90 days and accruing | 0 | 0 | |
30 to 59 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 1,701 | 3,273 | |
60 to 89 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 246 | 466 | |
Over 90 Days Past Due | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 24 | |
Manufactured Housing [Member] | |||
Aging of loans held for investment [Abstract] | |||
Current | 256,251 | 246,456 | |
Total past due | 402 | 429 | |
Nonaccrual | 594 | 229 | |
Total loans held for investment | 257,247 | 247,114 | |
Recorded investment over 90 days and accruing | 0 | 0 | |
Manufactured Housing [Member] | 30 to 59 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 156 | 285 | |
Manufactured Housing [Member] | 60 to 89 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 246 | 144 | |
Manufactured Housing [Member] | Over 90 Days Past Due | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 0 | |
Commercial Real Estate [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total loans held for investment | 385,642 | 365,809 | |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | |||
Aging of loans held for investment [Abstract] | |||
Current | 327,255 | 267,377 | |
Total past due | 0 | 2,478 | |
Nonaccrual | 84 | 102 | |
Total loans held for investment | 327,339 | 269,957 | |
Recorded investment over 90 days and accruing | 0 | 0 | |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | 30 to 59 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 2,478 | |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | 60 to 89 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 0 | |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | Over 90 Days Past Due | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 0 | |
Commercial Real Estate [Member] | SBA 504 1st Trust Deed [Member] | |||
Aging of loans held for investment [Abstract] | |||
Current | 17,151 | 20,835 | |
Total past due | 1,401 | 322 | |
Nonaccrual | 0 | 0 | |
Total loans held for investment | 18,552 | 21,157 | |
Recorded investment over 90 days and accruing | 0 | 0 | |
Commercial Real Estate [Member] | SBA 504 1st Trust Deed [Member] | 30 to 59 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 1,401 | 0 | |
Commercial Real Estate [Member] | SBA 504 1st Trust Deed [Member] | 60 to 89 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 322 | |
Commercial Real Estate [Member] | SBA 504 1st Trust Deed [Member] | Over 90 Days Past Due | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 0 | |
Commercial Real Estate [Member] | Land [Member] | |||
Aging of loans held for investment [Abstract] | |||
Current | 4,457 | 6,381 | |
Total past due | 0 | 0 | |
Nonaccrual | 0 | 0 | |
Total loans held for investment | 4,457 | 6,381 | |
Recorded investment over 90 days and accruing | 0 | 0 | |
Commercial Real Estate [Member] | Land [Member] | 30 to 59 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 0 | |
Commercial Real Estate [Member] | Land [Member] | 60 to 89 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 0 | |
Commercial Real Estate [Member] | Land [Member] | Over 90 Days Past Due | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 0 | |
Commercial Real Estate [Member] | Construction [Member] | |||
Aging of loans held for investment [Abstract] | |||
Current | 35,294 | 67,835 | |
Total past due | 0 | 479 | |
Nonaccrual | 0 | 0 | |
Total loans held for investment | 35,294 | 68,314 | |
Recorded investment over 90 days and accruing | 0 | 0 | |
Commercial Real Estate [Member] | Construction [Member] | 30 to 59 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 479 | |
Commercial Real Estate [Member] | Construction [Member] | 60 to 89 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 0 | |
Commercial Real Estate [Member] | Construction [Member] | Over 90 Days Past Due | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 0 | |
Commercial [Member] | |||
Aging of loans held for investment [Abstract] | |||
Current | 68,224 | 78,857 | |
Total past due | 0 | 15 | |
Nonaccrual | 1,619 | 4,881 | |
Total loans held for investment | 69,843 | 83,753 | |
Recorded investment over 90 days and accruing | 0 | 0 | |
Commercial [Member] | 30 to 59 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 15 | |
Commercial [Member] | 60 to 89 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 0 | |
Commercial [Member] | Over 90 Days Past Due | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 0 | |
SBA [Member] | |||
Aging of loans held for investment [Abstract] | |||
Current | 3,935 | 4,741 | |
Total past due | 112 | 0 | |
Nonaccrual | 382 | 816 | |
Total loans held for investment | 4,429 | 5,557 | |
Recorded investment over 90 days and accruing | 0 | 0 | |
SBA [Member] | 30 to 59 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 112 | 0 | |
SBA [Member] | 60 to 89 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 0 | |
SBA [Member] | Over 90 Days Past Due | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 0 | |
HELOC [Member] | |||
Aging of loans held for investment [Abstract] | |||
Current | 4,531 | 6,558 | |
Total past due | 0 | 0 | |
Nonaccrual | 0 | 198 | |
Total loans held for investment | 4,531 | 6,756 | |
Recorded investment over 90 days and accruing | 0 | 0 | |
HELOC [Member] | 30 to 59 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 0 | |
HELOC [Member] | 60 to 89 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 0 | |
HELOC [Member] | Over 90 Days Past Due | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 0 | |
Single Family Real Estate [Member] | |||
Aging of loans held for investment [Abstract] | |||
Current | 11,813 | 11,221 | |
Total past due | 32 | 40 | |
Nonaccrual | 0 | 0 | |
Total loans held for investment | 11,845 | 11,261 | |
Recorded investment over 90 days and accruing | 0 | 0 | |
Single Family Real Estate [Member] | 30 to 59 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 32 | 16 | |
Single Family Real Estate [Member] | 60 to 89 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 0 | |
Single Family Real Estate [Member] | Over 90 Days Past Due | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 24 | |
Consumer [Member] | |||
Aging of loans held for investment [Abstract] | |||
Current | 94 | 46 | |
Total past due | 0 | 0 | |
Nonaccrual | 0 | 0 | |
Total loans held for investment | 94 | 46 | |
Recorded investment over 90 days and accruing | 0 | 0 | |
Consumer [Member] | 30 to 59 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 0 | |
Consumer [Member] | 60 to 89 Days Past Due [Member] | |||
Aging of loans held for investment [Abstract] | |||
Total past due | 0 | 0 | |
Consumer [Member] | Over 90 Days Past Due | |||
Aging of loans held for investment [Abstract] | |||
Total past due | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Allo
LOANS HELD FOR INVESTMENT, Allowance for Credit Losses by Portfolio Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of allowance for loan losses [Roll Forward] | |||||||||||
Beginning balance | $ 8,691 | $ 8,420 | $ 8,691 | $ 8,420 | $ 7,464 | ||||||
Charge-offs | (31) | (133) | (203) | ||||||||
Recoveries | 222 | 390 | 748 | ||||||||
Net (charge-offs) recoveries | 191 | 257 | 545 | ||||||||
Provision (credit) | $ (210) | $ (75) | $ 177 | (57) | $ 238 | $ (197) | $ 117 | (144) | (165) | 14 | 411 |
Ending balance | 8,717 | 8,691 | 8,717 | 8,691 | 8,420 | ||||||
Reserve for credit losses on undisbursed loans | 85 | 73 | 85 | 73 | |||||||
Manufactured Housing [Member] | |||||||||||
Summary of allowance for loan losses [Roll Forward] | |||||||||||
Beginning balance | 2,196 | 2,180 | 2,196 | 2,180 | 2,201 | ||||||
Charge-offs | 0 | (6) | (119) | ||||||||
Recoveries | 54 | 120 | 142 | ||||||||
Net (charge-offs) recoveries | 54 | 114 | 23 | ||||||||
Provision (credit) | (66) | (98) | (44) | ||||||||
Ending balance | 2,184 | 2,196 | 2,184 | 2,196 | 2,180 | ||||||
Commercial Real Estate [Member] | |||||||||||
Summary of allowance for loan losses [Roll Forward] | |||||||||||
Beginning balance | 5,028 | 4,844 | 5,028 | 4,844 | 3,707 | ||||||
Charge-offs | 0 | 0 | 0 | ||||||||
Recoveries | 52 | 15 | 249 | ||||||||
Net (charge-offs) recoveries | 52 | 15 | 249 | ||||||||
Provision (credit) | 137 | 169 | 888 | ||||||||
Ending balance | 5,217 | 5,028 | 5,217 | 5,028 | 4,844 | ||||||
Commercial [Member] | |||||||||||
Summary of allowance for loan losses [Roll Forward] | |||||||||||
Beginning balance | 1,210 | 1,133 | 1,210 | 1,133 | 1,241 | ||||||
Charge-offs | (31) | (127) | 0 | ||||||||
Recoveries | 60 | 66 | 161 | ||||||||
Net (charge-offs) recoveries | 29 | (61) | 161 | ||||||||
Provision (credit) | (77) | 138 | (269) | ||||||||
Ending balance | 1,162 | 1,210 | 1,162 | 1,210 | 1,133 | ||||||
SBA [Member] | |||||||||||
Summary of allowance for loan losses [Roll Forward] | |||||||||||
Beginning balance | 79 | 73 | 79 | 73 | 106 | ||||||
Charge-offs | 0 | 0 | (30) | ||||||||
Recoveries | 50 | 133 | 177 | ||||||||
Net (charge-offs) recoveries | 50 | 133 | 147 | ||||||||
Provision (credit) | (97) | (127) | (180) | ||||||||
Ending balance | 32 | 79 | 32 | 79 | 73 | ||||||
HELOC [Member] | |||||||||||
Summary of allowance for loan losses [Roll Forward] | |||||||||||
Beginning balance | 90 | 92 | 90 | 92 | 100 | ||||||
Charge-offs | 0 | 0 | 0 | ||||||||
Recoveries | 5 | 55 | 18 | ||||||||
Net (charge-offs) recoveries | 5 | 55 | 18 | ||||||||
Provision (credit) | (68) | (57) | (26) | ||||||||
Ending balance | 27 | 90 | 27 | 90 | 92 | ||||||
Single Family Real Estate [Member] | |||||||||||
Summary of allowance for loan losses [Roll Forward] | |||||||||||
Beginning balance | 88 | 98 | 88 | 98 | 109 | ||||||
Charge-offs | 0 | 0 | (54) | ||||||||
Recoveries | 1 | 1 | 1 | ||||||||
Net (charge-offs) recoveries | 1 | 1 | (53) | ||||||||
Provision (credit) | 3 | (11) | 42 | ||||||||
Ending balance | 92 | 88 | 92 | 88 | 98 | ||||||
Consumer [Member] | |||||||||||
Summary of allowance for loan losses [Roll Forward] | |||||||||||
Beginning balance | $ 0 | $ 0 | 0 | 0 | 0 | ||||||
Charge-offs | 0 | 0 | 0 | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Net (charge-offs) recoveries | 0 | 0 | 0 | ||||||||
Provision (credit) | 3 | 0 | 0 | ||||||||
Ending balance | $ 3 | $ 0 | $ 3 | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Impa
LOANS HELD FOR INVESTMENT, Impaired Financing Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Recorded Investment [Abstract] | ||
Impaired loans with an allowance recorded | $ 6,172 | $ 9,744 |
Impaired loans with no allowance recorded | 6,656 | 14,159 |
Total loans individually evaluated for impairment | 12,828 | 23,903 |
Loans collectively evaluated for impairment | 720,803 | 696,393 |
Total loans held for investment | 733,631 | 720,296 |
Unpaid Principal Balance [Abstract] | ||
Impaired loans with an allowance recorded | 6,172 | 9,744 |
Impaired loans with no allowance recorded | 8,268 | 15,982 |
Total loans individually evaluated for impairment | 14,440 | 25,726 |
Loans collectively evaluated for impairment | 720,803 | 696,393 |
Total loans held for investment | 735,243 | 722,119 |
Related Allowance for Loan Losses [Abstract] | ||
Impaired loans with an allowance recorded | 352 | 465 |
Impaired loans with no allowance recorded | 0 | 0 |
Total loans individually evaluated for impairment | 352 | 465 |
Loans collectively evaluated for impairment | 8,365 | 8,226 |
Total loans held for investment | 8,717 | 8,691 |
Impaired loans with a specific valuation allowance under ASC 310 | 6,172 | 9,744 |
Impaired loans without a specific valuation allowance under ASC 310 | 6,656 | 14,159 |
Total impaired loans | 12,828 | 23,903 |
Valuation allowance related to impaired loans | 352 | 465 |
Loans Guaranteed by Government Agencies [Member] | ||
Related Allowance for Loan Losses [Abstract] | ||
Total impaired loans | 600 | 3,100 |
Manufactured Housing [Member] | ||
Recorded Investment [Abstract] | ||
Impaired loans with an allowance recorded | 5,702 | 8,726 |
Impaired loans with no allowance recorded | 2,296 | 3,269 |
Total loans individually evaluated for impairment | 7,998 | 11,995 |
Loans collectively evaluated for impairment | 249,249 | 235,119 |
Total loans held for investment | 257,247 | 247,114 |
Unpaid Principal Balance [Abstract] | ||
Impaired loans with an allowance recorded | 5,702 | 8,726 |
Impaired loans with no allowance recorded | 3,134 | 4,321 |
Total loans individually evaluated for impairment | 8,836 | 13,047 |
Loans collectively evaluated for impairment | 249,249 | 235,119 |
Total loans held for investment | 258,085 | 248,166 |
Related Allowance for Loan Losses [Abstract] | ||
Impaired loans with an allowance recorded | 334 | 432 |
Impaired loans with no allowance recorded | 0 | 0 |
Total loans individually evaluated for impairment | 334 | 432 |
Loans collectively evaluated for impairment | 1,850 | 1,764 |
Total loans held for investment | 2,184 | 2,196 |
Impaired loans with a specific valuation allowance under ASC 310 | 5,702 | 8,726 |
Impaired loans without a specific valuation allowance under ASC 310 | 2,296 | 3,269 |
Total impaired loans | 7,998 | 11,995 |
Valuation allowance related to impaired loans | 334 | 432 |
Commercial Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Impaired loans with an allowance recorded | 0 | 243 |
Impaired loans with no allowance recorded | 318 | 102 |
Total loans individually evaluated for impairment | 318 | 345 |
Loans collectively evaluated for impairment | 385,324 | 365,464 |
Total loans held for investment | 385,642 | 365,809 |
Unpaid Principal Balance [Abstract] | ||
Impaired loans with an allowance recorded | 0 | 243 |
Impaired loans with no allowance recorded | 384 | 160 |
Total loans individually evaluated for impairment | 384 | 403 |
Loans collectively evaluated for impairment | 385,324 | 365,464 |
Total loans held for investment | 385,708 | 365,867 |
Related Allowance for Loan Losses [Abstract] | ||
Impaired loans with an allowance recorded | 0 | 9 |
Impaired loans with no allowance recorded | 0 | 0 |
Total loans individually evaluated for impairment | 0 | 9 |
Loans collectively evaluated for impairment | 5,217 | 5,019 |
Total loans held for investment | 5,217 | 5,028 |
Impaired loans with a specific valuation allowance under ASC 310 | 0 | 243 |
Impaired loans without a specific valuation allowance under ASC 310 | 318 | 102 |
Valuation allowance related to impaired loans | 0 | 9 |
Commercial [Member] | ||
Recorded Investment [Abstract] | ||
Impaired loans with an allowance recorded | 0 | 0 |
Impaired loans with no allowance recorded | 1,802 | 7,811 |
Total loans individually evaluated for impairment | 1,802 | 7,811 |
Loans collectively evaluated for impairment | 68,041 | 75,942 |
Total loans held for investment | 69,843 | 83,753 |
Unpaid Principal Balance [Abstract] | ||
Impaired loans with an allowance recorded | 0 | 0 |
Impaired loans with no allowance recorded | 2,156 | 8,078 |
Total loans individually evaluated for impairment | 2,156 | 8,078 |
Loans collectively evaluated for impairment | 68,041 | 75,942 |
Total loans held for investment | 70,197 | 84,020 |
Related Allowance for Loan Losses [Abstract] | ||
Impaired loans with an allowance recorded | 0 | 0 |
Impaired loans with no allowance recorded | 0 | 0 |
Total loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 1,162 | 1,210 |
Total loans held for investment | 1,162 | 1,210 |
Impaired loans with a specific valuation allowance under ASC 310 | 0 | 0 |
Impaired loans without a specific valuation allowance under ASC 310 | 1,802 | 7,811 |
Total impaired loans | 1,802 | 7,811 |
Valuation allowance related to impaired loans | 0 | 0 |
SBA [Member] | ||
Recorded Investment [Abstract] | ||
Impaired loans with an allowance recorded | 0 | 0 |
Impaired loans with no allowance recorded | 382 | 815 |
Total loans individually evaluated for impairment | 382 | 815 |
Loans collectively evaluated for impairment | 4,047 | 4,742 |
Total loans held for investment | 4,429 | 5,557 |
Unpaid Principal Balance [Abstract] | ||
Impaired loans with an allowance recorded | 0 | 0 |
Impaired loans with no allowance recorded | 736 | 1,211 |
Total loans individually evaluated for impairment | 736 | 1,211 |
Loans collectively evaluated for impairment | 4,047 | 4,742 |
Total loans held for investment | 4,783 | 5,953 |
Related Allowance for Loan Losses [Abstract] | ||
Impaired loans with an allowance recorded | 0 | 0 |
Impaired loans with no allowance recorded | 0 | 0 |
Total loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 32 | 79 |
Total loans held for investment | 32 | 79 |
Impaired loans with a specific valuation allowance under ASC 310 | 0 | 0 |
Impaired loans without a specific valuation allowance under ASC 310 | 382 | 815 |
Total impaired loans | 382 | 815 |
Valuation allowance related to impaired loans | 0 | 0 |
HELOC [Member] | ||
Recorded Investment [Abstract] | ||
Impaired loans with an allowance recorded | 0 | 0 |
Impaired loans with no allowance recorded | 0 | 198 |
Total loans individually evaluated for impairment | 0 | 198 |
Loans collectively evaluated for impairment | 4,531 | 6,558 |
Total loans held for investment | 4,531 | 6,756 |
Unpaid Principal Balance [Abstract] | ||
Impaired loans with an allowance recorded | 0 | 0 |
Impaired loans with no allowance recorded | 0 | 249 |
Total loans individually evaluated for impairment | 0 | 249 |
Loans collectively evaluated for impairment | 4,531 | 6,558 |
Total loans held for investment | 4,531 | 6,807 |
Related Allowance for Loan Losses [Abstract] | ||
Impaired loans with an allowance recorded | 0 | 0 |
Impaired loans with no allowance recorded | 0 | 0 |
Total loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 27 | 90 |
Total loans held for investment | 27 | 90 |
Impaired loans with a specific valuation allowance under ASC 310 | 0 | 0 |
Impaired loans without a specific valuation allowance under ASC 310 | 0 | 198 |
Total impaired loans | 0 | 198 |
Valuation allowance related to impaired loans | 0 | 0 |
Single Family Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Impaired loans with an allowance recorded | 470 | 775 |
Impaired loans with no allowance recorded | 1,858 | 1,964 |
Total loans individually evaluated for impairment | 2,328 | 2,739 |
Loans collectively evaluated for impairment | 9,517 | 8,522 |
Total loans held for investment | 11,845 | 11,261 |
Unpaid Principal Balance [Abstract] | ||
Impaired loans with an allowance recorded | 470 | 775 |
Impaired loans with no allowance recorded | 1,858 | 1,963 |
Total loans individually evaluated for impairment | 2,328 | 2,738 |
Loans collectively evaluated for impairment | 9,517 | 8,522 |
Total loans held for investment | 11,845 | 11,260 |
Related Allowance for Loan Losses [Abstract] | ||
Impaired loans with an allowance recorded | 18 | 24 |
Impaired loans with no allowance recorded | 0 | 0 |
Total loans individually evaluated for impairment | 18 | 24 |
Loans collectively evaluated for impairment | 74 | 64 |
Total loans held for investment | 92 | 88 |
Impaired loans with a specific valuation allowance under ASC 310 | 470 | 775 |
Impaired loans without a specific valuation allowance under ASC 310 | 1,858 | 1,964 |
Total impaired loans | 2,328 | 2,739 |
Valuation allowance related to impaired loans | 18 | 24 |
Consumer [Member] | ||
Recorded Investment [Abstract] | ||
Impaired loans with an allowance recorded | 0 | 0 |
Impaired loans with no allowance recorded | 0 | 0 |
Total loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 94 | 46 |
Total loans held for investment | 94 | 46 |
Unpaid Principal Balance [Abstract] | ||
Impaired loans with an allowance recorded | 0 | 0 |
Impaired loans with no allowance recorded | 0 | 0 |
Total loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 94 | 46 |
Total loans held for investment | 94 | 46 |
Related Allowance for Loan Losses [Abstract] | ||
Impaired loans with an allowance recorded | 0 | 0 |
Impaired loans with no allowance recorded | 0 | 0 |
Total loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 3 | 0 |
Total loans held for investment | 3 | 0 |
Impaired loans with a specific valuation allowance under ASC 310 | 0 | 0 |
Impaired loans without a specific valuation allowance under ASC 310 | 0 | 0 |
Total impaired loans | 0 | 0 |
Valuation allowance related to impaired loans | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Im_2
LOANS HELD FOR INVESTMENT, Impaired Loans by Class of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Impaired financing receivable recorded investment net [Abstract] | ||
Impaired loans | $ 12,828 | $ 23,903 |
Manufactured Housing [Member] | ||
Impaired financing receivable recorded investment net [Abstract] | ||
Impaired loans | 7,998 | 11,995 |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | ||
Impaired financing receivable recorded investment net [Abstract] | ||
Impaired loans | 84 | 102 |
Commercial Real Estate [Member] | SBA 504 1st Trust Deed [Member] | ||
Impaired financing receivable recorded investment net [Abstract] | ||
Impaired loans | 234 | 243 |
Commercial Real Estate [Member] | Land [Member] | ||
Impaired financing receivable recorded investment net [Abstract] | ||
Impaired loans | 0 | 0 |
Commercial Real Estate [Member] | Construction [Member] | ||
Impaired financing receivable recorded investment net [Abstract] | ||
Impaired loans | 0 | 0 |
Commercial [Member] | ||
Impaired financing receivable recorded investment net [Abstract] | ||
Impaired loans | 1,802 | 7,811 |
SBA [Member] | ||
Impaired financing receivable recorded investment net [Abstract] | ||
Impaired loans | 382 | 815 |
HELOC [Member] | ||
Impaired financing receivable recorded investment net [Abstract] | ||
Impaired loans | 0 | 198 |
Single Family Real Estate [Member] | ||
Impaired financing receivable recorded investment net [Abstract] | ||
Impaired loans | 2,328 | 2,739 |
Consumer [Member] | ||
Impaired financing receivable recorded investment net [Abstract] | ||
Impaired loans | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Aver
LOANS HELD FOR INVESTMENT, Average Investment in Impaired Loans by Class (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Average recorded investment and interest income recognized [Abstract] | |||
Average investment in impaired loans | $ 18,504 | $ 20,049 | $ 16,484 |
Interest income | 1,001 | 1,324 | 1,142 |
Manufactured Housing [Member] | |||
Average recorded investment and interest income recognized [Abstract] | |||
Average investment in impaired loans | 9,171 | 8,709 | 7,616 |
Interest income | 640 | 887 | 659 |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | |||
Average recorded investment and interest income recognized [Abstract] | |||
Average investment in impaired loans | 104 | 108 | 121 |
Interest income | 0 | 0 | 1 |
Commercial Real Estate [Member] | SBA 504 1st Trust Deed [Member] | |||
Average recorded investment and interest income recognized [Abstract] | |||
Average investment in impaired loans | 190 | 341 | 502 |
Interest income | 27 | 19 | 19 |
Commercial Real Estate [Member] | Land [Member] | |||
Average recorded investment and interest income recognized [Abstract] | |||
Average investment in impaired loans | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 |
Commercial Real Estate [Member] | Construction [Member] | |||
Average recorded investment and interest income recognized [Abstract] | |||
Average investment in impaired loans | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 |
Commercial [Member] | |||
Average recorded investment and interest income recognized [Abstract] | |||
Average investment in impaired loans | 5,491 | 7,520 | 5,176 |
Interest income | 164 | 245 | 339 |
SBA [Member] | |||
Average recorded investment and interest income recognized [Abstract] | |||
Average investment in impaired loans | 970 | 874 | 797 |
Interest income | 32 | 18 | 21 |
HELOC [Member] | |||
Average recorded investment and interest income recognized [Abstract] | |||
Average investment in impaired loans | 127 | 199 | 259 |
Interest income | 11 | 11 | 0 |
Single Family Real Estate [Member] | |||
Average recorded investment and interest income recognized [Abstract] | |||
Average investment in impaired loans | 2,451 | 2,298 | 2,013 |
Interest income | 127 | 144 | 103 |
Consumer [Member] | |||
Average recorded investment and interest income recognized [Abstract] | |||
Average investment in impaired loans | 0 | 0 | 0 |
Interest income | $ 0 | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Reco
LOANS HELD FOR INVESTMENT, Recorded Investment in Certain Types of Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing receivable recorded investment [Abstract] | |||
Nonaccrual loans | $ 2,679 | $ 6,226 | $ 6,844 |
SBA guaranteed portion of loans included above | 290 | 2,848 | 2,372 |
Troubled debt restructured loans, gross | 10,774 | 16,749 | 16,603 |
Loans 30 through 89 days past due with interest accruing | 1,947 | 0 | 0 |
Interest income recognized on impaired loans | 1,001 | 1,324 | 1,142 |
Foregone interest on nonaccrual and troubled debt restructured loans | $ 512 | $ 454 | $ 379 |
Allowance for loan losses to gross loans held for investment | 1.19% | 1.21% | 1.24% |
Period past due after which accrual of interest is discontinued | 90 days |
LOANS HELD FOR INVESTMENT, Nona
LOANS HELD FOR INVESTMENT, Nonaccrual Loans, Net of SBA Guarantee (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | |||
Nonaccrual loans | $ 2,679 | $ 6,226 | $ 6,844 |
Period past due after which guaranteed portion of SBA loan is repurchased from investors | 120 days | ||
Loans Guaranteed by Government Agencies [Member] | |||
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | |||
Nonaccrual loans | $ 300 | 2,800 | |
Manufactured Housing [Member] | |||
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | |||
Nonaccrual loans | 594 | 229 | |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | |||
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | |||
Nonaccrual loans | 84 | 102 | |
Commercial Real Estate [Member] | SBA 504 1st Trust Deed [Member] | |||
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | |||
Nonaccrual loans | 0 | 0 | |
Commercial Real Estate [Member] | Land [Member] | |||
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | |||
Nonaccrual loans | 0 | 0 | |
Commercial Real Estate [Member] | Construction [Member] | |||
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | |||
Nonaccrual loans | 0 | 0 | |
Commercial [Member] | |||
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | |||
Nonaccrual loans | 1,619 | 4,881 | |
SBA [Member] | |||
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | |||
Nonaccrual loans | 382 | 816 | |
HELOC [Member] | |||
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | |||
Nonaccrual loans | 0 | 198 | |
Single Family Real Estate [Member] | |||
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | |||
Nonaccrual loans | 0 | 0 | |
Consumer [Member] | |||
Composition of Nonaccrual Loans, net of SBA guarantee [Abstract] | |||
Nonaccrual loans | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Cred
LOANS HELD FOR INVESTMENT, Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Gross loans by risk rating [Abstract] | ||
Total loans held for investment, net | $ 731,234 | $ 716,698 |
Total loans held for investment | 733,631 | 720,296 |
Pass [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment, net | 721,534 | 704,122 |
Total loans held for investment | 721,534 | 704,122 |
Special Mention [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment, net | 3,705 | 1,665 |
Total loans held for investment | 5,235 | 1,665 |
Substandard [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment, net | 5,995 | 10,911 |
Total loans held for investment | 6,862 | 14,509 |
Doubtful [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment, net | 0 | 0 |
Total loans held for investment | 0 | 0 |
Government Guarantee [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 2,397 | 3,598 |
Government Guarantee [Member] | Pass [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 0 | 0 |
Government Guarantee [Member] | Special Mention [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 1,530 | 0 |
Government Guarantee [Member] | Substandard [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 867 | 3,598 |
Government Guarantee [Member] | Doubtful [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 0 | 0 |
Manufactured Housing [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 257,247 | 247,114 |
Manufactured Housing [Member] | Pass [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 256,430 | 246,884 |
Manufactured Housing [Member] | Special Mention [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 0 | 0 |
Manufactured Housing [Member] | Substandard [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 817 | 230 |
Manufactured Housing [Member] | Doubtful [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 0 | 0 |
Commercial Real Estate [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 385,642 | 365,809 |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 327,339 | 269,957 |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | Pass [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 323,748 | 269,855 |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | Special Mention [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 3,507 | 0 |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | Substandard [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 84 | 102 |
Commercial Real Estate [Member] | Commercial Real Estate [Member] | Doubtful [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 0 | 0 |
Commercial Real Estate [Member] | SBA 504 1st Trust Deed [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 18,552 | 21,157 |
Commercial Real Estate [Member] | SBA 504 1st Trust Deed [Member] | Pass [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 18,250 | 20,109 |
Commercial Real Estate [Member] | SBA 504 1st Trust Deed [Member] | Special Mention [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 0 | 0 |
Commercial Real Estate [Member] | SBA 504 1st Trust Deed [Member] | Substandard [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 302 | 1,048 |
Commercial Real Estate [Member] | SBA 504 1st Trust Deed [Member] | Doubtful [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 0 | 0 |
Commercial Real Estate [Member] | Land [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 4,457 | 6,381 |
Commercial Real Estate [Member] | Land [Member] | Pass [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 4,457 | 6,381 |
Commercial Real Estate [Member] | Land [Member] | Special Mention [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 0 | 0 |
Commercial Real Estate [Member] | Land [Member] | Substandard [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 0 | 0 |
Commercial Real Estate [Member] | Land [Member] | Doubtful [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 0 | 0 |
Commercial Real Estate [Member] | Construction [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 35,294 | 68,314 |
Commercial Real Estate [Member] | Construction [Member] | Pass [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 33,280 | 66,683 |
Commercial Real Estate [Member] | Construction [Member] | Special Mention [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 0 | 1,631 |
Commercial Real Estate [Member] | Construction [Member] | Substandard [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 2,014 | 0 |
Commercial Real Estate [Member] | Construction [Member] | Doubtful [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 0 | 0 |
Commercial [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 69,843 | 83,753 |
Commercial [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 68,314 | 81,351 |
Commercial [Member] | Pass [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 66,525 | 73,580 |
Commercial [Member] | Special Mention [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 170 | 0 |
Commercial [Member] | Substandard [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 1,619 | 7,771 |
Commercial [Member] | Doubtful [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 0 | 0 |
SBA [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 3,561 | 4,361 |
SBA [Member] | Pass [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 2,379 | 2,770 |
SBA [Member] | Special Mention [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 28 | 34 |
SBA [Member] | Substandard [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 1,154 | 1,557 |
SBA [Member] | Doubtful [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 0 | 0 |
HELOC [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 4,531 | 6,756 |
HELOC [Member] | Pass [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 4,531 | 6,558 |
HELOC [Member] | Special Mention [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 0 | 0 |
HELOC [Member] | Substandard [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 0 | 198 |
HELOC [Member] | Doubtful [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 0 | 0 |
Single Family Real Estate [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 11,845 | 11,261 |
Single Family Real Estate [Member] | Pass [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 11,840 | 11,256 |
Single Family Real Estate [Member] | Special Mention [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 0 | 0 |
Single Family Real Estate [Member] | Substandard [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 5 | 5 |
Single Family Real Estate [Member] | Doubtful [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 0 | 0 |
Consumer [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 94 | 46 |
Consumer [Member] | Pass [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 94 | 46 |
Consumer [Member] | Special Mention [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 0 | 0 |
Consumer [Member] | Substandard [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | 0 | 0 |
Consumer [Member] | Doubtful [Member] | ||
Gross loans by risk rating [Abstract] | ||
Total loans held for investment | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Trou
LOANS HELD FOR INVESTMENT, Troubled Debt Restructuring (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | Dec. 31, 2017USD ($)Loan | |
Troubled Debt Restructured Loans [Abstract] | |||
Number of loans | Loan | 2 | 15 | 16 |
Pre-modification recorded investment | $ 73 | $ 2,827 | $ 4,244 |
Post modification recorded investment | 73 | 2,993 | 4,244 |
Balance of loans | 10,774 | 16,749 | 16,603 |
Effect on allowance for loan losses | $ 2 | $ 66 | 90 |
Average rate concessions | 0.82% | 0.73% | |
Average extension | 147 months | 151 months | |
Rate Reduction [Member] | |||
Troubled Debt Restructured Loans [Abstract] | |||
Balance of loans | $ 73 | $ 1,100 | 894 |
Term Extension [Member] | |||
Troubled Debt Restructured Loans [Abstract] | |||
Balance of loans | $ 25 | $ 2,993 | $ 4,244 |
Manufactured Housing [Member] | |||
Troubled Debt Restructured Loans [Abstract] | |||
Number of loans | Loan | 1 | 12 | 11 |
Pre-modification recorded investment | $ 25 | $ 1,047 | $ 894 |
Post modification recorded investment | 25 | 1,213 | 894 |
Effect on allowance for loan losses | 2 | 66 | 48 |
Manufactured Housing [Member] | Rate Reduction [Member] | |||
Troubled Debt Restructured Loans [Abstract] | |||
Balance of loans | 25 | 1,100 | 894 |
Manufactured Housing [Member] | Term Extension [Member] | |||
Troubled Debt Restructured Loans [Abstract] | |||
Balance of loans | $ 25 | $ 1,213 | $ 894 |
Commercial Real Estate [Member] | |||
Troubled Debt Restructured Loans [Abstract] | |||
Number of loans | Loan | 3 | ||
Pre-modification recorded investment | $ 3,052 | ||
Post modification recorded investment | 3,052 | ||
Effect on allowance for loan losses | 41 | ||
Commercial Real Estate [Member] | Rate Reduction [Member] | |||
Troubled Debt Restructured Loans [Abstract] | |||
Balance of loans | 0 | ||
Commercial Real Estate [Member] | Term Extension [Member] | |||
Troubled Debt Restructured Loans [Abstract] | |||
Balance of loans | $ 3,052 | ||
Commercial [Member] | |||
Troubled Debt Restructured Loans [Abstract] | |||
Number of loans | Loan | 0 | 3 | |
Pre-modification recorded investment | $ 0 | $ 1,780 | |
Post modification recorded investment | 0 | 1,780 | |
Effect on allowance for loan losses | 0 | 0 | |
Commercial [Member] | Rate Reduction [Member] | |||
Troubled Debt Restructured Loans [Abstract] | |||
Balance of loans | 0 | 0 | |
Commercial [Member] | Term Extension [Member] | |||
Troubled Debt Restructured Loans [Abstract] | |||
Balance of loans | $ 0 | $ 1,780 | |
SBA [Member] | |||
Troubled Debt Restructured Loans [Abstract] | |||
Number of loans | Loan | 1 | 0 | 2 |
Pre-modification recorded investment | $ 48 | $ 0 | $ 298 |
Post modification recorded investment | 48 | 0 | 298 |
Effect on allowance for loan losses | 0 | 0 | 1 |
SBA [Member] | Rate Reduction [Member] | |||
Troubled Debt Restructured Loans [Abstract] | |||
Balance of loans | 48 | 0 | 0 |
SBA [Member] | Term Extension [Member] | |||
Troubled Debt Restructured Loans [Abstract] | |||
Balance of loans | $ 0 | $ 0 | $ 298 |
HELOC [Member] | |||
Troubled Debt Restructured Loans [Abstract] | |||
Number of loans | Loan | 0 | 0 | |
Pre-modification recorded investment | $ 0 | $ 0 | |
Post modification recorded investment | 0 | 0 | |
Effect on allowance for loan losses | 0 | 0 | |
HELOC [Member] | Rate Reduction [Member] | |||
Troubled Debt Restructured Loans [Abstract] | |||
Balance of loans | 0 | 0 | |
HELOC [Member] | Term Extension [Member] | |||
Troubled Debt Restructured Loans [Abstract] | |||
Balance of loans | $ 0 | $ 0 | |
Single Family Real Estate [Member] | |||
Troubled Debt Restructured Loans [Abstract] | |||
Number of loans | Loan | 0 | 0 | |
Pre-modification recorded investment | $ 0 | $ 0 | |
Post modification recorded investment | 0 | 0 | |
Effect on allowance for loan losses | 0 | 0 | |
Single Family Real Estate [Member] | Rate Reduction [Member] | |||
Troubled Debt Restructured Loans [Abstract] | |||
Balance of loans | 0 | 0 | |
Single Family Real Estate [Member] | Term Extension [Member] | |||
Troubled Debt Restructured Loans [Abstract] | |||
Balance of loans | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Tr_2
LOANS HELD FOR INVESTMENT, Troubled Debt Restructured Loans With Payment Defaults (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)Nonpayment | Dec. 31, 2018USD ($) | |
LOANS HELD FOR INVESTMENT [Abstract] | ||
Number of consecutive non-payments for a TDR loan to be deemed default | Nonpayment | 2 | |
Trouble debt restructurings with payment defaults | $ | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Rela
LOANS HELD FOR INVESTMENT, Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance, beginning | $ 3,505 | $ 3,505 |
New loans | 0 | 160 |
Repayments and other | (343) | (160) |
Balance, ending | 3,162 | 3,505 |
Loan commitments outstanding with related parties | $ 300 | $ 1,000 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Premises and equipment [Abstract] | |||
Premises and equipment, gross | $ 20,149 | $ 18,063 | |
Accumulated depreciation | (12,494) | (11,682) | |
Premises and equipment, net | 7,655 | 6,381 | |
Minimum lease commitments [Abstract] | |||
2020 | 1,015 | ||
2021 | 884 | ||
2022 | 779 | ||
2023 | 705 | ||
2024 | 713 | ||
Thereafter | 3,291 | ||
Total | 7,387 | ||
Rent expense included in occupancy expense | 1,300 | 1,200 | $ 1,200 |
Depreciation expense included in occupancy expense | 864 | 764 | $ 685 |
Bank Premises and Land [Member] | |||
Premises and equipment [Abstract] | |||
Premises and equipment, gross | 3,959 | 1,355 | |
Furniture, Fixtures and Equipment [Member] | |||
Premises and equipment [Abstract] | |||
Premises and equipment, gross | 11,077 | 10,956 | |
Leasehold Improvements [Member] | |||
Premises and equipment [Abstract] | |||
Premises and equipment, gross | 5,106 | 5,747 | |
Construction in Progress [Member] | |||
Premises and equipment [Abstract] | |||
Premises and equipment, gross | $ 7 | $ 5 |
OTHER ASSETS ACQUIRED THROUGH_3
OTHER ASSETS ACQUIRED THROUGH FORECLOSURE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OTHER ASSETS ACQUIRED THROUGH FORECLOSURE [Abstract] | |||
Balance, beginning of period | $ 0 | $ 372 | $ 137 |
Additions | 3,401 | 174 | 501 |
Proceeds from dispositions | (844) | (484) | (416) |
Gains (losses) on sales, net | (33) | (62) | 150 |
Balance, end of period | $ 2,524 | $ 0 | $ 372 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current [Abstract] | |||||||||||
Federal | $ 2,402 | $ 2,130 | $ 3,722 | ||||||||
State | 1,337 | 1,208 | 1,298 | ||||||||
Current income tax expense (benefit) | 3,739 | 3,338 | 5,020 | ||||||||
Deferred [Abstract] | |||||||||||
Federal | (242) | (421) | 701 | ||||||||
State | (86) | (108) | (173) | ||||||||
Deferred income tax expense (benefit) | (328) | (529) | 528 | ||||||||
Total provision for income taxes | $ 1,179 | $ 902 | $ 673 | $ 657 | $ 570 | $ 695 | $ 758 | $ 786 | $ 3,411 | $ 2,809 | $ 5,548 |
Reconciliation between statutory income tax rate and effective tax rate [Abstract] | |||||||||||
Federal income tax at statutory rate | 21.00% | 21.00% | 34.00% | ||||||||
State franchise tax, net of federal benefit | 8.60% | 8.60% | 7.20% | ||||||||
Other | 0.40% | (2.10%) | (0.40%) | ||||||||
Tax law change | 0.00% | 0.00% | 12.20% | ||||||||
Total provision for income taxes | 30.00% | 27.50% | 53.00% | ||||||||
Deferred Tax Assets [Abstract] | |||||||||||
Allowance for loan losses | 2,663 | 2,619 | $ 2,663 | $ 2,619 | |||||||
Unrealized loss of AFS securities | 14 | 58 | 14 | 58 | |||||||
Other | 2,446 | 2,028 | 2,446 | 2,028 | |||||||
Total gross deferred tax assets | 5,123 | 4,705 | 5,123 | 4,705 | |||||||
Deferred tax asset valuation allowance | 0 | 0 | 0 | 0 | |||||||
Total deferred tax assets | 5,123 | 4,705 | 5,123 | 4,705 | |||||||
Deferred Tax Liabilities [Abstract] | |||||||||||
Deferred state taxes | (266) | (248) | (266) | (248) | |||||||
Depreciation | (653) | (446) | (653) | (446) | |||||||
Unrealized gain on AFS securities | 0 | 0 | 0 | 0 | |||||||
Other | (1,032) | (786) | (1,032) | (786) | |||||||
Total deferred tax liabilities | (1,951) | (1,480) | (1,951) | (1,480) | |||||||
Net deferred tax asset | 3,172 | $ 3,225 | 3,172 | $ 3,225 | |||||||
Income tax expense | $ 1,300 | ||||||||||
Uncertain tax positions | $ 0 | $ 0 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of deposits by type [Abstract] | ||
Non-interest bearing demand deposits | $ 110,843 | $ 108,161 |
Interest-bearing deposits [Abstract] | ||
NOW accounts | 25,523 | 23,085 |
Money market deposit account | 288,755 | 247,346 |
Savings accounts | 15,689 | 14,641 |
Time deposits of $250,000 or more | 96,431 | 93,439 |
Other time deposits | 213,693 | 229,334 |
Total deposits | 750,934 | 716,006 |
Deposit liabilities that may be immediately withdrawn | 440,800 | |
Maturities of time certificates [Abstract] | ||
2020 | 272,257 | |
2021 | 25,028 | |
2022 | 8,375 | |
2023 | 2,647 | |
2024 | 1,817 | |
Thereafter | 0 | |
Total | 310,124 | |
Deposits with CDARS | 28,700 | 35,200 |
Deposits from related parties | $ 27,100 | $ 12,500 |
OTHER BORROWINGS (Details)
OTHER BORROWINGS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 31, 2019 | |
FHLB advances by maturity date [Abstract] | ||||
Amount | $ 65,000 | $ 70,000 | ||
Financial Home Loan Bank Advances [Abstract] | ||||
Letter of credit with FHLB | 114,300 | |||
Securities pledged to FHLB | 25,600 | 32,200 | ||
Loans pledged to FHLB | 324,200 | 269,400 | ||
Available for additional borrowing | 60,500 | 35,900 | ||
Total FHLB interest expense | 1,200 | 1,000 | $ 300 | |
Federal Funds Purchased Lines [Abstract] | ||||
Federal funds borrowing lines at correspondent banks | 20,000 | |||
Federal funds amount outstanding | $ 0 | $ 0 | ||
Weighted Average [Member] | ||||
FHLB advances by maturity date [Abstract] | ||||
Rate | 2.29% | 2.52% | ||
FHLB Advance January 2, 2019 [Member] | ||||
FHLB advances by maturity date [Abstract] | ||||
Amount | $ 0 | $ 25,000 | ||
Rate | 0.00% | 2.56% | ||
Maturity date | Jan. 2, 2019 | |||
FHLB Advance March 21, 2019 [Member] | ||||
FHLB advances by maturity date [Abstract] | ||||
Amount | $ 0 | $ 5,000 | ||
Rate | 0.00% | 2.34% | ||
Maturity date | Mar. 21, 2019 | |||
FHLB Advance April 3, 2019 [Member] | ||||
FHLB advances by maturity date [Abstract] | ||||
Amount | $ 0 | $ 5,000 | ||
Rate | 0.00% | 2.29% | ||
Maturity date | Apr. 3, 2019 | |||
FHLB Advance May 31, 2019 [Member] | ||||
FHLB advances by maturity date [Abstract] | ||||
Amount | $ 0 | $ 5,000 | ||
Rate | 0.00% | 2.41% | ||
Maturity date | May 31, 2019 | |||
FHLB Advance March 30, 2020 [Member] | ||||
FHLB advances by maturity date [Abstract] | ||||
Amount | $ 5,000 | $ 5,000 | ||
Rate | 2.56% | 2.56% | ||
Maturity date | Mar. 30, 2020 | |||
FHLB Advance April 3, 2020 [Member] | ||||
FHLB advances by maturity date [Abstract] | ||||
Amount | $ 15,000 | $ 15,000 | ||
Rate | 2.54% | 2.54% | ||
Maturity date | Apr. 3, 2020 | |||
FHLB Advance April 27, 2020 [Member] | ||||
FHLB advances by maturity date [Abstract] | ||||
Amount | $ 5,000 | $ 0 | ||
Rate | 2.49% | 0.00% | ||
Maturity date | Apr. 27, 2020 | |||
FHLB Advance May 29, 2020 [Member] | ||||
FHLB advances by maturity date [Abstract] | ||||
Amount | $ 5,000 | $ 0 | ||
Rate | 2.35% | 0.00% | ||
Maturity date | May 29, 2020 | |||
FHLB Advance October 2, 2020 [Member] | ||||
FHLB advances by maturity date [Abstract] | ||||
Amount | $ 20,000 | $ 0 | ||
Rate | 1.74% | 0.00% | ||
Maturity date | Oct. 2, 2020 | |||
FHLB Advance April 5, 2021 [Member] | ||||
FHLB advances by maturity date [Abstract] | ||||
Amount | $ 10,000 | $ 10,000 | ||
Rate | 2.65% | 2.65% | ||
Maturity date | Apr. 5, 2021 | |||
FHLB Advance May 10, 2021 [Member] | ||||
FHLB advances by maturity date [Abstract] | ||||
Amount | $ 5,000 | $ 0 | ||
Rate | 2.44% | 0.00% | ||
Maturity date | May 10, 2021 | |||
Federal Reserve Bank Advances [Member] | ||||
Line of Credit [Abstract] | ||||
Outstanding balance | $ 0 | $ 0 | ||
Period for advances to be collateralized | 28 days | |||
Available borrowing capacity | $ 108,600 | 103,800 | ||
Line of Credit [Member] | ||||
Line of Credit [Abstract] | ||||
Maximum borrowing capacity | $ 10,000 | |||
Maturity date | Jul. 30, 2022 | |||
Outstanding balance | $ 0 | 5,000 | ||
Percentage of compensating deposit with the lender | 25.00% | |||
Required compensating deposit | $ 1,200 | |||
Minimum debt service coverage ratio | 1.65 | |||
Minimum Tier 1 leverage ratio | 7.00% | |||
Minimum total risk-based capital ratio | 10.00% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Abstract] | ||
Contractual amounts for unfunded commitments and letters of credit | $ 68,193,000 | $ 57,450,000 |
Unfunded Commitments and Letters of Credit [Abstract] | ||
Loss contingency for unfunded loan commitments and letters of credit | 85,000 | 73,000 |
Loan Sales and Servicing [Abstract] | ||
Outstanding balance of the sold portion loans | $ 76,300,000 | 9,200,000 |
Salary Continuation [Abstract] | ||
Maximum period of monthly cash payment to the officer or beneficiaries in the event of death, disability or retirement | 15 years | |
Insurance policy purchased | $ 5,000,000 | |
Salary continuation liability accrual | 800,000 | 600,000 |
Cash surrender value of life insurance | $ 6,900,000 | $ 6,700,000 |
Manufactured Housing [Member] | ||
Concentrations of Lending Activities [Abstract] | ||
Percentage of loans to total loans | 33.20% | 32.20% |
Commercial Real Estate [Member] | ||
Concentrations of Lending Activities [Abstract] | ||
Percentage of loans to total loans | 49.70% | 47.60% |
Loans secured by first liens, average loan to value ratio | 54.30% | 57.90% |
Commercial Real Estate [Member] | Owner Occupied [Member] | ||
Concentrations of Lending Activities [Abstract] | ||
Percentage of Commercial Real Estate loans | 31.90% | 33.80% |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Abstract] | ||
Contractual amounts for unfunded commitments and letters of credit | $ 67,538,000 | $ 57,450,000 |
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Abstract] | ||
Contractual amounts for unfunded commitments and letters of credit | $ 655,000 | $ 0 |
STOCKHOLDERS' EQUITY, Common St
STOCKHOLDERS' EQUITY, Common Stock Warrants and Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 28, 2019 | |
Common Stock [Abstract] | |||||
Common stock dividend paid | $ 1,821 | $ 1,581 | $ 1,264 | ||
Common Stock Warrant [Member] | |||||
Common Stock Warrant [Abstract] | |||||
Exercise price of warrants (in dollars per shares) | $ 4.49 | ||||
Number of shares issued for warrants exercised ( in shares) | 300,401 | ||||
Term of warrants | 10 years | ||||
Common Stock Warrant [Member] | Maximum [Member] | |||||
Common Stock Warrant [Abstract] | |||||
Number of shares that can be issued against warrants (in shares) | 521,158 | ||||
Common Stock [Member] | |||||
Common Stock [Abstract] | |||||
Common stock dividend paid | $ 1,800 | $ 1,600 | |||
Common Stock [Member] | Stock Repurchase Program [Member] | |||||
Common Stock [Abstract] | |||||
Amount of common stock repurchase program authorized | $ 4,500 | ||||
Common stock shares repurchased to date (in shares) | 350,189 | ||||
Common stock shares repurchased to date, value | $ 3,100 | ||||
Common stock shares repurchased to date, average price (in dollars per share) | $ 8.75 |
STOCKHOLDERS' EQUITY, Stock Opt
STOCKHOLDERS' EQUITY, Stock Option Plans (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Plan$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Unvested stock option expense | $ | $ 600 | $ 700 | $ 700 |
Period for recognition of stock option expense | 3 years | 3 years 2 months 12 days | 3 years 3 months 18 days |
Intrinsic value of options exercised | $ | $ 100 | $ 600 | $ 500 |
Option-pricing model assumptions [Abstract] | |||
Expected life in years | 6 years 2 months 12 days | 6 years 3 months 18 days | 6 years 4 months 24 days |
Risk-free interest rate | 2.41% | 2.85% | 2.04% |
Expected volatility | 27.60% | 34.70% | 44.10% |
Annual dividend rate | 2.00% | 1.64% | 1.49% |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Number of stock option plans | Plan | 1 | ||
Vesting period | 5 years | ||
Contractual life | 10 years | ||
Number of shares available for grant (in shares) | 55,100 | ||
Option Shares [Roll Forward] | |||
Outstanding options, beginning of period (in shares) | 679,000 | 680,000 | 705,000 |
Granted (in shares) | 126,000 | 136,000 | 159,000 |
Exercised (in shares) | (39,000) | (102,000) | (97,000) |
Forfeited or expired (in shares) | (35,000) | (35,000) | (87,000) |
Outstanding options, end of period (in shares) | 731,000 | 679,000 | 680,000 |
Options exercisable, end of period (in shares) | 394,000 | 340,000 | 319,000 |
Options expected to vest, end of period (in shares) | 644,000 | 588,000 | 576,000 |
Weighted Average Exercise Price [Abstract] | |||
Outstanding options, beginning of period (in dollars per share) | $ / shares | $ 8.32 | $ 7.21 | $ 6.41 |
Granted (in dollars per share) | $ / shares | 10.19 | 11.61 | 10.15 |
Exercised (in dollars per share) | $ / shares | 6.92 | 5.39 | 5.05 |
Forfeited or expired (in dollars per share) | $ / shares | 7.81 | 8.16 | 8.57 |
Outstanding options, end of period (in dollars per share) | $ / shares | 8.74 | 8.32 | 7.21 |
Options exercisable, end of period (in dollars per share) | $ / shares | 7.77 | 7.39 | 6.35 |
Options expected to vest, end of period (in dollars per share) | $ / shares | $ 8.52 | $ 8.08 | $ 7.03 |
Weighted Average Remaining Term [Abstract] | |||
Outstanding options | 6 years 10 months 24 days | 7 years 4 months 24 days | 7 years 6 months |
Options exercisable | 5 years 10 months 24 days | 6 years 7 months 6 days | 6 years 7 months 6 days |
Options expected to vest | 6 years 8 months 12 days | 7 years 2 months 12 days | 7 years 3 months 18 days |
Aggregate Intrinsic Value [Abstract] | |||
Outstanding options, end of period | $ | $ 1,805 | $ 1,400 | $ 2,342 |
Options exercisable, end of period | $ | 1,337 | 945 | 1,371 |
Options expected to vest, end of period | $ | $ 1,721 | $ 1,318 | $ 719 |
Number of Option Shares [Roll Forward] | |||
Unvested options, beginning of period (in shares) | 339,000 | ||
Granted (in shares) | 126,000 | 136,000 | 159,000 |
Vested (in shares) | (105,000) | ||
Forfeited (in shares) | (23,000) | ||
Unvested options, end of period (in shares) | 337,000 | 339,000 | |
Weighted Average Grant-Date Fair Value [Roll Forward] | |||
Unvested options, beginning of period (in dollars per share) | $ / shares | $ 3.70 | ||
Granted (in dollars per share) | $ / shares | 2.51 | ||
Vested (in dollars per share) | $ / shares | 3.71 | ||
Forfeited (in dollars per share) | $ / shares | 3.14 | ||
Unvested options, end of period (in dollars per share) | $ / shares | $ 3.29 | $ 3.70 |
CAPITAL REQUIREMENTS (Details)
CAPITAL REQUIREMENTS (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Regulatory Ratios [Abstract] | ||
Total capital ratio, minimum capital ratios | 8.00% | 8.00% |
Total capital ratio, well-capitalized ratios | 10.00% | 10.00% |
Total capital ratio, minimum capital requirements including fully-phased in capital conservation buffer (2019) | 10.50% | 10.50% |
Tier 1 risk-based capital ratio, minimum capital ratios | 6.00% | 6.00% |
Tier 1 risk-based capital ratio, well-capitalized ratios | 8.00% | 8.00% |
Tier 1 risk-based capital ratio, minimum capital requirements including fully-phased in capital conservation buffer (2019) | 8.50% | 8.50% |
Common Equity Tier 1 ratio, minimum capital ratios | 4.50% | 4.50% |
Common Equity Tier 1 ratio, well-capitalized ratios | 6.50% | 6.50% |
Common Equity Tier 1 ratio, minimum capital requirements including fully-phased in capital conservation buffer (2019) | 7.00% | 7.00% |
Tier 1 leverage ratio, minimum capital ratios | 4.00% | 4.00% |
Tier 1 leverage ratio, well-capitalized ratios | 5.00% | |
CWB [Member] | ||
Regulatory Ratios [Abstract] | ||
Total capital ratio | 11.41% | 10.83% |
Tier 1 risk-based capital ratio | 10.28% | 9.68% |
Common Equity Tier 1 ratio | 10.28% | 9.68% |
Tier 1 leverage ratio | 9.06% | 8.57% |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Noninterest Income [Abstract] | |||||||||||
Non-interest income (in-scope of Topic 606) | $ 666 | $ 555 | |||||||||
Non-interest income (out-of-scope of Topic 606) | 2,941 | 2,073 | |||||||||
Total non-interest income | $ 1,664 | $ 647 | $ 692 | $ 604 | $ 660 | $ 641 | $ 688 | $ 639 | 3,607 | 2,628 | 2,757 |
Service Charges on Deposit Accounts [Member] | |||||||||||
Noninterest Income [Abstract] | |||||||||||
Non-interest income (in-scope of Topic 606) | 507 | 369 | |||||||||
Exchange Fees and Other Service Charges [Member] | |||||||||||
Noninterest Income [Abstract] | |||||||||||
Non-interest income (in-scope of Topic 606) | $ 159 | $ 186 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating leases [Abstract] | ||
Operating lease, right-of-use assets | $ 6,300 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | |
Lease cost [Abstract] | ||
Operating lease cost | $ 1,137 | $ 0 |
Sublease income | 0 | 0 |
Total lease cost | 1,137 | 0 |
Other information [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | 0 | 0 |
Operating cash flows from operating leases | $ 1,117 | $ 0 |
Weighted average remaining lease term in years - operating leases | 9 years 7 months 13 days | 0 years |
Weighted average discount rate - operating leases | 3.23% | 0.00% |
Future minimum operating lease payments [Abstract] | ||
2020 | $ 1,015 | $ 0 |
2021 | 884 | 0 |
2022 | 779 | 0 |
2023 | 705 | 0 |
2024 | 713 | 0 |
Thereafter | 3,291 | 0 |
Total future minimum lease payments | 7,387 | 0 |
Less remaining imputed interest | 1,071 | 0 |
Total lease liabilities | $ 6,316 | $ 0 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities |
Minimum [Member] | ||
Operating leases [Abstract] | ||
Term of operating leases | 2 years | |
Maximum [Member] | ||
Operating leases [Abstract] | ||
Term of operating leases | 10 years |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |||
Defined Contribution Plan, Tax Status [Extensible List] | us-gaap:QualifiedPlanMember | ||
Defined Contribution Plan, Type [Extensible List] | us-gaap:PensionPlansDefinedBenefitMember | ||
Maximum amount of annual contribution per participant under age 50 | $ 19,000 | ||
Percentage of maximum matching contribution by employer | 3.00% | ||
Employer contribution | $ 300,000 | $ 300,000 | $ 300,000 |
Executive Officers [Member] | Deferred Compensation Plans [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Abstract] | |||
Age of vesting | 65 years | ||
Expenses incurred | $ 100,000 | 100,000 | $ 100,000 |
Deferred compensation liability | $ 1,300,000 | $ 1,100,000 | |
Select Group of Management or Highly Compensated Employees [Member] | Unfunded Nonqualified Deferred Compensation Arrangement [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Abstract] | |||
Maximum percentage of deferred base salary and bonus | 30.00% | ||
Period of certificate of deposit rate paid on vested balance | 36 months |
FAIR VALUE MEASUREMENT, Fair Va
FAIR VALUE MEASUREMENT, Fair Value of Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets [Abstract] | ||
Investment securities - measured at fair value | $ 167 | $ 121 |
Recurring [Member] | ||
Assets [Abstract] | ||
Investment securities - measured at fair value | 167 | 121 |
Investment securities available-for-sale | 19,264 | 24,931 |
Interest only strips | 41 | 63 |
Servicing assets | 846 | 101 |
Total | 20,318 | 25,216 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Investment securities - measured at fair value | 167 | 121 |
Investment securities available-for-sale | 0 | 0 |
Interest only strips | 0 | 0 |
Servicing assets | 0 | 0 |
Total | 167 | 121 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Investment securities - measured at fair value | 0 | 0 |
Investment securities available-for-sale | 19,264 | 24,931 |
Interest only strips | 0 | 0 |
Servicing assets | 0 | 0 |
Total | 19,264 | 24,931 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Investment securities - measured at fair value | 0 | 0 |
Investment securities available-for-sale | 0 | 0 |
Interest only strips | 41 | 63 |
Servicing assets | 846 | 101 |
Total | $ 887 | $ 164 |
FAIR VALUE MEASUREMENT, Assets
FAIR VALUE MEASUREMENT, Assets Measured on Non-recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of fair value measurements of assets measured on a non-recurring basis [Abstract] | ||
Loans held-for-sale at carrying value | $ 42,046 | $ 48,355 |
Non-recurring [Member] | ||
Summary of fair value measurements of assets measured on a non-recurring basis [Abstract] | ||
Impaired loans | 2,334 | 5,592 |
Loans held for sale | 42,900 | 49,050 |
Foreclosed real estate and repossessed assets | 2,524 | 0 |
Total | 47,758 | 54,642 |
Non-recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Summary of fair value measurements of assets measured on a non-recurring basis [Abstract] | ||
Impaired loans | 0 | 0 |
Loans held for sale | 0 | 0 |
Foreclosed real estate and repossessed assets | 0 | 0 |
Total | 0 | 0 |
Non-recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Summary of fair value measurements of assets measured on a non-recurring basis [Abstract] | ||
Impaired loans | 2,334 | 5,592 |
Loans held for sale | 42,900 | 49,050 |
Foreclosed real estate and repossessed assets | 2,524 | 0 |
Total | 47,758 | 54,642 |
Non-recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Summary of fair value measurements of assets measured on a non-recurring basis [Abstract] | ||
Impaired loans | 0 | 0 |
Loans held for sale | 0 | 0 |
Foreclosed real estate and repossessed assets | 0 | 0 |
Total | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT, Fair _2
FAIR VALUE MEASUREMENT, Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | $ 82,661 | $ 56,915 |
FRB and FHLB stock | 4,087 | 4,087 |
Investment securities | 25,563 | 32,353 |
Loans, net | 766,846 | 759,552 |
Financial liabilities [Abstract] | ||
Deposits | 750,934 | 716,006 |
Other borrowings | 65,000 | 75,000 |
Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 82,661 | 56,915 |
FRB and FHLB stock | 4,087 | 4,087 |
Investment securities | 25,566 | 32,200 |
Loans, net | 762,194 | 753,223 |
Financial liabilities [Abstract] | ||
Deposits | 751,398 | 712,900 |
Other borrowings | 65,236 | 74,930 |
Fair Value [Member] | Level 1 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 82,661 | 56,915 |
FRB and FHLB stock | 0 | 0 |
Investment securities | 167 | 121 |
Loans, net | 0 | 0 |
Financial liabilities [Abstract] | ||
Deposits | 0 | 0 |
Other borrowings | 0 | 0 |
Fair Value [Member] | Level 2 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
FRB and FHLB stock | 4,087 | 4,087 |
Investment securities | 25,399 | 32,079 |
Loans, net | 752,287 | 735,377 |
Financial liabilities [Abstract] | ||
Deposits | 751,398 | 712,900 |
Other borrowings | 65,236 | 74,930 |
Fair Value [Member] | Level 3 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
FRB and FHLB stock | 0 | 0 |
Investment securities | 0 | 0 |
Loans, net | 9,907 | 17,846 |
Financial liabilities [Abstract] | ||
Deposits | 0 | 0 |
Other borrowings | $ 0 | $ 0 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in other comprehensive income (loss) by component, net of tax [Roll Forward] | |||
Balance | $ 76,151 | $ 70,070 | $ 65,336 |
Net current-period other comprehensive income | 63 | (107) | 54 |
Balance | 81,978 | 76,151 | 70,070 |
Unrealized Holding Gains (Losses) on AFS [Member] | |||
Changes in other comprehensive income (loss) by component, net of tax [Roll Forward] | |||
Balance | (141) | 25 | (29) |
Other comprehensive income (loss) before reclassifications | 63 | (107) | 54 |
Amounts reclassified from accumulated other comprehensive income | 0 | (59) | 0 |
Net current-period other comprehensive income | 63 | (166) | 54 |
Balance | $ (78) | $ (141) | $ 25 |
PARENT COMPANY FINANCIAL INFO_3
PARENT COMPANY FINANCIAL INFORMATION, Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets [Abstract] | ||||
Cash and cash equivalents (including interest-bearing deposits in other financial institutions) | $ 82,661 | $ 56,915 | ||
Total loans | 766,846 | 759,552 | ||
Other assets | 24,534 | 18,003 | ||
Total assets | 913,870 | 877,291 | ||
Liabilities and Stockholders' Equity [Abstract] | ||||
Other borrowings | 65,000 | 75,000 | ||
Other liabilities | 15,958 | 10,134 | ||
Total liabilities | 831,892 | 801,140 | ||
Total stockholders' equity | 81,978 | 76,151 | $ 70,070 | $ 65,336 |
Total liabilities and stockholders' equity | 913,870 | 877,291 | ||
Parent Company [Member] | ||||
Assets [Abstract] | ||||
Cash and cash equivalents (including interest-bearing deposits in other financial institutions) | 972 | 299 | ||
Investment in subsidiary | 81,171 | 72,429 | ||
Total loans | 0 | 8,355 | ||
Other assets | 168 | 240 | ||
Total assets | 82,311 | 81,323 | ||
Liabilities and Stockholders' Equity [Abstract] | ||||
Other borrowings | 0 | 5,000 | ||
Other liabilities | 333 | 172 | ||
Total liabilities | 333 | 5,172 | ||
Total stockholders' equity | 81,978 | 76,151 | ||
Total liabilities and stockholders' equity | $ 82,311 | $ 81,323 |
PARENT COMPANY FINANCIAL INFO_4
PARENT COMPANY FINANCIAL INFORMATION, Condensed Income Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Income Statements [Abstract] | |||||||||||
Interest income | $ 11,628 | $ 11,719 | $ 11,367 | $ 11,025 | $ 11,041 | $ 11,201 | $ 10,401 | $ 9,988 | $ 45,739 | $ 42,631 | $ 37,391 |
Interest expense | 2,790 | 2,921 | 2,869 | 2,802 | 2,687 | 2,573 | 2,090 | 1,638 | 11,382 | 8,988 | 4,729 |
Net interest income | 8,838 | 8,798 | 8,498 | 8,223 | 8,354 | 8,628 | 8,311 | 8,350 | 34,357 | 33,643 | 32,662 |
Provision for loan losses | (210) | (75) | 177 | (57) | 238 | (197) | 117 | (144) | (165) | 14 | 411 |
Net interest income after provision for loan losses | 9,048 | 8,873 | 8,321 | 8,280 | 8,116 | 8,825 | 8,194 | 8,494 | 34,522 | 33,629 | 32,251 |
Total non-interest expenses | 6,814 | 6,464 | 6,760 | 6,717 | 6,847 | 6,402 | 6,257 | 6,533 | 26,755 | 26,039 | 24,545 |
Income before provision for income taxes | 3,898 | 3,056 | 2,253 | 2,167 | 1,929 | 3,064 | 2,625 | 2,600 | 11,374 | 10,218 | 10,463 |
Income tax benefit | 1,179 | 902 | 673 | 657 | 570 | 695 | 758 | 786 | 3,411 | 2,809 | 5,548 |
Net income | $ 2,719 | $ 2,154 | $ 1,580 | $ 1,510 | $ 1,359 | $ 2,369 | $ 1,867 | $ 1,814 | 7,963 | 7,409 | 4,915 |
Parent Company [Member] | |||||||||||
Condensed Income Statements [Abstract] | |||||||||||
Interest income | 227 | 264 | 60 | ||||||||
Interest expense | 111 | 329 | 196 | ||||||||
Net interest income | 116 | (65) | (136) | ||||||||
Provision for loan losses | (145) | 60 | 0 | ||||||||
Net interest income after provision for loan losses | 261 | (125) | (136) | ||||||||
Income from consolidated subsidiary | 8,145 | 7,844 | 5,441 | ||||||||
Total income | 8,406 | 7,719 | 5,305 | ||||||||
Total non-interest expenses | 405 | 516 | 669 | ||||||||
Income before provision for income taxes | 8,001 | 7,203 | 4,636 | ||||||||
Income tax benefit | 38 | (206) | (279) | ||||||||
Net income | $ 7,963 | $ 7,409 | $ 4,915 |
PARENT COMPANY FINANCIAL INFO_5
PARENT COMPANY FINANCIAL INFORMATION, Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities [Abstract] | |||||||||||
Net income | $ 2,719 | $ 2,154 | $ 1,580 | $ 1,510 | $ 1,359 | $ 2,369 | $ 1,867 | $ 1,814 | $ 7,963 | $ 7,409 | $ 4,915 |
Adjustments to reconcile net income to cash provided by operating activities [Abstract] | |||||||||||
Stock-based compensation | 382 | 478 | 537 | ||||||||
Changes in [Abstract] | |||||||||||
Other assets | 1,641 | (2,210) | (1,882) | ||||||||
Other liabilities | (1,366) | 3,416 | 2,719 | ||||||||
Net cash provided by operating activities | 13,937 | 16,321 | 14,243 | ||||||||
Cash Flows from Investing Activities [Abstract] | |||||||||||
Loan originations and principal collections, net | (16,074) | (40,290) | (110,069) | ||||||||
Net cash used in investing activities | (10,538) | (38,055) | (117,009) | ||||||||
Cash Flows from Financing Activities [Abstract] | |||||||||||
Common stock dividends paid | 1,821 | 1,581 | 1,264 | ||||||||
Common stock repurchase | (1,030) | (669) | 0 | ||||||||
Net cash provided by financing activities | 22,347 | 32,780 | 114,519 | ||||||||
Net increase (decrease) in cash and cash equivalents | 25,746 | 11,046 | 11,753 | ||||||||
Cash and cash equivalents at beginning of year | 56,915 | 45,869 | 56,915 | 45,869 | 34,116 | ||||||
Cash and cash equivalents at end of year | 82,661 | 56,915 | 82,661 | 56,915 | 45,869 | ||||||
Parent Company [Member] | |||||||||||
Cash Flows from Operating Activities [Abstract] | |||||||||||
Net income | 7,963 | 7,409 | 4,915 | ||||||||
Adjustments to reconcile net income to cash provided by operating activities [Abstract] | |||||||||||
Equity in undistributed income from subsidiary | (8,145) | (7,844) | (5,441) | ||||||||
Stock-based compensation | 382 | 478 | 537 | ||||||||
Changes in [Abstract] | |||||||||||
Other assets | 72 | (50) | 129 | ||||||||
Other liabilities | 161 | 157 | (99) | ||||||||
Net cash provided by operating activities | 433 | 150 | 41 | ||||||||
Cash Flows from Investing Activities [Abstract] | |||||||||||
Loan originations and principal collections, net | 8,355 | (3,440) | (4,915) | ||||||||
Net dividends from and investment in subsidiary | (534) | 6,158 | 3,201 | ||||||||
Net cash used in investing activities | 7,821 | 2,718 | (1,714) | ||||||||
Cash Flows from Financing Activities [Abstract] | |||||||||||
Net increase (decrease) from other borrowings | (5,000) | (1,843) | 2,843 | ||||||||
Common stock dividends paid | (1,821) | (1,581) | (1,264) | ||||||||
Common stock repurchase | (1,030) | (669) | 0 | ||||||||
Proceeds from issuance of common stock | 270 | 551 | 492 | ||||||||
Net cash provided by financing activities | (7,581) | (3,542) | 2,071 | ||||||||
Net increase (decrease) in cash and cash equivalents | 673 | (674) | 398 | ||||||||
Cash and cash equivalents at beginning of year | $ 299 | $ 973 | 299 | 973 | 575 | ||||||
Cash and cash equivalents at end of year | $ 972 | $ 299 | $ 972 | $ 299 | $ 973 |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Results of Operations [Abstract] | |||||||||||
Interest income | $ 11,628 | $ 11,719 | $ 11,367 | $ 11,025 | $ 11,041 | $ 11,201 | $ 10,401 | $ 9,988 | $ 45,739 | $ 42,631 | $ 37,391 |
Interest expense | 2,790 | 2,921 | 2,869 | 2,802 | 2,687 | 2,573 | 2,090 | 1,638 | 11,382 | 8,988 | 4,729 |
Net interest income | 8,838 | 8,798 | 8,498 | 8,223 | 8,354 | 8,628 | 8,311 | 8,350 | 34,357 | 33,643 | 32,662 |
Provision (credit) for loan losses | (210) | (75) | 177 | (57) | 238 | (197) | 117 | (144) | (165) | 14 | 411 |
Net interest income after provision for loan losses | 9,048 | 8,873 | 8,321 | 8,280 | 8,116 | 8,825 | 8,194 | 8,494 | 34,522 | 33,629 | 32,251 |
Non-interest income | 1,664 | 647 | 692 | 604 | 660 | 641 | 688 | 639 | 3,607 | 2,628 | 2,757 |
Non-interest expenses | 6,814 | 6,464 | 6,760 | 6,717 | 6,847 | 6,402 | 6,257 | 6,533 | 26,755 | 26,039 | 24,545 |
Income before provision for income taxes | 3,898 | 3,056 | 2,253 | 2,167 | 1,929 | 3,064 | 2,625 | 2,600 | 11,374 | 10,218 | 10,463 |
Provision for income taxes | 1,179 | 902 | 673 | 657 | 570 | 695 | 758 | 786 | 3,411 | 2,809 | 5,548 |
Net income | $ 2,719 | $ 2,154 | $ 1,580 | $ 1,510 | $ 1,359 | $ 2,369 | $ 1,867 | $ 1,814 | $ 7,963 | $ 7,409 | $ 4,915 |
Earnings per share [Abstract] | |||||||||||
Income per common share - basic (in dollars per share) | $ 0.32 | $ 0.25 | $ 0.19 | $ 0.18 | $ 0.16 | $ 0.29 | $ 0.23 | $ 0.22 | $ 0.94 | $ 0.89 | $ 0.60 |
Income per common share - diluted (in dollars per share) | $ 0.32 | $ 0.25 | $ 0.18 | $ 0.18 | $ 0.16 | $ 0.27 | $ 0.21 | $ 0.21 | $ 0.93 | $ 0.88 | $ 0.57 |