Heritage Commerce (HTBK) 10-Q 8 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018
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, 2018
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		40,159,752
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 30,454	$ 31,681
Other investments and interest-bearing deposits in other financial institutions	271,535	284,541
Total cash and cash equivalents	301,989	316,222
Securities available-for-sale, at fair value	344,766	391,852
Securities held-to-maturity, at amortized cost (fair value of $383,637 at March 31, 2018 and $394,292 at December 31, 2017)	395,274	398,341
Loans held-for-sale - SBA, at lower of cost or fair value, including deferred costs	2,859	3,419
Loans, net of deferred fees	1,591,201	1,582,667
Allowance for loan losses	(20,139)	(19,658)
Loans, net	1,571,062	1,563,009
Federal Home Loan Bank and Federal Reserve Bank stock and other investments, at cost	17,917	17,911
Company-owned life insurance	61,177	60,814
Premises and equipment, net	7,203	7,353
Goodwill	45,664	45,664
Other intangible assets	5,348	5,589
Accrued interest receivable and other assets	32,289	33,278
Total assets	2,785,548	2,843,452
Deposits:
Demand, noninterest-bearing	975,846	989,753
Demand, interest-bearing	621,402	601,929
Savings and money market	688,217	684,131
Time deposits - under $250	49,861	51,710
Time deposits - $250 and over	71,446	138,634
CDARS - interest-bearing demand, money market and time deposits	15,420	16,832
Total deposits	2,422,192	2,482,989
Subordinated debt, net of issuance costs	39,229	39,183
Accrued interest payable and other liabilities	53,136	50,041
Total liabilities	2,514,557	2,572,213
Shareholders' equity:
Preferred stock, no par value; 10,000,000 shares authorized; none issued and outstanding at March 31, 2018 and December 31, 2017
Common stock, no par value; 60,000,000 shares authorized; 38,269,789 shares issued and outstanding at March 31, 2018 and 38,200,883 shares issued and outstanding at December 31, 2017	219,208	218,355
Retained earnings	66,739	62,136
Accumulated other comprehensive loss	(14,956)	(9,252)
Total shareholders' equity	270,991	271,239
Total liabilities and shareholders' equity	$ 2,785,548	$ 2,843,452

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Securities held-to-maturity
Securities held-to-maturity, fair value (in dollars)	$ 383,637	$ 394,292
Preferred stock
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, outstanding (in shares)	0	0
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	38,269,789	38,200,883
Common stock, shares outstanding	38,269,789	38,200,883

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Interest income:
Loans, including fees	$ 22,284	$ 20,398
Securities, taxable	3,862	2,877
Securities, exempt from Federal tax	560	566
Other investments and interest-bearing deposits in other financial institutions	1,171	856
Total interest income	27,877	24,697
Interest expense:
Deposits	958	871
Subordinated debt	571
Total interest expense	1,529	871
Net interest income before provision for loan losses	26,348	23,826
Provision for loan losses	506	321
Net interest income after provision for loan losses	25,842	23,505
Noninterest income:
Service charges and fees on deposit accounts	902	740
Increase in cash surrender value of life insurance	363	422
Gain on sales of SBA loans	235	324
Servicing income	181	285
Gain (loss) on sales of securities	87	(6)
Other	427	530
Total noninterest income	2,195	2,295
Noninterest expense:
Salaries and employee benefits	9,777	9,486
Occupancy and equipment	1,106	1,068
Professional fees	684	1,071
Other	4,423	3,703
Total noninterest expense	15,990	15,328
Income before income taxes	12,047	10,472
Income tax expense	3,238	3,934
Net income	$ 8,809	$ 6,538
Earnings per common share:
Basic (in dollars per share)	$ 0.23	$ 0.17
Diluted (in dollars per share)	$ 0.23	$ 0.17

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 8,809	$ 6,538
Other comprehensive income:
Change in net unrealized holding gains on available-for-sale securities and I/O strips	(7,985)	845
Deferred income taxes	2,315	(355)
Change in net unamortized unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity	(11)	(13)
Deferred income taxes	3	5
Reclassification adjustment for losses (gains) realized in income	(87)	6
Deferred income taxes	26	(2)
Change in unrealized gains on securities and I/O strips, net of deferred income taxes	(5,739)	486
Change in net pension and other benefit plan liability adjustment	50	39
Deferred income taxes	(15)	(16)
Change in pension and other benefit plan liability, net of deferred income taxes	35	23
Other comprehensive (loss) income	(5,704)	509
Total comprehensive income	$ 3,105	$ 7,047

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income / (Loss)	Total
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 loss			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
Balance at Dec. 31, 2017	$ 218,355	62,136	(9,252)	271,239
Balance (in shares) at Dec. 31, 2017	38,200,883
Increase (Decrease) in Shareholders' Equity
Net income		8,809		8,809
Other comprehensive loss			(5,704)	(5,704)
Amortization of restricted stock awards, net of forfeitures and taxes	$ 228			228
Cash dividend declared		(4,206)		(4,206)
Stock option expense, net of forfeitures and taxes	176			176
Stock options exercised	$ 449			449
Stock options exercised (in shares)	68,906
Balance at Mar. 31, 2018	$ 219,208	$ 66,739	$ (14,956)	$ 270,991
Balance (in shares) at Mar. 31, 2018	38,269,789

CONSOLIDATED STATEMENTS OF CHA7

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
Cash dividend declared per share (in dollars per share)	$ 0.11	$ 0.10

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 8,809	$ 6,538
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of discounts and premiums on securities	1,131	1,066
(Gain) loss on sale of securities available-for-sale	(87)	6
Gain on sale of SBA loans	(235)	(324)
Proceeds from sale of SBA loans originated for sale	3,041	4,103
Net change in SBA loans originated for sale	(2,246)	(3,861)
Provision for loan losses	506	321
Increase in cash surrender value of life insurance	(363)	(422)
Depreciation and amortization	196	190
Amortization of other intangible assets	241	345
Stock option expense, net	176	216
Amortization of restricted stock awards, net	228	221
Amortization of subordinated debt issuance costs	46
Effect of changes in:
Accrued interest receivable and other assets	3,288	5,057
Accrued interest payable and other liabilities	(2,297)	(1,052)
Net cash provided by operating activities	12,434	12,404
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of securities available-for-sale	(15,193)	(47,296)
Purchase of securities held-to-maturity	(5,022)	(27,736)
Maturities/paydowns/calls of securities available-for-sale	14,957	12,740
Maturities/paydowns/calls of securities held-to-maturity	13,002	9,876
Proceeds from sales of securities available-for-sale	38,754	6,536
Net change in loans	(8,559)	(9,079)
Changes in Federal Home Loan Bank stock and other investments	(6)	(7)
Purchase of premises and equipment	(46)	(212)
Net cash provided by (used in) investing activities	37,887	(55,178)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits	(60,797)	67,947
Exercise of stock options	449	365
Payment of cash dividends	(4,206)	(3,795)
Net cash provided by financing activities	(64,554)	64,517
Net increase (decrease) in cash and cash equivalents	(14,233)	21,743
Cash and cash equivalents, beginning of year	316,222	266,103
Cash and cash equivalents, end of year	301,989	287,846
Supplemental disclosures of cash flow information:
Interest paid	977	891
Income taxes paid	4	3
Supplemental schedule of non-cash investing activity:
Due to broker for securities purchased	$ 5,439
Transfer of loans held-for-sale to loan portfolio		$ 1,876

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2018
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, 2017. HBC is a commercial bank serving customers primarily located in Santa Clara, Alameda, Contra Costa, and San Benito counties of California. CSNK Working Capital Finance Corp. a California corporation, 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% 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, 2018 are not necessarily indicative of the results expected for any subsequent period or for the entire year ending December 31, 2018. 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 May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers”, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard replaces most existing revenue recognition guidance in GAAP. The new standard was effective for the Company on January 1, 2018. Adoption of the standard did not have a material impact on the Company’s consolidated financial statements and related disclosures as the Company’s primary sources of revenues are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of the standard. The Company’s revenue recognition pattern for revenue streams within the scope of the standard, including but not limited to service charges on deposit accounts and gains/losses on the sale of other real estate owned (“OREO”), did not change significantly from current practice. The standard permits the use of either the full retrospective or modified retrospective transition method. The Company elected to use the modified retrospective transition method which requires application of the standard to uncompleted contracts at the date of adoption however, periods prior to the date of adoption were not retrospectively revised as the impact of the standard on uncompleted contracts at the date of adoption was not material. See Note 14 – Revenue Recognition for more information. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” The guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. The standard was effective for the Company on January 1, 2018 and resulted in the use of an exit price rather than an entrance price to determine the fair value of financial instruments not measured at fair value on a non-recurring basis in the consolidated balance sheets. See Note 10 – Fair Value for further information regarding the valuation of these loans. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The standard amended existing guidance to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. The amendments require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit costs are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. The amendments allow only the service cost component to be eligible for capitalization. The Company adopted the new guidance on January 1, 2018, and there was no material impact to the financial statements. Newly Issued, but not yet Effective Accounting Standards 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 provisions of this ASU and have determined that the provisions of ASU No. 2016-02 will result in an increase in assets to recognize the present value of the lease obligations with a corresponding increase in liabilities; however, we do not expect this to have a material impact to the Company’s results of operations or cash flows. 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. The committee has also selected a vendor to assist in generating loan level cash flows and disclosures. 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. In January 2017, the FASB issued accounting standards ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The provisions of the update eliminate the existing second step of the goodwill impairment test which provides for the allocation of reporting unit fair value among existing assets and liabilities, with the net remaining amount representing the implied fair value of goodwill. In replacement of the existing goodwill impairment rule, the update will provide that impairment should be recognized as the excess of any of the reporting unit’s goodwill over the fair value of the reporting unit. Under the provisions of this update, the amount of the impairment is limited to the carrying value of the reporting unit’s goodwill. For public business entities that are SEC filers, the amendments of the update will become effective in fiscal years beginning after December 15, 2019. Management does not expect the requirements of this update to have a material impact on the Company’s financial position, results of operations or cash flows.

Shareholders' Equity and Earnin

Shareholders' Equity and Earnings Per Share	3 Months Ended
	Mar. 31, 2018
Shareholders' Equity and Earnings Per Share.
Shareholders' Equity and Earnings Per Share	2) Shareholders’ Equity and Earnings Per Share Basic earnings per common share is computed by dividing net income, by the weighted average common shares outstanding. 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: Three Months Ended March 31, 2018 2017 (Dollars in thousands, except per share amounts) Net income $ 8,809 $ 6,538 Weighted average common shares outstanding for basic earnings per common share 38,240,495 37,957,999 Dilutive effect of stock options outstanding, using the treasury stock method 574,227 536,108 Shares used in computing diluted earnings per common share 38,814,722 38,494,107 Basic earnings per share $ $ 0.17 Diluted earnings per share $ $ 0.17 Stock options for 275,000 and 246,500 shares of common stock were not considered in computing diluted earnings per common share for the three months ended March 31, 2018 and 2017, respectively, because they were antidilutive.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss) (''AOCI'')	3 Months Ended
	Mar. 31, 2018
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, 2018 and 2017 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, 2018, net of taxes $ (362) $ 375 $ (9,265) $ (9,252) Other comprehensive income (loss) before reclassification, net of taxes (5,670) — (5) (5,675) Amounts reclassified from other comprehensive income (loss), net of taxes (61) (8) 40 (29) Net current period other comprehensive income (loss), net of taxes (5,731) (8) 35 (5,704) Ending balance March 31, 2018, net of taxes $ (6,093) $ 367 $ (9,230) $ (14,956) 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) Amounts Reclassified from AOCI(1) Three Months Ended March 31, Affected Line Item Where Details About AOCI Components 2018 2017 Net Income is Presented (Dollars in thousands) Unrealized gains on available-for-sale securities and I/O strips $ 87 $ (6) Gain (loss) on sales of securities (26) 2 Income tax expense 61 (4) Net of tax Amortization of unrealized gain on securities available- for-sale that were reclassified to securities held-to-maturity 11 13 Interest income on taxable securities (3) (5) Income tax expense 8 8 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation 16 18 Actuarial losses (73) (69) (57) (51) Salaries and employee benefits 17 21 Income tax benefit (40) (30) Net of tax Total reclassification for the year $ 29 $ (26) (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, 2018
Securities
Securities	4) Securities The amortized cost and estimated fair value of securities at March 31, 2018 and December 31, 2017 were as follows: Gross Gross Estimated Amortized Unrealized Unrealized Fair March 31, 2018 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 354,302 $ 216 $ (9,752) $ 344,766 Total $ 354,302 $ 216 $ (9,752) $ 344,766 Securities held-to-maturity: Agency mortgage-backed securities $ 307,083 $ — $ (9,762) $ 297,321 Municipals - exempt from Federal tax 88,191 410 (2,285) 86,316 Total $ 395,274 $ 410 $ (12,047) $ 383,637 Gross Gross Estimated Amortized Unrealized Unrealized Fair December 31, 2017 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 378,339 786 (4,392) $ 374,733 Trust preferred securities 15,000 2,119 — 17,119 Total $ 393,339 $ 2,905 $ (4,392) $ 391,852 Securities held-to-maturity: Agency mortgage-backed securities $ 309,616 $ 6 $ (4,394) $ 305,228 Municipals - exempt from Federal tax 88,725 946 (607) 89,064 Total $ 398,341 $ 952 $ (5,001) $ 394,292 Securities with unrealized losses at March 31, 2018 and December 31, 2017, 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, 2018 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 199,375 $ (5,107) $ 123,168 $ (4,645) $ 322,543 $ (9,752) Total $ 199,375 $ (5,107) $ 123,168 $ (4,645) $ 322,543 $ (9,752) Securities held-to-maturity: Agency mortgage-backed securities $ 169,591 $ (4,614) $ 121,549 $ (5,148) $ 291,140 $ (9,762) Municipals - exempt from Federal tax 43,270 (1,189) 18,561 (1,096) 61,831 (2,285) Total $ 212,861 $ (5,803) $ 140,110 $ (6,244) $ 352,971 $ (12,047) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2017 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 185,824 $ (1,623) $ 146,670 $ (2,769) $ 332,494 $ (4,392) Total $ 185,824 $ (1,623) $ 146,670 $ (2,769) $ 332,494 $ (4,392) Securities held-to-maturity: Agency mortgage-backed securities $ 168,439 $ (1,368) $ 130,759 $ (3,026) $ 299,198 $ (4,394) Municipals - exempt from Federal tax 18,159 (182) 19,240 (425) 37,399 (607) Total $ 186,598 $ (1,550) $ 149,999 $ (3,451) $ 336,597 $ (5,001) 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, 2018 the Company held 493 securities (167 available-for-sale and 326 held‑to‑maturity), of which 377 had fair values below amortized cost. At March 31, 2018, there were $123,168,000 of agency mortgage-back securities available-for-sale, $121,549,000 of agency mortgage-backed securities held-to-maturity, and $18,561,000 of municipal bonds held-to-maturity, carried with an unrealized loss for 12 months or more. The total unrealized loss for securities 12 months or more was $10,889,000 at March 31, 2018. 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, 2018. The proceeds from sales of securities and the resulting gains and losses were as follows for the periods indicated: Three Months Ended March 31, 2018 2017 (Dollars in thousands) Proceeds $ 38,754 $ 6,536 Gross gains 1,050 — Gross losses (963) (6) The amortized cost and estimated fair values of securities as of March 31, 2018 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) Agency mortgage-backed securities $ 354,302 $ 344,766 Total $ 354,302 $ 344,766 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due after 3 months through one year $ 499 $ 499 Due after one through five years 3,703 3,740 Due after five through ten years 23,442 23,434 Due after ten years 60,547 58,643 Agency mortgage-backed securities 307,083 297,321 Total $ 395,274 $ 383,637 Securities with amortized cost of $38,863,000 and $110,874,000 as of March 31, 2018 and December 31, 2017 were pledged to secure public deposits and for other purposes as required or permitted by law or contract.

Loans

Loans	3 Months Ended
	Mar. 31, 2018
Loans
Loans	5) Loans Loans were as follows for the periods indicated: March 31, December 31, 2018 2017 (Dollars in thousands) Loans held-for-investment: Commercial $ 572,790 $ 573,296 Real estate: CRE 775,547 772,867 Land and construction 113,470 100,882 Home equity 76,087 79,176 Residential mortgages 42,868 44,561 Consumer 10,958 12,395 Loans 1,591,720 1,583,177 Deferred loan fees, net (519) (510) Loans, net of deferred fees 1,591,201 1,582,667 Allowance for loan losses (20,139) (19,658) Loans, net $ 1,571,062 $ 1,563,009 At March 31, 2018 and December 31, 2017, total net loans included in the table above include $55,633,000 and $58,551,000, 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, 2018 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 10,608 $ 8,950 $ 100 $ 19,658 Charge-offs (245) — — (245) Recoveries 157 63 — 220 Net (charge-offs) recoveries (88) 63 — (25) Provision (credit) for loan losses 645 (155) 16 506 End of year balance $ 11,165 $ 8,858 $ 116 $ 20,139 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 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, 2018 Commercial Real Estate Consumer Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,600 $ — $ — $ 1,600 Collectively evaluated for impairment 9,565 8,858 116 18,539 Acquired with deteriorated credit quality — — — — Total allowance balance $ 11,165 $ 8,858 $ 116 $ 20,139 Loans: Individually evaluated for impairment $ 3,171 $ 865 $ — $ 4,036 Collectively evaluated for impairment 569,619 1,007,107 10,958 1,587,684 Acquired with deteriorated credit quality — — — — Total loan balance $ 572,790 $ 1,007,972 $ 10,958 $ 1,591,720 December 31, 2017 Commercial Real Estate Consumer Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 290 $ — $ — $ 290 Collectively evaluated for impairment 10,318 8,950 100 19,368 Acquired with deteriorated credit quality — — — — Total allowance balance $ 10,608 $ 8,950 $ 100 $ 19,658 Loans: Individually evaluated for impairment $ 1,775 $ 998 $ 1 $ 2,774 Collectively evaluated for impairment 571,521 996,488 12,394 1,580,403 Acquired with deteriorated credit quality — — — — Total loan balance $ 573,296 $ 997,486 $ 12,395 $ 1,583,177 The following table presents loans held-for-investment individually evaluated for impairment by class of loans as of March 31, 2018 and December 31, 2017. 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, 2018 December 31, 2017 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 $ 1,285 $ 1,254 $ — $ 1,243 $ 1,243 $ — Real estate: CRE 501 501 — 500 500 — Land and construction — — — 138 119 — Home Equity 364 364 — 379 379 — Consumer — — — 1 1 — Total with no related allowance recorded 2,150 2,119 — 2,261 2,242 — With an allowance recorded: Commercial 1,931 1,917 1,600 589 532 290 Total with an allowance recorded 1,931 1,917 1,600 589 532 290 Total $ 4,081 $ 4,036 $ 1,600 $ 2,850 $ 2,774 $ 290 The following tables present interest recognized and cash‑basis interest earned on impaired loans for the periods indicated: Three Months Ended March 31, 2018 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 2,474 $ 501 $ 59 $ 371 $ 1 $ 3,406 Interest income during impairment $ — $ — $ — $ — $ — $ — Cash-basis interest recognized $ — $ — $ — $ — $ — $ — 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 recognized $ — $ — $ — $ — $ — $ — 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, 2018 2017 2017 (Dollars in thousands) Nonaccrual loans - held-for-investment $ 3,637 $ 5,200 $ 2,250 Restructured and loans over 90 days past due and still accruing 158 207 235 Total nonperforming loans 3,795 5,407 2,485 Other restructured loans 241 126 289 Total impaired loans $ 4,036 $ 5,533 $ 2,774 The following table presents the nonperforming loans by class for the periods indicated: March 31, 2018 December 31, 2017 Restructured Restructured and Loans and Loans over 90 Days over 90 Days Past Due Past Due and Still and Still Nonaccrual Accruing Total Nonaccrual Accruing Total (Dollars in thousands) Commercial $ 2,772 $ $ 2,930 $ 1,250 $ 235 $ 1,485 Real estate: CRE 501 — 501 501 — 501 Land and construction — — — 119 — 119 Home equity 364 — 364 379 — 379 Consumer — — — 1 — 1 Total $ 3,637 $ 158 $ 3,795 $ 2,250 $ 235 $ 2,485 The following tables present the aging of past due loans by class for the periods indicated: March 31, 2018 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 $ 4,495 $ 877 $ 1,267 $ 6,639 $ 566,151 $ 572,790 Real estate: CRE — — 501 501 775,046 775,547 Land and construction — — — 113,470 113,470 Home equity 775 — — 775 75,312 76,087 Residential mortgages — — — — 42,868 42,868 Consumer — — — — 10,958 10,958 Total $ 5,270 $ 877 $ 1,768 $ 7,915 $ 1,583,805 $ 1,591,720 December 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 $ 4,288 $ 1,224 $ 589 $ 6,101 $ 567,195 $ 573,296 Real estate: CRE — — 500 500 772,367 772,867 Land and construction — — 119 119 100,763 100,882 Home equity 223 — — 223 78,953 79,176 Residential mortgages — — — — 44,561 44,561 Consumer — — — — 12,395 12,395 Total $ 4,511 $ 1,224 $ 1,208 $ 6,943 $ 1,576,234 $ 1,583,177 Past due loans 30 days or greater totaled $7,915,000 and $6,943,000 at March 31, 2018 and December 31, 2017, respectively, of which $2,357,000 and $1,410,000 were on nonaccrual, respectively. At March 31, 2018, there were also $1,280,000 of loans less than 30 days past due included in nonaccrual loans held-for-investment. At December 31, 2017, there were also $840,000 of 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 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, 2018 and December 31, 2017. The following table provides a summary of the loan portfolio by loan type and credit quality classification at period end: March 31, 2018 December 31, 2017 Nonclassified Classified Total Nonclassified Classified Total Commercial $ 548,538 $ 24,252 $ 572,790 $ 554,913 $ 18,383 $ 573,296 Real estate: CRE 769,707 5,840 775,547 766,988 5,879 772,867 Land and construction 113,470 — 113,470 100,763 119 100,882 Home equity 75,416 671 76,087 78,486 690 79,176 Residential mortgages 42,868 — 42,868 44,561 — 44,561 Consumer 10,958 — 10,958 12,394 1 12,395 Total $ 1,560,957 $ 30,763 $ 1,591,720 $ 1,558,105 $ 25,072 $ 1,583,177 The increase in classified assets at March 31, 2018 was primarily due to seasonal advances on lines of credit associated with a lending relationship that was moved to classified loans in the fourth quarter of 2017, which totaled $20.2 million at March 31, 2018, compared to $12.5 million at December 31, 2017. 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, 2018 was $323,000, which included $16,000 of nonaccrual loans and $307,000 of accruing loans. The balance of troubled debt restructurings at December 31, 2017 was $325,000, which included $16,000 of nonaccrual loans and $309,000 of accruing loans. Approximately $2,500 and $2,000 of specific reserves were established with respect to these loans as of March 31, 2018 and December 31, 2017. There were no new loans modified as troubled debt restructurings during the three months ended March 31, 2018 and 2017. During the three months ended March 31, 2018, there were no troubled debt restructurings in which the amount of principal or accrued interest owed from the borrower was forgiven or which resulted in a charge-off or change to the allowance for loan losses. The Company has committed to lend no additional amounts as of March 31, 2018 to customers with outstanding loans that are classified as troubled debt restructurings. 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, 2018 and 2017. 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, 2018
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	6) Goodwill and Other Intangible Assets Goodwill At March 31, 2018, 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 Business Bank (“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, 2017 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, 2017. As such, no impairment was indicated and no further testing was required. Other Intangible Assets 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 $2,189,000 and $1,995,000 at March 31, 2018 and December 31, 2017, 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 the customer relationship and brokered relationship intangible assets was $648,000 and $601,000 at March 31, 2018 and December 31, 2017, respectively. The below market lease and non-compete agreement intangible assets were fully amortized at December 31, 2017. Estimated amortization expense for 2018, the next five years and thereafter is as follows: Bay View Funding Customer & Focus Core Brokered Total Deposit Relationship Amortization Year Intangible Intangible Expense (Dollars in thousands) 2018 $ 775 $ 190 $ 965 2019 734 190 924 2020 716 190 906 2021 596 190 786 2022 502 190 692 2023 420 190 610 Thereafter 547 159 706 $ 4,290 $ 1,299 $ 5,589 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, 2018 and December 31, 2017.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
Income Taxes
Income Taxes	7) Income Taxes On December 22, 2017, the Tax Act was signed into law, which among other items reduces the federal corporate tax rate to 21% from 35%, effective January 1, 2018. 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 $18,588,000, and $16,247,000, at March 31, 2018, and December 31, 2017, 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 assets at March 31, 2018 and December 31, 2017 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, Decemebr 31, 2018 2017 (Dollars in thousands) Low income housing investments $ 3,292 $ 3,411 Future commitments $ 290 $ 302 The Company expects future commitments of $1,000 to be paid in 2018, and $289,000 in 2019 through 2023. For tax purposes, the Company had low income housing tax credits of $106,000 and $110,000 for the three months ended March 31, 2018 and March 31, 2017, respectively, and low income housing investment losses of $119,000 and $115,000, 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, 2018
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, 2018 2017 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 62 $ 81 Interest cost 237 259 Amortization of net actuarial loss 73 69 Net periodic benefit cost $ 372 $ 409 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, 2018 2017 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 6,711 $ 6,301 Interest cost 57 243 Actuarial (gain) loss — 167 Projected benefit obligation at end of period $ 6,768 $ 6,711 March 31, December 31, 2018 2017 (Dollars in thousands) Net actuarial loss $ 2,491 $ 2,453 Prior transition obligation 1,216 1,238 Accumulated other comprehensive loss $ 3,707 $ 3,691 Three Months Ended March 31, 2018 2017 (Dollars in thousands) Amortization of prior transition obligation $ (16) $ (18) Interest cost 57 61 Net periodic benefit cost $ 41 $ 43

Fair Value

Fair Value	3 Months Ended
	Mar. 31, 2018
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 Observable Unobservable Identical Assets Inputs Inputs Balance (Level 1) (Level 2) (Level 3) (Dollars in thousands) Assets at March 31, 2018 Available-for-sale securities: Agency mortgage-backed securities $ 344,766 — $ 344,766 — I/O strip receivables 945 — 945 — Assets at December 31, 2017 Available-for-sale securities: Agency mortgage-backed securities $ 374,733 — $ 374,733 — Trust preferred securities 17,119 — 17,119 — I/O strip receivables 968 — 968 — 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, 2018 Impaired loans - held-for-investment: Commercial $ 342 — — $ 342 $ 342 — — $ 342 Assets at December 31, 2017 Impaired loans - held-for-investment: Commercial $ 242 — — $ 242 Real estate: Land and construction 119 — — 119 $ 361 — — $ 361 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, 2018 December 31, 2017 (Dollars in thousands) Impaired loans held-for-investment: Book value of impaired loans held-for-investment carried at fair value $ 1,942 $ 651 Book value of impaired loans held-for-investment carried at cost 2,094 2,123 Total impaired loans held-for-investment $ 4,036 $ 2,774 Impaired loans held-for-investment carried at fair value: Book value of impaired loans held-for-investment carried at fair value $ 1,942 $ 651 Specific valuation allowance (1,600) (290) Impaired loans held-for-investment carried at fair value, net $ 342 $ 361 Impaired loans held‑for‑investment which are measured primarily for impairment using the fair value of the collateral were $4,036,000 at March 31, 2018. In addition, these loans had a specific valuation allowance of $1,600,000 at March 31, 2018. Impaired loans held‑for‑investment totaling $1,942,000 at March 31, 2018, were carried at fair value as a result of the aforementioned partial charge‑offs and specific valuation allowances at period‑end. The remaining $2,094,000 of impaired loans were carried at cost at March 31, 2018, 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 2018 on impaired loans held‑for‑investment carried at fair value at March 31, 2018 resulted in an additional provision for loan losses of $1,331,000. At March 31, 2018, there were no foreclosed assets. Impaired loans held‑for‑investment were $2,774,000 at December 31, 2017. There were no partial charge‑offs at December 31, 2017. In addition, these loans had a specific valuation allowance of $290,000 at December 31, 2017. Impaired loans held‑for‑investment totaling $651,000 at December 31, 2017 were carried at fair value as a result of the aforementioned partial charge‑offs and specific valuation allowances at year‑end. The remaining $2,123,000 of impaired loans were carried at cost at December 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 2017 on impaired loans held‑for‑investment carried at fair value at December 31, 2017 resulted in an additional provision for loan losses of $254,000. At December 31, 2017, there were no foreclosed assets 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, 2018 Valuation Unobservable Range Fair Value Techniques Inputs (Weighted Average) (Dollars in thousands) Impaired loans - held-for-investment: Commercial $ 342 Market Approach Discount adjustment for differences between comparable sales Less than 1 % December 31, 2017 Valuation Unobservable Range Fair Value Techniques Inputs (Weighted Average) (Dollars in thousands) Impaired loans - held-for-investment: Commercial $ 242 Market Approach Discount adjustment for differences between comparable sales Less than 1% Real estate: Land and construction 119 Market Approach Discount adjustment for differences between comparable sales Less than 1% 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, 2018 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 $ 301,989 $ 301,989 $ — $ — $ 301,989 Securities available-for-sale 344,766 — 344,766 — 344,766 Securities held-to-maturity 395,274 — 383,637 — 383,637 Loans (including loans held-for-sale), net 1,573,921 — 2,859 1,558,196 1,561,055 FHLB stock, FRB stock, and other investments 17,917 — — — N/A Accrued interest receivable 7,896 — 2,267 5,629 7,896 I/O strips receivables 945 — 945 — 945 Liabilities: Time deposits $ 125,548 $ — $ 125,709 $ — $ 125,709 Other deposits 2,296,644 — 2,296,644 — 2,296,644 Subordinated debt 39,229 — 39,809 — 39,809 Accrued interest payable 895 — 895 — 895 The carrying amounts and estimated fair values of the Company’s financial instruments at December 31, 2017: 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 $ 316,222 $ 316,222 $ — $ — $ 316,222 Securities available-for-sale 391,852 — 391,852 — 391,852 Securities held-to-maturity 398,341 — 394,292 — 394,292 Loans (including loans held-for-sale), net 1,566,428 — 3,419 1,507,967 1,511,386 FHLB stock, FRB stock, and other investments 17,911 — — — N/A Accrued interest receivable 7,985 — 2,423 5,562 7,985 I/O strips receivables 968 — 968 — 968 Liabilities: Time deposits $ 194,561 $ — $ 194,844 $ — $ 194,844 Other deposits 2,288,428 — 2,288,428 — 2,288,428 Subordinated debt 39,183 — 40,384 — 40,384 Accrued interest payable 389 — 389 — 389 The methods and assumptions, not previously discussed, used to estimate the fair value of loans, including loans held-for-sale, are described as follows: 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. The Company adopted ASU No. 2016-01, effective January 1, 2018. Adoption of the standard resulted in the use of an exit price rather than an entrance price to determine the fair value of loans, excluding loans held-for-sale, using discounted cash flow analyses as of March 31, 2018. The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit, and nonperformance risk of the loans, resulting in a level 3 classification. Fair values of loans, excluding loans held-for-sale, were estimated as follows as of December 31, 2017: 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. The methods utilized to estimate the fair value of loans as of December 31, 2017 do not necessarily represent an exit price. Impaired loans as of March 31, 2018 and December 31, 2017 are valued at the lower of cost or fair value as described previously.

Equity Plan

Equity Plan	3 Months Ended
	Mar. 31, 2018
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”). On May 25, 2017, the shareholders approved an amendment to the Heritage Commerce Corp 2013 Equity Incentive Plan to increase the number of shares available from 1,750,000 to 3,000,000 shares. 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, 2018, the Company granted 10,000 shares of nonqualified stock options and no shares of restricted stock. There were 1,518,099 shares available for the issuance of equity awards under the 2013 Plan as of March 31, 2018. 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, 2018 1,602,732 $ 9.54 Granted 10,000 $ 15.96 Exercised (68,906) $ 7.79 Forfeited or expired (3,000) $ 16.00 Outstanding at March 31, 2018 1,540,826 $ 9.64 6.18 $ 10,624,596 Vested or expected to vest 1,448,376 6.18 $ 9,987,120 Exercisable at March 31, 2018 1,101,536 5.26 $ 8,764,801 Information related to the equity plans for the periods indicated: Three Months Ended March 31, 2018 2017 Intrinsic value of options exercised $ 560,332 $ 375,122 Cash received from option exercise $ 449,294 $ 365,031 Tax benefit realized from option exercises $ 164,978 $ 155,648 Weighted average fair value of options granted $ 3.00 N/A As of March 31, 2018, there was $1,102,000 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 2.47 years. The fair value of each option grant is estimated on the date of grant using the Black Scholes option pricing model that uses the assumptions noted in the following table, including the weighted average assumptions for the option grants for the periods indicated: Three Months Ended March 31, 2018 2017 Expected life in months(1) 72 N/A Volatility(1) 22 % N/A Weighted average risk-free interest rate(2) 2.58 % N/A Expected dividends(3) 2.51 % N/A (1) The expected life of employee stock options represents the weighted average period the stock options are expected to remain outstanding based on historical experience. Volatility is based on the historical volatility of the stock price over the same period of the expected life of the option. (2) Based on the U.S. Treasury constant maturity interest rate with a term consistent with the expected life of the option granted. (3) Each grant’s dividend yield is calculated by annualizing the most recent quarterly cash dividend and dividing that amount by the market price of the Company’s common stock as of the grant date 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, 2018 181,185 $ 11.66 Vested (5,000) $ 8.30 Nonvested shares at March 31, 2018 176,185 $ 11.75 As of March 31, 2018, there was $1,359,000 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 2.14 years.

Subordinated Debt

Subordinated Debt	3 Months Ended
	Mar. 31, 2018
Subordinated Debt
Subordinated Debt	11) Subordinated Debt On May 26, 2017, the Company completed an underwritten public offering of $40,000,000 aggregate principal amount of its fixed-to-floating rate subordinated notes (“Subordinated Debt”) due June 1, 2027. The Subordinated Debt initially bears a fixed interest rate of 5.25% per year. Commencing on June 1, 2022, the interest rate on the Subordinated Debt resets quarterly to the three-month LIBOR rate plus a spread of 336.5 basis points, payable quarterly in arrears. Interest on the Subordinated Debt is payable semi-annually on June 1 and December 1 of each year through June 1, 2022 and quarterly thereafter on March 1, June 1, September 1 and December 1 of each year through the maturity date or early redemption date. The Company at its option may redeem the Subordinated Debt, in whole or in part, on any interest payment date on or after June 1, 2022 without a premium.

Capital Requirements

Capital Requirements	3 Months Ended
	Mar. 31, 2018
Capital Requirements
Capital Requirements	12) 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, 2018, 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 new capital rules establish a “capital conservation buffer,” which must consist entirely of common equity Tier 1 capital. The capital conservation buffer is to be phased-in over four years beginning on January 1, 2016. The buffer will be 0.625% of risk-weighted assets for 2016, 1.25% for 2017, 1.875% for 2018, and 2.5% for 2019 and thereafter. The Company and HBC must maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. 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, 2018. 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, 2018 and December 31, 2017, 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, 2018, and December 31, 2017. Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of March 31, 2018 Total Capital $ 292,906 14.7 % $ 197,404 9.875 % (to risk-weighted assets) Tier 1 Capital $ 232,905 11.7 % $ 157,423 7.875 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 232,905 11.7 % $ 127,438 6.375 % (to risk-weighted assets) Tier 1 Capital $ 232,905 8.6 % $ 108,864 4.000 % (to average assets) (1) Includes 1.875% capital conservation buffer, effective January 1, 2018, 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, 2017 Total Capital $ 288,754 14.4 % $ 185,338 9.250 % (to risk-weighted assets) Tier 1 Capital $ 229,258 11.4 % $ 145,265 7.250 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 229,258 11.4 % $ 115,210 5.750 % (to risk-weighted assets) Tier 1 Capital $ 229,258 8.0 % $ 114,959 4.000 % (to average assets) (1) Includes 1.25% capital conservation buffer, effective January 1, 2017, 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, 2018, and December 31, 2017. 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, 2018 Total Capital $ 269,644 13.5 % $ 199,778 10.0 % $ 197,280 9.875 % (to risk-weighted assets) Tier 1 Capital $ 248,872 12.5 % $ 159,822 8.0 % $ 157,325 7.875 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 248,872 12.5 % $ 129,855 6.5 % $ 127,358 6.375 % (to risk-weighted assets) Tier 1 Capital $ 248,872 9.1 % $ 136,019 5.0 % $ 108,815 4.000 % (to average assets) (1) Includes 1.875% capital conservation buffer, effective January 1, 2018, 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, 2017 Total Capital $ 265,102 13.2 % $ 200,274 10.0 % $ 185,253 9.250 % (to risk-weighted assets) Tier 1 Capital $ 244,790 12.2 % $ 160,219 8.0 % $ 145,198 7.250 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 244,790 12.2 % $ 130,178 6.5 % $ 115,157 5.750 % (to risk-weighted assets) Tier 1 Capital $ 244,790 8.5 % $ 143,655 5.0 % $ 114,924 4.000 % (to average assets) (1) Includes 1.25% capital conservation buffer, effective January 1, 2017, except the Tier 1 Capital to average assets ratio. The Subordinated Debt, net of unamortized issuance costs, totaled $39,229,000 at March 31, 2018, and qualifies as Tier 2 capital for the Company under the guidelines established by the Federal Reserve Bank. 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, 2018, HBC would not be required to obtain regulatory approval, and the amount available for cash dividends is $35,057,000. Similar restrictions applied to the amount and sum of loan advances and other transfers of funds from HBC to the parent company. HBC distributed dividends to HCC totaling $4,000,000 for the three month ended March 31, 2018.

Loss Contingencies

Loss Contingencies	3 Months Ended
	Mar. 31, 2018
Loss Contingencies
Loss Contingencies	13) Loss Contingencies The Company is involved in certain legal actions arising from normal business activities. Management, based upon the advice of legal counsel, believes the ultimate resolution of all pending legal actions will not have a material effect on the financial statements of the Company.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2018
Revenue Recognition
Revenue Recognition	14) Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014-09 (Topic 606) and all subsequent ASUs that modified Topic 606. As stated in Note 1 Basis of Presentation , the implementation of the new standard did not have a material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 606. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, gain on sale of securities, bank owned life insurance, gain on sales of SBA loans, and certain credit card fees are also not in scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as deposit related fees, interchange fees, and merchant income. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest revenue streams in-scope of Topic 606 are discussed below. Service Charges on Deposit Accounts Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. We sometimes charge customers fees that are not specifically related to the customer accessing its funds, such as account maintenance or dormancy fees. The amount of deposit fees assessed varies based on a number of factors, such as the type of customer and account, the quantity of transactions, and the size of the deposit balance. We charge, and in some circumstances do not charge, fees to earn additional revenue and influence certain customer behavior. An example would be where we do not charge a monthly service fee, or do not charge for certain transactions, for customers that have a high deposit balance. Deposit fees are considered either transactional in nature (such as wire transfers, nonsufficient fund fees, and stop payment orders) or non-transactional (such as account maintenance and dormancy fees). These fees are recognized as earned or as transactions occur and services are provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Interchange Revenue Interchange revenue primarily consists of interchange fees, volume-related incentives and ATM charges. As the card-issuing bank, interchange fees represent our portion of discount fees paid by merchants for credit / debit card transactions processed through the interchange network. The levels and structure of interchange rates are set by the credit card companies and are based on cardholder purchase volumes. The Company earns interchange income as cardholder transactions occur and interchange fees are settled on a daily basis. Since interchange fees are settled on a daily basis, the Company believes the application of Topic 606 to interchange fees would likely not lead to significantly different recognition and measurement outcomes when compared to our current accounting practice. In addition, the Company will continue to consider any constraint on the variability of consideration due to returns, refunds and chargebacks. ATM charges consist of fees received from non-customers using a bank-owned ATM and fees received for customers using a nonbank-owned ATM. These fees are earned when these types of ATM transactions occur. Merchant Services Revenue Revenue from the Company’s merchant services business consists principally of transaction and account management fees charged to merchants for the electronic processing of transactions. These fees are net of interchange fees paid to the credit card issuing bank, card company assessments, and revenue sharing amounts. Based on the insignificant level of merchant services revenue, the Company has concluded that the application of Topic 606 to merchant services account management fees would likely not lead to significantly different recognition and measurement outcomes when compared to our current accounting practice. As a result, revenue from account management fees will continue to be recognized by the Company at the end of each month since the end of this measurement period allows us to reliably measure our progress towards completion of our performance obligation. Other Noninterest miscellaneous fees consist of charges for various other services including safe deposit box rentals, wire transfers, check cashing, telephone transfers, and online business banking. Given the insignificance of these amounts individually and in total, further consideration of these revenue streams under Topic 606 is not considered necessary. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the periods indicated. Three Months Ended March 31, 2018 2017 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 478 $ 465 Interchange fees 73 62 Merchant services revenue 44 46 Other 148 152 Total noninterest income in-scope of Topic 606 743 725 Noninterest Income Out-of-scope of Topic 606 1,452 1,570 Total noninterest income $ 2,195 $ 2,295

Noninterest Expense

Noninterest Expense	3 Months Ended
	Mar. 31, 2018
Noninterest Expense
Noninterest Expense	15) 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, 2018 2017 (Dollars in thousands) Salaries and employee benefits $ 9,777 $ 9,486 Occupancy and equipment 1,106 1,068 Professional fees 684 1,071 Acquisition and integration related costs 615 — Software subscriptions 593 417 Insurance expense 407 352 Data processing 353 383 Other 2,455 2,551 Total $ 15,990 $ 15,328

Business Segment Information

Business Segment Information	3 Months Ended
	Mar. 31, 2018
Business Segment Information
Business Segment Information	16) 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, 2018 Banking(1) Factoring Consolidated (Dollars in thousands) Interest income $ 24,731 $ 3,146 $ 27,877 Intersegment interest allocations 327 (327) — Total interest expense 1,529 — 1,529 Net interest income 23,529 2,819 26,348 Provision for loan losses 488 18 506 Net interest income after provision 23,041 2,801 — 25,842 Noninterest income 2,086 109 2,195 Noninterest expense 14,467 1,523 15,990 Intersegment expense allocations 175 (175) — Income before income taxes 10,835 1,212 12,047 Income tax expense 2,880 358 3,238 Net income $ 7,955 $ 854 $ 8,809 Total assets $ 2,722,472 $ 63,076 $ 2,785,548 Loans, net of deferred fees $ 1,541,466 $ 49,735 $ 1,591,201 Goodwill $ 32,620 $ 13,044 $ 45,664 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

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2018
Subsequent Events
Subsequent Events	17) Subsequent Events The Company completed its previously announced merger of its wholly-owned bank subsidiary Heritage Bank of Commerce with Tri-Valley Bank (“Tri-Valley”) effective as of the close of business on April 6, 2018. The merger, which was first announced on December 20, 2017, was concluded following receipt of approval from Tri-Valley shareholders and all required regulatory approvals. Tri-Valley will be reflected in the Company’s results of operations in the second quarter of 2018. Tri-Valley was a full-service California state-chartered commercial bank with branches in San Ramon and Livermore, California and served businesses and individuals primarily in Contra Costa and Alameda counties in Northern California. The Company has applied to close the San Ramon office in the third quarter of 2018. The Company completed its previously announced merger of its wholly-owned bank subsidiary Heritage Bank of Commerce with United American Bank (“United American”) effective as of the close of business on May 4, 2018. The merger, which was first announced on January 11, 2018, was concluded following receipt of approval from United American shareholders and all required regulatory approvals. United American will be reflected in the Company’s results of operations in the second quarter of 2018. United American Bank was a full-service commercial bank located in San Mateo County with full-service branches located in San Mateo, Redwood City and Half Moon Bay, California and serviced businesses, professionals and individuals. The Company has applied to close the Half Moon Bay office in the third quarter of 2018. At March 31, 2018, Tri-Valley had approximately $150.3 million in assets, $125.2 million in net loans and $131.4 million in deposits. At March 31, 2018, United American had approximately $319.7 million in assets, $218.3 million in net loans and $286.6 million in deposits. At March 31, 2018, on a pro forma consolidated basis the combined company, including the Company, Tri-Valley, and United American, would have approximately $3.3 billion in total assets, $1.9 billion in total loans, and $2.8 billion in total deposits. The transactions will be accounted for using the acquisition method of accounting which requires, among other things, that the assets acquired and liabilities assumed be recognized at their fair values as of the acquisition dates. The acquisition related disclosures required by the accounting guidance cannot be made as the initial accounting for the business transactions is incomplete. Key financial data such as the determination of the fair values of the assets acquired and liabilities assumed is not yet available. On April 26, 2018, the Company announced that its Board of Directors declared a $0.11 per share quarterly cash dividend to holders of common stock. The dividend will be paid on May 24, 2018 to shareholders of record on May 10, 2018.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2018
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, 2017. HBC is a commercial bank serving customers primarily located in Santa Clara, Alameda, Contra Costa, and San Benito counties of California. CSNK Working Capital Finance Corp. a California corporation, 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% 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, 2018 are not necessarily indicative of the results expected for any subsequent period or for the entire year ending December 31, 2018.
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 May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers”, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard replaces most existing revenue recognition guidance in GAAP. The new standard was effective for the Company on January 1, 2018. Adoption of the standard did not have a material impact on the Company’s consolidated financial statements and related disclosures as the Company’s primary sources of revenues are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of the standard. The Company’s revenue recognition pattern for revenue streams within the scope of the standard, including but not limited to service charges on deposit accounts and gains/losses on the sale of other real estate owned (“OREO”), did not change significantly from current practice. The standard permits the use of either the full retrospective or modified retrospective transition method. The Company elected to use the modified retrospective transition method which requires application of the standard to uncompleted contracts at the date of adoption however, periods prior to the date of adoption were not retrospectively revised as the impact of the standard on uncompleted contracts at the date of adoption was not material. See Note 14 – Revenue Recognition for more information. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” The guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. The standard was effective for the Company on January 1, 2018 and resulted in the use of an exit price rather than an entrance price to determine the fair value of financial instruments not measured at fair value on a non-recurring basis in the consolidated balance sheets. See Note 10 – Fair Value for further information regarding the valuation of these loans. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The standard amended existing guidance to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. The amendments require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit costs are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. The amendments allow only the service cost component to be eligible for capitalization. The Company adopted the new guidance on January 1, 2018, and there was no material impact to the financial statements. Newly Issued, but not yet Effective Accounting Standards 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 provisions of this ASU and have determined that the provisions of ASU No. 2016-02 will result in an increase in assets to recognize the present value of the lease obligations with a corresponding increase in liabilities; however, we do not expect this to have a material impact to the Company’s results of operations or cash flows. 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. The committee has also selected a vendor to assist in generating loan level cash flows and disclosures. 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. In January 2017, the FASB issued accounting standards ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The provisions of the update eliminate the existing second step of the goodwill impairment test which provides for the allocation of reporting unit fair value among existing assets and liabilities, with the net remaining amount representing the implied fair value of goodwill. In replacement of the existing goodwill impairment rule, the update will provide that impairment should be recognized as the excess of any of the reporting unit’s goodwill over the fair value of the reporting unit. Under the provisions of this update, the amount of the impairment is limited to the carrying value of the reporting unit’s goodwill. For public business entities that are SEC filers, the amendments of the update will become effective in fiscal years beginning after December 15, 2019. Management does not expect the requirements of this update to have a material impact on the Company’s financial position, results of operations or cash flows.

Shareholders' Equity and Earn27

Shareholders' Equity and Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2018
Shareholders' Equity and Earnings Per Share.
Schedule of reconciliation of factors used in computing basic and diluted earnings per common share	Three Months Ended March 31, 2018 2017 (Dollars in thousands, except per share amounts) Net income $ 8,809 $ 6,538 Weighted average common shares outstanding for basic earnings per common share 38,240,495 37,957,999 Dilutive effect of stock options outstanding, using the treasury stock method 574,227 536,108 Shares used in computing diluted earnings per common share 38,814,722 38,494,107 Basic earnings per share $ $ 0.17 Diluted earnings per share $ $ 0.17

Accumulated Other Comprehensi28

Accumulated Other Comprehensive Income (Loss) (''AOCI'') (Tables)	3 Months Ended
	Mar. 31, 2018
Accumulated Other Comprehensive Income (Loss) ("AOCI")
Schedule of changes in AOCI by component	Three Months Ended March 31, 2018 and 2017 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, 2018, net of taxes $ (362) $ 375 $ (9,265) $ (9,252) Other comprehensive income (loss) before reclassification, net of taxes (5,670) — (5) (5,675) Amounts reclassified from other comprehensive income (loss), net of taxes (61) (8) 40 (29) Net current period other comprehensive income (loss), net of taxes (5,731) (8) 35 (5,704) Ending balance March 31, 2018, net of taxes $ (6,093) $ 367 $ (9,230) $ (14,956) 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)
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 2018 2017 Net Income is Presented (Dollars in thousands) Unrealized gains on available-for-sale securities and I/O strips $ 87 $ (6) Gain (loss) on sales of securities (26) 2 Income tax expense 61 (4) Net of tax Amortization of unrealized gain on securities available- for-sale that were reclassified to securities held-to-maturity 11 13 Interest income on taxable securities (3) (5) Income tax expense 8 8 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation 16 18 Actuarial losses (73) (69) (57) (51) Salaries and employee benefits 17 21 Income tax benefit (40) (30) Net of tax Total reclassification for the year $ 29 $ (26) (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, 2018
Securities
Schedule of amortized cost and estimated fair value of securities	Gross Gross Estimated Amortized Unrealized Unrealized Fair March 31, 2018 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 354,302 $ 216 $ (9,752) $ 344,766 Total $ 354,302 $ 216 $ (9,752) $ 344,766 Securities held-to-maturity: Agency mortgage-backed securities $ 307,083 $ — $ (9,762) $ 297,321 Municipals - exempt from Federal tax 88,191 410 (2,285) 86,316 Total $ 395,274 $ 410 $ (12,047) $ 383,637 Gross Gross Estimated Amortized Unrealized Unrealized Fair December 31, 2017 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 378,339 786 (4,392) $ 374,733 Trust preferred securities 15,000 2,119 — 17,119 Total $ 393,339 $ 2,905 $ (4,392) $ 391,852 Securities held-to-maturity: Agency mortgage-backed securities $ 309,616 $ 6 $ (4,394) $ 305,228 Municipals - exempt from Federal tax 88,725 946 (607) 89,064 Total $ 398,341 $ 952 $ (5,001) $ 394,292
Schedule of securities with unrealized losses	Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2018 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 199,375 $ (5,107) $ 123,168 $ (4,645) $ 322,543 $ (9,752) Total $ 199,375 $ (5,107) $ 123,168 $ (4,645) $ 322,543 $ (9,752) Securities held-to-maturity: Agency mortgage-backed securities $ 169,591 $ (4,614) $ 121,549 $ (5,148) $ 291,140 $ (9,762) Municipals - exempt from Federal tax 43,270 (1,189) 18,561 (1,096) 61,831 (2,285) Total $ 212,861 $ (5,803) $ 140,110 $ (6,244) $ 352,971 $ (12,047) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2017 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 185,824 $ (1,623) $ 146,670 $ (2,769) $ 332,494 $ (4,392) Total $ 185,824 $ (1,623) $ 146,670 $ (2,769) $ 332,494 $ (4,392) Securities held-to-maturity: Agency mortgage-backed securities $ 168,439 $ (1,368) $ 130,759 $ (3,026) $ 299,198 $ (4,394) Municipals - exempt from Federal tax 18,159 (182) 19,240 (425) 37,399 (607) Total $ 186,598 $ (1,550) $ 149,999 $ (3,451) $ 336,597 $ (5,001)
Schedule of proceeds from sales of securities and the resulting gains and losses	Three Months Ended March 31, 2018 2017 (Dollars in thousands) Proceeds $ 38,754 $ 6,536 Gross gains 1,050 — Gross losses (963) (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) Agency mortgage-backed securities $ 354,302 $ 344,766 Total $ 354,302 $ 344,766 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due after 3 months through one year $ 499 $ 499 Due after one through five years 3,703 3,740 Due after five through ten years 23,442 23,434 Due after ten years 60,547 58,643 Agency mortgage-backed securities 307,083 297,321 Total $ 395,274 $ 383,637

Loans (Tables)

Loans (Tables)	3 Months Ended
	Mar. 31, 2018
Loans
Schedule of loans	March 31, December 31, 2018 2017 (Dollars in thousands) Loans held-for-investment: Commercial $ 572,790 $ 573,296 Real estate: CRE 775,547 772,867 Land and construction 113,470 100,882 Home equity 76,087 79,176 Residential mortgages 42,868 44,561 Consumer 10,958 12,395 Loans 1,591,720 1,583,177 Deferred loan fees, net (519) (510) Loans, net of deferred fees 1,591,201 1,582,667 Allowance for loan losses (20,139) (19,658) Loans, net $ 1,571,062 $ 1,563,009
Schedule of changes in allowance for loan losses	Three Months Ended March 31, 2018 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 10,608 $ 8,950 $ 100 $ 19,658 Charge-offs (245) — — (245) Recoveries 157 63 — 220 Net (charge-offs) recoveries (88) 63 — (25) Provision (credit) for loan losses 645 (155) 16 506 End of year balance $ 11,165 $ 8,858 $ 116 $ 20,139 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
Schedule of balance in allowance for loan losses and recorded investment in loans by portfolio segment, based on impairment method	March 31, 2018 Commercial Real Estate Consumer Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,600 $ — $ — $ 1,600 Collectively evaluated for impairment 9,565 8,858 116 18,539 Acquired with deteriorated credit quality — — — — Total allowance balance $ 11,165 $ 8,858 $ 116 $ 20,139 Loans: Individually evaluated for impairment $ 3,171 $ 865 $ — $ 4,036 Collectively evaluated for impairment 569,619 1,007,107 10,958 1,587,684 Acquired with deteriorated credit quality — — — — Total loan balance $ 572,790 $ 1,007,972 $ 10,958 $ 1,591,720 December 31, 2017 Commercial Real Estate Consumer Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 290 $ — $ — $ 290 Collectively evaluated for impairment 10,318 8,950 100 19,368 Acquired with deteriorated credit quality — — — — Total allowance balance $ 10,608 $ 8,950 $ 100 $ 19,658 Loans: Individually evaluated for impairment $ 1,775 $ 998 $ 1 $ 2,774 Collectively evaluated for impairment 571,521 996,488 12,394 1,580,403 Acquired with deteriorated credit quality — — — — Total loan balance $ 573,296 $ 997,486 $ 12,395 $ 1,583,177
Schedule of loans held-for-investment individually evaluated for impairment by class of loans	March 31, 2018 December 31, 2017 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 $ 1,285 $ 1,254 $ — $ 1,243 $ 1,243 $ — Real estate: CRE 501 501 — 500 500 — Land and construction — — — 138 119 — Home Equity 364 364 — 379 379 — Consumer — — — 1 1 — Total with no related allowance recorded 2,150 2,119 — 2,261 2,242 — With an allowance recorded: Commercial 1,931 1,917 1,600 589 532 290 Total with an allowance recorded 1,931 1,917 1,600 589 532 290 Total $ 4,081 $ 4,036 $ 1,600 $ 2,850 $ 2,774 $ 290
Schedule of average impaired loans with interest recognized and cash-basis interest earned on impaired loans	Three Months Ended March 31, 2018 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 2,474 $ 501 $ 59 $ 371 $ 1 $ 3,406 Interest income during impairment $ — $ — $ — $ — $ — $ — Cash-basis interest recognized $ — $ — $ — $ — $ — $ — 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 recognized $ — $ — $ — $ — $ — $ —
Schedule of nonperforming loans	March 31, December 31, 2018 2017 2017 (Dollars in thousands) Nonaccrual loans - held-for-investment $ 3,637 $ 5,200 $ 2,250 Restructured and loans over 90 days past due and still accruing 158 207 235 Total nonperforming loans 3,795 5,407 2,485 Other restructured loans 241 126 289 Total impaired loans $ 4,036 $ 5,533 $ 2,774
Schedule of nonperforming loans by class	March 31, 2018 December 31, 2017 Restructured Restructured and Loans and Loans over 90 Days over 90 Days Past Due Past Due and Still and Still Nonaccrual Accruing Total Nonaccrual Accruing Total (Dollars in thousands) Commercial $ 2,772 $ $ 2,930 $ 1,250 $ 235 $ 1,485 Real estate: CRE 501 — 501 501 — 501 Land and construction — — — 119 — 119 Home equity 364 — 364 379 — 379 Consumer — — — 1 — 1 Total $ 3,637 $ 158 $ 3,795 $ 2,250 $ 235 $ 2,485
Schedule of aging of past due loans by class of loans	March 31, 2018 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 $ 4,495 $ 877 $ 1,267 $ 6,639 $ 566,151 $ 572,790 Real estate: CRE — — 501 501 775,046 775,547 Land and construction — — — 113,470 113,470 Home equity 775 — — 775 75,312 76,087 Residential mortgages — — — — 42,868 42,868 Consumer — — — — 10,958 10,958 Total $ 5,270 $ 877 $ 1,768 $ 7,915 $ 1,583,805 $ 1,591,720 December 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 $ 4,288 $ 1,224 $ 589 $ 6,101 $ 567,195 $ 573,296 Real estate: CRE — — 500 500 772,367 772,867 Land and construction — — 119 119 100,763 100,882 Home equity 223 — — 223 78,953 79,176 Residential mortgages — — — — 44,561 44,561 Consumer — — — — 12,395 12,395 Total $ 4,511 $ 1,224 $ 1,208 $ 6,943 $ 1,576,234 $ 1,583,177
Summary of loan portfolio by loan type and credit quality classification	March 31, 2018 December 31, 2017 Nonclassified Classified Total Nonclassified Classified Total Commercial $ 548,538 $ 24,252 $ 572,790 $ 554,913 $ 18,383 $ 573,296 Real estate: CRE 769,707 5,840 775,547 766,988 5,879 772,867 Land and construction 113,470 — 113,470 100,763 119 100,882 Home equity 75,416 671 76,087 78,486 690 79,176 Residential mortgages 42,868 — 42,868 44,561 — 44,561 Consumer 10,958 — 10,958 12,394 1 12,395 Total $ 1,560,957 $ 30,763 $ 1,591,720 $ 1,558,105 $ 25,072 $ 1,583,177

Goodwill and Other Intangible31

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2018
Goodwill and Other Intangible Assets
Schedule of estimated amortization expense	Bay View Funding Customer & Focus Core Brokered Total Deposit Relationship Amortization Year Intangible Intangible Expense (Dollars in thousands) 2018 $ 775 $ 190 $ 965 2019 734 190 924 2020 716 190 906 2021 596 190 786 2022 502 190 692 2023 420 190 610 Thereafter 547 159 706 $ 4,290 $ 1,299 $ 5,589

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2018
Income Taxes
Summary of carrying amount of low income tax housing investment	March 31, Decemebr 31, 2018 2017 (Dollars in thousands) Low income housing investments $ 3,292 $ 3,411 Future commitments $ 290 $ 302

Benefit Plans (Tables)

Benefit Plans (Tables)	3 Months Ended
	Mar. 31, 2018
Supplemental Retirement Plan
Benefit plans
Schedule of components of net periodic benefit cost	Three Months Ended March 31, 2018 2017 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 62 $ 81 Interest cost 237 259 Amortization of net actuarial loss 73 69 Net periodic benefit cost $ 372 $ 409
Split-Dollar Life Insurance Benefit Plan
Benefit plans
Schedule of change in projected benefit obligation	March 31, December 31, 2018 2017 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 6,711 $ 6,301 Interest cost 57 243 Actuarial (gain) loss — 167 Projected benefit obligation at end of period $ 6,768 $ 6,711
Schedule of amounts recognized in accumulated other comprehensive loss	March 31, December 31, 2018 2017 (Dollars in thousands) Net actuarial loss $ 2,491 $ 2,453 Prior transition obligation 1,216 1,238 Accumulated other comprehensive loss $ 3,707 $ 3,691
Schedule of components of net periodic benefit cost	Three Months Ended March 31, 2018 2017 (Dollars in thousands) Amortization of prior transition obligation $ (16) $ (18) Interest cost 57 61 Net periodic benefit cost $ 41 $ 43

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Mar. 31, 2018
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 Observable Unobservable Identical Assets Inputs Inputs Balance (Level 1) (Level 2) (Level 3) (Dollars in thousands) Assets at March 31, 2018 Available-for-sale securities: Agency mortgage-backed securities $ 344,766 — $ 344,766 — I/O strip receivables 945 — 945 — Assets at December 31, 2017 Available-for-sale securities: Agency mortgage-backed securities $ 374,733 — $ 374,733 — Trust preferred securities 17,119 — 17,119 — I/O strip receivables 968 — 968 —
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, 2018 Impaired loans - held-for-investment: Commercial $ 342 — — $ 342 $ 342 — — $ 342 Assets at December 31, 2017 Impaired loans - held-for-investment: Commercial $ 242 — — $ 242 Real estate: Land and construction 119 — — 119 $ 361 — — $ 361
Schedule of impaired loans held-for-investment and impaired loans held-for-investment carried at fair value	March 31, 2018 December 31, 2017 (Dollars in thousands) Impaired loans held-for-investment: Book value of impaired loans held-for-investment carried at fair value $ 1,942 $ 651 Book value of impaired loans held-for-investment carried at cost 2,094 2,123 Total impaired loans held-for-investment $ 4,036 $ 2,774 Impaired loans held-for-investment carried at fair value: Book value of impaired loans held-for-investment carried at fair value $ 1,942 $ 651 Specific valuation allowance (1,600) (290) Impaired loans held-for-investment carried at fair value, net $ 342 $ 361
Schedule of quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis	March 31, 2018 Valuation Unobservable Range Fair Value Techniques Inputs (Weighted Average) (Dollars in thousands) Impaired loans - held-for-investment: Commercial $ 342 Market Approach Discount adjustment for differences between comparable sales Less than 1 % December 31, 2017 Valuation Unobservable Range Fair Value Techniques Inputs (Weighted Average) (Dollars in thousands) Impaired loans - held-for-investment: Commercial $ 242 Market Approach Discount adjustment for differences between comparable sales Less than 1% Real estate: Land and construction 119 Market Approach Discount adjustment for differences between comparable sales Less than 1%
Schedule of carrying amounts and estimated fair values of financial instruments	The carrying amounts and estimated fair values of financial instruments at March 31, 2018 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 $ 301,989 $ 301,989 $ — $ — $ 301,989 Securities available-for-sale 344,766 — 344,766 — 344,766 Securities held-to-maturity 395,274 — 383,637 — 383,637 Loans (including loans held-for-sale), net 1,573,921 — 2,859 1,558,196 1,561,055 FHLB stock, FRB stock, and other investments 17,917 — — — N/A Accrued interest receivable 7,896 — 2,267 5,629 7,896 I/O strips receivables 945 — 945 — 945 Liabilities: Time deposits $ 125,548 $ — $ 125,709 $ — $ 125,709 Other deposits 2,296,644 — 2,296,644 — 2,296,644 Subordinated debt 39,229 — 39,809 — 39,809 Accrued interest payable 895 — 895 — 895 The carrying amounts and estimated fair values of the Company’s financial instruments at December 31, 2017: 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 $ 316,222 $ 316,222 $ — $ — $ 316,222 Securities available-for-sale 391,852 — 391,852 — 391,852 Securities held-to-maturity 398,341 — 394,292 — 394,292 Loans (including loans held-for-sale), net 1,566,428 — 3,419 1,507,967 1,511,386 FHLB stock, FRB stock, and other investments 17,911 — — — N/A Accrued interest receivable 7,985 — 2,423 5,562 7,985 I/O strips receivables 968 — 968 — 968 Liabilities: Time deposits $ 194,561 $ — $ 194,844 $ — $ 194,844 Other deposits 2,288,428 — 2,288,428 — 2,288,428 Subordinated debt 39,183 — 40,384 — 40,384 Accrued interest payable 389 — 389 — 389

Equity Plan (Tables)

Equity Plan (Tables)	3 Months Ended
	Mar. 31, 2018
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, 2018 1,602,732 $ 9.54 Granted 10,000 $ 15.96 Exercised (68,906) $ 7.79 Forfeited or expired (3,000) $ 16.00 Outstanding at March 31, 2018 1,540,826 $ 9.64 6.18 $ 10,624,596 Vested or expected to vest 1,448,376 6.18 $ 9,987,120 Exercisable at March 31, 2018 1,101,536 5.26 $ 8,764,801
Schedule of information related to the equity Plan	Three Months Ended March 31, 2018 2017 Intrinsic value of options exercised $ 560,332 $ 375,122 Cash received from option exercise $ 449,294 $ 365,031 Tax benefit realized from option exercises $ 164,978 $ 155,648 Weighted average fair value of options granted $ 3.00 N/A
Schedule of assumptions used to estimate the fair value of each option grant on the date of grant	Three Months Ended March 31, 2018 2017 Expected life in months(1) 72 N/A Volatility(1) 22 % N/A Weighted average risk-free interest rate(2) 2.58 % N/A Expected dividends(3) 2.51 % N/A (1) The expected life of employee stock options represents the weighted average period the stock options are expected to remain outstanding based on historical experience. Volatility is based on the historical volatility of the stock price over the same period of the expected life of the option. (2) Based on the U.S. Treasury constant maturity interest rate with a term consistent with the expected life of the option granted. (3) Each grant’s dividend yield is calculated by annualizing the most recent quarterly cash dividend and dividing that amount by the market price of the Company’s common stock as of the grant date
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, 2018 181,185 $ 11.66 Vested (5,000) $ 8.30 Nonvested shares at March 31, 2018 176,185 $ 11.75

Capital Requirements (Tables)

Capital Requirements (Tables)	3 Months Ended
	Mar. 31, 2018
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, 2018 Total Capital $ 292,906 14.7 % $ 197,404 9.875 % (to risk-weighted assets) Tier 1 Capital $ 232,905 11.7 % $ 157,423 7.875 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 232,905 11.7 % $ 127,438 6.375 % (to risk-weighted assets) Tier 1 Capital $ 232,905 8.6 % $ 108,864 4.000 % (to average assets) (1) Includes 1.875% capital conservation buffer, effective January 1, 2018, 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, 2017 Total Capital $ 288,754 14.4 % $ 185,338 9.250 % (to risk-weighted assets) Tier 1 Capital $ 229,258 11.4 % $ 145,265 7.250 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 229,258 11.4 % $ 115,210 5.750 % (to risk-weighted assets) Tier 1 Capital $ 229,258 8.0 % $ 114,959 4.000 % (to average assets) (1) Includes 1.25% capital conservation buffer, effective January 1, 2017, 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, 2018 Total Capital $ 269,644 13.5 % $ 199,778 10.0 % $ 197,280 9.875 % (to risk-weighted assets) Tier 1 Capital $ 248,872 12.5 % $ 159,822 8.0 % $ 157,325 7.875 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 248,872 12.5 % $ 129,855 6.5 % $ 127,358 6.375 % (to risk-weighted assets) Tier 1 Capital $ 248,872 9.1 % $ 136,019 5.0 % $ 108,815 4.000 % (to average assets) (1) Includes 1.875% capital conservation buffer, effective January 1, 2018, 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, 2017 Total Capital $ 265,102 13.2 % $ 200,274 10.0 % $ 185,253 9.250 % (to risk-weighted assets) Tier 1 Capital $ 244,790 12.2 % $ 160,219 8.0 % $ 145,198 7.250 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 244,790 12.2 % $ 130,178 6.5 % $ 115,157 5.750 % (to risk-weighted assets) Tier 1 Capital $ 244,790 8.5 % $ 143,655 5.0 % $ 114,924 4.000 % (to average assets) (1) Includes 1.25% capital conservation buffer, effective January 1, 2017, except the Tier 1 Capital to average assets ratio.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue Recognition
Schedule of noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606	Three Months Ended March 31, 2018 2017 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 478 $ 465 Interchange fees 73 62 Merchant services revenue 44 46 Other 148 152 Total noninterest income in-scope of Topic 606 743 725 Noninterest Income Out-of-scope of Topic 606 1,452 1,570 Total noninterest income $ 2,195 $ 2,295

Noninterest Expense (Tables)

Noninterest Expense (Tables)	3 Months Ended
	Mar. 31, 2018
Noninterest Expense
Schedule of noninterest expense	Three Months Ended March 31, 2018 2017 (Dollars in thousands) Salaries and employee benefits $ 9,777 $ 9,486 Occupancy and equipment 1,106 1,068 Professional fees 684 1,071 Acquisition and integration related costs 615 — Software subscriptions 593 417 Insurance expense 407 352 Data processing 353 383 Other 2,455 2,551 Total $ 15,990 $ 15,328

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
	Mar. 31, 2018
Business Segment Information
Schedule of information by operating segment	Three Months Ended March 31, 2018 Banking(1) Factoring Consolidated (Dollars in thousands) Interest income $ 24,731 $ 3,146 $ 27,877 Intersegment interest allocations 327 (327) — Total interest expense 1,529 — 1,529 Net interest income 23,529 2,819 26,348 Provision for loan losses 488 18 506 Net interest income after provision 23,041 2,801 — 25,842 Noninterest income 2,086 109 2,195 Noninterest expense 14,467 1,523 15,990 Intersegment expense allocations 175 (175) — Income before income taxes 10,835 1,212 12,047 Income tax expense 2,880 358 3,238 Net income $ 7,955 $ 854 $ 8,809 Total assets $ 2,722,472 $ 63,076 $ 2,785,548 Loans, net of deferred fees $ 1,541,466 $ 49,735 $ 1,591,201 Goodwill $ 32,620 $ 13,044 $ 45,664 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

Basis of Presentation (Details)

Basis of Presentation (Details)	3 Months Ended
	Mar. 31, 2018segmentcustomer
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

Shareholders' Equity and Earn41

Shareholders' Equity and Earnings Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Reconciliation of factors used in computing basic and diluted earnings per common share
Net income	$ 8,809	$ 6,538
Weighted average common shares outstanding for basic earnings per common share (in shares)	38,240,495	37,957,999
Dilutive effect of stock options outstanding, using the treasury stock method (in shares)	574,227	536,108
Shares used in computing diluted earnings per common share (in shares)	38,814,722	38,494,107
Basic earnings per share (in dollars per share)	$ 0.23	$ 0.17
Diluted earnings per share (in dollars per share)	$ 0.23	$ 0.17
Number of shares not in computing diluted earnings per common share	275,000	246,500

Accumulated Other Comprehensi42

Accumulated Other Comprehensive Income (Loss) (''AOCI'') - Changes in AOCI by Component (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	$ (9,252)
Net current period other comprehensive income (loss), net of taxes	(5,704)	$ 509
Balance at the end of the period, net of taxes	(14,956)
Accumulated Other Comprehensive Income / (Loss)
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(9,252)	(7,914)
Other comprehensive income (loss) before reclassification, net of taxes	(5,675)	483
Amounts reclassified from other comprehensive income (loss), net of taxes	(29)	26
Net current period other comprehensive income (loss), net of taxes	(5,704)	509
Balance at the end of the period, net of taxes	(14,956)	(7,405)
Unrealized Gains (Losses) on Available-for-Sale Securities and I/O Strips
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(362)	(540)
Other comprehensive income (loss) before reclassification, net of taxes	(5,670)	490
Amounts reclassified from other comprehensive income (loss), net of taxes	(61)	4
Net current period other comprehensive income (loss), net of taxes	(5,731)	494
Balance at the end of the period, net of taxes	(6,093)	(46)
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	375	336
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	367	328
Defined Benefit Pension Plan Items
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(9,265)	(7,710)
Other comprehensive income (loss) before reclassification, net of taxes	(5)	(7)
Amounts reclassified from other comprehensive income (loss), net of taxes	40	30
Net current period other comprehensive income (loss), net of taxes	35	23
Balance at the end of the period, net of taxes	$ (9,230)	$ (7,687)

Accumulated Other Comprehensi43

Accumulated Other Comprehensive Income (Loss) (''AOCI'') - Amount Reclassified from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Amount Reclassified from AOCI
Gain (loss) on sales of securities	$ 87	$ (6)
Interest income on taxable securities	3,862	2,877
Income tax expense	(3,238)	(3,934)
Net income	8,809	6,538
Unrealized Gains (Losses) on Available-for-Sale Securities and I/O Strips
Amount Reclassified from AOCI
Net of tax	61	(4)
Unrealized Gains (Losses) on Available-for-Sale Securities and I/O Strips | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Gain (loss) on sales of securities	87	(6)
Income tax expense	(26)	2
Net income	61	(4)
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	11	13
Income tax expense	(3)	(5)
Net income	8	8
Defined Benefit Pension Plan Items
Amount Reclassified from AOCI
Net of tax	(40)	(30)
Defined Benefit Pension Plan Items | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Salaries and employee benefits	(57)	(51)
Income tax benefit	17	21
Net of tax	(40)	(30)
Prior transition obligation | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Salaries and employee benefits	16	18
Actuarial losses | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Salaries and employee benefits	(73)	(69)
Accumulated Other Comprehensive Income / (Loss)
Amount Reclassified from AOCI
Net of tax	29	(26)
Accumulated Other Comprehensive Income / (Loss) | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Net of tax	$ 29	$ (26)

Securities - Amortized Cost and

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Securities available-for-sale:
Total	$ 354,302	$ 393,339
Gross Unrealized Gains	216	2,905
Gross Unrealized (Losses)	(9,752)	(4,392)
Estimated Fair Value	344,766	391,852
Agency mortgage-backed securities
Securities available-for-sale:
Total	354,302	378,339
Gross Unrealized Gains	216	786
Gross Unrealized (Losses)	(9,752)	(4,392)
Estimated Fair Value	$ 344,766	374,733
Trust preferred securities
Securities available-for-sale:
Total		15,000
Gross Unrealized Gains		2,119
Estimated Fair Value		$ 17,119

Securities - Amortized Cost a45

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Securities held-to-maturity:
Amortized Cost	$ 395,274	$ 398,341
Gross Unrealized Gains	410	952
Gross Unrealized (Losses)	(12,047)	(5,001)
Estimated Fair Value	383,637	394,292
Agency mortgage-backed securities
Securities held-to-maturity:
Amortized Cost	307,083	309,616
Gross Unrealized Gains		6
Gross Unrealized (Losses)	(9,762)	(4,394)
Estimated Fair Value	297,321	305,228
Municipals - exempt from Federal tax
Securities held-to-maturity:
Amortized Cost	88,191	88,725
Gross Unrealized Gains	410	946
Gross Unrealized (Losses)	(2,285)	(607)
Estimated Fair Value	$ 86,316	$ 89,064

Securities - Securities with Un

Securities - Securities with Unrealized Losses - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Available-for-sale, Fair Value
Less Than 12 Months	$ 199,375	$ 185,824
12 Months or More	123,168	146,670
Total	322,543	332,494
Available-for-sale, Unrealized (Losses)
Less Than 12 Months	(5,107)	(1,623)
12 Months or More	(4,645)	(2,769)
Total	(9,752)	(4,392)
Agency mortgage-backed securities
Available-for-sale, Fair Value
Less Than 12 Months	199,375	185,824
12 Months or More	123,168	146,670
Total	322,543	332,494
Available-for-sale, Unrealized (Losses)
Less Than 12 Months	(5,107)	(1,623)
12 Months or More	(4,645)	(2,769)
Total	$ (9,752)	$ (4,392)

Securities - Securities with 47

Securities - Securities with Unrealized Losses - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Held-to-maturity, Fair Value
Less Than 12 Months	$ 212,861	$ 186,598
12 Months or More	140,110	149,999
Total	352,971	336,597
Held-to-maturity, Unrealized (Losses)
Less Than 12 Months	(5,803)	(1,550)
12 Months or More	(6,244)	(3,451)
Total	(12,047)	(5,001)
Agency mortgage-backed securities
Held-to-maturity, Fair Value
Less Than 12 Months	169,591	168,439
12 Months or More	121,549	130,759
Total	291,140	299,198
Held-to-maturity, Unrealized (Losses)
Less Than 12 Months	(4,614)	(1,368)
12 Months or More	(5,148)	(3,026)
Total	(9,762)	(4,394)
Municipals - exempt from Federal tax
Held-to-maturity, Fair Value
Less Than 12 Months	43,270	18,159
12 Months or More	18,561	19,240
Total	61,831	37,399
Held-to-maturity, Unrealized (Losses)
Less Than 12 Months	(1,189)	(182)
12 Months or More	(1,096)	(425)
Total	$ (2,285)	$ (607)

Securities - Additional Informa

Securities - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)itemsecurity	Dec. 31, 2017USD ($)
Additional Information
The number of holdings of securities of any one issuer other than the U.S. Government and its sponsored entities | security	0
Holdings of securities as percentage of shareholders' equity, considered as threshold for disclosure purpose	10.00%
Number of securities held | security	493
Number of available for sale securities held | item	167
Number of held to maturity securities held | item	326
Number of securities with fair values below amortized cost | security	377
Total unrealized loss for securities 12 months or more | $	$ 10,889
12 Months or More | $	140,110	$ 149,999
Municipals - exempt from Federal tax
Additional Information
12 Months or More | $	$ 18,561	$ 19,240

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, 2018	Mar. 31, 2017
Proceeds from Sales of Securities and the Resulting Gains and Losses
Proceeds	$ 38,754	$ 6,536
Gross gains	1,050
Gross losses	$ (963)	$ (6)

Securities - Amortized Cost a50

Securities - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity – Securities Available-for-sale (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Available-for-sale, Amortized Cost
Agency mortgage-backed securities	$ 354,302
Total	354,302	$ 393,339
Available-for-sale, Estimated Fair Value
Agency mortgage-backed securities	344,766
Estimated Fair Value	$ 344,766	$ 391,852

Securities - Amortized Cost a51

Securities - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity – Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Held-to-maturity, Amortized Cost
Due after 3 months through one year	$ 499
Due after one year through five years	3,703
Due after five years through ten years	23,442
Due after ten years	60,547
Agency mortgage-backed securities	307,083
Total	395,274	$ 398,341
Held-to-maturity, Estimated Fair Value
Due after 3 months through one year	499
Due after one year through five years	3,740
Due after five years through ten years	23,434
Due after ten years	58,643
Agency mortgage-backed securities	297,321
Estimated Fair Value	$ 383,637	$ 394,292

Securities - Securities Pledged

Securities - Securities Pledged to Secure Public Deposits and for Other Purposes (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Securities Pledged to Secure Public Deposits and for Other Purposes
Amortized cost of securities pledged to secure public deposits and for other purposes as required or permitted by law or contract	$ 38,863	$ 110,874

Loans -Loans Balance (Details)

Loans -Loans Balance (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Loans held-for-investment:
Total loan balance	$ 1,591,720	$ 1,583,177
Deferred loan fees, net	(519)	(510)
Loans, net of deferred fees	1,591,201	1,582,667	$ 1,513,287
Allowance for loan losses	(20,139)	(19,658)	(19,135)	$ (19,089)
Loans, net	1,571,062	1,563,009
Non-PCI loans acquired	55,633
Commercial
Loans held-for-investment:
Total loan balance	572,790	573,296
Allowance for loan losses	(11,165)	(10,608)	(11,252)	(10,656)
Real estate
Loans held-for-investment:
Total loan balance	1,007,972	997,486
Allowance for loan losses	(8,858)	(8,950)	(7,743)	(8,327)
Real estate | Commercial
Loans held-for-investment:
Total loan balance	775,547	772,867
Real estate | Land and construction
Loans held-for-investment:
Total loan balance	113,470	100,882
Real estate | Home equity
Loans held-for-investment:
Total loan balance	76,087	79,176
Real estate | Residential mortgages
Loans held-for-investment:
Total loan balance	42,868	44,561
Consumer
Loans held-for-investment:
Total loan balance	10,958	12,395
Allowance for loan losses	(116)	(100)	$ (140)	$ (106)
Focus Business Bank
Loans held-for-investment:
Non-PCI loans acquired	$ 55,633	$ 58,551

Loans - Changes in the Allowanc

Loans - Changes in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Changes in the Allowance for Loan Losses
End of year balance	$ 19,658	$ 19,089
Charge-offs	(245)	(366)
Recoveries	220	91
Net (charge-offs) recoveries	(25)	(275)
Provision (credit) for loan losses	506	321
Beginning of period balance	20,139	19,135
Commercial
Changes in the Allowance for Loan Losses
End of year balance	10,608	10,656
Charge-offs	(245)	(366)
Recoveries	157	50
Net (charge-offs) recoveries	(88)	(316)
Provision (credit) for loan losses	645	912
Beginning of period balance	11,165	11,252
Real estate
Changes in the Allowance for Loan Losses
End of year balance	8,950	8,327
Recoveries	63	41
Net (charge-offs) recoveries	63	41
Provision (credit) for loan losses	(155)	(625)
Beginning of period balance	8,858	7,743
Consumer
Changes in the Allowance for Loan Losses
End of year balance	100	106
Provision (credit) for loan losses	16	34
Beginning of period balance	$ 116	$ 140

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, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
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	$ 1,600	$ 290
Allowance for loan losses, Collectively evaluated for impairment	18,539	19,368
Total allowance balance	20,139	19,658	$ 19,135	$ 19,089
Loans, Individually evaluated for impairment	4,036	2,774
Loans, Collectively evaluated for impairment	1,587,684	1,580,403
Total loan balance	1,591,720	1,583,177
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	1,600	290
Allowance for loan losses, Collectively evaluated for impairment	9,565	10,318
Total allowance balance	11,165	10,608	11,252	10,656
Loans, Individually evaluated for impairment	3,171	1,775
Loans, Collectively evaluated for impairment	569,619	571,521
Total loan balance	572,790	573,296
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	8,858	8,950
Total allowance balance	8,858	8,950	7,743	8,327
Loans, Individually evaluated for impairment	865	998
Loans, Collectively evaluated for impairment	1,007,107	996,488
Total loan balance	1,007,972	997,486
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	116	100
Total allowance balance	116	100	$ 140	$ 106
Loans, Individually evaluated for impairment		1
Loans, Collectively evaluated for impairment	10,958	12,394
Total loan balance	$ 10,958	$ 12,395

Loans - Loans Held for Investme

Loans - Loans Held for Investment Individually Evaluated for Impairment by Class of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Unpaid Principal Balance
Total with no related allowance recorded	$ 2,150	$ 2,261
Total with an allowance recorded	1,931	589
Total	4,081	2,850
Recorded Investment
Total with no related allowance recorded	2,119	2,242
Total with an allowance recorded	1,917	532
Total	4,036	2,774	$ 5,533
Total with an allowance recorded, Allowance for Loan Losses Allocated	1,600	290
Commercial
Unpaid Principal Balance
Total with no related allowance recorded	1,285	1,243
Total with an allowance recorded	1,931	589
Recorded Investment
Total with no related allowance recorded	1,254	1,243
Total with an allowance recorded	1,917	532
Total with an allowance recorded, Allowance for Loan Losses Allocated	1,600	290
Consumer
Unpaid Principal Balance
Total with no related allowance recorded		1
Recorded Investment
Total with no related allowance recorded		1
Commercial | Real estate
Unpaid Principal Balance
Total with no related allowance recorded	501	500
Recorded Investment
Total with no related allowance recorded	501	500
Land and construction | Real estate
Unpaid Principal Balance
Total with no related allowance recorded		138
Recorded Investment
Total with no related allowance recorded		119
Home equity | Real estate
Unpaid Principal Balance
Total with no related allowance recorded	364	379
Recorded Investment
Total with no related allowance recorded	$ 364	$ 379

Loans - Interest Recognized and

Loans - Interest Recognized and Cash Basis Interest Earned on Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	$ 3,406	$ 4,362
Commercial
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	2,474	3,239
Consumer
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	1	2
CRE | Real estate
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	501	665
Land and construction | Real estate
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	59	197
Home equity | Real estate
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	$ 371	$ 259

Loans - Nonperforming Loans (De

Loans - Nonperforming Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Nonaccrual loans - held-for-investment	$ 3,637	$ 2,250	$ 5,200
Restructured and loans over 90 days past due and still accruing	158	235	207
Total nonperforming loans	3,795	2,485	5,407
Other restructured loans	241	289	126
Total	$ 4,036	$ 2,774	$ 5,533

Loans - Nonperforming Loans by

Loans - Nonperforming Loans by Class (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Nonperforming Loans by Class
Nonaccrual loans - held-for-investment	$ 3,637	$ 2,250	$ 5,200
Restructured and Loans Over 90 Days Past Due and Still Accruing	158	235	207
Total	3,795	2,485	$ 5,407
Commercial
Nonperforming Loans by Class
Nonaccrual loans - held-for-investment	2,772	1,250
Restructured and Loans Over 90 Days Past Due and Still Accruing	158	235
Total	2,930	1,485
Consumer
Nonperforming Loans by Class
Nonaccrual loans - held-for-investment		1
Total		1
CRE | Real estate
Nonperforming Loans by Class
Nonaccrual loans - held-for-investment	501	501
Total	501	501
Land and construction | Real estate
Nonperforming Loans by Class
Nonaccrual loans - held-for-investment		119
Total		119
Home equity | Real estate
Nonperforming Loans by Class
Nonaccrual loans - held-for-investment	364	379
Total	$ 364	$ 379

Loans - Aging of Past Due Loans

Loans - Aging of Past Due Loans by Class of Loans - Tabular Disclosure (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Aging of Past Due Loans by Class of Loans
Total Past Due	$ 7,915	$ 6,943
Loans Not Past Due	1,583,805	1,576,234
Total loan balance	1,591,720	1,583,177
30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	5,270	4,511
60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	877	1,224
90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	1,768	1,208
Commercial
Aging of Past Due Loans by Class of Loans
Total Past Due	6,639	6,101
Loans Not Past Due	566,151	567,195
Total loan balance	572,790	573,296
Commercial | 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	4,495	4,288
Commercial | 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	877	1,224
Commercial | 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	1,267	589
Real estate
Aging of Past Due Loans by Class of Loans
Total loan balance	1,007,972	997,486
Consumer
Aging of Past Due Loans by Class of Loans
Loans Not Past Due	10,958	12,395
Total loan balance	10,958	12,395
Commercial | Real estate
Aging of Past Due Loans by Class of Loans
Total Past Due		500
Loans Not Past Due		772,367
Total loan balance	775,547	772,867
Commercial | Real estate | 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due		500
CRE | Real estate
Aging of Past Due Loans by Class of Loans
Total Past Due	501
Loans Not Past Due	775,046
Total loan balance	775,547	772,867
CRE | Real estate | 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	501
Land and construction | Real estate
Aging of Past Due Loans by Class of Loans
Total Past Due		119
Loans Not Past Due	113,470	100,763
Total loan balance	113,470	100,882
Land and construction | Real estate | 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due		119
Home equity | Real estate
Aging of Past Due Loans by Class of Loans
Total Past Due	775	223
Loans Not Past Due	75,312	78,953
Total loan balance	76,087	79,176
Home equity | Real estate | 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	775	223
Residential mortgages | Real estate
Aging of Past Due Loans by Class of Loans
Loans Not Past Due	42,868	44,561
Total loan balance	$ 42,868	$ 44,561

Loans - Aging of Past Due Loa61

Loans - Aging of Past Due Loans by Class of Loans - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Aging of Past Due Loans by Class of Loans
Past due loans 30 day or greater	$ 7,915	$ 6,943
Nonaccrual loans - held-for-investment	3,637	2,250	$ 5,200
30 days or greater past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans - held-for-investment	2,357	1,410
Less than 30 days past due
Aging of Past Due Loans by Class of Loans
Nonaccrual loans - held-for-investment	$ 1,280	$ 840

Loans - Credit Quality Indicato

Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Loans
Balance to report	$ 1,571,062	$ 1,563,009
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, 2018	Dec. 31, 2017
Loans
Total	$ 1,591,720	$ 1,583,177
Lending relationship loans	20,200	12,500
Nonclassified
Loans
Total	1,560,957	1,558,105
Classified
Loans
Total	30,763	25,072
Commercial
Loans
Total	572,790	573,296
Commercial | Nonclassified
Loans
Total	548,538	554,913
Commercial | Classified
Loans
Total	24,252	18,383
Real estate
Loans
Total	1,007,972	997,486
Consumer
Loans
Total	10,958	12,395
Consumer | Nonclassified
Loans
Total	10,958	12,394
Consumer | Classified
Loans
Total		1
Commercial | Real estate
Loans
Total	775,547	772,867
CRE | Real estate
Loans
Total	775,547	772,867
CRE | Real estate | Nonclassified
Loans
Total	769,707	766,988
CRE | Real estate | Classified
Loans
Total	5,840	5,879
Land and construction | Real estate
Loans
Total	113,470	100,882
Land and construction | Real estate | Nonclassified
Loans
Total	113,470	100,763
Land and construction | Real estate | Classified
Loans
Total		119
Home equity | Real estate
Loans
Total	76,087	79,176
Home equity | Real estate | Nonclassified
Loans
Total	75,416	78,486
Home equity | Real estate | Classified
Loans
Total	671	690
Residential mortgages | Real estate
Loans
Total	42,868	44,561
Residential mortgages | Real estate | Nonclassified
Loans
Total	$ 42,868	$ 44,561

Loans - Troubled Debt Restructu

Loans - Troubled Debt Restructurings (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Loans
Recorded investment of troubled debt restructurings	$ 323,000	$ 325,000
Troubled debt restructurings, nonaccrual loans	16,000	16,000
Troubled debt restructurings, accruing loans	307,000	309,000
Specific reserves	$ 2,500	$ 2,000

Loans - Troubled Debt Restruc65

Loans - Troubled Debt Restructurings by Class (Details) - loan	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Loans
Number of loans modified as troubled debt restructurings during the period	0	0

Loans - Defaults on Troubled De

Loans - Defaults on Troubled Debt Restructurings (Details)	3 Months Ended
	Mar. 31, 2018USD ($)loanitem	Mar. 31, 2017loanitem
Loans
Number of troubled debt restructurings in which the amount of principal or accrued interest owed from the borrower was forgiven	0
Amounts that the company commits to lend customers with outstanding loans that are classified as troubled debt restructurings | $	$ 0
Number of loans modified as troubled debt restructurings during the period	0	0
Default period contractually past due under modified terms (in days)	30 days
Number of defaults on troubled debt restructurings | item	0	0
Period of consecutive payments (in months)	6 months

Goodwill and Other Intangible67

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
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 Intangible68

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands	Aug. 20, 2015	Nov. 01, 2014	Mar. 31, 2018	Dec. 31, 2017
Other Intangible Assets
Accumulated amortization			$ 2,189	$ 1,995
Focus Business Bank | Core deposit
Other Intangible Assets
Intangible assets acquired	$ 6,285
Useful life, amortization period	10 years
BVF/CSNK
Other Intangible Assets
Accumulated amortization			$ 648	$ 601
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 Intangible69

Goodwill and Other Intangible Assets - Estimated Amortization Expense (Details) $ in Thousands	Mar. 31, 2018USD ($)
Estimated Amortization Expense
2,018	$ 965
2,019	924
2,020	906
2,021	786
2,022	692
2,023	610
Thereafter	706
Total	5,589
Focus Business Bank | Core deposit
Estimated Amortization Expense
2,018	775
2,019	734
2,020	716
2,021	596
2,022	502
2,023	420
Thereafter	547
Total	4,290
BVF/CSNK | Customer relationship and brokered relationship
Estimated Amortization Expense
2,018	190
2,019	190
2,020	190
2,021	190
2,022	190
2,023	190
Thereafter	159
Total	$ 1,299

Goodwill and Other Intangible70

Goodwill and Other Intangible Assets - Impairment of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
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	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Income Taxes
Statutory Federal income tax rate (as a percent)	21.00%	35.00%
Net deferred tax assets
Net deferred tax assets	$ 18,588	$ 16,247
Valuation allowance for deferred tax assets	$ 0

Income Taxes - Carry Amounts of

Income Taxes - Carry Amounts of the Low Income Housing Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Income Taxes
Low income housing investments	$ 3,292	$ 3,411
Future commitments	$ 290	$ 302

Income Taxes - Future Commitmen

Income Taxes - Future Commitments of the Low Income Housing Investments (Details) - Low income housing investments $ in Thousands	Mar. 31, 2018USD ($)
Future Commitments
2,018	$ 1
2019 through 2023	$ 289

Income Taxes - Components of Lo

Income Taxes - Components of Low Income Housing Investment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Taxes
Low income housing tax credits	$ 106	$ 110
Low income housing investment losses	$ 119	$ 115

Benefit Plans - Defined Benefit

Benefit Plans - Defined Benefit Plans - Nonqualified Defined Benefit Pension Plan (Details) $ in Thousands	Mar. 31, 2018USD ($)
Supplemental Retirement Plan
Supplemental Retirement Plan
Plan assets associated with the plan	$ 0

Benefit Plans - Defined Benef76

Benefit Plans - Defined Benefit Plans - Components of Pension Cost (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Supplemental Retirement Plan
Components of net periodic benefit cost:
Service cost	$ 62	$ 81
Interest cost	237	259
Amortization of net actuarial loss	73	69
Net periodic benefit cost	372	409
Split-Dollar Life Insurance Benefit Plan
Components of net periodic benefit cost:
Interest cost	57	61	$ 243
Amortization of prior transition obligation	(16)	(18)
Net periodic benefit cost	$ 41	$ 43

Benefit Plans - Defined Benef77

Benefit Plans - Defined Benefit Plans - Change in Projected Benefit Obligation (Details) - Split-Dollar Life Insurance Benefit Plan - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$ 6,711	$ 6,301	$ 6,301
Interest cost	57	$ 61	243
Actuarial (gain) loss			167
Projected benefit obligation at end of period	$ 6,768		$ 6,711

Benefit Plans - Defined Benef78

Benefit Plans - Defined Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - Split-Dollar Life Insurance Benefit Plan - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Amounts Recognized in Accumulated Other Comprehensive Loss
Net actuarial loss	$ 2,491	$ 2,453
Prior transition obligation	1,216	1,238
Accumulated other comprehensive loss	$ 3,707	$ 3,691

Fair Value - Financial Assets a

Fair Value - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	$ 344,766	$ 391,852
I/O strip receivables	945	968
Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	344,766	374,733
Trust preferred securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale		17,119
Significant Other Observable Inputs (Level 2)
Financial Assets and Liabilities Measured on a Recurring Basis
I/O strip receivables	945	968
Significant Other Observable Inputs (Level 2) | Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	344,766	374,733
Significant Other Observable Inputs (Level 2) | Trust preferred securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale		17,119
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 Assets80

Fair Value - Financial Assets and Liabilities Measured on a Non-Recurring Basis (Details) - Non-recurring basis - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	$ 342	$ 361
Significant Unobservable Inputs (Level 3)
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	342	361
Commercial | Commercial
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	342	242
Commercial | Commercial | Significant Unobservable Inputs (Level 3)
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	$ 342	242
Land and construction | Real estate
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:		119
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:		$ 119

Fair Value - Impaired Loans Hel

Fair Value - Impaired Loans Held-for-investment - Tabular Disclosure (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Impaired Loans Held-for-investment
Impaired loans held-for-investment	$ 4,036	$ 2,774
Carried at fair value
Impaired Loans Held-for-investment
Impaired loans held-for-investment	1,942	651
Specific valuation allowance	(1,600)	(290)
Impaired loans held-for-investment carried at fair value, net	342	361
Portion carried at cost
Impaired Loans Held-for-investment
Impaired loans held-for-investment	$ 2,094	$ 2,123

Fair Value - Impaired Loans H82

Fair Value - Impaired Loans Held-for-investment - Additional Disclosures (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Impaired Loans Held-for-investment
Impaired loans held-for-investment	$ 4,036	$ 2,774
Additional provision (credit) for loan losses	1,331	254
Carrying amount
Impaired Loans Held-for-investment
Foreclosed assets	0	0
Carried at fair value
Impaired Loans Held-for-investment
Impaired loans held-for-investment	1,942	651
Specific valuation allowance	1,600	290
Portion carried at cost
Impaired Loans Held-for-investment
Impaired loans held-for-investment	$ 2,094	$ 2,123

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, 2018	Dec. 31, 2017
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	$ 342	$ 361
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	$ 342	361
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		$ 242
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%
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	$ 342
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	342	$ 242
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	$ 342	242
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		119
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		119
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		$ 119
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%

Fair Value - Carrying Amounts a

Fair Value - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets
Securities available-for-sale	$ 344,766	$ 391,852
Securities held-to-maturity	383,637	394,292
Federal Home Loan Bank and Federal Reserve Bank stock and other investments, at cost	17,917	17,911
I/O strips receivables	945	968
Liabilities
Subordinated Debt.	39,229	39,183
Significant Other Observable Inputs (Level 2)
Assets
I/O strips receivables	945	968
Carrying amount
Assets
Cash and cash equivalents	301,989	316,222
Securities available-for-sale	344,766	391,852
Securities held-to-maturity	395,274	398,341
Loans (including loans held-for-sale), net	1,573,921	1,566,428
Federal Home Loan Bank and Federal Reserve Bank stock and other investments, at cost	17,917	17,911
Accrued interest receivable	7,896	7,985
I/O strips receivables	945	968
Liabilities
Time deposits	125,548	194,561
Other deposits	2,296,644	2,288,428
Subordinated Debt.	39,229	39,183
Accrued interest payable	895	389
Carried at fair value
Assets
Cash and cash equivalents	301,989	316,222
Securities available-for-sale	344,766	391,852
Securities held-to-maturity	383,637	394,292
Loans (including loans held-for-sale), net	1,561,055	1,511,386
Accrued interest receivable	7,896	7,985
I/O strips receivables	945	968
Liabilities
Time deposits	125,709	194,844
Other deposits	2,296,644	2,288,428
Subordinated Debt.	39,809	40,384
Accrued interest payable	895	389
Carried at fair value | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash and cash equivalents	301,989	316,222
Carried at fair value | Significant Other Observable Inputs (Level 2)
Assets
Securities available-for-sale	344,766	391,852
Securities held-to-maturity	383,637	394,292
Loans (including loans held-for-sale), net	2,859	3,419
Accrued interest receivable	2,267	2,423
I/O strips receivables	945	968
Liabilities
Time deposits	125,709	194,844
Other deposits	2,296,644	2,288,428
Subordinated Debt.	39,809	40,384
Accrued interest payable	895	389
Carried at fair value | Significant Unobservable Inputs (Level 3)
Assets
Loans (including loans held-for-sale), net	1,558,196	1,507,967
Accrued interest receivable	$ 5,629	$ 5,562

Equity Plan - General Disclosur

Equity Plan - General Disclosures (Details) - shares	3 Months Ended
	Mar. 31, 2018	May 25, 2017	May 24, 2017
2013 Plan
Equity Plan
Number of shares authorized for equity plan		3,000,000	1,750,000
Number of shares available for future grants	1,518,099
Options
Equity Plan
Vesting period	4 years
Options | Maximum
Equity Plan
Expiration term	10 years
Restricted stock
Equity Plan
Number of equity awards issued (in shares)	0
Nonqualified stock options
Equity Plan
Number of equity awards issued (in shares)	10,000

Equity Plan - Stock Option Acti

Equity Plan - Stock Option Activity (Details) - Options	3 Months Ended
	Mar. 31, 2018USD ($)$ / sharesshares
Number of Shares
Outstanding at the beginning of the period (in shares)	1,602,732
Granted (in shares)	10,000
Exercised (in shares)	(68,906)
Forfeited or expired (in shares)	(3,000)
Outstanding at the end of the period (in shares)	1,540,826
Vested or expected to vest (in shares)	1,448,376
Exercisable at the end of the period (in shares)	1,101,536
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) | $ / shares	$ 9.54
Granted (in dollars per share) | $ / shares	15.96
Exercised (in dollars per share) | $ / shares	7.79
Forfeited or expired (in dollars per share) | $ / shares	16
Outstanding at the end of the period (in dollars per share) | $ / shares	$ 9.64
Additional Information
Weighted Average Remaining Contractual Life - Outstanding at the end of the period (in years)	6 years 2 months 5 days
Weighted Average Remaining Contractual Life - Vested or expected to vest (in years)	6 years 2 months 5 days
Weighted Average Remaining Contractual Life - Exercisable at the end of the period (in years)	5 years 3 months 4 days
Aggregate Intrinsic Value - Outstanding at the end of the period (in dollars) | $	$ 10,624,596
Aggregate Intrinsic Value - Vested or expected to vest (in dollars) | $	9,987,120
Aggregate Intrinsic Value - Exercisable at the end of the period (in dollars) | $	$ 8,764,801

Equity Plan - Information Relat

Equity Plan - Information Related to the Equity Plans for each of the Last Three Years (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Information Related to the Equity Plans
Cash received from option exercise	$ 449	$ 365
Options
Information Related to the Equity Plans
Intrinsic value of options exercised	560,332	375,122
Cash received from option exercise	449,294	365,031
Tax benefit realized from option exercises	$ 164,978	$ 155,648
Weighted average fair value of options granted (in dollars per share)	$ 3

Equity Plan - Unrecognized Comp

Equity Plan - Unrecognized Compensation Cost - Nonvested Stock Options (Details) - Options $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 1,102
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 5 months 19 days

Equity Plan - Assumptions Used

Equity Plan - Assumptions Used to Estimate Fair Value (Details)	3 Months Ended
	Mar. 31, 2018
Assumptions Used to Estimate Fair Value
Expected life in months	72 months
Options
Assumptions Used to Estimate Fair Value
Volatility (as a percent)	22.00%
Weighted average risk-free interest rate (as a percent)	2.58%
Expected dividends (as a percent)	2.51%

Equity Plan - Restricted Stock

Equity Plan - Restricted Stock Activity (Details) - Restricted stock	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Number of Shares
Nonvested shares at the beginning of the period (in shares) | shares	181,185
Vested (in shares) | shares	(5,000)
Nonvested shares at the end of the period (in shares) | shares	176,185
Weighted Average Grant Date Fair Value
Nonvested shares at the beginning of the period (in dollars per share) | $ / shares	$ 11.66
Vested (in dollars per share) | $ / shares	8.30
Nonvested shares at the end of the period (in dollars per share) | $ / shares	$ 11.75

Equity Plan - Unrecognized Co91

Equity Plan - Unrecognized Compensation Cost - Nonvested Restricted Stock Awards (Details) - Restricted stock $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested restricted stock awards	$ 1,359
Expected weighted-average period for recognition of compensation costs related to nonvested restricted stock awards	2 years 1 month 21 days

Subordinated Debt (Details)

Subordinated Debt (Details) - USD ($)	Jun. 01, 2022	Mar. 31, 2018	May 26, 2017
Principal amount			$ 40,000,000
Fixed interest rate (as a percent)		5.25%
LIBOR
Base rate	three-month LIBOR
Rate of interest added to base rate	3.365%

Capital Requirements - General

Capital Requirements - General Information (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Capital Requirements
Phase-in period (in years)	4 years
Capital conservation buffer (as a percent)	1.875%			1.25%	0.625%
Forecast
Capital Requirements
Capital conservation buffer (as a percent)		2.50%	1.875%
HBC (Wholly-owned Subsidiary)
Capital Requirements
Capital conservation buffer (as a percent)	1.875%			1.25%

Capital Requirements - Tabular

Capital Requirements - Tabular Disclosure (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Total Capital (to risk-weighted assets)
Actual, Amount	$ 292,906	$ 288,754
Required For Capital Adequacy Purposes, Amount	$ 197,404	$ 185,338
Actual, Ratio (as a percent)	14.70%	14.40%
Required For Capital Adequacy Purposes, Ratio (as a percent)	9.875%	9.25%
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 232,905	$ 229,258
Required For Capital Adequacy Purposes, Amount	$ 157,423	$ 145,265
Actual, Ratio (as a percent)	11.70%	11.40%
Required For Capital Adequacy Purposes, Ratio (as a percent)	7.875%	7.25%
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 232,905	$ 229,258
Required For Capital Adequacy Purposes, Amount	$ 127,438	$ 115,210
Actual, Ratio (as a percent)	11.70%	11.40%
Required For Capital Adequacy Purposes, Ratio (as a percent)	6.375%	5.75%
Tier 1 Capital (to average assets)
Actual, Amount	$ 232,905	$ 229,258
Required For Capital Adequacy Purposes, Amount	$ 108,864	$ 114,959
Actual, Ratio (as a percent)	8.60%	8.00%
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	$ 269,644	$ 265,102
To Be Well Capitalized Under Regulatory Requirements, Amount	199,778	200,274
Required For Capital Adequacy Purposes, Amount	$ 197,280	$ 185,253
Actual, Ratio (as a percent)	13.50%	13.20%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	10.00%	10.00%
Required For Capital Adequacy Purposes, Ratio (as a percent)	9.875%	9.25%
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 248,872	$ 244,790
To Be Well Capitalized Under Regulatory Requirements, Amount	159,822	160,219
Required For Capital Adequacy Purposes, Amount	$ 157,325	$ 145,198
Actual, Ratio (as a percent)	12.50%	12.20%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	8.00%	8.00%
Required For Capital Adequacy Purposes, Ratio (as a percent)	7.875%	7.25%
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 248,872	$ 244,790
To Be Well Capitalized Under Regulatory Requirements, Amount	129,855	130,178
Required For Capital Adequacy Purposes, Amount	$ 127,358	$ 115,157
Actual, Ratio (as a percent)	12.50%	12.20%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	6.50%	6.50%
Required For Capital Adequacy Purposes, Ratio (as a percent)	6.375%	5.75%
Tier 1 Capital (to average assets)
Actual, Amount	$ 248,872	$ 244,790
To Be Well Capitalized Under Regulatory Requirements, Amount	136,019	143,655
Required For Capital Adequacy Purposes, Amount	$ 108,815	$ 114,924
Actual, Ratio (as a percent)	9.10%	8.50%
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) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Cash dividend
Subordinated Debt.	$ 39,229	$ 39,183
Dividends paid to parent company	4,000
HCC (Parent)
Cash dividend
Cash dividend available	$ 35,057

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	$ 743
Non-interest Income Out-of-scope of Topic 606	1,452
Total noninterest income	2,195	$ 2,295
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606		725
Non-interest Income Out-of-scope of Topic 606		1,570
Total noninterest income		2,295
Service charges and fees on deposit accounts
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	478
Service charges and fees on deposit accounts | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606		465
Interchange fees
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	73
Interchange fees | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606		62
Merchant services revenue
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	44
Merchant services revenue | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606		46
Other
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606	$ 148
Other | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Non-interest Income In-scope of Topic 606		$ 152

Noninterest Expense (Details)

Noninterest Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Noninterest Expense
Salaries and employee benefits	$ 9,777	$ 9,486
Occupancy and equipment	1,106	1,068
Professional fees	684	1,071
Acquisition and integration related costs	615
Software subscriptions	593	417
Insurance expense	407	352
Data processing	353	383
Other	2,455	2,551
Total noninterest expense	$ 15,990	$ 15,328

Business Segment Information -

Business Segment Information - Business Segments (Details)	3 Months Ended
	Mar. 31, 2018segmentitem
Business Segment Information
Number of business segments | segment	2
Focus Business Bank
Business Segment Information
Number of business segments | item	2

Business Segment Information 99

Business Segment Information - Operating Statements (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Operating Income
Interest income	$ 27,877	$ 24,697
Total interest expense	1,529	871
Net interest income	26,348	23,826
Provision for loan losses	506	321
Net interest income after provision	25,842	23,505
Noninterest income	2,195	2,295
Noninterest expense	15,990	15,328
Income before income taxes	12,047	10,472
Income tax expense	3,238	3,934
Net income	8,809	6,538
Total assets	2,785,548	2,641,791	$ 2,843,452
Loans, net of deferred fees	1,591,201	1,513,287	1,582,667
Goodwill	45,664	45,664	$ 45,664
Banking
Operating Income
Interest income	24,731	21,969
Intersegment interest allocations	327	260
Total interest expense	1,529	871
Net interest income	23,529	21,358
Provision for loan losses	488	311
Net interest income after provision	23,041	21,047
Noninterest income	2,086	2,115
Noninterest expense	14,467	13,579
Intersegment expense allocations	175	133
Income before income taxes	10,835	9,716
Income tax expense	2,880	3,616
Net income	7,955	6,100
Total assets	2,722,472	2,584,288
Loans, net of deferred fees	1,541,466	1,470,450
Goodwill	32,620	32,620
Factoring
Operating Income
Interest income	3,146	2,728
Intersegment interest allocations	(327)	(260)
Net interest income	2,819	2,468
Provision for loan losses	18	10
Net interest income after provision	2,801	2,458
Noninterest income	109	180
Noninterest expense	1,523	1,749
Intersegment expense allocations	(175)	(133)
Income before income taxes	1,212	756
Income tax expense	358	318
Net income	854	438
Total assets	63,076	57,503
Loans, net of deferred fees	49,735	42,837
Goodwill	$ 13,044	$ 13,044

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands	Apr. 26, 2018	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Subsequent Event [Line Items]
Total assets		$ 2,785,548	$ 2,641,791	$ 2,843,452
Loans, net		1,571,062		1,563,009
Deposits		$ 2,422,192		$ 2,482,989
Quarterly cash dividends declared to holders of common stock		$ 0.11	$ 0.10
Subsequent Event
Subsequent Event [Line Items]
Quarterly cash dividends declared to holders of common stock	$ 0.11
Tri Valley Bank
Subsequent Event [Line Items]
Total assets		$ 150,300
Loans, net		125,200
Deposits		131,400
United American Bank
Subsequent Event [Line Items]
Total assets		319,700
Loans, net		218,300
Deposits		286,600
Tri Valley Bank and United American Bank
Subsequent Event [Line Items]
Pro forma Assets		3,300,000
Pro forma Net loans		1,900,000
Pro forma Deposits		$ 2,800,000