Heritage Commerce (HTBK) 10-Q 5 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 25, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	HERITAGE COMMERCE CORP
Entity Central Index Key	1,053,352
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		38,012,326
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets
Cash and due from banks	$ 31,724	$ 27,993
Other investments and interest-bearing deposits in other financial institutions	256,122	238,110
Total cash and cash equivalents	287,846	266,103
Securities available-for-sale, at fair value	341,590	306,589
Securities held-to-maturity, at amortized cost (fair value of $336,790 at March 31, 2017 and $318,748 at December 31, 2016)	341,383	324,010
Loans held-for-sale - SBA, at lower of cost or fair value, including deferred costs	3,911	5,705
Loans, net of deferred fees	1,513,287	1,502,607
Allowance for loan losses	(19,135)	(19,089)
Loans, net	1,494,152	1,483,518
Federal Home Loan Bank and Federal Reserve Bank stock and other investments, at cost	15,203	15,196
Company-owned life insurance	59,570	59,148
Premises and equipment, net	7,512	7,490
Goodwill	45,664	45,664
Other intangible assets	6,605	6,950
Accrued interest receivable and other assets	38,355	50,507
Total assets	2,641,791	2,570,880
Deposits:
Demand, noninterest-bearing	917,037	917,187
Demand, interest-bearing	575,637	541,282
Savings and money market	606,116	572,743
Time deposits-under $250	56,988	57,857
Time deposits-$250 and over	164,824	163,670
CDARS - interest-bearing demand, money market and time deposits	9,485	9,401
Total deposits	2,330,087	2,262,140
Accrued interest payable and other liabilities	47,800	48,890
Total liabilities	2,377,887	2,311,030
Shareholders' equity:
Common stock, no par value; 60,000,000 shares authorized; 37,995,085 shares issued and outstanding at March 31, 2017 and 37,941,007 shares issued and outstanding at December 31, 2016	216,039	215,237
Retained earnings	55,270	52,527
Accumulated other comprehensive loss	(7,405)	(7,914)
Total shareholders' equity	263,904	259,850
Total liabilities and shareholders' equity	$ 2,641,791	$ 2,570,880

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Securities held-to-maturity
Securities held-to-maturity, fair value (in dollars)	$ 336,790	$ 318,748
Common stock
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	37,995,085	37,941,007
Common stock, shares outstanding	37,995,085	37,941,007

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Interest income:
Loans, including fees	$ 20,398	$ 19,188
Securities, taxable	2,877	2,774
Securities, exempt from Federal tax	566	579
Other investments and interest-bearing deposits in other financial institutions	856	521
Total interest income	24,697	23,062
Interest expense:
Deposits	871	747
Short-term borrowings		11
Total interest expense	871	758
Net interest income before provision for loan losses	23,826	22,304
Provision (credit) for loan losses	321	401
Net interest income after provision for loan losses	23,505	21,903
Noninterest income:
Service charges and fees on deposit accounts	740	767
Increase in cash surrender value of life insurance	422	449
Gain on sales of SBA loans	324	305
Servicing income	285	371
(Loss) gain on sales of securities	(6)	180
Other	530	542
Total noninterest income	2,295	2,614
Noninterest expense:
Salaries and employee benefits	9,486	8,947
Professional fees	1,071	825
Occupancy and equipment	1,068	1,085
Other	3,703	3,828
Total noninterest expense	15,328	14,685
Income before income taxes	10,472	9,832
Income tax expense	3,934	3,726
Net income	6,538	6,106
Dividends on preferred stock		(504)
Net income available to common shareholders	6,538	5,602
Undistributed earnings allocated to Series C preferred stock		(403)
Distributed and undistributed earnings allocated to common shareholders	$ 6,538	$ 5,199
Earnings per common share:
Basic (in dollars per share)	$ 0.17	$ 0.16
Diluted (in dollars per share)	$ 0.17	$ 0.16

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 6,538	$ 6,106
Other comprehensive income:
Change in net unrealized holding gains (loss) on available-for-sale securities and I/O strips	845	4,839
Deferred income taxes	(355)	(2,032)
Change in net unamortized unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity	(13)	(14)
Deferred income taxes	5	6
Reclassification adjustment for losses (gains) realized in income	6	(180)
Deferred income taxes	(2)	75
Change in unrealized gains (losses) on securities and I/O strips, net of deferred income taxes	486	2,694
Change in net pension and other benefit plan liability adjustment	39	48
Deferred income taxes	(16)	(20)
Change in pension and other benefit plan liability, net of deferred income taxes	23	28
Other comprehensive income	509	2,722
Total comprehensive income	$ 7,047	$ 8,828

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Preferred Stock	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income / (Loss)	Total
Balance at Dec. 31, 2015	$ 19,519	$ 193,364	$ 38,773	$ (6,220)	$ 245,436
Balance (in shares) at Dec. 31, 2015	21,004	32,113,479
Increase (Decrease) in Shareholders' Equity
Net income			6,106		6,106
Other comprehensive income				2,722	2,722
Amortization of restricted stock awards, net of forfeitures and taxes		$ 186			186
Cash dividend declared			(3,394)		(3,394)
Stock option expense, net of forfeitures and taxes		245			245
Stock options exercised		$ 358			358
Stock options exercised (in shares)		57,441
Balance at Mar. 31, 2016	$ 19,519	$ 194,153	41,485	(3,498)	251,659
Balance (in shares) at Mar. 31, 2016	21,004	32,170,920
Balance at Dec. 31, 2016		$ 215,237	52,527	(7,914)	259,850
Balance (in shares) at Dec. 31, 2016		37,941,007
Increase (Decrease) in Shareholders' Equity
Net income			6,538		6,538
Other comprehensive income				509	509
Issuance of restricted stock awards, net (in shares)		1,492
Amortization of restricted stock awards, net of forfeitures and taxes		$ 221			221
Cash dividend declared			(3,795)		(3,795)
Stock option expense, net of forfeitures and taxes		216			216
Stock options exercised		$ 365			365
Stock options exercised (in shares)		52,586
Balance at Mar. 31, 2017		$ 216,039	$ 55,270	$ (7,405)	$ 263,904
Balance (in shares) at Mar. 31, 2017		37,995,085

CONSOLIDATED STATEMENTS OF CHA7

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
Cash dividend declared per share (in dollars per share)	$ 0.10	$ 0.09

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 6,538	$ 6,106
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of discounts and premiums on securities	1,066	667
(Gain) loss on sale of securities available-for-sale	6	(180)
Gain loss on sale of SBA loans	(324)	(305)
Proceeds from sale of SBA loans originated for sale	4,103	4,927
Net change in SBA loans originated for sale	(3,861)	(2,505)
Provision (credit) for loan losses	321	401
Increase in cash surrender value of life insurance	(422)	(449)
Depreciation and amortization	190	169
Amortization of intangible assets	345	392
Stock option expense, net	216	245
Amortization of restricted stock awards, net	221	186
Effect of changes in:
Accrued interest receivable and other assets	5,057	1,700
Accrued interest payable and other liabilities	(1,052)	(3,387)
Net cash provided by operating activities	12,404	7,967
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of securities available-for-sale	(47,296)	(75,803)
Purchase of securities held-to-maturity	(27,736)	(78,680)
Maturities/paydowns/calls of securities available-for-sale	12,740	11,075
Maturities/paydowns/calls of securities held-to-maturity	9,876	2,665
Proceeds from sales of securities available-for-sale	6,536	5,598
Net change in loans	(9,079)	(33,675)
Changes in Federal Home Loan Bank stock and other investments	(7)	(8)
Purchase of premises and equipment	(212)	(21)
Net cash used in investing activities	(55,178)	(168,849)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits	67,947	(34,039)
Exercise of stock options	365	358
Repayment of short-term borrowings		(3,000)
Payment of cash dividends	(3,795)	(3,394)
Net cash provided by financing activities	64,517	(40,075)
Net (decrease) increase in cash and cash equivalents	21,743	(200,957)
Cash and cash equivalents, beginning of year	266,103	344,092
Cash and cash equivalents, end of year	287,846	143,135
Supplemental disclosures of cash flow information:
Interest paid	891	741
Income taxes paid	3	1,375
Supplemental schedule of non-cash investing activity:
Transfer of loans held-for-sale to loan portfolio	$ 1,876	2,791
Loans transferred to foreclosed assets		$ 49

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Basis of Presentation
Basis of Presentation	1) Basis of Presentation The unaudited consolidated financial statements of Heritage Commerce Corp (the “Company” or “HCC”) and its wholly owned subsidiary, Heritage Bank of Commerce (“HBC”), have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements are not included herein. The interim statements should be read in conjunction with the consolidated financial statements and notes that were included in the Company’s Form 10-K for the year ended December 31, 2016. The Company acquired Focus Business Bank (“Focus”) on August 20, 2015. Focus was merged with HBC, with HBC as the surviving bank. HBC is a commercial bank serving customers primarily located in Santa Clara, Alameda, Contra Costa, and San Benito counties of California. BVF/CSNK Acquisition Corp., a Delaware corporation (“BVF/CSNK”), the parent company of CSNK Working Capital Finance Corp. dba Bay View Funding (“Bay View Funding”) is a wholly owned subsidiary of HBC, and provides business-essential working capital factoring financing to various industries throughout the United States. No customer accounts for more than 10 percent of revenue for HBC or the Company. The Company reports its results for two segments: banking and factoring. The Company’s management uses segment results in its operating and strategic planning. In management’s opinion, all adjustments necessary for a fair presentation of these consolidated financial statements have been included and are of a normal and recurring nature. All intercompany transactions and balances have been eliminated. 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 disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from these estimates. The results for the three months ended March 31, 2017 are not necessarily indicative of the results expected for any subsequent period or for the entire year ending December 31, 2017. Reclassifications Certain reclassifications of prior year balances have been made to conform to the current year presentation. These reclassifications had no impact on the Company’s consolidated financial position, results of operations or net change in cash and cash equivalents. Adoption of New Accounting Standards In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation—Stock Compensation: Improvements to Employee Share Based Payment Accounting. The standard is intended to simplify several areas of accounting for share based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. All excess tax benefits and tax deficiencies (including tax benefits of dividends on share based payment awards) should be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. An entity can make an entity wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. The threshold to qualify for equity classification permits withholding up to the maximum statutory tax rates in the applicable jurisdictions. Cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity. A nonpublic entity can make an accounting policy election to apply a practical expedient to estimate the expected term for all awards with performance or service conditions that meet certain conditions. A nonpublic entity can make a one time accounting policy election to switch from measuring all liability classified awards at fair value to intrinsic value. The Company adopted the new guidance on January 1, 2017. The amount of the impact on the effective tax rate will be determined by the number of stock options exercised and the stock price of the Company when the stock options are exercised, and the amount of restricted stock awards vesting. The adoption of this guidance resulted in a reduction to income tax expense of $112,000 for the first quarter of 2017. In connection with the adoption, the Company has elected to estimate forfeitures each reporting period. Newly Issued, but not yet Effective Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which was an update to the guidance for accounting for revenue from contracts with customers. The guidance in this update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides steps to follow to achieve the core principle. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The amendments in this update become effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. We are currently evaluating the impact of adopting the new guidance on the consolidated financial statements. Our preliminary finding is that the new pronouncement will not have a significant impact on the consolidated financial statements as the majority of our business transactions will not be subject to this pronouncement. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Recognition and Measurement of Financial Assets and Liabilities. The new guidance is intended to improve the recognition and measurement of financial instruments by requiring: equity investments (other than equity method or consolidation) to be measured at fair value with changes in fair value recognized in net income; public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; separate presentation of financial assets and financial liabilities by measurement category and form of financial assets (i.e. securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost for organizations that are not public business entities; eliminating the requirement for non-public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is to be required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and requiring a reporting organization to present separately in other comprehensive income the portion of the total change in fair value of a liability resulting from the change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The new guidance is effective for public business entities for fiscal years beginning after December 15, 2017. We are currently evaluating the impact of adopting the new guidance on the consolidated financial statements. Our preliminary finding is that the new pronouncement will not have a significant impact on our Statement of Operations as the majority of the Company's investment securities are classified as available-for-sale and held-to-maturity debt securities. The pronouncement will require some revision to our disclosures within the consolidated financial statements and we are currently evaluating the impact. In February 2016, the FASB issued ASU No. 2016-02, Leases. The standard requires a lessee to recognize assets and liabilities on the balance sheet for leases with lease terms greater than 12 months. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right of use asset representing its right to use the underlying asset for the lease term. When measuring assets and liabilities arising from a lease, a lessee (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Similarly, optional payments to purchase the underlying asset should be included in the measurement of lease assets and lease liabilities only if the lessee is reasonably certain to exercise that purchase option. Reasonably certain is a high threshold that is consistent with and intended to be applied in the same way as the reasonably assured threshold in the previous leases guidance. In addition, also consistent with the previous leases guidance, a lessee (and a lessor) should exclude most variable lease payments in measuring lease assets and lease liabilities, other than those that depend on an index or a rate or are in substance fixed payments. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight line basis over the lease term. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. We are currently evaluating the impact of adopting the new guidance on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments. The standard is the final guidance on the new current expected credit loss (“CECL”) model. The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate future credit loss estimates. As CECL encompasses all financial assets carried at amortized cost, the requirement that reserves be established based on an organization’s reasonable and supportable estimate of expected credit losses extends to held to maturity debt securities. The update amends the accounting for credit losses on available for sale securities, whereby credit losses will be presented as an allowance as opposed to a write down. In addition, CECL will modify the accounting for purchased loans with credit deterioration since origination, so that reserves are established at the date of acquisition for purchased loans. Lastly, the amendment requires enhanced disclosures on the significant estimates and judgments used to estimate credit losses, as well as on the credit quality and underwriting standards of an organization’s portfolio. These disclosures require organizations to present the currently required credit quality disclosures disaggregated by the year of origination or vintage. The guidance allows for a modified retrospective approach with a cumulative effect adjustment to the balance sheet upon adoption (charge to retained earnings instead of the income statement). The new guidance is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2019, and early adoption is permitted. We have formed a committee that is assessing our data and system needs and are evaluating the impact of adopting the new guidance. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements.

Shareholders_ Equity and Earnin

Shareholders’ Equity and Earnings Per Share	3 Months Ended
	Mar. 31, 2017
Shareholders’ Equity and Earnings Per Share.
Shareholders' Equity and Earnings Per Share	2) Shareholders’ Equity and Earnings Per Share On September 12, 2016, the Company, entered into Exchange Agreements with Castle Creek Capital Partners IV, LP, Patriot Financial Partners, L.P. and Patriot Financial Partners Parallel, L.P. (collectively “Preferred Stockholders”) providing for the exchange of 21,004 shares of the Company’s Series C convertible perpetual preferred stock, no par value (“ Series C Preferred Stock”) for 5,601,000 shares of the Company’s common stock, no par value. The exchange ratio was equal to the equivalent number of shares the Preferred Stockholders would have received upon conversion of the Series C Preferred Stock. Earnings Per Share -- Basic earnings per common share is computed by dividing net income, less dividends and discount accretion on preferred stock, by the weighted average common shares outstanding. The Series C Preferred Stock participated in the earnings of the Company prior to the exchange for common stock and, therefore, the shares issued on the conversion of the Series C Preferred Stock were considered outstanding under the two class method of computing basic earnings per common share during periods of earnings. Diluted earnings per share reflect potential dilution from outstanding stock options using the treasury stock method. A reconciliation of these factors used in computing basic and diluted earnings per common share is as follows: March 31, 2017 2016 (Dollars in thousands, except per share amounts) Net income available to common shareholders $ 6,538 $ 5,602 Less: undistributed earnings allocated to Series C Preferred Stock — (403) Distributed and undistributed earnings allocated to common shareholders $ 6,538 $ 5,199 Weighted average common shares outstanding for basic earnings per common share 37,957,999 32,125,716 Dilutive effect of stock options oustanding, using the the treasury stock method 536,108 251,777 Shares used in computing diluted earnings per common share 38,494,107 32,377,493 Basic earnings per share $ $ 0.16 Diluted earnings per share $ $ 0.16

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss) (''AOCI'')	3 Months Ended
	Mar. 31, 2017
Accumulated Other Comprehensive Income (Loss) ("AOCI")
Accumulated Other Comprehensive Income (Loss) ("AOCI")	3) Accumulated Other Comprehensive Income (Loss) (“AOCI”) The following table reflects the changes in AOCI by component for the periods indicated: ` Three Months Ended March 31, 2017 and 2016 Unamortized Unrealized Unrealized Gain on Gains (Losses) on Available- Available- for-Sale Defined for-Sale Securities Benefit Securities Reclassified Pension and I/O to Held-to- Plan Strips(1) Maturity Items Total (Dollars in thousands) Beginning balance January 1, 2017, net of taxes $ (540) $ 336 $ (7,710) $ (7,914) Other comprehensive income (loss) before reclassification, net of taxes 490 — (7) 483 Amounts reclassified from other comprehensive income (loss), net of taxes 4 (8) 30 26 Net current period other comprehensive income (loss), net of taxes 494 (8) 23 509 Ending balance March 31, 2017, net of taxes $ (46) $ 328 $ (7,687) $ (7,405) Beginning balance January 1, 2016, net of taxes $ 1,090 $ 403 $ (7,713) $ (6,220) Other comprehensive income before reclassification, net of taxes 2,807 — — 2,807 Amounts reclassified from other comprehensive income (loss), net of taxes (105) (8) 28 (85) Net current period other comprehensive income (loss), net of taxes 2,702 (8) 28 2,722 Ending balance March 31, 2016, net of taxes $ 3,792 $ 395 $ (7,685) $ (3,498) Amounts Reclassified from AOCI(1) Three Months Ended March 31, Affected Line Item Where Details About AOCI Components 2017 2016 Net Income is Presented (Dollars in thousands) Unrealized (loss) gains on available-for-sale securities and I/O strips $ (6) $ 180 Gain on sales of securities 2 (75) Income tax expense (4) 105 Net of tax Amortization of unrealized gain on securities available- for-sale that were reclassified to securities held-to-maturity 13 14 Interest income on taxable securities (5) (6) Income tax expense 8 8 Net of tax Amortization of defined benefit pension plan items(1) Prior transition obligation 18 13 Actuarial losses (69) (60) (51) (47) Income before income tax 21 19 Income tax benefit (30) (28) Net of tax Total reclassification for the year $ (26) $ 85 (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8—Benefit Plans) and includes split-dollar life insurance benefit plan.

Securities

Securities	3 Months Ended
	Mar. 31, 2017
Securities
Securities	4) Securities The amortized cost and estimated fair value of securities at March 31, 2017 and December 31, 2016 were as follows: Gross Gross Estimated Amortized Unrealized Unrealized Fair March 31, 2017 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 327,726 $ 987 $ (3,267) $ 325,446 Trust preferred securities 15,000 1,144 — 16,144 Total $ 342,726 $ 2,131 $ (3,267) $ 341,590 Securities held-to-maturity: Agency mortgage-backed securities $ 251,162 $ 27 $ (3,302) $ 247,887 Municipals - exempt from Federal tax 90,221 639 (1,957) 88,903 Total $ 341,383 $ 666 $ (5,259) $ 336,790 Gross Gross Estimated Amortized Unrealized Unrealized Fair December 31, 2016 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 293,598 $ 928 $ (3,537) $ 290,989 Trust preferred securities 15,000 600 — 15,600 Total $ 308,598 $ 1,528 $ (3,537) $ 306,589 Securities held-to-maturity: Agency mortgage-backed securities $ 233,409 $ 15 $ (3,554) $ 229,870 Municipals - exempt from Federal tax 90,601 521 (2,244) 88,878 Total $ 324,010 $ 536 $ (5,798) $ 318,748 Securities with unrealized losses at March 31, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows: Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2017 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 277,201 $ (3,267) $ — $ — $ 277,201 $ (3,267) Total $ 277,201 $ (3,267) $ — $ — $ 277,201 $ (3,267) Securities held-to-maturity: Agency mortgage-backed securities $ 236,241 $ (3,282) $ 419 $ (20) $ 236,660 $ (3,302) Municipals - exempt from Federal tax 55,215 (1,758) 2,064 (199) 57,279 (1,957) Total $ 291,456 $ (5,040) $ 2,483 $ (219) $ 293,939 $ (5,259) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2016 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 245,045 $ (3,537) $ — $ — $ 245,045 $ (3,537) Total $ 245,045 $ (3,537) $ — $ — $ 245,045 $ (3,537) Securities held-to-maturity: Agency mortgage-backed securities $ 222,132 $ (3,528) $ 612 $ (26) $ 222,744 (3,554) Municipals - exempt from Federal tax 57,304 (2,026) 2,046 (218) 59,350 (2,244) Total $ 279,436 $ (5,554) $ 2,658 $ (244) $ 282,094 $ (5,798) There were no holdings of securities of any one issuer, other than the U.S. Government and its sponsored entities, in an amount greater than 10% of shareholders’ equity. At March 31, 2017, the Company held 467 securities (158 available-for-sale and 309 held‑to‑maturity), of which 312 had fair values below amortized cost. At March 31, 2017, there were $2,064,000 of municipal bonds held-to-maturity, and $419,000 of agency mortgage-backed securities held-to-maturity carried with an unrealized loss for 12 months or more. The total unrealized loss for securities 12 months or more was $219,000 at March 31, 2017. The unrealized losses were due to higher interest rates. The issuers are of high credit quality and all principal amounts are expected to be paid when securities mature. The fair value is expected to recover as the securities approach their maturity date and/or market rates decline. The Company does not believe that it is more likely than not that the Company will be required to sell a security in an unrealized loss position prior to recovery in value. The Company does not consider these securities to be other than temporarily impaired at March 31, 2017. The proceeds from sales of securities and the resulting gains and losses were as follows for the periods indicated: Three Months Ended March 31, 2017 2016 (Dollars in thousands) Proceeds $ 6,536 $ 5,598 Gross gains — 180 Gross losses (6) — The amortized cost and estimated fair values of securities as of March 31, 2017 are shown by contractual maturity below. The expected maturities will differ from contractual maturities if borrowers have the right to call or pre‑pay obligations with or without call or pre‑payment penalties. Securities not due at a single maturity date are shown separately. Available-for-sale Amortized Estimated Cost Fair Value (Dollars in thousands) Due after ten years $ 15,000 $ 16,144 Agency mortgage-backed securities 327,726 325,446 Total $ 342,726 $ 341,590 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due after 3 months through one year 1,647 1,651 Due after one through five years 3,451 3,483 Due after five through ten years 18,077 18,439 Due after ten years 67,046 65,330 Agency mortgage-backed securities 251,162 247,887 Total $ 341,383 $ 336,790

Loans

Loans	3 Months Ended
	Mar. 31, 2017
Loans
Loans	5) Loans Loans were as follows for the periods indicated: March 31, December 31, 2017 2016 (Dollars in thousands) Loans held-for-investment: Commercial $ 609,353 $ 604,331 Real estate: CRE 679,989 662,228 Land and construction 81,101 81,002 Home equity 80,360 82,459 Residential mortgages 49,569 52,887 Consumer 13,807 20,460 Loans 1,514,179 1,503,367 Deferred loan fees, net (892) (760) Loans, net of deferred fees 1,513,287 1,502,607 Allowance for loan losses (19,135) (19,089) Loans, net $ 1,494,152 $ 1,483,518 At March 31, 2017 and December 31, 2016, total net loans included in the table above include $82,819,000 and $88,453,000, respectively, of the loans acquired in the Focus transaction that were not purchased credit impaired loans. Changes in the allowance for loan losses were as follows for the periods indicated: Three Months Ended March 31, 2017 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 10,656 $ 8,327 $ 106 $ 19,089 Charge-offs (366) — — (366) Recoveries 50 41 — 91 Net (charge-offs) recoveries (316) 41 — (275) Provision (credit) for loan losses 912 (625) 34 321 End of period balance $ 11,252 $ 7,743 $ 140 $ 19,135 Three Months Ended March 31, 2016 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 10,748 $ 8,076 $ 102 $ 18,926 Charge-offs (117) — — (117) Recoveries 32 216 — 248 Net (charge-offs) recoveries (85) 216 — 131 Provision (credit) for loan losses 616 (224) 9 401 End of period balance $ 11,279 $ 8,068 $ 111 $ 19,458 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment, based on the impairment method at the following period‑ends: March 31, 2017 Commercial Real Estate Consumer Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,441 $ — $ — $ 1,441 Collectively evaluated for impairment 9,811 7,743 140 17,694 Acquired with deterioriated credit quality — — — — Total allowance balance $ 11,252 $ 7,743 $ 140 $ 19,135 Loans: Individually evaluated for impairment $ 3,929 $ 1,357 $ 2 $ 5,288 Collectively evaluated for impairment 605,179 889,662 13,805 1,508,646 Acquired with deterioriated credit quality 245 — — 245 Total loan balance $ 609,353 $ 891,019 $ 13,807 $ 1,514,179 December 31, 2016 Commercial Real Estate Consumer Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 329 $ — $ — $ 329 Collectively evaluated for impairment 10,327 8,327 106 18,760 Acquired with deterioriated credit quality — — — — Total allowance balance $ 10,656 $ 8,327 $ 106 $ 19,089 Loans: Individually evaluated for impairment $ 2,057 $ 885 $ 3 $ 2,945 Collectively evaluated for impairment 602,029 877,691 20,457 1,500,177 Acquired with deterioriated credit quality 245 — — 245 Total loan balance $ 604,331 $ 878,576 $ 20,460 $ 1,503,367 The following table presents loans held-for-investment individually evaluated for impairment by class of loans as of March 31, 2017 and December 31, 2016. The recorded investment included in the following table represents loan principal net of any partial charge-offs recognized on the loans. The unpaid principal balance represents the recorded balance prior to any partial charge-offs. The recorded investment in consumer loans collateralized by residential real estate property that are in process of foreclosure according to local requirements of the applicable jurisdiction are not material as of the periods indicated: March 31, 2017 December 31, 2016 Allowance Allowance Unpaid for Loan Unpaid for Loan Principal Recorded Losses Principal Recorded Losses Balance Investment Allocated Balance Investment Allocated (Dollars in thousands) With no related allowance recorded: Commercial $ 2,609 $ 2,609 $ — $ 1,808 $ 1,808 $ — Real estate: Commercial 1,770 912 — 1,278 419 — Land and construction 214 195 — 218 199 — Home Equity 250 250 — 267 267 — Consumer 2 2 — 3 3 — Total with no related allowance recorded 4,845 3,968 — 3,574 2,696 — With an allowance recorded: Commercial 1,565 1,565 1,441 494 494 329 Total with an allowance recorded 1,565 1,565 1,441 494 494 329 Total $ 6,410 $ 5,533 $ 1,441 $ 4,068 $ 3,190 $ 329 The following tables present interest recognized and cash‑basis interest earned on impaired loans for the periods indicated: Three Months Ended March 31, 2017 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 3,239 $ 665 $ 197 $ 259 $ 2 $ 4,362 Interest income during impairment $ — $ — $ — $ — $ — $ — Cash-basis interest earned $ — $ — $ — $ — $ — $ — Three Months Ended March 31, 2016 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 1,343 $ 2,951 $ 216 $ 914 $ 4 $ 5,428 Interest income during impairment $ — $ — $ — $ — $ — $ — Cash-basis interest earned $ — $ — $ — $ — $ — $ — Nonperforming loans include both smaller dollar balance homogenous loans that are collectively evaluated for impairment and individually classified loans. Nonperforming loans were as follows at period‑end: March 31, December 31, 2017 2016 2016 (Dollars in thousands) Nonaccrual loans - held-for-investment $ 5,200 $ 4,184 $ 3,059 Restructured and loans over 90 days past due and still accruing 207 — — Total nonperforming loans 5,407 4,184 3,059 Other restructured loans 126 145 131 Total impaired loans $ 5,533 $ 4,329 $ 3,190 The following table presents the nonperforming loans by class for the periods indicated: March 31, 2017 December 31, 2016 Restructured and Restructured and Loans over 90 Days Loans over 90 Days Past Due and Past Due and Nonaccrual Still Accruing Total Nonaccrual Still Accruing Total (Dollars in thousands) Commercial $ 3,841 $ 207 $ 4,048 $ 2,171 $ — $ 2,171 Real estate: CRE 912 — 912 419 — 419 Land and construction 195 — 195 199 — 199 Home equity 250 — 250 267 — 267 Consumer 2 — 2 3 — 3 Total $ 5,200 $ 207 $ 5,407 $ 3,059 $ — $ 3,059 The following tables present the aging of past due loans by class for the periods indicated: March 31, 2017 30 - 59 60 - 89 90 Days or Days Days Greater Total Loans Not Past Due Past Due Past Due Past Due Past Due Total (Dollars in thousands) Commercial $ 2,932 $ 506 $ 1,953 $ 5,391 $ 603,962 $ 609,353 Real estate: CRE 509 — — 509 679,480 679,989 Land and construction — — 195 195 80,906 81,101 Home equity — — — — 80,360 80,360 Residential mortgages — — — — 49,569 49,569 Consumer — — — — 13,807 13,807 Total $ 3,441 $ 506 $ 2,148 $ 6,095 $ 1,508,084 $ 1,514,179 December 31, 2016 30 - 59 60 - 89 90 Days or Days Days Greater Total Loans Not Past Due Past Due Past Due Past Due Past Due Total (Dollars in thousands) Commercial $ 3,998 $ 857 $ 2,036 $ 6,891 $ 597,440 $ 604,331 Real estate: CRE 632 — — 632 661,596 662,228 Land and construction — — 199 199 80,803 81,002 Home equity — 267 — 267 82,192 82,459 Residential mortgages — — — — 52,887 52,887 Consumer — — — — 20,460 20,460 Total $ 4,630 $ 1,124 $ 2,235 $ 7,989 $ 1,495,378 $ 1,503,367 Past due loans 30 days or greater totaled $6,095,000 and $7,989,000 at March 31, 2017 and December 31, 2016, respectively, of which $1,977,000 and $2,057,000 were on nonaccrual. At March 31, 2017, there were also $3,223,000 loans less than 30 days past due included in nonaccrual loans held-for-investment. At December 31, 2016, there were also $1,002,000 loans less than 30 days past due included in nonaccrual loans held-for-investment. Management’s classification of a loan as “nonaccrual” is an indication that there is reasonable doubt as to the full recovery of principal or interest on the loan. At that point, the Company stops accruing interest income, and reverses any uncollected interest that had been accrued as income. The Company begins recognizing interest income only as cash interest payments are received and it has been determined the collection of all outstanding principal is not in doubt. The loans may or may not be collateralized, and collection efforts are pursued. Credit Quality Indicators Concentrations of credit risk arise when a number of customers are engaged in similar business activities, or activities in the same geographic region, or have similar features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. The Company’s loan portfolio is concentrated in commercial (primarily manufacturing, wholesale, and service) and real estate lending, with the remaining balance in consumer loans. While no specific industry concentration is considered significant, the Company’s lending operations are located in the Company’s market areas that are dependent on the technology and real estate industries and their supporting companies. Thus, the Company’s borrowers could be adversely impacted by a downturn in these sectors of the economy which could reduce the demand for loans and adversely impact the borrowers’ ability to repay their loans. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis. Nonclassified loans generally include those loans that are expected to be repaid in accordance with contractual loans terms. Classified loans are those loans that are assigned a substandard, substandard-nonaccrual, or doubtful risk rating using the following definitions: Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well‑defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Substandard‑Nonaccrual. Loans classified as substandard‑nonaccrual are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any, and it is probable that the Company will not receive payment of the full contractual principal and interest. Loans so classified have a well‑defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. In addition, the Company no longer accrues interest on the loan because of the underlying weaknesses. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loss. Loans classified as loss are considered uncollectable or of so little value that their continuance as assets is not warranted. This classification does not necessarily mean that a loan has no recovery or salvage value; but rather, there is much doubt about whether, how much, or when the recovery would occur. Loans classified as loss are immediately charged off against the allowance for loan losses. Therefore, there is no balance to report at March 31, 2017 and December 31, 2016. The following table provides a summary of the loan portfolio by loan type and credit quality classification at period end: March 31, 2017 December 31, 2016 Nonclassified Classified Total Nonclassified Classified Total Commercial $ 601,657 $ 7,696 $ 609,353 $ 594,255 $ 10,076 $ 604,331 Real estate: CRE 678,268 1,721 679,989 659,777 2,451 662,228 Land and construction 80,906 195 81,101 80,803 199 81,002 Home equity 79,788 572 80,360 81,866 593 82,459 Residential mortgages 49,569 — 49,569 52,887 — 52,887 Consumer 13,805 2 13,807 20,455 5 20,460 Total $ 1,503,993 $ 10,186 $ 1,514,179 $ 1,490,043 $ 13,324 $ 1,503,367 In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed in accordance with the Company’s underwriting policy. The balance of troubled debt restructurings at March 31, 2017 was $128,000, which included $2,000 of nonaccrual loans and $126,000 of accruing loans. The balance of troubled debt restructurings at December 31, 2016 was $133,000, which included $2,000 of nonaccrual loans and $131,000 of accruing loans. Approximately $2,000 in specific reserves were established with respect to these loans as of March 31, 2017 and December 31, 2016, respectively. As of March 31, 2017 and December 31, 2016, the Company had no additional amounts committed on any loan classified as a troubled debt restructuring. There were no new loans modified as troubled debt restructurings during the three months ended March 31, 2017 and 2016. A loan is considered to be in payment default when it is 30 days contractually past due under the modified terms. There were no defaults on troubled debt restructurings, within twelve months following the modification, during the three month ended March 31, 2017 and 2016. A loan that is a troubled debt restructuring on nonaccrual status may return to accruing status after a period of at least six months of consecutive payments in accordance with the modified terms.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
	Mar. 31, 2017
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	6) Goodwill and Other Intangible Assets Goodwill At March 31, 2017, the carrying value of goodwill was $45,664,000, which included $13,044,000 of goodwill related to its acquisition of Bay View Funding and $32,620,000 from its acquisition of Focus. Goodwill impairment exists when a reporting unit’s carrying value exceeds its fair value, which is determined through a qualitative assessment whether it is more likely than not that the fair value of equity of the reporting unit exceeds the carrying value (“Step Zero”). If the qualitative assessment indicates it is more likely than not that the fair value of equity of a reporting unit is less than book value, then a quantitative two-step impairment test is required. Step 1 includes the determination of the carrying value of the Company’s single reporting unit, including the existing goodwill and intangible assets, and estimating the fair value of the reporting unit. If the carrying amount of a reporting unit exceeds its fair value, the Company is required to perform a second step to the impairment test. Step 2 requires that the implied fair value of the reporting unit goodwill be compared to the carrying amount of that goodwill. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess. The Company completed its annual impairment analysis on the goodwill from the Bay View Funding and Focus acquisitions as of November 30, 2016 with the assistance of an independent valuation firm. Based on the Step Zero qualitative analysis performed, the Company determined that it is more likely than not that the fair value of the reporting unit exceeded its reported book value of equity at November 30, 2016. As such, no impairment was indicated and no further testing was required. Other Intangible Assets The core deposit intangible asset originally acquired in the June 2007 acquisition of Diablo Valley Bank was $5,049,000. The core deposit intangible asset is amortized over its estimated useful life of 10 years. Accumulated amortization of these intangible assets was $4,903,000 and $4,854,000 at March 31, 2017 and December 31, 2016, respectively. The core deposit intangible asset acquired in the acquisition of Focus in August 2015 was $6,285,000. This asset is amortized over its estimated useful life of 10 years. Accumulated amortization of this intangible asset was $1,338,000 and $1,120,000 at March 31, 2017 and December 31, 2016, respectively. Other intangible assets acquired in the acquisition of Bay View Funding in November 2014 included: a below market value lease intangible asset of $109,000 (amortized over 3 years), customer relationship and brokered relationship intangible assets of $1,900,000, (amortized over the 10 year estimated useful lives), and a non-compete agreement intangible asset of $250,000 (amortized over 3 years). Accumulated amortization of these intangible assets was $746,000 and $669,000 at March 31, 2017 and December 31, 2016, respectively. Estimated amortization expense for 2017 and each of the next five years follows: Bay View Funding Diablo Valley Customer & Bank Core Focus Core Below Market Brokered Non-Compete Total Deposit Deposit Value Lease Relationship Agreement Amortization Year Intangible Intangible Intangible Intangible Intangible Expense (Dollars in thousands) 2017 $ 195 $ 875 $ 31 $ 190 $ 70 $ 1,361 2018 — 775 — 190 — 965 2019 — 734 — 190 — 924 2020 — 716 — 190 — 906 2021 — 596 — 190 — 786 2022 — 502 — 190 — 692 $ 195 $ 4,198 $ 31 $ 1,140 $ 70 $ 5,634 Impairment testing of the intangible assets is performed at the individual asset level. Impairment exists if the carrying amount of the asset is not recoverable and exceeds its fair value at the date of the impairment test. For intangible assets, estimates of expected future cash flows (cash inflows less cash outflows) that are directly associated with an intangible asset are used to determine the fair value of that asset. Management makes certain estimates and assumptions in determining the expected future cash flows from core deposit and customer relationship intangibles including account attrition, expected lives, discount rates, interest rates, servicing costs and other factors. Significant changes in these estimates and assumptions could adversely impact the valuation of these intangible assets. If an impairment loss exists, the carrying amount of the intangible asset is adjusted to a new cost basis. The new cost basis is then amortized over the remaining useful life of the asset. Based on its assessment, management concluded that there was no impairment of intangible assets at March 31, 2017 and December 31, 2016.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
Income Taxes
Income Taxes	7) Income Taxes Some items of income and expense are recognized in different years for tax purposes than when applying generally accepted accounting principles, leading to timing differences between the Company’s actual current tax liability and the amount accrued for this liability based on book income. These temporary differences comprise the “deferred” portion of the Company’s tax expense or benefit, which is accumulated on the Company’s books as a deferred tax asset or deferred tax liability until such time as they reverse. Under generally accepted accounting principles, a valuation allowance is required if it is “more likely than not” that a deferred tax asset will not be realized. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, including forecasts of future income, cumulative losses, applicable tax planning strategies, and assessments of current and future economic and business conditions. The Company had net deferred tax assets of $22,500,000, and $25,058,000, at March 31, 2017, and December 31, 2016, respectively. After consideration of the matters in the preceding paragraph, the Company determined that it is more likely than not that the net deferred tax asset at March 31, 2017 and December 31, 2016 will be fully realized in future years. The following table reflects the carry amounts of the low income housing investments included in accrued interest receivable and other assets, and the future commitments included in accrued interest payable and other liabilities for the periods indicated: March 31, December 31, 2017 2016 (Dollars in thousands) Low income housing investments $ 3,756 $ Future commitments $ 365 $ The Company expects future commitments of $68,000 to be paid in 2017, $14,000 in 2018, and $283,000 in 2019 through 2023. For tax purposes, the Company had low income housing tax credits of $110,000 and $111,000 for the three months ended March 31, 2017 and March 31, 2016, respectively, and low income housing investment losses of $115,000 and $117,000, respectively. The Company recognized low income housing investment expense as a component of income tax expense.

Benefit Plans

Benefit Plans	3 Months Ended
	Mar. 31, 2017
Benefit Plans
Benefit Plans	8) Benefit Plans Supplemental Retirement Plan The Company has a supplemental retirement plan (the “Plan”) covering some current and some former key employees and directors. The Plan is a nonqualified defined benefit plan. Benefits are unsecured as there are no Plan assets. The following table presents the amount of periodic cost recognized for the periods indicated: Three Months Ended March 31, 2017 2016 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 81 $ 133 Interest cost 259 259 Amortization of net actuarial loss 69 60 Net periodic benefit cost $ 409 $ 452 Split‑Dollar Life Insurance Benefit Plan The Company maintains life insurance policies for some current and some former directors and officers that are subject to split‑dollar life insurance agreements. The following table sets forth the funded status of the split‑dollar life insurance benefits for the periods indicated: March 31, December 31, 2017 2016 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 6,301 $ 6,215 Interest cost 61 248 Actuarial gain — (162) Projected benefit obligation at end of period $ 6,362 $ 6,301 March 31, December 31, 2017 2016 (Dollars in thousands) Net actuarial loss $ 2,166 $ 2,126 Prior transition obligation 1,306 1,328 Accumulated other comprehensive loss $ 3,472 $ 3,454 Three Months Ended March 31, 2017 2016 (Dollars in thousands) Amortization of prior transition obligation $ (18) $ (13) Interest cost 61 62 Net periodic benefit cost $ 43 $ 49

Fair Value

Fair Value	3 Months Ended
	Mar. 31, 2017
Fair Value
Fair Value	9) Fair Value Accounting guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data (for example, interest rates and yield curves observable at commonly quoted intervals, prepayment speeds, credit risks, and default rates). Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Financial Assets and Liabilities Measured on a Recurring Basis The fair values of securities available-for sale-are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The fair value of interest‑only (“I/O”) strip receivable assets is based on a valuation model used by a third party. The Company is able to compare the valuation model inputs and results to widely available published industry data for reasonableness (Level 2 inputs). Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Obeservable Unobservable Identical Assets Inputs Inputs Balance (Level 1) (Level 2) (Level 3) (Dollars in thousands) Assets at March 31, 2017 Available-for-sale securities: Agency mortgage-backed securities $ 325,446 $ — $ 325,446 $ — Trust preferred securities 16,144 — 16,144 — I/O strip receivables 1,045 — 1,045 — Assets at December 31, 2016 Available-for-sale securities: Agency mortgage-backed securities $ 290,989 $ — $ 290,989 $ — Trust preferred securities 15,600 — 15,600 — I/O strip receivables 1,067 — 1,067 — There were no transfers between Level 1 and Level 2 during the period for assets measured at fair value on a recurring basis. Assets and Liabilities Measured on a Non‑Recurring Basis The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. The appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Foreclosed assets are valued at the time the loan is foreclosed upon and the asset is transferred to foreclosed assets. The fair value is based primarily on third party appraisals, less costs to sell. The appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales and income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Balance (Level 1) (Level 2) (Level 3) (Dollars in thousands) Assets at March 31, 2017 Impaired loans - held-for-investment: Commercial $ 125 — — $ 125 Real estate: CRE 398 — — 398 Land and construction 195 — — 195 $ 718 — — $ 718 Foreclosed assets: Land and construction $ 183 — — $ 183 $ 183 $ 183 Assets at December 31, 2016 Impaired loans - held-for-investment: Commercial $ 165 — — $ 165 Real estate: CRE 419 — — 419 Land and construction 199 — — 199 $ 783 — — $ 783 Foreclosed assets: Land and construction $ — — $ $ $ The following table shows the detail of the impaired loans held-for-investment and the impaired loans held‑for‑investment carried at fair value for the periods indicated: March 31, 2017 December 31, 2016 (Dollars in thousands) Impaired loans held-for-investment: Book value of impaired loans held-for-investment carried at fair value $ 2,159 $ 1,112 Book value of impaired loans held-for-investment carried at cost 3,374 2,078 Total impaired loans held-for-investment $ 5,533 $ 3,190 Impaired loans held-for-investment carried at fair value: Book value of impaired loans held-for-investment carried at fair value $ 2,159 $ 1,112 Specific valuation allowance (1,441) (329) Impaired loans held-for-investment carried at fair value, net $ 718 $ 783 Impaired loans held‑for‑investment which are measured primarily for impairment using the fair value of the collateral were $5,533,000 at March 31, 2017. In addition, these loans had a specific valuation allowance of $1,441,000 at March 31, 2017. Impaired loans held‑for‑investment totaling $2,159,000 at March 31, 2017, were carried at fair value as a result of the aforementioned partial charge‑offs and specific valuation allowances at period‑end. The remaining $3,374,000 of impaired loans were carried at cost at March 31, 2017, as the fair value of the collateral exceeded the cost basis of each respective loan. Partial charge‑offs and changes in specific valuation allowances during the first three months of 2017 on impaired loans held‑for‑investment carried at fair value at March 31, 2017 resulted in an additional provision for loan losses of $1,170,000. At March 31, 2017, foreclosed assets had a carrying amount of $183,000, with no valuation allowance. Impaired loans held-for-investment were $3,190,000 at December 31, 2016. There were no partial charge-offs at December 31, 2016. In addition, these loans had a specific valuation allowance of $329,000 at December 31, 2016. Impaired loans held-for-investment totaling $1,112,000 at December 31, 2016 were carried at fair value as a result of the aforementioned partial charge-offs and specific valuation allowances at year-end. The remaining $2,078,000 of impaired loans were carried at cost at December 31, 2016, as the fair value of the collateral exceeded the cost basis of each respective loan. Partial charge-offs and changes in specific valuation allowances during 2016 on impaired loans held-for-investment carried at fair value at December 31, 2016 resulted in an additional provision for loan losses of $320,000. At December 31, 2016, foreclosed assets had a carrying amount of $229,000, with no valuation allowance. The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non‑recurring basis at the periods indicated: March 31, 2017 Valuation Unobservable Range Fair Value Techniques Inputs (Weighted Average) (Dollars in thousands) Impaired loans - held-for-investment: Commercial $ 125 Market Approach Discount adjustment for differences between comparable sales Less than 1 % Real estate: CRE 398 Market Approach Discount adjustment for differences between comparable sales 0 % to 3% (3)% Land and construction 195 Market Approach Discount adjustment for differences between comparable sales Less than 1% Foreclosed assets: Land and construction 183 Market Approach Discount adjustment for differences between comparable sales 0% to 2% (2)% December 31, 2016 Valuation Unobservable Range Fair Value Techniques Inputs (Weighted Average) (Dollars in thousands) Impaired loans - held-for-investment: Commercial $ 165 Market Approach Discount adjustment for differences between comparable sales Less than 1% Real estate: CRE 419 Market Approach Discount adjustment for differences between comparable sales 0% to 3% (3)% Land and construction 199 Market Approach Discount adjustment for differences between comparable sales Less than 1% Foreclosed assets: Land and construction 229 Market Approach Discount adjustment for differences between comparable sales 0% to 2% (2)% The Company obtains third party appraisals on its impaired loans held-for-investment and foreclosed assets to determine fair value. Generally, the third party appraisals apply the “market approach,” which is a valuation technique that uses prices and other relevant information generated by market transactions involving identical or comparable (that is, similar) assets, liabilities, or a group of assets and liabilities, such as a business. Adjustments are then made based on the type of property, age of appraisal, current status of property and other related factors to estimate the current value of collateral. The carrying amounts and estimated fair values of financial instruments at March 31, 2017 are as follows: Estimated Fair Value Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Amounts (Level 1) (Level 2) (Level 3) Total (Dollars in thousands) Assets: Cash and cash equivalents $ 287,846 $ 287,846 $ — $ — $ 287,846 Securities available-for-sale 341,590 — 341,590 — 341,590 Securities held-to-maturity 341,383 — 336,790 — 336,790 Loans (including loans held-for-sale), net 1,498,063 — 3,911 1,537,411 1,541,322 FHLB stock, FRB stock, and other investments 15,203 — — — N/A Accrued interest receivable 7,127 2,310 4,817 7,127 I/O strips receivables 1,045 — 1,045 — 1,045 Liabilities: Time deposits $ 224,953 $ — $ 225,297 $ — $ 225,297 Other deposits 2,105,134 — 2,105,134 — 2,105,134 Accrued interest payable 148 — 148 — 148 The carrying amounts and estimated fair values of the Company’s financial instruments at December 31, 2016: Estimated Fair Value Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Amounts (Level 1) (Level 2) (Level 3) Total (Dollars in thousands) Assets: Cash and cash equivalents $ 266,103 $ 266,103 $ — $ — $ 266,103 Securities available-for-sale 306,589 — 306,589 — 306,589 Securities held-to-maturity 324,010 — 318,748 — 318,748 Loans (including loans held-for-sale), net 1,489,223 — 5,705 1,535,485 1,541,190 FHLB stock, FRB stock, and other investments 15,196 — — — N/A Accrued interest receivable 6,859 — 1,961 4,898 6,859 I/O strips receivables 1,067 — 1,067 — 1,067 Liabilities: Time deposits $ 224,717 $ — $ 225,047 $ — $ 225,047 Other deposits 2,037,423 — 2,037,423 — 2,037,423 Accrued interest payable 168 — 168 — 168 The methods and assumptions, not previously discussed, used to estimate the fair value are described as follows: Cash and Cash Equivalents The carrying amounts of cash on hand, noninterest and interest-bearing due from bank accounts, and Fed funds sold approximate fair values and are classified as Level 1. Loans The fair value of loans held‑for‑sale is estimated based upon binding contracts and quotes from third parties resulting in a Level 2 classification. Fair values of loans, excluding loans held-for-sale, are estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price. FHLB and FRB Stock It was not practical to determine the fair value of FHLB and FRB stock due to restrictions placed on their transferability. Accrued Interest Receivable/Payable The carrying amounts of accrued interest approximate fair value resulting in a Level 2 or Level 3 classification. Deposits The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 2 classification. The carrying amounts of variable rate, fixed‑term money market accounts approximate their fair values at the reporting date resulting in a Level 2 classification. The carrying amounts of variable rate, certificates of deposit approximate their fair values at the reporting date resulting in a Level 2 classification. Fair values for fixed rate certificates of deposit are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. Short-term Borrowings The carrying amount approximates the fair value of short-term borrowings that reprice frequently and fully. Off‑balance Sheet Instruments Fair values for off‑balance sheet, credit‑related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments is not material. Limitations Fair value estimates are made at a specific point in time, based on relevant market information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire holdings of a particular financial instrument. Fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Equity Plan

Equity Plan	3 Months Ended
	Mar. 31, 2017
Equity Plan
Equity Plan	10) Equity Plan The Company maintained an Amended and Restated 2004 Equity Plan (the “2004 Plan”) for directors, officers, and key employees. The 2004 Plan was terminated on May 23, 2013. On May 23, 2013, the Company’s shareholders approved the 2013 Equity Incentive Plan (the “2013 Plan”). The equity plans provide for the grant of incentive and nonqualified stock options and restricted stock. The equity plans provide that the option price for both incentive and nonqualified stock options will be determined by the Board of Directors at no less than the fair value at the date of grant. Options granted vest on a schedule determined by the Board of Directors at the time of grant. Generally options vest over four years. All options expire no later than ten years from the date of grant. Restricted stock is subject to time vesting. For the three months ended March 31, 2017, the Company did not grant any nonqualified stock options or restricted stock. There were 606,936 shares available for the issuance of equity awards under the 2013 Plan as of March 31, 2017. Stock option activity under the equity plans is as follows: Weighted Weighted Average Average Remaining Aggregate Number Exercise Contractual Intrinsic Total Stock Options of Shares Price Life (Years) Value Outstanding at January 1, 2017 1,719,091 $ 9.79 Granted — $ — Exercised (52,586) $ 6.94 Forfeited or expired (13,291) $ 19.38 Outstanding at March 31, 2017 1,653,214 $ 9.81 5.74 $ 8,627,192 Vested or expected to vest 1,554,021 5.74 $ 8,109,560 Exercisable at March 31, 2017 1,226,386 4.81 $ 6,728,248 As of March 31, 2017, there was $1,164,000 of total unrecognized compensation cost related to nonvested stock options granted under the equity plans. That cost is expected to be recognized over a weighted‑average period of approximately 2.39 years. Restricted stock activity under the equity plans is as follows: Weighted Average Grant Number Date Fair Total Restricted Stock Award of Shares Value Nonvested shares at January 1, 2017 199,503 $ 9.74 Granted 2,376 $ 10.16 Vested (9,752) $ 9.20 Forfeited or expired (884) $ 9.36 Nonvested shares at March 31, 2017 191,243 $ 9.78 As of March 31, 2017, there was $1,322,000 of total unrecognized compensation cost related to nonvested restricted stock awards granted under the equity plans. The cost is expected to be recognized over a weighted‑average period of approximately 2.35 years.

Capital Requirements

Capital Requirements	3 Months Ended
	Mar. 31, 2017
Capital Requirements
Capital Requirements	11) Capital Requirements The Company and its subsidiary bank are subject to various regulatory capital requirements administered by the banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory—and possibly additional discretionary—actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements and operations. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and HBC must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off balance sheet items as calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. There are no conditions or events since March 31, 2017, that management believes have changed the categorization of the Company or HBC as well-capitalized.” As of January 1, 2015, HCC and HBC along with other community banking organizations became subject to new capital requirements and certain provisions of the new rules will be phased in from 2015 through 2019. The Federal Banking regulators approved the new rules to implement the revised capital adequacy standards of the Basel Committee on Banking Supervision, commonly called Basel III, and address relevant provisions of The Dodd Frank Wall Street Reform and Consumer Protection Act of 2010, as amended. The Company’s consolidated capital ratios and the Bank’s capital ratios exceeded the regulatory guidelines for a well-capitalized financial institution under the Basel III regulatory requirements at March 31, 2017. Quantitative measures established by regulation to help ensure capital adequacy require the Company and HBC to maintain minimum amounts and ratios (set forth in the tables below) of total, Tier 1 capital, and common equity Tier 1 capital (as defined in the regulations) to risk weighted assets (as defined), and of Tier 1 capital to average assets (as defined). Management believes that, as of March 31, 2017 and December 31, 2016, the Company and HBC met all capital adequacy guidelines to which they were subject. The Company’s consolidated capital amounts and ratios are presented in the following table, together with capital adequacy requirements, under the Basel III regulatory requirements as of March 31, 2017, and December 31, 2016. Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of March 31, 2017 Total Capital $ 237,859 12.5 % $ 176,649 9.25 % (to risk-weighted assets) Tier 1 Capital $ 218,099 11.4 % $ 138,455 7.25 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 218,099 11.4 % $ 109,809 5.75 % (to risk-weighted assets) Tier 1 Capital $ 218,099 8.6 % $ 101,321 4.00 % (to average assets) (1) Includes 1.25% capital conservation buffer, effective January 1, 2017, except the Tier 1 Capital to average assets ratio. Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2016 Total Capital $ 234,629 12.5 % $ 161,868 8.625 % (to risk-weighted assets) Tier 1 Capital $ 214,924 11.5 % $ 124,333 6.625 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 214,924 11.5 % $ 96,183 5.125 % (to risk-weighted assets) Tier 1 Capital $ 214,924 8.5 % $ 100,625 4.000 % (to average assets) (1) Includes 0.625% capital conservation buffer, effective January 1, 2016, except the Tier 1 Capital to average assets ratio. HBC’s actual capital amounts and ratios are presented in the following table, together with capital adequacy requirements, under the Basel III regulatory requirements as of March 31, 2017, and December 31, 2016. Required For Capital To Be Well-Capitalized Adequacy Under Basel III Regulatory Purposes Actual Requirements Under Basel III Amount Ratio Amount Ratio Amount Ratio (1) (Dollars in thousands) As of March 31, 2017 Total Capital $ 233,741 12.2 % $ 190,904 10.0 % $ 176,586 9.25 % (to risk-weighted assets) Tier 1 Capital $ 213,981 11.2 % $ 152,723 8.0 % $ 138,405 7.25 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 213,981 11.2 % $ 124,088 6.5 % $ 109,770 5.75 % (to risk-weighted assets) Tier 1 Capital $ 213,981 8.4 % $ 126,620 5.0 % $ 101,296 4.00 % (to average assets) (1) Includes 1.25% capital conservation buffer, effective January 1, 2017, except the Tier 1 Capital to average assets ratio. Required For Capital To Be Well-Capitalized Adequacy Under Basel III Regulatory Purposes Actual Requirements Under Basel III Amount Ratio Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2016 Total Capital $ 231,069 12.3 % $ 187,602 10.0 % $ 161,807 8.625 % (to risk-weighted assets) Tier 1 Capital $ 211,364 11.3 % $ 150,082 8.0 % $ 124,287 6.625 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 211,364 11.3 % $ 121,942 6.5 % $ 96,146 5.125 % (to risk-weighted assets) Tier 1 Capital $ 211,364 8.4 % $ 125,746 5.0 % $ 100,597 4.000 % (to average assets) (1) Includes 0.625% capital conservation buffer, effective January 1, 2016, except the Tier 1 Capital to average assets ratio. HCC is dependent upon dividends from HBC. Under California General Corporation Law, the holders of common stock are entitled to receive dividends when and as declared by the Board of Directors, out of funds legally available. The California Financial Code provides that a state licensed bank may not make a cash distribution to its shareholders in excess of the lesser of the following: (i) the bank’s retained earnings; or (ii) the bank’s net income for its last three fiscal years, less the amount of any distributions made by the bank to its shareholders during such period. However, a bank, with the prior approval of the Commissioner of the California Department of Business Oversight—Division of Financial Institutions (“DBO”) may make a distribution to its shareholders of an amount not to exceed the greater of (i) a bank’s retained earnings; (ii) its net income for its last fiscal year; or (iii) its net income for the current fiscal year. Also with the prior approval of the Commissioner of the DBO and the shareholders of the bank, the bank may make a distribution to its shareholders, as a reduction in capital of the bank. In the event that the Commissioner determines that the shareholders’ equity of a bank is inadequate or that the making of a distribution by a bank would be unsafe or unsound, the Commissioner may order a bank to refrain from making such a proposed distribution. As of March 31, 2017, HBC would not be required to obtain regulatory approval, and the amount available for cash dividends is $29,260,000. Similar restrictions applied to the amount and sum of loan advances and other transfers of funds from HBC to the parent company. During the first quarter of 2017, HBC distributed dividends of $4,000,000 to HCC.

Loss Contingencies

Loss Contingencies	3 Months Ended
	Mar. 31, 2017
Loss Contingencies
Loss Contingencies	12) Loss Contingencies The Company’s policy is to accrue for legal costs associated with both asserted and unasserted claims when it is probable that such costs will be incurred and such costs can be reasonably estimated. A number of parties filed complaints in the Superior Court of California for the County of Santa Clara asserting certain claims against the Company arising from the transfer of funds. During the fourth quarter of 2016, the Company reached settlements with each of the parties in amounts not material to the Company.

Noninterest Expense

Noninterest Expense	3 Months Ended
	Mar. 31, 2017
Noninterest Expense
Noninterest Expense	13) Noninterest Expense The following table sets forth the various components of the Company’s noninterest expense for the periods indicated: Three Months Ended March 31, 2017 2016 (Dollars in thousands) Salaries and employee benefits $ 9,486 $ 8,947 Professional fees 1,071 825 Occupancy and equipment 1,068 1,085 Software subscriptions 417 341 Data processing 383 400 Insurance expense 352 299 Amortization on intangible assets 345 392 FDIC deposit insurance premiums 297 331 Other 1,909 2,065 Total $ 15,328 $ 14,685

Business Segment Information

Business Segment Information	3 Months Ended
	Mar. 31, 2017
Business Segment Information
Business Segment Information	14) Business Segment Information The following presents the Company’s operating segments. The Company operates through two business segments: Banking segment and Factoring segment. Transactions between segments consist primarily of borrowed funds. Intersegment interest expense is allocated to the Factoring segment based on the Company’s prime rate and funding costs. The provision for loan loss is allocated based on the segment’s allowance for loan loss determination which considers the effects of charge-offs. Noninterest income and expense directly attributable to a segment are assigned to it. Taxes are paid on a consolidated basis and allocated for segment purposes. The Factoring segment includes only factoring originated by Bay View Funding. Three Months Ended March 31, 2017 Banking(1) Factoring Consolidated (Dollars in thousands) Interest income $ 21,969 $ 2,728 $ 24,697 Intersegment interest allocations 260 (260) — Total interest expense 871 — 871 Net interest income 21,358 2,468 23,826 Provision for loan losses 311 10 321 Net interest income after provision 21,047 2,458 — 23,505 Noninterest income 2,115 180 2,295 Noninterest expense 13,579 1,749 15,328 Intersegment expense allocations 133 (133) — Income before income taxes 9,716 756 10,472 Income tax expense 3,616 318 3,934 Net income $ 6,100 $ 438 $ 6,538 Total assets $ 2,584,288 $ 57,503 $ 2,641,791 Loans, net of deferred fees $ 1,470,450 $ 42,837 $ 1,513,287 Goodwill $ 32,620 $ 13,044 $ 45,664 (1) Includes the holding company’s results of operations Three Months Ended March 31, 2016 Banking(1) Factoring Consolidated (Dollars in thousands) Interest income $ 20,208 $ 2,854 $ 23,062 Intersegment interest allocations 245 (245) — Total interest expense 758 — 758 Net interest income 19,695 2,609 22,304 Provision for loan losses 387 14 401 Net interest income after provision 19,308 2,595 21,903 Noninterest income 2,412 202 2,614 Noninterest expense 13,052 1,633 14,685 Intersegment expense allocations 175 (175) — Income before income taxes 8,843 989 9,832 Income tax expense 3,310 416 3,726 Net income $ 5,533 $ 573 $ 6,106 Total assets $ 2,271,411 $ 55,922 $ 2,327,333 Loans, net of deferred fees $ 1,353,315 $ 41,949 $ 1,395,264 Goodwill $ 32,620 $ 13,044 $ 45,664 (1) Includes the holding company’s results of operations

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2017
Subsequent Events
Subsequent Events	15) Subsequent Events On April 27, 2017, the Company announced that its Board of Directors declared a $0.10 per share quarterly cash dividend to holders of common stock. The dividend will be paid on May 25, 2017 to shareholders of record on May 11, 2017.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2017
Basis of Presentation
Basis of Presentation	Basis of Presentation The unaudited consolidated financial statements of Heritage Commerce Corp (the “Company” or “HCC”) and its wholly owned subsidiary, Heritage Bank of Commerce (“HBC”), have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements are not included herein. The interim statements should be read in conjunction with the consolidated financial statements and notes that were included in the Company’s Form 10-K for the year ended December 31, 2016. The Company acquired Focus Business Bank (“Focus”) on August 20, 2015. Focus was merged with HBC, with HBC as the surviving bank. HBC is a commercial bank serving customers primarily located in Santa Clara, Alameda, Contra Costa, and San Benito counties of California. BVF/CSNK Acquisition Corp., a Delaware corporation (“BVF/CSNK”), the parent company of CSNK Working Capital Finance Corp. dba Bay View Funding (“Bay View Funding”) is a wholly owned subsidiary of HBC, and provides business-essential working capital factoring financing to various industries throughout the United States. No customer accounts for more than 10 percent of revenue for HBC or the Company. The Company reports its results for two segments: banking and factoring. The Company’s management uses segment results in its operating and strategic planning. In management’s opinion, all adjustments necessary for a fair presentation of these consolidated financial statements have been included and are of a normal and recurring nature. All intercompany transactions and balances have been eliminated. 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 disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from these estimates. The results for the three months ended March 31, 2017 are not necessarily indicative of the results expected for any subsequent period or for the entire year ending December 31, 2017.
Reclassifications	Reclassifications Certain reclassifications of prior year balances have been made to conform to the current year presentation. These reclassifications had no impact on the Company’s consolidated financial position, results of operations or net change in cash and cash equivalents.
Adoption of New Accounting Standards	Adoption of New Accounting Standards In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation—Stock Compensation: Improvements to Employee Share Based Payment Accounting. The standard is intended to simplify several areas of accounting for share based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. All excess tax benefits and tax deficiencies (including tax benefits of dividends on share based payment awards) should be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. An entity can make an entity wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. The threshold to qualify for equity classification permits withholding up to the maximum statutory tax rates in the applicable jurisdictions. Cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity. A nonpublic entity can make an accounting policy election to apply a practical expedient to estimate the expected term for all awards with performance or service conditions that meet certain conditions. A nonpublic entity can make a one time accounting policy election to switch from measuring all liability classified awards at fair value to intrinsic value. The Company adopted the new guidance on January 1, 2017. The amount of the impact on the effective tax rate will be determined by the number of stock options exercised and the stock price of the Company when the stock options are exercised, and the amount of restricted stock awards vesting. The adoption of this guidance resulted in a reduction to income tax expense of $112,000 for the first quarter of 2017. In connection with the adoption, the Company has elected to estimate forfeitures each reporting period. Newly Issued, but not yet Effective Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which was an update to the guidance for accounting for revenue from contracts with customers. The guidance in this update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides steps to follow to achieve the core principle. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The amendments in this update become effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. We are currently evaluating the impact of adopting the new guidance on the consolidated financial statements. Our preliminary finding is that the new pronouncement will not have a significant impact on the consolidated financial statements as the majority of our business transactions will not be subject to this pronouncement. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Recognition and Measurement of Financial Assets and Liabilities. The new guidance is intended to improve the recognition and measurement of financial instruments by requiring: equity investments (other than equity method or consolidation) to be measured at fair value with changes in fair value recognized in net income; public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; separate presentation of financial assets and financial liabilities by measurement category and form of financial assets (i.e. securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost for organizations that are not public business entities; eliminating the requirement for non-public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is to be required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and requiring a reporting organization to present separately in other comprehensive income the portion of the total change in fair value of a liability resulting from the change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The new guidance is effective for public business entities for fiscal years beginning after December 15, 2017. We are currently evaluating the impact of adopting the new guidance on the consolidated financial statements. Our preliminary finding is that the new pronouncement will not have a significant impact on our Statement of Operations as the majority of the Company's investment securities are classified as available-for-sale and held-to-maturity debt securities. The pronouncement will require some revision to our disclosures within the consolidated financial statements and we are currently evaluating the impact. In February 2016, the FASB issued ASU No. 2016-02, Leases. The standard requires a lessee to recognize assets and liabilities on the balance sheet for leases with lease terms greater than 12 months. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right of use asset representing its right to use the underlying asset for the lease term. When measuring assets and liabilities arising from a lease, a lessee (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Similarly, optional payments to purchase the underlying asset should be included in the measurement of lease assets and lease liabilities only if the lessee is reasonably certain to exercise that purchase option. Reasonably certain is a high threshold that is consistent with and intended to be applied in the same way as the reasonably assured threshold in the previous leases guidance. In addition, also consistent with the previous leases guidance, a lessee (and a lessor) should exclude most variable lease payments in measuring lease assets and lease liabilities, other than those that depend on an index or a rate or are in substance fixed payments. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight line basis over the lease term. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. We are currently evaluating the impact of adopting the new guidance on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments. The standard is the final guidance on the new current expected credit loss (“CECL”) model. The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate future credit loss estimates. As CECL encompasses all financial assets carried at amortized cost, the requirement that reserves be established based on an organization’s reasonable and supportable estimate of expected credit losses extends to held to maturity debt securities. The update amends the accounting for credit losses on available for sale securities, whereby credit losses will be presented as an allowance as opposed to a write down. In addition, CECL will modify the accounting for purchased loans with credit deterioration since origination, so that reserves are established at the date of acquisition for purchased loans. Lastly, the amendment requires enhanced disclosures on the significant estimates and judgments used to estimate credit losses, as well as on the credit quality and underwriting standards of an organization’s portfolio. These disclosures require organizations to present the currently required credit quality disclosures disaggregated by the year of origination or vintage. The guidance allows for a modified retrospective approach with a cumulative effect adjustment to the balance sheet upon adoption (charge to retained earnings instead of the income statement). The new guidance is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2019, and early adoption is permitted. We have formed a committee that is assessing our data and system needs and are evaluating the impact of adopting the new guidance. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements.

Shareholders_ Equity and Earn25

Shareholders’ Equity and Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Shareholders’ Equity and Earnings Per Share.
Schedule of reconciliation of factors used in computing basic and diluted earnings per common share	March 31, 2017 2016 (Dollars in thousands, except per share amounts) Net income available to common shareholders $ 6,538 $ 5,602 Less: undistributed earnings allocated to Series C Preferred Stock — (403) Distributed and undistributed earnings allocated to common shareholders $ 6,538 $ 5,199 Weighted average common shares outstanding for basic earnings per common share 37,957,999 32,125,716 Dilutive effect of stock options oustanding, using the the treasury stock method 536,108 251,777 Shares used in computing diluted earnings per common share 38,494,107 32,377,493 Basic earnings per share $ $ 0.16 Diluted earnings per share $ $ 0.16

Accumulated Other Comprehensi26

Accumulated Other Comprehensive Income (Loss) (''AOCI'') (Tables)	3 Months Ended
	Mar. 31, 2017
Accumulated Other Comprehensive Income (Loss) ("AOCI")
Schedule of changes in AOCI by component	` Three Months Ended March 31, 2017 and 2016 Unamortized Unrealized Unrealized Gain on Gains (Losses) on Available- Available- for-Sale Defined for-Sale Securities Benefit Securities Reclassified Pension and I/O to Held-to- Plan Strips(1) Maturity Items Total (Dollars in thousands) Beginning balance January 1, 2017, net of taxes $ (540) $ 336 $ (7,710) $ (7,914) Other comprehensive income (loss) before reclassification, net of taxes 490 — (7) 483 Amounts reclassified from other comprehensive income (loss), net of taxes 4 (8) 30 26 Net current period other comprehensive income (loss), net of taxes 494 (8) 23 509 Ending balance March 31, 2017, net of taxes $ (46) $ 328 $ (7,687) $ (7,405) Beginning balance January 1, 2016, net of taxes $ 1,090 $ 403 $ (7,713) $ (6,220) Other comprehensive income before reclassification, net of taxes 2,807 — — 2,807 Amounts reclassified from other comprehensive income (loss), net of taxes (105) (8) 28 (85) Net current period other comprehensive income (loss), net of taxes 2,702 (8) 28 2,722 Ending balance March 31, 2016, net of taxes $ 3,792 $ 395 $ (7,685) $ (3,498)
Schedule of reclassifications out of AOCI into net income	Amounts Reclassified from AOCI(1) Three Months Ended March 31, Affected Line Item Where Details About AOCI Components 2017 2016 Net Income is Presented (Dollars in thousands) Unrealized (loss) gains on available-for-sale securities and I/O strips $ (6) $ 180 Gain on sales of securities 2 (75) Income tax expense (4) 105 Net of tax Amortization of unrealized gain on securities available- for-sale that were reclassified to securities held-to-maturity 13 14 Interest income on taxable securities (5) (6) Income tax expense 8 8 Net of tax Amortization of defined benefit pension plan items(1) Prior transition obligation 18 13 Actuarial losses (69) (60) (51) (47) Income before income tax 21 19 Income tax benefit (30) (28) Net of tax Total reclassification for the year $ (26) $ 85 (1) This AOCI component is included in the computation of net periodic benefit cost (see Note 8—Benefit Plans) and includes split-dollar life insurance benefit plan.

Securities (Tables)

Securities (Tables)	3 Months Ended
	Mar. 31, 2017
Securities
Schedule of amortized cost and estimated fair value of securities	Gross Gross Estimated Amortized Unrealized Unrealized Fair March 31, 2017 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 327,726 $ 987 $ (3,267) $ 325,446 Trust preferred securities 15,000 1,144 — 16,144 Total $ 342,726 $ 2,131 $ (3,267) $ 341,590 Securities held-to-maturity: Agency mortgage-backed securities $ 251,162 $ 27 $ (3,302) $ 247,887 Municipals - exempt from Federal tax 90,221 639 (1,957) 88,903 Total $ 341,383 $ 666 $ (5,259) $ 336,790 Gross Gross Estimated Amortized Unrealized Unrealized Fair December 31, 2016 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 293,598 $ 928 $ (3,537) $ 290,989 Trust preferred securities 15,000 600 — 15,600 Total $ 308,598 $ 1,528 $ (3,537) $ 306,589 Securities held-to-maturity: Agency mortgage-backed securities $ 233,409 $ 15 $ (3,554) $ 229,870 Municipals - exempt from Federal tax 90,601 521 (2,244) 88,878 Total $ 324,010 $ 536 $ (5,798) $ 318,748
Schedule of securities with unrealized losses	Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2017 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 277,201 $ (3,267) $ — $ — $ 277,201 $ (3,267) Total $ 277,201 $ (3,267) $ — $ — $ 277,201 $ (3,267) Securities held-to-maturity: Agency mortgage-backed securities $ 236,241 $ (3,282) $ 419 $ (20) $ 236,660 $ (3,302) Municipals - exempt from Federal tax 55,215 (1,758) 2,064 (199) 57,279 (1,957) Total $ 291,456 $ (5,040) $ 2,483 $ (219) $ 293,939 $ (5,259) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2016 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 245,045 $ (3,537) $ — $ — $ 245,045 $ (3,537) Total $ 245,045 $ (3,537) $ — $ — $ 245,045 $ (3,537) Securities held-to-maturity: Agency mortgage-backed securities $ 222,132 $ (3,528) $ 612 $ (26) $ 222,744 (3,554) Municipals - exempt from Federal tax 57,304 (2,026) 2,046 (218) 59,350 (2,244) Total $ 279,436 $ (5,554) $ 2,658 $ (244) $ 282,094 $ (5,798)
Schedule of proceeds from sales of securities and the resulting gains and losses	Three Months Ended March 31, 2017 2016 (Dollars in thousands) Proceeds $ 6,536 $ 5,598 Gross gains — 180 Gross losses (6) —
Schedule of amortized cost and estimated fair values of securities, by contractual maturity	Available-for-sale Amortized Estimated Cost Fair Value (Dollars in thousands) Due after ten years $ 15,000 $ 16,144 Agency mortgage-backed securities 327,726 325,446 Total $ 342,726 $ 341,590 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due after 3 months through one year 1,647 1,651 Due after one through five years 3,451 3,483 Due after five through ten years 18,077 18,439 Due after ten years 67,046 65,330 Agency mortgage-backed securities 251,162 247,887 Total $ 341,383 $ 336,790

Loans (Tables)

Loans (Tables)	3 Months Ended
	Mar. 31, 2017
Loans
Schedule of loans	March 31, December 31, 2017 2016 (Dollars in thousands) Loans held-for-investment: Commercial $ 609,353 $ 604,331 Real estate: CRE 679,989 662,228 Land and construction 81,101 81,002 Home equity 80,360 82,459 Residential mortgages 49,569 52,887 Consumer 13,807 20,460 Loans 1,514,179 1,503,367 Deferred loan fees, net (892) (760) Loans, net of deferred fees 1,513,287 1,502,607 Allowance for loan losses (19,135) (19,089) Loans, net $ 1,494,152 $ 1,483,518
Schedule of changes in allowance for loan losses	Three Months Ended March 31, 2017 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 10,656 $ 8,327 $ 106 $ 19,089 Charge-offs (366) — — (366) Recoveries 50 41 — 91 Net (charge-offs) recoveries (316) 41 — (275) Provision (credit) for loan losses 912 (625) 34 321 End of period balance $ 11,252 $ 7,743 $ 140 $ 19,135 Three Months Ended March 31, 2016 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 10,748 $ 8,076 $ 102 $ 18,926 Charge-offs (117) — — (117) Recoveries 32 216 — 248 Net (charge-offs) recoveries (85) 216 — 131 Provision (credit) for loan losses 616 (224) 9 401 End of period balance $ 11,279 $ 8,068 $ 111 $ 19,458
Schedule of balance in allowance for loan losses and recorded investment in loans by portfolio segment, based on impairment method	March 31, 2017 Commercial Real Estate Consumer Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,441 $ — $ — $ 1,441 Collectively evaluated for impairment 9,811 7,743 140 17,694 Acquired with deterioriated credit quality — — — — Total allowance balance $ 11,252 $ 7,743 $ 140 $ 19,135 Loans: Individually evaluated for impairment $ 3,929 $ 1,357 $ 2 $ 5,288 Collectively evaluated for impairment 605,179 889,662 13,805 1,508,646 Acquired with deterioriated credit quality 245 — — 245 Total loan balance $ 609,353 $ 891,019 $ 13,807 $ 1,514,179 December 31, 2016 Commercial Real Estate Consumer Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 329 $ — $ — $ 329 Collectively evaluated for impairment 10,327 8,327 106 18,760 Acquired with deterioriated credit quality — — — — Total allowance balance $ 10,656 $ 8,327 $ 106 $ 19,089 Loans: Individually evaluated for impairment $ 2,057 $ 885 $ 3 $ 2,945 Collectively evaluated for impairment 602,029 877,691 20,457 1,500,177 Acquired with deterioriated credit quality 245 — — 245 Total loan balance $ 604,331 $ 878,576 $ 20,460 $ 1,503,367
Schedule of loans held-for-investment individually evaluated for impairment by class of loans	March 31, 2017 December 31, 2016 Allowance Allowance Unpaid for Loan Unpaid for Loan Principal Recorded Losses Principal Recorded Losses Balance Investment Allocated Balance Investment Allocated (Dollars in thousands) With no related allowance recorded: Commercial $ 2,609 $ 2,609 $ — $ 1,808 $ 1,808 $ — Real estate: Commercial 1,770 912 — 1,278 419 — Land and construction 214 195 — 218 199 — Home Equity 250 250 — 267 267 — Consumer 2 2 — 3 3 — Total with no related allowance recorded 4,845 3,968 — 3,574 2,696 — With an allowance recorded: Commercial 1,565 1,565 1,441 494 494 329 Total with an allowance recorded 1,565 1,565 1,441 494 494 329 Total $ 6,410 $ 5,533 $ 1,441 $ 4,068 $ 3,190 $ 329
Schedule of average impaired loans with interest recognized and cash-basis interest earned on impaired loans	Three Months Ended March 31, 2017 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 3,239 $ 665 $ 197 $ 259 $ 2 $ 4,362 Interest income during impairment $ — $ — $ — $ — $ — $ — Cash-basis interest earned $ — $ — $ — $ — $ — $ — Three Months Ended March 31, 2016 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 1,343 $ 2,951 $ 216 $ 914 $ 4 $ 5,428 Interest income during impairment $ — $ — $ — $ — $ — $ — Cash-basis interest earned $ — $ — $ — $ — $ — $ —
Schedule of nonperforming loans	March 31, December 31, 2017 2016 2016 (Dollars in thousands) Nonaccrual loans - held-for-investment $ 5,200 $ 4,184 $ 3,059 Restructured and loans over 90 days past due and still accruing 207 — — Total nonperforming loans 5,407 4,184 3,059 Other restructured loans 126 145 131 Total impaired loans $ 5,533 $ 4,329 $ 3,190
Schedule of nonperforming loans by class	March 31, 2017 December 31, 2016 Restructured and Restructured and Loans over 90 Days Loans over 90 Days Past Due and Past Due and Nonaccrual Still Accruing Total Nonaccrual Still Accruing Total (Dollars in thousands) Commercial $ 3,841 $ 207 $ 4,048 $ 2,171 $ — $ 2,171 Real estate: CRE 912 — 912 419 — 419 Land and construction 195 — 195 199 — 199 Home equity 250 — 250 267 — 267 Consumer 2 — 2 3 — 3 Total $ 5,200 $ 207 $ 5,407 $ 3,059 $ — $ 3,059
Schedule of aging of past due loans by class of loans	March 31, 2017 30 - 59 60 - 89 90 Days or Days Days Greater Total Loans Not Past Due Past Due Past Due Past Due Past Due Total (Dollars in thousands) Commercial $ 2,932 $ 506 $ 1,953 $ 5,391 $ 603,962 $ 609,353 Real estate: CRE 509 — — 509 679,480 679,989 Land and construction — — 195 195 80,906 81,101 Home equity — — — — 80,360 80,360 Residential mortgages — — — — 49,569 49,569 Consumer — — — — 13,807 13,807 Total $ 3,441 $ 506 $ 2,148 $ 6,095 $ 1,508,084 $ 1,514,179 December 31, 2016 30 - 59 60 - 89 90 Days or Days Days Greater Total Loans Not Past Due Past Due Past Due Past Due Past Due Total (Dollars in thousands) Commercial $ 3,998 $ 857 $ 2,036 $ 6,891 $ 597,440 $ 604,331 Real estate: CRE 632 — — 632 661,596 662,228 Land and construction — — 199 199 80,803 81,002 Home equity — 267 — 267 82,192 82,459 Residential mortgages — — — — 52,887 52,887 Consumer — — — — 20,460 20,460 Total $ 4,630 $ 1,124 $ 2,235 $ 7,989 $ 1,495,378 $ 1,503,367
Summary of loan portfolio by loan type and credit quality classification	March 31, 2017 December 31, 2016 Nonclassified Classified Total Nonclassified Classified Total Commercial $ 601,657 $ 7,696 $ 609,353 $ 594,255 $ 10,076 $ 604,331 Real estate: CRE 678,268 1,721 679,989 659,777 2,451 662,228 Land and construction 80,906 195 81,101 80,803 199 81,002 Home equity 79,788 572 80,360 81,866 593 82,459 Residential mortgages 49,569 — 49,569 52,887 — 52,887 Consumer 13,805 2 13,807 20,455 5 20,460 Total $ 1,503,993 $ 10,186 $ 1,514,179 $ 1,490,043 $ 13,324 $ 1,503,367

Goodwill and Other Intangible29

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Other Intangible Assets
Schedule of estimated amortization expense	Estimated amortization expense for 2017 and each of the next five years follows: Bay View Funding Diablo Valley Customer & Bank Core Focus Core Below Market Brokered Non-Compete Total Deposit Deposit Value Lease Relationship Agreement Amortization Year Intangible Intangible Intangible Intangible Intangible Expense (Dollars in thousands) 2017 $ 195 $ 875 $ 31 $ 190 $ 70 $ 1,361 2018 — 775 — 190 — 965 2019 — 734 — 190 — 924 2020 — 716 — 190 — 906 2021 — 596 — 190 — 786 2022 — 502 — 190 — 692 $ 195 $ 4,198 $ 31 $ 1,140 $ 70 $ 5,634

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2017
Income Taxes
Summary of carrying amount of income tax housing investment	March 31, December 31, 2017 2016 (Dollars in thousands) Low income housing investments $ 3,756 $ Future commitments $ 365 $

Benefit Plans (Tables)

Benefit Plans (Tables)	3 Months Ended
	Mar. 31, 2017
Supplemental Retirement Plan
Benefit plans
Schedule of components of net periodic benefit cost	Three Months Ended March 31, 2017 2016 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 81 $ 133 Interest cost 259 259 Amortization of net actuarial loss 69 60 Net periodic benefit cost $ 409 $ 452
Split-Dollar Life Insurance Benefit Plan
Benefit plans
Schedule of change in projected benefit obligation	March 31, December 31, 2017 2016 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 6,301 $ 6,215 Interest cost 61 248 Actuarial gain — (162) Projected benefit obligation at end of period $ 6,362 $ 6,301
Schedule of amounts recognized in accumulated other comprehensive loss	March 31, December 31, 2017 2016 (Dollars in thousands) Net actuarial loss $ 2,166 $ 2,126 Prior transition obligation 1,306 1,328 Accumulated other comprehensive loss $ 3,472 $ 3,454
Schedule of components of net periodic benefit cost	Three Months Ended March 31, 2017 2016 (Dollars in thousands) Amortization of prior transition obligation $ (18) $ (13) Interest cost 61 62 Net periodic benefit cost $ 43 $ 49

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value
Schedule of financial assets and liabilities measured on a recurring basis	Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Obeservable Unobservable Identical Assets Inputs Inputs Balance (Level 1) (Level 2) (Level 3) (Dollars in thousands) Assets at March 31, 2017 Available-for-sale securities: Agency mortgage-backed securities $ 325,446 $ — $ 325,446 $ — Trust preferred securities 16,144 — 16,144 — I/O strip receivables 1,045 — 1,045 — Assets at December 31, 2016 Available-for-sale securities: Agency mortgage-backed securities $ 290,989 $ — $ 290,989 $ — Trust preferred securities 15,600 — 15,600 — I/O strip receivables 1,067 — 1,067 —
Schedule of assets and liabilities measured on a non-recurring basis	Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Balance (Level 1) (Level 2) (Level 3) (Dollars in thousands) Assets at March 31, 2017 Impaired loans - held-for-investment: Commercial $ 125 — — $ 125 Real estate: CRE 398 — — 398 Land and construction 195 — — 195 $ 718 — — $ 718 Foreclosed assets: Land and construction $ 183 — — $ 183 $ 183 $ 183 Assets at December 31, 2016 Impaired loans - held-for-investment: Commercial $ 165 — — $ 165 Real estate: CRE 419 — — 419 Land and construction 199 — — 199 $ 783 — — $ 783 Foreclosed assets: Land and construction $ — — $ $ $
Schedule of impaired loans held-for-investment and impaired loans held-for-investment carried at fair value	March 31, 2017 December 31, 2016 (Dollars in thousands) Impaired loans held-for-investment: Book value of impaired loans held-for-investment carried at fair value $ 2,159 $ 1,112 Book value of impaired loans held-for-investment carried at cost 3,374 2,078 Total impaired loans held-for-investment $ 5,533 $ 3,190 Impaired loans held-for-investment carried at fair value: Book value of impaired loans held-for-investment carried at fair value $ 2,159 $ 1,112 Specific valuation allowance (1,441) (329) Impaired loans held-for-investment carried at fair value, net $ 718 $ 783
Schedule of quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis	March 31, 2017 Valuation Unobservable Range Fair Value Techniques Inputs (Weighted Average) (Dollars in thousands) Impaired loans - held-for-investment: Commercial $ 125 Market Approach Discount adjustment for differences between comparable sales Less than 1 % Real estate: CRE 398 Market Approach Discount adjustment for differences between comparable sales 0 % to 3% (3)% Land and construction 195 Market Approach Discount adjustment for differences between comparable sales Less than 1% Foreclosed assets: Land and construction 183 Market Approach Discount adjustment for differences between comparable sales 0% to 2% (2)% December 31, 2016 Valuation Unobservable Range Fair Value Techniques Inputs (Weighted Average) (Dollars in thousands) Impaired loans - held-for-investment: Commercial $ 165 Market Approach Discount adjustment for differences between comparable sales Less than 1% Real estate: CRE 419 Market Approach Discount adjustment for differences between comparable sales 0% to 3% (3)% Land and construction 199 Market Approach Discount adjustment for differences between comparable sales Less than 1% Foreclosed assets: Land and construction 229 Market Approach Discount adjustment for differences between comparable sales 0% to 2% (2)%
Schedule of carrying amounts and estimated fair values of financial instruments	The carrying amounts and estimated fair values of financial instruments at March 31, 2017 are as follows: Estimated Fair Value Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Amounts (Level 1) (Level 2) (Level 3) Total (Dollars in thousands) Assets: Cash and cash equivalents $ 287,846 $ 287,846 $ — $ — $ 287,846 Securities available-for-sale 341,590 — 341,590 — 341,590 Securities held-to-maturity 341,383 — 336,790 — 336,790 Loans (including loans held-for-sale), net 1,498,063 — 3,911 1,537,411 1,541,322 FHLB stock, FRB stock, and other investments 15,203 — — — N/A Accrued interest receivable 7,127 2,310 4,817 7,127 I/O strips receivables 1,045 — 1,045 — 1,045 Liabilities: Time deposits $ 224,953 $ — $ 225,297 $ — $ 225,297 Other deposits 2,105,134 — 2,105,134 — 2,105,134 Accrued interest payable 148 — 148 — 148 The carrying amounts and estimated fair values of the Company’s financial instruments at December 31, 2016: Estimated Fair Value Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Amounts (Level 1) (Level 2) (Level 3) Total (Dollars in thousands) Assets: Cash and cash equivalents $ 266,103 $ 266,103 $ — $ — $ 266,103 Securities available-for-sale 306,589 — 306,589 — 306,589 Securities held-to-maturity 324,010 — 318,748 — 318,748 Loans (including loans held-for-sale), net 1,489,223 — 5,705 1,535,485 1,541,190 FHLB stock, FRB stock, and other investments 15,196 — — — N/A Accrued interest receivable 6,859 — 1,961 4,898 6,859 I/O strips receivables 1,067 — 1,067 — 1,067 Liabilities: Time deposits $ 224,717 $ — $ 225,047 $ — $ 225,047 Other deposits 2,037,423 — 2,037,423 — 2,037,423 Accrued interest payable 168 — 168 — 168

Equity Plan (Tables)

Equity Plan (Tables)	3 Months Ended
	Mar. 31, 2017
Equity Plan
Schedule of stock option activity under the equity plans	Weighted Weighted Average Average Remaining Aggregate Number Exercise Contractual Intrinsic Total Stock Options of Shares Price Life (Years) Value Outstanding at January 1, 2017 1,719,091 $ 9.79 Granted — $ — Exercised (52,586) $ 6.94 Forfeited or expired (13,291) $ 19.38 Outstanding at March 31, 2017 1,653,214 $ 9.81 5.74 $ 8,627,192 Vested or expected to vest 1,554,021 5.74 $ 8,109,560 Exercisable at March 31, 2017 1,226,386 4.81 $ 6,728,248
Schedule of restricted stock activity under the equity plans	Weighted Average Grant Number Date Fair Total Restricted Stock Award of Shares Value Nonvested shares at January 1, 2017 199,503 $ 9.74 Granted 2,376 $ 10.16 Vested (9,752) $ 9.20 Forfeited or expired (884) $ 9.36 Nonvested shares at March 31, 2017 191,243 $ 9.78

Capital Requirements (Tables)

Capital Requirements (Tables)	3 Months Ended
	Mar. 31, 2017
Capital Requirements
Schedule of actual capital and required amounts and ratios	Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of March 31, 2017 Total Capital $ 237,859 12.5 % $ 176,649 9.25 % (to risk-weighted assets) Tier 1 Capital $ 218,099 11.4 % $ 138,455 7.25 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 218,099 11.4 % $ 109,809 5.75 % (to risk-weighted assets) Tier 1 Capital $ 218,099 8.6 % $ 101,321 4.00 % (to average assets) (1) Includes 1.25% capital conservation buffer, effective January 1, 2017, except the Tier 1 Capital to average assets ratio. Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2016 Total Capital $ 234,629 12.5 % $ 161,868 8.625 % (to risk-weighted assets) Tier 1 Capital $ 214,924 11.5 % $ 124,333 6.625 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 214,924 11.5 % $ 96,183 5.125 % (to risk-weighted assets) Tier 1 Capital $ 214,924 8.5 % $ 100,625 4.000 % (to average assets) (1) Includes 0.625% capital conservation buffer, effective January 1, 2016, except the Tier 1 Capital to average assets ratio.
HBC (Wholly-owned Subsidiary)
Capital Requirements
Schedule of actual capital and required amounts and ratios	Required For Capital To Be Well-Capitalized Adequacy Under Basel III Regulatory Purposes Actual Requirements Under Basel III Amount Ratio Amount Ratio Amount Ratio (1) (Dollars in thousands) As of March 31, 2017 Total Capital $ 233,741 12.2 % $ 190,904 10.0 % $ 176,586 9.25 % (to risk-weighted assets) Tier 1 Capital $ 213,981 11.2 % $ 152,723 8.0 % $ 138,405 7.25 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 213,981 11.2 % $ 124,088 6.5 % $ 109,770 5.75 % (to risk-weighted assets) Tier 1 Capital $ 213,981 8.4 % $ 126,620 5.0 % $ 101,296 4.00 % (to average assets) (1) Includes 1.25% capital conservation buffer, effective January 1, 2017, except the Tier 1 Capital to average assets ratio. Required For Capital To Be Well-Capitalized Adequacy Under Basel III Regulatory Purposes Actual Requirements Under Basel III Amount Ratio Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2016 Total Capital $ 231,069 12.3 % $ 187,602 10.0 % $ 161,807 8.625 % (to risk-weighted assets) Tier 1 Capital $ 211,364 11.3 % $ 150,082 8.0 % $ 124,287 6.625 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 211,364 11.3 % $ 121,942 6.5 % $ 96,146 5.125 % (to risk-weighted assets) Tier 1 Capital $ 211,364 8.4 % $ 125,746 5.0 % $ 100,597 4.000 % (to average assets) (1) Includes 0.625% capital conservation buffer, effective January 1, 2016, except the Tier 1 Capital to average assets ratio.

Noninterest Expense (Tables)

Noninterest Expense (Tables)	3 Months Ended
	Mar. 31, 2017
Noninterest Expense
Schedule of noninterest expense	Three Months Ended March 31, 2017 2016 (Dollars in thousands) Salaries and employee benefits $ 9,486 $ 8,947 Professional fees 1,071 825 Occupancy and equipment 1,068 1,085 Software subscriptions 417 341 Data processing 383 400 Insurance expense 352 299 Amortization on intangible assets 345 392 FDIC deposit insurance premiums 297 331 Other 1,909 2,065 Total $ 15,328 $ 14,685

Basis of Presentation (Details)

Basis of Presentation (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)segmentcustomer	Mar. 31, 2016USD ($)
Segment Reporting
Number of customers accounting for more than 10 percent of revenue for HBC or the Company | customer	0
Number of operating segments | segment	2
Income tax expense	$ 3,934	$ 3,726
Adjustments for New Accounting Pronouncement
Segment Reporting
Income tax expense	$ (112)

Shareholders_ Equity and Earn37

Shareholders’ Equity and Earnings Per Share - Series C Preferred Stock (Details) - $ / shares	Sep. 12, 2016	Mar. 31, 2017	Dec. 31, 2016
Series C Preferred Stock
Par value of common stock (in dollars per share)		$ 0	$ 0
Preferred Stockholders
Series C Preferred Stock
Common shares issued in exchange of convertible perpetual preferred stock (in shares)	5,601,000
Par value of common stock (in dollars per share)	$ 0
Preferred Stockholders | Series C Preferred Stock
Series C Preferred Stock
Number of convertible preferred shares converted (in shares)	21,004
Preferred stock, par value (in dollars per share)	$ 0

Shareholders_ Equity and Earn38

Shareholders’ Equity and Earnings Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Reconciliation of factors used in computing basic and diluted earnings per common share
Net income available to common shareholders	$ 6,538	$ 5,602
Less: undistributed earnings allocated to Series C Preferred Stock		(403)
Distributed and undistributed earnings allocated to common shareholders	$ 6,538	$ 5,199
Weighted average common shares outstanding for basic earnings per common share (in shares)	37,957,999	32,125,716
Dilutive effect of stock options outstanding, using the treasury stock method (in shares)	536,108	251,777
Shares used in computing diluted earnings per common share (in shares)	38,494,107	32,377,493
Basic earnings per share (in dollars per share)	$ 0.17	$ 0.16
Diluted earnings per share (in dollars per share)	$ 0.17	$ 0.16

Accumulated Other Comprehensi39

Accumulated Other Comprehensive Income (Loss) (''AOCI'') - Changes in AOCI by Component (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	$ (7,914)
Net current period other comprehensive income (loss), net of taxes	509	$ 2,722
Balance at the end of the period, net of taxes	(7,405)
Accumulated Other Comprehensive Income / (Loss)
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(7,914)	(6,220)
Other comprehensive income before reclassification, net of taxes	483	2,807
Amounts reclassified from other comprehensive income (loss), net of taxes	26	(85)
Net current period other comprehensive income (loss), net of taxes	509	2,722
Balance at the end of the period, net of taxes	(7,405)	(3,498)
Unrealized Gains on Available-for-Sale Securities and I/O Strips
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(540)	1,090
Other comprehensive income before reclassification, net of taxes	490	2,807
Amounts reclassified from other comprehensive income (loss), net of taxes	4	(105)
Net current period other comprehensive income (loss), net of taxes	494	2,702
Balance at the end of the period, net of taxes	(46)	3,792
Unamortized Unrealized Gain on Available-for-Sale Securities Reclassified to Held-to-Maturity
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	336	403
Amounts reclassified from other comprehensive income (loss), net of taxes	(8)	(8)
Net current period other comprehensive income (loss), net of taxes	(8)	(8)
Balance at the end of the period, net of taxes	328	395
Defined Benefit Pension Plan Items
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(7,710)	(7,713)
Other comprehensive income before reclassification, net of taxes	(7)
Amounts reclassified from other comprehensive income (loss), net of taxes	30	28
Net current period other comprehensive income (loss), net of taxes	23	28
Balance at the end of the period, net of taxes	$ (7,687)	$ (7,685)

Accumulated Other Comprehensi40

Accumulated Other Comprehensive Income (Loss) (''AOCI'') - Amount Reclassified from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Amount Reclassified from AOCI
Realized gains on sale of securities	$ (6)	$ 180
Interest income on taxable securities	2,877	2,774
Income tax expense	(3,934)	(3,726)
Net income	6,538	6,106
Unrealized Gains on Available-for-Sale Securities and I/O Strips
Amount Reclassified from AOCI
Net of tax	(4)	105
Unrealized Gains on Available-for-Sale Securities and I/O Strips | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Realized gains on sale of securities	(6)	180
Income tax expense	2	(75)
Net income	(4)	105
Unamortized Unrealized Gain on Available-for-Sale Securities Reclassified to Held-to-Maturity
Amount Reclassified from AOCI
Net of tax	8	8
Unamortized Unrealized Gain on Available-for-Sale Securities Reclassified to Held-to-Maturity | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Interest income on taxable securities	13	14
Income tax expense	(5)	(6)
Net income	8	8
Defined Benefit Pension Plan Items
Amount Reclassified from AOCI
Net of tax	(30)	(28)
Defined Benefit Pension Plan Items | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Income before income tax	(51)	(47)
Income tax benefit	21	19
Net of tax	(30)	(28)
Prior transition obligation | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Income before income tax	18	13
Actuarial losses | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Income before income tax	(69)	(60)
Accumulated Other Comprehensive Income / (Loss)
Amount Reclassified from AOCI
Net of tax	(26)	85
Accumulated Other Comprehensive Income / (Loss) | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Net of tax	$ (26)	$ 85

Securities - Amortized Cost and

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Securities available-for-sale:
Amortized Cost	$ 342,726	$ 308,598
Gross Unrealized Gains	2,131	1,528
Gross Unrealized Losses	(3,267)	(3,537)
Estimated Fair Value	341,590	306,589
Agency mortgage-backed securities
Securities available-for-sale:
Amortized Cost	327,726	293,598
Gross Unrealized Gains	987	928
Gross Unrealized Losses	(3,267)	(3,537)
Estimated Fair Value	325,446	290,989
Trust preferred securities
Securities available-for-sale:
Amortized Cost	15,000	15,000
Gross Unrealized Gains	1,144	600
Estimated Fair Value	$ 16,144	$ 15,600

Securities - Amortized Cost a42

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Securities held-to-maturity:
Amortized Cost	$ 341,383	$ 324,010
Gross Unrealized Gains	666	536
Gross Unrealized Losses	(5,259)	(5,798)
Estimated Fair Value	336,790	318,748
Agency mortgage-backed securities
Securities held-to-maturity:
Amortized Cost	251,162	233,409
Gross Unrealized Gains	27	15
Gross Unrealized Losses	(3,302)	(3,554)
Estimated Fair Value	247,887	229,870
Municipals - exempt from Federal tax
Securities held-to-maturity:
Amortized Cost	90,221	90,601
Gross Unrealized Gains	639	521
Gross Unrealized Losses	(1,957)	(2,244)
Estimated Fair Value	$ 88,903	$ 88,878

Securities - Securities with Un

Securities - Securities with Unrealized Losses - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Available-for-sale, Fair Value
Less Than 12 Months	$ 277,201	$ 245,045
Total	277,201	245,045
Available-for-sale, Unrealized Losses
Less Than 12 Months	(3,267)	(3,537)
Total	(3,267)	(3,537)
Agency mortgage-backed securities
Available-for-sale, Fair Value
Less Than 12 Months	277,201	245,045
Total	277,201	245,045
Available-for-sale, Unrealized Losses
Less Than 12 Months	(3,267)	(3,537)
Total	$ (3,267)	$ (3,537)

Securities - Securities with 44

Securities - Securities with Unrealized Losses - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Held-to-maturity, Fair Value
Less Than 12 Months	$ 291,456	$ 279,436
12 Months or More	2,483	2,658
Total	293,939	282,094
Held-to-maturity, Unrealized Losses
Less Than 12 Months	(5,040)	(5,554)
12 Months or More	(219)	(244)
Total	(5,259)	(5,798)
Agency mortgage-backed securities
Held-to-maturity, Fair Value
Less Than 12 Months	236,241	222,132
12 Months or More	419	612
Total	236,660	222,744
Held-to-maturity, Unrealized Losses
Less Than 12 Months	(3,282)	(3,528)
12 Months or More	(20)	(26)
Total	(3,302)	(3,554)
Municipals - exempt from Federal tax
Held-to-maturity, Fair Value
Less Than 12 Months	55,215	57,304
12 Months or More	2,064	2,046
Total	57,279	59,350
Held-to-maturity, Unrealized Losses
Less Than 12 Months	(1,758)	(2,026)
12 Months or More	(199)	(218)
Total	(1,957)	$ (2,244)
Municipals - exempt from Federal tax
Held-to-maturity, Fair Value
12 Months or More	$ 2,064

Securities - Additional Informa

Securities - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)security	Dec. 31, 2016USD ($)
Additional Information
The number of holdings of securities of any one issuer other than the U.S. Government and its sponsored entities	0
Holdings of securities as percentage of shareholders' equity, considered as threshold for disclosure purpose	10.00%
Number of securities held	467
Number of available for sale securities held	158
Number of held to maturity securities held	309
Number of securities with fair values below amortized cost	312
Total unrealized loss for securities 12 months or more | $	$ 219
12 Months or More | $	2,483	$ 2,658
Municipals - exempt from Federal tax
Additional Information
12 Months or More | $	$ 2,064	$ 2,046

Securities - Proceeds from Sale

Securities - Proceeds from Sales of Securities and the Resulting Gains and Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Proceeds from Sales of Securities and the Resulting Gains and Losses
Proceeds	$ 6,536	$ 5,598
Gross gains		$ 180
Gross losses	$ (6)

Securities - Amortized Cost a47

Securities - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity – Securities Available-for-sale (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Available-for-sale, Amortized Cost
Due after ten years	$ 15,000
Agency mortgage-backed securities	327,726
Total	342,726
Available-for-sale, Estimated Fair Value
Due after ten years	16,144
Agency mortgage-backed securities	325,446
Estimated Fair Value	$ 341,590	$ 306,589

Securities - Amortized Cost a48

Securities - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity – Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Held-to-maturity, Amortized Cost
Due after 3 months through one year	$ 1,647
Due after one year through five years	3,451
Due after five years through ten years	18,077
Due after ten years	67,046
Agency mortgage-backed securities	251,162
Total	341,383	$ 324,010
Held-to-maturity, Estimated Fair Value
Due after 3 months through one year	1,651
Due after one year through five years	3,483
Due after five years through ten years	18,439
Due after ten years	65,330
Agency mortgage-backed securities	247,887
Estimated Fair Value	$ 336,790	$ 318,748

Loans -Loans Balance (Details)

Loans -Loans Balance (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Loans held-for-investment:
Total loan balance	$ 1,514,179	$ 1,503,367
Deferred loan fees, net	(892)	(760)
Loans, net of deferred fees	1,513,287	1,502,607	$ 1,395,264
Allowance for loan losses	(19,135)	(19,089)	(19,458)	$ (18,926)
Loans, net	1,494,152	1,483,518
Commercial
Loans held-for-investment:
Total loan balance	609,353	604,331
Allowance for loan losses	(11,252)	(10,656)	(11,279)	(10,748)
Real estate
Loans held-for-investment:
Total loan balance	891,019	878,576
Allowance for loan losses	(7,743)	(8,327)	(8,068)	(8,076)
Real estate | Commercial
Loans held-for-investment:
Total loan balance	679,989	662,228
Real estate | Land and construction
Loans held-for-investment:
Total loan balance	81,101	81,002
Real estate | Home equity
Loans held-for-investment:
Total loan balance	80,360	82,459
Real estate | Residential mortgages
Loans held-for-investment:
Total loan balance	49,569	52,887
Consumer
Loans held-for-investment:
Total loan balance	13,807	20,460
Allowance for loan losses	(140)	(106)	$ (111)	$ (102)
Focus Business Bank
Loans held-for-investment:
Non-PCI loans acquired	$ 82,819	$ 88,453

Loans - Changes in the Allowanc

Loans - Changes in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Changes in the Allowance for Loan Losses
Balance, beginning of period	$ 19,089	$ 18,926
Charge-offs	(366)	(117)
Recoveries	91	248
Net (charge-offs) recoveries	(275)	131
Provision (credit) for loan losses	321	401
Balance, end of period	19,135	19,458
Commercial
Changes in the Allowance for Loan Losses
Balance, beginning of period	10,656	10,748
Charge-offs	(366)	(117)
Recoveries	50	32
Net (charge-offs) recoveries	(316)	(85)
Provision (credit) for loan losses	912	616
Balance, end of period	11,252	11,279
Real estate
Changes in the Allowance for Loan Losses
Balance, beginning of period	8,327	8,076
Recoveries	41	216
Net (charge-offs) recoveries	41	216
Provision (credit) for loan losses	(625)	(224)
Balance, end of period	7,743	8,068
Consumer
Changes in the Allowance for Loan Losses
Balance, beginning of period	106	102
Provision (credit) for loan losses	34	9
Balance, end of period	$ 140	$ 111

Loans - Balance in the Allowanc

Loans - Balance in the Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment, Based on the Impairment Method (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Balance in the Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment, Based on the Impairment Method
Allowance for loan losses, Individually evaluated for impairment	$ 1,441	$ 329
Allowance for loan losses, Collectively evaluated for impairment	17,694	18,760
Total allowance balance	19,135	19,089	$ 19,458	$ 18,926
Loans, Individually evaluated for impairment	5,288	2,945
Loans, Collectively evaluated for impairment	1,508,646	1,500,177
Loans, Acquired with deteriorated credit quality	245	245
Loans and Leases Receivable, Gross	1,514,179	1,503,367
Commercial
Balance in the Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment, Based on the Impairment Method
Allowance for loan losses, Individually evaluated for impairment	1,441	329
Allowance for loan losses, Collectively evaluated for impairment	9,811	10,327
Total allowance balance	11,252	10,656	11,279	10,748
Loans, Individually evaluated for impairment	3,929	2,057
Loans, Collectively evaluated for impairment	605,179	602,029
Loans, Acquired with deteriorated credit quality	245	245
Loans and Leases Receivable, Gross	609,353	604,331
Real estate
Balance in the Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment, Based on the Impairment Method
Allowance for loan losses, Collectively evaluated for impairment	7,743	8,327
Total allowance balance	7,743	8,327	8,068	8,076
Loans, Individually evaluated for impairment	1,357	885
Loans, Collectively evaluated for impairment	889,662	877,691
Loans and Leases Receivable, Gross	891,019	878,576
Consumer
Balance in the Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment, Based on the Impairment Method
Allowance for loan losses, Collectively evaluated for impairment	140	106
Total allowance balance	140	106	$ 111	$ 102
Loans, Individually evaluated for impairment	2	3
Loans, Collectively evaluated for impairment	13,805	20,457
Loans and Leases Receivable, Gross	$ 13,807	$ 20,460

Loans - Loans Held for Investme

Loans - Loans Held for Investment Individually Evaluated for Impairment by Class of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016
Unpaid Principal Balance
Total with no related allowance recorded	$ 4,845	$ 3,574
Total with an allowance recorded	1,565	494
Total	6,410	4,068
Recorded Investment
Total with no related allowance recorded	3,968	2,696
Total with an allowance recorded	1,565	494
Total	5,533	3,190	$ 4,329
Total with an allowance recorded, Allowance for Loan Losses Allocated	1,441	329
Commercial
Unpaid Principal Balance
Total with no related allowance recorded	2,609	1,808
Total with an allowance recorded	1,565
Recorded Investment
Total with no related allowance recorded	2,609	1,808
Total with an allowance recorded	1,565	494
Total with an allowance recorded, Allowance for Loan Losses Allocated	1,441	329
Consumer
Unpaid Principal Balance
Total with no related allowance recorded	2	3
Recorded Investment
Total with no related allowance recorded	2	3
Commercial | Real estate
Unpaid Principal Balance
Total with no related allowance recorded	1,770	1,278
Recorded Investment
Total with no related allowance recorded	912	419
Land and construction | Real estate
Unpaid Principal Balance
Total with no related allowance recorded	214	218
Recorded Investment
Total with no related allowance recorded	195	199
Home equity | Real estate
Unpaid Principal Balance
Total with no related allowance recorded	250	267
Recorded Investment
Total with no related allowance recorded	$ 250	$ 267

Loans - Interest Recognized and

Loans - Interest Recognized and Cash Basis Interest Earned on Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	$ 4,362	$ 5,428
Commercial
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	3,239	1,343
Consumer
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	2	4
CRE | Real estate
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	665	2,951
Land and construction | Real estate
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	197	216
Home equity | Real estate
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	$ 259	$ 914

Loans - Nonperforming Loans (De

Loans - Nonperforming Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016
Nonaccrual loans	$ 5,200	$ 3,059	$ 4,184
Restructured and loans over 90 days past due and still accruing	207
Total nonperforming loans	5,407	3,059	4,184
Other restructured loans	126	131	145
Total	$ 5,533	$ 3,190	$ 4,329

Loans - Nonperforming Loans by

Loans - Nonperforming Loans by Class (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016
Nonperforming Loans by Class
Nonaccrual loans	$ 5,200	$ 3,059	$ 4,184
Restructured and Loans Over 90 Days Past Due and Still Accruing	207
Total	5,407	3,059	$ 4,184
Commercial
Nonperforming Loans by Class
Nonaccrual loans	3,841	2,171
Restructured and Loans Over 90 Days Past Due and Still Accruing	207
Total	4,048	2,171
Consumer
Nonperforming Loans by Class
Nonaccrual loans	2	3
Total	2	3
CRE | Real estate
Nonperforming Loans by Class
Nonaccrual loans	912	419
Total	912	419
Land and construction | Real estate
Nonperforming Loans by Class
Nonaccrual loans	195	199
Total	195	199
Home equity | Real estate
Nonperforming Loans by Class
Nonaccrual loans	250	267
Total	$ 250	$ 267

Loans - Aging of Past Due Loans

Loans - Aging of Past Due Loans by Class of Loans - Tabular Disclosure (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Aging of Past Due Loans by Class of Loans
Total Past Due	$ 6,095	$ 7,989
Loans Not Past Due	1,508,084	1,495,378
Total loan balance	1,514,179	1,503,367
30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	3,441	4,630
60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	506	1,124
90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	2,148	2,235
Commercial
Aging of Past Due Loans by Class of Loans
Total Past Due	5,391	6,891
Loans Not Past Due	603,962	597,440
Total loan balance	609,353	604,331
Commercial | 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	2,932	3,998
Commercial | 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	506	857
Commercial | 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	1,953	2,036
Real estate
Aging of Past Due Loans by Class of Loans
Total loan balance	891,019	878,576
Consumer
Aging of Past Due Loans by Class of Loans
Loans Not Past Due	13,807	20,460
Total loan balance	13,807	20,460
Commercial | Real estate
Aging of Past Due Loans by Class of Loans
Total Past Due		632
Loans Not Past Due		661,596
Total loan balance	679,989	662,228
Commercial | Real estate | 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due		632
CRE | Real estate
Aging of Past Due Loans by Class of Loans
Total Past Due	509
Loans Not Past Due	679,480
Total loan balance	679,989	662,228
CRE | Real estate | 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	509
Land and construction | Real estate
Aging of Past Due Loans by Class of Loans
Total Past Due	195	199
Loans Not Past Due	80,906	80,803
Total loan balance	81,101	81,002
Land and construction | Real estate | 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	195	199
Home equity | Real estate
Aging of Past Due Loans by Class of Loans
Total Past Due		267
Loans Not Past Due	80,360	82,192
Total loan balance	80,360	82,459
Home equity | Real estate | 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due		267
Residential mortgages | Real estate
Aging of Past Due Loans by Class of Loans
Loans Not Past Due	49,569	52,887
Total loan balance	$ 49,569	$ 52,887

Loans - Aging of Past Due Loa57

Loans - Aging of Past Due Loans by Class of Loans - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016
Aging of Past Due Loans by Class of Loans
Past due loans 30 day or greater	$ 6,095	$ 7,989
Nonaccrual loans	5,200	3,059	$ 4,184
30 days or greater past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans	1,977	2,057
Less than 30 days past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans	$ 3,223	$ 1,002

Loans - Credit Quality Indicato

Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Loans
Balance to report	$ 1,494,152	$ 1,483,518
Loan classified as loss
Loans
Balance to report	$ 0	$ 0

Loans - Summary of the Loan Por

Loans - Summary of the Loan Portfolio by Loan Type and Credit Quality Classification (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Loans
Total	$ 1,514,179	$ 1,503,367
Nonclassified
Loans
Total	1,503,993	1,490,043
Classified
Loans
Total	10,186	13,324
Commercial
Loans
Total	609,353	604,331
Commercial | Nonclassified
Loans
Total	601,657	594,255
Commercial | Classified
Loans
Total	7,696	10,076
Real estate
Loans
Total	891,019	878,576
Consumer
Loans
Total	13,807	20,460
Consumer | Nonclassified
Loans
Total	13,805	20,455
Consumer | Classified
Loans
Total	2	5
Commercial | Real estate
Loans
Total	679,989	662,228
CRE | Real estate
Loans
Total	679,989	662,228
CRE | Real estate | Nonclassified
Loans
Total	678,268	659,777
CRE | Real estate | Classified
Loans
Total	1,721	2,451
Land and construction | Real estate
Loans
Total	81,101	81,002
Land and construction | Real estate | Nonclassified
Loans
Total	80,906	80,803
Land and construction | Real estate | Classified
Loans
Total	195	199
Home equity | Real estate
Loans
Total	80,360	82,459
Home equity | Real estate | Nonclassified
Loans
Total	79,788	81,866
Home equity | Real estate | Classified
Loans
Total	572	593
Residential mortgages | Real estate
Loans
Total	49,569	52,887
Residential mortgages | Real estate | Nonclassified
Loans
Total	$ 49,569	$ 52,887

Loans - Troubled Debt Restructu

Loans - Troubled Debt Restructurings (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Loans
Recorded investment of troubled debt restructurings	$ 128	$ 133
Troubled debt restructurings, nonaccrual loans	2	2
Troubled debt restructurings, accruing loans	126	131
Specific reserves	2
Additional amount of loan classified as a troubled debt restructurings	$ 0	$ 0

Loans - Troubled Debt Restruc61

Loans - Troubled Debt Restructurings by Class (Details) - contract	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Loans
Number of Contracts	0	0

Loans - Defaults on Troubled De

Loans - Defaults on Troubled Debt Restructurings (Details) - item	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Loans
Default period contractually past due under modified terms (in days)	30 days
Number of defaults on troubled debt restructurings	0	0
Period of consecutive payments (in months)	6 months

Goodwill and Other Intangible63

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016
Goodwill
Goodwill	$ 45,664	$ 45,664	$ 45,664
BVF/CSNK
Goodwill
Goodwill acquired	13,044
Focus Business Bank
Goodwill
Goodwill acquired	$ 32,620

Goodwill and Other Intangible64

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands	Aug. 20, 2015	Nov. 01, 2014	Jun. 30, 2007	Mar. 31, 2017	Dec. 31, 2016
Diablo Valley Bank
Other Intangible Assets
Accumulated amortization				$ 4,903	$ 4,854
Diablo Valley Bank | Core deposit
Other Intangible Assets
Intangible assets acquired			$ 5,049
Useful life, amortization period			10 years
Focus Business Bank | Core deposit
Other Intangible Assets
Intangible assets acquired	$ 6,285
Accumulated amortization				1,338	1,120
Useful life, amortization period	10 years
BVF/CSNK
Other Intangible Assets
Accumulated amortization				$ 746	$ 669
BVF/CSNK | Below market-value lease
Other Intangible Assets
Intangible assets acquired		$ 109
Useful life, amortization period		3 years
BVF/CSNK | Customer relationship and brokered relationship
Other Intangible Assets
Intangible assets acquired		$ 1,900
Useful life, amortization period		10 years
BVF/CSNK | Non-compete agreement
Other Intangible Assets
Intangible assets acquired		$ 250
Useful life, amortization period		3 years

Goodwill and Other Intangible65

Goodwill and Other Intangible Assets - Estimated Amortization Expense (Details) $ in Thousands	Mar. 31, 2017USD ($)
Estimated Amortization Expense
2,017	$ 1,361
2,018	965
2,019	924
2,020	906
2,021	786
2,022	692
Total	5,634
Diablo Valley Bank | Core deposit
Estimated Amortization Expense
2,017	195
Total	195
Focus Business Bank | Core deposit
Estimated Amortization Expense
2,017	875
2,018	775
2,019	734
2,020	716
2,021	596
2,022	502
Total	4,198
BVF/CSNK | Below market-value lease
Estimated Amortization Expense
2,017	31
Total	31
BVF/CSNK | Customer relationship and brokered relationship
Estimated Amortization Expense
2,017	190
2,018	190
2,019	190
2,020	190
2,021	190
2,022	190
Total	1,140
BVF/CSNK | Non-compete agreement
Estimated Amortization Expense
2,017	70
Total	$ 70

Goodwill and Other Intangible66

Goodwill and Other Intangible Assets - Impairment of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Impairment of Intangible Assets
Impairment of intangible assets	$ 0	$ 0

Income Taxes - Net Deferred Tax

Income Taxes - Net Deferred Tax Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Net deferred tax assets
Net deferred tax assets	$ 22,500	$ 25,058

Income Taxes - Carry Amounts of

Income Taxes - Carry Amounts of the Low Income Housing Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Income Taxes
Low income housing investments	$ 3,756	$ 3,880
Future commitments	$ 365	$ 365

Income Taxes - Future Commitmen

Income Taxes - Future Commitments of the Low Income Housing Investments (Details) - Low income housing investments $ in Thousands	Mar. 31, 2017USD ($)
Future Commitments
2,017	$ 68
2,018	14
2019 through 2023	$ 283

Income Taxes - Components of Lo

Income Taxes - Components of Low Income Housing Investment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Taxes
Low income housing tax credits	$ 110	$ 111
Low income housing investment losses	$ 115	$ 117

Benefit Plans - Defined Benefit

Benefit Plans - Defined Benefit Plans - Nonqualified Defined Benefit Pension Plan (Details) $ in Thousands	Mar. 31, 2017USD ($)
Supplemental Retirement Plan
Supplemental Retirement Plan
Plan assets associated with the plan	$ 0

Benefit Plans - Defined Benef72

Benefit Plans - Defined Benefit Plans - Components of Pension Cost (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Supplemental Retirement Plan
Components of net periodic benefit cost:
Service cost	$ 81	$ 133
Interest cost	259	259
Amortization of net actuarial loss	69	60
Net periodic benefit cost	409	452
Split-Dollar Life Insurance Benefit Plan
Components of net periodic benefit cost:
Amortization of prior transition obligation	(18)	(13)
Interest cost	61	62	$ 248
Net periodic benefit cost	$ 43	$ 49

Benefit Plans - Defined Benef73

Benefit Plans - Defined Benefit Plans - Change in Projected Benefit Obligation (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Split-Dollar Life Insurance Benefit Plan
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$ 6,301	$ 6,215	$ 6,215
Actuarial gain			(162)
Interest cost	61	62	248
Projected benefit obligation at end of period	6,362		$ 6,301
Supplemental Retirement Plan
Change in projected benefit obligation:
Service cost	81	133
Interest cost	$ 259	$ 259

Benefit Plans - Defined Benef74

Benefit Plans - Defined Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - Split-Dollar Life Insurance Benefit Plan - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Amounts Recognized in Accumulated Other Comprehensive Loss
Net actuarial loss	$ 2,166	$ 2,126
Prior transition obligation	1,306	1,328
Accumulated other comprehensive loss	$ 3,472	$ 3,454

Fair Value - Financial Assets a

Fair Value - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	$ 341,590	$ 306,589
I/O strip receivables	1,045	1,067
Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	325,446	290,989
Trust preferred securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	16,144	15,600
Significant Other Observable Inputs (Level 2)
Financial Assets and Liabilities Measured on a Recurring Basis
I/O strip receivables	1,045	1,067
Significant Other Observable Inputs (Level 2) | Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	325,446	290,989
Significant Other Observable Inputs (Level 2) | Trust preferred securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	16,144	15,600
Recurring basis
Transfers between Level 1 and Level 2
Transfers between Level 1 and Level 2	0	0
Transfers between Level 2 and Level 1	$ 0	$ 0

Fair Value - Financial Assets76

Fair Value - Financial Assets and Liabilities Measured on a Non-Recurring Basis (Details) - Non-recurring basis - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	$ 718	$ 783
Foreclosed Assets Fair Value Disclosure	183	229
Significant Unobservable Inputs (Level 3)
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	718	783
Foreclosed Assets Fair Value Disclosure	183	229
Commercial | Commercial
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	125	165
Commercial | Commercial | Significant Unobservable Inputs (Level 3)
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	125	165
Land and construction
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Foreclosed Assets Fair Value Disclosure	183	229
Land and construction | Significant Unobservable Inputs (Level 3)
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Foreclosed Assets Fair Value Disclosure	183	229
Land and construction | Real estate
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	195	199
Land and construction | Real estate | Significant Unobservable Inputs (Level 3)
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	195	199
CRE | Real estate
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	398	419
CRE | Real estate | Significant Unobservable Inputs (Level 3)
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	$ 398	$ 419

Fair Value - Impaired Loans Hel

Fair Value - Impaired Loans Held-for-investment - Tabular Disclosure (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Impaired Loans Held-for-investment
Impaired loans held-for-investment	$ 5,533	$ 3,190
Carried at fair value
Impaired Loans Held-for-investment
Impaired loans held-for-investment	2,159	1,112
Specific valuation allowance	(1,441)	(329)
Impaired loans held-for-investment carried at fair value, net	718	783
Portion carried at cost
Impaired Loans Held-for-investment
Impaired loans held-for-investment	$ 3,374	$ 2,078

Fair Value - Impaired Loans H78

Fair Value - Impaired Loans Held-for-investment - Additional Disclosures (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Impaired Loans Held-for-investment
Impaired loans held-for-investment	$ 5,533	$ 3,190
Additional provision (credit) for loan losses	1,170	320
Valuation allowance on foreclosed assets	0	0
Partial charge-offs		0
Carrying amount
Impaired Loans Held-for-investment
Foreclosed assets	183	229
Carried at fair value
Impaired Loans Held-for-investment
Impaired loans held-for-investment	2,159	1,112
Specific valuation allowance	1,441	329
Portion carried at cost
Impaired Loans Held-for-investment
Impaired loans held-for-investment	$ 3,374	$ 2,078

Fair Value - Quantitative Infor

Fair Value - Quantitative Information about Level 3 Fair Value Measurements (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Non-recurring basis
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Impaired loans - held-for-investment, Fair Value	$ 718	$ 783
Non-recurring basis | Significant Unobservable Inputs (Level 3)
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Impaired loans - held-for-investment, Fair Value	$ 718	783
Commercial | Non-recurring basis | Significant Unobservable Inputs (Level 3) | Market Approach
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Impaired loans - held-for-investment, Fair Value		$ 165
Commercial | Non-recurring basis | Significant Unobservable Inputs (Level 3) | Market Approach | Maximum
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Discount adjustment for differences between comparable sales (as a percent)	1.00%	1.00%
Foreclosed Assets | Significant Unobservable Inputs (Level 3) | Foreclosed assets - land and construction | Market Approach
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Impaired loans - held-for-investment, Fair Value	$ 183
Foreclosed Assets | Non-recurring basis | Significant Unobservable Inputs (Level 3) | Foreclosed assets - commercial | Market Approach | Minimum
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Discount adjustment for differences between comparable sales (as a percent)	0.00%	0.00%
Foreclosed Assets | Non-recurring basis | Significant Unobservable Inputs (Level 3) | Foreclosed assets - commercial | Market Approach | Maximum
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Discount adjustment for differences between comparable sales (as a percent)		2.00%
Foreclosed Assets | Non-recurring basis | Significant Unobservable Inputs (Level 3) | Foreclosed assets - land and construction | Market Approach
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Impaired loans - held-for-investment, Fair Value		$ 229
Foreclosed Assets | Non-recurring basis | Significant Unobservable Inputs (Level 3) | Foreclosed assets - land and construction | Market Approach | Maximum
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Discount adjustment for differences between comparable sales (as a percent)	2.00%
Foreclosed Assets | Non-recurring basis | Significant Unobservable Inputs (Level 3) | Foreclosed assets - land and construction | Market Approach | Weighted average
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Discount adjustment for differences between comparable sales (as a percent)	2.00%
Commercial | Commercial | Significant Unobservable Inputs (Level 3) | Market Approach
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Impaired loans - held-for-investment, Fair Value	$ 125
Commercial | Commercial | Non-recurring basis
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Impaired loans - held-for-investment, Fair Value	125	165
Commercial | Commercial | Non-recurring basis | Significant Unobservable Inputs (Level 3)
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Impaired loans - held-for-investment, Fair Value	$ 125	165
Commercial | Real estate | Non-recurring basis | Significant Unobservable Inputs (Level 3) | Market Approach
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Impaired loans - held-for-investment, Fair Value		$ 419
Commercial | Real estate | Non-recurring basis | Significant Unobservable Inputs (Level 3) | Market Approach | Minimum
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Discount adjustment for differences between comparable sales (as a percent)		0.00%
Commercial | Real estate | Non-recurring basis | Significant Unobservable Inputs (Level 3) | Market Approach | Maximum
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Discount adjustment for differences between comparable sales (as a percent)		3.00%
Commercial | Real estate | Non-recurring basis | Significant Unobservable Inputs (Level 3) | Market Approach | Weighted average
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Discount adjustment for differences between comparable sales (as a percent)		3.00%
Commercial | Foreclosed Assets | Non-recurring basis | Significant Unobservable Inputs (Level 3) | Foreclosed assets - commercial | Market Approach | Weighted average
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Discount adjustment for differences between comparable sales (as a percent)		2.00%
Land and construction | Non-recurring basis | Significant Unobservable Inputs (Level 3) | Market Approach | Maximum
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Discount adjustment for differences between comparable sales (as a percent)	1.00%
Land and construction | Real estate | Significant Unobservable Inputs (Level 3) | Market Approach
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Impaired loans - held-for-investment, Fair Value	$ 195
Land and construction | Real estate | Non-recurring basis
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Impaired loans - held-for-investment, Fair Value	195	$ 199
Land and construction | Real estate | Non-recurring basis | Significant Unobservable Inputs (Level 3)
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Impaired loans - held-for-investment, Fair Value	195	199
Land and construction | Real estate | Non-recurring basis | Significant Unobservable Inputs (Level 3) | Market Approach
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Impaired loans - held-for-investment, Fair Value		$ 199
Land and construction | Real estate | Non-recurring basis | Significant Unobservable Inputs (Level 3) | Market Approach | Maximum
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Discount adjustment for differences between comparable sales (as a percent)		1.00%
CRE | Real estate | Significant Unobservable Inputs (Level 3) | Market Approach
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Impaired loans - held-for-investment, Fair Value	398
CRE | Real estate | Non-recurring basis
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Impaired loans - held-for-investment, Fair Value	398	$ 419
CRE | Real estate | Non-recurring basis | Significant Unobservable Inputs (Level 3)
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Impaired loans - held-for-investment, Fair Value	$ 398	$ 419
CRE | Real estate | Non-recurring basis | Significant Unobservable Inputs (Level 3) | Market Approach | Minimum
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Discount adjustment for differences between comparable sales (as a percent)	0.00%
CRE | Real estate | Non-recurring basis | Significant Unobservable Inputs (Level 3) | Market Approach | Maximum
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Discount adjustment for differences between comparable sales (as a percent)	3.00%
CRE | Real estate | Non-recurring basis | Significant Unobservable Inputs (Level 3) | Market Approach | Weighted average
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Discount adjustment for differences between comparable sales (as a percent)	3.00%

Fair Value - Carrying Amounts a

Fair Value - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets
Securities available-for-sale	$ 341,590	$ 306,589
Securities held-to-maturity	336,790	318,748
I/O strips receivables	1,045	1,067
Significant Other Observable Inputs (Level 2)
Assets
I/O strips receivables	1,045	1,067
Carrying amount
Assets
Cash and cash equivalents	287,846	266,103
Securities available-for-sale	341,590	306,589
Securities held-to-maturity	341,383	324,010
Loans (including loans held-for-sale), net	1,498,063	1,489,223
FHLB and FRB stock and other investments	15,203	15,196
Accrued interest receivable	7,127	6,859
I/O strips receivables	1,045	1,067
Liabilities
Time deposits	224,953	224,717
Other deposits	2,105,134	2,037,423
Accrued interest payable	148	168
Carried at fair value
Assets
Cash and cash equivalents	287,846	266,103
Securities available-for-sale	341,590	306,589
Securities held-to-maturity	336,790	318,748
Loans (including loans held-for-sale), net	1,541,322	1,541,190
Accrued interest receivable	7,127	6,859
I/O strips receivables	1,045	1,067
Liabilities
Time deposits	225,297	225,047
Other deposits	2,105,134	2,037,423
Accrued interest payable	148	168
Carried at fair value | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash and cash equivalents	287,846	266,103
Carried at fair value | Significant Other Observable Inputs (Level 2)
Assets
Securities available-for-sale	341,590	306,589
Securities held-to-maturity	336,790	318,748
Loans (including loans held-for-sale), net	3,911	5,705
Accrued interest receivable	2,310	1,961
I/O strips receivables	1,045	1,067
Liabilities
Time deposits	225,297	225,047
Other deposits	2,105,134	2,037,423
Accrued interest payable	148	168
Carried at fair value | Significant Unobservable Inputs (Level 3)
Assets
Loans (including loans held-for-sale), net	1,537,411	1,535,485
Accrued interest receivable	$ 4,817	$ 4,898

Equity Plan - General Disclosur

Equity Plan - General Disclosures (Details)	3 Months Ended
	Mar. 31, 2017shares
Equity Plan
Number of equity awards issued (in shares)	0
2013 Plan
Equity Plan
Number of shares available for future grants	606,936
Options
Equity Plan
Vesting period	4 years
Options | Maximum
Equity Plan
Expiration term	10 years

Equity Plan - Stock Option Acti

Equity Plan - Stock Option Activity (Details) - Options $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares
Number of Shares
Outstanding at the beginning of the period (in shares)	1,719,091
Exercised (in shares)	(52,586)
Forfeited or expired (in shares)	(13,291)
Outstanding at the end of the period (in shares)	1,653,214
Vested or expected to vest (in shares)	1,554,021
Exercisable at the end of the period (in shares)	1,226,386
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) | $ / shares	$ 9.79
Exercised (in dollars per share) | $ / shares	6.94
Forfeited or expired (in dollars per share) | $ / shares	19.38
Outstanding at the end of the period (in dollars per share) | $ / shares	$ 9.81
Additional Information
Weighted Average Remaining Contractual Life - Outstanding at the end of the period (in years)	5 years 8 months 27 days
Weighted Average Remaining Contractual Life - Vested or expected to vest (in years)	5 years 8 months 27 days
Weighted Average Remaining Contractual Life - Exercisable at the end of the period (in years)	4 years 9 months 22 days
Aggregate Intrinsic Value - Outstanding at the end of the period (in dollars) | $	$ 8,627,192
Aggregate Intrinsic Value - Vested or expected to vest (in dollars) | $	8,109,560
Aggregate Intrinsic Value - Exercisable at the end of the period (in dollars) | $	$ 6,728,248

Equity Plan - Unrecognized Comp

Equity Plan - Unrecognized Compensation Cost - Nonvested Stock Options (Details) - Options $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 1,164
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 4 months 21 days

Equity Plan - Restricted Stock

Equity Plan - Restricted Stock Activity (Details) - Restricted stock	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Number of Shares
Nonvested shares at the beginning of the period (in shares) | shares	199,503
Granted (in shares) | shares	2,376
Vested (in shares) | shares	(9,752)
Forfeited or expired (in shares) | shares	(884)
Nonvested shares at the end of the period (in shares) | shares	191,243
Weighted Average Grant Date Fair Value
Nonvested shares at the beginning of the period (in dollars per share) | $ / shares	$ 9.74
Granted (in dollars per share) | $ / shares	10.16
Vested (in dollars per share) | $ / shares	9.20
Forfeited or expired (in dollars per share) | $ / shares	9.36
Nonvested shares at the end of the period (in dollars per share) | $ / shares	$ 9.78

Equity Plan - Unrecognized Co85

Equity Plan - Unrecognized Compensation Cost - Nonvested Restricted Stock Awards (Details) - Restricted stock $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested restricted stock awards	$ 1,322
Expected weighted-average period for recognition of compensation costs related to nonvested restricted stock awards	2 years 4 months 6 days

Capital Requirements - General

Capital Requirements - General Information (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Capital Requirements
Capital conservation buffer (as a percent)	1.25%	0.625%
HBC (Wholly-owned Subsidiary)
Capital Requirements
Capital conservation buffer (as a percent)	1.25%	0.625%

Capital Requirements - Tabular

Capital Requirements - Tabular Disclosure (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Total Capital (to risk-weighted assets)
Actual, Amount	$ 237,859	$ 234,629
Required For Capital Adequacy Purposes, Amount	$ 176,649	$ 161,868
Actual, Ratio (as a percent)	12.50%	12.50%
Required For Capital Adequacy Purposes, Ratio (as a percent)	9.25%	8.625%
Capital conservation buffer (as a percent)	1.25%	0.625%
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 218,099	$ 214,924
Required For Capital Adequacy Purposes, Amount	$ 138,455	$ 124,333
Actual, Ratio (as a percent)	11.40%	11.50%
Required For Capital Adequacy Purposes, Ratio (as a percent)	7.25%	6.625%
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 218,099	$ 214,924
Required For Capital Adequacy Purposes, Amount	$ 109,809	$ 96,183
Actual, Ratio (as a percent)	11.40%	11.50%
Required For Capital Adequacy Purposes, Ratio (as a percent)	5.75%	5.125%
Tier 1 Capital (to average assets)
Actual, Amount	$ 218,099	$ 214,924
Required For Capital Adequacy Purposes, Amount	$ 101,321	$ 100,625
Actual, Ratio (as a percent)	8.60%	8.50%
Required For Capital Adequacy Purposes, Ratio (as a percent)	4.00%	4.00%
HBC (Wholly-owned Subsidiary)
Total Capital (to risk-weighted assets)
Actual, Amount	$ 233,741	$ 231,069
To Be Well Capitalized Under Regulatory Requirements, Amount	190,904	187,602
Required For Capital Adequacy Purposes, Amount	$ 176,586	$ 161,807
Actual, Ratio (as a percent)	12.20%	12.30%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	10.00%	10.00%
Required For Capital Adequacy Purposes, Ratio (as a percent)	9.25%	8.625%
Capital conservation buffer (as a percent)	1.25%	0.625%
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 213,981	$ 211,364
To Be Well Capitalized Under Regulatory Requirements, Amount	152,723	150,082
Required For Capital Adequacy Purposes, Amount	$ 138,405	$ 124,287
Actual, Ratio (as a percent)	11.20%	11.30%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	8.00%	8.00%
Required For Capital Adequacy Purposes, Ratio (as a percent)	7.25%	6.625%
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 213,981	$ 211,364
To Be Well Capitalized Under Regulatory Requirements, Amount	124,088	121,942
Required For Capital Adequacy Purposes, Amount	$ 109,770	$ 96,146
Actual, Ratio (as a percent)	11.20%	11.30%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	6.50%	6.50%
Required For Capital Adequacy Purposes, Ratio (as a percent)	5.75%	5.125%
Tier 1 Capital (to average assets)
Actual, Amount	$ 213,981	$ 211,364
To Be Well Capitalized Under Regulatory Requirements, Amount	126,620	125,746
Required For Capital Adequacy Purposes, Amount	$ 101,296	$ 100,597
Actual, Ratio (as a percent)	8.40%	8.40%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	5.00%	5.00%
Required For Capital Adequacy Purposes, Ratio (as a percent)	4.00%	4.00%

Capital Requirements - Dividend

Capital Requirements - Dividends to Parent (Details) - HCC (Parent) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Cash dividend
Cash dividend available	$ 29,260
Dividends paid to parent company	$ 4,000

Noninterest Expense (Details)

Noninterest Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Noninterest Expense
Salaries and employee benefits	$ 9,486	$ 8,947
Professional fees	1,071	825
Occupancy and equipment	1,068	1,085
Software subscriptions	417	341
Data processing	383	400
Insurance expense	352	299
Amortization of intangible assets	345	392
FDIC deposit insurance premiums	297	331
Other	1,909	2,065
Total noninterest expense	$ 15,328	$ 14,685

Business Segment Information -

Business Segment Information - Business Segments (Details)	3 Months Ended
	Mar. 31, 2017segmentitem
Business Segment Information
Number of business segments | segment	2
Focus Business Bank
Business Segment Information
Number of business segments | item	2

Business Segment Information 91

Business Segment Information - Operating Statements (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Operating Income
Interest income	$ 24,697	$ 23,062
Total interest expense	871	758
Net interest income	23,826	22,304
Provision for loan losses	321	401
Net interest income after provision	23,505	21,903
Noninterest income	2,295	2,614
Noninterest expense	15,328	14,685
Income before income taxes	10,472	9,832
Income tax expense	3,934	3,726
Net income	6,538	6,106
Total assets	2,641,791	2,327,333	$ 2,570,880
Loans, net of deferred fees	1,513,287	1,395,264	1,502,607
Goodwill	45,664	45,664	$ 45,664
Banking
Operating Income
Interest income	21,969	20,208
Intersegment interest allocations	260	245
Total interest expense	871	758
Net interest income	21,358	19,695
Provision for loan losses	311	387
Net interest income after provision	21,047	19,308
Noninterest income	2,115	2,412
Noninterest expense	13,579	13,052
Intersegment expense allocations	133	175
Income before income taxes	9,716	8,843
Income tax expense	3,616	3,310
Net income	6,100	5,533
Total assets	2,584,288	2,271,411
Loans, net of deferred fees	1,470,450	1,353,315
Goodwill	32,620	32,620
Factoring
Operating Income
Interest income	2,728	2,854
Intersegment interest allocations	(260)	(245)
Net interest income	2,468	2,609
Provision for loan losses	10	14
Net interest income after provision	2,458	2,595
Noninterest income	180	202
Noninterest expense	1,749	1,633
Intersegment expense allocations	(133)	(175)
Income before income taxes	756	989
Income tax expense	318	416
Net income	438	573
Total assets	57,503	55,922
Loans, net of deferred fees	42,837	41,949
Goodwill	$ 13,044	$ 13,044

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Apr. 27, 2017	Mar. 31, 2017	Mar. 31, 2016
Common stock
Quarterly cash dividends declared to holders of common stock		$ 0.10	$ 0.09
Subsequent Event
Common stock
Quarterly cash dividends declared to holders of common stock	$ 0.10